Hot Tips For Your Business

2007-08-03T06:08:00.000-06:00

Tips To Build Your Email Address Database
By Austin C. Bliss

WHY BUILD YOUR EMAIL ADDRESS DATABASE?
Gaining your customers’ email addresses will:
· Provide an additional channel for reaching your customers
· Increase the ROI of your marketing investments
· Significantly reduce your customer acquisition and marketing costs
· Allow you to easily measure the impact of your marketing campaigns
· Increase your customer participation and retention rates

With ongoing postal and telemarketing pressures impacting marketing budgets for many organizations this year, email marketing could become the “silver lining “ for many marketers. But how do you create a successful email marketing campaign if you do not have a substantial email database? That question may be one of the largest Internet related challenges facing companies this year.
Research shows that the majority of organizations have email addresses for less than 10% of their postal files. So how do you level the playing field and start to add quality permission - based email addresses to your database?
Here are some tips that you can use to cost effectively build your email address database and increase your customer participation and retention rates:

START TO ASK FOR IT!
Every communication or touch point with a customer should start or end with a request for an email address. By utilizing the four points below, you should be able to add email addresses for 5% to 10% of your postal file over the course of one year.

1. Direct Mail Collection
Think about how much time and money you spent for copy and design on your last new direct mail piece. Most companies have started to ask their customers for their email address information within these mailings. This is a great step forward. However, companies need to look at one major improvement if they want to increase their email address collection rates.
To date, most requests for email address information have been pushed, shoved or jammed into whatever white space remains. It should be no surprise that the success rate has been less than stellar.
To improve on these efforts, you need to provide your members with a reason to release their email addresses to you. E-newsletters, purchase confirmations, petitions, and special discounts and offers are but a few of the benefits that will encourage your members to come on board.

2. Web Page Collection
Many companies have an email address collection function in place via the web. To improve your sign-up rates, add text below the email request box that informs your visitors of the special email benefits that they will receive (i.e. e-newsletters, purchase confirmations, delivery updates, etc.) upon registering. You can also utilize a pop-up link to inform users of these special benefits.
Finally, your email address request function should be available on your home page. Don’t make your users go and look for it. Every click away from your home page reduces the chances of your users taking an action and providing you with their email address information.

3. Existing Email Database Collection
Don’t forget to ask the members of your existing customer base for email addresses of their friends, family and associates. Viral marketing is a powerful tool to use and is extremely cost effective! You could ask them either to provide you with additional addresses or simply to pass on your newsletter, email specific offers, or other information to others they feel have similar interests.

4.Telemarketing Collection
Don’t assume that your telemarketing agents are asking for email addresses from potential customers. Ensure that your agents have an updated script, which outlines the previously described benefits to potential customers of providing their email addresses.
The suggestions above are a great start! Yet they really should be viewed as a secondary plan for building your email database. To exponentially and expeditiously grow your email database, please read on!

EMAIL APPENDING
Utilizing an email appending service enables you to add email addresses for up to 25% of your postal file, all within 3-4 weeks.
Email Appending - is the process of adding an individual’s email address to that individual’s postal record in side your existing database. This is accomplished by matching the postal database against a third party, permission based database of postal and email address information.
Best Practices - Email Appending is not a prospecting tool. The DMA (Direct Marketing Association) and its interactive arm AIM (Association of Interactive Marketing) have guidelines in place that dictate that email appending only be used to append email addresses to your existing opt-in postal record house file.
The Process - Your opt-in postal file is securely transferred to an email appending provider, who will do an initial gross email address match of your file against its opt-in database of postal and email address records. Your appending provider will then send these matches a permission-based message prepared by you. All bounces and opt-out requests will be removed from the list. At that point a valid permission-based email address file of your customers will be delivered back to you.
Cost - Less than the price of a postal stamp!

IN SUMMARY
The first step of any successful email marketing effort is to build a permission-based email address list of your customers. The simplest, quickest and most cost-effective way to do this is through email appending, which will enable you to add email addresses for up to 25% of your postal file. Secondary efforts of email address collection via focused direct mail, web, viral and telemarketing practices are also important and will enable you to add email addresses for an additional 5% to 10% of your base on an annual basis.
Best of luck in building your email address database. As many companies have already learned, the ROI and cost savings to be achieved will far exceed your expectations.

2007-07-21T07:01:00.000-06:00

How To Write E-Mail That Get Results
By Cheryl Rickman

Your words and the way you present and convey your message are what counts when sending e-mails. It's all about what you say and how you say it.

You need to:
· ensure your message is read
· make your e-mail stand out from the rest
· entice your prospect to click the link and open it
· ensure that your prospect reads and acts on your e-mail message.

Why use e-mail as a marketing tool? E-mail is cheap, fast and effective. It allows you to communicate with your prospects and customers quickly and easily, wherever they are in the world.
The problem is, everybody knows this. So everybody uses e-mail to communicate their messages. This has resulted in overflowing inboxes across the globe, and essentially means that your e-mail message is battling with many others for attention.
E-mail also puts you on an even-footing with the big boys. Posh stationery and logos, large corporations and posh offices are irrelevant in the realm of e-marketing.

You can use e-mail to:
· respond to a prospect's request for information
· follow up an old client
· contact your existing customers
· invite people to visit your Web site
· broadcast your Web site address.

E-mail also enables you to send online press releases, either by hand to your own list of e-zine editors and discussion board moderators, or in bulk to a targeted press list using a free service, such as "http://www.prweb.com" or "http://www.click2newsites.com/press.htm" or "http://www.pressbox.co.uk/"
Viral marketing is another technique that can be used to full effect in e-mails. If you create and use a signature file to go at the end of every e-mail you send, you can spread the word when people forward your e-mail messages. (Always include a signature file on your postings to discussion boards and forums. It should always include your URL and be six lines or less.)
12 Insider

Tips for Writing Effective E-MailsRemember, you're jostling for position in very busy inboxes, so you need to get your e-mails right:

1. Think about what you want to say before you write your e-mail and then organize your ideas.

2. Think about your audience. Imagine the person you are e-mailing.

3. Write notes about the key points you want to get across, their priority and the purpose of the e-mail. Think about what questions your e-mail recipients may have about your offer, service or product.

4. Establish your primary point and use that as the e-mail header or as the headline. Put your key points first. Expand that main point in your first paragraph of text.

5. Only make one point per paragraph and keep sentences and paragraphs short.

6. Make your subject headers interesting, compelling and concise, so that the prospect has to open the message. For example, "Web marketing tips to help you double your online business" would be better than "Frank's site update."

7. Keep the text upper and lower case and don't shout by using capitals.

8. Format your e-mails so they are easy to read in any browser. If your e-mail program doesn't include word-wrapping facilities, make your line length a maximum of 60 characters and press return at the end of each line. When printed, it will be neatly laid out.

9. Use short paragraphs, headings and subheadings, bulleted lists and summaries, and add white space to ease reading.

10. Always tell your prospect what to do next. Use a call to action, e.g., "Have your Web site appraised today, by visiting sending an e-mail to info@webcritique.co.uk."

11. Always check the e-mail for errors, omissions and spelling mistakes. Proofread as well as spell-check for errors the spell-checker may miss, and make sure you've included that attachment.

12. Target a specific audience who need your information. Don't bulk e-mail your message to thousands of untargeted people.
E-mail is one of the best online marketing tools at your disposal. Use it wisely and make your messages stand out

2007-07-19T12:05:00.000-06:00

E-Commerce: Is It Right for Your Small Business?
By Jennifer LawtonThe Kauffman Center for Entrepreneurial Leadership

E-commerce is a funny topic for me. I'm in the "Internet business," and every day I lead engineers, technical types, and Internet-specific professionals. Yet, if I asked each and every one for a definition of e-commerce and then asked all my entrepreneurial friends the same question, we might not get consensus.
In its basic form, some would say, e-commerce is the ability to conduct business electronically. In its loftiest and most misunderstood form, others would argue, it is to conduct business on the Internet. For those partial to complete confusion, it is to conduct business using technology, through an intra-, extra- or Internet solution.
'Phew, glad we cleared that up! Since entrepreneurs these days have been hoodwinked into thinking their customer rosters and ability to increase revenue at a meteoric pace are absolutely, undeniably based upon the use of e-commerce, well, it's something they—and you—want to get a firm grasp on.

Focused Thinking
Getting a solid handle on what's actually a quivering mass of Jell-o requires attention to a pair of practical issues about e-commerce: what it really is and who it's for. Only after considering these basics can you determine what your specific e-commerce strategy could or couldn't be, or should or shouldn't be.

What follows is our attempt to break down the issues into five statements that we hope will guide your thinking.

1. In your business, e-commerce is a concept that is aligned with, if not directly related to, your presence on the Internet.
When the Internet was "new," which I define as the time it was opened to the general public as opposed to the academic or scientific world (before Al Gore invented it, right?), everyone "had to have the Internet" to be competitive, and heck, to keep their doors opened. A lot of flutter swirled around getting on the Internet and not nearly enough around what that meant.
During this new era, I counseled many a worried business owner about what to do. At that time, the Internet was thought to be a marketing tool—no more, no less. So my counsel went like this: "The Internet is just another way to share information. It's just another tool."
My message, then and now, is that the Internet can enable you to sell and deliver products to your customers. If it's the appropriate tool, then use it! If it isn't the appropriate tool, then don't use it.

2. E-commerce allows you to gather information from customers, while delivering a marketing-and-sales pitch through a Web site.
Although the information you gather concerns orders, you can also ask customers or clients questions about who they are, where they want products shipped and billed to, what method of shipping they would like you to use—indeed, just about any question you would like to ask! In addition, e-commerce could enable you to process credit card information on the Internet, as well as take "cyber cash" from customers.
As an information dispensing-and-gathering device, e-commerce becomes a catch-all for using the Internet to conduct business per se. It allows you not only to advertise, market, and sell, but also to keep track of accounts receivables and payables, provide technology support...you get the idea, all from a single source: your Web site.

3. E-commerce can be a fully integrated solution or a technical "front-end" to a business that otherwise isn't wired.
Once you look at an e-commerce solution, you will need to consider the flow of information from your Web site into your back-office operations. Do you want a customer pushing a button to enter data into your client database, send shipping instructions to a warehouse, charge a credit card, enter information into your accounting system, and, for that matter, deliver a cup of coffee to your desk as you sit reading your morning paper? It's up to you to decide how much or how little of the process you want to "go electronic."
Regardless of your approach—full integration, partial integration or no integration—you need to understand the process from start to finish before you proceed. If you don't understand the process up front, you run the risk of designing, redesigning, throwing out, starting over, and redesigning again, all of which is very, very expensive. The cost can range from $200 a month for a simple setup to hundreds of thousands a month, all of which is comparable to the difference between using Quicken versus an enterprise-wide accounting package.

4. The online world has as many e-commerce solutions that suit a specific need as The Body Shop has bath products. If you don't feel you have the data to sort through and choose the best solution, you're hardly alone!
You can lick this problem easily. Work with a knowledgeable person you trust to help you understand not just the technical issues of the e-commerce solution you're considering, but also the business issues. Examples of such professionals include consultants for the Internet, systems integrators, and technology-savvy marketing types.

5. E-commerce is not about technology—it's about your business. While it is tempting to think of your e-commerce solution as something "the geeks need to worry about," don't go there.
E-commerce is a part of how you run your business. It will be expensive to implement and should be seen as an investment. You should exercise the same care that you would use in choosing a 401K provider, suitable office space, your key personnel, or your enterprise-wide accounting package.

The e-commerce decision is one that you, the entrepreneur, have a choice in making. Do you want to conduct your day-to-day business online? If the answer is yes, then you need to work with sales, marketing, finance, tech support, customer service, information systems, network administration, support staff, and the receptionist to make sure you incorporate all pieces of a solution and inform all people about the purpose of the solution.

What It Is, Who It's ForAs the founder of a computer consulting firm, Net Daemons Associates Inc., I used e-commerce when advising clients on its suitability for everything from resume and food delivery to inventory management. Then, in February, when NDA was acquired by Interliant, formerly called Sage Technologies Inc., a major objective for me became helping other companies devise appropriate e-commerce solutions, which is one of Interliant's services.

Bottom line: e-commerce is both a concept and a tool, its whole greater than the sum of its parts. It's for you—if you want it, that is. So before you go down the e-commerce path, make sure you know your goals. And stick to your guns about those goals no matter how sexy the new solution looks behind door number three.

2007-07-17T13:15:00.000-06:00

Four Steps to Getting a Web Site On-line
By Tammy Miller, President, Virtualtech Web Site Design and Promotion

Creating a Web site can be intimidating and overwhelming if you don't understand what is involved. These feelings stop many people from proceeding, which is a real shame as a Web site is a powerful marketing tool and can be a lot of fun.
There are four steps in creating a basic web site, they are:
Step One: Domain Name (URL) Registration-This is the address people will use to access your web site (www.yourcompany.com). Once you have determined that the URL you wish to use is available, the cost to register a name is anywhere from $8.00 to $35.00 per year. A domain name needs to be renewed every year.

When you register a domain name, there are a few things to keep in mind:
· Your contact information must remain current. If your email address is going to change (most often because of changing to a new Internet Service Provider) it is imperative that you change your contact email address BEFORE your old address becomes invalid.
· Use a position (such as "President") instead of an actual person as a contact-this is more stable, in case the person ever leaves the company.
· Make sure your company/organization is listed as the "Organization Name" (the "organization" will be considered the "owner" of the domain name.)
To see if a domain is available, go to http://www.betterwhois.com. For more information about domain names visit http://www.virtualtech.com/news/may2001fa.htm.

Step Two: Design of the Web Site. This is where the look, feel, and content of the Web site are determined and created. Web sites are created using HTML (HyperText Markup Language). This can be hand coded, or a program such as Microsoft Front Page or Macromedia Dreamweaver can be used. Often companies/organizations will hire a student to create a Web site because they know HTML. Just as you would not let someone who has taken one shop class put a new engine in your car, don't have someone with no experience create your site. Your web site will be a reflection of your company/organization. Don't let it be a bad one. Cost for web site design varies greatly depending on where the company is located and what the needs of your Web site are. Designers will either charge by the hour or by the project. If the designer charges by the hour be sure to have a detailed contract as to what they will do and how long it will take.

Tips for hiring a web site designer:
· Visit their web site. Do you like what you see?
· Ask the web designer for examples of other web sites they have designed.
· Get the names and phone numbers from at least three of the web designer's clients. Call them and ask if they would hire the person to work on another project.
· Do they have a contract that outlines the agreement, what they agree to do and what your responsibilities are? Get everything in writing.
· Don't be afraid to ask questions, from cost, to design and search engine placements.

Step Three: Hosting your web site on a web server. This is basically where you rent space on a computer that is always connected to the Internet. Price will vary, depending on the amount of disk space you will have and the connection to the Internet. Be cautious of a free or low cost hosting service, as they tend to be very slow and may put ads on your web site.

When choosing a hosting company here are some questions to ask:
· Does it backup daily? If the server crashes, you don't want to have to recreate your Web site.
· Does it offer POP3 (password-protected) email accounts?
· What kind of tech support is included?
· What type of a connection to the Internet does it have? The minimum connection a Web server should have is T-3 (45 Megabytes per second). A T-1 (1.5 Mbps), or worse yet a cable or DSL connection (0.768 Mbps), is not adequate for the amount of traffic a commercial site will receive.
· Does it support Full FTP (File Transfer Protocol) Access? This allows you to transfer files from your computer to the web server.
· Does it offer web site logs showing you how many visitors your site has, what pages they are going to, how long they are staying, etc.?
· Does it allow for use of forms and CGI (Common Gateway Interface) scripts? This allows you the ability to create a form where visitors can be asked questions or register for meetings.

Step Four: Marketing Your web site. You should be thinking about the marketing of your Web site as it is being designed. The content of the site needs to reflex the search terms you will want your site to appear on search engines. The first step to marketing your web site is to include your Web address EVERYPLACE your phone number appears. This includes brochures, business cards, print ads, etc. In addition, include your Web address on your telephone voice message and email signature.
Your site should be submitted to search engines a minimum of every six weeks. Currently you can submit to AltaVista, Google, MSN, Dmoz, Netscape, and Fast at no cost, while AOL, Excite, HotBot, and Snap are not accepting submissions. Yahoo!, Looksmart, Lycos and Inktomi all charge a fee to review and index your site.
Pay for click search engines, such as Overture, are becoming an essential part of web site marketing. These search engines work basically like an auction. First you determine what search terms you want your site to appear under, now search for those search terms and determine what the bid amount for the position you want is. You then open an account and place your bid. Yes, you can be outbid. For more information on marketing your web site visit www.virtualtechnews.com.

2007-07-10T09:39:00.000-06:00

Keep Web site from getting lost in crowd...

So, You’ve hired the best designers around and pulled out all the stops to build a full service Web site. Sorry to say that’s not enough. Even business owners armed with a fantastic Web site still can feel in visible if they have not taken the next step: generating visibility for the site.

Your goal now should be to pull more prospect to your site and start realizing a return on your online investment. It’s on your online investment. It’s all about visibility. If prospects don’t know who or where you are, you’re sunk. A well-done Web site offer great potential for boosting your business visibility, but with millions of site vying for customer attention, it’s easy to get lost in the crowd.

Search engines are your secret weapons.
They are the key to Internet success for the most small businesses. Millions of people use search engines daily by typing in words or phrases to describe what they want. If your name pops up in the results list at google, Yahoo!, AOL Search MSN, Ask Jeeves or others, the benefits are golden.the art of increasing online visibility is one of the newest marking and Internet skills small business owners have to master. In teach lingo, this is called Search Engine Optimization. To win at this game, you must do three things.

Create the right keywords to describe what you offer.
Organize each page on your site properly to capture search engine attention.
Periodically submit updated information on your site and your business to search engine and online directories.

You can do much of this yourself or seek help from search engine submission service catering to small business. Don’t expect search engines and online directories to fine your site to them. The best way to do this is through a paid submission service. Most such services are effective and inexpensive.
Improve your visibility to the search engine by placing your most important content first in clear, uncluttered fashion. Write titles and descriptions that are clear, factual and less “ Sale Talk.”
If your geographic location is relevant, use it in the description. Some search engines now offer ad programs geared specifically to small, local businesses.

2007-07-06T10:47:00.000-06:00

5 Tips for Domain Naming
By Christine Banning, SCORE VP Corporate Relations

1. Create an online identity. Get a Web domain now, even if you aren't building your site until later.

2. Pick three domain names that fit your business. Your first choice may be taken, so have a few domain name ideas. If your top three picks are available, consider getting all three. It's not too expensive and then you have flexibility to create a site for a special promotion or use a special landing page for an event.

3. Check out domain name vendors. You can register your domain with your choice of vendor. Here are some well-known domain name registrars:
· Network Solutions, "cgi/third_party.cgi?url=http%3A//www.networksolutions.com/"
· Yahoo Domains, "http://www.yahoo.com/"
· GoDaddy, "http://www.godaddy.com/"
· 1and1.com, "http://www.1and1.com/"
· Domaindirect.com, http://www.domaindirect.com/

4. Keep your renewal current. Don't forget to renew your domain name. Businesses have been known to let a name expire and then find that their Web site has disappeared from the Internet. Don't let that be you.

5. Once you have a domain, name your URL mycompany.com, place your URL on every marketing and business document that you produce. Let your company be known.

Brought to you by SCORE "Counselors to America's Small Business."

2007-07-03T15:00:00.000-06:00

How-To Increase the Speed of your Business Website
by Carrie Stappenbacher

OUTLINE
· Introduction
· Images - file types
· Scaling and Cropping
· HTML tricks with images
· Condensed coding
· Flash and other doo-dads - when and when not to use them
· Testing your site - a final and important step

INTRODUCTION
As the famous conceptual metaphor says, "time is money." The Internet, like any other aspect of life, adheres to this concept - as time increases, money decreases. Whether or not a user visits your site is directly related to how long it takes for your home page to load.
Unlike television and other forms of media, the web is highly user-driven. Advertisements on TV cannot be skipped, but on the Internet users choose the companies they would like more information about. That's why it's important that your website be the one they visit - and that is only going to happen with minimal wait time.
After 5 seconds, users get aggravated and push the "back" button, leaving your site and whatever information it might have provided them in the dust.
Of course, you also want your site to LOOK memorable and nobody remembers a straight text page. But, as everyone knows with images and other forms of media, loading time increases. How to find a happy medium? Read on.

IMAGES - FILE TYPES
One of the biggest time-consumers is an image, especially when it is not optimized for the type of graphic that is being displayed. If nothing else, memorize this one phrase:
"JPEGs for photos, GIFs for logos."
Though your graphics program might have many types of file formats for your images, the web loves these two types in particular because they greatly compress the image size. Even with the above phrase, it would be nice to know WHY we use JPEGs for photos and GIFs for logos, wouldn't it?
JPEGs are called a "lossy" compression because information about the image is deleted in the process of making the file smaller. It groups areas of similar colors together and saves it as one part of the file. When you save or export an image as a JPEG, you have a choice on the image quality you would like. For our website purposes, medium or low quality is key. High quality is reserved for print media.

GIF files, on the other hand, contain a palette with a limited number of colors. The fewer colors the palette needs to correctly render the picture, the smaller your file will be. That's why it's great for logos (which are most often black and one other color), or images with a lot of solid areas, like cartoons or clip art. GIF files do, however try to compensate and blend colors using dithering - which makes for larger file sizes.
For example, this photograph of a rainbow from Tony Stone . Saved at the highest quality jpeg, its size is 6.896k, which would take 3 seconds to load on a 28.8 connection. Only the highest quality gif file (128 colors, dithered) can make a comparable picture, at 6 seconds on a 28.8 modem - with double the file size of the jpeg at 15.35k!
Also here for demonstration is the lowest quality gif file - 32 colors with no dithering. Notice how the colors do not blend at all - in fact they appear to be banded. That's because only 32 colors are defining the photograph. Since dithering is turned off, the edges remain defined. Even with this poor quality, it is still larger than the highest quality jpg, at 7.458k!

Just remember that one rule: "JPEGs for photos, GIFs for logos" and you'll be on your way to very compressed graphics.

SCALING AND CROPPING
If you've ever worked at a newspaper, or even on your high school yearbook, for that matter, you have heard of cropping and scaling. You can decrease file size dramatically in photographs by cutting out unnecessary background space (this is cropping).
Scaling, on the other hand, is shrinking or enlarging your graphic. Does it need to take up a whole page, or can it be a tiny version of the original? Graphics that are greatly scaled down (called thumbnails) are often linked to bigger, more detailed versions of the same image.
How to scale and crop? Scaling is easy - in most graphics programs it is in the IMAGE menu -> image size. You can then adjust the height and width of your image by percentage or pixel size. Note here you can also change the resolution of your graphic.
Resolution is how many pixels (tiny dots) per inch define your image. Low resolutions appear grainy, while higher appears smoother. Since computer monitors can display nothing larger than 72 pixels/inch, always go that size or smaller.
Cropping is no harder - using a selection tool (you'll probably want the rectangle tool), box in the part of the image you want to keep, go to the image menu and choose crop, and the unwanted part of your image will be deleted.
Cropping is good if you would like to single one person out in a group photograph - or leave something out (like an ugly background or an ex-lover!).

HTML TRICKS WITH IMAGES
Do you have a graphic that is repeated several times on the same page, such as a bullet defining items of a list? Get psyched, because it only needs to download once, even if it is displayed 20 times on your page! Repeating an image also keeps the look of your site unified, creating a sleeker look.
Have you ever had to wait for an image to load before being able to read the text? Irritating, isn't it? The trick behind this lies in the IMG tag in the HTML code - the WIDTH and HEIGHT attributes. With these values, the browser creates a frame for the image to load in and can continue loading the page's text.
Also note that you can make images larger or smaller by adjusting the WIDTH and HEIGHT values. (Beware: small images scaled larger become grainy, large images reduced make for unnecessary extra loading time)
Another big no-no: linking to images on servers different than your own. Not only is this bad netiquette (servers can get overloaded if many people link to images), it increases your loading time as well.
Each connection to an outside server takes 2 seconds - nearly an eternity as far as we're concerned! So, do the right thing - download pictures and save them to your own server.

YOUR HTML CODE
Although text is small and takes a relatively small amount of time to load, it still should be a consideration in increasing the speed of your website. Every character is 8 bits, and believe it or not, the bits add up quickly.
Also take into consideration the fact that the characters displayed in your browser are not the only ones in your HTML file - there may be thousands of markup characters (those that make up HTML tags) lurking, quite unnecessarily, in your file.
Having:

at the beginning of every paragraph or in every table cell quickly adds extra characters. Please be aware that interface-based website editors such as Dreamweaver, GoLive, and FrontPage (also called WYSIWYG - What You See is What you Get editors) are prone to doing this type of coding.
Another part of your HTML code that can get long is link addresses - take a look at the URLs search engines generate and you'll understand what I mean. On one site it is stated, "AltaVista wasted 4 KB of HTML just to make those "1 2 3 ... 20" links to additional results pages (at the bottom of every results page), mostly because long URLs for queries and button images were repeated 20 times in a row." 4 KB!! Don't be a victim!!
Though it may take some time and effort, it is valuable to learn CSS - Cascading Style Sheets. These prevent "superfluous code" because you can define properties for certain types or groups of data. It's easy to understand CSS if you think of a style sheet as a set of rules that are applied to certain parts of your website.
For example, on a product display page you might have a list of items. Each price can be displayed in green text, descriptions in black, titles in orange - with without typing in or defining the text properties each and every time - making your HTML file shorter, and loading time faster! If you have one style sheet for your entire website, the properties will have to load only once instead of countless times on each page.
CSS also helps in quick remodels of your site. It's easy to change the entire look of your site in seconds. Maybe for Valentine's Day our inventory page could be remodeled to display prices in magenta instead of green.
To do this, the price property in the style sheet would be changed, and the change instantly applied to every price. No more altering each and every FONT tag. The effort is well worth it!!

FLASH AND OTHER DOO-DADS
"I know what will make users remember my site -- I'll have a really cool Flash introduction with awesome animated GIFs! They'll never forget me then!"
Unless your company makes movies, produces cartoons, or is involved in another type of fine art, Flash introductions are a bad idea. Just consider it - users wait an extra five seconds (or more!) to see your company's logo rotate and bounce around the screen to shareware music files.
It may have been impressive a few years ago, but now users want to get to the real substance - what your company does, how much services cost - you know, the good stuff. Remember, in most cases, you're selling a product or service, not a logo.
When is it OK to use Flash?
· In product demos.
· Virtual Tours or anything that needs a spatial feeling
· Games, art, movie clips
· Banner Ads

TESTING YOUR SITE
You've got your GIFs and JPEGs straight. You've cropped, scaled, and CSS'ed your little heart out - and things are looking good. On your computer, at least - but there are many ways visitors will be visiting your site.
If possible, test your site with different connection speeds, with different browsers, on different computers. What seems to be loading quickly on the office T3 connection may be painfully slow on your 56k modem at home. There are an infinite number of ways to get on the Internet. You might have a user who is still on a 386 with a 14.4-baud modem.
A vision-impaired user would have a utility that reads what is on the page to them. Bill Gates might even be viewing your website on a 22-inch monitor, or it might be displayed on a projection screen at a conference! These seem to be extreme cases, but they are certainly possible.

A good way to find bugs your site quickly and easily is through online utilities. Though they aren't perfect, they do check the HTML for any mistakes (though they may not catch your redundant code!), and make warnings if your image files are too large for the average web user. "http://www.netmechanic.com/cobrands/zd_dev/" has a quick and easy to use utility that checks both this and other goodies like browser compatibility and even your spelling!
Be sure to have others use your site, and observe their way of thinking. A variety of users - your 10-year-old son or daughter, a non-technical staff member, and your techie co-worker will all be good candidates with very different views.

Although having your company logo as a link to the home page might make sense to you, it might not be obvious to every user. Usability also affects the speed of your site - if users have to spend 10 minutes trying to find the phone number of your office, it's likely they won't be back again. Keeping your website easy to navigate and fast-loading is one of the keys to having a successful online business.

2007-06-28T07:02:00.000-06:00

10 Ways To Make Your Web Site Work Harder For You
By Janet Attard

Business Know-How You bit the bullet. You set up a Web site because new prospects and existing customers kept asking you for your Web site address. Then, too, there were all those stories you kept hearing about small companies bringing in significant business through their Web sites. So, you paid a Web developer thousands of dollars to put your business on the Web, or spent countless hours of your own time learning enough about the Web and about html to put up the site yourself. But your site's been up a couple of months and you haven't gotten a single sale you can trace to the Web site. What happened? What's wrong? What do you need to do to make your Web site start bringing you business? Here are several tips that will help you fine tune your site to make it a more effective marketing tool.

Sure Your Site Looks Professional:Take a hard, cold look at your site—or ask a friend who will be brutally honest to look at the site. Does it look professional? Are the graphics professional-quality and clear? Are the fonts, font sizes, and font colors used in a consistent way? Or does your site include design flaws like these that immediately mark it as an amateur production:
· Photos that are squeezed or stretched out of proportion
· Multiple elements on the page that are blinking, bouncing, scrolling or turning in circles
· Multiple styles of type used for headlines and body copy
· Colored background graphics or textures that make it difficult to read the type
· Background graphics that are inappropriate for the content of the site (eg.: bubbles on a site selling bookkeeping services)
· Text blocks that are out of alignment
First impressions matter on the Web, just as they do anywhere else. And, the first impression your site makes should be one of professionalism and appropriateness for the markets you serve.

Don't Use the Name of Your Company as the Web page Title:Every Web page has a windows-style title bar. The title that appears in that title bar is determined by what you include in the title "tag" in the html code for the page. You or your Web site designer may want to make the name of your company the title of the page.That's not a good idea, however, unless the name of your business includes a descriptive term that someone looking for your services would search for to find what you sell. The reason: Search engines place heavy emphasis on the words in the title bar. Like the text on your page, the closer the text in the title bar matches the term a Web surfer is searching for, the higher your site will rank when the results of the search are displayed. So, if your company name is non-descriptive and little known, leave it out of the title page, or put it at the end of the title.

Don't Let Your Home Page Be a Flash Presentation: Flash is a technology that allows you to put animated presentations and demos on the Web. Designers love it because it shows off their multimedia skills, to say nothing of increasing the amount they can charge for the site. Business owners often think it makes their site look impressive and make their businesses appear to be on the cutting edge.But, Flash presentations can make your Web page take a long time to load. Search engines don't pick them up, and they often annoy visitors who come to your site for product information or facts in a hurry, not entertainment. If you have a product or service that benefits from an animated demonstration, make that one of the choices on your home page (e.g.: "Watch a demo.") Don't make the Flash presentation the entire home page. And if your products or services don't need an animated demo, don't use the technology at all.

Focus the Home Page & Product Pages on Your Customers' Interests, Not Yours:You're proud of your business and your accomplishments. (As you should be.) So, it's tempting to write a lengthy description of your business accomplishments and run it on your home page with a big photo of yourself, your building and/or your employees, saying, "We're here to serve you." But prospects and customers aren't coming to your site to learn about all the great things you've accomplished. They're coming to your site to find out what you sell and how it will help them. Get their attention with benefits-oriented headline and text. The headline should make clear what you do and suggest a benefit. For example, "Fast, accurate transcription for Monroe County Medical Offices and Hospitals," or "Phone systems that grow with your business." Don't toss out that company information, though. After you interest the customer in your products or services, they may want to know more about your company before deciding to do business with you. So, if the purpose of your Web site is to sell your product or services, make the company information a link off your home page, not the focal point of the home page.

Avoid Clutter Look: If you sell multiple products, you want them all to be found. And if you are being billed by the number of "pages" on your Web site, you may want to keep costs down. But don't try to squeeze dozens of images or product descriptions on a single page. The page will look cluttered and make it difficult for visitors to find the products or information they want.Instead, put small photos of a few of your best-sellers or most representative products on the home page, and then have links to other products in your catalog. Break up the links into logical categories. For instance, if you sell sandals, you might have categories for women's sandals, men's sandals, and children's sandals. If you sell footwear, you might have pages for men's footwear, women's footwear and children's footwear, and then break down each of those pages into categories such as sneakers, shoes and sandals.

Minimize Graphic Sizes to Make Sure Your Pages Load Quickly: Photos and other graphic images make your pages look appealing and help illustrate what you sell. So, they are important to include. But don’t let the size of graphics slow down your Web site. In most cases, images should be thumbnail size—no more than 1 to 1 1/2 inches in size. If a larger image is needed to properly display an item, then you can add a link that says "Click here to see a larger image." That way big images that take a long time to display will only be displayed by people who really need to see a bigger picture.

Be Sure You've Included Important Supporting Information:To turn Web surfers into customers, you'll want to provide enough supporting information about what you sell to make them feel comfortable buying from you. If you sell software, for instance, you'll need information about what platform the software uses, compatibility with other products, system requirements and links to press reviews, if any. If you sell graphic design services, the "supporting information" you need should include a portfolio of work you've done. If you provide consulting services, it would be a good idea to include case studies describing client problems, what you did to solve them and how they benefited as a result. (Be sure to get the client's permission before using their name in this way on your site.) A page with testimonials from satisfied customers is beneficial as well.

Make Sure It's Easy to Place an Order: Imagine how annoyed you'd be if you ran into the supermarket to pick up a container of milk, and couldn't find the checkout counter? Web site visitors are no different. They will get annoyed if they have to scroll up and down or side to side to find a place to order from you. Avoid the problem by keeping pages short and including a buy now button or link in the same location on every page. A good location is just below the text that describes any product or service.

Be Sure Your Contact Information is Easy to Find: Customers not only want to know what you sell and who you are, they want to know how to reach you. They may have questions about the merchandise you are selling, want to know who they can contact if there is a problem with their order, or prefer talking to a "real person" instead of ordering online. Avoid losing sales by including your phone number, store location (if you have one) and phone number on every page.

Share Links With Other Businesses in Your Community: The tips above will help you get found in search engines and help make your pages more appealing to potential customers. But even in the Internet age, business still has as much to do with who you know as what you do. So talk to business owners who sell different products and services than you do, but serve the same market. Help get each others' pages found by swapping links and giving each other referrals.

2007-06-21T12:21:00.000-06:00

HOw to Building Word-of-Mouth ?

Word of Mouth. Generally considered the absolute best form of marketing, this is the kind of advertising money cannot buy. Don't be mistaken, all your marketing and advertising efforts enhance, strengthen, amplify and speed up the word of mouth process, but no amount of advertising can equal positive word of mouth. Referrals Even in today’s media-driven world, there is no better form of advertising than word-of-mouth—a personal referral from someone whose opinions others trust and respect.

Small business owners are among the biggest beneficiaries of word-of-mouth referrals, as they require no advertising and marketing budget. While you cannot always control how and when referrals come about, there are many ways to start and sustain a positive buzz about your business. We’ll show you how to attract high-value, low-cost word-of-mouth referrals.

Think of it this way: advertising helps to get you a place at bat, but once you step up to the plate, your performance determines whether or not your business is successful and earns a favorable reputation. When you are pleasing people with your business, going above and beyond, people will recommend you to their friends, family and acquaintances. These people then sample your services, and tell more people and so on.

Recruit Cheerleaders:Build a team of supporters for your business—friends, family members and colleagues who routinely talk up your business to their friends and acquaintances. Make sure that they know enough about your qualifications and capabilities to make an accurate and convincing case to others.

Network, Network, Network :;Get involved with professional associations related to your industry or field. You’ll get to know experts and colleagues in your specific market. And, they may know of immediate or potential opportunities for your business. Other good networking opportunities include local or regional business associations, Chambers of Commerce and non-profits aligned with your field.

Capitalize on Your Current Customers: At the conclusion of all successful projects, thank your customers for their support and express your interest in working with them again. Also encourage them to pass along your name to others. If your operating budget can handle it, consider offering discounts for customer referrals.

Become a Knowledge Source:Take advantage of opportunities to show what you know by offering free presentations or articles on timely issues to business, professional and community organizations and publications. Make sure that your presentation/article is relevant to listeners’ interests, not a thinly veiled commercial for your business.

Keep in Touch:Don’t wait for customers to call you. Contact them from time to time to see how things are going, personally and professionally; what issues or trends they’re dealing with; and perhaps alert them to an event, article or Web site that may be of interest. Also consider issuing a newsletter to current and prospective clients with relevant news, tips and other information that can help their business, or simply brighten their day.

Give as Well as Receive: Every small business should have a network of colleagues and associates to call on to handle excess workload, or provide service or experience you may not have. These relationships almost always result in “reciprocal referrals” to you.

Do a Good Job:There’s no better source for a positive referral than a happy customer. And remember that the quality of your service says as much about you as the quality of your work or product. Responsiveness, the ability to help out with tight deadlines, and a willingness to do those all-important “little things” (e.g., working in small jobs for no charge) builds goodwill and a good reputation for your business.

Brought to you by SCORE “Counselors to America’s Business.”

2007-06-16T13:15:00.000-06:00

How-To Create A Company Logo
Logo: At The Core Of It All

Logos? What does an apple have to do with computers? Nothing, really. Except of course its role as one of the most recognized logos in the technology industry. Out of the thousands of icons, identifiers and graphic elements that we see every day, only a select few – like the apple - stay with us. While such logos may appear to have no connection whatsoever to the company’s line of work, there is usually a story behind successful symbols. So, how did this marriage of fruit and technology come to pass? It wasn’t irradiation. Company founders thought the apple to be the perfect fruit and their technology the perfect computing solution.
Whether you are just deciding on a business name or are considering updating your identity, there are some key steps to designing a new logo that will serve as an effective communications tool.

Setting The Stage

1. Assemble a Brainstorming Team. Within every business there are key players who understand (we hope) what the company's vision, products, services and goals are. These individuals should take part in a brainstorming session that will drive the logo design process. If available, suggested participants include leadership from Marketing, Human Resources and Operations (try to keep the Finance guys and gals out of this one).
This group should not be a democracy. Everyone's input is critical to developing the final product, but only one decision-maker is required. Pick one (usually the CEO) and stick with his/her decision.

2. Brainstorm Ideas & Discuss. Here are some topics to address in the brainstorming session:

· Name some adjectives that you would use, or like to use, to describe your business. Some answers might be: progressive, traditional, cutting-edge, global, fast, organized, reliable. Depending on your response, the style of your logo will vary. A finance company rooted in a strong history of tradition and stability might want to choose soothing colors, straight lines and subtle textures, while, a new Internet start-up poised for rapid growth and technological advancements, may go for bold colors, sharp contrasts and oval shapes.

· Talk about the vision for the company. You might ask, Are we moving into International markets? Are we adding new product lines? Will we need to use the logo in context with subsidiaries or partners?

· Discuss your target market. Who are our customers today? Who will be our customers tomorrow? Discuss the image your company projects and your employees. Who are our employees? What distinguishing features do we look for in new hires…entrepreneurial, reliable, educated, experienced, friendly?

· Pinpoint what makes your company different. What separates us from the competition?

· Identify how you want your company to be perceived, and how you want customers to feel. What emotions do we want to evoke from people who look at our logo? Do we want to make them feel curious, safe, excited, happy, uneasy, beautiful?

· Discuss how this logo fits into your overall branding strategy. Make sure the logo fits in with the other materials, communications and creative outlets you are using, and that it fits with the overall spirit of the company.

3. Record the Ideas. Carefully record all the answers to these questions. Go back and highlight the items and comments that seem cohesive, complementary and repetitive throughout. After all these questions are answered, you should have a clearer idea of the creative direction you need to take.

Who Can Help?

4. Decide Who Will Create the Logo. Don't be fooled into thinking that only a big fancy New York or Los Angeles agency with shiny offices can facilitate your design process. If the brainstorming session is conducted and recorded effectively, many good local designers can turn your ideas into exciting and communicative art that represents your business. If you absolutely don't know where to start looking for a designer, the American Association of Ad Agencies has a web site that is searchable by location, as well as many other criteria: "http://www.aaaagencysearch.com". If you are not comfortable with facilitating the brainstorming session yourself, make sure you select an agency that has significant branding experience. This will cost more than simply working with a designer, but can result in a more successful product.

How Much For A Detail?

5. Consider Price and Design. Missing out on some important details can cost you a lot. In evaluating designs and creative direction, remember that printing companies charge for every additional color While one-color logos may be too bland, and four colors say WOW, two colors, when utilized effectively, can create a high quality look at a fraction of the cost. Don’t let designers talk you into too many colors, varnishes and extras that will take you to the cleaners every time you need something printed. Choose a design that will also look good in black and white and ask for an original black and white version. You will find that many internal company communications and other high volume projects may be too costly in color, and they will reproduce significantly better with original black and white art.

6. Consider Overall Marketing Strategy. Also, remember the types of materials your logo will appear on. One design may look great on an envelope, but how does it look on a T-shirt, a baseball cap, or some golf balls? If you sponsor a little league team, how would the parents feel about your brand being on their child’s back? What about business cards? Take special note of the text sizing. When combining large and small typefaces, make sure the ratio is close enough to accommodate printing in small spaces. At a certain size, does the small text become illegible? If so, you may need to rethink the layout.

Looking Good

7. Make Sure You Can Use It. Once you have selected a name and design, you will want to conduct a "How_to_understand_different_types_of_trademarks.htm" search to ensure that no other organization is using the same name or symbol in connection with a similar business. More information can be found about trademarks and service marks at the United States Patent and Trademark Office. Finally, you are ready to go! Remember, a logo is only part of your overall branding strategy. "A brand without a personality, not unlike a person, lacks friends and may be easily overlooked." – David Aaker

2007-06-13T12:23:00.000-06:00

Is the Market Research Important? The Answer is Yes....
Market research is "the study of the probable users of a product or service." The object of any business is to identify potential customers so that they may be addressed and informed. Market research can tell you who is interested in or in need of your product or service, what their income level is, where they live, their age, their occupation and so on. Conclusions from this data can help you to identify your target market. Once you know who these people are, you can then begin to tailor a marketing campaign.

Not long ago, businesses of every type would hire outside firms to gather such data. These firms would conduct surveys, place phone calls and wait weeks for information via mail. Today, you can do it yourself, nearly instantaneously: it can all be accessed at the click of a mouse. The world we live in offers numerous outlets from which to gather your materials, from the library to the Internet. Market research is always changing too. Customers' needs shift with the world around us. You have to know your clientele and get to know your prospects, and address both. Thus, it is important to stay in touch with what your market dictates.The following is an introduction to understanding market research, from the various sources from which to gather information to the specific types available. Once you have assimilated this information you will be prepared to conduct the research needed to help your business grow.

Types of Market Research
There are two main types of market research that businesses conduct in order to make more qualified decisions on topics such as advertising, improving service, introducing new products, pricing, etc.

Information About Your Consumers. Obviously you must know who is interested in your goods or services. This begins with demographics. Study the region where your business is located. What's the population? How does it break down by age, gender, income, vocation, marital status, and anything that might be relevant? Take into consideration other factors: Is it a warm weather climate or generally cold? Are people fairly active? Is it a conservative area? What do the residents do for leisure? How much money is generated through tourism? Is it an industrial region? Get to know these people. Find what makes them tick.
All of these things will clue you into whether the population in question needs what you are selling and what their interests are so that you can address these needs.

Information About Your Competition. Do your homework? Find out how many other businesses there are like yours, offering similar goods and services in a fifty-mile region. Study the literature of these businesses, i.e., their brochures, advertisements, press materials, and most importantly their website. Is your pricing competitive? Do you offer the same quality of goods? Who are they targeting with their advertising? What kind of promotional offers are they making? Capitalize on other people's successes and failures. Learn what is working for them and what isn't. This data points to trends in your market. By staying on top of these trends you will be better equipped to forecast what will work and know what will not. No matter what size your business is, you can benefit from this.

Terminology
Many factors come into consideration when fleshing out your prospective market. The World Book Encyclopedia defines prospecting as "the process of identifying possible customers, who are called prospects." In determining your target market, it is essential that you look for individuals who comply with a list of prerequisites: the need for your goods and/or services and the buying power to do so.

Prospects. The group of individuals who make up your target market. These are the people most likely to purchase your goods or services. They meet some or all of your general prerequisites. They live near your business, have the means to buy, and possess the common need for what you're providing.

Preferences. It is likely that your target market has its own list of preferences dictated by region. The income of the area, climate, location, and economy. For example, if you are in a predominately wealthy area, you might want to sell a more upscale item.

Buying Habits. Study past buying records of your target market. What did they purchase in the past? Why did they make this choice? This information is invaluable, as it will help you to set your pricing and appeal to them with your advertising and promotions.

Attitudes and Opinions. What are the prevailing views and notions regarding your business, your competitors, the goods and service you offer amongst your target market? Wouldn't you love to know? Sure you would. By finding out more about your target market, you can begin to divine this information.

Sales Trends. A trend is the general course or prevailing tendency; what the majority of people are doing or buying. What is working right now? What is selling? What are your competitors having success with? What is selling in the rest of the nation? Do what works. Find what the trend is and capitalize on it. Make it work for you.

Forecasting. This is the attempt to determine what the next trends will be. This is, it is trying to determine what the market will dictate six months from now. What will your target market be buying next summer and why. The only way to do this is to stay on top of things, stay informed.

Demographic Profiles. The raw data concerning your target market: median age, income level, marital status, number of children, education level, location of residence. General information about them so that you may know who they are, what they are interested in.Regional Statistics. These differ from demographic profiles in that regional statistics contain broader information about everyone in the region, not just your target market. In the long run, studying this information can help you expand your market.

Degree of Demand. Information that identifies the need of your goods and services to your market. Is the market already saturated? Is there a need or desire for your goods and services in this particular region? For example, the region of Southern New Mexico rarely gets any rainfall, less than 10 inches a year. Thus, you probably aren't going to be able to sell these people too many umbrellas.

Purchasing Power. The factors that make up the purchasing power of your target market include age, income level, and their number. Are you hitting a large group or a minority? Is your target audience wealthy? Concerns like these determine the target market's purchasing power. For example, the target audience which is middle class, ages 12-24, has strength in numbers and collectively a lot of money to spend - all factors that add up to great purchasing power.

Brought to you by SCORE “Counselors to America’s Business.”

2007-06-08T12:32:00.000-06:00

How-To Understand Marketing?

Since the dawn of mankind, all business and commerce has involved marketing in some form or fashion. All of us are involved in marketing on a daily basis, whether we are applying for a new job, asking for a raise, trying to sell our car, or placing a classified ad for a litter of puppies.
First, you are selling yourself. You want to convey to your target audience that you can be trusted, that your promises of satisfaction are grounded. The product must be packaged and presented appealingly as well. All of these elements play a pivotal role in the consumer's decision-making process

The World Book Encyclopedia defines marketing as "the process by which sellers find buyers and by which goods and services move from producers to consumers." Sound marketing, from concept to delivery, is the main ingredient in any successful business endeavor.
In fact, approximately half the cost of everything you purchase can be attributed to marketing expenses by the producer and/or seller of the goods or services. Some believe the major costs incurred by marketing are a superfluous expense. Experienced marketers, however, would tell you that this is naive, uninformed thinking.

Marketing is an essential investment on the part of the manufacturer or seller. The marketplace is saturated with so many goods and service that hundreds of businesses across the country file for chapter 11 every day. Thus, businesses of every sort must do everything possible to spread a highly persuasive message to the public. They must strive to keep the consumer informed on what they offer and separate themselves from the competition - the key roles of any well-planned marketing campaign. In addition, national studies show that the marketing process is just as beneficial to consumers as it is to manufacturers and sellers.
We as consumers have a wide variety of products and services from which to choose. Marketing keeps us informed, helping us to make a qualified, sensible decision.Those selling and manufacturing goods and/or services have to make the public aware of what they are offering. On the same token, the wants and needs of the public must be met for any business to survive and thrive.
Remember, successful marketing begins when you see everything you do from your client's point of view and act on this. Let's now take a look at the components and basics of marketing. Marketing involves every aspect of business from the manufacturing of a product to actual point of sale.

Product Development & Manufacturing. Before any manufacturer produces goods of any kind, they must first conduct extensive market research: find trends in the market, study what the competition is doing, and, basically, see what works, what the public wants. Market researchers analyze the market, create a client profile, try to zero in on their target market, and then build products to meet these demands. Conventionally, this is done by tracking actual purchase behavior. Once market research has been performed and manufacturers have a better idea what consumer need dictates, they are prepared to develop and manufacture the goods sought-after by this segment of the population. Manufacturers constantly develop new products, alter existing ones, and discontinue ones not selling in an effort to cater to consumers.

Promotion. Promotion is generally defined as advertising and publicity in one or more of the mass media, as well as forms of direct marketing. Effective promotion uses mass media, direct approach marketing and other variations to clearly communicate a sales message.Promotion is the single best way of introducing a new product to the public at large. And along with quality and good service, it offers a way of generating and enhancing word of mouth, which is widely considered to be the most powerful marketing vehicle. The ultimate goal of any promotional campaign is to reach and add to a target audience. This is implemented on both the manufacturing and retail levels.

Merchandising. This is the area of the business in which the goods are made available to the consumer in retail stores or mail-order services. For example, a major corporation manufactures a style of sneaker, which they advertise on a national level. Mike's Shoe Tree, a small establishment on Main Street in Chug water, Wyoming (yes, a real town) carries these sneakers.Mike must let his community know that he is a supplier of these goods, then sell them agreeably and at a reasonable price. Mike is the merchandiser, the middle man between the manufacturer and the consumer. Whether we're talking about Mike's Shoe Tree or Macy's, both are involved in the merchandising aspect of marketing. They choose goods from a host of manufacturers to suit the needs of their clientele.

Market Research. The object of any business is to find who potential customers are so that they may be addressed and informed. Market research can tell you who is interested in or in need of your product or service, what their income level is, where they live, their age, their occupation and so on. Conclusions from these data can help you to identify your target market.
Once you know who these people are, you can then begin to tailor a marketing campaign. At the same time, marketing research guides the market, informing manufacturers and sellers what consumers are interested in, what their needs are so that these may be supplied. The results of researching the market influence every step of marketing which follows. It is also important to update research with a changing society.

Presentation. Showing your store and its products in the best possible light is, perhaps, the single most important process in the marketing of your business. It is the aim of any business to build a reputation for quality, service and reliability.Many elements go into this. Everyone who represents your company must be accessible, confident about the business, and knowledgeable regarding products and services. It means not only being a recognized authority, but also being willing to help the customer, answering questions in an agreeable manner and trying to help them find what they need. It also means displaying the product in an exciting way.

Think of department store window displays or any type of in-store promotional set-up. Once you have the customer in the store, the attractiveness of your goods will assume a vital role in the success of a sale. The POP - point of purchase - describes the common practice of having your merchandise displayed in key areas - i.e., at the cash register, near the entrance, etc. - to encourage a sale.

Advertising. Formally defined, advertising is the presentation in some medium of communication in order to induce the public to buy; or to call public attention to something. It is the type of promotion that you have paid for. Usually, you pay for the creation, the airtime or space (e.g., a billboard), and any other incurred expenses. Advertising gives a business the luxury of selecting the proper medium, controlling the content of the message, and the frequency at which the ad will run. These options allow any business to focus in on a specific audience in order to reach their target market.
A successful advertising campaign can increase business to such a degree so as to easily make the cost of it seem minuscule. This is why many business rely on industry professionals with tried and proven track records to create and place their ads.

Pricing. The retail price of any item or service is determined by the following: unit production or overhead expenses, the cost of manufacturing the item, packaging, and transportation.For any business to survive, there must be a margin set for profit. The manufacturer makes a profit when they sell the goods to the retailer, who in turn marks up the item to make a profit from the consumer. In each step, all expenses must be covered. The price paid by the consumer is what it costs to produce, package and transport the item, plus all markups along the way. Pricing can be a powerful tool in a competitive market. A business can emphasize a bargain by slightly undercutting competition, or they can stress quality by a slight increase.

Packaging. Packaging combines elements of advertising and presentation. It is usually the outer casing in which goods are contained. It should be pleasing and catching to the eye, and informative and indicative of the contents.
It should also sell the goods, extolling the merits and virtues of the product and presenting them in a pleasing and intriguing fashion. Take, for example, toothpaste. You go into your drug store in search of a tube of toothpaste and are confronted by literally dozens of products from which to choose.
None of the manufacturers can afford for their product to become lost among the shelves. An extreme example of packaging-gone-wrong (and poor market research) is Gerber baby food's marketing campaign in Africa.
Because of the high rate of illiteracy in many areas of the continent, packaged food generally carried a picture of the contents (i.e., carrots, peas, Spam) on the outside label. Gerber's trademark smiling baby not only scared off customers, but also made many Africans reconsider just how civilized American citizens are.

Customer Service. When other stores sell the same or similar items at comparable prices, the service becomes the primary focus. This involves and emphasizes trust and friendship. Once a client trusts you, they will depend on your business and even refer you to friends.
This is the beginning of the formation of a client base, and involves everything from employing a helpful, knowledgeable, pleasing sales staff to offering post-sale services such as guarantees, warranties, and follow-up service.

Direct Marketing. This is a one-on-one approach to advertising in which a potential customer is contacted in an effort to sell or inform. Direct marketing can take on such forms as telemarketing, direct mail (sales correspondence, flayer's, catalogs, brochures, etc.), and personal visits. It has the built-in advantage of allowing businesses to target specific consumers, while offering a more personalized approach.

Publicity. Advantageous publicity is generated by how you present yourself to the public. Basically, this is news coverage by one or more of the mass media amounting to free promotion, although you generally will not have control over the content

Brought to you by SCORE “Counselors to America’s Business.”

2007-05-31T13:08:00.000-06:00

Buying a Small Business—Facts All Potential Business Buyers Need To Know
By Peter Siegel, MBA
"http://www.usabizmart.com", http://www.bizbuyfinancing.com/

Here are the facts—80% of all business buyers never end up buying a business. Many factors contribute to this statistic, but by following the points below, you should be successful in locating and buying a business that interests you and completing the transaction.

Identify the Types/Sizes/Locations of Businesses you Want to Purchase
Before you start calling/contacting business brokers, owner/sellers, and agents make sure you know what types, sizes, and locations of businesses you are looking to buy. If you seem uncertain about your search criteria, brokers and agents will not spend a lot of time with you. There are many more buyers than sellers on the market and brokers/agents and owner/sellers like to work with buyers, who are serious, motivated, and know what they are looking for. Have available and send/fax/email to potential sellers and brokers/agents an Acquisition Criteria sheet that goes over your current search criteria—it pays off and shows you're serious.

Know how much Money you are Willing to Put Down
When buying a business you need to know how much money you are willing to spend on a down payment for a business. Most of the time you will be putting down 30-100% down to buy a business. Depending on the amount of money your willing to put down determines the size of business you are able to purchase. Also know in advance if you would be willing to pledge the collateral in any real estate you own for a note the seller may be taking back in the deal—this will save you a lot of time in the search process and in negotiations.

Know Where the Down Payment/Purchase Money Will Come From
Money for a down payment or purchase can come from many different sources. They are: cash on hand in savings, pulling equity out of your home, your retirement funds, SBA loans, seller financing/note. Knowing where and what you are willing to do upfront will save you a lot of time in the search process. You definitely want to get pre-approved/reviewed for SBA loan and other financing options before you write any offers—you need to know what your financing opportunities are early in the process of buying.

Keep the Negotiating & Communications Moving Forward
Remember: Time Kills Deals. Make sure when you are negotiating the contract, allocation of purchase price, new or restructured lease, etc. always be moving forward. Don't let any situation sit too long—it will most likely kill the deal.

Non-Disclosure, Confidentiality Agreements are Important
To view or get any detailed information on any businesses for sale you will probably need to sign a confidentiality agreement. Respect this part of the process and keep the sale of all businesses confidential. There are also legal ramifications if it is traced back to you that you were the one who leaked the word that the business was for sale.

Professionals Should Be Lined Up Before you Sign a Contract
You will be utilizing many professionals to buy a business. Make sure you have a CPA or Due Diligence Consultant to help you look at the financials and paperwork of the business to make sure it is in order. You will also possible need financing (a loan for the purchase), escrow services, an attorney to review contracts and possible other services to assist you in the buying of your business.

Make an Offer if you Like a Business – Get the Process Started
A majority of business buyers are too timid when buying a business and are not willing to "pull the trigger" and sign a purchase agreement to start the process of buying a business. Many serious buyers lose out on great deals because they're too analytical or pensive about writing up an offer. Writing up an offer also usually "locks out" other potential buyers (your competition) for a period of time so you can take a look at important business records and info.
After signing the purchase agreement there will be a Due Diligence period with contingencies that will have to be met before the deal is closed. If those contingencies are not met or the books and records are not exactly as represented you are in most instances able to pull out of the deal and go on searching for other businesses—make sure you have all contracts/agreements reviewed by an attorney before signing.

Get the Signed Purchase Agreement into Escrow
Get the signed purchase agreement into escrow immediately and sign off any contingencies as they are removed. Remember: TIME KILLS DEALS. Make sure you go through the Allocation of Purchase Price in the beginning of the escrow process not at the end which happens most of the time. By getting into the escrow process usually takes the deal out of play and out of reach for other potential buyers.

2007-05-29T14:13:00.000-06:00

Side-Step The Big Business Branding Techniques !
by: Corey Rudl

Are you a lot of confusion surrounding the topic of branding? Nike, Coke-Cola, Budweiser, McDonalds, Levi's, Amazon om, these are the branding masters. Now the question is, HOW CAN YOU MODEL THEIR SUCCESS? These days, online branding is being preached as one of the big "Do or Die" marketing strategies. So everyone wants to brand their e-business -- but no one is exactly sure what branding is, how it's done, or where to start.What is branding, anyway?

Branding is about building a COMPELLING ASSOCIATION between...
A) Your company, your logo, your products, etc. And
B) An image, an emotion, or a memorable message that embodies -- implicitly or explicitly -- the BIGGEST BENEFIT you have to offer your customers. Effective branding creates the kind of FIERCE PRODUCT LOYALTY that leaves customers indifferent to the marketing tactics of the competition. It's what compels you to walk past all of those no-name- brand on-sale colas at the local grocery store and pick up the 6-pack of Coca-Cola that costs three times more. It's what makes children plead and beg to go back to McDonalds again and again. And it's what has made the phrase "Just Do It" synonymous with Nike. Say "Amazon.com," and people think of "The Earth's Biggest Bookstore." Go to Burger King because you can "Have It Your Way." Buy Energizer batteries because they "Just keep going, and going, and going." And "When you care enough to send the very best," send a Hallmark card. But the slogans and taglines are only part of it. Think of the Hallmark commercials. These tearjerker mini-dramas are built around love and family values, ending with someone showing they "care enough" by giving a loved-one a Hallmark card. THEY EVOKE STRONG EMOTIONS THAT DRIVE THEIR SLOGAN HOME. And think about the Nike logo -- the "Swoosh" that represents the wing of the Greek goddess Nike, the personification of victory.

While it's probably safe to say that the majority of people are unaware of its mythological significance, THEIR LOGO HOLDS JUST AS MUCH MEANING AS THEIR NAME. It's all very impressive, right? Well... yes. But before you jump on the bandwagon, let's take a realistic look at the "big branding picture" to see where your small or home-based e-business fits into this.First, let's debunk the THREE MAJOR BRANDING MYTHS I frequently encounter...

MYTH #1: I need to make my company or product a household name.
TRUTH: You'll be most successful and most profitable if you CLOSELY TARGET YOUR MARKET! Focus on getting your business name and your advertising in front of your best potential customers -- the people who have an expressed interest in what you're offering -- as opposed to everyone!

MYTH #2: Branding my business online means buying thousands of dollars worth of high-visibility banner impressions.
TRUTH: Banner advertising just isn't as profitable as it once was. Ads that once pulled 5% to 10% click-through are now lucky to pull 0.6% to 0.8%, if even that.You'll be far more successful if you focus your limited advertising dollars on more performance-based advertising. Pay for customers... not overpriced, unproven advertising.

MYTH #3: I'll need to spend a lot of money if I want to gain brand recognition.
TRUTH: There are plenty of free and low-cost techniques that you can use to brand your e-business.If you're a small or home-based business then, chances are, you don't have the millions of advertising dollars it takes to build a nationally recognized brand and make your company a household name -- at least not yet!So let's SKIP THE HIGH-PRICED LARGE CORPORATE BRANDING TECHNIQUES that I'm seeing pushed everywhere I look... -- after all, these strategies simply don't translate to e-businesses with limited advertising budgets -- ... and instead, let me give you some practical information.

COST-EFFECTIVE BRANDING TECHNIQUES THAT YOU CAN START USING TODAY:

1) DEVELOP A STRONG UNIQUE SELLING PROPOSITION: Imagine yourself sitting across the table from your best potential customer. In one sentence -- one very short sentence -- clearly communicate how he or she will benefit from doing business with you.Your message should be clear, the language simple, and it should be easy to remember. There's no room for wordy corporate mumbo jumbo here. I know this is a pretty tall order... but your hours of agonizing, writing, brainstorming, and rewriting will pay off in the end. This will be the message that your market will identify you by and associate you with.

2) TARGET YOUR MARKET: The beauty of running an online business is that you can reach literally hundreds of thousands of targeted potential customers all over the world -- people who want to buy what you're selling -- for little or no cost. It's what has made it possible for small and home-based business owners like you to take the Internet by storm and MAKE OUTRAGEOUS PROFITS WITH VERY LIMITED ADVERTISING BUDGETS.
Why would you turn a blind eye to this CRITICAL ADVANTAGE by spreading your limited advertising dollars across the entire web -- trying to sell your product to everyone -- instead of focusing on those people who want to buy from you? It just doesn't make sense. So I know I've already mentioned this, but it's worth saying again. It's ABSOLUTELY CRITICAL that you target your market.

3) WHENEVER POSSIBLE, MAKE YOUR MESSAGE INTERACTIVE If you can compel people to actively engage your marketing message rather than passively hear or view it, you'll dramatically increase the probability that they're going to absorb it, remember it, and repeat it. One of the best ways to make your marketing message interactive is through VIRAL MARKETING. To read a previous Marketing Tips article that explains exactly what you can do to make your marketing message viral, visit... http://www.marketingtips.com/newsletter/issue33/page1.html

4 ) BE CONSISTENT IN VOICE, FORMAT, AND DELIVERY In order to engrave your brand in the minds of your target market, you need to consistently repeat your message to them...* DESIGN A SIGNATURE FILE that contains your message and attach it to the end of every e-mail you send. It costs you nothing and it's an easy, effective way to repeat your message to those people you have direct contact with -- your best potential and repeat customers! * Your web site design, logos, and graphics should, if possible, VISUALLY EMPHASIZE AND REINFORCE your message. Check out the McDonald's web site at http://www.mcdonalds.com/. Does that yellow and red look familiar? Think about how you can similarly use your web site design to further impress your brand in the memory of your visitors. * Your NEWSLETTER CONTENT AND YOUR WEB SITE CONTENT should all ultimately contribute to your marketing message. There is no room for distractions like articles or links that don't move you towards your main goal (to sell your product, remember?).

5) NURTURE EXISTING RELATIONSHIPS WITH CUSTOMERS AND SUBSCRIBERS If they already know you, if they're already familiar with who you are and what you do, if they've already bought something from you, then you should be building on these existing relationships. MAINTAIN REGULAR CONTACT VIA E-MAIL (it's free!), and consistently remind them who you are, what you do, and most importantly, how they stand to benefit from continuing to do business with you. If you play your cards right, not only will you PROFIT FROM THEIR REPEAT BUSINESS, you may also persuade them to "spread the good word" to others with similar interests.

6) BE VISIBLE TO YOUR BEST POTENTIAL CUSTOMERS A big part of branding is obviously about getting your name in front of your best potential customers, so that when the time comes for them to buy, THEY'LL CHOOSE YOU OVER THE OM PETITION! Here are a few powerful ways that you can do this...* WRITE ARTICLES that contain information that will be of interest to your target market and then offer them to industry newsletters and web sites free of charge. Web masters and editors will appreciate the free, quality content, and you'll get your name and URL in front of your target market.

* PARTICIPATE IN NEWSGROUPS AND DISCUSSION FORUMS where your target market hangs out. This is an easy, no-cost way to develop your reputation as an industry expert. Simply make yourself available to answer questions and provide participants with information that they will value.* SUBMIT YOUR WEB SITE TO THE SEARCH ENGINES AND DIRECTORIES. Also be sure to search for directories that are geared towards your industry and request a listing. *

REQUEST LINKS FROM SITES WHERE YOUR TARGET MARKET MEETS. This is not only a great way to increase your visibility, it's also an extremely powerful way to attract large volumes of highly targeted traffic -- yet it's frequently dismissed or overlooked!

* USE BANNER ADVERTISING - IN MODERATION! With well- designed banners and a targeted ad campaign, you CAN make money with banner advertising. Just be sure to educate yourself on the latest, most cutting-edge banner techniques before getting started.To read an article on designing effective banners that really work, visit... http://www.marketingtips.com/newsletter/issue35/page1.html* START YOUR OWN AFFILIATE PROGRAM. With your own Affiliate Program, you can enlist an army of affiliates who will spread your name and your marketing message across the web -- and you don't pay them a cent until they make a sale.To read an article on how you can start and profit from your very own Affiliate Program, visit... http://www.marketingtips.com/newsletter/issue19/index.htmlDON'T LOSE SIGHT OF YOUR ULTIMATE GOAL:

With branding being hyped as one of *the* marketing strategies to pursue right now, I worry that some of you may be steered off-track. While it's a good idea to be aware of and actively direct how your e-business is being branded, remember that there is a key difference between creating awareness and actually closing sales.Given the innumerable marketing strategies that you can use to simultaneously create brand awareness AND draw targeted traffic to your web site, there is no reason for you to be spending your limited advertising dollars on branding techniques that don't return a significant profit.Avoid being sucked in by the myth that the entire web needs to know who you are. Focus on your target market and realize that most forms of traffic generation ultimately enhance awareness of your brand. You are spelling out your brand message, directly and indirectly, with everything that you do, say, and sell.

2007-05-28T14:07:00.000-06:00

Branding For Your Business
by: Phillip A. Ross

Often the more a thing is discussed the less it is understood. Words have a point of diminishing return. That point is crossed when the effort to be clear and precise counts every tree standing, but misses the proverbial forest. Such is the case with branding. Because the idea of branding is all the rage, people are tempted to think that it is a new idea. It is not. It’s roots reach back into history.

The Old West
Let’s go back to the Old West where brands were burned into the hind quarters of cattle. The thing branded was the cow, the product produced by the ranching endeavor. The brand itself was the twisted iron logo on the end of the rod that left its image or mark on the hide of the cow. Cows were roped, tied and branded in order to identify them, should they be stolen. The brand was a mark of identity, as it is in the corporate world.Some ranchers also used their logo as a welcome sign wrought in iron over the gates of the corral or over the road leading to the rancher’s home. Again, the brand identified the ranch. Some ranchers even got their cowhands belt buckles with the ranch logo to identify them as employees. And over time logo ed merchandise began to pop up on boots, hats, shirts, etc.

Identity
The brand is essentially a mark of identity. It identifies the ranch or company, and has come to represent or suggest the values and character of the company, and of its leaders. The brand is associated with the character of the company, as well as its products. The early history of branding was always personal. Where does the ranch or company get the values and character that are associated with it? From its owners and leaders, and from their business practices. Branding as we know it today is the art of instilling and communicating the values and character of a company or organization through association with its logo. Psychology calls it symbolic association, and finds it to be foundational to the learning process. Symbolic association has deep roots in human experience and in history.

Fish, Cross & Swastika
We find that branding as a practice began very early in history. The sign of the fish and the cross were symbols used by the early Christians. Over time they became Christian brands.It must be recognized that a branding effort does not always turn out the way the campaign intends. The cross was intended to be a symbol of derision, but became a symbol of grace and mercy. The Swastika was intended to be a symbol of the triumph of the Arian race, but has become a symbol of evil. In both cases branding was achieved, but not in the way intended. Of course, companies want the emotional association to their brand to be positive—even to generate an urge to splurge, or trust sufficient to sustain a transaction. But regardless of one’s personal reaction to a symbol, the fundamental mechanics of branding involve soliciting an emotional response to a symbol.There are two fundamental elements in the branding process. The first pertains to the symbol, the second to the association.

The Symbol
The symbol itself must be familiar. The more the symbol or logo is seen, the more familiar it becomes. The most successful branding campaigns will have a lot of sustained media coverage and use a variety of advertising mediums. This does not mean that smaller campaigns cannot be successful, only that their success will be smaller. Familiarity is primarily a function of exposure.

The Association
Secondly, the emotional content of the association also needs to be familiar. Of course it is true that new desires and/or emotional content can be created. But the effort is both time consuming and risky. The result might be other than the desired effect.The more successful method for creating a symbolic association employs well-established and widely valued characteristics, like love, honor, truth, freedom, etc. Successful branding campaigns establish symbolic associations between their products and/or company and such noble characteristics. What is noble inspires people, and what inspires is remembered and discussed. It creates buzz. And buzz is branding’s engine.To discuss the art of branding apart from these foundational elements is to miss the forest for the trees. However, branding is more than a mere advertising campaign can accomplish because the symbolic association that needs to be made for the branding to be successful involves the core values and character traits of the company— its leaders and its business practices. Prior to branding, core values, character issues and company policies need to be determined, developed and deployed within the company. Because the process of branding reveals the values, character and policies of the company, those things need to be right, and be in place before they can be successfully revealed.

Premature Branding
A premature revelation of these things can be disastrous to the intention of the branding campaign. To be branded as hypocritical and shallow is worse than no branding at all. Again, branding occurs when an emotional response—any emotional response— is associated with a company symbol. The art of branding is to solicit the right emotional response.So, what can be done to promote a brand? Begin by working to establish core values and character within and throughout the company. To be successfully branded is to be known widely for who you are. You want a great branding campaign? Be a great company. Aspire to the values and character traits of greatness and nobility. Herein lies the key to branding success.

2007-05-22T13:45:00.000-06:00

How to Research a New Business Idea,
By Arnold Sandness, SCORE Counselor

Part 1: Analyzing the Market
You have a fantastic idea for starting your own business. But, will others get excited about it too? Who will find that it meets their needs or desires? Business ideas can appear in many forms, but all ideas need to be analyzed to help make decisions that will increase your chances of success.

The first step in researching your idea is to gather data to understand the market and demographic details. Who is your potential customer? Good market research can give you the answers and help you create a solid basis for intelligent planning. So, how do you proceed? Below are some simple steps to get started.

1. Identify the value of your product or service to potential customers. Why would someone buy your product or service? Who will be your potential customers? Where are they? Who is your competition? How do they market their products? What advantage will you have?

2. Assess the characteristics of the market. Is it business-to-business or consumer-oriented? A realistic assessment of the market must include its size, location and competitors. How do you find all the right information that can help you make business decisions? You need to use standard market research methods such as surveys, interviews, focus groups and test markets.

3. If you have a product or service that you plan to sell to businesses, list the types of businesses that are potential customers and get company names and locations from the reference books in main libraries or the Internet. One standard reference guide for business information is the Thomas Register. Two good examples of Internet databases are "http://www.referenceusa.com/" and http://www.netadvantage.standardandpoors.com.

4. If you plan to sell directly to consumers, analyze the consumer market. This is usually more complex than the business market. Research demographics including population, age, sex, location, income levels, housing and purchasing patterns. In addition to the Internet resources mentioned above, you can refer to statistics from the U.S. "http://www.commerce.gov/" and "http://www.census.gov/" data.

Part 2: Analyzing Market Appeal
You have a fantastic idea for starting your own business and you have researched your market in Now you need to analyze the market appeal of your product or service to help you make decisions that will increase your chances of success. There are four basic methods of measuring reactions to the appeal of your product or service: interviews, surveys, focus groups or test markets.
No matter what type of research you conduct, formulating a good questionnaire is a key factor for success.

questions must be straight-forward, easily understood, and able to be completed quickly. Each method also requires a review of the situations in which the questions are asked and detailed summaries of the results. Comparisons of the results of the different methods can lead to reliable decisions to accept or reject a set of data.

Here are some tips on the four main types of evaluation methods.
1. Interviews - When conducting interviews, you can start with friends, neighbors and relatives, but you must include strangers to achieve a more objective set of answers. Be sure to tabulate answers in a way that can also be used for the results from surveys and focus groups.

2. Surveys - Use the same questions in surveys as you did for interviews. Surveys can be conducted by mail, telephone or in public places. Recognize that surveys often involve costs in postage, time and labor. The percentage of people responding will be low without some sort of incentive.

3. Focus groups - Focus groups usually require payment to each individual for the time they spend in each session. So be sure to consider the cost factor in using this method of research. In some locations, the marketing department of a university may be willing to conduct the focus group for a reasonable fee. The facilitator (leader) should introduce each of the questions used for surveys and individual interviews. Comments from the group should be tabulated into the same categories as other results so that they can be compared.

4. Test marketing - Test marketing is a way to expose your product or service idea to the real world. This method of research can be more difficult to analyze because the results, or sales, can be influenced by any one of the five Ps of marketing: product, packaging, price, promotion or placement. Try to isolate one of the factors in order to get meaningful results.
So, is your fantastic idea for a business going to result in ultimate success or plunge you into a world of mystery? Good meaningful research can help you answer that question and make the right decisions.

2007-05-21T13:01:00.000-06:00

Do You Have the Mindset and Skills to be an Entrepreneur?
You probably already know that starting a small business requires extensive research and analysis of many factors. But the one requiring the most critical assessment is often overlooked by many entrepreneurs. And, it’s as close as the nearest mirror.

That’s because wanting to be an entrepreneur is one thing; being one is quite another. You will take on responsibilities and commitments far different from those of an employee, even if you have management experience. It’s a challenge that can be exhilarating and rewarding. Unless you’re prepared mentally and emotionally, however, it can also be overwhelming.Before you study financing options and plan store layouts, sit down and conduct a probing interview with yourself to see if you’re the right person for the all-important job of entrepreneur-owner-boss.

Are You a Self-Starter? Nothing in business happens by itself. As the owner, you’re responsible for everything from establishing your firm’s vision to setting the daily work schedule. The fact that you’re exploring small business ownership and asking questions is a good sign.

Are You a Positive Thinker?The moment you become a business owner, you represent yourself, your business and your expectations for success. What you say and do must convey confidence and commitment to moving forward. Employees who sense these qualities will share that determination to succeed, even under difficult circumstances. If you work alone, there will be days when you have to be your own cheerleader.

Are You Disciplined?Your days of the “9-to-5 routine” are over. Running a small business requires a continuous commitment to quality and detail. You cannot afford to cut corners, miss deadlines or make promises beyond your capabilities. If you plan to run the business from home, you must be able to resist temptations and distractions in order to get your work done.

Are You a Lifelong Learner? Entrepreneurs who continually seek information, new ideas and sound advice have the best chance for success. Being attuned to market trends and issues makes it easier to adjust products and services to customers’ needs and preferences. You’re also in a better position to enhance your competitive advantage and efficiency, and address potential problems before they harm your business.

Can You Market Yourself and Your Business? Some people have trouble with this one because of the negative (and often unfair) connotations associated with being a “salesperson.” No business, no matter how good, will succeed without some kind of marketing. The good news is that promoting your business is easier than you may think as long as you know what to do and how to do it. After all, we all enjoy saying good things about ourselves. When you craft and tell your story in the right way, more people will be willing and eager to hear it.

Can You be Objective? Your ideas and practices may seem “bulletproof,” but reality may be far different. Is there really a need for a particular product or service in your area? Are the hours of operation fair to your employees? Is renting equipment better than owning it? A good business owner knows how to examine an issue from many perspectives and understand that strengths and limitations of each.

So how did your “candidate” for entrepreneur-owner-boss do? If every answer was a “yes,” your small business dream is on its way to becoming a reality. For areas of concern, the solution may be business counseling, management courses, or a concerted effort to discard some unproductive habits in favor new ones. Finally, make it a point to conduct regular self-reviews. Thinking and approaches that worked in the start-up phase may not be as appropriate for a thriving concern, or if a major market shift occurs. When you work for yourself, you want to be confident the entrepreneur-owner-boss knows exactly what he or she is doing.

Brought to by SCORE "Counselors to America's Small Business"

2007-05-14T16:46:00.001-06:00

Make Mission and Vision a Part of Your Business

“Where do you want to be in five years?”

You likely heard this question long before launching your quest to be a small business owner. And though it may sound like a cliche, it’s one you should try to answer. After all, business success is all about making progress towards a goal. But first, you must know where you’re going and, perhaps more importantly, why.
Every entrepreneur should include mission and vision as part of their planning process. They help jump-start your thinking and provide guidance in making critical decisions, and supply motivation to plow through the details and minutiae that accompany every new enterprise.

Note that mission and vision are not merely things you codify into statements and post on the wall. They are, in fact, processes that help you make an objective assessment of proverbial “big picture” of your business and the environment in which it exists. With that understanding, you are better able to make decisions, shape policies and implement other practices that will help you capitalize on opportunity and cope with challenge.

Find your Focus Building mission and vision into your business planning is not always easy. Brian Ward, C.H.R.P., a principal with Affinity Consulting and a specialist in the development of quality management systems, notes that, “achieving a balance between ‘dreaming’ about a desired future state and living in the current state is difficult…There is a constant tug-of-war going on between dealing with 'current reality' and developing a lofty vision of who we want to be, what we want to do and what we want to have.”
Here are some tips for stretching your vision to include the day-to-day and the big picture…plus everything in between:

Give Your Business a Periodic Check-up Take time out from the daily routine and force yourself to examine more long-term metrics, such as what’s happened in your business over the past couple of years. A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) will provide a clearer picture of what brought you to this point, and how conditions might evolve in the future.

Look Beyond the Boundaries of Your Business.Competitors and other forces beyond your control will influence much of what you decide and accomplish. As you examine the trends that influence all aspects of your business, learn how they came about and why.

Don’t Fear the Downside.Even the most optimistic vision faces challenges, risks and even threats. These are issues that should be acknowledged and understood, not ignored. Author, columnist and motivational speaker Jim Stovall notes that, “we should never fear the facts. We should, instead, fear being ignorant or uninformed. If you know where you are, who you are dealing with, and fully understand all the terms and conditions, coming up with a mutually-satisfactory outcome in either your personal or professional life is usually fairly simple.”

Consult Advisers.Few resources are more valuable than an informed, objective perspective capable of identifying trends in your business sector, new developments, and who’s succeeding and why. The best advises are those who will tell you what you need to hear, and help you make decisions for taking appropriate action.

Don’t “Set and Forget It” Change is inevitable, so your mission and vision should be equally as flexible to reflect current realities, and keep you looking forward.

Give It All You Got. Just as achieving small business success requires a total commitment on your part, so too should be process of developing your mission and vision. Author and enterprise leadership consultant Jamie Walters sums it up this way:“While there may be many reasons that something isn't happening the way we'd hope or envisioned it, one common cause is that we really haven't envisioned it at all—we've simply thought about it in an abstract or intellectual way…A half-hearted, partial-focus effort yields a like-quality result. In contrast, if we want to bring something about—an organizational vision, attracting a certain quality of client or project, a writing or art project, a collaborative effort, or any number of other endeavors or outcomes—we might remember that a whole-hearted effort will bring about a fuller, richer, truer result.”

Brought to you by SCORE "Counselors to America's Small Business"

2007-05-11T16:40:00.000-06:00

How to find a good LOCATION For your business?
Larry Tessler, SCORE Counselor

Searching out a location for this wonderful business you’ve been enthusiastically planning might seem to be a daunting task. Where do you start? What factors make this location better than that one? Who will help you?
Although I certainly don’t have all the answers, I have been through the drill and I can assure you that if you pursue your search in a calm and organized manner, you will find the location that most benefits your business.

Getting Started. Begin by asking yourself what the space is to be used for. For example, do you need office space, a place to manufacture or assemble products, a distribution consolidation point or a storefront? With these answers, you can make a proper determination as to whether you need a destination location, a traffic location or maybe something in-between. A destination location is a place that your customer specifically sets out to visit, such as a nail salon, a doctor’s office, a favorite restaurant or an accountant.

A traffic location is dependent upon heavy pedestrian and perhaps drive-by traffic. Examples might be a women’s apparel boutique, a shoe store, a candy store or a gift shop.

What Other Factors Should Be Considered?

· Ease of access and egress. This is particularly important when deliveries or shipments need to be made. Do you need relative access to highways, trains, air and seaports? If yours is a destination or a traffic location, be sure to evaluate your parking needs and access to public transportation. This is important for both your customers and your employees.

· Synergy of similar businesses. Synergistic value is most obvious in the retail sector where other apparel, accessory, shoe and similar sorts of stores help build traffic in a given area. While one store might draw 20 customers, two stores might draw 50 and three stores 100. Synergy increases the per-store activity for all stores.The same growth potential may exist for a manufacturing or distribution facility, a technically-oriented business or a restaurant in proximity to like facilities. Locating your business near others in the industry may also help you to find a workforce and assure you the ease of finding public transportation as well as commercial pickup and a delivery.

· Proper zoning. Be sure and check zoning requirements for the location that you choose to make sure that the space you wish to lease or purchase is properly zoned for what you want to do. Sign the lease or purchase papers only after you are approved to do business in that space, or sign it contingent upon obtaining approval.

· Price. The rental rates or purchase price on space are always a consideration. In general, a greater rent per square foot usually means more traffic and/or better quality of space. Be sure to account for these costs in the gross margin in your business plan.

Who Can Help You?

· Real estate agent. When searching for space, it is often a good idea to use a commercial real estate agent. Many available properties do not have a sign or ad to identify them. Agents also know about properties about to come on the market before the general public does. They can show you multiple sites so that you can evaluate and choose the best for your needs. Today’s leases are long and complex. They are frequently slanted to the benefit of the landlord and include many restrictions that may not be to your benefit and, in fact, may actually hinder your operation. However, lease points may be negotiated. It is often easier to negotiate through an intermediary such as the real estate agent.

· Real estate attorney. A real estate attorney is also useful. As you read the lease, note where you don’t understand the language, or where you think a point might be re-negotiated. Show the lease and your questions to an attorney for help and direction. An attorney is practiced at looking for items you may not realize will be difficult, if not impossible, to comply with.

· Landlord. The landlord himself may be of help to you. Landlords often demand a business plan as a condition of approval for obtaining a rental agreement. With a well-crafted plan you increase your odds of success. Since a landlord wants you to succeed, this may increase your leverage with him and help you to negotiate in your favor.

· SCORE. Last, but not least, lean on a SCORE counselor to advise and guide you as you search for the best location for your business. Seek help from your nearest "http://www.score.org/findscore/" or "http://www.score.org/cgi/ask_score.cgi". SCORE counseling is always free and confidential.

2007-05-09T16:48:00.000-06:00

Defining Goals for Your Small Business
By Terri Lonier
Small Business Author

If our vision is the destination, the ideal structure we see on the horizon, then goals are the substance that gives flight to our ideas. For example, assuming you’ve chosen the type of building your want, you can now decide how many rooms it will have and how they will be furnished—the style and Eminence you want to achieve.

Business goals are as diverse as the people who establish them.
Some are no-brain's, such as “win enough clients to pay the rent and my salary.” A goal can be as specific as “install a new graphics program, so I can target that client who demands this capability from its vendors.” A goal might be as short-term as “get this done by Friday” or as long-term as “in 10 years I want to be reporting $10 million in sales.” Goals are measuring sticks; but on these sticks, we get to draw the dividing marks. We determine what we’d like to achieve during a specific time frame; we design a particular outcome. You define your goals to meet your needs.Goals are also your guideposts, established to keep you on the right path and to help you assess your progress.

Manage Tactics.
We all wrestle with innumerable tasks that fill up our daily “To-Do” lists. Most new business owners, and many experienced ones, too, are all too familiar with activities that can take us in a dozen different directions at the same time. They scatter our focus, until at the end of the day we’re exhausted—but find ourselves wondering whether we've accomplished anything of importance. No doubt about it, such tasks can derail the most capable business owner. That’s why it’s important to make the distinction between a tactic, an approach to accomplishing something, and an activity, which, while necessary, could be assigned a lower priority or delegated elsewhere, freeing you to keep your eye on the prize.

Formulate Strategies.
Unlike establishing a vision, defining goals and employing daily tactics, which are individual undertakings, strategies can be shared, adapted and refined among other entrepreneurs in other field. Strategies are the blueprints you draw to help you achieve your goals; they are the systems you use to get yourself where you want to be. Employing strategies is putting brain before brawn, planning before you act. Strategies are so important that I had no difficulty filling an entire book with them! But to give you the power you need to succeed, strategies must be put in the context of your business “building”—integrated with your vision, your goals, and your tactics.

2007-05-06T18:42:00.000-06:00

Harmonize Family Business.
If you involved in a small business that is also a family business, you probably have heard warnings about pitfalls of working with a relatives. Operating a business with a spouse, parents, siblings, children or other family members presents many potential pitfalls over and above the usual problems business owners face.

To help ensure survival of family-run business, you will need to seek a harmonious balance between the needs of the business and needs of the family. The characteristics of a healthy business may not always be compatible with family harmony. when bringing family members into a business for the first time, especially as investors or in a start up situation, you should consider putting the business relationship in writing. Family member sometimes buy into excitement of a business start up with out a clear idea of their role once the business is under way.

In an ongoing family business, it’s important to treat family member fairly. While some experts advise against hiring family members, tat sacrifices one of the great benefits of a family business. Countless small companies would never have survived without dedicated family members. But avoid favoritism. Pay scales, promotions, work schedules, criticism and praise should be evenhanded between family and non family employees.

Don’t become the employer of last resort for every distant relation who calls. Base employment on the skills or knowledge they can bring to the business. If your kids will be joining the business, make them get at least three to five years business experience elsewhere first to help them gain perspective of how the business world works outside of a family setting. problems and differences of opinion are common in a family business, so it’s important to keep lines of communication clear.

Weekly meetings to assess progress, air differences and resolve disputes work well for many family firms. Drawing some lines between business and family life will also help.
For family business operators, it’s tempting to talk shop day and night. But constantly mixing business, personal and home life can lead to trouble. Limit business discussions outside of the office or at least save them for an appropriate time- not at family get-together.

Brought to you by SCORE "Counselors to America's Small Business"

2007-05-06T06:25:00.000-06:00

Valuing A Small Business For Sale
By Peter Siegel, MBA.

Pricing a business correctly is important if you really want to sell it. As a consultant I talk to many business owners, brokers, and agents on a daily basis about valuing businesses. It always amazes me on how some of these individuals come up with the values on small businesses being sold. No wonder only 30% of all businesses sell. In many instances no consideration is given to the total picture—will the available cash flow of the business be able to pay the debt of a loan, will the deal as structured or priced be attractive to financing sources, "cash" price vs. "note" price and how these factors figure into the equation.I have seen many "professional valuations" where the price just doesn't make sense—and sellers wonder why their business for sale just sits there with no action.

1. Market Approach
There is a solution that is grounded in the fundamentals of economics, and time tested in the marketplace, where the influences of supply and demand ultimately determine where a business belongs on the price scale. One economist explains this market approach by comparing a business to a machine which has the purpose of making money: The more money it makes, the more it's worth. And that explains why, for example, there is a strong demand for a very profitable distribution business with few hard assets; and why it is worth more in the marketplace of available businesses, than a large machine shop that would cost nearly $1 million to duplicate, but can't make a living for its owner.

2. Adjusted Net Income
The first category of information needed is called adjusted net income, and is the total amount of cash produced by the "money machine." It's a figure that includes the profits, the owner's salary and all of the many cash-related benefits which are enjoyed by the principals of small businesses. Those benefits can include the use of a company car, the company-paid premiums for health, life and auto insurance, plus personal expenditures tucked into travel and entertainment, subscriptions and similar business "expense" categories. Interest expense should be added to adjusted net income, along with accounting entries—such as depreciation and amortization—that can divert money to the owner's pocket so that it never appears on the bottom line of the P&L.

While some of these items vary from business to business, any owner knows which categories of expenses in his or her financial records include sums of money that should be added to adjusted net income. Many business owners also know of cash income that never sees the business records in any way, shape or form. Some owners feel they should get credit for these sums in the calculation of value. But it's a poor policy to collect unreported income and then attempt to have it included in adjusted net income for evaluation purposes. When selling, your buyer prospects want any statements you make about your business to be supported by evidence in the form of accounting records and other reliable sources.

To admit that you are doing business "off the books" not only exposes you to problems with the IRS, it also sets a bad tone with prospects who—if they are going to be interested in your business—need to believe your practices and record keeping are above reproach.
Adjusted net income is usually the first thing any buyer wants to know about when investigating a business; and not just the past few months' worth of income. A seller should be prepared to demonstrate a history of earnings, and have the documentation to back it up.

3. Multiplier Method
The next piece of the equation comes from the expectations working in the marketplace to shape the multiplier—a figure which will be computed, along with the cash flow, to calculate a rough value. The validity of the multiple is that it reflects behavior in the market. There is no need to theorize about a proper multiplier. It's calculated by determining what people actually pay for small businesses.

The experience with low risk businesses is that their high market demand is reflected in a fairly strong multiple. A lot of buyers want, for example, a well-established franchise, or a grocery store with a long lease in a densely populated area and little direct competition. Its multiple might be in the range of two to three times annual adjusted net income. A one or two multiple, on the other hand, would be associated with an enterprise in which the buyer is assuming greater risk. An example is a retail store near a large shopping area, which leaves the buyer of the smaller business vulnerable to the competitive marketing activities of much larger companies.

The lower multiple is a consequence of lower market demand. Fewer people want that kind of business. Since profitable distributorships and manufacturing companies are much sought after, it's not unusual to see them command a price upwards of four times annual adjusted net profit. The company in this category providing adjusted net profit of $200,000 might realize a selling price in the range of $800,000, assuming a favorable deal structure (more about that shortly). Also warranting a high multiple are businesses loaded with assets—equipment, trade fixtures and inventory. But remember that a seller must be able to establish the company's "history of earnings" with financial reports and tax returns, before the higher price will be offered.More commonly available businesses, such as restaurants, are priced with a lower multiple—in the one to two range—to reflect the abundance of this kind of business available for sale at any one time. In this case it's purely a matter of supply and demand.

4. Importance of Deal Structure/Terms
And the final factor thrown into this equation is particularly useful in determining the value of businesses offered for sale. It recognizes that the terms of a transaction--in other words, how a price is paid--are critical in calculating that price. When sellers demand all cash for their businesses, for example, the market tells us that they can expect to receive about 60% to 80% of the sum they would have gotten by taking a down payment and financing the balance.
It's easy to understand why deal structure is such a vital component in the valuation process.

For a business to be affordable, the cash flow needs to be substantial enough to support the price at the multiple being used. A deal that requires a lot of cash up front, in relation to the expected amount of adjusted cash flow, will place a greater burden on the buyer. That principle, translated into the language of the marketplace, means the business will only be appealing at a low price. If, on the other hand, the level of adjusted net income supports the buyer's ability to make payments to the seller in order to purchase the business—this opportunity will interest more potential buyers and the result is a higher achievable sales price.

Other ways an attractive deal structure can be used to build market appeal include a delay of a few months—after close of escrow—before monthly payments on the seller's financing are due to begin, a low interest rate, and interest only payments for awhile, until a new owner is able to build the business to more easily meet the loan obligation. Creative deal structures always help sell a business and will usually command a higher market price for the business (remember it has to make sense). Pricing a business is as much or more of an art than a science. Sellers who take a look at the big picture—looking at both deal structure and price are usually the ones who are successful in selling their business.

2007-05-05T07:44:00.001-06:00

Let the Countdown Begin: A Six-Month Plan for Transitioning from Employee to Entrepreneur
Aspiring entrepreneurs often wonder how long it takes to get a small business started. The answer is, “it depends.” Some new enterprises can be up and running in a matter of weeks; others may require several months or more of diligent planning.
If you currently have a job, you can pursue your small business ambitions without risking your family’s financial security (assuming, of course, that your research doesn’t interfere with your 9-to-5 responsibilities). If you’re unemployed or facing a layoff, you’re obviously eager to move things along.
A good rule of thumb is to allow six months to make a complete transition from employee to entrepreneur. By following the steps below, you’ll be able to wisely invest this time in building a sound foundation for your new business, and your future.

Assess Your Personal Strengths & Experience.Determine.if you have experience in the business you are planning to start. If you don't have experience, how will you get it? An honest and thorough review of your experience and education should give you some leads about whether a particular venture is right for you. Be honest; your review must consider both personal weaknesses and strengths.
Be sure to consider the most common reason why a small business does not succeed: lack of management skills such as record keeping, personnel management, market analysis, communication skills and taxes. Many universities, community colleges and adult learning programs offer courses and seminars in these and related topics.

Begin Planning What Your Business Will Sell or Do.Ask other small business owners how they got started, what mistakes they made, and how they’d do things differently. Research your potential markets and determine whether there’s enough demand to sustain your proposed business. And, examine your idea from the customer’s point of view. What will you offer to attract them, especially if you’re competing with existing businesses?

Attend a Workshop on Starting a Business.This is a great way to learn the nuts and bolts of launching a business from veterans of the business world. The workshops cover the process of building a sound business plan with tips on information resources, legal considerations, working with lending institutions and other important topics.

Work With a Counselor on Different Aspects of Your Business.Experienced business counselors make valuable sounding boards to answer questions, evaluate ideas and point you in the right direction to find additional information. Depending on the nature of your business idea, you may work with one SCORE volunteer counselor or several. Develop a Business Plan to See that the Business is ViableThe information you gain from research, workshops and conversations with SCORE counselors will help you understand everything necessary to start and manage your small business. Now, it’s time to put your plan on paper. Don’t worry if the answers lead to more questions. Evaluation is an ongoing process, even for long-standing businesses. And, as you address and eliminate unknowns, you greatly increase your chances of success.
Finalize Your Plan & Gather the People and Money to Start Your Business.If you’ve prepared a thorough business plan, you’ll be ready to make a strong case for acquiring the resources you need to bring your small business planning into the “home stretch.” You’ll know what banks to approach, where to “set up shop,” how to market yourself and contact potential customers, who to hire, and what other tasks necessary to make the big jump.

Ready to Roll? Don’t worry if, after six months, you feel unsure about moving forward. Many variables involved with starting a small business are beyond your control. Your research may also reveal that the wisest course is to wait and gain additional experience, explore other ideas or simply put your entrepreneurship dreams aside temporarily.
But if everything is ready, you’ll enjoy that proud moment when you can look at yourself in the mirror with confidence and say, “Hi boss!”

Brought to you by SCORE "Counselors to America's Small Business"

2007-05-03T04:56:00.000-06:00

Keep an Eye on the Big Picture of Your Small Business
Keep your eye on the big picture and prepare for the worst now.

Do Hard Analysis, Don’t Get Bogged Down. When things are good, it’s the right time to conduct an in-depth analysis of your business. Consider doing a SWOT analysis (strengths, weaknesses, opportunities, threats) when business is good, so you can repair your weaknesses while things are running smoothly.
Many small business owners fail to look at the big picture because they’re too bogged down in minutiae—the everyday challenges of running the business. But it’s a mistake to ignore the big picture. Take the time to shut out everyday things and force yourself to gain a longer perspective on what’s going on. Look at much longer metrics, such as what’s happened in your business over the past couple of years.

Ways to Look at the Big Picture. Mission and vision statements are good to jump start your thinking about who you are and what you’re really about. What winds up in the statement is secondary. It is the process you go through when forced to take a hard look at your business that is most valuable.
Small business owners should have a good team in place to help them keep the big picture in mind. It’s important that everyone on the team commit to the direction in which you’re trying to move the business. If you disagree with the advice and have good reason, consider getting a new team.

Don’t Forget the Industry as a Whole. It’s dangerous to look at just your own performance on sales and profits. You have to check out the competition. Remember that our economy changes. You can achieve success from making comparisons over time to learn what the competition is doing, what’s different about his or her customers and what’s happening with your own suppliers.

Use Advises. For small business owners, teams of advisers can be expensive, which is why it is so helpful to seek free advice from organizations such as industry trade associations, SCORE or the U.S. Small Business Administration.
Advisers will be able to identify trends in your business sector, new developments, and who’s succeeding and why. It can be hard for business owners to do this after operating on their own for a number of years, but the outside perspective is invaluable and will help you evaluate your business more effectively.

Brought to you by SCORE "Counselors to America's Small Business"

2007-04-30T10:57:00.000-06:00

Develop Your Small Business’s Technology Plan
"www.workz.com/"
Here's a checklist for deciding what your site should be able to do—its functionality. All of the items on this checklist require a fair degree of consideration, but you can drill down on any of them to find the information you need to make decisions. You don't have to complete all of these items but you should consider them all, regardless of the scope of your Web plan. Even if you plan to do it all yourself after work from your home office and your garage, you should still review the entire checklist.

The benefits you get from a little up-front technology planning include:
· Lower programming costs
· Less development time
· More control over your information systems
· Stronger model for integrating online sales with your other business systems.

Completing this list will yield a complete list of the hardware, software and services you need to launch your web site. Within each checklist item prioritize the capabilities you want. Your priority list will help you make compromises later on in the development process. It will also help you develop a multi-phased roll-out of your Web site's capabilities that will allow you to test key systems individually and add incremental improvements to your site.
Of course, everything you "decide" here will likely change once you get into actual site construction but after this process, you'll know exactly what your compromises mean.

Define the Optimal Visitor. ExperienceMarket research will help you identify the common browsers, modem speeds and other restraints in the computing power of your target market. This helps you avoid developing site technology that your customers don't have the capabilities to use. For example, knowing 40 percent of your prospective customers still connect via 14.4 kbps modems will definitely impact the number and size of graphics you use on a given page, as well as your use of Java, JavaScript and other programming tools and techniques.

Evaluate the Technology. Required to Deliver Your ContentContent is a combination of text and graphics that showcases, merchandises and sells your product or service. Different kinds of content require different kinds of technology to serve to customers. Your designated site producer should be involved at this level, to define the customer experience as an integral part of defining the site requirements. There are two parts to this discussion: content serving and content retrieval.

Plan to Track Prospects and Customers through. Your SiteTracking your customer through your site is the equivalent of watching a customer evaluate your merchandise and interact with your sales force. Most ISPs and hosts provide some minor enhancements that let you analyze traffic trends on your site. As you get more sophisticated in marketing to your customers, you may want to add tools that can track unique users through your site in real-time, presenting targeted offers or advertising. This requires additional site tracking technologies and incurs higher technology costs.

Define Your Order-Processing Needs. Your e-commerce software will be responsible for taking your customer's order and transmitting it to you. You'll have to decide whether you'll accept credit cards online and a host of related decisions that will impact your technology investments. For example, the decisions you make will also impact the integration of your e-commerce software with your back-end systems. Throughout the site development process—and on into your improvement cycles, once you're up and running—you'll be making decisions on order processing software and services that trade-off cost, features and development time.

Specify Your Site Maintenance Requirements.Your site maintenance requirements will vary depending upon the volumes of visitors or customers you expect to attract. For example, a highly trafficked site conducting time-sensitive transactions, such as a securities trader, will require fast access anytime of the day or night. This is called 24 x 7 site availability. To ensure the best performance per user, the owner of the securities trading site might also require that additional servers become available when too many people try to access the site at the same time (server load balancing at peak times). Most sites won't be as demanding, but you should know what it will take to keep your site running and consider these requirements when shopping for your hosting service.

Outline Your Web Site Security. Once you place a site on the Internet, security becomes an issue. You must protect three significant areas of your information systems:
· the transaction between you and your customer
· any information stored on your Web server, such as customer names, authorizations, or credit card account numbers
· any computer networks connected to your Web server, such as your internal business networks

Define Localization Requirements.If you think your product or service has international appeal, you can save lots of money by following simple guidelines for creating international-friendly content. You'll need to consider not only language differences but cultural and—most important—currency differences, as well.
Prioritize Community-Building Options Communication among visitors to your site-often called "community"—is one of the main reasons customers revisit a site. A number of technologies are specifically devoted to making this communication possible. For example, these include chat, bulletin boards, ICQ and discussion lists. You may want to implement some or all of these.

Decide on Your Advertising. Display StrategyOver time, as you begin to occupy your market share, you become attractive to others who want to advertise on your site. Even if you have no intentions of selling advertising space to others, you might want to use banner advertising technologies on your site to communicate with your customers. Identify now where and how you will accommodate advertising. If advertising is a primary component of your revenue or content model, you'll want to incorporate ad management technologies early in your site development plan.

2007-04-29T13:54:00.000-06:00

Think Through Your Small Business Plan
By George Stiles and Rink DeWitt
The Kauffman Center for Entrepreneurial Leadership

Planning is powerful. This is a message we now give to the aspiring entrepreneurs who comprise an increasing chunk of our clientele of executives-in-transition. When asked about the "plan" for their businesses-to-be, these fledglings, like so many of their successful self-made counterparts, are apt to say, "What plan?" It is up to us to be fanatical about sitting them down and saying, "Let's think things through . . ."
A Trio of Advantages In short, for even the most relentless entrepreneurial "do-er," formal business planning is neither an oxymoron nor an option. Rather, it is an essential entrepreneurial tool that enables a trio of powerful advantages:
.Careful thought
.Clarity of purpose
.And, a benchmark to measure progress

To wit:

Careful Thought : While undergoing the weeks or months of agonizing research and reflection involved in drafting a business plan, an entrepreneur is forced to confront and answer questions that he or she might not have even raised if fully engaged in "doing." In its ability to force careful thought—indeed, to discipline the entrepreneur to test the reality of enthusiastic optimism—a plan leads to a wealth of specific knowledge, which in turn boosts self-confidence. All of this goes a long way toward assuring the success of the venture.
A word of caution: There are no short cuts here. Gathering the data, doing the analysis, and writing the plan are the entrepreneur's responsibilities. It couldn't be any other way, for in this endeavor, process trumps product.

Clarity of Purpose: If a business plan defines the venture for the entrepreneur, it does so as well for his or her "significant others," namely members of the management team, venture capitalists and other financiers, and professionals such as lawyers and accountants. A plan offers a clear and consistent snapshot of the organization's objective from the outset. It provides clarity of purpose, the given against which changes can be made.

Benchmark for Progress: A well-documented business plan enables the entrepreneur to avoid the dangerous trap of confusing activity with progress. Instead of a mere locomotion, a plan offers a steady benchmark against which to measure progress. As each interim goal is achieved, the entrepreneur gains a greater level of personal and organizational satisfaction.
It goes without saying that a formal plan is a rock-bottom necessity for convincing venture capitalists, angels, or bankers to put money into the enterprise. Prospective investors and lenders need to be assured that the founder has researched and analyzed the venture in sufficient detail and that the management team has the background, skills, and qualifications to succeed.

Taking Advantage
In formulating a plan, an entrepreneur needs to consider three big basics: a well-thought-out concept or idea that will form the basis of the business, a clear assessment of the size of the market for the product or service, and a comprehensive study of existing or potential competitors.

That last point is key, you might recall that it was the factor that convinced Rink to jump aboard the Executive Options bandwagon. A look at your competitors should include who they are, how good they are, how they differ from what you are, who their clients or customers are—and how you can take those prospects away from them.
Beyond the basics, a list of dos and don'ts will enable you to take best advantage of a business plan.

DO:
-Keep the plan as short as possible, no more than 20 pages.
-Start with a one-page executive summary, drafting the summary last.
-Write and arrange the plan to be orchestrated as an oral presentation.
-Estimate sales potential on hard evidence of your product's marketability.
-Involve your management team and professional consultants.
-Disclose current or potential problems so that others hear the bad news from you first.

DON'T:
-Use jargon, which shouts arrogance; instead, shoot for verbal simplicity.
-Over-diversify; instead, focus on one or two products or markets.
-Include unnamed members of the management team who will "join later"—instead, identify everyone involved.
-Make ambiguous, vague or unsubstantiated statements, which label you a fuzzy thinker or a dreamer; instead, use facts to describe market size.

We co-founders have come a long way from that dreary day in New Hampshire, when we turned for guidance to our plan for Executive Options. Our plan was our vision in writing. It was the tangible record of our dreams. Through it, we examined a present reality, injected our own ideas, and described the new reality that we would create.

You can do this, too—if you realize and capitalize on the advantages of a formal business plan.

2007-04-28T08:08:00.000-06:00

Starting a Home-based Business—Is It Right for You?
by J.H.U. Brown, a counselor with the Houston SCORE Chapter

Hundreds of thousands of individuals decide to start a home-based business each year. Many succeed. About 70 percent of all home based businesses are in operation after two years. Before entering this venture, entrepreneurs should consider several key questions:
· Can you operate the business alone with little help?
· Do you have contact with buyers or your services?
· Is the location such that distributors, sales staff, clients and others can reach it without difficulty?
· Is start-up and operations capital available for the first year?
· Can the business really be operated from the home?
· Do you have separate spaces for storage, records, isolation, parking, etc.?
· Can a business in the home compete with similar businesses?

As in most businesses, there are advantages and disadvantages to the home-based business. A business in the home permits flexibility of working hours, lower start-up costs and allows family affairs to continue during business hours. There are also disadvantages—zoning restrictions may prohibit business, the IRS may raise tax questions, it may be difficult to get materials and customers to the location and financing the business could be challenging.

The IRS specifies that a home-based business must have its own location away from the family living space that is devoted exclusively to the business. The business must be in regular operation, profits must exceed expenses in order to claim deductions, the business must be conducted almost exclusively in the home and the motive must be profit.

A major challenge in operating a home-based business is isolation from distributors, merchants, clients and interested parties. Modern communications help to alleviate the problem—a computer is a necessity. A fax machine and Internet access are almost certainly necessary for communications within the business community. In addition, separate telephone phone lines must be installed for telephone, fax and Internet access and the business phone needs some type of answering service.

In summary, the business must be run as a business not as an extension of the home. It is essential that the prospective business owner have a good business and financial plan, separate from the family finances, that clearly spells out the present and future of the business.

Be aware that many neighborhoods have deed restrictions forbidding the operation of a business. Some require extra off street parking, others forbid deliveries and signs, etc. It is wise to check with your Home Owners Association and with your local government for a complete survey of your city or county regulations.

It may be difficult to raise capital. The average home-based business requires about $10,000 in start-up costs. Although this may be much less than opening a business outside the home, both the start-up and operating funds should be in hand before beginning the business operation.

Help is available. The "Nation Association of the Self-employed"(NASE) can provide help and information, as well as your local SCORE office. "Find SCORE" on this Web site to meet face-to-face with a professional business counselor.

2007-04-27T08:45:00.000-06:00

An Alternate Career Choice
By Nancy Michaels...As seen in U.S. News & World Report, special advertising section

If you’ve recently started your own business—or if you’re thinking about it—you have a lot of company. Entrepreneurship is becoming an increasingly popular career choice in today’s marketplace.
While many individuals go on their own internal reasons—a passionate need to be independent, a burning desire to turn a hobby into a profession, or the love of a challenge—others have chosen the entrepreneur route in response to external situations, including layoffs, frustration with their current workplace culture, or a need for greater flexibility in their lives.

Owning a business has become the twenty-first century version of the 1950s American dream of owning a home. But entrepreneurship is not for everyone. It’s important to consider whether you have what it takes to start a business and run it successfully.

You’ve probably heard that start-up statistics are grim. The truth is that just 30 percent of business start-ups survive more than five years. Stories of overnight successes and young millionaires are rare. The dot.com era ended two years ago, and venture capital money is increasingly hard to secure. The hardworking, determined, visionary who dedicates long hours and endless energy to his or her business is the more realistic picture of today’s entrepreneur.

Entrepreneurs face a myriad of internal and external challenges. Within their companies, they need to offer a superior product or service. They need to manage cash flow and maintain profitability and hire and retain the right mix of people. Externally, factors such as access to financing, the economy, government regulations, and technological issues impact entrepreneurs on a regular basis.

Many small businesses fail because of weaknesses in general management, financial management, and marketing (Statistics Canada, “Failing Concerns: Business Bankruptcy in Canada”). Under capitalization—or insufficient funds—is another common pitfall. Michael Gerber cites the “entrepreneurial seizure” as a primary reason for failure in his book “The E Myth, Why Most Small Businesses Don’t Work, and What To Do About It.” Gerber says many entrepreneurs pursue the dream of being their own boss but fatally assume that an understanding of the technical nature of a business is enough to achieve success.

To avoid becoming a casualty of the start-up craze, it’s critical to be aware of the pros and cons of running a business. Sure, you have the potential to earn gobs of money, you can set your own hours and be your own boss. But there are many long hours, substantial risk and lots of dirty work required in the growing stages of any young firm.
“What surprised me the most was the sense of isolation I initially felt,” says Susan LaPlante-Dube, 38, who runs Precision Marketing Group out of her home in Upton, MA. “I was used to walking down the hall to bounce ideas off someone, and that was suddenly not an option. I quickly learned to schedule time out of the office to meet with people and gain a different perspective.”

Are You an Entrepreneur?One recent study of entrepreneurs (William E. Jennings, “A Profile of the Entrepreneur”) asked subjects to rank several traits and attitudes related to business ownership in order of importance. Results showed the most important attributes to be:
· Perseverance
· Desire and willingness to take initiative
· Competitiveness
· Self-reliance
· Strong need to achieve
· Self-confidence
· Good physical health
Filling out the bottom of the list were some surprising attributes, including a strong desire for money, patience, organizational skills, and a need for power. Today’s entrepreneurs are more interested in competition and achievement than money or power. So do you have what it takes to run a business?

Ask yourself these questions to help you decide.
· Are you willing to work long hours and make the sacrifices necessary to get your business going?
· Do you want to bear the responsibility for all business decisions and responsibilities related to your company?
· Are you independent, disciplined, and committed to entrepreneurship?
· Are you ready to serve multi-roles within your organization?
Finally, successful entrepreneurs often allude to good old-fashioned luck as playing a role in their success. But successful business owners prepare themselves to recognize and seize opportunities when they arise.

Where To Start Gather as much information as you can about your idea. Learn about the industry, the best ways to deliver your product or service, your competition, and potential obstacles. Talk to other entrepreneurs about what has worked for them, and read relevant trade journals, books, and business publications. Attend some gatherings of a professional association of entrepreneurs or prospective customers. Stay abreast of trends within your chosen field and keep current on issues affecting entrepreneurs.

Create a detailed plan for your business. If your venture will require any outside funding, you’ll need a business plan. These plans are a key building block for any successful business. Set goals for your business, then break the goals down into achievable steps. A good plan will help you maintain focus when things become overwhelming.Networking can begin immediately when starting a business. If you’ve chosen to keep your day job until your business gets going, then maintain good relationships at work. Tap into professional organizations and your personal network of friends and family. Keep in mind that effective networking creates mutually beneficial relationships.

Research all financial aspects of your business. Access to capital is the “make or break” of many firms, so learn about the various ways to obtain funding—friends and family, bank loans, venture capitalists, angel investors. Know how much money you have, how much you’ll need to get going, and how much you need to make to achieve your goals.
Determine what types of equipment and materials you may need. For some—consultants, writers, coaches—a computer and a phone line may be sufficient. Those seeking to manufacture products may need to set up an entire assembly line.

Human resources are a huge asset to successful firms. While it may not be realistic when a business is just starting, hire out your weaknesses as soon as possible. If bookkeeping is a time-consuming chore, hire an accountant. Get an assistant to handle clerical work. This frees you up to spend time strategies and growing the business.
Trying to decide when to give up your day job can be tricky. Go gradually. Wait until you have some regular clients lined up, a plan in place.

Starting a business can be overwhelming, especially for those who are maintaining other employment. Remember to carve out time for friends, family, and fun. Create boundaries between your business and your personal life and honor them.Entrepreneurship is not for the faint-hearted.
There is no magic formula. But for those willing to work hard and take a chance, dreams can come true.

2007-04-26T10:42:00.000-06:00

How to Creating a Marketing Plan?
A marketing plan is an essential tool for business. Developing one will help you think about what makes your business unique and how to get the message out to desired audiences through a variety of channels. You will learn why creating a marketing plan is so important.

A Marketing Plan is Strategic.Just as you plan for other aspects of your business, such as inventory, production and billing, thinking ahead about your marketing efforts is key to staying competitive. By plotting your marketing strategies ahead of time, your business will run more smoothly and your efforts are more likely to pay off.

A Marketing Plan Helps You. Stay Focused Your marketing plan is a map to guide you toward your goals—one that will get you there on time and with minimum stress.

A plan will help you coordinate your efforts and be proactive. With it, you are more likely to be realistic about your time and energy. A plan will help you stay organized and on track throughout the year.Your marketing is more likely to get done when you take the time to identify what you want to do and when you want to do it.

Write it Down. Plan your efforts by first identifying your market and then letting it determine how to proceed. Which events and opportunities will help you accomplish your goals? Is it in your best interest to attend an association meeting that your clients are involved with? Think strategically about where you need to be. Consider what business you’re in and the natural cycles of your industry. A marketing plan may include marketing objectives, strategies, brand positioning, messaging and public relations activities.

Use a Calendar to Keep On Top of Your Marketing. Efforts Once you have identified the events and activities to target, incorporate your marketing plan into your current time management system. Some people find it easiest to use a wall calendar. Others like a desk calendar or a computerized program.

Set Goals & Assess Your Efforts. Think about the marketing ideas you want to implement. Determine how to implement ideas, assign each a date for completion, then work backward from your deadline. Also, be sure to examine your ideas to see whether any can be used to achieve more than one goal. Think about whom you want to reach when you want to reach them and how you’re going to do it. Then mark it on your calendar. When you plan your marketing efforts and merge them smoothly with your other responsibilities and commitments, they are more likely to pay off.

Brought to you by SCORE “Counselors to America’s Business.”

Marketing & Advertising a Small Business for Sale Successfully
By Peter Siegel, MBA

when a small business owner or business broker goes to sell a business that they usually don't know how to successfully advertise or market a business for sale. They go to all the trouble of getting it ready for sale, collect all the info needed for the sale, and then "rush" the advertising portion of the process. After posting their limited, ineffective advertising they complain that the buyers they are getting calls from are "unqualified," "unprofessional" and "time wasters."
Hundreds of business buyers interviewed for my book either in person or in my focus groups gave me many valuable insights on how owner/sellers and broker/agents can "get it right" when they go to advertise a business for sale.

1. More Information Is Better than Less.
Most (business for sale) advertisers think that less is more—that buyers will be more apt to call about a business for sale if little information is given (the old tease strategy). I have found this has quite the opposite effect on buyers. Buyers in many instances will bypass the business feeling that since there is little information, the broker/agent probably doesn't know that much about the listing and they don't want to waste their time on such a business.
Buyers and successful advertisers on business for sale websites have told me that more is better. In fact when you give a lot of information it gives buyers a sense of comfort—they feel they already know a lot about you before they even meet you. Another reason this idea works so well is that by the time a buyer reads your detailed description in your ad they are 80% pre-qualified when they do call or email you—saving you a lot of time. Buyers tell me that they feel more "trustful" of the seller with this type of advertising, which helps in the negotiating and selling process later down the road.
I understand that confidentiality in many cases is paramount when selling a business, however you can still be detailed about the business being sold without giving out the identity or exact location of the business being sold.
Motivated serious business buyers find it extremely helpful if you write about the following information in the detailed profile part of the ad:
· Length of time in business
· How many employees – part time and full time
· General geographic area of the business location
· History of the business
· How you would grow the business in the future – give them a "vision"
· General industry info – how it's growing, changes etc.
· Competitive analysis
· General info on surrounding geographic area, especially if it's a lifestyle business
· Include great pictures of the business if you can
· Know what your true adjusted net income is and how you figured it
· Write about the financial picture of the business – growth, changes, history, etc
· Let them know if the business is computerized, has a great website, etc.
· Always include multiple phone numbers where you can be reached
You will find that the quality of buyers calling you about your ad will be very high and you will spend much less time answering the same old questions over and over.

2. Make Your Ad Stand Out – Feature Your Ad for More Exposure
If you have the advertising option to "Feature" a business and get more exposure by having it appear in the top of listing results or with pictures it is usually worth it—many more serious buyers will see it more repeatedly and respond quicker.

3. Track Your Advertising Results
Make sure you know where your buyers see your ads. Track your results. Ask every caller where they saw your ad. Possible use a different voicemail phone numbers for each media in the early stages to determine where your getting your response. See which sites your emails are coming in from. After you determine where the better, more qualified buyers are coming from stick with that media for your advertising.

4. The First 30 to 45 Days Are Critical
Thousands of motivated buyers will first see your ad when it first comes out and first impressions are important. If you have all the info in your advertising, can explain any nuances over the phone when called, you will have a better chance of a meeting with buyers quickly.

5. Don't Stop Your Marketing/Advertising Until You Have Check in Hand
50% of all offers to purchase businesses are never completed. Make sure you keep your advertising running until you have the final check from the buyer. Make sure you have backup buyers at all times. Keep taking phone calls/emails from interested parties, record their names in a folder and get back to them should things sour with the current buyer. Keep things moving forward at all times. I can't tell you how many times I have received thank you calls from grateful advertisers (owner/sellers and broker/agents) who followed this advice.

6. Get Back to Potential Buyers Immediately
One of the biggest complaints I hear from business buyers about advertisers is they take a too long of time to get back to them. Make sure you call back a buyer within 4-8 hours of receiving their phone call or email. Remember you are in competition with other businesses for sale—they are calling and emailing others also.

7. Putting It All Together
Advertisers who follow the above advise when selling their small business will have over a 90% success rate of selling as long as other aspects of the sales process are in line such as a realistic selling price and terms, etc.

Brought to you by SCORE “Counselors to America’s Business.”

2007-04-25T10:45:00.000-06:00

Type your summary hereType rest of the post here
Guide to Creating a Market Niche
Starbucks did it. So did Sam’s Club. For that matter, McDonald’s did, too. They carved themselves a successful business niche. When Starbucks came on the scene, it raised coffee from a mere beverage to a culture in its own right. Warehouse clubs like Sam’s made shopping in bulk fashionable and before McDonald’s, fast food was downright slow.

You will learn how to create a market niche.

Concentrate on a Niche Market.In today’s competitive business climate, you’ve got to separate yourself from the pack—you’ve got to create a niche. By offering something no one else has and by targeting your business to a few select markets, you protect yourself not just from the competition, but also from the twists, turns and plunges of the economy.

Advantages of a Niche. By creating a product or service that so completely fills a need, your customers will have a hard time imagining life before you came on the scene. Is there a niche that your competition has failed to fill? Can you, perhaps, become a specialist in an area where there are many generalists? The most successful marketers are those with special, specific expertise in a particular area.

Questions You Should Ask Yourself. Finding your own niche is often a matter of putting a new spin on what you already do. Ask yourself, how can I differentiate my business from others? How can I create the perception that my market simply cannot live without me. What do I have to offer?

Define Your Niche. Decide who you want your customers to be. Carefully choose your focus. If you have trouble, then examine the needs of your customers. Match what you’re selling to what the customers want to buy. Make sure your niche is special, unlike anything else out there. Make sure your niche is viable. Is there a market? Is it a strong one?

Repeat the Process. Do it all over again when your niche has grown old. Look at where your market has been and where it’s going. Brainstorm new products and services to add to your business mix and be prepared to respond to change. The secret to successful niche marketing is the ability to grow and evolve with the times.

Brought to you by SCORE “Counselors to America’s Business.”

How to Research a New Business Idea,
By Arnold Sandness, SCORE Counselor

Analyzing the Market :
You have a fantastic idea for starting your own business. But, will others get excited about it too? Who will find that it meets their needs or desires? Business ideas can appear in many forms, but all ideas need to be analyzed to help make decisions that will increase your chances of success.
The first step in researching your idea is to gather data to understand the market and demographic details. Who is your potential customer? Good market research can give you the answers and help you create a solid basis for intelligent planning. So, how do you proceed? Below are some simple steps to get started.

1. Identify the value of your product or service to potential customers. Why would someone buy your product or service? Who will be your potential customers? Where are they? Who is your competition? How do they market their products? What advantage will you have?

2. Assess the characteristics of the market. Is it business-to-business or consumer-oriented? A realistic assessment of the market must include its size, location and competitors. How do you find all the right information that can help you make business decisions? You need to use standard market research methods such as surveys, interviews, focus groups and test markets. Using these different methods is covered in "new_biz_idea_part2.html".

3. If you have a product or service that you plan to sell to businesses, list the types of businesses that are potential customers and get company names and locations from the reference books in main libraries or the Internet. One standard reference guide for business information is the Thomas Register. Two good examples of Internet databases are "http://www.referenceusa.com/" and http://www.netadvantage.standardandpoors.com/.

4. If you plan to sell directly to consumers, analyze the consumer market. This is usually more complex than the business market. Research demographics including population, age, sex, location, income levels, housing and purchasing patterns. In addition to the Internet resources mentioned above, you can refer to statistics from the U.S. "http://www.commerce.gov/" and "http://www.census.gov/" data.

Analyzing Market Appeal
You have a fantastic idea for starting your own business and you have researched your market. Now you need to analyze the market appeal of your product or service to help you make decisions that will increase your chances of success.
There are four basic methods of measuring reactions to the appeal of your product or service: interviews, surveys, focus groups or test markets. No matter what type of research you conduct, formulating a good questionnaire is a key factor for success. The questions must be straight-forward, easily understood, and able to be completed quickly. Each method also requires a review of the situations in which the questions are asked and detailed summaries of the results. Comparisons of the results of the different methods can lead to reliable decisions to accept or reject a set of data.

Here are some tips on the four main types of evaluation methods.
1. Interviews - When conducting interviews, you can start with friends, neighbors and relatives, but you must include strangers to achieve a more objective set of answers. Be sure to tabulate answers in a way that can also be used for the results from surveys and focus groups.

2. Surveys - Use the same questions in surveys as you did for interviews. Surveys can be conducted by mail, telephone or in public places. Recognize that surveys often involve costs in postage, time and labor. The percentage of people responding will be low without some sort of incentive.

3. Focus groups - Focus groups usually require payment to each individual for the time they spend in each session. So be sure to consider the cost factor in using this method of research. In some locations, the marketing department of a university may be willing to conduct the focus group for a reasonable fee. The facilitator (leader) should introduce each of the questions used for surveys and individual interviews. Comments from the group should be tabulated into the same categories as other results so that they can be compared.

4. Test marketing - Test marketing is a way to expose your product or service idea to the real world. This method of research can be more difficult to analyze because the results, or sales, can be influenced by any one of the five Ps of marketing: product, packaging, price, promotion or placement. Try to isolate one of the factors in order to get meaningful results.
So, is your fantastic idea for a business going to result in ultimate success or plunge you into a world of mystery? Good meaningful research can help you answer that question and make the right decisions.

2007-04-24T06:54:00.000-06:00

60-Second Guide to Coming Up with a Powerful Business Idea
You’re all set to start a small business. You have the drive, the desire, and the commitment to make it work. You lack just one thing—an idea for the business itself. Don’t worry. Even successful entrepreneurs sometimes have difficulty deciding their next move.
In just 60-seconds, we’ll show you the steps to come up with the idea that will get you started on the road to small business success.

0:03 Put Your Research into a Plan. Incorporating your research and ideas into a business plan is a good exercise that helps you assess possibilities, contingencies, opportunities and limitations of any business idea, whether you decide to follow through or not. The small business experts at SCORE will take you through the steps of building a business plan and help you read between the lines.

0:12 Follow the Wingwalker’s Code.In the early days of the airplane, daredevil men and women would perform acrobatic feats on the wings while soaring above their amazed spectators. They had a simple rule for survival that’s just as applicable to entrepreneurs: don’t grab for something unless you already have a firm hold on something else. In other words, conduct your small business exploration around your current career responsibilities. There’s no pressure for hasty decisions or investments and your mind stays free to think through ideas.

0:28 Research, Research, Research.Learn everything you can about areas or types of businesses that interest you. The more you discover, the easier it will be to spot a trend or need that a small business like yours can fill. Sometimes, investigating one idea will lead you to another one that is more promising or simpler to implement.

0:34 Seek Out a Sounding Board.Friends and family are good sources of feedback, but their experience and emotions may cloud their objectivity. You want expert advice from a person who will ask the right questions, and not feel guilty about offering criticism. Many current and aspiring entrepreneurs find that consulting with a SCORE volunteer counselor guides their thinking and alerts them to hidden considerations and risks.

0:47 Trade Places.Your powerful business idea may be related to something you already do or are familiar with. Put yourself in the place of a customer and consider what aspects of the product or service you like and dislike and what elements might add value.

0:60 It’s All about Attitude.A positive, optimistic outlook is the foundation for achievement. You must accept that everything you do—research, asking questions and good old creative brainstorming—is both necessary and worthwhile to reaching your goals. Be willing to learn and, if you can afford to, experiment. And always use mistakes or failures as learning opportunities.

Do You Have the Mindset and Skills to be an Entrepreneur?
You probably already know that starting a small business requires extensive research and analysis of many factors. But the one requiring the most critical assessment is often overlooked by many entrepreneurs. And, it’s as close as the nearest mirror.
That’s because wanting to be an entrepreneur is one thing; being one is quite another. You will take on responsibilities and commitments far different from those of an employee, even if you have management experience. It’s a challenge that can be exhilarating and rewarding. Unless you’re prepared mentally and emotionally, however, it can also be overwhelming.
Before you study financing options and plan store layouts, sit down and conduct a probing interview with yourself to see if you’re the right person for the all-important job of entrepreneur-owner-boss.

Are You a Self-Starter? Nothing in business happens by itself. As the owner, you’re responsible for everything from establishing your firm’s vision to setting the daily work schedule. The fact that you’re exploring small business ownership and asking questions is a good sign.

Are You a Positive Thinker?The moment you become a business owner, you represent yourself, your business and your expectations for success. What you say and do must convey confidence and commitment to moving forward. Employees who sense these qualities will share that determination to succeed, even under difficult circumstances. If you work alone, there will be days when you have to be your own cheerleader.

Are You Disciplined?Your days of the “9-to-5 routine” are over. Running a small business requires a continuous commitment to quality and detail. You cannot afford to cut corners, miss deadlines or make promises beyond your capabilities. If you plan to run the business from home, you must be able to resist temptations and distractions in order to get your work done.

Are You a Lifelong Learner? Entrepreneurs who continually seek information, new ideas and sound advice have the best chance for success. Being attuned to market trends and issues makes it easier to adjust products and services to customers’ needs and preferences. You’re also in a better position to enhance your competitive advantage and efficiency, and address potential problems before they harm your business.

Can You Market Yourself and Your Business? Some people have trouble with this one because of the negative (and often unfair) connotations associated with being a “salesperson.” No business, no matter how good, will succeed without some kind of marketing. The good news is that promoting your business is easier than you may think as long as you know what to do and how to do it. After all, we all enjoy saying good things about ourselves. When you craft and tell your story in the right way, more people will be willing and eager to hear it.

Can You be Objective? Your ideas and practices may seem “bulletproof,” but reality may be far different. Is there really a need for a particular product or service in your area? Are the hours of operation fair to your employees? Is renting equipment better than owning it? A good business owner knows how to examine an issue from many perspectives and understand that strengths and limitations of each.

So how did your “candidate” for entrepreneur-owner-boss do? If every answer was a “yes,” your small business dream is on its way to becoming a reality. For areas of concern, the solution may be business counseling, management courses, or a concerted effort to discard some unproductive habits in favor new ones.
Finally, make it a point to conduct regular self-reviews. Thinking and approaches that worked in the start-up phase may not be as appropriate for a thriving concern, or if a major market shift occurs. When you work for yourself, you want to be confident the entrepreneur-owner-boss knows exactly what he or she is doing.

by SCORE "Counselors to America's Small Business"

2007-04-23T11:36:00.000-06:00

5 Tips on Technology Planning
By Christine Banning, VP Corporate Relations SCORE

Create a master plan for technology, just as you would draw up a business plan, a budget or a marketing plan.
Design the plan so that it supports your business strategy and goals. Use it to guide technology buying decisions.
Think of technology purchases as investments, not costs. And, remember, when you have an overall plan, your company avoids wasting money on unnecessary purchases or quick fixes.
Start by determining your company’s needs. Look at what problems need to be solved and how technology can help.
Get expert help to guide you. Check your Yellow Pages under “Computers-System Designers & Consultants,” or ask your local chamber of commerce. As always, get references.

Test Your Small Business Plan
So you’ve done a fantastic business plan. Now you can forget about it and focus on running the business, right? Wrong! Your business plan may take you in the wrong direction—or your business could grow in a way that makes your old business plan fit you as poorly as the old clothes you’ve relegated to the attic.

Give Your Business Plan an Annual Check-upYou!

should revisit your business plan at least annually, if not more often. At these annual “checkups” of your business plan, tweak your plan and understand how decisions you make are consistent with it, or are changing in reaction to the market. And don’t forget to consider e-commerce, if it makes sense for your business. Any plan that leaves out e-commerce leaves itself open to skepticism from investors, although there are some venture capitalists dedicated to funding more traditional businesses.

If the Plan Isn’t Working? We hope you would have done a good enough job with your initial business plan that you would not be abandoning the business plan entirely, but merely making some changes based on changing market conditions. For example, if you’re selling a product and realize that there’s a use for that product that neither you nor the manufacturer anticipated, you need to respond quickly and well to that. You want to make changes that are logical. You don’t want to deny your business the opportunity to change just because your business plan says you should be doing it one way, when another way makes more sense and is more effective.
But don’t abandon your business plan entirely unless you’re changing your business significantly. If you do, it means you did a poor job of planning on the front end. And how do you know whether to make that significant business change?
It’s a matter of doing some market research and doing some soul-searching to know whether or not this significant change is the right move for you. Look at your competencies relative to the market. Take a look at what the competition looks like; ask yourself whether you can produce the product or service and if you can deliver.

Do You Really Need a Business Plan?Is it possible to start a business without a plan? You can, but that’s doing things the hard way.There have always been people who’ve jumped into business without ever spending the time to create a plan. Some are successful regardless. But they would probably have been even more successful if they had used a plan. The road might have been a little less rocky and the stress levels a little lower, if they had taken time to anticipate the business’s ups and downs.
Once You Have a Plan . . .To save yourself the headaches and heartaches of a failed plan, it’s a good idea to test it prior to starting the business.

You can get valuable feedback from a:
· SCORE chapter
· Banker
· Relative or friend
· CPA
Just make sure that whomever you ask for feedback is neutral and likely to be constructive. For instance, a family member, in an effort to be supportive, may not mention things you need to hear. Go to someone who will ask you the hard questions.

Official Google Reader Blog: Your (Growing) Google Reader Team

2007-04-22T12:45:00.000-06:00

Official Google Reader Blog: Your (Growing) Google Reader Team

2007-04-16T10:20:00.000-06:00

Patents, Trademarks , Intellectual Property

WHAT IS A PATENT? A patent keeps your idea for an invention from being stolen. A patent is issued by the U.S. Patent and Trademark Office. In most cases, the term of a new patent is 20 years from the date on which the application for the patent was filed in the United States. U.S. patent grants are effective only within the U.S., U.S. territories, and U.S. possessions. A patent is “the right to exclude others from making, using, offering for sale, or selling” the invention in the United States or “importing” the invention into the United States. What is granted is not the right to make, use, offer for sale, sell or import, but the right to exclude others from making, using, offering for sale, selling or importing the invention. (Definition from the U.S. Patent and Trademark Office)

WHAT SHOULD I DO BEFORE APPLYING FOR A PATENT? There are several things to think about and do before you arrive at the stage to file for a patent:
-Document your invention idea. The U.S. has a "first to invent" system. Keep careful records of your work. Read the United Inventors Association's advice at "http://uiausa.com/SubNoviceInventor.htm".
-Be sure your invention idea fits within the definition of a patent. In addition to patents, there are trademarks, copyrights and trade secrets. See the United States Patent and Trademark Office's "http://www.uspto.gov/web/offices/pac/doc/general/whatis.htm" for definitions.
- Learn about patents. Two good starting places are:
1) University of Texas-Austin's "http://www.lib.utexas.edu/engin/patent-tutorial/index.htm" (read about the topics listed at the left of the page before starting the tutorial) and
2) Lemelson-MIT Program's "http://web.mit.edu/invent/h-main.html".

- Study your options. You may (although it is not necessary) file a Disclosure Document Program, a non-Disclosure Agreement, or a Provisional Application for Patent (i.e. patent pending) before applying for a patent. To learn more about these options as well as how to apply for a patent, read the "http://www.uspto.gov/web/offices/pac/doc/general/" at the U.S. Patent and Trademark Office's website.
- Be sure your invention idea is new. To be granted a patent your idea must never have appeared anywhere before. This means you must search magazine articles, books, the Internet as well as all patents on file and pending with the U.S. Patent and Trademark Office. This takes considerable time but is time well spent. Many people discover during the patent search that what they thought was a new idea is not. Be sure to document your searches.
- Develop your idea . create a prototype. Filing for a patent can be costly. Before investing this money, you may want to be sure that the invention is useful. Will enough people buy it to make a patent application worth the expense?
- Hire an expert. Many people hire an Intellectual Property Attorney to prepare and file their application. If you do, check to see that your attorney is listed with the "http://www.uspto.gov/web/offices/dcom/olia/oed/roster/index.html" registered to practice before the U.S. Patent and Trademark Office.

HOW CAN I BE SURE MY IDEA IS NEW?
You need to do an exhaustive search of magazine articles, newspapers, books, Internet websites, and patents on file and pending with the U.S. Patent and Trademark Office. This search is referred to as a "prior art search." This is a critical step in the patent application process that can be quite complex and time consuming.

Before you start your search: Take some time to list keywords that describe your idea. You will use these keywords when you search. To help you list appropriate keywords, ask yourself the following questions:
-What does my invention do?
-What is the end result?
-What is it made of?
-What is it used for?

Follow these steps:
1.Search the library catalog, "http://www.libraryweb.org/libracat.html", by keyword subject. Use your keywords for your subject terms. (The LIBRAWeb Tutorial is a good starting place to learn how to do a keyword subject search.)
2.Search the "http://www.libraryweb.org/databases/". Consult the "http://www.libraryweb.org/tutorials/infotrac/index.html" tutorial or a librarian for help.
3.Search the Internet using "http://www.google.com/" as well as other search engines. (The "google/index.html" is a good starting place to learn how to do a search on Google.)
4.Consult with a librarian to be sure you have searched all possible resources. You may want to call your library first to ask if there is a librarian who specializes in your field. (Use the "http://www.libraryweb.org/libhome.html" to find phone numbers.)
5.Search for all patents on file and pending. See next section.

WHAT INTERNET RESOURCES SHOULD I CONSULT?
You can consult from these website
"http://www.uspto.gov"
"http://www.lib.utexas.edu/engin/patent-tutorial/index.htm" by the University of Texas - Austin
"http://web.mit.edu/invent/h-main.html" by Lemelson - MIT Program
"http://www.invent1.org/"
"http://uiausa.com/"
"http://www.inventorsdigest.com/"
"http://www.inventorfraud.com/"
"http://www.invent.org/index.asp"
"http://www.ipo.org/"
by Federal Library Services and Technology Act funds

Do I need a patent? Intellectual Property: An introduction to protecting your ideas. Definition of intellectual property: IP is a broad descriptor that includes original works by authors, musicians, artists and inventors. These works can be protected in a number of ways.
Protectors of intellectual property: Copyright, Trade Secrets, Trademarks, Patents, Ect.
-Copyright: a function of the Library of Congress. Protects "original works of authorship" that are fixed in a tangible form of expression. Is automatically secured when a work is created, Registration creates a public record. Protection lasts for the author’s life plus 70 years
-Trade secrets: A formula, pattern, device or compilation of information that is used in business. Gives the business an advantage over competitors who do not know it. A famous example is the formula for Coca-Cola
-Trademarks: A trademark is a word, name, symbol or device which is used in trade with goods to indicate the source of the goods and to distinguish them from the goods of others. A service mark is the same as a trademark except that it identifies and distinguishes the source of a service rather than a product.
-Trademark rights: Rights arise from: Actual use of the mark, OR Filing of a proper application to register a mark in the Patent and Trademark Office. Rights can last indefinitely, Term is 10 years, with 10 year renewal terms
-Patents:A patent is a property right granted by the Government of the United States of America to an inventor “to exclude others from making, using, offering for sale, or selling the invention throughout the United States or importing the invention into the United States” for a limited time in exchange for public disclosure of the invention when the patent is granted.

The history of patents is the history of American technology
-Patent term: 20 years from the date of application, subject to payment of maintenance fees Maintenance fees due 3½, 7½, and 11½ years after the original grant. Be sure that you can market your invention!

-What can be patented? Utility patents are provided for a novel, nonobvious and useful : Process, Machine, Article of manufacture, Composition of matter,Improvement of any of the above.

-What cannot be patented? Laws of nature, Physical phenomena, Abstract ideas, Literary, dramatic, musical, and artistic works (these can be Copyright protected)

-Three kinds of patents: Utility patents - granted for a useful process, machine, manufacture, or composition of matter.
Design patents - granted for a new, original and ornamental design for an article of manufacture. The appearance is protected. Plant patents - granted for a new, asexually reproduced plant.

Why do a patentability search? Only new ideas are patentable?
The application process is expensive and fees are nonrefundable!

-You can save money by looking for the time bombs that are hiding out there.
Prior art: To find out if your invention is eligible for a patent, you must search for all previous public disclosures of “prior art”. An average search takes 13 hours!
Look for prior art in: Catalogs, Journals, Newspapers, Sales literature, On the Internet, Previously issued U.S. Patents,Published patent applications

By : Deborah T Leary Manager
Chester F. Carlson Patent & Trademark Center

2007-04-12T07:15:00.000-06:00

The amount of your basis in an LLC (your tax cost) includes:

1) Your contributions of cash & property
2) Your share of LLC profits not distributed to you.
3) Your share of the LLCs debts to others। (In an LLC, loans to the company can increase your tax basis if they are guaranteed by you. In an S corporation, only direct loans to the company by you can increase your tax basis.) LLCs provide more ways to increase your tax cost basis. This illustrates a significant advantage of LLCs over S Corporations. Because of the way these calculations are done, your cost basis may be higher for an investment in an LLC than if you set up shop as an S Corporation.

CONCLUSION
Many businesses should probably start as an LLC. Advantages include flexibility of ownership, ability to gain tax basis through liabilities, and pass-through of profits and losses. If a corporate entity is determined to be required later, the change from LLC to corporation is quick and tax-free.

Make A Profit On Everything You Do.

There's a management theory that says it doesn't matter if Safeway, Kroger (or any business) makes a profit on every tomato it sells, as long as the grocery chain makes an overall profit. This theory has been used for everything from filling airline seats or motel rooms at ridiculously cheap prices to creating 'loss-leaders' (items sold at prices below cost) at retail stores.
There are six problems with selling anything below cost:

1. You need very sophisticated tracking mechanisms to measure, restrict and control sales. If everyone only goes to Safeway to buy loss-leader tomatoes, Safeway will go bankrupt. Therefore, much time and energy must be expended to measure (and, ultimately, restrict) tomato sales. Most small businesses don't have the time or ability to track such information. Most large companies have the ability, but don't use it. Or don't know how to use it.

2. Any time you offer anything below cost, you attract the worst kind of customers - price shoppers. These folks have no loyalty and buy strictly on price. And, their very presence may drive your good customers away. When the airlines began filling their seats with super-discounted fares in the early 1990s, one flight attendant remarked, "We are now getting rude, smelly people who have no manners and used to ride Greyhound. Now they ride with us and are driving our (full fare-paying) business customers away."

3. Loss-leaders are often bigger loss leaders than companies may think. Buying tomatoes for 34¢ and selling them for 29¢ doesn't tell the whole story. By the time you add in the cost of delivery, unpacking, in-store placement, etc., that 34¢ tomato may end up costing 49¢. Suddenly, a small loss-leader becomes a bigger one.

4. Once you've started selling 29¢ tomatoes, you begin to give yourself a reputation. It will be very hard to convince your present customers to pay 49¢ for the same item. I am convinced that many of the problems at Nordstrom have been caused by the 'success' of Nordstrom Rack. Racks were started as a way to offload out-of-season and obsolete merchandise at hot, discount prices. Now, everybody that I know checks the Rack for 'deals' before they go to Nordstrom and pay full-tilt retail. When Midwest department store chain Dayton-Hudson decided to start a discount division (many years ago), they used a different name - Target. With good reason - they didn't want to cannibalize sales from their full-service stores.

5. There's a certain cynicism among buyers which is brought out every time they're exposed to a 'loss-leader'. They're sophisticated enough to know that, if you're taking a loss on one item, you're probably overcharging them elsewhere. Your firm is now perceived as less-than-honest to them.

6. It is well-known that the cost of 'investing for the future' (new machinery, expansion, new promotional materials, etc.) is ever-increasing. It's driven by competition - companies which are always making improvements. How can you invest in the future if you have a negative return on investment? You can't, yet that's exactly what unprofitable offerings provide. In my manufacturing company, we only offered discontinued, hard-to-get-rid-of items at less-than-cost prices. Everything else was priced to make a profit; even though several of our competitors offered 'loss-leaders.' Many of our customers told us that they went to our competitors strictly to buy loss leaders, but bought everything else from us because we offered better service. We could afford to provide better service because we were making more profit than our competitors.
Make a profit on every product or service you offer. It's the key to long-term success in business.

5 Tips for Effective Business Planning
- Clearly define your business idea and be able to succinctly articulate it. Know your mission.
- Examine your motives. Make sure that you have a passion for owning a business and for this particular business.
- Be willing to commit to the hours, discipline, continuous learning and the frustrations of owning your own business.
- Conduct a competitive analysis in your market, including products, prices, promotions, advertising, distribution, quality, service, and be aware of the outside influences that affect your business.
- Seek help from other small businesses, vendors, professionals, government agencies, employees, trade associations and trade shows.

by SCORE "Counselors to America's Small Business"

Business Planning: From the Heart

As an entrepreneur starting or expanding a business, you, too, must work from a plan that engages your heart as well as your head. While you have a plan for your bankers, you must also have a plan for you, the one that speaks to your passions. You must understand that it's business planning from the heart that really builds businesses.
Finding Your PassionIn finding your own passion, focus on what you love, what you're good at, and what suits your personality. Ask questions such as those that David and I raised on that hotel balcony in California: Do I want to be creative? Work flexible hours? Travel? By all means, build charts and graphs.

But build them around parameters that will enable you to create a business that does the following:
· Reflects you; if you're fun, trustworthy and unconventional, these should be your company's core values.
· Involves your passion; it's infectious—even loan officers love associating with passionate people.
· Plays to your strengths; nothing's worse than associating your work with pain or boredom.
· Does business with people who understand and appreciate your values; human beings do their best when they're appreciated.
· Breaks the rules; if you've always wanted a disco dance floor in your boardroom, then have one! (We do, and our customers love it!)
· Doesn't worry about the bottom line; if you're having a blast, you'll do an incredible job, and the money will follow.

By Keith Walton

5 Tips on Technology Planning
-Create a master plan for technology, just as you would draw up a business plan, a budget or a marketing plan.
-Design the plan so that it supports your business strategy and goals. Use it to guide technology buying decisions.
-Think of technology purchases as investments, not costs. And, remember, when you have an overall plan, your company avoids wasting money on unnecessary purchases or quick fixes.
-Start by determining your company’s needs. Look at what problems need to be solved and how technology can help.
-Get expert help to guide you. Check your Yellow Pages under “Computers-System Designers & Consultants,” or ask your local chamber of commerce. As always, get references.

By Christine Banning

Test Your Small Business Plan
So you’ve done a fantastic business plan. Now you can forget about it and focus on running the business, right? Wrong! Your business plan may take you in the wrong direction—or your business could grow in a way that makes your old business plan fit you as poorly as the old clothes you’ve relegated to the attic.

Give Your Business Plan an Annual Check-up.You should revisit your business plan at least annually, if not more often. At these annual “checkups” of your business plan, tweak your plan and understand how decisions you make are consistent with it, or are changing in reaction to the market.

And don’t forget to consider e-commerce, if it makes sense for your business. Any plan that leaves out e-commerce leaves itself open to skepticism from investors, although there are some venture capitalists dedicated to funding more traditional businesses.

If the Plan Isn’t Working . . .We hope you would have done a good enough job with your initial business plan that you would not be abandoning the business plan entirely, but merely making some changes based on changing market conditions. For example, if you’re selling a product and realize that there’s a use for that product that neither you nor the manufacturer anticipated, you need to respond quickly and well to that.

You want to make changes that are logical. You don’t want to deny your business the opportunity to change just because your business plan says you should be doing it one way, when another way makes more sense and is more effective. But don’t abandon your business plan entirely unless you’re changing your business significantly. If you do, it means you did a poor job of planning on the front end.

And how do you know whether to make that significant business change?
It’s a matter of doing some market research—and doing some soul-searching to know whether or not this significant change is the right move for you. Look at your competencies relative to the market. Take a look at what the competition looks like; ask yourself whether you can produce the product or service and if you can deliver.

Do You Really Need a Business Plan?Is it possible to start a business without a plan? You can, but that’s doing things the hard way.
There have always been people who’ve jumped into business without ever spending the time to create a plan. Some are successful regardless. But they would probably have been even more successful if they had used a plan. The road might have been a little less rocky and the stress levels a little lower, if they had taken time to anticipate the business’s ups and downs.

Once You Have a Plan . . .To save yourself the headaches and heartaches of a failed plan, it’s a good idea to test it prior to starting the business.

You can get valuable feedback from a:
· SCORE chapter
· Banker
· Relative or friend
· CPA
Just make sure that whomever you ask for feedback is neutral and likely to be constructive. For instance, a family member, in an effort to be supportive, may not mention things you need to hear. Go to someone who will ask you the hard questions.

by SCORE "Counselors to America's Small Business"

2007-04-11T06:57:00.000-06:00

HOW SHOULD YOU SET UP YOUR NEW BUSINESS?
When you start a business, you have many choices to make। One key decision is choosing the form of business entity you will operate under. For starters, you can set up your business as a Sole Proprietorship, C-Corporation, S-Corporation, LLP (Limited Liability Partnership) or an LLC (Limited Liability Company).

How can you narrow that list down?
Small businesses typically decide against a C-Corporation, because C-Corps generate two levels of federal income tax। The C-Corporation pays one level of tax when it files its federal corporate tax return, Form 1120. A second layer of tax is imposed when the C-Corporation's profits are distributed to the shareholders as dividends. Those dividends are reported and taxed on the individuals federal tax return, Form 1040. Together, these two levels of taxes are referred to as “double taxation.” In addition, state taxes also typically apply to both C-Corporation profits and distributed dividends. Overall, the tax picture for C-Corps is far from ideal for small businesses. Even the current 15% tax rate on dividends does not completely do away with the disadvantages of double taxation.

Doing business as a sole-proprietor eliminates the double taxation curse. There are no corporate taxes to pay, and you only pay individual taxes on your net profits, typically reported on Form 1040, Schedule C. However, as a sole proprietor, you lack the legal protection that corporate status gives you. Owners of corporations enjoy limited liability, but sole proprietors do not. Simply stated, if you're a sole-proprietor, your personal assets are at risk if the business is sued - very risky indeed! That leaves LLCs, LLPs, and S-Corporations. LLPs and LLCs are similar in many ways. One key difference is that LLPs must be owned by more than one individual. Remember, the "P" in LLP stands for partnership - by definition a single individual can't own a partnership. So if you had an LLP with two owners and one died, serious problems that might even cause the business to close could result.
The choice quickly narrows to an LLC or an S-Corporation.

Which is more appropriate for your business?
Well, they are both "pass-through" entities that allow you to avoid double taxation, operating a business without paying corporate taxes. Net profits are reported by the owners in their individual tax returns, and both also offer protection from unlimited liability. Your liability will be limited to your investment in either entity.
When choosing between an S-Corporation and an LLC you need to consider many things. What may be appropriate under one set of circumstances may not be in another. Every business is different, and every owner has different needs and expectations. Let’s review the attributes of each type of entity to help you decide.

THE Corporation.
Created in 1958, the S Corporation was, for many years, the standard form of organization for conducting a small business. S Corporation status provides a way for you to avoid the double taxation imposed upon C Corporations and their shareholders. One advantage of the S Corporation is that income is taxed personally to the shareholders. However, your personal risk remains limited to your investment. In other words, double taxation is avoided and you get the protection of limited liability.
Your corporation chooses "S-Status" by filing a special election, Form 2553। Bear in mind that the “S” status of the Corporation only impacts taxes. Shareholders of S Corporations have all of the same legal protections as those in C Corporations. But as once said by a famous Tax Court judge, "a corporation is like a lobster pot. It's easy to get into…difficult to get out of." In other words, once you have established an S Corporation, it would first have to be liquidated if you wanted to change to an LLC.

LIMITED LIABILITY COMPANY (LLC).
LLCs started in 1977 in Wyoming and have quickly become a popular form of business entity across the country। By default, LLCs with more than one owner (member) are taxed as Partnerships, while single-member LLCs are taxed as sole proprietor ships. As with S corporations, with an LLC you only pay taxes with your personal return. However, if you decide to do business as an LLC, you are not stuck with it. Through special arrangements, an LLC can be set up to become an S Corporation without having to liquidate. There is little risk of triggering a tax by changing from this form of doing business.

SETTING UP SHOP.
Establishing an S corporation is relatively simple and inexpensive. An attorney, or even you, can form a corporation by completing a series of "boilerplate" documents. These forms require you to complete the following information: who will own the business, the business's activity, address, and other miscellaneous details. Aside from being registered as an "Inc., Co. or Corp.", a corporation can also be registered as P.C. (Professional Corporation). This designation is for professionals who choose to operate in corporate form and is popular with doctors, lawyers, and accountants.
An LLC requires a bit more work to get started। Articles of Organization, to be filed with the state and an Operating Agreement (like a Partnership Agreement), should be drafted by a lawyer. In addition, business information about the LLC must be placed in a published ad to give notice to the public that the company is being started. An LLC can choose to be registered as a P.L.L.C. (Professional Limited Liability Company) when its owners are licensed by the state to engage in a professional practice - doctors, lawyers, accountants, and so forth.

DISTINGUISHING CHARACTERISTICS
An S Corporation might be more restrictive than an LLC। There can't be more than 100 shareholders in an S Corporation. In addition, only individuals, estates & qualifying trusts can qualify as shareholders. An S Corporation may not have any non-resident alien shareholders. There can only be one class of stock ownership. Adding a second category or class of ownership terminates the "S" Election, which could lead to unintended and unexpected tax consequences. The income and expenses from an S Corporation are allocated on a per-share/per-day basis. Your businesses' net income, after paying you a reasonable salary, would not be subject to self-employment taxes on your individual return.

The amount of your investment in the S Corporation - your cost basis - includes:
1) Your contributions of cash & property.

2) Your share of S corporation profits not distributed to you .

3) Loans made directly to the Corporation by you.

This "Basis" calculation is important because it is your tax cost. The more you have invested, the more 'write-offs' you can claim when there are losses. LLCs offer more flexibility than S Corporations। They can have an unlimited number of owners and any person, business or trust can be a member, or owner. With an LLC you can choose to allocate particular types of income and expenses between the owners. Doing this can get pretty complicated, so be sure to speak with us about "special allocations." In addition, the status of the business's net income as subject to Self-Employment taxes is unclear.

by SCORE "Counselors to America's Small Business"

2007-04-10T13:03:00.000-06:00

5 Tips for Making the Most of Your Business Plan

- Take the long view and do long-term planning. Map out where you want to be five years from now and how you plan to get there.
-Write the plan yourself. You will learn more about your business by doing so.
-Think of your plan as a living document. Review it regularly to make sure you are on track or to adjust it to market changes.
-Share the plan with others.Who can help you get where you want to go—such as lenders, key employees and advisers.
-Understand that you might pay a price in the short run to obtain long-term business growth and health।

State Business Licenses:

State business licenses are issued to businesses that provide products or services regulated by state law। For example, special state licenses are required for doctors, lawyers, hairdressers, real tors, auto mechanics, private investigators, building contractors and others who must meet state licensing requirements—i।e., a certain level of "certified" training or education. State licenses are also required of businesses that must meet certain state standards or codes, such as restaurants and other establishments that serve alcohol. Each state has different agencies regulating these types of businesses.

To obtain a state license.
Contact your local government offices to see if your particular business requires a state license. Local libraries are another good source for state-specific licensing information.
Obtain license requirement information and application paperwork from the state agency regulating your kind of business. Complete the application and file it with the appropriate state office, and pay filing fees as required. Stay on top of annual renewals and/or other kinds of procedures as required by state law for your kind of business।

Sales Tax Licenses In some states, business licenses are the exception rather than the rule. However, almost all states require a sales tax license or permit for all retail businesses. This allows you to charge sales tax to customers on items purchased. Check with your State Franchise Tax Board on how to obtain this license.
Federal Licenses For a very few businesses, federal licensing is required. In general, federal licensing is required if the business is highly regulated by the government. For example, firms providing investment advice, interstate-trucking companies, businesses involved with meat preparation, and those that sell heavily regulated products such as firearms. If you need a federal license, consider consulting an attorney to either advise you on or handle the entire application process for you. Your business may require more than one business license. Make sure you understand which licenses you must have, as well as the order in which you need to obtain them.
Permits Many businesses are also required to obtain permits. Generally, permits regulate the safety, structure, and appearance of the community as defined by local and/or state laws, typically referred to as "ordinances." Once your jurisdiction determines that your business is in compliance with such ordinances, you will be issued the relevant permit(s) enabling you to legally operate your business.
Local permit requirements vary by jurisdiction. Failure to have the proper permits may prevent your business from opening, and could result in fines or even being shut down. Usually it is best to first research the kinds of permits your business will need and find out what the regulating agency requires. This helps ensure that you are in compliance with regulations and avoid costly delays and expenses related to re-tooling your business after the fact.
Applying for business permits is similar to applying for a business license:
Research the permits you need through the appropriate agency.
Make sure your business complies with the ordinances in your area.
Obtain the proper application forms and/or set-up the proper applications procedures (in some cases, this might be an on-site inspection).
File the necessary paperwork to obtain the relevant permit(s), and pay any filing fees।

Types of Permits Types of permits your business may need include:

· Seller's Permit If you'll be purchasing wholesale merchandise for resale, your state will probably require you to register for a seller's (sometimes called a reseller's) permit or sales tax permit। Usually your State Franchise Tax Board agency grants seller's permits.

· Building Permit If you plan on remodeling or building a commercial space, check local building codes to find out if you'll need to get a building permit। Make sure as well that your business space is in compliance with other local ordinances, such as access and facilities for the disabled, so that your business is eligible to receive the other permits you will need.

· Health Permit If you'll be preparing food as part of your business, you'll also need to get a health permit। Call the governing health department to research the requirements, then make sure you are in compliance and arrange for an inspection.

· Zoning Permit Don't sign a lease without first checking that the space is properly zoned for the use you have in mind। Some cities require that all new businesses get a zoning compliance permit before they open. You can research this through your local library, planning department or zoning board.

· Home Occupation Permit.if your business is home-based, many local governments require that you obtain a home occupation permit. The cost is usually a flat fee or a percentage of annual receipts from your business. Call your city hall and ask them for zoning information in your area. (Also check with your building's management (if you rent) or the local homeowners association).
If for some reason your business is unable or unwilling to comply with an ordinance, you can petition the jurisdiction for a special permit, called a variance, which would allow you to, in effect, violate the ordinance। If you're interested in a variance, talk to your lawyer। Because variances are not routinely granted and can be expensive (in terms of legal fees) to obtain, make sure you really need the variance before you request it।
Finally, if you're not sure which agency in your city or state to contact for specific questions about what your business will require, start with unofficial sources of information। The Small Business Administration (SBA), your local chamber of commerce, trade associations and even other businesspeople or attorneys working with your kind of business should be able to point you in the right direction.

By Erica Diamond

Business Tips

2007-04-09T13:03:00.000-06:00

5 Tips to Jump Start a New Business
· Create a brand. Spend a little money to create a professional logo, business card and stationery. Present a professional image.
· Ramp up Online. Make creating a Web site a top priority. A Web site is today’s calling card. You really shouldn’t do without one. Give people a place to go to learn about your business.
· Make Your First Sale. This is key. Get that first sale even if it’s friends or family at a discounted rate. This counts as getting started, so go for it.
· Promote Testimonials. Get testimonials from your first sales. Start building credibility for your business from day one.
· Build Buzz. Be creative. Look for a special promotion, big event, email campaign or something out of the norm for your business to get people talking about you, your product or service।

Keep your eye on the big picture and prepare for the worst now.

Do Hard Analysis, Don’t Get Bogged Down : When things are good, it’s the right time to conduct an in-depth analysis of your business। Consider doing a SWOT analysis (strengths, weaknesses, opportunities, threats) when business is good, so you can repair your weaknesses while things are running smoothly. Many small business owners fail to look at the big picture because they’re too bogged down in minutiae—the everyday challenges of running the business। But it’s a mistake to ignore the big picture. Take the time to shut out everyday things and force yourself to gain a longer perspective on what’s going on. Look at much longer metrics, such as what’s happened in your business over the past couple of years.

Ways to Look at the Big Picture : Mission and vision statements are good to jump start your thinking about who you are and what you’re really about. What winds up in the statement is secondary. It is the process you go through when forced to take a hard look at your business that is most valuable.
Small business owners should have a good team in place to help them keep the big picture in mind। It’s important that everyone on the team commit to the direction in which you’re trying to move the business. If you disagree with the advice and have good reason, consider getting a new team.

Don’t Forget the Industry as a Whole : It’s dangerous to look at just your own performance on sales and profits। You have to check out the competition. Remember that our economy changes. You can achieve success from making comparisons over time to learn what the competition is doing, what’s different about his or her customers and what’s happening with your own suppliers.

Use Advisors : For small business owners, teams of advisors can be expensive, which is why it is so helpful to seek free advice from organizations such as industry trade associations, SCORE or the U.S. Small Business Administration.
Advisors will be able to identify trends in your business sector, new developments, and who’s succeeding and why। It can be hard for business owners to do this after operating on their own for a number of years, but the outside perspective is invaluable and will help you evaluate your business more effectively.

by SCORE "Counselors to America's Small Business"