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Smart Start Ups

July 16, 2010 by Frank Goley, Business Consultant

Are you thinking of going into business during this recession? Business success is still being met in this economy, but you want to think through what will work now and going forward into what many are calling a new economy and new customer. Successful start ups are very customer centric right now and will continue to be going into what many predict will be a lackluster economic recovery. Also many successful businesses are very niche oriented right now, serving the needs of very specific customer groups very closely with a customized or highly matched type of product or service offering.

Here are a couple of examples which can get you brainstorming about your business and whether you are on the right track for sustained success not just in this recessionary market but the uncertain economy to come.

Save People Money

A successful start up right now is BillShrink. I would think it will continue to be successful going forward because customers are much more price conscious for the features of the product or service they buy. BillShrink matches the features you need and the price savings of other cell phone plans, TV packages, credit cards, savings rates, gas and so forth. The service shrinks budgets and gets customers exactly what they need. It puts the customer in firm control.

Key Success Attributes: Timely, Customer Centric, Gives the Customer Power, and Highly Customized to the Customer.

Serve a Strong Niche

Florence Henderson has come up with a sure winner in the FloH Club. It is phone support for seniors to help them get through the complicated world of computers and the internet. This strong customer service business helps seniors navigate the web, find things on the web, pay for things on the web, bank on the web, set up their computer, troubleshoot computer problems, set up a computer network, set up email, learn about Facebook and more. Available 24 hours a day, every day of the week.

Key Success Attributes: Targeted Niche, Customer Centric, Empowers Customers, and Highly Customized Services.

Apply to Your Business

Successful businesses going forward are highly niche and customer centered. Providing customers great value for a highly customized service is a theme that is taking hold for successful businesses in this current recession and predicted to do well going forward. Whether you are a start up or not, the principles can be applied to any business to keep your competitive edge.

Video Resource: A Successful Recession Start Up

Posted in Business Growth Strategies. Comment

Is Social Media Here to Stay?

July 15, 2010 by Frank Goley, Business Consultant

I am battling a case of the flu so my blogging has been suffering a bit. Sorry about that.

There is so much on social media nowadays and so many social media outlets. It can get confusing. The bottom line to ask yourself as a business owner or marketer is whether social media is worth it. Well, watch this short video and you may make up your mind in a hurry!

Video Resource: The Social Media Revolution

Posted in Business Marketing Strategies. Comment

Are You Ready for the Post Recession Customer?

July 14, 2010 by Frank Goley, Business Consultant

The reality behind this recession and the new economy to emerge is that customers have changed. The question is, are you ready for this new customer? Have you adapted enough during this recession period to meet the new needs and demands of customers and prepared for the new economy to come?

Paradigm Shift

The economy to emerge from this recession will be different than we have ever seen and the guiding force behind it will be a new type of customer. One that has evolved during this recession into a more discerning and demanding customer. Here are some key areas to keep in mind as you develop your post recession Business Plan.

v  The customer has all the power, so your products, services, customer service and business must be built around the customer. This includes your social media strategy.

v  Money is tight and being spent in a much more cautious way, so your business must meet up with expectations, to include:

Ø  Value based offers. Savings are good, but how much value is built in?

Ø  Excellent market reputation

Ø  Great customer service

Ø  Extraordinary products, services, customer service, savings, value, etc. Remember, extraordinary means beyond the call of duty, going the extra mile. It means really caring about the customer.

Ø  Are you trustworthy?

Ø  Can you stand extra scrutiny?

Ø  Are you well positioned in the social media networks?

Ø  Do you have a positive vibe in the social media networks?

v  Specialized products and services that meet tight customer niche needs. Customers want a high degree of customization and specialization. A product or service just for them. Highly targeted niche products and services that closely meet the needs of customers will be winners.

v  Customers will be less tolerant of companies who can not closely satisfy their needs. The new customer is quite demanding and expects nothing less than perfection from a company.

Good Business Practices

The new customer will not be hard to deal with and attract if you are running a solid business. Many of the above paradigm shift characteristics aren’t a surprise to well run businesses. Highly targeted niche marketing has always been the mantra of successful businesses, as well as, great customer service and customized solutions for customers. What is different is you will less room to mess up. Customers will be much more impatient and walk down the street if their needs aren’t closely met and, particularly, if they don’t feel important. If you run a good, tight business, which is customer oriented and niche targeted, as well as, has a great social network presence and reputation, then you will be well positioned for the new economy to emerge. If not, then now is the time to get to work because you will continue to lose customers, not just because of the recession but because the customer has changed and left you behind. This is an excellent time to consider hiring a Business Consultant to help ensure you are well positioned for the new economy to emerge and the new customer that is pushing it along.

Video Resource: Great Customer Service

Posted in Business Management. Comment

Expand Your Social Network Reach By Giving Away a Free Service or Product

July 13, 2010 by Frank Goley, Business Consultant

Giving away a product or service has long been a tried and true strategy to land more clients and customers. But have you considered combining this strategy with your Social Networking strategy?

Let’s say you are on Facebook, LinkedIn and Twitter. How many connections, friends and followers do you have? Could be thousands, right? Definitely hundreds if you have been doing any social networking at all.  

How about growing your Social Network audience exponentially, maybe ten fold? Interested? I am!

Here is a simple strategy how:

§  Send an email to your followers, friends and connections saying you are giving away a free product or service. As an example, could be a free 30 minute consultation. Just make sure it is a valuable give away.

§  In the email, tell them there is a Catch. There is always a catch, right? Might as well be honest and upfront! Well, the catch in this strategy is two fold:

o    Catch 1: You are giving away this valuable free service or product because if they are pleased with the result, you hope they will share your information with their friends, connections and followers. Basically a “friendly” referral.

o    Catch 2: If they are satisfied with the free offer, you will ask them for a Testimonial on your website.

§  Follow up with your Free “consults” once per month, asking them to refer you to the new friends and connections they may have made in the last 30 days. Give them a free E-book or some valuable information for their business as a “thank you.”

§  Make sure you put all your free “consults” on your RSS Feed and Newsletter list to stay in touch with them and continually give them free and valuable business tools.

That is it! A very simple strategy to grow your business exponentially through the social networks. Basically it is business networking on steroids!

Now many of the free “consults” will not do any business with you, and many may not refer you the right customers or any good number of customers. No matter. This is a numbers strategy, as the exponential growth in your social networks will increase your online presence and certainly bring in fresh prospects and customers. Once you have perfected this system, you can start concentrating on quality and run less of a numbers game. Remember, one quality referrer can bring you lots of quality customers. Think of the possibilities! (you could be giving away business with this strategy because you have too many clients!)

Form your give it way for free social networking strategy today!

Video Resource: Is Social Networking Worthwhile?

Posted in Business Marketing Strategies. Comment

An Alternative to Franchise Finance – Private Investors

July 12, 2010 by Frank Goley, Business Consultant

With bank and franchise finance drying up in this economy, a smart entrepreneur came up with a solution. A platform to link investors with potential franchisees. FranEquity provides a platform where a potential franchisee in need of money can present an opportunity and accumulate investors into a group so the franchisee can qualify for bank or traditional finance. This platform also matches franchisors with investors.  

This type of system really opens the doors for many entrepreneurs seeking capital to start or grow a franchise. Here are some applications of this concept which may be helpful in your capital raising efforts:

Ø  If you want to fund a franchise start up but lack capital and expertise, then consider putting together a local private investor group to fund 40-50% of the funds necessary and then finance the rest with the bank. Use a good law firm to set up the investment group and define the rules.

Ø  Already a business owner and want to franchise your concept? Don’t have the funds? Consider forming a private investment group so you can develop the system and do some test franchises. Leverage your investment group into larger bank finance when ready to sell your franchise concept.

Ø  Already own a franchise but can’t get financed for more units? Consider forming a private investment group to help you qualify under the franchisor terms.

There are a ton of applications and advantages to this franchise finance concept. Namely, if a franchisee has the expertise to run a franchise unit, then he or she shouldn’t be disqualified for lack of funding. It is a win-win for both the franchisee and the franchisor during a period of tough business finance acquisition. Apply it to your circumstance and see what creative ways you can come up with to enter the franchise market.  

Disclaimer: ABC Business Consulting is not offering investment or finance, nor endorsing a particular company in this blog post. Please conduct your due diligence and utilize legal help when considering such a strategy.

Video Resource: Bank Franchise Finance

Posted in Business Finance. Comment

Should You Rollover Your IRA or 401(k) to Fund Your Business Start Up?

July 9, 2010 by Frank Goley, Business Consultant

I was a Financial Planner back in the day but no longer practice. More than likely as a financial planner I would advise not to do this if you are using all or a majority of your retirement funds to do so. Moreover, there are all the tax rules to consider – another big negative and potential risk.

But from the standpoint of a Business Consultant, it is my job to share ways to fund your business and present the positives and negatives of a Business Funding Strategy. It is up to you to decide, but if you are going to consider this funding strategy, be sure to meet with both a very qualified Tax Attorney and ERISA CPA to discuss the pros and cons.

Nearly 4,000 businesses in 2009 used this strategy to launch their businesses. Why so many? I will discuss why, but first let’s see how it is done.

The Mechanics of the Retirement Fund Rollover as a Business Funding Strategy

– Step 1 – Move Your 401(k) or IRA into an ERISA Profit Sharing Plan: This ERISA plan then becomes the retirement plan for your new company.

– Step 2 – The New Retirement Plan Buys Stock in the New Company (C Corp):  When the funds have transferred into the new company, it becomes Tax Free Capital. The idea is you are buying stock in your own company rather than the stock of another.

– Step 3 – Open a Business (Corp) Checking Account and Pay Yourself Back: You must offer the retirement plan to the employees and use it as a retirement plan.

The Risks

v  Your business may fail and there goes your retirement money.

v  You may violate the complicated ERISA rules and end up paying harsh penalties and taxes. Very complicated compliance rules. Be sure to read the IRS publications on this strategy, including: http://www.irs.gov/pub/irs-tege/rollover_guidelines.pdf

v  Fee up to $5,000 to set up the ERISA Plan, plus all the Attorney and CPA fees prior to assess it.

v  On going annual fees to maintain the ERISA Plan in compliance with the IRS, which can run up to $1,500 a year.

v  Some Tax Experts predict the IRS will crack down on these plans in the future.

The Advantages

v  Cash is King in business. You do not have to strap the cash flow of your business with this strategy.

v  Businesses not burdened by debt finance can become profitable much quicker.

v  Tax Free

v  Doesn’t require a credit score to acquire the capital. Bank finance is hard to find even for credit worthy applicants, let alone a start up.

v  Money is ready quickly. You don’t have to wait on banks or investors.

v  60,000 jobs and $8.3 Billion have been added to the Economy as a result of these Plan Rollovers.

v  You don’t have to secure a second mortgage on your house and adversely affect your personal cash flow to fund your business.

v  Great way to attract quality employees to your Start Up by offering a Company Retirement Plan right from the start.

v  If you only use a portion of your Retirement Funds to set up the Rollover Plan, then you don’t risk your future retirement funds in the event the business fails.

v  Combine the retirement funds with other Business Finance Sources to find the best mix of cash and debt finance for your business.

The Bottom Line

Don’t risk all your retirement funds to try this strategy. Whether the business turns out successful or not, most smart entrepreneurs only use 20-30% of their retirement fund to set up the new company retirement plan. It depends on your financial security and if you have kids or not – in this sense, it is a personal financial planning decision as well. Understand the implications of all the IRS Rules and the possibility of future IRS scrutiny.

Disclaimer: Frank Goley or ABC Business Consulting is not offering tax, investment or legal advice. Consult an Attorney and CPA for tax and legal advice.

Video Resource: Why the Retirement Fund Rollover as a Business Funding Strategy May Not be a Good Idea…

Posted in Business Finance. Comment

Marketing (Not Your Product or Service) Is What Will Make Your Business Successful

July 8, 2010 by Frank Goley, Business Consultant

Ok, you probably think I have lost my marbles. But really think about it. Most business owners think it is their great products and services that bring them customers. Rather, it is the Marketing that brings the customers in the door and converts sales, not the product or service itself.

Business Success Comes From Marketing (Not the Product or Service)

So what am I saying here? Sure your product and service need to be solid but don’t be fooled in thinking that if you develop the worlds best product or service that you will be successful. The success of a business comes from the Marketing Plan behind it. It isn’t the product or service creating the sales, it is the marketing behind it.

Spend Time Every Day On How You Will Market

My experienced recommendation is spending time every day figuring out how you are going to market to profitable groups. Hold on, maybe you don’t even know who are your most profitable target markets and segments and niches! Take the time first to determine who they are, and with that established, spend time on a daily basis figuring out ways to market to them.

Test market your “theories” and see if it pays. If a marketing angle doesn’t pay, scrap it and move on to the next. Every day track your marketing efforts and try to come up with a fresh marketing idea to try out. Every day! That is, every single day! It is just that important.

Don’t be Blinded by Product and Service Innovation and Development

Sure product and service development and innovation is important to stay competitive, but I find way too many businesses concentrating on that solely and not on marketing. The truly awesome product or service, and doubtful most businesses have that unique one, won’t sell itself. It is the marketing behind it that create the sales and a sustainable business.

Brainstorm Marketing Ideas for a Week

Go to work today on brainstorming Marketing methods. In fact, spend a full week on brainstorming. Come up with a list and work through it, testing each as you go. Add to that list every day. Make this a priority in your business day, and you will be successful.

Need some marketing ideas? Check out my articles on Business Growth…

Need help on your Marketing Plan and Strategy? Please consider our Marketing Plan Business Success Package…

Resource: Here is a Video On Marketing to Get You Started (be sure to watch part 2 and 3 too)

– Part Two: http://www.youtube.com/watch?v=e9tjgsJk6pE&NR=1

– Part Three: http://www.youtube.com/watch?v=blTOv3oXdbk&NR=1

Posted in Business Marketing Strategies. Comment

What Venture Capital is Looking For in this Market

July 7, 2010 by Frank Goley, Business Consultant

If you think you require venture capital, then it pays to do your homework.

With the Recession, Venture Capital has shrunk 18% the first quarter of 2010, compared to 4^th quarter of ’09. Some say that is good, others say that is bad. Either way, you need to understand if you have a fundable business model for Venture Capital, what VC is looking for in an opportunity, how to find VC and what VC investments are hot now. So here is a Venture Capital checklist for you to help steer you through the competitive market of venture capital.  

The Venture Capital Checklist

ü  Is Venture Capital really appropriate for your business model? Will your company be fast Start Up, grow very big quickly, and have an Exit of a sale or IPO?

ü  Understand only 1 in 20 serious deals get funded

ü  Tap VC networks of professionals and advisors to get close to a viable VC firm.

ü  Get close with a VC’s group of funds relationships

ü  Up to 50% of VC inquiries can come from cold contacts but highly recommend you find a referral source

ü  Find the VC inner networks. These people are trusted by VCs and are great referral sources. This includes previously funded entrepreneurs.

ü  Find VC by researching online

ü  Find VC by using your personal networks and the social networks

ü  Use VC attorneys and accountants for an introduction

ü  Research the companies a particular VC firm has invested in

ü  Read very carefully what the VC principals say and write and make that personal, informed connection when contacting them via email. Make it a personalized email!

ü  Keep the introduction email short: how much looking for, why you are a good fit to the fund, comment on the principal’s writings and speeches and make a personal connection. In other words, do your homework on the VC and keep your initial contact short and too the point but very personalized.

ü  The lead Entrepreneur(s) is scrutinized for knowledge, credibility and experience around the business opportunity.

ü  The entrepreneur has real Passion.

ü  Entrepreneur has vision

ü  The entrepreneur isn’t too optimistic about potential problems and threats

ü  Company has a great Team in place.

ü  The management team is more important than the business idea. A great team can be profitable with a mediocre idea. A great idea with a mediocre team fails.

ü  A website that already has lots of Organic traffic

ü  A Web Model that makes profit sense

ü  Understand online marketing well

ü  A Product or Service Solution that will change the market or create a new market.

ü  Some Current Hot VC Areas: Wine, Food, Financial Services, Video Delivery, E-Business Infrastructure, Infrastructure around Cloud Computing, Media and Music. Solutions to save Consumers and Businesses money in this long Recession.

If you don’t qualify for Venture Capital, consider private investors. If you qualify for VC, use private investors to get you VC.

Resource: Here is a Video on How Venture Capital Works

Posted in Business Finance. Comment

Do You Know Who Are Your Best Customers?

July 6, 2010 by Frank Goley, Business Consultant

Have you created a profile of your best customer? If not, do it today. Why? So you can key on that type of customer in your marketing efforts and advertising. All of your marketing should be highly targeted, otherwise, you are throwing money away and paying for market research.

What is the best way to find your best customer? Word out mouth referrals. It is the most cost effective, and if you target your best customers for the referrals, often they will refer similar type of clients.

Should you pay for referrals? Yes and No. I like to extend a hand written thank you to referring customers, and those that refer often I like to include a gift certificate. For non-customer trype referrals, then a referral fee is appropriate.

Design a Customer Profile

Include all the variants and determinants you can think of, including the list below. The more unique attributes you can identify the better.

ü  Name

ü  Age

ü  Education

ü  Psychographics

ü  Salary / Revenues

ü  Type of Company / Industry / Occupation

ü  Market / Location

ü  Cost of Customer Acquisition

ü  Range of Services Performed / Products Sold

ü  How the customer found you or how you found the customer

ü  Why the customer bought from you

ü  Potential for re-sales

ü  Purchase history

ü  Credit worthiness

ü  Buying patterns

ü  Interests

Apply the customer profile to your referral network and all your marketing efforts. This targeted marketing segmentation will increase your profits and profitability tremendously. Do it today!

Resource: Here is a video on Creating a Customer Profile

Posted in Business Marketing Strategies. Comment

Have a Great 4th! Here’s a Video on the Changing Marketplace

July 5, 2010 by Frank Goley, Business Consultant

Posted in Business Marketing Strategies. Comment