Archive for April, 2008

Social Media Marketing for Small Business Entrepreneurs

Wednesday, April 30th, 2008
small business management
Lynn Jebbia asked:


I was thinking the other day why I have enjoyed consulting with small business owners for so many years. Talk about reality shows. What is more real than talking to the person who created, owns and operates a business? They have made their dream a reality. It’s a whole different conversation and level of engagement from talking to a marketing or business development manager working for a small or mid-size company.  I don’t mean to imply that the marketing or business development manager knows less about the company’s business than the owner. It’s about the level of passion for the business. Passion or entrepreneurial zeal, as we know, doesn’t always translate into being able to run a company successfully but I love to hear their story.

 

I enjoy the initial phase of a search engine optimization or pay per click management campaign for any new client. We call this the discovery phase where we gather quantitative and qualitative information about a business to lay the groundwork for the project. The more we know about what they do, how they do it, who they are trying to reach and what their goals are the better we can develop and implement a successful online marketing strategy for them.

 

One big difference I notice almost immediately when talking to an entrepreneur is the desire to talk about their business. You never have to worry about keeping the conversation going that’s for sure. Entrepreneurs love to talk about their business. It’s their passion. That’s why they are doing it. Many businesses, if not most, are built based on the personality of the owner and more often than naught these owners have an outgoing, engaging personality. That is why social media marketing can be so powerful for small business owners.

 

Social media marketing is not just about creating profiles on facebook, myspace, linkedin and other social media networks to try to create buzz and links to your web site. It’s about being actively engaged in the networks. Let people get to know you. Be real. Tell them about your business, why you do it and how you do it. Not from a sales and marketing stand point so it sounds like every other Tom, **** and Harry selling the same thing but from your personal stand point – your personality – let it shine through. Just a warning here, if you are a real drone with a negative view point on the world this might not work. :>) Find people with the same interests as yours and participate in their discussions. It has to be a two way network for it to work best.

 

Are you thinking how in the heck am I supposed to find enough time to do this plus run my business? This is a valid point but if done correctly this can reap big benefits for your business. Millions and millions of people are participating in social media networks every day. Instead of actively participating in 4 or 5 determine which one best fits your desired demographic and focus predominantly on that one. Also, you might really enjoy it. Just talk about your favorite topic – your business.

 



Wanda

From Small Business To Big Business: Costco Wholesale

Tuesday, April 29th, 2008
small business management
Cash Miller asked:


If you own a small business there’s a good chance you are already shopping at a Costco store near you. Based on sales volume Costco has become the largest wholesale membership chain in the world. So you might just have a store around the corner from you. Of course this wasn’t always so. Now to say that Costco was ever really a small business wouldn’t exactly be true. But how did the Costco we know today come about?

Well the history of Costco can actually be traced back to one man. He’s known as the pioneer of the “warehouse store” retail concept. His name is Sol Price and he started the original warehouse store known as FedMart back in 1954. Eventually he would wind up selling this chain which is how we come to PriceClub. Sol’s next effort came in 1976. That is the year he started PriceClub along with his son Robert Price. Together they would build PriceClub into the largest warehouse store operation in the country.

They started the business on the outskirts of San Diego, California. Initially they had just one store that was 100,000 square feet. Sol had managed to raise a little over 2 million dollars to start the business. During that very first year they managed about 16 million dollars in sales but they lost $750,000. It almost ruined them. Then one day Sol asked a customer what they were doing wrong? That’s when he found out that they needed to open membership up to government employees. From there the business took off.

They catered primarily to small businesses and government employees. Knowing that they were less likely to bounce a check. They refused for many years to accept credit cards so that they could keep costs down. Credit card fees for retailers can really add up. They also kept their selection to a minimum but made it cheap to buy in bulk. They would typically only charge about 10% above wholesale cost. They made their profits through sheer volume. And they kept their overhead low.

So what does all this information about PriceClub have to do with Costco? Well Costco was started in 1983 by a former PriceClub employee named James D. Sinegal who had been a PriceClub executive vice president and who had worked with Sol Price at FedMart. James in fact was along with Sam’s Club run by Wal-Mart PriceClub’s main source of competition. But by 1992 Sam’s Club was overtaking them both. So it was decided that PriceClub and Costco would merge into one company. Robert Price became chairman of the board and James Sinegal became CEO.

The new company was named PriceCostco Inc. This was an arrangement that was never going to work. Within a year the writing was on the wall so the company was once again split up. Only this time the company which would soon after be renamed Costco Wholesale Inc. managed to retain most of the store locations. Robert Price took other assets with him and formed Price Enterprises Inc.

Ultimately James D. Sinegal who had helped to found Costco would end up back in charge and to this day he still is. Along with Jeffrey Brotman another founder and chairman of the board. The company does over $60 billion a year in sales and has over 130,000 employees. It’s only real rival is Sam’s Club but Costco is the leader in its industry.

We mentioned Sol Price because without him Costco probably would not exist. He had an idea that turned out to be revolutionary. He essentially created a whole new way of selling to the public. He took a huge risk in doing so and almost lost it all. But he succeeded against the odds and instead of leaving a company as his legacy he left a whole industry. He is a man that had the drive to succeed and did. Do you have that kind of drive in you?



Darrell

Starting a Business - 10 Reasons Why Small Businesses Fail to Thrive

Sunday, April 27th, 2008
small business management
Bonita L Richter asked:


Kathy, a skilled massage therapist, called me to discuss what she needed to know to start her own massage therapy clinic. She had been in the industry for over ten years, and was very skilled at working with her clients.

She worked for another clinic and felt she was ready to start a business of her own. However, like many want-to-be entrepreneurs, she possessed the technical skillsmassage therapybut possessed little business management experience, and no self-employment experience.

For many want-to-be entrepreneurs, discovering why businesses fail is a smart research project. It helps to uncover personal weaknesses, as well as begin to build up inherent strengths before investing in becoming self-employed.

It also helps them better understand the dynamics of the industry they will be competing. For example, if competition is intense because of a large number of massage therapists in a geographic area, we can expect that there will be less market share per clinic, downward price pressure, and lower profit potential; this makes for difficult going, especially in the start-up phase of the business.

Following are 10 reasons why small businesses fail to thrive. If you have an existing business, it might help to determine why your business is not growing.

1. Mistaking a business for a hobby. Just because you love something does not mean you can successfully convert it into a business. Too often we feel others share our passion, and we bank starting a new business on it. Research your business idea and make sure it is viable.

2. Poor planning. Yes, you must have a business plan. It can be a 3-page plan for the simplest of businesses or a 40+-page plan for a more complex business opportunity. The point is you are prepared to focus on your business’ goals and vision, and you have a good idea of what you need to do to put your plan into action. By going through a business planning exercise, you also may have unearthed what problems may arise, and how you are going to handle them, if they do. In addition, financially can you launch the business? It takes a lot of time to build a business; 60% of business start-ups fail within six months after opening. Lack of cash flow and undercapitalization is the culprit.

3. Entrepreneurial excitement. Entrepreneurs often get excited about new ideas, but are unable to determine if they have a “true opportunity”. Part of an effective business strategy (here is the business plan, again) is determining which markets you will and will not serve, as well as what products you will or will not offer. Before deciding to undertake a new business activity ask yourself, “Do I have the time and skill to implement this?”

4. Risking everything on one endeavor. Too often, small business owners will have just one product, one service, or one big client. However, what if this one thing disappears? Diversification will allow you to ride the flow of ebbs and tides in business.

5. Poor record keeping and financial controls. You must review your revenue and expense records each month, and understand what they mean! Accounting is the language of business. If you do not know how to speak it, get help from someone who does.

6. Poor cash management. A good rule of thumb is that you can live for one to two years without income when getting started because new businesses are usually slow to get off the ground. If you have created a business plan with a realistic budget, you will already have determined what I have just written!

If your plan shows you earning a high income in the first six months, it may be a good idea to go back and review your budgets.

7. Poor time management. Putting off tasks you do not enjoy will sink your business fast! We get into a business because we love massage therapy. However, have we thought about all the other things that go along with running a business, like bookkeeping, banking, sales, and marketing activities, talking with accountants, attorneys, dealing with customer problems, collecting receivables, and slow cash flow? Getting help with administrative tasks that eat up your time is a sure-fire way to spend time doing what you do bestdeveloping new ideas and revenue for your business.

8. Ineffective marketing. Learn the basics of marketing and track the success or failure of each technique you use. Dump ones that are not working for you in three months time.

9. Ineffective sales techniques. Once you have generated interest in a client, how are you going to convert them into a sale? Understand the basics of selling; take a class, read a book; get some professional help.

10. Entrepreneurial burnout. Owning your own business requires a huge investment of time, money, energy, and emotion. Are you ready to ride the rollercoaster of the highs and lows associated with each of these items? I can guarantee you, it will happen! Motivation and creativity can suffer in the most challenging times, and a pessimistic attitude may prevail.

Be sure to schedule time for yourself. Take time off from your business. It will help you manage the ups and downs of entrepreneurship, and give you fresh perspectives.

As Kathy and I ended our counseling session, she made a list of areas where she needed to grow, and created a task plan. With planning and an objective look at both your personal and your business’ strengths and weaknesses, you can be successful.

© 2006, 2008. Bonita Richter and Profit Strategies. All rights reserved.



Rhonda

Business and Finance Graduate Looking For A Job?

Tuesday, April 8th, 2008
small business management
DavidMikey asked:


I have had a difficult time trying to break into the Finance arena. I have a Bachelor’s degree in Business Management and Finance from Binghamton University (Top NY State School). I graduated in December 2004 (3.0 GPA).
I have managed my personal and my family’s portfolios since I was 14. I have invested in Stocks/Stock Options/Mutual Funds, etc. I love researching and watching the stock market moved, and have learned a great deal about the market and the economy.

Also since I was 16, I have owned and operated my own small computer repair business. I have taught people how to use software, as well as build cutomized computers and fix any hardware or software problem. Through my own business I have learned communication skills (written and oral), and also how to interact with customers and people. i am very responsible, detail oriented, analytical, and I know how to manage my time.

I will add in the next writing. I am out of room.

Geraldine

Small Business Bookkeeping is a Good Way to Maintain Records

Tuesday, April 1st, 2008
small business management
Alvis Brazma asked:


Running a business is not a child’s play. Moreover, managing small business bookkeeping is again a Herculean task. We all are very well aware of the fact that managing and maintaining financial records consume lots of time and personnel resources. Hence, there is one solution that can solve a problem of bookkeeping for small businesses. What is bookkeeping and how does it help in saving time and money? The answer to your query is that bookkeeping is a process that involves maintaining of records of the various transactions that have taken place throughout the year.

The functions of small business bookkeeping includes looking through the total revenue, profit, loss and expenses, dates of the transactions and various other minute financial details incurred by the company. This brings us to the conclusion that bookkeeping is one of the most vital aspects of a business irrespective of it size. In fact, small business bookkeeping needs to be maintained more accurately because once they know their financial status very well they can think of expanding themselves. Small business bookkeeping provides many advantages of maintaining financial records. It helps the owner or a manager to know the accurate financial status of the company business, small business book keeping also helps these small businesses to know their accurate financial position that further assists them to understand the profit and loss that the business is coming up with. It additionally helps these businesses to be financially and legally precise.

Small business bookkeeping consists of the details, such as the daily transactions, turnover, loss, if any and other such details as these details can help small businesses to get loans. Maintaining small business bookkeeping is also a huge task like maintaining a bookkeeping for any big business. Therefore, it is always very important to get professionals who are thorough with their work even if the work is being done for small business book keeping. So, hurry and call a small business bookkeeping executive to get your task done in no time. Hiring professionals to do bookkeeping helps the businesses to understand their financial position as it further helps it to grow and also keeps a good track of the bookkeeping of the business.

Small business bookkeeping should be done on a regular basis as it helps to maintain the financial records regularly. The executive provided by the small business bookkeeping will maintain the daily transactions as it helps to keep a track of the smallest of the financial expenses or gains. If there is a hindrance in the regularity then it might become a major issue resulting in losing the track of the small business bookkeeping causing loss to the company. It can be done either manually or with the help of computers. The basic purpose of the accountant or bookkeeping service is to maintain an accurate record for the company. This is usually done by maintaining a monthly spreadsheet of the expenses incurred daily and another to show the sales, purchase, gross, and net profit. Small business bookkeeping is of great help to a business and this has been proved repeatedly and it is indeed, the best way to keep out of unwanted troubles.



Jacqueline