Small Business Propel: Getting Clear 3.3- What To Spend Money On

Earlier, I suggested that you spend a few minutes getting clear about YOU.  If you missed the post, you can read it here.

Today we are going to explore the subject of MONEY.

In my experience, many business owners get started thinking that they are going to get what is needed to run a business as sales come in.  Still, there is a large group of folks out there that think they can do everything and get by until the money is there.  As a side note, as much as it is a huge passion of mine to help women owned companies grow, this idea that we (women) can run and establish a company much like we run our households (meaning that we will do it all ourselves) is; in my opinion, one of the foundation reasons why female owned businesses fail at scary rates compared to male’s.

One reality of business that we all need to be clear about is that it takes money to do things right.  One does not need necessarily to spend thousands but there are areas where there are no short cuts.

If you opt for either not spending the money on these things, or you think that you can do them the right way on your own I suspect that the rate of failure will increase many fold and that is nothing compared to the risk to yourself and/or your family.

So here is my list of things that most business owners should spend money on:

• Consultation with a CPA do determine what business formation type(s) are most advantageous to you.
• Hiring an attorney to legally form your business entity type and protect you and your family from law suits.
• Hiring a bookkeeper to help you set up at the onset your accounting system and teach you how to enter/categorize transactions so that you can file takes without pulling your hair out when the time comes.
• Open a BUSINESS BANK ACCOUNT.  If you are too cheap to spend $10/month to keep all of your business money separate and properly managed I need to wonder if you should be in business.  You can find free accounts out there but think carefully about features that can make your life much easier.

• Open a BUSINESS SAVINGS ACCOUNT where you will move a designated % of your revenues to be re-invested in growth related activities.

• Hire a professional to help you create your corporate identity and brand.

• Hire a professional to design your logo, business cards, and web site.  The choice is this: either attract the right buyers to you or turn people off by looking like this is a hobby and not a real business.

• Have your web site professionally search engine optimized.

• Set a budget for your networking activities, trade shows, or other in person selling opportunities.

• Purchase the equipment that you need to operate.

Based on my experience as a business owner and also a former business banker, I estimate that you can do all of these things (well done) for about $5000.

One way to make this work is to make an initial deposit into your business bank account for this sum or whatever sum you came up with so that you can emotionally part with the money and know that it is allotted to doing the right thing.  If you don’t, it will become an emotional thing each time that you have to write a check or you will stall to do it.

By +Maria Ryan McElhenny

 

For more tips, tools, and ideas join my blog here.

#smallbusiness #startingbusiness #business101

 

Small Business Propel: Getting Clear 3.2- Yes, You Are Going To Sell

In the last segment, I shared some ideas to help you get clear about you.  If you missed it, go to Small BusinessPropel:  Getting Clear 3.1- About You; to get clear.

Today I am going to help you get some clarity about the selling issue.  The thing is that most business owners that I have met hate the idea of being a sales person but we both know that unless you come up with the greatest thing since sliced bread, you are going to need to find a way to sell your product or service unless you have the capital to hire people to do it for you.

So a million years ago, when I hated the idea myself, I had to create ways of getting me to do it knowing that without a strategy I would find how to avoid it at all costs. 

OK, first get clear:

·        My product or service will not sell itself.

·        If I have a great thing to offer, why would people not want it?

·        If I am not connecting to potential buyers how will they find out about my offerings?

·        Potential buyers will get an inferior product or service when they buy elsewhere.

Now, here are strategies that I have used and continue to use very successfully:

·        In the early stages of a business, spend 70% of your time doing a combination of activities that connect you to potential buyers.

·        Select two or more networking places where your target market goes.  Sign up and pay the fee. Put it on your calendar.  (By registering and paying you will not make last minute excuses not to go.)

·        Commit to going to two events per week consistently so that you get to know people and they get to know you.  Do not go to drink for happy hour and have a relaxing time.  This is part of your sales plan.

·        Find and set up speaking opportunities and educate people on your area of expertise.

·        Set up a blog and begin to share ideas, comments, tips, promotions, relevant information.  Do this weekly and find out where to post it so people will find it.

·        Select the best social media for your market and work on it 3 times per week.

·        Do not go crazy trying to do all social media types and spend all of your time doing a little here and a little there.  Commit to one and do it well and consistently.

·        Set aside one day a week to schedule one on one meetings with people in related areas.  Schedule for the following week (after you have blocked out when you are networking, blogging, and doing social media).

·        Spend 2 hours per week helping a related business get referrals from you.

·        Spend 8 hours per week of phone follow up:  thank people for spending time with you at an event, set up a one on one, and follow up on any requests for information, schedule appointments, and call referrals that you got.

·        If you hate the phone, use the sandwich method:  do one hour of other sales related tasks that you like better, then call for one hour, then do another more desirable task.

·        Identify the characteristics of a new group of people or business that need and use your product or service line.

·        Spend at least 4 hours per week looking to introduce your company to that market segment.  Create an effective email that you can send via Linked-in to individuals in your target market.  Use the same email to create an email blast for your contacts.

·        Develop your sales kit:  presentation materials, samples, contracts, etc.

·        If you hate talking about money, have a price list at all times and include a “sign up or buy me now” form.

·        Have an effective logo, business cards, and web site.  You are either selling or UNSELLING yourself every time a person sees one of these items.

·        Spend money on SEO for your website, or take the very long time it takes to learn this stuff and get it done.

·        When you can afford it, spend on advertising.

So the bottom line is that if you are spending at least 70% of your time doing selling, marketing, and/or related activities your chances of success go up tremendously.

Paper work, bookkeeping, spending hours learning how to do something that you have no clue how to do, let alone do it effectively is a sure way to run you out of business.

Until such time as you can pay others to do it, yes-you are going to sell.

By +Maria Ryan McElhenny

 

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Small Business Propel: Getting Clear 3.1- About You

Why do you want to have your own business?

There are people that start businesses for all sorts of reasons ranging from the ego satisfaction of feeling like “I am independent”, “I want to be rich” to “I can’t find a job”, “I am sick of corporate America”, and on and on.

There are so many great things about having your own business (I should know since I have one) but I believe that there is a time, a place, and a mind set for it to amount to more than a dream.

I am convinced that the mind set of success requires way more than just great skill at what you do and the ability to work hard.  Equally important is to be brutally honest with yourself and to be crystal clear about yourself.

What I propose is that you take inventory of the skills, tasks, processes, likes, dislikes, and even contemplate how you will define success or failure in this business.

For now, I will propose some questions that you may want to explore to help you gain clarity.  In the upcoming articles I will expand some of these issues to help you drill down into subjects that require more detail thought.

So let’s start here:

·        How long can you afford to make no or small amounts of money?

·        Do you have money set aside for the initial investment that the business will require in terms of equipment, marketing, manpower, legal, insurance, supplies, etc.?

·        What specific tasks will you do in this company?

·        What specific tasks that you will do are the ones you like and want to do?

·        What specific tasks that you will do are the ones you dislike and want to not do?

·        Do you have a process for getting you to do what you don’t want to do? (In other words… preventing you from procrastination, avoidance, making excuses, and simply not getting those done)

·        Are you willing to be a sales person and if not, are you planning on hiring one?

·        In general, are you self-motivated or do you need structure and deadlines to get things done?

By now, you may be thinking that this is negative stuff or potentially a turn off from having your own business but I think that this level of honesty and clarity is in fact, what can help you plan on taking action early on the areas that could drive you out of business.  There are plenty of tools, ideas, training, and hired help with just about any topic that you need to deal with; and this can be of great value and allow you to thrive.

You can only empower yourself to get things done that needs to get done when you have clear on your mind what it will take to make it happen.

By +Maria Ryan 

 

 

 

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Small Business Propel: Getting Clear 2- Why Your Product or Service?

In the last segment, Clarity #1:  Who is going to buy your product or service(s)? I offered some questions that you can ask yourself to gain clarity on who your target market is and more specifically what your individual buyers look like.

Now, assuming that the ideal prospective customer finds his/her way to you, either virtually, via phone, or in person, there is very little time available to let this person know why your product or service is the one to invest in.

I am still in shock at how frequently I encounter business owners (and I get around a lot networking and talking to people) tell me one of the following answers:

“I have the best service”

“I save people time and money”

“I have so many years of experience”

“I am cheaper”

“We are a family owned business”

….and I could go on and on.  To me, this business person has no clarity as to why somebody should part with their money and buy from him/her.  Let’s take a look at what many people will conclude (subconsciously or not):

“I have the best service”

According to whom? compared to whom?, would you tell me if you had bad service?, what does good service mean to you?

“I save people time and money”

When is the last time that a product or service did not ”save me” time or money?, this one is just so played out that I don’t even hear it anymore…

“I have so many years of experience”

So what?, there are tons of companies with the same or more years of experience.

“I am cheaper”

Cheaper than who?, are you any good?, what corners do you cut?, are you a mom and popshop?

“We are a family owned business”

How does that affect me?, have you never heard that sometimes family, friends, and business does not mix well?

You have only to go as far as to listen to what you say to yourself in your head when you make a purchase.  Think about the last car you purchased. What moved you to spend the money (we already know that you either needed or wanted to buy a car)?

Did you like how it looked?

Did you LOVE how it felt?

Did it have enough room for your entire family?

Was it the prestige branding effect?

Did you need to save money in gas or repairs?

Did you need dependability?

Were you bored of your old car?

Did you need your car to be a statement about your style?

Did you reach a life point when you declared “time for a nice car”?

 

So now, on to get clarity about your product or service. Get a piece of paper and write down as concisely as possible as many of these questions as applicable:

·        What is truly different about my product or service?

·        How do my clients benefit from the way my company does…?

·        My typical client saves xxx% over most companies that do what I do.

·        The reason my clients pay more than what my competitors charge is….

·        My service is perfect for people or companies that want to…

·        My company has a top rating in the area of …. according to …. (source)

·        When you buy a product or service from me you are supporting … (cause)

·        My company has “x” years of experience, specializing in working with people/companies that…

You can continue to develop questions that apply to your business and further refine the benefits that you bring to the table.  This level of clarity will make a huge difference in your success all around. It does not matter what aspect of your business you are working on, being clear on these issues can communicate the information in a way that is both effective and easier to remember.

Lastly, as a self-test, I ask that for each question that you answered or developed you challenge yourself by asking yourself “how do you know”.

For example:

·        How do my clients benefit from the way my company does…?

·        I know they do because…

 

 

By Maria Ryan McElehnny

On the next article, I will talk about getting clear about yourself.

 

FREE Website Designed For a New Non-Profit

Animus Web Design donates the complete design of a professional website up to 10 pages to a non-profit that has been registered within the past two years.  We will conduct a corporate identity profile and design and install the website.

We require that the nonprofit be USA based, and that it provides us with a copy of the IRS ruling for the 501c3 status.  We also require that the website be hosted with one of our two partner web hosting companies and that we receive two public reviews: one with Angie's List and the other one Yelp.

If you would  like to apply, please submit a comment here with a description of the mission of your organization and how we can contact you in the event that we select your organization.

We will select one organization per quarter.

By Maria Ryan McElhenny
www.animuswebdesign.com

Small Business Propel: Getting Clear 1

If you are thinking about starting a business, or if you already have a business, it is of the essence to get clear about a number of things and over the next several articles that I will write about I will share my thoughts on key areas that deserve clarity.

I will start with one that becomes the basis for anything else that you are going to do, and please note that this topic should be revisited frequently even when your business is operational because you may find after a while that things changed or reality turned out to be different than you imagined.

Clarity #1:  Who is going to buy your product or service(s)?

·         Are you selling to consumers, other businesses, or both?

·         Do you expect that more men, more women, or a somewhat mixed genders will be your primary buyers?

·         What age range(s) do you expect to attract?

·         Will your buyers be the type that are attracted to luxurious purchases, average prices, deal hunters, or the cheapest option?

·         Will your buyers be tech savvy or tech adverse?

·         What competitor products or services do these buyers use right now?

·         Where and how do these buyers go about purchasing?

These questions may seem obvious to you but in my experience many small business owners have not taken the time to be clear and focused on the buyers.  Even if you did your homework and started with this clarity, it is time to re-evaluate if the client that you thought would be your buyer ended up being the most profitable and/or the happiest customer type for your business.

If the answer is “yes”, keep doing what you’re doing.  If the answer is “no”, time to go back to the drawing board.

Clarity in the area of buyers or target markets means that all of your efforts are speaking to your audience with a message that is appealing, effective, and targeted.

In the next segment: Small Business Propel:  Getting Clear 2, I will be talking about clarity on your product or service(s) offerings.

I invite you to add to this list, comment, and to pass it along. Also, if you found this “food for thought” useful join my blog to get the rest of the series.

 

By Maria Ryan McElehnny

The Lioness

 

Smart Domain Name Registration Tips

Strategic Domain Name Registration

Like everything else “web”, selecting a strategic web domain registration name matters in more ways that meet the eye.

We will recommend that you purchase immediately as many of the versions of the domain name as are available, such as “.com”, “.net”, “.org”, etc. since domain names are inexpensive and by owning all the versions possible you insure that your returning clients do not end up in the wrong web site or your competitor capitalizes on your clients when they type the wrong extension.

Here are some tips on how to buy a domain name:

• Write down on a paper all the possible domain name registration options that you want to consider.
• Avoid complicated spelling words, people’s names, and generic company words such as “enterprises”.
• If your registered company name uses a person’s name, be ready to register two sets of web domain registrations: one that contains primary keywords representing what you do and a second one that is your official company name.
• Multiple domain names can be easily forwarded to a single website so your clients and prospects will get to your web pages no matter what domain name they use.
• Keep in mind corporate identity and easy branding when selecting a good domain name: if your domain name is “cheap services.com” you are surely going to get “cheap clients”.
• The easier to remember, the better.  However, be creative (starting with your primary keywords) because many of the ideal domain names have been purchased by people looking to sell them at a hefty premium.
• Select a stable and reputable and affordable web domain registration place that will be there to help you forward the domain names and will likely not go out of business net month.
• Keep in mind that the cheapest domain registration will likely save you $1-$5 per domain name registered and ask yourself the cost of the hassle if the cheapest domain registration company that you selected disappears.
• Conduct a free domain registration lookup at the place where you will purchase the domain name.
• Purchase immediately the desired domain name.  This is a must because there is talk in the marketplace that some cheap domain registration companies track these searches and purchase domain names that were searched and not purchased.
• Purchase at minimum the “.com, .net, .org” versions of your primary domain name to block others from purchasing them.

By Maria Ryan McElhenny

Affordable Domain Name Registration

Networking and the website from HELL

A few months ago I went to a business networking event that I found online and I thought I would check it out.  When I got there I was surprised to find about 50 people and the person that greeted me asked me what my business did.

“I run a strategic branding website design firm” I told him.

“Well, please go and speak to that woman over there and tell her, to see if it is OK for you to speak because I think she also does web stuff”- he tells me.

So I go to the woman.  I introduce myself and tell her that the guy suggested I check with her.

“Yes, I do web design.-She tells me- but my primary thing is marketing. So just go ahead and introduce yourself and not mention that you do web design.”

OK, I thought.  This is not my show so I am happy to respect that. 

Before I leave the event, she runs to me to give me her business card (which is very ugly and shows nothing to do with either marketing or web design) and tells me that it would be great to meet with me to see how she can help my clients with marketing needs.  I thank her and go my merry way.

So when I get back to the office (out of pure curiosity) I go to her site to figure out what the world she does… and there it is, right before my eyes: THE WEBSITE FROM HELL.

Just at a glance, it was painful to the eyes.  Easily the ugliest website I have seen in a long time and it was so bad that I knew not even a template could make this mess.  I have no clue how she did that, what she used to create this thing, or how out of touch one must be to use this thing.  Let’s see what the content is-I thought.  Since I was now even more curious as to what she did.

Well, somewhere in the content it mentioned that she creates and implements successful marketing programs and campaigns for her clients and in one line somewhere on a page she talks about designing websites.

What?

What?

All I could think of was that I had found the perfect example of what NOT to do.  And even right now I am wondering if I can find a way to remove all info that may identify her or her business so I can show you.  I want to use that thing on one of my classes!  But I am not into humiliating people.

So I put the card on my recycling can and I thought one day when I have a few moments I would share the experience-then forgot!

BUT.  I run into her a couple of days ago at another event and she comes to me: “let’s meet to see how we can work together”.

What?

 

Here is another preview into my mind:

Are you crazy?  Do you think I would ever refer a client of mine to a person who is so “all over the place that one can’t even figure out what she does”?  What’s your definition of “marketing”?

Maybe I am on my own world here… but to me, marketing has to do with branding the right message to the right audience.  I must be wrong because the only message I got from her website and business card is:

RUN!!!!!!!!!!!!!!!

By Maria Ryan

Animus Web Design

 

How to attract CHEAP clients

What?  Are you crazy?  Who wants to attract cheap clients?

Well, I see so many examples of this that the only conclusion that makes sense is that tons of people want cheap, deal-hunting, bargain-masters, and unwilling to pay clients.

Surely you think I have lost it and this is not worth reading because you are not one of them.  I know I have not lost it simply because those few decent website jobs that I run into happen to belong to the companies that are moving forward, if not actually making money.

It is not just about the website.  The theme in common is that these folks take their business seriously enough to do things right in most areas.  They think, operate, expect, deliver, and brand consistently the message that they are worth good paying clients.

So… if you want CHEAP clients, please ask yourself the following questions to see if you are in this category without meaning to be:

Did you, your friend, or your relative designed your website because he/she did one or two and “knows how”?

Is your website one of the 10 templates available for your business category?

Do you love the way your website looks but have never gotten a fresh lead from it?

When people call you, how fast do they ask how much do you charge?

If your potential clients think they can “do it themselves” for whatever product or service you offer are you going to make it in business?

Why would they not assume that you are a start-up, low budget, or struggling business when you are visually screaming at them that you are one of the “do it themselvers”.


By Maria RyanIf you want to get serious about your website

They drive me crazy

For every ten websites that I see, from small to medium size businesses, anywhere from 5 to 7 of them drive me to want to pull my hair out.

These are some of the things that goes through my mind:

Why does this company own a website that is a joke, a turn off, and screams LOW BUDGET?

Did the owner of the company create this mess, or worse…paid somebody to create it?

Are there still people out there that think that prospects don’t use websites to research, find, and make buying decisions?

You may think that I am saying this because I am into the whole website world, but the fact I that this is just a small preview of what truly goes through my mind much of the time, regardless of looking at a prospect website or looking up information to buy something, or simply even going to get the phone or address from a contact that I need to reach out to.

I am not into politically correct, and I am not going to tell you that you have a nice website if you don’t. I am also not going to tell you that it is a mess if it is one of the few that is effective.

So, if you are one of the “gutsy” type and want a quick review of my opinion from rated from 1-10 email me your domain name or post it here for feedback