Big Tips for Small Business with Tim Armstrong

If you were a small business and had $500 left in your monthly budget at the end of the month, how would you spend it?
I would spend it online, and I would think about how to reward my most loyal customers. One win-win would be to offer the most loyal customers an ability to bring a friend along for a special deal – a 2-for-1 offer where the loyal customer gets to give something special to a friend and you as the business owner get a warm introduction to a new customer.

Think of your favorite local business in your current town or hometown. What makes it stand out and feel special to you?
My current favorite small business is Lacrosse Unlimited in Riverside, CT. The store is small, but they are very helpful, and they care a lot about the products they sell. I also love Upper Crust Bagel in Riverside because they know you as a customer and they have great bagels and a family atmosphere.

What’s the most important thing to consider when making the leap from small business to the big time?
The most important thing from going small to going big is that the same things you did well when you were small are the same things you need to do when you are big. Big can mean distractions, and if you lose focus on the core product, you won’t get big.

What’s the advantage a small business has over a larger one?
Small businesses can be nimble and can have intimate relationships with their customers. Knowing what the customers want is a very big advantage.

If you had one piece of advice for small business owners, what would it be?
The advice I would give is the same advice I give myself – how do you create a differentiated and time-saving experience versus your competition. If a consumer cannot tell another consumer what unique benefit you offer, you might be missing an opportunity.

Tim Armstrong is the Chairman and CEO of AOL. Prior to AOL, Tim served as President of Google’s Americas Operations. Tim has also started or co-founded multiple companies, including Associated Content and Patch.