Archive for the ‘Uncategorized’ category

« Older Entries

Common Small Business Problems Many New Owners Experience

February 7th, 2012

There are a number of common small business problems many new owners experience that often make them feel isolated and unsure if they have made the right decision about starting their own small business. Well, the good news for all small business owners feeling this sense of gloom is that you are not alone.

Once the excitement settles down and reality kicks in to day-to-day trading, it is hard not to feel a bit depressed. I mean, all the well-wishes have now gone back to their own businesses and you are left to find all those customers you factored into your financial charts when you first thought about starting your business. Now comes the real test of getting some of those numbers converting into real people who will most likely benefit from using your business or services.

Numbers on paper are one thing; real people are sometimes harder to find. And even harder to find are those people who have money and will pay for what you are offering.

Initially in any small business you will have an excess of queries to paying customers and it is hard to appear upbeat and positive all the time but it is necessary to do so. Nothing scares people off more than a desperate person. A desperate salesperson makes mistakes that frighten off customers and it is these customers who are most likely then to go away and tell their friends and family about how they had a bad sales experience with your business. This is very bad word of mouth (WOM) advertising and has to be avoided at all costs.

In your first year of business, you can’t expect to make a million dollars and it is dangerous even trying if you are there for the long term and building up an asset that you want to sell in five years. Building a business means building relationships while providing something your customers need. They don’t need to make you excessively rich in your first year of trading so be sure to keep a reality check on your accounts bottom line.

Many new small business owners experience a sense of loneliness. After all, if you have been used to working with a lot of people around you that you can ‘chat’ with over coffee, and you now find that to even get a coffee break is difficult, you will miss this social interaction with other people. There’s nothing wrong with this and you needn’t feel odd feeling it. Many other small business owners experience this sense of isolation too and that is another good reason for you to join the small business association in your town or city.

These Small Business Associations (SBA’s) were set up and run by people who own a small business. There is strength and unity in numbers and for a new business owner; they can be a wonderful source of practical information. It is not a good idea to use them to “moan and groan” in about how few customers you have. Conversely, it is not a good idea to go there and boast about your success. Balance and honesty is essential in your relationships with other business owners as it is in your books.

There are many common problems many new small business owners face but there are also solutions to these and all you have to do is know where to look to find them.

Comments Off »

Posted in Uncategorized

Tags:

Four Compelling Reasons a Small Business Should Promote Through Publicity

January 23rd, 2012

As a former newspaper reporter and editor and a public relations consultant, I never cease to be amazed at why more small businesses aren’t aggressively seeking positive editorial coverage in their local media and trade journals.

The fact is, in today’s highly competitive marketplace, positive publicity is a powerful and low cost promotional tool that is uniquely available to small businesses. Here are four compelling reasons why a small business should pursue good publicity as an integral part of its overall promotion program:

1. It’s a smart dollars and cents investment. Sending out regular news releases and/or talking to reporters might cost some staff time and perhaps some duplicating and postage expense, but compared to the take-your-breath-away cost of most paid advertising time or space publicity is very inexpensive.

2. Yet, you actually get more bang for the buck with publicity than ads. You’ll get far more reader or viewer attention from editorial space or air time than from an equal amount of paid space or air time. Just think about how YOU read the newspaper or watch the television news — how many of the ads do you pay attention to?

3. News is more believable than ads. Everybody “knows” that, at best, most ads are little more than empty hype. And everybody “knows” that if you read it in the newspaper or see it on TV, it must be “the truth.”

4. Finally, regular positive media exposure in the media your customers read legitimizes you for them. If your name is seen regularly in a positive way, it can certainly help pave the way for when your reps make sales calls.

There is an old political adage that’s equally true for today’s small businesses, “The only bad press is no press at all.”

Comments Off »

Posted in Uncategorized

Tags:

Prototyping as Business Strategy

January 13th, 2012

Have you ever had an innovative, unique idea come to you at the most inopportune time, only to forget it again? Or, perhaps someone has suggested a product or service idea to you, you know it could be cool, but you don’t have the ideas, structure or support to make it come to fruition?

You are certainly not alone.

The good news is that there is a way to make ideas come to life. A prototype, also defined as an “early example,” is actually the first stage of an idea into something tangible. To really get the input needed to grow your idea into something of market value, you can engage in a “prototyping” process to connect with the opinion and feedback of potential customers and investors. This is what many startups do when kicking off their operations.

Let’s consider one of the best-known prototyping examples. Google is the Internet’s number one search engine and global brand today. Using beta testing and feedback, founders Sergey Brin and Larry Page launched a less than perfect service into the market place. Their philosophy: feedback is the answer to dominating a market. It also makes great business sense.

At the same time, Google’s competitors were trying to perfect a product by themselves separate from their target market. What was Google doing? It was continuously upgrading their original beta version by listening to the customer. This is the same philosophy Google uses today with each product launch.

Using some of these lessons, here are some key areas to consider when developing your prototype:

Move quickly. Even if you’re not 100% sure if the idea is the right one or the solution that will work, prototyping it will let you know. Sketch out your idea and run it by your colleagues, trusted customers and association friends. Perhaps they will give you validation or feedback you didn’t consider. Or, their input could inspire you to think of something new. The key is to be able to have a solid feedback behind you before you go to market.

Adjust as needed. Most likely, your target customer or your business model is going to change, forcing you to re-think your idea. Solid prototypes allow you to leverage your existing product or service attributes and change directions when necessary.

Remember that you are creative. Many of us think that we are not the creative type. Yet, by nature (as an entrepreneur), you are. You have created your own business.

Creativity isn’t about talent or luck as much as it’s about productivity. To find a few ideas that work, you need to try a lot that don’t. The key: develop a mentality of seeing old things in new ways. Shift opinions and perceptions on things, from positive to negative and back again, without the autopilot on. Even just for fun. You’ll see your mind bringing you perspectives with fresh eyes.

Continue the innovation process. Customers loved your idea and the market has responded. Now what? Prototyping now becomes a way of business. Competitors will soon start creeping up, so you’ll need to adapt and move faster than them. Keep your customers and “advisors” engaged in regular conversations and even look to acquire new sources of feedback. Ask the questions and the answers will keep coming.

Comments Off »

Posted in Uncategorized

Tags:

How To Get Small Business Accountants

January 6th, 2012

News flash: small business accountants are there to help fledgling business owners. Old news? It can be, but few business owners and entrepreneurs heed this good advice. It is very important to start a business and get off on the right foot. At the very start, make sound business decisions-even before you start your own business or enterprise. One of the things to look into is accounting services.

All companies will benefit from having a competent and reliable accounting firm or even a professional accountant in Sydney who can offer a range of services. This is especially true among small business owners who are just starting out and learning each step-they need all the tax advice they could get. It’s a wise move to exercise caution and to “look before you leap”, particularly in making financial decisions, which includes taxes. Do enough research on financial planning and tax filing so costly mistakes will be avoided.

Small business accountants can help in getting your financial and related legal matters in order. Before looking for Sydney tax accountants to join your staff or getting a reputable accounting firm, it is important to be clear on the things that you require in an accountant for your company. Having clear cut and definite criteria will help you screen a good accountant faster.

What kind of small business accountants does a company like yours need at this time? Accounting covers a variety of fields such as individual tax, financial planning, mortgages and finances, and so on. There are many ways to get started in your search for small business accountants. You might want to approach an accounting firm specializing or offering services in the area that you need help with. Recommendations can also be a good source of prospects. Or maybe you already know of an independent professional accountant in Sydney.

Whatever means you use to find candidates, you need to keep a few things in mind:

* For small business accountants, accounting knowledge and experience in the industry that your business is in is a must.

* If your candidate is a chartered accountant, he or she should be aware of your business structure and the possible investment plans suited to it.

* Extensive knowledge of bookkeeping tools (such as accounting information systems and software) and related topics (such as retirement plans, payroll organization, expense management, business ownerships) is a must, even for small business accountants.

* Get an accountant in Sydney who is self-confident, personable and approachable, especially if he or she will be interacting with clients.

* Get your prospect’s opinion on your business plans or ideas. It will give you a good idea of the candidate’s knowledge of accounting and how that person thinks.

Finally, make sure that the small business accountants you hire are people you can see yourself and the rest of your staff (if you have one) having a good working relationship with.

Comments Off »

Posted in Uncategorized

Tags:

Here’s How to Get Free Publicity For Your New Home Business

December 7th, 2011

Congratulations on opening a new home business. Your choice to penetrate the world of entrepreneurship is going to be the most fulfilling things you have definitely previously tried. After getting yourself and your business established, it is time to get the word out about the benefit you offer to potential clients. Contrary to popular thinking, they do not come until you let them know you’ve launched it!

Many new small business owners don’t have loads of “start-up” cash, therefore it is critical to hold expenditures to a minimum. Thankfully, there are many techniques for getting publicity at no cost, or at a surprisingly low expense. For new home businesses, some kind of promotion, or advertising, is very important. Generally there is much competition around, no matter what kind of company you are running, advertising and promotion are important so that you can let consumers know how you will serve their desires. Without it, nobody will know about your new business.

Publicity is essential to the successful kick off of your new business. Certainly, there are plenty of opportunities for no cost marketing and publicity of your start-up business. One of the quickest, most commonly used, ways to get absolutely free promotion when starting a new home business is to phone the local media. Contact the newspapers and television stations near your home and let them know about the opening of your new small business. Often, they are going to pick up the story, as a “human interest” piece. However, if there happens to be a great deal of new news that day they may not run the story right away. Be persistent; keep calling and seek creative new angles to interest them in running a report about your new home business.

Some other free, or inexpensive, possibilities include flyers, internet press releases, online community forums, talking at classes, organizations, or club gatherings, barters or trades, community newsletters, online article content, online movie posts, online blogs and discussion boards, a basic web page for your new home business, as well as referral marketing. All these advertising options will provide lots of publicity for your new business. Flyers have been a popular low priced marketing option for many years. They can be given away in parking lots and placed on bulletin boards. At this time there are numerous internet web sites that allow you to distribute your press releases for free such as Free Press Index, PR Window and Release News. Be certain that you don’t saturate the web with your press release because the search engines may consider it as spam.

Investigate groups in Yahoo and Google where potential customers gather to talk about subjects relevant to your new business. Enroll in these kind of groups and start posting helpful tips to the subscribers to build a relationship with them. Many will choose to follow up with you directly to explore how you could serve their needs. Presenting at association and club meetings is an excellent way to get the word out regarding your start up business. These organizations are often looking for new subjects to interest their members. A lot of churches distribute a periodic publication and encourage notices from members. The bartering and exchanging of goods or services has been utilized since ancient times. Find a company that has what you need (such as a large customer list) and agree to exchange them something for endorsing your business. Keep in mind that referral marketing is the best advertisement. This particular form of advertising has a tendency to generate the most confidence in the potential client. Word of mouth marketing creates a verifiable form of publicity. People generally have more confidence in a company that their friends and family have recommended.

Using any or all of these zero cost, or inexpensive, kinds of promotion and advertising will provide a proper launch for your recently opened small business. These methods will ensure immediate popularity and get the business going. Regardless of whether it’s an online business or an offline small business, taking advantage of as many of these publicity ideas as possible is going to be of great benefit to your small business. Starting a brand new business calls for commitment and determination and your persistence will pay off. A lot of brand new entrepreneurs give up too easily. It may take a while to become established in the new small business. Remain with it and keep working at it. Soon, your time and energy will be rewarded with a constant supply of new customers.

Comments Off »

Posted in Uncategorized

Tags:

Good Business Ideas: Are You Focused Or Scattered?

November 17th, 2011

Good business ideas are a dime a dozen. Do you focus your energy on making one idea blossom or are you scattering your energy with each “new” discovery and secret?

Once you start looking for good business ideas, you will find them everywhere. There are seminars, workshops, webinars, video programs, and books all telling you how to:

• Build a down line quickly.

• Create a business from a business-in-a-box.

• Buy and sell real estate with zero money down.

• Invest in stocks.

• Learn Internet marketing for small business.

The problem is not the products or services that are being promoted. The problem is you and your ability to stick with one program; and see it through to successful completion. If you keep hopping around to all the profitable business ideas, you will not master any of them.

Each program requires a new set of skills; therefore, a new learning curve is involved. These learning curves are the roadblocks that stop about 85% of people from finishing a program. What do you do instead of persisting? You go out and begin searching for more profitable business ideas.

Have you been caught in this trap of starting and stopping? If you keep moving on to the next idea that comes along, you are setting yourself up for perpetual failure.

How can you break this habit?

The following three steps will help you develop the persistence required to successfully build a business.

1.) Beliefs – Remove all inner doubts. What are you thinking? Your actions will always support what you are thinking. Immerse yourself in motivational, inspirational books and programs. Take a daily dose of positive “medicine” and build on good business ideas.

2.) Blueprint – Gather factual, reliable information on a legitimate home business opportunity. Does it feel good? Do you enjoy working and learning the different skills?

3.) Business “Buddy” System – Find an accountability partner. Search for a like-minded person who will meet with you weekly. Human beings are social creatures. If you have a business buddy to check in with each week, then you will be sure to get more things accomplished. There are business forums on the web that make it quite easy to find an accountability partner.

Remember these 3 “Bs” (Beliefs, Blueprint and Buddy) as you develop your Internet marketing for small business.

If you are caught in the cycle of starting something, stopping, and searching again, then make a decision today to change. Psychologists tell us that when we begin something and do not finish it, we are forming the habit of failure.

Comments Off »

Posted in Uncategorized

Tags:

Why So Many Businesses Don’t Succeed

October 27th, 2011

Having been a small business owner and consultant for twenty-plus years, I had the opportunity to learn from my own mistakes, as well as, seeing the business failings of others. I have learned that there are definitely reasons why a small business fails; why some are successful; and why certain types of people are more successful business owners and entrepreneurs. The good news is most successful small business owners had many failings before achieving a level of success, and the object of this article is to identify their (and my) mistakes.

Lack of Capital

When starting a business, an entrepreneur needs to first bring sufficient cash to the venture. I recommend a minimum 10% of the total funding amount to come from Owner’s Equity, with 20% being optimum. Having a strong equity stake in the beginning of a Company’s life makes acquiring the additional capital much easier and less expensive.

Strong Owner’s Equity shouldn’t stop after a Company’s start up stage. A Company’s strength in Retained Earnings is key to growing the Company, seizing on market opportunities and obtaining future finance. If you lack owner’s equity capital, there is additional undue pressure on a Company’s cash flows, making it increasingly hard to obtain the appropriate funding.

Lack of Business Knowledge

Successful entrepreneurs are typically well read. They are always striving for more knowledge and take advantage of the wealth of resources offered through business schools and, as importantly, read other successful entrepreneur’s books. A Business Degree or MBA is a helpful foundation but gaining knowledge from those who have found success is critically important to understanding why businesses fail, as well as, spawning new ideas and markets.

Inexperience

Inexperience ties in with Lack of Business Knowledge. Business Knowledge can be acquired in school, through books and magazines, and via experienced business owners. Business Experience is the critical and common link between successful entrepreneurs. Inexperience costs money when mistakes are made. Make too many mistakes, and you are out of business. Mistakes are a natural part of the business learning curve, however, minimizing them is very important to stay in business. I highly recommend going into a business which you have experience and passion while seeking out those who have been in the same business for a time and reached a significant level of success. Experience comes with time, but you can also learn from the mistakes others have made before you. Cultivate business relationships, mentoring opportunities and networking events and forums. I can’t tell you how many times spending time with an experienced entrepreneur has paid off in spades, in my business life in so much as, what not to do, as what to do.

Poor Management

This is a biggie. If you can’t effectively manage people, learn how to and / or hire someone who can. Some entrepreneurs are great at this vital skill and others don’t have the patience for it. However, the bottom line is you can have a great idea, product and market, but poor management will cause business failure 9 times out of 10. Poor management often evolves into poor employee morale and high employee turn-over, which significantly hampers a company’s ability to compete in the market. Management doesn’t just entail employee management but also the ability to manage the Company. Having a good Business Plan, excellent Profit Strategies, and effective Cash Flow Management are just some of the important management tools necessary to run a successful business. Businesses often fail because they haven’t owned up to and analyzed their weaknesses, which often stems from poor management practices.

Inadequate Planning

The lack of a business plan or the poor implementation of a plan is typically the number one reason for business failure. So why do small businesses neglect to plan? Because it can be a very difficult process to do well; day to day business activities leave them little time to plan; they fear the weaknesses and problems’ planning reveals; they lack the knowledge on how to effectively plan; or they feel the future can’t be planned for.

However, to be successful in a small business by relying solely on luck is a huge gamble and often meets failure. You must know where you are going and how to get there. A good Business Plan guides the entrepreneur on how to operate a business; interest investors and bankers on financing the business; provide direction and motivation to employees; and establish an environment which will attract and retain customers and talented employees.

I have seen many instances where a business has a business plan, but it lacks the operational and control features to successfully implement it and the strategic know-how to successfully link the marketing plan with effective financial modeling and forecasting. Good planning is both Strategic, which is high-level, long range goal setting and meeting of objectives, and Operational, which implements the Strategic Plan, operates the business and sets the policies, methods and procedures to do so.

Planning actually means good business management. Inadequate planning often translates into poor management functions. It is a process which relates and inter-relates closely to Managerial Functions. Many business Owners don’t understand the extent of these vital relationships, thereby producing inadequate plans, which ultimately lead to business failure.

Understanding the components of the Planning Process makes it much easier to develop and implement a good Plan:

– Planning:
- Organizational Objectives
- Establishing Programs, Policies and Strategies to achieve the Objectives

– Organizing:
- What Resources and Actions are needed to meet Organizational Objectives
- Setting up Working Groups
- Assigning authority and responsibility

– Staffing:
- Select, train, develop, place and orient employees
- Foster employee productivity

– Leading:
- Effective Communication and Motivation
- Performance
- Goal Achievement
- Work Assignments and Direction

– Controlling:
- Setting Standards
- Measuring Performance
- Corrective Action

The underlying reason why a small business fails often stems from poor Operational Planning. Operational Planning is critical, since it helps business owners and entrepreneurs avoid costly mistakes, saves considerable time over the long term, and successfully bridges the gap between planning on paper and implementing the plan. Three types of Planning, or Phases of planning, significantly improve a small business’s chance to achieve success:

– Pre-Start Up Operational Business Planning
– Ancillary Business Plans customized for Investors, Commercial Finance, Customers, Key Employees, Suppliers and the such
– Post-Start Up and Growth Continuous Planning and Control

The point I am trying to drive home here is that inadequate Planning stems from the fact that most small business owners fail to fully understand all of Planning’s parts, and how to effectively harness and implement those parts into cohesive Operational and Strategic Plans, Goals and Objectives.

Comments Off »

Posted in Uncategorized

Tags:

How to Promote Your Small Business to Your Target Customers in a Highly Competitive Marketplace

October 14th, 2011

It has been calculated that we are exposed to around 2500 commercial messages each and every day. That figure excludes Internet advertisements and junk e-mail. This is significant for the small business manager because if you want to promote your business, you have to overcome the competition for the attention of your target customer. This means that your message has to be delivered to your target customer with pinpoint accuracy.

At one time it was simple. All you had to do was to advertise and you would make more sales. The more you advertised, the greater the sales. Nowadays, this is not the case and it is possible to spend a considerable amount of money on advertising with a very small return. The marketplace has become cynical, skeptical and bored with exaggerated and overstated advertising claims.

The attention span of the prospective customer has gradually diminished over the years. This is shown by the following statistic. We are spending twice as much time in front of the television than our parents. But we are remembering 70 percent or less of what we see. All this presents quite a challenge to the small business manager. He or she has to carefully consider how to spend their promotional dollars and get the best possible return on the investment in spite of diminishing attention spans.

Another significant factor to take into account is the outcome of a recent piece of research that set out to find how people preferred to get ideas and information about specific products and services brands. The results were very interesting.

The research showed that, by a large margin, people preferred information from other people. Using peer-to-peer people networks to broadcast ideas and brands into the marketplace is very powerful because it’s authentic, organic, credible and sustainable. The study found that 60% of those surveyed preferred to get their information from other people about the suitability and reputation of specific brands. Only 33% considered advertising as a reliable and credible source of information.

One of the factors to be carefully considered when you are managing a small business, is credibility. How credible are your products or services? How credible is your promotional material? How credible is your customer service? How credible are your staff? These questions should be asked on a regular basis and the answers analysed to see whether or not credibility in critical areas can be raised.

We do know that consumers and customers perceive personal recommendations as being three times more credible than traditional media advertising such as TV, radio and print. The evidence is quite clear and significant for the small business manager because of the direction it gives to making decisions regarding promotional activities to develop greater sales.

A further piece of research found that the credibility of recommendations to purchase varies according to the source.

  1. Husband/wife/partner. 90%
  2. Friends. 82%
  3. Work colleagues. 69%
  4. TV news. 50%
  5. Retailers. 27%
  6. Manufacturers 27%
  7. Government. 14%
  8. Advertisements 14%

The challenge for the manager of a small business is how to use this information to make sure that they get the best return on investment for their promotional material. The evidence certainly emphasizes the power of word-of-mouth marketing.

Peter L Mitchell is a business consultant who has helped many diverse businesses to increase their profits. He has a wealth of practical experience which he is willing to share freely.

Download your free booklet showing 45 practical ways to increase your business profits. It is full of ideas, tips, tactics and strategies for you to apply in your business.

Comments Off »

Posted in Uncategorized

Tags:

Publicity Electricity – How to Plug Your Business Into the Media

September 21st, 2011

We all know what an electricity generator is and does, but when it comes to getting media exposure for your business, how good is your “publicity generator?” If you think about it, there are a lot of similarities between the two. Whether it is your business’s electricity generator or its publicity generator that fails, either way you will be left in the dark. The key to seeing the light is knowing how to generate your own “publicity electricity” and plugging yourself into multiple outlets — media outlets that is.

Whether it is magazines, newspapers, TV, radio or the increasingly popular online news outlets, media sources all over the nation are constantly in search of stories from small and large businesses. EVERY business in the world has at least some element of it that is newsworthy. It just requires you to fire up that publicity generator and shine some light on it for the media to see.

WHERE DOES PUBLICITY ELECTRICITY COME FROM?
There are a number of publicity angles, but the most well received publicity campaigns I have ever managed involved problem/solution businesses or products. Media outlets, especially trade specific ones, will often profile businesses or products that are uniquely solving a problem in a respective industry. It helps to present the editor with the problem, then provide some brief research or statistics — not sales or ad text, just facts — and show how your business/product can help solve the problem. Case studies work great. Show an editor or reporter how your business positively affected one of your clients and how it can provide similar benefits to others. This may also help get some free publicity for your client as well.

Other great newspegs are novelty or human-interest elements. If your business has a product or service that is truly unique, unprecedented or cutting-edge, that lends itself very strongly to an effective publicity campaign. A newspeg gives the editor/reporter/producer the reason to run your story as opposed to the hundreds, if not thousands of other story ideas that he/she sees each week. To say that you have a new widget is not enough. What is different about this widget? What implications does the business/product have and how would it affect the industry or consumer market? And finally, and most times overlooked, is there an intriguing human-interest story involved? Where did the idea come from? Did anything interesting happen during the business/product development stage? Or do the people behind the scenes of the business have interesting story to tell? All of these newspegs are potential publicity generators for you and your business.

PLUGGING IT IN
Now that you have your viable publicity generating prongs, how do you find the media outlets in which to plug them? Conduct meticulous media market research to find those outlets applicable to your campaign. In my extensive research for my clients, I find media outlets whose editorial profiles match the client’s business/product profile and pitch accordingly. You or your staff can do the media research at a local library or you can find a PR specialist or agency that can help you. Another great way is to use editorial calendars of media outlets and plug yourself into those opportunities. If you find that a magazine or newspaper is planning an upcoming feature on Innovative New Office Products, prepare your media kit for your new widget and pitch the appropriate editor.

One bit of advice — don’t expect exclusive and extensive. Very few businesses or products (with the exception of publicly traded ones) get multi-page stories written exclusively about them. Although that can certainly happen, most mentions are in the context of a themed story or article, but can generate very strong responses.

Comments Off »

Posted in Uncategorized

Tags: