What Makes Your Small Business Stand Out

One of the best things smaller businesses offer customers is a personal touch. Knowing your clients and their tastes and needs is a big part of what keeps them coming back. Whether you make designer cakes or install high-end electronics, treating your customers as individuals is one of the keys to building loyalty. Believe it or not, your business phone service can be used in ways that reinforce the personal service your clients have come to expect.

How Your Phone System Can Help Your Business Maintain a Personal Touch

It’s no secret that people don’t like making calls and spending time navigating endless phone menu options. If your business phone service helps customers avoid the frustration of dealing with phone menu options, you’re already a step ahead. And today there are new options you can add to your system that will help you do that, and that customers will appreciate. Here are 7 terrific options to consider when it’s time to upgrade.

1. Automatically greeting callers by name. When a repeat customer calls, a window with his or her name and information pops up, letting you know when the customer called last, who they talked to, plus any other relevant notes about the customer. Imagine how refreshing it will be for a customer’s call to be answered personally: “Hello Sara, this is James with Amalgamated Designs. How may I help you today?”

2. Remembering which representative a caller spoke with last time. If you call a business and receive excellent customer support, you probably want to speak with the same representative next time you call. Today’s business phone services allow you to make that happen. Imagine calling a business back and being automatically routed to the representative you spoke with last time. Not only does it save time, it builds a stronger bond with a customer than routing them to a random representative each time they call.

3. Attaching VIP status to some callers to route them to a human rather than a machine. There are some clients you don’t want to have to put on hold. For these VIP clients, you can automatically route a call to a live person rather than having them leave a message. It’s a small gesture, but it shows special customers that they are remembered and appreciated.

4. Routing to a mobile number after hours. If you want to be sure that a potential client is given personal service no matter what time he or she calls, you can set up your business phone service so that the call can be automatically routed to a mobile number after regular business hours. The caller will be pleasantly surprised to be greeted by a person rather than shunted to a voicemail system.

5. Blacklisting callers. Unfortunately, there may be the rare occasion where you need to prevent a particularly disruptive caller from bothering you or your staff. While you certainly don’t want to overuse this feature, having the option to cut off an abusive caller is a nice trump card to have up your sleeve.

6. Time-based routing. This phone feature lets you schedule auto attendants to handle calls at different times of the day or on weekends. This gives you better flexibility and control of your business’s call handling procedures.

7. Offering custom “hold” music. This is a great option that can make the difference between an annoyed caller and a relaxed caller. With many systems, you can load MP3 files that will play whenever a customer is put on hold. It’s also a great way to tie in your hold music with the nature of your business. Do you specialize in booking Caribbean vacations? Why not use some cool reggae, or steel drum music with your phone system rather than the old “elevator music”?

It’s always exciting when your business is growing enough that you need to upgrade your phone system. Today, upgrading your business phone service doesn’t mean giving up the personal touch your customers love.

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Start-ups and small businesses are the lifeblood of America.  In 2009, there were no fewer than 50 million businesses with under 20 employees, providing over 189,500,000 jobs, and paying out a mind-boggling $6 billion in payroll.  In 2011, according to PriceWaterhouseCoopers, nearly $3 billion in venture capital was seeded across the United States.

But what states are the best for entrepreneurs?  The answers might take you by surprise.

1. California

Total Venture Capital in 2011: $14.5 Billion

Number of Deals: 1477

California may be facing some rough times economically in some sectors, but in terms of sheer volume, if you want to be a start-up, the Golden State is a great place to do it.  Part of this is just the fact that some of the Internet companies that began the decade as tiny have become behemoths: imagine being in on the ground floor of Facebook, with its potential $100 billion valuation.  True, not every bet in Silicon Valley pays off.  In fact, most of them don’t.  But those that do make their investors billionaires turn right around and sink that money into California start-ups.

That’s reflected in the sheer number of venture capital deals: California is the only state to have four figures in 2011.  In fact, California had more venture capital deals than the rest of our top five combined.  So if you want to build your start-up, it’s as true now as it ever was: go west.

2. Massachusetts

Total Venture Capital in 2011: $2.9 Billion

Number of Deals: 383

Coming second is the Bay State, and for good reason: it has a long, long history of technical innovation.  Harvard, MIT, Boston University, and Boston College, all highly respected institutes of learning, make their home in the Boston area, which makes it both a hotbed of innovation with tiny companies started up by ambitious science graduates commercializing their research, and huge corporations coming to take advantage of the talent being cranked out every year.

Massachusetts has a long, long history of success: Polaroid, Raytheon, Draper Laboratories, ThermoFisher, Akamai, and legions of others got their start or took off in the Bay State.  Currently, Massachusetts is witnessing a boom in robotics, biotech, pharmaceuticals and industrial software, with companies like iRobot and Genzyme employing thousands in the area and turning out everything from the latest disease cures to cute robot vacuums.

In short, Massachusetts may not have quite the venture capital of California, but if you don’t want to move across the country, consider Massachusetts your next stop.  Or, if you want sun but no beaches…

3. New Mexico

Total Venture Capital: $2.3 Billion

Number of Deals: 309

Hot on Massachusetts’ heels in 2011 is New Mexico.  Which may sound odd until you stop to remember its unique history.

New Mexico is host to a number of esteemed government laboratories: White Sands for missile testing and satellite tracking, and Los Alamos and Sandia National Laboratories, two of three locations where the government studies nuclear physics.  In short, New Mexico is one of the key states in the aerospace industry, especially for government contracts, and that makes it a thriving ground for physicists and other scientists in the private sector.  New Mexico has a lot of brainpower in its borders.

It’s not shy of other start-ups, either.  For example, the Santa Fe Business Incubator, a non-profit, is thriving, housing everything from a boutique distillery to pharmaceutical companies to nanotechnology.  Helping is the relatively low rents and the government businesses, allowing the state to thrive even in tough times.

Another surprising state is…

4. Tennessee

Total Venture Capital: $1.4 Billion

Number of Deals: 153

What makes Tennessee the venture capital jewel of the Southwest?  Pretty simple, really: its strong focus on the medical industry and key role in the music industry.

Tennessee was where the revolution in healthcare began; the first major health management organizations got started in Tennessee, and that’s reflected in its strong business base of medical start-ups, focusing on everything from surgical technology to pharmaceuticals.  The second, and just as important, leg is Nashville; country music is one of the best-selling, and thus most important, music genres in America, selling 42 million albums in the US alone.

This combines to create a diverse range of start-ups and small businesses, from musical instrument makers and online music streaming companies to medical nanotechnology companies.  Even car companies have taken notice: increasingly, the car you drive comes from the Volunteer State.

And, last but not least in our top five:

5. Illinois

Total Venture Capital: $683 million

Number of Deals: 89

Illinois has a long industrial history, but what drives it as a start-up hub is its thriving online and biotech industries.  Anchored by respected science schools such as the University of Chicago, the Windy City alone has more than 700 startups.  In fact, many of the hot new Internet startups actually have their roots in Chicago.  Belly, a startup that offers loyalty cards services to businesses large and small, is just one rising star.

Helping considerably?  The state’s strong financial sector, which both generates money and allows investors to offer their funds to smaller companies as a chance to get in on the ground floor.  Multiple venture capital firms and incubators mean many start-ups get a stronger chance in Illinois than almost anywhere else in the country.

One thing to keep in mind, though, is that just because a start-up didn’t get venture capital doesn’t mean it’s not successful in its own right.  Many, many giant companies started with one person having a dream, and putting all they had behind it.  In the end, the best start-ups don’t succeed because of where they are, although location can help.  They succeed because of the people and ideas behind them.

Sources

We found the data in our opening paragraph courtesy of the United States Census Statistics of U.S. Businesses.  The rest of the information came from PriceWaterhouseCoopers annual venture capital MoneyTree report, the only state-by-state breakdown of venture capital publicly released.

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If you find that the only calls you’re getting on your landline are from telemarketers (and your weekly check-in with Aunt Mildred), it might be time to consider ditching it altogether.

More Americans Giving Up Landlines

The U.S. Census Bureau found that between 1998 and 2005, the percentage of households with cell phones increased from 35 percent to 71 percent. At the same time, the number of households with landlines went from 96 percent to 91 percent.

While the decrease in the number of landlines might seem insignificant, consider the fact that landline usage for households 29 or younger dropped from 93 percent in 1998 to 71 percent in 2005.

And the younger generation might be on to something. These days, between cell phones and VoIP phone service, paying a bloated telephone company to provide you with a high-priced phone service seems a little silly — especially considering you can get all the benefits of a landline for a lot less money.

Switching to VoIP a Smart Move

If you’d prefer not to rely solely on your cell phone, take a look at replacing the landline with VoIP phone service.

“The transition from a conventional home phone line to a VoIP account using the same number went without a hitch. Considering the money we’ll save each month, the only question is why we waited so long,” writes CNET blogger Dennis O’Reilly.

If you’re still on the fence, here are six reasons to switch to VoIP:

1. You’ll Save Money: If you’re already paying for high-speed internet, the savings you’ll find switching from a landline to VoIP can be significant. Popular providers charge anywhere from $9.99 to $24.99 a month for unlimited local and long-distance calls in the U.S. and Canada, plus low-cost international calls. The cost of a landline varies widely depending on where you live — but can be upwards of $20-$50 or more a month plus $0.10 per minute for long-distance. If you make or receive long-distance calls frequently, switching to VoIP is almost a no-brainer cost-wise.

2. Improved Call Quality: At it’s inception, there were many complaints about call quality with VoIP. Customers experienced dropped calls, jitter or latency. But with the proliferation of high-speed internet and the focus of providers on improving call quality, those initial VoIP hiccups are becoming a thing of the past.

3. You Can Keep Your Phone Number: Don’t assume that giving up your landline means you also have to give up your telephone number. Many VoIP providers offer you the opportunity to port your number for a small fee, making the transition that much easier.

4. You can Still Fax: There’s no need to keep a landline dedicated to sending and receiving faxes. Depending on the provider, your fax machine (even an older model) can be hooked up to your VoIP line just like your telephone. Or, you can choose to receive computer-based faxes, in which faxes are converted to PDFs and sent to your e-mail.

5. Easy Set-up: For most VoIP services, connecting your current phone requires little more than an adapter that your provider should send to you with easy instructions for how to set it up in minutes.

6. Amazing Features: A big reason to switch to VoIP is the array of useful features that come along with the service. In addition to being able to make and receive calls at a low price, depending on the provider, VoIP offers all the services you’ve come to expect from traditional landlines (caller ID, call waiting, voicemail) as well as plenty of extras like video calls and conferencing, call transfer and forwarding, instant messaging and file transferring.

Learn more about what VoIP can do for your at Business.com.

Photo courtesy of Stock.Xchng

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With the continued improvement of mobile technology, expansion of Cloud-based software programs and data storage, and the desire for lower startup costs, many new businesses are ditching the traditional office space and opting to go virtual — using the Web to connect employees, clients, customers and partners.

According to experts, the benefits of establishing virtual headquarters for your business include increased productivity, lower overhead costs, and environmental friendliness.

Here’s a look at what one business found when they tried going virtual:

Virtual Experiment

In 2010, the editorial staff of Inc. magazine experimented with becoming a virtual office for a month. Reporter Max Chafkin highlighted some of the pros and cons of the experiment in his article, “The Case, and the Plan, for the Virtual Company”:

Pros

• Save on overhead: Savings on going virtual include leasing office space, paying for utilities and internet, and purchasing office furniture. Companies should still plan on reimbursing employees for equipment they need for work, including computers, software and cell phones.
• Utilize free services: Inc.com noted that businesses can also save on using enterprise software, instead relying on the free or low-cost programs that consumers use every day like Skype, Gmail and DropBox.
• Increase talent pool: When it comes to hiring, being a virtual company is a boon. Not only do potential hires like the idea of working from home, they see the company as being more flexible and valuing productivity more than attendance.

Cons

• Decreased collaboration: Since they’re not sharing a physical space where they can pop in to chat with each other or have spontaneous brainstorming sessions, employees need to seek out space to share ideas online. While it’s possible to use chat rooms and video conferencing as virtual water coolers, these meetings don’t have the same informality and ease that working in close proximity has.
• The virtual stigma: Virtual offices and working from home comes with a stigma — customers can be skeptical and distrustful of companies that don’t have a central location. Tony Conrad, founder of Sphere, told Inc.com that businesses should never refer to themselves as a “virtual company” and that it might even be wise to lease a small office to use for meetings with clients and investors.
• Isolation: Employees can end up feeling isolated or out of the loop. Managers need to be cognizant about checking in regularly.

Communication is Key

As noted by Inc.com, one of the most important aspects of any business is the ability of employees to communicate with each other and the ability of the company to communicate with clients.

While the lack of a traditional office changes how some of these crucial interactions happen, it doesn’t mean that a virtual office is any less effective about sharing information easily with all interested parties.

In fact, with the improvement of mobile technology, the ability of virtual businesses to share information on a variety of platforms is better than ever, especially when it comes to new phone systems.

Picking a Business Phone System

One of the keys to ensuring seamless communication is picking the best business phone system for your virtual business.

Without a physical office, there’s no need to consider purchasing key-less, KSU or expensive PBX-based or phone systems that are tied to a landline and often require specialized maintenance.

This leaves a Voice over IP (VoIP) phone system as your best option. With VoIP, regular voice calls are sent via the internet, rather than a traditional landline. Keep in mind, in order for the highest call quality, you and your employees will all need access to high-speed internet.

The cost savings for long-distance and international calls are significant compared with traditional telephone service (most VoIP providers offer free local and long-distance calls anywhere in the country and very low per-minute rates for international calls), making VoIP ideal for companies with employees and clients based across the country and around the globe.

What Does VoIP offer?

Not only will a VoIP phone system save your company money, but the fierce competition among service providers means you’ll also find improved service and cooler features (think high-def video conferencing) than with older phone systems.

Here are some of the features VoIP can offer your virtual company:

• Local phone numbers anywhere you want to do business
• Toll-free number for your business
• Auto attendants to help route calls to the appropriate person
• Calls forwarding to business, cell or home phones, meaning you’ll never miss a call
• Dial-by-name directories
• Holiday and after-hours special greetings
• On-hold music
• Call screening
• Caller ID
• Virtual fax
• Visual voicemail
• Call logs
• Call recording
• Video conferencing
• Instant messaging
• Call encryption
• Integrated messaging

Hosted phone services like VoIP also mean you don’t have to hire anyone to maintain your office phone system — your service provider manages any technical and service problems.

Depending on the service provider you choose and the number of added features you use, VoIP can actually help you better manage all the incoming and outgoing communication for your company. Faxes, e-mails, texts, chat, conferencing and calls can all be accessed from your computer desktop, smart phone or tablet, meaning you can take your business anywhere there’s Web access.

What more could a virtual company want?

Learn more about choosing a business phone system on Business.com.

Photo courtesy of office-designz.net.

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In some ways there has never been a better time than now to start your own business. With a shaky employment market, many people — including those who are unemployed or underemployed — choose to create their own job by starting their own business. The advantages of having your own business are numerous and include:

• More flexibility with your schedule
• The opportunity to do something you love and get paid for it
• Fewer restrictions on creativity
• The gratification of putting your ideas into practice
• Immense personal satisfaction

However, starting your own business should not be taken lightly. It requires harder work than you’ve probably ever done, and you may face very lean finances as you get your business off the ground. Becoming an entrepreneur is not for everyone.

The following 10-question quiz will help you determine if starting your own business is a good choice for you. The more “yes” answers you have, the more likely you are to have what it takes to start your own business and succeed.

1. Are you self-motivated, with initiative and the ability to define tasks and get them done?

Since you will be your own boss, you will be the one to define tasks and actually carry them out. You should have the initiative to determine what you have to do and when you have to have it done. And you have to follow through.

2. Are you willing to take on a part-time side job to boost cash flow?

There is no shame in moonlighting to ease cash flow while you’re getting your business going. And though you may not want to think about your business failing, having a steady job on the side can help minimize the financial problems that can result if your business goes under.

3. Are you creative at finding solutions to problems that other people might not think of?

One of the things that many entrepreneurs dislike about the traditional workplace is the entrenched way of dealing with problems “the way we’ve always done it.” As an entrepreneur, you don’t have that somewhat artificial restraint, and are free to address problems in nontraditional ways. This requires creativity and dedication.

4. Are you comfortable with the idea of promoting yourself, your work, and your business?

You may not be selling a tangible product, but if you have your own business, you are always selling something, including your expertise and skill. While you don’t have to resort to gimmickry or shameless self promotion, you do have to be comfortable telling people about what makes your business the best choice for addressing a client or customer’s needs.

5. Do you already have a strong professional network, or are you willing to devote time to expanding and strengthening your connections?

Having a strong professional network and being willing to expand that network is a key to helping your business grow. The more people out there who know and respect you and are willing to put in a good word for you, the easier it will be to launch and expand your business.

6. Do you have the fortitude to deal directly with dissatisfied clients or customers?

When you go into business for yourself, you can’t simply refer an unhappy client to the customer service department. Finding out that a client or customer is unsatisfied is difficult, and may make you wonder if you’ve made the right decision going into business for yourself. You have to be willing to step up and address issues yourself, or you will lose clients.

7. Are you equipped to deal with sick days, quarterly taxes, and other less enjoyable aspects of being an entrepreneur?

You not only need expertise in your particular business area, you also have to deal with accounting and legal reality. You should have a plan for coping with sick days (and that plan may be “working in bed”), and you must keep good records to avoid run-ins with the Internal Revenue Service and to track expenses.

8. Do you take yourself and your job seriously?

No matter what your profession is, and no matter how enjoyable your work, it can’t be all fun and games. It isn’t a hobby or something you’re doing just for kicks. You have to get up every day and remember: “I am a professional, this is what I do, and I have to give it my best effort.”

9. Do you have the support of your family and friends?

Having a spouse with a steady paycheck can help tremendously when you start your own business. But if your spouse resents carrying most of the financial load for a while or doesn’t take you seriously, you could experience strained relationships on top of the usual stress of operating your own business. If your friends aren’t supportive, you can come to doubt your decisions, or find yourself resentful.

10. Are you conscientious enough to meet deadlines, set and achieve goals, and exceed customer or client expectations?

If you constantly blow deadlines or if you sometimes devote less than your best efforts to jobs, you can lose clients and have a harder time gaining new ones. If you don’t have self discipline, being an entrepreneur may not be for you.

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Starting an online business is a bit different from starting a traditional bricks-and-mortar business. For example…

• An online business requires lower start-up costs than a traditional business.
• An online business offers instant international exposure.
• Tracking customers and monitoring a business’s performance are easier for online businesses.

Here are 10 steps for starting an online business..

1. Write your business plan. This plan should detail the “who, what, where, when, how, and why” of your business. Don’t worry about how long your business plan needs to be. It should be clear, focused, and should define your specific business goals. Having a good business plan adds the logical frame on which you build your business. You can find helpful templates for writing a business plan from the U.S. Small Business Administration (SBA).

2. Name your company and register your business’s domain name. You can register your domain name through any number of registration services. A list of domain registration services accredited by the U.S. Department of Commerce can be found here.

3. Choose a web host. Web hosts provide you with the server space and technical support you need to build your website. Which web host you select will depend on how much server space you need, your budget, and what you need your website to be able to do.

4. Design and create your website. For online businesses, the website is the business’s store front. Many web hosts have tools to help you create a professional-looking site, but if these tools don’t meet your needs, you can also hire a site designer. You must ensure that your business website does not infringe on someone else’s trademark or copyright. You can find information on trademarks, copyrights, and service marks on the U.S. Patent and Trademark Office website.

5. Market your business. As with any business, an online business only succeeds if customers know about it. Generating a healthy level of web traffic is the key to gaining customers. You can use search engine optimization (SEO) techniques and register your site with the major search engines to bring traffic to your site. In addition to the usual advertising media of print, television, radio, and web, social media sites are becoming a powerful medium for marketing.

6. Make sure your website and business operate legally. Your online business has to comply with laws and regulations that apply only to online businesses. You can learn more about these laws from the Federal Trade Commission. Your business also needs to comply with any applicable state, city, and county laws, and if you sell internationally, you have to be sure to follow international trade laws.

7. Be ready for the tax man. Your online business must follow the federal, state, and local tax laws that apply to traditional businesses. If your online business is operated in a state that charges a sales tax, excise tax, or gross receipts tax, you may have to register with your state’s revenue agency or apply for a tax permit. You will need to determine whether you will have to collect state and local sales taxes and pay them to the appropriate revenue agencies.

8. Arrange for online payments. Online transactions are the foundation of online businesses. Many web hosts offer “shopping cart” software that you can put on your site. You may choose to accept online payments through third party merchants like PayPal or Google Checkout, or you may set up your own merchant account with a bank. Requirements and fees for setting up a merchant account vary. Often, your best starting place is with one of your local banks.

9. Determine your product delivery methods. If your products and services are electronic, “delivery” may only involve email or an FTP site for downloads. If you have physical products, you need to determine if you’re going to use a fulfillment company, courier, the post office, or other delivery service.

10. Get a mentor. Of course you’re not required to have a mentor, but it certainly helps. If you can get to know someone who has successfully run an online business, you will have an easier time learning the skills you need and will waste less time on trial and error as you ramp up your business. Besides learning valuable skills, a good professional relationship with a mentor helps when you hit roadblocks or become discouraged.

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Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.”

With hundreds of marketing methods, strategies, approaches and tactics, which would be best, suited to grow your business and profits?

Here are 10 often overlooked marketing strategies to consider implementing in your business:

More Value, More Money

Almost every business can find ways to charge their clients more. Do some of your clients want faster shipping? You can often charge more for that. How about customization of their order? Yes, that too. Look for ways that you can deliver additional value to your clients and make their lives easier and you’ll almost always discover areas of your business that you can charge more for.

Be Unexpected

If you want to set yourself apart from your competitors, the right way is not to do what everyone else is doing. Maybe you take note of your customers’ birthdays and send them a card when everyone else forgets to. What if you took note of a wine your client really enjoyed when you met them for dinner and sent them a bottle of it a couple of days or week later? Do you think they’d remember you for that? Of course they would. Doing the unexpected isn’t just about giving gifts however. You can go the extra mile for your clients in many ways.

30 Days

You should be in touch with your customers at least once a month. The more often they hear from you (without going over board) the more you will stay top of mind. Even if they are not ready to buy from you, a prospect that continues to hear from you will be much more likely to buy from you when they are ready. It may take a month, six, or even a year or more. Keeping in constant contact with your customers and prospects is critical. To make your life easier you can automate parts of this process by using an auto-responder service to send automated, yet highly personalized, emails.

Always Educate

The best marketing educates. The sales process isn’t about “selling” it’s about educating prospects so they are fully informed and confident…and that’s when they are ready to buy from you. Are you using white papers, case studies, videos, reports, and newsletters to educate your prospects and clients? If you’re not, it’s almost certain you’re leaving a lot of money on the table.

Let Others Say It For You

If I tell you, “I’m the best person for this media job in Canada” how likely are you to believe me? Unless you’re my mother, chances are slim. Now, if a past employer tells you how great I am, you’ll be much more likely to believe it. It’s more credible, isn’t it? This is why testimonials and recommendations are so important. That said it never ceases to amaze me how few businesses leverage this power.  Your clients will be happy to tell others about how great you are, as long as you’ve done a great job.

You Need Help

Yes, that’s right. You need help. It’s not just you however, all professionals do. In fact, every athlete, singer, chef, and CEO at one time or another has a coach on their side. A coach or mentor is your sounding board. They provide an outlet for you to express the issues you’re dealing with and can provide suggestions on how to achieve the goals you want. Most importantly, they help to keep you accountable so you stay focused.

Put Your Customers Into Dollars

Ooh! That sounds so harsh, I know. Seriously though, how much are your customers worth to you in dollars? Don’t know? Time to figure it out. Here’s how: How much do they spend with you? How many times on average will they buy from you over their lifetime? The answers to those 2 questions will give you a sense of how much an average customer is worth. Why is this important, you ask? Here’s why…If your customers have a lifetime value of $5000 and you are currently spending $20 on marketing to bring in each new customer, don’t you think you could increase that? Not only would you be able to reach more people and increase your sales, you can also expand the possibilities of what you can do with your marketing to increase your conversion rate of new customers. In addition, you can also afford to spend more money on pampering your customers and taking better care of them over their lifetime so they will spend more with you and stay loyal long-term customers. Imagine what will happen when you’re doing that and your competitors are still spending $20 and no more? Who has a better chance of getting the customer? That’s right ;)

Communication Is an Advantage

Most people are poor communicators when it comes to business. They tell you they’ll get back to you at a certain time and don’t. They set a meeting and show up late. They send emails with no greeting and only a word or two…and leave the recipient to guess the full meaning of what they want to say. The more professional you are, the more you’ll stand out. Follow through with your commitments. Communicate in a professional manner. Your clients will trust you more. And when that happens, you win.

Profit Sources

It is common to offer more than one service. Businesses and professional alike find themselves delivering all kinds of products or services to their clients. Often, it didn’t start out that way. Clients asked you to provide something you didn’t have, you couldn’t say NO, and now, well, you got the idea. The problem is, not all products and services are equal. Every business needs to take a hard look at their sources of revenue and profit and ensure that they are putting the right amount of effort into each one. You may find that you’re spending 80% of your time selling a product or service that is only contributing 15-20% of your profits. While your other product or service only gets minimal attention from you, but is much more profitable.

Always Test and Track

Every business in every industry can find ways to test, measure and track their performance. Whether it’s an advertisement, Web site, lead generation page, or a phone inquiry (to name just a few) you can test it, measure it and find ways to improve it. A constant push for improvements and optimization in your business can deliver increases to sales and reductions in costs by 20% to 200% or more. Yes, it’s worth your time.

Photo credit: leviellerbe.com

About the Author: Michael Zipursky is a marketing consultant and runs Business Consulting Buzz a blog that looks at becoming a consultant, consulting fees and more, and is also the co-founder of FreshGigs.ca, a jobsite specializing in Canadian marketing jobs. His work has been featured in FOX Business, the Financial Times, HR Executive and other media.

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There are a number of great reasons why you should start a small business – working for yourself, earning more money, a more flexible work schedule, building your skillset, etc… As with anything worth doing, building your own business is not without its difficulties. Sometimes these challenges may seem bigger than they really are, and sometimes they keep us from fully pursuing an idea. But as most small business owners will tell you, the risks and challenges are usually worth the rewards and are worth finding solutions to in order to realize your dream.

Consider these 4 big challenges to starting a business, and if you haven’t already, start thinking about your personal contingency plan for overcoming them:

1. Running the show

Having to wear all of the hats yourself can be daunting. Just because you’re an entrepreneur and are starting a business doesn’t necessarily mean you excel in all areas of business. From sales, to marketing, to accounting, IT and innovation, there are a number of roles you assume as owner of a new business.

How to Overcome This: Be honest with yourself about your strengths and understand that, when you’re running a business, your time is precious. While you can certainly look into trainings to help grow your abilities, you may be better off looking to others to help in the areas where you struggle. This could be in the form of a virtual assistant, a contractor to handle certain responsibilities, or even Best Buy’s Geek Squad.

2. Finding funding

One of the biggest challenges that you face upon starting a business is figuring out how to fund the endeavor. Not every business requires a large investment from the get go, but you do want to be sure that you are in a position to keep the business running for the long-term.

How to Overcome This: When you’re starting a business from scratch, you can seek funding in the form of small business loans or lines of credit, you can fund it yourself through personal savings, or you can try to raise capital. Speak with a mentor at SCORE to get their thoughts on the best course of action for your business based on your goals. And, start rehearsing your business pitch. Whether you sell your ideas to an investor or a bank, either way they’ll want to understand what your vision is for success.

3. Getting health insurance

Once you take that step into business ownership, you’re likely left without health insurance to cover yourself in case you get injured or ill. It’s a small price to pay for the rewards of running your own company, but if you’re not one to take risks in all areas of your life, you’ll be happy to know that you do have a few options.

How to Overcome This: Look into independent health insurance from eHealth Insurance. Assuming you have a generally good bill of health, you should be able to secure individual health insurance for a relatively low rate. Or, apply for membership at Freelancers Union or some other group or organization that allows you to get group-rate health benefits even though you’re self-employed.

4. Time management

Time management is essential, and can prove to be extremely difficult if you’re new to building a business and running on your own schedule. At first, you may marvel in the time you have at your fingertips to focus on certain areas of the business, but any seasoned entrepreneur can tell you about the difficulties of maintaining a work-life balance. If you’re just starting and working out of your home, it can be easy to find yourself on the computer from 7 in the morning to dinner, only to spend another few hours at night crossing a few more things off of your list. What’s more, you may suddenly find yourself manic about work and business-related tasks, only to neglect the responsibilities you have for other areas of your life. Exercise, time with friends and family, and sleep are often taken for granted.

How to Overcome This: As difficult as it might be, it is crucial that you get yourself into an unshakable routine. Everyone manages their days differently, but if putting “run 3 miles” on your calendar at lunchtime physically makes you stick to the commitment, do it. If you cross everything off your To Do list by 8pm, don’t start diving into tomorrow’s tasks. Spend that extra time with family or entertain the idea of going to bed early. Either way, your body and mind will thank you.

Photo Source: youquoted.com, examiner.com

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Sometimes starting a business can be like the first day of school. You’ve taken yet another big step toward the future, and while you may be cautiously optimistic about what lies ahead, you’re also eager to put into practice everything you’ve known and been taught up to this point. It’s an exciting and nervous time.

And just like the first day of school, when you’re starting a business from home, you need supplies. To make sure you’re well equipped, be sure to get your hands on these 7 must-haves for your home office:

1. High-speed Internet connection

This one should go without saying, but it has to be mentioned: broadband Internet connection is an absolute must-have if you’re starting a business from home. This will allow you to conduct business without being burdened with slow internet speeds, which will interrupt downloads, add noise and breaks to VoIP phone service or Skype calls, weigh down on the speed of running applications, and kill productivity (and sanity!).

2. Business phone number

Setting up a phone number specific for your business not only reinforces a professional image, but also allows another way for prospects and customers to get in touch with you. No matter the nature of your business or the kinds of products or services you’re selling, you shouldn’t be surprised with the number of customers that still want to do business over the phone. Being able to reach you directly is a huge advantage for many.

You can set up a virtual phone number, such as one through Google Voice, so that one dedicated number can ring all of your phones – cell, landline, or home office, for example. This ensures you’re not missing a single important call. Or, you can get a second business-only line through your current cell phone carrier or phone company.

3. Computer dedicated to work

It’s critical that the laptop or computer you use to start a business remains a business-only computer. It’s not only important to distinguish for tax purposes, but it will also give you peace of mind that your business documents and applications are not being tampered with or accessed by family members. Keep your business laptop in your home office, and have a frank discussion with your family that your shiny new Macbook (or Dell, or ThinkPad) is off limits.

4. Printer / scanner/ fax / copier

Do yourself a favor and be sure to get your hands on an all-in-one printer that also scans, faxes, and copies. This will save you countless trips (and valuable time) going back and forth to Staples, FedEx, or the post office to get things shipped, signed, faxed, etc. Think of all the contracts, forms, agreements and work documents you deal with, and you’ll quickly realize the value of this must-have. Even better, they’re relatively inexpensive at $100-200 for something that can withstand moderate use.

5. Cloud account

You never know when you’re going to need that one critical document or spreadsheet. Storing all of your documents, images, videos, and charts on your laptop may be the easiest route, but if you’re traveling or out with family, cloud storage puts all of your work in the palm of your hand. Store your documents with Dropbox, CloudApp, or options created specifically for small businesses, like Carbonite or SugarSync.

6. Backup storage

Speaking of Carbonite and SugarSync, backup storage is also something you should invest in when you start a small business from home. And though it’s kind of like flossing (in that you know you should do it, but never really get around to it), when it comes to your small business, there should be no excuses. Running a small business means having to keep all customer information safe and secure; imagine the disaster you’d be facing if something were to happen to your computer. If it get damaged or stolen, you’re looking at a ton of frustration, and potential trouble, if it gets into the wrong hands. Do yourself a favor and backup your computer at least once a quarter, if not more often.

7. Organization system

Not only should you keep your digital files and assets organized, but it’s critical to keep yourself organized as well. Come up with a system that works for you. This could include a work-only filing cabinet or desk drawer for forms and contracts. It could be a schedule that you adhere to, ensuring you stay productive at certain times of the day. Running a small business means that you control your time and environment. This freedom can quickly become a burden if you let it. By sticking to a system, you’re likely to keep yourself and your business organized, and are able to deliver great products and results for your customers.

What else might you add to this list? What are other must-have items for you to have to start a business from home? 

Photo source: TonerMax.com, ehow.com

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These days, it seems like every tech company and software producer likes to say it’s in “The Cloud.”

A major cable company recently launched a cloud-based phone service for businesses in an effort to pull customers away from traditional telecomm giants.

The company promises to offer business with “on-the-go” employees affordable, reliable, high-quality service that can be accessed anytime anywhere.

This kind of promise should certainly perk up the ears of small businesses and large corporations alike, but what is this mysterious cloud and what does it mean for businesses when it comes to basic, but critical, functions like phone service?

What is the Cloud?

The cloud is any system of Web servers that store data and applications that users can access through a network.

Those of you who use a web-based e-mail program like Gmail, Hotmail or Yahoo already have some familiarity with cloud computing — whether you realize it or not. Instead of installing an e-mail program on your computer, you access your e-mail through your Web browser. That e-mail is stored in the service’s cloud rather than on your computer, according to HowStuffWorks.com.

Today, more and more traditional software applications are becoming available in the cloud, which, according to HowStuffWorks, takes the pressure off of personal computers to run programs. Instead, the network of computers offering a specific service — everything from word processing to phone service — does the heavy lifting.

Since they are not hard-drive based, users can access these programs either through their Web browser or through a special application provided by the service.

Advantages of the Cloud

Access: Users have access to cloud-based applications and software on any computer or device with an Internet connection. Data isn’t limited to one computer or corporate network.

Hardware savings: There’s no need to invest in expensive hardware like super-fast computers with extra storage because the cloud service will run programs and store data for you.

Software savings: For corporations, there is no need to purchase a software license for each individual user. Instead, they can pay a single fee to a cloud service company.

Less storage space needed: Big companies typically rely on a large set of computer servers to keep their business up and running. With cloud computing, a third party handles the job of storing data, which means you can stop renting out extra space for your server or gain back a room or two at headquarters.

Source: HowStuffWorks.com

Business Phones and the Cloud

Since just about any software program imaginable can migrate to the cloud, it only makes sense that phone service is also jumping on board, which is great for business.

Hosted or virtual phone systems (also known as VoIP), which operate in the cloud, offer users significant savings on call costs and technology.

Rather than having to invest in an expensive, proprietary-based PBX system, which requires expensive hardware and equipment and a staff to operate it, companies can purchase their phone system as a service.

Since the hardware needed to operate the phone system is on the cloud (with the exception of the phones and/or adapters), companies save money, and all maintenance duties fall to the service provider, instead of in-house employees.

But Skyrope.com advises choosing your hosted phone service wisely. Look for large, reputable providers who deliver your service through a dedicated connection or private network rather than through the internet, which will ensure better quality of service.

Features of Cloud-based Business Phone Service

Forbes contributor Gene Marks shared the pros of switching to a hosted phone system in a 2010 article. He’s found not only the cost appealing, but also the endless array of useful features, which include:

• Auto attendants
• Dial-by-name directories
• Toll-free numbers
• Multiple extensions
• Voicemail
• Caller ID
• Voice to e-mail
• Conference calling
• Virtual fax
• Calls forwarded to office, home and cell phones
• Video conferencing
• Call recording
• Call accounting

Also, because hosted phone systems are growing in popularity, the types of features available will only increase as service providers innovate to attract new customers.

Which begs the question, will you jump on the Cloud for your company’s phone service?

For more information on hosted business phone service, visit Business.com.

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