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Small Business Survival Guide: 28 tips to unlock you own success story [eBook]

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The document provides tips for small business survival organized into chapters on management, money, operations, marketing, clients, and growth. Some key tips include having a business plan with SMART goals, differentiating your business, managing your time well through delegation, embracing social media and developing a strategy, understanding customers well, and staying in touch with clients between projects. The overall message is that small businesses can succeed by focusing on the fundamentals of good management, financial practices, operations, marketing themselves effectively, serving customers, and planning for growth.

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The LINE//SHAPE//SPACE Small-Business Survival Guide: 28 tips to unlock your own SUCCESS STORY

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2 TABLE OF CONTENTS Introduction Chapter 1: Management Have a plan Set SMART goals Differentiate Manage and value your time Learn to delegate Adapt! Chapter 2: Money Consider crowdfunding Think like a banker Pass certain costs along to clients Chapter 3: Operations Leap into the cloud Get organized Assemble an advisory board Chapter 4: Marketing Demonstrate how you solve a problem Offer valuable content Offer free consultations or free trials Embrace social media Develop a social media strategy Get listed Chapter 5: Clients Understand your customers Stay in touch Learn how to listen Chapter 6: Growth Plan for expansion Seek referrals from existing customers Form alliances Additional reading material People behind this guide

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INTRODUCTION For most people running small businesses, there’s not enough time, money is tight, and there are just too many hats to wear every day.Whether you’re an architect,interior designer,landscape architect,contractor, electrician, building or civil engineer, HVAC or solar-panel installer, product designer, or animator, this guide aims to make life a little easier for you. Read these 28 small-business tips and tricks—including advice on management, money, operations, marketing,clients,and growth—for some actionable advice to help you alleviate the work-related stresses that keep you up at night. ABOUT LINE//SHAPE//SPACE Line//Shape//Space is a blog dedicated to inspiring and educating small-business designers,drafters,and animators to do their jobs better by providing practical business tips, educational infographics, valuable software tutorials,and inspiring small-business stories. ABOUT AUTODESK Autodesk,Inc.,is a leader in 2D and 3D design,engineering,and entertainment software.

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CHAPTER 1: MANAGEMENT

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Ben Franklin put it best: “By failing to prepare, you are preparing to fail.” Those words hold true today, especially for small businesses—every business needs some kind of plan in order to succeed. else,”Amenta says.“Even people who aren’t looking for outside funding, who are self-funding or getting funding from their family,need to create a business plan because every startup has to be able to self-fund for around 36 months.” Jim Alles,the New York City chapter chairman of SCORE,a resource partner of the Small Business Administration (SBA),adds this advice: “All good plans will contain separate marketing and sales plans that deal with competitors and customers, as revenues and expenses.” 1.HAVE A PLAN 5

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6 Everyone knows that it’s a good idea to set goals.But the key is setting the right goals.As you’re putting together your goals Relevant,andTime-bound.Byusing the SMARTframework,you’ll stand a much better chance of moving your business forward. 2.SET SMART GOALS

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7 It’s a big market out there,and in order to survive,it’s essential that your business differentiates itself. Whatever it is,it’s gotta be better,and it’s really gotta have a place because you can just go on the Internet and get a million of anything.” What does your companyoffer that no one else can provide? Is it customer service? Deep expertise in one particular specialty? 3.DIFFERENTIATE

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8 project? Scoring these gigs can help grow your business,but they don’t always pan out like we hope. FedericoNegro,afoundingpartnerofCASE,aBuildingInformationModelingconsultancythatgrewfromthreeto21employees “Architects get totally starstruck at projects and the opportunity to work on them, to the point that they will give their lives away for free,”he says.“You can’t afford to do that with your own business. “You think the investment is valid because of what it will bring in terms of future opportunities, but if you look at what it actually costs,it’s not likely to make up for your loss.If you have time to make such an investment,be very focused and clear about what you’re looking to get out of it.Value your work highly.If somebody is not willing to pay for it,then move on.” Bottom line: Whether you’re an architect,contractor,product designer,electrician,animator,or somewhere in between, you can’t give your work away for free.You’re worth more than that. 4.MANAGE AND VALUE YOUR TIME

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9 We get it—sometimes it’s tough to let go.But you can’t do it all,and that’s why delegating is one of the most important things mission-critical tasks. and sales. But at a certain point I had to be willing to let go of things that someone else could do better for the sake of growing the business,”Taylor says. “Last year,I made the decision that there was someone else who could sew faster and make a better pattern than I could,so I hired her.I had to get over the idea that if I didn’t make every product,it was still‘mine.’That allowed me some time to focus on a rebrand and relaunch our website.” 5.LEARN TO DELEGATE

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10 climate of global economic belt-tightening,AIF saw much of its tried-and-true business dry up. investing in capital expenditures,” says AIF cofounder Peter Exley.“So we’re seeing far less investment in building children’s museums.Peoplearenotvotingonreferendumstobuildnewlibraries,sowe’reseeingalotlessinvestmentinthisinfrastructure based in play and learning.” Fortunately,AIFdidn’tneedtoshiftfocus—itjustneededtoshiftclients.“Whatweareseeingmoreofareexpandingbusinesses trying to get in on creative approaches to play and learning,” Peter says.“We’re working right now with a pediatrician who wants to set himself apart from the other pediatricians in his building,and he’s doing that through design and service.” Perhaps adapting to new forms of sustenance—er, new customers—is all it takes for your business to survive in new environments. 6.ADAPT!

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CHAPTER 2: MONEY

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12 such as Kickstarter, Indiegogo, and Crowdfunder are helping jump-start all kinds of ventures, particularly product-design businesses. Each of these sites has their pros and cons: Kickstarter is user-friendly, offers all kinds of tutorials, and has a system that breeds loyalty in funders.However,if project creators fall short of their fundraising goal,they won’t collect any of the pledged money. their goals,but it takes a sizeable 9 percent cut of funds raised. Crowdfunder offers entrepreneurs a large network of funders, but is best for businesses that are further along because it requires product or service demos and heavily favors ventures that have business accreditation. There’s no question that these sites are on the rise. According to Forbes, the crowdfunding industry is expected to grow to $5.1 billion in 2013.Could crowdfunding be right for your business? 1.CONSIDER CROWDFUNDING

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13 If you decide to seek small-business loans from a more traditional route, try to put yourself in the mind of a banker. As Jeff Parker,SVPof the Small Business Segment for U.S.Bank,explains,it all comes down to the 5 C’s of credit: Character,Conditions, Capacity,Capital,and Collateral. Ultimately, your ability to secure a loan depends largely on how your application answers these questions: What is the Character of the borrower? What are the credit Conditions requested? What is the Capacity for repayment? What Capital is the borrower investing? What Collateral is being used? We could devote more than a few eBooks to the art of crafting a business plan and securing a loan, but if you bear in mind the 5 C’s,you’ll be off to a great start. 2.THINK LIKE A BANKER

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14 Tax season can be painful enough—no need to make it worse by having to scramble at the 11th hour.Do yourself a favor and “The biggest trap for many small-business owners is that they’re so busy,they leave things until the last minute,”says Lindsey Try a tool like Intuit’s QuickBooks to track your transactions, so that you can monitor your expenses and be ready when it’s 3.TRACK YOUR FINANCES

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15 costs are adding value to your clients’projects,you should be passing along at least some of those costs to them. One baton that you can pass is the cost of software rental.The software industry is rapidly moving toward a rental model— last May, for example, Adobe Systems abandoned updates of its Creative Suite products and boxed software in favor of Creative Cloud,a $29.95 monthly subscription service that now controls its entire portfolio of graphic design,publishing,and video/audio production software.For its part,Autodesk also offers rental packages for some of its design software,including AutoCAD Inventor LT Suite and AutoCAD Revit LT Suite. 4.PASS CERTAIN COSTS ONTO CLIENTS

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CHAPTER 3: OPERATIONS

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17 ‘The cloud’ is more than just a buzzword—it’s actually a great solution for many of your small-business needs.Tools such as Google Drive andAutoCAD 360 make it easyto collaborate on everything from documents and spreadsheets to CAD drawings, what you do best—not on things like installing software updates or trying to remember to click“Save”every two minutes. What about security,you say? The truth is,cloud-service providers go to great lengths to ensure security of your data because their business depends on it. Abreach in securitycould be a death knell for a cloud-storage business,so it’s their number-one are more likely to get into the wrong hands from someone walking off with your laptop than they are by someone hacking into a highly encrypted cloud storage system. 1.LEAP INTO THE CLOUD

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18 Life is full of trade-offs: quantity vs. quality, time vs. money, and cost vs. performance. How do you choose? When it comes to purchasing the gear that helps you and your colleagues do your jobs, it’s important to evaluate how trading cost for performance can affect your operations. Consider a quandary that many small businesses face: buying PCs vs. workstations. Most business PCs range from $500 to $1,000,whereas a workstation can be $1,500 to $3,000.Is the extra computing power worth the cost? The key question is: How much time does it cost you in downtime and in time spent dealing with issues that come from underperforming computer hardware? If a workstation saves you 30 minutes a week over the course of three years,that adds up to 26 man-hours. If your rate is $50 per hour, then a 26 hours saved is $1,300. Keep in mind, too, that colleagues will be happier—and thus more productive—on tools that are more reliable. Decisions around gear aren’t cut and dry.But make sure to take a holistic view of the costs when evaluating your options. 2.OUTFIT YOUR TEAM WITHTHERIGHTTOOLS

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3.GET ORGANIZED ORGANIZED 19 A wise grandmother once told Line//Shape//Space,“a place for everything,and everything in its place.”Hear hear.If you’re not organized with your small business you riskcreating problems and possiblylosing clients.For Linda Rothschild—organization expert to über-personality Heidi Klum—organization in large part comes down to making space. “You need to look at everything individually and make a decision about it.‘Is this something I really need?’ Say you have a four-shelf bookcase stuffed with books and manuals and papers,”Rothschild says.“Start on the top shelf and go through each item individually and decide to keep it or not, or it may be that someone else needs it, or maybe it’s totally outdated and should be thrown away.It’s a process that you need to make part of your daily routine.” Looking for extra room? Try the oft-neglected up-space.“Up-space could simply be higher shelves, or putting up a pegboard to hang things,”Rothschild says.“That increases overall room space.Using the top part of the closet is great,that area above the pole and the shelf.It’s the least-used space,so that’s where you put things you don’t need as often.” 3.GET ORGANIZED 3.GET ORGANIZED ORGANIZED ORGANIZED ORGANIZED ORGANIZED ORGANIZED

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20 Lots of entrepreneurs have a can-do,self-reliant attitude.But everyone could use some advice now and then,so it’s important to set up your own council of elders. “If you’re the manager and you want your business to grow,it’s a good idea to set up some kind of advisoryboard immediately,” and is successful in a way that you want to be successful,someone who is a client,and maybe someone in another business entirely.Take them out to a very nice lunch quarterly,ask hard questions,and insist on honest answers.We all need input.We can’t run our businesses in a vacuum.” 4.ASSEMBLE AN ADVISORY BOARD

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CHAPTER 4: MARKETING

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22 Whether you’re designing your website or giving your elevator pitch, it’s critical to explain how your business solves a customer’s problem.“Your website should be customer-centric,” says John Beveridge, a 30-year veteran of the management consulting industry.“Instead of saying,‘We’re innovative,’which doesn’t mean anything,your site should state,‘We do this,and we provide that.’You want to show that you understand customers’pain points and give them ideas on how they can resolve those pain points.You really want to solve their problems.” 1.DEMONSTRATE HOW YOUSOLVEAPROBLEM

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23 The in-your-face marketing tactics of yore simply aren’t effective these days. Consider a different tack: Generate leads with Create a unique webpage for visitors to download your eBook in exchange for their email addresses, and make sure to give the offer a compelling title. Webinars can be another effective lead-generation tool. As with the eBook, you’ll want to provide a compelling title, and require participants to submit their contact information in order to join. 2.OFFER VALUABLE CONTENT

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24 As Rapidan Strategies’John Beveridge explained to Line//Shape//Space,offering free consultations can be a great wayattract new prospects and bring them closer to a sale. “The consultations can be an hour or a half-hour,and they’re really sales calls.The potential customer has done the research, they want to buy, and they’re ready to speak with an expert.This free consultation is a chance to learn what the customer’s needs are and whether they are a viable business prospect or not.It takes you much closer to a decision point.” Selling a product instead of services? Offering a free trial or sample can be a great way to get one step closer to a sale. 3.OFFER FREE CONSULTATIONS OR TRIALS

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25 Love it or hate it, social media is here to stay.“I tell people who are afraid of or think they don’t need social media to either retire now and sell your business,or read a book called The Zen of Social Media Marketing: An Easier Way to Build Credibility, Generate Buzz,and Increase Revenue,”says Jim Alles,the New York City chapter chairman of SCORE,a resource partner of the Small Business Administration. Alles explains:“Facebook is relatively cheap for advertising.That is the new way of marketing and will be increasingly so for street and giving out stuff doesn’t work well.Social media and all its different marketing tools have changed the world.” 4.EMBRACE SOCIAL MEDIA

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26 Okay,so you’re a social-media believer.Before you create accounts on everysocial networkunder the sun,take time to develop examine your competitors’presences.Set goals.Then,develop guidelines with any colleagues who will be using the company account,and sketch rough outlines for the types of content you want to share,and the proportion of shares for each type. At a loss for what to say? Share a news article.Highlight an upcoming event.Pose a question.Ask your followers for feedback. respond to those who take the time to engage with you. 5.DEVELOPA SOCIAL-MEDIASTRATEGY

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27 chances of potential customers discovering your business, it’s a good idea to register with the Open Directory Project and Google Places. The Open Directory Project is the largest directory on the web and critical to informing the major search engines that you and Maintenance category in the Business section.Step-by-step instructions can be found here. Creating a local listing on Google Places will go a long way to putting your business on the radar of the largest search engine on the Internet. Google has recently made a lot of changes in order to make sure that location factors greatly into what results it presents to consumers,so don’t miss out on leveraging one of your best assets—local location! get you well on your way. 6.GET LISTED

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CHAPTER 5: CLIENTS

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29 This might seem like a no-brainer, but according to SCORE’s Jim Alles, failing to understand the customer is one of the most common mistakes small-business operators make. “I’ve seen 400 clients personally, and in the past three years, I’ve met only one who clearly understood their clients,” Alles the demographics,such as where they live? What are their habits? What do they like,and what don’t they like?’Almost all of them looked at me with glazed eyes.” Don’t let that be you! Strive relentlessly to understand the pain points and motivations of your customers. 1.UNDERSTAND YOUR CUSTOMERS

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30 keep projects coming your way. Timespentmaintainingrelationshipswithclientsbetweenprojectscanpaydividendswhenlargeprojectspresentthemselves. It’s also a great way to transform clients into friends and long-lasting partners.Take key clients to lunch,send a handwritten birthday card,or bring doughnuts if you’re in the area. or LinkedIn contact.So treat these clients with the respect they request and stay in touch by replying to every RFP they send out.Use that avenue to show your active interest and willingness to perform. 2.STAY IN TOUCH

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31 begin with this step: listening.To make sure you’re listening like a pro,follow these best practices: 1.Strike a pose: Proper posture,proper eye contact,and a good smile will serve you well. 2.Wait for it 3.Empathize: Put yourself in the client’s shoes. 4. Acknowledge they believe these points are valid,whether you agree with them or not. 5.Repeat: Repeat back the list of issues your client raised. 3.LEARN HOW TO LISTEN

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32 Not every client-vendor situation is the right one for everyone involved. In that event, you have to be prepared to follow no matter how unreasonable.This is a mistake.It’s good for you.” 4.KNOW WHEN TO FIRE A CLIENT

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CHAPTER 6: GROWTH

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34 Just as it’s important to plan for launching your business, it’s important to consider how you’ll expand and scale. As Andy Taylor, founder of the Wolf+Bear Workshop, shared with Line//Shape//Space, failing to plan for a larger-scale business can eat into your bottom line. company that raised $150K-plus on a Kickstarter campaign.It seems like a lot of money,but nearly every penny is going into production of the kits they promised.They priced the kits and rewards as if they were making them in their living room. But orders,but they still aren’t buying groceries with the business they started.It’s not sustainable.” 1.PLAN FOR EXPANSION

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35 asking your current clients for ideas on potential leads. recommendations for more customers,”Beveridge says. 2.SEEK REFERRALS FROM EXISTING CUSTOMERS

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36 Jordan had Pippen.Wozniak had Jobs.Peanut butter has jelly.Are there partnership opportunities out there for your business? According to SCORE’s Jim Alles,forming a partnership or alliance is one of the best ways to grow. “You form an alliance because the potential partner has the client base you want access to,and you’re taking something new to the potential alliance partner,”Alles says.“When you put the two companies together,you offer one-stop shopping.Look at look for a company that has excellent client acquisition or marketing.It’s about strengths and weaknesses.” You can also seek out partnerships with bigger players to gain exposure. Financial advisor Kathryn Amenta says, “Go into projects that would look good in your portfolio.” 3.FORM ALLIANCES

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37 While it’s important to be on the lookout for new customers,sometimes the next project might be right under your nose—you just don’t know it yet. SCORE’s Jim Alles explains:“If you understand your client’s needs,you can add a new product or service and start selling it to them,as well as new clients.I have a client in environmental engineering; he asked his clients what new service they wanted, and they responded: a service based around building sustainability.He employed experts in that area and made sure the new need of your existing clients.” 4.EXPAND VIA DIVERSIFICATION

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38 ADDITIONAL READING & RESOURCES Further information and detailed articles on all the topics in this guide can be accessed for free at the Line//Shape//Space * blog.Four additional chapters with tips on managing operations,marketing,clients and small business growth. Autodesk understands the challenges of owning and running a small business, and we recognize that your needs are often different from those of larger companies.We make design and creation technology more accessible to small businesses, not just as traditional packaged software but through new formats and platforms such as rental plans,cloud,and mobile devices. We invite you to take another look at our software solutions for small business. TryAutoCAD LT for 30 days, free Choose the LT product that’s right for you * Line//Shape//Space is currently only available in English language.

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39 PEOPLE BEHIND THIS GUIDEThis guide is the result of the efforts and contributions from a number of people. Kylee Swenson Gordon is a writer, editor, musician, admirer of great design, and content marketing manager for the Small Business team at Autodesk. Micke Tong is an artist, curator, and art director for Computers - ery through layer,vector illustration,and collage. Bryan Rahija is a former editor, part-time musician, and full- time graduate student at the University of Michigan’s Ross School of Business. Curt Moreno is a Houston, Texas–based CAD coordinator, writer, and Autodesk University speaker who has been using AutoCAD since 1990. Ninety percent of the photos Dusty DiMercurio takes while traveling are of either food or architecture. Dusty is a music producer and leads the Autodesk Small Business team. Shaun Bryant provides Autodesk product consultancy and training as the director of CADFMconsultants Limited and serves as a director on the board of Autodesk User Group International (AUGI). Hayley Brums is a passionate digital marketer and former di- rector of internet marketing for a small-business startup. Marielle Covington is the nurture marketing manager for the Small Business team at Autodesk. Kate Morrical is the digital design manager for Robert Silman York,DC,and Boston. Brian Benton Cadalyst magazine tip patroller (and contributor), published author, creator of Auto- CAD training videos, and IT director/chief engineering techni- Ken Micallef is a New York–based writer and photographer. Jeff Yoders is a writer and editor who has covered IT, CAD, and BIM for Building Design + Construction, Structural Engi- neer, and CE News magazines. Anne Bouleanu is a Chicago-based writer who has previously written,lived,and worked in Nepal,London,and South Africa. Lori Kennedy is a writer, editor, music and design enthusiast, and managing editor for Mix magazine.

More Related Content

Small Business Survival Guide: 28 tips to unlock you own success story [eBook]

  • 1. The LINE//SHAPE//SPACE Small-Business Survival Guide: 28 tips to unlock your own SUCCESS STORY
  • 2. 2 TABLE OF CONTENTS Introduction Chapter 1: Management Have a plan Set SMART goals Differentiate Manage and value your time Learn to delegate Adapt! Chapter 2: Money Consider crowdfunding Think like a banker Pass certain costs along to clients Chapter 3: Operations Leap into the cloud Get organized Assemble an advisory board Chapter 4: Marketing Demonstrate how you solve a problem Offer valuable content Offer free consultations or free trials Embrace social media Develop a social media strategy Get listed Chapter 5: Clients Understand your customers Stay in touch Learn how to listen Chapter 6: Growth Plan for expansion Seek referrals from existing customers Form alliances Additional reading material People behind this guide
  • 3. INTRODUCTION For most people running small businesses, there’s not enough time, money is tight, and there are just too many hats to wear every day.Whether you’re an architect,interior designer,landscape architect,contractor, electrician, building or civil engineer, HVAC or solar-panel installer, product designer, or animator, this guide aims to make life a little easier for you. Read these 28 small-business tips and tricks—including advice on management, money, operations, marketing,clients,and growth—for some actionable advice to help you alleviate the work-related stresses that keep you up at night. ABOUT LINE//SHAPE//SPACE Line//Shape//Space is a blog dedicated to inspiring and educating small-business designers,drafters,and animators to do their jobs better by providing practical business tips, educational infographics, valuable software tutorials,and inspiring small-business stories. ABOUT AUTODESK Autodesk,Inc.,is a leader in 2D and 3D design,engineering,and entertainment software.
  • 5. Ben Franklin put it best: “By failing to prepare, you are preparing to fail.” Those words hold true today, especially for small businesses—every business needs some kind of plan in order to succeed. else,”Amenta says.“Even people who aren’t looking for outside funding, who are self-funding or getting funding from their family,need to create a business plan because every startup has to be able to self-fund for around 36 months.” Jim Alles,the New York City chapter chairman of SCORE,a resource partner of the Small Business Administration (SBA),adds this advice: “All good plans will contain separate marketing and sales plans that deal with competitors and customers, as revenues and expenses.” 1.HAVE A PLAN 5
  • 6. 6 Everyone knows that it’s a good idea to set goals.But the key is setting the right goals.As you’re putting together your goals Relevant,andTime-bound.Byusing the SMARTframework,you’ll stand a much better chance of moving your business forward. 2.SET SMART GOALS
  • 7. 7 It’s a big market out there,and in order to survive,it’s essential that your business differentiates itself. Whatever it is,it’s gotta be better,and it’s really gotta have a place because you can just go on the Internet and get a million of anything.” What does your companyoffer that no one else can provide? Is it customer service? Deep expertise in one particular specialty? 3.DIFFERENTIATE
  • 8. 8 project? Scoring these gigs can help grow your business,but they don’t always pan out like we hope. FedericoNegro,afoundingpartnerofCASE,aBuildingInformationModelingconsultancythatgrewfromthreeto21employees “Architects get totally starstruck at projects and the opportunity to work on them, to the point that they will give their lives away for free,”he says.“You can’t afford to do that with your own business. “You think the investment is valid because of what it will bring in terms of future opportunities, but if you look at what it actually costs,it’s not likely to make up for your loss.If you have time to make such an investment,be very focused and clear about what you’re looking to get out of it.Value your work highly.If somebody is not willing to pay for it,then move on.” Bottom line: Whether you’re an architect,contractor,product designer,electrician,animator,or somewhere in between, you can’t give your work away for free.You’re worth more than that. 4.MANAGE AND VALUE YOUR TIME
  • 9. 9 We get it—sometimes it’s tough to let go.But you can’t do it all,and that’s why delegating is one of the most important things mission-critical tasks. and sales. But at a certain point I had to be willing to let go of things that someone else could do better for the sake of growing the business,”Taylor says. “Last year,I made the decision that there was someone else who could sew faster and make a better pattern than I could,so I hired her.I had to get over the idea that if I didn’t make every product,it was still‘mine.’That allowed me some time to focus on a rebrand and relaunch our website.” 5.LEARN TO DELEGATE
  • 10. 10 climate of global economic belt-tightening,AIF saw much of its tried-and-true business dry up. investing in capital expenditures,” says AIF cofounder Peter Exley.“So we’re seeing far less investment in building children’s museums.Peoplearenotvotingonreferendumstobuildnewlibraries,sowe’reseeingalotlessinvestmentinthisinfrastructure based in play and learning.” Fortunately,AIFdidn’tneedtoshiftfocus—itjustneededtoshiftclients.“Whatweareseeingmoreofareexpandingbusinesses trying to get in on creative approaches to play and learning,” Peter says.“We’re working right now with a pediatrician who wants to set himself apart from the other pediatricians in his building,and he’s doing that through design and service.” Perhaps adapting to new forms of sustenance—er, new customers—is all it takes for your business to survive in new environments. 6.ADAPT!
  • 12. 12 such as Kickstarter, Indiegogo, and Crowdfunder are helping jump-start all kinds of ventures, particularly product-design businesses. Each of these sites has their pros and cons: Kickstarter is user-friendly, offers all kinds of tutorials, and has a system that breeds loyalty in funders.However,if project creators fall short of their fundraising goal,they won’t collect any of the pledged money. their goals,but it takes a sizeable 9 percent cut of funds raised. Crowdfunder offers entrepreneurs a large network of funders, but is best for businesses that are further along because it requires product or service demos and heavily favors ventures that have business accreditation. There’s no question that these sites are on the rise. According to Forbes, the crowdfunding industry is expected to grow to $5.1 billion in 2013.Could crowdfunding be right for your business? 1.CONSIDER CROWDFUNDING
  • 13. 13 If you decide to seek small-business loans from a more traditional route, try to put yourself in the mind of a banker. As Jeff Parker,SVPof the Small Business Segment for U.S.Bank,explains,it all comes down to the 5 C’s of credit: Character,Conditions, Capacity,Capital,and Collateral. Ultimately, your ability to secure a loan depends largely on how your application answers these questions: What is the Character of the borrower? What are the credit Conditions requested? What is the Capacity for repayment? What Capital is the borrower investing? What Collateral is being used? We could devote more than a few eBooks to the art of crafting a business plan and securing a loan, but if you bear in mind the 5 C’s,you’ll be off to a great start. 2.THINK LIKE A BANKER
  • 14. 14 Tax season can be painful enough—no need to make it worse by having to scramble at the 11th hour.Do yourself a favor and “The biggest trap for many small-business owners is that they’re so busy,they leave things until the last minute,”says Lindsey Try a tool like Intuit’s QuickBooks to track your transactions, so that you can monitor your expenses and be ready when it’s 3.TRACK YOUR FINANCES
  • 15. 15 costs are adding value to your clients’projects,you should be passing along at least some of those costs to them. One baton that you can pass is the cost of software rental.The software industry is rapidly moving toward a rental model— last May, for example, Adobe Systems abandoned updates of its Creative Suite products and boxed software in favor of Creative Cloud,a $29.95 monthly subscription service that now controls its entire portfolio of graphic design,publishing,and video/audio production software.For its part,Autodesk also offers rental packages for some of its design software,including AutoCAD Inventor LT Suite and AutoCAD Revit LT Suite. 4.PASS CERTAIN COSTS ONTO CLIENTS
  • 17. 17 ‘The cloud’ is more than just a buzzword—it’s actually a great solution for many of your small-business needs.Tools such as Google Drive andAutoCAD 360 make it easyto collaborate on everything from documents and spreadsheets to CAD drawings, what you do best—not on things like installing software updates or trying to remember to click“Save”every two minutes. What about security,you say? The truth is,cloud-service providers go to great lengths to ensure security of your data because their business depends on it. Abreach in securitycould be a death knell for a cloud-storage business,so it’s their number-one are more likely to get into the wrong hands from someone walking off with your laptop than they are by someone hacking into a highly encrypted cloud storage system. 1.LEAP INTO THE CLOUD
  • 18. 18 Life is full of trade-offs: quantity vs. quality, time vs. money, and cost vs. performance. How do you choose? When it comes to purchasing the gear that helps you and your colleagues do your jobs, it’s important to evaluate how trading cost for performance can affect your operations. Consider a quandary that many small businesses face: buying PCs vs. workstations. Most business PCs range from $500 to $1,000,whereas a workstation can be $1,500 to $3,000.Is the extra computing power worth the cost? The key question is: How much time does it cost you in downtime and in time spent dealing with issues that come from underperforming computer hardware? If a workstation saves you 30 minutes a week over the course of three years,that adds up to 26 man-hours. If your rate is $50 per hour, then a 26 hours saved is $1,300. Keep in mind, too, that colleagues will be happier—and thus more productive—on tools that are more reliable. Decisions around gear aren’t cut and dry.But make sure to take a holistic view of the costs when evaluating your options. 2.OUTFIT YOUR TEAM WITHTHERIGHTTOOLS
  • 19. 3.GET ORGANIZED ORGANIZED 19 A wise grandmother once told Line//Shape//Space,“a place for everything,and everything in its place.”Hear hear.If you’re not organized with your small business you riskcreating problems and possiblylosing clients.For Linda Rothschild—organization expert to über-personality Heidi Klum—organization in large part comes down to making space. “You need to look at everything individually and make a decision about it.‘Is this something I really need?’ Say you have a four-shelf bookcase stuffed with books and manuals and papers,”Rothschild says.“Start on the top shelf and go through each item individually and decide to keep it or not, or it may be that someone else needs it, or maybe it’s totally outdated and should be thrown away.It’s a process that you need to make part of your daily routine.” Looking for extra room? Try the oft-neglected up-space.“Up-space could simply be higher shelves, or putting up a pegboard to hang things,”Rothschild says.“That increases overall room space.Using the top part of the closet is great,that area above the pole and the shelf.It’s the least-used space,so that’s where you put things you don’t need as often.” 3.GET ORGANIZED 3.GET ORGANIZED ORGANIZED ORGANIZED ORGANIZED ORGANIZED ORGANIZED
  • 20. 20 Lots of entrepreneurs have a can-do,self-reliant attitude.But everyone could use some advice now and then,so it’s important to set up your own council of elders. “If you’re the manager and you want your business to grow,it’s a good idea to set up some kind of advisoryboard immediately,” and is successful in a way that you want to be successful,someone who is a client,and maybe someone in another business entirely.Take them out to a very nice lunch quarterly,ask hard questions,and insist on honest answers.We all need input.We can’t run our businesses in a vacuum.” 4.ASSEMBLE AN ADVISORY BOARD
  • 22. 22 Whether you’re designing your website or giving your elevator pitch, it’s critical to explain how your business solves a customer’s problem.“Your website should be customer-centric,” says John Beveridge, a 30-year veteran of the management consulting industry.“Instead of saying,‘We’re innovative,’which doesn’t mean anything,your site should state,‘We do this,and we provide that.’You want to show that you understand customers’pain points and give them ideas on how they can resolve those pain points.You really want to solve their problems.” 1.DEMONSTRATE HOW YOUSOLVEAPROBLEM
  • 23. 23 The in-your-face marketing tactics of yore simply aren’t effective these days. Consider a different tack: Generate leads with Create a unique webpage for visitors to download your eBook in exchange for their email addresses, and make sure to give the offer a compelling title. Webinars can be another effective lead-generation tool. As with the eBook, you’ll want to provide a compelling title, and require participants to submit their contact information in order to join. 2.OFFER VALUABLE CONTENT
  • 24. 24 As Rapidan Strategies’John Beveridge explained to Line//Shape//Space,offering free consultations can be a great wayattract new prospects and bring them closer to a sale. “The consultations can be an hour or a half-hour,and they’re really sales calls.The potential customer has done the research, they want to buy, and they’re ready to speak with an expert.This free consultation is a chance to learn what the customer’s needs are and whether they are a viable business prospect or not.It takes you much closer to a decision point.” Selling a product instead of services? Offering a free trial or sample can be a great way to get one step closer to a sale. 3.OFFER FREE CONSULTATIONS OR TRIALS
  • 25. 25 Love it or hate it, social media is here to stay.“I tell people who are afraid of or think they don’t need social media to either retire now and sell your business,or read a book called The Zen of Social Media Marketing: An Easier Way to Build Credibility, Generate Buzz,and Increase Revenue,”says Jim Alles,the New York City chapter chairman of SCORE,a resource partner of the Small Business Administration. Alles explains:“Facebook is relatively cheap for advertising.That is the new way of marketing and will be increasingly so for street and giving out stuff doesn’t work well.Social media and all its different marketing tools have changed the world.” 4.EMBRACE SOCIAL MEDIA
  • 26. 26 Okay,so you’re a social-media believer.Before you create accounts on everysocial networkunder the sun,take time to develop examine your competitors’presences.Set goals.Then,develop guidelines with any colleagues who will be using the company account,and sketch rough outlines for the types of content you want to share,and the proportion of shares for each type. At a loss for what to say? Share a news article.Highlight an upcoming event.Pose a question.Ask your followers for feedback. respond to those who take the time to engage with you. 5.DEVELOPA SOCIAL-MEDIASTRATEGY
  • 27. 27 chances of potential customers discovering your business, it’s a good idea to register with the Open Directory Project and Google Places. The Open Directory Project is the largest directory on the web and critical to informing the major search engines that you and Maintenance category in the Business section.Step-by-step instructions can be found here. Creating a local listing on Google Places will go a long way to putting your business on the radar of the largest search engine on the Internet. Google has recently made a lot of changes in order to make sure that location factors greatly into what results it presents to consumers,so don’t miss out on leveraging one of your best assets—local location! get you well on your way. 6.GET LISTED
  • 29. 29 This might seem like a no-brainer, but according to SCORE’s Jim Alles, failing to understand the customer is one of the most common mistakes small-business operators make. “I’ve seen 400 clients personally, and in the past three years, I’ve met only one who clearly understood their clients,” Alles the demographics,such as where they live? What are their habits? What do they like,and what don’t they like?’Almost all of them looked at me with glazed eyes.” Don’t let that be you! Strive relentlessly to understand the pain points and motivations of your customers. 1.UNDERSTAND YOUR CUSTOMERS
  • 30. 30 keep projects coming your way. Timespentmaintainingrelationshipswithclientsbetweenprojectscanpaydividendswhenlargeprojectspresentthemselves. It’s also a great way to transform clients into friends and long-lasting partners.Take key clients to lunch,send a handwritten birthday card,or bring doughnuts if you’re in the area. or LinkedIn contact.So treat these clients with the respect they request and stay in touch by replying to every RFP they send out.Use that avenue to show your active interest and willingness to perform. 2.STAY IN TOUCH
  • 31. 31 begin with this step: listening.To make sure you’re listening like a pro,follow these best practices: 1.Strike a pose: Proper posture,proper eye contact,and a good smile will serve you well. 2.Wait for it 3.Empathize: Put yourself in the client’s shoes. 4. Acknowledge they believe these points are valid,whether you agree with them or not. 5.Repeat: Repeat back the list of issues your client raised. 3.LEARN HOW TO LISTEN
  • 32. 32 Not every client-vendor situation is the right one for everyone involved. In that event, you have to be prepared to follow no matter how unreasonable.This is a mistake.It’s good for you.” 4.KNOW WHEN TO FIRE A CLIENT
  • 34. 34 Just as it’s important to plan for launching your business, it’s important to consider how you’ll expand and scale. As Andy Taylor, founder of the Wolf+Bear Workshop, shared with Line//Shape//Space, failing to plan for a larger-scale business can eat into your bottom line. company that raised $150K-plus on a Kickstarter campaign.It seems like a lot of money,but nearly every penny is going into production of the kits they promised.They priced the kits and rewards as if they were making them in their living room. But orders,but they still aren’t buying groceries with the business they started.It’s not sustainable.” 1.PLAN FOR EXPANSION
  • 35. 35 asking your current clients for ideas on potential leads. recommendations for more customers,”Beveridge says. 2.SEEK REFERRALS FROM EXISTING CUSTOMERS
  • 36. 36 Jordan had Pippen.Wozniak had Jobs.Peanut butter has jelly.Are there partnership opportunities out there for your business? According to SCORE’s Jim Alles,forming a partnership or alliance is one of the best ways to grow. “You form an alliance because the potential partner has the client base you want access to,and you’re taking something new to the potential alliance partner,”Alles says.“When you put the two companies together,you offer one-stop shopping.Look at look for a company that has excellent client acquisition or marketing.It’s about strengths and weaknesses.” You can also seek out partnerships with bigger players to gain exposure. Financial advisor Kathryn Amenta says, “Go into projects that would look good in your portfolio.” 3.FORM ALLIANCES
  • 37. 37 While it’s important to be on the lookout for new customers,sometimes the next project might be right under your nose—you just don’t know it yet. SCORE’s Jim Alles explains:“If you understand your client’s needs,you can add a new product or service and start selling it to them,as well as new clients.I have a client in environmental engineering; he asked his clients what new service they wanted, and they responded: a service based around building sustainability.He employed experts in that area and made sure the new need of your existing clients.” 4.EXPAND VIA DIVERSIFICATION
  • 38. 38 ADDITIONAL READING & RESOURCES Further information and detailed articles on all the topics in this guide can be accessed for free at the Line//Shape//Space * blog.Four additional chapters with tips on managing operations,marketing,clients and small business growth. Autodesk understands the challenges of owning and running a small business, and we recognize that your needs are often different from those of larger companies.We make design and creation technology more accessible to small businesses, not just as traditional packaged software but through new formats and platforms such as rental plans,cloud,and mobile devices. We invite you to take another look at our software solutions for small business. TryAutoCAD LT for 30 days, free Choose the LT product that’s right for you * Line//Shape//Space is currently only available in English language.
  • 39. 39 PEOPLE BEHIND THIS GUIDEThis guide is the result of the efforts and contributions from a number of people. Kylee Swenson Gordon is a writer, editor, musician, admirer of great design, and content marketing manager for the Small Business team at Autodesk. Micke Tong is an artist, curator, and art director for Computers - ery through layer,vector illustration,and collage. Bryan Rahija is a former editor, part-time musician, and full- time graduate student at the University of Michigan’s Ross School of Business. Curt Moreno is a Houston, Texas–based CAD coordinator, writer, and Autodesk University speaker who has been using AutoCAD since 1990. Ninety percent of the photos Dusty DiMercurio takes while traveling are of either food or architecture. Dusty is a music producer and leads the Autodesk Small Business team. Shaun Bryant provides Autodesk product consultancy and training as the director of CADFMconsultants Limited and serves as a director on the board of Autodesk User Group International (AUGI). Hayley Brums is a passionate digital marketer and former di- rector of internet marketing for a small-business startup. Marielle Covington is the nurture marketing manager for the Small Business team at Autodesk. Kate Morrical is the digital design manager for Robert Silman York,DC,and Boston. Brian Benton Cadalyst magazine tip patroller (and contributor), published author, creator of Auto- CAD training videos, and IT director/chief engineering techni- Ken Micallef is a New York–based writer and photographer. Jeff Yoders is a writer and editor who has covered IT, CAD, and BIM for Building Design + Construction, Structural Engi- neer, and CE News magazines. Anne Bouleanu is a Chicago-based writer who has previously written,lived,and worked in Nepal,London,and South Africa. Lori Kennedy is a writer, editor, music and design enthusiast, and managing editor for Mix magazine.