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Are You Ready To Finish the Year With a Bang?

by Melinda Emerson on October 31, 2011 in Branding & Marketing, Business Inspiration, Grow Your Business, How to Start

This past weekend I conducted my last BYOB2011 Workshop in my national tour. I held the last one in Philadelphia, my hometown. The focus of the tour was on three things; How to Become Your Own Boss, How to Develop a Killer Marketing Plan and How to build a Social Media Brand. For the last year I have travelling the country teaching small business owners and would-be entrepreneurs the Emerson Planning System, How to align their marketing and sales activities and how to leverage social media to grow their businesses. I thought it would be helpful to highlight what I have been teaching. Here are 7 tips to finish the 2011 with a bang, and go into 2012 with a plan for success.

It’s Time to Update Your life plan. The cornerstone of the Emerson Planning System is to develop a life plan and a vision board. Your business goals and your personal goals must align or you could lose your business and your family. Once you have a life plan create a vision board. You can use the board as personal motivation to remind you why your work so hard. My life plan is taped on the wall near my computer monitor so that I have a daily reminder of my big picture goals.

BYOB also stands for Be Your Own Bank. Your ability to save has everything to do with your ability to start a business. The nature of business has changed and you will need to fund your own enterprise. The most you can borrow is a microloan for $25K, most people can life off that and launch a business, so the money needs to come from somewhere. I suggest you look in the right or left pocket.

90 percent of Success is Self-confidence. If you don’t believe in your business no one else will. Fake it until you make it! Look yourself in the mirror (like I do sometimes), and say Girl, you are doing IT!!! Most business problems are not so well hidden personal problems. Learn to compartmentalize your drama and stress and get your work done. You must stay focused.

Be an Agent of Convenience. Small businesses who are still getting big business in this economy are making it easy for their customers to say yes. They solve problems before the customers can say ouch. They understand industry trends. They use metrics heavily. They know the value they bring to the table. They can accept all forms of currency. They brainstorm with their clients for free because they care. What kind of agent are you?

Plan Sales in 30 day Increments. Your biggest concern should be how much money you need to make in the next 30 days. Once you breakdown your sales goals by month, you can easily breakdown how much you need to generate each week. Doing this, will help you get more aggressive about your sales process. You can also plan your marketing activities around lead generation.

Done is Good Enough. Your small business brand will evolve over time. Don’t be one of these people who have not released your new website or newsletter because you are still messing with your logo or layout. No one cares about your logo but you, and you can always revise it later. Just get it out there. Get feedback, and adjust your branded as needed. You are supposed to cringe at the original art work years later.

Harness The Power of Social Media. As a walking social media brand, trust me when I say that social media is the best thing that has happened to small business owners. You must Listen + Engage + Add Value + Promote Others in order to be an Influencer in social media. You must build trust and credibility in order for social media to really work for you. Use social media to speak directly to your target customer.

I am looking forward to teaching more entrepreneurs next year with the BYOB2012 National Tour. The schedule of cities I’ll be coming too in 2012 will be released in December. Stay Tuned. Special Thanks for Corpnet.com and ConstantContact.com for sponsoring this year’s tour.

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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How to Negotiate Commercial Real Estate – #SmallBizChat QA with The Square Foot

by Melinda Emerson, #SmallBizChat on October 20, 2011 in Grow Your Business, Q & A Interviews, SmallBizChat

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wed on Twitter from 8-9pm ET. This is excerpted from my recent interview with Justin Lee, co-founder of The Square Foot. The Square Foot is a website that connects businesses with local real estate agents who have insider market information that you won’t learn from listing services or landlords in the Houston area. Justin is a licensed real estate salesman in Texas and has worked in commercial real estate since 2003. Learn more about his new venture: http ://www .thesquarefoot .com

Smallbizlady: What are the different types of office space businesses can find for lease?

Justin Lee: Broadly speaking, there are three types of office space: traditional, executive, and virtual. By far the largest percentage of offices are traditional leases. Traditional leases fill up most of the buildings you see around you everyday. Executive suites offer smaller floor plans (generally under 1000 square feet) with more flexible lease terms and communal conference rooms and kitchenettes. A virtual office at the most basic level gives the user an address where she can receive mail plus access to a conference room for a set number of hours a month.

Smallbizlady: Why shouldn’t business owners rely on online listings for available spaces?

Justin Lee: The most common problem is that the information on listings is not always up to date. Listings are sometimes left online even after the spaces are leased just to get prospects in the door and looking at other available spaces. While listings can be helpful, they are only a small part of the process which takes time and knowledge.

Smallbizlady: Why should business owners/operators avoid leasing office space without a tenant broker?

Justin Lee: The fact of the matter is that a tenant is simply not aware of the market driven standards for the countless elements of a complicated commercial lease, nor are they up to speed with all of the available space options for them. A tenant broker is a market expert that represents only the tenant and due to industry practice commissions are paid by the landlord, which means no out of pocket expense for the tenant!

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5 Things Every Entrepreneur Must Do Each Day

by Melinda Emerson on October 17, 2011 in Business Inspiration, Cash Flow & Finance, featured, Grow Your Business, My Recommendations

Meditate— The worst thing you can do for your business is start each day in a race. I am strong believer in thinking about your day before you jump into it. I start each day in prayer before I leave my bed. I find that I am able to keep a positive disposition throughout my day regardless of what happens as a result. Years ago, Oprah Winfrey featured a book on her show called Simple Abundance; A Daybook of Comfort and Joy by Sarah Ban Breathnach. In it, she provides daily lessons about the concept of peace, joy and gratitude. This is a great book that I have used over 10 years to stay centered. If you start your day thinking about what you are grateful for it’s much easier to keep perspective when things go wrong. Running a small business involves 10 or more jobs at one time. Do yourself a favor, slow down and mediate on something before each day starts.

Know your cash flow situation– Cash is King! You have to know what your cash flow is, every single day, or you could lose your business. You should run your business based on a 30-day cash flow projection. You need to know how much money is coming in and what money needs to go out daily. You also need to stay on top of what invoices need to go out, and what the payment procedure is for each of your clients. Start collections procedures the first day after your money is past due. Never hesitate to call your client or the bank to get clarity about your cash flow situation. No matter what accounting software you use or what bookkeeper you hire, as the owner of the business you must know your cash flow situation every day.

Set aside 1 hour a day for business development– Work on getting in front of someone who may buy your product or service every day. Sales is the life’s blood of your business. Each day you must conduct business development activities in order to stay ahead of the competition. You can make calls, write emails, send thank you notes, Connect with new connections on LinkedIn, search for conferences and trade shows to attend, develop signature content, use social media to build relationships as lead generating activities. You need to make it a priority each day to spend at least one hour generating new business.

Follow-up with 3 three existing connections– People do business with people they like, know and trust, but you must nurture those relationships. Reach out to existing customers you haven’t spoken too in a while. Give three recommendations on LinkedIn. Send a lengthy personal note on Facebook. Make three calls or send follow-up notes with an article your read in the New York Times or Washington Post over the weekend. You will spend a longer time on these contacts, but they are further down your sales funnel, so they are worth it.

Get your plan together for the next day– One of my other favorite books is the 7 Minute Difference by Allyson Lewis. In this book, she says you need to do 5 things before 11am each day and anything else is a bonus. I love this and I do this every day. I make my list of the five things at the end of each day so I have a game plan for my day each morning. This, by the way, is also how I sleep well at night.

Do you have any suggestions for the daily priorities of a small business owner?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestselling author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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Affiliate Marketing the Right Way

by Melinda Emerson on October 4, 2011 in Cash Flow & Finance, Grow Your Business, Guest Articles

Have you been the recipient of communications from affiliate marketers or web-based entrepreneurs? Many of you have created or signed up to participate in affiliate programs. The government considers your affiliate activities to be a business activity and has a few things to say about what you can and cannot do. If you’re new to the game of affiliate marketing, it’s best to set up your program right the first time around. Here are action steps for ensuring you’re marketing your affiliate program the legal way.

What is An Affiliate Marketer?

You act as a referral source for another business for compensation. Or you get a percentage of each click-through from your site to another site.

For example, if I sell baby clothes and seek out a really popular mommy blogger to put a link on her site, and she does so for a percentage of each click-through (or purchase) to my baby product site, then I am a merchant and the mommy blogger is an affiliate marketer.

How are Affiliate Marketers Successful?

You must have a ton of traffic to your website from your target customer.

Associate only with good affiliate marketing programs that offer helpful information or quality products/services to your target audience.

Look for affiliate programs with a reputation for paying high commissions on time and providing excellent customer service to the end buyers, not just their affiliates.

Only promote products or services that you would actually buy. Linking to an affiliate marketing scam will eventually damage your online brand.
Do you homework to make sure you are providing legitimate value to your loyal web visitors.

Keeping Your Affiliate Program Legally Compliant.

In 2007, several government entities published rules to regulate the activities of affiliate marketers. The Affiliate Marketing Regulations, issued by the Federal Trade Commission (FTC) and the Federal banking agencies, generally require a company to provide a notice to consumers and an opportunity to opt out before an affiliated company can use certain information for marketing purposes. The affiliate marketing notice is in addition to the privacy notices already mandated, and would be a second required notice and opt out opportunity.

What Must I Do to Comply?

Get permission from the customer in advance.

Ask the customer if you can share their information with your affiliates BEFORE you share any information.

Use an opt-out feature.

Most email marketing programs offer an opt-out feature. You have to give your customers the opportunity to decide they don’t want their information shared with your partners.

What Should My Opt-Out Include?

It’s best to keep it simple. Try something like–

“Click here to opt out” or “Enter ‘Stop Emails’ in the Subject Line and hit ‘Send’”

Avoid these not so simple options–

“Print out this notice, fill it out and send by mail within 14 days” or “Enter your username, password and click here, there and everywhere to get to the opt-out page.”

There’s truly nothing more frustrating for a customer (and potentially illegal for you) than a complex opt-out process. Make it simple, and your customers will appreciate it and may even return later.

What Content Should Include an Opt-Out?

Remember, opt-out policies are not just for e-newsletters. Coupon offers, daily deals, infrequent updates, and anything else communicated to the consumer via an affiliate (or the merchant, of course), should include an opportunity for the consumer to opt-out in advance.

The government is not interested in completely raining on your affiliate marketing parade. There are a few things you can do without using an opt-out.

No Opt-Out Necessary When…

You had a pre-existing relationship with the customer

The customer initiated the communication or the Customer requested the solicitation

Include a Renewal

Give the customer an opportunity to renew their opt-out preferences at least every five years.

Do the consumers need to know that I’m an affiliate marketer?

Absolutely! Anytime you receive compensation (money, products or other freebies) of any type for providing access to a product via links on your site, product reviews or any other method of product promotion, then you need to tell your site visitors that you are being compensated for doing so.

Of course, you can also remind them that your reviews and opinions are based on your personal experience with the product (if that’s the case, and it should be…), but nevertheless, you must let them know so they can decide whether to go forward.

Three Steps to Legalize Your Affiliate Program

Strive for transparency. I imagine that’s a good rule in business, but definitely when it comes to sharing your customer’s information. Disclose all relationships and let you customers know and make the decision for themselves.

Err on the side of being overly generous with your opt-out policies. Don’t force yourself on your potential customers. Instead, give them a measure of choice in the relationship.

Keep it simple. Any opt-out procedure should not require a great deal of time or energy on the part of your customers. Make it easy to no longer hear from you. Keep it clear and to the point.

If you have a great product or service, then your customer base will grow over time, and you don’t have to engage in any sketchy tactics to get their business or email address.

Disclaimer: Any and all information contained in this post is shared for information purposes only. There is no attorney client relationship created between the author, reader, and any third party by the creation and sharing of this content. For more information on the federal regulations on affiliate marketers contact The FTC Bureau of Consumer Protection, Division of Privacy and Identity Protection, can be reached at (202) 326‐2252.

Shannon Harmon is a writer and communications consultant with Jones Harmon Communications, Inc. She helps companies around the globe create effective written content for business growth. As a licensed attorney she also publishes valuable legal information for web-based entrepreneurs via ibusinesslegal.com. If you have questions about your writing strategy or communications needs, she always welcomes emails at shannon (at) jonesharmonwriting (dot) com and will provide a thoughtful response to your inquiry.

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Time to Start Planning for 2012

by Melinda Emerson on September 26, 2011 in Branding & Marketing, Grow Your Business

The kids are back in school and Halloween is fast approaching. People it is time to start planning your budget and marketing plan for the coming year. 2012 will be here before you know it and you do not want it to sneak up on you. Just like many of your clients are reaching out to you for budget information for 2012, you must be thinking now how you will take your business to higher heights next year. Here are 4 things you must do to plan for 2012.

Meet with your Accountant and/or Tax Preparer. You’ll want to know if there’s anything that needs to be done that could reduce your tax burden before the end of the year. For example: Do you need to purchase any equipment and lease a new delivery van to get it on the book this year. Do you need to delay a payment from a client? You also should review you projected 2011 budget vs. actual budget 2011 for your business, so that you can make sure that you are keeping track of all your costs and adjusting your pricing accordingly.
Create 2012 Budget and Sales Projections. Once you have your meeting with your tax preparer, it’s time to develop your annual budget. At the same time, you should update your sales projections for 2012. The most important thing is to understand how much money you need to make every 30 days to cover your expenses and earn a profit.
Create a New Marketing Plan. Once armed with your sales projections you should use that information to develop your marketing. Now I have written many times on this blog about how to write a marketing plan and business plan, but here is a quick refresher course. You should start with your 30 day sales goal. Then determine what it takes ie. How many calls, email, blog posts and other lead generation activities it takes to close that number of sales each month. Never start a marketing activity you can’t afford to maintain for at least 6 months. Be sure to go back a measure what worked, so that you can eliminate those efforts that didn’t pay off in 2011. (How did that pay-per-click (PPC) ad campaign work for you?
Stay Current with Your Clients. Make sure your business is still relevant to niche. Stay up on the industry trends and the needs of your niche target customer. Sometimes businesses run a course and a competitor or new product comes along and fill the need better than you. Do an annual check meeting face-to-face to make sure you are still giving them what they need. If you run a business that is not based on relationship selling, then offer your customers a free gift to take a short survey to give you the feedback you need to keep being their best resource.

Do you have another tip on preparing your small business for 2012?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her the #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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Do You Have a Holiday Sales Strategy Yet?

by Melinda Emerson on September 14, 2011 in Branding & Marketing, Customer Service, Grow Your Business

Do You Have a Holiday Sales Strategy Yet?

If you sell stuff online or offline, it’s time to create a Christmas holiday strategy. Some businesses make 80% of their profit over the holidays, so you need to make sure that you get your share of the holiday spending. You should be thinking about how you will stock up to fulfill holiday orders at least three months in advance. Preparation is key. You should know the closing dates of magazines so you can get products samples to editors to be included for holiday round up features. You also want to place your orders early for advertising you plan to do on local TV or radio.

Your supplies: Look at what your sales were last year to determine what you need to have in place. Order your packaging, shipping and raw materials in advance. Be sure to order extra too.

Your suppliers: Communicate with your manufacturer and distributers about your holiday plan. Make sure you have a back-up for you main supplier in case they are slammed with other holiday orders. Also keep in mind that your manufacturer may also be using temporary help too, so if you have a product which requires a high level a craftsmanship you may want to order product early, so that your quality does not suffer.

Shipping options: Know when you need to have your items read to ship so that they arrive before Christmas. Figure out your best shipping options. If you belong to a trade organization or association you may qualify for a discount with Fedex or UPS for shipping. You can also set up a USPS click-and-ship account so that they will pickup orders from your home or office.

Contact Your Merchant Account Provider: If you are going to focus on sales over the holidays you need to make sure that your credit card processor provides a daily limit high enough to process all the transactions. If you are fortunate enough to have your product featured in the media or in a magazine you can have huge amount sales in a day which could shut down your shopping cart.

Seasonal Staff: Have your seasonal help and interns lined up in advance. Develop a training program or a step b step guide with pictures so that you brand is not damaged by a temporary worker. You can also enlist your kids, spouse, church members and friends to help get you through the holidays.

Black Friday and Cyber Monday Marketing Strategy: Figure out now what inventory or specials you must push for Black Friday and Cyber Monday. You want to develop special pricing and volume discounts as well. You may even want to develop a pay-per-click campaign (ppc) for the holidays. You’ll want to develop 3-5 different ads so that you can adjust your campaign to the one that is resonating the most with you target audience.

What is your best holiday sales tip?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her the #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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5 Finance Secrets to Make Your Small Business More Successful

by Melinda Emerson on September 13, 2011 in Cash Flow & Finance, Grow Your Business

Being an expert in finance is not usually a top priority for someone starting or running a small business. Here are five tips to make sure you’re handling your finances according to best practices:

1. Record-Keeping

There are two main reasons to keep track of the finances of your business. First, you need to maintain compliance with government and other regulatory agencies, like filing tax returns. Second, you need to use the information to measure your performance to manage the day-to-day cash flow of the business as well as find ways to improve your business.

Rather than learn how to do bookkeeping, buy an accounting program, and learn how to manage the detailed transactions of that system, start-up businesses should look to outsource their accounting to an outsourced bookkeeper who updates the books once or twice per month on their software, preferably hosted so you can access it whenever you like. You can often get this done for $200 or less per month.

2. Banking Relationship

The last time you walk into your bank should be when you set up you business bank account. Utilize online technology to do everything else, and you’ll save a lot of time and hassle. There is certainly some value in building a more personal relationship with your bank, but that only comes in handy if and when you need a loan.

3. Customer Payments

Make it as convenient as possible for your customers to pay you. Accept checks, credit cards, EFTs, and any other way that makes it easy for your customers to pay. Any barrier your customers face to figuring out how to pay you will result in lower sales and even lower collections. Stop worrying about the costs of some of these services and accept them as a cost of running a good business.

4. Taxes

Please pay them, and pay them on time. The government and other agencies are the wrong institutions from which to borrow. They charge huge penalties, usurious interest rates, and they usually have stronger enforcement rights that allows them to price any corporate or LLC veil you’ve put in place to try and separate your business and personal affairs.

5. Benchmarking

Do not operate your business in a vacuum. What are your competitors doing? How long does it take for them to collect from their customers? What are their gross and net margins like? How do you compare? You can get this type of competitive information and more from your bank or from other online resources and trade associations specific to your industry.

Ken Kaufman is the author of Impact Your Business: An allegory of an entrepreneur’s journey to clarity, cash, profit, family, and success http://cfowise.com/impact-your-business. Ken, an award-winning CFO, has over a decade of experience helping small business owners and entrepreneurs attain the clarity they need to maximize their financial success. His has credited with creating the Six Scoreboards Every Business Needs. In addition to serving as an outsourced CFO to eleven entrepreneurial ventures, Ken writes regularly for American Express OPEN Forum and teaches New Venture Finance at a local university.

Implementing these five things will put you on the path to building a financially healthy company.

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How to Become a Successful Sales Person in this New Economic Environment

by Melinda Emerson on September 8, 2011 in Grow Your Business, Q & A Interviews, SmallBizChat

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9pm ET. This is excerpted from my recent interview with Brynne Tillman @BusDevU. Brynne is the President and COO of Business Development University and President of Linked User Group on LinkedIn. She has over 20 years in business development and sales training. She has created and taught lead generation and client acquisition programs for many companies, including Dun and Bradstreet, Progress Leasing, Kinko’s and Vantage Point Bank. Her primary focus is coaching sales teams, and working with non-selling professionals who are responsible for client acquisition. Her favorite thing is developing sales and networking plans, linkedin strategies, implementation and measuring the sales process. For more information http://www.businessdevelopmentuniversity.com/

SMALLBIZLADY: How can a sales person really become a successful in today’s environment?

BRYNNE TILLMAN: Obviously that is a broad question with many answers, but there are a few things that you can do that can make an immediate impact on your performance as a sales person. First, evaluate where your primary business has come from in the past, what activities have you done that has borne fruit and focus on doing more of that. Sounds simple, but so many sale professionals spend too much time doing activity that brings them little business. Next, be prepared, do your due diligence on everyone you meet with. Use LinkedIn to learn about their schools, previous jobs, shared groups or connections with you and so on. Building rapport is a big piece in getting the business. If the prospect’s choice on who wins the deal is apples to apples, it comes down to whom they like more. And the next and most important piece in my mind is – leverage your warm market. Cold calling just doesn’t work, no matter how many calls you make. One way is networking with Strategic Alliances, folks that work with your prospect in a non competitive nature. You can help them and they can help you with warm introductions into your respective warm markets. And the last piece I want to mention today is do a really good job at understanding your prospects wants and needs. Don’t present prematurely, get a clear picture on their reason they want to work with you and when you do offer a solution – be sure to align your message with what they told you.

SMALLBIZLADY: How do sales people overcome the “budget” objection?

BRYNNE TILLMAN: By far, in this environment, this is the objection our clients seem to be hearing the most. Believe it or not, overcoming this objection has to come pretty early in the game. When we are uncovering our client’s needs, it is critical that we understand the financial impact of the problem we are looking to solve. Even if there are no clear metrics around the problem, build it out with them. For example if you are a website designer, talk about how much more traffic the new site would bring to their business and ask them – “If we could triple the number of qualified visitors to your website, and collect their contact information for follow up, how many of those new contacts could turn into clients?” Then ask, “Approximately what is your average client worth?” Get a number on the breakeven of your solution and the amount they will bring in because they worked with you. Now, when presenting your price, present it in context with their gain. Present it as an investment not an expense. If done right, there is no reason for them not to move forward.

Continue Reading →

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How to Interview For Your First Employee

by Melinda Emerson on September 7, 2011 in Before You Start, Grow Your Business

Choosing the right person to do the job can be a challenge. It all comes down to your interview process. Once you have reviewed the resumes, its’ time to get in touch with your prospects. You should interview at least 5 people for every available position. A great candidate will have a strong match between their skill set and your position requirements. For example, if you are looking for a salesperson and your candidate does not have an engaging personality, they may not be the best candidate for that position.

The interview is one of the most important stages in hiring your first employee. As this is the first time that you’re having an interactive conversation with a potential worker there are a few tactics that may be helpful to you in the process. There are five things to keep in mind when conducting an interview:

Be a good listener
Know how to redirect a conversation to the areas you consider important
Take notes during the interview
Go with your gut instinct (if something doesn’t feel right, it’s not right)
The candidate is also interviewing you, so be ready to answer questions too.

Interviewing potential employees is a 7-step process:

The Selection Process

Phase 1: The Google Test: You should put every candidate’s name and city in a search engine to see what your candidates do online on their own time to determine if you even want to have them working for you. Judgment and discretion is important.

Phase 2. The Phone Screen: Before inviting a potential candidate to your office schedule a 30 minute phone interview. You want to see if the interviewee is worth face time. You also want to see if have chemistry with the prospect and to make sure that what you are reading on paper matches up with who you are speaking with on the phone. .

Phase 3. The Face-to-Face Interview: If the candidate passes the google test and phone screen, it’s time to meet in person. This is your chance to evaluate the prospect’s appearance, communication style and preparedness. You want them to arrive with questions for you too. It’s also your opportunity to discuss the qualifications for the job in-depth.

Phase 4. The Reference Check: This is a step many busy entrepreneurs miss, but you need to know what the person was like at their old job. Ask the relationship of the reference to the candidate. You need to make sure the best friend or brother isn’t the reference.

Phase 5. The Follow-Up: No matter how confident you are in a candidate, don’t make the job offer without conducting a follow-up. You should run a background check, credit check and if necessary a drug screening. You might not want to hire a delivery driver with a drug problem or a secretary with an un disclosed criminal record. Be safe and do not invite trouble in the door.

Phase 6. The Job Offer: Now that you’re ready to bring in your first employee you want to make a verbal offer by phone and then make the offer in writing. Be sure to outline the compensation plan and when they will become eligible for any benefits. I recommend not making employees eligible for benefits until after 90 days of employment. Once the candidate signs the offer letter, it’s official you have your first employee.

Phase 7. The Onboarding Process: Your must create an official orientation process for your new employee. No one can teach your business better than you. It’s your responsibility to get your first employee up to speed. Develop a new employee handbook and a daily check list of action items for your new worker. Be sure to delegate things you need to get off your plate too.

Do you have a process that you use to hire new employees?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her the #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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Building A Team For Your Small Business

by Melinda Emerson on August 31, 2011 in Become Your Own Boss Tips, Grow Your Business

When you get to the point where you can no longer survive as an “army of one”, that means it is time to bring reinforcements…employees. Hiring and working with employees will be an adjustment, but it’s one you will thank yourself for later, particularly if you choose well.

One of the first skills you must learn is to delegate. Figure out what tasks you can afford to have someone else take care of for you. Think of it as your time is more valuable than doing basic follow-up and mailings anymore. As a small business, resources are always tight, so it’s important to get the most out of them. The same is true of your employees. If you do not utilize your employee’s full potential, you are wasting money. Pay as high a wage as you can and communicate with them upfront about your long-term goals. Nothing is worse then hiring an employee who leaves two months later, because they really didn’t see themselves in the long-term with your company.

What Kind Of Employee Do You Want? The obvious answer is the hardest working, most conscientious individual you can find at the lowest possible cost who is willing to work when you need them. But first, you need to really understand the staffing needs of your business. Whether it be sales coverage for the hours you have the doors open, a delivery person, a helper, technical support staff, or someone to answer phones, having a clear idea of how many hours you need them, the skills required, and the duration of the position, are keys to making the right hiring decision.

The job description - One of the first things you must do, once you have considered what kind of help you need is to write a detailed job description. Writing a good job description is key to helping an employee do their job effectively. It will also clearly communicate your expectations of job performance. As an additional benefit you can also use this document as basis for their annual job review. Here are some tips in creating a solid job description:

Create an exhaustive list of job tasks, then prioritize them. Try not to be overwhelming, just accurate.
Divide the list into three categories: critical tasks, routine tasks, occasional tasks.
Keep your job description to a page. (You do not want to scare away the person you are trying to hire.)

There are different types of employee that might meet your requirements:

Full-Time – A full time employee generally works 40 hours a week and is paid overtime for hours worked over 40. While you do have requirements for paying Social Security, disability, federal and state taxes, you have options on whether you provide health, vacation, or retirement benefits. If the skill set you require of an employee is scarce, be prepared to offer competitive salary and benefit packages to attract the best talent.

Part-time – A part-time employee generally works from 15–30 hours per week and can be a solid asset in covering hours, like nights and weekends, when your business might need to provide customer service support in off hours. Part-time help can provide great flexibility in meeting increased sales activity or in addressing a surge in call volumes.

Temporary – A temporary worker or agency hire can generally be on the job within a few hours and quickly help you meet an increase in business needs. The time and expense of recruiting, screening, interviewing, and checking on prospective employees are eliminated and unsatisfactory candidates can be easily replaced with a phone call to the temporary agency.

Contractors – This type of worker, also known as freelancers or 1099 employees, can be very valuable in meeting your business needs, especially short-term, complex tasks, without adding to payroll. They work for a straight hourly rate and are responsible for their own payroll taxes. If you pay a contractor over $600.00 you are require to send a 1099 tax form to them and the IRS to report their income. You define the scope and timing of the project that you want done, negotiate the price and specify the benchmarks.

Interns – College students working toward their degrees are often encouraged or required to participate in internship and coop programs that relate to their field of study. This can be a low- or no- cost source of labor for your company. In return for their labor, you give them college credits and experience in your business. Ideally, you can assign them projects that will test their skills, teach them new skills and bring value to your business.

Now that you have some ideas of what kinds of workers are available, please go and get some help for your small business. For more advice on this topic, check out my book, Become Your Own Boss in 12 Months.

Let me know about your first hiring experience.

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her one of the Top 20 women for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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How web analytics goals makes your online business better

by Melinda Emerson on August 23, 2011 in Branding & Marketing, Grow Your Business, Guest Articles, Technology

So you may already imagine what a goal is, but if you’re still wondering how exactly does goal setting in web analytics help your business, you’re in for a treat – this post will show some basics and answer that question to make your site a working asset for your business.

How web analytics goals help my business

First of all, a goal is a web analytics setting that counts each completion of a specific visitor task on your website. Goals become helpful to your business by selecting tasks that link your site purpose relative to your business. So each task counted can indicate how well your website is contributing to your business. This is not a light consideration — according to Experian in its 2011 Digital Marketer: Benchmark and Trend report most customer research a business online before arriving to the store. Moreover the number of customers who are using mobile devices to discover businesses are increasing, so it is essential to understand the impression your site has on visitors when they arrive.

To start, you will need to determine what tasks are desired. Desired actions to complete tasks are called conversions in web analytics lingo. A conversion can be a purchase, a sign up, or any task that you can represent in HTML or Javascript code. The number of visitors who undertake the action to the number of site visitors is the conversion rate, so this is the metric you will use to consider. Benchmarks for a conversion rate vary from industry to industry, but most rates are usually a low percentage (see this post from Clickz, an online marketing site, for an example ).

There are typically a few goal settings in an analytics solution. Google Analytics, for example, contains the following settings:

Pages

Average Time On Site (ATOS)

Pages/visit

Event goals (This is a new feature introduced in Google Analytics version 5, as well as having been a feature in Piwik, another free web analytics solution)

You can set the value of a goal accordingly by time (Time On Site), by viewing a certain page, by pages viewed in a visit, by an action (event) such as a page download or video played.

For the Pages goal setting, the goal is typically defined by a dollar amount to show that the page has value to the business or organization. For example if a visitor reaches the contact page and fills it out, then that contact page has a value. But the value of a goal is not a sale. Instead the value is based on the number of times needs to get that sale. So if it takes 3 visits before a customer becomes a sale, the goal vale is 1/3 (1 out of 3 ) times $100 or $33.

This value sounds a bit academic, but just remember that the value is the effort to gain the sale. This type of value helps to compare which pages on a site are contributing to a conversion.

Learn how your visitors navigate

Goals also lets you identify the website navigation you expect from visitors. To do so, you set a home page as the first page of a funnel, a services page as a second and so forth, and then set the goal as the last action. Your selection is included in a funnel, another report that visually shows which pages receives visitors, and which one loses visitors prior to reaching the goal page. The funnel lets you focus on the pages that are losing visitor interest prior to your goal page. You can decide if content changes are needed, or to insert a questionnaire that ask why the visitor wants to leave your site.

Keep in mind, some other settings in your analytics solution must be in place. Filter out traffic from other employees or marketing team with the IP filter is essential for data integrity. Also, evaluate your site structure and make sure pages are named, not just with miscellaneous characters — otherwise the page names will be unrecognizable in a goals report, and you will have poor data for understanding your traffic properly.

Goals can strengthen your business by revealing where to focus on your website – be it adjusting the marketing or even adjust the code itself. Web analytic goals will effectively organize your business and help let you make the most of your online measurement to the benefit of your customers.

Pierre Debois is the founder of Zimana (www.zimana.com), a consultancy providing strategic analysis to small and midsize businesses that rely on Web analytics data. He diagnoses website and provides social media analytics data, web development and search engine optimization services.

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Do you have a Bank or a Banking Relationship?

by Melinda Emerson on August 21, 2011 in Become Your Own Boss Tips, Cash Flow & Finance, Grow Your Business

Many business owners have a bank, but what you need is banking relationship. Entrepreneurs with a bank just make deposits and withdrawals. Business owners with a banking relationship know the branch manager, the business banker and the head teller at the bank they use. The business banker has seen your business plan and is aware of any big contracts or awards that the company has received. The head teller knows you so you can deposit a check as cash based on your reputation. Why is this relationship important?

As a business owner, eventually you will need money. Once you have a track record in business with positive activity on your balance sheet, you can consider approaching a bank for a business line of credit. Business cash flow tends to be uneven; seldom do revenues and expenses arrive in a timely fashion and sometimes a short-term line of credit is just what you need. The problem could be a pre-season inventory purchase, an unexpected machine breakdown, or a delay in getting a payment from a big client. Cultivating a positive relationship with a bank prior to having a need for a line of credit is key. It could mean the difference between success and failure. Here are some points to consider:

Look local. Look first for a local bank that can address your needs. Preferably, deal with a bank with which you already have a personal relationship history. They will have a pretty good idea of who you are and it will give you an edge in creating a new business relationship. Visit from time to time so people know your face. Use these visits to keep senior-level bank personnel up to date on your business activities. If you don’t have a personal bank, look for institutions that focus on loaning to neighborhood or women-owned businesses, etc.
Do your homework. Know your credit history before you go for a loan or line of credit. In a tight credit market, it is essential to keep your credit score as high as possible. Banks will only make loans to clients with pristine credit. Even the SBA will not support your business if your personal credit score is below 650.
Be prepared. Banks will ask a ton of questions about your business plan, loan requirements, collateral and strategy for repayment. When applying for a bank loan, remember that 90 percent of the bank’s decision to loan is based on two numbers: your cash flow and current net worth. The remaining 10 percent of the decision is based on such items as credit history and continued business viability.
The importance of cash flow, defined as the difference between cash receipts and cash payments, it is a key indicator to your bank on how your business is doing. Your goal is to hold on to your cash as long as you can without getting a reputation as a business that does not pay its bills. You must make sure your business always has enough cash to function.
A word of caution. Make the decision to give a personal guarantee for your business loan only after you fully understand all the ramifications. You are now personally liable for the total value of the loan if the business cannot pay, regardless if the business is incorporated, a partnership, or a sole proprietorship. Banks may place liens against your personal residence as part of these guarantees and this can be done without your knowledge. Personal guarantees are a fact of life for the small business owner, so be prepared for them. But be certain you understand the worst-case scenario.
Get Help. Find your local Small Business Development Center (SBDC) or other small business non-profit that has a micro-lending program. Such groups often have loan packaging deals under $50,000 and more importantly, many have special relationships with financial institutions that will work hard to approve clients these groups send them.

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts.
As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her one of the Top 20 women for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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How to Keep the Sales Engine Rolling

by Melinda Emerson on August 15, 2011 in Branding & Marketing, Grow Your Business

The day-to-day hustle in your business can make you forget to focus your marketing activities on keeping your pipeline filled. To help you reach your monthly sales goals, I have created a list of 7 marketing techniques you should revisit every 90 days. They are designed to ensure that you focus on revenue-generating activities in your small business.

1. Profile Your Customers. Who are your most valuable and profitable customers? How much do they spend with you annually? Do they fit a niche? While it’s imperative that you understand your products and services, it’s even more significant to understand what value your business brings to your customers so you can continue fulfilling their needs. Business issues can change quickly, making vendors potentially interchangeable. Be sure to thank your customers; no one owes you business.

2. Talk With Clients. If your three most important customers were sitting in a room with you, what questions would you ask them? Even with your long-time customers, schedule a quarterly face-to-face meeting to ask for feedback or just to catch up. You must stay on top of their needs and understand any new factors that influence their decision-making processes. Have 7-10 questions to ask, and then make sure you engage them around some personal small talk: kids, vacations, holiday plans, etc. The more personal the relationship, the more that relationship will allow you to obtain critical information and a strong ally.

3. Align Marketing Efforts With Sales Goals. Sales and marketing have to work together in your small business. Even if you are the only salesperson in your business, you must plan your marketing program based on the amount sales leads you need to generate in order to close the required amount of sales per month. If you know you need 500 leads per month in order to close 50 sales, then determine how many phone calls, e-mails, blog posts, Facebook ads and Twitter messages must be made, sent or posted per month to drive the desired traffic. You must establish a sales process and then proactively work your marketing efforts so that they generate the desired results.

4. Eye the Competition. Identify several competitors. Discover what benefits they provide to their current customers. Use their websites to gain insights. Compare your branding, value proposition and pricing. Based on your assessment, develop at least three strategies that you will use to position yourself effectively against them. Always think, “What is my secret sauce?”

5. Create The Win-Win. How can you develop a partnership that can contribute to your bottom line? Always go into a relationship understanding your partner’s “must have” list. It’s always best when you can find a partner who is not a direct competitor. A strong strategic alliance offers many benefits, including reducing risk, sharing costs and improving time to market.

6. Update Your Elevator Pitch. Your most important job as a small business owner is selling yourself and your business. When you can succinctly explain your business, it builds trust, but you shouldn’t use the same pitch forever. From time to time, switch it up a little. Add a brief client list; mention a recent award or media hit. Elevator pitches are designed to draw in your target and keep the dialogue going. Be careful not to talk too long. Offer just enough to get them interested in chatting with you again.

7. Use a Vision Board. All businesses have ups and downs. How you get through the tough days in your business makes a big difference in your productivity. I advise all my coaching clients to develop a life plan and then develop a vision board of your big picture goals for your life. It might include the 10 things you want out of life? Create a visual representation of your life plan. Use cutouts from magazines or clip art pictures–whatever it takes develop a visual symbol of your personal and professional goals. Post this collage to remind yourself why you work so hard. Your vision board will keep you motivated on good days as well as bad ones!

By implementing these marketing techniques, you will be able to evaluate the effectiveness of your marketing strategy and keep yourself motivated to stay on top of your sales processes.

How do you ignite sales in your small business?

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her one of the Top 20 women for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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Do-it-Yourself, In-Source, or Outsource Small Business Accounting

by Melinda Emerson on August 9, 2011 in Cash Flow & Finance, Grow Your Business

I have yet to meet a small business owner or entrepreneur who was excited to start their business exclusively so they could figure out how to do the accounting for it. We start businesses because of the problems we are going to solve for our customers. But we still need to keep track of the money-side of the business, the accounting of what’s happening in our business.

Do-it-Yourself

If you are generating less than $100,000 of revenue per year, it may make sense to keep track of your accounting yourself. Since you are involved in every day-to-day detail of your business, you may not even need to buy an accounting system and learn how to use it. But you shouldn’t try to do your taxes, so you’ll likely need to outsource this to a CPA each year by giving him or her copies of your bank and credit card statements with some detail about what each of the transactions was for.

Outsource

This option makes a lot of sense for most start-up and small businesses, and outsourcing the accounting functions can be very affordable. Businesses that are generating $100,000 to $500,000 of revenue per year can hire an outsourced bookkeeper to update the books once or twice per month and provide basic financial statements and other critical reports. By giving read-only access to your bank and credit-card accounts to your bookkeeper, they can quickly and efficiently keep you compliant and get you the basic information you need. Some outsourced bookkeepers will even have their own accounting software (meaning you don’t have to buy it) and they will give you access to it through the internet.

In-Source

Once your business exceeds $500,000 in revenue per year, it will likely make sense for some of the accounting functions to be done in-house. But those tasks should be the simplest and lowest cost items, meaning one of your employees could easily be trained to handle them. You will keep your outsourced bookkeeper in place to oversee this person’s work and perform some of their main duties, but you’re not paying the higher-cost bookkeeper to do it all.

Once your company exceeds $1,000,000 in annual revenue, you will be getting to a point where you may want to bring the bookkeeping function in-house with a full-time employee. Even in this scenario, it can still make sense to outsource some Controller and Chief Financial Officer (CFO) functions to keep your business on track.

Conclusion

Certainly the accounting needs of each business will be different, and that is typically determined by the business’ size, complexity, and trajectory. Taking those things into account, the right mix of Do-it-Yourself, Outsourcing, and In-sourcing can be put together to create the lowest cost but highest return scenario for your business.

Ken Kaufman is the author of Impact Your Business: An allegory of an entrepreneur’s journey to

clarity, cash, profit, family, and success http://cfowise.com/impact-your-business. Ken, an award-winning CFO, has over a decade of experience helping small business owners and entrepreneurs attain the clarity they need to maximize their financial success. His has credited with creating the Six Scoreboards Every Business Needs. In addition to serving as an outsourced CFO to eleven entrepreneurial ventures, Ken writes regularly for American Express OPEN Forum and teaches New Venture Finance at a local university.

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