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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 Januray, 1997 CONTENTSNotes, Tips, etc Sell Your Product or Service to the U.S.Government 1996 Tax Law Changes Writing Convincing Copy Don't Forget the Telephone! ++++++++++++++++++++++++ NOTES,TIPS, etc ARCHIVES. Check our site for
newsletter archives (click on "The Advisor") SPECIAL EFFECTS FOR YOUR WEBSITE? Check out this site: http://www.nashville.net/~carl/htmlguide/index.html ++++++++++++++++++++++++ SELL YOUR PRODUCT OR SERVICE
TO THE U.S. GOVERNMENT The United States Government
is the world's largest purchaser of goods and services to the tune of
over $225 BILLION dollars annually. Virtually everything you can
think of is purchased in both large and small quantities. So, have no
doubt that what-ever service or product your business is selling it is
being sought by this prolific buyer! Also, get the idea out of your head
that the Government only deals in large purchases. Sure, they buy airplanes
and submarines for billions of dollars but in fact this level of buying
accounts for less than 5% of all Government purchases. The majority of
purchases are for $5,000 or less. ONE. Determine the Standard Industrial Code (SIC) code for your products or services. This code is used by many agencies when purchasing and you will need it when filling out various forms. SIC codes are listed in "The Standard Industrial Classification Manual" (700 pages!) which is available at most larger libraries. Check the reference section. You can also purchase your own copy from the Government Printing Office for $29. Call them at 202 512 1800. TWO. Get a CAGE code. This is an alpha-numeric identifier assigned by the Defense Logistics Services Center and identifies your business. CAGE numbers are used by many government purchasing activities to identify the firms with which they do business. This code is especially important if you want to sell to any of the Defense Agencies. You obtain a CAGE code by completing and submitting Form "DD 2051." Copies of this form may be obtained from: Defense Logistics Services
Center THREE. Ensure that each agency with whom you might do business has a copy of your SF-129 (Solicitation Mailing List Form) so that you will receive copies of any solicitation from that agency. Copies of this form may be obtained from virtually any government agency. Simply call and ask for the "Small Business Representative." Review the U.S. Government section of your local telephone directory for numbers. You can also get copies from the General Services Administration Business Service Center in your area. Call 202 708 5804 for the office nearest you. Also check with the SBA who can assist you with determining which agencies may be interested in your product of service. Call them at 1 800 827 5722. FOUR. Visit or call the office of any government agency in your area and talk with the small business representative about selling to their agency. FIVE. Get listed in PASS. This is the Procurement Automated Source System which provides a central referral system of small businesses interested in selling to the government. This can bring you business with almost no effort at all and it's free! Get a PASS application form by calling the PASS hotline at 1 800 231 7277. If you are a minority owned business, get listed in ABELS (Automated Business Enterprise Locator System), another important database. Get an application by calling the Minority Business Development Agency at 202 482 1958. SIX. Review the Commerce Business
Daily (CBD) for contract awards to determine sub-contracting opportunities
and to check which agencies are purchasing your product or services. You
may find copies of the CBD at most large libraries, you may subscribe
at a cost of $260/year by contacting the Government Printing Office at
202 512 1800, or best of all you may view the current issue for free on
the Internet at: SEVEN. Share ideas with local companies doing business with Federal government agencies. Most newspapers carry listings of companies that have won government contracts. EIGHT. Market directly to other contractors, state and local agencies who receive Federal contracts. Find who they are by reviewing the CBD. NINE. Pursue micro & small purchases. Most agencies purchase millions of dollars of products in amounts of $5,000 or less. Make sure that you indicate you are interested in these small purchases when you talk with the various agencies. TEN. Ensure that your company brochure is in the hands of every procurement agency you can locate. Try to get it into the hands of the small business representative for each agency that purchases your product or service. The small business representative can be located by calling various agencies (local numbers if a facility is near you) or their Washington, DC headquarters. Simply ask. Additionally, your local SBA office may have lists of contacts. ELEVEN. Visit or call your local SBA office and ask for assistance and ideas. This will be time well spent! TWELVE. Obtain a merchant card account (accept credit cards for payment). Most agencies are now using credit cards for purchases less than $2,500. This article is an excerpt from the soon to be released book, "United States Government-New Customer! by Robert Sullivan. Robert is also the author of the best selling "The Small Business Start-Up Guide" which is available in many libraries and bookstores or may be purchased from the publisher, Information International, Box 579, Great Falls, VA 22066, at $15.95 plus $3.50s/h. Toll-free: 1 (800) 375 8439. Visit "The Small Business
Advisor" at ++++++++++++++++++++++++ 1996 TAX LAW CHANGES Once again, the tax code has undergone a sort of "reform." We have listed some of the major changes that can effect you as a small business or home business owner. Remember, we're not experts, so seek the advice of your tax professional for details. 1. LUXURY TAX. Extended to 2002 and reduces by 1% per year. It's 8% in 1997. 2. HOME OFFICE DEDUCTION. Expenses associated with storing inventory at home is allowed if your home is the sole location of the business and your business includes selling the inventory. 3. EXPLOYER PROVIDED EDUCATIONAL ASSISTANCE. Deductions of up to $5,250 still allowed under certain conditions. 4. NEW RETIREMENT PLAN. A new "SIMPLE" retirement plan is available for small businesses with less than 100 employees. Employees can contribute up to $6K and employers must make matching contributions. 5. IRA's. Non-working spouses can now contribute up to $2K per year to an IRA. 6. HEALTH INSURANCE PREMIUMS. Self-employed individuals may deduct 40% of premiums in 1997. This deduction increases to 80% by 2006. 7. MEDICAL SAVINGS ACCOUNTS. Self-employed individuals may participate in a new program in which tax deductible contributions may be placed in a MSA for use in conjunction with high-deductible health insurance plans. ++++++++++++++++++++++++ WRITING CONVINCING COPY
We are often encouraged to write just like we speak. But written English and spoken English are not the same-and the differences are important when writing for your business. Spoken English is less formal than written English. When we speak, we compose sentences "on the fly" so we often make mistakes. Often we'll use a wrong word or get halfway into a sentence and suddenly realize that that was not what we really wanted to say-so we pause, and change our direction or topic. If you've ever tape recorded someone speaking, then played the tape back and typed what was said word for word (a process called transcribing) you'll know what I mean. Spoken English, transcribed literally, is gibberish. When we have conversations with our friends, spoken errors are politely overlooked or, if someone gets caught saying something really silly, we have a laugh over it. Years ago the Reverend Spooner made so many spoken errors that the term "Spoonerism came into being. He'd often transpose sounds so that the words came out funny. For instance, he might order a "chilled grease sandwich" instead of a "grilled cheese." Spoken English is sloppy. Sometimes we say things incorrectly because it's the "in" thing to do. "Ask me about that" should be "Ask me about that. " "Fine out about my important products" really means "Find Out about my important products." If you write the way you speak, you are likely to put things like this into print. (I've received flyers containing all of these errors.) And if you do that, people will think you're an illiterate fool. In spoken English, your listeners
can interrupt to ask you to clarify something they've misunderstood. In
print, you don't have that luxury. you must write clearly and in a way
that is understood by all of your readers. Avoid regional dialects and expressions in Your business writing. They may work fine for a local audience, but in business, Your words may be read by potential customers all over the United States and maybe all over the world. While visiting some relatives in Southern Ohio a store clerk asked me: "You want a sack for that?" Here in Rochester, New York we would have said, "Would you like a bag for that?" I knew what she meant, but it sounded peculiar to my ears. Become sensitive to regionalisms and use them appropriately. Use complete sentences. Your sentences needn't be long, but they should be complete. Not like this one. I know incomplete sentences are used by large advertising agencies, but it's a fad that's too cute to last. Besides, people may Misunderstand and think you're unable to write well. Complete sentences will always be in style. Spell correctly. I cannot tell you how many times I've received sales literature from people promoting "Stationary and Printing." Unfortunately (for them) that should be Stationery. (To help you remember, the E in stationery stands for "envelopes" and the A in stationary stands for "anchors." Things that are stationary are set firmly in place.) My response to ads like this is "If you can't even spell it, Why Should I buy it?" Use proper punctuation. Punctuation
is not visible in spoken English so we must actually learn how to punctuate.
Most people put commas in the wrong places and don't know when to use
an apostrophe for making plurals, plural possessives, and so on.
One cure for this kind of ignorance is to get a decent book and look things
up just as you'd use a dictionary to look up spelling. Most book
stores stock "The Chicago Manual of Style" which has more good advice
on punctuation than you ever believed existed. Another cure is to
hire an editor. Don't abbreviate when it is unnecessary to do so. Spell out words so that there is no misunderstanding. Save abbreviations for use in forms with tight columns. Does "$3.99/min." mean minimum or per minute? State prices correctly. I can always tell when someone slept through math class when they make a sign for their shop window that says "SALE! Widgets .50-cents each!" You see, that means each widget costs one-half cent each. Placing the decimal point to the left of the five changes the five's value to five tenths (of a cent). But you already knew that. Writing well makes your business look good and helps build customer confidence. After all, your mail order customers only know you through your ads and flyers-your words in print. If those words are not believable, well written, and persuasive, you haven't got a chance. Learn more about getting your words into print. Order a copy of "Edit Your Own Business Writing" and a copy of "How to Set Type Like a Pro on Your PC" available from Communication Services SBA (210 Glen Ellyn Way, Rochester, NY 14618-1617). $5.00 each, postpaid. And ask for their FREE catalog offering over 50 publications of interest to home-based and start-up businesses. If you include a dollar for postage and handling, you get a Coupon worth $2.00 on any order. ++++++++++++++++++++++++ DON'T FORGET THE TELEPHONE!
With all the hoopla over the
Internet and the World Wide Web don't forget Be in more than one place
at a time. Use all your resources to give yourself "Reach out and touch someone."
Save time and money. You can: network, Telephone, (e, voice, snail)
mail, computer, fax: the cheapest ways to stay "Let your fingers do the walking!"
Phone directories are the way to find Here's a quick lesson in phone
manners: Smile while you are talking--the Make the most of each call.
Don't waste time: have a pen & pad by the phone "The early bird catches the
worm." Speak directly with decision makers by Unfortunately, you may encounter
rude and ignorant people. Never sink down This article was excerpted
from Arthur A. Hawkins II's book, "The Small Business Advisor readers
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