bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

The business world is filled with opportunities for enterprising people - and if you are the right person that comes along at the right time, then you could really rake in some serious money.

Here are some tips to take you closer to that money tree.

Identify a demand and convert it: Identify a product in demand and search for a source to get it to your customers as soon as possible - before others catch on.

This method works very well, especially with products in niche markets.

Tell the world that you have what they need: In short, advertise your products. What is the point in having the right product if your prospective customers are unaware that you have it?

Use all available media, including the Internet, to advertise your products. Write articles in magazines and deliver speeches in workshops to get publicity. These methods will enhance your reputation while ensuring that your small business' name remains on everyone's lips.

Keep your ear to the ground: Keep an eye on what is going on in the market around you. Monitor your competitor’s activities.

To find the right opportunity, you have to be street smart - and business savvy.

Be innovative and flexible: If your product prices are higher than your competitors’, then offer something they don't, such as faster delivery or a freebie.

If the competition is especially tight, you'll also need to educate your customers about the superior features of your product. All this does cost money, but it will definitely increase your sales. When the right opportunity comes along, it pays to take calculated risks.

Be persistent: History will tell you that most highly successful people rose to iconic status after facing failure. When you fail, don't be dejected — simply try another road to get to the same destination.

As a small business owner, it is essential to have faith in your abilities and take some chances. Good opportunities usually only present themselves once.

For your small business to run successfully, it is important that you have the right combination of employees to run the show.

Hiring the wrong employees is enough to sink the ship — but hiring the right ones will definitely mean more profits.

Match each employee to the job profile: Make sure that the employees you plan to hire have the necessary skills to do justice to the job that you are hiring them for.

Each employee should have the skill and the will to contribute positively to your business. But good employees don't come cheap, and you'll have to offer good salaries to get the right ones.

Know the details: Note the employee's social security number, get a copy of their driver's license and check whether they have the necessary work permit.

Make sure you know everything you need to about the employee's previous work history.

Contact previous employers: These days, doing your homework on potential employees is crucial. Cross-check their work history by contacting his or her previous employers, and be sure to get references.

This will determine whether they are honest; and you will also find out about their work habits and if they are efficient and knowledgeable in their job.

Try them out first: If possible, tell prospective employees that you would like to try them out for a month or two on a contract basis. That way, you will both be able to find out if you are compatible with each other.

Tune in: At the time of the interview, try to gauge their thinking process by asking difficult and situational-related questions. It is not only important for them to know the answers, but they should also have good reflexes and be able to think on their feet in tight situations.

Create mock situations and ask them what action they would take to solve the problem.

Hiring efficient employees who are assets for your small business is crucial. By following the tips above, you're sure to hire the right ones.

A home business might save you money on overhead, but more effort is required to ensure that you achieve your sales targets.

Given below are some tips to help you run your home business more profitably.

Draft a proper business plan. Chart a proper business plan - and the ways in which you plan to achieve your goals in writing. Try to stay with that plan as much as possible. On a monthly basis, note the progress that you have made and compare it with your chart.

If you have been unable to achieve your targets, then identify the causes and try to rectify them in the future.

Get Serious. A home business is a business; so keep it separate from your home life. Set up your office in a dedicated room so that children or other family members do not disturb you while you are working.

If you have clients that visit you, then you should have a separate entrance to your office.

Use your imagination. Use different, innovative ideas. If you are running an online sales business, then try to locate exclusive and innovative products that you can sell. Build an eye-catching website and use related keywords in the text, so that your website will figure prominently in related searches.

Reach out to your target audience by writing online articles related to your business to get additional publicity. Your website should resemble a virtual office - and should be informative and interactive, so that your prospective customers will feel that they are dealing with a professional.

If you follow the steps above, you'll be well on your way to a highly successful — and profitable! — home business.

It takes a little bit of effort and money to increase safety at your workplace, but if you take the initiative, then you can ensure that you and your staff remain a safe distance away from any danger.

An Ounce of Prevention….

Follow a preventive maintenance program. Keep your machines or equipment in proper working order by having them checked out regularly.

That way, you can detect small problems before they have the potential to become life-threatening.

Educate Your Staff

Be firm but tactful in explaining the importance of safety in the workplace to your employees. Keep an eye on them to ensure that your safety programs are being implemented. Reward employees who provide innovative ideas to improve safety.

Provide the right safety equipment to ensure that your employees are well-protected. Above all, don't buy substandard safety equipment just to save money.

You could end up paying a lot more money in employee claims — or lawsuits.

Follow a Proper System

Keep all your tools in their designated place so that they are easier to find and don't pose a safety hazard. Sharp tools should be kept in enclosed areas with the proper markings and warnings posted.

Keep first aid kits and extinguishers in visible places where they can be accessed easily. It doesn't hurt to invest in a few extra fire extinguishers.

Practice What You Preach

You should follow all the rules that you are trying to enforce. That way, your staff will be motivated to follow your actions.

Workplace safety is everyone's responsibility. Having a proper program in place will ensure that the safety at your workplace is not compromised.

If your small business is in trouble, you cannot simply spend your way out of it. You'll need to restructure.

To restructure your business, you'll need clear direction, the resources to manage the change, and the willpower to implement it.

• Control your cash flow. Controlling your cash flow is like ensuring that blood flows through your veins - it is vital for your small business' survival. Postpone or cancel all non-essential expenses. For example, if you usually buy office supplies months in advance, try buying them little by little. Similarly, most office supplies can be recycled, such as paper, paper clips and post-it notes.

  Get a grip on your credit customers. Make sure they pay all outstanding invoices as soon as possible. Offer them a one or two percent discount if they pay up before the due date.

• Control your employees. Talk to your employees and explain the situation in a frank and tactful way. Tell
  them to improve in whatever way they can, so as to contribute in way of increased sales. Tell your slow-moving and unmotivated employees to either buck up or buck out.
• Control your suppliers. Explain the situation to your trusted suppliers. Ask for an extension of credit from them. Start paying them in installments so that they do not panic and stop sending supplies to you completely.
• Control your emotions. By all means, do not panic. Keep a calm and composed posture so that your employees, suppliers and customers keep their confidence in you and the business.

Simply put, to restructure your business, you need a proper plan that has to be implemented and monitored on a regular basis so that you will know exactly where you stand. ‘Control' over the various departments of your business is the key to restructuring your business successfully.

Successful negotiation is the key for any business, however large or small. The total amount of a product or service is not as important as the percentage you can manage to negotiate off the listed price.

Here are a few tips to negotiate better.

Do a Little Research

Get as much information as you can about the product and the supplier or customer that you are going to negotiate with. That will prepare you beforehand as to the level of pricing that you are dealing with.

If your supplier or customer has the habit of being hard-nosed, you can increase your starting price a little before adjusting it during the negotiation, so that the opposite party will have the mental satisfaction of netting a good deal.

It's Not Personal

Do not be afraid to negotiate. This is normal in any business transaction, and at the end of the year it can make a big difference to your bottom line. However, do not take anything personally during negotiations. Don't offend the other party or get offended yourself.

Try to understand their point of view during the negotiations. Keep your attitude firm but courteous during and after the negotiation. You never know when you might need that supplier (or customer) again in future.

Use a Different Window to Get into the Same House

This means that if you are unable to convince your supplier to lower their prices, then you can at least try to convince them to give you free delivery or better credit terms. So, even if you don't manage to get a lower price, you can still reduce your overhead — which goes straight to your bottom line.

Becoming a good negotiator takes time and practice. You have to start somewhere — so why not follow the tips above and start today?

Infomercials are extremely long commercials that try to convince a viewer to buy a product by explaining the virtues of that product in a repetitive and almost hypnotic way.

If promoted in an ethical way, it is a good method to educate viewers about the positive points of your product or service. Here are some points to ponder if you are considering making an infomercial.

Innovation

Many times, infomercials are used to promote an ordinary product by turning it into something extraordinary and out of this world. Some products require infomercials and some don't. If you have to brand a new product, then an infomercial may be the best way to get your product in front of the public. On the flip side, it doesn't take a half an hour infomercial to show people that a good knife can cut through vegetables and meat.

If a product is totally innovative or requires a little time and demonstration to understand its use, then an infomercial is the best medium to promote that product. For example, a juicer with 10 different attachments is a good item to be promoted via infomercial, while an exercise machine with only one exercise option is not.

Testimonials from REAL People

Since most of the ‘actual users' shown in infomercials are paid to sing praises about the product, it is a better idea to solicit feedback from authentic actual users who have used your product. Make sure that you note that none of the people giving testimonials have been paid — building your credibility.

Infomercials can be rather expensive — so if your business is relatively new, you may not have the money to make one. However, if you can secure the funds to create an effective infomercial, it can be a very effective way to promote your product to great levels of success.

So, you have a great idea and you want to convert that idea into a successful business. You may have the idea, the motivation and even the expertise to pull it off. But where is the money?

This single important factor can stop your dream from becoming a reality. Here are some ways that you can raise the money to get your business off the ground.

Banks:

This could be the first place to get some money. However, banks require collateral; and in the midst of the current sub-prime mortgage crisis, banks are very jittery about offering loans to startup businesses without adequate collateral.

You could contact the SBA (i.e. the Small Business Association) to solve your collateral problem. Be forewarned: the documentation required will be intense.

Venture Capitalists (or Angel Investors):

These are people who can finance your business if they see future potential in it. They become co-owners of your business and they also take a certain percentage of your business' profits to recoup their investment.

In the worst-case scenario, they could also take over your business. But the documentation required to secure the money is minimal.

Family and friends:

You can approach your family or friends for a “loan.” This way, you will not require collateral or a guarantor and you can offer them a rate of interest that works for you.

However, you should take care to pay off the loan on time - or you could become a social outcast. Again, hardly any documentation is needed.

Raising money for a new business venture is sometimes difficult, but the end result is almost always worth it!

If you have a small business and are on a limited budget, then you need some help promoting your business - without spending a lot of money.

Here are some ways that you can promote your business and save some of your hard-earned cash at the same time!

Make full use of the Internet: Use the tools available on the Internet to get noticed by potential customers. Use powerful search engines such as GoogleBase and Yahoo Local, which will give your business information to customers and are free to use.

Offer e-goodies free to readers: Offer e-books on your products along with helpful free tips to users in exchange for their e-mail addresses. This will enable you to build a database of potential customers.

Remember to stay in touch with your customers by offering them product updates and upgrades on a regular basis.

Write e-articles and blogs: Write articles for sites that offer to display them for free. You can also write and post your own blog. The content should be relevant to your business; doing this will establish your reputation as an expert and increase your business.

You could also become a member of an association or join a group of owners of similar businesses and make speeches and arrange conferences to give you and your business better exposure and publicity.

Publicize your e-mail address: Put your email address on your letterhead, business cards and all correspondence, and keep your website updated and capable of accepting inquiries and orders.

By using these tips for free marketing, your small business will be successful in no time.

In order to increase your business, you need to concentrate on the people who are most likely to buy your products. This is called target marketing.

Here are some tips to help you ensure that your target-marketing techniques are, well, on target.

Understand Your Market Demographics

Identify potential customers by doing a study based on the population of a particular area. The survey should include age, sex, income, and spending habits of this population. This will yield clues as to their tastes and buying behavior.

Once you understand their needs, you will be ready to move to the next step.

Set Up Shop

Once you have identified your target market, then you are ready to select items that will be successfully marketed to that neighborhood and you can open up a business in that locality.

If you already own a location in a particular neighborhood, then determine what items are in demand in that area and design a business around products and services that will fulfill that need.

Become a Specialist

Acquire additional skills by attending workshops or seminars. Do whatever it takes, but become a specialist in your line of work. You will soon start attracting customers who will come to you for solutions to their problems.

This will generate better profit margins and you will be able to target quality customers. You will also attract a dedicated and loyal customer base because of your expertise.

Identifying your target market and acting upon it will save you a lot of time, money, and energy that would otherwise have been wasted trying to sell to everybody. Identify your target before you invest your resources.