Finding Your Small-Business Calling on Vacation

Most tourists enjoy shopping, but two former corporate executives took it a step further by importing the products they discovered on vacation.
Debby Ruth, an executive on the fast track at a major cable television company, fell in love with Hester van Eeghen’s quirky and colorful handmade leather bags on a shopping trip to Amsterdam in 2004.
“I was absolutely mesmerized and spent half a day in Hester’s boutique,” recalled Ruth, who is now the exclusive U.S. importer of van Eeghen’s handbags, gloves and wallets via Hester van Eeghen U.S.
Ruth admits she never planned to start a small business. But when she was laid off in 2008, she decided to invest her severance package in her own venture: selling van Eeghen’s goods in the U.S.
Amsterdam or Bust
Contacting van Eeghen to discuss the potential business venture was the first challenge. “It took eight months to reach her,” Ruth says. “Hester is one of the busiest women you’ve ever met. I finally hopped on a plane and flew to Amsterdam—without even having an appointment.”
When they finally met over dinner, they explored ways to sell the Italian-made purses, gloves, wallets and briefcases to American fashionistas. Van Eeghen’s hand-sewn bags are pricey, retailing for around $900 for a purse and $300 for leather gloves.
But Ruth’s persistence paid off and so far, the relationship has been positive, according to van Eeghen.
"Working with Debby on the HVE US online boutique was a natural way to have a greater presence in the United States,” said Hester Van Eeghen via e-mail. “We have found the American customers in our Amsterdam shop to be very enthusiastic about my designs. I thought creating the online boutique first would be an ideal way to reach as many people as possible but in a way that was organic."
A Walking Billboard
Soon after van Eeghen made Debby Ruth her exclusive U.S. distributor, Ruth tapped her husband, Tim Lenz, to help her design the sophisticated, minimalist website. Lenz also shot all the photos of van Eeghen’s wares.
Launched in 2010, sales have grown steadily. Ruth said she and van Eeghen split the revenue on the bags sold via the U.S. website. She declined to reveal the financial details of the arrangement or share annual revenues for the privately held U.S. company.
“Our goal is to get big enough to open physical locations,” Ruth says. Meanwhile, she is a walking billboard for her product. “Whenever I’m carrying one of Hester’s bags, people stop me to ask where to buy it.”
Boutique Bubbly
While Debby Ruth found a new career importing handbags, Ruth Frantz, a beverage industry executive, also had a life-changing experience while vacationing abroad. She was visiting several small, mostly family-owned vineyards in France when she was inspired to import the boutique champagne into the U.S. Frantz felt confident she could pull it off, having worked on the global marketing of Ketel One Vodka for a major liquor distributor.
“There are about 4,000 champagne producers in France, yet most Americans only know Moet and Veuve Clicquot,” Frantz says.
Her mission is educating Americans to enjoy the sparkling wine more freely. It’s a challenge, because most Americans drink champagne only for special occasions, Frantz says. Europeans, however, drink champagne to kick off an evening of eating and drinking.
She created a character called Henri and founded Connecticut-based Henri's Reserve about two years ago. For sale is a gift package called the “Guaranteed Seduction Kit” for $300, which includes truffles and candles. One top seller is the $160 "tasting kit" featuring three bottles of champagne and pre-printed cards for making notes about the different wines.
Scaling Up
Frantz depends on food writers, wine bloggers, Facebook and other social media platforms to spread the word about Henri’s Reserve. “We started very small and now it’s all about scaling up,” she says.
Because importing liquor to the U.S. is highly regulated and complicated, Frantz relies on Robert Houde, a Chicago-based wine expert, to manage the logistics. “I source the wines and get them into the country for Ruth,” Houde says. “Our customers really like that these are real wines from real vineyards, versus mass blended wines from big companies.”
Small restaurants looking to set themselves apart from the competition by offering a selection of unique, boutique champagne are a growing percentage of Henri’s Reserve's sales. The privately held company does not release revenues, but Frantz says that although she started the business during the recent recession, sales are growing.
Have you ever drawn business inspiration from a vacation?

12:43 by Robert dawne · 1

How to Get Your Business Involved in a Charity

Being a part of your community means giving back. Businesses that give time, money and other resources to their communities reap many benefits. They have employees who are more involved and productive who are willing to stay. Being involved in the community improves brand visibility and facilitates networking.
"It’s a great way to retain and recruit quality personnel," says Pete Parker, managing director at NPcatalyst, a Reno consulting firm that helps business and nonprofit interactions. "If you let me volunteer a couple of hours a month or week and carry the company name, that makes me proud to be a part of the company."
Here are some suggestions for businesses that want to start giving back.
Think local
Look around in your town, city or region to see which charities need help. Think about small charities, nonprofits and local chapters of larger organizations.
James Coburn, owner of Harbor Consulting IT Services, has set a goal of donating 20 percent of his company's profits each year. Much of that goes to local organizations.
"It started out with local charities like animal shelters, and now we’re pretty involved with a cancer program," says Coburn. "Always remember where you came from."
Do your research
It's vital to research charitable and nonprofit organizations to make sure they're reliable, responsible, open and honest. Nonprofit consultants like NPcatalyst can help you filter out the better ones. You can also research organizations through sites like CharityNavigator and GuideStar.
Consider what matters to you
Find nonprofits that speak to you in some way. This might mean choosing nonprofit organizations related in some way to the mission and expertise of your business. Or, choose groups that speak to your own concerns, or the interests of your employees.
“If you’re going to do it and are able to do it, find something that means something to you," emphasizes Coburn.
Give employees free choice
Some businesses give employees the chance to donate time or money to nonprofits. When employees are allowed to choose which charities to contribute to, employee satisfaction with the charitable-giving program is greater. Employees like having a personal investment in the process.
Keep records
Remember to track all charitable projects for tax and other purposes. Record what money and time is given, as well as when, how and to whom the company donates. If you don't have the resources to do this record-keeping in-house, hire an outside firm or consultant to handle this part of charitable giving for you.
Getting help with the administrative side of charitable work and donations will give you and your employees more time to devote to the charitable work itself.
Gang up
When groups of employees get involved in charitable giving, they build teams. Consider giving time for the whole office, or designated teams, to volunteer at a local event or charity. This practice brings more help to the organization and increases the team spirit of your employees.
One of Parker's clients is a bank that encourages groups of seven to 10 people to work on a project together. It might be clearing trails or packaging food at a food bank.
"The benefit there is employee bonding, and there are a lot of benefits that come out of that," says Parker. "And it’s free—you don’t have to pay for a ropes course."
Though small businesses might not think they have the resources to devote to charitable activities, often they have more resources than they realize. It's a matter of setting aside time or money and understanding how charitable involvement can benefit the business's bottom line as well as the community.

19:18 by Robert dawne · 0

10 Things You Didn't Know About Your Taxes

March 15 is just around the corner. Which begs the question: What don't you, as a small-business owner, know—but should know—about filing your taxes?
With that goal in mind, we asked Mike Scholz, tax director at Wegner LLP CPAs & Accountants—an accounting firm based in Madison, WI, that focuses on individuals and small businesses—for help in identifying the top 10 things that small-business owners don't know about their taxes.
1. Classify your workers correctly. Scholz cautions any small-business owner to beware paying staff as independent contractors. “Worker classification (employee vs. independent contractor) will be a hot topic for the IRS this coming year,” he says. “The IRS recently released training materials for their examiners, so make sure you are classifying workers correctly. Last fall the IRS announced a settlement program for those businesses that wish to re-classify their workers. Under this program, there is substantial relief from potential past payroll tax liabilities for eligible employers that treat workers as employees going forward.”
2. Late fees can be steep. So be sure to avoid penalties by paying the company payroll taxes and filing tax reports on time. “The IRS penalties for late payments and late filings are horrendous,” says Scholz. “The IRS is serious about collecting all delinquent payroll taxes. The IRS will pierce the corporate veil if the corporation does not pay payroll taxes and go after the responsible officer's personal accounts.”
3. Send out your 1099s. There’s a new disclosure this year related to 1099 contractors to beware of, says Scholz. “Business owners will see two new questions on their tax forms this year,” he says. “The first asks: Did you make any payments in 2011 that would require you to file Form(s) 1099? And the second follows up with: If 'Yes,' did you or will you file all required Forms 1099?” The point is that the IRS is making a rather blatant reminder that Form 1099s should have been sent to people or companies they've paid money to—particularly to individuals, LLCs and partnerships that were paid more than $600 for services.
4. Tax return extensions can be your friend. “The extension of your business return also extends the time to make company profit sharing contributions for the year,” says Scholz. For example if you extend your 2011 S Corporation return until September 15, 2012, you also get an extension to make your 2011 profit sharing contribution to the same extended due date. Plus, the tax filing extension is automatic (no reason needed) just file the one-page form.
5. Don't forget to see if you qualify for the small-business healthcare tax credit. “For 2010, only 15 percent of small businesses claimed this tax credit, so it's worth looking to see if the business qualifies for it in 2011,” says Scholz. “The tax credit is generally available to business owners who pay for at least half the cost of employees' insurance coverage, have fewer than 25 employees and pay salaries that average less than $50,000 annually. You can still amend 2010 returns if the credit was missed on the original return.” (Read more on healthcare.)
6. There are tax credits available for hiring veterans. You can qualify for a credit that's worth up to $5,600 for hiring a long-term unemployed veteran, $2,400 for hiring a short-term unemployed veteran and $9,600 for hiring an unemployed veteran with a service-related disability, says Scholz. “Note that these veteran new-hires need to be certified by state workforce agencies,” he says. “The IRS is working on streamlining the paperwork process to expedite the certification process once a veteran is hired.” (Get more tips on hiring for targeted tax credits.)
7. Take advantage of current year net operating losses. Current year net operating losses (NOL) can be carried back two years and forward 20 years. “These loss carrybacks can generate tax refunds in those past years where the business paid tax," says Scholz. “There are strategies to increase an NOL through equipment expensing elections (Section 179 or bonus depreciation). Many businesses have large NOLs generated during economic downturns. Proper planning will ensure the best tax result, so that NOL benefits are not allowed to expire.”
8. The IRS can request copies of your QuickBooks files. “The IRS has been training revenue agents on how to use QuickBooks and instructing their field agents to request your QuickBooks company file as a part of the audit,” says Scholz. “When a QuickBooks file is provided, it includes not only the current year records but all years' transactions included in the software’s data file. We suggest looking into technology solutions that can block those tax years not under audit to minimize records available to a snooping IRS agent.”
9. Not all business meals are subject to a 50 percent disallowance. “Generally, only 50 percent of business meals and entertainment expenses are deductible,” says Scholz. “There are exceptions which allow a 100 percent deduction for meals as follows: trade-show costs, conferences and receptions that are open to the general public. Employer-provided benefits that are relatively infrequent, minor and administratively difficult to track, such as doughnuts, picnics and costs associated with the company holiday party as well as the summer picnic, are also 100 percent deductible. “Another meal that is 100 percent deductible includes where the business is reimbursed for the expense,” says Scholz. “For example, if a business takes a client to lunch and then bills the client for that lunch in a separate line item on the invoice, then the business can fully deduct that meal.”
10. Don't rely on your credit card statements. The statements alone are not adequate substantiation of a business expense. “The IRS requires that any legitimate deductible business expense must be ‘both ordinary and necessary,’" says Scholz. “An ordinary expense is one that is ‘common and accepted’ in your specific trade or business type, and a necessary expense is one that is also ‘helpful and appropriate’ for your trade or business.” But beware that having an expense item on a card statement for purchases made at Office Max or Office Depot doesn't automatically qualify the purchase as a legitimate business expense. “The IRS suggests that businesses keep the original store receipts that itemize the details of the items purchased,” says Scholz.
Previous article: 3 Most Common Mistakes Made When Filing Business Taxes  | Next article: Top 5 Tools for Filing Business Taxes
Darren Dahl is an independent business writer, who regularly writes about entrepreneurship for Inc. magazine (where he is a contributing editor), The New York Times and AOL.  He has also worked with several high-profile authors, such as Keith McFarland on The Breakthrough Company, as well as intellectual property experts Mark Blaxill and Ralph Eckardt on their book, The Invisible Edge.
Photo credit: iStock

14:35 by Robert dawne · 0

Non-Scientists Use Business Savvy to Launch Med-Tech Product

Rebecca Griffin and Teresa Garland had a great idea for a home-health product but they had no scientific background. That didn't stop them.
In 2005, the two Dallas friends were chatting about a friend who was pregnant. She had two girls already and really wanted a boy. An expectant mom can find out the gender of the fetus with the first sonogram, usually at about 18 weeks. But there's a curiosity gap between the first home pregnancy test and that sonogram.
"We said, 'Gosh, you would think there would be a way to tell by the urine whether it's a girl or a boy,'" Griffin says. "How cool would that be?"
Some Internet research turned up an interesting bit of folklore. In the 17th century, women had a fairly reliable test involving grains of wheat and barley. It piqued their interest enough to look for a lab that would work with them.
They were not scientists, but they did know business. Griffin was a partner in a commercial real estate firm. Garland was a business-development consultant for PwC. They called on friends and contacts for referrals.
The search took them to San Francisco, where they found a company known for its quality skin products. It had the expertise and the vision to help them.
"We were on a fast track to get a product developed," Griffin says. "We felt like speed to market was important. We couldn't believe no one had done this before."
In addition to developing a reliable test, the lab had to figure out which week of pregnancy would produce accurate results. It had to keep track of each sample and match it to the sonogram and the gender of the resulting baby.
The lab went down many dead ends, but the biggest challenge was getting enough of "solution," or the urine of pregnant women. It developed a special cup for the solution samples, plus all the packaging and directions.
The two women tried doctors' offices and approached women in malls and offered them $20 to pee in a cup. Finally, they spread the word through churches and schools. Many women began dropping off samples in the mailbox.
"We did a lot of brainstorming and whiteboarding," Garland says. "How do you find the right jar [for the kit]? How do you design your box? Do we need instructions? A syringe? It gets complicated."
Ironically, it took about nine months to create the IntelliGender test. Independent testing facilities have rated it 85 percent accurate.
Both women were still working full-time, investing their own money in the company when the product launched with Internet sales in 2006.
As the orders for the kit increased, with CVS and Walgreens carrying it, Garland and her husband went to work at IntelliGender in 2009 to manage the volume. Griffin kept her job but participated as a full partner in the LLC. The company expanded to Australia and then to 23 other countries.
The kit now retails for $35. The most expensive part of the kit is the syringe for dropping a sample onto the tester—it was the only imported item. To date, the company has sold more than 500,000 kits worldwide.
IntelliGender also sells IntelliCeuticals, natural remedies to support the health of pregnant women and babies. The company aims to bring more complementary products to market.
Looking back, Garland thinks that the partners' business expertise more than made up for their lack of scientific training.
"We both had marketing [experience]. Rebecca had contract negotiations and I had finance and consulting. My husband was IT, manufacturing and logistics," she says. "A lot of inventors have the opposite scenario.
"But if you spend your whole time in the lab, you have no exposure to business. I think that was key to our success. We had the background of how to make it happen."
Griffin agrees. "You can outsource anything you need," she says. "In fact, it's highly unusual that anyone would have all the skill sets you need to develop a product. Tenacity and ambition are the mothers of invention."
Photo credit: Courtesy subject

12:40 by Robert dawne · 0

How to Get the Most Out of Your Morning (Even if You're a Night Owl)

Most people have said it, heard it or thought it on a daily basis: there’s just not enough time in the day to get everything done. And while running a small business is a hectic time- and energy-intensive endeavor, there are ways to plan better and maximize the time you have.
One of the simplest, surest ways to pack more productivity into your workdays is to rise early and take advantage of the extra time you gain in the morning hours. True, an extra 15 or 20 minutes of sleep might feel like it’ll be the difference between going through your day functionally or like a zombie, but if you approach the first part of your day the right way, you’ll be surprised at your focus, efficiency and get-up-and-go.
Studies show that early risers are more productive throughout the day. Plus, waking up early helps lower your stress and supplies extra time other ways too, like allowing you to beat traffic. Here are a few ways to start your mornings the right way, to lay the foundation for more dynamic days.
Eat a healthy breakfast
For generations, it’s been heralded as the most important meal of the day. Well, it’s time we listen. Studies have shown children who eat breakfast perform better at school, and it only seems natural that those results translate to adults. A combination of high-fiber and protein-filled foods (like vegetables, fruits, whole grains and eggs) will provide you the most energy and keep you full until lunch, and on your game when it comes to focusing and solving problems.
Get physical
Integrate a little bit of physical activity to your morning routine, and you'll find your energy levels on the rise—along with your productivity and general demeanor (thanks to those endorphins), too. But don't worry, it doesn't take a 10-mile run or an intense early-morning spin class to help you get a morning boost. Try biking to work instead of taking your car or public transit. Or, explore lower-impact options that are still effective, like taking a walk around your neighborhood or doing some yoga.
Pick out your clothes the night before
It's such an easy—yet often overlooked—way to streamline your morning routine. Michael Harrison at Wired names setting out his outfits the night before as one of his time-saving morning rituals. He rightly notes that even small challenges, like choosing this tie or that, can be more trying and time-consuming than they should be in the day's slow-going early hours. Raid your closet the night before to free up some valuable morning time.
Create a reason to get up early
Embracing the notion of getting up early is one thing, but getting inspired enough to actually enjoy doing it is something else. Having a reason that makes getting out of bed more worthwhile than hitting the snooze button is key. Dave Cheong, a software engineer and entrepreneur who wakes up at 5:30 a.m. every day, recommends thinking each evening about what you'd like to accomplish the following day. Be clear with yourself about what you'd like to accomplish and why it's valuable, and you'll be a more invigorated and enthusiastic early riser. Writing down your ideas can be helpful, Cheong says.
Meditate
Taking some time to center yourself can clear your head, help you to identify your workday priorities and help you cultivate a healthy approach to tackle your day. Jesse Langley at the Meditation Den says it's easy—you just need about 40 minutes of free time in the morning to do it, because it's pointless if you're rushed. That said, you’re free to blend in parts of your typical morning routine, like your must-have cup of joe, to meditation. Calm yourself, focus on your breathing and clear your mind. When your mind is empty, Langley says, start contemplating your priorities for the day, set your goals and decide how to accomplish them most effectively. As you incorporate meditation into your mornings.
So you're a night owl? You don't have to hate mornings
If you run on a more nocturnal schedule, early rising can still work for you—it just takes a little bit more work and adjustment. In order to embrace waking up early, make it part of your routine. It might be tough at first to go to bed at a set (reasonable) time, but the more you do it, the more natural it will feel.
You can help yourself fall asleep and sleep well by eating certain foods (Ecosalon recommends potatoes, bananas and yogurt as good before-bedtime foods). Relaxing activities before you turn in also help. (Dr. Joseph Mercola suggests journaling or listening to relaxing CDs.) Moving your alarm clock away from your bedside will help you start your day at the buzzer instead of snoozing away your morning, Mercola adds.

12:28 by Robert dawne · 0

4 Rules of Successful Negotiation

Negotiation is part of our everyday lives. We negotiate with our kids about homework, haggle with the farmers' market seller over prices and work out who will clean the dirty dishes at home. Small-business negotiations happen all the time with vendors, employees and customers.
Despite the media's portrayal of contentious negotiations (think pro sports lockout), it's possible to negotiate calmly and come to an agreement that satisfies both parties. Michael E. Sloopka, the negotiating coach, explains how to do it.
Listen
Just because you know what you want, doesn’t mean you should give it away immediately. Ask for the other side’s position first, Sloopka suggests.
“Then you know what you are dealing with,” he says. “If you are looking to buy a car and the price isn’t in the window, you ask how much the car is, you don’t tell them how much you are willing to pay for it.”
If the other party won’t reveal their position, play hardball. Tell them that you can’t give them what they want without knowing what they require, he says.
Follow the process
A successful negotiation follows a three-step process.

• Step 1: Gather opening positions. Your son wants money to go shopping.
• Step 2: Ask for more information What will he spend the money on?
• Step 3: Reach a compromise.

Yeah, right. No way is it that simple.
“Actually it is,” says Sloopka. “Look for a common ground. For example, if you are buying a house, the seller states his opening position, you state yours, you ask what is included in the house, and then you find out what you and the seller can comprise on.”
But what if it gets heated? When emotions run high, you may find yourself at an impasse or deadlock. An impasse, Sloopka explains, is when more can be done but conversations have stalled. In this scenario, he recommends chatting about what each party is willing to give up in order to move forward.
A deadlock is when you’ve completely failed to reach a compromise. In that situation, it’s best to bring in a professional mediator.
Use the magic phrase
"Under what circumstance…?" This phrase can spell the beginning of the end for any negotiation. Under what circumstance would you finance my business? Under what circumstance would you close on my condo by the end of next month?
“Using this phrase is an effective way of understanding what the other side wants, and until you know that, you won’t be able to reach a compromise,” Sloopka says.
Don’t use round numbers
Imagine you find one website designer who offers to host your site for $38 per month and another that charges $40 per month. Which one are you more likely to negotiate with?
When coming to the table, offer an exact number and don’t use zeros, Sloopka says. Why? It makes you look like you’ve done the math on costs required and that fact alone can intimidate your opposing party.
The same goes with concessions. Instead of negotiating prices in round numbers (i.e. offering a product for $10,000, going down to $9,000, then $8,000, and so on), always lead with odd number amounts.
“Don’t present zeros and don’t accept zeros," Sloopka says. "It’s a dead giveaway that you don’t know what you’re doing."
Photo credit: Courtesy subject

17:19 by iliot Atlas · 0

Decide if Social Media Is Right for Your Business

Social media is often a big help when you're developing your brand. It allows businesses to connect to customers on a more personal level. But that doesn't mean it's right for every small business.
Sheryl Sandberg, the COO of Facebook, believes that 9 million small businesses in the U.S. use Facebook.
Twitter and Facebook are useful in different ways. Twitter is known to be better for customer engagement, while Facebook helps funnel traffic to your site. Both sites help you better your search engine optimization (SEO).
Take three steps before launching Twitter and Facebook campaigns and decide which social media platform is right for your small business.
1. Is social media right for your company?
Remember the old question, “If everyone was jumping off a bridge would you do it too?”
The buzz makes everybody feel that social media helps their business. It's likely that's true, but it’s vital that you decide if social media is necessary for your business to succeed right now.
Though millions of small businesses have jumped on the social media train, your target audience might not be caught up in it. If you feel that's the case, it makes sense to hold off. Or, perhaps you aren’t ready to make the most of social media's benefits, so wait until your company is ready.
2. Timing is everything
Having a strong presence in social media takes a lot of time and a lot of resources. If you can’t dedicate the manpower to keeping up a quality profile, it might hurt your brand in the long run.
Look at your team and decide if your business can handle the workload. If it can, then be fully prepared to implement it. Like any good marketing campaign, your social media portfolio has to have a clear identity, and reach your target audience.
If you forge ahead, prepare the information you want to share each week. Figure out what time of the day your posts and tweets have the most impact by reaching your core customers.
3. Set goals and guidelines
In 2011, companies saw a 63 percent increase in marketing effectiveness. But businesses of all sizes are trying to establish a strong ROI when it comes to social media.
Setting goals for the next few weeks, months and years helps you decide if your valuable time is worth the effort and if you’re using social media successfully. It’s also important to set ground rules of who in your company will handle your social media sites.
Decide on what content is and isn’t appropriate to post. Learn how to handle customer interaction and what steps to take if something goes wrong. Then spend some time educating your staff before the first day of having a visible social media profile.
Once you have created a place for your business in the social media realm, look around your direct and indirect competitors' pages. It helps you understand what the best practices are to engage customers.
Also research the different ways social media platforms are reaching out to help small businesses advertise. See if those steps are right for your brand as well.
In the end, social media is another tool for your company’s toolbox. It will only be effective if you can take the time to learn how to use it properly.

16:43 by iliot Atlas · 0

What Every Successful Small-Business Website Needs

Having a website is a must, if you want to establish and build a successful business—large or small.
Creating the perfect website isn’t an exact science, but a few guiding principles will help you attract and retain an audience of loyal customers and clients.
To find out how to make your website stand out, we spoke with Ron Wright and Tony Escobar. Wright has helped businesses build a solid Web presence since 1998 at Accentix. Escobar is a 25-year-old entrepreneur who helped launch AMTG Solutions to provide web services to small businesses.
Escobar says you need to make your business stand out and get your visitors to act. Refining your website in a few key ways helps you present the best product to your online clientele.
Quality content
Content is the most important foundational element of any small-business website.
If you're selling a product or service, offer enough information about that product or service that prospective customers understand what it is. They should also be enticed to buy it, based on the function you describe or the need your product satisfies.
“The whole point of the website is to get visitors to contact the company, make a purchase or visit your location,” Escobar says, and that hinges on its content. “A good site provides users the exact content the company wants them to act on.”
All the text on your site must be written well. If writing isn't your thing, Wright suggests leaving it to a professional by contracting out the work to a freelance copy writer. It might seem like a big up-front cost, but it's actually an important investment to make.
Clear vision of the audience
Without a keen awareness of who your ideal customers are, it's hard to properly tailor your content and website to appeal to them.
Small-business owners often don't narrow their focus enough.
“I always try to counsel my clients to consider who the visitor is and then give that visitor a clear path on what to do next,” Wright says. That’s hard to do if you’re targeting too broad an audience.
Keywords
It's important to understand what search terms and keywords drive visitors to your site. That way, you know which words to use when you describe your products or services to maximize page traffic.
Google, for example, uses a keyword-based algorithm to rank search results. There are tools to help you understand whether you're taking proper steps to capitalize on that.
You can advertise your business on Google using Google AdWords. It has a feature that helps you find out if your keyword choices are on-point or off the mark. Additionally, analytics software like Google Analytics allows you to see which search terms and other Web pages steer people to your site.
By taking stock of that data and regularly monitoring it, you can build comprehensive strategies that will help search results tip in your favor.
A clean, readable look
Aesthetics are subjective, Wright and Escobar agree, but designing a website according to your own tastes is a big mistake. Instead, keep these few guidelines in mind.
First, be professional and have a look to match. You want people to take your company seriously? Then invest in a site that looks legitimate. Unless you're a savvy site-builder, hire a consultant. Your website is the image you're sharing with a whole world of potential customers. Make it good.
"Any hint of being outdated or having an unpleasant design can be a major turnoff for prospects," Escobar says. "After all, small businesses are not alone, they have to compete with the guy next door. The company that provides the best first impression usually gets the sale."
Second, don't overwhelm. Lots of graphical additions and colorful sections on your site looks messy and confusing. Keep a streamlined approach and focus on simplicity.
Simple navigation
A comprehensive (but to-the-point) sidebar that displays each of your pages' offerings is the easiest way to shepherd visitors to the various parts of your site without frustrating them.
Keep it simple and straightforward, Escobar says. For example, say "About" instead of "About Our Office" to avoid clutter and confusion.
About your company
The autobiographical section of your website, the About tab, is a crucial trust-builder and attention-grabber.
This page should never be generic, Wright says. It's a history of your company that details who you are and what you do, written in a tone that matches your company's culture. Include personal bios of your top management staff. That gives a sense of transparency and openness to what you do and fosters connection with prospective customers.
"People are not as concerned with what you do as who you are," Wright says, noting that the About sections of a website are among the most-read.
Contact us any way you want
Contact information tells your customers you are reachable and at their service, whenever they might need you.
Don't be shy about listing ways to get in touch across platforms and devices, Wright says. It gives the best impression of accessibility and engagement when you offer e-mail, phone, mail and social media options.
Escobar suggests going a step further and including contact information at the footer of each individual page, where visitors are accustomed to finding general information.
Social media integration
Building in social media, like your Twitter and Facebook feeds, to your website helps boost your engagement on those platforms and allows you to more easily keep in touch with your customer base, Escobar says.
He suggests adding social icons in the main navigation bar and in the page footers.

14:04 by Robert dawne · 1

5 Free Ways to Market Your Nonprofit

Just like any for-profit business, nonprofit organizations need to have a marketing strategy to survive and thrive.
Nancy Schwartz, founder and president of the nonprofit marketing firm Getting Attention, emphasizes that marketing for nonprofits is all about building relationships, and those relationships are vital to an organization's success.
“The goal of marketing is to build and strengthen relationships," says Schwartz, who in addition to her consulting work also serves on the board of the Nonprofit Technology Network and on marketing committees for her synagogue, local high school and PTA. "Nonprofits are based on fundraising, but you can’t meet someone the first time and ask for money. You need to build that relationship."
Nonprofits don't have a lot of money to throw around on marketing, however. So it's important for you to make every penny count. Luckily, free marketing opportunities abound. It's just a matter of being innovative, creative and flexible in your marketing approach.
Here are five ideas for affordable nonprofit marketing.
Engage your current supporters
Nurturing and engaging your current supporters, donors and volunteers is, according to Schwartz, one of the most effective free marketing strategies for nonprofits.
“You have to be very appreciative of your supporters," explains Schwartz. "Nurturing your existing supporters is the best low-cost, highly-effective marketing strategy. It’s always easier to retain existing supporters than it is to get new people in the door.”
That means keeping them updated and informed, and it also means getting them to do things with and for your organization. And here is where the second part of this strategy comes in: Ask them to tell their friends, family and colleagues about your organization.
"Not only does that expand your reach and increase the number of folks engaged in your organization, it’s asking people to get involved more than just writing a check," says Schwartz. "It works to get your existing supporters engaged.”
Social media
Social media sites are a gold mine of free marketing opportunities. Set up a business page on Facebook, and use it to communicate with your various constituencies—posting photos, updates, links and information. Create a Twitter account and mingle with others, keeping them up-to-date about your nonprofit's activities. LinkedIn, too, provides plenty of opportunities to market, by creating a business page, promoting your organization and keeping in touch with like-minded people. Look, too, for smaller, lesser-known social media outlets that are specific to the focus of your organization.
It's important to remember, however, that though there's often no upfront cost associated with these sites, it does take time for someone within your organization to keep them updated—and time is money.
"The key to effective use of social media is engagement, and engagement means that somebody from your organization is engaging with people through that conduit," explains Hamilton Wallace, owner of SmallBusinessMarketingConsultant.com. "To have an authentic voice and create engagement, it needs to come from someone inside the firm."
Blogging
Create a blog on your website and update it daily with helpful and useful information that readers be likely to share with others. The more useful the information you give, the more it will help your marketing strategy, increase awareness of your organization and mission and engage your audience. Another upside of blogging is it will draw people to the rest of your site, where they can see what you're doing and learn how they can support your activities.
Videos
Anyone with a smartphone and simple editing software can create professional videos that can be posted on YouTube or directly on your organization's website.
"We're a video-oriented culture, especially with YouTube," says Valerie Moody, owner of Fodeo, which provides photography and video services for individuals and organizations. “Anything we want to do we can go to YouTube and find something that shows us how to do that."
Your nonprofit might post an instructional video, for instance, or a video message from the director, or clips showing community service and involvement. Getting people to watch and share your videos will help spread your message.
Speaking engagements
Line up representatives of your organization to speak at conferences, trade shows and other events related to your field. This is a chance for free publicity and an opportunity to get your message out there. You can put information about possible speakers and topics on your website, so people searching for a speaker will be able to track down your organization, or you can register with a speaker's bureau.
Each of these techniques works in tandem with others. Thus, you can promote your speech-making over social media, or mention it in your blog. An e-mail newsletter can point people to your Facebook page. T-shirts that your employees wear to community events can have your organization's name and website on them.
Great marketing doesn't have to be expensive. In fact, the more creative you are with your marketing, the less you'll have to spend.
Vivian Wagner is a freelance writer in New Concord, Ohio. Vivian blogs via Contently.com.
Photo credit: Thinkstock

 American Express OPEN Forum

11:45 by Robert dawne · 1

Top 4 Mistakes When Franchising Your Business

Michael S. Rosenthal has childhood issues relating to franchising. No, he isn’t damaged by a bad experience; he’s regretful of what could have been. Back in 1957, the same year as his birth, his father Harvey opened a hot dog joint on the north side of Chicago. One day, a man came in and asked Harvey to go into business with him, offering a restaurant concept at $5,000 per store that, the man said, would blanket the nation and make Harvey very rich.
“My Dad told him to get the hell out of his store, that there was no way he would pony up $5,000—that was a lot of money back then,” says Rosenthal. “That man was Ray Kroc, the founder of McDonalds. If only he had said yes, I wouldn’t be working right now.”
Perhaps due to this story, Rosenthal has made it his life’s work to save wannabe franchisors from bad decisions. Today he heads the franchise law practice at Wagner, Johnston & Rosenthal in Atlanta, Georgia, and shares the top four biggest mistakes he sees every day.
Mistake No. 1: Underestimating costs
While franchising can make your company (and you) wildly successful, it can also sink you in a massive hole if you don’t have enough money on the outset. Most startup costs go to legal representation and the drafting of regulatory documents, says Rosenthal. And regardless if your franchise is doing well or not, the Federal Trade Commission mandates you update them once per year.
On the legal side, Rosenthal says costs can range from the “low teens to the mid-20s.” From there, you must file with your state’s attorney general, which could cost you another $1,000 to $2,000. Then there are the accountant fees (franchised businesses must be audited once per year, even if you don’t sell any units), which could ring you anywhere from $7,500 to $15,000. Gulp.
How much are we talking here?
“I’d say you should have somewhere in the high five figures,” says Rosenthal. “I’ve had clients start with less, but it is rare. You really need to set aside legal and marketing money because things add up quicker than you think.”
Greg Archer learned this the hard way. As co-founder of Age Advantage, a San Diego, California-based company that provides in-home care to senior citizens, he and his wife began offering franchises in 2006, but stopped about 18 months later largely because of under capitalization. He says you need even more than five figures starting out.
“Being undercapitalized really inhibits growth; I recommend starting with a minimum of $300,000 to $500,000,” he says. “As a new franchisor, there is no cash flow. You really don’t make money on the sale of a franchise, you make your money on ongoing royalties.”
In addition to legal and regulatory fees, the Archers were strapped with sales and marketing costs, all which proved to be too much. In 2008, they reevaluated their business. Two years later another company bought out their original location, which freed them up to focus on franchising alone.
Today, they are going to tradeshows and actively advertising. According to Archer, the company is on par to close about 15 more locations (they already have six) this year.
Mistake No. 2: Confusing the roles of franchisor and business owner
Rosenthal uses a barbecue restaurant as an example. As the business owner, it is your job to deliver mouth watering pulled pork; you do a great job and have legions of loyal customers. Pretty soon a potential business partner offers to open a franchise and you jump at the opportunity. It’s an ace in the hole, right? Not exactly.
“You need to recognize that being a franchisor and a business owner are two different skill sets,” says Rosenthal. “You may be a great chef, but that doesn’t mean you will be a great franchisor.”
Franchisors must be focused on finding and recruiting franchisees, says Rosenthal. Processes need to be put into place, manuals need to be written and franchisors need to invest time into training franchisees and lower level employees. These duties can take away from those related to owning your primary business.
Also consider bringing in a franchise consultant to help you with the process. (Note: to find a consultant, check out the International Franchise Association.)
Mistake No. 3: Lack of planning
Planning is key to a successful franchised business. Before even considering the business model, make sure you have a detailed operations manual for your business that goes step by step through every process in your company and you’ve talked to an attorney or franchise consultant, recommends Rosenthal.
“Don’t just think that you can do it on the cheap and see how it goes,” he says. “Franchises take a lot of pre-planning.”
Mistake No. 4: Franchising too soon
Just because your five-month-old Mexican restaurant is selling out every night doesn’t mean it’s time to think about franchising. Rosenthal suggests waiting three years before considering the business model.
“You need to have everything figured out,” he says. “No one is going to want to buy your franchise if you haven’t worked the kinks out yet.”

08:14 by Robert dawne · 0

The 7 Fundamentals of Building a Successful Business

First comes the idea, then a bit of follow-through and, ideally, in the end you have a business.
But if a company thrives, it's not because its founder filed all the right paperwork, got a P.O. box and had business cards made up. There's much more to building a successful business than those initial basics.
In fact, to make sustained growth more likely, small businesses need a smart, strategic plan. Whether a company is in its infancy or has been around for years, there are a few things every savvy small-business owner needs to keep in mind.

Identify your customers
It's important to share word of your business when you start out and as you grow in order to maintain a customer base. But instead of the cast-a-wide-net approach, try something a little more focused, strategic and rooted in research. Invest in market research—which you can either hire consultants to do or informally conduct yourself—to best identify who your customers are, then compare that data with who you would like your customers to be. From there, you can make an informed decision about where and how to reach them and launch a marketing initiative with a better chance of yielding a return on your investment.
Make sure you've got a professional keeping the books
If you don't think you're a numbers person, it'll be difficult for you to be a truly successful entrepreneur. If you're not qualified to keep your company's books yourself (and you should have an accounting background to do so if you expect any significant growth), you need to understand at least the very basics of accounting so that you can make a good hire of someone more adept to take on that work.
Foster good office culture
Retaining your talent is important for a number of reasons. It's costly (in terms of time and money) to train new employees, and it's be a huge burden to lose a staffer who's led projects for your company. One of the best ways to keep your people on board, and attract new hires, is to cultivate a solid office culture. You know, the kind of place people want to come to. As a small business owner, it's up to you to champion that welcoming, friendly, fun, productive environment. (Read more on creating a great office culture.)
Invest in the basics
Experts have said time and again that a business's success ultimately comes down to its people. Be prepared to pony up the time and energy it takes to vet, recruit, hire and train employees that not only are qualified but also fit within your organization. That means looking ahead to figure out which positions you'll need to hire for, and networking to find the best candidates. Another fundamental element of a successful company in 2012 is its website. Having an amateurish online presence will hurt your credibility and steer people to your competitors with more refined web content. There's a price tag on a good website, but its payback makes it worthwhile.
Listen, especially when you disagree
You started a business because you had an idea and a vision. But your business will only grow if you pay careful attention to your stakeholders and customers. Your board, investors, colleagues and customers can each offer you valuable insight, whether it's about the inner workings of your company or an outside perspective on its functionality and service. It's particularly important to listen when you disagree, like if a board member critiques your methods or a customer isn't happy. That's where you can best learn about your deficiencies and how to improve (translation: It's where you learn how to stay successful).
Plan conservatively
Do everything you can to avoid being surprised when you don't reach financial goals. Set realistic expectations, and have a clear plan on how to get there. Undershooting your revenue estimates will help ensure that your plans, which are based on how much money your business makes, won't derail the company. If you aim high and fall short of reaching your expected margins, it can be disastrous to your firm. (Get more tips on forecasting.)
Find a mentor
There are professionals, entrepreneurs and industry experts in your community who have already gone through the business-building process. Learn from them. They have suggestions to share and failures they've learned from that can spare you the pain and cost of making those same mistakes yourself. It's valuable to have an experienced, trustworthy advisor to review your ideas and help position you to improve and succeed.

13:09 by Robert dawne · 0

5 Ways to Retain Your Top Performers

Your best employee comes into your office Monday morning and gives their two weeks notice. Your heart drops and you start to panic. How will you replace such a stellar performer?
Hopefully you haven’t been faced with this scenario. And if you keep reading, you may never find yourself on the receiving end of such bad news. That’s because the following is some of the best advice on how to retain your rock stars. Take this list to heart and you may land a top dog for life.
Learn their language
You may think you know what motivates your top employees, but have you sat down and asked them? Tom Gimbel, founder and CEO of LaSalle Network, a staffing and recruiting firm in Chicago, sets aside time on a regular basis to learn what motivates his best employees. Then, when they do a good job, he rewards them accordingly.
“I have one guy who loves sporting events; I can’t give him enough tickets,” he says. “I have another sales person who loves to share her stories with me. She wants time with the CEO, to get my insights, so I schedule about 30 minutes every few weeks and that time keeps her happy and motivated.”
Involve them in company decisions
The more invested an employee, the more likely they will stay, so “bring them into the inner circle,” suggests Ralph Neal, vice president, educational services at Employers Resource Association in Cincinnati.
Consider bringing your top dogs into strategic planning meetings. Let them offer suggestions and seek their opinion about issues that will affect the organization as a whole, he adds.
“They will appreciate being part of the business planning process; it can be a big motivator,” says Neal.
While Gimbel agrees with this suggestion, he also offers a warning: some top performers don’t want to be involved.
“It all comes back to spending time with them and getting to know what they are thinking,” he says.
Give them ownership of their work
A micromanaging boss will only drive away a high achiever. Lori Dernavich, an employee performance advisor based in New York City, suggests letting them complete tasks on their own.
“Allow them to have a say on how to solve a problem; managers shouldn’t have all the answers, so give them a chance to own it,” she says.
Get rid of low performers
Top staff members don’t want to hang out with unmotivated, low performing employees, says Gimbel. Consider showing your bottom feeders the door.
“The majority of really good producers would rather work more than clean up the mess of an underperforming employee,” he adds.
Help design their career path
Don’t assume you know the desired career trajectory of a top performer, says Dernavich. Work with them on a personal development plan. Even if you can’t give them everything they want, your eagerness will land you a few brownie points.

13:06 by Robert dawne · 0