bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

When to Say No to New Business

When you are new to your business, you could have a tough time getting new and continued business. In your desperation, you might also cater to clients that you would not normally do business with.

Here are some cases where you should say no to new business.

When Clients Don’t Respect You

There are clients that will be very rude to you - who may think that by giving you business, they own you or that you are obligated to them.

You should avoid this type of client at all costs. You have every right to expect that your clients give you the same respect that you give to them.

Clients Who Value Only Money

There are always customers who will be desperate to make sure that they get the lowest price possible at your expense. They will regularly deduct some amount from your payments for frivolous reasons, and threaten to go to your competition.

Drop customers like these like a hot brick. They will end up costing your more money in the long run.

The Time Bandits

There may be some clients who remain confused, even after you have spent hours trying to explain a particular product or service to them.

Such clients will only end up wasting your time, and in the end might go to your competitor to purchase the product. Spend only a limited time with people like these - you may have to ignore them if they are still confused.

Clients Who Expect Freebies

There are some clients who will expect to pay only once - and then expect all future services to be free.

They will not pay you for any extra effort that you make. Customers like this should tactfully be avoided, since it will only result in a waste of your time and effort.

Turning down new business may be hard; but in some cases it is necessary to ensure that your business is profitable.

How to Keep Your Office Equipment Running Smoothly

With the business world going high-tech, even small businesses need to have a certain degree of automation to speed up their daily work.

Computers, copy, and fax machines are among the more common machines that small businesses use. Here are some ways to ensure that your office equipments perform smoothly.

Installed in the Right Place by the Right People

It is very important to get office equipments installed by the right people authorized to do so. Trying to cut corners by letting inexperienced people install them could literally burn your fingers.

The equipment should also be installed in the right location, so that they are isolated from heat, dust and vibrations.

Use with Care

You should use the equipment with care, and instruct your employees to do the same. Banging on your computers or on the copier isn’t going to make them run any faster - but is surely going to damage them.

Keep an eye on your employees to make sure that they are not mistreating the equipment.

Preventive Maintenance Is Key

You should hire the right people to maintain all your office equipment. They should regularly come to service the machines and should also be available in case of an unexpected breakdown.

Your service provider should have the right mix of testing equipment with experienced staff to look after your office equipment.

It is not only important to procure the right quality equipment for your office, but also look after it properly. If you do this, you’ll save lots of time and money in the long run.

How to Turn Around a Floundering Business

Most new businesses flounder at some time or another. It is during these tough times that you need to gather your wits and dig deep to not only stop the downward slide, but also climb back up to the winner’s circle.

Below are some tips that will help you turn your floundering business around.

Identify the Disease

It is important to identify the problem that is plaguing your business in order to find a solution.

If it is higher prices that are driving clients away, then search for new vendors so that you can offer more competitive pricing. If it is lack of quality service, then you may need to retrain your staff to make improvements.

By ignoring your problems and wishing that they will go away, you will only be letting your business fall further into the hole.

Review All Expenses

Put an immediate stop to all your expenses and review the situation calmly.

Then, go ahead with only critical expenditures and defer all others until you recover financially.

Take Out a Temporary Loan

If you have identified the problem and are confident that you can turn the business around, then you can take out a temporary loan to help you ride out the crisis.

Remember that you will need to pay interest on that loan so take out the smallest amount possible.

Learn From the Turnaround

As you claw your way back into the red, remember what led to the problem in the first place. Change your business strategy so that you do not fall in the same trap again - and have mental red flags in place to warn you if you start sliding toward a similar situation in the future.

While it is tough to negotiate a successful turnaround of your business, true grit and tenacity will ensure that it gets back on track as soon as possible.

How to Child-Proof Your Home Office

While you may save a lot of time and money by working from your home office, it is also essential to ensure that your home office is safe for your children.

Children are naturally very curious - and given below are some tips to ensure that your children are safe and your home office functions well.

Lock Up All Items That Could End Up In Their Mouths

Small children tend to put everything in their mouths.

Make sure you lock up tiny things such as pins, paper clips, erasers etc. in your side cabinets or drawers so that they can’t get their hands on those items.

Make Sure That Your Desk Has Rounded Edges

Your office desk and any other furniture should have rounded edges. There should not be any sharp edges in your home office that could injure your children.

Seal All Electrical Outlets

You should use dummy plugs to seal all electrical outlets so that children can’t insert their fingers or pencils into them.

The plugs should fit tightly so that only an adult can remove them.

Keep Your Computer, Coffee Maker and Printer Out Of Reach

You should shift your office equipment to a high table or desk, so that children cannot reach them.

Make sure that the cables to these machines also run at a good height, so that children cannot pull at them.

Ensure That Your Children Play Away From the Door

If your home office door opens inwards, then make sure that your children stay away from the door. Anyone walking in might invariably injure your children if he or she suddenly opens the door.

Even if you have the joy of watching your children from your home office, a little extra care is required to make sure that they stay safe.

How to Make Participating in Tradeshows Pay Off

Tradeshows are a great way to get some much-need exposure for your small business.

Although some tradeshows can be expensive to participate in, the benefits will far outweigh the expense if you do your marketing properly.

Make an Impressive Brochure

At a tradeshow, having an informative brochure is very important. You should have a colorful brochure designed with your company history, product information and a list of achievements or milestones mentioned inside. You should staple your business card on the top.

You can also attach a list of testimonials of some of your clients with their contact details so that the prospective clients can cross-check them.

Give Out Promotional Gift Items

If you are attending a tradeshow, you have to have lots of promotional items on hand.

You can hand out coffee mugs, key rings or even pens during the tradeshow, so that they are used by your prospective clients on a regular basis.

You can even combine 2 or 3 items in a small bag so that at least 1 item remains in their line of sight at any given time.

Contact Your Prospective Clients

When you hand out your promotional items to prospective customers at the show, make sure you take down the contact details of those people. You can then start contacting them through phone, sales letters or through email.

You can also send them your company newsletter on a regular basis after the tradeshow is over.

Attending a tradeshow can be an expensive and tiring, yet highly rewarding affair. Make the most of it by following the tips above.

The Advantages of Starting a Small Business in Retirement

If you have been working in a company for a long time and are approaching retirement age, don’t worry you can still be involved in business and be productive.

If you have the will, there are many advantages that you have over others if you decide to start your own small business. Here are some of those advantages.

Experience

The biggest advantage you have is experience. You will be able to avoid falling into many of the traps that younger and less experienced businesspeople might find themselves in.

As a result, the time it takes for you to start and set up your business could be greatly reduced.

Respect

You will command more respect in your market due to your age and your experience. A younger person would require lots of time to command respect - but you can attain that respect from the first day you begin operations.

Management Skills

Your previous work experience has probably given you the knowledge you need to deal with employees and delegate work. You probably also know how to get the best out of them.

Your employees will be wary of trying to pull a fast one on you, as they might have done if you were young and inexperienced.

Flexible Work Hours

If you have health problems or you want to enjoy some of your retirement time, then you can be a bit flexible when it comes to the hours you actually work.

Choose a business which is suited for your age and agility.

Connections

Along with experience, you also have developed a network of strong connections that you can utilize to your advantage.

Get in touch with old colleagues, bosses and vendors. Use them as a ready-made customer base for your new small business.

Use the above points to your advantage - and get your new small business off to a flying start. By starting a business that you enjoy, you can spend the golden years of your life in a fun and profitable way.

How to Boost Morale by Arranging an Employee Picnic

Even if you are running a small business with very few employees, it is a good idea to arrange an employee picnic from time to time. It is a good way to release work-related stress and learn new things about your employees other than their work skills.

Here are some tips on how to arrange an employee picnic.

Find a Good Picnic Spot

You should locate a nice picnic spot not too far away from your offices. That way, your employees can enjoy more time having fun instead of spending more time traveling.

Arrange For Food and Drinks

You should arrange for food and drinks in advance after all, that’s what having a picnic is all about!

It is not a good idea to have liquor available during the picnic; you might see a side of your employees which you would not have imagined exists.

Coordinate Fun and Games

You should also bring along some fun games that your employees will enjoy. Including a game of softball or soccer is also a good idea.

This will lighten up the atmosphere and will ensure that all your employees participate.

Do Not Discuss Business

Keep your employee picnic free of any office talk. You can also invite the spouses and children of your employees, which will give the picnic a more casual feel.

Take a First Aid Kit

If the picnic spot is a bit out of the way, then you should take a first aid kit along. This will be very useful, especially if children will be in attendance.

Make It a Regular Affair to Encourage Bonding

Make your employee picnic a regular affair so that your employees will look forward to it. This will help strengthen the bond between your employees.

Use employee picnics as a way of appreciating your employees and just chilling out. Your relationships with your employees will improve tremendously - and will be reflected in your employees’ performances.

How to Use a Newsletter to Increase Your Business

A newsletter is a subtle way of ensuring that your small business’ name remains in the minds of your targeted audience.

Newsletters are a good way of providing valuable information to your target market, as well as promoting your business at the same time. Study some of the tips provided below to ensure that your newsletter hits its mark.

• Subject Matters. The information supplied in the newsletter should be relevant to your business, and also should be useful to your target audience.

  The content should be clearly written and should be easy to understand.

• Send It Regularly. You should send out regular newsletters so that you continually maintain your market presence.

  You should write new, informative articles; or you can outsource the writing to another company if you don’t have the time.

• Use Different Media. You can send out your newsletter through ordinary mail and also through email. This will enable you to reach out to a larger range of audiences.

  Services such as MailerMailer can help you send out newsletters through email - and in a fraction of the time that it would take you to send them out manually.

• Promote Your Business Subtly. You can place your advertisements in the center of your newsletter articles. This will ensure that your advertisements are read as customers read the article.

  Don’t be too aggressive in advertising; otherwise, the spirit of the newsletter will be lost and this will put off prospective clients.

• Study The Market. Before sending out your newsletter, make it a point to study the market so that you know what information your target audience wants and you fulfill that need.

Developing a good newsletter can work wonders for your small business. Take advantage of the tips above and watch your business grow.

5 Tips to Keep Your Small Business Safe from Fraud

When starting or running a small business, it is essential to keep an eye out for potential fraud, especially since you probably don’t have the resources to pay for the damage that could result.

Below are 5 tips that will help your small business stay safe.

1. Keep Your Check Books Locked. Do not empower any of your employees to sign checks. Keep your checkbooks and your bank statements under lock and key.

2. Do Not Hire Unknown Employees. Make it a point to hire new employees only after cross-checking their references. Get complete details of all your new employees including their photographs, addresses, and other personal information.

   Many small businesses go bust due to the inner cancer of dishonest employees. While watching your front end for dishonest clients, you also need to keep your back end covered.

3. Do A Thorough Check Before Offering Credit. Before setting credit terms with your clients, make sure their credit standing is acceptable otherwise, you can kiss your products (as well as your incoming payments!) goodbye.

4. Stay Away From Get-Rich Schemes. Many dishonest dealers target small businesses by offering them various unbelievable offers, since they know that entrepreneurs are often desperate to make it to the big leagues.

   Stay away from any offer that seems too good to be true because it probably is.

5. Communication And Alertness Is The Key. By keeping communication channels open, and by being alert with your employees, suppliers and clients, you will catch wind of potential fraud before it happens.

How to Increase Sales With an Effective Email Sales Letter

In addition to your regular sales letter, you should also start sending out sales letters through email.

The biggest advantage of email sales letters is that they are virtually free of cost. They also convey the message that your business is Internet savvy. Below are some helpful hints to send out response-inducing email sales letters to your prospective clients.

Use Colors and Fonts to Paint an Attractive Sales Letter

You should use the right combination of colors and different fonts to highlight the key aspects of your sales letter.

Concentrate on the content too, since the flow of the letter should be maintained and inspire your readers to take action (buy).

Use Photos of Your Products

You can also add different photos of your products. You can start by mentioning the history of your company along with the matching photos before moving on to current times and products.

This will create a bond with prospective clients and increase their trust in you.

Provide a Video Link

Video is a very effective marketing tool, and you should use it to sell your products.

You can provide a video link in the body of the sales letter, so that your prospective client will get feel for your business. You can even provide a virtual tour of your store, if your business has a physical location.

Realize That Your Letter Is Just an Introduction

You should realize that your email sales letter is just a method to open the virtual doors of your business to the reader. It might not generate sales immediately.

But your prospective clients may save that letter and use it to contact you when the need arises.

Offer Freebies to Readers Responding Through Your Email Sales Letter

You can offer a special discount or freebies to your readers responding through your email sales letter. This will provide you with feedback as to how many people have responded as a result of your email campaign.

Make note of the above hints when you design and dispatch your email sales letter on the virtual highway. You could soon see positive results when your letter hits its target.