Small Business and Branding – Why and How?
When we speak of branding most of the time people try to relate it to big business house, however, the fact is that every business needs to establish their brand in order to survive the competition. This is nothing new; experts and management gurus had been preaching the same sermon for years now but what they have not told is why you need to brand your small business? How is branding going to help you to establish your business? How can you establish your brand without spending a fortune on it?
You might be having a very small business but would you like your client to perceive your business as a small time entrepreneurial effort? Definitely not, and your business cards, letterheads and other marketing collaterals does just that. They create an impression to your clients that you are an established business house of considerable strength and not just a mom-n-pop shop.
While you have read till this much, you might have started to plan to get a few home printed business cards or visit the website where you saw the preformatted business cards being sold for peanuts. Beware! The quality of your business card is an indication of the status of your business and your clients are intelligent enough to understand the difference between a standard designed perforated business card and a professionally designed business card printed on good quality card stock.
Most of us, including you, would prefer to consider the stability of a company before making a purchase decision. Once you have established your brand with a professionally designed logo, business card and other marketing efforts it becomes much easier for you to build your credibility among the customers.
Getting a professionally designed custom logo is one of the very important elements of branding a business. A logo is not just a symbol or a piece of graphics; it is actually your corporate identity. A properly designed logo can leave long lasting impression on your clients and will never let your business slip out of their minds. It also makes your business easily recognizable. Just think, wherever you see the Golden M of McDonald’s do you really need to think twice, what company is that referring to? A good logo should ideally exude the nature and attitude of the business.
Once you have got a logo for yourself it becomes easier for you to establish your brand. You can use that logo in your business cards, letterheads and other accessories. Don’t you think it is going to make a difference if the pack that you use to deliver your products to your customer has the logo of your company on it? And if you are using a reusable pack, your customer might just use the same pack to pass on some other goods to one of his friends- what happens then? Yes! Your logo gets noticed by one other person, you add one more name to the list of your potential customers. You are on your way to establish your own brand.
Similarly with business cards, as they get passed on from one person to the other, more and more people knows about your business and the potential customer base increases.
Having a business card or professionally designed logo also shows your commitment towards your business.
A short, easy to remember punch line is another useful tool for branding. Getting a tag line printed on your business cards or your business stationery makes it easier for people to understand the nature of your business. Ideally, your tag line should not only say about what you do but also speak about your USP.
Having said all that, the ultimate question that most of the small business people would have is, how much does it cost to get all these things done? I’d say, “not much”. Money is always a problem for most of the small businesses (that’s why they are small, otherwise most of us would like to open a Microsoft and be as rich as Bill Gates) but if you know where to look for, you really don’t need to spend a fortune to get a professionally designed logo or a business card. There are loads of websites that offer them really cheap and some even allow you to decide the price that you want to pay. (Check out this twin sites, http://www.mycorporatelogo.com and http://www.mycorporateidentity.com ).
So, if you think you are tired of being a “small business” and its time to grow up, take the first step; establish your brand!
About The Author
Ray Smith is a marketing expert with years of experience in different industries and specialized knowledge on branding and internet marketing.
http://www.mycorporatelogo.com
webmaster@mycorporatelogo.com
Finance Your Small Business: So Much Money – So Little Time
$37.4 million funded from venture capital today. $86.4 million funded yesterday. $51.4 million funded the day before.
These numbers are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day after day, rain or shine.
I’m not personally looking for business financing – but the entrepreneurs who read my website are. These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.
And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported fundings, and millions more from the $16 billion pool that SBA has this year.
All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.
So how come you’re still looking for financing?
Perhaps you aren’t presenting your company effectively.
Or perhaps you haven’t located the right lender.
It’s also possible that your concept just isn’t very good, but I doubt that. The fact that you are reading this article means you are a serious entrepreneur, with a serious business.
So where do you go to find all these investors? Here are some starting points:
For standard business financing, talk with the local office of the Small Business Administration. It’s a new agency, with new programs and services, and lots of money to lend. Although much of the focus of the SBA is on minority business enterprises, the SBA still has a lot to offer non-minority companies.
Also talk with your local banks. (That was plural “banks”, not “bank”.) Talking with a number of local bankers will rapidly bring into focus the wide ranging priorities of the various banks, and where your company fit in.
As for venture capital and angel investors, there are several options.
One option is to go to online sources. There are a number of online services, such as VFinance, that sell the names and addresses of possible investors. It’s not expensive, perhaps $2-5 per name. The idea is that once you get the list of 200 or 2,000 names in hand that you will contact each with a written executive summary or business plan, and then wait to hear from one of them. This is a very passive approach, roughly akin to throwing paint on the wall and hoping that something will stick.
If you are like most entrepreneurs, patience is not your strong suit, so sitting and waiting for a response is not quite your cup of tea.
Another option is to go to one of the many directories of venture capital firms. These directories typically include addresses, phone numbers and emails, along with the geographical areas of interest and the types of investment that each is seeking. Most businesses can narrow down their list of prospective investors to several hundred venture capital firms this way. And again you are faced with the prospect of sending out written material for each one, and waiting for a response.
A third option is to take a more proactive approach. Identify your best prospects yourself from a number of reliable sources. Get introductions where possible. Learn everything you can about your target investors, and then go after it. Typically a phone call is the first contact, not an anonymous executive summary. Knowing that you are calling your best prospects, you know too that they are open to hearing from you. You have names, you have investment histories, you have everything in hand to make a real connection with the target investors. Then go do it.
Getting your company financed is one of the hardest things you will ever do as an entrepreneur. It can be hugely frustrating, disappointing and genuinely discouraging. But lots of entrepreneurs do it. And so can you.
No one knows when this incredible window of opportunity will close Spruce up that business plan and go for it -- now.
MaryAnn Shank
http://www.businessplanmaster.com
http://businessplanmaster.blogspot.com
About The Author
Ms. Shank is a seasoned business plan specialist, having devoted over 20 years of her career to venture capital firms and emerging companies.
(c)2005 MaryAnn Shank
This article may be reproduced only a entire entity without edits, and only if the above 2 links to Business Plan Master are included.
Top 5 Ways to Generate Qualified Leads for Your Small Business
Do you ever wonder if you could be doing a better job marketing your small business or professional service firm? Successfully marketing a small business is hard work. There are several key skills required to consistently develop new business that you, as a small business owner, must master in order to succeed.
The first skill you need to have is the ability to regularly generate qualified leads. You must consistently build your list of prospects if you are to grow your business. Your business will not grow if you market to the same, stagnant population over and over again. While there will be a certain percentage of people who choose to buy from you after repeated contact with your marketing material, the amount who buy will always be limited by the size of the list to which you market.
How often do you add to your list of qualified prospects?
Here are five steps you can take to improve your prospect building skills.Focus On Client NeedsWhether you print a brochure, advertise in industry periodicals or use search engines to generate traffic to your web site the first thing your marketing materials must do is get noticed. One of the best ways to have your future clients notice you is to use words in your marketing materials that focus on their needs. By using such words your clients will immediately associate your ad with their problem or unmet need.
For example, if you are a patent attorney your ads will have a much better chance of being noticed and acted upon by those who need your service if you use the words, “Get paid for your invention” instead of “Patent Attorney”. Getting paid is what an inventor wants. You may be proud of your status as an attorney but your clients are interested in the results you provide that solve their problem.
Be sure you use words in your marketing material that focus on your clients’ needs. They will get noticed more often.
Eliminate WasteAnother step you can take to improve your ability to generate leads is to eliminate unproductive marketing methods. Marketing takes time, money and effort. If your tactics are not generating the results you want stop using them and try something new. Of course, in order to separate the good tactics from the bad you need to measure the effect of individual marketing efforts.
Perhaps you run the same ad in two different newspapers. If you don’t know that the ad in “paper number two” is generating 95% of your prospects you will never know that it would be a smart move to reallocate the money you spend in “paper number one”.
What steps can you take to measure the effect of individual marketing tactics?
Once you know which tactics are lead generators and which are not you can improve your ability to generate new leads simply by reallocating the resources from unproductive tactics to ones you know work.
Use Your Web Site ProperlyAnother way to maximize your ability to generate leads is to use your web site properly. The purpose of your web site is to generate leads. To maximize the number of leads your web site generates make sure your site has information your prospects want, is easy to navigate and maximizes the opportunity for your prospects to get in touch with you, either by calling you or by providing you with their contact information.
Clearly let your visitors know you’re there for them and they will be much more likely to reach out and get in touch, especially if your site’s content demonstrates that you understand and can solve their problems.
Cross MarketingCross marketing is the process of establishing marketing relationships with companies whose product or service complements what you sell. For example, a company that helps web site owners track the traffic to and through their site would do well to develop relationships with web hosting companies. There is a natural symbiosis here – anyone who has a new web site needs to (or should) measure their site’s traffic so they can make well-informed decisions to guide the evolution of their site and any web hosting company wants their clients’ business to succeed so they can keep them as a customer. Companies don’t need web sites if they’re out of business. It therefore makes sense for web hosting companies to promote web statistics companies and vice versa as each can benefit from the other’s service.
What cross marketing tactics do you use to promote your business?
Ask QuestionsRegardless of your favorite marketing mechanism the goal is the same: to generate interest in your products or services. Whether you use a web site, a brochure or newspaper ads to generate leads the first thing you must do is get your future prospects thinking about the problem that you solve and they have. A great method for invoking this type of thought is to use questions in your marketing materials.
If you are a dentist, questions like, “Do you have tooth pain?” or “Are your teeth sensitive to heat or cold?” will do a much better job of drawing in your prospects that marketing materials that say, “Do you need a dentist?”
What questions can you ask to get your prospects thinking about the problems that they have that you solve?
Move Your Marketing ForwardTake some time to examine your marketing efforts with respect to the notions outlined in this article. Is there room for you to improve your ability to generate leads? Most likely, there is.
Copyright 2005, Better Marketing Results and Jeremy Cohen. All rights reserved.
About The Author
The author, Jeremy Cohen, helps small business owners and professional service providers attract more clients, grow their business and be more successful with his marketing guides and coaching service. Get his free marketing guide: Jumpstart Marketing: More Profits, Clients and Success at: http://www.bettermarketingresults.com/marketing-services.asp
jcohen@bettermarketingresults.com
Mobile Marketing tips for Small Businesses
Welcome to the next frontier in marketing – wireless or mobile marketing, also known as m-commerce.
Analysts predict that 2005 will be the year that mobile marketing really takes off and that companies will take advantage of this medium in much the same way as they did in the early days of the Internet.
>>>>The benefits of mobile marketingThe key benefits of mobile marketing are clear to see. Most mobile users carry their phone or keep it within easy reach at all times, which means that mobile marketing offers a very personal way for marketers to communicate their message to customers. Messages are almost guaranteed to be read, unlike e-mail marketing or direct mail. It also allows companies to build a relationship with their customers, track preferences and highly target their marketing.
>>>>And the dangersThere are of course dangers in using such a personal medium and a badly thought-out mobile marketing campaign could easily be considered intrusive and cause the sender to alienate or lose customers.
>>>>Can any business do it?Is mobile marketing just for big companies then or can small businesses do it too?
If you are a small business person then the good news is that mobile marketing is a technique that companies of every size can employ. There are of course several points you need to consider before embarking on your first mobile marketing campaign.
>>>>What technology is involved?The options available to you are primarily WAP and SMS. WAP (Wireless Application Protocol) is essentially a cut down version of a web browser that enables people with WAP enabled mobile phones to access very basic versions of web pages.
SMS stands for Short Messaging Service and is also known as text messaging or texting and allows mobile users to send and receive text messages of up to 160 characters long. Most small businesses will find it easier to use text messages to communicate with their customers rather than WAP.
>>>>Mobile marketing – how do I do it?What does a small business need in order to carry out a mobile marketing campaign?
Firstly of course you need to get your customers to agree to disclose their mobile numbers (they must opt in to receiving messages via their mobile phones in order for you to comply with privacy and distance selling regulations).
While on the subject of privacy, you must ensure that when you do market to people via their mobiles, you give them a way of opting out of receiving further communications from you. Allow them to text you back with the word ‘Unsubscribe’ or ‘stop’, for example.
>>>>What’s the best way to collect mobile numbers?The simplest way to get customers’ mobile numbers is to ask them. If you run a bricks and mortar business, ask customers for their numbers when you are talking to them or in your newsletter, brochure, advertising or direct mail. Similarly, if you run an online business serving the local area, ask them for their number when they inquire or purchase or when you email them. If necessary, incentivize customers to give you their number by, for example, running a competition or draw and offering a prize.
Bear in mind that if you are a small business, mobile marketing using text messages will work best if you are targeting your local market. If you run, say, a dry-cleaning business, there is little point marketing to people on the other side of the country.
>>>>How can my business use mobile marketing?It depends on your business but, for example, you could use it to inform customers of new product ranges that may be of interest to them, or special offers and special events. Or you could invite them to participate in a competition. Just make sure your messages are targeted.
>>>>What does mobile marketing cost?Mobile marketing costs are low – it doesn’t cost a lot to send a text message. However, costs may vary depending on the mobile network used. Talk to your phone company.
>>>>What should I say in my message?The message length available to you is 160 characters so plan your messages carefully, keep them brief and to the point and make each word count. Include a call to action in each message such as “call now” or “come into the shop now” (and the opt-out instructions).
>>>>I’m still not sure…If you are not sure whether mobile marketing will work for your business, why not try it and see. A small campaign will cost very little (especially compared with something like direct mail) and your business could be in for a pleasant surprise as a result.
-Chris Smith
About The Author
Chris Smith is involved with Mano Design ( http://www.mano-design.com ) - a Vancouver design and marketing agency and is also a freelance copywriter.
Small Business Pricing Strategies
It's tough out there, particularly because of layoffs and our sluggish economy. So what's a small business entrepreneur trying to make a living to do? Try these low-cost pricing strategies to keep sales moving.
TACTIC #1 -- Never simply slash your prices, unless you're trying to empty obsolete inventory. Instead, try repackaging your prices so they're more affordable in the short-run so more prospects can afford them. For example, rather than pricing your service for the year, "Our monthly newsletter is only $39 for the year." Instead, try "Our monthly newsletter is only $3.25 per month." If you accept credit cards, it's very easy to set up reoccurring monthly charges that are billed to your subscribers without having to intervene every month beyond the initial account set up. The upside to offering your subscription on a monthly basis is that you can now market a $3.25 headline versus a more expensive $39 headline, i.e. you're able to offer services at a more affordable rate without slashing prices.
ANOTHER EXAMPLEHere's another example. Just last night I was on the phone with a potential marketing client. As a small business owner she's trying to get some marketing help and is on a tight budget. My standard hourly consulting fee is $225, which is not always appealing to some businesses. However, in trying to work within her budget I suggested that my services could be more affordable for her if she allowed me to help her through email instead of face-to-face or on the phone. Let's face it, when you're on the phone with a client it takes longer to accomplish what you're doing since you're not only answering their questions, but you're building a relationship and talking about unrelated topics. It's difficult not to. In fact, you should! No matter what type of consultant you are, building a successful business is not about the initial sale, it's about establishing a long-term relationship with customers. One-off sales don't lend themselves to growing a profitable business; rather, deep customer relationships do! However, since I was able to establish a trustworthy and comfortable relationship with my prospect on the phone, she thought my marketing services through email would be a win-win. Did I slash my prices? No, instead I found a more efficient way to offer my services, whereby I could offer them in less time and therefore, my client will pay less money. This strategy could work for business coaches, fitness experts or personal chefs, when the latter prepares meals in her home rather than in a client's home.
TACTIC #2 -- Create tightly niched product or service offerings. For example, if you're operating a personal concierge service, rather than just offer errand services at $25 an hour, try prepackaging specific errands with associated lower pricing. Why? Because you can offer a more aggressive price when isolating your fee to one particular service. If your customer challenges your reduced price as compared to your higher hourly fee, your response is simply, "I'm able to offer this lower packaged price because of economies of scale. While I'm out delivering your bundles to the Post Office, I'm also delivering packages for five other customers." Ultimately, your customers will never know how many other customers you're delivering for that day; however, the key is not to simply slash your pricing because you believe that reducing your prices will bring you more business. The key is to provide consistent and professional pricing practices.
P.S...Yes, business is slow for many entrepreneurs right now; however, be cautious with your pricing methods. Don't simply slash prices; instead incorporate long-term and short-term strategies that are always complementary to each other. If you offer a product for $15 today, then again at $35 six months from now, you must have your reasons in place, otherwise you'll aggravate your customers.
-Sharron Senter
About The Author
Sharron Senter is a New England-based marketing consultant, speaker, writer and founder of Senter & Associates, a marketing communications firm that helps small businesses deploy low-cost marketing strategies. Sharron is well known for her free monthly emailed marketing tips, found at http://www.sharronsenter.com. She’s also the cofounder of http://www.VisitingGeeks.com – an onsite computer repair, networking and security company based north of Boston.
Small Business 101: Deadly Ignorance
American small business is again in transition. Many employees, now working from home, are no longer tied to a geographic office and the woes of commuting. This is a relatively new phenomenon with hints of explosive sector growth in the days ahead. As this turbulent economy has forced downsizing, offshore restructuring and closures in large companies, many new entrepreneurs have been born. These are people, who instead of tirelessly attempting to find new employment and possibly enduring the same fate as previously experienced, are now starting small businesses and enjoying the benefits and perils of self-employment.
There's an old story telling of an Admiral's decision to fight a battle against overwhelming odds. It seems that he was approaching the coast of an enemy land, with a larger naval force closing in from behind and a great army approaching from the land ahead. He prayed and then addressed his men. He announced that their battle weary forces would land on the beach ahead, dig in and prepare for the upcoming battle. There was no turning back and no other alternative. He ordered their ships burned after they landed. Their only choice was to fight to win or perish. They defeated their enemy because he eliminated any other escape route. They were fixed on the goal of survival and none other.
That is the same attitude we as entrepreneurs must take. We can not afford to be denied. We must grow and prosper or our business will surely perish. We must constantly be looking for ways to cost-effectively market our business and increase sales. We must control costs and have sufficient cash flow for daily operations. Each of us must be persistent, relentless and vigilant. As CEO, we are the manufacturer, the sales team, the marketing department, legal office, accounting office, human resources manager, IT manager, the webmaster and so on. We can't afford to be all these positions. Our job is to sell! We must locate cost effective resources to help us grow and protect our investment in our business.
The growth of the internet has changed our marketplace as well. Years ago, a small business owner decided upon a geographic chunk of the market and set up shop. Today, that shop is typically located in an office at the entrepreneur's home. The marketplace is now the world. The costs of marketing products and communicating worldwide are so low that almost anyone can take part in this revolution. Sophisticated voice mail, cell phones, email and effective ecommerce web sites now provide the illusion of size and grandeur for even the smallest home-based business. The end customer typically has no idea whether their supplier is local or across the world. He may be dressed in a shirt and tie or in his pajamas! All that typically matters is that the exchange of product and services is successfully made for a profit.
It is critically important for the small, home-based entrepreneur to be aware of resources available to her as she makes this great leap. Too many people leap prematurely into business only to fail because of poor planning and insufficient financial resources. Do not get caught in this trap. Don't quit your day job until you have enough cash on hand to pay the bills for at least a year into your new venture. Become aware of and develop the resources available to you. You want everything possible going for you as you make this leap of faith into the entrepreneurial world.
Here in South Carolina, we have the outstanding Women's Business Center (http://www.scwbc.org), a division of the SCMEP, South Carolina Manufacturers Extension Partnership (http://www.scmep.org), one of the best kept secrets available to businesses at all levels in our State. Other States have similar programs modeled after ours. These are incredible resources, partially funded by the State and private resources, available at little to no cost to entrepreneurs, with the purpose of aiding the successful growth of small business. Some additional national resources are:
http://www.nationalbusiness.org http://www.nase.org http://www.gosmallbiz.com http://www.empoweringbiz.com http://www.nfib.org http://www.qualitybusinessdirectory.com
There are also numerous magazines devoted to small business, home-based business, marketing, sales, accounting, etc… Get tuned in to these and other resources available to you. Read your industry publications to stay abreast of competition and other facets of your business interests.
A single legal issue, FACTA problem, accounting error or marketing miscue can put you out of business. In the case of FACTA, insufficient security or poor record-keeping these days could find you legally responsible for a single employee's identity fraud issue, which may end up being very costly. A single lawsuit or vendor dispute can shut you down. Many entrepreneurs are ignorant, ill-prepared and under-schooled with regard to these and other issues. Do not get caught in the deadly ignorance trap.
There is more opportunity available today than ever before for the wise entrepreneur. Get all you ducks in a row before you make the fateful leap into the new world marketplace. Be smart, learn all you can as quickly as possible and take action on your ideas. Like the Admiral, be determined to win in the face of what may appear to be overwhelming adversity.
Copyright 2005 Daniel Sitter
About The Author
Daniel Sitter is the author of the breakthrough e-book, Learning For Profit, the revolutionary how-to book providing simple, step-by-step instructions to teach people exactly how to learn new skills faster than ever before. It’s currently available from c|net’s download.com, the author’s web site www.learningforprofit.com and a variety of online book merchants. Mr. Sitter is a contributing writer for several online and traditional publications. His expertise includes sales, marketing, effective learning techniques, self-improvement and general business interests.
The Creativity is King in Small Business
In my last article, “The Reality of Buying Wholesale,” we looked at some of the controls that the largest companies in the consumer goods market place on their distribution channels. As we learned, some of these companies make it impossible for the small, start-up online retailer to obtain their merchandise.
However, this is no reason to give up on your dream of being a retailer. Less capital to invest just requires a little more creativity. Many established retailers have built their businesses by starting out small and then adding more products as they grew. In this article, we’ll look at some creative options available for those who don’t meet the requirements to be an authorized retailer with some of the most popular brand names.
Where do businesses find merchandise?I’m sure some of you are thinking right now about the many eBay sellers or independent online retailers who sell popular brand names. If they are products that are only sold direct to authorized retailers, or through wholesalers bound by strict manufacturer’s requirements, then these sellers are obtaining their products in one of three ways:
1. They are an authorized retailer who met the manufacturer’s requirements
2. They are selling used merchandise
3. They purchased their merchandise through liquidation or closeout
Sell Used Goods
If you’re looking to make money selling on eBay, selling used merchandise is a very viable idea. Many sellers, including several of my personal friends, have built successful eBay businesses selling used clothing, electronics, musical instruments, and toys, just to name a few. They locate their merchandise through estate sales, garage sales, classified ads, thrift stores, consignment shops, and sometimes even through eBay itself. Then they clean up the merchandise if need be, and list it for sale in an attractive and exciting way. I know several people who substantially subsidize their existing incomes by doing this, and I even know a couple who do nothing but sell on eBay.
Closeouts and LiquidationsCloseouts and liquidations are also a very viable source of merchandise for both eBay and an online retail store. With a good closeout or liquidation source, you purchase reasonable lots of overstocked or discontinued merchandise. You’ll be purchasing last year’s models, but there is a large market out there for this merchandise. Most people don’t have to have the latest style or model, especially when there is a large savings involved by purchasing last year’s products. Many sources of liquidations and closeouts are available by searching online and calling around to do your research.
Consider Lesser Known BrandsAnother option is to look at other brands that may not be among the most popular. Not every consumer has to have the most popular, most expensive brand. In fact, most people don’t buy the top brands all of the time, making this market very large. This is an excellent option for someone who wants to establish a retail store selling brand new, recent model merchandise. Once you establish yourself as a respected retailer in this market, your reputation will make applying to resell other products that much easier.
Keep an Open MindWhen you’re deciding on a business venture, it’s very important that you don’t go in with blinders on. Be willing to consider multiple types of products before deciding on the items that you want to sell. For instance, clothing, consumer electronics, and DVDs are very popular items, and not just among consumers but also among sellers. If you choose a very popular market, the requirements for resale may not only be more difficult, but it may also be more difficult to compete with the mass of sellers in the market.
Creativity is KingCreativity is king in the business world. To be successful, you must locate a niche where you can provide a benefit that makes your business stand out. When I talk of creativity, I don’t necessarily mean originality, either. There is a difference. It’s difficult to be original in the business world, as so much has been done already. Originality doesn’t always win either. If you’re too above and beyond the norm, people may not relate to your approach, and thus turn away.
Creativity could be as simple as borrowing an idea from another market and applying it to a market where it hasn’t been used. People had long delivered flowers, and people had long delivered groceries, but no one had ever delivered pizzas until Domino’s started doing it. Now everyone down to the smallest corner pizza joint delivers pizza because it works.
That’s an example on a grand scale of where a simple idea grew into a giant success. Not all of us will be as fortunate as Domino’s, but millions of business owners have succeeded using the same principles. They located a niche where they could provide a benefit that made them stand out, if even ever so slightly from their competitors. This advantage gave them market share, and now they live comfortably from the proceeds of their creativity.
Put Forth the Time and You Will Reap the BenefitsCreating a business requires a great deal of time and research. You’ll need to research products and find some that are attainable at a price that will make you a profit. Then, you’ll need to research the market and determine an approach that will set you apart. At the same time, remember to keep an open mind and consider several markets, ideas, and approaches before you decide on the best fit. You have a lot of work ahead of you, but no one ever said that good things come easy. And I can tell you that when you do your research and do it right, the benefits are more than worth the effort.
In my next article, I’ll be discussing the reasons the Internet has made business ownership much more attainable within the last five years. Until then, put on your thinking hats and find yourself an idea worth that’s worth the effort. And, as always, good luck in all of your business ventures!
-Kirk Larson
About The Author
Kirk Larson has worked for over 15 years in business as a writer, personnel manager, and most recently for the last 4 years as a successful entrepreneur. To learn more about Wholesalers, visit http://www.wholesale-suppliers.net
Small Business Debt Collection Laws
In your small business debt collection laws will eventually become important, as your debt grows and some clients do not pay. To collect small business debts legally, you must send a written notice that collections have begun, within five days of first contacting the debtor for collections. The letter must include dispute instructions.
Small Business Debt Collection Laws Forbidden Practices… * Collect any amount beyond the actual debt, unless you really can do so legally.
* Continue collections on a debt if the debtor has disputed the debt, unless you provide the debtor with written proof.
* Continue contacting the debtor if within 30 days of first contact, the debtor disputes the debt.
* Credit a payment the debtor has made to a non-disputed debt to a debt the debtor has disputed.
* Deposit a post-dated check before the post-date.
Small Business Debt Collections Laws: What You Can't Say * Give a false name.
* You are an attorney or government representative, if you are not.
* You have an attorney working for you or that you are going to assign the case to an attorney, if you really do not.
* The debtor has committed a crime, unless you are 100% sure they have.
* You work for a credit bureau, if you really do not.
* The debt is more or less money than it actually is.
* You are sending or have sent legal forms when you really did not.
* You are sending or have sent papers that are not legal forms, if they really are legal forms.
* The debtor will be arrested--no one is arrested for nonpayment of debts anymore.
* You will seize, garnish, attach, or sell the debtor's property or wages, if you do not really intend to or cannot legally do so (and unless the debt is secured with collateral, you probably cannot).
* You will sue or take other legal action, if you do not really intend to, or are not legally able to do so.
Small Business Debt Collection Laws Forbidden Third-Party DisclosuresNever:
1. Give any credit-related information that is not 100% accurate.
2. Tell anyone other than the debtor that you are collecting a debt.
3. Telephone any number other than debtor's more than once.
Small Business Debt Collection Phone CallsNever:
* Call after 9 pm or before 8 am.
* Forget to give your name and your company's name.
* Call repeatedly or in a way intended to annoy.
* Make a collect call.
* Make any threats.
* Use profane or obscene language.
* Leave a message that reveals this is a debt collection.
Small Business Debt Collection MailingNever send:
* Postcards.
* Envelopes or mailings with any reference to debt collection on the exterior.
* Anything that looks like an official, legal, or government document, if it is not.
These simple small business debt collection laws guidelines should help stay with the collection laws.
-Steve Austin
About The Author
Steve Austin
Free debt collection laws information at http://www.debt-collection-laws.com/
cas@collectionagencyservices.net
The 10 worst mistakes you can make when selling your privately owned small business
Thinking about selling your business? You are not alone. CNN Money reports that 35 million baby boomers are expected to retire between 2000 and 2020. If you are approaching retirement or soon will be, chances are you’ve considered putting your business on the market for one of the following reasons:
* You feel burned out;
* Industry conditions have changed;
* You are facing health issues;
* Your business has matured and plateaued;
* Your business is doing well;
* It’s a good market for the sale of a business.
In the end, no matter what your scenario or reason for selling, your objective is to get the most money for your blood, sweat, and tears. Here are ten mistakes not to make when selling your privately owned small business:
1. Not Knowing Your Business’s True Market Value:Different buyers will have different perceptions of value and some will pay far more than others. Unless you know your business’s range of value you are handicapped in the process. Knowing value is always the best starting point when you plan to sell your business.
2. Having Customers, Employees and Others Know that you are Planning on Selling:Keeping the entire process completely confidential is essential, otherwise you create the risk of losing employees, customers, and vendors. This will negatively impact both value and marketability.
3. Stating an Asking Price:Putting a price on a business creates a ceiling. If you are able to find that “value added” buyer who will pay a premium for your business, a stated price may result in a lot of money left on the table.
4. Providing Seller Financing:There are a number of lenders who will finance buyers wishing to purchase privately owned businesses. Your objective should be to get “cashed out”. If you do provide any financing, it should be a small percentage of the sales price.
5. Allowing the Buyer to Control the Process:If you allow interested buyers to dictate “what” and “when”, you will find that you end up going through lots of processes (such as due diligence) numerous times rather than only once, which should be done solely with your prevailing buyer.
6. Not Having Multiple Buyers Involved in the Process:There is an old saying in the mergers and acquisitions industry: “one buyer is no buyer.” This simply means that with three or four buyers competing for your business you are more likely to end up with the best possible transaction regarding price, tax
structuring, getting cashed out, and having a low litigation risk profile.
7. Not Understanding Essential Tax Issues:After tax dollars in the sale of a corporation can vary between 45% and 85% of the sales price based solely upon tax structuring issues. This means that you need to understand the process before you start the process.
8. Neglecting Your Business While Trying to Sell the Business:Psychologically, once you decide to sell your business there is an inclination to slow down or spend time on the selling process to the detriment of the business. If you do this, earnings will suffer and it will lower your business’s value, negatively influencing marketability.
9. Handling the Process Without Professional Help:If you are struggling with the decision to hire a professional to help sell your business, consider these gruesome war stories about people who have traveled this path alone and ended up:
* Paying more in taxes than they might otherwise have had to;
* Sold far below their true range of value;
* Financed the buyers and ended up not getting paid;
* Spent time and money during the process and still did not get their businesses sold;
* Ended up with poor legal documentation resulting in legal problems. Typically, the sale of a privately owned business involves a large percentage of the seller’s net worth. Don’t begin your learning curve at ground zero.
10. Paying Front End Fees to Merger and Acquisition Firms or Brokers:If you elect to get professional assistance you are advised not to pay brokers and others front end fees other than the necessary fees to close the transaction. Many firms in recent years have collected substantial sums of money from clients without ever selling their business. Ultimately, how you sell your business is just as important as how you run it. Do your research and carefully consider engaging the services of an experienced, proven professional with a stellar reputation.
-Barry Evans
About The Author
Barry Evans writes about san diego merger and acquisition firm. Learn more at http://www.acquisitionservicesgroup.com.
Survival Tips for Small Businesses
Staying afloat and solvent while running a small business can be a tricky process. If you aren’t in a profitable niche market, chances are you are having to deal with a lot more competition than you are used to. As the economy flounders, it is getting harder for smaller businesses to compete with the corporate giants. However, there are ways to stay afloat and keep your competition in your rear view mirror. We’ll try to give you a couple tips to get you going.
Tip #1 – Never Stop AdvertisingAdvertising is the lifeblood of small businesses, especially small businesses trying to make it on the Internet. This is an ongoing process that will never end – until you close your store. You will need to continue to get the word out about your company and your products if you want to continue attracting new customers. The “build it and they will come” theory is not paying off for the majority of small businesses.
If you can’t afford high cost advertising, try exchanging links with other stores, or building a network of shops that act like a neighborhood, helping each other out. Small businesses need to stick together. You will be surprised at the response you get by offering a cross-link with another business. Chances are, they are as hungry for new customers as you are.
Tip #2 – Keep it FreshIf you went into the grocery store every day and saw the same pile of fruit, in the same spot, until it eventually started to mold, you would probably avoid looking at it. In fact, you might take great steps to avoid it or notice a new pile of fruit that you would rather see.
Your website is your company’s face. You need to keep it fresh and updated constantly. If your site hasn’t seen an update since 2002 it is time to inject some life and new content into it. Even if it is something as small as changing the layout of your content, or the overall look of your site, it will be greatly beneficial.
Internet shoppers tend to glaze over when they’re presented with the same old content over and over. Keep your website’s face changing constantly and your customers will want to keep coming back to see what is new.
Tip #3 – Branch OutIf you are sitting all alone in your office wondering why the orders have slowed down to a trickle, you may need to start branching out. If you product line isn’t selling, investigate new sales methods or even new products that will spark interest among consumers. Don’t sit on your sinking ship bemoaning your fate. You will have to take an active role in bailing your business out of trouble.
If you don’t want to sell new products, you can look at alternative methods of selling your existing line-up. Online auction sites are a great way for small businesses to reach new customers and it normally is very inexpensive.
Tip #4 – Reach out and Grab Your CustomersWe don’t mean this literally of course, but if your site is lacking a good click through ratio, and the most commonly viewed page is your home page, you may benefit from adding streamed content to your site. Try to find streamed news content that is pertinent to your products. Add product information or articles that will spark interest and keep customers from clicking away from your site. Try to find methods of attracting clients and getting them to stay by offering an interactive element to your website. For example, you can add an online forum for discussing your product, or an online chat where they can ask you questions.
While we can’t promise that it will be easy to stay solvent as a small business, these tips should help you along your way to running a profitable and successful business. Whether you are strictly an online retailer or a hybrid, these tips will help you keep your customers coming back for more and getting new interest in your company.
-Julie Martin
About The Author
Julie Martin is the publisher of “The Iscaweb eZine” a weekly eZine dedicated to increasing your online profits, no matter what you are selling. Julie also uses the “Plug-In-Profit” system to GREAT effect!
To subscribe to the eZine, or to learn more about the Plug-In-Profit system visit: http://www.iscaweb.com
Marketing a New or Small Business on a Budget
There are almost as many opinions and views on marketing as there are companies to market. The big names and multinationals will have an extraordinary amount of funding set aside in which to convey their marketing message to the masses.
The process will involve an inordinate amount of people, multiple marketing agencies, countless ‘creativity’ meetings and thousands of work-hours. From television adverts to full pages in the newspapers and glossy magazines, brand names and logos jump out at us and are instantly recognisable - such is the power of advertising on an extremely large budget.
Easily missed then in this marketing free-for-all are the smaller or new businesses. After the usually costly process of setting up a business with its requisite equipment, possibly an office or other type of premises, there is usually little or no funds available for marketing or advertising.
From the first trading day of a new business enterprise, the going is tough. It is small wonder therefore that most new businesses do little or nothing about marketing because of what they see as prohibitive costs.
There are instances of course where new businesses have originated from someone’s hobby or part-time occupation; in these cases, the market is usually already there and forming a company was the next logical step, immediate marketing was obviously not required to generate the first customer.
There are many advertising agencies that say there is no need for small businesses to spend a fortune on marketing. This is totally true, but what money a small business does have to advertise should be spent wisely and not just thrown at an agency that might end up failing to deliver. There are far cheaper and more effective ways to get a business on the map.
A website is essential to any business these days and will certainly be an asset. However, your site will be one amongst many millions of others and will not be of immediate use due to the nature of search engines and the way the Internet works in general; therefore you will need to look to other methods.
One of the most important things to bear in mind is not to run before you can walk.
Start small, start local. Unless you already have contracts from further afield, there is no point in casting nationwide for business when a vast amount is already likely to be on your doorstep.
Depending on what type of business you run, leaflets and flyers to other businesses or homes are a good way to get yourself known.
Always carry a business card with you they are invaluable, you never know when you are going to meet someone who wants printed contact details – hey presto! - Instant advertising.
If you have access to a computer, join an online business forum. They are an excellent source of information help and advice from people in the same situation as you. Even those in the same line of business as yourself will usually be happy to offer their help – don’t be afraid to take it, you can always return the favour.
Contact your local Chamber of Commerce for practical sound advice on any aspect of business. They are there to help and are extremely knowledgeable and friendly people.
Business breakfast clubs are normally held once a week in most towns and cities and are another rich source of information and a great place to make contacts, again, don’t forget to take your business cards with you.
The methods I have mentioned are by no means the only ways to market on a budget and have no doubt been written about before, and although they take lots of effort and are very time-consuming, they do produce results.
New and small business owners can often be the most innovative and creative marketers there are. They don’t have the huge budgets of the corporate giants; they don’t have large teams of creative designers, advertising executives, brainstorming committees, PR agencies or even a tea person! However, enterprising cash-strapped individuals are constantly striving to invent novel and cheaper methods of marketing their businesses, often with varying degrees of success. What must be reiterated though is that marketing and advertising need not cost a fortune, but can still be very effective depending on how you approach it.
This article is the property of the author and may only be reproduced in its original form.
-John Sheridan
About The Author
John Sheridan is a professional proofreader of hard copy items and website copy. He also writes web copy and occasionally accepts small copy-editing assignments. He can be contacted at: john@textcorrect.co.uk
Website: www.textcorrect.co.uk
Small Business Loans Can Help You Write Your Success Story
Scene one: you are sitting on your office desk surrounded with files and work overload, you are thoroughly frustrated. You work hard and get paid. But somewhere something is lacking.
Scene two: you work for yourself; you do what you want to do. You work hard and you are satisfied. You go home a better person each day cause you work for yourself. And you definitely earn more.
You don’t even have to look at the results; votes for Scene two are definitely more. You want a life like that. But every business entails capital. Small business loans can accrue the capital you need to start a small business. With so many online sources for small business loans, you don’t need to rely on family or relatives for capital.
Homework! Yes, it is not meant for school kids only. You too have to do it, to find the right resource of your small business loans. There are a few points, the loans lender will be looking at, when he is contemplating providing you small business loans. A lender will be paying attention on your education, experience, business plan and its feasibility. Other things that are crucial are repaying ability, credit history, equity, presence of collateral.
The first things will be your ability to repay. Every loan is meant to be repaid. Loan lender wants his money back. They will look for a business that has existed for some years now. If you are starting a new business, prepare an application that will prove to them that you will repay the loan. If your business is low risk proposal, you are getting a small business loans.
Presence of collateral would provide a positive boost to your small business loan application. The financial institution would be looking for an alternative source to payback the loan. Without collateral, you would need a cosigner who can pledge collateral. Collateral can be any business or personal assets that can be sold to pay for the small business loan. The market value of collateral is not taken into account but the value which results after negating the valued lost when the collateral is liquidated.
Equity is also significant. The equity will be in the form of money you invest in your business. The loan lender will be very pleased to know, if you have invested your money in the business. If there is enough equity in your business to payback the loan, the small business loan will be yours.
The next crucial thing will be called a credit report. If your credit report is good, your small business loan application will be reaching the top of the application pile. If you have no idea what your history reveal for you – get a copy of credit report. Make sure the details given there are correct. In case there is an error, get it corrected before you apply for small business loans. Pay all the pending debts and get going.
The question that you will be facing with small business loans is what you are going to do with the money. Give concrete answers. Convince the lender that you will repay the small business loan with long term profitability that your plan ensures. Your confidence will be a key to unlocking small business loans.
Small business loans are available in three forms -
Short term loans will solve funds problem for immediate business starting. Their term is usually one year or less.
Intermediate loans are meant for large initial expenses with loan term between one to three years
Long term loans supply for initial costs of a start up business and extends from three to seven years.
Documentation! Yes, just get ready with your file of documents and make sure it has – proof of ownership, letters of reference, contracts, tax returns, financial statements, credit references, Incorporation or LLC organizational documents. The loan lender might ask for any other documentation for Small business loans.
Read the small business loan agreement carefully and have your lawyer review it. Some terms can be negotiated with the loan lender. If your circumstances are favourble, you can even manage to waive some terms. Obtain terms which you are comfortable especially with regard to repayment process and interest rates.
You can have a great idea, great people to work with, a well written business plan – everything, almost everything. All you need is a small business loan to make it a success. So, how do we begin writing the success story? With writing small business loans application.
-Amanda Thompson
About The Author
Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for chanceforloans .To find a Personal loans,bad credit loans,Debt consolidation,home equity loans at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk
How to Grow Your Small Business
Almost every business owner wants to see his/her business grow. If you are thinking about the future of your business you probably have more questions than answers. But making sure you ask the right questions in every area of your business should lead you towards solutions that can move your business forward positively.
These are all serious questions, which need addressing on a regular basis if your business is to continue on a pathway to success.
Once you have survived the start-up phase of your business, you may be wondering how to take the next step and grow your business beyond its current status.
Choosing the right way to grow and the right strategy to grow through will depend on the type of business you own, your available resources, and how much money, time and sweat equity you're willing to invest all over again. If you're ready to grow, we're ready to help.
Step 1Decide if you really want to be bigger
Making a decision on growth is a huge decision. So, coming to a conclusion should be based on factors such as what you want the growth to accomplish, whether you will still have the control you want, if the growth will still allow you to deliver the service and quality that you built your business on? What are your goals? For me, at least at this stage, my goals revolve around making a decent income, to be in a reasonable semblance of control of my own destiny, and to work from home to at least be near my family as I pull long hours.
Talk to your peers: Talking with folks in the same position as you, or folks that have been in the same position, is a great way to help you in the decision of growing or not growing. Often these people have been through exactly what you are going through, and as the saying goes, it's always better to learn from someone else's mistakes! Ask questions about why they chose to expand, why they went the way they did, and most of all, what they wouldn't do again.
Look at the positives and the negatives: While it is easy to say that if you expand, you'll make more money, have more power, etc., don't forget the negatives. With growth comes increased costs, more responsibility, more risk, and, like they aren't already long, longer hours. Hiring more people doesn't necessarily mean you'll have more time—in fact, the opposite is often true.
Could your growth hurt your business? Now there's a thought! And that's what weighs heavily on me. Could my growth actually hurt my business? As a service-based business, virtually all of my work has come from word of mouth … folks that are happy with the work I have done and spread it around. So, if they hire my company to do work for them, at this stage, they are hiring me. Will bringing on a new hire and growing hurt that? It may.
Step 2Hiring new employees - and good ones at that
Well, you've made the decision. You've weighed the options and you are going to grow.
The first thing you have to deal with is getting help and hiring the right people. Hiring employees is a huge step that can radically change how you work and how you feel about your business—both in positive and negative ways. Friends and Family: As the saying goes … "Better the devil you know." Your family knows you the best. You know them. But can you work with them? What sort of working relationship will there be? Can you be their boss and a sibling/spouse/best friend at the same time, or can you separate it? One advantage to family is that they may be a bit more understanding when it comes to issues such as late pay, family situations, etc. Of course, this could also be a disadvantage (you may also be expected to "excuse" family emergencies). Also, it can be difficult to speak to "employees" as "employees" when they are also loved ones, and this can cause problems—both professionally and personally. You must set clear ground rules in advance and remind people that work is work and personal is personal. This is much easier said than done!
Full-time or part-time? Just what do you need to grow? Do you need a full-time sales person or will a part-timer do nicely? Figuring out where you need the most help is very important. The other thing to think about, aside from the cost of full-time vs. part-time (benefits, taxes, etc.) is if you want/need these people as employees or contractors.
Employee or contractor? The big difference between the two really gets down to things such as taxation and benefits and payroll, etc. With an employee, you have to factor all of those things into the mix. But, if your job is retail or requires that someone be at your location of business, then you likely don't have much of a choice.
Local or remote? One distinct advantage for a business such as mine, or one that uses technology a lot, is that location isn't as important as it was just a few years ago. I have worked with subcontractors on projects that were not only out of my time zone, but in other countries as well. I am working on one project for which the client is in California, US, I am in London and the person running the backbend systems is in France … cool! This arrangement is also good as the remote person most likely has his or her own equipment (a great expense savings), so you don't need to open an office to "store" the person (see, more money saved), and you can still have your own mental space to work in. It also allows you to find the best people—not just the best people in your area.
Step 3Overhead and additional costs
With growth comes additional costs and overhead. Being one who is rather frugal with my expenses, I try to look at as many options as possible. Here are a few to add to the mix.
Office space. First off, if you don't need the space, for example, if your small business is purely on-line or you don't ever have walk-in customers, why rent or lease space? Do you have space in your home to set aside as a location to run your business? I'm talking about a separate space. One away from your family and one that you can write off on your taxes? So you need some space—what about a business center/business incubation center? These are popping up everywhere. Basically, you rent out a small office within the center, but with that comes a front desk person to answer and route calls, access to equipment that you don't have to buy (fax, copier, etc.), a "prestigious" address, and access to things such as conference rooms that you may not be able to afford otherwise. This is a great way to start! One other option could be to share office space with another company. This is a great way to offset costs, but if you go that route, make sure you set some ground rules, in writing, first. It's always better to cover your assets!
Equipment: Another killer of expansion is equipment costs. Rule #1 seems to be that leasing is the best way to go. It is better for your cash flow, you can write virtually the entire lease amount off on your taxes (depends on where you live, of course), and, when it comes to computer equipment and given the nature of the advancements in technology, you won't be stuck with a useless techno-dinosaur. Time: Yes, that's right, time. Remember that it will take a fair bit of time to get your growth level into a mode you are comfortable with. It will take time to hire and train the right person, to set up your bigger office and to get your equipment together. This is an important factor.
Step 4Raising Capital
To grow beyond the start-up and initial growth phases, you will need capital to inject into your business. Now this, unfortunately, is easier said than done. Banks can be leery of entrepreneurial ventures and venture capital is not easy to obtain. But, although obtaining borrowed capital is difficult, it is by no means impossible.
Here are the main sources of funds:
Banks
Cultivate a good relationship with your banker. The more he or she understands your business and knows you, the more likely it is that your application will be approved. And this means more than just fronting up when you need money. Keep your banker informed of all significant developments in your business and routinely provide copies of your annual business plans.
Be prepared to demonstrate that your business is capable of generating cash flow and think about what collateral you have available to put up if necessary.
Venture Capital
In addition to a solid business plan and track record, venture capital providers want to see that you understand your customers and how your business is a good fit with their needs. So arm yourself with competitive intelligence and satisfied customers as references. Also, be prepared to show you have access to experienced management staff. These individuals need not be on your payroll but you should expect to show that you have a depth of experience and talent available to you at least in an advisory capacity.
Revenue Stream
Instead of selling equity to raise capital, consider selling part of the revenue of the business. In other words, investors advance loan capital and get repaid by way of a percentage of the sales of the business. This preserves your equity in the business and is attractive to investors because they receive an immediate cash return.
This method has the considerable advantage of avoiding securities laws (it is a loan rather than a sale of securities) but it is only viable for businesses with high margins and strong sales.
Direct Public Offering
If your business has a strong relationship with its constituents (employees, customers, vendors and community), consider selling stock via a direct public offering.
Here are 10 popular growth strategies that can be used with great effect.
Open another location.
Offer your business as a franchise or business opportunity.
License your product.
Form an alliance.
Diversify.
* Sell complementary products or services
* Teach adult education or other types of classes
* Import or export yours or others' products
* Become a paid speaker or columnist
Target other markets.
Win a government contract.
Merge with or acquire another business.
Expand globally
Expand to the Internet.
Which ever growth strategy you choose, make sure you are ready, plan well and assess your options often.
-Ben Botes
About The Author
Learn more at http://www.my1stbusiness.com/sales-letter/landing2.htm
Ben Botes MSc. MBA, is an Entrepreneur, Speaker, Writer, Coach and academic. He is the founder of My1stBusiness.com, South African Business Hubs
Join the My1stbusiness.com Reseller Program and earn 40% referral commission http://www.my1stbusiness.com/affiliate
Read Ben's Blog at http://www.my1stbusiness.com/weblog
