Business Start Ups Archives - Cathy Stucker

Making a Small Business Look Big

September 13, 2010 by Cathy Stucker Leave a Comment

If your company is small or just starting out, how can you get potential customers and investors to look as you as a credible company they will want to deal with? And when does creating a positive perception, or making your company appear larger, cross the line into deception?

Norm Brodsky is one of my favorite business columnists, and he addressed this question in his Street Smarts column some time ago. He says there are two rules: Don’t lie. And don’t do any harm. Beyond that, you can take a few liberties to create the image of your company you want others to see.

Brodsky gives the example of a new service company trying to get its first clients. Clients want to see references, but how can you get testimonials and references when you don’t have clients? One suggestion is to provide free service to a few clients on a trial basis. If they are happy, you get them to sign a contract to continue the service. You can also go to Greenbox Capital, to get a loan to help get your business going. In the meantime, once they have tried your service, you ask if you may include them in your list of references.

He also shares some ‘tricks’ he used to make his company appear larger and busier than they actually were when they seeking their first clients. You can read the full article at Inc.com.

Other companies have created phantom ‘employees’ to make it appear they were larger. Or used recordings of office sounds in the background during calls to give the impression of a large, busy staff. I wouldn’t be comfortable doing these things, but I don’t know that I would consider them unethical.

It may not matter to your customers if you are a one-person shop running out of your basement or a large corporation. But if it does matter, you can find ways to give the impression of great size without being dishonest. First of all, always operate professionally. Don’t let your five-year-old answer the phone. Have an attractive web site. Use quality letterhead and other printing. Be certain that proposals and other materials are free of grammar and spelling mistakes. If you don’t have a staff, you may be able to hire contractors when help is needed, or ask a friend or your spouse to make calls or handle other ‘staff’ tasks.

Some of the things that businesses do to appear larger may not be right for you, and you may find them inappropriate. Whether or not you choose to try some of the more outrageous things done in the name of creating the right perceptions, it is never wrong to be professional and put your best image forward. It is the very least you can do.

Market Research and Testing Your Business Idea

July 7, 2010 by Cathy Stucker Leave a Comment

This is a guest post from Kevin Kaiser of Startup Biz Blog.

So, how much time have you spent writing your business proposal? Are you reading this article because you’re trying to kill time on the internet rather than trying to find investors, or are you hitting dead ends when you do put yourself out there and get your proposals in to investors or banks?

Here’s an idea. Test your business model first. Before you go through the stress of convincing other people that they should spend money on your idea, it might not be a bad idea to do a little research and make sure that the data actually supports your business idea. Investors, after all, seem to like a little independent information as do most of us when we’re making a large financial contribution to anything (source: Bottom Line Concepts).

But wait. Don’t spend thousands of dollars on those traditional market surveys or test groups or whatever we used in those dark, pre-internet days. Thanks to that seemingly ever-present search engine favorite, you can now conduct your very own market research from the comfort of your home, office, or internet café. Google AdWords can be your best friend when you launch an online business, and making good use of it can save you time, effort, and plenty of hassle.

Using AdWords is incredibly simple and, compared to many market research schemes, cheap. Just set up a web page for your business. It doesn’t have to be fancy or impressive (yet), but it does need to get your point across and sell your product or service effectively. Set up your AdWords campaign (the whole thing will only cost you about $500) and pay close attention to the analysis that the program provides you. You may even make a few customers out of the deal and learn a bit more about what your target audience needs and wants in a product.

If in the process of all your research, you suddenly discover that you have competitors, never fear. In fact, many experts and investors use competitors as an earmark of a good business concept, not a flawed one. The presence of competitors, they say, indicates a higher probability that there is a market for the goods or services associated with your idea, and competitors have a way of keeping business owners streamlined, effective, and motivated. Always a good combination where large sums of money are concerned.

If you think this ‘sounds like a good idea, but this won’t really work’ you need to think again. I’ve used this concept myself many times. And lucky I did as well. It helped save me from pursing lost causes and also showed me that I would be able to pull off starting a web-based surety bond business.

Doing a bit of legwork and research before you start looking for money is definitely the best possible situation for both you and your investors. Forcing yourself to empirically examine your future competitors and market conditions will give you a more realistic picture of what you can expect when you get out there into the real world. And investors will be impressed with your forward thinking and initiative. Plus, that business plan you’ve been putting off will sound stronger, have more polish, and stand out from the crowd which is critical in today’s competitive market.

Kevin Kaiser is the author of Startup Biz Blog, and has been working with online startups exclusively for the last two years. When he’s not working, you can normally find him reading or cutting the grass. If you enjoyed this article you should consider subscribing to his blog.

How to Get Your First Customer

June 9, 2010 by Cathy Stucker Leave a Comment

The first customer can be the hardest one to get, but these ideas will help you land that first customer quickly and easily.

Typical advice given to new businesses is to give away their services or charge steeply discounted rates in order to get experience and build a customer base. This can work, but it is a dangerous strategy. First, because those first customers may not value your work if they are not paying market rates, and second, because the time you spend working for nothing or next-to-nothing might be used more effectively in marketing to customers who will pay full price.

When you have attracted customers by giving them bargain-basement prices, those customers may not stick around when you try to charge market prices. Plus, bargain seekers can be more demanding that customers paying full price, so you may end up spending more time than you expected providing service.

There are times when it makes sense to work for free or almost free. For example, if you are volunteering for a charity you support, or if you are building your portfolio or making contacts, it can be worthwhile. As a major strategy for getting your first clients, though, it is not your best choice.

Here are some other ways you can find the clients you need to get your business off the ground.

Meet the new boss, same as the old boss. If you recently left a corporate job, your former employer could be a good prospect for your new business. You understand their business, they know what you can do, and the stage is set for them to become your first customer in your new enterprise.

Get your net working. Contact people you know and tell them about your new business. Let them know you are actively seeking new clients and what you can do for those clients. Do you think it is hard to call people and ask for their business? Get over it, but in the meantime, instead of asking for their business, ask if they know someone who could use your services.

I’ll show you mine if you show me yours. Barter with other businesses for products and services you need through an informal exchange or a barter network. When you barter and get something you truly need in return, it is as good as cash and it is not the same as working for free.

Try it, you’ll like it. Clients may be reluctant to commit to a high-dollar or long-term contract with an unknown and unproven business. Give them a lower-cost way to try you out that compensates you fairly, such as a small project, or give them an out in the contract if you do not meet performance goals.

Get visible. Speak to community and professional organizations. Join the Chamber of Commerce and networking groups. Get active in your professional association. Find ways to get in front of people that can become customers.

May I borrow a cup of customers? When you do not have customers of your own, use the ideas in my article about borrowing customers from other businesses.

Choose the strategies that are the best fit for you and your business, and put them to work. You will have your first clients in no time!

Success Strategies for the Home Based Business

June 2, 2010 by Cathy Stucker Leave a Comment

This is a guest post from Bethany North of www.thecoffeebump.com.

There is nothing more wonderful than being your own boss and working at home, but there is also a measure of risk involved since you will be taking a personal financial hit if you don’t succeed.

Since failing is not an option, here are some ideas to get you started to guarantee your success in a home-based business!

Focus: Even though you will be your own boss, you do have to work your way up the ladder by doing a number of different tasks until your business begins to succeed. It is also important to keep your mind away from your household chores, like doing laundry or running errands, which will eat into your work time. Even though you are working at home, you need to treat it as an actual job.
Put Forth Effort: If you are not willing to put forth the blood, sweat, and tears (hopefully, not literally!), then you can’t expect to receive anything in return. Many people fail in their home-based businesses because they don’t have the focus, commitment, or determination to continue to work at it even if they aren’t seeing results.
Market Constantly: No one else is going to do this work for you, and you are making a mistake if you feel like you can start to slack off after getting a few sales. If you are not continually marketing, your customers may go to another website for the same product, so there is no guarantee that you will get repeat sales. You need to continue to market yourself, even if you are getting a few sales, to guarantee that your sales will increase and grow as time goes on.
Focus on Your Strengths: If you are working alone, you may need to do everything for your business for it to succeed. However, if you are working with a spouse or partner, then you can identify your strengths and weaknesses to maximize how far that your business will go. If you are excellent at writing and creativity, you may want to use those strengths to increase the appeal of your webpage, get links back to your website through article marketing, and write creative ads online so that people will visit your website.
Ask for Help: In the same way, if you are aware of your weaknesses, you need to know when to ask for help. If you don’t have the faintest idea about how to increase your search engine rankings, then you need to either begin to do your homework, or ask a professional company to help you. If you are not asking for help, you could be missing a serious blind spot in your overall business plan that could be detrimental in the long run.

These simple tips will make a difference in guaranteeing your success as a home business owner! Working at home is a risk in itself, but it will pay off in the long run in allowing you to live your dreams and be passionate about your work.

For a great selection of all things coffee, check out Bethany North’s website, www.thecoffeebump.com.

Finding New Business Opportunities

November 2, 2009 by Cathy Stucker Leave a Comment

If you are looking for an idea for a new business, a way to tap into a new market, or a product line expansion, the answer may be right in front of you. The secret is to learn to see the opportunities that exist.

An article (click here) in the Wall Street Journal told about entrepreneurs who profit by providing stylish ways to wear those security badges so many corporate employees are now required to carry. The businesses mentioned range from an intensive care nurse who sells crystal beaded holders for $30 – $50 each to her fellow nurses, to a jewelry company that has sold 100,000 badge holders at prices ranging from $10 to $300.

Although the scale and execution differ, what these entrepreneurs have in common is that each one saw a need and a way to fill it. The nurse designs and creates her holders as a side business, and turns away business because she doesn’t have the time. The jewelry company sells both retail and wholesale, and creates special holders for large customers. (Boeing wants theirs made using ball bearings!)

Both the nurse and the jewelry company started their lines for nurses; however, with the increased security in place these days, more companies are requiring the use of security cards and the demand has increased.

What can you learn from this? First, if you are looking for business or product ideas, solve a problem faced by yourself and those around you. The above businesses addressed the desire of employees to avoid those tacky lanyards and express individualism within a corporate environment.

Listen to complaints and suggestions about existing products and services. Whether customers are talking about your products and services, or you hear comments about other companies, each negative is an opportunity to create something new that meets a need.

Keep your eyes open for people who should be your customers, but aren’t yet. The badge holders were created for nurses, but found a large market in the corporate environment when employers started requiring employees to carry cards. This change created entire new markets that had to learn about the availability of the products.

Look for new uses for old products. Caboodles cosmetic cases were launched when the company learned that women were buying fishing tackle boxes to store their cosmetics. (Insert your own obvious joke about what the women were trying to catch here!) They created a line of boxes especially for that purpose in bright colors to appeal to women. Same boxes, new look, new market.

As needs and circumstances change, watch for opportunities to meet the needs of new and existing customers—sometimes by offering things they don’t yet know they need!