Small Business Blog

It’s 2:00 a.m. You’re awake, wondering when you’re going to get fired. Part of you says it’d be a relief: no more pretending not to notice that Bob Jones is sleeping with his secretary or that Carrie Winstall is sleeping with her secretary. No more eating cake at 10:00 a.m. because it’s some random co-worker’s birthday. No more politics, bureaucracy and, best of all, no more time-sucking meetings that add no value to your productivity.

In today’s economy, it’s quite likely that you are either facing the possibility of getting laid off, or you are disenchanted with corporate America. Maybe you’ve had your 401(k) contributions yanked, your pay frozen or your benefits cut. It’s happening everywhere. (continue reading…)

What’s standing between you and your dream of self-employment? For many would-be entrepreneurs, the largest obstacle is developing a viable business idea. The experts say you’ll find the right idea by looking at your own interests and areas of expertise. But that exercise could still leave you scratching your head…wondering what you could do, that hasn’t been done already.

Before you scratch yourself raw, try these brainstorming techniques to get the creative juices flowing. (continue reading…)

In May of 2009, small business credit card provider Advanta Corporation announced that it would shut down roughly one million small business credit card accounts. The news is a sign of the times: economic conditions are taking a toll on small businesses and their lenders. If the profitability of small business lending continues to decline, small business owners will be increasingly challenged to locate the credit they need to fund expansions and special projects.

One option that’s becoming more popular for entrepreneurs and small business owners is the merchant cash advance. Merchant cash advance providers offer cash upfront in exchange for a piece of the business’ future sales. While this arrangement technically isn’t an extension of credit, it does generally function like an unsecured small business loan: the business obtains a lump sum of cash and repays it, along with a fee, over time. (continue reading…)

Small businesses have been among the hardest hit by this economic recession, as indicated by recently published data from the Small Business Administration. How’s your small business holding up? Chances are, you could benefit from trimming the fat from your expense structure. Try these six strategies for cutting expenses and improving your small business’ bottom line.

Advertise more efficiently

Cancelling all of your ad contracts isn’t an option if you plan to stay in business. If you are wondering why, read Recession Market Strategies. What you can do is… (continue reading…)

While there are many resources available on how to write a marketing plan, few of them offer practical, straightforward instructions. Some are too complex and off-putting, and others are simply too vague to be useful. Most small business owners and strategists are too short on time to decode lengthy explanations or figure out how to apply boilerplate formulas to their situations. What follows here is a step-by-step plan that will help you organize your ideas and information in the shortest amount of time possible. The information provided is designed specifically for small, emerging businesses and owners who are new to marketing plan development.

The caveat is this: the more effort you put into to analyzing the information that creates your marketing plan, the more useful it will be to you. Consider your plan a work-in-process, and be open to making adjustments as new information about your competitive situation becomes available. (continue reading…)

What information should be included in my plan?  The table of contents for a complete marketing plan should look something like this: (continue reading…)

Simply put, a mission statement is a short paragraph that identifies your company and its purpose. The paragraph generally references the company’s location, products and services, customers, core strengths, and desired public image. Each of these concepts will be covered in detail throughout your marketing plan.

Tips

• Take a stab at your mission statement now, and then revisit it when you’re finished with the marketing plan.
• Many businesses have mission statements posted on their Web sites; if you are unfamiliar with the mission statement concept, visit the sites of well known, public companies and read how their missions are phrased.
• Avoid narrowing the focus too much, as your mission should allow for future growth and expansion.
• Word the statement to impress the people or organizations that buy your products or services.

What you need:

√Your company profile. You have probably written one for your Web site, or for inclusion in a trade association directory.

Questions to ask:

• Why did you start your company?
• Who are your customers and what would you like them to know about you?
• What image would you like to portray?
• What are your company’s strengths?
• What products and services do you offer? What needs do they serve?

The Example

KidsWorld was established in 2005 to provide families and their children a safe, user-friendly Internet community where kids can research, learn, and interact, without fear of coming across inappropriate content or malicious spyware. Designed by parents for kids, KidsWorld is Internet the way it should be: fun, wholesome, and informative.

Your final product descriptions should be thorough and detailed, covering both physical descriptions and selling points for each product. Include only your existing offerings; future product plans will be included in the Objectives section of the plan.

What you need:

√ Product brochures, catalogs, previously written descriptions, product releases, product specifications, sales materials, etc.  (continue reading…)

Your target market is the consumer group most likely to buy your product. This group is usually defined in terms of demographics: age range, gender, geographical location, marital status, etc. It can also be defined in terms of a lifestyle: if you sell karate uniforms (gis), your customers may be kids, teens, adults, etc., but the commonality is their interest in martial arts.

In some cases, the consumer who pays for your product won’t be the same person who uses it. As an example, private tutoring or infant toys are purchased by adults, but used by children. If your product falls into this category, define both the purchaser and the user. This will prompt you to analyze whether you need to market to the purchaser, the user, or both. Toys, for example, are often marketed very effectively to kids, which prompts those kids to ask (or beg) their parents to buy the item of choice. These marketing strategy decisions should ultimately be supported by your consumer research.

Tip

Be as specific as possible about what defines your customer, using demographic and lifestyle descriptors. Narrowing your focus now will help you implement more effective marketing programs later.

What you need:

√ A thorough understanding of your product and the need it serves

√ All consumer research data that supports the marketability of your product

Questions to ask:

• How can I define the consumer group that is most likely to have the problem that my product addresses? How are these consumers similar?
• How might they be different?
• What personal characteristics would prompt someone to buy my product?
• Is the person who pays for my product the same person who actually uses my product?
• On what scale will my company distribute the product: locally, regionally, nationally, or globally?
• Will our distribution system limit our potential customer base?

The Example

KidsWorld users will be English-speaking children between the ages of 9 and 14 who have Internet access at home. KidsWorld purchasers will be financially stable parents who: 1) consider the Internet to be largely adult-oriented and 2) take an active role in their children’s education.

If you have done consumer research and/or product testing, this section of your marketing plan should outline your research findings and how they support your product concept. As well, you should also summarize questions raised by your research and issues you weren’t able to address through research. Describe your methods of research in detail, so that you and the readers of your marketing plan can adequately assess the validity of the conclusions. (continue reading…)