Business Development Tip Archive - 2005

January

Time to Upgrade Your PC?

As important as technology is, that doesn't mean you always have to have the latest version of equipment. Here's how to evaluate your current technology to see whether it's time to upgrade:

Computers are likely to need upgrading as a result of a software update. If you have recently begun using a new version of an important software package and your computer's performance seems unsatisfactorily slow, it may be time to buy new hardware. Otherwise, you can and probably should make do with what you have. Don't delay buying new computers just because the ones you have are only a few years old, though. During that span of time, performance of the models on the market typically doubles. Forcing customers and employees to wait on slow computers can cost you far more than a new system would. 

Excerpted from Grow Your Business 

Back to Business Development Archive

Clean Out Your Drawers!

If you're buried under a pile of papers and your drawers are filled with more napkins, pen caps and sugar packets than usable office supplies, it may be time to clean out your desk. But where do you begin? Here are five steps to help you de-clutter your desk drawers:

1. Remove. Whatever your situation, the first step is to remove everything—take out all the pens, pencils, clips, sugar packs, tea bags, photos, keys and dried-up candy.

2. Sort. As you remove items, sort according to like items. Sorting shows that you have 87 pens and 830 clips. Ask yourself, "Do I really need so many?"

3. Eliminate. After you've discovered that 54 pens don't even work, or that the sugar packets are rock-hard, then you can eliminate the items directly into the trash or into a box labeled "to go elsewhere."

4. Contain. Stop and think—if you put all that stuff back into the drawer, it will soon be a jumbled mess again. Instead, keep those groups sorted and separated at all times by first containing them. If you put each group in a drawer divider or shallow box before placing them back in the drawer, they'll stay in one place.

5. Assign. Don't just stick the containers in the drawer. Assign them a place. Unassigned items simply float from place to place.

Back to Business Development Archive

Write It Down

Experts recommend entrepreneurs employ not one but two to-do lists. The master list contains a maximum of three items of long-term importance, like "grow sales" or "get new customers." The second list contains day-to-day to-dos that represent tactical steps to completing those strategic to-dos.

Once you have your lists written, categorize all items, tagging them as projects, phone calls, errands, agenda items, work to be done at your computer or desk, things you can do anywhere, and items that aren't urgent.

Review your list items frequently to see if items are listed correctly and should be there to begin with. Working over your list in advance daily and weekly means that, when you consult your list, you don't have to rethink your commitment and your plan right then.

Don't forget to cross things off once you've completed them. Checking off your to-do list not only keeps you organized, but also shows exactly how much you've accomplished.

Back to Business Development Archive

Get in Control!

To work productively and efficiently, you need to create a work environment that supports you. Regain control of your work life by following these steps:

1. Create your vision of a clean work environment. Using your existing office space, sketch the ideal configuration of your office on paper. Remember to create a space for your old project files, financial statements and client information.

2. Take one day, right now, and organize. You will never have the time to organize unless you schedule it on your calendar. Using your sketch as a guide, go after your mess.

3. Unsubscribe from information overload. Throw away the magazines and catalogs you will never read—they just sit there and taunt you. Cancel unwanted subscriptions, and get off any mailing lists that do not help you achieve success.

4. Create a new project file folder. A new project usually generates a temporary mess. To avoid spillover, put all new project information, drafts and associated paperwork into an expandable file folder.

5. Schedule one cleanup day after every vacation. Add one day to your vacation to organize your thoughts, projects and priorities. A cleanup day lets you organize paperwork from previous projects, pay outstanding bills and answer client mail.

Back to Business Development Archive

February

Get Out of Town

Everyone needs a break, even entrepreneurs. But if you're just not comfortable leaving your business in someone else's hands for a few weeks while you sip cocktails on the beach, take baby steps. How about a mini-break? For some business owners, it's easier to get away if they think of their trip as a long weekend rather than a full-fledged holiday.

If you do manage to get away, it might still be difficult to leave it all behind. On vacation, set clear limits on how long you'll work—if at all. Remember, you need to get away from the office, not bring the office with you. So schedule your vacation time, delegate what you can and just go.

Here are some easy ways to make your vacation dreams into a relaxing reality:

•  Vacation during the slowest time of the year.

•  Take three-day weekends as mini-vacations.

•  Discover new, fun activities close to home.

•  Turn off that cell phone and leave the laptop behind.

•  If you must work, limit it to just one hour a day.

•  Throw caution to the wind. Just go!

Back to Business Development Archive

Watch the Clock

There are never enough hours in the day. While you can't slow down time or make the day longer, you can make the most out of the 24 hours you do have. Use these five steps to take the crunch time out of your workday:

•  Plan tomorrow today. At the end of each workday, take a blank sheet of paper and write down everything you must accomplish tomorrow in the order the tasks should be done. The next day, you won't have to decide what to do first, and crossing off the things you accomplish will give you great satisfaction.

•  Learn to prioritize. All your daily activities can be broken down into three categories. The first, the "A" list, represents prospecting for new business. Next is the "B" list—growing and expanding current business. This includes activities that build on existing relationships and generate more business from current clients. Lastly, there's the "C" list, non-selling activities that include writing reports, proposals, follow-up letters and thank-you notes.

•  Don't waste travel time. One of the most valuable time-management tools is the tape recorder. When driving, speak into a recorder, dictating notes and reminders of things you have to do. The next best travel tool is your cell phone, which you can use to make or return calls when riding to a destination.

•  Don't put off 'til tomorrow . . . One time-management expert's favorite tip involves eliminating procrastination. To get his staff ready to go first thing each morning, he suggests they spend 20 minutes on the ride to work listening to motivational tapes and then get started making calls as soon as they get to their desks.

•  Give yourself a break. Time-management techniques aren't going to provide effective solutions if you don't have the energy to give 100 percent. So take a few minutes and walk around the office or around your building, go out to lunch. The ideas that wouldn't come to you in the office might pour out once you're in a new environment.

Back to Business Development Archive

Share the Riches of Your Business

Are you interested in doing community work that directly involves your business? Try these ideas:

•  If you're in the food business, donate excess food to homeless shelters.

•  If you're in the music business, arrange for small, free concerts at homes for the elderly.

•  If you're a financial person, offer to give some counseling sessions or seminars at a neighborhood center on budgeting or debt management.

•  If your business provides an infrastructure-related skill—plumbing, electrical, construction and so on—you have ample opportunities to satisfy your community improvement urges by donating your skills to impoverished families or local nonprofit agencies.

•  If you offer professional services like dentistry, tax preparation or attorney services, donate your time to those who can't afford it.

•  If you're a b-to-b service provider—marketing, PR, financial, Web design, IT and so on—offer your expertise to local nonprofit agencies.

Back to Business Development Archive

Encourage Employees to Give Back

A big part of community involvement is giving employees the freedom to do charitable work as well. One simple way is to offer paid time off for volunteer work. Whether it's eight hours a year or 40 hours, your gift of time will encourage their charitable natures.

"At our company, any employee can take off 40 hours a year to do charitable work, so if they want to spend a week to build a house with Habitat for Humanity, we'll pay for it," says Craig Hall, author of The Responsible Entrepreneur and owner of Hall Financial Group. "Most times, if companies encourage employees to volunteer, those employees will take them up on it. Now, as a smaller company, maybe you can't be that extreme, but you could allot a smaller amount of time—say, 20 hours—for volunteer work."

Back to Business Development Archive

March

Who Should You Be Marketing To? (Part 1 of 5)

Women

Marketers of any product or service can adopt a service philosophy that delivers the product design elements and customer service that women want. Once you translate these expectations to your market niche, you'll win the hearts and pocketbooks of women.

Women's earning power is escalating: They comprise over half of all college students and about 38 percent of small-business owners, according to 2002 figures from the Bureau of Labor Statistics. A February 2002 study by Prudential Financial found that, of the 400 American women surveyed, 37 percent live in households with incomes of $50,000 to $100,000, and 12 percent live in households with more than $100,000 in annual income. Nearly half of adult women are solely responsible for saving money for their households.

So what can you do to make sure you attract women to your business? Try these tips:

•  Get the little stuff right, and the big stuff will take care of itself. Women develop a collage of impressions about a business from a hundred small factors. Everything from its cleanliness to the design of the shopping bag gets a woman's attention. Smart business owners turn this to their advantage by investing in small amenities women can appreciate.

•  Women have so many work and family responsibilities, they don't have time to research and ponder every buying decision. Offering carefully selected choices will have women choosing your business over an overwhelming A-to-Z plethora.

•  Whether buying for themselves or for the businesses they own or manage, women make final purchasing decisions based on their relationship with the seller, not on statistics and quantitative data. Given a choice between two nearly identical products, women are likely to decide based on customer service and the ongoing relationship with the vendor.

Back to Business Development Archive

Who Should You Be Marketing To? (Part 2 of 5)

Seniors

For many seniors, the golden years represent a period of relaxation—a breath of fresh air after a lifetime of work and responsibility. For today's entrepreneurs, meanwhile, the golden years also mean a golden opportunity. Visible on the horizon is an unprecedented demand for senior care and other senior services. During the next 30 years, the number of people 65 and older is expected to double, and the number of people over age 85 will triple, according to James Firman, president and CEO of The National Council on the Aging. "There will be a huge expansion in the need for services to help people stay at home or in whatever facilities they're in," he says. The senior-care industry will "definitely be a major growth industry."

According to Steve Barlam, president of the National Association of Professional Geriatric Care Managers, 60 percent of those seeking a care manager's services are managing their parents' care from a distance, while the remainder live nearby but don't have time to handle all the arrangements. In other cases, there's a conflict between family members, and an objective third party is needed. This translates into a growing need for products and services to help this "sandwich generation." These can range from providing senior day-care centers to in-home care services, companionship and even in-home beauty services.

Back to Business Development Archive

Who Should You Be Marketing To? (Part 3 of 5)

Boomers

Baby boomers—the 80 million Americans born between 1946 and 1964—have a lot on their minds these days. Their kids are going off to college. They're watching wrinkles and stubborn pounds pile on. They're worried about retirement after losing $8 trillion in the stock market. And their parents are passing away, leaving some boomers with inheritances to manage.

Their life changes can be your gain. Boomers comprise half of the $7 trillion in consumer spending every year, says Ken Gronbach, president of KGC Direct LLC, a Higganum, Connecticut, company that specializes in generational marketing. The key to capturing boomers will be helping them feel comfortable with themselves—because their worst fear is turning into their parents. Aging "is very painful for them," Gronbach says.

Boomers will spend whatever it takes to boost their confidence, feel more secure and recapture their youth. Opportunities abound in retirement and financial planning, spa and fitness, comfortable clothing, motor homes, luxury homes, low-maintenance pets and classic cars.

Back to Business Development Archive

Who Should You Be Marketing To? (Part 4 of 5)

The Hispanic Market

Some 38.8 million Hispanics live in the United States, according to 2002 Census Bureau estimates, and their influence is huge and growing. Hispanics control about $653 billion in spending power, and that number is expected to top $1 trillion by 2008, according to the Selig Center for Economic Growth at the University of Georgia in Athens.

Entrepreneurs can find numerous niches in this vast market. Populations of Americanized, predominantly English-speaking second- and third-generation Hispanics are on the rise. This group wants to be marketed to as part of the mass market—not as a separate entity, says Luis Garcia, president of Garcia 360°, an advertising firm in San Antonio, Texas, specializing in the Hispanic market. So speak to cultural differences subtly in your marketing messages (for example, cast a Hispanic family in ads—complete with grandparents in the home, which notes the large family influence). Consider using Spanglish, English mixed with Spanish words or phrases, to communicate to this market. Don't be superficial, though: Garcia recommends getting into grass-roots campaigns by sponsoring Hispanic community events or charities.

Opportunities exist in nearly every industry segment—from food and entertainment to financial services and Web services. Adding new flavor lines to existing food products, for example, is one way to enter this market. Or partner with a manufacturer in a Latin American country to distribute its products here in the United States

Back to Business Development Archive

Who Should You Be Marketing To? (Part 5 of 5)

The Military Market

The armed forces are a massive market, says Christopher Michel, president of Military.com, a San Francisco-based military affinity marketing company that connects public- and private-sector clients to military audiences. With about 3 million active armed forces members and reservists, he estimates the tangential markets of veterans, family members, defense workers and the like to be as high as 50 million.

Serving the special needs of this mobile, family-oriented audience is one way to get their attention—and their dollars. Training companies (which may qualify for reimbursement through military education benefits) as well as relocation services, financial consultants, consumer goods shops and furnishings retailers are some businesses that are a natural fit, says Michel.

Saying you're patriotic is all well and good, but lip service isn't going to cut it. Michel counsels his clients to back up "thank you" with some sort of discount or tangible benefit, such as a free gift, or even going beyond the call of duty and hiring veterans or support reservists to work in your company. And the best way to reach this market, says Michel, is word-of-mouth. Because of the close communities on many bases, people talk to each other about companies that support military members, so the word spreads quickly.

Back to Business Development Archive

April

Dust Yourself Off!

There isn't a salesperson alive who hasn't experienced a slump. If you find yourself coasting downhill, here are four steps to follow to pick yourself back up:

•  Call on your satisfied customers. Look for additional ways to satisfy their needs or new needs you can meet. Learn about their new problems and challenges, and come back to them with fresh solutions.

•  Concentrate on bread-and-butter accounts. Different accounts have different sales cycles, with some taking up to a few years. Sometimes, you get so caught up with landing big one that you forget about little accounts with shorter sales cycles that can bring in money now.

•  Stay on top of business and world news, and how these events might affect customers. Look for sources that will give you new ideas on how to fine-tune your activities and target your customers more efficiently. Read materials that will help you speak to your customers in their language. Learn more about how other people grew their businesses.

•  Be selective about the company you keep. If everyone around you is in a slump as well, you'll drag each other down. Surround yourself with people who are excited about what they do and ride on their momentum until you can build your own.

Back to Business Development Archive

Take on the World

Want your company to go global? Keep these 9 tips in mind when eyeing foreign shores:

1. Research and map out your export journey.

2. Know where you want to go and go there.

3. Take that decisive step and follow it up with sensible judgment. Jump in with both feet first, but keep them firmly planted on the ground.

4. Keep your ego in check. Don't let the prospect of "going global" inflate your ego and cause misjudgments.

5. If it smells, looks, or feels bad, don't try to rationalize otherwise. Trust your instincts.

6. Treat people as you yourself want to be treated.

7. Make personal contact with attentiveness, courtesy, professionalism, and consistency.

8. Factor in a three-year lead-time for world market penetration. It takes time and patience.

9. In a global marketplace, welcome the unknown.

Back to Business Development Archive

Get Others Organized

You may have this organization stuff down pat, but what about your business partners, spouse or business associates? No matter how neat you are, the disorganization of others can impact your business. Try this to bring a little more order into the lives of those around you:

1. Use positive reinforcement. Instead of focusing on other people's disorganization, praise them when they make an attempt to get organized. They knows they're disorganized and don't need to hear your criticism.

2. Teach by example. You can't expect someone to listen to you extol the virtues of organization when you're a mess yourself. If you've changed your style from disorganized to organized, be willing to share the secrets behind your transformation.

3. Be patient and realize everyone is organized to a different degree. Keep in mind that if someone changes one bad organizing habit, his or her productivity will start to increase. Give that person time to make changes and offer encouragement when he or she makes an effort to get organized.

Back to Business Development Archive

May

Why Press Releases Are King

It's a well-known fact that a company's visibility will increase with powerful publicity. After all, publicity aims to bring the news of your company to the world. And the most important tool you can use to accomplish this is the press release.

What exactly should be covered in a press release? Think along the lines of "newsy" and interesting topics. Examples include: your online presence; important information and tools regarding a change in management or the business components you offer; special information that can be obtained online; the announcement of articles, events and appearances; relevant worksheets, tips and techniques; and so on.

When writing a press release, your goals should be uniqueness, timeliness and top-of-the-mind awareness. Once you achieve publicity and visibility, both your company profile and your client and prospect levels will rise. One successful story about your

Back to Business Development Archive

Hey! Remember Me?

Write old customers personal, handwritten notes frequently. "I was just sitting at my desk and your name popped into my head. Are you still having a great time flying all over the country? Let me know if you need another set of luggage. I can stop by with our latest models any time." Or if you run into an old customer at an event, follow up with a note: "It was great seeing you at the CDC Christmas party. I'll call you early in the New Year to schedule a lunch."

Also, remember special occasions. Send regular customers birthday cards, anniversary cards, holiday cards...you name it. Gifts are excellent follow-up tools, too. You don't have to spend a fortune to show you care; use your creativity to come up with interesting gift ideas that tie into your business, the customer's business or his or her recent purchase.

With all your existing customers can do for you, there's simply no reason not to stay in regular contact with them. Use your imagination, and you'll think of plenty of other ideas that can help you develop a lasting relationship.

Back to Business Development Archive

Creating Targets Worth Reaching

When looking at new goals, make sure they have the following qualities:

•  Specificity. You stand a better chance of achieving a goal if it's specific. "Raising capital" isn't a specific goal; "raising $10,000 by July 1" is.

•  Optimism. Goals should be positive and uplifting. "Being able to pay the bills" is not exactly an inspirational goal. "Achieving financial security" phrases your goal in a more positive manner, thus firing up your energy to attain it.

•  Realism. If you set a goal to earn $100,000 per month when you've never earned that much in a year, that goal is unrealistic. Begin with small steps, such as increasing your monthly income by 25 percent. Once your first goal is met, you can reach for larger ones.

•  Thinking short- and long-term. Short-term goals are attainable in a period of weeks to a year. Long-term goals can be achieved five, 10 or even 20 years from now; they should be substantially greater than short-term goals but should still be realistic.

Back to Business Development Archive

The Power of Visualization

As you begin to write down your goals, place yourself in the future—and make it seem real. Write down the date by which the goal will be accomplished, then stop, close your eyes and imagine that you are there. Visualize yourself as clearly as you can—what you are wearing, where you are, what you are doing. How does it feel to have accomplished that goal? Make the vision as real as you can, involving all your senses.

When you write down your goals, write in the present tense. For example, if your goal is to open a restaurant, write as if the restaurant is already successful. That is, "My restaurant, (and put in the name here), is a hit! We're booked solid every night of the week. I've been interviewed in five local newspapers and have had dozens of calls from people who want to know if I'm franchising the concept. Everywhere I go, people tell me how much they love our food!"

Additionally, write down your vision of your ideal life. This is your grandest vision of your life and your world as you would live it at your highest purpose and potential. Let your imagination run wild and create the biggest picture possible for yourself. Are there real-life circumstances that might keep you from your vision ("I can't afford it," "I don't have the right training")? Pretend they don't exist and see what you can come up with when your possibilities are boundless.

Back to Business Development Archive

Revisiting Your Goals

The value of a goal lies in the way it provides you with a relatively steady, unwinking light toward which to steer in the fog of everyday business life. But that doesn't mean a goal should be as immovable as a lighthouse. You should periodically take a fresh look at your goals to see if they need to be changed or, perhaps, dumped. Changes in your personal situation, such as a desire to spend more time with your family, may cause some goals to become irrelevant to your true desires. Of course, the best reason to scrap a goal is because it's been accomplished.

The last thing you need to know about goals is that they are just that—goals. They aren't preordained events that will occur whether or not you work toward them. In other words, just having a goal of reaching $10 million in sales doesn't mean you'll achieve it. Nor should the accomplishment of a goal be considered absolutely necessary to your personal well-being. Some goals are more important than others, but it's not wise to be so committed to a given goal that, if you don't achieve it or it's not all you hoped it would be, you'll be emotionally destroyed.

Back to Business Development Archive

June

After the Sale ...

Demonstrate that you care about the quality of your service. Call customers after a sale and ask them questions like:

•  Are you pleased with the service you received?

•  What did you like most about working with us?

•  What would you like to see improved?

Without this invaluable information, you'll have a hard time improving your products and services. Besides, when you ask customers for feedback and implement their comments, they feel a sense of ownership in what you're doing and thus become more loyal to your products and services.

Additionally, consistently write thank-you notes. This is a no-brainer, but you'd be surprised at how many entrepreneurs neglect to write thank-you notes—especially when they get really busy. Take the time to show your customers that you genuinely appreciate their business. They'll remember your thoughtfulness because most of your competition won't send out thank-you notes.

Back to Business Development Archive

How to Get Involved

There are no end of good causes that can use a helping hand. Every community—no matter how small—offers scores of avenues for an organization to get involved. Here are just a few ideas that might work for your company:

•  Join an adopt-a-highway program.
•  Offer high school or local college students the opportunity for real-world experience with an intern program.
•  Provide food for the elderly or homeless: Help financially or by serving meals.
•  Sponsor broadcast public-service announcements.
•  Host an American Red Cross blood drive at your place of business.
•  Help with fundraising for any number of good social causes.
•  Get involved with a high-profile telethon for your local public television.
•  Work with a local environmental group to clean up a nearby natural area.
•  Consider sports sponsorships, especially for teams from disadvantaged neighborhoods.
•  Get involved with a walk, bike or run for disease research.
•  Approach a service group in your community and ask them to develop a project for your umbrella sponsorship.
•  Look into mentoring programs for local young people.

Back to Business Development Archive

On the Home Front

For homebased entrepreneurs, making the distinction between home life and work life is the most difficult because work takes place in the home. To maintain the stability of your home life, and, possibly, your sanity, follow these seven tips to keep your office from completely invading your home.

•  Clearly differentiate your workspace from the rest of the house.
•  Set definite work hours.
•  Have a signal that makes it clear when you don't want to be disturbed
•  Learn how to say, "No, I'm working now," and stick to it.
•  Use a separate business phone line.
•  Soundproof your office.
•  Have a separate outside office entrance.

Back to Business Development Archive

What Not to Do

To sell smarter you need to eliminate all those things that waste your, and your customer's, time. How can you work more efficiently? Try steering clear of these time-wasters:

•  Dealing with people who can't make the buying decision. Make sure the person you're speaking to is a decision-maker. Don't be afraid to call the higher levels, even the president of your target company.

•  Working without a priority list. Make a top 10 list of your biggest accounts and a top 10 list of your biggest prospects. Look at this list every day to keep yourself focused so you can spend your energy on getting the best return on your investment.

•  Relying on technology rather than on relationships. Sales are made from relationships, and it's difficult to establish relationships on a computer screen. Keep e-mails short—remember they're great for passing information but can never take the place of one-on-one communication.

Back to Business Development Archive

July

Throw a Party!

Hosting an event for your business or at your business can be a fabulous way to garner publicity. The event can take the form of an open house, a ribbon-cutting ceremony, a seminar or a guest appearance by a celebrity, political official or someone else of significance. Once you decide that you are going to have an event, there are a few things to do to get even more bang for your PR buck.

•  Let your target market know you're having an event. An announcement can be made first with a press release to publications that reach your target market. Hand out fliers at your place of business, with customer orders and at any networking sessions you attend to get the word out about your event.

•  If you are having a speaker or another guest of honor, a separate press release announcing the appearance of that person can be issued.

•  Invite the media with handwritten invitations. Just like a party, invite the people you want to attend. Send invitations to the media, your customers and important prospects, friends and family.

•  Have plenty of press kits available to pass out to those attending. Pass them out not only to the media representatives, but also to your guests. Customers and prospects should receive any and all press releases that you issue.

•  Include in the press kit a frequently asked questions list about the company, person, product or service written in interview form. This makes it easier for radio and TV people to interview you or pick a few questions for press.

Back to Business Development Archive

Full Speed Ahead

Business owners and managers know they need good bottom-line results but sometimes it's hard to remember what each person in the organization needs to do to accomplish the desired result. Try these three tips to keep your company moving forward:

•  Ask employees what information they need. Use one-on-one opportunities to ask each employee if they have any questions about their work, what to do or how to prioritize.
•  Make sure employees share information with each other. In staff meetings, make a special point of asking each person if they have any information that other staffers may not be aware of. The manager running the meeting can get a lot more information out on the table by simply asking this question.
•  Make a point of sharing feedback about the work and why it matters. This gives employees a clear "line of sight" from their daily tasks to the big-picture reasons for them. It adds meaning and purpose, and keeps the workforce looking forward and moving in the right direction.

Back to Business Development Archive

Never Stop Learning

In most companies, training and information flow downhill and not uphill. Over the next decade, successful companies will bring the knowledge economy full circle by making sure knowledge flows up, down and sideways. Smart entrepreneurs "hire up," meaning they hire people who bring the latest skills in technology, sales, accounting and other fields.

How can you create a "learning up" strategy? First, managers need to acknowledge that they can learn from rank-and-file employees. Then make continual learning a part of your hiring process. Ask management candidates how comfortable they are learning from employees.

Remember, there's no way you or your managers can be an expert in every area of your business, so don't be afraid to take advantage of knowledge wherever you can find it, even if it comes from lower-level employees.

Back to Business Development Archive

August

Trust Me?

Good communication is grounded in trust. No matter what people say, if they're not trusted, they're not believed. Therefore, in order to have good communication in an organization, you must make sure you do what you say you're going to do. People who do are trusted; people who don't are not.

In the name of keeping people informed, many executives tell employees about things they intend to do that don't happen, often eroding employee trust. Consultants often recommend organizations actually communicate less often as a step to improve trust, instructing employers to tell people only those things they have complete control over and know will happen as they say they will.

If managers do what they say they're going to do the majority of the time, employees will give them some leeway if a mistake is made. When trust is high, communication can be more relaxed and casual, but when trust is low, people won't give you the benefit of the doubt, no matter how good your intentions.

Back to Business Development Archive

Why Recognition Is a Must

Most entrepreneurs don't consider recognition a central part of their management practice. Below are three reasons why you need to take the time to recognize the good things your employees do:

•  If you recognize and make a bit of a fuss about the good things employees do, then you'll find yourself spending a lot less time worrying about the bad things they do. It's far easier to lead people to improved performance by thanking them when they do it right than giving them grief when they do it wrong.

•  Praise and recognize your star performers. Spotlight role model performances and role model employees. This makes them feel good, encouraging them to stay on board and keep trying hard. And it gives everyone a bit of inspiration and a clearer idea of what you want employees to shoot for.

•  Recognize good effort, not just results. When employees have a tough week, throw a mini party for them. Write personal thank-you notes to employees. Recognizing effort has a bigger impact than giving a prize at the end of the race.

Back to Business Development Archive

Bank on It

Bankers aren't in the business of banking on your dreams or predictions; they are in the business of loaning secured money—money that is backed by both your personal guarantee and hard assets. Your banker has to answer to his boss and explain why he loaned you money, how you are going to pay it back and why you are a good risk.

The more your banker knows about your business, the more value you are going to get from the relationship. Create regular state-of-the-company status reports to share with your banker. This documentation can help him provide you with better service, aiding him in making quicker decisions about your business. The better tabs your banker has on your business can also help him give you better advice and maybe keep you out of financial trouble.

Back to Business Development Archive

Finding a Good Insurance Agent

Too many entrepreneurs treat finding an insurance agent like going on a blind date. They randomly contact an agency, and then an agent is assigned to them. If coincidence played a role in the way you were matched with your agent, it might be high time to take stock of that relationship and start looking for a new one.

How do you decide whether your agent is meeting your needs? Ask: Does your agent have expertise in your industry? Is he or she up on the latest in commercial insurance? If not, don't be afraid to switch. The best insurance agents ask a lot of questions about the operation of your business—and they ask them often. To see whether your agent knows enough about your business, turn the tables and interview the agent. Ask general questions, such as: Can you recommend any new coverage? Does your company provide evaluation services?

Back to Business Development Archive

September

Getting Your Fair Share

Whether it's a commission, a participation, a royalty or equity, when deal makers talk about taking "a piece of the action," they usually mean some kind of percentage. It may sound simple, but in the real world, cutting someone a fair slice is not. Here are some things to think about:

1. Is it justified? Percentages can mean big upsides. Reserve these rewards for those who really bring value to the table—usually the people or companies that are key to the venture, or those taking an unusual amount of risk.

2. Would an hourly rate or a flat fee be less expensive than a percentage? This is a common theme when professionals are involved. If they'd perform the same service either way, run the numbers to see which is better for you.

3. What's the percentage based on? Is it on everything or just a part? Is it on gross or net? If it's net, what comes off the gross to get there? Make sure you understand how a percentage is calculated. Crunch some numbers. If your opponent has any skills, he's good not only at counting the beans, but also at hiding them.

4. Is equity involved? Stock is complicated, so you must get professional help. The formalities are legion, and the pitfalls nasty. The actual number can mean little without taking into account voting rights, classes of stock, buyouts, vesting schedules, conversion rights, registration rights, dilution and the like.

5. For how long is it payable? Certain deals can go on for years. That percentage income stream can be well-deserved passive income or a total boondoggle, depending on who is getting it and why. Ask yourself: Should these payments go on forever? If not, when do they stop?

6. Who's rushing me? The percentage players in a deal often have a strong incentive to close quickly. No deal, no percentage; and the faster they get there, the better. This is a predictable current in many negotiations—it's up to you to swim with or against it.

Back to Business Development Archive

Get Tough

Toughness is partly about your game face, but it's also about technique. When you're called on, or choose, to take the hard line, here are some ways to strengthen your game:

•  Don't talk too much. Be terse. The less you say, the less you reveal about your own position. The less you say, the more you can listen for weaknesses or opportunities.

•  Be stingy with your concessions. It can really grind your opponents down. If you must give, give just a little, and get something back in return—even if it's their agreement to take an issue off the table.

•  Be firm. No means no. If you don't want to give a point, make your opponents feel like they just hit the wall. You will not be perceived as a jerk, so long as you offer a plausible explanation for your position.

•  Keep things moving. Don't let your opponents backtrack on you. Once an issue is settled, it's settled. Be supremely efficient and businesslike. Your opponents must feel that your time is precious and that you do not suffer fools at all.

•  Stay focused. In detailed negotiations, mental stamina is a tremendous asset. Victory goes to the dogged. The last person standing at the bargaining table is the one with the greatest power of concentration.

Back to Business Development Archive

Good Things Can Come From Bad Deals

Have you ever made a really bad deal? Admit it. We all have. It may not be taught in any school, but deal-making is a core competency in life—particularly in the business world, where wealth and success are a fetish. Your negotiating ability directly affects your income, your relationships and, ultimately, your station in life. That's why making a bad deal can be so hard to live down.

It's possible you did everything right. Sometimes, bad deals just happen, even to the best. But more often than not—and whether or not you're big enough to admit it—you probably had something to do with it. Don't avoid the post-game wrap-up. It's the only way to shave strokes off your score. Ask yourself the tough questions: How did you contribute to the problem? Did you miscommunicate? Did you forget something? What will you do differently next time?

It's important to think deeply and introspectively. Why did you make the mistakes you did? Were you too arrogant to ask for help? Were you too easily cowed by this opponent? Were you too greedy? Did you let things get too personal? If you can, find a good friend to help you debrief.

Back to Business Development Archive

Smart Spending for Surplus Cash

If you find yourself with extra money, the first thing you should do is sit down with your CFO and accountant to do some serious projections. Look at the operating cycle of your business and how much cash you're expected to turn under normal circumstances. Make sure the extra money really is excess and not a one-time bump from an unusual sale or savings from a one-time cost cut. Then sock away enough money in an interest-bearing account or low-risk investment vehicle to last several months—anywhere from three to 12 months, depending on your industry—should the economy contract and customers be unable to pay. Then, if you have extra savings, pay down debt. Once that's done, look at improvements that won't add a fixed future cost, such as employee bonuses and one-time improvements to technology or other essential machinery.

If your business still has a surplus after putting away cash and making improvements without fixed costs, then consider making more significant changes, such as adding staff, expanding to another location, or purchasing a building for the business if you're currently leasing.

Back to Business Development Archive

October

Costly Cost-Cutting Errors

When times are tough, you may be tempted to cut every expense under the sun to keep your business afloat. Beware, though—cutting the wrong things could end up hurting your business in the long run. Here are the cost-cutting measures that could ruin your business:

Mistake No. 1: Choosing cheaper materials for your product.

Mistake No. 2: Cutting back on advertising and marketing.

Mistake No. 3: Not doing inventory or financial reports when times are lean.

Mistake No. 4: Cutting R&D during the startup stages.

Mistake No. 5: Cutting anything that keeps a customer satisfied.

Back to Business Development Archive

When to Hire a CFO

Does your company have the adequate resources to handle tax planning, capital raising, cash management and all the other financial functions of a company? Or more simply: Is it time for your company to get a CFO? Of course, it varies from company to company, but answering some fundamental questions may indicate it's time to hire a CFO. Is the bill from your accounting firm surpassing the salary for a seasoned financial manager? Most entrepreneurial businesses turn to accounting firms for everything from taxes to raising capital, at a price tag of at least $150 an hour. "A good financial strategist will cost at least $90,000 a year, so do the math," says Steve Enright, president of SJE Partners, a Richmond, Virginia, HR consulting firm.

Do you need to raise equity capital to fund further operations? According to Hackeman, if your business wants to go beyond just regular bank loans for funding to the likes of VCs, private investors, the public markets or anyone else looking for a piece of the company, then it may be time to bring in a full-time financial expert.

Is your company beginning to do complicated financial transactions? While raising capital can certainly get complex, there are other financial factors that can drive an entrepreneur to seek out a full-time financial advisor. One may be that his or her company is in the process of buying other companies. Another is that your business is beginning to set up deals with suppliers, customers or both that demand financial structuring outside the realm of common sense.

Back to Business Development Archive

Is This Worth My Time?

Throughout the day, periodically stop what you're doing and ask yourself if what you're doing is the best use of your time. Ask yourself these few questions:

•  Is the task you're working on a top priority?
•  Is the task going to increase your business or income?
•  Does the task correspond with your goals?
•  Is it a task that someone else could handle, leaving you free to handle more important tasks?

If you answered no to any of the questions, switch to another task or delegate the task to someone else.

Back to Business Development Archive

Preparing for Tomorrow, Today

At the end of each workday, take a blank sheet of paper and write down everything you must accomplish tomorrow in the order the tasks should be done. The next day, you won't have to decide what to do first, and crossing off the things you accomplish will give you great satisfaction. Don't let the simplicity of a to-do list fool you; it's one of the best time-management tools ever invented.

You should create to-do lists each day or at least weekly. This will give you an overview of what to expect each week and give you time to make any changes in advance. Use it in combination with a calendar, and keep in mind that to-do lists are for tasks to be completed, while a calendar is for recording appointments.

Back to Business Development Archive

Marketing on $4 a Day

Research shows consumers need to hear a message at least three times for them to have name recognition and recall, and nine times before they become a customer. One-time or sporadic tactics are ineffective in increasing awareness, acceptance, preference and demand for your product. You can create more marketing momentum with daily action. One way to do this is to use a $4-a-day marketing program.

The basic strategy is to contact 10 clients, prospects or contacts each day, five days a week. You can contact them by phone, fax, e-mail, letter or postcard. You can send out press releases, sales or follow-up letters, brochures, special offers, information sheets or thank-you notes. Your cost is about 55 cents to print and mail five letters for a total of $2.75. The telephone calls or faxes cost about a quarter each for a total of $1.25. You do the math. If you're communicating by e-mail, your costs will be even less. Your goal is to create a combination of daily activities that help you communicate with existing as well as potential customers. 

Back to Business Development Archive

November

Back It Up!

At any time, you could lose your computer equipment, whether it's a laptop that gets stolen or a desktop that's lost in a house fire. So be prepared: Back up your data weekly—or even daily. Some backup options include portable hard drives, DVD-writers and online data.

There are also several networked data storage options, including:

•  Direct Attached Storage: Known as DAS, this technology attaches storage media (like disk arrays and tape backup) directly to servers.

•  Network Attached Storage: Called NAS, this standalone, self-contained solution connects directly to a LAN, rather than to a server. The separation of data from servers tends to improve performance.

•  Storage Area Network: SANs create a separate, dedicated high-performance network that is highly secure and scalable.

•  iSCSI SAN: This type of SAN offers most of the strengths of the Fibre Channel SAN, but it's easier to install, has lower-cost connections, is much easier to manage and grows with your business.

•  Managed Storage Network: Managed storage services are offered by specialized service providers. Businesses can contract with these providers, who implement and maintain the storage network on an outsourced basis.

Regardless of which backup method you choose, remember it's better to be safe than sorry when it comes to your data.

Back to Business Development Archive

Leave No (Paper) Trail

Drowning in paper? Technology can help you reduce or even eliminate your need for paper. Try the following nine options to free your office from stacks and stacks of paper that threaten to overwhelm:

•  Computers: PCs, laptops and handhelds can be combined for document creation mobility and flexibility, stamping out rampant paper use.

•  Scanners: Scanners create digital images so that documents can be exchanged electronically and preserved easily. When scanning, remember to employ image compression to maintain network performance, and make sure to choose a single, standardized electronic document format so that images can be indexed and searched easily.

•  E-mail: E-mail is a great substitute for paper memos. Effective e-mail systems should allow users to filter content and file messages electronically by topic. They also should let workers combine e-mail with fax and voice-mail retrieval in a unified messaging system.

•  Storage systems: Affordable, robust storage technology is essential for high-speed, centralized electronic information management. Check out low-cost systems built upon RAID (Redundant Array of Independent Disks) technology or iSCSI-based storage-area networks.

•  Fax over IP (Internet protocol): The boring old fax goes high-tech with a Web- or e-mail-based fax capability that eliminates the need to send hard copies.

•  Wireless local area networks: Wi-Fi LANs are spreading like wildfire, making electronic information mobile, portable and easily accessible to workers anywhere.

•  Secure remote access: Virtual private networks (VPNs) ensure that home workers and road warriors get secure, confidential access to the company intranet, abolishing the need to lug around a briefcase full of documents.

•  E-learning systems: Workers in training can say good-bye to books and binders when they use online or Web-based training systems.

•  Advanced printers: Printers that print on both sides of a sheet can significantly reduce paper use.

Back to Business Development Archive

Shopping List

If your company is going to expend the time and resources on new technology purchases, they need to be worthwhile. Keep in my these three tips next time your company is ready to do some serious tech buying:

1. Renegotiate existing contracts for services such as network support and consulting. Telecom is especially ripe for bargains. Start by setting benchmarks for rates and auditing bills to ensure you're not overpaying. Then instead of buying all long-distance, local phone and other telecom services from one vendor, dual-source it. Vendors will treat you better and charge you less.

2. Make sure you need whatever new technology you do buy. Inventory all PCs, printers and software. Look for opportunities to consolidate purchases, standardize configurations and root out duplication.

3. Set up a system to keep doing it. Pick a team of people from IT and other departments, and meet with them regularly to discuss what they need and how to save on it.

Back to Business Development Archive

Up to Date

Here are some of the most effective and least expensive items you may want to buy to bring your older computers back up to speed:

Hard Drives. One of the most important features of any computer is its ability to store large amounts of data. Whether you need desktop drives to back up your primary hard drives or store your digital video files, or a portable large-capacity drive to carry a hefty business presentation, there are several solutions that may help meet your needs.

CD-ROM/R/RW and DVD-ROM/R/RW Drives. Upgrading to a speedier CD-ROM drive may be just what you need to give your system a valuable boost in performance.

Processor Upgrades and Accelerators. Processor upgrades and accelerators allow you to increase the overall performance of a computer by allowing it to process information faster. Accelerators do this by shifting operational functionality and providing additional cache memory, thereby freeing up the computer's main processor so it can do its real job-running software applications.

Memory. While everything that has already been mentioned can help increase the usability of your current computers, one of the most tried and true ways to improve performance is to simply install more random access memory, otherwise known as RAM.

Back to Business Development Archive

December

Employee Economics

Employees can be your most costly investment. If you're not sure you're ready to take the jump to hire a full-time employee—and pay for their benefits and deal with the HR headaches—there are alternatives. Employee leasing—in which you turn over your work force to a professional employer organization that leases your employees back to you—can save you substantial cash on employee benefits, says Bruce Steinberg at the American Staffing Association (ASA).

Or, rather than paying for employees who sit idle when business is slow, consider hiring temporary employees to handle surges in business. Anther way to get free or low-cost help—and give college students a chance to learn the ropes—is by hiring interns. Check with your local university for more information.

Back to Business Development Archive

Buying Brainpower

Sometimes it's not what you buy, but how you buy that will save you money. Check out these smart shopping tips:

•  Stretch your budget with barter. Swapping one product or service for another is a good way to avoid cash outlays—and unload slow-moving inventory. If you'd rather not bargain with other businesses directly, hire a commissioned barter broker (listed in the Yellow Pages under "Barter"), or join a commercial barter club or exchange.
•  Time your payments. Ask suppliers if they give discounts for early payment. If not, it's to your advantage to pay your bills—including utilities, taxes and suppliers—as late as possible without incurring a fee. The longer money is in your account, the longer it's earning interest for you.
•  Join an association. Many trade and business associations have reasonable membership fees and offer discounts on everything from insurance, travel and car rental to long-distance phone service, prescriptions and even golf course fees.
•  Seek at least three bids on everything. Even mundane purchases merit shopping around. If you quote a competitor's lower price, a supplier or vendor will often match that price to win your business.

Back to Business Development Archive

Franchising and Licensing

Have you ever considered turning your business into a franchise or business opportunity? The key question to ask yourself is if your business can be converted into a business format that somebody else could operate (a franchise) or if you have a standardized product or service that someone could resell multiple times (a business opportunity). While you may think that expanding your business requires raising capital, hiring employees, buying equipment and leasing office or warehouse space, it's often more profitable—and less risky—to license your product to a big corporation with manufacturing capabilities and an existing sales force to do the work for you.

Back to Business Development Archive

Should You Open Another Location?

This might not be your best choice for business expansion, but it's what often comes to mind first for so many entrepreneurs considering expansion. Take a look at the following six tips to see if opening a second location is the right move for your business:

•  Make sure you're maintaining a consistent bottom-line profit and that you've shown steady growth over the past few years.
•  Look at the trends, both economic and consumer, for indications on your company's staying power.
•  Make sure your administrative systems and management team are extraordinary—you'll need them to get a new location up and running.
•  Prepare a complete business plan for a new location.
•  Determine where and how you'll obtain financing.
•  Choose your location based on what's best for your business, not your wallet.

Back to Business Development Archive

2006 - January

Develop Your Social Capital

Social capital is very similar to its monetary sibling. It, like monetary capital, is accumulated by an individual or a business and used in the production of wealth. Put more simply, it's the accumulation of resources developed through personal and professional networks. These resources include ideas, knowledge, information, opportunities, contacts and, of course, referrals.

Effectively developing your social capital can be a daunting task. However, doing so within a structured, organized networking framework will leverage your efforts and help you begin building your balance of capital to positively impact your bottom line. A key way that social capital is acquired is through networking because successful networking is all about building and maintaining solid, professional relationships. Plan your word-of-mouth marketing efforts just as you would any marketing effort. Give referrals constantly. It helps build your contact network, and good business karma as well. And show professionalism at all times. Being dependable, delivering a product on time, meeting appointments consistently and treating others with courtesy will give you a professional reputation and cause you to be remembered by those you wish to have become a contributor to your social capital.

Back to Business Development Archive

Exit Strategies for Computers

Old PCs don't die, and they don't fade away, either. The average PC will run almost forever, and the harmful chemicals inside it will survive in your local landfill for even longer. How many long-lived-but-obsolete computers is your company moving around among staffers? There's definitely a point of diminishing returns in holding on to PCs past their prime, as well as hidden costs in just about any disposal method you choose. Recycling, selling them to employees or giving them to charity are all viable options, but they all have costs attached—many of which may surprise you. It's a good idea to have an exit strategy for your old hardware—and it should be in place long before the intrinsic value of your PCs hits zero.

Complete depreciation is often here before you know it, but there's good news in that respect: After years of decline, PC life expectancies are in an upturn, says IDC analyst Alan Promisel. The average middle-of-the-road PC now has a useful life of about three years; a high-end desktop, about four years. But be careful: Nurse an old PC along for too long, and productivity suffers—for low-level staffers as well as managers. Worker efficiency declines along with equipment efficiency, so when software takes longer to load, screens take longer to redraw and incompatibilities start to occur, memory upgrades need to be deployed.

Back to Business Development Archive

Why the Dump Isn't the Answer

According to Gartner Research, more than 400 million computers will be replaced by individuals and businesses from 2004 to 2006. But according to ACNielsen International Research, only 15 percent of those polled realized they could recycle electronics in their local area.

Old PCs have chlorinated and brominated substances, Poly Chlorinated Biphenyls (PCBs) and Poly Vinyl Chloride (PVC), heavy metals, gases, acids and plastic additives—and that's just for starters. (For a complete list, see the SVTC website.) All those chemicals have incredibly long half-lives. You want your new house sitting on top of this stuff? Not to mention, the EPA will be all over you if you're discovered throwing PCs in the trash.

Back to Business Development Archive

What Will It Cost?

In general, a lot of PC disposal costs are realized in soft dollars, and a certain amount of those are fixed. IDC says it will cost companies at least $150 for every PC taken out of service. First, there's the labor involved in physically removing a system and its network components, disconnecting peripherals and scrubbing the hard drive of software, passwords and sensitive company files. Then there's the downtime for employees during the move. After that, your costs will vary depending on how you choose to dispose of the old PC and may include payment for things like testing and repair or, in many cases, contractual or other legal costs.

Back to Business Development Archive