small-biz Xpress blog

Golden rules when dealing with the media

2007-02-20T11:34:00.003-05:00

Once you start to deal with the media, you need to be aware of a few golden rules:

Everything you say to a journalist is a matter of public record and can be referenced as part of a story unless you specifically ask to speak off the record and get the journalist to agree
Never ask to see the story before it goes to print – the journalist may in some cases allow this, but they are not required to
Be aware that your story may not get published in the next issue, or even at all, if a more pressing story comes in and the editor changes the layout, the journalist is under no obligation to print
Deadline is king – ALWAYS ask a journalist when their deadline is (there is always a deadline) and make sure you get them what they need within that timescale

From the excellent DIY PR Tips - How to get your company in the news

ATT Small Business Resources Portal

2007-02-19T09:07:00.002-05:00

As part of its recognition of and commitment to supporting the growth and success of its small business customers, ATT Inc. announced the introduction of a variety of resources geared to small business owners, including free advice, online courses and special offers that can all be accessed through a new Web portal at www.att.com/OnwardSmallBiz.

ATT is promoting the availability of its new online resource center for small businesses as part of a new "Onward Business"-themed integrated advertising campaign that will run in USA Today, The Wall Street Journal and select magazines which began this month, coupled with online, print and radio advertising in local markets throughout the year.

The new small business portal gives visitors the option to select topics of interest for a more personalized online experience. Content features and links on the new ATT Onward Small Biz portal include:

A daily feed of small business news, including streaming video segments from SBTV.com — Small Business Television.
Free instructional Web-based seminars and training courses hosted by experts.
Tips on starting, managing and relocating a small business from a variety of experts and sources.
Money-saving promotional offers from leading brands serving small business needs
The ability to submit questions and to receive one-on-one advice from SCORE — Counselors to America’s Small Business.
Information on ATT products and services, money-saving bundles and special offers for small business are also available on the portal.
Easy access to ATT’s online support, e-bill and account management services.

Plan the Vital Q4

2006-10-17T03:38:00.000-04:00

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.

Tips for a Successfull Start-Up

2006-10-13T08:58:00.000-04:00

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

2006-10-12T08:37:00.000-04:00

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

2006-10-12T02:30:00.000-04:00

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.

via. photo.

10 Steps Every Business Owner Must Follow

2006-10-10T14:38:00.000-04:00

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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3 Steps to Take Before You Setup Your Small Business Marketing Strategy

2006-10-10T11:37:00.000-04:00

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.

Top Home-Based Business Trends in 2007

2006-10-09T09:32:00.000-04:00

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:

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.
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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4 Marketing Attitudes to Avoid

2006-10-09T09:16:00.000-04:00

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:

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 it

Read full article here. Via

5 Vital Things You Need To Know About Packaging Your Products

2006-10-06T10:20:00.000-04:00

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

2006-10-05T08:55:00.000-04:00

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.

BlackBerry Server for Small Businesses

2006-10-05T07:04:00.000-04:00

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.

8 Reasons to Consider Blogging A Marketing Weapon

2006-10-05T05:59:00.000-04:00

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.

Top 10 Myths of a Geek Start-up

2006-10-05T04:13:00.000-04:00

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:

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

And here is the list of them all:

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

2006-10-04T10:26:00.000-04:00

Seeds of Growth blog on how to get experience and credibility when you are just starting your business:

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.

7 Reality Checks for Your Small Business

2006-07-20T07:59:00.000-04:00

American Chronicle is presenting 7 Reality Checks to help you reconcile your dreams with reality so that you can build your dream into a thriving business:

In spite of your best intentions you will make mistakes
Things go "wrong"
Not everyone wants or needs what you have.
Humbly welcome opportunities to profit.
Customers have bad days, too
Sometimes whole systems go wrong or you find out too late that a new project was not quite ready for prime time
Owning a business can be isolating

Small Business Branding

2006-07-20T07:23:00.000-04:00

LA Times:

Branding your firm is a crucial part of your overall marketing strategy. Establishing a brand involves defining your company, knowing exactly what niche you serve in your industry and convincing your potential customers that your product or service is the only solution to their problem.

The smaller the enterprise, the more important branding is because small firms tend to have fewer resources and lower marketing budgets.

If you have established a strong brand, you will not have to do as much marketing to have an effect on potential customers.

5 Elements of a Good Marketing Plan

2006-07-18T07:42:00.000-04:00

John Jantsch in Small Business Marketing Ain't For the Timid found 5 elements of a good marketing plan:

Strategy

Simplicity

Consistency

Multiple facets

Self-promotion

Tags: marketing plan

Small Business Global Trends

2006-07-12T09:55:00.000-04:00

Top Ten Trends according to McKinsey:

1. Centers of economic activity will shift profoundly, not just globally, but also regionally - Asia will overtake Europe economically, although the U.S. will have the largest economic growth for the next 20 years.

2. Public-sector activities will balloon, making productivity gains essential - Aging populations are creating demand for public services, which in turn will increase taxes.

3. The consumer landscape will change and expand significantly - Consumer spending power in emerging economies is growing. Here in the U.S., the Hispanic consumer is growing.

4. Technological connectivity will transform the way people live and interact - The article notes, “For perhaps the first time in history, geography is not the primary constraint on the limits of social and economic organization.”

5. The battlefield for talent will shift - A global labor market is opening up.

6. The role and behavior of big business will come under increasingly sharp scrutiny.

7. Demand for natural resources will grow, as will the strain on the environment.

8. New global industry structures are emerging - According to the article, “In many industries, a barbell-like structure is appearing, with a few giants on top, a narrow middle, and then a flourish of smaller, fast-moving players on the bottom. ”

9. Management will go from art to science. Gut instinct management is dead, the authors say. I say, “maybe.”

10. Ubiquitous access to information is changing the economics of knowledge - Think open-source knowledge creation.

Read the whole article at the McKinsey Quarterly (requires free registration)

9 Tips to Balance Your Home and Business Life under One Roof

2006-03-30T08:56:00.000-05:00

Since we checked to see if You Outgrown Your Home Office lets see some tips to balance your personal life and home base business under same roof:

1. Set goals.
2. Establish and honor your home office.
3. Make the most of your time.
4. Set office hours.
5. Stick to your guns.
6. Get away often.
7. Project a professional image.
8. Stay motivated.
9. Develop a strategy for fighting isolation.

Link
Tags:home business, balancing life, set+goals, organize

Three Myths of Management

2006-03-30T01:18:00.000-05:00

1. Casual benchmarking
There is nothing wrong with learning from others' experience-vicarious learning, as contrasted with direct experience, is an important way for both people and organizations to learn how to navigate a path through the world. After all, it is a lot cheaper and easier to learn from the mistakes, setbacks, and successes of others than to treat every management challenge as something no organization has ever faced before. So benchmarking-using other companies' performance and experience to set standards for your own company-makes a lot of sense. In the end, good or bad performance is defined and measured largely in relation to what others are doing.

The fundamental problem is that few companies, in their urge to copy ever ask the basic question of why something might enhance performance. Before you run off to benchmark mindlessly, spending effort and money that results in no payoff, or worse yet, in problems that you never had before, ask yourself:

Is the success you observe by the benchmarking target because of the practice you seek to emulate?

Why is a particular practice linked to performance improvement-what is the logic?

What are the downsides and disadvantages to implementing the practice, even if it is a good idea? Are there ways of mitigating these problems, perhaps ways your target uses that you aren't seeing?

2. Doing what (seems to have) worked in the past
There is nothing wrong with learning from experience and developing proficiency at certain strategies and tactics. The problems come when the new situation is different from the past and when what we "learned" was right in the past may have been wrong, or incomplete, in the first place.

As in benchmarking, asking some simple questions and acting on their answers can help avoid the bad results that come from mindlessly repeating the past:

Are you sure that the practice that you are about to repeat is associated with the past success? Be careful to not confuse success that has occurred in spite of some policy or action with success that has occurred because of that action.

Is the new situation-the business, the technology, the customers, the business model, the competitive environment-so similar to past situations that what worked in the past will work in the new setting?

Why do you think the past practice you intend to use again has been effective? If you cannot unpack the logic of why things have worked, it is unlikely you will be able to determine whether or not they will work this time.

3. Following deeply held yet unexamined ideologies
The third flawed and widespread basis for decisions often does the most damage because it is the most difficult to change. It happens when people are overly influenced by deeply held ideologies or beliefs—causing their organization to adopt some management practice not because it is based on sound logic or hard facts but because managers "believe" it works, or it matches their (sometimes flawed) assumptions about what propels people and organizations to be successful.
To avoid succumbing to using belief or ideology over evidence, ask yourself:

Is my preference for a particular management practice solely or mostly because it fits with my intuitions about people and organizations?

Am I requiring the same level of proof and the same amount of data regardless of whether or not the issue is one I believe in?

And, most important, are my colleagues and I allowing our beliefs to cloud our willingness to gather and consider data that may be pertinent to our choices?

For more on this check the book Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management or this post.

Tags: management, management myths, benchmarking, small business

Top 5 Financial Mistakes Small Businesses Make

2006-03-29T16:28:00.000-05:00

5. Failure to use your time wisely
80% of your top results come from 20% of your efforts/customers/actions.
4. Failure to keep overhead low
There are three ways to make more money in your business: Sell more, Raise your prices, Reduce your overhead. Businesses that underperform from a financial perspective often have allowed success to creep in and increase overhead;
3. Not dancing with the one that brought ya
You got to where you are in business by having a few or many customers who believed in you and liked what you do. But if you don't continue to nurture your best customers, you run the risk of failure.
2. Not charging enough.
Far too many small-business owners, especially owners of service businesses, set their prices some time in the distant past and then failed to raise them as necessary.
1. Not earmarking enough money to marketing and advertising
The only way new customers will hear about your business, by and large, is through marketing and advertising.

Link

Tags: financial mistakes, small business, 80 20 rule, overhead, marketing, advertising

Have You Outgrown Your Home Office?

2006-03-29T08:34:00.000-05:00

1. Can you walk to your desk without tripping over something?
2. Are you hemmed in by filing cabinets and shelving units?
3. Have you taken over your children’s closets?
4. Does the living room look like an extension of your office?
5. Do you have to move a pile of papers off of your printer to use it?
6. When was the last time you saw the surface of your desk?
7. Do you have to move boxes off of chairs when company comes over?
8. Does your entire house look like an office building?
9. Does family members roll their eyes when they see you bringing in more equipment?
10. Do you dread going into the “pit” that has become your office?

If you have answered yes to more than three of these questions, your home office needs more room. It may just be a question of rearranging the rooms of your house. If there is a larger room that can accommodate your office, try switching rooms.

Link

Tags: home office, home business, office organization

Stick to What You Know - A Recipe for Smal Biz Success

2006-03-29T08:10:00.000-05:00

Pioneering research into the nature of innovation in small and medium sized enterprises (SMEs) has revealed that ambitious, smaller enterprises are more likely to focus on incremental innovation, rather than radical developments.

The research, carried out by Cranfield School of Management, contradicts the traditional and widely held belief that SMEs tend to focus on radical innovations because of their agility, flexibility and entrepreneurial management style.

The most successful, ambitious SMEs are in fact those which have achieved growth by ‘sticking to the knitting’ – selling more of their existing products or services to their existing market.

Link

Tags: small business success, pioneering, research:

6 Traps for Entrepreneurs.

2006-03-02T10:40:00.000-05:00

It’s common knowledge that most small businesses fail within 5 years. These statistics are mindblowingly depressing for people looking to start up a new venture. No-one starts out with the intention of creating something that isn’t sustainable. In fact most people would be adamant that they weren’t going to be one of those statistics. There are many things that can undermine a business. Here are a few:

Getting wedded to a single idea and sticking with it too long

How long has it been since you updated your offer? That can be as simple as delivering your product or service in a new way. Remember, new ideas are the currency of entrepreneurs. Schedule time to brainstorm new ideas for your business.

Believing your own b.s.

Without wanting to burst your entrepreneurial bubble, sometimes we can believe so strongly in what we are doing that we ignore other (differing) opinions. Just remember that an alternative view is also likely to be based on sound reason, and it's a great idea to understand what those reasons are.

Ignoring your cash position.

It's often the case that business owners are overly optimistic about sales, particularly of a new offer. In the event that this happens, your reserves of cash will be your lifeline. Knowing exactly how much cash you need to run your business from week to week is step one in avoiding this trap. Step two is obviously having the cash you need, plus extra in reserve, to survive for 6 months with low or no sales.

Letting unproductive employees linger

If you employ other people then one of your key activities is managing and coaching the performance of the people that work for you. Tthere will be times when your employees just aren't working out as you had hoped. Have you ever stopped to notice how draining it can be dealing with "staff" issues?

Selling too hard.

If you find yourself selling an idea or product too hard to too many people, perhaps it's time to listen to why they are not buying and learn from that, rather than trying to become a better salesperson. Have mechanisms in place that allow your customers to provide feedback. Ask your customers what else they want before you go and create something new.

Not setting up support structures.

Admitting that you need helping some areas is the responsible approach to business management. Hire people and services to handle the stuff that you're not good at, or don't have time for. Most entrepreneurs do better when they are fully supported, it's amazing the difference that taking the pressure off yourself can do for your energy levels and focus.

via

Tags: entrepreneur, traps, cash, selling, support, small business

Top Ten Email Marketing Mistakes

2006-03-02T10:27:00.000-05:00

Email marketing isn't complex or new. Yet we see the same mistakes being made over and over by the marketing executives, sales professionals and owners of small businesses.

If done correctly, email marketing is a very effective medium to generate new leads, and build continuous contact with your customers and prospects. It can easily help you yield new sales and meet your targets.

Take care of these top 10 mistakes and you are on your way to new sales!

Underestimating Current Customers List

No specific Target

Using cheap lists

No system to measure response

No clear goal or strategy

Marketing folks don't have time to update anyone about their initiatives

Marketing message is inconsistent

Boring Marketing Message or Ad copy

Dropping Prospects Half Way

Not interested in Educating the prospect

Check details on them here

Tags: email marketing, online marketing, small business, small business marketing

Opportunities For Small Employers

2006-02-28T10:38:00.000-05:00

A recent analysis by the Herman Group is taking an insight look at certain opportunities, small businesses may see in the near future.

Given all the anxiety out there about outsourcing, offshoring, and employment instability the idea of working for a large company may not have the lure it once did. And that's good news for small-business owners who may now have access to the sort of management talent that was unavailable in the past.

[small] companies will be able to employ high-caliber talent that was not as available in the past. Expect smaller employers to retain search firms and other outside consultants to help select and manage strong new employees coming out of an eager talent pool., study says.

Tags: small business, employ, outsourcing, management talent, small employers

3 Things Your Accountant Wants From You

2006-02-28T10:28:00.000-05:00

1. Keep clean financials. At this late stage, it’s all about being organized and responsive. For instance, make sure your financial statements balance. If your CPA doesn’t know that you hired a salesperson in Texas last year, you can’t expect him to file the necessary out-of-state tax returns. When your accountant asks for additional documents, such as a list of out-of-state employees, send them immediately.

2. Plan ahead for next year Now is the time to make tax-wise decisions for 2006. If you’re not sure where to start, set an appointment to talk to your CPA about tax strategies. Review your quarterly estimated tax requirements early to avoid penalties. Throughout the year, talk to your CPA before you buy or sell an asset or undertake other major transactions, so that you know how best to proceed from a tax standpoint.

3. Document carefully. Watch your record keeping, even when you’re on the road. If you use the same vehicle for business and personal travel, pay close attention to your mileage.

via

Tags: cpa, accountant, small business, clean financials, plan, document

Go It Alone - Free Entrepreneurship Ebook

2006-02-23T09:26:00.000-05:00

Author Bruce Judson has taken his book on starting your own business, Go It Alone! : THE SECRET TO BUILDING A SUCCESSFUL BUSINESS ON YOUR OWN to the WWW for free.

A fundamentally new class of entrepreneur is emerging: the go-it-alone entrepreneur. Businesses run by these entrepreneurs are characterized by three defining criteria:

The business is started with a minimal investment, and the founder or founders retain full ownership and control of the enterprise.

The business is run entirely by a small number of people, generally from one to six.

The founder does not set out to create a small business. He or she is working from the premise that the business has unlimited revenue potential.

To the founder or founders, a go-it-alone enterprise is small only in the numbers of workers it employs. It’s designed to generate substantial financial returns and to play a sizable role in the business world.

The implications of these defining criteria are significant. When a business starts with a minimal investment, the enterprise must focus on generating cash from the outset. This, in turn, suggests that the business is able to swiftly develop a paying customer base. Unlike many start-ups, go-it-alone businesses don’t have a gestation period where dedicated, full-time

Tags: entrepreneurship, business, franchise, entrepreneur, free ebook

Negociation Tips

2006-02-08T03:59:00.000-05:00

Start slow, if possible: It sometimes takes a while to get a feel for the person you will be negotiating with, and if time permits, it is generally a good idea to get your feet wet before jumping in.

Come in over-prepared: The more you know about the other side and the facts, the better equipped you are to get what you want.

He who offers first, loses: Typically, when you make the first offer, you are setting an upper limit on what you can get. For instance, if you want a raise and tell your boss that you want $5,000 more a year, you will never find out that her budget would have allowed you to get $7,500 more. So try and not make the first offer.

Have some good tactics ready:

•Silence: When offered a number you do not like, instead of responding, instead say nothing. .. continue to say nothing. .. if the other side talks first, it will likely be to raise the offer and break the uncomfortable silence.

•Flinch: An "involuntary" flinch is likewise used to make the offeror uncomfortable with the offer. Any sort of similar "shocked" response may work in the right circumstances.

•Good cop/bad cop: The good cop earns the other side's trust by being reasonable talking about what a jerk the bad cop is. He can then make offers or offer rejections that the bad cop cannot.

Remember it is a negotiation: Their job is to get what they want. . Do not take it personally. But always keep in mind your bottom line and do not negotiate below that number/offer.

Be willing to walk: The willingness to walk away from the deal or table is the key to a strong negotiating position. This is the real leverage in any negotiation.

Via.

Tags: negociation tips, negociate, tactics

7 Principles of Business Ethics

2006-02-07T15:13:00.000-05:00

Via SmallBusiness CEO here are some findings of the research study, "Does Business Ethics Pay?" by The Institute of Business Ethics (IBE):

1. Be Trustful: Recognize customers want to do business with a company they can trust; when trust is at the core of a company, it's easy to recognize. Trust defined, is assured reliance on the character, ability, strength, and truth of a business.

2. Keep An Open Mind: For continuous improvement of a company, the leader of an organization must be open to new ideas. Ask for opinions and feedback from both customers and team members and your company will continue to grow.

3. Meet Obligations: Regardless of the circumstances, do everything in your power to gain the trust of past customer's and clients, particularly if something has gone awry. Reclaim any lost business by honoring all commitments and obligations.

4. Have Clear Documents: Re-evaluate all print materials including small business advertising, brochures, and other business documents making sure they are clear, precise and professional. Most important, make sure they do not misrepresent or misinterpret.

5. Become Community Involved: Remain involved in community-related issues and activities, thereby demonstrating that your business is a responsible community contributor. In other words, stay involved.

6. Maintain Accounting Control: Take a hands-on approach to accounting and record keeping, not only as a means of gaining a better feel for the progress of your company, but as a resource for any "questionable " activities. Gaining control of accounting and record keeping allows you to end any dubious activities promptly.

7. Be Respectful: Treat others with the utmost of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional respect and courtesy.

Tags: business ethics, research study, small business

Grow Your Homebased Business

2006-02-07T12:36:00.000-05:00

Here are 10 steps to grow your homebased business into the personal and professional success it was meant to be:

Focus on a single product or service, and then market it, sell it, promote it—do everything you can to increase sales of that one product or service.
Expand your product line to offer complementary products or services.
Find ways to increase sales to your existing customers.
Hire someone to help you out—an employee, a freelancer, an intern, an independent contractor, even your kids.
Create a Web site to advertise your company or sell products online.
Join forces with another business to promote your company.
Target other markets.
Find new and different ways to market your business through e-mail newsletters or by doing guest-speaking gigs or by teaching a class.
Expand to another location.
Think about turning your business into a franchise or business opportunity.

Read detailed article.

Tags: home business, homebased business, business grow, small business

7 Things Your Customers Don't Want To Hear

2006-01-16T12:34:00.000-05:00

Jeff Wuorio is a veteran freelance writer and author of books like How to Buy and Sell (Just About) Everything writes a very interesting article on Microsoft Small Business Center about

a sampling of things that a client or customer should never, ever hear at your business:

:

1. "Why are you doing that for him?" This is pretty much what the hardware store owner's flip remark meant. It may seem ludicrous to say it, but service for a customer - be it run of the mill or beyond the call of duty - should never be questioned in front of the person with the credit card in hand.

2. "Are you sure you can afford this?" That sort of remark effectively questions a customer's capacity to pay for a particular item, not to mention showcasing a laziness to display wares that may end up back on the shelf. That's not to say you shouldn't do customers the courtesy of letting them know something is expensive, but don't do it with the connotation that it's probably beyond their means.

3. "What an idiot that last guy was!" Said by one grocery clerk to another as I stood ready to pay for my kids' Cheez Poofies or some other such vile snack. Needless to say, not every client or customer is cherubic in word and deed, but commenting on them to another employee - or, even worse, a customer - is gossipy and grossly unprofessional.

4. "We don't have it." Of course, businesses run out of stock or may not offer a certain service or item, but just hearing "no" or words to that effect is tantamount to adding "And stay out!" Don't leave things hanging like that. Instead, make sure you offer customers alternatives to what they want.

5. "What a ______ name." (Choose "different," "funny," "unusual," "bizarre," etc.) Don't misunderstand me. I know I have a, shall we say, esoteric last name. But I don't adore the attention I get when an insipid nitwit callously editorializes about my family moniker. Not sensitive in the least. Not me. But not everyone is as thick-skinned, so make it a policy never to remark on a customer's name, as even well-intentioned curiosity may come across inappropriately. Instead, it's far more politic to ask how a person's name is pronounced correctly.

6. "I haven't a clue about what I'm talking about, but I'll ramble on regardless." Don't strangle your employees' eagerness to help clients and customers, but urge them to stick to topics and advice with which they're familiar. And, if they don't know something, make certain they refer customers to an employee who does.

7. "I only work here." In four wretched words, an employee conveys a complete absence of enthusiasm or involvement, let alone a willingness to address a problem. Instead, make certain your people know that there's likely someone else available who can tackle something that is beyond their means.

Read full post here.

Tags: small business customer sales

Is Starting A Company The Right Thing For You?

2005-12-08T02:25:00.000-05:00

Starting your own company isn't right for everyone. It has nothing to do with skill-level, and has everything to do with personality and your current situation.

Based on his experience starting Carson Systems, a small web-based company. here is a list of personality traits you might need:

Self motivation - No one is going to tell you what you should or shouldn't be doing. Whether your succeed or fail is pretty much up to you (and a bit of luck).

Open to risk - There's no guarantee that your company will succeed. Would you be able to recover emotionally, if it fails?

Strong work ethic - There are some periods where you'll be working 18 hour days.* Can you do it? Do you want to?

Driven - When things go wrong, are you strong-willed enough to push on? You've got to be fanatical about what you're doing. If you don't believe in what your doing, why will customers?

Organisation - You'll get busy really fast. I'd recommend picking up a copy of David Allen's Getting Things Done: The Art of Stress-Free Productivity

Humility - There are plenty of wise people out there who you can learn from. I freely admit that I don't know it all, which is why I read so many blogs (up to about 100 now). Free advice from wise people - what could be better?

Read the full excellent post at 37signals.com

Tags: small business, start-up

17 Most Common Mistakes Start-Ups Make

2005-12-06T12:50:00.000-05:00

A seasoned entrepreneur, John Osher, reveals the 17 most common mistakes startups make and how to avoid them:

1: Failing to spend enough time researching the business idea to see if it's viable.
2: Miscalculating market size, timing, ease of entry and potential market share.
3: Underestimating financial requirements and timing.
4: Overprojecting sales volume and timing.
5: Making cost projections that are too low.
6: Hiring too many people and spending too much on offices and facilities.
7: Lacking a contingency plan for a shortfall in expectations.
8: Bringing in unnecessary partners.
9: Hiring for convenience rather than skill requirements.
10: Neglecting to manage the entire company as a whole.
11: Accepting that it's "not possible" too easily rather than finding a way.
12: Focusing too much on sales volume and company size rather than profit.
13: Seeking confirmation of your actions rather than seeking the truth.
14: Lacking simplicity in your vision.
15: Lacking clarity of your long-term aim and business purpose.
16: Lacking focus and identity.
17: Lacking an exit strategy.

, plus, the 5 things you must do to ensure success:

1. Know your goals for the venture. "A lot of people see an opportunity without ever asking themselves what they're doing it for," says Russo. "Are they trying to make a quick buck? Create a legacy? Have a lifestyle? There are a lot of reasons. It's critical that you know from the beginning what your goals are, because everything else is going to revolve around that."

2. Recruit and hire the best people. "It sounds almost cliché now to say I'd rather have an A team with a B idea than a B team with an A idea. The right team can fix a lot of problems. If you don't have the right team, you don't have much of a chance," Russo says. "Get the best people available at the time."

3. Develop a forgiving strategy. "Things are going to go wrong," he says. "They're going to be harder, take longer and cost more money than you think. You have to have a strategy to survive. A lot of people put together a plan that will work only if everything goes right. It's not going to."

4. Be honest with yourself. "Recognize shortcomings, weaknesses and problems immediately. Do not ignore them or try to talk yourself out of them," Russo says. "Address them head-on."

5. Commit to the business. "You can't really do anything significant without fully committing yourself to it. A lot of people try to dabble," he explains. "They think they'll do it part time [and] see how it works out. If you plan to be successful, you have to commit."

Read the full entrepreneur.com article

Related posts:
10 Mistakes Small Business Owners Need To Avoid
Top Ten Startup Rules

Tags: entrepreneur, small business, mistakes

Small Business Advertising Problems

2005-12-06T10:31:00.000-05:00

The two biggest problems with most small business advertising seems to be:

1. The message stinks. Advertising's main job is to inform and then persuade. If you aren't Nike, don't waste your money on a billboard with your logo. Most small business advertising I see is poorly written. Billboard, TV, radio, print, web - the words are the most important part of your ad.

2. The targeting stinks. Unless you are in a business that the general public actually uses, like a grocery store, advertising to everybody is a waste of your money. Many business owners have a false view of who is interested in what they're selling. "Everybody needs this." Maybe so, but not everybody is going to buy it.

Via

Tags: small business, advertising

88 Financial Calculators

2005-12-05T17:40:00.000-05:00

Bankrate.com has 88 difference financial calculators that cover mortgages, home equity, auto, CD’s and investments, debt management, college finance, and personal finance. Basically, if you’ve got any money questions, there’s a good chance this page can help you calculate it.

With a calculator for loads of different situations (e.g., compare the cost of living between cities, calculate the true cost of paying the minimum on your credit card, and basically everything in between), Bankrate’s financial calculators are worth checking out. You may even come across a calculation or two that you should do, but haven’t thought of.

Tags: financial tools, financial calculators, mortgages, home equity, investment, debt management

Keep Your Staff Motivated During Holiday Season

2005-12-05T12:14:00.000-05:00

More than two thirds of British employees think their colleagues are less productive at work during the Christmas period, a poll for Investors in People has concluded.

Ruth Spellman, Investors in People chief executive, said: Whilst it's important to keep staff focused to ensure that the job gets done over the Christmas period, no one wants a Grinch for a manager. The key to getting the best from your staff at a time when they may be distracted by planning for Christmas is to ensure that they continue to enjoy coming to work.

To stem staff sluggishness, the organisation is urging bosses to follow six top tips:

Promote healthy working by making time to check in with staff and make sure they are not struggling with a nasty cold or flu or suffering from lack of proper cover or support

Ensure any extra time staff put in over Christmas is logged in their next review and make sure that your employees know it has been noted.

If you're not awarding bonuses, at least give each member of staff working over Christmas a small festive gift as a token of appreciation

Show your own face because if you're not prepared to put in the hours during the festive period, how can you expect your team to deliver?

Allow your staff to take an extra half hour at lunchtime for present buying and make up the time at the start or end of the day

Pay extra attention to employees who work shifts during the Christmas period Bank Holidays

How to Deal with Negative Word of Mouth

2005-12-02T10:39:00.000-05:00

If you're a small business, word of mouth is, or at least it should be one of the most importand marketing tools you got. Word of mouth is affecting your business, whether you deliberately use it or not. How you react can make a difference -- negatively or positively. Here is a interesting list with 5 tips on how to react to negative word of mouth:

1. Know your detractor

Detractors fall into three categories. First are the Hear Me's that have a gripe and just want to be listened to. Ignore them and they could turn into Reputation Terrorists, who are determined to undermine your company and willing to go out of their way to do it. Finally, there are the Competitive Destroyers, who are trying to get a competitive advantage over you for business reasons.

2. Listen to your complaints.

Whether they're coming via email, customer service reps, or a complaint line, listen to the people who have something to say.

3. Have facts readily available.

You'll want the ability to point to the truth, so when negative word of mouth crops up, you can say, "Yes, there's all this silliness out there, but here are the facts."

4. Maintain perspective.

Ask yourself: "Is the negative word of mouth having an impact, or is it a guy sitting at home in his underwear in the basement with his dog looking over his shoulder?"

5. Activate your influencers.

If there's truly a problem, make sure you have people willing to step up to the plate for you, and be ready to activate them if the time comes. That doesn't mean simply saying, "I'm right and he's wrong." It means having people willing to talk about their experiences with you.

Well these were just some teasers as they were excerpts from the new Word of Mouth Basic Training Blog where you can find a lot of interesting infos on the subject.

Tags: word of mouth, small business, marketing

Avoid Christmas Cash Crisis

2005-12-01T08:33:00.000-05:00

Companies holding back payment to improve their end of year figures could have serious repercussions for small firms that are reliant on cash coming in.

A little forward planning by businesses can go a long way to ensure that, as far as cash flow is concerned, they start the New Year on the right foot. It is recommended that businesses identify those customers whose credit periods expire over the holiday season and issue appropriate reminder letters to ensure that payment is received on time.

Here is a list of 10 top tips to help companies enjoy a happy Christmas having been paid on time and settled all their own outstanding debts:

Ensure you are aware of your major customers' Christmas opening hours to avoid wasting time when chasing payments

If payments from customers are due during close-down periods, attempt to negotiate earlier payment dates

Do not let credit limits get out of hand because of extended payment times over the December and January period

Do not get behind with your own invoice and statement schedules over the Christmas period

New customers seeking large credit facilities over the Christmas period may be hunting for credit from unsuspecting (and busy) suppliers

Ensure you obtain as much information on new accounts, including credit checks, no matter how busy you are

Do not supply new goods or services if your customer has exceeded reasonable overdue periods, regardless of their credit limit

Plan and budget your own expenditure over this period because, inevitably, payment terms can be disrupted over December and early January

Take action on those accounts that are beyond credit limits now. Do not wait until the New Year when your debtors will have other pressures

Use the quiet, close-down period to review your terms and conditions, ensuring they are up-to-date and that they include reference to interest terms

Read full article here

Related: Get Your Business Holiday Ready

Tags: holiday ready, christmas, cash+flow

Entrepreneurial Quiz

2005-12-01T08:14:00.000-05:00

Forbes is running an entrepreneurial quiz, adapted from Thomas Harrison's book, Instinct : Tapping Your Entrepreneurial DNA to Achieve Your Business Goals, in which he explores the link between entrepreneurship and genetic architecture. Take the 30 questions Forbes Entreprenorial quiz here.

Tags: entrepreneur quiz

Get Your Business Holidays-Ready

2005-12-01T05:42:00.000-05:00

As Christmas and winter holidays are just next door, don't wait until it's too late to get your business, no matter how small it is, holiday-ready. In the next days, I'll try to put up a series of posts on this matter.

For the beginning, here is a list of eight tips to get your biz in the holiday spirit:

1. Find out what your customers want

. A powerful rule no matter the question or the season, but - whether through word of mouth or formal surveys - know what your clientele wants. Chances are good that most will opt for a holiday flair - decorations, Christmas cookies, the whole fruitcake - but that's no certainty.

2. Know your customers' tastes

. Make certain you accessorize accordingly. That means, if you run an occasionally noisy sports bar, your choice of decoration and lighting can be - shall we say - somewhat more liberal than a family-minded pet store. On top of that, decorate demographically - don't buy the same $1.25 plastic Santa headpiece that goes over the grill at a burger joint for a restaurant that provides home-equity loan applications with its entrees.

3. Compartmentalize your holiday space, if you'd prefer

. There's no Yuletide law that mandates that every inch of your business has to smell like a pine-tree arboretum. Consider earmarking only a portion of your business space for holiday-related accoutrements. For instance, one business I know works up a holiday village that occupies only three center aisles. The atmosphere is holiday-laden, complete with music and ersatz snow drifting down. But the rest of the store could be in Maui in July for all you could tell.

4. Be creative; consider new approaches

. Even the most ardent holiday decoration fan would admit that things can start to look rather - ahem - uniform after a bit. After all, 12 successive stores all playing "The 12 Days of Christmas" can really sap a tune's hum-ability. So, track down lesser-known holiday music, look out for out-of-the-ordinary decorations and think up holiday-tied programs your customers might appreciate.

5. Service businesses:This affects you too.

The issues of decoration and other visual concerns may seem less important to you if your business is more of a service business. But that doesn't mean that the holidays aren't just as important - rather, the holiday season reinforces the importance of keeping in close touch with your client base. Find other ways of doing so, such as special promotions, event sponsorships or even charitable donations.

6. Don't sound monolithic or impersonal.

One of the inadvertent yuks I get out of the holidays is the corporate Christmas card that's signed by the company - not the employees, but the operation itself, as though someone had somehow taught this intangible entity how to write ("Best wishes, from Monolith Co.") Don't make the same snafu - if you're sending out cards, have them signed personally (by you or members of your staff).

7. Buy business gifts intelligently

. You may be able to save money on ribbon candy, but service businesses shouldn't overlook the importance of buying gifts for their best clients. But don't just run out and buy 100 chorizo and cheddar nibble 'n nosh boxes. Instead, research your top customers, find out what they would really appreciate and hit that target (within cost considerations, of course). If money's a concern, you can always trim expenses by buying lesser clients less expensive gifts. They're likely doing some belt-tightening this holiday season as well.

8. Make the good tidings go beyond the holidays.

Even the most generous client gift outlay can ring hollow if you morph into Scrooge for the other 364 days. So, make certain that, however you communicate with your clients during the yuletide, it's part of a consistent, overall communications program.

Tags: holiday ready, Christmas, small business

10 Questions to ask yourself when you are small

2005-11-30T10:17:00.000-05:00

Starting on the premises that it's not always the right answers that help - it's asking the right questions, Rajesh Setty puts up a list of ten questions an entrepreneur should ask himself before running a business, especially a small technology business, as he put it.

For those companies, he created this list of questions. Some of the questions may have broader applicability.

1. Do you have a sound business model?
2. Do you have the right resources to execute on the vision?
3. Are you willing to change?
4. Can you influence the influencers?
5. Can you scale?
6. Can you think "systems"?
7. Do you have the right tools?
8. Do you now how to market in the new world?
9. Are you willing to kill your darlings?
10. Is your business Google-Yahoo-Microsoft-proof?

Read the detailed post here.

Tags: Small Business, Strategy

Ten marketing tips to help promote your small business

2005-11-30T08:34:00.000-05:00

Are you a small business or start up? Do you sometimes feel invisible? Here are ten low cost marketing ideas guaranteed to boost your profile. Inspired from the Jay Conrad Levinson's Guerrila Marketing book, here is a list of 10 cheap and easy tips to better market your business, that you might sometimes just overlook:

1) Word of mouth is the most cost-effective, powerful form of promotion.

2) Networking may seem intimidating but there are ways to make it less scary. Dont feel you have to sell, sell, sell - the number one rule of networking is to listen. Its about building relationships.

3) Business cards need to stand out from the crowd. Get a new batch printed on unusual material textured card, plastic, wood or make it an unusual shape.

4) The internet is an amazing market place to promote your business but its easy to feel lost or insignificant.

5) Newsletters are a great way to build up a following, sign up potential customers and provide people with a regular reminder about your services.

6) Testimonials support your credibility. Its good practice to ask clients for regular feedback either verbally or in a quick customer satisfaction survey.

7) Cold calling can send shivers down your spine! However, it is a highly targeted way to promote your business. Dont expect to close a deal over the phone again this is about finding out information as much as selling.

8) Referrals are an effective and inexpensive way to increase your business and build your credibility. Ask each of your clients or suppliers for three contacts of other people who might like to find out more about your business.

9) Press releases must be targeted. There is little point sending round a generic press release to hundreds of newspapers. Start by focusing on five publications ideal for your target market.

10) Passion and persistence are the most important tools to promote your small business! If you try each of the strategies above and build them into a regular marketing plan, you will certainly boost your profile, without a doubt!

Via

Tags: marketing, tips, Small Business

Entrepreneur Lessons

2005-11-30T08:22:00.000-05:00

A lot of entrepreneurs dream of launching a business built around their hobbies or favorite pastimes. Big mistake, says Paul Orfalea. If you like to eat, don't go into restaurants, said Orfalea, the founder of the Kinko's copy chain, Then you hate going to restaurants. I used to like to bowl. Now I own a bowling alley, and I hate bowling.

This fall, Orfalea is promoting his new book: Copy This! Lessons from a Hyperactive Dyslexic Who Turned a Bright Idea into One of America's Best Companies.

Hyperactive dyslexic is as good a description as any for Orfalea, who yanks off his tie at the first opportunity during a recent interview. He then chats effortlessly about everything from the state of public schools to his lack of interest in technology. But Orfalea said that restless attitude is part of what made him so successful. "You have to have three things in balance: work, love and play," he said. "Like a tripod. So if you're an addictive personality or if you like certitude, don't go into business for yourself"

Orfalea founded Kinko's in 1970 but said he still has no idea how a copy machine works, has never used e-mail and reads, at best, at a fifth-grade level. The chain is now called FedEx Kinko's and is based in Dallas

Via Seattle Times

Tags: Entrepreneur, lessons
.

10 Mistakes Small Business Owners Need To Avoid

2005-11-29T07:48:00.000-05:00

Being successful in business is a delicate juggling act of doing the right thing while simultaneously avoiding costly mistakes.

Unfortunately, many small business owners--especially new business owners-- make simple mistakes that could easily be avoided with a little diligence and some inside knowledge. Here's a list of ten of the more common errors small business owners usually make:

1. They undercharge

When first starting out, many business owners tend to undercharge for what they sell. There are two reasons for this. First, they don't know how to correctly set an effective price, and second they think they need to have the lowest price in order to get business. In order to survive in business, it's crucial that a business owner receive maximum reward for his or her efforts.

2. They concentrate exclusively on sales

While no one can deny the benefits of having a boatload of business, focusing exclusively on sales is oftentimes a recipe for disaster. A "more sales only" mentality and growing too quickly are classic examples of how a business can fail during its peak growth phase. To succeed in business you must focus on your WHOLE business, not just parts of it.

3. They extend credit too easily

If selling on credit, be sure to perform credit checks on all of your customers. Also, make sure your customers completely understand and agree to your payment terms BEFORE doing business with them. Many slow paying customers like to take advantage of ambiguities in payment policies. While it may be attractive to take on as much business as possible--especially when bills need to get paid--keep in mind that it's better to have no business than to give away free business.

4. They think about taxes after the year is over

Since taxes represent a large expense in any business, it's absolutely essential that you do everything possible to minimize the cost. This means getting a grip on your taxes BEFORE and DURING the tax year, not after.

5. They don't have a plan of attack

A lot of business owners and self-employed individuals don't have clear, concise and written goals. And the goals they do have are frequently vague and imprecise.

6. They don't know how to hire and keep good employees

A common problem business owners have is their inability to effectively manage their employees. Not only do they make hiring mistakes, but they also don't know how to keep good workers. Besides the owner, a good employee can be a company's most valuable asset. In fact, in a small business employees can actually make or break the business. That's why it's essential that you hire the right person for the job.

7. They don't provide outstanding customer service

While numerous factors are responsible for success, by far the easiest way to expand your business is to provide customers with customer service that is "beyond industry Standards". Doing so is like planting money seeds that will grow and yield basketfuls of profit.

8. They are economically dependent on a small group of customers

The easiest way to give away financial control of your company is to grow your business on a small group of customers. While this may look tempting and free of hassles at first, relying on a small group of customers is not a good thing and it should be avoided at all costs.

9. They let emotions get in the way of sound business decisions

Some people get consumed with their emotions and frequently make business decisions for the wrong reasons. Examples of this include spending money on sexy, expensive advertising just to boast or beat their chest. Other examples include keeping unproductive employees because they feel sorry for them, or going out and spending crucial capital on equipment that isn't needed yet. To make good decisions, make sure you rely on the facts and sound business judgment.

10. They fail to develop as leaders and managers

Many business owners limit the amount of success they attain by failing to continue learning. Running and managing a successful business doesn't require exceptional talent, but it does require basic business knowledge. Without this knowledge you're at a substantial disadvantage. You should do everything possible to learn whatever you can about the complexities and nuances of your industry or profession--and not just once, but regularly.

Tags: business mistakes, small business

Top Ten Startup Rules

2005-11-28T12:22:00.000-05:00

Evan Williams, founder of podcasting startup Odeo, and before that, Pyra Labs of Blogger fame, shares his top-ten rules for startups. Excerpts below:

1. Be Narrow Focus on the smallest possible problem you could solve that would potentially be useful. Small things, like a microscopic world, almost always turn out to be bigger than you think when you zoom in.

2. Be Different
Ideas are in the air. There are lots of people thinking about—and probably working on—the same thing you are. And one of them is Google. Deal with it.

3. Be Casual
We're moving into what I call the era of the "Casual Web" (and casual content creation). This is much bigger than the hobbyist web or the professional web. Why? Because people have lives. And now, people with lives also have broadband. If you want to hit the really big home runs, create services that fit in with—and, indeed, help—people's everyday lives without requiring lots of commitment or identity change.

4. Be Picky
It applies to everything you do: features, employees, investors, partners, press opportunities.

5. Be User-Centric
Don't get sidetracked by technologies or the blog-worthiness of your next feature. Always focus on the user and all will be well.

6. Be Self-Centered
Great products almost always come from someone scratching their own itch. Create something you want to exist in the world. Be a user of your own product. Hire people who are users of your product. Make it better based on your own desires. (But don't trick yourself into thinking you are your user, when it comes to usability.)

7. Be Greedy
It's always good to have options. One of the best ways to do that is to have income. While it's true that traffic is now again actually worth something, the give-everything-away-and-make-it-up-on-volume strategy stamps an expiration date on your company's ass.

8. Be Tiny
The most likely end game if you're successful is acquisition. Acquisitions are much easier if they're small.

9. Be Agile
Many dot-com bubble companies that died could have eventually been successful had they been able to adjust and change their plans instead of running as fast as they could until they burned out, based on their initial assumptions. Pyra was started to build a project-management app, not Blogger. Flickr's company was building a game. Ebay was going to sell auction software. Initial assumptions are almost always wrong.

10. Be Balanced
What is a startup without bleary-eyed, junk-food-fueled, balls-to-the-wall days and sleepless, caffeine-fueled, relationship-stressing nights? Answer?: A lot more enjoyable place to work.

Read full Ten Rules for Web Startups

Technorati Tags: start-up, startup, top 10, rules

Small Business and Market Research

2005-10-17T07:14:00.000-04:00

Before selling a product or service, it's important to know the market you will be entering. Research includes finding out what potential customers need, what they want and don't want and why. Your goal is to build a demographic profile of your customers.

Market research can pinpoint key business factors about your market:

Growth trends
Market size
The best location
How your business stacks up against the competition
Factors that influence buying decisions
Demand for your product or service
It also can reveal information about your customers and prospects:
Demographic profile
Features or services they want
What they like/dislike about your product
How they use your product or service
How often they buy and how much they will pay.

Via: SFGate

Tags: Market Research

7 Buzz Marketing Ideas

2005-10-17T07:05:00.000-04:00

Buzz marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique, spontaneous personal exchange of information instead of a calculated marketing pitch choreographed by a professional advertiser. Historically, buzz marketing campaigns have been designed to be very theatrical in nature. The advertiser reveals information about the product or service to only a few "knowing" people in the target audience. By purposely seeking out on-on-one conversations with those who heavily influence their peers, buzz marketers create a sophisticated word-of-mouth campaign where consumers are flattered to be included in the elite group of those "in the know" and willingly spread the word to their friends and colleagues.

Here are seven free Buzz Marketing Ideas that you can use to create more regional buzz for your organization.

Ask your customers what they like best about your product or service. Ask them if they talk about you with other people and what they say. Use this information to craft good buzz stories and encourage your employees to work them into their every day conversations.

Create a local Blog and have people in your organization update it with interesting things going on in the area. Make sure it is clear that your organization is sponsoring the Blog.

Visit businesses within a short distance of yours. Let them know what you do and find out more about what they do. Invite them into your business to meet some of the staff.

Throw a dinner party (or lunch) for a group of people you would like to meet and could have a positive impact on your organization. Be sure to have some interesting buzz worthy stories to tell about your organization.

Email a reporter, writer or other media professional at least once a week and let them know you like their work and offer ideas you have for stories. Contact different people in different weeks, and try to develop a relationship with some of the people that could eventually write a story that would create buzz for your organization.

Surprise a current customer or client. The more often you pleasantly surprise your customers the more likely they will be to talk about you to other people. The more frequently you do this and the bigger the surprise the more buzz you will create.

Strive to be worth talking about. Review customer service, support, product quality, customer relationships and attention to detail. No matter how hard you try to create buzz, it will be short lived once people see a product or service that does not live up to all the hype.

Via: Buzzoodle Buzz Marketing

Tags: buzz marketing, viral marketing

Small Businesses and Their Websites

2005-10-03T14:10:00.000-04:00

The Interland's Summer 2005 Business barometer was just relased and is full of interesting information related with the way small businesses are seeing and using the web and not only that.

A total of 780 leaders of small businesses participated in this invitation-only, nationwide online survey of organizations with 500 or fewer employees. Company size ranged from less than $250,000 in revenue to more than $5 million, and 81% have been in business for five years or more. Seventy-two percent of respondents said they have a business website. Industry breakouts were as follows: 33% business services, 20% personal services, 19% retail, 17% non-profit, and 11% manufacturing.

The majority, 78%, of small-business leaders felt their company was healthier – had a competitive advantage or stronger economic footing – because of their website. Similarly, 76% of respondents reported that their website generates leads for their business.

You can download the full 4.5 MB, PDF study here.

Tags: Small Business, Small Business Website

Startups That Work

2005-09-29T17:52:00.000-04:00

Amazon: "Every large company was once a startup struggling to survive, yet only a small percentage of all startups are able to thrive in the long run. Entrepreneurs and investors have gut instincts about what startups need to do to beat the odds, but until now there hasn’t been any hard research on what separates winners and losers.

Joel Kurtzman and a research team from Price-waterhouseCoopers studied 350 companies and interviewed hundreds of venture capitalists, CEOs, boards of directors, and angel investors over four years. This unprecedented research has led to some very surprising findings about nine key factors, such as market size, competitive position, business model, and cash flow. For instance:

• Speed usually trumps perfection.
• Advanced technology shouldn’t be the highest priority, even in tech companies.
• Not all growth is smart growth.

Startups That Work can help small-business people create value while giving venture capitalists and investors the essential information they need to figure out which startups are worth the investment risk."

Startups That Work : Surprising Research on What Makes or Breaks a New Company

11 Small Business Marketing Mistakes

2005-09-29T10:47:00.000-04:00

Continuing the mistakes series we started here some time ago with 10 Business Planning Mistakes You Should Avoid and Top 10 Mistakes Home-Based Business Owners Make hereisa list of 11 small business marketing mistakes.

1. Sinking a Fortune Into an Unproven Product
2. Believing That "If You Build It, They Will Come"
3. Trying to Reinvent the Wheel
4. Over-Preparing and Doing Nothing
5. Boredom
6. Relying on Networking to Generate Sales Leads
7. Doing What Your Competitors Do
8. Not Targeting a Specific Market
9. Targeting a Market You Can't Reach or One That Can't Afford You
10. Focusing On Acquiring New Customers Instead of Promoting to Current or Previous Customers
11. Not Systematically Following Up on Leads

See details of each of the aformentioned and some solutions on how to avoid them here.
Tag:Small Business Marketing

Top 10 Mistakes Home-Based Business Owners Make

2005-09-06T08:36:00.000-04:00

Are you running a home based small business or planning to start one? Here is a list of the Top 10 mistakes home-based business owners make:

1. Trying to fit a round business into a square house. Not all businesses can realistically succeed in a home-based location. Take a look at your needs for equipment, work space, storage, inventory, and employees and determine if it is simply too difficult to run your business from your home.

2. Lack of motivation. It is easy to become distracted. A home business should be run in the same manner as an office-based business. You need to motivate yourself to go to work in the morning and maintain that motivation during the course of the day in order to succeed.

3. No room to grow. If you are fortunate and your home-based business is successful, you may need to expand. This may simply mean another computer or printer and perhaps space for an employee. It is important while setting up a home business environment to anticipate growth. How do you know if it is time to expand beyond your home into a real office? S

4. Over spending what you are saving on overhead. Too many business owners justify spending money on all sorts of equipment by not paying overhead. In the end they overspend. Watch your budget.

5. Forgetting to promote your company. It is not uncommon for home-based business owners to get a little too comfortable working in a relaxed environment. Too often this means not getting out and promoting the business.

6. Not having a client-friendly environment. You may need to have clients come to your home. Too many home business owners have had to make excuses for their house, kids, dog, and the lawn sprinklers before sitting down with their clients. Set up the office portion of the house for business only.

7. Technical insufficiencies. Many home-based businesses are not dedicated or up-to-date. Your business computers should not be networked to the home computer where your children are hogging valuable bandwidth downloading games. And your technical equipment should be as state-of-the-art as you need and can afford.

8. Zoning nightmares. You may not know the zoning laws for your neighborhood, but your neighbors may be able to recite them. There are many stories of home business nightmares because of zoning laws. The more discrete your business is, the less likely you will have problems.

9. Overlapping home and office. One of the advantages of working from a home-based office is that you can spend more time with your family. However, as much you love them, you need to have a separate office space and set some ground rules so you can work while other activities are taking place at home.

10. Lack of a business plan. Just because it is a home-based business does not mean you do not need a business plan. You should be taking your business just as seriously as if you were heading into any other type of business.

Via: David V. Lorenzo

Technorati tag: Home Business

10 Business Planning Mistakes You Should Avoid

2005-07-22T10:19:00.000-04:00

Excellent article from Entrepreneur on business planning. Here's a list of some of the more common business planning mistakes you should avoid:

Don't put off writing a plan.
Don't confuse cash with profits.
Don't dilute your priorities.
Don't overvalue the business idea.
Don't confuse a plan with the act of planning.
Don't fudge the details in the first 12 months.
Don't sweat the details for the later years.
Don't create absurdly optimistic "hockey stick projections" of sales taking off in the near future.
Don't write too much.
Don't sweat the formatting details.

Full article: 10 Biz Plan Blunders
Technorati tag: Business Planning

Business Plan Template - from Microsoft

2005-07-05T16:49:00.000-04:00

Writing a business plan is one of the most important tasks in the process of doing a startup. While some might get away with explaining the business on a cocktail napkin, the others need to think through what investors will be asking.

Yet another business plan template, this time from Microsoft, in the popular MS Word (97 or later) format to help you out with composition of a generic business plan.

Technorati tag: Business Plan Template

10 Steps to Small Business Success

2005-06-16T05:53:00.000-04:00

Starting a business, given its share of rewards and risks, is a serious endeavor and requires considerable preparation. If you are going to accept the challenge, then you must do everything you can to improve your chances for success. This process involves the mastery of ten steps.

Develop your personal and company goals
New business success requires a combination of knowing what you are doing and capitalizing on a good opportunity. Develop and clearly state your goals in a written plan, which will then serve as your road map.

Define a viable market segment for your product or service
Define an unmet consumer need first, before you develop a product to satisfy that need. Regardless of how astute you may be in business, if the market isn't there to support you, then you cannot expect to go very far. However, the majority of entrepreneurs first come up with a product they think is "hot" before determining the existence of sufficient demand for the product.

Develop your marketing plan
The purpose of the marketing plan is to describe how you will attempt to create and maintain customers for a profit. It needs to state whom you are going to sell to, how you are going to penetrate the market, why you will be successful with your sales campaigns, and finally, how much you will sell annually over the next five years.

Write your initial version of the business plan
Your business plan must reflect the unique environment you will be operating in as well as what you plan to be your competitive advantage. It is an outline of the direction in which you plan to take your company, an analysis of your business strengths and weaknesses, and a skeleton from which your formal business plan will later be developed. It will assist you in securing the key people you need, and it will also help you to begin developing your financial projections.

Determine your financing needs
Once you have developed a rough business plan, you can begin to determine your financing needs, which will be incorporated into your formal business plan. Your marketing analysis leads to sales forecasts, which determine your staffing level, which defines your operating budget, from which you can generate financial projections and determine your projected cash flow.

Form your key teams: founders, management, and directors
You must make sure you have put together a solid management team. The rough business plan you developed in Level IV should help you to attract top talent to your company.

Finalize your financing needs and create your formal business plan
Starting with the rough business plan, put together a full-fledged formal business plan. A business plan should convincingly demonstrate that your business can sell enough of its product or service to make a satisfactory profit and be attractive to potential backers.

Develop a marketing strategy to obtain financing for your company
Set up a strategy to sell yourself and your company to financiers in order to raise the capital that your business needs.

Market your plan successfully, attracting capital on your terms
Once you've developed a strategy for approaching financing sources, you must make use of the negotiating tools that will give you an inside edge on the competition and enable you to attract capital.

Market your product/service and manage your business to achieve your goals
The last step in the process involves the ongoing management and marketing of your business. Getting a company started is only half the battle. Once you're in business, you will need strong management tools and marketing skills in order to make sure you stay in business.

Strategic planning for small businesses

2005-06-14T02:40:00.000-04:00

Many entrepreneurial ventures mistakenly belief that strategic planning is only for large businesses that can afford the time and personnel to develop a sound plan. However, if you are to compete in the marketplace against the "big guys", you need to learn some of their gameplans - and strategic planning is a major part of any successful, large business. That does not mean that your startup needs all the bells and whistles of the more complex plans.

What is strategic planning and how does it differ from other types of planning? Strategic planning involves setting up a strategy that your business is going to follow over a defined time period. It can be for a specific part of the business, like planning a marketing strategy, or for the business as a whole.

Differing businesses use various time periods for their strategic planning. The time period is usually dependent on how fast the industry is moving. In a fast-changing environment like the internet, 5-year plans don't make sense. In industries that change more slowly, longer range planning is possible and desirable.

Writing a business plan is different from strategic planning. One writes a business plan when one is starting something new - a business or a product/service line within a business. Strategy looks to growth while business planning looks to beginnings. Part of the strategy of a business may be to introduce a new product line. That product line would then have its own business plan for its development and introduction. Without a strategy your business has no direction.

There is no set format for a strategic plan. There are a large variety of models. The important criterion is find a model that is workable for your particular business.

In its most basic form, the critical components are:

Business Purpose
The business purpose is often also called the mission of the business. It is a brief statement about why the business exists - what you want to achieve. This does not need to be complicated, but it must sum up the essence of what you are trying to do as a business.

Organizational Goals
Goals are the ends to which your efforts are aimed - how you plan on accomplishing your purpose or mission.

Strategies for Reaching Each Goal
A strategy is another way of saying what approach are you going to take in reaching this goal. The important thing in this step is to build in checkpoints to ascertain that the strategy is working and to be flexible about changing if need be.

Action Plans to Implement Strategy
Action plans are the specific activities that you will be using to implement the strategy. It is good to have this step stated as precisely as possible so that you can measure progress towards its achievement.

Monitoring Plan Implementation
Here is where many, many strategic plans fail. If you don't follow through on whether the plan is being followed and how it is doing, you might as well have not spent the time doing it in the first place. Put checkpoints in and make it a point to not let them pass unnoticed.

Entrepreneurial death-traps

2005-04-12T07:12:00.000-04:00

Entrepreneurs face all kinds of potential adversity -- some kinds can kill them, some kinds merely set them back a little. Some kinds are unpredictable, others much more so. The saddest failures are the conceivably predictable, lethal ones, the ones that could and should have been avoided.

As senseless as small business deaths are which fall prey to the many-times-tripped death traps, they can be damnably difficult to avoid. Many of them appear in the form of beautiful, well-worn paths which logic, greed and even common sense might suggest taking. How tragic that they take entrepreneurs over cliffs time and time again.

To compound the challenge of avoiding such a demise, none of these paths is assuredly fatal. The important point is that they can be, and have been for many others. Each should be avoided or tempered if at all possible.

Here are some entrepreneurial death-traps:

"Mousetrap" Teams
Inadequate Pricing
Insufficient start-up capital
Failure to Look at the Downside
Failure to Look at Industry Norms
Lack of focus
Bringing on the Vulture
First Class from the Start
Inappropriate Distribution Path to Market
Emotional Litigation
Product Never "Ready" for Market
Low Barrier to Entry Growth Industry
Inadequate Market Research
Failure to Segment Market
No Reason for Customer to Change
Payback Can't Be Calculated
Failure to Admit a Mistake
Step Function Growth
Betting the Ranch
Ignoring the Handwriting on the Wall
Spiraling costs
Silliness phase

Read full article: Entrepreneurial death-traps

Small business pricing

2005-04-11T14:22:00.000-04:00

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.

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.

via WebProNews.com

How to write a business plan

2005-04-08T09:56:00.000-04:00

McKinsey and Company guide on how to write a business plan is designed to help you in developing your business idea, "from concept to company". It details the contents, scope, and structure of a business plan and the expectations venture capitalists have when reading one, and provides valuable pointers on starting up a company.

The Guide is not intended as a business studies resource nor is it a theoretical
treatise on the nature of business plans per se. Rather, it offers practical tips to help you get started setting up your company. Naturally, there is no guarantee that all aspects of this Guide will be relevant to your particular company or that all topics relevant to your company will be covered. The "Key questions" about the main elements of a business plan make no claim to completeness; those questions not relevant to your specific business plan need not be answered.

If you are reading this Guide because you have a business idea you want to transform into a successful company, we offer you a word of encouragement: Make the most of this opportunity!

Start a start-up

2005-04-08T09:48:00.000-04:00

Opening this weblog with an interestin essay about How to start a start-up.

You need three things to create a successful startup: to start with good people, to make something customers actually want, and to spend as little money as possible. Most startups that fail do it because they fail at one of these. A startup that does all three will probably succeed.

And that's kind of exciting, when you think about it, because all three are doable. Hard, but doable. And since a startup that succeeds ordinarily makes its founders rich, that implies getting rich is doable too. Hard, but doable.

If there is one message I'd like to get across about startups, that's it. There is no magically difficult step that requires brilliance to solve.