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20 Tips Every Business Should Know

January 2009

 

ITCS found an article by Ituit that covers "20 Tips that Every Business Should Know"

 

 

#1 Serving a Niche

There are dozens of businesses that offer identical services or products out there. Make yours stand out by serving a niche market. But how can you decide which products or services to offer? Start by asking yourself the following questions:

  • What niche markets exist in my area of expertise?
  • What needs do people have?
  • What type of specialty product or service could fill those needs?
  • Does a specialty product or service like that already exist?
  • If not, can I design one? Improve upon an existing one?

By developing a niche product or service in a market where you have experience, you can better understand your market and provide a service that few, if any, can top.

 

 

#2 Outsourcing Your Work Can Help Save You Time and Money

Accounting. Office management. Marketing. IT. Operations. Running your own business requires so many hats, and it can be difficult to juggle them all successfully. Even if you can’t afford to hire five full-time employees to help you run your business, you can still get help.

Outsourcing the work to contractors or freelancers can be an affordable solution to keeping your business running smoothly. Many freelance websites (guru.com, sologig.com and elance.com to name a few) provide professionals in different fields that can help you on a project or hourly basis. You can even access professionals from around the world, so it is possible to hire a virtual assistant for just $5 per hour.

 

 

#3 Tax Tips

Here are some updates for the 2008 tax year. (All tips may not be applicable in your area — please consult your tax advisor.)

  • The mileage rate for 2008 business has increased from 48.5 cents in 2007 to 50.5 cents.
  • Your 2007 tax refund can be deposited directly to an IRA account.
  • If you are a husband/wife partnership: A qualified joint venture is not treated as a partnership for tax purposes. Each spouse takes into account his or her share of income and expenses on a Schedule C.
  • Subject to certain limitations, an employer can make one-time balance transfers of an employee’s Flexible Spending Account (FSA) or Health Reimbursement Arrangements (HRA) to a Health Spending Account (HSA).

 

 

#4 Increasing Sales the Easy Way

You know there’s no secret to effortless sales — just a lot of hard work and a little luck. But you can get some advice on tried and true tools that can boost your bottom line.

  • Website. Every business needs a website. It doesn’t have to have all the bells and whistles, but it should be well-designed and professional.
  • Brochure. Many people are visual and like to have an easy-to-digest form to help them make the decision about whether to buy from you. A simple 3-fold brochure can get across the message you’re trying to convey, which should be what you offer and what solutions you provide your customers.
  • Advertising. The world of advertising is ever-expanding. You have so many options: online, print, television, radio…the list goes on. Today, internet advertising is typically the cheapest and most flexible option. You can place ads on websites and blogs that pertain to your company’s industry and change them as often as you want.

 

 

#5 Create a Home for Your Business on the Web

Advertising and marketing are essential to successfully growing your business. And while different types of businesses lend themselves to different forms of advertising, every business can benefit from a professional, well-designed Website. Why? With a quality Website, your business can:

  • Reduce marketing costs. It costs less to build and maintain a Website than it does to print marketing materials or catalogs.
  • Generate awareness of your business, 24 hours a day. A Website never closes, so your customers can find you, learn more about you, and buy from you any time.
  • Offer your customers a convenient way to purchase your product. More and more people prefer shopping online, so consider adding an e-commerce component to your site.
  • Increase your geographic range. People all over the country could be looking for your product. A Website helps them find you.
  • Enhance your image. If you want to present a credible, professional image to your customers, you have to have a Website. And if it’s a well-designed site that accurately reflects your brand and values, so much the better.

 

 

 

#6 Where to Get Money

Banks aren’t the only source for business financing these days. Depending on your situation, you have several sources you can look to for funding your business’s growth. See which of these is right for your company.

  • Friends and Family: If you have close contacts with cash, consider asking them to invest in your company, either loaning you the money to be repaid, or in exchange for equity in the company.
  • Bank Loans: Probably the most traditional form of commercial finance, a bank loan can provide you the money you need, and you won’t have to give up control of your company to get it.
  • Angel Investors: Angel investors, private individuals who provide funding to companies, serve two purposes: they get you the money you need and serve as mentors. They may require equity in your company.
  • Grants: Grants are sums of money awarded to finance a particular activity or facility. Generally, these grant awards do not need to be paid back. Federal agencies and other organizations sponsor grant programs for various reasons, such as the ability to fit your business’s proposed activities within the grantmaker's interest areas.

 

 

#7 Hear a “Yes!” from Venture Capitalists and Angel Investors

Financing your company is key in the growth of your business. Venture capitalists and angel investors can help you get the money you need to move ahead. Here’s a checklist that will increase your chances of attracting venture capitalists.

  • You have a track record. Investors look for established companies run by people with experience.
  • You need lots of money. Investors are usually interested in funding businesses that need $250,000 or more.
  • Your company is growing. Make sure you can prove that your business is viable and booming. It’s the old adage: “You need money to get money!”
  • You don’t mind giving up some control. A venture capitalist or angel investor will take part ownership of your company and may require you to involve him or her in the management process.
  • You have an exit strategy. Investors look for companies with an aggressive exit strategy or that plan to do an IPO within 7 years.

 

 

 

#8 Getting a Grant to Grow

As a small business owner, you may be eligible for a variety of financing options provided by the Small Business Administration and other organizations. Grants are great because they're free money. Typically grants are designed for business owners in a specific niche, such as technology, veteran-owned, women-owned, and minority-owned.

If you qualify, getting a grant you don't have to pay back affords your business the opportunity to grow. But know that grants can be hard to get. You're often competing with hundreds of other qualified businesses, and one small mistake in the application process can disqualify you.

Also note that the Small Business Administration does not offer grants to start or expand small businesses, though it does offer a wide variety of loan programs. While the SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments.

 

#9 “Do You Accept Credit Cards?”

In the early days of setting up shop, creating a business checking account, managing financials and being able to accept credit card payments seems daunting. It doesn’t have to be.

The right merchant service software can process credit cards easily. If you use QuickBooks for your finances, QuickBooks Merchant Service is one option that can integrate into your QuickBooks software, eliminating the need to enter transactions by hand. This can help reduce the risk of data entry errors.

 

 

#10 Involve Your Customers

Studies show that it’s cheaper to create a repeat customer than to bring in a new one. Here are some tips to get your customers begging for more.

  • Incentives. Everyone likes freebies. Offer repeat buyers discounts or free gifts.
  • Communication. Keep your customers loyal by sending a monthly email newsletter or direct mail sales flyers.
  • Customer Service. If you treat customers well, they will come back. Always be courteous, and make an effort to learn your customers’ names so that you can use them while interacting!

 

 

#11 Plan for Growth

While having more sales than you can handle may sound great, if you don’t manage it well, your product or service may suffer — and that’s when you risk losing important customers. Plan for growth before it happens so that your business doesn’t experience a hitch when you skyrocket to success.

  • Is your facility large enough to handle inventory for growing sales? If not, make plans to add space or move to a larger facility.
  • Do you have enough staff to handle busy seasons (before the season hits)? If not, consider hiring temporary help to keep the business running smoothly.
  • Is your operations team equipped to handle growing responsibilities? If not, hire an accountant, a manager or whomever you need to ensure every job gets done properly.

 

 

#12 Keep Improving Your Operations

Every business can stand to improve. That’s what keeps competition alive and kicking! Assess your business’s areas of operations regularly (every 6 months or year) to find areas you can make better.

  • Is every customer service call being answered promptly?
  • Do you have a high rate of returned products?
  • Is your overhead costing your customers too much?
  • Do you get complaints about store employees?
  • Do your accounting procedures need an overhaul?

By asking yourself these types of questions, you can easily see where you can make a few small changes to make a big difference to the company.

 

 

#13 Getting a Testimonial

You already know that a testimonial is worth its weight in gold. Testimonials on your website can assure potential customers that you’re great at what you do. Don’t be afraid to ask for a testimonial! Here’s how.

Choose your best three to five customers. Send them an email asking if they would be comfortable giving you a testimonial and write one for them. Include information relevant to their experience with you. They of course can write their own, but some people would prefer to review what you’ve written and approve it. Make it easy!

 

 

#14 Press Releases That Work

You know press releases can help boost your business, but you feel like you’re throwing them into a black hole. Here are some tips to get yours read.

  • Target: While you can certainly send your release out through distribution services, it pays to research editors at specific relevant publications to send it to directly.
  • Follow Up: Editors get hundreds of press releases each day. By following up to see if there is interest in your release, you stay on the mind of editors.
  • Update: If an editor says they don’t cover this area, make notes in your contacts list and leave them alone next time. Never annoy the editor!

 

 

#15 Be the Brand: Marketing Yourself

If you are a small business owner, your business isn’t the only thing that needs to be marketed. Because you are the face of your company, you need to promote yourself as a brand so that people know who you are.

The foundation of any business is building and maintaining relationships. Whether you sell something online or have clientele that visit your store or office, you’re building something with them. Become more than just a pretty face; engage in conversations, send personalized emails, send handwritten notes. Become the personality behind your brand.

By linking your personality directly to your brand, you’ll notice more people will be attracted to your company. People like to be able to relate, and a warm smile beats an impersonal corporation every time.

 

 

#16 Learn about Supply Chain Management

If you work with inventory or raw materials, you may come across the term “supply chain management.” What exactly is it?

SCM is the planning, implementation and control of operations in the supply chain, conducted to the most effective level possible. This involves:

  • Procurement
  • Logistics
  • Sourcing
  • Collaboration with suppliers

In order to have an efficient supply chain, you must be able to manage the distribution, information systems, inventory and cash flow of all the operations in between buying your materials and having them safely stored in your facility.

 

 

#17 Using Sales Promotions to Increase Revenue

Sales promotions are great tools to bring in more sales. Try some of these effective suggestions in your business:

  • Package Deal. If you have a product that isn’t selling well, consider tying it to the sale of another product and selling the two items together.
  • Percent Off. Discount coupons of 10 or 20 percent off encourage people to buy more.
  • Free Shipping. If you have an online retail store, free shipping is a great incentive that encourages people to stock up their virtual carts — and depending on volume, you may be able to negotiate discounts with shipping companies to lower your costs.
  • Discount on Next Purchase. When your customers buy from you, stick coupons in their bags that provide discounts on their next visit to your store.
  • Refer-A-Friend Programs.. Word of mouth is the cheapest form of advertising — and in today’s cluttered marketplace, it can also be the most effective. Offer your customers incentives and rewards to refer business your way. You’ll keep your existing customers happy and involved in your business and gain new ones.

 

 

#18 Get Your Marketing and Business Plans Together

Every entrepreneur needs both a marketing and business plan. A marketing plan focuses on the marketing and promotion of your products or services. It helps you create an action plan for where your company is going in the upcoming year.

A business plan is a detailed presentation or report that outlines:

  • Company Goals
  • Products/Services
  • Operations/Management
  • Product Development
  • Financial Position
  • Income Statements, Cash Flow, Expenses

 

 

#19 RSS 101

If your business generates a lot of news in press releases, blogs or speaking engagements, your contacts may benefit from a Really Simple Syndication (RSS) feed.

What’s RSS? Essentially, RSS serves as a teaser to get readers interested in finding out more about news or an announcement. Regular visitors to your website can subscribe to your RSS feed and get instant notification of product announcements, financial results, and press releases as you post them. You can include:

  • Press releases
  • Blog entries
  • Product releases
  • Financial news
  • Announcements of presentations and webcasts

 

 

#20 Blogging for Business!

A blog is a journal-style series of posts on a website. They’re casual in nature, and readers can post responses or comments to your blog posts. You can use blogs to:

  • Let readers know about upcoming product releases.
  • Test the market on new ideas.
  • Address customer concerns and issues.
  • Present a more personable face to the customer.
  • Provide resources for information on the industry.