Business Thought of The Day: September 2008 Archives

Small Business Thought of The Day - Small Business Grant Tips

Small business grants are not easy to get. Few are available and competition for the existing ones is fierce.  A grant is a great way to finance a business, however, so pursuing one may be worth the effort for your business.

To apply for a small business grant, you must be well-prepared. Know your business plan inside and out. Understand your market and your financial projections. You must show that you are the best investment option for a potential grant award.

Research grant opportunities thoroughly. Searching the internet will turn up lots of opportunities.  Look beyond government grants; don't overlook foundations and companies as possible sources of small business grants.

Evaluate your funder results to determine whether you fit their criteria and their areas of interest. Some may only fund minority-owned businesses or green industries, for example. Only submit grant requests when you fit the funder's profile.

When submitting your proposal, follow the grant maker's directions exactly. Unless the funder requests otherwise, call the organization and introduce yourself. If your proposal is turned down for funding, call and ask for feedback. You can create a relationship, strengthen your proposal, and submit it again later.

Do your research and prepare thoroughly and your chances for receiving a small business grant will rise. Money for your business that you do not have to pay back will be a major boost as you start or expand your operations.  Don't underestimate yourself; convince the grant maker that you stand above the competition.

See Also:
Small Business Grant - 5 Tips for Getting One!

Small Business Thought of The Day -  Direct Marketing Tips You Can Use Now

Tap into the power of direct marketing when developing your marketing plan. Direct marketing is a tried and true method of advertising that is easily adaptable to newer ways of communicating with customers.

Your goal in direct marketing is to turn readers into buying customers. Effective direct marketing starts with targeting the right audience. Blanket marketing will only increase your costs relative to your return. Make sure you are focusing your efforts on the right potential customers.

You message should be compelling. Concentrate on jazzing up your headline to catch the reader's attention and convince him or her to read further. Include a call to action, telling your reader what next steps to take. Never leave your reader wondering how to access your products or services.

Evaluate your direct marketing efforts. Use AB testing, also called split testing, to compare the effectiveness of your marketing plan efforts. Calculate your ROI, your return on investment, to determine whether direct marketing is increasing your business. Do not assume your plan is successful just because you are getting a response; run the numbers and make sure your increase in revenue exceeds your increase in expenditures.

If your evaluation shows room for improvement, change one aspect of your plan and try again. Repeat this step until you have achieved the best conversion rate. Do not change multiple parts of your plan at once; you will have no way of knowing what change actually caused your improved results.

The success of your direct marketing plan will depend on your preparation and strategy. Create and continuously adjust your direct marketing efforts to achieve the highest return on your advertising investment.

See Also:
Direct Marketing - 6 Simple Tips You Can Use Now

Small Business Thought of The Day - Business Phone Systems Tips

Phones are not going away anytime soon, even with the rise of email and the internet. What is going away is the concept of a phone as just something you talk into. The ways consumers use phones is evolving, and your business phone system should be evolving, too.

Options for business phone systems are expanding. You can choose a traditional landline phone system or an internet VOIP system, or you can conduct all of your phone business through mobile phones. Regardless of the system you use, be sure your business has all of the features it needs in a phone.

Your first customer service standard, being available to your customers, can be served through basic features like voicemail and call waiting. If you tend to work with several people at once, call transfer and conference call capabilities are a must. Consider the reliability of your phone system provider carefully; you don't want stretches of time when your customers can't reach you at all.

Optional add-ons for your business phone system can improve your customers' experiences. Automated attendants route customers according to their spoken response to recorded questions. Music or advertisements played during hold times let your customer know that the line is still open or makes them aware of other services and products your company offers.

Integrating your phone system with your computer systems can make it easier for employees to track and record phone calls. If you are in sales, a phone system integrated with customer management software can automatically pull up a customer's record as soon as the call reaches an employee.

Shop around and compare the prices and features of different business phone systems. Finding the perfect phone system for your business will enhance your customer service and your bottom line.

See Also:
Business Phone System - 6 Features Your Should Have

Small Business Thought of The Day - Market Research Tips

Internet marketing is all about targeting your customers for the greatest return on your advertising investment. To target your market, you have to understand how consumers choose the products they buy.

Market research gives you the information you need to effectively appeal to your customers. It gauges consumer interest in your product and helps you identify where and how to advertise your product. Effective market research relies on collecting and analyzing reliable data about consumer habits and opinions.

You can perform your own market research by surveying your existing customers or inviting potential customers to participate in evaluating your products. By communicating with your customers, you can improve your products and service while building customer loyalty.

You can also install software that will track how users view and use your web site. Understanding the behavior of your web site visitors helps you advertise more effectively.

There are several types of market research that focus on the product itself. Demand estimation tells you if your product is sellable and how much competition you face.

Commercial eye tracking research determines how your product appeals to consumers. Test marketing lets customers try out your product and make recommendations for improvement.

Other market research methods focus on the consumer's perception of your company. Brand name testing, usually through surveys, evaluates your name recognition and your appeal with potential customers. Ad tracking, the most quantitative research method, evaluates whether viewers respond to your marketing techniques by following through or abandoning the sale.

Before investing in your internet marketing campaign, take time to really learn your market. Know what your customers are looking for and what they like. Targeting your customers through market research will prevent the waste of precious advertising resources.

See Also:
Market Research Tips For Your Small Business

Small Business Thought of The Day -  Business Insurance Tips

As a business owner, you have a responsibility to protect yourself and your company. Business insurance ensures the safety of your business and brings you peace of mind.

There is a dizzying array of insurance options available to you and your business. Talk to your accountant and an insurance agent to find out what you are legally required to have. Then evaluate your business and its environment to decide what additional options you need.

The basic type of business insurance is general liability protection. It protects you from financial ruin in case of a lawsuit arising from personal, property, or bodily injury that occurs at or because of your business. With the risk of getting sued on the rise, General Liability is a necessity for your business.

Worker's compensation insurance is required by law. If you have employees, you must cover them under worker's compensation. Worker's compensation protects your employees and your business by providing medical benefits and money to an employee who is injured or sickened on the job. By accepting the benefits, the employee forfeits the right to sue you over the injury.

If your business is brick and mortar, explore your property insurance options. Review the terms of each policy thoroughly so you know exactly what is covered. Flood and earthquake coverage is usually optional, and maintenance problems may not be covered at all.

Don't forget to insure yourself against risks associated with owning company vehicles. Insurance for commercial vehicles may be different than for your personal automobiles, so explore your options carefully.

The types of business insurance available to you are extensive, ranging from your basic insurance to special coverage against discrimination or to protect board members and trustees. Carefully research your options before making the best choice for your business.

See Also:
Business Insurance - What You Need To Know About Before You Get It!

Small Business Thought of The Day - Failing Marketing Campaigns

Banner ads, eBay, pay per click search engine marketing, email campaigns - there are plenty of internet marketing techniques for your business to choose from, and more ideas are developed all the time. With so many choices and a worldwide potential market, it seems impossible to fail at internet marketing.

Unfortunately, that is not the case. If not planned carefully, internet marketing can drain your budget without bringing in new customers. Effective internet marketing means getting the right message to the right people.

Present a compelling reason for customers to buy from you. Project the reliability and trustworthiness of your business through your website and your emails. Be professional and respectful of the time and intelligence of potential customers who visit your web site.

Your message should be that you trust your customers to make the best choice, which just happens to be your business, and they can trust you to deliver what you promise.

Target your marketing campaigns towards the people most likely to buy your products or services. Research your target demographic and direct your internet marketing campaign towards groups within it. Find the people who want your product and inform them about you. Alternatively, place your advertisements where people who buy your type of product or service can find them, and wait for them to come to you.

If you already have an internet marketing campaign that is not performing well, evaluate its message and its audience.  You may find that some minor tweaks in your strategy will fix your problem, or you may decide to call in experts and do a complete overhaul. Either way, improving your internet marketing campaign can only improve the performance of your business.

See Also:
Why Internet Marketing Campaigns Fail and What to Do About It

Small Business Thought of The Day - Important Business Ethics

The ethical philosophy of your business starts at the top with you, the business owner. Ethics are what you do, not what you think. Create a culture of ethics excellence in your company, and your customers will reward you.

Customers need to feel that they can trust you and your employees. An ethical business can weather setbacks more easily, retain its employees better, and avoid legal tangles more efficiently. Your business code of ethics sets the tone for how you treat your employees, your customers, and your community.

Evaluate and understand your personal values. You cannot keep your personal ethics and your business ethics separate. The way you treat your family and your acquaintances will be reflected in how you treat your customers and your business partners. Know exactly where you stand, so you don't find yourself slipping because you don't have clear boundaries.

Be fair. Don't let personal bias intrude upon your professional behavior. Listen to your employees and your customers, and make ethics the basis of your business decisions.
Foster a reputation for dependability.

Do what you say you are going to do. Make an honest effort to fix problems, and have a plan in place for when things go wrong. People will forgive a lot when they know your mistakes were rooted in honest intentions.

Draw a line in the business sand, and never cross it. The ends do not justify the means, even in business. Ethics means following the Golden Rule: treat others as you would be treated. Respect your colleagues and your clients, and you will receive respect and loyalty in return.

See Also:
Business Ethics - 10 To Keep in Mind

Small Business Thought of The Day -  Search Engine Marketing  Tips

Search engine marketing is different from other internet marketing techniques. It is a passive form of advertising, requiring little outreach effort on your part. By choosing the right keywords and writing persuasive copy, you can effectively bring to your site potential customers who already want to buy.

The advantage of search engine marketing is that it allows consumers to find your business themselves. You don't have to pay for marketing to people who are not interested, and you don't risk getting a reputation for aggressive marketing techniques. Customers trust companies that they find on their own.

Search engines have gotten more sophisticated and continue to improve. Marketing through search engines is therefore evolving as well. Many of the improvements are rooted in new research about consumer behavior. Search engine marketing campaigns are increasingly targeted and effective as the technology and the techniques advance.

A successful web site will continue to draw customers after the first visit. If the content is engaging, traffic will increase through repeat visitors and word of mouth advertising. As traffic increases to your website, your organic search engine listing improves. As more people find your site through direct links or the unpaid search engine listings, your pay per click budget will decrease.

Most internet consumers turn to search engines to find or compare products they want. Create a strong search engine marketing campaign to tap into that market of buyers.

Even with a small budget and limited time, your business can find new customers through search engine marketing.

See Also:
Search Engine Marketing Works Here's 5 Reasons Why

Small Business Thought of The Day - Starting A Business

Who hasn't dreamed of opening his own business, setting her own hours, or being his own boss? Starting your own business is exciting, fulfilling, and fun. It gives you control over your own life.

Starting a business is also stressful. So many decisions have to be made in a very short period of time. Before you launch your own business, take careful inventory of your dreams and your abilities.

What exactly do want to do? Write it down on paper. This is the start of your business plan. Use it to determine your next steps and evaluate your progress as you grow.

What business structure will get you to your final goal? Learn the pros and cons of each structure, and become very familiar with the liability issues of each one. A sole proprietorship may work if you don't mind personal liability, while a partnership may work better if you have a major investor backing you.

What do your customers want? Develop your concept of your product and figure out how to share that concept. Find your target audiences for your message, and love them unconditionally.

Where are your customers? The answer will significantly shape your marketing plan. It will determine whether you need to lease an office building or buy a domain name. Go to your customers, whether through your local newspaper or an international referral web site. Don't wait for them to stumble across you.

The responsibility of owning your own business is huge, but the rewards can be even greater. Evaluate yourself and your idea, and then act on what you discover.  Success will follow.

See Also:
Starting a Business - 5 Issues To Address Before You Begin

Small Business Thought of The Day - Tips on Small Business Loans

Sometimes a great idea just needs a little solid support to turn into reality. Small business loans are designed to be that solid support.

If you are considering opening a small business or expanding an existing one, do a serious evaluation of how much money you need to get a good start. If you can't cover the start-up or expansion costs out-of-pocket, research other sources of investment in your business.

You may be able to sell off equipment that is obsolete or that you have outgrown. A family member or friend may be willing to invest financially in your business.  A business credit card line might provide the extra resources you need, if you can find one with a low interest rate and high rewards.

After considering your options, you may decide that a small business loan Is your best choice. If so, check with your bank to see what loans are available there. You will need to prove to a bank that you are a safe risk, so be sure to have your business plan in order and your references lined up.

Another source of small business loans is the United States Small Business Administration. An entrepreneur-focused government agency, the SBA offers several different financial packages for small business owners.

If you take out only what you need and read the fine print, a small business loan might just provide the extra boost your business needs to start or grow. Explore your options, and make the best choice for your business.

For More On Small Business Loans See:
Small Business Loans and Where You Can Find Them