High overhead costs are nothing new to large department stores and retail chains. But the results of a sluggish economy typically are new cost-cutting measures, including deep cuts in customer service personnel. The result is largely a self-service shopping environment that customers may tolerate or even prefer for certain types of purchases, but a nightmare for the customer who has questions or needs help locating an item.
Small retailers must keep tabs on overhead costs too. But they are in a better position to provide the level of service that today’s demanding consumers expect. Knowledge of your customers’ interests and preferences will enable you to provide a better shopping experience that will be repaid with sales, repeat business and that all-important positive word-of-mouth advertising.
Your sales force should be knowledgeable about the products, trained in the art of customer relations and motivated to do their best through appropriate compensation ─ particularly if personalized service and specialized products are part of your marketing and sales strategy. A wise investment in hiring, training and incentives will likely result in a top-notch sales staff that will go out of their way to keep customers happy and your business growing.
These goals are easy to achieve and do not require a formal, structured training program. Routine sales meetings and informal training sessions can enhance employee performance of day-to-day activities. Encourage discussions to keep up with product innovations, adapting ideas of other retailers (including those outside your market and service area), and changes that can help anticipate customer needs. Role-playing is also a good way to help your staff handle problems on the floor, including those hard-to-please customers and the question of where to draw the line between being helpful and being pushy.
Remember, all customers want to feel valued even if they say they are “just looking.” You should be ready to offer the best solution to meet their needs, even if that means a referral to a competitor. By being attentive, knowledgeable and sincerely interested in your customers, you and your staff will go a long way in building their loyalty and a successful business.
Tuesday, May 19, 2009
Tuesday, May 12, 2009
What insurance do I need for my business?
Like home insurance, business insurance protects the contents of your business against fire, theft and other loses. It is prudent for any business to purchase a number of basic types of insurance. Some types of coverage are required by law, other simply make good business sense. The types of insurance listed below are among the most commonly used and are merely a starting point for evaluating the needs of your business.
Liability Insurance – Businesses may incur various forms of liability in conducting their normal activities. One of the most common types is product liability, which may be incurred when a customer suffers harm from using the business product. There are many other types of liability, which are frequently related to specific industries. Liability law is constantly changing. An analysis of your liability insurance needs by a competent professional is vital in determining an adequate and appropriate level of protection for your business.
Property – There are many different types of property insurance and levels of coverage available. It is important to determine the property you need to insure for the continuation of your business and the level of insurance you need to replace or rebuild. You must also understand the terms of the insurance, including any limitations or waivers of coverage.
Business Interruption – While property insurance may pay enough to replace damaged or destroyed equipment or buildings, how will pay costs such as taxes, utilities, and other continuing expenses during the period between when the damage occurs and when the property is replaced? Business Interruption (or “business income”) insurance can provide sufficient funds to pay your fixed expenses during a period of time when your business is not operational.
“Key Person” – If you (and/or any other individual) are so critical to the operation of your business that it cannot continue in the event of your illness or death, you should consider “key person” insurance. This type of policy is frequently required by banks or government loan programs. It also can be used to provide continuity in operations during a period of ownership transition caused by the death or incapacitation of an owner or other “key” employee.
Automobile – It is obvious that a vehicle owned by your business should be insured for both liability and replacement purposes. What is less obvious is that you may need special insurance (called “non-owned automobile coverage”) if you use your personal vehicle on company business. This policy covers the business’ liability for any damage which may result from such usage.
Officer and Director – Under most state laws, officers and directors of a corporation may become personally liable for their actions on behalf of the company. This type of policy covers this liability.
Home Office – If you are establishing an office in your home, it is a good idea to contact your homeowners’ insurance company to update your policy to include coverage for office equipment. This coverage is not automatically included in a standard homeowner’s policy.
Contact your insurance agent or broker to make sure you have the proper coverage for your business.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Liability Insurance – Businesses may incur various forms of liability in conducting their normal activities. One of the most common types is product liability, which may be incurred when a customer suffers harm from using the business product. There are many other types of liability, which are frequently related to specific industries. Liability law is constantly changing. An analysis of your liability insurance needs by a competent professional is vital in determining an adequate and appropriate level of protection for your business.
Property – There are many different types of property insurance and levels of coverage available. It is important to determine the property you need to insure for the continuation of your business and the level of insurance you need to replace or rebuild. You must also understand the terms of the insurance, including any limitations or waivers of coverage.
Business Interruption – While property insurance may pay enough to replace damaged or destroyed equipment or buildings, how will pay costs such as taxes, utilities, and other continuing expenses during the period between when the damage occurs and when the property is replaced? Business Interruption (or “business income”) insurance can provide sufficient funds to pay your fixed expenses during a period of time when your business is not operational.
“Key Person” – If you (and/or any other individual) are so critical to the operation of your business that it cannot continue in the event of your illness or death, you should consider “key person” insurance. This type of policy is frequently required by banks or government loan programs. It also can be used to provide continuity in operations during a period of ownership transition caused by the death or incapacitation of an owner or other “key” employee.
Automobile – It is obvious that a vehicle owned by your business should be insured for both liability and replacement purposes. What is less obvious is that you may need special insurance (called “non-owned automobile coverage”) if you use your personal vehicle on company business. This policy covers the business’ liability for any damage which may result from such usage.
Officer and Director – Under most state laws, officers and directors of a corporation may become personally liable for their actions on behalf of the company. This type of policy covers this liability.
Home Office – If you are establishing an office in your home, it is a good idea to contact your homeowners’ insurance company to update your policy to include coverage for office equipment. This coverage is not automatically included in a standard homeowner’s policy.
Contact your insurance agent or broker to make sure you have the proper coverage for your business.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, May 5, 2009
How do I make my website work for me?
Our chapter’s resident expert on advertising and marketing, Alan Yarnoff, shares his thoughts on today’s fastest growing business segment.
The first thing you must do is to look at your site with critical eyes by addressing the key elements that lead to a successful and profitable presentation.
Have you set business goals, do you have a realistic target market and do you have quantifiable objectives and budgets?
Did you take the lead in the direction your site will take, or did the developer make the vital decisions? Remember, you know your business and what it takes to be successful; they know how to create the look.
Is your site search engine friendly? There is nothing worse than getting a potential client come to the site and then leave empty handed.
Have you been up-dating your site? It’s extremely important to keep the site fresh and newsworthy. Web consumers are always looking for new information and are prone to move off the site quickly if they feel are getting the same story over and over.
Does the site have a call to action? The site is your dialogue with your customer so you need to communicate clearly what you want them to do, such as, “buy now” - “save” - “free” or “don’t wait, act now. “
Does your site include testimonials from satisfied customers? This adds a point of trust to what you are selling and a real human element to the presentation. And if you don’t have a “tell a friend” link, don’t hesitate to add one. Like testimonials, word of mouth is an important marketing tool and the “tell a friend” link is a good way to accomplish this goal.
And lastly, you must know what the site is delivering. It’s absolutely imperative that you keep a close eye on the sites performance and to act accordingly if the goals you set are not met.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
The first thing you must do is to look at your site with critical eyes by addressing the key elements that lead to a successful and profitable presentation.
Have you set business goals, do you have a realistic target market and do you have quantifiable objectives and budgets?
Did you take the lead in the direction your site will take, or did the developer make the vital decisions? Remember, you know your business and what it takes to be successful; they know how to create the look.
Is your site search engine friendly? There is nothing worse than getting a potential client come to the site and then leave empty handed.
Have you been up-dating your site? It’s extremely important to keep the site fresh and newsworthy. Web consumers are always looking for new information and are prone to move off the site quickly if they feel are getting the same story over and over.
Does the site have a call to action? The site is your dialogue with your customer so you need to communicate clearly what you want them to do, such as, “buy now” - “save” - “free” or “don’t wait, act now. “
Does your site include testimonials from satisfied customers? This adds a point of trust to what you are selling and a real human element to the presentation. And if you don’t have a “tell a friend” link, don’t hesitate to add one. Like testimonials, word of mouth is an important marketing tool and the “tell a friend” link is a good way to accomplish this goal.
And lastly, you must know what the site is delivering. It’s absolutely imperative that you keep a close eye on the sites performance and to act accordingly if the goals you set are not met.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, April 28, 2009
Do I really need a written LLC Agreement?
For a variety of valid reasons, many SCORE clients make the decision to form a Limited Liability Company (LLC) for their new business. This company form offers the limited personal liability protection of a standard C or S corporation with the tax advantages of an S corporation without the excess costs and reporting burdens imposed by a C or S corporation. Mainly, these LLCs are sole owner companies.
Often, however, clients want to form an LLC with one or more associate(s). In many cases, the associate is a friend or a close relative such as a spouse. In all cases when clients want to form a multiple member LLC, SCORE counselors urge them strongly to enter in advance into a written Membership Agreement reviewed by an attorney competent in such matters. It should be noted that a Membership Agreement is a different document than an LLC Operating Agreement which is a required legal document by both the State of the LLC’s formation and the IRS. Although, the terms of a Membership Agreement could be incorporated into the Operating Agreement, it is preferable that it be a standalone agreement.
The purpose of the Membership Agreement is to be explicit as to the purpose of the business, the capital contribution and ownership percentage of each member and the allocation of management responsibilities: contracting, hiring and firing, purchasing, signing checks, entering into agreements, and other matters of mutual interest. The agreement can designate one or more of the members for each function and can also designate that, for some transactions more than one member’s agreement is required. Also, the Agreement details the dissolution of the business and the exit strategy from the LLC for the members in the event, for whatever reason one of them or their heirs/assigns wants to opt out. Clients are sometimes reluctant to enter into a Membership Agreement with a close friend or relative under the mistaken theory that it might be an insult, is culturally taboo or the members are very close and such an agreement is unnecessary. These are not valid reasons and there should always be a Membership Agreement irrespective of the personal or familial relationship between/among the members.
Contributors to this Ask SCORE column were Larry Pollack and Bill Litchman
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Often, however, clients want to form an LLC with one or more associate(s). In many cases, the associate is a friend or a close relative such as a spouse. In all cases when clients want to form a multiple member LLC, SCORE counselors urge them strongly to enter in advance into a written Membership Agreement reviewed by an attorney competent in such matters. It should be noted that a Membership Agreement is a different document than an LLC Operating Agreement which is a required legal document by both the State of the LLC’s formation and the IRS. Although, the terms of a Membership Agreement could be incorporated into the Operating Agreement, it is preferable that it be a standalone agreement.
The purpose of the Membership Agreement is to be explicit as to the purpose of the business, the capital contribution and ownership percentage of each member and the allocation of management responsibilities: contracting, hiring and firing, purchasing, signing checks, entering into agreements, and other matters of mutual interest. The agreement can designate one or more of the members for each function and can also designate that, for some transactions more than one member’s agreement is required. Also, the Agreement details the dissolution of the business and the exit strategy from the LLC for the members in the event, for whatever reason one of them or their heirs/assigns wants to opt out. Clients are sometimes reluctant to enter into a Membership Agreement with a close friend or relative under the mistaken theory that it might be an insult, is culturally taboo or the members are very close and such an agreement is unnecessary. These are not valid reasons and there should always be a Membership Agreement irrespective of the personal or familial relationship between/among the members.
Contributors to this Ask SCORE column were Larry Pollack and Bill Litchman
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, April 21, 2009
How do I start a home-based Internet business?
Home-Based Internet Businesses Still Require “Old-Fashioned” Business Fundamentals. Our chapter’s resident expert on home-based Internet businesses, Sasha Mason, shares her thoughts and suggestions with you concerning this subject.
The fundamentals of home-based internet business are no different from any other business. It requires due diligence, planning, and endless hours. You are wasting your time and money if you are hoping to create a website and then sit back while the customers click away.
As with any other business model, the starting point for you home-based Internet business must be a good business idea followed by due diligence to ensure its viability. Are there other websites doing what you want to do? If so, is there room for another one? How big is your market? Assuming you pass these hurdles, you should register a domain name. This is inexpensive, easy to do, and will ensure that no one else takes your chosen domain name.
Next, draft a business plan. Even a relatively simple business that requires no financing will benefit from a well thought-out plan. Try to use reasonable projections -- one common mistake with internet businesses is underestimating your costs as well as the volume of sales needed to turn a profit. Also think carefully about your marketing plan – do not expect to rely solely on internet search engines. How will you advertise and drive traffic to your site?
Finally, hire a web designer, but remember you get what you pay for. There are many “web designers” for whom this is a side job. It is worth paying more to hire a professional with whom you can have an ongoing relationship. You will also need to look for a webhosting plan. There are plenty of inexpensive hosting sites. It is important, however, to ensure that your host can increase your bandwith as your site grows.
Good luck and remember that you can contact SCORE for help along the way.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
The fundamentals of home-based internet business are no different from any other business. It requires due diligence, planning, and endless hours. You are wasting your time and money if you are hoping to create a website and then sit back while the customers click away.
As with any other business model, the starting point for you home-based Internet business must be a good business idea followed by due diligence to ensure its viability. Are there other websites doing what you want to do? If so, is there room for another one? How big is your market? Assuming you pass these hurdles, you should register a domain name. This is inexpensive, easy to do, and will ensure that no one else takes your chosen domain name.
Next, draft a business plan. Even a relatively simple business that requires no financing will benefit from a well thought-out plan. Try to use reasonable projections -- one common mistake with internet businesses is underestimating your costs as well as the volume of sales needed to turn a profit. Also think carefully about your marketing plan – do not expect to rely solely on internet search engines. How will you advertise and drive traffic to your site?
Finally, hire a web designer, but remember you get what you pay for. There are many “web designers” for whom this is a side job. It is worth paying more to hire a professional with whom you can have an ongoing relationship. You will also need to look for a webhosting plan. There are plenty of inexpensive hosting sites. It is important, however, to ensure that your host can increase your bandwith as your site grows.
Good luck and remember that you can contact SCORE for help along the way.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, April 7, 2009
Do I need a license for my business?
There are many types of licenses, both state and local as well as professional. Depending on what you do and where you plan to operate, your business may be required to have various state and/or municipal licenses, certificates or permits.
Regardless of the legal structure of your business, you should contact the Clerks of both the municipality and county in which the business is located to determine if there are any permits required for your business and to determine if there are any local regulations that apply to your business.
Occupations and business activities often require some form of registration, license, or certification by the State of New Jersey. The New Jersey License and Certification Guide, prepared by the Department of Business Advocate& Information in the New Jersey Commerce, Economic Growth and Tourism Commission, contains a listing of these requirements with the appropriate agency contact. A copy of the guide can be found on line at: http://www.state.nj.us/njbusiness/licenses. The Hotline number is (609) 777-2642 or toll free 800-533-0186.
If you are a new or existing business owner and need assistance with the regulatory and permitting process, or need additional information or assistance with licensing, registration, certification requirements, or compliance issues, you should contact the NJ Commerce Call Center at 1-86NJFIRST9. Businesses will be connected to professional call center agents who will quickly direct callers to the appropriate Commerce office or other state agency. Call center agents provide businesses with information concerning any business or tourism related issue.
Building Codes, Permits and Zoning – It is important to consider zoning regulations when choosing a site for your business. You may not be permitted to conduct business out of your home or engage in industrial activity in a retail district. Contact the business license office in the city or town in which the business is located.
Your SCORE counselor is ready to assist you, as well. Please call 609-393-0505 for our free counseling service.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Regardless of the legal structure of your business, you should contact the Clerks of both the municipality and county in which the business is located to determine if there are any permits required for your business and to determine if there are any local regulations that apply to your business.
Occupations and business activities often require some form of registration, license, or certification by the State of New Jersey. The New Jersey License and Certification Guide, prepared by the Department of Business Advocate& Information in the New Jersey Commerce, Economic Growth and Tourism Commission, contains a listing of these requirements with the appropriate agency contact. A copy of the guide can be found on line at: http://www.state.nj.us/njbusiness/licenses. The Hotline number is (609) 777-2642 or toll free 800-533-0186.
If you are a new or existing business owner and need assistance with the regulatory and permitting process, or need additional information or assistance with licensing, registration, certification requirements, or compliance issues, you should contact the NJ Commerce Call Center at 1-86NJFIRST9. Businesses will be connected to professional call center agents who will quickly direct callers to the appropriate Commerce office or other state agency. Call center agents provide businesses with information concerning any business or tourism related issue.
Building Codes, Permits and Zoning – It is important to consider zoning regulations when choosing a site for your business. You may not be permitted to conduct business out of your home or engage in industrial activity in a retail district. Contact the business license office in the city or town in which the business is located.
Your SCORE counselor is ready to assist you, as well. Please call 609-393-0505 for our free counseling service.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Saturday, April 4, 2009
Should I consider email marketing?
SCORE counselor and resident advertising and marketing guru, Alan Yarnoff shares his thoughts on email marketing and the impact it can have on your business.
In today’s difficult environment it is essential to maximize you’re your marketing effort in the most efficient manor possible. One excellent tactic to achieve this goal is the use of a strong email marketing program.
Email marketing in its broadest sense covers every email you send to acquire new customers or persuade existing customers to buy again. In addition, it will serve to encourage customer loyalty and enhance the customer relationship. It gives you the opportunity to continue a positive dialog with your customer base, and to reinforce your relationship with your clients.
Notably, email marketing is a relatively low cost way to reach your target audience compared to traditional approaches like direct mail, newspapers, and radio and television. It allows you to target your message to your specific market segment while delivering valuable content material to the recipient. And, most importantly, it usually delelivers a high ROI (Return on Investment).
It’s a fact email marketing works. Why, because the national use of emails is growing. Statistics confirm that 91% of Internet users read and send emails every day. Secondly, the important senior market of baby boomers with its expendable income is joining in at a very high rate. In total, over 147million people use email every day.
Once you make the decision to use email marketing you need a plan. First you must decide what type to send, to whom, and when. You need to build an email list of permission based recipients; you most craft your message so it will be read, and you must plan on reviewing results and adjust when necessary. Do not make the same mistake twice.
One last but very major point is that you most receive permission before sending commercial emails. Email marketing only works if they are sent to permission based participants, other wise they will end up in the spam file.
Consider the following reasons why email marketing can help your business:
§ The low cost per order vs. any other promotional tactic.
§ Best way to drive people to your web site.
§ Email offers and promotions generate action.
§ Greater sales.
§ More downloads.
§ Significant number of inquiries and registrations.
§ High ROI (Return on Investment.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
In today’s difficult environment it is essential to maximize you’re your marketing effort in the most efficient manor possible. One excellent tactic to achieve this goal is the use of a strong email marketing program.
Email marketing in its broadest sense covers every email you send to acquire new customers or persuade existing customers to buy again. In addition, it will serve to encourage customer loyalty and enhance the customer relationship. It gives you the opportunity to continue a positive dialog with your customer base, and to reinforce your relationship with your clients.
Notably, email marketing is a relatively low cost way to reach your target audience compared to traditional approaches like direct mail, newspapers, and radio and television. It allows you to target your message to your specific market segment while delivering valuable content material to the recipient. And, most importantly, it usually delelivers a high ROI (Return on Investment).
It’s a fact email marketing works. Why, because the national use of emails is growing. Statistics confirm that 91% of Internet users read and send emails every day. Secondly, the important senior market of baby boomers with its expendable income is joining in at a very high rate. In total, over 147million people use email every day.
Once you make the decision to use email marketing you need a plan. First you must decide what type to send, to whom, and when. You need to build an email list of permission based recipients; you most craft your message so it will be read, and you must plan on reviewing results and adjust when necessary. Do not make the same mistake twice.
One last but very major point is that you most receive permission before sending commercial emails. Email marketing only works if they are sent to permission based participants, other wise they will end up in the spam file.
Consider the following reasons why email marketing can help your business:
§ The low cost per order vs. any other promotional tactic.
§ Best way to drive people to your web site.
§ Email offers and promotions generate action.
§ Greater sales.
§ More downloads.
§ Significant number of inquiries and registrations.
§ High ROI (Return on Investment.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
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