bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

Have you ever gone the mall to window shop, and ended up buying something that caught your eye? Something about that product must have motivated you to buy it.

Motivational triggers are the key that opens minds and creates a desire for a particular product.

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Advertisers use this trigger very effectively by positioning their products in such a way so that people might think that buying the product will enhance their life in some way or the other. People are compelled to think that their life is a failure if they do not possess a particular brand of mobile phone, or if they don't have the most popular brand of jeans.

Money or time saving ideas are also very popular. In this marketing strategy, products are positioned in such a way that implies that people who buy them will save money or time or both.

Popular models and film stars are also used to promote products tempting people to think that they too want the product if their idol has it or is promoting it.

Market Repositioning

The downside is that many times, people end up buying products that they really do not need or are unable to use after purchase. Smart companies also reposition their products so as to activate different areas of the customer's mind.

For example, a mobile phone with basic features is marketed as a life necessity - but higher end models are sold implying that the product will make customers' lives more successful.

Activating your customers' emotional triggers isn't hard- but it will take some thought and work on your part. By following the examples above, you can make sure that your products and services will always be in demand.

Every small business owner has to communicate with their suppliers and customers to get the best deals for their business.

If you don't know how to negotiation effectively, you will lose a LOT of money..it's as simple as that.

Know Your Products and Services

You should know what you are talking about when discussing your products and services. When you're trying to convince potential customers to make a purchase, it is imperative that your product knowledge is solid and you think logically.

When you know your products and how they compare to the competitions', you will be in a better position to negotiate.

Know Your Customers and Suppliers

It is also wise to research the people you are dealing with, be it your suppliers or prospective customers. Knowing how much to negotiate depends on how well you know them.

There are some customers who habitually negotiate prices, whether they are fair or not. Knowing this information in advance will enable you to quote an increased price, which you can lower later during the negotiation. This will keep that particular customer happy and your bottom line safe in terms of profits.

When dealing with new customers or suppliers, observe them carefully. You can learn a lot by just watching their expressions and body movements.

Keep Your Options Open

Keep your options and your mind open while negotiating. If you cannot negotiate on price, then try to negotiate on delivery or payment terms. Talk precisely, so that there are no misunderstandings later. Especially with suppliers, try to get free delivery or increased payment or credit terms.

Communicate

When negotiating with your customers, talk softly and do not take negotiations personally. It's part of the business culture. Be firm, but gentle when you cannot negotiate any further.

The better your negotiating skills are, the better chance your chances are of getting the best deals for your small business — that's why you can't afford to wait another day to improve them!

Taking part in a trade show is like telling your business' life story to a stranger in a couple of minutes. You have very little time to convince your prospective customers to make a purchase or at least interest them into meeting you or contacting you again.

The following ideas will help you make the most of your time at tradeshows.

Size Matters

Even if you have a small booth, ensure that all your banners and posters are written in huge letters. Since customers will be some distance away from your booth, anything in small letters will not be readable and will not attract any attention. Use sensible colors and clear fonts.

Also have your best staff ready to explain to customers about your products. Invite your regular customers well in advance to the tradeshow - this is a good way of keeping in touch with them.

Encourage them to bring their friends, relatives and business associates to the show as well.

Gifts for a Lasting Impression

Have gifts and mementos related to your products to give to prospective customers. For example, if you are selling cars, have a small miniature car which can be used as a paperweight, and give it along with a key chain and pen with your company's details on it. That way, you will have at least one item that will always be in front of your prospective customer.

Attend to customer questions and inquiries with a smile. You can also announce a special discount for customers who purchase items at the trade show. Take details of your prospective customers who visit your booth, and send them thank you cards afterwards. Following up after the tradeshow is equally important in converting prospects into regular customers.

Try out the above ideas to increase your tradeshow sales. If customers like what they see, then they will reward you with their business.

Just as a good strategy is required to win a football game, so in business, you need a good strategy to increase your sales. When you increase your sales, your profits will naturally follow suit.

Set Your Goals

It is very important to set your goals before taking any action. Your goals should be practical and attainable, but it should also be high enough to motivate you to make that extra effort.

Next, take concrete action to attain those goals. Build a solid strategy using all available resources. This could be advertising and marketing media such as the Internet, newspapers, flyers, etc., depending on the needs of your business.

You should also, as your research dictates, keep an efficient sales team ready to handle your customers. Train them well so that few errors are made. If they do make errors, step in immediately to diffuse the situation.

Customers will be happy if you own up to your mistakes and rectify them immediately.

Products and Overhead

Pricing is very important in determining your profits. Concentrate more on rotation of your products rather than stocking too much at once. For this strategy to succeed, you will need very efficient suppliers. Locate them by giving them small orders first and then moving on to bigger ones. Maintain a close eye on your competitor's products and pricing, to maintain a positive market position with your customers.

The other way to increase profits is to lower your overhead. Lowered costs mean more money to use elsewhere. For example, there are now products available which detect motion and turn off air conditioning units or lights in areas of your business that are empty for a period of time. Installing them is a one-time expense but the benefits start immediately.

Small steps can add up quickly when it comes to maximizing your profits. Changing and upgrading your strategies will ensure that your small business not only survives but thrives.

Money Saving Tips for Purchasing Office Supplies

Running a small business requires you to look after many departments. One small but important department is office supplies. If not handled properly, you will end up with either excess supplies taking up valuable space, or defective items which will waste valuable time and need to be replaced.

Here are some tips to save time and money when purchasing office supplies.

• Order only what you need in the immediate future. Unless you are getting a fantastic discount on large quantity orders, do not order more than you need. According to your consumption, plan weekly, monthly or quarterly orders. Keep track of slow consumed items and reduce the quantity when placing a fresh order and vice-versa.

  Also, don't order too much letterhead - because if there are any changes made such as a change in your telephone number or address, the remaining supplies will be wasted.

• Get door deliveries wherever possible. If your office supply orders are large, instead of going to suppliers, have them deliver brochures, price lists, or samples to your office. That way you can have a variety of choices without running around. You can also check out the internet - but before placing orders on the internet, check out the supplier's reputation and replacement policy.

  Finally, buying the cheapest might not mean getting the best. For critical items, go for reputable brands rather than cheaper or discount ones.

• Leasing equipment. If you are constantly relocating, you can try leasing furniture and equipment like computers, fax machines and copiers. That way, you don't have to upgrade your equipment or remodel your furniture every time you change locations.
• Do not waste. One Japanese company saved thousands of dollars just by sticking the 2 unused ends of used pencils together, thereby creating an extra pencil. Some companies use shredded paper as padding material when shipping their products.

While the amount that you may save using these techniques might not seem like much, it still is money saved. You can modify these ideas to suit your needs. And it's great for the environment too!

 

People are social animals and in the business world, meetings are essential ways of discussing business deals or exchanging ideas or thoughts. But there are etiquette rules that you should adhere to in order to ensure the successful outcome of any meeting.

Personal Matters

It is very important to dress professionally when going to a meeting. Your clothes should not be shabby. They should be properly clean and neatly pressed - not ill-fitting. They should enhance your personality rather than suppress it.

If you are a man, you should also shave. If you have a beard, it should be trimmed and groomed appropriately. Hair should be clean and brushed. Appearances are very important, as people make assessments about you in the first few seconds of your meeting. Never be late for your meeting, especially the first one.

Etiquette implies not only your appearance, but also your style, mannerisms and conduct during the meeting. Your handshake should be firm, and you should maintain good eye contact when talking to people. You should also be polite. You should speak in a soft voice - never shout.

Even if things are not going your way in a meeting, be polite but firm in presenting your point.

Planning is Essential

If you have advance notice of the meeting, plan your points in advance so that you are clear on what you want to say. This will allow you to remain focused during the meeting so you can cover all of your topics. Be precise in your points while talking, and cite statistics to back up your ideas.

It is also important to know the other people present in the meeting. While interacting with them, make them feel important and appreciate their views. Be confident about yourself, and act confident.

When it comes to meeting etiquette, mind your manners. It may make all the difference between success and failure.

Good business is not only about selling products or services, but also about maintaining a lasting relationship with your customers. Getting to know your customers is important to building a strong foundation for your business.

Courtesy Is Thy Name

Once you get a new customer, it is important that you build a good rapport with that person. Start with addressing your customers with “Mr.” or “Mrs.” or “Miss.” As your professional relationship builds, it may be okay to address them by their first names.

Learn as much as you can about your customers without appearing too inquisitive or clingy. Different customers have to be handled in different ways - and the sooner you learn this, the sooner they will be comfortable with you. It is also a good idea to brush up on your product knowledge, so that whenever they ask for your advice, you are able to help them out, even in areas not related to your products or services.

You should also keep in touch with your customers by email. Send them details of new products, services or any price revisions that take place. Send them greeting cards on festive occasions by postal mail and email newsletters.

Make Honesty Your Policy

Be honest, transparent, and efficient in your dealings with your customers. This generates good word of mouth publicity, which is the best form of advertising since new customers coming to you this way have already received a good review about your business. This way, your reputation precedes itself, and the customer will require less convincing to generating a sale.

By generating a “Pull” for your product instead of a “Push” you will have succeeded in increasing the demand for your product and services. The advice of long-term customers can also help you in marketing or designing new products or services, in addition to improving existing ones. Their feedback is invaluable - and best of all, it's free!

So, getting to know your customers is very important. In today's world there are many businesses selling the same products and services. It is your knowledge about those products and your relationships with your customers that will help you in the long run.

Employees form the backbone of any organization. Any good small business owner ought to realize that care needs to be taken to keep the backbone healthy.

Employees are human beings with feelings first - and that is how they should be treated. It is a good idea to give awards to deserving employees; it increases their morale and makes them feel appreciated and happy. It will also motivate them to strive harder in the future.

Giving awards will also set an example to other employees to work hard. Awards will also encourage employees to remain loyal to your small business.

Set Up Categories for Awards

Awards can be classified in many different categories such as best service, best attendance, best performance, etc. You can define your own categories of awards to be given, depending on the business you run.

Along with individual awards, you can also give team awards, which will encourage better teamwork. A banner announcing the different types of awards - and the names and photographs of employees who have won those awards should be placed prominently for all employees and customers to see.

Plan a Surprise

In addition, you can also plan surprise awards, which you can announce at the completion of a successful project or deal. Everybody loves to be pleasantly surprised, and your employees are no different. Such awards can motivate other employees to work harder in the future.

Awards can be given on a monthly basis. For example, a particular employee can be chosen to be the “Employee of the Month”. This will keep employees' motivation high, especially when they see their name for that particular month. Take care to give only deserving employees this award. That way, you are sending the message that the award is strictly based on performance.

For a small business to remain healthy and happy, its employees need to feel happy, appreciated and motivated. Awards are one sure way of telling your employees that their efforts and hard work are appreciated. It is also a way to recognize them and thank them for their service.

Tips for Building Better Business Relationships

A business relationship is like a tree - it will bear fruit only after it is properly nurtured and cared for. Business relationships can be formed between you and your employees, your suppliers and also with your customers.

Listed below are some tips that you might find useful in building better and longer- lasting relationships.

Have patience

To build a good business relationship, patience is important. Be it with customers, suppliers or employees, it takes time to build a relationship. The foundation of that relationship has to be rock solid to sustain it over a period of time, as well as withstand some minor misunderstandings that might come up from time to time.

Respect others

A business relationship will make progress if only both parties involved respect each other. That means listening to each other’s viewpoints and reaching a quick and painless compromise in cases where views do not match.

Taking one step backward can often diffuse an argument.

Be honest and trustworthy

Especially with customers, be transparent and honest in your dealings. Cheating customers can never help build long-term relationships. If the customer does not trust you completely, it will take quite a lot of effort to sell them anything.

In being honest with your employees, they will realize that they can trust you to solve any of their grievances or problems, if any. Similarly, by making prompt payments your suppliers and remaining loyal to them, your suppliers will realize that they can count on you for their steady sales - and they will provide you with great service in return.

Stay in touch

To build long-term relationships, it is important to keep in touch. To stay in touch with customers, it is better to maintain a database, which you can utilize to send greeting cards, birthday cards or just information about new products. Remember your important customers, and keep in touch with them personally.

Nurture and take good care of the tree of business relationships - and reap the rich dividend of fruits that will result from doing so.

Many retailers and online businesses look forward all year to the weeks between Thanksgiving and Christmas. The Christmas season is a great opportunity to make a strong close for the year and increase sales transactions.

However, you don't have to start offering bargain discounts on the traditional “Black Friday.” You could opt to start your sale season a few weeks early to draw shoppers to your stores. Studies show that retailers increase their sales by as much as 30% during the holiday season.

With so much going on during this time, it is important not to overlook the many opportunities for your business to thrive. You will need to ensure that you're not only ready for the holiday rush, but that your sales and support staff are ready as well.

Below are some tips on how to maximize your earning potential while providing outstanding customer service.

Get Ready, Set, Shop!

The appearance of your store will matter the most during this time. Customers want to see easy to navigate, updated facilities when spending their money. Organize shelves, have plenty of products on hand, and maintain sufficient staff to assist customers with their shopping needs.

Don't neglect your stockroom. A clean stockroom with easy-to-find products will make restocking the floor fast and easy. Make sure you have plenty of products on hand. Offer many different choices and place stocking stuffers by the checkout registers for those last minute add-ons.

Displays should be organized, and prices need to be clearly marked. A knowledgeable member of your sales staff should always be at the ready to answer questions or assist in the selection process. Always keep your store neat and clean. As the season draws to a close, be prepared for the last minute shoppers because they offer many sales opportunities!

Lastly, don't forget to thank your customers for each and every sale. You want their loyalty and their business to extend into the following year.