bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

Every business needs advertising to tap into a wider customer base. Your small business will prosper if your advertisements can attract the attention of your target market.

Here are a few easy steps to help get your ads noticed by the right people.

Position Your Ads Correctly

If you are advertising in magazines, then your ad should ideally be on right-hand pages, since most people view them more than left hand pages. Your ad should be colorful and should attract attention without being too loud.

If your ad is in black and white, then increase the size of your font.

If you are advertising in a technical publication, your ad should be in the proper section and it should also be more technical in nature, since many of your readers will be involved in the industry.

Different Ads for Different Folks

Find out which form of advertising is paying you the best dividends and stick to it. You could advertise in magazines and newspapers, or send out flyers and postcards. If you have a larger budget, you can look into advertising on TV, cable or radio.

The Internet is a medium that you should exploit to the fullest, since it will not cost you a lot of money. Blogging is a good method of advertising, but remember to update your blog regularly.

You can (and should!) have your own website or advertise on other sites, but again, your advertisements should be precise and clear.

Become an Expert

Write articles in magazines, newspapers or industry newsletters. This form of subtle advertising will help you to establish your reputation as an industry or product expert. And best of all, its free!

If not done correctly, implementing an advertising campaign can be an expensive affair. Follow the easy steps above, and you'll have a thriving small business without breaking the bank.

If you're a small business owner, you know the routine: you get a request for information on a product or for a product sample, which you send out immediately. However, there is no reply some weeks after that. What to do?

Instead of not doing anything, you need to follow up. The customer may genuinely be interested in your product, but may have questions or reservations. They may also want to purchase it some time later.

When the time comes for them to buy, they will finally have to figure out exactly what they want. They may have
misplaced your literature, which could prompt them to purchase the product from another business.

To avoid missing out on a possible sale, you need to be proactive and take the following steps:

Follow Up Regularly: Even though you may not have received anything from the prospective customer, you should follow up with them by sending them a letter or e-mail. You might even want to call to find out if they have any questions.

Update Your Customers: Keep potential customers updated with the latest prices and special offers. Invite them to visit your website.

Ensure that you keep in touch with them for at least 6 months so that you don't miss out on the sale.

Cold Calling: Cold calling is an art. It takes a lot of confidence and practice to pull off effectively. If you decide to use this method, make your message brief and to the point. If the call doesn't result in a sale, end the call by promising to send literature and follow up later.

To turn cold leads into gold you need to stay in contact with prospective customers.

Your retail store should not only attract new customers, but also entice regular customers to keep coming back. After all, customers are the lifeblood of any retail business.

Here are some tips to better manage your retail store.

1. Keep the Interest Alive

Implement a customer loyalty program. During new product or service launches, make sure enough people know about it to keep both your regular and prospective customers interested.

2. Pay Attention to Your Customers

Attend to every customer's needs and give them good service. Your employees should be trained to be alert at all times and to be sensitive to your customer's problems.

Mistakes, if made, should not be repeated. This means that you need to deal with them as they arise and not simply sweep them under the rug.

3. Keep Your Staff Up-To-Date and Motivated

Your sales staff should have good product knowledge - and that should be upgraded regularly. They should also be rewarded with sales incentives to keep them happy and motivated.

4. Catch Your Customer's Eye

Your products should be displayed in such a way that customers will locate them easily. They should also be stocked in a logical manner (by section), and the packaging or boxes should be cleaned regularly. Your retail store should always be neat and tidy. Nothing turns customers off quicker than dirt and clutter.

Your employees should also dress appropriately with their nametags displayed clearly. That way, your customers can identify and form a bond with them.

4. Sell Off Slow-Moving Stock

Give a special discount on slow moving items, or pair them with fast moving products to clear out old inventory. Getting less for a slow moving product is better than getting nothing at all, which could happen if the item becomes too old or goes past its expiration date.

Running a retail store can get hairy at times. If you stay organized and follow these handy management tips, your bottom line will thank you.

The world today is changing so fast that it can be difficult just keeping up let alone getting ahead. The world of marketing, advertising and selling is no different.

Customer's attitudes have become finicky and unpredictable — sometimes making planning your small business marketing strategies is more about luck than skill.

Having said that, I think it's high time to focus on what's really important — taking care of customers. After all is said and done, if you cater to them, your bottom line will reap the benefits.

Understand Your Customers

Conduct thorough research on your customer's mind set. Stand in malls and observe their shopping habits and behavior. Different states or countries have different buying tastes. Observe and market your products and services according to their needs.

What sells in one state or country might not sell in another. Identify and market accordingly. Instead of marketing your products haphazardly, do so geographically.

Identify a Need — And Fill It

In the good old days, products were advertised in the hope that people would need them and start buying them. Nowadays, that is way too risky. For your small business to be successful, you now have to identify an unfilled need, and fill the void with your products and services - before anybody else does.

Key elements are timing and pricing.

Understand Quality and Quantity

To make a good profit, you need to have good quality products and sell them in the right quantities. Anticipating supply and demand is very important if you want to avoid losing money through dead inventory.

Bad quality is bad for your reputation — and if you have poor quality products, a lot of your time will be wasted on handling complaints.

Sell a Lifestyle, Not Just Products

Customers, with their newly acquired buying power, now want a lifestyle, not just a product. For example, busy customers buying luxury cars want extended warranties, pick-up and drop-off services and free car washes.

Make sure that your products and services are marketed to appeal to your target market's lifestyle.

If you are a small business owner, you can sometimes get so involved in the sales and marketing process that you do not have time or energy left to look at the financial aspect of your products and services.

However, it is necessary to understand some of basic aspects of accounting to get a clear picture of your business and where it is headed. The following tips can help you to catch up (and understand) the financial side of your company.

Understand your product's role in accounting

If your business manufactures a component or a full product, you should understand how your input costs affect the profitability of your company. Understand how your raw material, machinery and operating costs affect your bottom line.

You will then be in a better position to make the changes necessary to save costs or increase productivity in the
future.

Do a little study

Get help from some accounting books. Subscribe to magazines that use simple language and vocabulary to explain accounting procedures.

You can (and should) also attend courses or seminars to understand what a balance sheet and Profit & Loss Statement looks like and means for your business.

Attend seminars

You could also attend seminars that offer tips to improve your financial knowledge. They will help you to manage suppliers and customers to increase your profits and cash flow.

They'll also teach you how to create budgets to improve productivity via proper planning.

Interact with your accounting department

You can interact more with your accounting department to slowly understand financial terminology.

You should ask questions — if you listen carefully, you will learn a lot from their answers.

Use that knowledge

Once you can understand the financial implications, use your new found knowledge to improve your small business' financial situation.

Understanding finances as it pertains to your small business is a must. By following the tips above, you'll be in a better position to succeed.

If you have a small business, and are on a tight budget (who isn't?), you can't hire celebrities or run a sustained advertisement campaign to become well-known.

However, there are other things that you can do to get your business the attention it deserves. And they won't break the bank, either!

Attain Expertise

Become an expert in what you do. You can do this through experience, but you can obtain industry expertise faster by taking advantage of continuing education opportunities and getting the word out about your knowledge.

Once you have attained expertise, then you have to let others know what you have attained - and you can do this by getting articles on that subject printed in newsletters, online or in newspapers and magazines. You could even get an e-book published on the subject, solidifying your position as an industry expert.

Once you come to be known as an expert in your market by your customers, you will slowly start standing apart from your competition. This will also have a positive effect on your bottom line — you'll be able to charge more for your services.

Sell Yourself

In a competitive market, don't just sell products. Market yourself as a brand name. Earn yourself a rock-solid reputation. This can be done by dealing fairly and honestly with vendors, customers and business associates.

Always strive to deliver more than you promise and be consistent in your deliveries.

In the long run, establishing long term and loyal customer relationships and staying focused on your goals will pay off, and your small business will prosper as a result.

As your small business steadily progresses, your reputation will slowly overtake the brand of products you are selling. Your customers learn to trust your words and actions more than the product itself.

At this point, you yourself have become the biggest brand in your store (online or off). Here are a few tips that will help you increase your profits through brand- building exercises.

Be honest - Be honest and transparent in all your dealings with suppliers, customers and employees. Talk clearly and precisely, leaving less chance for misunderstandings.

When selling your products and services, do not cheat customers. Under-promise and over-deliver. When you're making purchases for your business, make all of your payments on time.

Negotiate firmly but politely with your suppliers — remember, they are also running a business.

Be visible - Be there when your customers or employees need you. Solve their questions and problems fairly. The more your customers see you, the more they will associate you with your products and services.

Be consistent - Deliver what you promise on time, every time. Learn from your mistakes so that you don't repeat them.

Be unique - Be different than the rest of the market. Specialize in a product or service that builds up your reputation as a specialist. Bring in new ideas in your marketing and selling pitch.

Build long term relationships - Build long-term relations with your customers and suppliers based on mutual trust. This will encourage loyalty on their part. Slowly, they will start treating you as a friend and start referring your name to their friends and relatives.

Stay focused - Stay committed and focused on your long term goals. Use marketing strategies efficiently to attain your goals.

The good and bad thing about business is that you will have highs and lows. In seasonal businesses, you will have on-season and off-season peaks. During peaks, you will probably be doing many things all at the same time. But, it is during the lean times that you can work on those things that will help to grow your business.

Here are some tips to handle the times when business is slow.

Reduce your expenses: When profits are low, the first action you can take is to reduce your expenses. Put off all non-business related or low priority expenses on hold until your situation improves.

Clean up: Rotate all of your stock. Try and make a list of all very slow or dead stock items. Then put up a special discount on those items or pair them with fast moving items so that they sell quickly.

Also, take this time to reorganize your office. You may not have time to do this once your sales pick up.

Get a loan: If times are especially hard, then you can apply for a short-term loan to help you over the crisis. You should repay the loan as soon as your business resumes normal operations. That way you can save on interest.

Stay calm: Most importantly, don't panic. Highs and lows are a part of business life. Keep calm and be prepared for better times. Keep an eye on the big picture and wait patiently until the situation improves. It will.

Don't take business lows to heart - but learn to accept them. It is a process that all businesses go through - and it's what separates the weak from the strong.

It is very important for any business to grow and evolve. Growth will ultimately lead to increased sales. However, not all sales are made on the first attempt.

Follow up on all leads to improve your results in this area. It is important to convince your customers that you are serious about doing business with them.

Follow Up Can Be Done In Different Ways

If you have contacted a customer and not yet made a sale, then you must remember to follow up with them periodically. Follow up should be done in a subtle manner - and you should never be too aggressive.

Also, leave some time between each time you contact your client. You don't want to wait too long because you might lose the sales opportunity altogether. Large or custom orders may warrant a meeting to discuss all of the details.

In this case, your best sales team should be part of the negotiations, so that you cut down on your chances of making an error.

Offer a Personal Touch

No one method of contact will work for all of your clients. You should tailor your approach to meet the needs of each customer. Add your own personal flair, as long as it remains professional.

You should also use the feedback of your customers to your advantage. Paying attention the needs of your customers will make you a more success business owner in the future.

Good follow up is an important part of every business, but your success rate will depend on your own consistency. Your experiences will teach you the methods that will work for your particular business. You will see a definite improvement in your results if you execute them with regularity.

There are various ways to increase sales and profits for your small business. One sure-fire way of doing this is by selling related products and services.

Listed below are some of the most effective ways retailers do this.

Offer a package deal: Sell two or more items together as a package to make the product more attractive to customers. For example, while selling a car, you can add on a sound system and offer it to customers at a special price.

Offer a discount: Instead of selling one product at the retail price, you can increase the quantity to two or more of the same or different items. You would then offer both items together at a discounted price.

Offer an extended warranty: You can increase the warranty terms of your products or services. This will increase your profit margin and encourage customer loyalty at the same time.

Offer an upgrade: You can offer your customers an upgraded product or service at a discounted price. That way, you can encourage customers to make the upgrade and purchase a higher-end product.

Offer a large quantity deal: You can offer your customers a discount on quantity-based purchases. The higher the quantity, the greater the percentage the discount will be. This will prompt customers to make more purchases, and to refer your business to friends and family.

If you want to increase your sales and get new customers, these upsell strategies are a great way to do it. When you're upselling, make sure that your products are priced competitively, but well enough for you to make a good profit.