News and Articles
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
Tags: contractors, cost cutting, hiring, HR, internships, small business, start up, students
Posted on May 9th, 2008 in Hiring and Human Resources | No Comments »
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.
Tags: home based business, home office, home office design, productivity, Starting a Business, working from home
Posted on May 9th, 2008 in Starting a Business | No Comments »
Q: Steve - We all think that "it couldn’t happen to me" but I am here to tell you that it can. We lost our business in Hurricane Katrina and I would just like everyone to know that it’s smart business to hope for the best but be prepared for the worst. Thanks for the platform.
Stan
A: Stan and I met earlier this year when I was giving a speech. When he learned that I write for USA TODAY, he really wanted to share his story and in the process help other small business owners avoid his unenviable fate.
Stan is an accountant who kept all of his records on the computer at his office. That included client tax returns, client lists, his own business records - the whole shebang. Unable to get to his office once the hurricane hit, Stan not only lost his data and computer in the disaster, but all physical files and other records too. He lost his entire business.
"Please, tell your readers to just take some basic steps that can ensure that their businesses can survive a disaster," Stan insisted.
With the official start of hurricane season about a month away, it seems to be a good time to spread the message that, while no one likes to think about what can go wrong, it behooves us all to take some basic steps to avoid the avoidable.
Of course, it is not just hurricanes that are a threat to a business - it could be any number of other natural disasters - earthquakes, tornadoes, floods, fire - as well as personal disasters - a stolen computer, a hard drive that crashes (try losing three chapters of a book you are writing!), a power outage . . . .
Luckily, I was recently offered the chance to read a White Paper produced by HP and SCORE that sheds some light on not only what a significant problem this is, but what you can do about it. This White Paper was incredibly useful and has been shared with government officials and business leaders.
Consider these sobering facts:
* About one-third of all respondents to a survey in the paper said they backup their data rarely, if at all. Most of the rest did it less than monthly, and yet
* 70% of small businesses that suffer a major data loss will go out of business within a year.
But, as pointed out in the paper, "disasters can be averted with some foresight and planning." Here is what you can do:
* Of course, the easiest and most obvious preventative measure you can take is simply to backup your data, and not just in the same location, but remotely.
* Important documents should be kept in a fireproof safe.
* Software should be utilized to prevent computer worms and viruses from destroying your hard drives.
* Create a plan to keep things running if something should happen. Assign roles and responsibilities as a part of that plan and walk through them with employees. Then keep the plan updated.
To underscore their commitment to helping small business in this regard, HP and SCORE have even taken things one step further and are now offering free "Wellness Workshops" around the country so as to better help small businesses prepare for unanticipated disasters and shutdowns.
According to Lisa Baker, Director of Business Marketing, Americas, Personal Systems Group, HP, "many small businesses are not prepared for disasters large and small. As such, through the Wellness Workshops, HP and SCORE are working together to ensure that small businesses understand the simple steps needed to safeguard a business’ survival."
During the workshops, attendees will learn how to protect their core business assets such as employee records and customer databases. There will also be a special session on providing small businesses with guidance on how to green their business.
Hurricane Katrina was a tough lesson for too many small businesses. Let Stan, HP and SCORE help you help yourself. Create that disaster preparedness plan today.
Today’s Tip: The HP/SCORE Wellness Workshops are coming to a location near you. You can find out where and when here .
Need a speaker for your next event? Contact Steve ! He is one of the world’s leading business experts, a popular speaker on the business lecture circuit, and is sure to leave any audience thrilled. A columnist for USA TODAY, lawyer and author, his latest book is the best-selling Small Business Bible: Everything You Need to Know to Succeed in Your Small Business .
Tags: advice, disasters, expert advice, MrAllBiz.com, small business expert, Starting a Business, steve strauss
Posted on May 9th, 2008 in Starting a Business | No Comments »
When you see how effective word of mouth advertising can be, you should begin to look for more people to tell about your business.
The more people you tell, the better your chance of having a successful business. But there are things to do, and there are things not to do.
Don’t Plug Where You Aren’t Supposed to
When you’re online in a chat room, notice that no one is saying anything about their business. You may think, "what can a small plug here hurt?", so you say something about your company.
This can be harmful because it is called spam - and on most sites, spam is illegal. It is important to note that if you even put a small plug in about your business on an unauthorized site, you are spamming and can be kicked off the website.
Do not do what some do and be tempted to have others posting for you. Getting your staff or hiring an outside source to present your business on sites that do not want it is also spamming.
Don’t Be Dishonest
If you get people to talk about your products that don’t really use them, that is being dishonest. You are lying to the people. When you see an advertisement for a certain product, you want to know the person really uses the product they are advertising. If it works for them, other people will try it.
Getting people - especially celebrities - to lie about a product they don’t use is wrong an unethical.
The best way to run a business is to be honest. Be honest about where you advertise. Before you place an ad or chat about your business in a chat room, be sure that it is welcome on that site, or don’t do it.
Be honest about who you have advertising for you. Make sure they are doing everything legal. In addition, be honest about who you get to say testimonials from. Make sure they really do use the products - or don’t use them in your advertising.
Do Tell the Truth
Honesty is always the best policy. If you lie, you will eventually be exposed.
Eventually, when everyone finds out that you have been lying, you will lose customers and most likely your business. By being honest, you will gain customers and you will be successful in your business adventures in the long run.
Do Put Yourself in Your Customer’s Shoes
Think about how you would like to be treated if you were a customer. Now let’s say you found out that the owner of a business you were dealing with was lying and wasn’t really doing what they said they were doing.
Let’s go further and say that the celebrity that is doing commercials for the company never used the company’s products. How would that make you feel?
The bottom line is that honesty is the best policy, as well as only offering information about your business where that information is welcome.
Tags: advice, Marketing, strategy, Tips, womm, word of mouth marketing
Posted on May 9th, 2008 in Marketing Your Business | No Comments »
If you’ve been reading the financial news magazines and newspapers in recent weeks, you may be a little worried about where things are heading. With financial giants toppling, and the word recession becoming more prominent, what does that mean for your small business?
If you are like many companies, you’re already looking for ways to trim off a little fat. That could come in the form of not ordering as much inventory, looking for employees to lay off or any other cost-cutting measures.
As a matter of fact, many small business owners are already in a panic, with doomsday visions in their heads.
It’s time to stop and take a deep breath.
Fact Check
Look at the facts. Yes, we are in an economic downturn. Because of this, sales are down across most industries as people prepare for a recession.
In many respects, this could be making matters worse. By hoarding finances out of fear of a depression, we may well be speeding up its arrival. An economic downturn, whether or not it turns into a recession, can’t be predicted.
There is no way to know when it will end and everything will bounce back to normal. However, the one thing history does tell us is that it WILL bounce back. That means you can put those doomsday visions out of your head. The end has not come - rather, this is just a bump in the road.
An intelligent businessperson will prepare for the economic downturn and possible recession - but won’t panic.
Manage Debt
Part one of making it through an economic downturn is to manage your debt. Many companies live off a plan of leveraging their debt, counting on being able to roll current loans into new ones when they come to term.
This may not be an option the next time around. Instead, you need to build up your cash reserves so you have a comfortable nest egg in place the sit on during the economic ride.
Broaden Your Customer Base
While the U.S. Dollar may be having a tough time and the U.S. economy may be reeling, that does not mean the rest of the world is having the same problems. While U.S. buyers may be a little more reluctant right now, there are plenty of other countries around the globe ready and willing to find new suppliers.
Try to broaden your base of customers, and add new international clients into the mix.
Investing
If you have managed your debt well and built up a cash fund for your company, this may be a great time to invest in new items for your business. While everyone else is clamming up and afraid to buy, you can use this time (and your extra cash!) to expand your offerings, pick up new customers who want those items - and possibly take the lead in the race against your competition.
Changes in the economic tide are nothing new. Financial markets go up and down as they have for generations. The key to weathering the down times is to keep your wits about you and plan well while taking advantage of any new opportunities.
Tags: Accounting, economic downturn, Finance, money, money management, recession
Posted on May 7th, 2008 in Uncategorized | No Comments »
Q: I am starting a green business but lack sufficient startup capital. Are there federal grants for such a business, and if so are they realistic or even plausible?
Rachael
A: I would have to say, I get more variations on this question than any other: "Where the heck can I get some of this free government startup money?"
I’m not exactly sure where this urban myth comes from, this idea that there are government agencies out there just waiting to give out free money to start a business.
I suspect that the main culprit is Matthew Lesko. You know, the wacky guy on those infomercials with the question mark suit who is always talking about free government grants and programs.
Do they really exist? Are there free federal grant dollars available to fund a business startup? Let’s find out.
Lesko received his MBA from American University and his company, Information USA, has published many books on the subject of "free" government programs over the past few decades. His books generally point out programs that people may or may not know about which offer some sort of assistance - everything from Medicare and Medicaid to SBA loans, energy assistance, and farm subsidies.
But actual free money turns out to be a pretty rare thing.
Indeed, the York State Consumer Protection Board issued a report in 2004 stating that some of Lesko’s claims of free money are exaggerated (in relation to his book, Free Money to Pay Your Bills.)
This is not to say that grants are not available on the federal level. They are. Indeed, the federal budget is chock-full of programs that grant funds for such things as:
* Scientific research
* Educational endeavors
* Defense services and products, etc.
Moreover, there are plenty of programs that help minority, veteran, women, and disabled business owners, but again, none that I could find offer actual free start-up capital for individuals. Most of this assistance is technical and advisory in nature.
When the federal government does offer grant money to promote small business, it almost exclusively goes to state and local governments. According to the smart folks over at About.com, "By far, most government grants are applied for and awarded to other federal agencies, states, cities, colleges and universities, and research organizations."
So it seems that free federal money to start a business is more myth than fact.
Next then, let’s consider programs on the state and local level. Here we find a bit more help. For instance, many communities offer incentives for small businesses to set up shop in economically distressed areas, although these incentives often take the forms of tax breaks or rent subsidies rather than grants per se. There are also plenty of incentives today to make your business greener, but again no, no free money.
What about private, non-profit grant makers? These are organizations with very specific goals in mind, who work hard at fund-raising, and who fund only the most worthy, cost-effective programs. Some may help with business capital if that is the business they are in and you meet their very specific criteria and stringent prerequisites. No one gives money away willy-nilly. Expect to be thoroughly vetted to make sure that what you are proposing is what they want you to be doing.
Expect to also spend a lot of time and effort in the process. Applying for and getting grants is a difficult, rigorous process, often requiring expert assistance. "Grant writer" is a job for a reason.
And understand this too: Grants come with strings. In the remote chance that you do find and get a business grant, you will also be expected to thoroughly account for whatever money you get and spend it exactly in accordance with the strict guidelines of the grant maker. Failure to do so will land you in plenty of legal hot water.
At a time of huge federal government deficits, an incredibly expensive war with no end in sight, and recession, you are looking for free government money? Think again.
If it sounds too good to be true, it probably is.
Today’s Tip: One place to find out what state and local assistance is available to your business is the online Catalog of Federal Domestic Assistance; a database of all federal programs available to state and local governments, organizations, various groups, and individuals. Once you locate a program that may be a fit, contact the office that administers the program and learn about the application process.
Need a speaker for your next event? Contact Steve ! He is one of the world’s leading business experts, a popular speaker on the business lecture circuit, and is sure to leave any audience thrilled. A columnist for USA TODAY, lawyer and author, his latest book is the best-selling Small Business Bible: Everything You Need to Know to Succeed in Your Small Business .
You can sign up today for his free newsletter , "Small Business Success Secrets!" at his web site - www.MrAllBiz.com
Tags: Accounting, capital, expert advice, Finance, going green, green business, MrAllBiz.com, small business expert, start up, steve strauss
Posted on May 7th, 2008 in Uncategorized | No Comments »
If you are in any way involved in a blog you know that positive comments are awesome, negative comments are…well, good for balanced feedback and spam comments are downright infuriating. Its the latter variety that this post is about.
You know them when you see them. Sometimes they are blatant, "Great blog! Visit my site www.bestsiteintheworld.com!"
Sometimes they are incoherent, "Greek should thy savage health insurance agents make light business contact manager windows mobile wheat." (Whaaa?)
But most of the time, they are a little sneakier than that (in response to one of my Valentine’s Day Trend Alert posts), "Its true! We sell more Heart Valentines Day Votive candles on blacktaisaltco.com months after V Day. The Pure Himalayan Salt Lamps and regular Crystal Salt Votive candle holders sell during valentines day… most people send them to themselves as presents and not to anyone else… we had a questionnaire…proves our point."
Yeah…so clearly, that’s marketing at work but because it was relevant to the blog post I felt inclined to allow it. And it didn’t make me feel very good either. It got me wondering if there is any sort of formal comment etiquette out there that would help marketers who are posting these comments to get what they want and not tick off bloggers?
My research led me to a SmallBusinessNewz.com article on the subject. The article’s author Chris Crum writes about how each blogger generally makes up their own policy regarding comments. There is quite a range from very lenient to very strict and not all of them are made known to commenters/readers. He links to Daria Black’s The Blogger’s Guide to Comment Etiquette which outlines guidelines the average blogger uses. Be sure to pay heed to number 1 on the list (it IS number 1 for a reason ya know…).
Tags: blog, bloggers, blogging, comment etiquette, comments, Marketing, spam
Posted on May 7th, 2008 in E-Commerce and E-Business, Marketing Your Business | No Comments »
Although being self-employed offers many advantages - being your own boss, enjoying all the profits, etc - there are also some downsides. For example, you no longer receive sick pay from your employers should you fall ill. Obviously this can pose problems, especially if you have mortgage payments to meet and other monthly outgoings, since without any sick pay, you don’t have any income when not working. Thankfully, there are options to take out health insurance if you’re self-employed.
Exploring the Options
The first thing you need to do when arranging self-employed health insurance is to compare the different insurance providers. One of the problems with being self-employed when it comes to health insurance is that it can often be more expensive to arrange than if you were fully employed by a company. However, if you look around and compare your options, you should be able to find providers that offer rates that are comparable to full-time employed benefits.
You can either do this via calling health insurance providers in your local area, or for more options use a search engine like Google to find online providers. An excellent resource to use is Health Insurance Info , which offers details on what health insurance plans are available in your particular state. Additionally, it also informs you of potential high-risk industries, as well as the providers that specialize in different areas.
Other options available to you include the Small Business Service Bureau , or SBSB, which not only offers advice on health insurance cover for the self-employed, but also general business tips for running your own business. Having a site that combines all this information onto one dedicated portal can make running your business a lot easier.
Perhaps one of the best websites for dedicated advice on where to arrange your self-employed health insurance is eHealth Insurance . Here you can compare up to 70 health insurance providers, with policies to suit your particular needs. If there’s any drawback to this site, though, it’s that it doesn’t cover all US states - if your business is in Rhode Island, North Dakota, Massachusetts, Maine and Vermont, you won’t be able to take out insurance.
Additionally, the policies are only for one person - so, if you’re running a business yourself you’ll be fine, but if you employ people they won’t be covered. You can get round this by only employing sub-contractors, who would then have to take care of their own health plans and taxes, etc.
If you’re unsure, the best option is to speak to your local Chamber of Commerce. These can advise what options are available in your state, and you may even be able to receive self-employed health insurance cover via a Municipal Employees Health Insurance Program. Although traditionally for employed workers, some states will allow this to cover small business owners as well, so make sure you find out if it’s applicable where your business is.
Tags: health insurance, health insurance info, home based business, self-employed, small business service bureau
Posted on May 7th, 2008 in Starting a Business | No Comments »
Starting a small business can be confusing, in terms of deciding what "type" of business yours will legally be defined as. There are five main types of business organizational structures: sole proprietorship, general partnership, limited partnership, corporation and limited liability company (or LLC). Each is set up and operated differently, and each is looked at differently in terms of taxes and legal protection. Knowing which one is right for you and your business is crucial, and can save you from future legal and tax headaches.
The five main types of business structures
Sole Proprietorship - This type of business is owned by a single individual that earns all the profits and is responsible for all the losses. A sole proprietorship is the simplest of all business structures, and therefore the easiest to set up. However, it is also the riskiest because your personal assets are not protected if a lawsuit is brought against your company. There are also no tax benefits for sole proprietorship owners. While this type of business may be suitable for a small home business, most business owners will find that a sole proprietorship is too risky for their company.
General Partnership - An ownership agreement where more than one person is involved. All parties share equally in the profits and losses of the business, as well as full liability for debts. The general partners also share equally in any personal liability. A general partnership can be formed with or without a formal written agreement and there is no filing requirement with your state. One thing to keep in mind with a partnership is that partners may not always have the same goals or direction for the business, as well as different ideas on how to spend the business’ money.
Limited Partnership - A business partnership where the partners are only responsible for their own investment. Typically, limited partners are seen as "silent partners" who have invested in a business but have no management authority. Since the general partners share the personal liability for the business, the limited partners do no share in this risk. One of the disadvantages of a limited partnership is that there is several state filing requirements..
Limited Liability Company (LLC) - A flexible business structure that allows for the simplicity of a partnership with personal liability protection for the owners. While an LLC doesn’t have to follow the rigid requirements of a corporation, most states do require a formal operating agreement as well as the filing of an annual report.
Corporation - A business entity which has certain rights and privileges (such as owning assets, purchasing property, etc.) similar to an individual. A corporation has a limited liability of its debts and the shareholders’ (owners’) assets are not at risk. Corporations must follow a specific management structure and formal policies in order to remain a corporation. There are annual filing fees for a corporation as well as annual paperwork requirements from the state.
The choice of a business structure is an important one and shouldn’t be taken lightly. For more information, please take a look at the IRS’ website.
Tags: business plan, business structure, planning, Start ups, Starting a Business
Posted on May 7th, 2008 in Starting a Business | No Comments »
I was introduced to PlentyofFish.com today. It’s an online dating service that was started by one guy in Canada 5 years ago. It is now the third most popular online dating service and pulls in an annual revenue of 5 million+ from Google advertising. You know how many people run it now?
Just 1.
Yes it’s true, the same guy that started it still runs the site out of his apartment in Vancouver and is sitting quite pretty with his "little" venture. The difference between his site and the others out there? Well, #1 it’s absolutely free (people love free stuff right?) and #2 his success is based solely on word-of-mouth marketing. Kind of amazing isn’t it?
So now you might be wondering "why does it work?" In a word: trust. People naturally trust the recommendations of their friends, neighbors, family and peers over that of an anonymous marketer. Seems obvious but to employ this tactic isn’t as easy as it sounds.
Anyone attempting to use word of mouth marketing tactics must be very careful not to fool anyone about the source of the recommendation. Being straightforward is key. If you are from the company you are recommending, tell people you are. Because if you lie and people find out, the trust is broken, and word of mouth will work twice as fast but negatively against you.
Things you can do to start getting the word out:
- Create publicity (contests, event sponsorship, polls/surveys, organize a speech/talk, invent then present an aware, etc.)
- Viral marketing/advertising ( video clips, e-books, images, text messages, etc.)
- Choose influencers to spread the word (these will be individuals who are trusted already and can carry your message to their contacts)
If you have any other thoughts or comments regarding word of mouth marketing please share!
Tags: advertising, Marketing, PlentyofFish.com, publicity, word of mouth
Posted on May 6th, 2008 in Marketing Your Business | No Comments »
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