Small Business Tips

April 4, 2010

Phone Tips for Small Business

When you’re a small business, the cost of telecommunications can add up quickly. That’s why it (literally) pays to have a full-on business plan for your phone service that will continue to grow right along with you. Consider the following tips when choosing or upgrading your small business phone system.

Phone Tips for Small Business

Tip #1: Expand into your needs. Sometimes, businesses expand too fast – causing problems when their bloated infrastructure is overwhelmed by poor sales or overall performance. The same is true with phone systems. When a business gets up and rolling, there is a temptation to spend a lot of money on phones and phone services. But it is better to scrap a little from the get go than get saddled with costs that nobody can afford. Remember, it is easy to grow INTO a plan than it is to grow OUT of one.

Tip #2: Consider going mobile. The cost of a landline phone and appropriate calling package is still one of the greatest expenses a business will encounter during the course of the year. Many small to medium sized businesses have opted instead for an all-cellular set up that gives them the power to be in constant communication while still avoiding the fees associated with the traditional “powers” of business communication.

Tip #3: Monitor your call volume. The best way to make cost-effective decisions regarding your business phone calling package is to monitor the number of calls you make each month. Build a strong reporting system that helps you estimate your call volume. When you have a clear picture of how many minutes you use, you will be less likely to overspend on your package plans.

Tip #4: Consider outsourcing your reception work. It can be a real hassle to maintain a switchboard or operator system, especially if you are a company of one. One low-cost option is to hire a “virtual office” to perform the duties of a receptionist. These companies usually operate off site and require only a monthly fee to keep them going. The individuals who answer your phone can be trained to point people in the correct direction, take messages and hold calls.

Tip #5: Consider making the move to VOIP. Voice Over Internet Protocol (VOIP) service is one of the fastest growing telecommunications models with consumers, but as more and more people are discovering, it makes good sense for business too. There are fewer concerns about long term contracts and there are pricing packages to meet almost every budget. The cost per call with a VOIP service is consistently lower thanks to the availability of free calls to other people who use the same provider.

Businesses with a high-speed internet connection can get up and running with minimal hardware, and thanks to the advent of Wi-Fi, anyone who owns the latest cell phones can use them to access a signal and take advantage of their VOIP service that way.

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March 21, 2010

Small Business Tip …. How to Manage Cash Flow

Cash is king right? When in business …. ANY size business …. managing your cash flow is key to survival, not just growth. So …. how do you best go about ensuring you have your ducks in a row? Read on folks …. and pay attention.

Before you consider improving parts of the process, it’s important to bring the entire process under control. The process is the simultaneous timing of receipts and payments. How do you know if you’re in control? For most companies you could say you’re in control if you can predict cash balances within 10% accuracy, over the next 30 days.

Any business can get into control fairly easy but it takes a little discipline. Start by preparing a realistic schedule of receipts summarized by week. Typically these are outstanding customer invoices. Schedule receipts based on customers past payment patterns not you terms. Don’t kid yourself, in this environment plan for delayed customer payments.

Next prepared a weekly schedule of payments your business will be making over the next 30 days. Be sure to include all your expected payments such as payroll, payments to suppliers, installment loans, etc. Rank payments by penalty to pay beyond terms.

Finally, starting with your current cash balance, prepare a weekly schedule that adds your receipts and subtracts your payments. This will provide a weekly projected cash balance.

Update the forecast every week using new cash balances. In weeks where receipts were below forecast you have to consider slowing down your payments. When you see a heavy cash receipts week coming near you should attempt to confirm that customers will be paying as you are planning.

Once your cash management is under control here’s a few ways to improve the cash flow:

1 . Calling customers in advance
2. Make collections a priority with your sales team
3. Corrected invoices slow receipts. Monitor invoice corrections closely. Make sure invoices are accurate and in format acceptable to the customer
4. Reduce credit limits for customers paying slow due to their own cash problems.
5. Stick to your payment schedule for major items
6. Be reliable. Communicate clearly and in advance to all stake holders when moving off agreed terms. This includes employees, lenders, shareholders, and suppliers.
7. Include your management team in the process. You’ll need their help and support to be successful.
8. Control on what you can control.
9. Delay unnecessary spending indefinitely. Ask yourself if the expenditure is not made will it kill the company in the next three months? Three months later if you’re still alive, ask the question again.

There you go …. now you have a plan. It’s up to you to put it into action.

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March 17, 2010

Small Business Tip: Get the Most Out of your Posters

Utilize your Posters Effectively

Finding a reliable and all-purpose printed material is very beneficial and practical for small business owners. Whether you are promoting your new products, announcing special events, or inviting customers to your sale, these become easier with your trusty printed material. Posters are the ideal medium for communicating your message to your customers. These can be printed fast and affordably with the help of an online poster printing company.  

•    Focus on a single message. The common mistake that business professionals do is trying to squeeze in different messages in one poster. They want to accomplish too much at one time that they forget to focus on their main message. When this happens, customers get confused and distracted, making your message ineffective. Remember that your posters should only serve one purpose to achieve effective communication. Determine the single message that you want to convey and stick to it. You cannot launch a new product and announce a big sale all at the same time.

•    Add high-impact graphic design. Grabbing customer’s attention is the first goal of any advertising campaign. And this can be possible by using attractive graphic design. Graphic design is like a magnet- attracting customers to pay attention to your posters, and eventually to your message. Your graphic design is a crucial element of your posters. Wrong choice of design affects the over-all presentation of your posters which leaves your message unnoticed. Seek the expertise of a reputable online printing company if you want to print posters that are clear, vibrant, and striking.      

•    Include a call to action. Heighten your customer’s interest and curiosity toward your business with a call to action. Give them an unbeatable offer that they will find hard to refuse. Don’t keep your customers guessing by giving them an unclear and indirect message. Ask them to visit your store to take advantage of your “buy-one-get-one-free” promo. Give them your website so they can know more about your business. A call to action is the key to get customers to act now.  

Your poster will be able to do its job well if you know how to use it to your advantage. Always assess the effectiveness of your posters before having them printed and displayed to make sure that your promotional campaign will be successful.

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March 15, 2010

Small Business Tip: Use Direct Mail Marketing to your Advantage

With the high cost of advertising, small businesses need to find a way to sell their products or services in the most economical way possible. Direct mail marketing is the ideal advertising strategy for small businesses because of its affordability and effectiveness. Corporate stationery can be reproduced at a very reasonable price through online letterhead and envelope printing services.

The purpose of direct mail marketing is not limited to just promoting your business; this strategy can also be used for the following objectives:

Brand Recognition: Sending your own business stationery is better than using generic postcards for your marketing copy. Personalized stationery strengthens your branding efforts. Your corporate stationery contains your brand name, logo, and company colors. These branding elements help customers remember who you are. Ensure brand recognition by placing your logo in a prominent area on your envelopes and letterheads. Customer Loyalty: Direct mail marketing is a more personal approach for communicating with your customers. This builds customer relationships and increases consumer loyalty. Adding a personal touch to marketing is the best way to show customers that you value their business. Send them direct mail during the holidays or to just simply thank them for their continued support.  New Customers: Your business should be able to extend its services to a new pool of customers to allow it to grow and expand. You can do this by asking for referrals or exchanging mailing lists with other businesses. Gaining new customers not only benefits your revenue, it also increases your visibility. Newsletters: Keep your customers up-to-date with your new products or services, sales, or new store openings. Doing so allows customers to participate in your company’s milestones or take advantage of your special offers.  Maintaining visibility helps minimize competition.    

Whether you are using direct mail marketing for promotions, news updates, or special greetings, always keep in mind that your message must be straightforward, concise, and complete. This way you can be sure that you are communicating effectively. Lastly, you should be careful in choosing the right online printing company to print envelopes and letterheads for your marketing campaign to ensure high-quality.

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January 26, 2010

Small Business Tip – How to Solicit a Customer Testimonial

Customer testimonials for your small business can be a valuable marketing tool … if done the right way. But how do you get a customer testimonial that is meaningful?

I’ve found that politely asking long-term clients for feedback works best. When they let you know how pleased they are with the work, ask them if they would mind if you featured their comments on your website or in a brochure. I’ve yet to run into a client that said “no”. It increases their visibility as well.

If you have clients who indicate that there may be problems with the work your company has performed (and in my experience, there are always some clients who have requests for improvement), you can use that information to perfect your business.

Another way to handle this is to work with 2 or 3 clients for which you’ve solved a pressing problem (preferably one that was costing them money … or one for which the solution increased their profit or client list … or one that benefited their business in some way) to develop their stories into case studies, ending with a short testimonial.

Another longer term strategy is to build in the opportunity for client feedback through all of your systems – at the end of each sale, ask the client how their experience was.

You could also consider other methods of creating credibility in addition to testimonials – for example:

- before and after case studies (with data)
- showing media appearances on your website
- using 3rd party expert endorsements
- using charts and graphs to back up your claims
- show your product/service in action via video / pictures / flow charts etc.

Here’s one that’s a bit more proactive. Always serve your customers/clients with the objective that you will be soliciting their feedback and assistance in the future. This will allow you to approach them at any time during your relationship with them. If you have a “big win” with them, I’ve found this to be a great opportunity to ask. It is human nature not to be indebted to anyone…when you do a favor for your client its a great time to cash in on that favor and ask for a testimonial. They will be glad to oblige.

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