Social capital is defined as the body of relationships that business or organization owners build with others. These relationships are the ones that lead to introductions, endorsements, partnerships, advocacy and even as a source of solid, reliable contractors and employees. In short, social capital is networking gone wild – and wildly successful.

As you can imagine, social capital is part of the foundation of a successful business. Particularly in the age of internet, people can find out about your business or service at the drop of a hat. They can simply type your name into a search engine and read reviews about you, or email others who have used your service.

There are several ways that you can build social capital both on and offline:

Publish reviews
You might want to make a website available to clients so that they can rate your services. Of course, this does open you up to criticism. However, it also will insure that you are aware of any discontent and that you are able to deal directly with problems and then get the credit for resolving them. Once you have a good database of positive feedback, you might put the site on your business card or refer potential clients to it.

· Establish a referral rewards system
Reward clients and employees who send you business. This not only encourages people to recommend you to their friends, but it creates a rapport and a working relationship between you and your clients outside of simply that of provider and customer.
· Say “Thank You”
Make sure that clients and other people who work with you know that you appreciate them. This builds positive feelings about your business more than anything else. A heartfelt thank you and making sure you give credit when it is due lets everyone know that you are an honest and responsible business owner who appreciates their own worth and that of others.

And remember, market creatively, carefully and often!

Every business is constantly building social capital. It can be positive social capital, which results in recommendations, references and advocacy for your business, or it can be negative, which results in bad consumer reports and negative buzz. Either way, you are going to have social capital. Of course, if you are a savvy and responsible business owner then you will take great care that your social capital is positive. You will be responsive to the needs of clients and eager to deliver and even over-deliver whenever possible. The rare instances of consumer dissatisfaction that you deal with will be overwhelmed by the positive evidence that you are truly a responsible and trustworthy partner.

When you have this kind of positive social capital, you should put it to use. Social capital can be self-perpetuating, but you can also harness it to create even more capital and more business for yourself. Here are just a few ways that you can use social capital to create business and cement relationships:

· Keep a reference list
If a client has been particularly pleased with your service, ask them if you can refer other people to them. Most strongly satisfied clients will be more than happy to tell other people about their experiences as long as you do not overwhelm them with contacts.
· Get it in writing
Another option for showing off your social capital is with testimonials. Customers who do not want to be contacted will likely be happy to write down a summary of your interactions and why they were pleased with your service. A portfolio of these can be very convincing to future potential clients.
· Keep the buzz going
Make sure that your name is out there – even when you may not be the center of conversation. Items like pens, golf balls, magnets, briefcases or T-shirts are all good ways to be visible whether you are physically present or not. When people comment on the brand on the shirt, pen, etc., the owner will then be more likely to describe the pleasant interaction that they had with you.

And remember, market creatively, carefully and often!

As a business owner, you are nearly always trying to expand the number of potential customers or clients that you are reaching. A good way to think of these networks is to imagine them as a series of overlapping spheres. Each person is at the center of a network, which is comprised of the people that he or she knows. Each one of these people is also at the center of their network, and a member of others.

When you visualize networking in this way, you can quickly see how an entire business networking “universe” can be built from these spheres. This can lead to some effective networking strategies:

· Pick your targets based on the size of their “spheres”
If you develop a strong relationship with someone in the community whose knowledge and abilities are highly respected, then you will, by association, gain some valuable standing when that person thinks highly of you. In addition, you will also get more exposure when they speak highly of you because, simply put, more people are listening.

· Evaluate the quality of a sphere
Carefully consider the people with whom you do business. If you work with someone who is dishonest or unscrupulous, then that may taint your reputation as well. Always use your good judgment, and do not refuse to work with someone solely based on their reputation. However, should you find that they do, indeed, engage in poor business practices or work closely with others who cheat or steal, then you should probably try to end your relationship as pleasantly as possible.

· Turn your own sphere to your advantage
Just as you want to work with and for people who can help you advance your business, so will others want to work with and for you. Cultivate your sphere to include business contacts in every area that can be related to your business. For example, if you are a landscaper you might want to have a number of contractors, builders, real estate investors, painters and general maintenance workers in your sphere. Not only will knowing them help your exposure, but it can also make others want to work with you in hopes of making valuable contacts later.

And remember, market creatively, carefully and often!

It can be difficult to stay positive when your business is struggling. In fact, you may reach a point where things look so bleak that it is absolutely tempting to wallow in your misery. However, should you succumb to this temptation, it will surely be the end of your business. In addition, it can place a major strain on personal relationships and even sabotage your professional reputation permanently.

As a result, it is vital that you learn to stay positive even when everything stinks. This does not mean hide your head in the sand or whistle while your ship sinks. Instead, it means using the negativity around you to turn a bad situation into something a little more palatable and productive. I know from personal experience that this is a pretty tall order when things are going bad. That is why I have made this list of actionable things to do to turn a bad situation around.

•    Look for new opportunities.
When business booms, you stick with what is working. However, when things go south it may be time to give up some of your long-term habits that may not be working so well anymore. Good places to “renovate” are advertising (are you getting the most targeted, effective marketing possible?) and promotions.

•    Explore new avenues of time investment.
If business is slow, then you probably have some extra time on your hands. The best way to make this time productive is to chart how to spend it. There may be an arena of your business that you have always thought looked promising but did not have the time to explore. Now is a good time to investigate new options and alternatives without having to hire another hand on deck.

•    Reevaluate your priorities.
Take a hard look at your mission statement. If you do not have one, then write one. Setting your priorities to paper will give you and your employees a better sense of purpose and direction. This can make a major difference in how productively and efficiently your company runs.

•    Count your blessings.
Of course, you should always count your family, friends, health, etc. But for now, be a little more focused. Count your business’s blessings. This means clients that have stayed loyal, income that is still coming in and things that are working. Itemizing positives not only helps you stay positive, but it will help you target the things that are (and are not) working for you so that you can effect a change that will help turn things around.

And remember, market creatively, carefully and often!

Humor is a great way to make an advertising campaign memorable and successful. However, it can also be a great way to ruin a rapport with clients, waste thousands of dollars in promotional fees and cost you even more in lost business than you can calculate. This is because what is funny is highly subjective. Everyone has a different type of sense of humor. When a humorous advertising campaign pays off, it pays off big. However, when the campaign flops, the fallout can be exponential as well.

Here are a few tips on how to incorporate and evaluate humor and its role in your advertising:

• Make sure that the humor reinforces the message in your advertising
  If you are simply funny for the sake of being funny, people may remember your ad but have no idea what services you are providing or what you are selling. When this happens, you have done little more than provide some free entertainment.
• Keep your audience in mind when you weigh your alternatives
  Some types of humor are appropriate for public consumption while others are not. However, there is a broad middle ground that incorporates “inside jokes” into the equation. These allow you to make your target audience feel included and part of a joke without potentially offending other members of the viewing or listening audience. Since the demographic of your target audience plays a major role in the success of your humorous advertising and “R rated” audiences generally do not respond to “G rated” jokes, this may enable you to find a way around potentially offensive material.
• Avoid punch lines
  Generally humorous advertising is more successful when it uses a memorable humorous image or concept rather than relying on a one-line punch line. Focus on images and concepts that will make a connection with your target audience.

And remember, market creatively, carefully and often!

If you are the sort of business owner who never takes time off, then you may actually be hurting your business! How can this be, you may be wondering. I devote every waking hour to making sure that my business runs smoothly. In fact, I hardly ever leave my office. However, in reality, staying that close to home base can take a serious toll on your business’s growth and expansion because you lose the ability to network when you are inside your own office 24/7.

Fortunately, you can give yourself a break from those same four walls and get some serious work done at the same time.

The key is simple: networking.

No matter what your business, you can benefit from knowing other people in related fields and who work in compatible arenas. However, often business owners neglect their networking responsibilities once their businesses start to grow because they become mired in the responsibilities of running the business from day to day. However, having a good name among your peers and clients can work wonders for the growth of your client base and your sales.

In order to network, you do not have to spend all your time “schmoozing” with potential and current clients and co-workers. Instead, plan your networking strategy just as carefully as you plan the other aspects of your business growth and development. Decide where you want to go, and then determine who may be able to help advise you, assist you or even catapult you there. Those are the people that you need to network with.

Networking does not need to be a “kiss-fest” that lasts for hours. Other people are busy with their businesses too, but they, like you, may welcome the chance to get out of the office for an hour or so. This makes a networking lunch ideal, and will keep you from gluing your nose to the screen all the way through your lunch hour. Of course, the traditional business golf outing can also be popular, and playing a game together can bring you and a potential client, mentor or partner together in a way that a board meeting or office appointment never could.

If you do not feel that you have time for this type of absence, then you may decide to take a more reserved approach. Many people simply dedicate a few 15-minute periods a day to making phone calls or having coffee with people that they need to network with. You can make these interludes more memorable by leaving your coffee partner with an item of promotional merchandise such as a pen or a coffee mug that will bring the meeting back to their mind later when they use it. Just remember, do not be afraid to leave the office. That “time off” or time out could be the key to dramatic business growth and expansion.

And remember, market creatively, carefully and often!

While it is certainly up for debate whether the economy is actually “frozen,” it is undeniable that people and businesses are struggling in at least some sectors of the business world. In order to keep up your hopes – and the hopes of the customers that your business needs to survive – you need to understand how the eventual economic “thaw” will happen. Once you know what to look for, you will not constantly be raised up with excitement and then plunged into despair when it looks like the signs of an upswing were not there after all. I recently read an article by Michael Dotson called “Clearing a Passage through Today’s ‘Frozen’ Economy” that I thought really summed up the best way to look at the economic conditions of today through a positive yet practical lens.
Here is a summary of Dotson’s points:

•    You need to understand the “terrain” of the present economy.
Because most businesses have battened down the hatches and are trying to weather the storm, the economy at large may remain largely static until these businesses or new businesses emerge. You will need to determine based on your budget and your bottom line whether you have the wherewithal to be an emerging force or whether it will be better to simply try to ride it out. In general, adapting and emerging will be the key to growth in the future.

•    Do not be frustrated by slow progress.
Your business plan needs to factor in that growth may be agonizingly slow – especially for those of us who may not have been in business during the last major recession and have only the past few booming decades as a reference for the speed at which we should be making money. Plan for the long term, and you will have the resources to get there.

•    Be different.
Standing out will help your business develop a niche market now while other businesses are “underground.” When they emerge, then you will already be the established leader in your arena.

•    Use technology wisely.
Email marketing is very inexpensive and highly effective – if you know how to make it work. If you do not, then invest in some education or a tech assistant to help you implement this highly effective advertising opportunity.

•    Understand that you have to make an effort to reap the reward.
If you just keep your head down and hope you will make it through, then making it through is all that you will accomplish. However, if you do your homework, understand the market and take action to build your business even though these are frightening times, then the rewards will be proportional to your efforts.

And remember, market creatively, carefully and often!

When the economy becomes uncertain, everything suffers. Businesses may fail, and families may fall apart. Many times people who own businesses are the hardest hit because they feel a double responsibility to their own families and to the families of their employees. Hard times can force cut-backs and demonize the people who are compelled to make them. This is unfair, but it still creates a serious toll on businesses and business owners everywhere. Even if your business is thriving, you may still feel pressure from the uncertainty of the economy and from everyone around you who may be having difficulties. This can put strain on a marriage and even take your business under when it should be doing well.

Here are some tips for keeping your head up and your business afloat when times become uncertain:

• Focus on the positive

You should be realistic about the economy, but it does no good to dwell on it. Instead, look for opportunities to alter your business to create new clients and meet new markets’ needs. This will help you feel positive about your options, and keep the people around you (employees, clients and family) feeling good about what they are doing and how they will be moving forward with your business in the future.

• Cut judiciously

It can be tempting to cut every corner possible when the economy becomes uncertain. You may want to save as much money as possible, and this is reasonable. However, cutting advertising or services can actually knock you farther out of business and take you under when you should be afloat. Investigating new options, like promotional merchandising which is a cheap and effective form of advertising, is better than eliminating advertising completely. Also, you will feel as if you are invisible if you cut your advertising – because you are! Taking new approaches will keep you moving forward and prevent you from getting discouraged.

• Take a break

This does not mean take the day off work, but it does mean leave work at work! Giving yourself just an hour or two in the evenings to relax and enjoy your family or some quiet time alone will help you return to work the morning rejuvenated and ready to get going. Your employees and your clients will also notice a difference if you stop taking all your worries home with you and come in with a fresh outlook each day.

And remember, market creatively, carefully and often!

During these exciting and tumultuous times, we may find ourselves longing for the “good old days” when things were predictable and we could foretell, fairly accurately, what tomorrow would bring for our business based on the steps that we took today and the results that those strategies yielded. However, it is indisputable that this type of “normality” is over for today’s successful businesses. In fact, we may as well accept that the “new normality” is one where our businesses will be exposed to turbulence, a certain degree of uncertainty and a variety of surprises on an unpredictable basis that will totally change the way that we live, work and make money.

And you know what? I don’t think that this is necessarily a bad thing. While we may occasionally long for a return to “normal” times, a lot of this turbulence is actually positive. The massive economic shake-up presents vast opportunities for your business to move into new areas of customer service and take over new markets, in addition to providing the opportunity that seldom came along in the past to literally knock a competitor out of the competition simply by providing better goods and services for a better price. Historically, when things are predictable people do not make changes. However, when things get “hairy,” then the best man, woman or business nearly always reaps the rewards.

However, living in this “new normal” will take some getting used to. You will have to cultivate an attitude of flexibility, and those de-stressing breathing techniques you learned at that one yoga class you attended last year may come in handy as you learn to keep a clear head in unusual and surprising situations. The best way to adapt to the new business environment is to be as prepared as possible for all eventualities, but also be prepared to be unprepared. Instead of worrying constantly over every detail that you cannot predict, focus on controlling what you can (your level of quality and service) and rely on your own intuition and honest business sense to help you identify areas where you can provide better quality and service to customers.

Be open to new marketing ideas, such as the current popular trend of using promotional merchandise to make all of your marketing do “double duty” by promoting your business not only to the person using the merchandise  but also to everyone who sees it,  you can prepare yourself for a new era of flexibility and profitability when it comes to marketing and business success in the “new normal” of business and strategy.

And remember, market creatively, carefully and often!

I have decided that the time has come to accept the fact that the world of business has changed forever. As a result of this acceptance, I believe that business owners can no longer simply hope to “hold on” until things return to normal, but instead must push forward using all the resources of our current and future technology and innovations to continue to sell and promote our products and services. In this time of change, there are definitely some old business practices that need to fall by the wayside as we move forward into this new and exciting world of changing business opportunities.

• Overconfidence is out - While it is important to express confidence in your abilities and your business, arrogant, over-confidence – which used to inspire confidence in a lot of buyers – now turns them off. This is largely because of the public failure and humiliation of large, confident fixtures in our business world like banks and insurance companies. Being “too big to fail” is no longer a good thing, because companies that fit that description are failing right and left. Be confident, but back up every word of your pitch with a solid fact that can reassure a troubled or cautious buyer.

• Do not apologize for other people’s failures - In an attempt to seem humble and aware of the possibility that a business might fail, many business owners are overcompensating for potential problems by apologizing for them in advance. If someone offered to sell you a car, then made you a list of the things that could go wrong with it, you would probably not ultimately make the purchase. In the same way, pointing out potential problems is not the way to win over potential clients. Instead, point out how those problems are not really problems for you because your business model is designed to deal with them before they escalate out of control.

• Don’t overdo it – be conservative. - This is not a political statement, but rather a statement on waste. More than ever, people want to see businesses using money wisely rather than spending extravagantly. Advertise effectively, but do not go overboard and send your potential customers large volumes of material that they probably will not read anyway. Instead, multi-task by sending them something that they can use that has your logo and contact information on it. This type of marketing tool is called promotional merchandise, and in a time when proving your intent to provide great value means everything, a good piece of promotional merchandise will outsell a twenty-page sales letter any day.

And remember, market creatively, carefully and often!