Author: Pamela Swift

Get Swimming

Post author By Pamela Swift
Post date August 31, 2007

Entrepreneurs-Journey.com: A common small business start-up formula today is to offer a product or service and sell it online. If you are reading this blog chances are that describes your situation now. Perhaps you are a freelancer with skills to sell, or you decided to have a go at selling a product online, maybe through eBay or directly from a website. Maybe you quit your job or downgraded to part time work to have time to start your business, or you even attempted to do both at once – work a job and start a business at the same time.
Whatever the scenario, we all start at the same place – the beginning – and it’s at this point that we begin to take action to drum up business. Once you have something to offer, you brainstorm ideas for how to market what you do and then, finally, you go out there and “get in the face” of your target market.
During the early days you tend to do a lot of work yourself, and until you actually make sales, you are very pro-active (or at least you should be!) at chasing up more work and more sales. Generally, because the pressure to establish cashflow is so great, this stage of your business involves rapid action and you do a lot of activities that move you forward. I call this swimming.
Are You Drowning, Treading Water or Swimming? [Entrepreneurs-Journey.com]

Franchise

Serious Franchise Thoughts

Post author By Pamela Swift
Post date August 31, 2007

About.com: Buying a franchise is a dream for many aspiring small-business owners.
There are conflicting opinions as to whether franchises tend to be more successful than independent small businesses, but this much is clear: Franchises are expensive to buy, carry the same risks as any startup business and require plenty of sweat equity to make them profitable.
“Buying a franchise is a serious, serious business, and one should contemplate the downside,” says George Naddaff, chairman of the KnowFat! chain of restaurants, who created franchises including Boston Market and Sylvan Learning Centers. “The danger … is that every franchise is a startup.”
Franchising allows entrepreneurs to take advantage of a proven business model and do business under a brand name that already enjoys market recognition and a loyal customer following.
As a franchise owner you will probably get support from your franchisor, which is one advantage over owning an independent business.
Buying a Franchise is Serious Business [About.com]

Online Business

From Browse To Buy

Post author By Pamela Swift
Post date August 30, 2007

Inc.com: Anyone who does business online worries about how to boost Web traffic. But traffic is only part of the story. Equally important is the conversion rate – the percentage of customers who actually buy something. On average, companies report that only 3 percent of Web surfers actually buy, according to a survey by Shop.org, a division of the National Retail Federation.
Fortunately, there are new tools that can help companies convert browsers into buyers. A company can design several versions of its website and use one of many new software packages to track how each design affects the conversion rate. It’s called multivariate testing, and many consulting firms specialize in it. But free tools also are available, including Google’s Website Optimizer.
Below, we look at how two companies boosted conversion rates. Stamps.com, which allows users to print postage and shipping labels from any computer, redesigned its website after testing 12 versions of its site with consultancy OTTO Digital. The company’s conversion rate rose by 20 percent. Vitamin maker Jigsaw Health tested 10 different designs, with help from consulting firm Future Now. The result: The conversion rate rose from 10.3 percent to 19.6 percent. Take a look at the lessons both companies learned from the process. The changes on display may seem small and subtle, but the effect on conversion rates has been anything but.
Turning Browsers Into Buyers [Inc.com]

Operations

Art of Cash Flow

Post author By Pamela Swift
Post date August 30, 2007

BusinessKnowHow: Cash. Most people want more. When running a small business it’s particularly important to monitor how cash is coming in and how much cash is going out. This month, I’d like to take a few minutes to share some ideas on cash flow management as in how you can keep more cash in your business for a longer time.
Periodically re-evaluate your expenses. If you are anything like me your business changes and shifts every 4-6 months and this prompts a necessary re-evaluation of the products and services you are using to run your business.
Hold off on electronics and other purchases for as long as reasonably possible. If you need to invest in a new computer or printer or copier you can save money without sacrificing quality if you can wait a few months to purchase.
Use credit responsibly. If you have access to lines of credit you can use these to finance business purchases rather than paying cash outright. This, in many cases, can give you 20-30 extra days on your money enabling you to save or invest it for maximum return.
Watch out for hidden fees. Yes, there are some “costs” of doing business. However, at least once every 6 months, review what you’re paying for services like office cleaning, credit card transactions, long distance calls, liability insurance, etc.
Get paid more. Another way to manage your cash flow is to charge more for what you do. Institute planned increases in your payment rates over a year or two. Raising your fees as a cash flow strategy only works, though, if your spending remains less than your earnings.
Buy in bulk. This applies to physical products/supplies as well as non-physical ones (such as services). You can often realize a significant cost savings on items bought in bulk especially if you were going to buy them anyway.
Keep track of your discounts and other rewards. We are inundated with special offers, promotions and discounts. Use these wherever you can.
Give special consideration to your customers who pay early and in full. Customers who routinely pay their bills ahead of time, and who are rewarded for doing so, are more likely to continue this behavior which results in more cash inflow for you.
Invoice before, or soon after, performing a service. Don’t wait to send out bills just once every 30 days. This can delay cash inflow for months.
Invest in the growth of yourself and your business. Spend money to market your business, invest in your own learning and get help as soon as possible. The more you put into your business, in a thoughtful and measured way, the more you will get out of it.
Cash Flow Management [BusinessKnowHow]