bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

If you have started a home business where you have lots of inventory, you may opt to have a storage facility for holding your products before they are dispatched to your customers.

Instead of renting out a warehouse and hiring staff and security guards to look after it, you could simply store your stock in a self-storage facility for a fraction of the cost.

Locating a Storage Facility

You can find a self-storage facility in business magazines, advertisements in newspapers or even through the Internet. You should pick a unit that is located near your home, so that you can visit it as frequently as you like.

It should also be near your preferred shipping carrier, to enable you to arrange deliveries from there directly to your customers. It should be guarded 24/7 by staff, in addition to a CCTV (closed circuit television) surveillance system. The self-storage facility should also have a system of maintaining proper records for all items going into and out of its facility.

Quality Considerations

The storage facility should be dry and well-protected from the elements of nature. This is especially true in the case of rain or snow; water is highly destructive, and if your unit leaks, your entire inventory could be destroyed, resulting in high financial losses. Before deciding on hiring the services of any self-storage facility, make a personal visit to the site and check out the quality.

Crosscheck with their existing clients as to the rates and quality of the services they offer. Once you've made your decision, be sure to take out a proper insurance policy on your products to protect against theft, fire or other damage.

If you have your own home business, utilizing the services of a storage facility can be much more convenient than simply storing your products at home. Just be sure to do your homework in advance.

If you are running a small business, then you probably already have your hands full. But diversifying your business makes perfect economic sense in these competitive times.

What is Diversification?

It is just not smart business to only sell one type of product or service. Today's business environment demands that you be more diverse.

Diversifying doesn't mean selling entirely different products and services. That wouldn't be smart, especially since most small business owners specialize in one particular area.

It does mean branching out and selling many related products and services. For example, if you sell skateboards, you could also sell helmets and knee pads. You could also go one better and partner with a design firm, so you could also sell customized skateboards with unique designs.

Branching Out

Diversifying your small business helps in building up your brand name - and that helps in increasing sales. You could diversify in fields other than your current one if you want your business to spread out, instead of being concentrated in a few niche products and services.

In the skateboard example above, you could partner with an action sport clothing company, stocking some products that would appeal to skateboarders. In this case, you would not produce the clothing, only market and sell the clothing line of another company, giving you a new stream of income.

Diversifying your small business is easier than you think, and doesn't require lots of work. It does take vision, time and effort — and the results will be well worth it.

It does not matter if you have a small business or a large one. Business secrets and personal data are important - and in the wrong hands, could cause huge losses in terms of time and money.

Read on to identify how a paper shredder can save your small business from big problems.

Protect Your Personal, Business and Financial Data

Paper shredders can covert unwanted documents to small shreds of unreadable paper. Any documents with credit card details or personal information should be put through a shredder so that they do not fall into unwanted hands after disposal.

In many cases, privacy laws dictate that businesses are responsible for any personal or financial information that they obtain. And if you don't dispose of it safely, and it is later misused as a result, you could be sued.

Your office documents should also be shredded so that they do not end up in the hands of your competitors or vengeful ex-employees.

Finding a Good Shredder

There are various shredder models available in any office supply store, or even in supermarkets.

You can buy a strip-cut paper shredder, which cuts paper into long strips; or you could purchase a cross-cut paper shredder, which is even more effective since it cuts the paper into small, horizontal and vertical pieces.

If you have a large office and produce lots of paper, you might consider buying a heavy-duty paper shredder. They can be quite expensive depending on capacity; but the money spent will be well worth it.

Most shredders are easy to maintain - and once you make it a habit of using them regularly, you can be assured that all confidential information will stay within the walls of your business.

For your small business to succeed, it is vital that you keep an eye on your expenses and try to lower them wherever possible. If you do this, when times are lean, you have a small cushion to sit on and catch your breath.

To keep your expenses in check - and keep your profit margin healthy - you first need to develop a sound, realistic budget.

Evaluating Your Budget

Once you have developed a budget, you need to stick to it. You should give priority to any critical expenses that you need to make in order for your small business to run smoothly.

For example, you can investigate different packages offered by utility or insurance companies; and if you can find a better deal, then you can either ask your existing service providers to match that deal, or you can inform them of your decision to switch providers.

When it comes to non-critical expenses, such as entertainment and office supplies, make sure you shop around for the best deals. Just a little bit of diligence in these areas can yield a lot of savings.

Small Expenditures Do Matter

Even small things count — such as changing your regular light bulbs to energy-saving bulbs and switching off lights that are not being used will result in a substantial amount of money saved at the end of the year. You may also want to consider getting motion detectors, which automatically switch off lights and air conditioning if movement isn't detected after a particular time.

Train your staff to think of new ways to save money and cut expenses. A collective effort from everyone involved in the business will result in a noticeable amount of savings.

The Dot Com bubble burst is truly behind us - and new figures are showing that businesses in countries all over the world are now making more online sales than ever before.

If you have a small business, you should cash in on this trend; if you don't, you'll be missing out on the opportunity to make your business highly profitable.

Get online

Nowadays, many customers surf the Internet before deciding to make their purchases. They like to check out the features and prices of various products and service while sitting comfortably in their home or office.

Having a website will ensure that your products and services are available to potential customers 24/7.

Design Considerations

If your small business has a limited budget, you can get ready-made templates for your website. These templates are widely available on the Internet at reasonable prices.

When you are designing your site, make it informative and interesting. Make sure all your products and services are highlighted properly. You should also include a feedback section, where buyers can post their questions or comments regarding your products and services.

This way, you'll find out what customers really think of your offerings; and you'll be able to adjust them as necessary.

You should also keep your website regularly updated with new products and their latest prices so that there are no disputes after an order has been placed.

Get With the Program

A website also indicates that you are keeping up with the times and that you're not stuck in the Dark Ages.

Most consumers today are more sophisticated than ever; they're also very busy, and are using the Internet during the day from work or school to do their banking, shopping and other tasks.

A well-designed website is like having additional sales offices at a fraction of the cost. And for your small business, it will reach more potential customers and increase your profits without you having to make a huge investment.

Running a successful small business is not only about selling products, but also developing relationships with your customers.

Just as you feel good after every successful sale, your customers need to feel good when dealing with you - and you should let them know that you appreciate their loyalty and their business.

What You Need To Do

You will first need to make a database of all the customers that you plan to send greeting cards to. Then you need to decide when you're going to send cards to each particular customer. While sending cards on holidays like Christmas and Easter may seem like a no-brainer, it isn't quite that simple.

Some customers of certain faiths might get offended if you send them greeting cards on certain occasions (like Easter, Christmas, Passover and so on); so indicate in your database the customers that this may apply to.

Personalization is Key

If possible, write personally in your greeting cards so that customers realize that you have not just sent them a card for the sake of it, but that you really mean to stay in touch.

You can write a specific line for customers that you know personally. You can also send out greeting cards to new customers so that you start a tradition as they turn into your ‘old' customers. Make sure that you have customers' names written or printed correctly on envelopes, and also make sure that your greeting card reaches your customers in time.

Avoid sending greetings by email or by fax — this is highly impersonal and smacks of cheap marketing.

Using greeting cards as a marketing tool doesn't cost a lot, but when done right, it is very effective.

A sales letter should be like a king's messenger announcing the arrival of a king. It should be clear, precise and should keep the reader's interest alive. Most of all, it needs to inspire prospects to take the action you want them to take.

Here are a few things to keep in mind to write sales letters that get RESULTS.

Content Matters

The introduction of your sales letter should be dynamic. It should also be personal, so that the reader feels that it has been specially addressed to him or her. To accomplish this, you might have to do some research to ensure that your sales letters reach their intended target - or else it could be a waste of time and money.

Keep the letter humble and clear. You should make sure that you succinctly highlight your products and services, explaining the advantages of your products over others in the market. Above all, make sure that it connects with your target audience and solves a problem they have. You can do this through examples, testimonials or short stories.

If you are targeting your letter to a specific person in an organization, then you should address your sales letter in their name. This will increase the chances of them reading it and responding positively.

If you are too busy or simply unable to write an effective sales letter, note down all the important points you would like to incorporate and hire a professional writer to do the work for you.

Keep your sales letter short, humble and simple. Start by grabbing your prospects' attention and keep it flowing by sticking to your marketing message to the end.

To run a successful small business, you should be good at selling your products and services. Only then will you be able to train your staff to sell effectively.

As a small business owner, you are going to be quite busy with running the business. This makes it even more important for you to quickly train your sales staff to sell to the best of their ability.

Motivate and Communicate

Customers are the lifeblood of any small business. Make sure your salespeople understand this and act accordingly. Many times, sales are lost not because of faulty products and services, but by staff not treating customers with due care and understanding.

You should have regular meetings with your sales staff so that you can get information on any deals in the pipeline and their current status. If it isn't possible to organize in-person meetings, use chat and email to get updates or hold short teleconferences.

Motivate your sales staff with awards or financial incentives, so that they stay focused and interested in the work at hand.

Training Techniques

Mystery shoppers are big these days, and all companies use them. If you can, send in dummy customers to evaluate the response and knowledge of your sales staff. That way, you can re-train them if the need arises - and you can also flush out any non-performers.

Train your staff to be honest in their dealings with customers and to report any errors they make or problems that they encounter during a sale.

If possible, call in industry experts on a regular basis so that the technical knowledge of your sales staff stays up to date.

Follow the above tips and keep an eye on the body language of your sales staff. That will give you an indication whether they are really into selling - or are just waiting for payday.

What Should Your Business Card Say?

Your business card is one of the smallest but potent methods of advertising. Instead of looking at your business card as just another piece of paper, you should look at it as a valuable marketing tool.

Just as you would take care to carefully craft a business brochure, your business card deserves the same amount of thought.

Details, Details…

Your business card should include all your details, such as your name and designation, business name, address, contact numbers and email address and your website address. If you have not yet developed a logo for your business, then get one designed and printed.

Logos play an important role in associating your business, and companies such as Nike and Adidas have benefited tremendously from developing well-known logos. If you have a company slogan, then you can print it at the top of your card. The background design and material of your business card should also be in tune with your business.

Design Matters

For example, if you sell wallpaper, then you can print any wallpaper design on the background, and your business card can be given a textured finish. Your business card should also mention or indicate the types of products or services that your small business has to offer. Keep your design innovative and original. Use different colors if required, but keep it tasteful and pleasing to the eye.

Don't put too much information on your card — this will only make the card look cluttered and will distract potential customers. Keep the back of the card blank so that customers can write down any additional information about you or your company.

Once you've designed a good business card, hand them out generously - and watch this small wonder go to work in your customers' pockets!

Each and every small business should have a code of ethics that needs to be implemented and integrated into its culture.

This will not only help your business grow in the long run, but also provide you with the mental satisfaction of doing ‘what is right'.

The Various Kinds of Ethics

In the field of business ethics, there are various sub-categories, such as accounting ethics, marketing ethics, leadership ethics, etc; but the basic fundamental principle of each teaches the same thing - that is, to be honest to yourself and to the person (or business) that you are dealing with.

As a small business owner, you can condense the above into one simple message - you need to be honest in your dealings with your customers, vendors, suppliers and employees.

Product Matters

Your products should be exactly what you have promised to your customers, and the prices should be fair to both of you. In the marketplace, you should not hit your competitors below the belt, but compete with them on a level playing field. This means that you shouldn't bad-mouth them, but strive to emphasize how your products and services are superior.

Following a strict code of business ethics will not only make you feel good, but also keep you out of possible legal trouble. When new employees join your company, you need to explain your code of ethics to them so that they stay within the limits that you have set.

For big organizations, ethics need to be implemented fully so that each department fulfils its obligations to itself and to society as a whole. Greed is usually what corrupts companies - and has led to the downfall of many organizations. You only have to look at what happened to corporate giants Enron and Daewoo for examples of this.

Keep these business ethics in mind while running your small business, and ensure that everybody around you does the same. Proper business ethics are required if you want a long and prosperous business life.