Make Hay While the Sun Shines

Like many small businesses, we have been slow lately. This week, for a change, we got slammed. Not that I am complaining, I will take the work any day.

For the first time in a long time, we will be In production on Saturday. I have had to jump in to get the work out. I have only run a printing g press once in the last ten years. The first reason for that is because the nature of our business changed and the second is that Hank is so efficient.

So, in helping out where I need to, I have been operating our letterpresses. I am in no way a press operator, merely a tender. Hank and Bob set the jobs up and I stand there and keep them running.

Yesterday, I die cut several thousand sheets of labels on our Heidelberg Windmill. That is the press featured in the video on our website.

Today I'm a watching our 70year old Kluge letterpress while we die cut a few thousand paper wrap labels. As this machine runs, which looks like it was made from the cast Irene version of the game Mousetrap, I'm writing this blog post. I am writing it on my new WiFi iPad.

Two different forms of communication, one seventeenth century, the other 21st century, living side by side. That's the way it is.

The Internet did not kill print. Just as TV did not kill radio and videos did not kill TV, print will live on. It will remain a vital part of our lives.

Gotta go, my Kluge needs me.


Sent from my iPad

I went to a Chamber talk...

I went to a Chamber talk at the Palatine Public Library. Bonita Richter, who runs the Small Business Development Center at Harper College was the speaker. Her talk was on planning to grow your business in 2010.

The talk was good and we left with some good, usable info. Something else struck me. It is good for me to get out of the office and meet with other business folks. Do you do that in any given month? Do you network or mingle at Chamber functions? How about Lions, or Jaycees? Or, do you stay hunkered down in your office or shop?

Get out there. Meet some other people. Hear some good ideas. The world is changing. You have to know what your next step should be.

Small Business in 2010

Owning a small business the last couple years feels like a scene from Gladiator. You are in the arena, they open the gates and hungry lions come running out. Ah. Just another day in the life.

Sorry to say it but the Federal Government is no friend of the small business owner. President Obama has not done much so far to help the situation. The turmoil surrounding health care has only added to the confusion we have felt.

Now, Mr. Obama has rolled out a small business plan. There are a couple small provisions and two big ones. One part involves a tax credit for hiring new employees or increasing wages.

The problem with this is twofold. First, you need taxable profits from which to credit. So, this won’t help many small businesses. Second, staffing decisions usually only make sense when there is increasing demand. Otherwise, a bad decision is merely a drag on the business.

The second big plank is an incentive plan aimed a community banks to lend to small businesses. If this is under TARP, these banks will shy away from it. Accepting TARP funds painted your bank as weak. Nobody wants that tag.

The other big flaw is the belief that small businesses will use this money to expand. It won’t happen. Why? We are scared. We don’t know what will happen next. And we are already full of debt. Owners who get these loans will pay themselves bak the personal loans they made to their businesses or pay off their credit cards.

This will make their balance sheets looks better but it won’t increase capital investing. I clean balance sheet is swell, but it doesn’t help the economy.

Here’s my plan. Eliminate business income taxes. Not all the way—people would go crazy thinking about Exxon Mobil making a bazillion dollars more profit. But just part of the way. No income tax on the first $2 million dollars of profit.

This would eliminate income tax for the vast majority of small businesses. It would cut the unfairness of double taxation of small and family owned businesses. The Fortune 1000 would still pay taxes on the majority of their profits.

There would be several benefits. Owners would have profits to do the most economic thing with. They would reinvest in their companies, hire more people or increase wages as sales grew, or they would pay down debt. They would also pay themselves more.

Several things in the above paragraph would be taxable events. Income tax revenues would go up. Also, prices of goods and services would go down. Investment in businesses and opening businesses would increase. Innovation would also increase.

There would have to be a mindset shift for this to happen. Business people are too easy a target. Politicians would have to join arms with business owners instead of painting us as greedy exploiters. The public would have to come to appreciate the sacrifices we make. The era of mistrust would have to end in pop culture. Bernard Madoff and J.R. Ewing need to be lampooned as the freakish anomalies they are, not as symbols for all business people.

Letterpress

My guys recently had a successful test of letterpress printing. Before this test, we had used our letterpress for embossing, die cutting, and perforating paper. Lots of different stuff, but not for printing. Not bad for a fifty+ year old printing press, huh?

But there is an increasing interest in this old fashioned printing. Why? Nostalgia is part of it. The other part is the craft of letterpress printing. It looks different than our traditional printing or photocopying. There is a texture to the printing. It has a feel. It does not look flawless. It has character.

Some studios are commanding top dollar for stationery and wedding invitations of their letterpresses. We are looking at a slightly different model. We want to make note cards, business cards and invitations that are elegant and affordable. New techniques have helped to breathe new life into these old presses.

The movies American Psycho and the recent Seven Pounds have featured characters in an elegant business card throw-down and a letterpress printer respectively.

Mike’s Wish List

Perhaps there are a lot of business owners like me right now. After a couple of years of solid growth where we invested a lot of money back into our business, we hit a bump. Clearly the Great Recession has impacted businesses far and wide.

Now we are watching every expense. Closely. That’s the new reality. But here is where I take it to my own level of tightwadness (not a word, but you know what I mean). For everything that is non-essential to our operation, but would be nice to have, I am creating a list. It’s my wish list. Some is for new stuff, some is for software updates.

If there are others like me living a life of small business delayed gratification there are consequences. That is pent up demand. When the economy improves and businesses start spending again, there will be a rebound effect. People like me will loosen up and start buying the stuff they held off on purchasing. It could be a big snowball.

On the other hand, if we all see we have done without things for so long, maybe we don’t need them after all.

Is your marketing sending the right message?

A recent call to a clients office left me confused and surprised. It was a Doctor’s office and they were not in. So I got their answering service. Actually at first I got their answering services on hold message. After being told I would speak to an operator promptly, I heard their recorded music. Since almost everyone has gotten away from elevator music, this was pop music. Actually, it was the current queen of pop—Britney Spears. So I listened to about 45 seconds of her recent controversial hit [the one about Amy] which is out and out vulgar.

I’m no prude, but this song gets switched off when in the presence of either of my daughters. How it got on the radio in the first place is beyond me. It is up there with some of the nastier stuff Prince recorded in the ‘80s. And that was rarely on the radio.

After taking my message, the operator answered a couple questions I had about this song. Her company is aware of it, but it is out of their control. They pay for a quarterly subscription so they just have to wait it out. Really? Stop it now. Don’t wait.

Everything in and around your business is part of marketing. Your place of business, your printed materials and forms, your delivery trucks, your employees, and your style of handling phone calls. Whether you intend it to be marketing your business or not, it’s all marketing.

I would not let an employee make deliveries celebrating sex, drugs, or alcohol. Nor would they parade a controversial anti-hero in front of my clients. The same goes for my phone messages. You don’t have to go back to the watered down stylings of Muzak strings, but come on people use some common sense.

What tone do you want your marketing to hit? Do you want people to think you are staid, or hip, or conventional, or happy go lucky? Are you ok offending or being controversial? What message to you want your public to hear? Answer these questions and go for it.

Printing Magnets — on our printing press?

We recently worked on a fun project for a large Church organization. They needed a large quantity of magnets in a hurry and on a tight budget. Typically these are done by a silk screener. They are great quality but turnaround time and price might have been obstacles here.

Fortunately, we recalled a recent sales call from a paper mill rep from Nekoosa Coated Paper. They have a new magnetic sheet product that will run through a printing press. After trying the samples he left behind, we decided to go for it.

It worked great. They printed nicely, they dried quickly, and the finished product was beautiful. These were cut to business cards size but we could have cut them to just about any desired size. Also, with our die cutting capabilities on our letterpresses, we can cut them to almost any shape imaginable—triangles, circles, start, you name it.

Give us a call to see how we can promote your business or event with magnets.

They Don’t Live in Glass Houses

You know the phrase: “People who live in glass houses should not throw stones.” Have you ever thought the phrase is strange? People who live in brick or frame houses should not throw stones either. But this is not about that. This is about direct marketing.

There is a company or maybe a few companies who market directly to the public in an unusual way. You might have folks like this in your community too. Is it a widespread phenomenon? I don’t know. They take their flier or brochure, or whatever, and put it in a Ziploc® with a handful of rocks. No. Seriously.

Then they fling them out of a moving car onto driveways around the neighborhood. I seem to recall one being from a home repair business. But I don’t recall the name or if I ever looked at another one. The packages annoyed me. It was litter dumped on my property.

Why do they do this? Is it to save money? If so, I doubt it is cheaper. Between the cost of the baggie, the rocks, the labor to fill and seal the bags, and the cost to drive around, it all adds up. Now, if they had pretty stones in there, maybe. If they sold rocks and pebbles for landscaping, perhaps. But, I don’t think they are.

Standard Mail postage is about 26¢ each—it is a real good deal. Yes, we charge for our services to mail. But you are getting a professional direct marketing piece. Put down the stones.

(http://www.flickr.com/photos/tahliajayde/3600630428/)

When You Find Yourself in a Hole—Stop Digging

Over this past weekend, the Obama administration rolled out their small business stimulus plan, or whatever they are calling it. All it looks like is a reduction in costs to borrow. Bad idea. Has anyone in the White House ever had to make a payroll? I doubt it.

There are two major problems with this plan. Access to money is not a problem for many small businesses. Community banks and credit unions are willing partners. Citibank and Bank of America are not lending money, but they won’t deal with small business during good times—forget it now. The problem is sales and profits. Our sales are way down and therefore our profits are too.

The other problem with this plan is debt itself. Our country got into this mess because of too much debt. So, now the suggestion is more debt? Really. Mr. Geithner, when you find yourself in a hole, the first thing to do is stop digging. Don’t make things worse than they are.

How about my plan? Cut government spending, cut personal AND business tax rates, and cut regulation. Make it easier to a little guy to make a buck. This social engineering program makes us nervous. Raise tax rates on one hand and make it easier to get deeper in debt with the other. Small business is not buying. The financial big shots got us into this mess, Now Washington, get out of the way of the little guys to clean it up.

Layoffs Stink

There are a few situations in business that really stink for a small business owner. Being defrauded or swindled by an employee or partner is really bad. Being a victim of someone else's crime is way up there. Violence brought to the job by an employee is unconscionable. But what these have in common is they are rare and have to do with crime in one form or another.

But in the regular ups and downs of business, nothing is worse than letting go of an employee. Sometimes you have to sack an employee because they did not work up to expectation. That’s hard. One reason it is hard is because the owner was probably the one who made the decision to hire that person. Now the boss has to admit he or she made a mistake. So the decision to fire an under-performing worker is delayed in the hope that they will get with the program and turn around. That rarely happens.

While there is justification to let go of a bad worker, laying off an employee is much harder. Now you have to sack someone who was doing a good job. It is not for cause. It is for economic conditions that are usually not in the bosses control. The overall economy is in the dumper, sales are down, clients are slowing down payments, we are in a pinch. I have to let you go.

In a small business employees can become like family. Of friends. That makes it worse. Some bosses will delay laying off excess staff in down times because it hurts and is uncomfortable. This delay could kill the business. It can put everyone out of work. And it can bankrupt the business owner personally. Sadly, the burden to make the hard decisions falls on the owners shoulders. It stinks, but that’s the reality.

The Best Deal at the Post Office

I was talking to a client the other day about her newsletter mailing. It's a big mailing. Not just in the number of recipients but in the size of the mail piece. It's one of these 12 page newsletters that also includes a return envelope. Their current printer is organized such that the only way to mail this piece is pre-sorted, first-class mail. For two ounces, this is costing them a small fortune.

She was hesitant when I talked about pre-sorted, Standard Mail. She was under the impression there would be all kinds of problems mailing it this way. When I assured her that thousands of companies and organizations send their correspondent out this way every day without a problem, she softened up a bit.

Then I explained something to her she had never heard before. With Standard Mail, the post office allows you to mail up to 3.3 ounces for the same cost of mailing a postcard. What a value! Now that their mailing list has gotten bigger, their total cost of mailing will go down by 25-33%.

Think about how you can use this tremendous value to your benefit. You can send out a larger mailing in an envelope with many pieces in it. This is something we call “lumpy mail.” You can send a promotional product that ties in with the theme of your mailing. You can group a mailing with your neighbors, networking group, or marketing affiliates so you can take advantage of the postage discount.

Give Allegra Print and Imaging of Rolling Meadows a call today at 847-398-2500 to discuss this and other great ways to save money on your direct mail marketing campaign.

Henry’s Model T

Most of us remember reading somewhere Henry Ford’s famous line, “the consumer can have any color cover he wants, as long as it’s black.” But you probably do not know that when the car was introduced in 1908, in addition to black you could also buy it in red, green, or blue. Black only became the standard when Henry Ford realized he could save costs by eliminating the other colors.

Ford created a standard that is with us to this day. Businesses either eliminate choice from us or give us a wide variety of choice. We usually have no choice in the color of Cabinet of a new HDTV. But look at the choices we have for an iPod Nano. Businesses pick a niche in which to market.

Printers, like your humble blogger, are generally in the choice business. We don’t dictate what the customer is going to get, the customer tells us what she wants. Virtually nothing we print looks exactly like any other thing we print. Sure, the paper size may stay the same, there are only a couple thousand fonts to choose from (two or three of these make up over 90% of everything printed in the U.S.), and layout typically follows some pattern. But inside those limits, the choices are endless.

For years I’ve tried to come up with a niche product. Something that I can produce that would almost be off the shelf. So far, no luck. It is been far easier for us to market Allegra Print & Imaging of Rolling Meadows like a standard print shop.

That is beginning to change though. Customers are pushing us to offer more services to them. At the same time we are looking to expand our service choices to stay ahead of them. We are starting to test the definition of what a print shop is. So far, it’s going well.

By the way, the Model T was introduced the same year my beloved Cubs last won the World Series.

Voice Recognition

As an original Mac user (1984), this is a great time to be alive. Because of the growing popularity of the Mac platform, I get to see new stuff come out for the Mac almost every day. One of my favorite new toys is voice recognition software called MacSpeech. It is based on a very popular platform but the software was made specifically for the Mac.

I bought it primarily to help one of my daughters in middle school. After testing it myself, I can see broad applications for business use.

It is much faster than typing. However, it changes the way you put information into a computer. Using a keyboard has been part of my writing process since I was in college. I often tell people that getting my Mac in college raised my grades by one full letter. So this B- student became an A- student almost overnight.

An interesting change this brings is that the stream of consciousness ideas that you can speak will be put onto a page on your computer. You get to sort them out and edit later.

By the way, this blog entry was written using MacSpeech.

Add This!

We have just added a new feature to our blog. You can now link to your favorite posts and share them with your friends on Facebook, StumbleUpon, de.li.cio.us, and many other social networks. Hover over the "bookmark" button at the bottom of each post to see all the options. So, return often and see what there is to share!

Bicycle Shop Bailout Plan Debated in Congress

This is a headline you won’t see anytime soon. Obviously the big story is the financial crisis hitting our country. But there is something to my headline. From one source, about 30% of bike shops in the U.S. have closed in the last 5 years.

I have not studied the problem facing these retailers. So I can’t go into detail on that here. But here is what I think. Bicycle shops are small businesses. Big industry, but small business. Nobody is watching out for small business owners. We are on our own. These shops are also spread out. There might be one or two shops in any town or neighborhood.

Banks are big business. To some degree, banks are in the business business. They provide the gasoline for the economy. They are clearly more important than bike shops. Or corner bakeries. Or (gasp) print shops. So, banks and investment firms get government bailouts. Small business owners don’t get a “do-over.”

This is sad to me. As a small business owner I feel for these shop keepers. As a lifelong biker I am a sad customer. Bike shops and book stores are two of my favorite places to visit. Don’t get me started on book stores. They all but disappeared about 7 years ago.

I understand that the big banks need to be protected. They are too tied into our economy. However, I have not seen anything about consequences. Unless there is clear evidence of theft or fraud, I would not be happy seeing bankers put in jail. But having to pay back their ill gotten gains? Perhaps. But business survival has to make economic sense. Poorly managed businesses should fail or be bought out by smarter business people. Bike shops—the market is speaking. Investments banks—your time has come too. What do you think?