Plan the Vital Q4
Tuesday, October 17, 2006
Very interesting article run by MSNBC: The fourth quarter is arguably the most important time of the year for a small business owners — it’s when they should be doing year-end tax planning and looking ahead to 2007. Capital spending, hiring plans and employee compensation
should all be items on the agenda.
There can be a heavy price, and not just in taxes, to be paid early in the new year, if you haven’t looked at your books and thought about how your company is likely to fare for the rest of 2006 and into early next year.
Now is the time to be thinking about capital spending. Many owners are anxious to take advantage of what’s known as the Section 179 deduction, which allows a small business to deduct up front rather than depreciate over time the cost of certain kinds of equipment bought and put into service during the tax year.
Labels: capital, capital spending, deduction, planning, price, q4, tax
Tips for a Successfull Start-Up
Friday, October 13, 2006
Here are eight guidelines you'll want to follow to help you make sure the business you're starting or buying has a fighting chance to survive -- for both the short and long term:1. Find something you'll enjoy daily. It's important that you enjoy both what your company does and what running the company entails.
2. Don't start if you can't ensure a solid profit margin. Make sure your business will have a solid profit margin, which is vital to long-term success.
3. If it's your first business, think about buying an existing business or a franchise. Your first business will always be the toughest because you have so much to learn. An existing business or franchise provides a shortcut through much of that process.
4. Buy into a growing industry and market. Remember, you're building your business for the long term, so think about how your company will evolve over a 10-year period. You want to have a good sense that there'll still be a demand for your product or service 10 years out.
5. Marketing and selling to new customers is expensive. Repeat business is where the profit is in just about every venture. Make sure you have it.
6. Keep recurring costs to a minimum. There'll be times when you're first starting out that you'll have slow cashflow. Don't cripple yourself by committing to expenses years in advance.
7. Get good advice. Work with the best and learn from these mentors. Don't just get them to do a job for you -- learn why they do what they do so you gain knowledge in their field.
8. Be prepared to work really hard for the first year or two. Strong sales, effective marketing and nonstop networking all are vital to building a solid cashflow and profit. At times, you'll probably feel like it's too hard and you'll want to give up, but if you stick with it, things will get easier.
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10 Mistakes Entrepreneurs Should Avoid
Thursday, October 12, 2006
Continuing the lists of mistakes that should be avoided by any entrepreneur, Paul Lemberg of BusinessCoach put up a list of another 10 entrepreneurial mistakes:1. Big Customer Syndrome
If more than 50 percent of your revenues come from any one customer you may be headed for a meltdown. Always look for new business. And always seek to diversify your revenue sources.
2. Creating products in a vacuum.
Do not be a product searching for a market. Do the "market research" up front. Test the idea. Talk to potential customers, at least a dozen of them. Find out if anyone wants to buy it. Do this before anything else.
3. Equal partnerships
Suppose you and your new partner split the company 50/50. That seems fine and fair right now, but as your personal and professional interests diverge, it is a sure recipe for disaster. Either party's veto power can stall the growth and development of your company. 51/49 works much better than 50/50.
4. Low prices
Set your prices as high as your market will bear. Even if you can sell more units and generate greater dollar volume at the lower price (which is not always the case) you may not be better off. Make sure you do all the math before you decide on a low price strategy. Figure all your incremental costs. Figure in the extra stress as well.
5. Not enough capital
Be conservative in all your projections. Make sure you have at least as much capital as you need to make it through the sales cycle, or until the next planned round of funding. Or lower your burn rate so that you do.
6. Out of Focus
Concentrating your attention in a limited area leads to better-than-average results, almost always surpassing the profits generated from diversification. Al Reis, of Positioning fame, wrote a book that covers just this subject. It's called Focus.
7. First class and infrastructure crazy
The best entrepreneurs know how to stretch their cash and use it for key business-building processes like product development, sales and marketing. Spend all the money really necessary to achieve your objectives.
8. Perfection-itis
Focus on creating a market-beating product within the allotted time. Set a deadline and build a product development plan to match. Know when you have to stop development to make a delivery date. When your time's up, it's up. Release your product.
9. No clear return on investment
Do the analysis. Talk to your customers, create case studies. Come up with ways to quantify the benefits. If you can't justify the purchase, don't expect your customer will. If you can demonstrate the great return on investment your product provides, sales are a slam dunk.
10. Not admitting your mistakes.
OK, everybody makes mistakes. Just try to catch them quickly, before they kill your company. To avoid some mistakes in the future, it sometimes helps to ask good questions ahead of time. Click the link if you would like a copy of my fractal strategic planning questionnaire.
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8 Business Plan Mistakes to Avoid
While including the necessary items in a business plan is important, you also want to make sure you don't commit any of the following common business plan mistakes:Putting it off. Too many businesses make business plans only when they have no choice in the matter. Unless the bank or the investors want a plan, there is no plan.
Cash flow casualness. Most people think in terms of profits instead of cash. Understanding cash flow is critical. If you have only one table in your business plan, make it the cash flow table.
Idea inflation. Don't overestimate the importance of the idea.Plans don't sell new business ideas to investors. People do. Investors invest in people, not ideas.
Fear and dread. Doing a business plan isn't as hard as you might think. You don't have to write a doctoral thesis or a novel.
Spongy, vague goals. Leave out the vague and the meaningless babble of business phrases (such as "being the best") because they are simply hype. Remember that the objective of a plan is its results, and for results, you need tracking and follow up.
One size fits all. Tailor your plan to its real business purpose. Business plans can be different things: they are often just sales documents to sell an idea for a new business.
Diluted priorities. nRemember, strategy is focus. A priority list with 3-4 items is focus. A priority list with 20 items is certainly not strategic, and rarely if ever effective.
Hockey-stick shaped growth projections. Sales grow slowly at first, but then shoot up boldly with huge growth rates, as soon as 'something' happens. Have projections that are conservative so you can defend them.
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Labels: business plan, goals, idea, mistakes, planning, sales
10 Steps Every Business Owner Must Follow
Tuesday, October 10, 2006
Stephen James considers that if you take action in each of these 10 areas, you will not only be 2 steps in front of your competition, but you may very well be within touching distance of living your dream.1. Business Plan. A business plan is critical to achieving consistent growth in any business. The benefits of a business plan are realised immediately through the process of just thinking clearly about your business for an extended period of time, and through illuminating the areas of your business that need fixing.
2. Customer Database. At the end of the day, your customers are the most valuable asset you have in your business. You should be taking every opportunity to collect the names and contact details of your customers and communicating with them on a regular basis.
3. Systems. Systems are essential for ensuring that you provide a consistent level of service to your customers and so that you understand the financial performance of your business.
4. Staff Incentives. To attract great people, progressive companies are keenly aware that they need to foster personal responsibility and provide direct reward for measurable results.
5. Staff meetings. Meetings are an opportunity to inspire your people and thereby your business. They also give your people a sense of belonging through the process of sharing information.
6. Marketing. Marketing is the most important of all success strategies in your business, because if you can't find a buyer for your product or service, nothing else you do will matter!
7. Branding. Branding is about creating and communicating a set of values to the consumer of your product or service.
8. Business Image. First impressions count for a lot. Addressing your business image is all about paying attention to the little things that will exceed your customers expectations.
9. Guarantee. How does a customer truly believe they are going to receive value from doing business with you? They will only know this if you are prepared to take more risk in the transaction than they are…and this promise is delivered through your guarantee.
10. Customer care. Every business should have a follow up system that extends sincere thanks to every new customer and for their ongoing patronage.
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Labels: branding, business plan, clients, customers, marketing, staff, strategy
3 Steps to Take Before You Setup Your Small Business Marketing Strategy
Along with your business plan, your small business marketing plan is one of the most important long-term plans you'll make for your small business.
Brandt Stoht, from the smallbusinessmktng.com has three steps to setup your small business marketing strategy:
1. Know your market
Ask yourself: Who are my customers? Once you've identified who they are, ask yourself: What are my customers' problems? What are their dreams and aspirations? The surest way to answer those 3questions, of course, is to ask your customers themselves.
2. Know yourself
Ask yourself: What does my business do? How is my business different than my competitors? How does my business help solve my customers' problems or help them achieve their dreams? Brandt Stohr advises answering these questions will help you to define your unique selling proposition those aspects that set you apart from your competitors.
3. Analyze your competitors' small business marketing strategies
First, look at your competitors' small business marketing strategies. Are there obvious gaps that you could fill (and thereby stand out among the competition)? For example, if you see that none of your competitors have websites, you could stand out with a small business marketing strategy online.
Brandt Stoht, from the smallbusinessmktng.com has three steps to setup your small business marketing strategy:
1. Know your market
Ask yourself: Who are my customers? Once you've identified who they are, ask yourself: What are my customers' problems? What are their dreams and aspirations? The surest way to answer those 3questions, of course, is to ask your customers themselves.
2. Know yourself
Ask yourself: What does my business do? How is my business different than my competitors? How does my business help solve my customers' problems or help them achieve their dreams? Brandt Stohr advises answering these questions will help you to define your unique selling proposition those aspects that set you apart from your competitors.
3. Analyze your competitors' small business marketing strategies
First, look at your competitors' small business marketing strategies. Are there obvious gaps that you could fill (and thereby stand out among the competition)? For example, if you see that none of your competitors have websites, you could stand out with a small business marketing strategy online.
Labels: marketing, marketing strategy, small business, unique selling proposition
Top Home-Based Business Trends in 2007
Monday, October 09, 2006
Homestead Technologies commissioned the findings researched by Darrell Zahorsky, small business expert for About.com and author of upcoming book, "1001 Small Innovations," to encourage the growing numbers of workers seeking greater work-life balance and wealth-building opportunities in recognition of "Home-Based Business Week"
Here is the list of the top ten home based businesses for 2007:
Scrap Booking: In today's easy to save and store digital age, opportunities abound for the home-based scrapbook artist, workshop teacher, or a direct sales rep.
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Here is the list of the top ten home based businesses for 2007:
- E-Learning: With advances in new web application tools such as podcasts and video blogs, development costs will decrease.
- E-Bay Aftermarket: Helping companies conduct market research, pricing strategies, shipping, and competitive analysis is a great niche business.
- Children Arts Education: There is a major market for teachers of right-brained education who are thought to help foster the development of future innovators.
- Garage Organizers: Just as organizing closets was the next big thing in the 80's, the messy garage is the final space to clean up.
- Background Checks: Small businesses with limited resources are turning to background check companies to handle investigation and due diligence.
- Pet Sitting: An ideal home-based business where you get paid to walk and enjoy the companionship of pets.
- Specialized Coaching: The coaching market has boomed in the recent years including specialized areas such as life, spiritual, corporate, relationship and business.
- Home-based Debt Collection: Debt has become a way of life for many Americans. Operating a low overhead home-based collection service can serve the niche sections of this market.
- Specialized Outsourcing: The small business market has limited resources and a focus on core competencies. Specialized outsourcing from home to small business will have a solid position market position for years to come.
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Labels: home business, small business, trends
4 Marketing Attitudes to Avoid
C.J. Hayden, Contributing Editor for RainToday.com and author of Get Clients Now!: A 28-day Marketing Program for Professionals, Consultants, And Coaches has come up with a list of 3 common marketing attitudes to avoid:
Read full article here. Via
1. "I shouldn't have to market."
If you perceive marketing as a dirty business, try thinking of it as the diapers you need to change in order to have the joys of being a parent. But instead of focusing on what you dislike, tie your marketing chores to your vision of a successful business.2. "I don't have time for marketing."
Whether your responsibilities preventing you from marketing are within the business or outside it, you need to allocate a minimum amount of time each week, no matter what. Even two hours per week can make a significant difference, if you consistently use that time for marketing.3. "I don't want to bug people."
Consistent and persistent follow-up isn't bugging people – it's the mark of a true professional. You want to convince your prospects that you are hard-working and reliable, and that you truly care about helping them solve their problems. If they hear from you more than once that you would really like to be of service to them and are available to help, you will build their trust, not their annoyance.4. "My marketing isn't working."
So how many prospects do you need to make contact with for just one to be interested in a presentation? Ten, maybe? That means you need to make contact with 60 prospects each month in order to land your two new clients. If you do this math for yourself, you may quickly find that the only thing wrong with your marketing is that there hasn't been enough of itRead full article here. Via
Labels: attitude, marketing, marketing strategy
5 Vital Things You Need To Know About Packaging Your Products
Friday, October 06, 2006
Soapwire:When you are getting started it's so hard to understand the integral role packaging has to play in marketing and selling your product. Put simply, it's one of the most important product decisions you will have to make. There is a universe of packaging suppliers, materials and even regulations. Not to be overwhelmed, it is easy to navigate if you take it one step at a time. It is a process just like any other component in product development. They key is to know which packaging factors will influence your products success -- or failure.
Here are 5 vital things you need to know as you start on your journey that packages your product to sell.
- You can't have a product without a package
- The package could cost more than what is inside.
- Your package has to sell the product not just protect it.
- Most packaging materials suppliers require large quantity orders.
- Packaging trends and innovations can influence whether your product will ever get onto the stores shelf.
4 Expert Tips for a Succesfull Small Business Marketing Strategy
Thursday, October 05, 2006
Developing that unique selling proposition should be your first step in crafting a successful small business marketing strategy. To make sure that your small business marketing is all that it can be, follow these four expert tips:1. Focus on the benefits to the customer
Your prospective customers don’t really care what great features you’re offering. They care about how your product/service will help them – how it will solve their problems or help them achieve their dreams. So instead of listing the 100 fabulous features that your product/service has that the other guy doesn’t, list the 10 ways that your product/service will help your prospective customers, and you’ll be on your way to successful small business marketing.2. Consider your product/service from the customer’s point of view
Even if you can’t hire an expensive marketing firm to set up focus groups for you, you can create a small business marketing solution. Assemble a group of friends and family who are similar to your prospective customers and ask them what their needs and wants are. Then incorporate their responses into your marketing materials. Voila – you’re now speaking directly to the customer, from his or her point of view!3. Prove it!
One of the easiest, least expensive small business marketing strategies for backing up your claims with prospective customers is to include testimonials from satisfied current clients in your small business marketing materials.4. Project an image of confidence and authority
Whether you’re selling widgets or consulting services, small business marketing is really about selling yourself – your expertise, your integrity, and your reputation. Even if you’re just starting out in business, you are an expert in your own right. So act like one! If you see yourself as a confident, authoritative business person, your customers will, too.Labels: focus, marketing, small business, tips, unique selling proposition, usp
BlackBerry Server for Small Businesses
For BlackBerry-obsessed business owners, the cost of trading e-mails on the go is about to get a lot cheaper.In hopes of expanding its customer base beyond the corporate set, Research in Motion recently released the BlackBerry Enterprise Server Express, designed specifically for small and midsize businesses.
The Server Express sells for $1,099 and includes five licenses -- close to $2,000 less than the nearest Enterprise Solution package.
The Server Express software is available by download for new customers, as well as current BlackBerry customers who signed on within the past 30 days. Like BlackBerry’s larger Enterprise Solution, the new server can be integrated with Microsoft Exchange, Lotus, Domino, or Novell GroupWise.
“Small-business people were looking for a solution that had the security and liability of BlackBerry at an affordable price,” said David Wilmering, RIM’s director of product marketing.
Labels: blackberry, email, server express
8 Reasons to Consider Blogging A Marketing Weapon
7CMarketing on Blogging as a marketing tool for small businesses:Business blogging provides a way for companies and readers to meet on common ground and discuss ideas, products and services in the hopes of building an audience that can become customers. A business blog provides a cost-effective alternative to having a website. For small and medium sized business entrepreneurs without the time and the means to set up a website, business blogging offers an inexpensive tool to herald the company's presence on the powerful Internet.And more:
- Business blogs provide SMBs with an avenue to share their expertise and knowledge with a bigger audience.
- An effective business blog can help give a human face to a business.
- A business blog if used productively can improve customer service
- A business blog keeps an archive of older posts organized by date and categorized by topic.
- A business blog can increase the chances of prospective clients to visit a company's website.
- Regularly posting valuable content on a business blog builds company credibility and creates sound business reputation.
- A business blog can be an avenue to introduce company products or services
- However, a business blog is not urgent but important for small and medium sized businesses. A business blog alone is not enough to market a company product or service.
Labels: blogging, marketing, small business, trends
Top 10 Myths of a Geek Start-up
Ron has put up a top ten list of myths and classic mistakes that geeks make when trying to raise money for a new business. Even if the list is addressing mainly the start-ups in the IT field, most of the issues presented are addressing any kind of small business start-up and it makes an interesting reading:
This is one I really like:
This is one I really like:
And here is the list of them all:Having no competition is a good thing.
Reality: If you have no competition the most likely reason for that is that there's no money to be made. There are six billion people on this planet, and it's very unlikely that every last of them will have left a lucrative market niche completely unexploited
- A brilliant idea will make you rich
- If you build it they will come
- Someone will steal your idea if you don't protect it.
- What you think matters
- Financial models are bogus
- What you know matters more than who you know.
- A Ph.D. means something
- I need $5 million to start my business
- The idea is the most important part of my business plan
- Having no competition is a good thing
Getting Experience, Confidence and Clients as Start-Up
Wednesday, October 04, 2006
Seeds of Growth blog on how to get experience and credibility when you are just starting your business:
For just about anyone these days (well, anyone with the something meaty to share and who likes to write), I would recommend starting a blog on your topic, since it is a great way to showcase your expertise, build community, test ideas and develop a friendly relationship with potential clients.
Gaining Experience
If you are brand new in your field, you might want to "test drive" your service as a volunteer. Choose an individual or organization that would be an excellent case study and that would provide clear "before and after" results. Gain agreement from your client that if she is satisfied with the results, you may use her as a reference for future clients and would use her project as a case study for your marketing.Gaining Confidence
Find yourself a mentor. There is nothing like hearing "stories from the trenches" from someone who used to be in your position and now has a thriving practice. You can get information, resources and confidence-building from the right person, or group of people. You may also join a professional organization or community. They are usually very open and supportive people and I am sure would share tips and tricks with you, as well as give you encouragement to make the leap.Getting Clients
Obviously, there is an art and a science to small business marketing. If you are concerned with just getting things going and taking on a few clients, start with defining your niche. That is the specific segment of people that you will target for your marketing efforts.For just about anyone these days (well, anyone with the something meaty to share and who likes to write), I would recommend starting a blog on your topic, since it is a great way to showcase your expertise, build community, test ideas and develop a friendly relationship with potential clients.
Labels: clients, customers, experience, niche
