small business

21 Reasons You’ll Fail at Marketing

by Carolyn Higgins on January 24, 2012

I don’t know what it is about Marketing, but everyone on earth seems to think they can do it. And yet I see so many people NOT doing it or wasting thousands of dollars and not getting results. I see business owners try the same things over and over, wasting more money, more time, and more energy. If I had 1/10^th of what business owners waste on stuff that doesn’t work, I’d be the most successful marketing consultant on the planet. And yet, so many business owners would rather go it alone and try and fail and try again and fail again rather than reach out and get professional help. I don’t get it.

I know there are those out there who will always try to do it themselves so, so in the spirit of not getting it, here are the top 21 reasons why most small business owners fail at marketing:

Guessing – Great marketing isn’t an accident. It takes research, educated decisions, testing, tracking and measuring. Guesswork will leave you customer-less and broke.
Doing what everyone else is doing- Every business is different and your marketing mix should be too. Following the crowd isn’t going to help you stand out from the competition!
Listening to sales people Marketing is a long term strategy, not a special advertisement, publication, or website; but every sales rep you come in contact with will try to convince you otherwise. Marketing is a process – a long term strategy, there is no magic pill and don’t let a slick sales person try to tell you otherwise.
Not asking questions –Question EVERYTHING about your business and ask everyone you come into contact with as many questions as possible to learn, grow, and constantly improve.
Doing nothing – It’s simple, if you don’t Market your business, you will fail.
Putting all your eggs in one basket – Marketing is like investing, the more diversified your strategy, the better off you will be. Don’t invest all your time and resources in one medium or on one marketing tool – mix it up.
Not tracking results – How the heck are you going to know what works and what doesn’t if you don’t track the results? If you’re not tracking you’re guessing, and we covered that in #1!
Assuming you have all the answers – Yes, I know: you know your business better than anyone. But do you know marketing? I mean do you REALLY know how and where to reach potential customers and convince them to buy from you?
Not talking to your customers – No one knows your value – or faults – better than the people who actually buy from you. Talk to your customers – often. It’ll provide valuable insight and ideas.
Ignoring your competition- If you don’t know how you’re different from your competition how are potential customers supposed to? Knowing your competition’s strengths and weaknesses will help you differentiate.
Not setting goals –Goals keep us on track; they give us direction. Without them you’re wandering aimlessly and most likely wasting a lot of time and money.
Not building an email list – I don’t understand how anyone can market a business in today’s world without an email list! Email is the easiest and most inexpensive way to stay in touch with customers and prospects. If you aren’t building a list you’re missing out on huge opportunities.
Not having an opt in form – Emailing current and past customers is a great start, but what about the people who visit your website, Facebook, Twitter, or LinkedIn pages and then go away never to be heard from again? Wouldn’t’ it be nice to engage the serious window shoppers in some way? An opt-in form is the way to do it!
Selling all the time. We’ve all met the slick schmoozy salesy types, right? And how long does it take you to high-tail it in the opposite direction? Don’t be one of those. An effective marketing strategy eliminates the need to sell all the time… really!
Assuming because you have a great product or service you don’t need a marketing strategy – Sure, some products and services might market themselves, but that’s rare. Real marketing success takes strategy, planning, and work.
Assuming that just because you have a good product or service you don’t need a referral system- Again, there are some products and services that people just love to talk about, but building a successful business solely on organic referrals and “buzz” is rare. Getting solid referrals, consistently takes planning and solid execution. .
Assuming anyone with a pulse is your client- Repeat after me: “NOT everyone is a potential client for me”. Now look in the mirror and repeat that every day! Find your niche – that segment of the population you are born to serve and you will uncover a gold mine!
Not building relationships – I can’t stress enough how important this is. Hiding behind your computer screen, desk, or counter isn’t going to get you the level of success you want. You have to get out there – mingle, be helpful, connect people, and build relationships with the right people!
Spending all your time networking in the wrong places –Not every networking group is right for you. Find the ones that will help you get where you want to go and avoid the ones that won’t.
Ignoring the internet – Facebook and Twitter may not be right for your business, but chances are your target market is going somewhere on line for information about your product or service. Your job is to find out where they’re going and be there!
Not hiring a professional- If you want to build an addition onto your home would you do it yourself or hire a professional? I mean, you know your home better than anyone, right? So why not do it yourself? Ridiculous, right? So then why would you try to “add on” – or grow – your business yourself? Hire a professional who has the right tools and knows the ins and outs of growing a business.

So what do you think? I’d love to hear your thoughts!
Want to share?? Please do! Leave your comments here.

By the way, if you liked this post, I’d really appreciate your Retweet!!! Thank you.

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Forget Resolutions: 7 Business Things You DON’T Have to Do in 2012

by Carolyn Higgins on January 3, 2012

Call me a rebel… or a Scrooge… or a Grinch if you must, but I am so happy all this holiday nonsense is finally over. And as I sit here trying to come up with a blog for the new year, the word “resolution” keeps popping into my head and I absolutely REFUSE to give you marketing or business resolutions for the new year. You’re under enough pressure, I’m not going to give you a long list of more things you already know you should do.

So… no resolution talk here, I promise. Instead, for the new year, let’s vow to not make a single resolution; no diets, exercise programs (ok, I’ll admit this one is self-serving – hoping to ward off the “New Year Resolutioners” who invade my gym for a few weeks this time every year), no vows to spend more time with the kids, or call our mother more often, no promising to read, write, or volunteer more or spend less… Forget all that!

Resolutions are all about telling ourselves we need to do things we didn’t do last year to better ourselves and then we end up feeling like losers once again when we don’t keep them. I say “No more pressure, we have enough!” So instead of giving you a bunch of Marketing Resolutions and telling you what you should do, I’m going give you a list of things you don’t have to do! There! How’s that for rebellion? Bet you’re thinking I’m not such a Scrooge after all are you?

So here is my list of 7 things you don’t have to do in 2012

You don’t have to do everything yourself anymore. That’s right. 2012 is the year you bite the bullet and hire help. Hire an accountant, a bookkeeper, a salesperson, an assistant, or whatever it is you need that will allow you more time to focus on the things you really want to focus on!
You don’t have to work with anybody and everybody with a checkbook. You have a successful business; you’ve made it this far because you provide a valuable product or service. You are too good to work with people who don’t value you and who try to nickel and dime you at every turn. So the next time you are tempted by someone you know is going to be a big ole pain in the butt, politely refer them to your competition, explaining that you feel they’d be a better fit.
You don’t have to be everything to everybody. Your business is special. You provide something unique to a select group of people that no one else can deliver in quite the same way. Your job is to find that niche. And when you find it you will become confident enough to say “no” when asked to do something outside of your scope, capabilities or comfort zone. You do what you do better than anyone else and you don’t need to pretend to be more than what you are. Stay true to your mission.
You don’t have to work every single night and weekend. I realized this sometime in the past couple of months, taking time off is key to my mental well being and sanity – and it makes me more productive. Really, you don’t have to work so many hours. All the work will get done (see #1 again), I promise!
You don’t have to follow the crowd. Just because all your friends are on Facebook, doesn’t mean it’s right for your business. Just because your competitors do things a certain way, doesn’t mean you have to. It’s your business – your baby, your dream. Do it however the hell you want! Dare to be bold. Dare to stand out. Dare to be unique!
You don’t have to make excuses for where you are in your life or your business. As human beings we all grew at different rates, the same is true of your business. Don’t compare yourself to others. If you know you are doing everything in your power and using every tool and resource available to you, there is no need to feel bad about where you are. We grow at different rates and as long as you are on track toward achieving your goals you are just fine.
You don’t have to take advice from anyone you don’t want to! Everybody has advice, have you noticed that? I was in the gym recently and a guy who I’ve never seen lift a single weight was telling me how I should be lifting weights. When advice is given consider the source: is it someone you respect? Is their business the type of business you’d like to emulate? If not, ignore them!

So, how does that feel? A whole list of things you DON’T have to do in 2012! What a relief, right? Running a business is hard work, don’t be too hard on yourself, have fun with it and have the best year ever!!!
Have something to add? I’d love to hear from you! Please click here to leave your comments.

By the way, if you liked this post, I’d really appreciate your Retweet!!! Thank you.

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Keep a Close Eye on the Competition.

by Susan Solovic on December 28, 2011

Image via Wikipedia

The sluggish economy continues to be an issue for small business owners. And now it appears competition may be getting tougher too. According to the Guardian Life Small Business Trends Research Report, larger companies will aggressively market to prospects once considered “too small.” That means those of us who own small businesses may find ourselves dealing with new and tougher competitors.

So how do you protect yourself. For starters, you need to keep a close eye on the competition. You’ve probably heard the old saying, “What you don’t know won’t hurt you.” Well, guess what! It can and it will hurt you. It’s important to know as much as you can about your market, your customers, your products and your competition.

With little or no budget for competitive research, you’re probably wondering how to gather that intelligence. There are myriad low-cost methods you can use get the information you need to stay on top of things in your market and protect your customer base.

Explore the Internet. This should be pretty obvious, but you can conduct an internet search on your competitor(s). You may discover a lot of helpful information. For example, you may learn about personnel changes, a new product offering, even new clients/customers.

Visit Your Competitor’s Web site. Web sites are a good source of information about a company. Typically, there are backgrounders on the company’s management team along with a history of the company and its mission statement. Some web sites also maintain client lists and if it’s an e-commerce site, you can compare pricing

Contact Your Trade Association. Many small businesses belong to trade associations which provide current research findings. These studies focus on consumer’s perceptions of your product or service and growing trends within your industry. Most of these studies are free to association members. Additionally, associations typically publish newsletters or trade magazines where you might find competitive information.

Talk to Vendors. One of the best sources of information is your vendors. One of your suppliers who also sells to your competitor may be able to share a lot of insight about what your competition is up to. Be careful, however. If they disclose information to you, you can safely assume they are doing the same thing with your competitors

Pay Attention to Advertisements. Watch for your competitor’s advertisements. How are they positioning themselves? How often do they advertise? Where are they advertising? To whom are their ads directed? Collecting this information will help you get a better understanding of your competitor’s strategy in the market.

Secret Shoppers. Secret shoppers can be a good way to learn about your competitor’s sales process. Ask a friend or family member to pose as a potential customer and either call your competitor or visit their retail location. Of course, this wouldn’t be appropriate if you are in an industry where every sales presentation is customized.

Network. Reach out to business associates to learn more about the marketplace. Chances are there are people within your network who have done business with your competitors. Find out what they liked and what they didn’t like.

Talk to you Competitors. Depending on what industry you are in, you may find your competitors are friendly ones and willing to discuss certain issues with you. The Society of Competitive Intelligence Professionals (SCIP) is a good resource for guidelines.

Finally, whatever information you obtain, use it constructively to assist your firm’s growth. Never use it to hurt your competitor. And if you gain access to information that appears to be proprietary, destroy it immediately.

Competitive research doesn’t have to cost a fortune, and the benefits can be huge.

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Is Your Small Business Competing With SPAM?

by Carolyn Higgins on December 20, 2011

We’re all familiar with the “who-actually-falls-for-this-stuff” SPAM and we all know its complete bogus.

For example:

RE: I await to hear from you urgently

Please I am seeking for your help (sic)

From Google: Google winning notification

Or the ones that actually warn you they’re SPAM in the subject line, what is up with that? Is their honesty and up-frontedness supposed to catch me off guard and make me want to open it?

I think you get the point. Hilarious, right?!?

But what about the SPAM that isn’t so obvious? The emails from people we handed a business card to at a Chamber mixer (and did not give permission to be added to their list) or who friended us on Facebook or emailed us through the Contact page on our website? What about those SPAMMERS? They’re a little more insidious – but are you competing with them? I would hope not.

Here’s the thing. I get hundreds of SPAM emails a week some are of the hilarious type and some are from people who actually want my business and think that SPAMMING me is the way to get it. And what strikes me hilarious is that for each SPAM email I get, I probably know at least 5 businesses personally – or even virtually for that matter, that I would turn to if I were looking to hire that particular product or service. Why would I hire a complete stranger – and a SPAMMER at that?

So here’s my point: When I am working with small business owners to develop marketing systems for their businesses one of the key elements of that process is figuring how they are different so they can stand out in a crowd. One way you can be different is to NOT spam, another is to actually get out there – either off- or on- line and meet people. The more people who know you, the better your chances of being thought of when they are ready to buy what you have to offer. The whole goal here is to you’re your business known in your niche so that your target market never has to turn to a stranger!

Here are 4 things you can do so you don’t have to compete with SPAMMERS (or anyone else!):

Network – This is a great way to meet potential clients and expand our sphere of influence. Join a networking group or two – and whatever you do, make sure the networking group, association or organization is full of people who fit your target market profile – or at least can introduce you to them. If your target market is women between the ages of 25 and 35, Rotary is probably not the best networking group for you.
Engage in Social Media – I know thousands of people online. Some I’ve met face-to-face, some I haven’t yet, some I probably never will. But in today’s world, none of that matters. I have formed real professional relationships with people I may never meet face to face – and I’ve received and referred business to them! Social media is not about merely blasting ‘salesy’ stuff; it’s about educating, informing, and engaging an audience. This is a great way to stand out from the crowd and build some top of mind awareness for your brand.
Blog– Blogging is a great way to promote your brand and build a reputation and credibility. Writing relevant, informative posts/articles will help you stand out from your competition (and certainly SPAMMERS). And blogging isn’t just about writing a few words and posting it to your blog site; you must become diligent about repurposing your blog posts and submitting them to sites that our target market reads to expand your reach.
Be a giver - I was in sales and marketing for 17 years when I worked for other people and it wasn’t until I became a business owner that I realized the power of being a giver. I had always approached networking and relationship building with a “what’s in it for me” attitude. I now approach it with a “how can I help you attitude”. And the more people I meet the more I am able to refer and make introductions that can help other people. I enjoy this aspect of it much better than the old way! Being a giver instead of a taker, makes it that much more fun! When is the last time a SPAMMER gave you anything?

It boils down to this: our goal as business owners is to help our target market Know, Like, and Trust us so that when they are ready to buy, they buy from us (a John Jantsch, founder of Duct Tape Marketing saying). What are you doing each and every day to work toward that goal? If you don’t have an answer, your target market could be encouraging those SPAMMERS!

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Does Your Website Suck?

by Carolyn Higgins on December 19, 2011

Finally, small business owners everywhere realize they need an online presence if they are going to compete in today’s world. Small business owners who just a year ago adamantly argued that their customers aren’t using the web are now jumping on board and admitting – yes, indeed they are.

But slapping up a website just for the sake of having a website can defeat the purpose – and can even harm your image if it isn’t done right.

If you’re thinking about creating a website – or even if you already have one – follow these 6 rules to make it the effective and powerful marketing tool it should be:

The website is not about you. A prospect is not looking for information about you; they are searching for a solution to their unique problem or need. THAT should be the focus of your home page. Use words and phrases they would use to describe their pain and then outline the solution you have to solve it.
Have an offer. Get the most out of your website by using it as a lead generation tool. If someone spends time on your site, don’t just let them click away without engaging them further. Offer a newsletter, a free report, or even a free consultation. Do something to get them to act so you can find out who they are and market to them further.
Be unique. Beware of canned website services; you know - the ones that offer websites for CPAs or Chiropractors or Attorneys. They all the look the same, they all have the same content, and they make it really hard to differentiate you from your competition. Invest a little bit more in a site that allows you to stand apart from the crowd.
Your website is your online storefront. Your website is very often going to be the first impression people get of your small business. Make it visually appealing. Make it interesting, informative and engaging. Make it different – add some fun elements, or news stories or free tips that your target market would be interested in. Make sure it’s professional- and PLEASE check your grammar and spelling!
Use testimonials and case studies. Yes, your home page should be about the prospect and their problem – but once you’ve engaged them and gotten their attention, they will want proof that you can deliver as promised. Having a page of testimonials and case studies is a great way to demonstrate that you can deliver as promised.
Make it easy for a prospect to contact you. Have a contact page that is easy to find, with your email address, and/or phone number. Put your phone number on the home page (some experts recommend having it on every page of your website). Finding a way to contact you should not be a game of “Where’s Elmo?” If it takes more than a second or two – you risk losing them – and they could mean a lost sale.

So, that’s it, follow these 6 simple rules for building a small business website and you’ll never have to worry that your website sucks!

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Selling Smart: Not All Sales Are Good Sales

by Susan Solovic on November 17, 2011

I’ve been on a hectic book tour the past several weeks, and I’ve listened to thousands of small business owners discuss their concerns. One common problem: we need more sales.

Yes, we’d all like to increase our revenue and build our businesses. But hold your horses — not all sales are good sales. Sounds counter-intuitive, doesn’t it? In order to build a successful business, you must recognize there are times when less is more.

Allow me to explain.

Many small businesses reduce their prices in order to bring more business in the door — particularly in today’s economy. However, in most cases the owner doesn’t stop to consider the profitability of the new business. While the company’s sales figures increase, its profitability often narrows to a point where cash flow issues occur. In the worst case scenario, the company lapses into a negative cash position.

All new business opportunities need to be carefully considered. As the business owner, you should understand exactly what it is going to cost to deliver the product or service, including all your business overhead. Is there enough profit to absorb changes or adjustments? Do you have the current staffing and resources to manage the project without jeopardizing other business?

I’ll share a real-life example without divulging the company’s name. ABC Company bid on a large government contract to deliver a particular service without a detailed and thorough analysis of the resources it would take to deliver. After winning the bid, the additional internal resources and development required to fulfill the contract turned what the owner thought would be a highly profitable project into one that barely broke even. Furthermore, because of the strain on the company’s resources, other, more profitable projects had to be delayed.

In today’s economy where cash is king, no business should jeopardize its financial health by selling too much for too little. While it’s hard to turn business away, you can be more successful by concentrating on the types of business opportunities that are most profitable. And it’s not always just about new business. Some companies are choosing to fire their low-margin customers or to discontinue less profitable product lines and as a result they are enjoying healthier bottom lines.

So remember, nothing happens until you sell something. Just make sure you sell it right.

image by Flickr user jakerome

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Is it Harder for Women to Start and Run a Business?

by Dave Thomas on October 21, 2011

While the battle of sexes has dropped quite a bit in recent years, that doesn’t mean that women have it any easier when trying to start up their own business.

In fact, many women believe there is more pressure on them when beginning a business - pressure to be taken seriously, to make the right calls, and in some cases to realize a lifelong dream.

Many of those dreams have been realized, as recent reports indicate that more than a quarter of a million women nationwide own and lead businesses with annual revenue exceeding $1 million. In fact, a large number of these companies are multimillion-dollar enterprises.

Challenges that Come with the Territory

With the prosperity also come challenges, perceived or not. So what are some of the challenges awaiting a wife, a mother, a daughter, a single woman etc., when wanting to start their own business?

Among them are:

Being taken seriously – This is one that gets under the skin of many women, noting that they should be treated no differently than their male counterparts. While that stereotype likely still exists, it is one that can be changed when a woman shows the world that she is equal to or even better at running her own small business than a man. Don’t doubt yourself or live within stereotypes, break from them!

She’s too emotional – Women have no doubt heard this one over and over again. She’s going to let her emotions cloud her judgment and therefore make mistakes. The fact that women tend to be more emotional should actually work in their favor. While men at times make hasty decisions, a woman tends to think things through more clearly, weighing the positives and the negatives. Having some emotion regarding your business is certainly not a bad thing when used correctly.

She can’t handle all her responsibilities – For many women, having their own small business also comes with the responsibility of raising children, sometimes in a one parent environment. The perception from some is that she cannot handle the balancing act between kids and running a business. In fact, many women do just fine being both a mother and a small business owner. Yes, the work hours can be tremendous, but many women eagerly await such a challenge and meet it head on.

Pretty but uneducated – This is probably the most upsetting comment that a small business woman will hear. If you stop and think about it, many women run their family households when it comes to money, the necessary organizational plans and more. Just because she has a pretty face doesn’t mean there isn’t a great education and savvy business sense to go along with it.

She was not raised to be the leader – From an early age on, many women are taught or perceive that men are the leaders, following their lead in the process. While this is the case in some instances, we know all too well that this idea is wrong. As more and more women climb their way up the corporate ladder to head major companies, more and more women seeking to open their own small business need to follow the idea.

Worry will set in – While women oftentimes get the label (deserved or not) of worrying too much, there are countless female small business owners who prove better heads of business than men. Having a little worry in them can actually be a benefit, in that it means the woman is looking at all options and covering all her bases. If someone is a little worried about something, one thing it shows is that they care.

Whether having a small business has been a lifelong dream or a recent wish, women should plow forward the same way men do.

At the end of the day, there are many small business women who can attest to having success following through on their career dreams.

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How to Not Waste Your Time with SEO

by Guest Author on October 17, 2011

You could spend the rest of your life reading detailed guides to SEO and meticulously cramming keywords into every possible tag on your website. You could also empty your bank account on marketing consultants or a crack marketing team that works day and night to raise your company’s search engine profile. For marketers and companies with limited time and resources, it’s critical to focus on the SEO strategies that bring in the best results.

Whether you’re designing your blog or hiring an expert to handle it for you, here are the key aspects of SEO that you need to focus on in order to get the most for your time and money.

Use the Google All in One SEO for WordPress
There aren’t any magic tricks you can do to make your site rise in the search rankings. Perhaps the closest you can come to magically raising your rankings is using WordPress and its plug ins. If you are using WordPress for your website or blog and you want a simple way to bump up the SEO of your website, a simple plug in is a great place to start. The Google All in One SEO plug in will make your site search-engine friendly and provide a simple interface for plugging in keywords and clear titles.

If you are a DIY marketer, this tool is a great place to start and a real time-saver. Some developers claim that Headspace2 has more features than the All in One plug in, and you can compare them in this chart.

Optimize Your Page Title’s SEO for Readers
Of course every guide to SEO is going to trumpet the importance of nailing the keywords for your page title and description, but there’s one critical angle that you don’t want to overlook. By using Google Instant’s auto fill for searches, you can learn what your potential readers are already searching for and which keywords go together in the most common searches.

In other words, you can use Google to tell you what people are already searching for and then refine your website’s title keywords accordingly. Learn more about how Google Instant works.

Use Long Tail Keywords for SEO on Your Web Page
While it’s critical to include the top keywords for your field, don’t overlook variations and less common keywords—the long tail of keyword traffic so to speak. By using a broader range of keywords you can improve your website’s copy for readers while ensuring that you fill up your h2 and h3 headings throughout your pages with a wide range of relevant terms that will reach the broadest segment of readers.

In fact, too much keyword repetition could hurt your page rankings as Google’s search capabilities have grown wise to keyword stuffing techniques. Don’t spend your time on the increasingly insignificant meta keyword tags for your site. Google and Bing don’t even bother with them. Even ‘alt tags’ for your images are believed to have a minor impact on your search rankings. Nail the title and subtitle keywords and write a diverse keyword article full of information that readers need. If you nail the content, you’ll get inbound links.

Focus on Generating Meaningful Inbound Links for SEO
Another key to the SEO game is making sure you have meaningful inbound links from sites with high authority. It’s far more important to have links from twenty experts and leading trade sites than to enter your information in a hundred no-name directories. The relationships you build with top notch bloggers and the articles shared on top websites will give your SEO a significant boost.

Take Stock of What You Can Do
If you can’t do everything the SEO experts suggest, review this list that ranks the top SEO practices according to a grading system that indicates their importance. SEO is too important to ignore, but every business operating within the constraints of a budget and time and space—which hopefully includes all of us—will need to prioritize what will work and what produces the best results. In fact, if you aren’t already, make sure you track the effectiveness of your SEO regularly.

Optimizing your website for search engines takes time and planning, but by cultivating several practices you’ll get better at integrating keywords in the places where they matter and producing content that readers are looking for online.

This guest post is written by marketing enthusiast, Lior Levine, who works for a variety of MA In Israel programs, particularly the MA in political science department at the Tel Aviv University.

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Technology Creates a Competitive Advantage for Small Businesses.

by Susan Solovic on September 29, 2011

In my opinion, technology is the driving force behind the burgeoning small business market. Technology levels the playing field and allows small businesses to do business anywhere in the world from anywhere they choose. As technology continues to advance, small companies are enjoying the benefits of increased productivity and profitability.

Every small business owner needs to embrace technology in every aspect of their business, from things such as accounting and data management to marketing and sales support. If you aren’t familiar with all the technology-based tools available for your business, then I recommend working with an IT consultant who can help you select appropriate hardware and software to fit your business needs. Don’t get caught up in the sizzle. Always find solutions that work for you.

Here are few recommendations to help you make smart technology choices.

*Create a Technology Vision. You need a technology plan for your business, and a professional consultant can help you develop that. A technology plan prevents you from making the mistake of jumping from one system or application to another, which isn’t time-efficient and can be costly. A technology vision helps make choices that will be appropriate for your business now, and will also grow with your business.

*Buy the Best Fit. Small business owners often get caught up in the glitzy aspects of technologies, and as a result, they buy more than they need. Purchasing the latest and greatest not only results in unused capacity but also the technology investment may wind up not getting used at all because it is too complicated. So make a list of what your business needs are and make an investment in technology that satisfies those needs.

*Establish a Budget. Just as with any other area of your business, you need to establish a technology budget. An IT professional can help you determine the appropriate amount you should allocate in order to meet your objectives. Without an established budget, you may find yourself our of funds before you’ve been able to purchase everything you need.

*Get Training. Technology isn’t worth a dime if you don’t use it. Invest in the proper training for you and your team. Often the vendor will offer to train you for no additional cost. Take advantage of this opportunity and carve the time out of your schedule so you can utilize your investment. Remember, the technology is there to help you become more productivity and profitable.

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How to Avoid Bankruptcy in Year One of Your Business

by Guest Author on September 19, 2011

Photo Credit: Flickr user TimeTrax

The amount of businesses that cannot even survive for a single year is alarming. Depending on what statistics you look at, anywhere from 4% to 25% of businesses fail in their first year of business. Sustaining operation for a single year doesn’t seem like a long time, so how can one ensure the business they are planning to launch at least survives for a year and that they give their business the greatest chance to succeed?

In order to increase your chances of success there are three key things you need.

An abundance of available cash to carry you through any tough times getting your business started. As a general rule of thumb I would recommend you have cash reserves or access to credit that is 3 times the amount of cash you think you will need.

If you can keep your capital investments to a minimum until you are profitable this will dramatically increase your chances of being successful. This will free up cash to prolong your operations even if sales are coming in slower than you expected.

Having a marketing strategy and marketing plan is critical to success because with a strategy and plan that has been written down, you will be much more likely to successfully attract clients than if you have no strategy or plan. If you don’t have a marketing plan, get started on one!

Take a look at your largest expenses and see if there is a low cost or even free alternative that can reduce your capital investments or your expenses. For instance, when I started my business I choose to use a free, easy-to-use accounting software program instead of investing money in a program like Quick Books, Sage Peach Tree or Simply Accounting. I have a decent knowledge of accounting and putting off a large spend on software helped reduce my expenses as I did not need to pay an accountant to do my books or file my tax return.

When you have little or no revenue, having a low cost marketing plan that will expand your customer base can be critical to success. Your plan should include your overall marketing strategy as well as specific tactics for what your products and/or services will be, how you will promote your products/services, price your products/services and distribute your products/services.

When writing your plan, be sure to keep in mind how you can keep expenses low. What marketing activities can you do for free? Can you somehow use social media like Facebook, Google+, YouTube or Linkedin or other free online tools to successfully marketing your business? How can you save money on the marketing you are planning on doing?

Whatever you decide to do it is critical that you at least have a strategy and a plan. Customers and revenue never just appear. They take thoughtful planning, strategic thinking and hard work.

Guest Author Chris R. Keller runs Profitworks Small Business Services which helps small businesses expand their customer base through marketing & sales strategy, planning and execution. Visit Profitworks for free information, templates, and low cost software.