TheSmallBizPro

5 Excellent Small Business Blogs To Learn From

2011-03-25T20:29:00.000-05:00

A company blog is a useful tool for small businesses hoping to give others a glimpse into the company while also promoting the company's products and services.

While it's never a good idea to spam readers with irrelevant promotional messages, there are plenty of ways to provide valuable information and resources to existing and potential customers.

Here are five small businesses that are using a blog to reach local communities and showcase the company's experience and expertise. We've outlined exactly what they're doing right as a guide for other small businesses to improve their own blogging activities.

1. Cure Thrift Shop: Showcase products with visual creativity

Cure Thrift Shop is a non-profit organization in New York City that donates 100 percent of proceeds to the Diabetes Research Institute. While the company focuses completely on philanthropic endeavors, it sets up a great example for other retailers hoping to create successful blogs.

Multiple times daily, Cure staffers update the company blog with creative pictures of new furniture arrivals, standout antiques, fashion inspirations and sale alerts.

Cure hosts its blog on Tumblr, which is known for fostering a community that appreciates beautiful photography. The thrift shop's quirky photos of one-of-a-kind objects fit right into the Tumblr mix while also letting followers know what's new at the shop.

2. The Brooklyn Kitchen: Say it with a video

Small business owners usually have a fair amount of expertise to share with the world. A blog can be a wonderful place to flaunt all of that pent-up knowledge—incorporating videos, though, can take your advice to the next level.

The folks over at The Brooklyn Kitchen understand the virtue of nicely-produced videos. The team creates how-to videos for its cooking-crazed fans. Whether they're showing viewers how to shuck oysters or clean a blade grinder, The Brooklyn Kitchen crew focuses on providing useful and targeted information in a high-quality format.

One of my favorite videos they've produced is a gem on how to saber a champagne bottle, as demonstrated by co-owner Harry Rosenblum. This is the type of how-to you'd only expect to get from a group of passionate foodies. Readers value that type of expertise, especially when they feel they can't find it elsewhere.

3. Sweetgreen: Think big

With seven locations in the D.C. area and one outside Philadelphia, Sweetgreen is a restaurant that offers all-natural salads and frozen yogurts—it's a healthy, sustainable business that immerses itself into local culture. The company's website explains, "We don't believe that you can have a successful business in an unsuccessful community."

Based on that idea, Sweetgreen's founders aim to make a positive difference in their community. The Sweetgreen blog captures all of the community activities that the company is sponsoring and taking part in, along with the usual day-to-day activities of running a restaurant. You can find the team throwing music festivals, hosting nutrition classes at local schools, or just concocting mouth-watering seasonal salads.

The blog acts as a central place where all company activities can be followed. The team maintains a great balance between community-focused posts and product-driven updates.

4. Birchbox: Invite guest writers

Birchbox, a startup subscription service that enables customers to sample beauty products before buying them, updates its blog multiple times per day, focusing on beauty and health tips. To keep content fresh, Birchbox editors bring in guest bloggers from top beauty and health companies and blogs to share their recommendations.

So far, the guest blogging program has included the likes of Dorothy McGivney, founder of travel newsletter Jauntsetter; Grace Atwood of beauty blog Stripes and Sequins; and Elizabeth Dehn, founder of beauty and wellness blog Beauty Bets.

Creating a guest blogger program is a great way to diversify content and bring in writers with experience and perspective in areas that the company's core bloggers may not be specialized in. Consider inviting guest writers to blog on your site if you're looking to expand into content areas that your company isn't as familiar with. For example, if your company hosts a blog about cooking, but would like to pair those dishes with tasty cocktails, consider inviting a mixologist to help kick off that venture.

5. Emerson Salon: Get social and personal

There are plenty of blogs out there that are good at integrating social media, and there is another subset of blogs that excel at identifying the people behind the cog. But there aren't too many sites that manage to blend those two successfully. Emerson Salon, a tech-savvy hair salon in Seattle, is one small business that has tackled that formula and come out on top.

Salon owners Matt Buchan and Alex Garcia run their business with the goal of building a community, both online and offline. On the salon's website, users see a thorough overview of the company's digital footprint, including links to its Facebook, Twitter and Yelp pages.

Social pages for the company are to be expected, but Emerson Salon also highlights each of its employees with bio pages for each of its stylists. A typical page includes information on a stylist's professional experience, favorite local spots and interests, along with links to social profiles and a feed of his or her latest blog posts on the site. Each stylist blogs about the latest hair trends and tips, showcasing his unique thoughts on particular topics.

Personal touches on a blog, like adding profile pages and social contact information for individual specialists, make a business seem more approachable.

Your favorite small business blogs

Because small business blogs usually service local communities, finding their blogs on the wider Internet can be difficult. We know we've missed a slew of wonderful, locally-run blogs, so let us know which are your favorites in the comments below.

By Erica Swallow

Erica Swallow is an Associate Editor, Partner Content at Mashable, working primarily on writing, editing and managing supported feature content, with a particular focus on business and marketing. Erica is an international speaker, having most recently spoken at WOMMA Summit in Las Vegas, Social Marketers Summit in Prague and Social Media Brasil in São Paulo.

Image courtesy of Flickr, Robert S. Donovan

10 Essential Online Resources for Preparing Your Small Business Taxes

2011-03-21T12:13:00.000-05:00

By Nellie Akalp (Mashable)

With record-keeping and quarterly payments, tax planning is a year-round event for the small business owner.

Tax-related activities, though, inevitably take on a new sense of urgency as April 15 looms near. While tax time can seem overwhelming for the time-pressed small business owner, there are many online tools and forums available to make the process a little easier and stress-free. Here are 10 of our favorites.

Preparing and Filing Your Taxes Online

Sitting down with a professional who specializes in small businesses is always a smart idea, particularly during the first year or two of operations. However, not every business owner wants to shoulder the costs of hiring an expert to help fill out relatively routine fields on their Schedule C.

If you opt to use an online or software-based tax preparation tool, be aware that not all solutions (particularly the free tools) accommodate business tax filers. Before you sign up for any service, download software, or invest time filling out your information, make sure that the service supports the common business forms.

The following is a selection of tools available for small businesses:

IRS e-file: The IRS offers electronic filing options for Employment Tax Returns, Information Returns, Partnerships, Corporations, Estates & Trusts, plus Exempt Organizations.

TurboTax: A popular tool for personal income filers, TurboTax from Intuit also offers software to guide small businesses through the filing process. The software helps you make sure you're taking advantage of every business deduction and write-off. A sole proprietor, consultant, 1099 contractor, or single-owner LLC should use the Home & Business version; S Corps, partnerships, C Corps, or multiple-owner LLCs should use the Business version. Free e-filing is included in both versions.

H&R Block Tax Software: Two versions are available for businesses: Premium & Business (LLCs, S-Corps, C-Corps) and Premium (sole proprietors). Even if you decide not to pay for the tax filing software, check out H&R Block's small business tax preparation checklist as a great starting point to get organized and make sure you're thinking about every possible expense and income source.

Tax Act Business: Tax Act has separate federal and state editions for business tax forms 1065, 1120S, and 1120.

Managing Your Paper Receipts

Whether you're a road warrior or work strictly from the home office, you'll probably find yourself overwhelmed with the amount of receipts accumulated throughout the year. All too often, receipts are stuffed into pockets, end up on the car floor, are run through the washing machine -- every lost or illegible receipt represents a missed opportunity to deduct a well-deserved expense for your business.

If manually managing paper receipts in a file system and spreadsheet isn't working out for you, here are two alternative ideas:

Shoeboxed: This service takes the paper receipts off your hands. You can scan your receipts and upload them to your Shoeboxed account. Or, you can mail in the paper receipts and they'll handle the scanning and data entry for you. There's also an iPhone app (as pictured above), or you can take images of receipts with a digital camera. Online, you can sort your receipts, create charts and graphs, and export data to Quicken, Excel, or PDF. There are different monthly and annual plans, as well as a free trial. There are a number ofexpense report and receipt tracking apps out there, so definitely shop around to find the one that fits your needs.

NeatReceipts: You can purchase your own portable scanner from NeatReceipts which lets you scan receipts (up to a full-sized document) to your PC or Mac. You're able to export data to PDF, Excel, Quicken, QuickBooks, and TurboTax.

Getting Help Online

Whether it's your first or fifteenth year as a business owner, you're bound to run into tax-related questions from time to time. Does deducting my home office really increase my chance of an audit? How can I deduct my health insurance? When traveling for business, are there limits on the amount I can deduct for my meals? Can I deduct the parking ticket I got while visiting a client?

If you haven't hired a CPA or tax preparer, don't despair -- you can still find answers to your specific questions online. Browse through community forums and post your own questions online. You'll get answers from business owners just like you. Of course, as with any online community, the quality and accuracy of answers may vary. But hopefully, the "wisdom of the crowd" will filter out the incorrect or less than helpful information. Here's a short list of various online forums catering to the small business owner and self-employed individual.

Small business and self-employed tax center at the IRS: The IRS has been beefing up its online resources -- the small business tax center offers FAQs, tax tips, help videos, and more. Most importantly, it offers highlights of the year's tax law changes -- for example, a new deduction for health insurance costs in computing self-employment taxes for 2010 (part of the Small Business Jobs Act), is outlined. It also includes helpful information on home office deductions.

H&R Block Get It Right Community: Your questions are answered by certified CPAs and tax advisers.

About.com Business Taxes: While not a community forum, this About.com site compiles some useful information, definitions, and articles for small businesses.

Of course, trying to get your head around all the deductions and forms is not easy, particularly when you're just starting out. The IRS estimates that filing your own business taxes will take approximately 52 hours. Keeping your finances in order throughout the whole year can help immensely come tax time. If this is your first year filing business taxes, be sure to learn from the experience. For example, if gathering the details and documentation for a section (like your mileage deductions) is particularly time-consuming, take some time to think about what you could do throughout the year to improve the situation when it's tax time next year. And then, of course, you can turn to the Web for guidance when the time has come.

Source: http://www.openforum.com/idea-hub/topics/technology/article/10-essential-online-resources-for-preparing-your-small-business-taxes-nellie-akalp

Image credit: Pgiam

Shortcuts On How To Increase Increase Your Bottom Line With Government Contracts

2011-03-13T18:19:00.000-05:00

By Lourdes Martin-Rosa

When a slow economy forces most businesses to reduce spending, one enormous customer continues to spend: the federal government. Just in 2009, the U.S. government spent $96.8 billion on products and services supplied by small businesses, including $33.5 billion with small, disadvantaged firms and $16.4 billion with women-owned small businesses.

Given the government's procurement goals of awarding 23% of their spending to small businesses and 5% to women-owned businesses, federal contracting is an important avenue of growth for many small businesses--and now more than ever women-owned small businesses--to consider.

The Small Business Administration's (SBA) long-awaited Women's Procurement Program to expand federal contracting opportunities for women-owned small businesses takes effect Friday, making federal contracting a more viable revenue booster for women business owners.

According to American Express OPEN's government contracting survey of small business owners, two-thirds of women whose firms do business with the federal government generate more than $1 million in sales, despite taking nearly two years, on average, to land their first contract.

There are, however, important steps you must take to pursue federal contracts. Following are key steps, plus useful tips that can improve your chances of landing your first government contract.

Introduce yourself
As with any client, the first step in seeking a federal contract is to make your business known. That means registering your company's information to the Central Contractor Registration (CCR)--the primary vendor database for the federal government. Registration is free. (Currently, there are close to 80,000 women-owned small businesses registered to do business with the government.)

When registering, there are a few important tips to keep in mind. First, make sure that the small-business owner is registered as the primary point of contact. Second, be sure to identify your company's industry categories or NAICS (North American Industry Classification Codes). Third, explore if your business qualifies as a small business on the SBA websites.

If your business is owned by a minority, woman, service-disabled veteran, or located in a particular area, for example, you may have an edge in government contracting.

Also seek any possible benefits offered by the 8(a) Business Development or HUB-Zone programs from the SBA. The 8(a) program was created to help small disadvantaged businesses compete in the American economy and access the federal procurement market. The HUB-Zone program provides federal contracting opportunities for qualified small businesses located in Historically Underutilized Business Zones areas.

If your business qualifies for either of these programs, you may be eligible for sole source, "no bid" contracts up to $4 million in products and services and/or $6 million in manufacturing.

Know your customer

Once you're properly registered in the CCR database, the next step is to learn about the government as a customer. Successful government contractors routinely peruse Fed Biz Opps, an online listing of government contracts that detail all contracts with a value exceeding $25,000. Small business owners can search for contracts that are designated as small-business set-asides and peruse all contracts to better understand what the government is looking for.
When you find a good match for your company, you can bid on contracts directly.

Another valuable resource is USASpending.gov, where you can research contracts by state, industry and several other categories to obtain information on where the money is going. Create a summary search and you can find out who are the largest government contractors within your geographical area, how much the contracts were awarded for and how long the contract will last.

Narrow down your search

The federal government has over 60 federal agencies and thousands of sub-agencies underneath it. From Acquisition Central, you can view upcoming future contracts and learn key insights on creating a strategic marketing plan. The site also provides contracting officer contact information.

An additional resource is the General Services Administration (GSA) Schedule Program. The GSA acts as the "purchasing store" for nearly $66 billion in federal spending, accounting for more than one-fourth of the government's total procurement dollars.

The Amex survey of small business owners found that getting on the GSA Schedule could be an important strategy for winning government business. Under the GSA Multiple Award Schedule Program, GSA establishes long-term, 20-year government-wide acquisition contracts with commercial companies, providing government buyers with direct access to more than 10 million products and services. This program accounts for more than $40 billion in sales every year.

Want to know how much the federal government is purchasing your products and services for? Explore the GSA eLibrary where thousands of GSA Advantage Pricing Catalogs are posted to help federal buyers with their procurement orders. Viewing these prices and services can be a valuable tool to determine your pricing strategy.

Seek out potential partners

An effective way many first-timers gain entry into the world of government contracting is to work as a subcontractor for a company that has been awarded a federal contract. To learn of opportunities with larger firms who have already won contracts, keep an eye out when perusing Fed Biz Opps. Any contract for more than $550,000 in products and services and $1 million in construction should have a small-business subcontracting plan.

Business owners can also search for potential teaming partners based on industry, geography and other specific attributes by registering on TeamingUSA.com. Once your company profile is complete and you are logged in, you will be able to search for potential teaming partners anywhere in the U.S.

Business owners that team or subcontract to procure federal contracts are far more likely to win those dollars. Compared with active small contractors overall, the survey found that small-business owners who employ teaming or subcontracting strategies win 50% more contracts.

Do your homework

Gaining entry into the world of government contracts can be complicated and time consuming, but by following the steps above and continuing to research and pursue opportunities, you'll be well on your way to landing your first federal contract.

Lourdes Martin-Rosa has over two decades of experience in helping small businesses navigate the procurement landscape. In addition to being an American Express OPEN advisor on government contracting, she is also the president of Government Business Solutions.

Source: http://www.forbes.com/2011/02/04/women-procurement-program-small-business-contract-forbes-woman-entrepreneurs-sales.html

Post-Recession Success: 7 Actions for Small Business Owners to Take Now

2011-02-24T21:21:00.000-06:00

Feb 18, 2011 -

Have you heard? We're slowly moving out of the worst financial crisis many of us have ever experienced toward an optimistic time of recovery and eventual growth.

As a small business owner, this is the time you've been waiting for. Now it's time to position you and your business for post-recession success by doing these seven things:

1. Invest in education

Without spending too much, invest now in any education you need to make your post-recession business a success. Attend seminars online and in person, read books and trade magazines, and make sure you're reading what's on the cutting edge in your industry.

2. Pay off debt

If you can pay off any debt, now is the time to do it. Taking on debt during a recession is common; however, now that the recession is lifting, don't add to it. Pay cash for everything you need. Put your credit cards in the freezer.

3. Go "Zen" on extras

Now that money may be flowing a little more, resist the urge to splurge on extras you don't need. Think before you add all the bells and whistles to your business or cell phone. Think before you buy new technology. Do you really need that Starbucks' latte twice a day?

4. Follow the market

Read the papers or watch the news. Know what is happening and stay on top of it.

5. Renew contracts

Have your new clients sign a long-term contract and your current clients renew or extend their contracts with you.

6. Hang on to your property

While it may seem like a good time to sell your home or business property, don't. At this moment in time, you won't get top dollar and may still end up losing money. Instead, begin projects that will improve the quality (and eventual selling price) of your home or office

7. Don't cut prices

Right after a recession, it is common for small business owners to think that cutting prices will help them attract more clients and customers. Don't do it. Keep your prices steady, while offering your customers a coupon or a rewards program, to reward them for sticking with you during tough times.

These are exciting times we live in. Finally, we're seeing evidence that the U.S. economy is starting to recover. Now is the time for small business owners to jump to action. Don't wait.

Susan L. Reid

Small Business Expert and Business Catalyst

Susan Reid brings the gift of inner vision and insight to spiritually conscious businesswomen ready to run their business confidently, effectively, and fully aligned with their deepest inner principles.

Twice award-winning author of "Discovering Your Inner Samurai: The Entrepreneurial Woman's Journey to Business Success, Dr. Susan revolutionizes the way women do business in the world through the transformational process called discovering your Inner Samurai.

Source: http://www.openforum.com/idea-hub/topics/managing/article/post-recession-success-7-actions-for-small-business-owners-to-take-now-susan-l-reid

3 Small Businesses to Watch in 2011

2011-02-04T15:59:00.000-06:00

There's no dearth of predictions, trends and watch lists this time of year. Here is my nomination of three small businesses that have been making the news recently, along with a few thoughts on what makes them noteworthy.

ICON Aircraft, Los Angeles

In 2004, the FAA introduced a dramatic change in regulations by creating the Light Sport Aircraft category, a pilot license requiring just half the 40 hours of flight time for a private pilot license. Niche created!

Shortly thereafter, in 2005, ICON Aircraft was launched by Kirk Hawkins, a graduate of Stanford Business School, accomplished engineer, former U.S. Air Force F-16 pilot, and long-time motorsport enthusiast.

ICON Aircraft’s sole purpose has been to bring the freedom, fun and adventure of flying to all who have dreamed of flight. One look at the stylishly elegant A5, and it becomes clear that ICON is fulfilling its purpose. The plane is amphibious, with foldable wings, and easily stored in your garage. The plane was designed, engineered and developed by famed Scaled Composites, which created such record setting projects as Voyager, Global Flyer, the X-Prize winning SpaceShipOne and Virgin Galactic’s SpaceShipTwo.

Want your own? Place a deposit by credit card online at the company's website.

Key success factors:

    * Great team: In addition to deep design talent, ICON counts IDEO's David Kelley, Mastercraft CEO John Dorton, and Boeing CEO Phil Condit among its advisory team.
    * Design simplicity: The A5 keeps gadgets and gizmos like dials and levers to a minimum, favoring intuitive and user-friendly design.

    * Quick reflexes: Recognizing the opportunity to fill a niche, the ICON founders moved quickly and gathered an incredible team.

Indie Energy, Chicago

Solar and wind power as renewable energy are all the rage. Except at Indie Energy, which has in four short years built a thriving business and leadership position around the neglected stepchild known as geothermal energy. Indie creates investment-grade geothermal systems with its innovative engineering, construction and metering technologies, and won the 2009 U.S. Department of Energy funding award for transformational technology.

To make a transformative impact for businesses and the environment, entrepreneur and CEO Daniel Cheifetz knew he needed to break old patterns and challenge conventional thinking. He recruited a diverse team of leaders that blend expertise from the worlds of technology, engineering, product development, construction, finance and business.

"Reducing the amount of energy used to heat and cool buildings is one of the most meaningful ways we can increase building energy efficiency, lower operating costs and reduce our carbon footprint," states the company's website. "While geothermal systems have been used in rural locations for decades, the technology did not exist to implement systems in larger commercial buildings and in urban areas, with proven return on investment."

Added bonus: Indie Energy's Smart Geothermal systems also make it possible to utilize American Recovery and Reinvestment Act incentives to make geothermal systems affordable for most buildings.

Key success factors:

    * Close collaboration: Indie systems designers and engineers work closely with other professional resources involved in each building project, from architects, engineers, general contractors, to owners themselves.

    * Leverage constraints: Indie pioneered the production-scale harvesting of geothermal energy in space-constrained, highly-structured and tightly-regulated environments. Their innovative drilling system allows drillers to effectively harvest clean, renewable geothermal energy in spaces as small as 100 square feet. Not only are Indie geothermal drills are much smaller than traditional drilling rigs (12 feet in length vs. a typical 40-foot drilling rig), but they are track-mounted and remote-controlled to navigate better in small spaces.
Omhu , New York City

Omhu is Danish for “with great care.” Omhu is three people: Susy Korb (President), Rie Norregaard (Creative Director) and Susan Towers (VP, Sales & Marketing), along with freelance support. Founded on the belief that life is imperfect and beautiful, Omhu offers groundbreaking designs to support people’s abilities as they change throughout life.

As Susy says, “We started Omhu after searching in vain for well-designed products for relatives and friends who needed help with simple tasks such as walking, bathing or reaching overhead. Pooling our collective experience in design and fashion, we’ve created a brand for people like us—caregivers who want more inspired and inspiring choices for the people they love.”

Omhu celebrates good design because it’s life-enhancing, and fun. By creating more exciting choices of things that help, Omhu hopes to help change the way people feel about aging and ability.

Key success factors:

    * Understand market dynamics: let's face it, everyone grows old, and more of us are living much longer.

    * Product availability: In addition to buying on their site, Omhu products will be widely available at retail.

    * Inspired design: Omhu taps the talents of folks like Allen Zadeh and Ted Muehling.

Add these eight success factors to your company's arsenal for 2011... if you haven't already!

Tags: the shibumi strategy, best practices, matthew may, 2011, success, small business

By Matthew E. May
January 21, 2011 -

Matthew E. May is the author of The Shibumi Strategy: A Powerful Way to Create Meaningful Change (Jossey-Bass, 2010), In Pursuit of Elegance: Why the Best Ideas Have Something Missing (Broadway Business, 2009) and The Elegant Solution: Toyota's Formula for Mastering Innovation (Free Press, 2006). Matt works with individuals, teams and companies to guide change through a focus on design thinking and problem solving. He spent nearly a decade as a fully retained advisor, master kaizen instructor and jishuken leader for Toyota, a company that implements over 1 million new ideas each year. Matt is a graduate of the Wharton School and The Johns Hopkins University, but considers winning The New Yorker Magazine Cartoon Caption Contest among his proudest achievements.

Groundhog Day: 10 Mistakes that Small Businesses Make Over and Over

2011-02-02T20:51:00.000-06:00

Feb 02, 2011 -

By Barry Moltz

In the movie, Groundhog Day, Phil, played by actor Bill Murray, is forced to live the same day over and over again until he learns where he is making lifelong mistakes.

Many small business owners are also doomed to make the same mistakes over and over and over again. Here are the top 10 mistakes that are repeated by small businesses and how they can be solved.

1. They focus on profit not cash.

We learned during the great recession that company financial statements can be pure fiction. Profit at the bottom of the income statement is meaningless if your business does not have the cash to pay its obligations. Your profit could be “stuck” in your accounts receivables, inventory, or work in process. Understand the cash flow statement to learn how "profitable” your business really is and how much cash it has to invest, save, or distribute.

2. They don’t diligently collect the money that is owed by customers.

Customers that do not pay aren’t really customers; they are collection problems. Have a strict process on how your business operates in this area. This includes setting mutually-agreed-to prices and payment terms, checking with the customer when your invoice arrives, and asking when it will be paid. If it is not paid on time, call to find out where it is. Remember, the squeaky wheel always gets paid first.

3. Lack of focus on what your business does.

Many entrepreneurs early in starting their company want to be all things to all people. They believe they should not turn away any type of business from any customer. However, the successful company focuses on solving one pain first profitably for customers. They don’t expand too quickly to solving other related problems. To build a strong company, get boring and narrow real fast.

4. Expanding too quickly by increasing fixed and overhead costs.

Many entrepreneurs hear that bigger is always better. After some initial success, they want to have more office space. This is only a way to “grow yourself broke." In order to grow profitably, keep as many expenses variable and available as possible. This will ensure that expenses only increase when sales grow at the same time.

5. Hiring the wrong people.

Many small business owners have big egos. They routinely hire the wrong people for all the wrong reasons. This includes employees that are friends, relatives, or just not as good as themselves. This comes out of a basic fear that they will be overshadowed in their business. It is critical to hire people that are complementary to your skills. The only way to build a profitable sustainable business is to find leverage with people and processes.

6. Not firing employees quickly enough.

Every business owner’s mantra needs to be “slow to hire and quick to fire." If a mistake was made in the hiring process, this will be evident in the first 30 days of employment. People have a hard time changing within a company. What is worse is that everyone knows who the non-performers are in the company and this holds the business back. Fire your non-performing employees today.

7. Knowing when to quit.

The most successful entrepreneurs know “when to hold them and fold them." Will Rogers said that “if you find yourself in a hole, the first thing to do, is stop digging.” It is time to shut down your company if you run out of your passion and cash. In this case, there truly is not a way or a reason to turn the business around.

8. Not focusing on marketing and distribution.

The biggest error in thinking for many entrepreneurs is that “if you build it, they will come." The reasoning goes that if “I build a better mousetrap," customers will automatically buy it. There could be nothing further from the truth. The most successful businesses execute a superior marketing and distribution strategy that finds the customers that have the money to buy the product that solves their pain. Unfortunately, the best products don't always sell the most.

9. Failure to systematically do marketing even while they have “too much work."

We actually can’t sell anything to anyone; we just need to be there when people are ready to buy. This is why having a systematic and constant method to building relationships with customers, prospectors, influencers, and connectors is critical. Trust is built over a long period of time. Build relationships by consistently giving value freely. As a result, when a prospect or their friend has a problem your company can solve, they will call you.

10. Not consistently seeking help.

Small business owners are a stubborn group. We want to do it alone and not ask for help, until it’s too late. Get one or more mentors for your business early on. This can come from hired professionals like bankers, lawyers, or accountants, or organizations such as SCORE or SBDCs. Better yet, join a mentor group and talk to other business people who have been where you are right now. You will be surprised how many will volunteer their help.

What other mistakes do you think small business owners make over and over again?

Barry Moltz

Small Business Speaker, Consultant, and Author Barry Moltz gets business owners growing again by unlocking their long forgotten potential. With decades of entrepreneurial experience in his own businesses ventures as well as consulting countless other entrepreneurs, Barry has discovered the formula to get stuck business owners out of their funk and marching forward. Barry applies simple, strategic steps to facilitate change for entrepreneurs, and get’s them growing their business once again.

Small-business advice: How to make more international sales

2011-01-17T22:22:00.000-06:00

By Karen E. Klein
January 3, 2011

Dear Karen: I want to make more overseas sales in 20011. Do I need a foreign distributor?

Answer: It certainly helps, said Kathleen Brush, an international business consultant based in Seattle. "Finding a good local partner in the country you're targeting will help you understand business and legal details you would have tripped over," she said.

Brush recommended using the Gold Key Matching Service offered by the U.S. Commercial Service. "They do credit checks, criminal checks, they walk you through the distribution process and advise you about what you need to look for" in any country where you want to start selling, she said.

It is important to take your time and make sure you have found a good distributor before you ramp up international sales. "Small businesses often make mistakes because they are anxious and they want to make money right away. Be patient and get everything set up properly before you start," she said.

• Turning holiday customers into regulars

Dear Karen: My business was up over the holidays. How can I extend that momentum into this year?

Answer: Create incentives in the form of gift cards or discounts that encourage customers to return in 2011. Encourage those who are redeeming gift cards to reload them.
"Offer a bonus for customers who reload their gift cards after redemption. For instance, a free drink with a $25 reload or a $5 bonus on a $50 reload," said Barbara Roeber, senior vice president at electronic payment firm First Data.

Small-business questions? E-mail Karen at smallbiz@latimes.com.

5 Steps to Start a Business and Make it Work

2011-01-17T13:22:00.000-06:00

Jan 10, 2011 -

I am often asked if I have found a secret -- or at least a consistent answer -- to successfully building businesses over my career. I've spent some time thinking about what characterizes so many of Virgin's successful ventures and, importantly, what went wrong when we did not get it right.

Reflecting across 40 years I have come up with five "secrets."

1. Enjoy what you're doing.

Because starting a business is a huge amount of hard work and requires a great deal of time, you better enjoy what you're doing. When I started Virgin from a basement flat in West London, I did not set out to build a business empire. I set out to create something I enjoyed that would pay the bills.

There was no great plan or strategy. The name itself was thought up on the hoof. One night some friends and I were chatting over a few drinks and decided to call our group Virgin, as we were all new to business. The name stuck and had a certain ring to it.

For me, building a business is all about doing something to be proud of, bringing talented people together and creating something that's going to make a real difference to other people's lives.

A businesswoman or a businessman is not unlike an artist. What you have when you start a company is a blank canvas; you have to fill it. Just as a good artist has to get every single detail right on that canvas, a businessman or businesswoman has to get every single little thing right when first setting up in business in order to succeed. However, unlike a work of art, the business is never finished. It constantly evolves.

If a businessperson sets out to make a real difference to other people's lives, and achieves that, he or she will be able to pay the bills and have a successful business to boot.

2. Create something that stands out.

Whether you have a product, service or a brand, it is not easy to start a company and survive and thrive in the modern world. In fact, you've got to do something radically different to make a mark today.

Look at the most successful businesses of the past 20 years. Microsoft, Google and Apple, for example, shook up a sector by doing something that had never been done and continually innovating. They are now among the dominant forces.

3. Create something that your employees can be proud of.

The people on your team are your biggest assets.

4. Be a good leader.

As a leader, you have to be a really good listener. You need to know your own mind but there is no point in imposing your views on others without some debate. No one has a monopoly on good ideas or advice.

Get out there, listen, draw people out and learn from them. As a leader you've also got to be extremely good at praising people. Never openly criticize people or lose your temper, and always lavish praise on your colleagues for a job well done.

People flourish if they're praised. Usually they don't need to be told when they've done wrong because most of the time they know it. If somebody is not working out, don't automatically throw him or her out of the company. A company should genuinely be a family. So see if there's another job within the company that suits them better. On most occasions you'll find something for every single kind of personality.

5. Be visible.

A good leader does not get stuck behind a desk. I've never worked in an office -- I've always worked from home -- but I get out and about and meet people. It seems like I'm always traveling, but I always have a notebook in my back pocket to jot down questions, concerns or good ideas that occur along the way.

If I'm on a Virgin Atlantic plane, I make sure to get out and meet all the staff and many of the passengers. If you meet a group of Virgin Atlantic crew members, you are going to have at least 10 suggestions or ideas. If I don't write them down, I may remember only one the next day. Get out and shake hands with all the passengers on the plane, and again, see if anyone has a problem or suggestion. Write it down, make sure that you get their names, get their e-mail addresses, and make sure the next day that you respond to them.

Of course, I try to make sure that we appoint managing directors who have the same philosophy. That way we can run a large group of companies in the same way a small business owner runs a family business -- keeping it responsive and friendly.

When you're building a business from scratch, the key word for many years is "survival." It's tough to survive. In the beginning you haven't got the time or energy to worry about saving the world. You've just got to fight to make sure you can look after your bank manager and be able to pay the bills. Literally, your full concentration has to be on surviving.

Obviously, if you don't survive, just remember that most businesses fail and the best lessons are usually learned from failure. You must not get too dispirited. Just get back up and try again!

Richard Branson is the founder of the Virgin Group and companies such as Virgin Atlantic, Virgin America, Virgin Mobile and Virgin Active. He maintains a blog at www.virgin.com/richard-branson/blog. You can follow him on Twitter at twitter.com/richardbranson. To learn more about the Virgin Group www.virgin.com.

Source: http://www.openforum.com/idea-hub/topics/managing/article/5-steps-to-start-a-business-and-make-it-work-richard-branson

Small Business Isn't Celebrating Health-Care Reform

2011-01-10T23:11:00.000-06:00

Evidence that the new health-care law has increased coverage and brought down costs has not materialized yet, says Scott Shane

By Scott Shane

In March, Congress enacted the Patient Protection and Affordable Care Act (PPACA), a 2,000-plus-page law designed to dramatically change how health insurance is provided in this country. The law might have been more aptly named the Small Business Health Insurance Act because its effects—both good and bad—will fall most heavily on small companies.

That's because we have an employment-based health-care system and small businesses are less likely than large ones to provide employee health insurance. In 2010, the Kaiser Family Foundation, which keeps tabs on health insurance coverage, reported that 99 percent of businesses with 200-plus employees provided workers with health insurance, as compared with only 68 percent of businesses with 3 to 199 employees.

Given these numbers, it's fair to focus on small businesses when looking at the impact of the new law.
While it's only been eight months since President Obama signed the PPACA into law, and many of the law's provisions won't kick in for several years, advocates of the legislation argue that it is already benefiting small businesses. Under the new law, the owner of a very small business can obtain an income tax credit against the cost of employee health insurance premiums. The Wall Street Journal reported late last year that "the number of small businesses offering health insurance to workers is projected to increase sharply this year … a shift that researchers attribute to a tax credit in the health law."

Tax Credit Incentive?

Many of the law's supporters are basing this assessment on data from the Kaiser Family Foundation, which found that the percentage of firms with three to nine employees offering insurance jumped from 46 percent to 59 percent between 2009 and 2010, driving the share of all firms offering health benefits from 60 percent to 69 percent.

However, the tax credit isn't responsible for this change. Sellers of small group policies report little change in demand for employee health insurance policies among small business owners. The sellers explain that compensation limits for employees make few small businesses eligible for the credit and that the low value of the credit does little to get business owners to provide employee health insurance.

The Kaiser Family Foundation reports that the uptick in the share of firms offering employee health insurance is an artifact of high failure rates of the most vulnerable small businesses (which tend not to offer employee health insurance) during the economic downturn. With more of the companies not providing insurance out of the sample, the share of those providing insurance has increased for purely mathematical reasons.

Moreover, other surveys show the opposite trend. American Express Open Small Business Monitor, which surveys approximately 700 small business owners with fewer than 100 employees twice a year, reported a drop in the share of small businesses offering employee health insurance from 66 percent in March 2009 to 45 percent in September 2010.

Premium Costs

Another claim is that the new law is bringing down health insurance premiums. Even if the law might, possibly, maybe, at some time in the future, bring down premiums, it hasn't done that yet. Trade publication Employee Benefit News explains that private companies' spending on health insurance is expected to have increased by 4.3 percent in 2010, a rise from the 2.5 percent expected the month before the PPACA was passed because of changes in COBRA policies.

The passage of the law also hasn't stopped companies from pushing a higher share of insurance costs on to employees. From 2009 to 2010, the Kaiser Family Foundation data show that the average employee share of health insurance coverage for a single individual rose from 13.9 percent to 15.1 percent. Moreover, most of the increase in worker contributions was at companies with fewer than 200 employees, which saw single-coverage worker contributions jump 38.4 percent over the past year, from $625 to $865 per year.
Given these patterns, has the PPACA done anything yet to change small business owners' health insurance costs or willingness to cover employees? The answer is no, largely because most of the major provisions of the plan—coverage mandates and penalties—don't kick in until 2014.

So why am I challenging the claims of the law's cheerleaders? Because its effect so far has been a net negative. That's because many business owners have formed negative expectations of the future effects of the law. For instance, a survey of 459 businesses conducted by Fidelity Investments in June revealed that 49 percent of small employers expect the new law to increase their costs. Many small business owners are responding to these expectations by passing on health insurance costs to employees, by changing the type of insurance they offer, and by planning to drop employee health insurance coverage in the future. (The same Fidelity survey reports that 22 percent of small business owners expect to drop health insurance in response to the law.) In short, any "evidence" that the PPACA has cut small business employee health insurance costs or increased coverage isn't real.

Scott Shane is the A. Malachi Mixon III Professor of Entrepreneurial Studies at Case Western Reserve University.

Management Flubs Made by Rookie Bosses

2011-01-04T22:25:00.000-06:00

Some people start their own business to escape a bad boss. Albert Ko became one after launching his.
The owner of DealPerk LLC, a year-old coupon website in Irvine, Calif., Mr. Ko admits that he developed a habit of shouting at his three employees whenever they made mistakes, which created a toxic work environment.

"They were scared," says the first-time entrepreneur, who's since changed his approach to discipline. He now pulls offenders aside to discuss what went wrong and offers suggestions on how they can improve. "I could see that it hurt morale."

Being the boss is a difficult job for many business owners to master. Their expertise is typically in the products or services that they sell and not supervising others. As a result, entrepreneurs are often guilty of handling employee mishaps poorly—or for allowing such blunders to occur in the first place.

"They're in business because they have talent in their field, but it doesn't mean they're capable managers," says Rod Means, a district director in San Diego for SCORE, a nonprofit small-business mentoring and training organization.

The root of the problem is that entrepreneurs see the workplace differently than most workers, says Wayne A. Hochwarter, a professor of management at the College of Business at Florida State University. "When you're running your own place, you've got everything vested in it. It's an emotional thing," he says. But for the average employee, "it's just a job, and sometimes not a well-paying job."

Here's a look at other management mistakes entrepreneurs confess to having made—and how to avoid them:

Failing to check for competence. Jimmy Tomczak, founder of Paper-Feet, a sandal manufacturer and retailer in Ann Arbor, Mich., says an intern once incorrectly assembled 25 of his company's products, costing the business $500 in retail sales. He had showed her what needed to be done but failed to check if his instructions registered clearly. "Now I make sure that new hires can demonstrate competence before letting them go on their own," he says.

A simple way to prevent costly errors is to take the time to patiently teach employees how a job should be done, says Dr. Hochwarter. Too often entrepreneurs hire people without providing clear job descriptions or training, and instead leave workers to their own devices, which can lead to confusion and conflict, he says.

Lying to avoid hurt feelings. Ethan Fieldman, co-founder of Group Interactive Networks Inc., a software company in Gainesville, Fla., says he once severed ties with a contractor whose job performance wasn't up to par by telling him that the firm didn't have any more assignments available. But afterward, Mr. Fieldman says he and several employees at the company began regularly receiving emails from the laid-off contractor asking if any new jobs had opened up. It's been six years and Mr. Fieldman says the emails continue to spam their inboxes.

Though it can be awkward to deliver bad news, managers should be honest about why they're dismissing someone, says Daniel M. Murphy, co-founder of the Growth Coach, a small-business-coaching franchise in Cincinnati. "Giving the truth is good for the business and for the development of that person," he says. Any sort of lie "could spill down throughout the organization," resulting in the spread of false rumors.

Blindly trusting workers. When Wendy Maynard co-launched Kinesis Inc., a Portland, Ore., Web-design and marketing firm, in 2000, she says she and her business partner didn't create an employee handbook or even verbally express how they expected their staff to behave. "We made a big assumption that our professional norms were other people's professional norms," she says. Yet some of their first hires came to the office wearing low-cut jeans with underwear and tattoos showing. One staffer worked on freelance assignments for other companies while on the clock. "We quickly had to change things," Ms. Maynard says.
Entrepreneurs should define in writing what kind of behavior is allowed and what isn't in the workplace, says Janice Brown, founder of Brown Law Group, a San Diego law firm that specializes in employment litigation. The effort will not only deter employee misconduct, but also help a company fight wrongful termination lawsuits or false unemployment claims by former employees, she says.

Giving mixed signals. Hajo Engelke, founder of Custom Choice Cereal LLC, an online retailer in Durham, N.C., normally wears a t-shirt, shorts and flip-flops to work. Last summer, he teased a new recruit for showing up in a suit and dripping with sweat. Yet the very next day, Mr. Engelke walked into the office dressed in just the kind of formal outfit he criticized his employee for wearing the day before. (The reason: Mr. Engelke had a meeting with a potential investor, which he neglected to mention to the new recruit.) Upon seeing Mr. Engelke dressed this way, the employee's "jaw dropped," recalls the entrepreneur. "Every day after [the employee] would ask what he should wear to work."
Entrepreneurs need to remember that workers look to them for cues on to how to behave, warns Mr. Murphy. "As the owner, you are in charge of setting the tone for the environment and the culture," he says. "What employees want more than anything is clarity of what are the rules and expectations."

Write to Sarah E. Needleman at sarah.needleman@wsj.com

SBA Loans from Jobs Act

2010-10-12T23:14:00.000-05:00

One Week Later, Nearly 2,000 Small Businesses Approved for SBA Loans Due to Jobs Act

Posted by SBA Administrator Karen Mills on October 05, 2010 at 04:04 PM EDT

Late yesterday, just a week after President Obama signed the Small Business Jobs Act of 2010, nearly 2,000 small business owners who had been waiting for SBA-backed loans had been approved and will soon have those loan funds – totaling nearly $1 billion – in hand. That’s a quick turnaround, and it’s an example of this Administration’s deep commitment to giving entrepreneurs and small business owners the support they need to grow and create jobs.
Here’s how we made it happen.
After the Recovery Act passed last year, SBA increased the guarantee and reduced the fees in our top two loan programs. That two-part formula worked. We saw a significant rebound in SBA lending, helping unlock much-needed capital for small businesses. All told, SBA took just $680 million in taxpayer dollars and turned it into nearly $30 billion in lending support to about 70,000 small businesses. That’s a strong bang for the taxpayer buck.
Even though Congress renewed funding for the increased guarantee and waived fees several times, SBA had to stop making these loans in May when the agency’s authority for the higher guarantees ended. Shortly thereafter, the funds for fee waivers were used up. As a result, we had to start putting applicants on a stand-by waiting list – a “queue” – hoping that these successful loan enhancements would once again be available.
Over the summer, that queue grew to include more than 1,000 entrepreneurs and small business owners. The Administration continued to push for Congress to pass a small business jobs bill, knowing that these small businesses – and many more – were ready to start growing and creating jobs as soon as they got their SBA loan.
Finally, last week, with the stroke of the President’s pen, the SBA got $505 million more for these effective and proven enhancements, which will support an estimated $14 billion in new lending.
As of late yesterday, just one week later, we had pushed out nearly 2,000 loans – clearing out all the loans in the queue. And, today we’re moving ahead with approving thousands more SBA Jobs Act loans. With each loan, we’re putting capital in the hands of America’s entrepreneurs and small business owners so they can continue to drive economic growth and create jobs in communities all across the country. And this is just one of the many benefits in the Small Business Jobs Act, which can now deliver $55 billion in tax cuts and additional assistance for businesses that need loans.

Karen Mills is Administrator of the Small Business Administration

Small Business Advice Daily: How to Become a Facebook Marketing Star

2010-02-14T02:27:00.000-06:00

Small Business Advice Daily: How to Become a Facebook Marketing Star

Marketing Flyer for Small Business

2010-01-22T16:27:00.000-06:00

This marketing flyer / letter is from a real person providing personal and concierge services. If you live in the Chicago area - Jody's contact information is at the bottom. It is also a classic example of marketing ones product and/or services.

Your Left Hand

There are times in everyone’s life when it is just impossible to get everything completed on your or your family members ‘

“To-Do List”. Let me help make your day more enjoyable and manageable by offering my Personal Assistant/Concierge Services providing the following services:

Grocery shopping, personal shopper and gift shopping

Organize your household, office, closets, personal needs, or just help dispose of unnecessary items in your home

Run errands, banking deposits, pharmacy, library, video store, dry cleaners, or

Post Office to name a few

Make doctors’ appointments

Pay bills and file and track insurance claim forms

Personal and Business correspondence including tracking special occasions and sending cards out

Locate qualified repairmen and services

Wait for installers and deliveries

Make travel arrangements, assist with parties and help plan events

Holiday planning, gift wrapping and delivery

Any other services that may be desired

I am committed to assisting you in an efficient manner so you can focus on the more important things in life.

Jody Nesva,

847-208-1227

Extra Money from Stock Dividends

2010-01-15T10:38:00.001-06:00

The last year has been personally the most difficult financially we've ever had. Between laid off from my job last January (and only a few contract jobs since), a fire in a rental property, a new furnace, and higher than usual medical costs, we are rapidly burning through our savings. Unfortunately, despite post-graduate education and many years of work experience, I've been unable to land a position. I'm overqualified for the basic ones - employers know I'll cut and run if something better comes along - and I'm not specialized enough for what the market demands right now.

What to do? My wife doesn't make much, I just lost my health insurance, my unemployment will run out shortly, and we've cut all fat from our budget. We basically live on macaroni and cheese with tuna. We are considering selling one of the two rental units - that would at least give us a little breathing room - but dislocate one of our daughters and cause family friction.

I've got some small investments outside of IRAs (don't want to touch those) and have decided they can provide some income by either selling for cash or by reallocating from growth to income. As a quasi-knowledgeable investor, I feel comfortable in researching and doing this. One of my better sources for information is The Motley Fool's web site. Do a little poking around there and you'll find a list of the S&P 500 highest 50 dividend stocks. Many are common recognizable names that pay regular dividends to their shareholders. Open up an account at a low-cost broker such as Sharebuilder, buy some stock, and have some extra income, via dividends, flowing in.

A word of caution to all: DO YOUR HOMEWORK FIRST BEFORE INVESTING. I am NOT a registered financial planner, broker or claim to be so. Investing involves a certain level of risk, as 2008 clearly demonstrated. But these are difficult times and investing and dividends can be a viable option. Also, dividend income typically means taxes too, so consulting your accountant is encouraged.

Luck to all in 2010, may all our ships come in to port!

- AJ

Free Office Software

2010-01-06T10:17:00.001-06:00

WARNING: Read this article only if you want to save money on basic software for your business.

For those of us involved in small business ventures, expenses are an ongoing concern. One easy way to save hundreds to thousands of dollars in software expenses is to take advantage of the increasingly common and available Open Source software.

You may have heard of Linux or Gimp (a PhotoShop-like program) or MySQL (database) – each of these is an General Purpose License (FREE) product that rivals its paid counterparts. While some of these products are preferred by more advanced users, the most common programs used are discussed below.

We've mentioned in previous postings the value of OpenOffice software vs. shrink-wrapped, over the counter products such as Microsoft Office. I realize that almost everyone is familiar with Word, Excel, PowerPoint, Access and the common user interface.

Does Word's interface resemble the above? What you see is OpenOffice's Writer product. All common features and interfaces are much like their counterparts in the MS Office suite.

“The most widely used alternative to Microsoft Office is an open-source program called OpenOffice, which is sponsored by Sun Microsystems. OpenOffice is an entire office collection that consists of a word processor, spreadsheet, presentation, drawing, database, and some other applications. It also features Base as an alternative to Access, along with two additional applications - Draw and Math.

OpenOffice tries to match all the major features of Microsoft's program. OpenOffice can read files created in Microsoft Office, and it can create new files that can also be opened by Microsoft Office or specific files that can only be open in OpenOfficeOrg. Therefore, you could take home spreadsheets created at work using Excel, and edit them on your home computer without having to buy Office, or you can create Microsoft Office files at home and take them to work.” ¹

The cost for this? FREE. Read that line again: the charge for these necessary programs is NOTHING, NADA, ZILCH, ZIP. FREE.

The latest versions of the product include compatibility with Office 2007 suite and XML support. Multiple languages are also a feature available in all versions of OpenOffice.

One drawback of OpenOffice is lack of an email client and organizer similar to Outlook. Other free programs are available for email and will be discussed in a future post.

Convinced yet? For more information and to download the products, go here:

http://www.soft32.com/Download/Free/OpenOffice_for_Windows/4-125111-1.html

http://www.openoffice.org/

By the way, this entire article was written using Open Office Writer.

- AJ

Disclaimer

This article is the opinion of the author and Thesmallbizpro. Neither the author nor Thesmallbizpro is affiliated with Sun Microsystems or any other open source developer or distributor, and receives no pay or compensation in any way, shape or form for this article.

Reference

1 http://www.soft32.com/download_125111.html

Nofollow Questions?

2009-12-17T11:44:00.000-06:00

Nofollow, an HTML attribute, was designed by in early 2005 Google’s Matt Cutts and Blogger’s Jason Shellen and originally intended to stop comment spam on blogs.* Nofollow was NOT meant to block access to content or block search engines spiders from indexing sites and content.

Search engine optimization professionals started using the NoFollow attribute to control the flow of PageRank within a website, but google since corrected this error, and any link with NoFollow attribute decreases the PR that the page can pass on. This practice is known as PageRank sculpting. This is an entirely different use than it was intended originally. NoFollow was designed to control the flow of PageRank from one website to another.*

However, while search engines supporting the attribute exclude links that use the attribute from their ranking calculation, search engines treat the NoFollow attribute a little differently.

Google states that their engine takes "nofollow" literally and does not "follow" the link at all. However, experiments conducted by SEOs show conflicting results. These studies reveal that Google does follow the link, but does not index the linked-to page, unless it was in Google's index already for other reasons (such as other, non-nofollow links that point to the page).
Yahoo! "follows it", but excludes it from their ranking calculation.
Bing respects "nofollow" as regards not counting the link in their ranking, but it is not proven whether or not Bing follows the link.
Ask.com ignores the attribute altogether.*

While NoFollow has supporters and detractors, no solid evidence exists on its potential harm or usefulness. In general, the consensus tends to favor the use of NoFollow on internal links pointing to user-controlled pages. Our opinion is to implement NoFollow; if negative results ensue, the process can easily be reversed.

A simple tutorial we found for implementing NoFollow is found here: http://webstractions.blogspot.com/2007/05/removing-nofollow-from-blogger-styled.html.

* (Source: http://en.wikipedia.org/wiki/Nofollow)

- AJ

How do I start this business thing?

2009-12-10T18:13:00.000-06:00

You've been laid off. Downsized. Replaced. Terminated. Your job moved to Pago Pago.

Or you're just sick and tired of the rat race and for your health and sanity, need to do something different.

Now.

Here are some simple steps to get started on the path.

- Start a personal budget immediately
- Eliminate those extras - the daily $5 lattes, the newspaper, weekly mani's and pedi's, eating out
- Defer payments on what you can - student loans, some insurance policies
- Determine your minimal living expenses and build in a 10% cushion
- Live within the budget you created

Now that you have an idea of what is needed to survive, start the process.

- Take a mental inventory of your skills and experience
- Connect with your network of friends, family, acquaintances, and industry contacts
- Ask yourself: What gets me up in the morning? What drives me?
- Do some research on your passion on the Internet, at the library or local community colleges
- Find your market niche

Ask if a market exists for your skills and passion. Do they fit together? If not, determine where the gaps are. Lack of skills? Take a class at a community college. Too few contacts? These are easily made through networking groups, churches, and social networking sites like Twitter and Facebook.

Start to write a simple business plan - nothing complicated - just enough to maintain focus. Business plans are living, breathing documents and will change as conditions do.

Obtain a taxpayer ID number from the IRS web site, if required. Sometimes a social security number is adequate. For more information, here is the direct link to the IRS site: http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html.

Begin your marketing campaign by determining an apt name for the business, a logo, and a catchy and relevant tag line. Nothing more is needed initially.

Register an Internet domain name using the business name if possible. If not, variations such as .net or .biz instead of .com or using '-' in the name are good substitutes. You may not need a web site immediately, but plan for the future and secure the name. Domain names can be purchased at a number of web sites including GoDaddy.com, netsol.com or register.com. At the same time, create a Twitter and Facebook account too. LinkedIn is another popular consideration. Be consistent using the same name on all accounts. Email accounts are a must as well. Google, Yahoo, and Hotmail all provide free email accounts.

Register your business - http://www.bizfilings.com/ is a good place to start - set up the accounting system - Intuit.com has a free basic package - and get whatever (if any) business insurance is needed. We addressed insurance coverage in an earlier article. If the business needs registration, bonding or licensing, ensure that is completed prior to launch.

Get business cards with your name, company name, tag line, logo, etc. Cards can be customized at Staples, OfficeMax or any office supply store. A good source for free office products including pens, business cards, checks and more is VistaPrint. Always have cards on hand to pass out. Always! Remember, you are marketing a product or service and need to take advantage of every networking opportunity.

Determine your pricing structure, the cost of your product or service, and how the idea can turn a reasonable profit. Test market the idea. Use your friends and family as guinea pigs. Take this time to work out kinks in the process and make perfect your vision. When gaining feedback, use a written form for each tester and compare results to discover what may be a common (and major) issue or concern. Make the needed corrections and prepare for launch.

Write and distribute a press release. Depending on the nature of the market and product, this may involve signage, postings, adds or press in the local paper or an Internet release. Prweb is a well-known and respected Internet press agency. Ensure that your phone, fax, and email are working and the response process is timely and consistent. Customer service really counts here, especially so in the early stages.

The business is now off and running. Prepare for the unexpected, good or bad. If the research and preparatory work was done correctly, you will be pleasantly surprised by the results. You may even need to hire additional help to keep up with the overflow. We provide some ideas for inexpensive labor in an earlier article posted on this blog.

And finally, check back at thesmallbizpro blog for updates, tips, money saving ideas, and general information. Feel free to leave a comment or ask a question. We'll do our best to provide answers.

May your future be bright and successful!

- AJ

Twitter Stats

2009-12-10T17:17:00.001-06:00

Shame on me for this - I inadvertently left out our Twitter statistics in the web site update post .

We can also report a fairly successful foray into Twitterdom. Considering none of the group's four partners had any experience with Twitter prior to its launch in late October or early November, we are very pleased that we've gained 850 followers or so as of November 30. Talk about the blind leading the deaf and mute, that's us for sure. Much time has been spent learning the ins and outs of Twit-speak and forming relationships. For those of you that spent time on our site, we thank you and look forward to a strong future together. And for the newbies, we welcome you with open arms and ears. We want to provide what information and services we can to make your lives easier. Just ask and we'll do the homework for you.

Thanks again and warmest wishes for this Holiday season!!!

- AJ

Update on site progress

2009-12-10T16:51:00.000-06:00

Last week, thesmallbizpro team held its monthly meeting and recapped progress to date. With satisfaction, we can report the following for the period Oct 1 to Nov 30, 2009, even though this blog and our Twitter accounts weren't activated until sometime during the aforementioned period. (And we are novices at social networking as well!)

For the web site - http://www.the-small-biz-pro.com: 192 visits with 714 page views and an average time on site of about 3 minutes.

For this blog - http://thesmallbizpro.blogspot.com: 211 visits with 596 page views and an average time of more than 6 minutes on the site.

We made a whopping $.37 from Google Adsense and about $2.40 from the Amazon affiliate program.

These statistics aren't bad, considering we used no press release, started the Amazon program sometime mid-November, and were slow to adopt keywords and meta tags, etc. And no Facebook account either!

Can we say our project has been successful to-date? Yes, I believe we can say that. We've proven that we can grow a successful web site and blog simply by providing good content and effective social networking.

Friends take note, if we can do this, so can you!!! And that's what we're here for: to provide you with a real view of options, available resources, and our experiences with them.

- AJ

Manager vs. Leader

2009-12-07T13:22:00.000-06:00

"Managers lead with authority. Leaders manage with respect." - D Shaw

This concept remains unchanged for eons. Managers often use authority and often use punitive or reward power to lead teams. This military style of managing can be effective and even necessary under certain circumstances, but too often is used inappropriately in corporate settings.

During difficult economic periods, employees are often stressed and concerned about maintaining their positions, income, and lifestyle. The additional stress added by authoritative managers often leads to health problems, reduced productivity, and a negative attitude toward the workplace. This is usually not a formula for a successful operation.

In contrast, the business manager that leads by virtue of respect from subordinates - not of position, but of personality - tends to be a positive influence and gains greater cooperation and productivity from a team.

As a small business manager or owner, one must decide which of these styles is appropriate and desirable for the situation and environment. For instance, a retail store facing heavy volume periods (e.g. Christmas season), may require a more authoritative style to accomplish results. Ideally, the manager has developed repoire and respect during slower times, thus limiting the need for managing by authority.

Happy Holidays!

- AJ

What is your link number?

2009-12-04T17:34:00.002-06:00

Link building - building up the number of links coming to your web site from other sites - is a lifeline for any online business or any entity with a web presence. Links are one of the key factors in SEO (search engine optimization) and by extension, page rank, as indicated by Google. Building these links can be as important an activity as preparing the content for your site. Great to have good content, but if no one sees or finds it, what is the purpose?

I read an excellent article on web marketing by John Eberhard at http://www.realwebmarketingblog.com/. He lays out in very basic terms how to determine the number of links to a site, what the numbers should be, and how to achieve those results.

The process for calculating the number is simple: Bring up Google in a browser and type in your URL like this:
“yourwebsiteaddress.com” –site:yourwebsiteaddress.com in the search box and click the Google Search button. Make sure you include the quotes, a space, a dash, the word 'site' a colon and the site address again.
For example, this blog's entry as below:

"thesmallbizpro.blogspot.com" -site:thesmallbizpro.blogspot.com

What results is a listing of the sites currently linked to the your (or any) web site or blog. The number can be depressingly small or wonderfully large. Eberhard suggests a minimum of 1000 links - less means link building needs major attention. The optimum number in Eberhard's opinion is 3000-5000 or more. What you can also derive from this data is the quality of the links coming to your site. Low-ranked or seldom seen sites at the top of your list are an issue and will not help your cause to gain more site or blog traffic.

In the next article, I'll reveal some tricks for building those links.

- AJ

Zoho Productivity & Collaboration Applications

2009-12-03T15:40:00.001-06:00

"Zoho is a suite of online applications (services) that you sign up for and access from our Website. The applications are free for individuals and some have a subscription fee for organizations." (www.zoho.com/zoho_faq.html#1)

Aside from the free versions offered to individual users, Zoho offers a wide variety of online applications for individuals and business users. The online nature of Zoho allows users to access their Zoho data from any computer in any location (provided an Internet connection exists) at any time. No more carrying laptops around, worry about airport security, theft, or when the company tech will fix your computer.

Zoho offers a full range of standard office software, productivity, and collaboration tools: e-mail, word processor, spreadsheets, database, conferencing, project software, invoicing, and much more. Zoho even offers shared calendaring, a BI (business intelligence) service, and online HRIS system!

For those that need or want to continue to use Microsoft Office products, Zoho offers a "plug-in" (small application by download) for any of the programs in the Office suite. Further, Zoho supports all the standard office formats including .doc, .xls, and .ppt as part of its offering. Zoho is also available for many mobile devices and up to 30 languages, depending on the application.

Regarding security, Zoho boasts of multi-level protection from disaster-rated data centers to biometric access for its employees, multiple firewalls and anti-malware scanners running 24x7. Product support is available via blog, user forum or 24x7 monitored email.

Zoho's pricing structure is built on per application, volume, and complexity model. The individual packages - all of the offerings - are always free, and the business packages cost $5 a month per user starting with the 11th user. The first 10 users are free. Package discounts may be available for larger groups and for non-profit organizations.

With a professional and user-friendly interface, Zoho's WYSIWYG products are convenient, affordable, and everything a small business needs to get up and running quickly. This product is recommended and worth a look or test trial.

Create & Collaborate with Zoho

- AJ

Home Office Tax Deductions

2009-12-02T10:03:00.000-06:00

If your home doubles as your office, many options exist for taking legal advantage of the tax code. Recent changes in the law benefit workers that use the home as an administrative base even if actual 'work' is done outside of the home.

- Document, document, document. Record all deductible items including: computers, office equipment, furnishings, pro-rated utility bills, rent, telephone costs, and even homeowners insurance and association fees.

- Discus with you tax adviser the option of whether taking a depreciation option for office space is a viable option (or not).

- Meet with your adviser on a scheduled basis. Meetings may take place quarterly, annually or more frequently, depending on your circumstances. These analysis and review meetings will help ensure that you are taking the options allowed.

The following web sites provide useful information and may help answer common questions:

- www.toolkit.cch.com, the web site of CCH Inc.,an Illinois business information service.

- www.irs.ustreas.gov, the IRS web site and download IRS Publication 587, Business Use of Your Home.

- AJ

Tax Tips

2009-12-02T09:40:00.000-06:00

As 2009 draws to a close, taxes take on greater importance. Remember all those expenses and costs incurred during the year? Do you have a record of those? Have you accounted for all revenue generated? Are you taking all the deductions you are entitled to as a small business? Do you have employees or contract workers and are their year-end forms in the works? These questions and many others are vitally important and in some cases, a legal obligation.

Here are some tips to help you along the 'taxing' path:

- If you haven't already, consultant an accountant or tax adviser. This is especially important for start up companies and will save time, grief, legal problems, and quite possibly save you money.

- KEEP GOOD RECORDS. This is the single most important issue that is overlooked and disregarded. Nothing is worse than trying to find receipts (if you kept them) in some random paper pile on your desk.

- Pay estimated taxes (federal and state) during the year, probably on a quarterly basis. The tax adviser you consulted in the first step will recommend an appropriate strategy for each situation. Nothing is worse than a huge tax bill at the end of the year.

- Discuss any special deductions you are entitled to. These many include home office deductions, charitable contributions or work, self-employment taxes, and health insurance deductions, among others.

Taxes do not have to be a major headache, provided the planning and records are in place and appropriate people are part of your business team. Remember, Big Brother is watching you!

- AJ

New blog layout

2009-12-01T19:17:00.000-06:00

You've probably noticed the change in the format of this blog. Basically, I thought the pages were too cluttered with ads and the content was lost in the mix. This page is intended for you - not for making money via Google or Yahoo. Those are only tests to see if money can really be made via affiliate referral and Adsense (more on this in another post).

We've been quite pleased with the number of visitors to our blog - several hundred unique over the past 30 days - without a press release of any kind. Simply using Twitter and providing solid content has generated a good following; for that, we thank you very much.

Of course, this site is a community oriented site and we want to hear your opinions and get your feedback on our blog, web site - www.the-small-biz-pro.com - content, layout or anything you wish to comment on.

We will continue to provide you the best information we can find (or links to) so you can go about the business of running your business! We'll provide the background stuff for you to use - we want to make you successful.

To your success!

- AJ

Web sites with free stuff and coupons!

2009-12-01T16:12:00.000-06:00

Whenever I run across a web site that has good deals or coupons or free stuff - not junk, but consumer staples - I will try to post it. Sometimes I find these completely by accident, other times by searching, and sometimes via social networks like Twitter.

Without further explanation or wordiness, here are some links for you:

- http://print.coupons.com/couponweb/offers.aspx?pid=13306&zid=iq37&nid=10 - many coupons for food, beverages, household products, toys, etc.

- http://thekrazycouponlady.com/ - features a printable and extensive coupon database (with everything imaginable), freebie, a "Krazy this week" feature and much, much more.

- http://www.couponmom.com/ - this site has free samples, grocery coupons, restaurant coupons, and features sorting by state. Even specials for members of the military.

- http://www.grocerycoupons.com/default.asp - featured on NBC as per their tagline, and supposedly "the Nations Leading Coupon Website"

- http://thecouponcodelady.com/ - "Black Friday" deals, Craftsman tools, daily deals, grocery coupons, healthy choices and more.

In these difficult economic times, we can all use savings here and there, even if only a couple dollars. Feel free to add more sites that may be useful.

Thanks.

- AJ

Free Web Site Hosting

2009-11-30T20:56:00.000-06:00

As we've indicated before, we try to find ways to save you money in addition to providing information for your small business endeavors.

We ran across this nice little gem recently - a basic free web site hosting service available at http://www.tripod.lycos.com/compare/index.tmpl

With any free service, there are some limitations. In this case, a site is limited in disk space on the hosting server, bandwidth availability is lower, fewer traffic reports, and the site will have its own advertising to pay for the cost of hosting. For experimentation or to showcase a basic web site, Tripod's offering may be appropriate and desirable.

Check it out - the link is above and browsing is free too!

- AJ

Increase web site traffic for free!

2009-11-29T17:32:00.000-06:00

How does a site get free publicity? Recently I gained several suggestions by attending a local seminar given by a small business guru

Here are those tips:

1) Fresh and lots of content. Write an article, blog, or post frequently. Search engines rank sites based on new content, relevancy, and site traffic. Traffic will increase, site gets higher rankings, and traffic increases more.

2) Register on a site like " ehow.com " and link the article to your site.

3) Cross link with area companies in similar industries. If you make metal widgets, cross-link with a site that makes plastic widgets or parts components that work with your widget.

4) Publicity. Spread the word. Use Twitter, Facebook, MySpace or any other free social networking tools.

The Internet is a great way to get noticed and to sell your product or service. Get writing and linking!

- AJ

Free Office Software with Open Office

2009-11-28T23:06:00.001-06:00

At Thesmallbizpro, we're not only providing information about starting up and running a business. We will also try to save you time and money by providing links and information to free and low-cost alternatives.

Have a computer? Have Microsoft (MS) office or considering buying it? The full office suite is expensive but there are good alternatives.

Have you heard or considered 'open source' software? This software, based on the Linux operating system, has many applications that mirror or duplicate ones available for Microsoft's Windows system.

Most notable of these is Open Office, available for FREE at http://www.openoffice.org . At this site, the product can be downloaded, one can join the open source community, and assistance is available. All of these services are FREE.

Once downloaded and installed, the word processing and spreadsheet applications are very similar to MS Word and Excel respectively, and can even save files or open files that have a .doc or .xls extension. The user interface is very similar to MS products, stable, and easy to navigate. Open Office also has database and presentation software (aka Access, PowerPoint) and is available in many languages.

For the start up company that wants to save big $$ on software licensing without losing the key functionality, Open Office is an excellent and attractive alternative.

- AJ

Licensed, Bonded, and Insured - What it means

2009-11-28T00:25:00.002-06:00

A typical marketing phrase used by many companies is "We're licensed, bonded, and insured." What exactly is the meaning of each of these?

Licensed

For specific professions, a license is required to prove competency and/or permitted to conduct business (in the area of expertise) in a defined geographic area, including (but not limited to) cities, counties or states. For example, attorneys are 'licensed' to practice law in states where they have passed the bar exam. Licenses can be verified by local governments, trade associations, or the Better Business Bureau. Companies that are licensed will often list the license number on their advertising documents. Write down the number and check it with the mentioned agencies to ensure accuracy.

Bonded

Money is set aside by a company, secured by a bonding company, and controlled by the state as a 'bond'. Since the money is in control of the state, the company has no access to these funds and is available for claims made. Bonding generally means that a bonding company has conducted a thorough background investigation and determined that a company (or individual) is 'risk worthy' enough to have their work guaranteed against possible claims. In case a claim is filed, an investigation is conducted (likely by a state agency) and the bond is used to pay the claim. Bonding issues can vary by state; once again, do your homework.

Insured

Much like personal insurance, this refers to 3rd party coverage for damages that may be caused by the company and/or worker employed. In some states, companies (or individuals) without insurance could potentially hold the customer liable for damages, e.g. a roofer falling from the top of your house while replacing shingles. Again, prior to having work done by a contractor, have them prove their insured status.

In summary, it is advisable that ANY company/contractor/worker hired to perform a service is licensed (if applicable), bonded, and insured. In a litigous society such as ours, the risk of lawsuit is too great to risk loss of personal assets for physical or bodily damage done to a hired party.

- AJ

Shorten that link!

2009-11-27T00:03:00.001-06:00

Once again in my web surfing, I've come across a very useful site I'd like to share with everyone.

This one is http://bit.ly - note no www used here.

This web site allows one to shorten the long web site link names into 10 characters or so, great for Twitter's 140 character limit. I've experimented with this several times and never had an issue.

Further, http://bit.ly will also save your links and track the visitor activity to it. Developer information is provided for additional api developments.

This is an incredibly easy to use and useful link for Twitter, Facebook, e-mail links, etc. Highly recommended.

Extra Money via Rental Properties

2009-11-26T22:27:00.001-06:00

Here is another good way to make extra money, save your taxes, potentially help out others, and an area in which I have personal experience. Rental property. Now is certainly an ideal time to find inexpensive properties, though many of them may require repair and rehab prior to renting.

In our little 'barony', we own 3 properties: our primary residence, a townhouse, and our former single-family property.

Circumstances justified and sometimes compelled us to rent these units:

- Our grown daughters and their small children needed a place to live

- We had enough savings to cover at least six months in rent in a case of vacancy

- We felt that in the long-run (and we're only in our 40's), our properties would increase in value - despite the real estate disaster of 2008-09 - and provide an additional stream of income in retirement. This could result from either rental income, sale of the property and subsequent investing, or a reverse mortgage.

- Real estate is good for portfolio diversification. The stock and bond markets have demonstrated volatility over the past 18 months, and while real estate has declined, at least one owns a tangible, physical asset. (1)

- Our rental properties are within 10 minutes of our primary house, allowing us to keep a vigilant eye on them.

- If we wished, we could form a "property management company" allowing us to gain increased tax advantages from business write-offs. (2)

Taking on the responsibility of landlord is neither taken lightly nor without research and planning. One must conduct thorough research on the marketplace to determine the rental need and property values. If money is expected soley from rent, one must not incur a mortgage that exceeds rental income. Also to consider are property taxes, fire and disaster insurance, and the cost of utilities, if those are offered. One must also vett potential tenants, running credit reports, and asking for references. Certain communitys - our townhouse is one - require association fees as well. Those must be calculated in the overall monthly budget.

I won't lie - there are negative sides to the rental/landlord tenant aspect too. We had a tenant in 2009 that lost her job and was unable to pay rent for a few months. Despite our efforts to work with her, she could not or would not pay and her lease was not renewed. Our next step to collect back rent will involve taking her to small claims court if the back rent is not settled.

A second example of the down sides are a need to be immediately available if serious issues arise. We had that experience this past summer when our second property had a fire started by a faulty bathroom exhaust fan. Even though we were already in bed, we obviously needed to respond immediately. Fortunately, no injuries resulted, and insurance picked up the majority of the cleanup and repair cost.

In the end, we manage to do better than break even on the properties while providing our daughters with a residence we know is safe and secure. Further, in the long run, the property value will increase and we have assets to sell in worst case scenarios.

Disclaimer:

1) We are not financial planners nor claim to be. We strongly recommend consulting with a financial planner to discuss whether real estate is a good (or desirable) option for you.

2) We are not accounting or tax professionals nor claim to be. Individuals considering forming a business, property management or otherwise, should consult with a qualifed tax professional for details.

- AJ

2009-11-25T13:19:00.000-06:00

This Thanksgiving, despite a difficult economic and personal year, I have many things to be thankful for:

- My friends and family

- My constitutional right of free speech and expression

- I appreciate and am grateful to the readers of this blog and our web site and hope they value its content.

- The relationships I've started to establish on Twitter and Facebook

- Linking up with older, long-lost friendships and classmates - those days were some of the best in my life

- Living through a terrible economic and personal year with my sanity, marriage, and life intact

- I am eternally grateful to my business partners - Caspar, Molly, BMac - for helping to realize a dream

- To my parents, for their emotional and financial support when times got really rough. Also for the gift of a wonderful trip to Europe (an earlier birthday present).

- To Rich and Lisa - I am thankful that you found each other and love at last. I am equally honored and thankful for serving as the best man at your beautiful wedding in Niagara Falls. Semper Fi, my friend.

- To my current classmates for stimulating conversation and collaboration on our SAP work.

- To Fred and Wendy for your friendship, advice, support, and sanity checks. You two truly are the cats meow.

- To Lilly and Melanie, for budding online friendships. You are interesting, intelligent, talented, and beautiful, inside and out. Never let others tell you otherwise.

- To the folks at the Department of Labor that have assisted me with sorting out major messes with a previous employer - could not have done it without your ongoing guidance, knowledge, and assistance.

- To my sister, Mandy, for her support and our improved communication and relationship.

- For all those I've missed - I apologize and thank you for all that you've done.

I look forward to the future with open eyes and ambition for projects unfinished and those yet to start.

Happy and healthy Thanksgiving to all - we each have much to be thankful for.

- AJ

Review of an excellent how-to freelance site

2009-11-17T18:33:00.000-06:00

Making a decision to and starting a business is a major effort with many hurdles to overcome. I browse the web daily looking for interesting web sites and content that is relevant to our effort to help our visitors ease into entrepreneurship. Sometime sites are good, even great; many are spam or scams trying to get you to spend money to make money. Thesmallbizpro team is not about that. We believe in providing information to get your business started and keep it running.

Today I was lucky. I came across a "How-to become a Freelance Developer" site by a talented professional - Amber Weinberg. Her web site is http://freelancefolder.com/how-to-become-a-freelance-web-developer/comment-page-1/#comment-33434. On this site, Ms. Weinberg provides a 6-month road map for going freelance with a brief month-by-month summary of actionable items. A link to her personal portfolio is also included.

A solid summary for "knowing what is involved", potential entrepreneurs will find value in understanding the process and volume of work involved in building and running a successful operation. Links are also provided at various points for freelancing resources, blogging tip sites, and others.

As she notes, Ms. Weinberg's steps are primarily appropriate for those interested in careers as freelance developers. Those interested in freelance writing, editing, or other pursuits will glean some general information here, but will need to look elsewhere for specifics.

I do have two very minor observations: some of the links provided are services that must be paid for though many comparable programs are available for free via download (see BizonaBudget), and I think networking and market research/testing is not emphasized enough early in the process. In order to successfully go it alone, a niche must be determined early (perhaps even before the 6-month process) and the waters tested for viability and potential profit.

Despite these minor reservations, Ms. Weinberg provides useful and salient information for anyone interested in freelancing. We at Thesmallbizpro thank her for the contribution to the freelance business community and wish her much success on her journey.

- AJ

Who put that 'Key' in my 'Word'? Keywords are key!

2009-11-16T21:48:00.000-06:00

Also known as an index term, subject heading or descriptor, keywords are arguably the most important feature of blogs and websites. These "terms" or "keywords" capture the very basics of a posted topic of a document. We can debate about layout, content, format, flash and CSS, etc., but if a site can't be found by a search engine, those points are moot.

Probably the most common use of keywords on the web are tags which are directly visible, often containing words, phrases or acronyms, and can be created by non-technical people. Index terms are created either manually with subject indexing via document analysis or automatically using sophisticated methods of keyword extraction and automatic indexing . Index terms may be taken from a controlled vocabulary or freely assigned.

For sake of simplicity and usability, keywords are stored in a search index with common terms such as articles (the, a, an) and conjunctions (and, but, or and nor) eliminated for efficiency. Virtually every website in English contains the word "the"; including it in a search would create massive numbers of pages retrieved and information overload.

Since keywords essentially describe the essence of an article and assist site discovery, using them carefully and appropriately is vital to search engine optimization (SEO) and bringing traffic to your site. A good (and free) tool I've found for determining relevant keywords is available at: http://freekeywords.wordtracker.com/. Simply enter in a keyword and the Wordtracker engine suggests approximately 100 alternative terms. Wordtracker is like having a virtual thesaurus for your website!

- AJ

Excellent link about advertising tips for a website

2009-11-14T09:37:00.000-06:00

Simply put, this article by Daniel Scocco is an outstanding, detailed version of various ways to use advertising on a web site or blog.

Fact-full of information, Scocco lays out the Pros and Cons, where to find advertisers, how much to charge, where to find the advertisers.

You will never need another guide other than what Scocco has written out. Read this if you are serious about blogging and web sites, and want to maximize your earning potential. Be forewarned - it will require work and time - this is not a quick-money scheme.

Thank you to Daniel Scocco for this very valuable information and sharing it with us.

http://www.dailyblogtips.com/how-to-find-advertisers-for-your-website-the-ultimate-guide/

Self-employed? What the IRS thinks.

2009-11-13T19:34:00.000-06:00

For tax reporting purposes, the IRS has several classifications of working individuals including:

Contractor
Employee
Self-employed

The first two categories were covered in a previous blog post. In this one we review the IRS rules on what it considers self-employment.

The IRS considers a person as self-employed if:

The individual has a trade or business as a sole proprietor; or

The individual is a member of a partnership or limited liability company (LLC) that files a form 1065

Persons might also be considered as self-employed if owning a part-time business in addition to a regular job. The weekend handyman or computer tech with his own tools and customers might be considered self-employed despite having a similar employee position with a company.

A complete summary of all employee listings is on our web site: http://www.the-small-biz-pro.com

For additional details, please consult the IRS small employment web site: http://www.irs.gov/businesses/small/

Contractor or Employee - an IRS View

2009-11-13T18:20:00.000-06:00

Contractor or Employee? An IRS definition on the relationship between owner and worker.

It is incumbent upon a business owner to correctly determine whether persons providing services are independent contractors or employees. Generally, organizations must withhold income taxes, pay unemployment taxes, and withhold and pay SSN and Medicare taxes to an employee. Generally, employers do not have to withhold or pay any taxes on payments to independent contractors and subcontractors.

The IRS states that three distinct facts from Common Law Rules define the nature of the worker's relationship to the company:

1. Type of Relationship - Does a written contract or employee benefits exist? Is the relationship continual or for a defined period of time?

2. Financial - Who pays for the business aspects of the worker's job? If the payer or employer, a worker might get reimbused for expenses. Generally, unless otherwise agreed upon, a contractor would supply the tools required for the job. For instance, a contract carpenter would be expected to pay for his hammer, screwdriver or measuring tape, etc.

3. Behavioral - Does the company have a right to control the worker's job and how the work is performed? If so, the worker likely falls into the employee class.

"Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.

The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination."

If an employer is still unclear about a worker's status after reviewing this information, a Form SS-8, Determination of Worker Status can be filed with the IRS for review and determination. This process may take up to six months for resolution.

The full IRS article is here: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Something new - Amazon affiliate marketing

2009-11-09T21:55:00.001-06:00

As I've said many times, we at thesmallbizpro believe that the best way for us to produce honest, valuable content is to try things ourselves, do our own research, and write about the experience. Sometimes those will involve lessons learned the hard way, other times some may be put off by our content. We accept and embrace that responsibility for our readers.

Another part of our goal is to offer transparency - we tell you the reasons behind certain decisions. Today's news is the addition of Amazon affiliate marketing. Simply, we want to test the affiliate marketing craze and determine if value exists for small business. Similar to a prior post on get rich quick schemes with Google-mania, many sites claim to provide quick and easy money from affiliate marketing. We can hardly state an opinion without trying this out for ourselves.

We will keep this Amazon link at least through the rest of the year and report results as they become available. No promises of get rich quick schemes - much like Adsense, there are multiple factors involved, including the number of visitors to our blog, volume of buyers of featured products, commission rates, etc. While we can't guarantee grand results, we can commit to providing you honest reports on our experiences.

As always, this experiment is simply that - our experience and our interpretation of the data. We advise each of you to perform your own research and weigh the factors of advertising on a page vs. a clean look. In the interim, we will continue to provide you with valuable content and ask for any feedback, positive or negative. This blog and our home site - the-small-biz-pro.com - are as much yours as ours.

- AJ

ps: Take a look at the deals Amazon is offering - Christmas is 6 weeks or so away - you may find something good!

Making Money with Google Adsense

2009-11-07T22:40:00.001-06:00

We are constantly bombarded with emails, tweets, and other links that try to convince that money can be made from various Google work-at-home programs. The only legitimate program offered by Google is Adsense. The link for this is www.Google.com/adsense and registration is free.

Adsense does work - our web site and this blog has proved the concept. Granted, because we are still building a clientele base, the revenue is minimal - only a few cents per day - but real. We are also not profit-motivated and always transparent, which is why we share this information. We would gladly post a copy of last month's Google Adsense report, but it is a Google-copyrighted document and therefore not for general distribution.

First for the non-Google sites that imply a Google link. This can be verified by looking at the bottom of the page and noting the disclaimer of non-Google affiliation.. These packages may or not provide legitimate income - we haven't tried any to confirm or deny the claim - but these sites generally charge a fee and/or ask for your email address and name. The only place to register for Google Adsense is at www.Google.com/adsense and you can register without any costs. There are a lot of websites scams trying to sell information on Google work at home or businesses that are not affiliated in any way with Google. Don't waste your money. (from Wiki.answers.com)

As for adsense, registration is free, and the amount of money made depends on several factors

The level of traffic to the web site and/or blog
Placement of Adsense ads on the page
Frequency of add viewing
The number of times a visitor clicks on an add

Some important terms to know

PPC or Pay-Per-Click - as is implied, the amount earned when an add is clicked
Web Analytics - simply the measurement, collection, and reporting of Internet data for purposes of understanding and optimizing web usage.
SEO - or Search Engine Optimization - a process of improving the volume and quality of traffic to a web site from search engines such as Google, Yahoo or Bing.
In-Text-Advertising - a form of contextual advertising where specific keywords within the text of a web-page are matched with advertising. This form of advertising has drawn criticism from journalists for confusion created in a reader's mind as to what is 'news' and what is advertising.

Adsense will likely not be a sole source of income, on average a blogger or web site owner may make a few hundred dollars per month. And bear in mind, this is also taxable income, further eroding any net profits. Finally, in order to gain and maintain an income stream, a site must have 150 visitors per day to be approved by Adsense. For return traffic and to generate new visitors, web/blog content must be fresh and unique. This requires constant updating and new articles. In summation, income can be generated from Internet advertising, but typically it is minimal and requires a substantial time commitment.

- AJ

More information about Google Adsense here: https://www.google.com/adsense/static/en_US/AfcOverview.html

A Confession...

2009-11-04T13:45:00.000-06:00

If you are a frequent visitor to this blog, you've probably noticed that most of the posts are written by myself, AJ.

While the above totally accurate, I have a confession to make. My name is not really AJ. I've taken that as a nom de plume or pseudonym for TheSmallBizPro. The issue of anonymity is one the team has debated on several occasions and none of us are comfortable with the lack of privacy in cyber-space. No, we are not felons or have any evil or malicious intentions. Simply, some of us have been in the technology industry for many years and are well-aware of the nature of the Internet and the possibility of abuse.

The idea of fake names is, of course, quite old. Mark Twain used one and some argue that Shakespeare may have (though this is conjecture). Stephen King has written as Richard Bachmann in the last 25 years and many authors of adult-oriented sites and blogs use names other than their real ones. Each individual must decide on a comfort level and whether real names are advisable or not. Search the Internet sometime and see how many hits come up with your real name. This may help in your decision one way or another.

Yes, I realize that a potential employer - and I am still unemployed - may like my writing and won't be able to contact me because of my name choice. We have email for this purpose - thesmallbizpro@gmail.com .

I am not advocating the use of a pen name one way or the other. Much has been written and blogged on this topic; do some research and make an informed decision for yourself. As for me, as Shakespeare famously penned: "What's in a name? That which we call a rose by any other name would smell as sweet."

Food for thought

- AJ

Future Plans for Thesmallbizpro

2009-11-04T13:16:00.000-06:00

Last night we had a monthly team meeting to discuss our situation. As always, we are believers in transparency and I will relate some of our discussion in this blog. We learn as we go along and try to pass that knowledge along to those inclined to pursue their own business interests.

Snickers bars seem to be preferred over Milky way, but M&M's top them all. (Bmac brought leftover Halloween candy).

Water is the preferred beverage in the evening - used to be Jack Daniels - guess we're getting old, but that's another blog...

We reviewed analytic reports for the sites and were quite pleased to see that for the 10 days this blog has been up, we've hit almost 100 visitors and stay for about 7 minutes. Something in the range of 400 page views. Pretty darn good, we think, and we thank all our visitors for dropping by, commenting, and reviewing our content. We want to be a go-to source for you - tell us what you need. We are quite pleased by the response from the Twitter community. In a little over 3 weeks, we've built a following of over 800, received valuable feedback, and established ongoing relationships with several. Thank you.

We are going to re-work our primary web site - the-small-biz-pro.com - to make it more content rich, easier to navigate, and improve the user friendliness. We also want to include a forum that is easier to deal with than the one provided by Website Tonight. The product is fine for those interested in an inexpensive, robust, and low-cost way to run a web business. We want and need more and still use GoDaddy - their support and stability is outstanding - but instead create our own web pages without using GoDaddy templates. Expect this effort to take a few months; in the interim, www.the-small-biz-pro.com will remain up and running with minor changes and added content.

We want to create a true forum for the small business community. A place where all can weigh in on topics, provide suggestions, ask questions, or muse on a subject. We strongly reiterate our basic mission: Shared Vision - Shared Resources - Shared Success. The true strength, success, and future of small business involves many components and moving parts. Our goal is to help that effort.

Also discussed was the need to link to other sites to increase visibility and traffic to our site. This is part of the search engine optimization effort (SEO). We intend to conduct interviews with various local small business owners and ask their opinions about running successful operations. We hope to have others from all over (via Twitter, Facebook, LinkedIn) contribute to the effort - if interested, please email us at thesmallbizpro@gmail.com.

Finally, as always, we greatly appreciate your continued support and visitation. Thesmallbizpro looks forward to providing answers to your questions, writing (or referring to) useful content, and helping you learn as we do.

Best wishes to you all,

- AJ, Caspar, Bmac & Molly

Finding Inexpensive Staff

2009-11-02T22:36:00.000-06:00

Finding Inexpensive Staff

On occasion, even the smallest of business needs additional staff, perhaps to meet seasonal demand, for a new product launch or a major event.

Direct hires are expensive, sometimes don't work out, and in some states, are difficult to terminate. Contractors can be costly and for simple tasks, overqualified and less than motivated. How then to find those willing to work at reasonable rates or for nothing?

Here are some suggestions:

1) Interns - don't think Monica Lewinsky here, but rather a college student that needs business experience and resume filler. This can be a win-win scenario where the business gets an enthusiastic student in marketing and the student can gain valuable career insight.

2) Retirees - like the intern, the business gains someone with experience in a field, and the retiree can make a few extra $$ in a flexible position. Seniors also tend to be very reliable and willing to share knowledge.

3) High-school work programs - many local high schools sponsor juniors and seniors in work programs as part of their coursework. These students will need to perform adequately to pass, and are usually paid at minimum wage.

4) The local state unemployment office - post a notice of your need or talk to a office staff member. They will be more than willing to help you find a capable and willing worker.

5) Local churches and community organizations - talk to the pastors or directors of these concerns and inquire about the skill set you are looking for. They can publish in their newsletter or on their job boards.

6) Craigslist - most larger cities in the US and Canada have a Craigslist.org website. In this case, a little more of a risk is assumed with an unknown person, but I've personally found roofers and other workers with no problems on Craigslist.

7) Twitter - use the local job hashtag (#) or create a new one for your area. See how many people respond to your inquiry. I'd guess quite a few during this period of high unemployment.

People are always looking for a primary job, a second job or a part-time position. Take advantage of this by exploring some of the options above. The location and needs of your business will dictate which option is most appropriate.

- AJ

Why Work from Home?

2009-11-02T21:12:00.000-06:00

Many businesses can be launched from home or performed remotely instead of in an office. Ideas include freelance writing, website programming, crafting, mid-level-marketing (MLM), consulting, and many others.

So why start a home-based business? Here are several reasons and justifications:

1) Freedom and choice - for night owls, early risers or those who prefer casual dress for comfort and productivity.

2) Cost - no rent for office space, no fuel costs, and lower vehicle expenses. Use the savings for other expenses such as marketing or investing in new products.

3) Domestic reasons - be home for the plumber, a sick kid, older parents or a spouse with medical issues. Use local organizations such as churches and coffee shops to network and meet. Be available to coach your son's baseball team or attend your daughter's dance recital.

4) Workforce - build a virtual business team using the Internet and social networks. Hire marketing experts, web designers, accountants, and other professionals as contractors not staff.

5) Technology - use DSL, cable or satellite for Internet connection. Most of these services are less than $50 a month and many are bundled with phone and television. Look for deals online for computers and any software needed. Use Webex, Skype or Yahoo for tele-conferencing.

6) Be Green - less driving means less air pollution. No heating or cooling an office saves energy.

7) Health - less physical contact with an office staff means a lower chance of catching the office flu. No drive to work, stress from a crazed boss or impossible deadline improves general health.

8) Taxes - a home business can mean savings on taxes by taking advantage of allowed IRS deductions.

One important thing to remember: keep home time/space and work time/space separate and distinct. Set up a space that is comfortable and everything is located in easy to reach locations.

- AJ

Insurance for Small Biz

2009-10-29T17:58:00.000-05:00

Another great suggestion to come out of last night's small business start up presentation was the type of insurance that may be necessary for a small business.

Depending on the legal business structure, you may be personally liable for any claims of damage, defective product, breakage, loss of client revenue, etc. Examples include computer consultants that should probably carry errors and omissions (E&O) insurance. This is an insurance form that protects the insured against liability for committing an error or omission in performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury and property damage.*

A second general common business insurance policy is broad form comprehensive general liability (BFCGL) endorsement. This insurance is a comprehensive endorsement to be attached to pre-1986 editions of the standard general liability policy that provided coverage enhancements including blanket contractual liability; personal injury and advertising liability; premises medical payments; host liquor liability; fire legal liability on real property; broad form property damage liability, including completed operations; incidental medical malpractice; nonowned watercraft liability; limited worldwide coverage; additional persons insured (employees); extended bodily injury coverage; and automatic coverage for newly acquired organizations.*

Insurance policies are vital if:

A) You have personal assets you might lose in a legal judgment

B) The legal structure is a Sole Proprietorship or S-Corp where no corporate protection exists

Consider carefully your risks and whether you can sleep at night without adequate coverage.

Disclaimer:

The author of this article, thesmallbizpro, and affiliated entities are not certified insurance agents and claim no expertise or authority in the insurance industry. Readers of this article are strongly encouraged to contact an appropriate insurance broker, agent, or appropriate entity to review individual circumstances. This article is solely an opinion of the author who holds no liability for insurance options chosen by an individual, individuals, or organizations.

* Insurance definitions copied from the glossary at http://www.irmi.com/online/default.aspx

Increase Traffic to your Web Site or Blog

2009-10-29T14:16:00.000-05:00

Last night, I was fortunate enough to attend Jeff Williams' seminar on "Starting a Business After 50." As a small business owner and coach for 25 years or so, he is considered a guru in marketing, sales, and general business knowledge. Those interested in his program can find more information at http://www.bizstarters.com.

Jeff had many words of advice for the audience, including suggestions on how to increase visitors to a web site or blog. Allowing for paraphrasing, here are some of his suggestions:

1) Maintain fresh content. Write an article, blog, post or something as often as possible. Search engines rank sites partially based on new content and visitors will return for the latest information. Site traffic is also measured by the number of page views you have received on your articles.

2) Register and write articles for a site like www.ehow.com and populate your profile with links to your site.

3) Cross link with area companies that are not competitors. An example might involve a craft business specializing in silver jewelry linking from a crochet or knitting craft site. You link to them, they link to you, both sides win by gaining exposure and traffic.

4) Publicity. As mentioned in a previous post, a press release can be a great way to increase traffic. Using an Internet press release agency, such as www.prweb.com, can expose your site to millions of potential customers around the world.

Thanks to Jeff for these great ideas and get writing!

- AJ

Free blog hosts for starters

2009-10-28T14:55:00.000-05:00

It is increasingly easy to post a blog online for free. Several sites provide this service and bloggers can often earn money via advertising and referrals just by posting an opinion or idea.

Here are a few common and popular web links to FREE blog sites:

www.wordpress.com

www.blogger.com

www.blog.com

www.mashable.com

Some of these sites have restrictions on content - no porn or defamation - but open to any other blogs.

These services are a wonderful way to get noticed in cyber space and state a personal opinion. If one has expertise in a certain area, blogging is a way of passing along that knowledge. If one wishes to drive viewership, post often and with relevant content.

Words of caution though: Any thoughts you place on the Internet can be searched by employers or authorities and potentially be used against you. Anonymity is at risk so be smart and careful when blogging. Also, blogs are not the best way to sell a product if that is a goal. A better and more controlled way is via a web site and virtual storefront.

Happy blogging!

- AJ

News Releases

2009-10-27T22:05:00.000-05:00

A big issue facing all small businesses, especially new ones, is marketing or 'getting the word on the street'. How can others learn about my product and/or service? Tweets, Facebook posts, emails and posting notices may help, but generally will not provide adequate exposure. This is a major problem if my business is a locally based dry cleaner or pet grooming service. Not many people willingly send laundry or Rover across the state.

How about this idea - a press release? The media is still the most significant and powerful form of marketing yet invented and provides instant credibility and exposure. How often have we heard "I read it in..." or "I heard it on..." so it must be true? This concept, known as 'social proof', prods people to browse or purchase. A story in a local newspaper or trade publication is often a golden ticket.

Press releases are used on the Internet too, potentially creating traffic from search engines such as Google or Yahoo and exposing a business to a larger audience. This is a major advantage when a target market is geographically large or the business sells via the web.

Tips for writing a winning press release:

- Consider the 'newsworthy' nature of the release. Why would a journalist write your story? A journalist writes to sell copy - the article - not your product or service. Give them something unique and they'll gladly write about it. FOR FREE! Both sides win; the writer sells more copy and you gain clients.

- What is unique or distinctive about your product or service? Have you recently opened a theme restaurant or patented the Chia Chinchilla? Do you have a new product or service for your target area? This product or service may have succeeded elsewhere but is fresh and original where you are.

- Write in an inverted pyramid style. This is different than fictional writing in which a story builds. In a press release, put the important points first - who, what, where, when, how, why - and leave the details for the second half. Readers like to skim and the first lines must catch their attention.

- Be short and to the point. 300 to 500 words, no more. Be concise, simple, and relevant.

- The title of your release less than 10 words. More is an article and boring. Make it catchy.

- Include contact information. Address, phone number, web site (URL), or email. Ensure the person that responds to inquiries knows the product or service. Don't turn off new clients with incorrect information.

Any other suggestions? Please add them to the comment area. Thanks!

- AJ

Jeff Williams - Presentation on Starting a Business 10-28

2009-10-27T12:30:00.000-05:00

I just received notice that Jeff Williams, a veteran and well-respected business start up guru, is giving a free workshop/presentation in the Chicago suburbs on Wednesday, October 28th. Details below.

Jeff is an outstanding speaker and has been coaching would-be entrepreneurs for 25 years. He is well worth the time invested.

Starting Your Own Business
Wednesday October 28, 2009
7:00 pm - 9:00 pm
Location: St. James School Basement
Street: 820 N. Arlington Heights Road
City State Zip: Arlington Heights, IL 60004
Phone: pcasey@arlingtonresources.com

Notes:
Speaker: Jeff Williams, BizStarters
Old School Basement: Enter Door A5 of the building located on the east side of Arlington Heights Road

Why the advertising and blog feeds?

2009-10-26T15:06:00.000-05:00

Maintaining a web site, blog, Twitter, and Facebook accounts costs time and money. Since we are a free informational site, we'd like to make up some of the costs by using web site advertising. Google adsense is fairly easy to implement and seemed a logical path to recover at least a portion of the costs.

And about the blog feeds? Aren't you providing information from competitors?

In our view, information, opinion, and expertise is key. As we mention on our web site, the-small-biz-pro.com - we are not experts in any area. And, since we are not a business, per se, we can't have competition! Yes, we have experience and a level of training in certain areas, however this does not qualify us to provide a cookie-cutter approach to all. We firmly believe in our mantra: Shared Vision - Shared Resources - Shared Success.

Everyone benefits by contributions from those experienced in various areas such as accounting, marketing, legal, etc. We feel we'd be doing the small business community and especially our guests a disservice by not openly inviting others to contribute.

This is a blog conceived to benefit all who visit. If another blogger has a differing or better idea, great. Feel free to slice and dice our take on life, the universe, and everything.

Best wishes and good karma to all!

- A.J.

We made the switch

2009-10-24T13:51:00.000-05:00

We've been debating whether to stay with GoDaddy's free blogcast (comes with the web hosting package) or move to another. The fact that you are now looking at Google's blogger ought to clue you in on the final decision.

Our reasons were simple: ease of administration, available features, opportunity for increased visitation, and subsequent revenue. All these taken into consideration, the move was a no-brainer.

GoDaddy is a fine product and certainly the paid version is likely better than the free, but for our purposes - and also as a consideration for our guests - the move to this provider is a major improvement. It's also free and can host advertising, etc. A future post will address that issue.

When choosing your hosting provider - web, blog or otherwise - you may need to try several before you settle on a winner. We may move again in the future as we grow, to be determined. In any case, keep this in mind:

- Don't commit to a long-term contract when starting
- How easy is the site to administer?
- Does it have desired features including links to Twitter, Facebook, and other social sites?
- How much does it cost?
- Can or will it host advertising, a potential source of revenue?
- What about pictures, videos, blogcasts, etc?

If your blog and/or web site is key to your business, be sure that the host has the features you NEED at the right PRICE.

- A.J.

Poll: Preferred Accounting Software

2009-10-23T18:07:00.000-05:00

We are curious - which is your preferred accounting software?

In search of ...

2009-10-23T17:22:00.000-05:00

At the-small-biz-pro, we started with an idea of transparency for everything we do and why we do it. This journey and each step has been related to you at our web site - http://www.the-small-biz-pro.com/-.html - in the 'Our Story' section. We believe that sharing and collaborating is the best path to success and will continue this idea.

Next up, we've decided that we need a logo that puts our brand into visual form. The question is how to develop one? None of the 4 of us are astute at graphic arts or visual presentation - we are business people, techies, and customer service folks.

We can do a logo of stick figures or modify an existing one - but that isn't the same, is it?

Yes, we know many marketing folks, and many others exist online that can be contacted, but we don't wish to spend big $$ on developing this. We also think knowing a resource that can develop a logo using our tag line - Shared Vision. Shared Resources. Shared Success - is a valuable commodity for the business community.

We have a few artistically talented friends & associates we're going to ask first; if they can put a visual form to our ideas, we'll be happy to put a plug in for them and share contact information with you.

More on this process as it develops...

- A.J.

Unusual jobs to earn extra money

2009-10-22T22:30:00.000-05:00

For those seeking jobs that are a little non-traditional and unusual, but needed in many areas, here are some suggestions for you. These positions often pay in cash and can help to supplement unemployment income. Warning to all: Not reporting income from work on your taxes is not recommended by the the-small-biz-pro and runs the risk of IRS audits.

Here is a list of possibilites - please feel free to add more!

- Dog Walker
- Elder care, helper or babysitter (note: any positions involving specific medical care typically requires state licensing).
- Baby sitter - even adults can do this and are often more desirable. Be prepared with references.
- Day care - same as above and states tend to have limits on the number of children under care at any one time without a business license.
- Errand runner - do those errands that others just don't have time for
- Handyman - can you use a hammer and screwdriver? Know some basics of home repair? Any advanced projects may require specialized training and insurance. Again, be prepared with references.
- Pizza delivery - have a car? This job is local and always in demand.
- Store shelf stocker - many large companies (e.g. Kraft) use independents to stock certain target market stores.
- Storage unit buyer - self-storage companies regularly have auctions of storage lockers in default. You end up buying all contents of a locker, site unseen, and can end up with junk or a bonanza of value. Many of these items can be taken to consignment stores or sold on E-Bay.

As always, with any of the above, insurance and regulations may apply state to state. Do your homework!

A.J.

Social Networking for Small Business

2009-10-22T22:29:00.000-05:00

Are social networking outlets valuable for more than just social contact? A recent article - http://news.bbc.co.uk/2/hi/business/8273667.stm - on BBC's web site thinks so.

According to the author, Claire Prentice, Facebook and Twitter have become a 'virtual marketing lifeline' for small businesses struggling during this recessionary period.

Smaller companies often have limited funds for elaborate marketing campaigns and depend on word-of-mouth for promoting their products and growing their customer base. In support, Prentice cites specific customers that are using Twitter and Facebook as a "virtual focus group, a bulletin board, a marketing campaign, and a branding exercise rolled into one."

Some businesses use social networks for more than just marketing. Appointment filling, surveys, promotions, and discounts are mentioned as additional advantages. Keeping in touch with customers, ability to react and offer rapid changes, and an additional 'personal touch' are considered valuable additions to customer service.

The author also points out dangers inherent in social networking. The potential for loss of control over an advertising message by opening a dialogue with customers is a significant concern. Some information systems experts suggest limiting social networking use to conversation and avoiding advertising. Another concern is saturation. The fine line between useful information and an overload of electronic hype is often blurred and easily crossed.

Social sites have arrived and are used frequently, if not continuously, and provide a wonderful opportunity to promote a brand or to gain a loyal following. These bonuses may be ultimately offset by a lack of content control and anonymity. Caveat emptor.

- A.J.

50 Best Cities to Launch a Business

2009-10-22T22:28:00.000-05:00

I read an interesting article today about the best cities to launch a small business. Jointly researched by Fortune Small Business and the Kauffman Foundation, factors including growing economies, stable housing markets, low crime, and inexpensive labor were considered.

The top 10 cities listed were: Oklahoma City, Pittsburgh, Raleigh, Houston, Hartford, CT, Washington DC, Charlotte, Austin, New York City, and Baltimore.

Glancing over the imbedded map on this web site - http://money.cnn.com/smallbusiness/best_places_launch/2009/index.html - one can immediately see a bias toward the central south and north eastern areas of the country. Notable exclusions from the list included the west coast states (CA, WA, OR, NV) and population growth states such as Arizona and Florida.

The 'rust best' states fared poorly as well with no cities mentioned in Indiana, Michigan, or Ohio. Illinois had only Peoria and Wisconsin landed only Madison in the top 50. Colorado, Georgia and Idaho had no cities in the top 50.

Small business launches tend to be cyclical along with housing costs, population growth and crime rates. If one is considering jumping into the small business arena, research is key to understanding where a target market exists and is trending upward.

Food for thought...

A.J.

Sites on Branding, Marketing & Technology

2009-10-22T22:23:00.000-05:00

We are constantly blasted with emails, instant messages, blogs, tweets, etc. promising quick money using various (and often questionable) schemes. I decided to do a little research and ran across the following articles that look a little more helpful and promising:

The first is an intelligent and well-received blog by Chris Brogan about 'Community and Social Media'. I suggest this is a good primer for those interested in the social networking phenom and what it entails. "What Human Business And the Social Web Are About" - http://shar.es/1xvR5

Another solid blog in a similar vein is Seth Godin's blog covering marketing, branding, networking and technology. His sage advice is well worth reading here: http://sethgodin.typepad.com/seths_blog/

A third site that fully covers small business issues is from S.C.O.R.E.org - a not-for-profit group that assists would-be entrepreneurs with advice and basic templates. The main site is located at: http://www.score.org/index.html and well worth checking out.

While none of these are get-rich quick sites with formulas for instant success, they each provide sound fundamental advice that will help in the shorter term and longer term.

- A.J.

Money maker for those with time and skills

2009-10-22T22:15:00.000-05:00

With the real estate meltdown of the past 18 months, hundreds of thousands of properties have been foreclosed or are in the process. This situation, while horrible for many, presents opportunity for others. Some homes - I've seen quite a few in the western suburbs of Chicago - have been abandoned and are in need of repair. These homes can be purchased either for a primary residence or as a rental property. If a rental property is desired, take a close look at what the 'market will bear' for rent rates and ensure adequate savings to cover the unexpected costs. A formal written lease is key here too with a listing of what is and is not permissible use of the property.

Many financial institutions are sitting on properties they want to eliminate from their books. Banks are not interested in owing, paying real estate taxes or dealing with the problems associated with home ownership. This pushes banks to make 'deals' in order to eliminate their headaches. Properties can be purchased for considerably less than market value at this time. The secret here is to do your homework. Work with a real estate agent that specializes in foreclosed or near foreclosure properties. Look into property auctions by counties, banks or government entities.

This money-making model is longer-term one and provides no guarantee of definite or predictable returns. This is another reason why research is so important: Research the community, the historical price trends, demographic changes in the area, the school systems and of course, if possible, the property itself. If you find a potential candidate, but can't view the property, ask neighbors about the previous owners and what they may know about the condition.

Remember that banks have tightened the lending process and a potential buyer will need to have a fairly clean credit record and probably a down payment to qualify for a loan on a rental property. Check with local banks, credit unions, and the Internet for current rates and conditions. A good site for this is www.bankrate.com.

A final note: It also helps to be handy with tools and be ready to put in plenty of 'sweat equity' time!

- A.J.

Hobby or a business? An IRS view.

2009-10-22T22:06:00.000-05:00

Yesterday I wrote about several possible small business opportunities, many easily done and with little to no startup cost. One of these involved turning a hobby into a money-maker. Naturally, of course, there are potential tax implications from such a move. If one intends to mix business and pleasure, be aware of the IRS rules and regulations. The following are taken directly from the IRS small business site:

"In order to make this determination (hobby vs business), taxpayers should consider the following factors:

Does the time and effort put into the activity indicate an intention to make a profit?
Does the taxpayer depend on income from the activity?
If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?
Has the taxpayer changed methods of operation to improve profitability?
Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?
Has the taxpayer made a profit in similar activities in the past?
Does the activity make a profit in some years?
Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?

The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years,including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses."

The entire IRS opinion is here: www.irs.gov/newsroom/article/0,,id=169490,00.html

Remember, always do your homework and don't cause trouble with the powers-that-be!

- AJ

Simple ideas for additional part-time income

2009-10-22T22:03:00.000-05:00

Most of us would like to make more money - especially in these days and times. Or maybe we need to supplement a reduced family income or we're retired and want to do something interesting and profitable. Below is a list of relatively simple ideas for part-time income. Feel free to comment and add your own suggestions or success stories!

Home demonstrations/parties

Lia Sophia
Tastefully Simple
Pampered Chef
Tupperware
Avon
Adult novelties
Cash for gold
Usbourne Books

Free-lance writing

Magazines
Newspapers
Internet blogs

Crafts - perhaps you make a hobby of knitting, crochet, or needlepoint. Create interesting and inexpensive items that can be sold either via local craft shows or via a web site.

Residential and/or small business computer installation and repair. Provide rates at lower than the big players and market yourself to local communities. This idea may require business insurance to cover any losses or coincidental problems caused.

E-Bay selling. Do you have a collection of 'stuff' you want to get rid of? Or perhaps know others that want to sell their 'stuff'? Offer to take the pictures, put listings on E-Bay (either for a percentage of the selling price or a flat fee) and ship the products.

Teach a class in your field of expertise at a community college or for a local ongoing education (often offered by municipalities) program.

The point here is opportunity exists - even in difficult economic times - to find some kind of part-time work and make a little extra. Or, maybe get your retired husband/wife/significant other out of the house!

Luck!

- AJ

A Job Transition Journey

2009-10-22T22:01:00.000-05:00

I was a Business Analyst my entire career until being laid off in January 2009. I had an interest in this career but did not have a passion. As I began a job search, I was encouraged to identify skills that would enable me to have a second career or be an entrepreneur. When originally thinking of these skills, I thought only of my long time Business Analyst skills and possibly marketing these skills as a consultant. I began a usual job search to continue my Business Analyst career with no responses after months of online application submissions. I also attended networking meetings, workshops, programs and seminars offered by the Arlington Heights Library, St Hubert’s Unemployed Ministry, Harper college, and IDES. Through these activities I began to expand my skill identification beyond traditional business skills to my passions. I have always been a life long volunteer as a Christian care/support giver, learner, and led an active/fit lifestyle. Could pursuing these passions empower me to reinvent myself and transition to a second career?

The question was answered with the assistance of a Harper College Career Stimulus program Career coach. During our meetings we identified these possible passion careers; college adjunct teacher, in home care companion (non medical), and personal trainer. We also defined a job search for each of these careers. I have been active in each search and through networking landed a part time job as an in home care companion. Because I have a passion for the job I now go to work excited and leave fulfilled. Also I am now considering blending two part time jobs I am passionate about in lieu of full time employment.

BMac

Can I Fire Myself?

2009-10-22T21:52:00.000-05:00

If I am my own boss, can I still get fired?

One of the reasons a person may decide to go into business for themselves is to be independent of a structure imposed by a manager, boss, corporate policies, etc. The autonomy that is gained comes with challenges and more importantly,a high degree of risk. The first question to be addressed is “Do I have a product (goods or services) that a customer would spend money on?” A customer will spend money to solve a problem. What solution do I have to a problem and what value does it have? What is my product? Am I capable of taking on the responsibility of a business that delivers my product to customers?

There are a number of additional questions that must be answered:

Why do I want to be my own boss

As an entrepreneur, am I capable of functioning outside the structure of an existing business?

Do I have the organizational skills to manage a business,or do I have the financial position to pay someone else to take on these responsibilities?

Will anyone else value the product that I want to bring to the market? (This can also include a service.)

If this activity is something I enjoy doing, will I still want to do it enough to clear a profit?

Do I have the financial resources to support a fledgling business long enough to become established?

Do I have the support system in place (family and friends) to meet the physical demands of time, energy and motivation that are necessary when starting and running a business?

Do I want to start a business that is my own creation, or should I look at a structured business such as a franchise where the format and business structure is already predetermined and there is a support system that I can turn to for assistance?

Will I be able to take an objective look at my business and business process and make the necessary changes that will lead to a successful business and a profit?

What is the market for my product and how will I connect with my market?

Can I generate repeat business from my customers and establish additional revenue flows?

Can my product (or service) be duplicated by more employees so my business can grow?

If “I am” the business, what is the maximum capacity of my business?

Is that enough to generate the desired revenue (profit) to be my only source of income?

Do I do this part time in addition to my previous job or does the new business become my only job?

Am I prepared to expand my business and meet the expanding demands of a bigger business model, or do I stay small?

Is my product something that will become obsolete (such as Beanie Babies) or can I adapt to a changing market?

Will my customers reject my product at a later date or find there is no longer a need for my goods or services?

Am I capable of accepting the role my customers play in determining the validity and value of my product?

If my product is no longer relevant or marketable, will I know when to close the business? Do I have an exit strategy for my business?

If my business is rejected by my customers do I look fora new market, a new product or additional lines to increase my revenue flow?

If I close my business, will I be prepared to develop a different business or do I return to the role of employee in another business?

If I am “fired” by my customers, will I know it and how will I react to that change?

These are just a few of the questions that must be addressed before considering becoming your own boss and going into business for yourself. Once the decision to start a business is made, the actual “mechanics”of the business such as a business plan, the structure of the business,financial plan, etc is the next phase of the planning your start up. There are many resources to turn to for the mechanics of a business. Only you can assess your capacity as an entrepreneur in building and sustaining a business. If you don’t try, you may never know the depth of your skills and capacity as an entrepreneur.

- Molly B.

Welcome to TheSmallBizPro Blog!

2009-10-22T21:18:00.000-05:00

This blog is a continuation of the ongoing saga of the-small-biz-pro.com web site.

We, the founders, welcome you and your thoughts/comments/ideas and concerns. These pages are designed with you in mind and we will strive to create as rich an experience as possible.

Our home web site is the-small-biz-pro.com . Our content will be updated frequently - join the community in helping others through the business start up and operations process.

Molly, Caspar, BMac, and AJ