Poland Hotels Booking

A study done by the Association of Sales Executives revealed that 81% of all sales happens on or after the fifth contact. If you’re a small business owner and you’re only doing one or two follow-ups imagine all the business you’re losing.

Not following up with your prospects and customers is the same as filling up your bathtub without first putting the stopper in the drain!

But don’t be disheartened if you’re among the 90% of business owners I talk to that don’t do any follow up. The good news is you have ample room for profitable improvement.

Consistent follow-up creates a predictable and profitable stream of prospects and customers that buy. Small businesses that capture leads and follow-up with them enjoy higher conversion rates and a higher percentage of referrals than those that don’t.

After asking many small business owners the reason they don’t follow up I often hear responses such as, “I don’t have the sales staff to chase down all our leads”, or “We’re usually too busy to do a lot of follow up.” These responses automatically set off red flags that tell me that they lack a systematic process for following up.

The problem is not that they don’t have the capacity to follow up with prospects, it’s that they don’t have the systems in place to do it.
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What Does a Good Follow Up System Look Like?
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A good follow up marketing system should have three attributes.

It should be systematic, meaning that the follow up process is done the same way every time.

It should generate consistent, predictable results.

It should require minimal physical interaction to make it run, meaning it should be able to run on autopilot.

Sounds like a dream come true for most small business owners doesn’t it? Not only can it be done, it’s being done every day. The secret to “follow-up marketing” is to make it automatic so that you don’t have to lift a finger but the job still gets done.

With today’s technology it’s simpler than ever. Automating your follow-up processes gives you more time to work “on” your business rather than “in” your business.

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Three Types of Follow Ups
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There are three types of people you should be following up with, suspects (people in your target marketplace), prospects (people who have responded to your marketing but have not purchased, and customers (people who have purchased something from you.)

Each follow up message and offer will be different for each type of person. With suspects, you’ll want to entice them to call you or visit your store / office.

With prospects, you need to persuade them to make their first purchase. And with customers, you want to convince them to come back and do more business with you and give your referrals.

Obviously the hardest type of person to follow up with is a suspect because they haven’t shown any interest yet in a pool or hot tub and you usually don’t have their contact information.

But that’s not true with prospects and customers. You not only know who they are, but you should already have their contact information.

And if you follow up with your customers with consistency you’ll find that they will help you turn your suspects into prospects and prospects into customers for you through referrals.

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Your Follow Up Marketing Tools
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Your principal follow up marketing tools are the telephone, direct mail, and email. Many pool and hot tub business owners make the mistake of jumping right on the telephone to follow up; however, most prospects don’t want a pushy sales message right away and most prospects have been trained to consider anyone who calls up to be a pushy salesperson.

Instead, you should try to develop a relationship of trust with your prospect by quickly sending informational items such as special reports, audio CDs, or videos before you make a phone call.

Remember to always include a “next-step-offer” to accompany your educational materials. If the next step is to visit the store, then entice them with an appropriate offer or if the next step is to call you, entice your prospect to call you immediately.

People move through the buying process in baby steps, especially when considering buying high-ticket items such as hot tubs or pools. Your offer should always help them take the next step.

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Your Follow Up Sequence
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The power of your follow up will lie in your follow up sequence. Your follow up sequence is a series of communications with your prospect that are “linked” together, with each communication building on the previous message.

For instance, you might start your second letter by saying, “10 days ago I sent you a letter…” You might also consider stamping the message, “2nd Notice” on the envelope to let people know this is the second time you’ve contacted them.

Referencing the previous communication links what you’re saying with what you’ve already said and reminds your prospect that you care enough to continue the conversation.

Usually, when doing direct mail you should include three to five mailings spaced out about seven days apart. When using a sequential autoresponder you can have as many follow ups as you want because using email is basically free (that’s why you always want to get a prospects email address).

One of my clients has over 20 follow-ups in his autoresponder sequence that go out over a six month period.

Each sequence should follow a logical argument and you might consider bolstering the offer with each communication using a deadline as a motivator to act now.

As an example, in the third communication you could say, “I’m surprised you haven’t taken me up on my generous offer. What’s holding you back?” Or consider saying, “I’ve written you three times and you still haven’t taken me up on my offer so I’m going to pull out all the stops and make you an offer you simply can’t refuse.”

Notice how the language always links the previous communication and increases the boldness of the offer. It’s the same type of conversation you might have in a regular sales conversation.

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How to Put Your Follow Up Marketing System on Autopilot
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What I’m about to reveal to you is the key to developing a powerful follow up marketing system because it overcomes the number one reason most businesses don’t follow up.

You must automate your follow up system as much as possible so that there are few, if any, physical interactions from your employees with the system. It’s the required physical interactions (i.e. printing letters, sending emails, inputting leads etc.) where 99% of all the breakdowns happen in well-intentioned follow up marketing systems.

To automate your follow-ups you should consider using robotic marketing systems and outsourcing any manual interactions to a dedicated service.

For instance, to capture your leads you should consider using a toll-free automated recorded message system that captures your prospects contact information and automatically transcribes it and sends your leads to you in a spreadsheet every morning via email.

If you’re using a direct mail follow up system (and you should be), find a fulfillment house to do the mailings for you. To find a fulfillment house, simply go to your local printer and ask them to refer you to a fulfillment house in the area.

Now step back for a moment and see the power of what I’ve just revealed to you. Imagine running an ad, having your prospect call up and give their contact information via your recorded message system.

Then having your leads automatically sent to your fulfillment house via email, after which your prospect receives a five-sequence direct mail package containing your most persuasive marketing message — without you lifting one finger!

You can set up the exact same type of “hands-free” follow up marketing system using an email autoresponder system. Your prospect will not only be receiving your direct mail messages, but you can insert your email messages in between your mailings.

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What About Calling to Follow Up?
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You’ll notice that I didn’t say anything about calling your prospect. That’s because you want your prospect to have already received your educational marketing messages and have most of their questions answered before they call you. An educated prospect is your best prospect.

They already know why you’re different, what your value proposition is, and how you’re uniquely qualified to meet their needs. In essence, they’ve pre-qualified themselves before you ever have to spend time physically speaking to them.

This drastically reduces the sales cycle and increases your conversion rate because you have positioned your small business to be their only logical choice.

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Conclusion
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Follow-up marketing will boost your closing rate and dramatically increase your customer satisfaction. Following up with systematic processes allows you to leverage your salespeople’s time and enhance their productivity, which will result in more sales with less effort and isn’t that what you want? Start winning more sales today by implementing your own follow-up marketing system.

David Frey

Starting a business can be a rewarding experience, but it
can also be very time consuming and difficult. Many
resources are available to assist you, but information
overload can cause you from moving forward.

Keeping it simple is often the best way of maintaining the
momentum necessary to get your business started. There are
a series of steps to ensure success.

The first step toward getting your business going is
deciding on a name, for example “New York Landscaping.”
Any name that you do business under other than your own
given name is called a “fictitious” or “assumed” name, and
certain steps need to be taken in order for you to do
business under that fictitious or assumed name.

Depending on where you live, different government agencies
track which names are available. Look in your local phone
directory, under government agencies to find the number, or
contact your local Secretary of State.

Check to find out if the name you want has been taken. If
it is available, you may need to file a fictitious or
assumed name certificate with the state or local fictitious
name office. Some areas will also require you to publish

a notice in the local paper about your new assumed name.
Both state and federal law regulates the use of names and
“trademarks”. To avoid conflicts with other businesses
regionally or nationally using your business’s name, or the
names of your products, you may want to consider
registering your trademark on the federal or state level.
Contact an intellectual property attorney for trademark
search and registration services.

The second step is knowing that different areas have
differing licensing and permit requirements depending on
the type of business you are going into. Most businesses
that require a license will have a local licensing
authority that can guide you through the process.

Find out the licensing requirements on federal, state, and
possibly even local levels for your type of business and
get licensed. Failure to be properly licensed could result
in penalties such as fines, closure of your business, and
imprisonment in some cases.

The third step is getting insurance. When things are going
smoothly, insurance can seem an unduly burdensome expense
on a small business. But when things go wrong, whether or
not you have insurance can mean whether or not you and your
business survive a catastrophic event like a lawsuit, fire,
or natural disaster.

Liability insurance protects you against liability in the
event of injury to others or damage to other persons
property. Liability insurers most often have two duties:

1. The duty to defend you. Hire a lawyer, if you get sued
and

2. the duty to indemnify you. Pay for damage or injury to
others. Both duties are extremely important, but the
first is often overlooked by small businesses.

The cost of defending a lawsuit can easily run into the
tens of thousands, or even hundreds of thousands of dollars
even if you win. That’s why being careful is no substitute
for liability insurance.

Make sure you have adequate coverage for your vehicles and
those of your employees when used for business purposes.
You can be sued and held liable for injury or damage done
by your employees if it is within the course and scope of
their employment.

Property and theft insurance may be an important
consideration, as well as product liability or service
liability insurance. This is often called “errors and
omissions” coverage.

Interview a few local insurance brokers and find one that
seems knowledgeable and that you feel comfortable with.
Then ask the broker to do a risk assessment to determine
what coverages you might need and why. Remember, the
broker makes money by selling you insurance “products” so
be sure to question the types of coverage and amounts. If
your broker can’t explain why he or she is recommending the
types and amounts of coverage in the risk assessment, find
another broker.

The fourth step is recognizing and implimenting taxes. Sole
proprietors need to be conscious of local, state and
federal taxes and registration requirements relating to
their businesses.

Hiring an accountant or bookkeeper to help set up a simple
accounting system, or using a software package is a good
place to start.

Hiring a tax professional knowledgeable about local and
state taxes relating to your business, or contacting the
local tax authorities before you begin generating revenue
or expending money can help you stay organized and be ready
for tax time.

Additionally, the IRS offers assistance for entrepreneurs
starting a small business in various publications. You can
download IRS Publication 334, entitled “Tax Guide for Small
Business”, and Publication 583, entitled “Taxpayers
Starting a Small Business” from the IRS web site.
http://www.irs.gov

The fifth step is hiring employees (if needed). Though many
small business people start out running their own shop,
success will often bring the need for expansion. When an
employee is added, you must obtain an Employer
Identification Number from the IRS. You can download Form
SS-4 from the IRS web site.

In the United States, the Workers Compensation scheme does
a lot to protect employers from lawsuits by employees
injured on the job, while also providing employees with
easier compensation for workplace injuries. Be sure to
talk to your insurance broker about workers’ compensation
insurance.

Talk to your tax adviser, and make sure you register with
your state for payment of unemployment compensation taxes.

Download IRS Form W-4 from the IRS web site to take care of
employee withholdings. You should get copies of INS Form
I-9 to verify your employees’ eligibility for employment in
the United States.

Finally, issues regarding wrongful termination,
discrimination, workplace harassment, and other legal
issues have come to the forefront in today’s business
environment. Make sure you have an employment agreement
that spells out whether your employee is “at-will”. ex: can
be let go at any time without cause, or the terms of the
employee’s contract for employment.

Make sure you Draft employee guidelines or an employment
manual to make sure there are no misunderstandings about
what expectations, rules and responsibilities are in place.
Document any issues relating to your employees well and be
proactive about handling disputes. A little planning in the
beginning can save a lot of headaches and legal expense
later on.

In conclusion- hiring independent contractors is often a
good way to avoid the administrative burdens of hiring
employees, but be precautious. There are many pitfalls to
hiring an independent contractor who is for all intents and
purposes an employee. Talk to a lawyer and your tax advisor
about who is an employee versus a contractor.

About the author:
Abe Cherian

What makes up proper business meeting etiquette? How do you have
a meeting everyone can leave feeling good about? Meetings have
become an inevitable part of doing business for almost every
business owner. There are meetings with clients, meetings with
employees and meetings with peers or associates.

Almost everyone has suffered through meetings that take up your
valuable time and accomplish very little.

In fact, you may find that you yourself have now become numb to
that fact that your meetings aren’t as good as they could be.
And everywhere you look, it seems as if somebody has another
idea about how to fix your meetings, and make them more focused,
more productive, and – dare I say it? More fun!

So what can you do about it? Simple business meeting etiquette
can help you put on a quality meeting. Here are a few tips and
ideas for meeting planning –

1. Schedule your meetings at the best times -

2. Make sure your meetings all start on time - (and whenever
possible, avoid scheduling meetings when someone is up against a
deadline, or on a tight schedule).

3. Maintain a consistent focus on what topics will be covered –
(use an agenda).

4. Ensure there is a good level of rapport in the group –
(people can talk to each other and exchange ideas about what is
being discussed).

5. Arrive at a decision - (find new ways to avoid covering the
same ground, and ask for input to help create a plan of action.)

6. Use parliamentary procedures - (so that the correct methods
for amending or making a motion, following the agenda and taking
turns before speaking are being followed).

7. Choose the best location and environment for your meetings -
(for example, trying to fit 15 people into a closet-sized room
that doesn’t have windows or a proper ventilation system is poor
planning on your part.)

8. Do not schedule meetings to go over routine topics - (you can
send a memo or email for this.)

9. Talk to your group and make your meetings interactive -

10. Alwaysr ask for feedback from participants and allow them to
present ideas or get involved.

These ten simple business meeting etiquette tips that
guarantee a better meeting for everyone. Follow these and you
will see results on what you covered as well as a better
attendance at future meetings.

About the author:
Jeff Schuman

Appreciative Inquiry is the act of exploring and recognizing
the best in people and the world around us. The key to this
philosphy to to seek and discover how to improve and work towards
transformation.

Do you believe that despite the complaints and problems
encountered in your organization, there is nonetheless
significant good work and results occurring? Do you want to
find a way to fan the flames of these positives so that they
engulf your entire organization? Let’s admit it – sometimes our
problem-centered focus places too much attention on the negative.
Perhaps it’s time for a new approach. We can seek to discover
the excellence already present in our organizations – just as
Michelangelo is reported to have said that he saw an angel in the
rock and carved to set it free.

Having a positive vision is the underlying premise of
Appreciative Inquiry. Appreciative Inquiry is a philosophy but it
is also practical since it suggests a particular method of
changing social systems. In its most basic form, an appreciative
inquiry is about asking questions about the best of what is and
what has been. The information is like a discovery that lends
itself to dreaming about the positive future and finally,
designing the action plan to make it happen.

For example, a consultant or trainer is frequently in the
position of needing to understand the training needs of a client
company. Here are several potential questions that could be used
in appreciative interviews:

• Describe a time when you took part in professional development
that was especially energizing and enlivening. Who was involved?
What happened? Describe the event in detail.

• If you could imagine or transform the professional development
available in any way you wished, what one to three things would
you like to see happen to enhance its vitality and effectiveness?

• What do you imagine your own role might be in helping to make
this happen? Who could work with you?

The resulting qualitative data would be most efficiently analyzed
by computer software such as text retrievers, code and retrieve
programs and conceptual network builders. Such software programs
would help draw valid meaning from the data by reducing it, help
to identify patterns through comparative analysis and go beyond
the narrative text to display the data in matrices.

Consider asking one or more appreciative questions at your next
staff meeting. Set it up properly by giving employees a little
background and reasoning for the approach. Let them know what
you plan to do with the information and invite interested parties
to get involved in the resulting action plan. You might be
surprised by the synergy that results!

About the author:
Jeff Schuman

Q: I own a small decorating business and I’ll be the first to admit that I don’t know anything about taxes or retirement plans. I’d like to set up a 401(k) or an IRA or some other kind of retirement plan for me and my three employees. What are the various retirement plan options available for a small business owner and in your opinion, which would work best for me?
– Wanda S.

A: Wanda, I appreciate your confidence in my humble opinion, but asking me for financial advice is like asking Donald Trump for a recommendation on hair care products. I can tell you what works best for me and my business, but you’ll need to do your homework and seek professional advice to figure out what would work best for you. As a side note, I hear that Donald Trump is coming out with his own line of hair care product soon to be called “Big Head.” The formula is 1% mousse, 1% liquid nails, and 98% hot air. It should be a big seller among the high brow, comb-over crowd.

Here’s my best advice on retirement plans: find yourself a financial advisor (or financial planner) who is has experience working with small businesses and have him or her explain the options available and make a recommendation as to the type of plan best suited for you and your business. When I say “financial advisor” I’m not talking about your know-it-all brother-in-law or your accountant. I’m talking about a broker or financial planner (or other licensed professional) who has a proven track record of making his clients money and is an expert on IRAs, 401(k)s, mutual funds, etc.

The best way to find a good financial advisor is to ask for referrals from your most successful friends and associates. Find the richest, stingiest man in town and ask who his advisor is. Meet with several advisors, explain your situation, and ask for their recommendations. You should also make sure the advisor is a good fit for your personality and your business. If all goes well you will be doing business with this person for many years to come, so make sure the relationship feels comfortable to you and that you are confident in the advisor’s ability to manage your money.

Let me give you a quick overview of a few of the retirement plans available to small businesses so you at least have an idea of what’s out there before you start your search for a good financial advisor.

As a small business you basically have three types of retirement plans that you can take advantage of: the Self-Employed 401(k); the Simplified Employee Pension Plan or SEP IRA, and the Savings Incentive Match Plan for Employees or SIMPLE IRA. Each allows you to make pre-tax contributions to the plan, which lets you save for retirement and lessen your taxable income by the amount of the contribution. Your investments also grow tax-deferred until withdrawal.

A Self-Employed 401(k) is an option for self-employed individuals or business owners with no employees other than a spouse. The business can be a sole proprietorship, a partnership, or a corporation, including S corps. You can make salary deferrals to this type of plan of up to $14,000 for 2005.

Next is the Simplified Employee Pension Plan or SEP IRA. A SEP is an option if you earn a self-employed income from a full or part time business, even if you are covered by a retirement plan at your fulltime job. A SEP allows you to contribute up to 25% of earned income, up to $41,000 for 2004 and $42,000 for 2005.

My preferred type of retirement plan is the Savings Incentive Match Plan for Employees or SIMPLE IRA. The SIMPLE IRA was created to make it easier for small businesses with 100 or fewer employees to offer a tax-advantaged, company sponsored retirement plan.

With a SIMPLE IRA you and your eligible employees may contribute up to 3% of earned income (with a maximum contribution of $10,000) on a pre-tax basis to individual SIMPLE IRAs. You must deduct Social Security and Medicaid from your gross income, but you can then make your SIMPLE IRA contribution before other taxes are levied, effectively lowering your taxable income.

As the employer you must make “matching” or “non-elective” contributions into your employees’ SIMPLE IRA accounts. Matching contributions means that the business matches the elective deferral contributions made by employees. For example, if the employee opts to contribute 3% of his salary to the plan, the employer must match the 3% contribution.

At first you might cringe at matching your employees’ contributions, but as the business owner and an employee yourself this can be great news. As an employee of your own business you can contribute up to $10,000 to your SIMPLE IRA and the business can then match your contribution dollar-for-dollar, which means that you can put up to $20,000 in tax free dollars into the plan per year. The cost of the contributions is also deductible as a business expense.

The non-elective contribution option requires that the company contribute 2% of every employee’s earned income to the plan on the employee’s behalf regardless of whether or not the employee contributes to the plan himself. For 2005 the maximum contribution you would be required to make is $4,200.

Like a traditional IRA, you can withdraw money from a SIMPLE IRA at any time; however distributions within the first two years of participation are subject to higher early withdrawal penalties than traditional IRAs or Roth IRAs. Withdrawals within the first two years are subject to a 25% early withdrawal penalty. Withdrawals taken after the first two years are subject to a 10% early withdrawal penalty.

As the employer, the advantages of a SIMPLE IRA include: company contributions to the plan are tax deductible as a business expense; plan documents are simple and easy to administer; administration costs are low; and there is no government reporting required by the employer.

The advantages of a SIMPLE IRA for your employees include: contributions are immediately 100% vested; contributions and earnings are tax-deferred until withdrawal; employees can contribute 100% of earned income up to $10,000 for 2005; and employees can direct their own investments within the IRA.

This is a complex topic and I’ve just tipped the iceberg here, but hopefully this will give you enough information to get the investment ball rolling.

Here’s to your success!

About the author:
Tim

When you decide to start your own business, one of the most important decisions you will make is determining which business entity is right for your business. This decision will have a huge impact on how the business is operated, how taxes are paid, and your personal liability. Different types of entities have different advantages and disadvantages that must be taken into consideration, but you should start with an understanding of exactly what each type of business entity is.

The sole proprietorship is the choice for most business startups, but it isn’t necessarily the best choice. What makes this type of business structure attractive is that it is the easiest and fastest way to set up a business. All that is required for a sole proprietorship is a business license, which can be obtained in about an hour by visiting your local court house, paying the fee and filling out a short form.

A partnership is just like a sole proprietorship, except that there is more than one owner. Again, a business license will be required, and while not required, a legally binding partnership agreement is highly recommended. The agreement should include the rights and obligations of each partner, how profits and losses will be divided, and how the partnership will be dissolved should one of the partners want out. There are actually two types of partnerships – a general partnership, and a limited partnership. The main difference between the two is that in a limited partnership, the limited partner’s legal liability is limited to the amount of their investment, but this limited partner does not have an active role in running the business.

Corporations are more complicated to set up, but they also offer individuals the most protection. There is additional record keeping and administration work that must be done, but the business owner is not legally liable for the actions of the corporation. Should be business get into financial trouble, creditors cannot come after the individuals assets. There are two types of corporations – C corporations and S corporations. C corporations have tax disadvantages, such as double taxation, and most businesses that incorporate choose the S corporation structure, which allows income to pass directly through to the individual shareholders.

The limited liability company (LLC) is an alternative to corporations that many small business owners look to. Like a corporation, the owners of the business are protected from liability, but the business is taxed as a sole proprietorship or partnership. There is typically less paperwork and expense involved in setting up an LLC, as opposed to setting up a corporation. This is the most feasible choice for many small businesses.

For the most protection, a small business owner should opt to either incorporate the business, or form a limited liability company (LLC). Even though a sole proprietorship or partnership is easier to set up, and doesn’t cost as much to start, it just will not offer the business owner or owners an adequate amount of protection, and in the end, could cost the owners more money than the cost of setting up a corporation or LLC in the first place.

About the author:
Neil Clarkin

(NC)—Being a small business in Canada during the peak holiday shopping season can be challenging, especially for those that offer great gift ideas. Helping customers find the perfect gift and offering the best possible customer service is key, however, good customer service goes beyond assisting purchase selection - especially if your customers are in the U.S.

About the author:
News Canada

As a small business owner and manager, you are faced with a number of challenges. One of which is the hiring and managing of your employees. You are responsible for the productivity of your people in an ever changing business environment.

You post a job opening in the local paper on a job board, such as Monster.com, and you will be flooded with resumes. Resumes from people that claim that they have the knowledge, skills, and abilities that you require for that job. Your responsibility as a small business owner is to find that “diamond in the ruff.”

Here are some guidelines that I have used in conducting interviews of web designers and programmers from days owning a web design company.

A couple of key points to keep in mind:

NEVER ask a yes/no question. These types of questions need to be reserved for the application form.

ALWAYS ask open ended questions. When I interviewed to fill positions in my web design company, I treated the interview as an oral examination. The goal is to make the applicants think so that you can select the most qualified to be in your organization. The more grueling your selection process into your organization, the more your employees will have in common with one another, since they have all gone through that grueling examination. They will feel that they are the cream of the crop.

Let’s say that you were hiring for a Training Manager. One type of question that you could ask in the first interview is this:

“When does team or group learning make sense or not make sense?”

Here is another example of questions that you could ask applicants for a Recruiter position.

“Is a contingent job a good job? Will contingent work grow in the future?”

“What are some positive aspects of using the Internet as a recruiting source? What are some dangers?”

This is fundamental background knowledge of the field that the applicant is applying to work in. The goal with asking a question like this is to evaluate the applicants knowledge of their field. If they can’t answer the question, then it appears that they are lacking the knowledge of their field.

If applicants pass this examination, then they can move on to the next interview (i.e. examination). The purpose of this examination will be on their problem solving and decision making abilities. Every position in a company requires the employee to possess problem solving and decision making abilities.

Here is an example question you could ask an applicant applying for a retail position.

You are stocking shelves when a customer approaches you and asks about a certain product. You know that you don’t carry that particular product, but the customer insists that she has bought a similar product at another store. How would you handle this situation?

This is a type of situational question that assesses an applicants customer service skills. You know that the applicant has the knowledge, because they made it to this round. What you are assessing is whether the applicant can apply their knowledge to a particular situation to solve a customer service problem.

Treating the employment interview as an oral examination, can better assist you as a small business owner to decide which applicant has the knowledge, skills, and abilities to “contribute” to the success of your organization.

About the author:
Nick Roy

The success of a business endeavor involves a concerted efforts of financing, strategic planning, product design or service positioning, marketing, sales, and customer support. One of most important aspects of doing business is the people you deal with everyday - your employees, your partners and your competitors. Whether you are a small business owner or a human resource manager of a large corporation, you want to make sure that you hire responsible employees, you deal with trustful partners, and you may even want to learn more about your competitors.

It is a routine for corporations to perform background checks on their hiring prospects before they make a hiring decision. Background checks reveal more information than that you gain from resumes or face-to-face interviews. For some jobs, screening is required by federal or state law. Job applicants and current employees may be asked to submit to background checks. The recent emphasis on security has increased that likelihood.

Contractor fraud is at an all time high. Background checks help businesses to verify the identify and license of potential contractors. Contractor complaint search shields the lights on the reputations of the contractors you’re dealing with.

1. What can you get from a background check report?

A background check report aggregates public records from many sources created by government agencies. Besides verifying the identify of an individual, a report usually includes: vehicle registration, credit records, criminal records, education records, court records, medical records, military records, state licensing records, and drug test records.

2. Who Conducts Background Checks?

There are many companies that specialize in employment background checks or pre-employment screening. Those companies range from employment screening companies to online data brokers. While an employment screening company may offer detailed and customized background checks at a premium, you can get instant background check reports from an online background check website at a much lower price. Large corporations often contract out the background checks to an employee screening company. Small business are likely utilize an online data brokers to get fast reports.

Copyright @2005, Bruce Zhang

You have permission to publish this article electronically free of charge, as long as the bylines and links in the body of the article and the bylines are included

About the author:
Bruce Zhang

To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.

To vastly increase your chances of a successful funding application, you will need to present the following information:

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.

6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) ageing reports.

9. Principals financial statements. – Particularly required if some form of security is necessary.

If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they’ll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)

Good luck!

About the author:
Neil Best

Ralph Waldo Emerson said, “Build a better mousetrap, and the world will beat a path to your door.”

But when you’re starting your own business, there’s no guarantee that your “mousetrap” is going to survive, especially in today’s fast-paced business world.

Nearly half of all small businesses fail within the first two years of operation. The number one reason for business failure is inadequate planning. The second reason is under-capitalization.

So before you mortgage your house, or go into debt financing your business, you need to know if your business is going to do more than survive — you want to know if it’s good enough to thrive! Here are three things successful businesses that have stayed in business for five years or longer have in common:

1. The idea. A successful business start-up always starts with an idea. Something that makes your business stand out from all the rest. So how do you know if you’ve got a good idea?

You’ve probably got a good idea if you can answer yes to any of the following questions: Does your idea provide the solution to a significant problem for your target market? Does it satisfy a need or want? Does it create an opportunity?

The most successful businesses either fix problems (either real or perceived), or they increase your customer’s pleasure. They create a repeat need for a product or service among the target market.

2. The market. Your chances of survival are better if you can answer the following questions with a yes: Is there already a market for your product or service? (It’s much easier to fill a need than trying to create an entirely new market.) Can your target market afford to buy your products or services? (If they can’t afford it, it doesn’t matter how great it is, you won’t sell any!) Will your target market perceive your product or service as valuable? (If they want it, but don’t think it’s worth what you’re selling it for, you won’t make any sales.)

3. Your ability. Do you have the people, the resources and the knowledge to be able to consistently provide your products or services to your target market? Can you maintain a competitive advantage? Do you have enough manpower? Can you purchase the supplies and materials you need over the long run?

Your first step always is to create a solid business plan. Your business plan is more than an essay on “Why I deserve to get funding for my idea” however. Don’t spend all the time creating a business plan and then toss it in the bottom drawer of your desk. Your business plan should be a living, breathing roadmap that helps you make sure you’re on course and reaching the goals that you set for your business.

The second step to business survival is getting enough financing. Although the term “bootstrap entrepreneur” describes most small business owners, having enough capital to be able to keep your business afloat is vital to your survival.

When you’re creating your financial analysis of your business, make sure you’re being realistic about costs and expenditures, so that you give yourself the cushion you need to succeed.

If finding financing is a problem, either because you don’t have enough credit or equity, or there are other problems, take the time to look into the resources that are available in your community. There are a wide variety of grants and loans (including microloans) for entrepreneurs, if you know where to look.

Some great resources will be:
-The Small Business Administration
-Local Small Business Development Centers
-Women’s Organizations
-Local University or Community College
-Chamber of Commerce
-SCORE (The Association for Retired Executives)
-Nonprofit organizations that work on economic development in your area

Use other successful business models as a guide. When you’re getting started, look around. What businesses are successful? Why? What is it they’re doing that is working? What attributes do you admire, and why? You stand a better chance of succeeding if you’re modeling someone who is already successful.

Find a mentor. Most entrepreneurs have great skills and abilities, but no one does everything well. You probably already know what your strengths and weaknesses are. (If not, there are many resources and tools that can help you figure it out!) Rather than ignoring your weaknesses, find a mentor who can help you either build your skills in your weaker areas, or offer advice for getting what you need.

If you take the time to plan to succeed, you could be creating a legacy that will be enjoyed by future generations, and that other entrepreneurs will look at as a model for building their own businesses.

About the author:
Hans Hasselfors

There are definitely advantages, but make sure you make an informed decision!

There are a lot of advantages to outsourcing, however, there are also some disadvantages. Since this is such a huge issue, and such a large decision for you to make regarding your company, you should make sure that you take a good look at both sides of the issue before you make your decision. Make sure you know exactly what you stand to gain or lose by outsourcing your work.

First of all, the advantages of outsourcing for your business are that you’ll be able to get some of the less important jobs done for cheaper. For instance, if you’re finding that you do not have enough money in your budget to make necessary changes in order to keep your business afloat, then you should probably find a way to reduce the amount of money that you’re spending.

Another advantage of outsourcing is that there are actually other companies and places where you can get the work done better than you are already in your own company. Not only that, but if you have a company that requires a large number of different products or services in order to function, it might take less time for you to find a good outsourcer than it would take you to train new people.

There are a few disadvantages to outsourcing, however, and you should definitely take those into account as well. For one thing, if you outsource, it means that you’re going to have to work very closely with the company that you outsource your work to. Otherwise, you won’t get the finished work as soon as you need it. Having another company involved in your business might get tiresome after a while.

Another thing that you should consider is that depending on where you outsource to, it might hurt your business. This is generally only a big deal if who your customers are really matters, or if you’re a very small business. Some people shop at small businesses because they’re local - and if you’re a business like that, then outsourcing might be to your disadvantage.

In the end, however, the question of whether or not outsourcing is right for your business can only be answered by you.

Jakob Jelling

There are a myriad of things you must think about when opening any type of business whether it is a small business or a large corporation and one of those is how business law may affect you. Failure to pay attention to business and corporate law can land you in a world of trouble-both legal and financial. The good news is that you do not necessarily need to be a graduate of a fancy business law college or have a business law major to brush up on the basic ideas of small business law and corporate business law.
If you’ve paid attention to the headlines lately, you probably know that employment law for business is one of the number one areas where you can get into trouble if you aren’t up on all the employment laws and regulations. There are numerous laws that govern the employment of both regular employees and contract employees. Just for a broad overview, take a look at all the employment business laws you must meet:
· Civil Rights Act of 1966.
· The Equal Pay Act of 1963
· Americans with Disabilities Act
· The Immigration Reform and Control Act of 1986
· The Age Discrimination in Employment Act
· The Equal Employment Opportunity Act
· The Bankruptcy Act
· The Occupational Safety and Health Act
· FMLA, the Family Medical Leave Act
· Employee Polygraph Protection Act Labor Law
· FLSA, the Fair Labor Standards Act
And that’s not even counting the various state employment business laws that might apply to your business! If you aren’t sure of whether you are meeting all the regulations, it’s a good idea to get a checkup for your HR department.
Do you happen to work in the international arena? If you have anything at all to do with international business, then you should be aware of the many ways in which international business law can affect you, your business and your bottom line. At a minimum, you need to make sure that you meet general international business laws, specialized export laws, import laws and any laws of the foreign country in which your business operates.
And what about the business law scene at home? Were you aware that in addition to Federal business law and international business law, you are probably required to meet State business law regulations? Do you know whether you need a business permit or license? Failure to obtain one can result in the shutdown of your business and hefty fines and penalties. This is just one of the ways that state business law, such as California business law, can affect the health of your business if you aren’t careful to stay on top of things.
Finally, what about Internet and online business laws? Were you even aware that there was such a thing? The Internet has exploded so much in the last decade that the government has found it necessary to institute Internet compliance laws. If you operate a website of any kind and do not meet the compliance regulations, that site could be shut down and you could face criminal prosecution and hefty fines.
Of course, no one should ever attempt to navigate the complexities of any type of business law alone and the best course of action is to always seek the qualified professional advice of a business law firm, but hopefully these tips will help you to understand a little bit more about business law requirements.
Summary: When operating a business, regardless of whether it is a small business or a large corporation, you need to be on top of business law compliance. Even if you hire a business law firm, it’s still a good idea to understand what regulations you must meet.

About the author:
Matt Bacak

When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method.

Cash Method

If you are looking for simplicity, the cash method is probably your best accounting choice. Generally, income and deductions can be claimed when payment is actually received or made. This is best shown with an example.

I open a small business and have to order business cards and stationary. I receive the products and pay the invoice on November 18, 2005. Under the cash method, I can deduct the cost on my 2005 tax return.

Some businesses are restricted from using the cash method. C corporations may only use the cash method if they have less than $5 million in gross revenues for a particular year. Professional Service Corporations can use the cash method without limit, while farming corporations can due so if gross revenues are less than $25 million. Tax shelters are prohibited from using the cash method.

Accrual Method

The Accrual Method of accounting is a bit more complex. Under this method, the focus in on the date the expense is incurred, not paid. Although this may seem a small difference, it can play havoc with your books and piece of mind.

Using our previous example, assume I order business cards and stationary on the December 18, 2005. I receive the products on December 30th, but don’t pay the invoice until January 20, 2006. When can the expense be claimed? It depends on when economic performance occurred.

Generally, economic performance occurs when goods or services are provided to you. In the above example, economic performance would arguably occur when the business cards and stationary were delivered with the invoice on December 30th. Thus, I would be able to deduct the expense for the 2005 tax year.

In Closing

As you can see, the cash method is the easier of the two accounting methods. To determine the best method for your business, speak with a tax professional.

About the author:
Richard Chapo

For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.

Paying too much

This results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.

Letting your emotions rule

If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.

Paying for potential

You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest these things, so he does not deserve to be paid for them.

Not evaluating yourself

Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.

Not building a team of experts

At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should consider adding a business valuation professional. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, the competition, and the economic conditions.

Relying on bad information

You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners – it may cost you in the long run.

Changing too much, too fast

Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.

Buying a business because you like to do what the business does

One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats – including that of manager.

Not being interested in the business’s product or service

I made the mistake of thinking that because I am a CPA and smart that I could own and operate any business. I bought a business that sold high-performance auto parts to young men who drove jacked-up, four-wheel drive pickup trucks and went to the drag races every weekend. I did not do either and never understood why anyone would. I could not relate to my customers and went out of business in about a year.

Conclusion

Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare.

About the author:
David E. Coffman

Q: I own a small decorating business and I’ll be the first to admit that I don’t know anything about taxes or retirement plans. I’d like to set up a 401(k) or an IRA or some other kind of retirement plan for me and my three employees. What are the various retirement plan options available for a small business owner and in your opinion, which would work best for me?
– Wanda S.

A: Wanda, I appreciate your confidence in my humble opinion, but asking me for financial advice is like asking Donald Trump for a recommendation on hair care products. I can tell you what works best for me and my business, but you’ll need to do your homework and seek professional advice to figure out what would work best for you. As a side note, I hear that Donald Trump is coming out with his own line of hair care product soon to be called “Big Head.” The formula is 1ousse, 1iquid nails, and 98
ot air. It should be a big seller among the high brow, comb-over crowd.

Here’s my best advice on retirement plans: find yourself a financial advisor (or financial planner) who is has experience working with small businesses and have him or her explain the options available and make a recommendation as to the type of plan best suited for you and your business. When I say “financial advisor” I’m not talking about your know-it-all brother-in-law or your accountant. I’m talking about a broker or financial planner (or other licensed professional) who has a proven track record of making his clients money and is an expert on IRAs, 401(k)s, mutual funds, etc.

The best way to find a good financial advisor is to ask for referrals from your most successful friends and associates. Find the richest, stingiest man in town and ask who his advisor is. Meet with several advisors, explain your situation, and ask for their recommendations. You should also make sure the advisor is a good fit for your personality and your business. If all goes well you will be doing business with this person for many years to come, so make sure the relationship feels comfortable to you and that you are confident in the advisor’s ability to manage your money.

Let me give you a quick overview of a few of the retirement plans available to small businesses so you at least have an idea of what’s out there before you start your search for a good financial advisor.

As a small business you basically have three types of retirement plans that you can take advantage of: the Self-Employed 401(k); the Simplified Employee Pension Plan or SEP IRA, and the Savings Incentive Match Plan for Employees or SIMPLE IRA. Each allows you to make pre-tax contributions to the plan, which lets you save for retirement and lessen your taxable income by the amount of the contribution. Your investments also grow tax-deferred until withdrawal.

A Self-Employed 401(k) is an option for self-employed individuals or business owners with no employees other than a spouse. The business can be a sole proprietorship, a partnership, or a corporation, including S corps. You can make salary deferrals to this type of plan of up to $14,000 for 2005.

Next is the Simplified Employee Pension Plan or SEP IRA. A SEP is an option if you earn a self-employed income from a full or part time business, even if you are covered by a retirement plan at your fulltime job. A SEP allows you to contribute up to 25f earned income, up to $41,000 for 2004 and $42,000 for 2005.

My preferred type of retirement plan is the Savings Incentive Match Plan for Employees or SIMPLE IRA. The SIMPLE IRA was created to make it easier for small businesses with 100 or fewer employees to offer a tax-advantaged, company sponsored retirement plan.

With a SIMPLE IRA you and your eligible employees may contribute up to 3f earned income (with a maximum contribution of $10,000) on a pre-tax basis to individual SIMPLE IRAs. You must deduct Social Security and Medicaid from your gross income, but you can then make your SIMPLE IRA contribution before other taxes are levied, effectively lowering your taxable income.

As the employer you must make “matching” or “non-elective” contributions into your employees’ SIMPLE IRA accounts. Matching contributions means that the business matches the elective deferral contributions made by employees. For example, if the employee opts to contribute 3f his salary to the plan, the employer must match the 3ontribution.

At first you might cringe at matching your employees’ contributions, but as the business owner and an employee yourself this can be great news. As an employee of your own business you can contribute up to $10,000 to your SIMPLE IRA and the business can then match your contribution dollar-for-dollar, which means that you can put up to $20,000 in tax free dollars into the plan per year. The cost of the contributions is also deductible as a business expense.

The non-elective contribution option requires that the company contribute 2f every employee’s earned income to the plan on the employee’s behalf regardless of whether or not the employee contributes to the plan himself. For 2005 the maximum contribution you would be required to make is $4,200.

Like a traditional IRA, you can withdraw money from a SIMPLE IRA at any time; however distributions within the first two years of participation are subject to higher early withdrawal penalties than traditional IRAs or Roth IRAs. Withdrawals within the first two years are subject to a 25arly withdrawal penalty. Withdrawals taken after the first two years are subject to a 10arly withdrawal penalty.

As the employer, the advantages of a SIMPLE IRA include: company contributions to the plan are tax deductible as a business expense; plan documents are simple and easy to administer; administration costs are low; and there is no government reporting required by the employer.

The advantages of a SIMPLE IRA for your employees include: contributions are immediately 100ested; contributions and earnings are tax-deferred until withdrawal; employees can contribute 100f earned income up to $10,000 for 2005; and employees can direct their own investments within the IRA.

This is a complex topic and I’ve just tipped the iceberg here, but hopefully this will give you enough information to get the investment ball rolling.

Here’s to your success!

Tim Knox

About the author:
Tim

Why do so many people claim that money isn’t important? Why is there this notion that wanting money somehow makes you an ill adjusted bad human being? It’s such a strange thought pattern don’t you think?

Wanting more money in your life doesn’t mean you’re a bad person. It doesn’t mean you’re greedy either. It just means you want more out of life. You want more freedom. You want more security. You want more fun. Whatever it is, you just want more. Money is just simple a means to that end.

I hoe I don’t let the cat out of the bag, but that’s what this whole home business gig is anyway. Someone sells you on the idea that you can make tons of money working from home as an independent contractor or distributor for this company or that. And, it’s not that you ever buy into the promise that the home business is selling, but you take a leap of faith and give it a try.

We start small, maybe $20 for a book about real estate investing. I know my first brush with the thought that I could be independently wealthy working from home was when I came across an ad for the ebook Googlecash (if you don’t know what I’m talking about just do a quick google search). The idea seemed so easy and so low risk I figured why not give it a try.

That was the beginning, almost a year ago. Here I am now writing to you about my home business experiences. In that time, I’ve bought an apartment building and learned just about everything there is to learn about starting and running a business from home. And guess what? If you haven’t caught on to this yet, no matter what the ads tell you, no home business is as simple or as cheap as the ad would have you believe. But I digress.

Let me get to the point though. Let’s discuss the title of this little article. Most millionaires become millionaires by starting a small business, saving their revenue, and then investing. It really is that simple. Let me say that again, all you have to do to become a millionaire is start a small business, save, and invest.

So, what do millionaire look like? Well, most are in their sixties and living the same type house that you and I live in. They look like us. They dress like us. They are us. The only difference is they have a whole lot more money in the bank.

Here’s a fact that I hope will hit home. There are twice as many millionaire small business owners than there are millionaire doctors or lawyers combined. So, if you own a home based business or you’re thinking about checking out some legitimate home based business opportunities then your on the right track. Just stick with it and don’t give up!

Remember most millionaires are get to be millionaires by being just like you and me, they’re home business entrepreneurs!

About the author:
Daegan Smith

To succeed in today’s crowded marketplace where most of the products and advertising look exactly the same, a small business owner must stand out, shouting above the din with a message so clear and compelling that prospects stop and take notice. It’s a matter of business survival. Unfortunately, most entrepreneurs quickly retreat to the supposed security of sameness, soon to be lost in a sea of anonymity and a tidal wave of frustration. In effect, albeit at a subconscious level, they are saying , “I don’t want to be different”.

In back room offices and store fronts everywhere, salespeople are telling business owners they should do this or that kind of ad because it worked so great for their competitor. The owners nod and sign on. It’s already proven to be a winner, right? WRONG! Change the name, background color and a font style and you’ve got sameness. Put those ads in the yellow pages, a coupon magazine or a TV commercial cluster and you’ve got advertising death. Want proof? Ask a small business owner how well their advertising is working. Don’t stand too close waiting for the answer.

To make your advertising work, follow the principle if your competition is doing it, don’t. Go where they aren’t and win the battle without a fight. Resist the urge to get a listing in the phone book because that’s where everyone else is. A coupon direct mailer that features 6 or 7 of your competitors is a poor choice too. Look for new opportunities in direct mail and email campaigns. Look at direct response ideas. In short, try to find the biggest number of clients you can find in one spot. Fish in a barrel, not the ocean.

When you’ve chosen different channels to attract your customers, make sure you overcome the “so-what” factor in your copywriting. An ad for a heating and air conditioning company that says it has certified technicians that will fix your problem quickly is a so-what line. No one is looking for uncertified slackers that will get around to the problem whenever. A moving company that mentions superior insurance coverage makes you think they’ll probably break something. Be creative and write copy that will compel prospects to take action.

Consumers are bombarded by thousands of ad messages every day. There is so much overload they tune everything out. To get their attention, look within your business and find all that you do differently and decide which of those elements your customers most want. Decide how to word it best. and where to position it. Decide you really do want to be different. You have to. Your business depends on it.

About the author:
Brian Grinonneau

Do you ever wonder if you will really succeed with your
small business? You may have a number of special traits, but
how well developed are they? There are qualities of endeavor
and achievement that are common to successful business
owners. Ask yourself these questions to see if you have what
it takes.

1. How will the business affect your family? The first few
years of business start­up can be hard on family life. The
strain of an unsupportive spouse may be hard to balance
against the demands of starting a business. There also may
be financial difficulties until the business becomes
profitable, which could take months or years. You may have
to adjust to a lower standard of living or put family assets
at risk.

2. How will you support your family while building up your
business? This question must be worked out according to
each persons’ individual circumstances. Many people start
out on a part-time basis. Then when their incomes reach a
certain level they will switch over to full time. Granted,
if you take this “safer and surer” approach, it may take you
longer to reach the goals you set for your new business, but
you will save yourself (and those who depend on you
financially) a lot of anxiety. Ultimately, like the turtle
in the race who moved ahead slowly yet steadily, you will
have a greater chance of reaching the finish line.

3. How well do you get along with different personalities?
Business owners need to develop working relationships with a
variety of people including: customers; vendors, staff;
bankers; and professionals such as lawyers, accountants and
consultants. Can you deal with a demanding client, an
unreliable vendor or cranky staff person in the best
interest of your business?

4. How good are you at making decisions? Small business
owners are constantly required to make decisions under
pressure.

5. Do you have the physical and emotional stamina to run a
business? Business ownership can be challenging and
exciting. But it is also a lot of work. Can you face 12­hour
work days for six or seven days a week?

6. How well do you plan and organize? Research indicates
that many business failures could have been avoided through
better planning. Good organization of: financials;
inventory; schedules; production; can help avoid pitfalls.

7. Do you have the drive to maintain your motivation?
Running a business can wear you down. Some business owners
feel burned out by having to carry all the responsibility on
their shoulders. Strong motivation can help to survive
slowdowns, as well as periods of burnout.

8. Do you have the discipline to do what has to be done?
When working for someone else, it becomes routine to rise
early, be well-groomed and get to the office on time.
However, a significant number of people starting up a small
business at home all too often find themselves at 10:00 in
the morning in their bathrobes, drinking a second or third
cup of coffee.

Make no mistake, starting a successful small business is
hard work. BUT, it is also highly rewarding! Attack the
challenge head-on and success will be yours.

About the author:
Michael Brassil

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