              |
   |
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 November, 2001 ======================== ======================== Finding and choosing an ISP is always a challenge. The small guys tend to come and go and the big guys are hard to deal with. But … a good place to start is to investigate the so called “National Providers” – those who have a nationwide presence which is kind of handy, especially if you travel. Here is a handy listing of some of the big guys from which to start your research: AOL www.aol.com 800
466 5463 Visit the websites for more details, pricing, etc. It’s always a good idea to call their support number and see how tough it is to get to someone! You never know when you’ll need help. ======================== With business comes competition. It’s not enough to demonstrate that you can deliver what the customer wants. You need to look beyond what everyone else is doing. Position your product as clearly different and better than the competition. Differentiating your business can also help your company from becoming stagnant. You constantly want to be improving your services so that you can attract new customers – as well as keep the ones you already have. LEARN WHAT YOUR CUSTOMERS WANT Discover what your customers want, and what your competitors don’t offer. You really need to understand your customers – and this includes potential buyers as well. How do you find this information? Ask your customers! Differentiating your business from the competition requires looking at your business in another perspective – from your customer’s shoes. Online discussions and chat rooms can be a quick and easy source for gathering first hand information from customers and prospects. You can also put together a simple survey or questionnaire to get feedback on ideas and issues pertaining to your business. Listen to your customers. New and different ideas are healthy for business. Even a small, simple change can significantly increase profits if it targets your customers’ wants. ANALYZE YOUR COMPETITION Differentiation makes your business memorable and credible. You want a prospect to be able to quickly and clearly understand what you do and what sets you apart from your competitors. So let’s look at our contenders to see what we’re up against: - Who are the major competitors in your industry? - What product line does each offer? - In your industry, what are most companies in competition about? - What are the specific strengths of each major competitor? CREATE PRODUCT DIFFERENTIATION WITH SIMPLE TECHNIQUES Incorporate features that deviate from the average characteristics of your industry. Focus on features that achieve what your customers want – and you’ll be able to cause buyers to choose your brand over others. Increase the VALUE or your product or service, but more importantly, make sure that your customer perceives that increased value. The more difficult it is for your competition to copy your idea – the better. This type of sales positioning will work best when (1) there are several ways to differentiate your product or service and (2) the buyer can use your product or service in different ways. Think out of the box. Go against the norm and adopt a bold approach to doing business in your industry. Focus on an aspect that you believe your business can uniquely excel at. Examples of values and benefits: Superior service - Greater product availability - Higher quality - Better performance - Increase intelligence - Greater durability - Respected image / prestige - Technology leadership - Satisfaction guarantee - Lower cost - Faster delivery - More customer support Save time and money! It’s important that you understand your customer’s desires before you develop your differentiation strategy. Some things to be careful of: - Make sure that buyers perceive your product’s features as a benefit - Don’t raise your prices too high and drive away customers As part of the marketing strategy differentiating your business is an ongoing process. The marketplace is always changing. Don’t be afraid to change with it – just do it in your own unique way. Sue Barrett works for FApublications and operates the Home Business Center, which has helped hundreds of people successfully start their own home businesses. Visit www.homebusinesscenter.com or contact Sue at editor@homebusinesscenter.com. ======================== 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. Return to top of page - Back to Home Page - Back to Archive Index |