Successful Blog

Take Credit When Starting Up a Business the Right Way

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For the new small business person just starting out, putting necessary start-up costs on a credit card can be very tempting. It can also be financially damaging, leading the business owner to have to dig out for a long time to come.

In the event you’re about to open a small business, do things the right way when it comes to your business plans, avoiding placing yourself in a financial hole.

You will want to look at two facets of credit cards – potentially using one for some of your start-up costs, while also looking at accepting credit cards for purchases from your customers.

Among the things to focus on in getting a credit card:

  • Avoid running up credit – If needed; apply for a small business loan which normally will present smaller interest rates than a credit card would. This of course is provided that you do not have a bad credit history;
  • Pay off sizable credit card debt – In the event you have a lot of credit card debt, be sure to get it paid off. It should not come as a surprise that paying it off as quickly as possible is less expensive over the long haul since you’re not dealing with major interest rates. Among the ways to do this would be paying more than just the minimum each month, starting with paying down the card with the largest interest rate first;
  • Check your credit report – Make sure you periodically check in on your credit report to look for any mistakes that could negatively impact your credit along with your interest rate. In the event there are mistakes, be sure to report them to the credit-reporting agency;
  • Pay all bills on time – Nothing is worse for your credit record than being late with payments. In the event you are going to be late with a payment for whatever reason, contact the credit card company so they are alerted to the situation. In some cases, they may be willing to work with;
  • Shopping around – In the event you will be getting a new credit card, make sure you compare cash advance rates along with your balance transfer options. In some instances, banks will waive a transfer charge, meaning you can switch a present balance to a card with better rates;
  • Know the ramifications of failure – If your business does not take off and you are saddled with bills, there is a good chance you will still have to pay off your credit company credit cards. Check with the credit card issuer to see what their terms and rules are should this scenario present itself.

If you have your small business ready to roll and want to accept customer credit cards as a form of payment for purchases, here are some things to remember:

  • Credit card payments boost business – It is relatively well-known that those businesses accepting credit card purchases tend to finalize more sales from customers than those that do not. Along with aiding consumers when they are low on cash funds, credit cards can present them with rewards features and programs;
  • Determine pros and cons of merchant accounts versus third-party credit option – It is always a good idea to review the advantages and disadvantages of both. If you are an online business, utilizing a third party can lessen costs when it comes to setup charges for one. Saving on setup costs, however, typically means a large charge per transaction;
  • Know how to work the hardware – Lastly, make sure you and/or staff have proper training and support when it comes to terminal usage. The majority of merchant service providers will make available employee training workshops and manuals related to terminal usage. As for online third-party vendors, they generally are available on both e-mail and IM.

At the end of the day, credit card services for a small business start-up can be beneficial for both owner and customer.

But like with all things centered on money, know how to properly use the cards so that both owner and consumer are not left staring a massive debts.

Photo credit: ehow.com

Dave Thomas, who discusses subjects such as small business online marketing, writes extensively for San Diego-based Business.com.

You Are an Investor

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Rosemary O’Neill

Yes, you are a big-time investor. Like, Warren Buffet big. What? You don’t see it?

Every morning you wake up with 24 hours to invest. You’re rich beyond compare.

That 24 hours has a value that can’t even be measured. When you stack up a whole week of those, you’re talking about 168 hours!

Will you invest in Facebook? (No, not the stock shares, the status checking). Will you invest in your children? Your business? Will you choose to invest in yourself?

There’s a reason it’s called “spending time.” It feels like an unlimited resource, but it’s truly not. We all have an unknowable limit.

Sometimes people get caught up in believing that social media is “free” because Twitter, Facebook, and Google+ don’t charge our credit cards. But in fact, you are investing a far more precious resource when you use social media—your own time or that of your staff.

Furthermore, by choosing to invest your limited resource in social media, you are de facto choosing not to spend it elsewhere. Should you ignore your customer newsletter to post pictures on Pinterest? Only if it’s getting you an outcome you want. Should you cancel your sponsorship of the local 4th of July fireworks display so that you can record a YouTube video?

When you manage your time, whether it’s putting together a life plan or a business plan, remember that it’s all about where you choose to invest.

If you invest wisely, you’ll see dividends!

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Author’s Bio: Rosemary O’Neill is an insightful spirit who works for social strata — a top ten company to work for on the Internet . Check out the Social Strata blog. You can find Rosemary on Google+ and on Twitter as @rhogroupee

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Thank you, Rosemary!

You’re irresistible!

ME “Liz” Strauss

How to Start a Kiosk Business

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Kiosk Business Series

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Jason Phillips

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A Checklist for Starting

While perhaps not as “sexy” as other forms of small businesses, kiosks offer a viable and practical way to earn a great living, all without dealing with the substantial challenges required for many small businesses operating out of traditional brick-and-mortar storefronts.

Yet even thought kiosks offer greater flexibility and less red tape than traditional businesses, they still provide their own laundry list of steps to complete before you can get your new enterprise up and running.

  • First, you need to decide between purchasing or leasing your kiosk business. For many business owners, the seasonality of their market settles this decision for them. The more seasonal your product, the better of an option leasing appears. The more “evergreen” your product, the greater chance buying will appeal to your bottom line.

    Whether buying or leasing, keep in mind the price you pay for your kiosk depends on a variety of factors, including the time of the year and how much foot traffic your location receives. The higher the potential of your kiosk’s desired location, the more you will pay for it.

  • Determine the right size for your kiosk, and find the perfect location. When it comes to the size of your kiosk, you should select the smallest location you need to sell your products. While brick and mortar stores can make good use of extra space, kiosks benefit from a focused, efficient layout.

    Choosing a location for your kiosk seems like a no-brainer, but there’s more to profitable positioning than simply selecting the highest traffic space you can find. Heavy foot traffic passing your kiosk is good, but only if that traffic is composed of your product’s primary demographic.

  • Run the numbers. Compared with brick-and-mortar stores, kiosks require relatively low overhead, but that doesn’t mean you should approach your financial analysis and planning with a cavalier attitude. Factor in every cost associated with not just setting up your kiosk, but also running your kiosk from day-to-day. Be conservative with your cash flow estimates and then decide whether taking the plunge and establishing your new business is fiscally sound.
  • Acquire your financing. Kiosks represent a smaller financial investment than brick and mortar stores, but you still probably won’t be able to set up your business with whatever free cash you have on hand.

    Once you have the details of your kiosk in line, along with your financial projections and your anticipated expenses, you will be ready to apply for the credit you need to launch your business and keep the lights on as it establishes itself.

  • Finally, you need to round up all of the necessary paperwork, complete it, and file it. If you’re starting a kiosk business in a space that has already been highly developed and already provides a home to many kiosks, such as within a mall, then your new landlord will likely be able to help you breeze through the red tape as quickly and as easily as possible. However, if you’re trailblazing a new location, prepare yourself for a potentially frustrating bureaucratic slog.

    The volume of licenses you need to apply for depends almost entirely on what you’re selling. For example, a food kiosk needs to abide by far more legal regulations than a kiosk selling something as inert and harmless as sunglasses.

    Once you’ve acquire all of the licenses and forms of insurance you require, you will be ready to finally launch your business and move forward with this next step of your professional life!

Congratulations, now it’s time to get to work.
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Author’s Bio: Jason Phillips started with a BPO industry and now he is a market analyst. Now he is planning to become a kiosk manufacturer, he has vast experience in developing complex and custom kiosks.

Thank you, Jason!

–ME “Liz” Strauss
Work with Liz on your business!!

Have You Promoted Your Company Today?

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The old adage that you have to spend money to make money is very true, yet we all know businesses that do not adhere to this belief.

So, stop what you are doing for a minute at work and ask yourself a very simple question, is my company doing all it can to promote itself? If the answer is no, now is the time to speak up.

One of the first things you may hear from upper management is that we’re promoting the company within our budgetary means, aka we are spending as little money as possible to get our brand out there.

While it is understandable in a troubling economy that small businesses especially will want to refrain from large promotional expenditures, this would actually be a good time to be using promotional items in order to improve the company’s brand recognition.

Keep in mind that many other businesses are also probably thinking that everyone else is not spending money, so why should we? The simple response to that line of thinking is that while other businesses are holding back on promoting their companies, now is the time to strike.

Whether you are an administrative assistant, an upper management employee or even a company intern, don’t be afraid to offer your two cents as to how your employer can better promote the business.

Among the simple ways to do this include:

  • Social media – I’m still amazed when I peruse various sites on Facebook and Twitter,the two biggest venues for social media, and see that companies are missing the boat. I often hear that management feels it cannot get a true reading of return on investment (ROI) on its social media efforts, so the decision is made to bail on any additional SM work. The bottom line is that social media is essentially free, a great way to promote one’s company, allowing companies to appear as an authority in their respective industry by sharing worthwhile information for current and potential customers. Whether you are active or not in your company’s social media efforts, visit the company Facebook, Twitter, Google+ pages and any other sites your employer is on. Question the individual or individuals in charge of such sites if the pages are not updated regularly;
  • Community events – Getting involved in the local community is a great way with which to promote your business. Such opportunities are not only a way to build up goodwill within the community, but also to network with other local businesses. In the event you run a local cell phone business, get together with your area realtor, florist, eateries etc. to promote each others businesses. The old adage of scratching one’s back while they scratch yours is very true. Before you know it, you will have community members coming to you for business; hopefully you are returning the favor. Small businesses in a local community tend to stick together and patronize one another in order to keep the bigger corporations out, so be a leader in this area;
  • Use bumper stickers, buttons, business cards, T-shirts, etc. – These are great means by which to spread the word about your company. Imagine the potential response rate your small business could get around town if just your employees alone were sporting bumper stickers on their cars promoting your Web site, wearing T-shirts to the local stores and more. It may sound hokey to some, but making up such items is relatively cheap and can be very beneficial to those not aware of what your company does;
  • Buy local air or print time – This means to promote your company obviously involves some funding, but it can be money well spent. Even though many people tune out radio/TV commercials, and even though many newspapers are finding their numbers down these days, there still is a sizable audience that turns to these venues for news and information. Target the most effective times to promote your business, such as radio ads in drive time and coupons in the Sunday paper.

There are a variety of other ways you can employ in order to promote your small business, some of which may or may not get the owner’s approval. Remember too to never overlook your community’s Chamber of Commerce.

The bottom line is ALL employees need to be thinking about ways to better promote the companies they work for.

Remember, each and every employee has a vested interest in the company doing well, so promotion is everyone’s job.

Dave Thomas, who discusses subjects such as online marketing, writes extensively for San Diego-based Business.com.

What Every Small Business Needs In Their Toolkit

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The Lifeblood of American Economy

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Statistics provided by the U.S. Small Business Administration organization indicate that small businesses in the U.S. make up a staggering 99.7% of all employer firms. The almost 30 million companies of this size provide employment to half of all private sector employees, generating 44% of the total U.S. private payroll in the process. With statistics like these, it’s clear why small businesses are said to be the lifeblood of the American economy.

Despite their contributions to the economy, the sad truth is that a high percentage of small businesses will fail in the first five years of trading, if not the first. Industry professionals have long since speculated on the reasons why this happens with suggestions like insufficient capital, poor credit arrangements and unexpected growth commonplace. If you are just starting out, you’ll be keen to ensure that your venture doesn’t become a statistic. Let’s take a look at three tools the small business owner can call upon to bolster chances of success.

1. Social Networking

A social media presence is of utmost importance to business. A third of respondents to a survey of SMB owners conducted by Zoomerang and GrowBizMedia plan to use social media as a primary means of attracting new customers in 2012. Business Insider puts that figure at more like 75%. Whichever statistic you think is closer to the truth, there’s no getting away from the fact that 98% of the U.S. online audience use social networking. That’s a considerable audience for any small business owner. If you’re wondering where to start, consider these:

Facebook is undoubtedly the leader of the social network pack. With a user base that is rapidly approaching one billion members worldwide, it represents an excellent place to start your venture into social networking for business. It’s free to join and the new Timeline style pages make it easier than ever for businesses to connect directly to customers. Once a user likes your page, any content you post will appear directly in their newsfeed, where they are between 40 and 150 times more likely to consume your targeted branded content.

LinkedIn boasts over 50 million members in the U.S alone. A social networking platform aimed at promoting networks and connections, it is an excellent resource for business. The site also represents an excellent opportunity to find new talent. The Jobvite Social Recruiting Survey 2011 found that 94% who recruit through social networking have successfully hired via the LinkedIn platform. It’s an interesting and viable alternative to using costly recruitment agencies.

Twitter should also be considered. Don’t be put off by the 140 character limit of tweets. Think of it as an opportunity to show your creative side. Blackbox Social Media reports that 67% of people on Twitter follow a brand in comparison to just over 50% on Facebook. If nothing else, Twitter represents a chance for you to promote your business by linking to your other more detailed content.

Cyberlawcentre image: Licensed under Creative Commons for commercial reuse.

2. Cloud Computing

Cloud computing essentially refers to services such as office applications that are delivered over the Internet. In a report commissioned in February 2012, Microsoft reported that a quarter of companies with between two and ten employees are currently using paid cloud services. This figure is expected to triple to 76% within the next three years.

Cloud computing presents a number of attractive benefits to small businesses:

  1. Cost savings on business applications: traditional technology applications and platforms can be costly and complicated for small businesses to adopt and maintain. With cloud computing, there is no need to allocate capital to expenditure to business applications. Services such as Microsoft Office 365 and Google Apps are sold on demand, typically by user. Prices do vary but a few dollars per user per month are typical. Google Apps affords organizations with less than ten users with access to their services for free.
  2. Cost savings on IT infrastructure: the very concept of cloud services mean that business is conducted in the cloud. There is no need for the small business owner to invest in costly dedicated servers, since all of your data will be stored securely on the cloud network. The removal of the need to store employee email in-house can alone represent significant savings in terms of disk storage space on a server.
  3. Collaboration: data stored using this technology remains in the cloud. All of your employees access the same documents and have visibility of any changes immediately. This can significantly reduce mistakes brought about by outdated information and, in turn, improve the service you are able to offer to your customers.

3. Professional Membership

Last, but by no means least, comes membership to a professional organization aimed at helping small business weather the economic climate and succeed. In the U.S. there are many of these organizations so it’s worth devoting some time into researching which of them are best suited to your business. The following organizations are worth checking out.

– U.S. Small Business Administration (http://www.sba.gov)

– National Small Business Association (http://www.nsba.biz/)

– U.S. Chamber of Commerce (http://www.uschamber.com/)

– U.S. Association for Small Business and Entrepreneurship (http://usasbe.org/)

– National Association for the Self-Employed (http://www.nase.org/BenefitsHome.aspx)

– Small Business Benefit Association (http://www.sbba.com/)

– America’s Best Companies (http://www.americasbestcompanies.com/)

Adopting these various tools may not serve as a guarantee that your small business will succeed, but they will certainly go a long way towards helping you avoid some of the most common pitfalls.

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Author’s Bio:
Linda Forshaw is a Business Information Systems graduate from Liverpool in the United Kingdom. She is a full-time writer and published author who writes for several sites including Degree Jungle (http://www.degreejungle.com/rankings/best-online-colleges) specializes in social media, technology and entrepreneurship. You can find her on Twitter @seelindaplay

Thank you, Linda!

You’re irresistible!
–ME “Liz” Strauss
Work with Liz on your business!!

Is Your Business Pinched at the Pumps?

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It isn’t just the everyday consumer that still gets anxious when they pull up to the gas pump these days.

Since reaching $3.94 a gallon in early April, the national average for a gallon of regular unleaded gas has dropped to $3.75 as of early May, according to the AAA national motorists club. Despite prices heading in the right direction, many motorists are still bleeding at the pumps each time they fill up.

That issue also holds true for many small businesses that rely on one mode of transportation or another to remain in business. Whether it is transporting goods, going out on service calls, or having employees like salespeople meet in person with current and potential clients, a large number of companies are seeking ways to trim their gas expenses.

Businesses That Have to Deliver the Goods Feeling the Pain

Some small business owners most feeling the pinch are those such as florists, eateries, cleaning services and more that have to deliver products and services in order to remain profitable. While it might have cost $100 or so for weekly deliveries only a few months back, that expense has easily increased to double or triple that for many businesses across the country.

If high gas prices seem to be more common than rare, that is because both consumers and businesses have had to deal with them more often the last couple of decades.

It was just as recent as 2008, when the cost for a gallon of regular gas ballooned to a national average of $4.11. Even though the recent AAA report indicates prices have been dropping, the summer driving season is right around the corner, meaning they could just as easily rise as quickly as the summer heat.

If your small business has been feeling the pain of the prices at the pump, there are ways to bring the costs down and still meet the needs of your customers. Practices to think about for your business plans include:

  • Trimming delivery services for a period of time;
  • Requiring employees operating company vehicles to not take them home for the remainder of the day once their shift has ended. Installing GPS systems on the vehicles if they do not already have them is a great way to track how far the vehicle has been driven;
  • Making additional deliveries during a stretch of time in concentrated areas instead of several trips out;
  • Shopping around where your business is located for the best prices at the pump. A number of Web sites provide weekly and even daily information on which gas stations have the best deals available;
  • Taking some time to rethink how you do business. Do you really need to make all those deliveries and service calls or can more things be done online in order to cut fuel costs;
  • Consider providing your customers with deals in return for not having to make deliveries. If you run a floral shop as an example, instead of having to make a large amount of deliveries, provide customers willing to come to the shop to pick up flowers with coupons that they can redeem during an upcoming purchase.

As politicians and the oil companies blame one another for high oil prices, it is the consumer, including the business owner that gets caught in the middle.

Photo credit: app.com

Dave Thomas, who writes on subjects such as office equipment and supplies, writes extensively for San Diego-based Business.com.