The goWholesale Blog

Using the Web to Draw in Customers

June 2nd, 2008

Many brick and mortar stores have learned by now that they need to have a website in order to compete in today’s internet driven consumer marketplace. What many of them haven’t figured out yet is that there is much more to using the internet to draw in customers than simply having a website with store hours and information on it.

It is becoming increasingly important for businesses to make themselves available for customer reviews. Sites such as Amazon.com use the customer review system to sell products. Yelp.com uses the same concept but allows consumers to review actual businesses. This type of instant feedback is valuable to the business as well as potential customers. Studies show that consumers trust peer reviews 83% of the time while experts are trusted only 63% of the time.

If you put your business out there for customer reviews expect both good and bad. Take the time to contact all reviewers if you can. This will likely improve your overall rating and bring in a considerable amount of extra business from people who check these sites frequently and write reviews themselves.

Posted in Generating More Sales, Marketing Your Business | No Comments »

Top 5 Startup Myths

May 29th, 2008

You may think you know what you’re getting into…but you have no idea. There are probably a few preconcieved notions you have about starting a business whether you think you’ve done your homework or not. So without further adieu here are the top 5 startup myths you should be aware of:

5. The government gives grants to small business startups - While some states may have special funding programs in place for people with disabilities, minorities or veterans, the federal government does not have any programs that give money directly to any business. Your best bet is to get involved with the Small Business Association (SBA) and see if you can work with them to have them back a bank loan. You can also contact your local Economic Development Corporation to get help regarding information and resources that will help small businesses.

4. The only reason you need a business plan is to obtain financing - Forget about the financing, a business plan should be made to give you a realistic perspective of the market and the competition. Preparing a business plan keeps you from discovering the hidden pitfalls that can lead to an early closing. Yes, a business plan is the best tool to use to figure out the startup and monthly cash needed to fund a business, but that is only a portion of why a business plan is so useful.

3. A unique product/service sells itself and doesn’t need marketing or advertising - Every new business owner believes their product or service is compelling, otherwise why would they invest their time and money in the business? In a marketplace filled with billions of product offerings, it’s the ones that use the power of marketing to their advantage who get the most customers. The worst thing a business owner can do is sit back and wait for customers. You need to work to grab the attention of your target market, because you can bet that if you don’t another business will. And, inferior products or not, they’ll get the business because they put their offerings in front of more people. It’s as simple as that.

2. Small business owners have more free time - Ah, the life of an entrepreneur: Lying around in pajamas, eating bon bons on the couch and leisurely typing away on the laptop - Ha! Try the complete opposite: Early mornings, late evenings, long workweeks and working on the weekends. Sure you’ll be able to see the kids off to school and take them to the dentist, but in order to grow your business, you’ll need to put in the extra time - and that’s especially important in the first three years.

1. Business owners can write off practically everything - Not unless you enjoy being audited by the IRS! Sure there are perks to being a business owner; you can write off business lunches, computers, office rent and utilities, but that doesn’t mean groceries, clothes, haircuts, etc. Some people think that just because they’re a business owner, they can magically deduct every purchase if they can somehow link it to their business ("I need a $5000 ‘power suit’ for the meeting"). The reality is, it just isn’t so, and that kind of thinking is likely to get you into serious trouble with the IRS.

Bottom line: There’s no easy way to the top. Good old fashioned knowledge and hard work is the key!

Posted in Starting a Business | No Comments »

Cash Flow Crisis? Give Bartering A Try

May 27th, 2008

Bartering is a tried and true (and ancient) business practice. It is still commonly used in many countries in every day business interactions. For whatever reason, it is not as common in the U.S. but this doesn’t mean it should be forgotten altogether!

If your small business is still afloat but you find yourself short on cash, give bartering and honest look. There are many barter exchanges which you can join and here’s how it works:

Step 1: Research the barter exchanges. Like I said there are a lot out there so do some research and pick the one you think will best suit you based on other members and how much you want to pay to join. You can find lists of these exchanges at nate.org , irta.com or itex.com .

Step 2: Join your chosen exchange. There are a wide variety of membership fees out there. Some have a one time fee of $800 for new members while others charge a much lower monthly fee in the $10 to $30 range. In addition to the fees, there can also commissions involved which, if you are a low-margin business, would make bartering a money losing venture. Run the numbers and find out.

Step 3: Barter away! You will receive "barter cash" for your and work you do/goods you offer which will be good only within the exchange you join.

Keep in mind these important factors (compiled by BusinessWeek.com ) when getting involved in a barter exchange:

Joining an exchange does entail costs, including fees and commissions. If you run a very low-margin business, those commissions may make bartering a money-losing proposition. Every business will want to limit its barter business to 5% to 15% of total revenue so that cash flow remains at healthy levels, says Ron Whitney, executive director of the International Reciprocal Trade Assn. (IRTA), a Rochester (N.Y.) nonprofit that promotes barter. And if you are bartering one-on-one, be careful. Misunderstandings can arise if you don’t have a formal contract. Then there is the IRS: Barter deals have to be treated like regular cash sales in federal and state filings. If a business owner uses barter services for personal reasons, the cost of the item is considered compensation on your income.

If anyone has tried this, I’d love to hear how well you think it works?

Posted in Finance and Accounting | No Comments »

Helping Customers Weather Recession

May 23rd, 2008

The following is a great excerpt from an article on Forbes.com . It highlights some strategies retailers can use to help get themselves and their customers through the economic storm:

"In the short-term, retailers need to continue providing sales incentives, discounts and promotions that demonstrate value to the consumer. Incentive packages can be offered for cost-saving items such as fuel-efficient cars or energy-saving light bulbs. Innovative ideas to help consumers spend "extra" money will be critical. We have seen this happen already in the travel industry where some resorts are providing gas cards for guests driving to the destination.

Retailers with a strong, customer-oriented Internet presence are well positioned to take advantage of the momentum in Internet sales carried over from the 2007 holiday season. Retailers should explore new payment options for customers for online sales, including prepaid gift cards, which would have the added benefit of capitalizing on the increase of customers buying gift cards. Ultimately, e-commerce will help consumers save gas money while having the associated benefit of lower operating costs for the retailer.

Looking ahead to long-term positioning, retailers can improve return on investment for their stores by taking advantage of lower retail space costs for new store openings. With companies halting store expansion and announcing store closings, certain regions have experienced an excess of retail space. The industry should capitalize on better lease terms than we have seen in recent periods.

As mid-range and long-term strategies, retailers will need to focus on properly managing the mix and quantity of inventory held in their stores and distribution centers. In conjunction with maintaining inventory, retailers should seek alternative channels, such as the use of distributors or value-added resellers in lieu of a retailers’ clearance center approach.

Retailers will also be forced to reassess their suppliers and transportation, as well as storage and handling costs, as product costs from overseas, particularly China, continue to increase.

In the end, the U.S. economy is built on both consumer spending power and retail success. If retailers remain determined to help consumers weather this difficult time while bracing themselves accordingly, we can all hope to emerge strong in 2009."

Happy Memorial Day Weekend!

Posted in Generating More Sales | 1 Comment »

Breaking E-Mail Marketing News: CAN-SPAM Act Update

May 20th, 2008

The Federal Trade Commission announced in a press release today that it will soon be publishing clarifications to the CAN-SPAM Act of 2003. The following topics are to be addressed:

(1) an e-mail recipient cannot be required to pay a fee, provide information other than his or her e-mail address and opt-out preferences, or take any steps other than sending a reply e-mail message or visiting a single Internet Web page to opt out of receiving future e-mail from a sender.

(2) the definition of “sender” was modified to make it easier to determine which of multiple parties advertising in a single e-mail message is responsible for complying with the Act’s opt-out requirements.

(3) a “sender” of commercial e-mail can include an accurately-registered post office box or private mailbox established under United States Postal Service regulations to satisfy the Act’s requirement that a commercial e-mail display a “valid physical postal address.”

(4) a definition of the term “person” was added to clarify that CAN-SPAM’s obligations are not limited to natural persons.

Keep your eyes peeled for it. The good news is that if you are already conducting an ethical email marketing campaign, these specifications should not affect you one way or another. If not, you may want to revise your strategy. For some guidance, check out Keeping Your E-Mail Campaigns Legal .

Posted in In the News, Marketing Your Business | No Comments »

Twitter Schmitter

May 19th, 2008

I have beef with Twitter. To me, it’s an oddly socially accepted and encouraged form of stalking where the "victims" volunteer themselves.

Aside from the creepy factor, from its inception I have never really understood how thousands of people #1 care so much about what other people are doing that they would subscribe to and check instant updates via a personal feed, and #2 that said number of people actually believe that that many OTHER people care enough about their minute happenings so much that they’d consistently update these feeds.

Twitter’s usefulness has long been debated and I have clearly chosen sides. But I can’t argue with the fact that Twitter’s traffic numbers have nearly doubled in recent months . Looks like more and more people from my side are hopping the fence to join the other "volunteer victims" and "stalkers"…traitors…

Okay, perhaps I’m being a bit harsh on Twitter. But I really don’t see how it can keep up it’s stamina? Sooner or later, it’s going to loose steam right? After all, not everyone can keep up with everyone to that degree all the time and still make actual useful contributions to mankind…can they? Heck, I have enough trouble keeping up with my MySpace, Facebook and LinkedIn accounts!

Here’s how I see Twitter succeeding: in the business world. While people can really care less what their best friend ate for lunch today, they might really care what lunch specials their favorite restaurant is having. And while they might ignore that their little brother just beat Grand Theft Auto 4, they might really want to know that Best Buy is putting the game on sale for the next 12 hours for 50% off (that would REALLY be worth "tweeting" about don’t you think?).

If that’s the future of Twitter, sign me up. Otherwise, count me out.

Do you think businesses will be Twitter’s savior or am I completely off my rocker?

Posted in E-Commerce and E-Business, In the News | No Comments »

Expanding Globally? Here’s Some Food For Thought…

May 16th, 2008

Going global is a huge step. It’s an important one in every business’s growth. Considering the fact that times are what they are, it could mean the survival of your business. So before you step off into the global market, consider the following factors Entrepreneur.com has put together as a sort of "Pre-Going-Global-Checklist":

Get company-wide commitment.
Define your business plan for accessing global markets.
Determine how much you can afford to invest in your international expansion efforts.
Plan at least a two-year lead-time for world market penetration.
Build a website and implement your international plan sensibly.
Pick a product or service to take overseas.
Conduct market research to identify your prime target markets.
Search out the data you need to predict how your product will sell in a specific geographic location.
Prepare your product for export.
Find cross-border customers.
Establish a direct or indirect method of export.
Hire a good lawyer, a savvy banker, a knowledgeable accountant and a seasoned transport specialist,
Prepare pricing and determine your landed costs.
Set up terms, conditions and other financing options.
Brush up on your documentation and export licensing procedures.
Implement an extraordinary after-sales service plan.
Make personal contact with your new targets, armed with culture-specific information and courtesies, professionalism and consistency.
Investigate international business travel tips.
Explore cross-border alliances and partnerships.
Enjoy the journey.

For explanations of these factors click here .

Posted in Doing Business Internationally | No Comments »

Good News For Organic Product Marketers

May 13th, 2008

A recent study conducted by Mindset Media and Nielson Online reports that consumers that regularly purchase organic products are 153% more open to new experiences. This information is useful because it means that marketers no longer need to be as concerned with marketing their products strictly through niche channels (yoga or green magazines for example) and can now look to expand their efforts across multiple networks. The key being to appeal to these consumers’ mentality. These marketing efforts will reach a much wider audience that are perhaps not "classic" organic consumers (based on participation in yoga or other traditional wellness activities marketers use to target their products through) but rather a new brand of organic consumers-ones you can appeal to through a specific way of thinking.

The study also revealed that organic buyers come from all different levels of income. This is because buying organic is a mindset. People who are organic consumers believe that no matter what the expense, they are going to reap the benefits of their purchase and in some cases, might be getting more (healthier, more durable, better for the environment, etc.) for their money. So catering a marketing strategy to this attitude should be relatively straightforward.

Posted in Marketing Your Business | No Comments »

How Home Office Design Affects Productivity

May 9th, 2008

Having an office at home is wonderful. You can be around your family more and you won’t have to travel back and forth, to and from work, especially with gas prices being so high these days.

If you have an extra room that you can make your office, that’s great. If you don’t, you will have to find a space in your home where you can create a home office. This can be any room - even a large closet.

Liven Up Your Space

It is a proven fact that your office affects your productivity. So yours should be lively, not dull. The walls should be colors that inspire you, not simply grey or white.

You should have colorful artwork on the walls and area rugs on the floors. Have a sofa or chair in your office with throw pillows on it. If your office is white or beige and has no life, you will want to spend less time there - and therefore you won’t be very productive.

Save Space

If you are forced to make your closet your office, you need to save space in every way possible. Leave the legs off of your desk and mount the desk top to the wall.

You can use the area underneath the desk as a place for your computer tower, a trashcan, or even a few storage boxes. You can also have a closet system installed with several different shelves so you can stack files, or even stack plastic boxes.

If you are working in a small space, you want to keep the things you use everyday close to your fingertips. You want to make sure it is organized. If you have to waste time looking for something that you can’t find because your office is cluttered, you are not being very productive.

If you have everything organized and you are looking for a certain file, you know exactly where it is - and you can spend the time you would have spent searching for the file working. This will make you more productive and more successful.

Keep Only What You Need

Keeping only the things you need is very important. If you keep all of your files, even after you have finished using them, you may want to consider moving them to a storage shed or attic.

When you are in a small office, you want to maximize as much room as possible. If you are not using something, find another place to put it.

Having a small space takes a bit of creativity but in the end, you will have a functional office that you can be productive in. Begin by learning how to determine what is really needed and what is not.

That will carry throughout the rest of the house - and you can get rid of things that you may have been hanging onto for years but are not using.

Posted in Starting a Business, Uncategorized | No Comments »

The Best Consultants Money Can’t Buy

May 9th, 2008

No no…I’m not referring to Paris and Nicole. Sorry for the bait and switch.

As savvy as those two are at marketing (themselves) I’m referring instead to good old fashioned business students.

We all know how the internship program works. Companies offer students an opportunity to gain "valuable experience" and some times even compensation in exchange for a semester of what can be boiled down to as free labor. The students will file, fax, answer phones and fetch coffee in the hopes that their time has been spent earning them a good recommendation and bonus points on their resume.

But now entrepreneurs are looking for a more mutually beneficial relationship between their businesses and students. And this simple twist on the old standard seems to really be taking off.

A recent New York Times article highlights a few of these examples including a parachute company that requested students compile a semesters worth of recommendations for updating their website and a gourmet foods start up that had the students compose their business plan. The students garnered real life experience as well as some other perks (the parachute company offered the students a free sky diving trip!).

Business students as contractors can offer a world of insight in the form of consultations and for the low low price of real world business experience, many jump at the chance to participate.

It’s certainly something to think about. For more information about the benefits of student contractors check out Hiring Cheap Help - How Student Contractors Can Benefit Your Business

Posted in Hiring and Human Resources | No Comments »

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