Never underestimate the importance of the personal touch in a small business
A small business almost always reflects the personality and passions of its owner, giving clues about how the owner approaches life, and even whether an owner is building for the future or is simply in business to make a short-term profit.
So says the Business Coach, who for several weeks has been sharing business secrets with small business owners across the country in the weekly SABC series of the same name.
A major difference between major businesses and small businesses is that small businesses reflect the passion, dedication and service levels that are usually associated with the constant presence and attention of an owner. It is this familiar ‘family feel’ that keeps customers coming back. It is therefore a major business asset that must be safeguarded.
Clive Pintusewitz, Head of Small Enterprise and Enterprise Development at Standard Bank, says that unfortunately, some small business owners forget that customers place enormous value on the personal service, friendliness and quality offered by small businesses.
“As an owner becomes more involved in the everyday concerns of growing a business, he or she may be tempted to take short cuts to achieve growth,” he says. “Unfortunately, two vital business components are then compromised. The first is quality and the second is the personal touch that is a small business’ unique selling point.”
The reasons that many people buy or get services from small businesses, says Mr Pintusewitz, are:
• Personal advice;
• Personal project and service oversight by the business owner;
• Better quality as the owner is on site supervising workers;
• Strong after sales service and good follow-up, and;
• Quick rectification of complaints because the owner is intent on safeguarding his business reputation.
If a business grows rapidly, all the above ‘plus factors’ can be quickly hindered by an owner who compromises in an effort to gather as much business as possible. “Sadly, many of these owners then bring in sub-contractors to do work on their behalf,” says Mr Pintusewitz.
What may happen then is that:
• Customers, who have often been referred by happy customers, may see that the quality of work does not meet expected standards;
• If there is a problem, and a sub-contractor is involved, getting the issue resolved is difficult;
• The customer still holds the owner responsible. The owner in turn is reluctant to undertake repair work, to safeguard the reduced profit margin or even to avoid a loss;
• A stand-off between the three parties can then develop, leaving the small business with a damaged reputation and loss of future business.
“When a business is small, owners will take on all the work they can and overload the business. What they lose sight of, is that if customers have seen the quality of an earlier job, they will often be prepared to be put on a waiting list, rather than use the services of another supplier.
“An owner should always therefore be honest with a potential customer. Explaining that the business has a backlog to fill and this is because there is the ‘personal touch’ on all contracts, which is strength rather than a weakness. It can work well for a small business by allowing pre-planned work to build a busy schedule for months ahead.
“Allied to quality and the personal touch is training and future planning,” says Mr Pintusewitz.
“It is important that depth is developed within a business. Either a trusted employee, or a member of the family, must be trained to work at the same level as the owner. This ensures that standards are maintained and the owner can happily leave project work in good hands.”
“The unfortunate alternative may be an owner who becomes a prisoner of the business. Unable to delegate work, the owner ends up working seven days a week. The result is dropping standards and often physical and mental burnout.
“When starting a business, owners should be looking at the long-term prospects. By planning for the future, forming a strong partnership or grooming a family member to eventually take on the business, will ensure that a legacy of business continuity and quality is maintained. Solid business growth is then guaranteed.”
Hints on writing business plans, strategies for growing a business, creating a legacy and a host of other issues impacting on building a small business can be found in the “Coach Yourself” modules online at http://thebusinesscoach.standardbank.co.za.
In the 11th episode of the Business Coach that was aired on Sunday, 9 September, viewers saw how the owner of a signage business faced the problems caused by sub-contracting work out to operators who, although experienced, lacked the design flair and commitment to quality required to meet his standards.
In the coming weeks, SABC3 viewers will see a range of different issues that small business owners grapple with on The Business Coach.
So says the Business Coach, who for several weeks has been sharing business secrets with small business owners across the country in the weekly SABC series of the same name.
A major difference between major businesses and small businesses is that small businesses reflect the passion, dedication and service levels that are usually associated with the constant presence and attention of an owner. It is this familiar ‘family feel’ that keeps customers coming back. It is therefore a major business asset that must be safeguarded.
Clive Pintusewitz, Head of Small Enterprise and Enterprise Development at Standard Bank, says that unfortunately, some small business owners forget that customers place enormous value on the personal service, friendliness and quality offered by small businesses.
“As an owner becomes more involved in the everyday concerns of growing a business, he or she may be tempted to take short cuts to achieve growth,” he says. “Unfortunately, two vital business components are then compromised. The first is quality and the second is the personal touch that is a small business’ unique selling point.”
The reasons that many people buy or get services from small businesses, says Mr Pintusewitz, are:
• Personal advice;
• Personal project and service oversight by the business owner;
• Better quality as the owner is on site supervising workers;
• Strong after sales service and good follow-up, and;
• Quick rectification of complaints because the owner is intent on safeguarding his business reputation.
If a business grows rapidly, all the above ‘plus factors’ can be quickly hindered by an owner who compromises in an effort to gather as much business as possible. “Sadly, many of these owners then bring in sub-contractors to do work on their behalf,” says Mr Pintusewitz.
What may happen then is that:
• Customers, who have often been referred by happy customers, may see that the quality of work does not meet expected standards;
• If there is a problem, and a sub-contractor is involved, getting the issue resolved is difficult;
• The customer still holds the owner responsible. The owner in turn is reluctant to undertake repair work, to safeguard the reduced profit margin or even to avoid a loss;
• A stand-off between the three parties can then develop, leaving the small business with a damaged reputation and loss of future business.
“When a business is small, owners will take on all the work they can and overload the business. What they lose sight of, is that if customers have seen the quality of an earlier job, they will often be prepared to be put on a waiting list, rather than use the services of another supplier.
“An owner should always therefore be honest with a potential customer. Explaining that the business has a backlog to fill and this is because there is the ‘personal touch’ on all contracts, which is strength rather than a weakness. It can work well for a small business by allowing pre-planned work to build a busy schedule for months ahead.
“Allied to quality and the personal touch is training and future planning,” says Mr Pintusewitz.
“It is important that depth is developed within a business. Either a trusted employee, or a member of the family, must be trained to work at the same level as the owner. This ensures that standards are maintained and the owner can happily leave project work in good hands.”
“The unfortunate alternative may be an owner who becomes a prisoner of the business. Unable to delegate work, the owner ends up working seven days a week. The result is dropping standards and often physical and mental burnout.
“When starting a business, owners should be looking at the long-term prospects. By planning for the future, forming a strong partnership or grooming a family member to eventually take on the business, will ensure that a legacy of business continuity and quality is maintained. Solid business growth is then guaranteed.”
Hints on writing business plans, strategies for growing a business, creating a legacy and a host of other issues impacting on building a small business can be found in the “Coach Yourself” modules online at http://thebusinesscoach.standardbank.co.za.
In the 11th episode of the Business Coach that was aired on Sunday, 9 September, viewers saw how the owner of a signage business faced the problems caused by sub-contracting work out to operators who, although experienced, lacked the design flair and commitment to quality required to meet his standards.
In the coming weeks, SABC3 viewers will see a range of different issues that small business owners grapple with on The Business Coach.
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