“What color shirts should we get?” Part 2

There was an outstanding response to my blog entry from last week about.  So I thought I would follow up with some information that I didn’t include last week.  Pretty interesting stuff.  It certainly makes you think twice about the color choices you make.

Can color improve performance?

A 2009 University of British Columbia study compared the effect of red and blue on peoples’ ability to do detail-oriented tasks.  Participants were assigned a computer monitor with a red or blue background and then given a variety of tasks to complete.

Red improved outcomes for tasks that required focus and vigilance.  Blue improved performance for creative tasks. 

How might this affect your choice of apparel for a work environment or promotional campaign? Consider whether the job requires creativity or accuracy.

A team of quality-control personnel might be best attired in red garments, creating an environment of red around the work area.  Blue garments and work environment might be best for a small marketing or ad agency.

Warm and Cool Effects

When evaluating how a color will alter the effectiveness of your apparel selection, first consider whether the color is warm (red, yellow, and orange) or cool (blue, green and violet).  Here are some common associations and effects attributed to each side of the color spectrum.

WARM: advance, vibrant, stimulate, passion, aggression

COOL: recede, subdued, soothe, purpose, stability

So what does that mean?  If you are working in industries where you want to project a sense of stability and purpose, such as insurance, education, financial, government and health care, you might choose cool colors to help support your business and brand.

If you work in an industry that seeks to ignite passion and stimulate the senses in people, you might choose warm colors.  Those industries might include technology, personal care products, entertainment, sports or media.

Got the Munchies? Wear Blue

Blue suppresses appetite.  Weight-loss plans even suggest dining in a blue room or placing food on a blue plate.

Restaurants, therefore may want to avoid blue uniforms for their wait staff or interior design.  Instead, they might consider uniforms in a warm stimulating color.  Orange, for example, is believed to boost an appetite.  Perhaps that is why the Wheaties box is so bright!

Clearly, I don’t wear enough blue!

“What color logo shirts should we get?”

Ever heard anyone ask that question in your office?  Chances are you have.  Chances are , you have even asked it yourself.

What you probably don’t realize is that the colors you choose for logo embroidered apparel have a strong influence on your employees, your customers and your business.  Science dictates that many factors significantly influence the colors that you gravitate to.

Choosing a color for logo embroidered shirts isn’t always a matter of what looks best on you or “Jane in accounting only wears black”.

There is a world of hidden meaning and researched fact behind your color choice. With careful consideration of the science of color, you can influence the world without anyone truly realizing it.

Red is symbolic of dominance, passion and sensuality. If you want to make a distinctive fashion statement, red is the trick. It is recommended as an accent color because it stirs strong responses in people.  While red it passionate and energetic, others see it as aggressive.

Black, an all time favorite, represents power. Acting as a symbol of elegance, versatility and grace, this color can smoothly sail in all functions.  Use restraint with this color as it can be perceived as dramatic if it dominates an outfit.

 White shirts and blouses are always a safe bet. It sends the message of simplicity, cleanliness, precision and goodness. If your focus is on looking neat and clean, white is just apt for you.

Blue is a color of warmth and trust. Blue conveys a sense of calm and control. A navy blue for example will set those around you at ease, fostering a sense of trust and stability.

Burgundy is indicative of spirituality. It is a rich color that decides how passionate you are. Burgundy shirts look stylish.

Green comes from greenery. It is a color of nature with beautiful green leaves, fresh green vegetables. It represents freshness, relaxation and calm.

Brown is meant for classy informal styling. It conveys reliability and trust.

Gray is indicative of the fact that you are a balanced person in life. It looks elegant and is considered to be brainy.  It gives off a sophisticated, serious air.

So next time someone asks, “What color shirts should we get?”  Remember, colors do matter. 

Make sure you match the shirt color with the mood or emotion you are trying to create.

Paying It Forward

I got a call last week out of the blue from a gentleman in Iowa.  He is in the process of doing some research with the intent of starting a business in the apparel industry.  His business idea involved embroidered apparel and he found Thread Logic on the Internet.  He wanted to ask me some questions.

I get call like this every once in a while.  They all vary somewhat.  Another time I was talking to a customer and he started asking me some questions about the Internet marketing we were doing.

I actually enjoy these conversations.  While I may be able to help someone out, I usually learn something in the process as well.  But that is not my primary motivation.

Some people may ask why I do this.  Why do I take the time out of a busy schedule to talk to someone else who owns a business?  Someone I have probably never met and may not even be a customer. It is a good question. 

But I do it for a reason.  You see, I got a lot of help when I was starting Thread Logic.  There were people I called up to ask questions.  I had a couple of mentors I could bounce ideas off of as I was building my business model. 

These people had the business experience that I didn’t have and were willing to share it with me.  They were invaluable to me.  I really don’t think I could have made it this far without their help.

My willingness to help others in rooted in the help I got and continue to get.  It is my way of paying it forward.

Recently, I had a human resources question that I needed to ask.  I went to see someone I have known for a number of years who has a lot of experience in that area.  We had an hour long conversation.  It was very helpful in my decision making process.  

We all have these networks of people we know.  Take advantage of them.  Now with tools like LinkedIn it is easy to find someone who you might be able to help you with a problem.

But more importantly, if you have the opportunity to help other business owners or those seeking to start a business, I encourage you to help them in any way you can.

Starting a new business is hard.  Growing a business is hard. Running a business is hard. Take the opportunity tap the vast knowledge of your network and be willing to help if someone from out of the blue wants to tap your expertise.  

 The rewards will come back to you 10 times over.

Differentiate Your Company by Doing Things Differently

Every industry has its “industry practices.”    It could revolve around marketing, pricing, distribution, service or even product design.  But these are things that most every business in the industry does or offers. 

I’m not sure how something becomes an “industry practice”.  At some point, one company started doing something, then another followed along and before you know it, you have an industry “practice” on your hands.

One of the ways a business can differentiate itself from its competition is to not follow an industry practice and do something differently.  Companies large and small have had a lot of success taking this approach in the past.   Others have also found failure. 

When I started Thread Logic, I felt the pricing method, held up as an “industry practice”,  was one place I could differentiate my company in a very competitive field.

Pricing embroidery in the decorated apparel industry is generally done by stitch count.  The concept is simple.  The cost to embroider your logo onto a shirt or hat is based on the number of stitches it takes to create your logo in embroidery.  The more stitches, the more cost.

From a cost accounting perspective, it makes total sense.  From a marketing and customer experience perspective this method is a total disaster.  Why?

How many stitches are in your logo?

Exactly!

You have no idea.  And you shouldn’t.  In fact, if you did, I would be worried about you!

That’s why we created a flat pricing model.  All of the prices of items on our website include the embroidery of the logo.  It makes it much easier for the customer to understand, right up front, how much an embroidered shirt is going to cost. 

Many customers tell us one of the reasons they started doing business with us is because of our flat pricing model.  It sets us apart from many of our competitors and makes it very easy for them to price out different items.

So my question for you is how can you differentiate your business from your competition?  What do you do differently from the rest of the industry to set yourself apart?

When was the last time you stepped back and approached your company from the completely objective perspective of a customer?  Or maybe had someone else do that for you?  That might offer you some ideas of how you can do something differently.

It’s a cliché, but think outside the box.  Question why you do something and if there is a different way of doing it.

Maybe you will even start a new “industry practice!”

What’s More Fun?

I get asked a lot of questions.  When I am talking to people, customers or other business owners there are always questions people have about my company, the Internet marketing model we employ and my business philosophy.  And to be honest with you, I really don’t mind it.  Like most business owners, I enjoy talking about my business.

But I got asked a question recently that I had not been asked before.  More interestingly, it was a question I had not even thought about.  The question was framed in the context that I had started the company from scratch and it is now 9 years old.

The question was, “Are you having more fun now or during the time you were in start-up?’

It set me back for a moment.  It was a really good question.  But the answer came fairly quickly for me.  I am definitely having more fun right now.

Since that conversation, I have had some time to reflect on that question and analyze if that is really the case.  I stand by the answer.

At start up there are so many decisions to make.  The organization is so fragile.  The smallest wrong decision at the wrong time can doom the whole operation.  The hard part is, many of the situations come quickly and there isn’t always time to properly analyze the options.

Today, Thread Logic is much more stable.  Therefore, there is time to analyze options and make decisions.  In addition, it would take a much bigger, wrong decision, to take the business down.

In start-up, at the beginning of every month you are worried about where the sales are going to come from.  The sales funnel is more unstable and you worry if there are going to be enough sales that month to cover your costs.

Thread Logic is in a place now where the sales are coming consistently.  The sales funnel has some things in it and we have a large enough customer base to keep it going.  Certainly there are variations month to month, but I really don’t have to worry if sales are going to come or not.

In the early days it was just me.  I did everything, sales, marketing, bookkeeping, production, ordering goods and supplies, etc. etc..  If I took a day off, I didn’t make any money and nothing got done.  Now I have employees to do many of those tasks. I can concentrate on what I do well and like to do which is marketing and guiding the business.  In addition, I can take a day off here or there and now shirts are still getting embroidered and shipped.

But I think the thing that is the most fun about this time right now is the satisfaction in knowing the model works.  It is the proof of concept.  It is in the gratification of solving a problem to the point that it can sustain the business.

In start-up, you think you have a good idea.  You think you can make the right decisions to make it successful.  You think you know what you are doing.

There are serial entrepreneurs who are in it for the thrill of the start-up.  Then once it gets going, they move on to the next start-up.  The thrill for me is in the proof of the idea.  I am having way more fun now.

Succeeding in the Face of Tough Competition

There is an old saying I have heard some veteran sales people use when talking about succeeding in the face of stiff competition.  It goes “Differentiate with value, or die with price”.

There is a lot of truth in those seven words.  As is often the case, it is easier to say the words than execute on the idea.

Differentiate on value means you can compete on just about anything other than price.  It could be service, location, convenience, packaging, delivery, product, information, etc, etc. 

The competition in the decorated apparel or embroidery industry is very stiff.  Thread Logic competes on a national level and there are over 26,000 embroidery businesses nationwide.  That does not include the thousands of promotional product distributors we compete with as well.  Needless to say, there is a lot of competition and it would be easy to fall into the “price trap”.

I made a very conscience decision when I started Thread Logic that our business model would not be driven by us being the “low price leader”.  There are two fundamental reasons for that idea.  The first is the idea that there will always be someone out there willing to embroider a polo shirt for less.  And secondly, it is true that customers that come to you for price leave you for price.

The kind of business model we wanted to build was one with solid long term relationships with our customers.  That was the only way we were going to sustain our business and be successful.  Offering a competitive price is part of the value we bring, but we do not lead with our pricing.

Die with Price

I know a guy who is a victim of die with price.  His business is in a very competitive industry and one that sees a lot of price competition between suppliers.  But there are opportunities to differentiate with value.

He fell into this trap. He was always trying to offer the lowest possible price.  He was constantly worried he would lose a sale over price.  Consequently his margins and therefore profit suffered. 

The funny part is he knew it.  He knew he wasn’t charging enough.   He often said to me he needed to fix his pricing.  He knew it was not a sustainable business model.   But he just couldn’t bring himself to change his practice.  He was too worried about losing a customer if he charged more.

The fear of losing a customer was greater than the fear of losing his business.

Well, it finally caught up with him.  His business declared bankruptcy early this year.  He was forced to close his business and go to work for someone else.  His company no longer exists because he couldn’t find it in himself to raise his prices in order to stay in business.

There is a great lesson here for other small business owners.  If you want your business to not only thrive but also survive in these turbulent times, you have to deliver value.  Competing on price alone will be the deathblow to your business.

10 Reasons Small Businesses Fail

I found this blog entry by Jay Goltz who is a small business blogger for the NY Times and thought there are some very good lessons here.

One of the least understood aspects of entrepreneurship is why small businesses fail, and there’s a simple reason for the confusion: Most of the evidence comes from the entrepreneurs themselves.

I have had a close-up view of numerous business failures — including a few start-ups of my own. And from my observation, the reasons for failure cited by the owners are frequently off-point, which kind of makes sense when you think about it. If the owners really knew what they were doing wrong, they might have been able to fix the problem. Often, it’s simply a matter of denial or of not knowing what you don’t know.

In many cases, the customers — or, I should say, ex-customers — have a better understanding than the owners of what wasn’t working. The usual suspects that the owners tend to blame are the bank, the government, or the idiot partner. Rarely does the owner’s finger point at the owner. Of course, there are cases where something out of the owner’s control has gone terribly wrong, but I have found those instances to be in the minority. What follows — based on my own experiences and observations — are my top 10 reasons small businesses fail. The list is not pretty, it is not simple, and it does not contain any of those usual suspects (although they might come in at Nos. 11, 12 and 13).

1. The math just doesn’t work. There is not enough demand for the product or service at a price that will produce a profit for the company. This, for example, would include a start-up trying to compete against Best Buy and its economies of scale.

2. Owners who cannot get out of their own way. They may be stubborn, risk adverse, conflict adverse — meaning they need to be liked by everyone (even employees and vendors who can’t do their jobs). They may be perfectionist, greedy, self-righteous, paranoid, indignant, or insecure. You get the idea. Sometimes, you can even tell these owners the problem, and they will recognize that you are right — but continue to make the same mistakes over and over.

3. Out-of-control growth. This one might be the saddest of all reasons for failure — a successful business that is ruined by over-expansion. This would include moving into markets that are not as profitable, experiencing growing pains that damage the business, or borrowing too much money in an attempt to keep growth at a particular rate. Sometimes less is more.

4. Poor accounting. You cannot be in control of a business if you don’t know what is going on. With bad numbers, or no numbers, a company is flying blind, and it happens all of the time. Why? For one thing, it is a common — and disastrous — misconception that an outside accounting firm hired primarily to do the taxes will keep watch over the business. In reality, that is the job of the chief financial officer, one of the many hats an entrepreneur has to wear until a real one is hired.

5. Lack of a cash cushion. If we have learned anything from this recession (I know it’s “over” but my customers don’t seem to have gotten the memo), it’s that business is cyclical and that bad things can and will happen over time — the loss of an important customer or critical employee, the arrival of a new competitor, the filing of a lawsuit. These things can all stress the finances of a company. If that company is already out of cash (and borrowing potential), it may not be able to recover.

6. Operational mediocrity. I have never met a business owner who described his or her operation as mediocre. But we can’t all be above average. Repeat and referral business is critical for most businesses, as is some degree of marketing (depending on the business).

7. Operational inefficiencies. Paying too much for rent, labor, and materials. Now more than ever, the lean companies are at an advantage. Not having the tenacity or stomach to negotiate terms that are reflective of today’s economy may leave a company uncompetitive.

8. Dysfunctional management. Lack of focus, vision, planning, standards and everything else that goes into good management. Throw fighting partners or unhappy relatives into the mix, and you have a disaster.

9. The lack of a succession plan. We’re talking nepotism, power struggles, significant players being replaced by people who are in over their heads — all reasons many family businesses do not make it to the next generation.

10. A declining market. Book stores, music stores, printing businesses and many others are dealing with changes in technology, consumer demand, and competition from huge companies with more buying power and advertising dollars.

In life, you may have forgiving friends and relatives, but entrepreneurship is rarely forgiving. Eventually, everything shows up in the soup. If people don’t like the soup, employees stop working for you, and customers stop doing business with you. And that is why businesses fail.

-Jay Goltz

Thread Logic Named UpSize Business Builder of the Year

Thread Logic Owner Jeff Taxdahl

MINNEAPOLIS (February 7, 2011) — Embroidery and logowear company Thread Logic has been named the 2010 Business Builder of the Year by Minnesota-based Upsize magazine. Thread Logic founder and owner Jeff Taxdahl was selected to receive the recognition after he and three other finalists presented their business-building ideas to a panel of judges in December. Taxdahl is featured on the current December/January 2011 Upsize cover and in an eight-page article, available http://www.thread-logic.com/Thread_Logic_News_Room.aspx

UpSize’s annual contest recognizes business-building best practices from small business owners based in Minnesota, and the impact of the best practices on company performance and value in helping other business owners. Taxdahl’s award-winning best practice focused on his success in reaching more customers and increasing sales by developing a strategic Internet marketing model combined with a pay-per-click advertising strategy to build a customer base from across the country.

“Jeff’s solid business plan impressed our judges, making Thread Logic stand out among an impressive field of finalists,” says Beth Ewen, editor and co-founder of Upsize Minnesota.

“He is the 2010 Upsize Business Builder of the Year, selected for his smart move to electronic commerce after two years in business, his skillful execution of the strategy that led to 20 percent average growth in each of the past four years, and his advice that other small-business owners can use to expand their own companies.”

“We’re honored to be recognized by Upsize for our business strategy and Web-based approach,” says Taxdahl. “We look forward to continued growth not only for Thread Logic, but we hope that sharing what we’ve found to be successful helps other small businesses to grow, including those in the embroidery industry.”

The Upsize recognition is the latest in a series of awards given to Thread Logic over the past several months. Thread Logic also received the 2010 Better Business Bureau Integrity Award, and Taxdahl was named a 2010 Minnesotan on the Move by Finance and Commerce.

Your Brand Starts with Your Logo

Think of a brand and chances are that what springs to mind isn’t its product or service, but its logo. This is the power of the logo: an instantly recognizable shorthand for your entire brand that, with any luck and hard work, lodges in the minds of your customers.

Your logo is the visual essence of your brand, and whether you opt for a typographic treatment of your business name (wordmark) or a graphic device (brandmark), it’s an indispensable part of your brand’s visual identity.

Who needs a logo?
The short answer is, everyone. Every small business needs a memorable symbol that encapsulates its unique spirit, with the power to be front-of-mind the next time consumers need your product or service.

The John Deere brand exemplifies this. Their name, running deer logo, signature pairing of green and yellow, and ‘Nothing Runs Like a Deere’ tagline coalesce to create a singular vision of natural power and elegance. If only one of those elements sticks in the consumers’ consciousness, they’re already ahead.

 Of course getting a logo and brand to work in harmony together like the John Deere brand, does not happen easily or overnight.  A great deal of work goes into creating and then protecting a logo and brand.

It can’t do all the work
Equally, the simple act of creating a logo doesn’t ensure its success. It’s what you do with it that matters. Getting the logo right is important to all businesses, but it’s more important to get the business itself right. 

 A recognizable logo is more an outcome of success rather than the cause of the success. For example, the Apple logo is, without a doubt, an extremely powerful icon, but only because of Apple’s overall success.  Start with a good logo and build the brand underneath it.

Five considerations for logos
Here are five things to consider in order to make sure you end up with a valuable brand asset that will serve your business well.

1. Location, Location, Location
First, where is your logo going to be seen? Will it be online or offline or both? Will you use it on business cards, billboards, embroidered logo apparel, a website or the side of a truck? 

Intricate logos or lengthy wordmarks won’t translate well to some applications.  For example, many graphic designers and small business owners don’t think about custom embroidery when they are creating a logo. 

2. Words and Pictures
Logos generally take one of three forms: wordmarks, brandmarks or both. Wordmarks, as the name suggests, use the name of the business as a logo, whereas a brandmark is a graphic element.

Many of the worlds most recognizable brands are workmarks like facebook, 3M and Wal-Mart.

But if the spirit of your business could be better encapsulated in a striking image, or needs to achieve coherence across a huge range of applications and products, it’s worth thinking about a suitable symbol in addition to the business name.

But be careful, many small business owners try to get the image or graphic in a logo to sell the product.  Consequently, they end up creating a graphic element that is too complicated to be effective and useful.  In logo design, less is more.

3. Dial up the Personality
You’ve done all the strategic thinking and distilled your proposition. Whatever kind of logo you create needs to also reflect this essence. Is your brand traditional or contemporary? Youthful or established? Global or local?

 Whatever the unique personality of your business, make sure that the color palette, style, and feel are in complete harmony. But don’t get too hung up on creativity; think in more practical terms as well – will your color logo still pop if it is copied in black-and-white?

4. Font Matters
If your logo incorporates text, your typographic choices are every bit as important as the color. Consider the character of different fonts – traditional and solid, ornate and feminine, bold and technological – the variations are almost infinite.

Legibility at all sizes and resolutions is critical for any logo.

5. The Test of Time
Although it might evolve over time, your logo needs longevity – its purpose is to become embedded in the minds of your customers, a feat that’s hard to achieve if you keep changing it. Graphic design, as with apparel, has passing trends; so opt for something that expresses your essential style rather than a fleeting fashion. Flash forward 10 years: will it still suit your business? If not, you may need to go back to the drawing board.

Every Small Business Has a Brand

Brands occupy every corner of our lives, and affect almost every decision we make each day. Why do we choose one brand of soda over another? Why does owning one particular make of car give us a sense of pleasure or pride, while owning another satisfies less?

Branding is every bit as important to small business as it is to big companies. As marketing expert John Jantsch says, “Every small business has a brand. The question is whether the makeup of the brand is created intentionally or accidentally. There is little doubt in my mind that small businesses that find themselves in possession of what some would call a strong brand are far more likely to achieve great things than those that simply go out there and compete.”

So What Is a Brand? Your brand is how you communicate the essence of your business. Many think branding is simply a logo, but that’s only part of it. It’s also your business name, the products or services you provide, and how you deliver them to your consumer. It’s the idea you create in your customer’s mind about who you are and what you do. It’s this idea of your brand that’s so powerful, and prompts your customers to choose you over a rival.

How Is a Brand Expressed? Depending on your business, branding can mean very different things. If you’re in the service industry, for instance, you may need to give more attention to the point of delivery, such as customer service and embroidered employee uniforms, than to the logo or website. If your business is international, you’ll need to take cultural and linguistic implications into account. And if your business exists predominantly online, there’s the issue of how your branding will work in digital environments.

Where Will Your Brand Be Expressed? Where and how consumers interact with your brand is key to understanding what it needs to accomplish. Do you have an office or storefront? Do you use printed stationery, e-mail or both? Packaging, logo apparel, a website, even your business cards – these are all ways consumers will interact with your brand. 

Think about everywhere and every way your customer encounters your business, from the store window, to the greeting they receive as they enter, to signage, delivery trucks, and the way the product is wrapped – all of these express your brand.

What are the key touchpoints for your business? Make a list of the ways people most frequently interact with your brand, then prioritize them.

Starting the Branding Process. Once you’ve identified your customer touchpoints, you’re ready to get on with the business of branding. But don’t leap straight into the design phase – first, you need to do your research. Seeing what the best of your industry is doing, and understanding who and where your audience is, will help you develop a blueprint that will not only make the rest of the branding process more streamlined, but also help as you continue to grow your business in all aspects.