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LAST UPDATE: 1/14/2012
We hope you find this arcthve useful. A subscription to The Small Business Advisor Newsletter is free. Subscribe now - it's easy! The Small Business Advisor Newsletter for August, 1999 CONTENTS Notes,
tips, etc ++++++++++++++++++++++++ NOTES/TIPS/etc --------------- NON-PROFIT
CORPORATIONS. We're asked frequently about the details of starting a non-profit
business. Normally we simply advise that one seek the council of an attorney
since the procedure is complex. However, to get smart on the topic take
a look at "How to Form a Nonprofit Corporation in all 50 States"
by Anthony Mancuso. It is published by Nolo Press and includes a diskette
with all the forms required to start your non-profit. The ISBN is 0-87337-451-7.
The cover price is $39.95 --------------- 1.
Carve out your niche! Specialize and become the best in that area. 2.
People love frequent-flyer miles! Why not give them away as rewards to
customers. Check with the major airlines - cost is only a couple cents
per mile. 3.
Stay in touch with your current customers - visit them if possible. Call.
Send a post card or e-mail. Ask what you can do for them. 4.
Provide a strong guarantee for your product or service. --------------- --------------- --------------- --------------- --------------- --------------- --------------- Marketing
tips, strategies, and secrets for internet marketing, online advertising
and website promotion that will skyrocket your small, medium or home based
business profits through the roof. ++++++++++++++++++++++++ CHOOSING
YOUR BUSINESS STRUCTURE (since
questions about this topic are asked so frequently we're rerunning this
article .. ed) No
doubt, one of the most asked questions by the prospective business owner
is "Should I incorporate?" The legal structure you choose, corporation
or otherwise, depends on a number of things, including your type of business,
individual situation, goals for the business, and a number of other personal
and financial factors. Before deciding what's best for you, discuss your
plans with your accountant and attorney. Make sure you are prepared to
describe your business plans in some detail. It will be money and time
well spent. Making the right choice can help you avoid a mistake that
can cost you big in terms of possible future liability Here
are the choices available for operating your business: Sole
Proprietorship. The vast majority of small and home-based businesses operate
as a sole proprietorship. There is no limited liability - the owner is
solely responsible for all debts. Business profit or loss becomes part
of the owners personal tax returns. Major advantage: Simplicity. Regular
("C") Corporation. Limited liability is its major asset. Profits
are taxed at corporate rates (lower than personal rates). Salaries paid
to owners is subject to their regular personal tax rate. Major advantage:
Relief from personal liability. S
Corporation. Limited liability as with a "C" corporation but
with some additional restrictions that only affect a few. Business profit
and loss is passed through to the shareholders' personal tax returns.
Major advantage: Profit and loss pass through to personal returns. Limited
Liability Corporation ("LLC"). A fairly new entity that offers
limited liability like a corporation and the tax advantages of a partnership
and S-corporation. (No Federal taxes and personal pass through of losses).
Major advantage: Limited liability PLUS profit and loss pass through to
personal returns. General
Partnership. No limited liability. Each partner reports profit and loss
on their personal tax returns. Major advantage: No Federal taxation. Limited
Partnership. Limited partners enjoy limited liability but the general
partners (at least one is required) do not enjoy limited liability. Major
advantage: Limited liability for the limited partners. Except
for the sole proprietorship, each of these legal entities can be complex
to setup. It is very important that you engage the services of an attorney
and/or CPA to ensure no mistakes are made. There is no "best"
choice. Oh, and by the way, the answer to the question, "Should I
incorporate?," is maybe but unlikely. ++++++++++++++++++++++++ DOUBLE
YOUR BUSINESS - OVERNIGHT! To
accept credit cards you will need to find a bank or other provider that
will accept you as a "merchant account" customer. In the past
it has been difficult to obtain a merchant account if you did not have
a traditional "store front" operation or if the majority of
your business is mail order or Internet based. However, with the proliferation
of mail order, Internet and home based businesses, many electronic clearinghouses
are associated with banks that actually cater to these businesses. Finding
a provider. Try your own bank first but be careful since many banks deal
with agents who in turn represent an electronic clearinghouse. These agents
are commissioned and sometimes add unnecessary fees. Next, check the yellow
pages under "Credit Card & Other Credit Plans-Equipment &
Supplies" or similar heading. Search the Internet! Here are a couple
of websites to get you started: The
Small Business Advisor at http://www.isquare.com. Use the search function
and search on "merchant account." Card
Service International at http://www.cardservice.com Electronic
Clearinghouse: http://www.echo-inc.com What
it costs. There is a discount rate (expressed as a percentage of the sale)
associated with each credit card transaction. You should not pay much
over 2%. A transaction fee is also charged and this should be approximately
20-30 cents per transaction. You will also need to purchase software or
a hardware terminal at a cost somewhere between $300 - $1000. Hardware/Software
requirements. You will need a terminal (or software) which allows you
to enter credit card data and obtain authorization for each charge. The
terminal connects to a telephone line and calls the clearinghouse; with
software you need a computer and modem. Some providers require that you
purchase or lease equipment from them and will tell you cost is not negotiable.
Not true! If this happens go to another provider. Questions
to ask a provider before committing: What
is the discount rate and transaction charge? Are
there any application fees? (Don't pay more than $75) Is
there any installation or programming fees? (There should be none but
don't pay more than $100) Are
there any statement fees? (Typically $10/month.) Is
there a bank setup fee? (There should be none but some banks charge up
to $50.) Is
there a daily closeout fee? (There should be none.) What
credit cards can be processed? (Visa and Mastercard at a minimum.) Remember
that most fees are negotiable. As a mail order or Internet based business
you may not have much clout with which to bargain, but the right provider
will charge few of these fees. Final
comment. Remember a deal that sounds too good is probably suspect. Be
a wary customer and do your homework. Shop for the best rates and fees,
ask for references, and check them! Once you have had your merchant account
for a few months, check back and negotiate for better rates. ++++++++++++++++++++++++ 10
POWERFUL TIPS FOR SUCCESSFUL MARKETING Traditional
marketing is obsolete! There is a new model: customer-driven marketing,
marketing from the outside in; from mass marketing to niche marketing. Value, integrity, information... that is what
is selling when you sell your products and services. Here
are tips, tools and techniques to enhance your product or service business. 1. State your Unique Selling Proposition. Tell your listener what it is that you do that
is unique to you and your business. Market
yourself just as you would market a product. Don't assume that your customers or prospects
know everything they need to know about your company, its products or
services. 2. Establish a frequent buyer's club. Your customer will carry your club card with
them in their wallet and be reminded of your business on a regular basis. The club card is perfect for any service business
that depends on frequent repeat business. 3. Develop "side services" that you can
advertise in your direct mail. An
auto repair shop may want to have a free car wash with an oil change. Side services are only those which cost you
your time. You can make direct
mail work for your bottomline. 4. Create strategic alliances with like-minded
professionals who sell products or services that complement yours. You will then be in a position to quote, sell,
and deliver an entire package without the added overhead and inventory
expense when your client wants everything delivered from one source. 5. Spend your advertising dollars based on a universe
bigger than just who you currently view as your competitors. Your competition
is anyone seeking the expendable dollars of your customers or prospects.
It's not just the businesses that sell the same products or services
that you do. 6. Acknowledge in your introduction who your target
market is. Define the relationship
between your business and the market that you serve. For example, "I assist physicians in their
medical billing." This tells the listener exactly who benefits from
your service. 7. Stress the "core benefit" that your
target market receives from doing business with your company. Tell them what the positive outcome will be
when they choose to use your products or services. "I assist physicians
in their medical billing so that they may have more free time to practice
medicine." 8. Find an interesting magazine that will offer
you a volume purchasing discount and give your client a subscription as
a holiday gift. Many magazines
are set up to accommodate discount pricing for quantities. Call their subscription headquarters to inquire. You will be thought
of every month when the magazine arrives in their mailbox. 9.
Send your success stories to websites that welcome participation from
its readers. If it's unique and
interesting, the website may post it indefinitely. This will be a good source of marketing if you remember to put your
business name and e-mail address on your story so that people can contact
you. 10.
Know what your business has that your prospect does not have. Once you
are aware of what your prospect needs, you will have their complete attention
and most likely an invitation to follow- up with an appointment. Implement
even ONE of these tips today to create greater success in your business. Which tip will you put into action now? Leslie
Speidel is an international marketing coach and holds weekly marketing
tele-workshops for business people worldwide. For a current schedule,
e-mail Leslie@themarketingcoach.com. Return to top of page - Back to Home Page - Back to Archive Index |