2008 January
Imagine if the Managing Director of your company suddenly developed a serious illness, or worse still, died suddenly. Or the CEO or founding partner was in the same situation. How would your company cope? Would you be able to continue trading easily, or would this impact heavily and adversely on your business as a whole? If it’s the latter, don’t worry - you’re not alone, and this is why insurance companies offer key man insurance cover.
What is Key Man Insurance?
Ideal for businesses both small and large, key man insurance offers invaluable financial cover for the employees that the name of the insurance infers - key personnel. These can include Directors, Partners, Senior Sales Managers and more - basically, anyone for whom losing them would have a serious impact on your ability to function as a business.
What it Covers
Because each business is different, there may be small but important allowances for your particular business, so you should make sure you know what exactly key man insurance will cover should you decide to have it. However, as a general rule, the cover includes:
* Insurance that will keep your company trading as normally as possible when you lose a key member of staff. This can include cover if you’re unable to train someone to take your key personnel’s role in the short term.
* Protection of business profits
* Protection for shareholders or partners in the business, since obviously this will affect them as well
* Payment protection if you have business loans or lines of credit, avoiding any late payment penalties or worse
Why you Need Key Man Insurance
If you’re a small one-man business, it’s quite probable that you don’t need key man insurance, and that you’d be better protected with other, more specific insurance that’s better suited to your company. However, if you have anyone else in your business that’s as key as you are in the success of it, then you definitely need this specialist insurance.
The best way to look at it is through how your business will be affected. For example, if you have numerous loans and lines of credit that only your senior accountant can handle, and they fall ill, payments may be missed. This in turn will lead to default charges and potential bad credit - potentially catastrophic in the business world.
Another example is if the sales director suddenly develops a long-term illness, or the main partner in the business dies - this can have a detrimental knock-on effect in how partners view the company’s ability to continue. They may call in loans or investments that they have provided, and this will lead to a serious financial problem. Again, key man insurance covers this and ensures any outstanding monies are paid, easing investors’ worries.
If you feel that your company would be hit hard by the potential loss of a key member of staff, make sure you look at what key man insurance can offer you. It can be a lot more than just peace of mind.
Tags: insurance, insuring your business, key man insurance, small business insurance, Tips
Posted on January 31st, 2008 in Uncategorized | No Comments »
Do you find that in your business you are overly concerned with the everyday details? Perhaps you spend your day trying to please every customer’s request or trying to solve each individual problem that arises. If that’s the case, then like many small business owners, you’re having trouble seeing the big picture. If you focus too much on each individual circumstance, you’ll have trouble stepping back and assessing the entire situation and seeing what can be improved or solved.
Take the example of Anna and her party supplies rental company. She had a customer come in and ask if she rented the "Super Soaker Water Playground". She didn’t, but she wanted to help that customer so she decided to purchase one - even though it was very expensive. By the time the playground arrived, the interested customer had already found another one for rent at a different store. Anna advertised that she had this new party rental, but she only had one rental in six months. Eventually, Anna ended up selling it for only 65% of what she paid. What Anna didn’t realize is that there was a growing need for inflatable pool rentals. If she had taken the time to step back, assess the situation and do the research, she would have found that her money would have been much better spent buying an inflatable pool instead.
How to make sure you’re focusing on the right needs of your customers
Take notes - Starting today, keep a detailed log about every business-related question a customer or potential customer asks you (or your employees) - whether in person, a phone call or an email. Make sure that everyone in the company uses the same spreadsheet to add information too. You might be surprised to see how many people are looking for the same exact thing. For new purchases or any major change, focus your attention as your customers as a whole, rather than each as an individual.
Pay Attention - Many of your customers may have unmet needs with your business, but don’t take the effort to let you know. However, they may leave clues. Let’s say you own a small sandwich shop, and once you started paying attention you realized that 45% of your lunch crowd ordered a sandwich, chips and a drink and 30% ordered a sandwich, salad and a drink. So, you decided to add both as combo lunch specials and, guess what? The lines moved quicker and sales per day rose 15%. Your customers loved the ordering convenience and the fast-moving lines and you enjoyed the extra profits!
Ask questions - If you have been considering changing something drastic about your business (adding or removing a product line, changing store hours, etc.), you may want to ask your customers for their opinions first. If you find that the majority of your customers think heated seats in the lounge area is unnecessary, then you just saved yourself several thousand dollars!
Once you start to open your eyes to the big picture of your business, you’ll be amazed at how unimportant all those little details are. For when you work to meet the needs of your customers as a whole, 90% of those small details vanish!
Tags: growing your business, management, managing your business, small business, strategy
Posted on January 31st, 2008 in Uncategorized | No Comments »
If you’ve ever found yourself at festivals and malls, looking at the quirky t-shirt designs and thinking you could do a better job, owning a T-shirt business may be in your future.
Many people do well with their own T-shirt business, but the key is in knowing how to do it right, and making sure you’re ready before jumping into the fray.
As you think of taking on this venture, remember - there are a lot of t-shirt businesses out there, especially online. If you’ve looked at the array of online t-shirt businesses, there aren’t many shirt styles that don’t exist, especially with companies that will allow users to create their own design and have it printed.
With that said, you shouldn’t immediately rule out starting your own t-shirt business -just make sure you know what you’re getting into.
First, you need to create your business plan.
Getting Started
Begin with what you would like to achieve with your company. There are a number of ways to set your goals. You could have a personal goal of listing at least five new shirt designs a week and offering them on your site, or it could be reaching a certain number of visitors and generating inquiries. When setting goals, they should be both realistic and achievable.
Part of this will depend on your target audience. Who are you trying to sell shirts to? Do you want to sell in bulk? If so, you should be gearing towards companies or conventions. If you are going to create shirts for the public, what market are you aiming for? Sure, you can start a t-shirt company with a number of shirts in different styles, but it’s harder to get on the radar that way.
If you have a niche market that you are gearing your business towards, you will have a better chance of being noticed by that crowd.
When it comes to delivering the product, there are two ways to go about this - make the shirts personally or hire a third-party shirt maker.
Making the Shirts Yourself
Making the decision to create all the merchandise in your t-shirt business gives you more overall control in terms of creativity and the quality of the items that are being sold - but you’ll also bear more of the cost.
In order to go this route, you will have a lot of start-up costs - you’ll need to pay for the press, shirts, screens and paints to create your designs. This is well and good if you’re experienced with using t-shirt making equipment; but if you aren’t, then a good deal of time, effort, and most importantly money will go into learning.
Using a Third-Party Shirt Maker
If you don’t want to lay out all of the initial cash for the supplies to make the shirts, you can always bring in a third-party shirt maker. In this case, you’ll be able to send an art design to the maker and they will create the shirts for you. Many third-party shirt makers will require a minimum order for good pricing, or charge more and cut your profit on individual printings.
Finally, create a marketing plan to get the attention of your potential customers. Go to festivals, street parties, or chamber of commerce events and hand out information about your company. Go where your target audience is - if you’re marketing to college students, post flyers on campuses. Grassroots marketing works very well for t-shirt businesses. If you have a website, you may want to consider some form of online advertising - paid search, banners on popular blogs, or even social media marketing. The more inquiries and responses to your pitches that you receive, the more potential customers you will have.
Tags: advice, start up ideas, Starting a Business, Tips, tshirt business
Posted on January 31st, 2008 in Starting a Business | No Comments »
Liquidation.com was featured in a story about how buyers can purchase discounted goods following the holiday returns season. The story aired on Indiana’s Fox59 News in Indianapolis and Liquidation.com’s Brian Johnson from the Plainfield warehouse was interviewed. To watch the clip (it’s only a few minutes) click below:
Liquidation.com on Fox News
For more information about buying holiday returns check out Catch the Post-Holiday Wave: Sourcing Wholesale Store Returns
Tags: Fox News, Liquidation.com, liquidations, Product Sourcing, wholesale store returns
Posted on January 31st, 2008 in Announcements, In the News, Product Sourcing | No Comments »
There’s no doubt you’ve heard of franchises - businesses like McDonalds or Subway - where you purchase the right to open one of the stores in your area. While being a bricks-and-mortar kind of franchise may not be something you are in the market for, what about an e-franchise?
Let’s take a look at what e-franchises are in greater detail.
What is an E-Franchise?
E-franchises, also known as virtual franchises, are franchises of a business that, instead of being bricks-and-mortar, are an online venture. With today’s advances in technology, it’s no surprise that many online companies specializing in a particular city, state or region, are selling opportunities to run their business models in other parts of the country or world.
In one respect, e-franchises are much like regular franchises. The purchase you make entitles you to use a known name brand and start your business with marketing and brand recognition already on your side, giving you a huge advantage over other businesses.
Additionally, e-franchises often offer training to make sure the company you run is run like the model that earned that brand recognition.
Where they differ is in their ease of setting up. Often, virtual franchises require little more than purchasing a domain name. Then you are able to set up a template website, customized to your location - and voila! You’re in business!
How to Find an E-Franchise
When it comes to finding virtual franchises, many people look up "home based business". Usually, they’ll come up with a number of results that offer a chance to start a "free" business out of their home. These are not the business offers that you want. Most of these free offers have a number of catches that you will learn about the hard way, after you have already invested your time and hard-earned money into them.
Franchises, whether traditional or virtual, have to be purchased. Essentially, you are buying a business from someone. Although you are not purchasing a building or any of the other physical parts of a business, you are purchasing the brand that has been created, and the trust of customers who believe in the brand. That comes with a price.
Money Matters
Some e-franchises can be purchased for a few thousand dollars; others are tens or even hundreds of thousands of dollars - but come with all the training and even some of the supplies you need to get up and running. That is far more affordable than the days of hundreds of thousands of dollars, or more, that you’d need to spend to set up a traditional franchise in a physical location.
You will have to start your purchase by paying the franchise fees to open your own branch of the business. If you are setting up a business that has you delivering a product to a client, make sure to remember all the materials you’ll need to create that product, or the inventory you will need to have on hand to get up and running.
All of these costs generally have to be paid up front, and are monies you need to budget for.
Locating an Opportunity
Finding the right e-franchise opportunity for you will take some research. There are virtual franchises in almost every field and area of business, so you can definitely find something that will suit your style and interests.
One way to find e-franchises is to find online businesses that you like, that seem to be in a particular area other than yours, and contact them to see if they have franchise opportunities.
Another place to look are franchise directories like these:
FranchiseOnline
BizBuySell
Franchise.org
BuyerZone
FranchiseGator
Proforma
Gaebler Ventures
Just like any other business venture, you should enter into a virtual franchise agreement with care. Read the fine print, do your research and ask questions.
Finally, when you are confident about the opportunity, you’ll be ready to start your own business.
Tags: E-Commerce and E-Business, e-franchises, franchises, Money Matters, work at home
Posted on January 31st, 2008 in Uncategorized | No Comments »
You may have heard and/or seen the term "Web 2.0" floating around on the internet. But what does it mean? More importantly, what does it mean to YOU?
Essentially, Web 2.0 is the "next generation" of how we use the internet to communicate. For example, the invention of new tools and applications such as blogs, RSS feeds, and social networking sites. All of these allow internet users to more freely interact with each other whereas before, this level and type of interaction was very limited. The most important thing to remember is that Web 2.0 is more of an idea or way of thinking about the internet than it is an actual reality. In the most simple terms, it’s the evolution of how we use the internet.
True, it’s not as simple as I’m trying to make it seem so for a more detailed explanation I suggest Wikipedia (ironically, a staple of Web 2.0). But here’s what the buzz is all about and why Web 2.0 is so important. It’s all about having more ways to reach your target market. Before, marketing and advertising took an extreme amount of effort to reach a lot of people.
Now, it still takes persistence and hard work, but the rewards are much greater and the odds of reaching more potential customers has changed the way we do business. Online businesses that cater to niche markets can flourish with customers from all over the world whereas before, such an endeavor would have been impossible.
So if you are starting a new business or have an existing business you are trying to grow, be conciencious of how Web 2.0 can affect your business. It will likely be for the best if you can devote time and resources into exploring these avenues. It’s pretty important not to let this ship sail without you on board! So when you are planning your marketing/advertising strategy, don’t forget to include it in your plan.
Tags: blogs, ebusiness, ecommerce, growing your business, Marketing, marketing your business, RSS, social networks, web 2.0
Posted on January 30th, 2008 in E-Commerce and E-Business, Marketing Your Business | No Comments »
One of the quandaries in running a small business is keeping your accounts up to date. Depending on what size your business actually is, you may be fine with a simple spreadsheet on Excel, or a similar chart. However, larger medium-sized businesses may need something a little more intricate. Therefore, it may be a good idea to take stock of your business accounting needs, and see if it’s time for an upgrade.
Pen vs. Software
Prior to computers, all invoicing and accounting was completed via ledger books, and although it may seem surprising to learn, some companies still work this way today. However, this is very rare, and the simplest system that most companies use is Microsoft Excel. This is ideal if all you have to worry about are small amounts of transactions, and broken down into Money In / Money Out / Balance columns.
This takes into account your sales (Money In), your expenses (Money Out), and your profits (Balance). If you’re a small one-man business, you may find that this is more than enough for your needs. And because Excel allows you to use its auto-sum feature, it will keep a running balance for you as you input any new figures. Yet if you find that you need to keep track of more information than Excel or any other similar chart program can manage, it’s probably time to start looking at more advanced alternatives.
Cost vs. Need
Of course, one of the things you should take into account first before updating your invoicing and accounts system is its cost-effectiveness. If it’s not going to offer you much more than what you currently have (whether that’s Excel or similar), then it’s probably not worth the extra outlay.
However, if it’s going to save you valuable man-hours, which can be spent marketing your business or attracting new customers, then it’s definitely worth the financial outlay. Better still, if you use an accountant or a part-time administrator to do your accounts for you, and the new software enables them to be completed in half the time, again it’s saving you money. So make sure you take the time to look at how much it would cost to upgrade, and how much you would save by doing so. This should then enable you to make a final decision.
Options to Choose From
Once you’ve decided that you definitely want, or need, to upgrade your current system, the next thing to do is decide what software you want to go for. There are literally thousands on the market, and all offer benefits over each other, as well as disadvantages. So, once again, take the time to look at what you need it for, and then narrow your search down to include just the software that will meet your specific needs. You can read more here about [ur=http://www.gowholesale.com/news/view/Choosing_Accounting_Software_For_Your_Businessl]choosing accounting software[/url].
Some excellent options include NetSuite, Microsoft Office Accounting Professional 2008, QuickBooks and Simply Accounting by Sage. They all offer unique selling points, so make sure you pick the right one for you, and your accounts will soon be running themselves.
Tags: Accounting, accounting software, budget, computer applications, money, software
Posted on January 30th, 2008 in Uncategorized | No Comments »
Many small business owners think that lawyers are only needed when a lawsuit arises or when a contract needs to be drawn up. Unfortunately, it’s that kind of thinking that can end up giving business owners some serious future regrets.
Instead of thinking of attorneys as professionals who fix legal problems, think of them as people who prevent problems from ever occurring. A good business attorney will guide you through every step of your business - from startup through expansion - and will ensure that your business’ best interests are kept in mind.
Why having an attorney can help you and your business
If you are in the beginning stages of your business, a good attorney can help you set up the right business model for you. He or she can help you decide if your company should be set up as a corporation, limited liability company (LLC) or a sole proprietorship - and what you need to do in order to keep that status.
If you are selling your own line of products or services, you may need help from a patent, trademark or copyright attorney to ensure that your ideas and designs are protected and are knockoff-proof. An attorney can also create a Non-Disclosure Agreement (NDA) for you so that you can safely discuss your idea with other companies, without the fear of someone copying or stealing your idea.
Of course, an attorney is your best resource for drawing up contracts and online privacy policies and double-checking your email campaigns to make sure that your business is complying with the CAN-SPAM Act.
Finding the right attorney for your business needs
The best place to begin your search is with the people you know - family, friends, neighbors, business associates, accountants, insurance agents, etc. Use your networking skills to compile a long list of recommended attorneys. Next, call each attorney on your list and set up a short phone interview. Let them know about your business and the goals you have for it. Find out if they have experience in your industry and with businesses that are similar in size to yours. A good lawyer will try to understand your business’ individual needs, rather than try to group you in a specific cookie-cutter business model format - inevitably leaving you with wasted time, money and documents.
After the phone interviews, you should be able to narrow your list down to two or three good prospects. From there, it would be a good idea to set up an initial consultation - many lawyers will give you this first appointment free - though it will be short, approximately thirty minutes. Since you’ll have limited time with each attorney, be prepared in advance and write down a list of questions and ideas you want to go over.
At $200-$400 an hour, your attorney’s advice, wisdom and document preparations may not be cheap, but it’s possible he or she may save you from lawsuits and lost business in the future. The good news is that every invoice is a business expense that you can deduct on your next tax return!
Tags: business law, hiring an attorney, legal, small business, Starting a Business
Posted on January 30th, 2008 in Starting a Business | No Comments »
If your business involves selling goods to your customer, you’re going to have to deal with wholesalers. Whether you’re an eBay Power Seller or a business with customers worldwide, if you have products to sell, you’re going to need stock.
However, many small businesses are often afraid of working with wholesalers. There could be a variety of reasons for this - feeling unsure of wholesalers in general, perhaps thinking that they will be looking to overcharge, getting scammed, etc. While this may be true of some wholesalers, it’s like this in any business - you will always get a mix of good and bad. Despite this, the majority of wholesalers are fair and looking to aid your business as much as theirs.
Here are some tips to help dealing with wholesalers go a little smoother:
Meeting Wholesalers for the First Time
The key thing here is to be aware of the fact that they’re business people as well, and probably need your business just as much as you do theirs. Therefore, instead of feeling as if you’re the one that needs all the help, be confident and think along the lines that any wholesaler would be pleased to be associated with your business.
Like any business deal, the best approach is always face-to-face. If you can’t do this at all, then obviously a phone-call or email message will have to suffice. However, to give you a better idea of who you’re dealing with - and for the wholesaler to see you’re on the level as well - meeting in person is far preferable. You can start by going to wholesale trade shows [link to http://www.gowholesale.com/trade_shows/] to meet wholesalers, and then arrange to visit their facilities.
By visiting the wholesaler’s facilities, you’ll also be able to gauge what type of operation they have. This is particularly important for the well-being of your customers - if you know that your wholesaler is responsible and has excellent stock and back up facilities, there’s less chance of your customers being disappointed when their order’s delayed.
Making an Impression
If you go to your meeting looking to pin down a wholesaler to the largest supply chain at the lowest price, chances are you’re not going to get very far. Instead, keep an open mind and be open to negotiations on both parts. Even if you have to pay the full rate now, once you both have a solid working relationship, you’ll find that you’ll be receiving special offers and discounts on your normal rates. It’s all about building the foundations to a long and successful partnership.
Tags: advice, Product Sourcing, Tips, wholesale, wholesalers
Posted on January 30th, 2008 in Product Sourcing | No Comments »
As your inbox fills up each day with dozens (or even hundreds) of junk e-mails, it’s hard to believe that the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act went into effect back in 2004. The problem is that many of these SPAM offenders are clicking "Send" from outside of the United States, and therefore aren’t under U.S. jurisdiction. However, if your company is in the U.S., you’ll need to make sure that your next e-mail marketing campaign follows each of the anti-SPAM laws. Otherwise, you could be liable for damages up to $2,000,000 and/or up to five years imprisonment.
But, don’t worry; following the laws isn’t difficult - though you may need to tweak your existing email campaign format a bit. Here’s a list of what you can and can’t do in your next email campaign, under the CAN-SPAM Act:
What’s Allowed in Commercial E-mail Campaigns
* Sending e-mails to customers in order to complete a transaction.
* Answering e-mails that were sent to you.
* Sending e-mails to customers or individuals who have subscribed to your newsletter or have agreed to be notified of specials, new products, etc.
* Sending e-mails to customers about a product upgrade, update, warranty or recall that applies specifically to their purchase.
In addition, when sending out any of the above emails, the CAN-SPAM Act requires that ALL commercial e-mails sent must include 1) a "valid physical postal address of the sender." 2) a valid e-mail return address 3) your company name and 4) a link for readers to permanently opt-out or unsubscribe to future emails, newsletters, promotions, etc.
What’s Not Allowed in Commercial Email Campaigns
* Sending commercial e-mails where the subject heading of the message "would be likely to mislead a recipient, acting reasonably under the circumstances, about a material fact regarding the contents or subject matter of the message." In other words, using a false subject line with the intent of tricking the recipient to open the e-mail message.
* Having sexually explicit content in your email without 1) clearly identifying it in the subject line and 2) having consent from the intended recipient.
* Adding or sending commercial e-mails to people who are not subscribed to your newsletter or promotions list.
* Using an invalid return e-mail address.
* Using false information in the From or To headers.
* Using scripts or automated ways of collecting email addresses for your email marketing campaign.
* Generating e-mail lists using a "dictionary attack" - combining names, letters, or numbers to form individual e-mail addresses. For example: a@hotmail.com, b@hotmail.com, c@hotmail.com, etc.
Remember, the penalties are steep for not following every aspect of the CAN-SPAM Act. For more information about the CAN-SPAM act, you can visit the FTC’s website: http://www.ftc.gov/bcp/conline/pubs/buspubs/canspam.shtm .
Tags: advice, CAN-SPAM, e-mail marketing, legal e-mail marketing, Marketing, online marketing, Tips
Posted on January 30th, 2008 in E-Commerce and E-Business, Marketing Your Business | No Comments »
« Previous Entries
