10 Things a Small Business Can Write Off

We all have one fear in common – everybody is just a little bit afraid of the IRS. Although a little fear is healthy, for the small business owner or self-employed individual, too much fear of the IRS can be bad for the bottom line.

If you want to pay less income tax, take the time to learn what others in your industry are deducting, and track every legitimate business expense. The savings could easily be several hundred dollars. Start with these ten categories.

Home Office Expenses: If you operate your business from your home, a portion of your household insurance, rent, repairs, maintenance, utilities, and other expenses could be deductible.

Business Mileage: If you track every business mile driven, you’ll pay less tax. But, if those miles aren’t tracked properly they can be disallowed.

Interest on Business Debt: Monthly business checking account fees, bank overdraft penalties, business credit card finance charges, interest on a home equity loan taken out to fund your business, and annual credit card fees are all deductible.

Self-Employment Health Insurance: Self-employed health insurance costs are a business deduction, and are subtracted on your personal tax return.

IRA and Retirement Deposits: Self-employment and small business Retirement Accounts and IRA Deposits are also posted to your 1040 personal tax return.

Promotional Expenses: If you spent money, or traded goods, to get your business name or product out to the public, that cost is deductible as a promotional expense.

Seminars and Classes: Any classes that make you better at what you do to produce income, as well as general business classes are all deductible. Remember to record all mileage and travel expenses if you have them; those are deductible too.

Subscriptions: All magazines, newspapers and newsletters you purchase to enhance your business knowledge, including online subscriptions, can be deducted on your business tax return.

Rent: If you pay rent for an office, desk space, chair space, or storage space, rent tools or equipment, pay for loft space, or have other rent expenses within your business, those expenses are deductible.

Inventory: Inventory costs are only deductible as inventory is sold; unlike most other business expenses, it is not always deducted in the same year as the money is spent. The IRS has specific rules for inventory management.

A tax professional can only work from the information you provide, and unless you understand what you can and cannot deduct on a business return, even a good tax professional will miss valuable deductions. Keeping good records, documenting all business expenses are all you’ll need should an audit arise.

Small Home Biz – Top 10 Home Based Business Ideas and Opportunities For a Beginner

Kudos to the small home biz segment that brings into a significant number of the educated, senior and entrepreneur work force from the masses. This section comprises of the people who cannot resist the temptation of working in niche areas and utilizing their creative skills without the corporate intervention and hypes. The small home business sector provides them the essential opportunity they are searching for. No fancy skills like web designing, computer programming and scripting are required for these top 10 home based businesses. It is a small leap from a full-time office job to a full-time “working from home” which eventually gives way to flexible hours when there is a steady source of income.

My choice of “Top 10 home based businesses” that will give you an edge and expedite earnings to break even quickly with your investments are the ones that produce results and have ways to measure your incremental success in steps, however small. A birds eye view of the systems that will make you a self employed home biz owner –

  • Plug-In Profit Site (PIPS)
  • Niche Profit Classroom (NPC)
  • Ewen Chia’s Super Affiliate Inner Circle Club
  • Internet Marketing Centre (IMC)
  • Strong Future International (SFI)
  • Empowerism
  • Global Domain International (GDI)
  • The International Association of Home Business Entrepreneurs (IAHBE)
  • Warrior Pro
  • The Reverse Funnel System
  • Plug-In Profit Site commonly known as the PIPS program comes with a complete money making system that runs on auto-pilot. The package has everything – a professional website, reputed 5 affiliate programs, pre-written sales letter and automated emails by an autoresponder. It is all about earning a residual income from the internet. The advantage of the program is that it gives a kick-start to a newbie who is readily equipped with a useful internet product. A small disadvantage of the system is the initial cost of the membership programs and a 30 days training series that may end up in a total spending spree for an inexperienced marketer.

    Niche Profit Classroom is a membership program that I have found very helpful from my personal experience. NPC provides one-to-one support, premier web hosting for 15 domains and ready made high quality niche websites that are very easy to customize and deploy. The video tutorials are very educational and are made keeping the view of a novice who is new to the internet with no expertise in computer skills. Every month, you get instant access to two ready made businesses and a step by step approach to implement the blueprint. The membership fee is slightly on the higher side for newbies who have just come in but worth investing.

    Ewen Chia’s Super Affiliates Inner Circle Club is a monthly membership program in which the super affiliate shares the secrets, strategies and resources on how to make a fortune from affiliate marketing and various other online techniques. The membership provides 5 modules out of which three of them provide new content every month. One of the modules contains products that you have PLR (Private Label and Resale Rights) that alone is worth your investment in the program.

    Internet Marketing Centre has 12 modules and each module contains a number of lessons, resources along with bonus materials that are broken down into small steps so that you can follow the time-tested, proven business building techniques in order to make profits. There is an action plan for you to follow once you read the lesson. You should join only if you are serious and ready for investing a significant amount of the one time yearly fee. With the latest upgrade, it comes in different options of quarterly payment as well.

    SFI for more than ten years is successfully showing masses how to build a highly profitable internet business from the comfort of the homes. By promoting TripleClicks, an online store, the affiliates can earn commissions by simply referring the people to store. To grow in SFI, you need strong referral and sponsoring skills that can be easily built up with the online SFI training.

    Empowerism is a great web based home business that provides state-of the art website, powerful SEO tools to help drive free traffic to your site, comprehensive training with full access to resources and free “Excellence” magazine that is filled with latest online success tips and strategies. The only thing which may deter one’s online business is that one needs to be good in referring and building network.

    IAHBE is an organization that champions the home-business opportunities and provides access to an unparalleled, one-of-a-kind business building arsenal of your own. You will have at your disposal, dozens of exclusive reports, interviews with the internet’s most successful entrepreneurs, and much more!

    GDI Fight the recession with the most powerful home business, an easy program to build an income from home. GDI offers a great product – domain, web hosting and it is 100% free to sign up for. This eliminates a lot of objections that prospects have when they are looking at online business opportunities. There is absolutely no risk involved.

    WarriorPro comes with a subscription to Host4profit, membership to the world famous Warrior Forum and a complete Ad tracking system. It pays you for each person that signs up for a Host4Profit hosting account either through your PIPS site or individually and is a great way of earning residual income.

    The Reverse Funnel System is an extremely profitable business built in the PIPS website where you get 100% commissions. It is not a scam but requires a significant money amounting to $2K to $5K for the membership schemes that are quite expensive. Hence it isn’t for all and does not provide a launching pad for people who are not prepared to invest.

    Today there are thousands making it big with their home based business. Success is certain for tenacious people who are there for the long haul. Just take up some or all of the above and give your best shot.

    The Four Stages of ‘Change Curve’ Small Business Owners Should Know

    The ‘Change Curve’ is a helpful tool for small businesses to understand the stages of personal transition each employee undergoes. Kubler Ross developed this model to explain the grieving process (Shock and Denial, Anger and Fear, Acceptance and Commitment).

    This model helps small business owners predict how employees will react to a change, and advises how to help and support the employees through their personal transitions.

    An organization does not change just because of new systems or processes. It changes because people within the organization adapt and change. Only when people within the organization make their own personal transitions can the organization benefit from the change.

    The Change Curve model

    The ‘Change Curve’ model helps small business owners understand the stages of personal transition and organization change. This model comprises four stages that employees go through as they adjust to a change.

    Stage – 1: Shock and denial

    Stage – 2: Anger and fear

    Stage – 3: Acceptance

    Stage – 4: Commitment

    Stage – 1: Shock and denial

    This is the first reaction that small business owners notice in their employees – they react to the challenges to the status quo. This reaction is seen more in experienced and established employees because these employees are indifferent to new systems and procedures. They feel uncomfortable because of the fear of the unknown, fear of doing something wrong and lack of information. They feel threatened and fear failure. Under these circumstances, they normally take it as a friction rather than an opportunity.

    What do the employees need here?

    Employees may experience this stage multiple times. To get over it, employees need information, need to understand what is happening in the organization and need to know how to get help from the organization.

    Note: This stage affects particularly those employees who have not experienced any major change before.

    What should the organization do?

    At this stage, it is the responsibility of the owners to communicate with their employees and educate them about the benefits that they will gain by adapting to new systems – personally and professionally. Remember not to overwhelm your employees by flooding them with loads of information at a time, or they may even be more confused.

    Stage – 2: Anger and fear

    This is the second stage that is seen in the employees. As employees react to a change, they start expressing their anger, concern, resentment or fear. They may resist the change actively or passively. This stage could be dangerous and if the organization does not manage it carefully, it might result in chaos.

    What should the organization do?

    At this stage, the small business owner should handle employees’ objections carefully. Since reaction to change is personal and emotional, it’s impossible to prevent it from happening. Therefore, the organization should try to address the employees’ experience and iron out the issues as early as possible.

    Note: As long as employees remain at Stage – 2 of the Change Curve by escaping progress, the change will be unsuccessful.

    Stage – 3: Acceptance

    This is a turning point for employees as well as the organization because the employees have stopped focusing on what they have lost and have started accepting changes. They begin exploring changes, and get a real idea of what’s good and what’s not and how to adjust themselves accordingly.

    What should the organization do?

    This stage is critical – it takes time for employees to learn and accept things. Therefore, don’t expect your employees to be 100% productive during this stage. Give them time so that they learn and explore without much pressure.

    Stage – 4: Commitment

    At this stage, there will be a commitment from the employees in analyzing and embracing the change. They start rebuilding the way they work and this is the stage at which the organization starts to see the benefits of the change.

    Benefits of the change

    At this stage the organization will see the benefits of putting in effort for the welfare of their employees when they were in a grieving stage. The positive effects of the Change Curve are now more evident through its productivity and profit.

    The Change Curve is an effective model for small business owners while managing employees. Locating an employee on the change curve will help the business owner decide on how to effectively communicate information to employees and to know what kind of support they require. This helps them take necessary measures and protect both the business and the employees.

    Top Reasons Every Small Business Must Perform Online Reputation Management

    One of the biggest mistakes any small business owner can make is to believe they don’t need to engage in online reputation management, just because they run a small business.

    Nothing could be further from the truth.

    In fact, the very fact that you run a small business makes it all the more imperative to manage your online brand image for two reasons:

    1. Customer referrals are the lifeblood of all small businesses

    2. You don’t have the luxury of a large marketing budget to control negative reviews or restore a damaged reputation like a large business can.

    Let’s look at the first three reasons why online reputation management matters to small business owners:

    * ONLINE SEARCH

    The massive growth in online media and the rapid decline in offline media has made it necessary for small and large businesses alike to change direction and focus on their online image.

    More and more people the world over look for information on just about everything from the web and this applies to information about your local business.

    Your target market is more apt to look for your business online through a Google, Yahoo or Bing search rather than leafing through a Yellow Pages Directory book.

    * SPEED

    The speed at which online media operates can make or break your business in a matter of minutes or hours.

    A viral tweet, video, blog post or status update can be viewed by thousands if not millions of people in a span of a day creating a much more powerful effect in a shorter time than any traditional offline media.

    Even a small local news story can be broadcast across the nation with a YouTube video.

    If the news story was positive, a small business can get a lot of positive PR and increased sales, but if it was negative, it can literally destroy the business.

    Plus we all know that bad news spreads faster than good news.

    * EQUAL OPPORTUNITY

    Online media is largely an equal playing ground for both small and large businesses, so any business no matter its size can get exposure, criticism and accolades on the internet.

    This means that even small businesses cannot afford to ignore online reputation management because the internet has made the world so much of a smaller place.

    The emphasis placed on local search by dominant web players such as Google, Facebook, Yelp and others, has given more power and opportunity for small businesses to grow their presence online.

    Yet this increased awareness has also made it critical for any small business to know how to handle the huge public exposure and scrutiny that is part of the package.

    Here are three more reasons why small business owners must pay attention to their online reputation.

    * ECOMMERCE

    Ecommerce has made it so much easier for small business to grow beyond their town or city locale to nationwide or even international market.

    Online shopping carts and payment processors have made this all possible, meaning that as a small business engaged in ecommerce, managing your online reputation is crucial to protect your online sales.

    Negative reviews about your products, services and customer service can damage your online sales, which can be certainly be detrimental if your small business makes more money from ecommerce than in-store sales.

    In addition, when you consider how certain towns, cities and states have had poor growth in the current economic recession, ecommerce can be the lifeblood of a small business trying to survive.

    * SOCIAL PROOF

    One of the biggest social phenomenons of ecommerce is social proof.

    Do you know that an overwhelming majority of surfers do not trust advertisements but instead trust endorsements and reviews from people in their social networks or from ordinary people like themselves?

    This is what makes consumer review sites so popular and how it is so easy to convince a new client to do business with you once they have read positive reviews about your company.

    Therefore in order to protect your online reputation, it is important to know what people are saying about your business because this is the single most important influencing force behind a potential clients purchasing decision.

    * ONLINE SEO

    What many business owners fail to understand is how permanent a footprint bad publicity leaves on the web.

    Once content has been published on a website, indexed by the search engines and shows up in the search results, it is extremely difficult to have that content removed.

    It is not as easy as telling Google to remove the offending page because they have no power to do that.

    It often involves contacting the webmaster of the blog or site where the content was posted and trying to convince them to delete the content, make the page invisible to search engines or to remove the page.

    This is often quite difficult as they have ownership rights over the site.

    Even if you resort to legal measures and they eventually remove the content, it is still difficult for that content to get totally off the internet radar especially if the content was widely circulated or went viral.

    Online content is definitely very sticky and something that happened many years ago can haunt your business reputation for many years to come.

    12 Good Reasons Why You Should Aggressively Seek Publicity For Your Small Business

    It’s unfortunate but true that many small businesses have the attitude of “just leave me alone and let me do my thing.” They do not seek or welcome attention from any outsiders, especially if the outsiders are the media, the government, or some kind of consumer or advocacy group. It’s the classic head-in-the-sand approach: “Maybe if I ignore them, maybe they’ll go away.” Perhaps there was a time when the marketplace would tolerate this kind of fiercely independent attitude. But that time is past.

    Today’s marketplace is no longer merely competitive, it is hyper competitive! The shelves and racks of our stores and malls are loaded with dozens of “me too” products. Bankers now sell insurance and insurance salespeople now offer CDs. A single “mega-dealer” might carry a dozen or more car brands, and literally hundreds of models of automobiles and trucks on a single square block lot. It seems like every major interchange along the interstate now has to have at least two sprawling truck stops catty-corner from one another, with one or two fast food joints thrown in nearby. Did you ever expect to see the day when hospitals would advertise on billboards and television, like soft drinks or fast food joints?

    A recurring theme you will encounter again and again in my books — because I think it’s that important! — is that in this complex competitive milieu it’s critical for you, as a small business to differentiate yourself in as many was as possible from your competitors. Positive publicity is one of the most powerful, and yet under utilized promotional tools available to small businesses and organizations to help accomplish that goal. Why should my small business, agency, or group seek out positive coverage in the media? Is it really worth all the time and hassle? Here are a dozen very good reasons why you should be generating as much favorable publicity for your business, agency, or group as you can:

    1. It is simply a smart dollars and cents investment in your business’ or organization’s future (read that as survival). Whether you measure your “profit” in terms of dollars left over after expenses are paid or in terms of more contributions, more members, or more clients served, promoting your business’ or organization’s name and activities is no longer an optional “it would be nice if” task; it’s critical to your survival!

    Every positive article or photo published in the daily newspaper, every favorable one-minute clip on the early evening news, every complimentary mention in some specialty newsletter or magazine is FREE! Sure, it may cost a little bit of staff time, some duplicating and postage expense. But it did not cost you anywhere near the big bucks that the same number of column inches in the newspaper or the same amount of airtime on the TV news would have cost if you’d paid for it like advertising.

    For example, a half-page ad, which is about the same amount of newspaper space as a good sized feature story, will likely cost $500 to $600 in a small town daily, perhaps $1,500 in a newspaper in a medium-size market, and as much as $3,000 or $5,000 in a large metropolitan newspaper. If you had to pay for a one-minute story on the TV late evening news like an ad, it would run you $200 to $250 in a small market, $500 to $1,000 or more in a medium market, and $2,500 to $4,000 in a large urban market.

    State and local tourism promotion agencies generally spend most of their budgets on writing and sending out their own news releases and on bringing in travel writers and editors for what are called “familiarization tours” (known as “fams”) to generate articles and feature stories about the state or local area’s attractions.

    Yes, they do run paid ads from time-to-time in selected media, but this is generally only a fraction of their over all promotional budget. A state tourism agency I’m familiar with did a cost vs. return analysis on their publicity efforts. Over the years, the bureau kept records of the articles and TV features that appeared as a result of its efforts; it estimated that there had been about a 4 to 1 benefit to cost ratio. In other words, if the tourism bureau had paid for the “free” editorial space and airtime it had received, like advertising, it would have cost four times as much as it had spent on the news releases, media kits, and “fam” tours. That’s not a bad return on investment.

    2. You get much more “bang for the buck” in terms of audience attention with editorial coverage. This is a kind of corollary to number 1, the opposite side of the same coin; only here the focus is on audience attention rather than on dollars spent. What I’m suggesting is that on an inch-for-inch basis (using print media) or a minute-for-minute basis (using electronic media), you will get far more reader or viewer attention from free editorial space or time than you will from an equal amount of paid ad space or time. In other words, they — whoever it is you’re trying to reach — will be much more likely to actually see, and even more importantly, pay attention to your message if you are able to deliver it through a positive mention in the newspaper or on a TV newscast than they are through paid ads in the same media.

    Just think for a moment about how you read newspapers and magazines, or how you watch television or listen to the radio. If you’re like most people, you read most of the articles (or at least the headlines) in the newspaper but at the same time, skip over the ads. That is, unless you’re specifically looking for something. For example, you need tires so you look for an ad from someone who is having a tire sale; you’ve been thinking you need a new sport coat and you notice your favorite shop has announced its new spring arrivals; only then do you notice the ads. Or you watch the TV news stories with interest but pick up the paper and read a few paragraphs or carry on a conversation with your spouse or go to the kitchen (or bathroom) or just hit the mute button during the commercials! Sound familiar?

    I know of a small manufacturer of a specialty garden tool who has tried display ads in various gardening magazines, but finds he gets two, three or more times the number of responses results, in terms of inquiries or actual orders, from just one mention in one of those same magazines’ new products columns.

    3. It’s just good sense to build your “bank account of goodwill” with the media and the community. If it’s true we’ve moved into a new era of competitiveness in the economic marketplace, perhaps it’s only slightly less true to say that we’re also entering a new era of contentiousness in our organizational and personal relationships. Individuals and organizations seem willing to sue one another at the drop of a hat. Advocacy and special interest groups, with their “in your face” confrontational approach to everything, sprout with the ease of dandelions. The Internet has become easily the world’s most powerful word-of-mouth medium (read that as “rumor mill’), where anyone can say just about anything about anyone else, and often does. Legislators promulgate laws that run to 1,000 and more pages. And regulatory agencies issue voluminous and highly technical manuals of rules and regulations on practically a daily basis. And, of course, the media seem to delight in reporting corporate scandals and controversial issues.

    What seems to be emerging is a new expectation of corporate and institutional accountability on the part of the public. Perhaps it’s the long-term fallout from Watergate, Three Mile Island, and, more recently, Enron and Worldcomm, in which there was a perception that the politicians or corporations involved were less than open and honest in their dealings with the public and the media. This perception contrasts especially with the public’s highly favorable attitude toward Johnson & Johnson after that company’s enlightened handling of the Tylenol tampering case in 1982.

    It seems clear that if it hasn’t happened already, we are certainly nearing the end of the time when even small local businesses or organizations can get away with a “just leave me alone to do my thing” attitude toward the community and the media.

    Sooner or later, every business is likely to need something from the community: a zoning change to put up a new building, a variance on a sign ordinance, a city (or county or state) economic development grant (or loan guarantee) to create more jobs, a long-term lease to use city property for storage purposes, permission for a new curb cut, or an extension to a street or alley to improve access to its property.

    All these “needs” involve an approval process that almost invariably includes a public hearing, with the opportunity for interested or affected parties to have their say. Very often that “say” takes the form of virulent and totally unexpected opposition.

    Now, I’m not suggesting that a regular program of positive publicity for your business will guarantee that you’ll never be faced with neighborhood opposition to your request to rezone a piece of property so that you can build an addition to your building or that some local advocacy group will never issue a critical statement to the media finding fault with one of your policies or procedures.

    However, what I do suggest very strongly is that a diligently conducted publicity program that regularly generates favorable coverage in the media is like building a bank account of goodwill with the community, the media, local government and even regulators. Even if it can’t altogether head off any given controversy – and, anyway, how would you ever know if it did? – it may well mean that you’ll at least get less hostile, and perhaps even favorable, treatment in the media, which in turn means less harsh treatment in the court of public opinion.

    4. You simply have a right to more media coverage. As a business or organization that involves people and interacts with the community, you simply have a right to more space or airtime than you are probably now receiving. It’s part of the fundamental openness of the democratic process. The fact is, most businesses or organizations do not get their fair share of media coverage; usually because they haven’t bothered to tell the media about the interesting and legitimately newsworthy things they’re doing.

    When I was a newspaper reporter, I always looked forward to doing feature articles on local businesses for the traditional year-end special section — we called ours the “progress edition.” I was constantly amazed at the many fascinating and previously untold story ideas I discovered in virtually every business or organization I visited. When I would tell the folks at the business, “This is a great story! How come you never told anyone about it?” they would look at me disbelievingly and answer, “Gee, we never thought anyone was interested.”

    I think it may be one of those “can’t see the forest for the trees” things. As a business or organization that is involved in its activities on a day-today basis, there doesn’t seem to be anything unusual or noteworthy about those activities. You take for granted that if you’re familiar with your activities, everyone else is as well. But the fact is, most small businesses and organizations have many reasons for sending out a news release, a topic we’ll explore much more fully in the following chapter.

    5. It’s free! For often capital-poor small business start-ups, the free publicity that is available through the media may be the only way they can afford to reach the public. Charles A. Hillestad, who, with his wife, is the owner of the Queen Anne Inn, says he used “audacious” public relations to help launch their ten-room bed and breakfast operation near downtown Denver, Colorado, according to an article in Marketing News.

    Hillestad was able to generate mentions of his inn in such prestigious publications as the New York Times, as well as in Inc., Elle, and Bridal Guide magazines. Among the various “tricks” he used to generate free publicity was sending articles about the inn to magazines outside of the travel industry. For example, by customizing articles to the specific editorial approach of each magazine, like focusing on the inn’s antiques for an antiques magazine, or sharing some of the inn’s recipes with a food publication.

    6. It’s more believable (and more memorable). Even if your business can afford to and does use paid advertising as a promotional tool, you should still make the maximum possible use of publicity. Why? Because people simply have more faith in what they read in the editorial columns of a newspaper or magazine and in what they hear from TV or radio commentators than they have in paid advertising.

    News is more believable than ads. Everyone “knows” that ads are mostly fluff and hype (read that as exaggerations, if not outright lies). And everyone “knows” that if you read it in the newspaper or see it on TV the news that somebody has (more or less) checked it out and that, therefore, it’s (more or less) “the truth.” Now, I recognize that both of those statements are gross over-simplifications, but I would also suggest that it’s a pretty accurate of our general reaction to news and ads.

    What’s more, news articles are generally more memorable. My friends Xochi (pronounced so-chee) and Mitch Pannell opened their flower and gift shop several years ago. Just as their grand opening date neared and they were eagerly anticipating the arrival of their inventory, UPS went on strike. With their opening just days away and their shelves virtually empty of gift items, Xochi called the local newspaper, who came and took a picture of the couple looking anxiously out the front window of their store hoping to see a UPS truck. The photo ran on the newspaper’s business page under a headline that said “Where’s UPS?” What is interesting about this little anecdote is that now, years later, people still mention that photo.

    7. You can definitely “sell” with publicity. Sales pitches are by no means limited to paid advertising. I return to the tourism agencies, and, by extension, the entire hospitality industry, mentioned earlier, as a classic example of what I mean. Just look at how effectively they have used positive publicity as their primary sales tool over the years. Make no mistake about it, all those rah-rah feature articles about fun places to go in a travel magazine, and all those favorable restaurant reviews in a newspaper are most certainly selling you on those spots as somewhere you should visit.

    What’s more sales-oriented than a direct-mail catalog? Most generally it’s nothing but ad-like pitches for some company’s products, right? But take a look at the Patagonia catalog, a highly successful outdoor clothing and equipment mail-order house. You’ll find page after page of “articles” written by staff members and customers about their adventure trips where they used their Patagonia clothing and equipment, rather than the more conventional photos or drawings accompanied by a description of the product and the price. Patagonia catalogs are avidly read and jealously guarded, more like a treasured magazine than just another mail order catalog.

    8. Publicity can even generate revenue. More than one organization has successfully converted its free-distribution newsletter, originally published as a public relations or promotional tool, into paid subscriptions. This has been a particularly successful approach in the health and fitness industry.

    In addition, there is always the possibility of putting together a collection of articles you’ve generated and originally distributed as news releases to generate free publicity into a pamphlet or booklet and marketing it. For example, this might work well for a how-to business, such as a hardware store or home center. Finally, sometimes you can even get paid for writing an article for a magazine or journal, especially if you have some unique expertise to offer (see item 12 below).

    9. Regular exposure in the media legitimizes your business. As mentioned earlier, there is a subtle but nonetheless very real perception people have that if something’s in the paper or on TV it must be important. The media themselves foster and promote this attitude because it makes their role seem more important, more indispensable. If your name shows up regularly in a positive way in the media, it helps pave the way for when your business goes to see the bank for an expansion loan. Regular mentions in the media say to the community, “We’re here to stay. We’re neighbors contributing to the economic well being of the community. We’re not some fly-by-night outfit that’s here today and gone tomorrow.” Regular mentions of your business and its people adds to your prestige, your credibility, your stature.

    10. It can help you recruit good employees. You might think this item ought to be included under the last one, but actually it deserves stand-alone status because it’s going to become increasingly important in the years ahead. Changing demographics and life-styles suggest that there will be increasing shortages of skilled and experienced workers in many fields.

    So, when you run your ads in the classified section or post a job to an online job bulletin board for the people you need to hire in order to expand and grow, what’s their reaction going to be? Are they going to recall reading and hearing positive things about your firm and therefore think, “Yeah, that’d be a good place to work. You can get ahead there; they always seem to be promoting people. They seem to be interested in their employees. Wasn’t there something in the paper about a new training program they just aalunched?” Or is their reaction going to be something like, “Why would I want to work there? I’ve never heard of them.”

    11. You can do it yourself. If you don’t have a background in marketing and promotional work, successfully generating favorable exposure through news releases is easier to accomplish on a do-it-yourself basis than through paid advertising. A paid ad campaign, especially if it involves a highly competitive marketplace and extensive use of mass media (particularly TV), requires a good deal of sophistication to be effective. With publicity, you can “dash off” a basic news release and still get the attention to a reporter or editor.

    12. You can become a media “source.” Finally, it’s simply a good idea to develop relationships with the media in the same way that it’s a good idea to develop other kinds of friendships in the community. Today’s buzzword for this is “networking.” The fact is, writers and reporters are always on the lookout for “sources,” especially at the local level. For most reporters, especially at the local level, nine out of ten of their “sources” are people in various specialized fields whom they have come to know and trust and whom they call on for background information to help them understand a complex issue they’re reporting on. In many case, a “source” is quoted directly, thus giving yet another positive plug to the business or organization the source is affiliated with. But, even you’re not quoted directly in the story, think of the important influence you could have on how the media reports information vital to your field.

    Publicity is free or very low in cost, especially by contrast to paid advertising. Publicity is a very powerful promotional tool, perhaps even more powerful than advertising. Your competition is probably not utilizing publicity as a major part of its promotional program, since so few small businesses do. And publicity is relatively easy to accomplish, in fact, with the right approach, the media will very likely do most of the work for you. With all these advantages, how can you not take a good look at implementing a more proactive publicity program?

    Facebook Small Business Marketing – How To Get More Traction

    We all understand that Facebook is one of the most popular social media platforms in Australia. However, recently some of our clients have expressed their frustration with their ‘Facebook business pages’. The key frustration is that their business page just doesn’t seem to be driving traffic and generating leads and there is little engagement. Lots of time and energy going in but not too many results.

    Why are small business owners getting these results?

    Let’s take a closer look at why there might be a lack of engagement on Facebook business pages. Let’s also explore how you might be able to work smarter and use Facebook more effectively and discuss some of the common pitfalls to avoid when it comes to using Facebook for Small Business Marketing.

    Understanding how Facebook works

    Facebook determines what people see in their “news feed” based on an algorithm. It’s a mathematical formula used by Facebook to determine what to show people who are Facebook users. Facebook focuses on the posts that people ‘like and engage with’ most. Therefore, if people like, share or comment on a post from a particular Facebook page, Facebook believes that this information is more relevant to the person because they are spending more time ‘engaging’ with that content. As a result, more content from that page is placed into the person’s news feed.

    Facebook Small Business Marketing

    Facebook is a “social” media tool and therefore will always favour content posted by friends, family and social connections over business content. Business content usually doesn’t get the same traction as personal content and often requires a ‘boost’ so that the content can get in front of people. In general, business content gets seen by very few of the people who have liked your business page, these days you need to use paid Facebook advertising to get in front of your audience.

    Business content on Facebook

    Ultimately, like any other business, Facebook is a commercial entity and needs to make money and profits to satisfy stakeholders and investors. As many of you may have already realised, Facebook knows it’s worth and understands that it can be an effective digital marketing tool, that gives business owners access to a large world-wide audience and prospective customers! Facebook also understands that business owners are willing to pay to access new customers and reach new audiences and therefore has tapped into this market.

    Boosting Posts & Paid promotions

    One way to get more people to see your posts or news items is to pay so that you can ‘boost’ your post. Remember ‘organic reach’ which is not paid for, is very limited on Facebook nowadays particularly for business pages. Therefore, to get in front of your target audience you really need to consider boosting your posts or running paid advertising campaigns or promotions to increase reach and engagement.

    How can I get some traction without paying?

    There are a few ways, at the time of writing this article, but they take more effort.

    Facebook LIVE

    Facebook “Live” which is a newer feature that Facebook has introduced, allows users to run live video streaming events. This is a fun and engaging way to reach your audience but you need to be comfortable in front of a camera and ready to answer questions and comments as there is also live interaction features that lets you know what’s on your customers’ minds. It’s not for the faint hearted but gets better cut through and larger reach.

    Facebook Groups

    Facebook groups are different to Business pages and seem to be able to achieve more organic reach. Facebook groups are online forums that allow for small groups to communicate they generally focus on a topic of interest and are there to allow people that share common interest to interact and share knowledge, opinions and ideas. People can join groups that are often administered or moderated by one of more Facebook users. It could be a group that centres around a common cause or an activity such as mountain bike riding or photography, or it could even be centred around supporting others who are in a similar life stage or have similar circumstances such as a single parents group or an Autism Parents network or a group specific to small business owners.

    With so many different options on Facebook it’s sometimes difficult to determine what is the best option to go with or sometimes even where to start.

    Keep in mind…

    Don’t create a personal profile for your small business.

    Some new business owners and entrepreneurs create personal profiles for their businesses and brands, instead of creating a relevant Facebook Business Page or group. This is not ideal as it puts your business at a disadvantage. This is because Facebook business pages offer you a host of content creation tools, paid promotional opportunities, and analytics that are linked to a Facebook Business Page and will not be available to you if you set up a personal page.

    Use Calls to Action

    Once you’ve set up your business page, use a Call to action to get visitors to engage further with your business or brand. Is Facebook a referral source but you ultimately want to get visitors over to your e-commerce store or website? What do you want them to do when they get to your Facebook page? Call to actions are buttons with text on them like “Watch Video,” “Sign Up,” or “Book Now” these buttons can be customized or can include a (URL) web link to a ticketing page or e-commerce site.

    Use your resources

    Get help or use online resources, if you are unsure of where to start with Facebook, jump online and check out Facebook’s help centre. There is plenty of information for advertisers as well as tips and helpful videos you can watch. If you run a small business, are time poor and just want to find out how to improve your marketing reach or how to use Facebook more effectively, consider getting in touch with an agency that offers small business marketing services. Best of luck with your marketing.

    Small Business Marketing – Rip and Read Marketing Techniques That Work

    Keeping in touch with your existing customers and clients is a critically important part of your small business marketing system.

    The cost of securing a new customer is much greater than the cost of getting an existing customer to use your services and products again. Some studies indicate it takes seven times more money to acquire a new customer than it does to sell an existing customer the same product or service.

    It’s no wonder the lifetime value of a customer or client is calculated to be worth at least ten times the money you made the first time you did business with them.

    What you need to do is find ways to make your business, your product, and/or your services applicable to your customers and clients again and again. Some businesses have “one-time-use” products. These are products that once purchased are not purchased again.

    Finding ways to sell the same product or service again, requires some strategic thinking. I’m not suggesting planned obsolescence. Find ways to up-sell or cross-sell the same customer with variations of our main product or service. For example; if you sell an information product in the form of an audio tape series, then offer a video version of the same program.

    It is matter of maintaining the customer relationship and then offering them more choices.

    Here is a technique for maintaining clients and customers that I teach in our small business marketing bootcamp. We’ve used it for years in our business, and frankly didn’t think to share it in this article until one of our “Plutonium Level” subscription members told me his story.

    It is called the “rip and read” technique. I read about 15 trade journals, magazines and newspapers each week. As I read, I look for articles and stories that may be of interest to my customers and prospects. When I see it I “rip” it out and send it to my client with a comment on a post-it note: “Saw this and thought it would be of interest to you. Best, Brian” That’s all there is to it. I probably send 20 or so a month. It keeps me in the front of my clients’ minds.

    My business associates think I look like fool constantly “ripping” on planes, in airport lounges, and on trains, but once you see the benefits of doing so, you will start ripping too.

    One of our “Plutonium Level Inner Circle Member” is a financial planner. I gave him this suggestion in one of our monthly one-on-one marketing coaching sessions and in less than one month he got results.

    Here’s what he wrote me: “I cut an article out of the Star Ledger (our daily New jersey newspaper) and sent it to one of my clients. He called back and sent me a check for $40,000.00 (Deposited in his annuity).” One proven and tested system led to a big commission for him. All he did was use the tip.

    How often do you contact your existing customers? Clients need contact at least 4 times per year. Try to keep in touch 8-12 times per year, depending upon the type of services you provide to a particular client.

    Commit yourself to using this technique for three months and see what happens. Track your contacts and track the results. You will be sold on its value and I know you will continue to use it.

    If you’re a small business owner that wants more profitable customers and fewer aggravating small-paying sales, then you need to maintain your VIP customer base. Pick your favorite VIP clients and court them like they were a king or a queen. “Rip and Read” for all your VIP clients.

    Save Your Small Business – 10 Crucial Strategies to Survive Hard Times Or Close Down & Move On

    If there were ever a timely business book, “Save Your Small Business: 10 Crucial Strategies To Survive Hard Times or Close Down & Move On” by Ralph Warner and Bethany K. Laurence is certainly it. Promoted as a road map to small business survival, Warner and Laurence provide simple, no-nonsense, steps that can make a huge difference in running, saving, or if needed closing, your small business. Running a small business has always been hard, but currently it can be brutally agonizing, if not downright scary. This guide may just provide you with the information to make today’s bad economy, or bad economies in the future, opportunities so that in good times your business will be poised to thrive.

    The book starts out saying it will be your small business companion, and recommends you create a business survival plan, prepare a current profit-and-loss statement and cash flow analysis, and establish an advisory board. It the delves into chapters that will provide the tools to help you decide whether it makes sense to continue, hibernate, close, or sell your business and offers some strategies you can implement to get your business back on track.

    Chapter One: Can You Save Your Business? This chapter discusses topics such as planning for short and long term, selling your business, putting your business in hibernation, and saving your business. It also looks at some special considerations for retailers, services, construction, restaurants, wholesalers and importers, and franchises.

    Chapter Two: Don’t Ignore Bad News. Why you can’t wait, cutting costs, changing direction, quitting and selling are addressed. There are also strategies on determining how much to cut expenses and acing slowly to reverse cutbacks.

    Chapter Three: Control Your Cash Flow. This area can be one of the most important, especially for the small business. Topics include: Keeping paying your bills on time, how to create more cash, and what not to do, such as using merchant cash advances, maxing out credit cards, and borrowing against your house.

    Chapter Four: Minimize Liability for Your Debts. Are you personally liable for business debts? Liability for jointly owned debt. What can creditors do if you don’t pay? Prioritizing debt payments, including payroll, taxes, utilities, and many more.

    Chapter Five: Concentrate on What’s Really Profitable. Face it, the goal of a business is to make a profit. This chapter looks at getting a quick profits plan on paper, making money in a service business, and making money in retail or manufacturing. It is a short chapter, but if it gets you thinking about making a profit, it has done its job.

    Chapter Six: Innovate on a Shoestring. Invention, Copying, Serendipity, and Making Innovation a Continuous Process are addressed in this chapter. This chapter may inspire you to brainstorm the next wonder gadget that every household must have. Depending on your business, this may be what you need.

    Chapter Seven: Identify Your Customers. Before you can create an effective marketing plan, you need to know who your likely customers are. This chapter discusses aiming at the bull’s eye and filling in your target. Topics include current customers, need, price, access, and experience.

    Chapter Eight: Don’t Waste Money on Ineffective Marketing. If we only knew which of our marketing efforts were producing the best results. This chapter helps you determine things about your marketing such as: Marketing the right products or services to the right people, not spending big dollars on advertising, asking long-term customers for support, encouraging customers to recommend your business, using paid listing effectively, marketing on your own website, and holding a “trying to stay in business” sale.

    Chapter Nine: Handle Layoffs Fairly – And Keep Your Best People. Laying people off is often one of a business owners most dreaded tasks. This chapter provides guidance in this area by looking at: Making a wise layoff plan, the logistics of a layoff, and keeping the great people you hire. Some very good advice for this unfortunate part of business.

    Chapter Ten: Don’t Work Too Much. What? If your business is floundering, you must work more, right? This chapter tackles the subjects of the importance of a sane schedule and how to work less and make more. Priorities and delegation are the keys the authors discuss.

    Chapter Eleven: Work With Your Best Competitors. The four areas this chapter covers include: Treating competitors with respect, getting business from competitors, working for competitors, and working with competitors.

    Chapter Twelve: How to Close Down Your Business. Most people don’t ever want this to happen, but the reality is that it does. This chapter offers some good strategies if you decide it is time to close the business and do something else. Topics include things like creating a closing team, looking at contractual obligations, dealing with landlords, collecting bills and selling off inventory, notifying and paying employees, liquidating assets, notifying creditors and customers, paying your debts, paying taxes, and dissolving your business entity. This is not a pleasant topic, but unfortunately an important one if you find yourself having to go this direction. The book provides guidance in the process.

    Chapter Thirteen: Dealing With Debt: Bankruptcy and Its Alternatives. Introductory chapter on these topics with some good advice, but you will need more resources if you choose to go down the bankruptcy path, or better yet, seek counsel from a qualified professional.

    Appendix A provides guidance on preparing a profit and loss forecast and a cash flow analysis. There are more complete references on these out there for sure, but this short bare bone basics on them will get you started and at least help you determine where you are at.

    “Save Your Small Business” is a good guide for the struggling small business owner, and also provides information for the small business owner who doesn’t want to fall into hard times. Educating oneself regarding business is crucial for small business success. This is one more Nolo title that will help small business owners hopefully survive, but also liquidate and close with less pain if that is the course that must be taken.

    Social Media for Business: Why Social Media Marketing for Local Small Business?

    Wondering why social media for business is hot news in the media right now? Here’s a balanced view of social networking and social media marketing.

    Fortunately, whether social networking will work for your business starts with a decision that many small businesses have made in the past few years. There’s lots of information to help you decide how social media marketing could work for your business and whether it’s worth it.

    Who Is Using Social Media? Have You Already Launched?

    Are you using social media marketing strategies and tools to build your local business, to market your products, programs and services, to serve your customers? Your competitors are.

    They are making sure their customers (and potential customers) are served 24/7 with:

    • Location details, maps, links to web sites and service or product details at Google.
    • Customer reviews and recommendations at Yelp.
    • Event announcements, contests and coupons at Facebook.
    • Valuable information and education at their web site.

    Tough Economic Times for Small and Local Businesses

    These are tough economic times for small local businesses. If you are a small business owner, you may be wondering what to do to find new customers, keep customers coming back and still have profit left over for the wallet in YOUR pocket. Are you spending money on yellow pages ads, newspaper ads and doing more Discounts or Sales Events than ever?

    More than half of the US economy is fueled by small and local businesses. Your business is one of many that spend money on advertising – or you are simply surviving with word of mouth marketing, some foot traffic and the occasional customer who comes your way because they saw your ad in “old school” advertising?

    “Old School Marketing” VS. New Media Strategies

    But while you are waiting for your “old school” advertising to attract more customers, hundreds of thousands of potential customers have switched to searching for most of their information online. Their fingers aren’t doing the walking in the yellow pages anymore.

    More and more, your potential customers buy products and services only after they have been reassured by the recommendations of others, something that social networking online and recommendations presented online offer the discerning shopper.

    Small Local Businesses Adopt Social Media Marketing Strategies

    According to a report released this week from the Small Business Success Index (SBSI), small businesses are increasing their use of social media. Over the last year, the adoption rate has gone from 12 to 24 percent, which doubles the usage.

    The report was sponsored by Network Solutions and the Center for Excellence in Service at the University of Maryland’s Smith School of Business. It found that small businesses have turned to social media as a result of the economic downturn and are using social to identify and attract new customers, build brand awareness, and stay engaged with customers.

    So, now that we’ve gotten this far, what’s next? As Abby Johnson explains, up to this point social media has been more about fun than business. Now that the newness has somewhat settled, Chris Brogan, the President of New Marketing Labs, believes it is time that social media is taken more seriously.

    Why Participate in Social Media? What Are The Benefits?

    There are many ways your small business can benefit from participating on one or more social networking sites. As a business owner you can:

    • Increase awareness
    • Maximize exposure
    • Boost credibility
    • Build community and brand loyalty
    • Multiply profits
    • Learn more about your customers

    What Are The Drawbacks?

    No matter how it’s hyped right now, social networking is not a perfect marketing or business building vehicle. There are some significant drawbacks, including:

    It can be incredibly time consuming.

    It can take quite a lot of time each day to participate on social networking sites. The key to success is often the amount of interaction you have with other members of the network. Small business owners generally don’t have hours every day to participate on social networking sites. To post and comment on other people’s posts can suck valuable time out of a business day.

    It can be slow to generate results.

    Depending on your goals, the social networking route may take a lot of time, effort and patience. It takes time to build a network online. And, if you’re short on time, the small amount of time you have may mean taking the tortoise approach to building a following and boosting your business.

    It’s just another marketing tactic to learn and master.

    Each marketing tactic you add to your marketing plan is another method you have to learn and practice. This learning takes time, energy and sometimes some money. The learning process can feel overwhelming, especially if you are short on time, energy and money.

    There are so many options.

    With literally hundreds of social networking sites attracting all different kinds of participants, you’ll want to focus on the networks where your efforts will pay off with contact with your target audience for your products or services.

    There’s good news.

    With the right plan and approach many of these drawbacks can be overcome or eliminated.

    Out with the Old – In with the New

    You have focused your time, money on being a business owner, or a specialist in your field of practice. Small business failure statistics illustrate that you may not have a handle on your marketing. Even in this economy, 60% of small businesses are spending the same amount on advertising, primarily “old school” marketing (like print media, business brochures and cards) and 26% want to spend more. Sixty-nine percent of businesses want to spend their money on online marketing.

    Unsecured Small Business Loans – Good News – Stimulus Bill Allows SBA 90 Percent Guarantee For Loans

    Anyone remotely involved with small businesses, whether as a consultant, lender, supplier, leasing specialist, trade association, or simply as a consumer who is tired of driving by sections of town and wondering why your favorite business unceremoniously threw in the towel, would very much like to hear some good news. Not to mention the small business owner itself. After all, there are 27 million small businesses that deserve to be thriving in this nation, but too often were ignored by the Bush administration. Classically non-complainers by nature, they just want a scrap of hope thrown their way. And I’m not talking about wide-eyed idealists looking for handouts-in all due respect to Emily Dickinson, they’re not looking for the”thing with feathers that perches in the soul”. Just give us a few bucks and we will run with it. This is a continuing article (20 in all) on the subject: Help. Is anyone out there loaning to small businesses anymore?

    Fortunately there is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program, although Congress has failed to make the program permanent and still has a 10% cap on the number of loans.

    Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.

    If you have tried to wade through the 1,100 or so pages of the new stimulus bill (American Recovery and Reinvestment Act of 2009), you know its like chipping through granite. But let me pull out a little gem. It now allows the U.S. Small Business Administration (SBA to you) to guarantee up to 90% of loans made by private lenders under their program. Let me explain. This is great for Community Express.

    When the Small Business Act was enacted in 1958, it had a very simple mission. Find a way to get loans to small businesses that couldn’t get them through traditional channels. It did this in an ingenious way. They knew banks where reluctant to loan to small businesses, especially startups, because of fear of failure. So the SBA collected a fee on each loan and used this as a fund to pay banks if there was a default. Bingo, there was invented the SBA guarantee fee. It doesn’t take a degree in rocket science from MIT and an MBA from Harvard to know this gives incentives to the banks to make more loans.

    SBA loan programs have guarantees from 50% to 85%. Specifically, the SBA currently has an 85% guarantee on loans up to $150,000 and up to 75% on loans above $150,000. On the other hand, there are some programs that only go as high as 50%, including the Express Loan program (for those types of loans the new guarantee will not change). With the new stimulus bill, the SBA has the right to increase these fees to 90%.

    Think about this for a moment. Simple math tells us more guarantee, the greater the likelihood of the bank making the loan. For goodness sakes, 90% is tapping on the door of a 100% guarantee! Also note the guaranteed portion is typically sold on the secondary market (which has recently shut down to almost nothing) so there is more chance for loans to be sold and more money to go back into the coffers of the banks for further lending.

    Notice I said the SBA has the right to increase it to 90%. It can pick which program. And it has not occurred yet. But if I was a betting person, I would say they would be seriously looking at most of the programs because everyone is scraping for ideas to revive the economy.

    For those addicted to primary source documents, this is what the new statute, in relevant part (my attorney wanted me to add that) says:

    SEC. 502. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES. (a) PURPOSE- The purpose of this section is to permit the Small Business Administration to guarantee up to 90 percent of qualifying small business loans made by eligible lenders.

    (b) DEFINITIONS- For purposes of this section:

    (1) The term ‘Administrator’ means the Administrator of the Small Business Administration.

    (2) The term ‘qualifying small business loan’ means any loan to a small business concern pursuant to section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 and following) except for such loans made under section 7(a)(31).

    There is also a sunset provision under Subparagraph (f) that the guarantees are only good for one year after enactment of the bill, unless extended by Congress.

    So what does it do for me now as a small business owner? Well now the not so good news. I predict the SBA will be increasing many of its programs to 90%. But to get the banks in the lending mood again, there has to be a secondary market. There is also new legislation on that, which we will discuss in another article. But once we have a secondary market, I predict that they banks will not only loan, but do so in a big way. For three reasons:

    First, history tells us when there is economic inactivity due primarily to depressed conditions, when the cycle changes for the better, like a sling shot affect, it changes dramatically. Remember when people were unable to refinance or purchase their homes because of tight markets and high interest rates? The rates went down and many jumped at the chance to refinance, improve their homes, and purchase (some say too precipitously) with abundance. Although this is an overstatement and also depends upon other factors such as employment, standards of living, etc., the analogy holds that when things loosen up, there will be a substantial number of business loans.

    Secondly, banks are in large part in the business of making loans and they have not been doing so for some time. They will be anxious to make profits again.

    Lastly, simple economics tells us when there is a vacuum in the market; capital will rush in and take advantage of that open market and initial lack of competition. Large banks are not making business loans so small community banks are starting to rush in to take over the arena. Give them a secondary market and they will explode.

    So for the small business owner, I think this news of 90 % guarantees is favorable. Why did it take them so long?

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