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Writing a debt collection letter is one of the most important skills of any small business owner. Do you have what it takes to get the money you’ve earned?

I have a confession: I’m a business writer who’s let clients get away with not paying me–a huge sign of failure of my writing abilities. You see, I never learned one of the most important writing skills for any self-employed person or small business owner: how to write a debt collection letter.

Debt collection letters–an overview

“Debt collection letter” in the singular may be an oxymoron, since unfortunately, one is rarely enough. You should have a series of letters to send to deadbeat clients, each one becoming a little more insistent. Here are some ideas for a five-letter series.

1. Don’t make your first letter look like a collection letter at all. Make it a friendly note. You’re more likely to get money from someone who thinks of you as a partner than a dun.

2. If that first letter doesn’t get a response–and usually it won’t–send another the next week that’s more urgent and directly asks for the money. Express your concern that you have not been able to contact the client. Ask if he or she is all right, and if he or she is having any trouble paying.

3. The next week, if you still have not gotten a response, send a letter referring to the payment terms in the agreement you and the client originally made (you did have some kind of written agreement, even if it was just on the back of your invoice, right?). Mention the effect this nonpayment is having on your cash flow, and that your business’s cash flow is just as important as theirs.

4. Still no response by the next week? State plainly that you are asking for the money for the final time before referring it to collections. Include a copy of the entire agreement between you and the client.

5. If you still have not heard back from the client, and are confident that you do not simply have a problem with their contact information, call a collection agency—in fact, you may have wanted to have gotten a collection agency from step one (more on that below).

More Tips for Successful Debt Collections

Tip: Don’t wait to start asking for your money.

If it’s been a week since the payment deadline passed, it’s been a week too long. Send out that first “reminder” letter today. Don’t hesitate to send these letters as little as a week apart from each other. The longer your bill goes unpaid, the less likely it is you will ever see that money again.

Tip: If you’ve been sending email, try sending paper.

For whatever reason, there are people who take a paper letter more seriously. There’s also the real chance that your emails really are not getting through reliably, or are ending up at the bottom of an overflowing Inbox.

If you do send email, make sure it’s digitally signed. A digital signature proves that you sent the email to the specific recipient. In fact, you might want to make sure all your emails to clients and prospects are digitally signed, to have solid documentation of everything you said, and everything they owe.

Unlike with regular emails, the date, time, “to” and “from” fields can’t be forged, so the email has legal standing, even more than certified mail. While web-based email programs cannot send digitally signed email, there are third-party services that will let you send hundreds of digitally signed emails from a desktop email program for only a few dollars a month.

Tip: Follow up your debt collection letter with a telephone call.

As any collection agency will tell you, telephone calls are useful if your debtor has ignored the collection letters. But with caller ID, Caller Blocking and voice mail - if people don’t want to take your calls it is hard to reach them. This technique could be especially effective in the case of someone with whom you know will answer their own phone.

Of course, your writing skills won’t go to waste: you need to make sure you have scripted what you want to say. You should take the same attitude and touch on the same points as your letter. Whatever you do, don’t let yourself get sidetracked, and don’t be embarrassed. They’re the ones who are putting you out.

Don’t know your deadbeat’s telephone number? Try looking up the “Whois” record of the business’s website, which usually has the owner’s telephone number.

Does all this sound like too much work?

If you’d rather be writing proposals than collection letters, there are small business collection agencies that will take on debts for as little as $20 each. After all, your client had enough sense to go to you rather than doing your specialty themselves. Shouldn’t you have as much sense when it comes to your debt collection letters?

About the author:
Joel Walsh

You read about this in every newspaper in every town in the entire country: Some bookkeeper, trusted by the owner of a small business, embezzles thousands of dollars. If the theft doesn’t put owner out of business, it certainly causes a major headache.

The reason we hear of these cases so often is that, in a small business, there may only be the owner and a bookkeeper. The owner doesn’t like doing the books, doesn’t understand them, and relies on this one person to take care of things. The bookkeeper, who is usually having personal financial difficulties, takes a small amount of money intending to pay it back. No one seems to notice, so more is taken. Over a period of time, it starts to mount up to a lot of money.

This is where the concept of “internal control” comes in. Essentially, every business should have, at some level, an internal control system in place to protect against losses, both intentional and unintentional. This is because “internal control” systems will: 1) protect cash and other assets; 2) promote efficiency in processing transactions; and, 3) ensure reliability of financial records. An internal control system consists primarily of policies and procedures designed to provide reasonable assurance that these three objectives will be achieved. The size and complexity of the business will determine the extent of the internal control system.

Regardless of size, one of the most important aspects of an internal control system is the concept of separation of duties. Separating duties makes it more difficult for theft and errors to go undetected. It is highly unusual for two employees to “collude” in an effort to steal from the company.

I worked as an internal auditor for a newspaper chain for three years. My job was to walk in to the newspaper offices unannounced and go directly to the cash boxes, count them, and verify receipts. One of my most important audit steps was to make sure the internal control procedures were in place and working properly. Here are a few suggestions for internal control procedures regarding handling of cash:

- Allow only specific designated individuals to handle cash.

- Give responsibility for bookkeeping to an individual who does not handle cash.

- Use numbered receipts to document all payments.

- Make all bank deposits promptly.

- The person who prepares the bank reconciliation should be different than the one handling cash.

- If possible, the person who makes the bank deposit should be different than the one who handles the cash and the one who prepares the bank reconciliation.

- Make deposits intact with no amounts withdrawn to pay expenses.

- Keep cash and checkbook in a locked drawer or cash register.

- Since tills will never be 100orrect all the time, establish a tolerance level for overages and shortages to determine the point at which corrective measures will be triggered.

- Make all disbursements by check, except minimal amounts paid from petty cash.

- Make certain every payment is related to a paper document, such as a voucher, to ensure that a paper trail exists for all disbursements.

- Conduct random surprise counts of petty cash and cash drawers.

- Count inventory and other assets frequently and compare with company books.

An internal control system set up early as a preventative measure is more efficient than establishing a corrective system in reaction to a loss. If it so happens, that there is just you and the bookkeeper in your small business, you need to learn how to do some of the bookkeeping tasks so you can spot check the bookkeeper’s work. That, in itself, is an excellent preventative measure.

About the author:
John W. Day

We are all customers of one product or another. How is it we always seem to buy or shop from the same place? What is it that these businesses do to keep us coming back and buying from them? A large portion of the selection process that a customer goes through is done through advertising – attracting and reminding customers through promotions.

Without doubt, the most effective strategy for retaining a customer is to provide excellent customer service, but you need them to sample your product or service initially. Once you receive their custom, you will need to remind them that you are there, willing and waiting for their next purchase!

How do you do this? COMMUNICATION. There are some basic tools that a small business or large business can employ to improve their sales with their customer. These include:

* Sales letters
* Sales promotions
* Email newsletters
* Advertising
* Customer service
* Telemarketing

You will need to find out what the best avenue for communication is for your customer. If it is an online business, emails and sales letters might be the best option. If you have an off-line business, then maybe sales promotions inviting customers to a special VIP evening for a product release might be your best option.

In reality, it is often a combination of communication tools that generates the most sales form your customer. You are constantly saying “Remember me? We were of great service to you last time, and are waiting to be able to provide you the same service again”. Begin making effective change in your customer communications today.

About the author:
Matthew Tibble

A money saving service that is being used by many professionals today is the virtual office. With so many business professionals working from their homes or on the go, the virtual office has evolved into a popular alternative to leasing a permanent office. It provides a creative solution which benefits the small business owner tremendously.

What is a Virtual Office?

A virtual office gives small business owners a presence in the business world for a fraction of normal rental costs. It is an alternative to leasing an office space, which can be costly for a new business owner. Virtual office services may also provide a set of online tools to help manage the small business. Although virtual office services differ, below is a list of some of the most common features.

1. Physical Business Address

Clients are provided with their own physical mailing address where business mail and small packages can be received. Virtual offices are not typically used to receive heavy volumes of mail as in a mail order business, but normal business mail quantities only. Those who operate a business from their home can use the virtual office address instead of their home address, which provides a safe and professional way to receive mail. Mail to a virtual office can be forwarded to the client’s home address.

2. Local Phone Number

Virtual office services also include a local phone number where a business owner can receive calls and messages. Voice mail and forwarding are usually included so the client can check messages at any time. This works great for someone who works from home or does not wish to tie up a cell phone line if they are continuously on the go.

3. Fax Capabilities

Being able to receive faxes is important to any business. Faxes are used to conduct business, send reports, take orders and receive memos every day. Using the virtual office fax, the client receives faxes which can be forwarded directly to his/her email.

4. Part-time Office Access

Some virtual office services offer part-time access to a desk or work station with Internet capabilities, office equipment and more. This is available for those times when the client needs to organize a presentation before a conference or use the Internet or computer for business purposes.

5. Conference Room Access

Conference rooms are available for rent with some virtual office setups. The client can hold business meetings or give sales presentations without interruption.

6. Web Conference Room Access

Web conference rooms are available for virtual meetings. Rather than hold a physical meeting, the client can hold virtual business meetings or give virtual sales presentations. Virtual meetings have gained popularity in recent years because they save time and money while providing instant presentation opportunities. Some virtual office services offer this tool as an added service.

7. Online virtual tools

Online tools such as calendar, address book, webmail, document respository, to do’s, forums, digital fax and digital voice mail have become common among many large businesses. Some virtual office services offer these tools and others as an added service.

Who can Benefit by using a Virtual Office?

People of all trades find virtual offices useful. Executives, salespeople, accountants, marketing consultants and online business owners each benefit by using a virtual office for certain tasks. Those who work from home and wish to establish a business presence find that a virtual office meets this need. Corporations also use virtual offices as a means of testing a business location before opening a new branch.

When renting an office is not an option, a virtual office can be used by small business owners to meet the daily needs while saving time and money.

About the author:
Grace Corporate

How many times have your decided to set a goal for your business
and set it aside because the task seemed too huge or difficult
to begin? I have seen this happen over and over so I decided to
write and article on business goal setting.

When setting your business goals it is interesting to see that
the thought process is no different than personal goal setting.
You have to clearly define your goal and write it down. Here are
7 steps that will help your business achieve th goals you are
setting for it.

- Think about the goal you want to set for business

- Write the goal down as soon as you visualize it. Writing the
goal on paper for posting on a wall or desk where you may review
it daily is very important.

- As you develop and write your goal, make room for changes and
put it on a type paper that can be easily updated as needed.
This just means you will need to be ready to revise and change
the written procedures as you move forward with the
implementation of your goal. Change is inevitable a necessity of
life.

- Start taking the steps neccessary to implement your goal.

- Be sure to write down the date you want the goal to be
completed! Also write down the time and day of the week you will
start working toward the goal!

- Begin reflecting on how you are doing working towards you
business goal. You can always make adjustments as needed.

- Develop an attitude of I will do whatever it takes. Too many
business owners set goals and then give up do to laziness or
they just get to busy to follow thru.

Business goal setting is a long term process and you are going
to have to work at it to make it happen. It’s your business so
you determine the success and failure. Business goal setting is
one step that will help you fall into the success category.

About the author:
Jeff Schuman

Health Savings Accounts – HSA’s – The Who, What, Where, When and Why on HSA’s.

What is an HSA?

Health Savings Accounts - HSA’s are accounts owned by the individual that allow money to be deposited into a tax-deferred account to pay for current and future medical expenses. They are similar to an MSA-Medical Savings Account, which was the predecessor of the HSA. This money can be deposited by you and/or your employer. You can think of it as an IRA/Flex account combination. An HSA must be tied to a high-deductible health insurance plan (HDHP) which is designed to fit the requirements of an HSA. There are limitations on the amount that can be contributed each year.

Who will it benefit?

HSA’s can be beneficial to individuals, small businesses or any size business that is interested in pursuing a high deductible insurance and lowering their healthcare costs. This can be extremely beneficial if you only use your insurance for accidents or unexpected medical circumstances. It is also beneficial if you are looking for lower rates on your insurance premiums but would like to have an account available where you can accumulate funds to use for your medical expenses while meeting your deductible and co-insurance. It can also be used for expenses not covered by the insurance. There is no deadline on withdrawal of the funds and they can be withdrawn for other than medical expenses penalty free after an individual is eligible for Medicare.

When will they be available?

They are available now. They are hard to find. Most companies that I contacted such as Bank of America and ADP were not familiar with Health Savings Accounts or did not offer this as of yet. They may be offering these accounts in the future. Not all agents are interested in selling the product since the high-deductible insurance premiums do not provide for a high-profit margin. However, I did find several insurance companies that offer these insurance plans. Fortis Insurance was instrumental in getting the HSA legislation passed. Fortis invested a tremendous amount into the HSA program and feels that this product is the wave of the future. Also, World Insurance, IAC, and American Medical Security have designed high deductible plans. All these companies feel that HSA’s are going to be in great demand from the public. Blue Cross/Blue Shield is planning on having a plan available in January 2005. After doing some internet surfing I found an expert on HSA’s at http://www.americanhealthvalue.com/ that provided a wealth of information about HSA’s and even has links to insurance companies that offer the high-deductible medical insurance by state.

Why have an HSA?

Small Businesses - It allows a company to provide insurance without having to pay high premiums. The employer can also contribute to the account of the individual for the difference in the lower premium. There are certain limitations on employer contributions, but they are done completely tax free to the employee and tax deductible to the business.

Individuals - Contributions to the HSA are an above-the-line deduction on the 1040 with certain limitations. Individuals 55 and older can make “catch up” contributions - $500 in 2004. Deductions from the account for qualified medical expenses are tax free and include over-the-counter medications and apply to the person covered, their spouse and dependents even if the spouse or dependent are not covered by the insurance plan. HSA’s can be used to pay for COBRA continuation coverage, health plan coverage while on unemployment, qualified long-term care insurance and some expenses for individuals enrolled in Medicare. HSA’s provide a vehicle to allow savings for future medical expenses and while in the account are invested to allow the account to grow the investment earnings. HSA’s are owned by the individual and controlled by the individual allowing them to decide on contributions, withdrawals and investment options. HSA’s remain with the individual regardless of employment, age, where they live, marital status or future medical coverage. There are no “use it or loose it rules” as there are with FLEX accounts.

Where can I get an HSA account?

American Health Value - http://www.americanhealthvalue.com/ is one company which offers the administration of this account for a nominal fee. At this web site you can learn just about everything there is to learn about HSA’s, about the mechanics of setting up an account, how the account works, how to withdraw and contribute funds, what expenses are eligible and what types of options can be set up. You can click on Insurance Agents by State to find a local agent in your area that sells the high-deductible medical insurance plans that are designed to work with the HSA account. In New Mexico I contacted Judy Anderson, an independent insurance broker in Albuquerque. She has insurance plans that fit the HSA requirements. She can be reached at 1-800-627-2433 or jeander@aol.com for further information on New Mexico insurance plans with an HSA. She advised me on the rating of the insurance companies she would quote which were all “A” rated. It is important to find an insurance company for any insurance you buy that has a good rating since if they go out of business you will need to find another insurance company and if you have too many claims you may have difficulty finding one that will insure you. Happy Insuring!

Coming Soon - Retirement Planning for Small Businesses

About the author:
Dianne Goodman

The SIMPLE retirement account is awesome if you own your own business. Any family business applies such as a home based or “brick and mortar” real estate rental and investment business, car-wash, gas station, restaurant, etcetera, can sponsor the SIMPLE IRA. Like the SEP-IRA, the SIMPLE IRA is company-sponsored. As a small business owner, for 2003 for instance you could have matched each employee’s pay up to 3 percent or $8,000, whichever is less.
That adds up to a lot of money when it is a profitable business and family members are employees. SIMPLE IRA contributions are fully deductible when you put the money in the account but you will have to pay taxes on any profits you make on the stock when you retire. In addition to a SIMPLE IRA accounts, individuals and home based small businesses have an additional option to sock away money toward future retirement educational needs through educational IRAs.
Small businesses, which cannot afford to sponsor a 401(k) or 403(b), can also offer employees basic retirement plans established for the benefit of their employees. Sole proprietors also now also can open individual 401(k) plans. Examine the options and pick the one that maximizes your long-range savings goal. And don’t wait. Take advantage of compound earnings and start socking away cash now for tomorrow.

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Brown’s site at www.BonanzaBase.com or sign up for his investment tips at www.WalletDoctor.com

Starting a business can be overwhelming enough trying to get up and running but when you think about all the tax requirements, your cup may runneth over. Here is what you must know in order to start your own business on the right foot and avoid paying penalties and interest which can cost more than paying an accountant to do things right the first time.

WHAT FORM OF BUSINESS SHOULD YOU SET UP WHEN STARTING YOUR BUSINESS?

There are several different options including a sole proprietorship, partnership, corporation, S corporation or limited liability company. In general a sole proprietorship works fine if you are very small, not too profitable and aren’t concerned about legal liability issues. A partnership is like being married to the other partners. If you aren’t that cozy with them, you may want to set up another type of entity. Corporations are best suited for business owners who want personal legal protection and have profit available beyond what they will need for their personal use. See http://www.dgoodmancpa.com/smallbusinessretirementplan.htm for an example of what you can do with that available profit tax deferred until retirement. S Corporations are best when you are operating at a loss and want business owner legal protection. Limited liability companies will protect the business owner from personal legal liability and, if structured properly, can be a partnership, corporation or owner for federal income tax purposes.

DO YOU NEED AN EMPLOYER IDENTIFICATION NUMBER (EIN) WHEN YOU START YOUR OWN BUSINESS?

You need an employer identification number if you have employees, have a qualified retirement plan, operate as a corporation or a partnership, or need to file employment or excise tax returns. You do not need an employer identification number if you are a sole proprietor and don’t meet any of the requirements above.

WHAT METHOD CAN YOU USE TO ACCOUNT FOR YOUR INCOME AND EXPENSES WHEN YOU START YOUR SMALL BUSINESS?

The two most common methods are cash and accrual. The cash method in general allows you to report income and expenses in the tax year you receive it. The accrual method in general allows you to report income and expenses in the tax year you earn or incur it even if you haven’t received payment or paid it yet.

WHAT KINDS OF FEDERAL TAXES WILL YOU OWE WHEN STARTING A BUSINESS?

All businesses must file a return. The form used depends on what form of business you set up when starting your business. The federal income tax is a pay-as-you-go tax. In general you must pay the tax as you earn or receive income during the year to avoid penalties and interest if your tax liability for the year exceeds $1,000 including self employment tax for sole proprietors, partners and S corporation shareholders. Corporations should make estimated quarterly payments if they expect to owe $500 for the year. Estimated tax payments are due quarterly. Penalties and interest can be hefty so you should make sure you comply in order to avoid wasting money on IRS penalties.

WHAT TAXES ARE DUE IF YOU HAVE EMPLOYEES IN YOUR SMALL BUSINESS?

Your small business must pay social security and Medicare taxes, federal income tax withholding, federal unemployment tax along with your state and local income taxes. The associated tax returns for reporting these taxes are in general filed quarterly. Your business is entrusted to pay these taxes on behalf of your employees and not only do you have penalties and interest that you will pay for not filing them timely but can also be committing a crime due to the fiduciary responsibility. You need to be sure you know what you are doing here as the consequences could be costly.

WHAT RECORDS SHOULD YOU KEEP WHEN YOU START YOUR BUSINESS?

Except in a few cases, the law does not require any specific kinds of records. The most important thing to ask yourself is can you go back to all of the original receipts from the number on your return. If you were to be asked by an IRS agent to provide all the details of a certain number on your return, and you can not do that, you will be at his whim on whether he will allow that deduction. An efficient accounting system with a solid audit trail which has been reconciled is the safest way to be sure you have done this.

These are just some questions you may have regarding starting your new business. If you have more, e-mail me at dianne@dgoodmancpa.com and I will help you muddle through the tax and business issues you may have. After all, those of us that have our own business know it’s the only way to go but getting up and running can be a bit of a challenge.

This article was intended to provide general information about starting a business. It does not contain all the rules and exceptions that may apply to your situation. If you have further questions regarding starting a small business, I can be reached at www.dgoodmancpa.com.

Coming Soon - Year End Tax Planning and Preparation

CONTACT INFORMATION:

Dianne Goodman, CPA
Comprehensive Small Business Solutions, PC
505 323-2307
1 866-531-3035 toll free
http://www.dgoodmancpa.com

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About the author:
Dianne Goodman

Most of you would say, that this might not be the most important problem small businesses have to solve during their business operation. Well, that might be true, but on the other hand, if your business has an early-warning-system, than it could assist you in operating your business and keeps you focused on solving the bottlenecks you are actually facing.

But first of all, in case of Early-Warning-Systems it is necessary to define what a small business is. A small business is usually a business operated by 1 or a few people, but could also be a company with as much as 500 employees. This article concentrates on small businesses with 1 to 50 employees. As this is the definition of small business, than we have to define what an Early-Warning-System should look like.

While running a small business, the people involved usually have not the time dealing with Early-Warning-Systems a lot. Because of the lack of time, there has to be a lean solution, which takes care of the following things:

easy to use solution
not time consuming
showing recommendations for possible actions/measures on early warnings
giving priorities which bottlenecks have to be solved first
having a short reporting cycle
a reasonable price, every small business could afford.
Lets go to the list one by one.

Easy to use solution

What does that mean? On my opinion, easy usage is, when something is easy and fast to understand. Something I do not need to read a huge book with hundreds of pages or where I have to attend a training, which keeps you occupied by several hours or days, just to know the basic features.

Having a system with huge databases and many features and reporting alternatives, is not only time consuming, it is also annoying, because you ever feel you need to perform a lot more reports. And you always feel that you may missed something.

Furthermore a good Early-Warning-System solution should work with only few input. But that’s another point.

Not time consuming

When you have to input a lot of data that is one possible time consuming task. On the other hand, you do not know, if a huge database will make your Early-Warning-System better. So it is better to focus on a few important data, than having a huge database, which you probably never use.

When concentrating on important data, you are not able to use every data from your business operation directly. Some data have to be calculated to business ratios, which are a better basis for analysis. But this brings to mind to select the right business ratios. There are so many to find.

Well, there are a few which could be used for all kinds of businesses, such as
Customer Contacts
Complaints
Orders in Process
Customer Loyalty
Usage of capacity
Order Processing Time
to show just a few. Would be an analysis, which uses only 30 business ratios or business numbers a time consuming solution? I guess you say no. But, what would be if you have to fill in these numbers every day? Well, that’s not necessary. One time a week should be enough.

However, even if 30 or 60 values for business ratios per week does not sound much work, but there is a little more work to do upfront, before you could use these values for analysis. You have to find the values in your company, you have to calculate the business ratio values and so on. This I believe sounds to be a lot more work as you thought.

When you install the right procedure to get the necessary data for analysis, you may have an addition big one-time work. It’s all in the procedure you choose. Make it as easy as possible and it won’t be a time consuming task.

Recommend actions/measures

Early-Warnings are signs, which a system should generate, when a point is reached you said it should inform you that a situation is going to be worse. There are many systems out there providing early-warnings, but the question is always, on basis this warning has been calculated and to what will it lead you.

To understand an early warning signal it should be as easy to understand as a traffic light signal. Green says that everything is all right, yellow shows you that caution has to be taken and red should bring the alarm clock ringing at you.

Well, providing recommendations for actions/measures is not a very important feature, but if you are not familiar with business operations or just starting a business it is of help to get recommendations for actions/measures to keep your business running.

But even if you have lot of experience runninga business, it is sometimes very helpful to get new ideas on how to act. Actions/Measures could only be a recommendation here, because industry sectors are different, and it wouldn’t be possible to cover all types of businesses.

Showing priorities to solve bottlenecks

Remember the paragraph above about early warning signals, they could be used to find priorities to solve bottlenecks in business operation. First of all the warning signals must follow some rules. That means that the business ratios supplying the signal have to be in a consecutive timely manner to each other. For example, when you have 5 ratios depending on each other in a consecutive manner, than you have automatically a priority to follow when actions are needed.

In case your ratio number 3 has a yellow signal and number 4 a red signal, than you know that you first have to solve the problem ratio 4 is showing, because you got the red flag and it has influence to ratio 5, which was green. This small example shows how important it is to use the right business ratios and how important it is to concentrate on the traffic light systematic when taking actions.

Short Reporting Cycle

A short reporting cycle may be a month for some business operators, but when waiting for Early-Warning-System analysis for about 4 weeks, you are only able to take action on erroneous trends once per month. And in some cases this could be already to late.

Really short is a reporting cycle, which uses a week as its basic period. Why using reporting cycles of one week? Just because you can see erroneous trends earlier and being able to take actions, while others are still waiting their reports to come. On a weekly reporting cycle you could act at least 3 to 4 weeks earlier as on monthly reporting cycles.

I don’t think you are driving your car blind for more than a small part of a second. Just imagine what happens, when driving your car blind for a month, just like the usual reporting cycle for business reporting? You are right, just a few seconds after start driving you have the first accident. Even if you are an airline pilot and having an autopilot system, you steadily have to control the system, to be sure that you are heading in the right direction.

Reasonable Price

Reasonable is a price, which nearly all small businesses could afford. Even if the price is paid in instalments or as rent for the licence to use a system. An Early-Warning-System, as the lean version described here, doesn’t has to be very expensive.

However, the decision is yours, if you like to pay more or less on an Early-Warning-System, but you should carefully check the features and benefits a solution offers.

Conclusion

Early-Warning-Systems for small businesses is a very important and often overlooked issue, which could assist to establish a more focused business operation, but only when the Early-Warning-System shows actual bottlenecks and is able to provide priorities for actions/measures.

However, most small business owners or operators are not aware of the problems Early-Warning-Systems could bring them before there eyes. Furthermore, the possibility of finding new target markets, new solutions or ideas to improve existing products, is just a benefit an Early-Warning-Systems solution may offer as well.

If you think the described solution is not an Early-Warning-System, because an Early-Warning-System has to be something where you have to handle lots of data and documents, well, that might be another definition for it, but starting with a small solution is always better than doing nothing. There is no reason to use a big system to provide early-warnings, and for small businesses big systems don’t make sense at all.

About the author:
Stephan Szugat

Please consider this article for publication in your newsletter or on your website. Permission is granted to reprint for free with resource box and byline intact. Please send me a copy of your publication if you choose to include my article.

The Power of Small Business Branding Through Private Labeling

Your Label Says A Lot About Your Business
A brand is a powerful tool in your hands, a visual image that encapsulates a perceived value associated with your company, product or service by customers and potential customers. As competition intensifies, small business owners are realizing the power of branding through private label as part of an ingenious business strategy. Owning your brand is not only an alluring marketing and sales tool, it makes good small business sense. Wholesalers of private label products offer resellers and diverse others the opportunity to build recognition for their own company and product, as well as develop customer loyalty. With a lead on identity and a secure on loyalty, new and repeat sales are sure to follow, given that your product meets consumer expectations. The bottom line is: You will drive your revenues and increase profits through the use of private labels.

Once thought of as a value-added, low cost substitute for higher priced name brands, private label brands were referred to as store or generic brands; remember the no name brand! Interestingly, the private label perception is blossoming in today’s marketplace as the upscale alternative to national brands. As burnt cream evolved into French crčme brűlée, consumers now consider private label brands as an affordable extravagance. Associated with distinctive, premium quality products and services, private labels are now positioning as your own proprietary brand or personalized brand, and rightly so.

Private Label Brands Are Packed With Benefits

A private label packs numerous marketing and sales benefits into your product. The basics of any good marketing plan are simple: Increase your customer base, increase the frequency of repeat sales and increase the average expenditure, the question is… how? Designed to display and impress your image and developed around your target market, propriety label may be the answer.

Your own brand is what sets you apart from your competitors and builds brand loyalty. Differentiating your product as a unique brand also enables you to compete on non-price factors such as quality. A smart move for small business because typically, they cannot achieve sales volume levels to be a low price favorite.

Stocking name brand products does little to entice consumers into your brick and mortar or online store. National brands are widely distributed and can be purchased almost anywhere. A private label will bring customers to your place of business, as your brand is exclusive. An additional benefit is that of product awareness, every time a customer opens your private label product sitting on the counter top the customer is reminded where the product was purchased.

Small businesses do not have abundant resources to spend on large marketing and advertising campaigns like their national competitors. Your proprietary label, imprinted on an appealing package, is an excellent advertising item and channel. You gain exposure and get the word out about your business and product, requiring little effort outside your input in the label and package design. Using a private label is a cost effective method to market your small business.

Of course, customers will not rush back to your store and beat down the door for a label. Establishing the brand with a high quality product is essential for repeat sales. Generate trust in your brand by selecting a respected wholesaler who knows the product and the business well. To promote consumer purchasing the reseller must also perfect the private label to meet the desires and expectations of the target market.

Black Tea or Decadently Rich Chocolate Chai? You Decide

Let’s take a look at a fast growing, competitive segment of the beverage industry, tea, to see how the benefits of private label are put into practice. Once trailing far behind the specialty coffee market, tea is now surging in the popularity and so are the sellers. The trend is driven by consumer lifestyle shifts toward good health, luxury and pleasure. Specialty tea is forecasted to become a major portion of the tea industry. Demand is stimulated by the new products available as consumers seek extraordinary and exotic tea flavors.

It is essential reseller’s offer a quality product from a knowledgeable wholesaler supplier, as product choice can make or break a business. Working in partnership, the private label wholesaler and reseller will bring together knowledge, experience and creativity in the design of a captivating label and appealing package. With endless choices, from loose leaf to tins, the finally product is presented to exceed the reseller and final consumers expectations.

An up and coming leader in the national spa market, exhale spa promotes a whole body rejuvenating selection of services based upon the wisdom of traditional healing and movement therapies. To enhance the relaxing ambience of the spa, exhale serves their own signature tea blends, formulated and packaged by Lapis Teahouse, a provider of premium private label tea. Resellers turn to Lapis Teahouse (http://www.lapisteahouse.com) and other select wholesalers that offer both private label and custom blending services for a competitive advantage. Private label companies build trust in a brand by selecting and custom blending extraordinary teas for flavor, aroma, and quality. Exciting new products are designed to fit the customer’s unique needs and compliment their business image.
Private label producers serve a diverse customer base, and each benefit by selling a private label brand. From a nutrition center prescribing the health benefits of organic herbal tea, to an elegant teahouse serving a taste of luxury for tea connoisseurs, a brand can be developed to reflect and project your image. You don’t have to be a reseller to capitalize on the rewards of a unique identity. The private label extends into the service industry to enhance professional services and company ambience.

Small business branding through private labeling conclusively builds company and product recognition. Positioning your unique product through private label, aimed at your target market, results in an effective, low cost-effort marketing strategy. It is the solution to getting customers into your store and back again and again… If your company is competing in the beverage or any other industry by using other brands, consider the benefits of your own proprietary brand. No matter how you label it, small business branding through a private label wholesaler is powerful marketing!

About the author:
Jake Mayer

As fast as you can say business disaster, your business can go up in smoke. That’s what happened a while back to Castle Carpet One. Gone were thousands of dollars worth of equipment and carpet, plus two smaller businesses that were housed in the same building. Luckily the owners, Larry and Diane Cox, had plenty of business insurance to cover their physical losses. But they lost their most important business asset - customer records - because of failed back up systems. Rebuilding their customer base will be tough and the long-term revenue impact is hard to measure.

With disasters like hurricanes, tornados, fires, floods and terrorism, to name a few, it’s critical for small companies to have a disaster plan. And for companies with only one location, it’s even more important. One location companies have the potential to lose the entire business if disaster strikes. For a home-based business, it’s even worse. You could lose your home and your business in one swoop. Any small business owner can minimize the damage by simply having proactive strategies in place to deal with an emergency when it happens. What if:

- You arrive at your business to find it vandalized and all of your customer records missing?
- Your most critical employee becomes ill and requires an extended absence?
- Your computer hard drive (or network) crashes?
- You become the primary care giver for a sick family member?
- You become ill and can’t manage your customer commitments?
- Your business becomes inaccessible because of an emergency on your street?

What would you do? Would your business survive? What would you grab if you had to leave your business quickly? After the emergency, how would you communicate with your employees? Customers? How long would it take to get back to business as usual?

Without a disaster plan, you’ll have a harder time getting back to work. Most businesspeople think it will just take two or three days. That’s tough to do if you have no plan for action and little money to move forward. The reality, experts say, is more like several months and at least 25 percent of businesses that experience a disaster never reopen.

But most small business owners just don’t make time for planning. We think it’s “never going to happen to us.” It could. The time to formalize a game plan for an emergency is before it happens. Do it now.

About the author:
Denise O’Berry

Any given market in its entirety is simply too vast for any business but the largest of corporations to properly undertake. Therefore, the most lucrative strategy for smaller businesses is dividing the potential demand into different manageable market niches, from which you can offer specialized goods and services, for attracting a specific group of those prospective clients.

There are, without a doubt, some types of products or services for which you are particularly suited to providing. Have a good look at the market, and you will be certain to find some ideal opportunities.

So what does finding a niche really mean for your small business? Identifying your small business niche means that you are discovering a distinct corner in the market, for your business to provide to a certain specific customer interest - and then capitalizing on it. It means that you find that one special spot within the business world where you stand out the most.

Now that you know exactly what a niche is, there are certain things that you need to find out about yourself and your small business before you take a look at that ever-reaching industry you’re looking to tackle.

Ask yourself:

* What is my company good at/what am I good at? When you answer this question, have a good look at your skills, and those within your current business. Find the areas in which your strongest skills lie, and list them. You may be surprised at what you discover. Performing this type of inventory really brings out the strengths as well as the potential of your business.

* What do I enjoy doing? What are the things that you love to do the most both in a business scenario, or even when there is not a profit available. The best place to start looking, is at your hobbies. These are the things that you enjoy the most, and into which you’re likely willing to invest a fairly significant amount of money. Therefore, you can potentially translate this particular passion into profit. This will not only make your business a more enjoyable venture, but it will also provide you with additional stamina and focus, which is crucial in starting a new business, or redirecting the focus of an existing business.

* What is needed? Now that you know what you can do well, and what you like to do, it’s important to assess these things with regards to what customers are willing to buy.

To find out what is needed, you’ll want to look into your potential customers, you’ll need to examine what is already being purchased, and consider trends for the future. Sound daunting? Actually, it’s simpler than you think.

As you research a niche for your own operation, perform a market survey and contemplate its results in order to discover the areas which have already been adequately saturated by your competitors. Place all of the gathered information into a table or a graph in order to illustrate where openings may exist for your products or services. Concentrate on finding the proper arrangement of products, services, quality, and price, in order to be certain that competition is as indirect as possible.

Regrettably, there is no universally guaranteed strategy for making those comparisons, however, the more thorough your examinations of the marketplace, the more accurate, practical, and successful your factual information and your “gut” instincts will be. The reason for the lack of a cast iron formula for discovering where competition is the most thin is due to the vast range in the desired attributes within any industry, as well as a certain imaginative element which simply cannot be formalized. There needs to be a proper balance between competition, and actual client interest in your product or service.

As you brainstorm for fantastic small business niche ideas, keep in mind that the heart of any successful venture is providing a product or a service that will be purchased in quantity by others. To do this, you will need to satisfy the needs of your target market, and in return, your target market will keep your small business healthy, happy, and (best of all) profitable.

By designing a quality database (or having one designed for you by a professional in the industry), you will be better able to sift through all of the market information available, in order to make a qualified decision about particular market segments which may not otherwise be obvious.

For example, do clients within a certain geographic region, or government agency or department typically buy products combining high quality and high price, or does that area look for the more “economical” choice? Do the customers from the market niche that you are considering tend to utilize customer service opportunities on a more regular basis? When you have the answer to these questions, you will be able to custom-tailor your business to meet the needs of that niche, making your business the obvious choice.

But where does one find all of this spectacularly handy information? The Internet is a natural, and highly effective solution. The Internet has become possibly the most broad and valuable source of current information for today’s small business. If you were a corporation, it would be easy to simply hire a team to discover the proper niche in the market for your business, however, as a small business, certain financial limitations step into place. Therefore, the Internet provides you with a tool to somewhat level the playing field. You can take all the information gathered by corporations, large companies, small enterprises, and home businesses alike, and apply them to your own business in order to discover what the world has to offer you.

Information about almost any product or service available around the globe is simply a mouse-click away. Brainstorm, ponder, and research all of the questions that can be relevant to your market, and then use the Internet to narrow down all of the information

Remember, though, once you do target a new niche market, make certain that this niche doesn’t conflict with your overall business plan. Your niche has to be within the realm of possibilities for your company and your potential.

Finding your own little niche in the enormous marketplace is a fantastic way to maximize the success potential of your small business. Primarily because your largest direct competitor… is you!

About the author:
Robert Moment

Introduction:
Strategies are strategies. Dismiss for a moment from your mind what some people are saying about Bill Gates’s offensive practices he used to transform himself from a small business entrepreneur to a titan in the business world. There are yet honest-to-goodness strategies we can glean from his sleeves. We can study, learn from them and possibly apply them in our own home based business. Upon this premise that this article was written.

Strategy of Bill Gates - Have a Vision:
At the outset, I will lay down the results of my research on one secret strategy of Bill Gates. He used the same strategy to jump-start his small business to today’s business behemoth. Based on my research, the strategy of Bill Gates is grounded upon the following:

“Have a VISION of what you want to achieve
and hold on to that vision come wrath or
high water.”

His vision was:

“A Personal Computer on every desk.”

By the way, I didn’t want to use the grammatically correct expression “come hell or high water” - for personal reason - so excuse my grammatical preference. Anyway, let’s go back to our subject. When you have a vision, you can make the impossible possible.

Almost everybody is familiar about how once upon a time the small business entrepreneur Bill Gates secured mighty IBM’s contract to supply the latter’s operating system. When he was negotiating with the IBM people, he had no operating system as yet. He was able to buy a Disk Operating System or DOS for $50 thousand. In the end, he got the contract. Why?

Bill Gates was guided by his vision - that every desk all over the world should have a computer on it. This vision enabled him to provide IBM with a DOS operating system and have control over it including to whom he wanted it sold to.

Beginning Entrepreneur:
Before he became an entrepreneur, Bill Gates had nurtured the vision that software will one day rule the world. During high school he spent many late nights with friend Paul Allen tinkering with the school’s computer system.

He dropped out of college after completing his junior year at Harvard. Instead, he and his bosom friend Paul Allen set up a small business - a software company - in far away New Mexico. This move was in accordance with his vision.

His vision became clearer as he moved from a total newbie to one with a small business to keep. His vision was clothed in clearer terms, as he negotiated the DOS deal with IBM.

Better late than never:
Bill Gates’s company ultimately became the leader in the software arena. During the first half of the 1990’s - 1993 to be exact - he was among the last of the software titans to acknowledge the future significance of the Internet.

But once he did realize that indeed Internet was the wave of the future, he had the tenacity to reshape his vision. His vision retained its old flavor - that is, software dominance in commerce, industry and in every field. It was rehashed in his own words as follows:

“In the years ahead, the Internet will have
an even more profound effect on the way
we work, live and learn … this technology
will be one of the key cultural and economic
forces of the early 21st century.”

At this moment in time, Bill Gates is guided by the vision that the Internet is the wave of the present and the foreseeable future.

Lessons Learned:
You can learn from Bill Gates by having your own vision for your small business. Lay down this vision in your mind. Then put it into writing. Read your vision everyday while at work in your small corner of the house. Your vision could be as short-term as the following:

“To make my web site land within the top five of
Google when people search for the keywords
‘home based business,’” or

“$200,000 earning this year from Google
Adsense,”or

“To enrich the content of my web site using
the theme ’scrap book making.’”

Do not limit yourself to short-term vision. Aim for the long-term. A five to ten years period would suffice. Technology may change but your vision will essentially be the same. You may refine it if deemed necessary, like incorporating the effect of technological changes - as Bill Gates did.

Your Share of the Pie:
Everybody - from Bill Gates down to your netpreneur friend - has recognized the tremendous role of the Internet in business developments. Some of the more immediate pressing concerns you should consider at this stage concerning your home based business are the following:

- General preference for digital transactions by clients. For example, as a beginning Internet entrepreneur you should meet your clients’ demands who favor the use of online payment system.

At this juncture, I would like to refer you to my web site at InternetMarketingLearningCenter.com which offers free learning stuff on Internet marketing and home based business. One category being tackled in the web site is the online payment system. You may read online news and keep yourself abreast of the best software companion for your small business.

- Choose products that are preferred by people at this time when the Internet is dominating people’s lives. It has been determined that information products and web shopping are favored by most consumers. Information products include your very own ebooks and “how-to” manuals.

- Make it your aim that your products are cheap, very useful, and the best among the rest of competing products. This applies most especially to shopping products. For your own digital products, you have the advantage of pricing them according to your own estimation.

You as the author of your own digital product determines the price level. It is no wonder why gurus like Jay Abraham, Jim Daniels and the late Corey Rudl have become so wealthy from selling their own digital pieces.

As for these three, they will be among the titans that we will tackle in future issues of this series.

About the author:
Rick Tanzo

Blogging has become quite popular for small businesses as of late. I have noticed on PR Leads that there are several story requests for experts to talk about the benefits of blogging for small businesses. So, I decided I better do my homework and see what this is all about. It turns out that there are several benefits to blogging for small businesses. Here are the most important ones:

1. Blogging Software is Super Easy to Use: Simply write your thoughts, link to resources, and publish to your blog, all at the push of a few buttons. I use the software blogger.com. It took me 2 minutes to set up my account and 3 minutes to publish my first blog. Check out my blog at: http://uplevelstrategies.blogspot.com/

2. Build Relationships Online: Business blogs provide your small business with a chance to share your expertise and knowledge with a larger audience. You have the opportunity to share a piece of yourself with your community allowing them to get to know you better.

3. Higher Search Engine Rankings: Search engine marketing is hot. Business bloggers are achieving top search engine rankings because search engines rank based on link popularity and easy to index regular content among other factors. Learning the basic skills of search engine optimization and good content management are keys to better rankings for bloggers.

4. Easy Communication: The biggest benefit of Blogging or RSS (see definition below) for your web audience can prove to be a better solution for notification than websites themselves or email. As indicated by Bill Gates in a speech at the Microsoft CEO Summit 2004 in Redmond, Washington: “if you just put information on a Web site, then people don’t know to come visit that Web site, and it’s very painful to keep visiting somebody’s Web site and it never changes. It’s very typical that a lot of the Web sites you go to that are personal in nature just eventually go completely stale and you waste time looking at it… And so, getting away from the drawbacks of e-mail — that it’s too imposing — and yet the drawbacks of the Web site — that you don’t know if there’s something new and interesting there – this [blogs & RSS] is about solving that.”

Definitions:
RSS - RSS is an acronym for Rich Site Summary, an XML format for distributing news headlines on the Web, also known as syndication. First started by Netscape as part of the My Netscape site, it expanded through Dave Winer and Userland.

Blog - Weblog, web log or simply a blog, is a web application which contains periodic posts on a common webpage. These posts are often but not necessarily in reverse chronological order. Such a website would typically be accessible to any Internet user.

(c) Kelly O’Neil 2005

About the author:
Kelly K. O’Neil

Positioning is another one of those marketing jargon words that everybody throws around and is important to understand. It’s also important to understand how positioning specifically applies to your small business marketing.

Basically a marketing position describes your unique place in the market. The key word here is unique. What makes you different from your competitors? What features and benefits do you offer your target market that the other players don’t?

Here are a few things that may go into your positioning:

-Price Point - This doesn’t necessarily mean you have the lowest price. You may be the most expensive in town, and that’s OK if you convince your customers you’re worth it.

-Service - Almost every business claims they have great service. If you can provide exceptional service compared to your competitors, your customers will remember you. I’ll never forget calling a surly plumber to try to get him to my house for an emergency on a weekend. he acted like he didn’t want my business and then told me it was going to be $200 for him just to show up, no thanks. I called roto-router who gave me amazing service, a guarantee, and the whole bill was less than $200. I now use them for all my plumbing.

-Features and Benefits - Positioning is not just about what makes you different, it’s also about what you emphasize. Folgers announces to the world that it’s “mountain grown coffee” ( a feature). Guess what? All coffee is mountain grown. Folgers just claimed this feature first. What’s something that none of your competitors are talking about?

-Credibility - Legal Seafood’s clam chowder is served at every presidential inauguration. Many products get celebrity endorsements. Many companies tout how long they’ve been in business. All of these things build trust in the mind of the consumer. What trust-building factors do you have that the competition does not?

-Negative Features - Is there something you don’t have that annoys customers of your competitors? I’m not saying use negative advertising, but just mention the feature and tie it to a benefit. I’m annoyed when I have to pay for parking to go shopping at Mall. Instead of touting free parking, a mall that wants to speak to me might declare, “you’ll never have to pay for parking”. This drives home the pain of shopping with a competitor without going negative.

-Anything Else - Literally anything that differentiates you from your competitors can be part of your positioning strategy - your location, your hours of operation, the way your office smells. Small business owners need to think creatively here.

In a great article by John Jantsch he states that a positioning strategy must answer the question, “why should I buy from you?” This is brilliant in it’s simplicity; it cuts through all the strategic junk that complicates marketing. If you can’t answer this question, your customer is not going to do the work to figure out an answer on his own.

Technology, some people fear it, some resist it, and others embrace it. As a small business owner, it could be the best thing that ever happened to your company. With the technology available today, small businesses are increasingly leveling the playing field between themselves and big companies. With toll free virtual PBX (Private Branch Exchange) telephone systems, small businesses are combining today’s technology with traditional customer service to take their business to the next level.

It used to be that only Fortune 500 companies with thousands of employees and 10- story office buildings could afford and maintain a traditional PBX telephone system. Now, with toll free virtual PBX services, anyone with a telephone can reap the benefits of this powerful communications tool. A virtual PBX has all the advantages of a traditional PBX and more without the hassle, hardware, and expense.

A virtual PBX allows small businesses to:
• Project a professional, more established company image
• Have one unified number for office phone, cell phone, fax, and pager
• Make information available to their customers 24/7
• Automate order taking and pre-qualifying processes
• Have web-based, real time access to their system

Small and home-based businesses are using all of these features of their toll free virtual PBX systems to sound and operate like a Fortune 500 company everyday.

Project a Professional, More Established Company Image
Right or wrong, consumers assume a company with a toll free number is a more established and secure company. When a toll free number is attached to a virtual PBX with an automated attendant, that powerful image is perpetuated. An automated attendant will answer all incoming calls with the same professional and courteous message every time, day or night. Professional greetings can be recorded by the business owner themselves, or even by a voice talent, and customized for the needs of the business. It doesn’t matter if the business is operated out of a home office or the Oval Office. The caller hears a professional greeting each and every time they call.

Unified Voice and Messaging System
With a toll free virtual PBX system, small businesses only need one telephone number. This number can be an office phone, cell phone, fax, and pager all in one. Gone are the days of having to put 3 or 4 different numbers on business cards. Now the virtual PBX toll free number replaces them all. When a call comes in to the toll free number, it can be routed to any local number. It can even be programmed to route to different numbers at different times of the day or even different days of the week. A call never has to be missed again. That kind of flexibility is unheard of with a traditional toll free number or a hardwired PBX. If the call is not answered, or is sent to voicemail, the virtual PBX system can even send out a page to let the user know that there is a message waiting for them. The toll free number also acts as the fax number. When a fax is sent, the system recognizes it as a fax and can store it in the fax mailbox for later retrieval, forward the faxed document to a local fax machine, or even send the fax to an email address as an attachment. The unified messaging feature unchains small business owners from the home or small office and allows them the flexibility to get out and build their business while still being available to their customers.

Powerful Automation
No matter how efficient a small or home-based business is, they simply cannot be available to their customers all the time – unless they have a toll free virtual PBX system. If a caller has questions they want the answers now. If they don’t get those answers when they call, chances are they’ll look some place else. Making sure information is available, even when a live person isn’t, can be the difference between someone becoming a customer or moving on to the competition. A toll free virtual PBX allows the storage of an unlimited amount of information for callers to retrieve 24 hours a day, 7 days a week. Menus broken down into what kinds of information a caller might need, make it easy for them to navigate the system and get what they are looking for. Faxes can even be attached so the caller can request an automated fax back. For a business that needs to pre-qualify their callers, or would just like to get some information about them, can take advantage of question and answer voice mailboxes. A set of pre-recorded questions can be asked of the caller and the voice responses then saved in the system and emailed as a sound file. These automated processes not only save time, but they also make sure callers can get the information they need when no one is available.

Web Based System Access
A toll free virtual PBX is just that, virtual. What that means for a small business owner is that one, there is no hardware to maintain or software to buy, and two, that they can access their system from anywhere they can get online. Online system access is one of the most popular features of a virtual PBX system. Web-based system access allows users to check their voice and fax messages over the internet or have the messages delivered directly to an email address. Of course, messages can still be checked from any touch-tone phone, anywhere.

A small business owner has administrative access to check the call logs of all incoming calls to their toll free number and use the call capture feature to not only capture the phone number of the person calling, but also their name and address. It also allows a user to run reports based on different criteria chosen. For example, reports could be run to show when the busiest time of the week is for customer service or if the call volume increased after a specific ad campaign was released. The applications are endless.

With all these powerful features, and most times more, it’s amazing that toll free virtual PBX systems can be found at a reasonable price. Most systems offered are between $9.95 and $29.95 depending on the capabilities and size of the system. Many will offer a varying number of voice mail boxes, features, and minute plans. A good toll free virtual PBX service provider can also customize systems if needed.

Technology is ever changing in today’s fast paced world. Small business owners will either have to embrace it or risk being left behind.

About the author:
B. Cummings

Summary: Want to grow your business-to-business small business without chasing after new clients? Expand with new value-added services that complement your existing offering. Find out how.

If you have a business-to-business small business, some of your clients inevitably will go out of business, get bought out, undergo management shake-ups, or just get seduced by a new vendor. You have to grow your business just to stay in business. But how?

• Undertake costly and time-consuming marketing and networking projects to get new clients to make up for the inevitable attrition.

• Ask your existing clients to refer new clients. This is always a good idea, but it’s not the fastest or most reliable way to get new business. You could wait months to see results.

• Don’t get new clients at all. Instead, expand your offerings to your existing clients.

Choosing Your New B2B Small Business Offering: What to Look for

Expanding your B2B offering might sound like a bit of a headache and that is a possibility. You have to select your expanded offering carefully. Here’s what to look for:

Complements existing offering

In case you’re tempted to branch out too far, keep these factors in mind:

• Market. If your expanded offering complements your existing offering, your existing clients will provide a ready market.

• Credibility. “Jack-of-all-trades, master-of-none:” it’s a cliché, but people instinctively believe it. Which would you trust more: a shoemaker who also sells wristwatches or a shoemaker who also sells socks?

• Skills. You will inevitably need new skills for your new offering. This includes the softer skills of selling and servicing the offering. The fewer skills you have to acquire, the smoother your rollout will be.

Modest investment to start

The only guaranteed way of minimizing your risk is to minimize your investment. Remember: investment doesn’t just mean money, but also your time and energy. Choose an expanded offering that won’t be all-consuming.

Strong existing demand

Face it: your small business already has its hands full with its existing business. You can’t afford to break ground on something the world doesn’t know about yet. Look for an unfulfilled demand on the part of your existing client base.

Hypothetical Case Study: B2B Service Expansion

Lisa is a virtual assistant who has expanded from data entry to helping her clients organize their internal records. But offshore companies are taking away record-keeping clients just as they did with data entry. Getting new record-keeping clients would be an uphill battle against offshoring.

What does Lisa do?

1. Lisa gets into a few long telephone calls with her favorite clients. One client mentions his secretary is tired of handling payroll. Another says he is fed up with being put on hold with his current big-name payroll processing company.

2. Lisa researches payroll processing outsourcing. She finds it’s a business where offshore companies have not made great inroads. Domestic businesses have not glutted the market, either. Traditionally, the technology needed to run a payroll process business was so expensive that only a few large firms could compete. The new software that allows any small business to offer payroll processing services has only been on the market a short time. Meanwhile, the cost of startup is only the cost of the software, plus a portion of her sales. Best of all, the only training she needs is to read up on a few payroll manuals, and do a test run with one or two of her most supportive clients.

3. Lisa gets a few of her clients on the phone and asks them point-blank if they would be interested in outsourcing their payroll processing to her. They sound interested.

4. Lisa finds a reputable payroll processing software company founded by someone with extensive experience in the field. She calls the company up and confirms that they have not sold a franchise in her area yet.

5. Within six months, Lisa has taken over the payroll processing of about one-fifth of her existing clients. Though she has lost two large clients to offshore virtual assistant services, her business income has grown by fifteen percent, since she has gotten more work without having to invest in marketing.

Of course, Lisa’s success took hard work. But she was able to maximize her effort by choosing an offering she could expand her business into easily. Payroll processing is one example of a value-added service that many B2B small businesses can transition into smoothly. But whatever new offering you go with, just make sure to choose your new offering carefully.

About the author:
Joel Walsh

The importance of keeping up with changes in business computing and technology can be more important over time as your business grows. As and an IT professional far too often I have seen many small businesses get way too far behind in computing technology and wonder why they should pay for the upgrades. Usually I have to explain to them the hard way that the current computers system that are over 4 years old are not going to perform the requested task very well and are not supported by software. Usually do to combination of software changes and incompatibility with older software and hardware platforms that cause issues. I explain that it actually will cost them more money in the long run to try and maintain there existing computer equipment then buy a new replacement.

Most small businesses fail to recognize that keep computer equipment very long periods actually can cost them more money to maintain those systems then the price of a replacement. One cost is the amount if money you pay out for replacement parts when there is no warranty on the old device. If the computer, server or printer is made by a specific manufacture then there is a good chance that you will have to go back to them for certain parts which can be very costly. Another problem is that they actually don’t make replacement parts for broke unit, this is a worse case issue I have seen although sometimes you might find a vendor that makes similar parts and hopefully it fits properly and works properly but not always.

Another disadvantage is if your business is operating on older slower computer equipment that takes a long process customer request and this might open the door for your competition to take your clients away from you but offering better service. If your competition is reinvesting in there business computing and technology changes then most likely they will have the ability to complete products and request faster and at a cheaper rate. The advance technology will cost you money upfront but if the proper equipment is purchased and utilized in office it can add to your over all business.

Some of benefits can include lower power requirements for the devices, more storage capacity for computer files, improved CPU along with memory speeding up processes run on the computer, faster and higher quality documents from new printers. Less down time and less delays in completion of customer request. These are just a few of the benefits of keeping up with technology in your business.

I know that some of you are say that this is easier said then done and in some cases that is very true depending on your current business. But as a small business or home office you should plan for these events after all that is what large companies do and you should follow the same lead. Your business should have at least a basic IT business computing plan that has budget plan and cycling out of computer and office equipment. By having budget and plan in place it should not impact your business finance as much since you set planed ahead. The IT business computer plan should have some flexibility after all you don’t want to do a complete equipment change in the middle of a big job or shutdown your business at the wrong time. And if your business in booming and you don’t have them time then hiring a temp IT professional to help with computing change which might not be a bad idea.

Investing in the proper technology is the key to success it does not matter if you have established small business, home office or if you’re a new startup business. Remember that your business most likely will change over time along with the clients you are serving so your computing equipment should also.

In conclusion business computing when done right can truly add to your business by adding to productivity and efficiency of the day to day operations and can help you take on more clients and over all help you build your business.

Hopefully this article has been informative and helpful to you. If you’re looking for more Business computing information and solutions then be sure to check our website listed below.

About the author:
John Maier

The world of small business accounting software can be a minefield for any business owner. However choosing the right package is one of the most critical business decisions you will make.

Here are the seven things you must consider before making a purchase that will help you achieve your businesses goals.

1. Scalability

Businesses change over time so it’s critical that the small business accounting software you choose can change too. Some things that often change are the number of products and services offered and the number of employees. When you choose your package try and imaging the business in 5 years or 10 years time and how different it will be. Use this information to guide your purchase decision. It may well be better to pay a little more now for the software knowing that it can be easily
upgraded when needed with minimum disruption and cost to your business.

2. Support

It is important that any software has great support for when something goes wrong (and it always does). Most major companies offer support but you also need to think about support in your local area. It’s often much easier to have someone locally come in and do things you need done with your software than have someone trying to help you over the phone. Make some
enquiries with other businesses about the package they use and who helps them.

3. Accountant Interface

It’s most unlikely you will handle every aspect of your businesses accounting. Your accountant is an important factor in making the right decision. What software are they used to working with and what do they prefer? Can you easily supply them data and reports from your package without the need for any extra work (which you’ll have to pay for). Don’t be afraid to ask their opinion as they live and breathe this stuff.

4. Best Value For Money

Once you have selected the right package for your business you may as well get the best value. Shop around as the price can vary greatly and the product is exactly the same. Online merchants such as Amazon may offer better pricing because of the sheer volume of products they sell. However price is only one part of the equation so if their is great merchant locally with support or installation assistance this may be far more valuable.

5. Major Brands

There are two major players in the small business accounting software market. They are QuickBooks and Peachtree. Microsoft is expected to enter the market soon. I recommend choosing a major brand so that you can get regular updates and you know the company will be around as long as your business needs them.

6. Ease of Use

Ease of use is a personal thing but it is worth trying the software before you buy it if you can. Remember to get the person who will be the main user to test the software as well. Also consider how well the package can interact with other software you use. This is an advantage the Microsoft package may have when it’s available.

7. Features Needed

I touched on this earlier when talking about thinking ahead as to where you business will be in 5 or 10 years time. Most accounting software packages come in several different versions. If you don’t need certain features now and can’t see a need for them in the future then don’t buy them. The major differences are usually - number of users allowed, inventory management capability and number of reports available.

To sum up think ahead when planning your purchase of small business accounting software. You will make a much smarter business decision that will save you plenty of trouble and money in the future.

While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs).

An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.

In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.

Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.

Interestingly, U.S. taxpayers benefits from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.

In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.