improving your business Archives

From the Business Desk: Small Business Privacy

October 15, 2015 by Michael Raymond

From the Business Desk is a semi-regular series that looks at some of the important factors in running a Small Fiber Arts Business. This feature looks at some of the common privacy implications that Small Business owners should have an awareness of. Join Mr. Turtle as he looks into the practicalities of privacy and small business.

License: Some rights reserved by g4ll4is

Just the other week, the United States Office of Personnel Management (OPM) announced that in addition to the estimated 22.1 million identity records that had been compromised in an illicit hack of their databases, approximately 5.6 million sets of fingerprint records has been stolen as well. Unlike a credit card or social security number, which can be changed or re-released, this personal biometric data is crucial to keep private, something that the OPM had failed to do.

While most small businesses do not operate at the scale of the Federal Government, they are still responsible for certain privacy requirements around how customer and employee data is collected and used. In addition to the commonly thought of privacy items like securing data from theft, there are other more subtle aspects of privacy law that govern what a business can, and more importantly cannot, do with someone’s data. While privacy has been growing in importance with the rise of the Digital Age, it has only been recently that the general public has become attuned to it’s importance in the world of commerce. As a small business owner, having a baseline understanding of some of the key elements of privacy law can pay dividends in protecting your business and yourself from liability.

In the United States, unlike our European cousins, privacy regulations follow a sectoral approach: each sector of the economy has its’ own set of laws and regulations. The general enforcement for privacy constraints in the business sphere, as opposed to more regulated sectors of industry like healthcare and finance, is the Federal Trade Comission (FTC). In its’ creation with the Federal Trade Commission Act, the body is chartered with enforcing against “unfair and deceptive trade practices and acts,” of which case law has held includes taking appropriate privacy and security measures. For the small business owner, this is important in how you portray your business’s privacy practices to your customers and the general public.

One of the first items a business owner should consider is that if you have a web presence, you should have a written Privacy Policy. This serves to inform any visitors of their rights to their personal data, and more importantly, your intentions surrounding that data. This in turn allows users to make informed decisions or know that for instance using a “contact me” form on your website may lead to their email address being added to your mailing list. Additionally, the State of California in their 2003 Online Privacy Protection Act requires such a notice to be posted on the website if you may potentially be collecting identifiable information from California Citizens. Given the interconnected web of e-commerce in today’s world, the chances are that this may be happening; ensuring that you have developed a current and accurate document unique for your business situation can cover a lot of your privacy bases in this respect.

Attribution: Some rights reserved by hyku

Another key area a small business owner should be aware of is how they conduct any email communication and marketing. As e-mail messaging has exploded in recent years, replacing more traditional postage service mailings, many small business owners have found themselves afoul of the regulations in this space. Email messaging in the United States is primarily governed by the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM Act) of 2003. In brief, the Act requires all email messages to possess a legitimate return email address and physical address of the sender, not have any false, misleading, or deceptive headers or subjects, and provide a clear and conspicuous way for the recipient to opt out of receiving future email messages at no cost to them.

Because of requirements such as these, I would recommend that any organization that intends to use email as a platform for outreach to consider selecting an Email Marketing service to assist in managing one’s distribution list. Many of the commonly used services, such as Mad Mimi, MailChimp, or Constant Contact provide free or extremely cost effective basic plans for small business users. These services allow the use of email formatting templates to assist in meeting all necessary privacy requirements, and additionally provide a platform by which recipients can individually manage their subscription status and opt in or out of receiving certain types of communications. Additionally, such services assist in keeping email distribution lists secure, and ensure that when messages are sent out, recipients email addresses are not exposed to other individuals. It is because of these benefits that any small fiber arts business should consider setting up an Email Marketing service as part of their initial business plan.

While the future of privacy law and requirements for U.S. based businesses may seem murky, a small fiber arts business can take heed of the above principals to best position themselves to be able to respond both to industry requirements as well as the overarching desires of their customer base. By acting and thinking in the best interest of the customer, and treating customer information as you would have another company treat yours, the savvy business owner can create and maintain indispensable customer goodwill. And that is an asset always worth having for your business.

Michael Raymond, CIPP/US

“Mr. Turtle”

From The Business Desk: Agile for Small Businesses

September 25, 2015 by Michael Raymond

From the Business Desk is a semi-regular series that looks at some of the important factors in running a Small Fiber Arts Business. This feature looks at how to leverage some new time and project management techniques from the Agile framework for small businesses.

As a small business owner, time is one of the most important assets that you have. It is also one of the most limiting. While other business areas like staffing or inventory can be expanded or invested in, there are only so many hours in a day (if you know how to change this, please let me know!). Making effective use of your time for projects and operations is crucial for a well managed business to both succeed and grow.

Is this what agile means to you?

Scrum. Kanban. Sprint. Agile. You may have heard these phrases before in industry trade shows or in the media as the newest focus for tech companies to manage their time, projects, and resources. While originally created for Software Development, the Agile Framework at it’s core can be applied to any business process or project; especially in the Fiber Arts industry where there are natural market segments and discreet work items like classes, designs, and projects.

While we here have written previously about project management, thinking about the Agile methodology more surrounds the what rather than the how. The core elements of agile that a Small Business owner should most be aware of are Team Ownership of Work, Minimum Viable Product/Shippable Units, and Timeboxing.

Before diving into these a bit further, I wanted to provide a 30 second overview about Agile from a non-technical perspective. Unlike traditional mindsets where work is done in an orderly, sequence of events, Agile revolves around breaking up the necessary work to be done into discreet work units, and then over a set period of time (commonly called a “Sprint”) delivering a piece of the work to the customer. For example, if you are running an LYS the work could be a 4 week class on garment construction; each week/session could be a unique and discreet unit of work. Now, with this background, let’s look a bit further at some of the tenants that could be applied to your business:

Team Ownership of Work: Agile frameworks work best when a team of individuals with a variety of skills are empowered to come together to tackle a project or issue as a whole. The team, rather than one individual, collectively has a say in how the work is preformed and ultimately delivered to the customer. This is especially applicable to a Fiber Arts business, due to the muti-facted nature of the industry.

If you are looking to put on a specific fiber event like a Fiber Festival, your team could consist of folks with a deep knowledge of yarns and marketing, separate instructors with significant technique knowledge, and then a handful of us less crafty types with some of the more technical business knowledge. By bringing the team into the decision-making process early on to determine what is and is not feasible (“scoping the work”), you and your business can be sure to have a better understanding up front of what you can (and more importantly what you cannot) accomplish in a given period of time.

Minimum Viable Product/Shippable Units: In the software development space, research has shown that the average user base only heavily utilizes 20% of all of the features of a software application, following the classic Pareto 80/20 rule. Think about your business. Are there certain key elements that always seem to attract the most customer base? Do you have certain patterns that always seem to hit on what the customer wants? Agile is built around focusing on identifying what those elements are, bundling them together to create the leanest possible unit for work to ship, and then working towards that.

Applying that principal to your business can dramatically help you drive your Return on Investment, as once you are able to focus on these areas, you are able to cut to the core of drawing in your customer base. Then, once you have a solid project or process up and running supporting that desire to be taught a specific skill in one of your classes, you can enhance that with additional features that may apply to a smaller set of customers. Doing this is following the tenant of breaking down your projects or work into smaller features called Shippable Units that can be developed in a shorter period of time.

Timeboxing: As mentioned at the beginning, managing your time effectively is crucial for any business owner. As an example, I have allocated myself 60 minutes to write this article. Following the Agile principal of timeboxing, a discreet amount of time is set aside for any one task, meeting, or work item. When that time is up for the day, no matter at what state the project is in, you should stop and move to your next item. Many different studies from business to medical have demonstrated that mulitasking is actually a misnomer, and the human brain loses efficiency when rapidly switching between tasks.

As such, being able to focus on one item at a time, like updating your website with your latest shipment of yarn or re-arranging your models for an upcoming trunk show, work it for a specific period of time, and then close out that piece of work before moving on can dramatically increase the efficiency in how an individual or team gets work done. So when you have those daily team meetings, or find yourself bogged down answering your inbox, break up your task into specific chunks, and timebox them. It may take you longer to accomplish that one task, but by knowingly addressing items one at a time you are able to accomplish a lot more work as a whole.

Overall, the Agile methodology is gaining traction in many large and medium sized corporations and is still being developed and tweaked as additional lessons are learned. While this overview has just scratched the surface, it’s an interesting mindset to begin thinking about when approaching your business planning for the coming year. For another approach on how to use some of these tenants, check out this great post from Agile Advice. And with that, I’m timeboxing this post for today!

~ Mr. Turtle

From the Business Desk: Stakeholder Engagement

September 9, 2014 by Jennifer Raymond

From the Business Desk is back. From the Business Desk is a semi-regular series that looks at some of the important factors in running a Small Fiber Arts Business. This feature revolves around managing the many important parties your business works with on a daily basis.

Due to the specialized nature of a fibre arts small business, you most likely are interfacing with a large number of external parties in your day to day business operations. From suppliers and vendors to accountants and banks to individual customers, the web of interactions you weave is a significant challenge to manage for any business owner.

Complex web of your network. Image courtesy of Wikipedia

Managing these types of interactions with all of these various individuals is key to a business’s well being, as often times a business is judged by the market not by it’s actual results, but by how it operates and delivers results against its’ expectations. You see this a lot of times with Fortune 500 companies where although they could show spectacularly profitable results, if these do not meet the expectations of the organization, things like it’s image, reputation, clientele, or stock price can suffer.

There are many in-depth training classes you can take from high-paid consultants on how you can accomplish this; what I’m going to do is share some high-level tips for how we at Tinking Turtle keep track of things here to best manage the expectations of all of the interrelated individuals we commonly interact with.

Constant External Communication. Communication is absolutely tops in managing any sort of relationship that you have, be it with a vendor for ordering supplies, or a customer expecting a deliverable on a particular project. Often times, when you know things are not going according to plan and you cannot meet a deadline, the earlier you can communicate this, the better. That way things don’t come as a shock to those impacted, and if you can both communicate the issue and what you are doing to resolve it, you can ensure your relationships are positively maintained. Studies show that customer loyalty can actually be increased if your business takes ownership and provides an exceptional level of service in the event of a customer service issue.

Internal Communication. If your business has more than one employee, it is vital that all of the staff are on the same page and have access to information regarding the various stakeholders that they interact with. Nothing is more off-putting than to have an external vendor be told “I’m sorry, I don’t know what you’re talking about” in relation to an issue. This could be something as simple as having a weekly staff meeting, or a common room whiteboard with a high level FYI list of things to be aware of for all of the associates to have access to. There are also technology solutions to allow these relationships to be documented, having a CRM application is one avenue that Tinking Turtle uses, as to us, everyone we interact with from vendors to contractors to customers is tracked in our system.

Understanding Expectations. The last item I want to stress here is the importance of actually understanding the expectations of everyone you interact with. A classic example of this can be found in the Project Management Tire Swing analogy, which has been around for quite some time and is demonstrated in many introduction to Stakeholder Engagement classes.

The importance of understanding expectations.

By making assumptions about what is really necessary in a relationship, the chance for misscommunication is high, which then leads to situations where one party’s expectations are vastly different than the other. A good way to think about this in any interaction is to ensure that both you and the other party have clearly understood conditions of satisfaction that need to be met as part of this relationship. In ensuring that you have established these up front, it is much easier to then set expectations, and then identify areas that can be changed as the nature of the relationship changes.

These are only a few of the ways that small businesses can work to ensure that the relationships with the many individuals and organizations with which they interact remain strong. It is the strength of these relationship, and how engaged you are keeping all parties involve that can really be a stragic benefit to the long-term success of any fiber arts business.

From the Business Desk: Leveraging your Strengths

August 18, 2014 by Jennifer Raymond

As any small business owner knows, it’s a fierce world out there to break into any market. Be it establishing a LYS, becoming your own design company, breaking into the teaching circuit, all of these arenas seem to have well established entities that have solid client bases that seem to have everything put together. How will you ever be able to differentiate your new business and your ideas from the existing market, you may ask yourself. One of the handiest tricks of the business trade to help you accomplish this is the SWOT analysis. Standing for Strengths, Weaknesses, Opportunities, and Threats, this analysis can help you start to make sense of your business’s place in the market, and areas which you can develop to better differentiate and market your ideas.

SWOT Matrix overview. Image courtesy of wikipedia.org

Fitting neatly into a 2 x 2 matrix (one of my favorite visualizations for many different business strategies), the SWOT analysis can help you identify some key attributes both about your business as well as the marketplace.

Strengths are the things that your business does quite well or has a key competitive factor; items could include physical location of a shop in a high-traffic downtown area, or having a well rounded resume of instruction at a variety of locations.

Weaknesses are known areas where you could use some improvement; an example of this could be that you don’t really possess a strong skill-set on computer tools like Excel or Microsoft Publisher as a designer.

Opportunities are areas that in your opinion the market or industry has not fully realized, such as there being a wealth of crocheters living in a particular town, but no dedicated crochet instructor.

Threats can be anything externally that stands the chance of impeding the growth and progress of your business. Threats can be micro, such as the fact that there is already a teacher who has been teaching a particular class that you want to start teaching at a regional fair, or macro, such as the overall state of the retail yarn market in a particular state.
Remember, these should be fairly high-level; while it’s good to have an in-depth analysis of your business and the market, for the first time that you do this exercise, try to distill it down to the top three or four attributes in each category.

Once you have developed your ideas and thoughts, it’s time to tweak the matrix to help understand how this can lead to a strong business plan development.

SWOT action item Matrix

By combining each of these categories in a grid, you can identify specific action items that emerge from the attribute clusters. The two most important areas to be aware of and consider are the Strength-Opportunities and the Weakness-Threat quadrants. These two reflect the immediate areas for business development and defense strategy respectively.

Breaking down your businesses’ market position utilizing the SWOT analysis, you can simply and easily lay the groundwork for a comprehensive business plan that can help you take advantage of market opportunities. One final note about the SWOT analysis; it is not meant to be a static market. Over time, both your business strengths and weaknesses as well as your perceived opportunities and threats in the market can significantly change. It’s a good idea to review and update this grid on a regular schedule (here at Tinking Turtle we review our SWOT items quarterly and develop a new SWOT matrix annually). By doing this, you can ensure that you are aware of where you need to focus your business development objectives for the near future.

~ Mr. Turtle

From the Business Desk: Finishing Projects

August 11, 2014 by Jennifer Raymond

After a delay due to some career changes that Jen talked about earlier, From the Business Desk is back. From the Business Desk is a semi-regular series that looks at some of the important factors in running a Small Fiber Arts Business. This feature revolves around ensuring that all of your business projects have fully completed.

As a small business owner, staying on top of everything necessary to run your business is no small task. With a constant turmoil of new projects, new customers, and everyday business inquiries, it is important to understand what is required for you to close out your existing projects; by successfully and formally closing out a project, it can be put to rest with all parties comfortable that their requirements have been met.

Not all Project Management needs to be this complicated. A few
simple tips can keep you on track to successful completion.
Source: http://en.wikipedia.org/wiki/Gantt_chart

One of the first items to be aware of in the closing stage of a project is that it’s important to identify up front what the final items on your project or to-do list are. For example, if you are working on establishing and running a new class at your shop, you may think that the project is complete when the class runs. Thinking this out ahead of time can help you identify items that are always good to check off before putting a project to bed Namely, ensuring that all compensation and contractual terms have been met and a project post-mortem to document lessons learned. Following through with these steps ensures that you don’t forget some of the important elements of a project for any business: getting paid, and meeting legal obligations. A post-mortem, either publicly or internally is a good time for one or more parties involved to learn from the project, documenting what went well and what could use improvement for next time.

This is an example of using Insightly to keep track of project tasks.
This is the project list for the pattern Sweet Strawberries.

Keeping track of all of this can be overwhelming; fortunately there are several options available that are easy to use in web form. I’d recommend ZOHO Projects or Freedcamp as two of the better solutions available out there for someone just getting started. Other options include systems that link Customer Relationship Management and Project Management. Here at Tinking Turtle, our CRM system, Insightly includes an integrated Project Management module. This provides additional functionality to link projects to various associated parties, and track when a project is waiting on a third party to take action.

No matter how extensive or basic your knowledge of projects is, ensuring that you take some time on all of your projects to double check that your steps are completed is well worth the peace of mind.. The more projects that can be completed without final steps left un-done, the easier managing the entire workload of your business can be.

~ Mr. Turtle

The Importance of Customer Relationship Management

December 11, 2013 by Jennifer Raymond

This is the second edition of a semi-regular series From the Business Desk I am writing to look at some of the important factors in running a Small Fiber arts Business. This month’s feature revolves around using technology to grasp one of the key factors in the success of a business: your customers.

Customer Relationship Management (CRM) is a huge buzzword in any business today. With more and more technology at our fingertips, it is easier than ever for the informed customer to make their purchasing decision, go shopping through e-commerce, or conduct their own research irregardless of advertising mediums. Businesses can and should be doing the same things with regards to their customers.

In theory, CRM revolves around tracking and recording every interaction a business has with their customers, from email conversations to support calls to purchasing history to who is prompt on payment. This is a lot to aggregate and understand, however by doing such, a business can derive significant information from this data. In larger businesses, there are dedicated CRM systems such as Salesforce that can be leveraged for that purpose; for small business however, many times these records live on post-it notes, sales receipts, and excel spreadsheets.

The Tinking Turtle facebook page lets us track who likes the company,
and who corresponds and interacts with our brand.

I wanted to take a moment to share a couple of good, and extremely cost effective resources for Small Businesses to use to be able to better track their customer information. The first is through Social Media. Like it or not, Facebook is the wave of the future for businesses, and by being involved in this network of potential customers, every interaction is recorded and available for review. Not only can you communicate directly with friends, family, and interested parties, you can document who is liking your page, their likes, and record shared content among them. In this way, you have a track record, a history of what brings your customers to your brand, and can use this to further development your business strategy.

We use Insightly to track the status of our
design projects among other uses

The second tool I would recommend every small business check out is an online CRM application. There are countless review sites out there to cover the good, the bad, and the ugly of a whole world of CRM applications that are cheap or free to use for beginners. There is honestly no “best” site out there; a lot of the choice boils down to what you are doing as a business, and what features you value most. Tinking Turtle uses Insightly as our CRM. What drew me to implement this for the business earlier this year was its’ integration with Google Apps, a plus for the IT side of me, as well as its’ focus both on Customer Relationship and Project Management. In Insightly, it is easy for us to not only track who we do business with, and the data surrounding those relationships, but as well we can track opportunities and projects. Insightly’s “web of links” approach makes it easy to associate which design calls tie back to which publishing companies, for instance, and which projects were submitted for each call for submission. The best part about Insightly is that for the just starting small business, it free for a limited number of contacts and items. This lets any business use the system to get their feet on the ground, and then once they have reached a size where they have the financial strength to begin evaluating more features, they can easily continue that through the system.

No matter what your business does, be it fiber or yarn production, designing, or a LYS, having a method to aggregate your customer information is an excellent step to take to further your business success. I want to stress here that there is no right or wrong answer; if you have a card catalog and Rolodex that works for you, all for the better. However, as the customer moves more and more into the digital arena of the internet, I would encourage all business owners to consider some of the online tools discussed above.

Industry Metrics: What You Need To Know

October 26, 2013 by Jennifer Raymond

One of the reasons I love working with Michael is the new perspective he brings to the business. He might not be able to knit a hat, but he can tell me that this winter, I should be doing different things to improve my sales. Today he touches on one of the tools you can use to make business decisions – data analysis.

We are all surrounded by data. In our daily lives, from the morning commute to the afternoon water-cooler conversations, there exists a wealth of data in the world around us. Data is one part in a hierarchy of ways to think about and interpret the world around us. Unto itself, individual data points have no meaning. It is only with analysis that information, which is data that is used to make decisions, can be derived. This decision-making lends us knowledge, which is the goal of informed decision-making. By being able to interpret and synthesize the data available in any industry, business owners can take advantage of opportunities.

pattern, knit, designing, math, data, analytic, spreadsheet, metrics, tinking turtle

Knitting Designing is all about turning Data like measurements and stitch counts into information: the finished pattern

My day job is as an IT manager for a healthcare technology company in DC; in this role I deal constantly with large data sets, turning various discreet data points into usable knowledge. This type of analytic approach is vitally important for small businesses (and the craft industry) in order to understand the market and position yourself to take advantage of trends. For fiberarts businesses (both LYS’s and designers/publishers), this is doubly important; with any commodity based industry, trends can come and go at a breakneck pace. What was trendy last fall may have fallen by the wayside this year; it is only by being able to analyze the market that you can position yourself to act accordingly.

In the Fiberarts industry, there is a wealth of discreet data that is ripe for the picking.

Bristol, (BristolIvy on Ravelry) writes a regular series entitled The Stock(inette) Market where she takes an in-depth look at pattern sales trends based on Ravelry data for a period of time. She aggregates this data, and then provides the analysis to be able to discern trends and areas of growth. This provides savvy designers a starting point for getting an idea of where the market is headed. For example, in her most recent post covering the month of September, she finds that as we head towards the cooler months, neck accessories are the dominant sales driver, along with cold weather accessories such as hats, mittens, and gloves. Gathering this information over a period of time, up to and including years, the savvy statistician can paint a picture of the market, and be able to position themselves to take advantage of publishing patterns at the opportune time.

For TNNA members, the organization offers a wonderful resource in the form of a series of surveys they conduct of all fiber artists on a regular basis. This data consists of a wide range of information, from yarns frequented to number of projects on needles at one time. In addition to being able to demonstrate current trends, the TNNA data is presented in comparison to previous surveys, to show trends over time, a powerful way to look at data to gain insight into the future.

Ravelry itself can be a source of data, such as in the graph below, mined from our Tinking Turtle sales.

chart, excel, pie, tinking turtle, patterns, designs, type, socks, softie, pullover, hat

One must be wary, however, in relying completely on technology to package and interpret data for us. Technology can be useful to turn data into information, however it is that human interpretation that gives analysis it’s kick. If computers could provide the right analysis every time, there’d be no need for weather forecasters, for instance. How you turn data into knowledge is what differentiates man from machine. This is an important distinction for business owners for all fiberarts related businesses. Creating knowledge is one of the cornerstones for how one can grow a successful business in this or any industry.

So you want to work for yourself: Now What?

October 10, 2013 by Jennifer Raymond

From the Business Desk

Welcome to the first edition of a semi-regular series that I will be contributing to this site focusing on the business side of running a small fiber arts business. As introduced in the first post I wrote earlier this week, I officially

joined the Tinking Turtle team back in August to take on management of the business side of the organization: contract management, accounting and bookkeeping, and strategic/structural planning. I plan on writing monthly topics discussing some of the trials, tribulations, and learning experiences that have come about in the past three plus years as a small business.

For my first topic, I wanted to open the door with an overview of small business organization, as for many business owners, this is the first consideration after making the plunge and deciding you want to start being your own boss.

The most significant difference that a business owner should understand among all levels of organization is that there is a trade off between operational flexibility and protection from risk. As a business owner, this is accomplished by either legally separating your business and yourself into two separate entities, to reduce your individual liability and risk in the event of an issue, or by having you and the business be one and the same to maximize your flexibility and minimize your reporting requirements.

The IRS has a great overview site to discuss how different organizational structures are affected by taxation and reporting requirements. Additionally, a wonderful resource for the crafty type person to begin to explore what option would be best for you is The Craft Artist’s Legal Guide, presented by NOLO.

Please note that the below information is presented as advice only. If you are considering any of these specific options, it is highly recommended that you consult with an accountant or attorney to understand any additional legal ramifications of your decision.

The core business structures a small business would be considering fall into three primary groups: Sole Proprietorships, Partnerships, and Corporations of various types. Sole Proprietorship and Partnerships are considered unincorporated types of business, while the various type of Corporation, explained below, are all incorporated, which means they are legal entities filed within the state of primary operations of the business.

There are no requirements to being operating your business as a Sole Proprietorship at the macro level (certain municipalities may require business licenses, be sure to check with your local licensing board first!); once you start operations, you are operating under this structure. With the Sole Proprietorship, your only structural requirements are to file additional forms with your income tax on an annual basis. The drawback of this level of organization is that there is limited protection from risk as a Sole Proprietor, so you personally can be held accountable for the debts and tax liability of your business.

Partnerships are similar to Sole Proprietorship in that they require little formal reporting outside of an annual report to the IRS. Partnerships are strongly recommended to prepare a formal agreement, to codify some of the responsibilities or distributions, especially if it is not an even split between the applicable parties. Partnerships additionally do not limit individual liability, and in the event of a dispute, all partners and their assets are considered fair game.

The most formal level of organization for a small business is one of many types of Corporations. There are three specific types, all of which exist as stand-alone entities, separate from the business owners: the S Corporation (S-Corp), the C Corporation (C-Corp or what is traditionally referred to as a Corporation) and the Limited Liability Corporation (LLC). The largest difference between these different structures are how corporate taxes are handled; C-Corps are taxed as separate corporate entities with a separate tax governance and structure; S-Corps are what are considered “pass through” entities, where any tax burden is paid by the owners or shareholders. LLCs are a fairly new entity that are governed by state law, and can be organized in multiple ways, but that’s a topic for another post. Any of these forms of corporation are established by incorporating with the cognizant state authority, usually the Secretary of State.

No matter which structure you choose for your business, having a plan for how you want to establish yourself is key to being a successful business owner, and turn the craft hobby that you love into a viable profession.

Are You Missing out on Important Information?

October 4, 2013 by Jennifer Raymond

If you aren’t collecting customer feedback from your customers, you’re probably missing out on important information. “But my customers are happy! I don’t get any complains,” says you. Let me tell you something.

I have folders of class evals.

A lack of complaining doesn’t mean that your customers are happy, it just means that they aren’t dissatisfied. That, is a problem. You don’t want customers that are content with your service. You want fans. You want raving fans.

When I was in the YMCA they were using a system of rating customer satisfaction. Customers would rate their experiences on a scale of 1-10. Any customer that rated their satisfaction a 9 or a 10 was put on the positive side. Any customer that rated their experiences from a 1 to a 4 were put on the negative side. And the customers that were 5-8? Were discarded. Not because their experiences weren’t valuable, but a 5-8 doesn’t talk about their experiences. 9 &10’s will talk positively about their time with the YMCA. 1-4’s will talk negatively. And for a person that was considering coming to the YMCA? For every negative 1-4 they heard, they needed seven people raving about their time at the YMCA to just give it a try. That’s what they needed to decide that the one negative person was an anomaly. It’s because people in the 5-8 range don’t talk – negatively or positively, so deciding people don’t hear about it.

If you aren’t actively working to make sure every person that buys or pattern or takes your class is a raving fan, then you are missing out on an opportunity. When I collect feedback from my customers, I look at the 1-8’s and see why they aren’t a raving fan. Do I need to engage people more? Do I need to take breaks or change the pacing of my class? Do I need more step by step instructions for my patterns? This information ensures that the next time I engage with a customer, I’m making their experience the best it can be, and turning them into a raving fan.

So how do you get customer feedback?

The Captive Audience Survey – If you have a captive audience like a class, you had better be handing out an evaluation form at the end of each of your classes. You have a captive audience! Normally, I have a little pitch that goes something like this,

“Your feedback is very important to me. It’s how I improve my instruction. Right now you should be receiving a class eval form, and I’d appreciate if you would take a moment to fill it out and pass it back to me. If you think there’s something I should improve, please let me know. If there’s something you think I did well, I’d be happy to hear about that too! Also note, there’s a place for you to provide your email, and there’s a little box next to it. If you don’t check the box, I won’t ever email you. Only if you check the box will I sign you up for my newsletter about future classes.”

If someone rates you a negative review, follow up with them. See if there is anything you can do to change their experience – be it a discount on another pattern, extra instruction, or other perk. At the very least, let them know that their feedback is being heard and acted upon – this often makes people think better of the business.

My class evaluation looks like this – feel free to take ideas! And no, this one isn’t one I filled out.

The Email – if you aren’t fortunate enough to have your customers as a captive audience, and email survey is a good way to get feedback. The problem is going to be how to get them to fill out the feedback form. Offering an incentive – like a free pattern or entry into a drawing – is a good way to lure people into giving you the engagement you need. Keep in mind though:

keep the survey short – try to keep things under seven questions. Ten questions is too many.
don’t make it like work – use a lot of white space
give a sliding scale or number system – keep it quantifiable
leave room for comments at the end.

The Interview – most often informal, the interview is a good way of getting intimidate feedback, and you probably will have more engagement than an email. Normally interviews are conducted either in person or over the phone – for instance, you had a problem with a customer and you call to check and make sure the issue is resolved to their satisfaction. Or perhaps you are in conversation with a student after class and you ask them what could have been done better. Most people won’t turn down a request for feedback, but there are disadvantages. The drawbacks include the data being skewed by people not wanting to give the feedback directly to you. Sometimes people are not comfortable stating their complaints out loud.

What do you do after you’ve collected your data?

Perhaps the most important thing for you to do after you’ve collected feedback from your customers is to act on it. Wait a day or two after the event to read the evaluation – when you have some distance from the emotions. Keep records of how your students are rating your classes/product, and track change over time.

My records of previous class evals.

I keep my class evaluations for another reason. When I go to an interview or a pitch session, I bring a few of the good class evals to show to the people I’m talking to. Nothing is more powerful than positive testimonials.

Do you collect customer feedback? I’d like to know. Drop me a line on twitter or facebook.

Sign me up!

Thank you for visiting!

Tinking Turtle

From the Business Desk

Latest Posts

Social Feed

Email Signup

Don’t miss a stitch!