I visited Arkansas over the holiday weekend recently and picked up some interesting information from small business owners there.  As we all know, new businesses face daunting odds:  only half of all businesses launched annually will survive five years, and only one-third will survive past 10 years, according to the SBA. Arkansas has more than 241,000 small businesses, some quite successful.  Business owners everywhere who succeed do more than build it and hope buyers will come.  They stick to a written business plan vetted by a professional. They spend judiciously and reinvest in their business, and many effectively use the power of social media.

Words of wisdom from four Arkansas entrepreneurs…

James & James Furniture – www.CarpenterJames.com Founded 2012 (Facebook & Pinterest)

In just two years the college friends have grown their wood furniture startup into a company that employs 10 people.  They have found a niche market for high-quality, affordable wood furniture.  They moved from a garage to a 4,800 square foot shop with showroom.  They have over 14,000 Facebook followers and customers who have posted photos of their James & James products in their homes and places of business.  Their advice for other small businesses:

• Focus on the product.  “It sounds basic, but if you have a good product that fills a need at a good price that makes everything else you do easier.”
• Use social media to build a strong, emotional connection with customers.
• Tell your story. “Let people know who you are, how you came to be and what’s      important to your business.  People want to buy from someone they know, not a nameless entity.”
• Don’t overextend. “When you’re selling online, it’s easy to get distracted by other things you could sell and other makets you could reach.  Know what you do well and do it.”
• Don’t forget the customer. “If you don’t take care of your customers, they will let other people know.”

Dirty Secrets Boutique – www.Dirtysecretsboutique.com Founded 2011 (Facebook & iPhone app)

The owner loves to get fabulous designer duds on the cheap.  So do other people who are buying, selling and swapping their stuff through Yancey’s online store.  She was an eBay and Craigslist shopper herself and now has 15,000 users on her site where sellers pay a flat fee for a selling period.  Her advice for other small businesses:

• Test your market. Make sure the public needs your product.
• Build professional relationships and friendships. “My biggest supporters and advocates are friends I’ve met through the business-building process.”
• Allow extra time for website development before marketing the launch of the site.
• Use focus groups to find potential user issues and help define areas of your website than may be complicated or confusing to users.
• Don’t overspend. Create a two to three year budget to stay on track financially. Scale it according to your projected business growth. Unfortunately, you have to spend money to make money, so an important question to ask is, “What will I need to spend to make this successful?”
• Don’t forget to enjoy the journey. “The first few years are financially and      emotionally demanding.”

Bourbon & Boots – www.Bourbonandboots.com Founded 2012  (Facebook, Twitter, Pinterest & Instagram)

This online only store sells all things Southern.  Every day it releases several new products and lets their internet followers know.  They worked with a core team of seven people experienced in internet marketing.  An early start success gave the company a boost on Pinterest when a piece of art and a handmade necklace collectively generated more than 2.5 million pins.  The company has been growing at a rate of 40 percent per month and now works with about 150 vendors.  Their advice to new businesses:

• Do your research. “Know what you’re up against. You have to know your business and the industry that you’re getting into.  If you’re getting into the Internet, know how websites work.”
• Don’t be afraid to ask for help from others in the industry.
• Don’t give up.

Roll & Tumble Press – Founded 2010 (Bourbon & Boots, picturesonwalls.com, Etsy)

The husband and wife team started selling the tattoo artist husband’s original illustrations, which are cut into woodblocks that the wife uses in the letterpress process, on the website Etsy.com, but found it to be a “needle in a haystack situation.”  Then, a blogger featured one of their prints, and the exposure led to wholesale orders, gallery business and lots of individual requests.  “The power of the Internet is kind of insane.  You get one image out there, and it explodes from that.”  Their advice for business owners”

• Seek blog coverage. Target a blog what would be interested in what you do.  Learn the pitch process, and develop a digital lookbook of your work.
• Consider an online marketplace; they have more resources than individual shop owners, and many run low-cost promotions, which for a monthly fee provides links to your shop.
• Find online businesses that you admire and research their business models.       Learn from your peer group.
• Be realistic about sales expectations.
• Don’t ignore styling.  “Really beautiful photography is important. Photos have to be appealing because people aren’t in a boutique where they can pick up items and look at them.”
• Don’t underestimate the workload.  “It’s very difficult to get exposure.  Nothing is an automatic sale.  Marketing is a full-time job.  You have to be resourceful.”
• Don’t forget customer service.  “If you say you’re going to ship something, do it.  Communicate clearly the shipping guidelines.”

What have you learned in your business that you would share with others in business?  I look forward to hearing from you and sharing your wisdom with our SpringBoard attendees who begin their eight week business planning program in September.

Ready to get started with a new business or work on your existing business?  Call for an appointment to see how we can help.  931-456-4910.