Business Information for Entrepreneurs by an Entrepreneur

Word of mouth is one of the most powerful marketing tools that a small business can utilize. We have all heard a friend or relative share details about the excellent price they received on one of their favorite products at a local store. Sharing experiences is a natural fact of life, and you can transform your customers into your best sales force by capitalizing on those experiences.

Here are some exciting methods you can use to encourage your customers to share their enthusiasm about your organization with others.

Referral Programs

One of the best rewards you can give your customers is a free gift, service, or special savings. Give your customers an opportunity to earn such rewards by developing a referral program. Your referral program might have a variety of levels, such as a reward for three referrals, seven referrals, and 10 or more referrals.

A customer should receive a gift or service of increasing value for each tier they achieve. Any person who walks into your store is an eligible candidate for a referral program. It is an all-inclusive and creative way to expand your consumer base.

Customer Appreciation Sales

If your customers know that you appreciate them, they will return to you time and again to meet their needs. Host special events exclusively for those customers who have helped your business succeed. These events might include special savings during certain business hours, buy-one-get-one-free specials, and discounts on purchases exceeding a certain dollar amount. Your customers will gladly share their special savings with friends and family, generating an increased interest in your small business.

Family and Friends Events

If you truly want to access your customers’ connections to reach a broader audience, then host a special friends and family event. Distribute coupons or buy-one-get-one-free promotions to your customers and employees that they can pass along to family members and friends.

The best way to circulate coupons for friends and family events is right at the cash register after a sale has been made. This will generate a host of new traffic for your business with the potential for building lifelong relationships.

People enjoy sharing their stories and experiences, and they are very likely to tell it to five or more of their personal acquaintances, especially if they have an incentive. Customers are a valuable marketing tool that can help your business through word of mouth.

Everywhere you look, there is a new eco-friendly product or initiative. Green recycling containers are popping up on every street corner, and some city busses are now powered by electricity. There are even eco-friendly soaps and organic t-shirts.

The responsible thing to do is to join the green trend and start looking for ways to turn your office into an eco-friendly environment. Here are three eco-friendly ideas that will get you and your staff moving toward a cleaner, greener workplace.

Eco-Friendly Suppliers

If you want your organization to be more eco-friendly, start by making partnerships with eco-friendly suppliers. This means using eco-friendly paper products, office supplies, and even switching to eco-friendly organic fabrics for employee uniforms. These products are easy to find today, and they are priced affordably so that you can transform your office into a more eco-friendly environment.

Go Paperless

Many organizations have found ways to eliminate paper processing with online billing and other types of electronic forms. These are relatively easy to develop with the help of an IT professional. Microsoft Word also provides a variety of templates that may be useful for your small business. There are even copy machines that can create a .pdf file and email documents to a designated address.

With the word paperless, we mean no Post-It Notes, memos, or “while you were out” messages. Email is a great tool, and you should encourage your employees to use it. Rather than leaving a note on someone’s desk, send an email.

Telecommuting

Do you have staff members who are dedicated, driven, and require little to no supervision? These high-performing employees may be prime candidate for telecommuting. Allowing employees to work from home on certain days of the week will cut down on the expenditure of fuel. Research also shows that employees are 30% more productive when they work at home. There are fewer distractions and less interruptions at home than in the office. You can reward your high-performing staff with work at home privileges while simultaneously helping to reduce the carbon footprint of your staff.

These are just a few of many simple steps that you can take to make your working environment more eco-friendly. Going green isn’t just a fad or a trend; it is the responsible thing to do.

Business referrals are a small business owner’s lifeblood. So much has been written and read about referrals, but for a small business owner with a lot of tasks on hand, cultivating client referrals can seem like an endless task.

How do you get referral business opportunities? When you do good work for a client, thank them for choosing you, and let them know that client referrals are welcome and appreciated.

The following is a list of five other great ways to get client referrals:

• Do great work.

  By far the best way to get great business referrals is to do great work. People are proud of themselves when they find businesses that provide them with above-average service and products, and they want to tell others of their good fortune (and their good business sense).

  Do great work, and your clients and customers will be the best marketing tools you could ever ask for.

• Build a mailing list.

  A mailing list of all your client referrals can be a powerful tool in your promotional efforts. Because they are already pre-sold on you and your business, your referrals will generally welcome hearing from you on an ongoing basis.

  Your clients can also opt into and out of your mailing list easily and with the barest minimum of muss or fuss.

• Keep your mailing list informed.

  Many small business owners have discovered the value of keeping their business referrals up-to-date with the latest news about their products and services.

  Not only do past and present clients enjoy reading such stories, but they also really enjoy reading about themselves. Make a point of playing up customer success stories as much as possible.

• Always send a thank-you note.

  People appreciate it when you take the time to thank them for sending you a referral for business. Whenever a new customer is referred to you, make a point of immediately sending a handwritten thank you note to the referrer.

  It’s far better to take the time to personalize your thank-you note than to just dash off a quick e-mail. Depending on the nature of your business, you can also send a small gift or a certificate good for a discount on your client’s next purchase.

• Make referrals yourself.

  As your business grows, you’ll soon find that people come to you seeking referrals. Pick out several high-quality and trusted companies to use for referrals, and be sure to let their owners know when you have sent a client their way.

  Not only will your clients be thankful for the business referral, but the companies to which you make referrals will also be more likely to make client referrals to you.

If you are running a small business or considering running one, you will directly help with creative and productive output, and economic growth in your community and employment. That is reason enough to consider joining the ranks of small business owners.

It is a proven fact that small businesses employ a large segment of the U.S. population. If it weren’t for small business owners, the GDP of the U.S. would be much lower and unemployment would be much higher.

What Is A Small Business?

A small business is any business that produces annual revenues of $2 million dollars or less. Broken down into simple terms, small businesses account for fewer than 25% percent in services or sales, and can earn as much as 27% or more in annual gross profits.

Why Run A Small Business?

Small businesses are also beneficial to those who start them. There are many people with incredible talents, gifts for invention or creativity that would otherwise be left untapped. They would not realize their true potential by working as an employer of another company or larger corporation.

People who run a small business work the hours they want and need to, while achieving their business goals, giving them the benefits of being entrepreneurs.

Other benefits to running a small business, especially from home, are:

• Lower overhead if just using a home office
• Lower costs for equipment, stationary, business attire and furniture
• More support through government grants, programs, seminars and loans
• Choosing your own health insurance package with discounts as a small business
• Flexibility in working hours
• The freedom to create and invent while making a living

What Are The Disadvantages Of Running A Small Business?

Usually, if planned right from the early stages, most small business will have only a few aspects that make running them a challenge.

However, there are some disadvantages to running a small business that are not necessarily bad, though they can be time consuming. These include:

• A single person small business – one person holds the responsibility for everything
• There are legal limitations to financial assistance amounts allowed for small businesses
• Competing with larger or more established businesses for a part of your chosen market
• Government laws and regulations can be restrictive
• Paperwork is no different for any business, but small business owners may have fewer hands to cope with this and it can sometimes be overwhelming
• Insufficient capital to grow and take on hired help or keep skilled workers

Inflation can affect the growth and profits of the company as expenses grow, while incoming business may remain the same or not grow enough to accommodate the changes

Just like anything, negatives are unfortunately a necessary part of running a small business. But by planning well, you can ensure that your small business is not only successful, but thrives in today’s competitive business environment.

1. Get a Professional Evaluation Done

To get an idea about the right asking price for your business, you will need to get it evaluated. There are many accounting firms that can evaluate your business by using your financial statements and comparing them with available national data and current market conditions. The accounting firm that you choose should have prior experience in evaluating and selling similar-sized firms.

You will also need to ensure that all your accounts are maintained in a proper and legal way. You must be able to produce your tax returns from the last five years. Your previous years’ balance sheet and profit & loss statements will also need to be made available for scrutiny by any potential buyers.

Have all legal records regarding your business ready for review. A proper file with all the relevant records will make it easy for potential buyers to study the details of your business and make an informed decision.

2. Use the Media

In order to get proposals from a wider variety of buyers, it is essential that more people know about your intent to sell your business.

You should advertise in select newspapers or even in related association and trade publications. This might prompt some of your competitors to consider buying your business – and since they are already in the same industry, it would be easy for you to communicate with them on the same wavelength.

You can also use the Internet as an advertising medium; it is cheap and its reach is limitless. You can also post your decision to sell your company on your own Website if you already have one running.

3. Use That Vacuum Cleaner

In order to create a favorable impression to any potential buyer that may drop in for a peek at your business, clean up your workplace.

Spruce up your premises, and apply a fresh coat of paint if necessary. File all your papers in their respective cabinets so that the tables in your office or store do not look cluttered or untidy. Creating a favorable first impression is crucial if you want a good offer.

4. Scrutinize All Potential Buyers

Once you do start getting offers from various buyers, then you will need to read the fine print regarding the terms and conditions that they present.

Any buyer who is not willing to pay the entire amount upfront should be scrutinized thoroughly. A buyer that not only offers you a good price for your business but also shows great potential in taking your business forward should be given preference, if you are mentally attached to your business.

Potential buyers will also ask you the reason for selling your business. Therefore, it is essential that you answer truthfully and tactfully.

When running a small business, there is no escaping from the fact that you will face angry clients at some point or another.

Knowing how to handle angry clients can ensure that the harm done to you and your business is limited to a minimum. It will also help ensure that your day is not spoiled by the words or actions of an angry client.

Below are some tips to help you in handling angry clients in your business.

Apologize

Whether you like it or not, the client is always king – so in order to take the steam out of the client’s anger, the first thing that you should do is to apologize and promise to look into the matter.

Do not answer back in an angry tone without understanding the situation first, since it might only egg the client on to launch an angrier tirade against you or your employees.

By apologizing to your client, you will be sending the message that you are ready to collaborate with your client, hear out the problem, and take corrective action.

Do Not Take It Personally

Often, a small issue may be blown out of proportion because the client is too worked up and not thinking clearly.

Other times it could be because they are unloading anger that has been generated somewhere else. Your employees also could have contributed to or generated the anger by neglecting the client in some way.

You should understand that this anger is not personally directed towards you. The customer might be simply protesting the system that your business follows.

Diffuse Volatile Situations

Do not aggravate the situation further, instead try to diffuse it as soon as possible. Hear and understand the reason that the customer is upset and then take the appropriate steps.

If the customer is angry with a particular employee, then come up with an excuse to send the employee outside or into another section of your office or store. Then, either handle the customer yourself, or direct an experienced employee to handle the situation.

Make Amends If You Are At Fault

If it is your fault that a customer is angry, then try to make amends in any way you can. You can offer a special discount on the product that they are buying, or you can include freebies with their purchase.

Make sure that you explain to the customer that you would like to make up for your mistake. Once your client feels that you have accepted your mistake and are ready to act on it, then they will probably be more forgiving.

Learn From Your Experience

You should learn from every angry customer interaction, so that in future you can learn to identify the signs correctly before eruptions take place. By doing this, you can successfully defuse situations before they get out of hand.

Having a virtual storefront is a very inexpensive way of displaying and selling your products – and you can tap into a whole new market by employing this method. Here are 5 tips to help you set up your online store:

1. Create an Attractive Website

The first thing to do is to create an attractive website and register it. You can register your business name as your website if it is available. Mention your company history on your site, along with any milestones that you might have achieved.

Showcase your products in an attractive manner. If you do not want to mention the rates of your products or services for fear of your competitors finding out, then offer an e-mail address where your customers can post their inquiries.

2. Get Your Online Store On The Top Of All the Search Engines

Your website designer along, with an SEO expert, should insert keywords into the code of your website so that it ends up on the top 5 or 10 for any of the search engine results pages (SERPS).

This will ensure that your website has a greater chance of getting hits by qualified prospects than it would have otherwise. If you don’t use keywords that are related to your target market, then your online store probably won’t see many sales.

Your website should also have the capability of accepting online payments through credit card or through traditional methods such as check or cash.

It should also be secure to prevent anyone from trying to hack into your site and defraud you or your customers; your website programmer can help you by integrating SSL (secure socket layer) security into your online store.

3. Offer Special Discounts

In order to get an accurate feedback on how many people are actually placing orders after checking out your online store, you can offer special discounts or freebies for customers who place their orders through the Internet. This will provide you with accurate data on how many people were actually able to get access to your online store.

4. Form Virtual Partnerships

Form online partnerships with different companies that are not in competition with you, but offer related products to their customers. This opens the doors for more customers to enter your site – and this move will benefit not only your business, but also your virtual partners.

5. Sort Out Shipping and Tax Matters

Your online store will enable you to get orders from customers that might be in another state or even in another country.

You should form relationships with reliable shippers who will deliver your products on time to your customers. The tax to be charged to your customers will also vary from state to state and from country to country. Make sure that you know who to tax and how much.

1. Have I done the best possible survey of the current market conditions?

Before taking any concrete action in starting your business, you should conduct a survey of the market conditions involving your products.

Check the amount of investment needed, the location best suited for your business, sales and marketing strategy required, and also the competition presently in the market.

2. Have I arranged for long term financing?

Your initial investment will probably not be enough to ensure that your business functions smoothly. Regular investments will be required, even after your business begins.

Most small businesses fail within the first 5 years of starting not due to lack of customers, but because they don’t have a solid financial plan. Planning from the very beginning will prevent financial disaster from ruining your chances of survival.

3. Do I have a business plan and are those plans in writing?

You should plan each move concerning your new small business carefully. Your business plan should be in writing – and may change over time.

Any changes must be made smoothly, and only after careful consideration of how doing so might impact your business.

4. Is my retail location ideally suited to my type of business?

It is very important that the location of your business is suited to the types of products you sell or services you offer.

If you are planning to sell consumer goods, then you should have your store located in an appropriate retail location with ample lighting, parking, and security.

A location suitable for one type of industry might not be suitable for another, so match your location with your products and services.

5. Have I devised an aggressive marketing plan?

You will need to have an aggressive marketing plan in order to survive in an increasingly competitive business environment. You should set aside a budget specifically for this. Doing so will allow you to reach your target audience, so that people are aware of your business’s presence.

Unprepared business owners often find themselves stuck with products they can’t sell simply because of poor marketing.

Here are some of the important features of these invaluable sales management software tools.

Data Segregation Tools

These tools help you to separate your data into different segments to make it easier for you to understand the results.

When there is too much input coming in too fast, then these tools can accept, process and display results in a clear and precise manner.

Time Management Tools

These tools are available in the form of computer programs and can be purchased over the Internet. Most programs are also compatible with popular operating systems and no special hardware needs to be purchased in addition to the management package.

Sellers will also conduct online classes for your staff, so they can become familiar with the finer details of the software. But make sure that the program you select is flexible, so that it will expand as your business grows.

Tracking Tools

These management tools help you keep track of your sales figures and achievements. They have calendars, to-do lists, and reminders so that your sales staff can take the right action at the right time.

If you have a number of sales representatives in the field, these tools will give you reports on the activities of each of the teams based on their entries into the program, from wherever they are situated.

You can also find out how your customers’ inquiries are being handled; and if negotiations are going on with your customers, you can also find out the status of those negotiations.

Real-Time Databases

These tools link your customers’ details like addresses, telephone numbers, and email addresses, so that you can be in touch with them on a real-time basis.

The database program that you select should also be able to merge with your accounting and inventory software, so that you can have access to your customers’ past history regarding sales.

Good database programs also help you keep track of inventory, so that you have that information available when you are carrying on discussions with customers, suppliers or investors.

Reporting Tools

These tools generate informative reports by showing your small business’ past performance and predictions based on it. This will help you chart out the proper course to reach your goals.

Sales management tools are very effective weapons for your business – they organize data, reduce confusion, help you know your past and current standing, and predict your financial future.

1. High Quality Products Supported With A High Level Of Service.

You need to ensure that the quality of your products is way ahead of regular market standards.

You should strive constantly in order to maintain your high quality level and you’ll have to back your quality products with an equally high level of service. This will result in your reputation moving a cut above the rest.

Introduce new products at regular intervals to satisfy your clients’ needs and to increase your product range. If you do this, your sales will also increase.

Arrange regular in-house audits of your service levels in order to keep improving your clients’ level of satisfaction.

2. Develop Good Negotiation Skills.

You need to develop good negotiation skills in order to get the best possible deals. These skills will be tested when you are dealing with clients. You will have to negotiate with your suppliers in order to get the lowest possible rate for your products.

If you cannot convince your suppliers to reduce their prices, then try to get some concessions, such as an extended credit period, free shipping or after-sales service.

3. Form The Right Team Of Employees.

Your business’ success depends on how well you can train and motivate your employees. By rewarding deserving employees, you will also motivate the others to try harder.

Once your employees learn to trust you, then they will be willing to put in extra effort in order to achieve your business’ goals.

4. Have Continued Passion.

It is important that you do not let the flame burn out during the course of running your business.

Having passion for what you do will ensure that you strive to work harder than ever in order to succeed in your business. If the passion starts to fade away, your employees will notice it – and it will reflect in their actions.

5. Constantly Upgrade Your Skills.

You cannot afford to become complacent, even after your business begins to succeed.

There will be new products with advanced features that will need to be introduced to your clients. New competitors may also join existing ones in the market.

Upgrading your skills is an ongoing process – and it should stop only when you retire from your business.

6. Market Aggressively To Develop Your Brand.

In order to create a pull for your product and your business, you will need to adopt aggressive marketing strategies that will establish your brand firmly in people’s minds.

Correctly identifying your target market and establishing a continued market presence can make a big difference between success and failure.