bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

I’m often asked, “How can I expand my business without a good customer base?” The answer is that you can’t! Growing your customer list is essential if you’re going to have a thriving business, and here of some of the ways to do it:

• Call former clients and get their email addresses to establish them on your mailing list. Always ask for referrals!
• When you find out that people are interested in your product or service, ask them if they would like to be included on your mailing list, which would give them in-depth information about your business.
• Place advertisements on websites related to your field of business, asking people to sign up for your mailing list to get email information or special offers.
• Associate yourself with community-based message boards, and try positioning yourself as a specialist in your field. Once people are convinced, they will sign up for your newsletters (you do have one, don’t you?), and they will be added to your list. (An easy way to create and send email newsletters is by using MailerMailer.com.)
• You could create a subscription form to be filled out by people willing to join your list. Your newsletter should also have a subscription box, which would automatically add them, based on the page they subscribe from, to a particular mailing list.
• Write articles for local newspapers, even if you have to pay for the space. These would advertise your knowledge and awareness of your product or service, thereby attracting people to your website to sign up for your mailing list.
• Create a print newsletter that explains the details of your email newsletter and mailing list. This would let them know that they can sign up for one of the lists by sending an email to the website.

If you sell a product or service, no doubt you probably feel pressure from your customers due to their expectations. I used to feel that I didn’t know my customers very well, and I had lots of anxiety because of it. Then I implemented a Customer Relationship Management program, and everything changed (for the better, I might add!).

Establishment of Expectations

It is a good practice to establish a list of customer expectations that will be met by your product or service. Putting the good, the bad and the ugly expectations in writing will enable you to keep revising the list as you go along.

Conduct Customer Interviews

Conduct two interviews of your customers. Prepare a questionnaire and ask them to complete it, and either fax or email it to you. The first interview should be conducted before the purchase of your product or service, and the other after its completion. The questionnaire should contain your contact information, as well as the name and mode of action to be taken, should there be a problem. The first questionnaire should determine the expectations of your customers and the preferred communication method. Send the second questionnaire to find out if customers have been satisfied with your product or service. You will also get to know what they liked or disliked, and what needs to be improved.

Know How to Say NO

Sometimes it is not possible to fulfill all the expectations of customers. It is a fact of business life that sometimes you will have to say no — but you can make sure that you say no in a manner that customers will feel they have been heard and treated fairly.

Keep in Touch

Maintain the human touch despite modern technology such as email and voicemail. Sometimes customers just want to hear a human voice! Do not let automation come between your customers and your business.

So what’s the bottom line here? Knowing your customers and their expectations is key to knowing how to deliver. Once you know that, you’ll feel much less customer-related pressures.

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I know, I know — I hate meetings too! But, sales meetings are powerful sales tools that help to access valuable information and training that helps all the employees to perform better. The main purpose of these meetings is to get the sales staff equipped to adopt hard-core selling. Sales meetings often turn into a redundant waste of time with boring lectures. Without an agenda and objective, these meetings can be useless.

Key to Successful Sales Meetings

If you are a manager, you need to identify interesting ways of holding a sales meeting. Make efforts to find meaningful and fresh content each week. Be prepared to inspire and motivate the sales team for better results.

Time

The most important factor to be kept in mind while planning a sales meeting is punctuality. Strive to begin and end the meeting on time. As a business owner, you need to lead your team by example. If a sales representative is always late, sit with him, express your expectations and enlist his support.

How to Start the Meeting

Before the meeting begins, take printouts of the meeting's agenda and distribute it among the sales team. Start the meeting with a sales quote. Make sure that when you discuss office production, it is related to the team as a whole. Provide marketing updates and details of the training schedule to the team. Do not forget to stress the importance of attendance.

It is very important to recognize and appreciate a good performance. Award a trophy to the ‘sales representative of the week' and acknowledge his/her efforts. Remember to end the meeting on time. Don't let a particular topic drag on for too long if it isn't very important.

These strategies ensure a powerful, value packed and successful sales meeting each time they are implemented.

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Negotiation is as much an art as it is a skill. Sadly, not many business owners have learned how to negotiate on their to-do list. Luckily for you, I learned the hard way so you don't have to!

Tips for Successful Business Negotiation

• Always be prepared to negotiate and do not hesitate to talk about any money involved. Money is seldom an easy topic to discuss, but when it comes to your own business, you should be alert and willing to discuss it without hesitation, as the survival of your business will hinge on it.
• Always take complete control of the discussion. Maintain a positive stance in negotiations and avoid getting involved emotionally. Negotiation is possible only when both the parties concerned see something beneficial for themselves in the deal. Any display of strong emotions may have a negative impact on the other party, forcing them to concentrate on only getting what they want.
• Be careful not to let the other party trick you into accepting certain terms of a contract, on the existence of some unchangeable rule. Make sure that the contract allows equal rights to both parties for the modification of the terms.
• Finally, never be the first one to suggest a figure. The crux of intelligent business negotiation is to let the figure be suggested by the other party. Then you can suggest one that works for you and continue negotiating.

Handling business negotiations intelligently is very important to help sustain and successfully maintain your small business.

Importance of Inventory

As a small business owner, the most important tool that you can use to keep track of your business assets and property is inventory. In the absence of a proper inventory, you would have no record of equipment that is lost or broken. The data required for the determination of business strategies would also remain incomplete and inaccurate.

Precision and accuracy are of paramount importance in maintaining an inventory. Any negligence could result in wrong decisions and a loss to your business. To keep the inventory accurate, you need to implement a proper inventory system. I know, I know…taking inventory seems tedious and boring, and you have better things to do! But, simple and organized inventory keeping is not very hard.

Inventory Tips

All documents should be properly filed — In order to keep track of the earnings and expenditure of your business, receipts of transactions and cash disbursal sheets are very important. All transactions should be complete with valid receipts. The receipts should be filed methodically, to provide reliable evidence of transactions. The receipts help to access comprehensive details about assets, with recorded purchase dates and names of the suppliers.

Label equipment for identification- Label all the equipment, using a brand or sign that is unique to your organization. Number each piece for identification, so that repetition can be avoided in recording the details in the inventory.

Update the inventory regularly- Once a proper inventory is prepared, it should be updated regularly or else the data provided would be wrong if new equipment and damages are not accurately accounted for.

Appoint someone in charge of maintaining the inventory- you should ideally appoint someone to take responsibility for maintaining the inventory.

By keeping good records where your inventory is concerned, you can reduce waste and save lots of money for your business.

Related Link: Inventory control is vital to retail success. If you’re a small retailer you need an easy to use inventory control system. Try MerchantOS: www.merchantos.com

As a former salesperson, I can attest to the fact that hearing the word no (an objection) used to get me all worked up. If you’re new to business, you may feel that this little word could be a major setback to your sales — it can even feel intimidating or threatening! But this is just one way of looking at it. A little change in your attitude (like I did) can help you view objections in a new light!

An objection can be regarded as a positive feedback, and a chance to improve your product or service. While one part of your mind may say, “we're doomed”, another could say, hmmm…so how do we rectify the problem?”

Besides, customers may disguise their inquiries and apprehensions about the product or service in the form of objections. If that were the case, it would be best to listen to exactly what your customer has to say, and fix whatever needs to be fixed. This is a two-step procedure:

1. Figure out the Objection

First, the actual reason behind the objection has to be determined. Cross-examine the objection by asking questions like what factors were taken into account, what the reasons for objecting are, and what expectations are to be fulfilled. However, keep in mind that sometimes people may also feign objections. Once the validity of the objection is confirmed, you can start working on it.

Resolve the Objection

Now that you have the objection in sight, start working out solutions to resolve it. Think of methods that are effective and innovative. Work diligently on the problem and find out how to solve it creatively .

The key is to not think of an objection as a ‘no’. What it really is, is the first step to your customer saying ‘Yes!’

One of the most daunting tasks a prospective business owner faces is finding the funds to actually get started. I faced the same problems as all of you, and here's a short list of what helped me in my quest for the cash.

SBA- Source for a Business Loan

A great resource for financial help to start your own business, is the Small Business Association, or the SBA. This government organization provides loans for various business purposes. If you go to the website of the SBA (http://www.sba.gov), you can get a lot of information about the availability of loans.

Bank Loans

Another institution to approach for funds to start a new business would be a bank. You should make inquiries and visit different banks and identify one that is prepared to finance your proposal on terms that are viable. A great place to start is the bank where you have your personal account, because you already have a relationship with them. If you are able to secure a bank loan, you must be prepared and committed to making timely repayments.

Find an Angel Investor to Help You

Another option to generate funds would be to find an angel investor. Angel investors are individuals who intend to invest their money in a business run by others, for financial returns. However, you should be aware that the investors are in fact, part owners. They may be able to compel you to make changes in your business that you may not consider wise or profitable.

Easy Help

Your near and dear ones are always your immediate support and are easily approachable. Your family and friends can become a source of funds for your business, since they are aware of your capabilities and sincerity about the potential business. Before you decide to use this option, be aware that many friendships are often lost over the issue of money, so be sure that you approach this in the same way that you would any other loan.

There are many ways to secure money for your business venture. The decision to approach the SBA, a bank, an angel investor, your family or friends is dependent ultimately on your assessment of your needs and the ability of the business to repay.

If you have a home-based business like I do, your biggest job is probably promoting it — without spending a small fortune. Fortunately, it can be done, and here are my favorite 3 ways to do it!

Through a press release: - To make people come running to you, one way that is cost effective is by writing a press release. Most people, even if they do realize that this is a good way, are unable to take advantage of this because they do not know how to go about it. Press releases are written in a particular format. You can get an idea about how to write one from the Internet. You'll be able to find information on proper format and distribution channels. Fortunately, writing a press release is fairly easy and there are a number of services that can do the writing and distribution for you for a small fee.

Create a website: - Even if you do not know how to create a website, there are many websites that give you free step-by-step instructions on how to set up a website. You should be able to do it yourself if you possess basic computer skills.

Write a newsletter: - A newsletter is an excellent marketing tool and will allow you to promote your new home-based business and increase your profits. The newsletter should contain the details of the services and what they are going to cost the customer. It should include your personal details as well. Keep updating the newsletter with advertisements for savings, new product or services offered and offering some sort of a discount, say a coupon for a 10 percent discount.

There are many ways to promote your home-based business. Using the 3 outlined above is a good (and free!) start.

OK, so we all probably know that having a website is a great way to have customers find your business. But how will customers find your website? This is where web marketing comes in, and whether its online or offline marketing, or you’re selling apples or zinfandel, the process if pretty much the same!

Marketing your website online

One of the best ways to popularize your website is to register it with the various search engines available on the Internet. Scout for organizations similar to yours on the web, in order to see which site links to them. You can send an email to the webmaster of the websites you think should also link to your organization. Make sure that you mention your URL address whenever you send e-mail to someone. Announce your website on Internet newsgroups and lists that relate to your organization. Participate in discussion groups online and build the reputation of your website as a valuable resource. Whenever you update your website, send out email newsletters to promote it.

Marketing your website offline

Along with your organization's phone number and address, mention your website address in printed publications. If you launch your site or make any major changes to it, send out printed newsletters informing people about it. Add your website address to your voice mail message, press releases and every item given to the public through your organization. Do not forget to refer to your site address when talking to the press.

Marketing your website will make it easier for customers all over the world to find your business, something that I found next to impossible with traditional advertising. So don’t be intimidated by the ‘Net’ — use it to your advantage.

So, what sets you apart from the rest? What is your winning quality? What do you have that your competitor doesn't? In other words, what is your MVP?

An MVP, or “Most Valuable Proposition,” is an attribute unique to you that you can offer to the world. It could be a distinctive service, a distinguishing feature of your product, a different policy in your product, or even a large consumer list. Your MVP is your most potent weapon that will spell doom for your competitors and catapult you to success.

So, how can you identify and develop your most significant attribute? Something that will give you an added advantage over others? Here's how:

Look around. What feature of your company is so obvious that you may have overlooked it? Find it, no matter how hard you have to look. Once you get started, you’ll probably see it wasn’t that hard to find at all.

Perform this simple exercise:

1. Make a list of all your company's attributes including employees, products, guarantees, prices, services etc.
2. Make three columns against this list.
3. In one column, write what you and your company express about each attribute.
4. In the next, write down what your competitors are saying about them.
5. Compare the two columns.
6. In the last column, you need to put on your thinking cap and describe what the other two columns have missed. This will give you your MVP.

Knowing and developing your MVP is the key to driving your business to succeed — most importantly, your business will be successful in the eyes of your customers, because you have what they need and want!