SCORE's Top 5 Business Tips

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About Flyers

Many people use them, in fact. Nevertheless, they are a poor marketing vehicle. Especially at shows, where people grab a stack of promotional material and yours gets lost in the stack.

An attendee was witnessed asking a kitchen utensil rep for a flyer, and he remarked casually, "We don't have them, we only sell at the show." I was surprised to hear this, but I was even more surprised to see the woman walk over and start looking over the pans very closely! That was going to be her only opportunity to make the purchase. She had to change her intention and her interest was markedly peaked.

Once a prospective trade-show customer has left our immediate space, the chances of them signing on drops dramatically. The flyer is often an excuse to walk away and say "no" nicely.

It is recommended that you think twice about "flyering". It's much better to capture someone's name, and email, and address and tell them that your marketplace is always changing and that you'll keep them in the loop on the latest news.

The kitchen utensil rep wasn’t at the show to waste time an money handing out information hoping that someone would read his information. He was at the show to SELL HIS PRODUCT.

What Is Guerrilla Marketing Anyway?
The term "guerrilla marketing" was first used by Jay Conrad Levinson in his popular 1984 book, Guerrilla Marketing. In it, he describes this method of marketing as nontraditional, low-cost or no-cost ways of marketing, promoting, advertising, publicizing, etc. Some have called it unconventional marketing; some have called it extreme marketing; still others have even used the term stealth marketing. And all of these apply in the sense that the tactics are nontraditional and low- or no-cost.

Guerrilla marketing has a major profit orientation and emphasis. Since guerrilla marketers don’t have unlimited funds, they must employ smarter rather than harder ways to work. This is done through the full use of time, energy, information, knowledge and, most of all, imagination. The guerrilla marketer must use all of his or her contacts to network, find creative publicity stories, angles and outlets, and generate ideas that'll get noticed and talked about.

This type of marketing is primarily designed for small businesses and independent professionals. Other organizations such as nonprofits have also found it beneficial. It's great for small business because it's important for a guerrilla marketer to be flexible and agile to react to marketplace environments and influences-- without layers of bureaucracy to go through, small businesses can change course as needed.

For more details:
http://www.entrepreneur.com/marketing/marketingideas/

Nailing Your USP
Whether you're a startup or reinventing yourself, identifying the essential core elements that can help build your company's name and reputation will get you started on the road to fame, fortune and fast cars.

As you develop a marketing strategy you can use as the foundation of your communications plan, some questions you should consider, and hopefully come up with solid answers to are:

• Are you unique?

• If so, in what way?

• Can you definitely prove it?

• If you're not unique, are you better at what you do than the competition? And if so, what exactly is it that makes you better?

• Can you demonstrate in easily understandable language (not BS) what it is that makes you better or different?

• Do you provide quality--either at a price or irrespective of price?

• Do you provide value? And that doesn't necessarily mean offering the cheapest prices or matching those of some fly-by-night outfit that could very well not be around tomorrow.

• If you believe you provide value, can you express it in 20 words or less, spelling out what is the unquestionable benefit you provide at a fair price to satisfied customers?

• Do you back up your quality products or services with rock-solid, no-questions-asked guarantees and unmatched customer relationships?

• Are you totally reliable? This goes beyond the above two points and is the reason why some companies have been in business for years, while seemingly not being different than other companies with similar products and services. Perhaps a better way of posing the question would be, Does your company have integrity?

• Do you give the impression that you've been around for a while and intend to be around for a good deal longer? That anyone dealing with you, (particularly in a B2B relationship), should be assured that you will unhesitatingly solve to their complete satisfaction any and all problems that might occur in your business relationship?

• Even though it may not necessarily be seen as an obvious bottom-line revenue generator, are you prepared to spend time helping solve customers' problems, irrespective of whether this is part of the service you normally provide?

• If you've been in business for a while, do you have solid and reference-proof case studies, particularly with locally recognizable satisfied customers, that you can talk about in your advertising? Can potential customers call your existing customers to verify their experiences with you?

• If you went out of business tomorrow, would anyone, apart from you, your mother, your dog and your investors care?

For more details:
http://www.entrepreneur.com/advertising/howtoguides/

10 Ways to Grow Your Business
Here are 10 practical ways to expand your business.

1. Open another location.
2. Offer your business as a franchise or business opportunity.
3. License your product.
4. Form an alliance.
5. Diversify.
6. Target other markets.
7. Win a government contract.
8. Merge with or acquire another business.
9. Expand globally.
10. Expand to the Internet.

For more details: http://www.entrepreneur.com/article/0,4621,315446,00.html
 

Three More Ways to Grow Your Business
Actually, there are only three ways to expand business...

Option #1 – Increase the number of customers

Option #2 – Increase the frequency of purchase

Option #3 – Increase the number of units sold

For more details: http://entrepreneurs.about.com/od/beyondstartup/a/threeways

Penny-Pinching Promotions

1. Piggyback your advertising. Including advertising material in other mailings, such as in invoices, saves postage and other costs. Likewise, make the most of your point-of-purchase opportunities by tucking coupons, newsletters or other promotional fliers in the bag with customers' purchases.

2. Be a good neighbor. Split advertising and promotion costs with neighboring businesses. Jointly promote a sidewalk sale, or take your marketing alliance further by sharing mailing lists, distribution channels and suppliers with businesses that sell complementary goods or services.

3. Ask the people you know for help. The kind of support you'd most like to get from your contacts is referrals the names of specific individuals who need your products and services. So go ahead and ask! Your contacts can also give prospects your name and number. As the number of referrals you receive increases, so does your potential for increasing the percentage of your business generated through referrals.

4. Got a happy customer? By telling others what they've gained from using your products or services in presentations or informal conversations, your sources can encourage others to use your products or services.

5. Make a special TV appearance. Local cable TV stations often have very reasonable advertising rates at time slots throughout the day and night. Though you won't necessarily reach prime-time viewers, you will make an impression where it counts in the comfort of potential customers' homes.

6. Offer expert advice. Teaching a class, speaking at a community meeting, or writing an article for a local paper not only makes you look like an expert but garners low-cost attention for your business.

Internet Ideas

7. Start your search engines. Research your market and find potential visitors for your Web site by looking through Usenet newsgroups (forums on the Internet where people post messages for public viewing) and special-interest groups related to your target market, product or service. Or, if you have America Online, visit their Small Business Center, which includes libraries of small-business information you can download at no charge.

8. Cut costs when setting up your online store. Think going online has to cost an arm and a leg? You can start out by selling items for next to nothing on online auction sites like eBay and Yahoo! Auctions.

9. Start chatting. Find newsgroups that cater to your audience, and join the fray. Always include your URL in your signature, but don't do any hard selling or most groups will ban you immediately. Instead, provide useful information that'll make people will want to click on your site.

10. Spread the word yourself. Are you letting people know what your URL is? Try putting it on your letterhead and business cards and in e-mail signatures wherever potential visitors are likely to see it. Include it on employee uniforms, any promotional items you give away, all press releases, in your Yellow Pages ad and on company vehicles.

Location Logic

11. Get a suite deal. You don't have to run your office full-time from an executive suite to benefit from its services. Many home-based entrepreneurs find executive suites meet a range of needs, including access to a private mailbox and a receptionist to answer or forward calls to your home office. Visit the Office Business Center Association International Web site for more information.

12. Be mobile. While the costs of establishing a permanent retail location can be steep, you may spend up to $100,000 or more, with leases spanning three to 10 years carts, kiosks and temporary spaces can be an easier way to get a foot in the door with a lot less risk. The upfront investment for a kiosk or a cart ranges from just $2,000 to $10,000. License agreements for carts and kiosks are shorter and are usually renewed every month up to one year depending on the location.

Office Overhead

13. Buy recycled printer cartridges. Check Google or your Yellow Pages for a local recycled printer cartridge supplier.

14. Fill it out for free. Instead of buying forms at your local office supply store or spending time creating them yourself, you can find tons of free forms online that you can download, customize and print.

15. Get free software. Visit Download.com to try hundreds of software products for free through trial downloads, freeware and limited versions of the full product. Another tip: If you haven't found what you're looking for through Download.com, check out the manufacturer's site. Most offer free trial downloads.

16. Buy used equipment. Save up to 60 percent by buying used computer equipment, copiers and office furniture from stores such as the nationwide Aaron Rents & Sells chain. Auctions and newspaper classifieds are other good sources of used equipment.

Insurance Intelligence

17. Save by association. When looking for insurance, check with your trade association. Many associations offer competitive group insurance.

18. Be prepared. Buying appropriate insurance upfront saves money in the long run. Consider what situations would be catastrophic to your business and protect yourself with adequate insurance.

19. Make a foul-weather friend. By arranging for an alternative place to run your business in case of a major disaster, you may be able to save on business interruption insurance, advises the Insurance Information Institute. For instance, you could arrange with a firm in the same industry to use their facilities in case of damage, and vice versa.

20. Check up on your medical insurance. Before choosing a medical insurance carrier, ask for information on past claims and the loss ratio of paid claims to premiums, advises the Council of Better Business Bureaus in Arlington, Virginia.

21. Raise your deductible. Raising the deductible on your insurance usually lowers your premiums. Even if you end up having to pay the deductible, it's likely to be less than the amount you save.

Employee Economics

22. Aim to lease. Employee leasing in which you turn over your work force to a professional employer organization that leases your employees back to you can save you substantial cash on employee benefits.

23. Go with the flow. Rather than paying for employees who sit idle when business is slow, consider hiring temporary employees to handle surges in business.

24. Make experience count. Get free or low-cost help and give local college students a chance to learn the ropes by hiring interns.

25. Use independent contractors. Employers generally don't have to withhold or pay any taxes on payments to independent contractors. But be very careful that your independent contractors fit the definition provided by the IRS or you could face penalties.

26. Commission your sales force. Overhead, salaries, incentives, training costs, fringe benefits and expenses add up when you're hiring your own sales representatives. Contracting independent manufacturers' sales reps, paid on commission only, is less expensive and often equally effective.

Shipping Savings

27. Clean up your mailing list. The U.S. Postal Service will clean up your mailing list for free, correcting addresses, noting incomplete addresses and adding ZIP+4 numbers so you'll be eligible for bar-code discounts.

28. Prune that mailing list even more. The Direct Marketing Association offers this checklist of cost-cutting ideas. Eliminate non-responders and marginal prospects; print "Address Correction Requested" on the face of your mail; investigate co-mingling your mail with that of other small mailers to take advantage of discounts available mainly to large mailers; and stockpile mail to build up larger volumes.

29. Be an early bird. Send mail early in the day, and you can usually expect to get one to two-day delivery for the price of a first-class stamp.

30. Shop around for an overnight courier. Overnight delivery rates for the major couriers are competitive; however, if you're willing to wait a few hours or even an extra day you could save.

Tax Tactics

31. Mind some petty pointers. Don't get careless about your petty cash account. "Though you don't need receipts for expenses under $75, you should still track these expenses since they can add up," advises Crouch.

32. Hire your children. If your children are at least 14 years old and pay their own taxes, it pays to take advantage of their lower tax bracket.

33. Take a stand on taxes. If your business is new in the neighborhood, you may be at a higher tax rate than those who have been there longer. Go to city hall to determine what your neighbors are paying, and use this to negotiate a better rate. Expanding businesses can often negotiate with community authorities, who want them to stay in town rather than move and take jobs elsewhere.

34. Home-based? Don't overlook crucial tax deductions. In addition to being able to deduct a portion of your rent or mortgage interest and utilities as a business expense, you can also deduct a percentage of various home maintenance expenses, along with a portion of the cost of services such as house cleaning and lawn care. Check out the IRS's Web site, or check with a knowledgeable tax advisor for more information.

35. Get out on the town. If much of your business is conducted at restaurants or you find yourself driving to clients' offices, make sure you take those deductions. If you entertain clients or potential clients to discuss a current or future project, you can deduct a portion of your entertainment costs. To qualify for this deduction, you must maintain a log of entertainment-related expenses you plan to deduct. Mileage can also be deductible. The mileage rate figure usually changes annually, so check with your accountant at the beginning of each year.

Financial Focus

36. Make credit comparisons. If you tend to run unpaid balances on your credit cards at the end of the month, shop for a card with a low interest rate. If you pay in full, it's more important to avoid an annual fee and look for a longer grace period.

37. Avoid cash advances.

38. Bank on an early deposit. Make bank deposits early enough in the day so you get credit (and start earning interest) that day.

39. Get checks in the mail. Ordering your checks from a printing company often costs less than getting them from a bank. Options include Checks in the Mail and Designer Checks.

40. Form a buying alliance. Join with another business or a trade association for bulk purchasing discounts.

41. Take it with you. If you're near your suppliers, pick up your order yourself or perhaps have a friend or family member do it for you. Pick up supplies yourself only when it truly saves you money. If it's taking you away from a revenue-producing activity, you're not really saving.

42. Be reluctant to give credit. If you do extend credit, thoroughly check the client's credit background. For less-than-creditworthy accounts, considering the following actions: Collect cash in advance; send partial shipments; request letters of credit, personal guarantees and a pledge of assets; take out credit insurance; or think about factoring (see below).

Professional Policies

43. Query your consultants. The professionals you work with regularly are often easy to bargain with, thanks to the rapport you've developed with them. Ask your insurance agent, accountant or attorney how you can cut back on their costs. You'd be surprised at the suggestions they might offer on ways to cut your premiums, reduce billable hours or avoid huge retainers. You might also barter your services.

44. Be a legal eagle. When hiring an attorney, make sure you have a written fee agreement to prevent surprises. It should include an estimate of the time to be spent on your case and specify what's covered in the fee including typing or copying and what is not.

45. Learn something new. Rather than pay a consultant to write your press releases, for example, hire one for an hour or so to show you how to do it yourself.

46. Run from the law. Try to work out any problems before they grow to the point that attorneys get involved. Don't ignore any written or phone complaints.

Buying Brainpower

47. Stretch your budget with barter. Swapping one product or service for another is a good way to avoid cash outlays and unload slow-moving inventory. If you'd rather not bargain with other businesses directly, hire a commissioned barter broker (listed in the Yellow Pages under "Barter"), or join a commercial barter club or exchange. The National Association of Trade Exchanges (NATE) is a clearinghouse for member exchanges across the country, allowing business owners to swap just about anything with anyone. Participants typically receive "trade dollars" for their goods or services, which are brokered across cities nationwide with the help of NATE.

48. Time your payments. Ask suppliers if they give discounts for early payment. If not, it's to your advantage to pay your bills including utilities, taxes and suppliers as late as possible without incurring a fee.

49. Join an association. Many trade and business associations have reasonable membership fees and offer discounts on everything from insurance, travel and car rental to long-distance phone service, prescriptions and even golf course fees.

50. Seek at least three bids on everything. Even mundane purchases merit shopping around. If you quote a competitor's lower price, a supplier or vendor will often match that price to win your business.

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