Computer technology changes so quickly, it almost seems like today’s state-of-the-art today might well be obsolete. Though few small business owners can afford to be on the “bleeding edge” of PC technology, they also don’t want to compromise their employees’ productivity with seemingly outmoded machines. As a result, they find themselves making periodic purchases of new hardware while the old machines pile up in a closet or corner.
Don’t consign those old PCs to the scrap heap just yet. There may be several some ways you to coax more productivity out of what you already own, saving your business some money and easing the burden on the local landfill.
PCs you own may have plenty of life left in them. But to get them in top shape can require a little attention. The longer a computer is used, the messier its hard drive can get. Viruses, outdated software, fragmented storage space and general clutter can turn a good piece of equipment into a real slowpoke.
To get your slightly worn PCs and laptops back in action, follow these tune-up tips.
Remove old programs, temporary files and the Web browser’s cache, cookies and history. Empty the trash folder, and while you’re at it, clean the keyboard. Use your disk utilities to scan the hard drive for errors, fix any corrupt sectors and remove invalid registry entries or broken shortcuts.
Also defragment the hard drive. A hard drive is composed of many sections, known as sectors. As files are saved, they are often divided into parts that are scattered across the drive. This slows down the system because the file must be retrieved from different locations. Defragmenting brings the pieces back together again.
Scan the computer for viruses and update virus definitions. There are several excellent companies that offer a full range of antivirus, anti-spam and problem solving PC solutions.
Even with your best efforts, long-used computers may still suffer breakdowns—often when you need them the most. That’s why it’s also important to routinely back-up data on to a separate storage medium (e.g., CD, Zip drives, etc.) and keep it in a secure area. That will prevent your business from being crippled from a crashed PC.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Wednesday, September 9, 2009
Tuesday, September 1, 2009
Is there a market for my new business idea?
If you’re thinking about starting a business, most likely you have dreamed of one that revolves around your interests. But what does the market need or want? Are you noticing trends in what people are buying, or how and where they are buying those goods?
Determining the marketability of your start-up business is typically done in the context of creating a business plan and performing an analysis of your competition. It is a multifaceted exercise, requiring research you may not have done so far. Here are some areas of inquiry to help you explore marketability.
Consider whether the business offers a new solution to an old problem or complements an emerging trend. The untapped markets that are profitable to tap into are few and far between. They’re also riskier.
Have a clear picture of your target market. These are the people and other companies that are likely to want or need what your business has to offer. “All restaurants” is a broader market than “fast food joints.” “All restaurant patrons” is a broader market than “senior citizens who eat out.”
Understand the benefits that your product or service offers. Can you quantify them? (In other words, how much money might a customer save by buying from your company instead of someone else?) Knowing these benefits will help you generate ideas for future promotions.
Examine industry data that can confirm whether there is a sustained, preferably growing demand for your product or service. (Keep in mind this data is sales driven, not marketing driven.) Have you tapped all likely sources of industry data, such as trade associations and government agencies?
Identify the percentage of market share that it is realistic for you to capture. The more competition you have, the lower the margins will be.
Consider how realistic your pricing is. How can you present your product or service to potential customers so that it appears to be a good value, while still affording you a healthy profit?
You may find that you don’t like the answers you’re getting to your market research. But if you’re committed to creating a viable business that can provide you with a good income, the sooner you know the answers to these questions the faster you can make a course correction to succeed.
Richard Strug
Greater Princeton Area SCORE
Serving Mercer and Middlesex Counties
Determining the marketability of your start-up business is typically done in the context of creating a business plan and performing an analysis of your competition. It is a multifaceted exercise, requiring research you may not have done so far. Here are some areas of inquiry to help you explore marketability.
Consider whether the business offers a new solution to an old problem or complements an emerging trend. The untapped markets that are profitable to tap into are few and far between. They’re also riskier.
Have a clear picture of your target market. These are the people and other companies that are likely to want or need what your business has to offer. “All restaurants” is a broader market than “fast food joints.” “All restaurant patrons” is a broader market than “senior citizens who eat out.”
Understand the benefits that your product or service offers. Can you quantify them? (In other words, how much money might a customer save by buying from your company instead of someone else?) Knowing these benefits will help you generate ideas for future promotions.
Examine industry data that can confirm whether there is a sustained, preferably growing demand for your product or service. (Keep in mind this data is sales driven, not marketing driven.) Have you tapped all likely sources of industry data, such as trade associations and government agencies?
Identify the percentage of market share that it is realistic for you to capture. The more competition you have, the lower the margins will be.
Consider how realistic your pricing is. How can you present your product or service to potential customers so that it appears to be a good value, while still affording you a healthy profit?
You may find that you don’t like the answers you’re getting to your market research. But if you’re committed to creating a viable business that can provide you with a good income, the sooner you know the answers to these questions the faster you can make a course correction to succeed.
Richard Strug
Greater Princeton Area SCORE
Serving Mercer and Middlesex Counties
Tuesday, August 25, 2009
Why is branding important?
In a world of short attention spans, a great product or first-class service is rarely enough to sustain a lasting impression among your customers. A sound branding strategy will help ensure that customers remember your business as the “go-to” source for their needs, especially in today’s competitive marketplace.
A branding strategy includes your company’s name, logo, symbols, Web site, and other tools that define your small business in the minds of consumers and, perhaps more importantly, differentiates it from others providing the same products or services in your target market. According to marketing experts, branding and marketing go hand-in-hand.
Almost anything can be branded, including you. But branding is complex and involves the customer’s total experience with you, your product or your service. The most effective branding combines both online and off-line elements. The Web offers tremendous opportunities for promoting your brand, through low-cost search engine ads or interactive features on your Web site.
Keep in mind that the best brands tend to tap emotions and appeal to a person’s natural need for involvement. Be original in identifying your brand identity—the thing that truly sets your small business apart. Everybody touts quality and service, for example, so look for something that’s really different. If you are having trouble pinpointing a branding message, try asking your customers what they need from you the most. Then base your brand on that.
Your brand should also last a long time, so avoid elements or catch phrases linked to trends likely to disappear or become outdated. Simplicity is also a virtue in your branding message. Buyers are overwhelmed by excess information. Too much information confuses your brand message.
A number of resources can help you understand and craft a sound branding strategy, including The 22 Immutable Laws of Branding. Written by market guru Al Ries and daughter Laura, this smart and accessible book includes 11 Immutable Laws of Internet Branding. Peter Montoya’s The Brand Called You offers ideas and advice on how entrepreneurs can promote themselves, personally, as a brand. Australian branding expert Martin Lindstrom also offers an extensive library of branding articles on his Web site, http://www.martinlindstrom.com/
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
A branding strategy includes your company’s name, logo, symbols, Web site, and other tools that define your small business in the minds of consumers and, perhaps more importantly, differentiates it from others providing the same products or services in your target market. According to marketing experts, branding and marketing go hand-in-hand.
Almost anything can be branded, including you. But branding is complex and involves the customer’s total experience with you, your product or your service. The most effective branding combines both online and off-line elements. The Web offers tremendous opportunities for promoting your brand, through low-cost search engine ads or interactive features on your Web site.
Keep in mind that the best brands tend to tap emotions and appeal to a person’s natural need for involvement. Be original in identifying your brand identity—the thing that truly sets your small business apart. Everybody touts quality and service, for example, so look for something that’s really different. If you are having trouble pinpointing a branding message, try asking your customers what they need from you the most. Then base your brand on that.
Your brand should also last a long time, so avoid elements or catch phrases linked to trends likely to disappear or become outdated. Simplicity is also a virtue in your branding message. Buyers are overwhelmed by excess information. Too much information confuses your brand message.
A number of resources can help you understand and craft a sound branding strategy, including The 22 Immutable Laws of Branding. Written by market guru Al Ries and daughter Laura, this smart and accessible book includes 11 Immutable Laws of Internet Branding. Peter Montoya’s The Brand Called You offers ideas and advice on how entrepreneurs can promote themselves, personally, as a brand. Australian branding expert Martin Lindstrom also offers an extensive library of branding articles on his Web site, http://www.martinlindstrom.com/
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
What's the importance of a startup timeline?
Al MacIlroy, SCORE Counselor, believes that the time factor in starting a company is ignored by many clients. Here are several suggestions to consider:
The vast majority of people come to SCORE with an idea that excites them and that they want to turn it into a business. Typical client questions are about writing a business plan, forming an LLC or other entity, and financing. What they fail to consider is how much time all this going to take. Am I a parent with small children? If I have a full-time job, am I ready to give up nights, weekends and vacations to do the required work? Am I driven to make my dream come to true?
Let’s take the business plan outline as an example: Executive Summary, Company Description, Products and Services, Marketing and Operational Plan, Management and Organization. The list goes on. As important as it is to focus on these areas, it is equally important to create a timeline to start and complete each section to determine the total time needed.
There are two parts of the timeline. The first is how much “actual time” it will take to write the plan section or the task at hand, e.g. filling out the paperwork to form a business entity. The second is a “running timeline,” or the overall timeframe, for these tasks and the rest of life’s demands for time.
The timeline gives a view of reality. If completion dates are constantly missed, there should be a review of why. Am I being too optimistic? Do I have other higher priorities in my life?
With an electronic organizer: Palm, iPhone, Blackberry, etc., all aspects of what needs to be accomplished is easily tracked on a calendar. For those not into technology, a simple calendar can be used. The challenge to the entrepreneur is to be disciplined in creating the timeline and being realistic about analyzing what is happening with time and the meeting, beating, or slipping from the planned timeline. It is a must, especially in the early days.
The same holds true for the monetary cost of starting a business along with the
“time cost.” The financial timeline and cash reality will show up in the Sources & Uses part of the business plan.
The challenge to all is to create and manage time and learn from what is happening based on the timeline. It will be a reality check for all new and ongoing businesses. The sooner one is adopted by the business owner the better.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
The vast majority of people come to SCORE with an idea that excites them and that they want to turn it into a business. Typical client questions are about writing a business plan, forming an LLC or other entity, and financing. What they fail to consider is how much time all this going to take. Am I a parent with small children? If I have a full-time job, am I ready to give up nights, weekends and vacations to do the required work? Am I driven to make my dream come to true?
Let’s take the business plan outline as an example: Executive Summary, Company Description, Products and Services, Marketing and Operational Plan, Management and Organization. The list goes on. As important as it is to focus on these areas, it is equally important to create a timeline to start and complete each section to determine the total time needed.
There are two parts of the timeline. The first is how much “actual time” it will take to write the plan section or the task at hand, e.g. filling out the paperwork to form a business entity. The second is a “running timeline,” or the overall timeframe, for these tasks and the rest of life’s demands for time.
The timeline gives a view of reality. If completion dates are constantly missed, there should be a review of why. Am I being too optimistic? Do I have other higher priorities in my life?
With an electronic organizer: Palm, iPhone, Blackberry, etc., all aspects of what needs to be accomplished is easily tracked on a calendar. For those not into technology, a simple calendar can be used. The challenge to the entrepreneur is to be disciplined in creating the timeline and being realistic about analyzing what is happening with time and the meeting, beating, or slipping from the planned timeline. It is a must, especially in the early days.
The same holds true for the monetary cost of starting a business along with the
“time cost.” The financial timeline and cash reality will show up in the Sources & Uses part of the business plan.
The challenge to all is to create and manage time and learn from what is happening based on the timeline. It will be a reality check for all new and ongoing businesses. The sooner one is adopted by the business owner the better.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
How can my business weather these tough economic times?
Broad economic slowdowns can often trickle down to small businesses, including those in relatively stable industries or geographic locations. Individuals tend to cut back on discretionary spending while corporations curb routine activities, delay major purchases, and shelve new initiatives.
For many small businesses with limited resources, these and other factors often combine to pressure bottom lines past the breaking point, creating a domino effect of other dilemmas such as a credit crunch or layoffs.
A downturn doesn’t have to spell disaster for your small business, however. Good financial management practices will help you weather even the worst of economic times, and be ready to capitalize on new opportunities will inevitably come with good times return.
Begin with the basics. Even when times are terrific, no small business can survive without good recordkeeping, budgeting, cash flow monitoring, and credit management.
Consult your bank. Lenders can tap their vast experience in economic cycles to advise you on issues specific to your business and industry. Depending on your projected long-term expenses, consider arranging a line of credit in case a cash flow gap occurs.
Be on good terms with your creditors. Falling behind on payments is never the answer, even if it’s “just this once.” Creditors will be more amenable to renegotiating terms to small businesses they consider to be conscientious and reliable.
Watch your receivables. By the same token, you need to stay on top of any outstanding debts to your company, particularly problem accounts. Be firm, but also willing to negotiate where appropriate.
Scrutinize your spending. Rather than arbitrarily slashing your budget, strive to spend only on those things that have a justifiable positive effect on your business. That will make it easier to redirect money to areas that enhance business performance.
Step up your review of financials. Assessing your reports weekly or biweekly rather than monthly will put you in a better position to make informed decisions. Similarly, a monthly or quarterly review your business plan enables you to adjust your strategy and direction to changing market conditions.
Keep marketing in the mix. Look for cost-effective ways to keep your company visible to current customers and potential new markets. They may be ready to restart their spending long before the headlines proclaim an end to the economic crisis.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
For many small businesses with limited resources, these and other factors often combine to pressure bottom lines past the breaking point, creating a domino effect of other dilemmas such as a credit crunch or layoffs.
A downturn doesn’t have to spell disaster for your small business, however. Good financial management practices will help you weather even the worst of economic times, and be ready to capitalize on new opportunities will inevitably come with good times return.
Begin with the basics. Even when times are terrific, no small business can survive without good recordkeeping, budgeting, cash flow monitoring, and credit management.
Consult your bank. Lenders can tap their vast experience in economic cycles to advise you on issues specific to your business and industry. Depending on your projected long-term expenses, consider arranging a line of credit in case a cash flow gap occurs.
Be on good terms with your creditors. Falling behind on payments is never the answer, even if it’s “just this once.” Creditors will be more amenable to renegotiating terms to small businesses they consider to be conscientious and reliable.
Watch your receivables. By the same token, you need to stay on top of any outstanding debts to your company, particularly problem accounts. Be firm, but also willing to negotiate where appropriate.
Scrutinize your spending. Rather than arbitrarily slashing your budget, strive to spend only on those things that have a justifiable positive effect on your business. That will make it easier to redirect money to areas that enhance business performance.
Step up your review of financials. Assessing your reports weekly or biweekly rather than monthly will put you in a better position to make informed decisions. Similarly, a monthly or quarterly review your business plan enables you to adjust your strategy and direction to changing market conditions.
Keep marketing in the mix. Look for cost-effective ways to keep your company visible to current customers and potential new markets. They may be ready to restart their spending long before the headlines proclaim an end to the economic crisis.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Tuesday, August 18, 2009
Should I buy a franchise?
Franchising is a popular way for entrepreneurs to fast-forward their small business ownership ambitions. Franchisors provide a tested and proven base structure of the business, freeing their franchisees from having to invent the operational wheel. Franchisors also provide ongoing guidance, innovations, and tested marketing materials. And new opportunities emerge on an almost daily basis.
But even with its many attractive advantages, franchising has many risks and challenges that need to be considered. The biggest mistake is believing that franchises never fail. Although the failure rate is much lower than that of independent businesses, the franchisee still must have the necessary commitment and drive to make the franchise successful. Seek legal counsel with expertise in dealing with franchisors to review all documents before making your final decision.
Purchasing a franchise also requires a substantial financial commitment, one that may require applying for a small business loan. Franchise owners also have no special legal protection after they purchase the business. The Uniform Franchise Operating Circular (UFOC) protects the buyer before the sale, but when it’s signed, you are legally required to abide by its rules and requirements.
That’s why it’s important for prospective franchise owners to thoroughly research their franchising opportunity. Don’t rely solely on the Internet. Literally “walk the street” and ask people if this kind of business is needed in the neighborhood. Study the competition, what are they doing, and how can you do it better.
In researching franchisors you plan to work with, make arrangements to visit other locations and examine their processes. Ask the owners if they would buy the franchise again, if the franchisor is providing enough support, if the experience is living up to their expectations, and if they are meeting their business goals. These relationships will also be helpful should you decide to move forward with the franchise purchase. You can develop a network of friends that have the same base knowledge and abilities, and can serve as a source of help when you have questions or good ideas to share.
And as with any other type of small business, you’ll need a thorough, well-crafted business plan to map your franchise’s growth strategy. Preparing a business plan will help you determine where you want to go, and the best way to get there. You’ll also be better able to set experience and performance milestones for steps such as purchasing additional franchises.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
But even with its many attractive advantages, franchising has many risks and challenges that need to be considered. The biggest mistake is believing that franchises never fail. Although the failure rate is much lower than that of independent businesses, the franchisee still must have the necessary commitment and drive to make the franchise successful. Seek legal counsel with expertise in dealing with franchisors to review all documents before making your final decision.
Purchasing a franchise also requires a substantial financial commitment, one that may require applying for a small business loan. Franchise owners also have no special legal protection after they purchase the business. The Uniform Franchise Operating Circular (UFOC) protects the buyer before the sale, but when it’s signed, you are legally required to abide by its rules and requirements.
That’s why it’s important for prospective franchise owners to thoroughly research their franchising opportunity. Don’t rely solely on the Internet. Literally “walk the street” and ask people if this kind of business is needed in the neighborhood. Study the competition, what are they doing, and how can you do it better.
In researching franchisors you plan to work with, make arrangements to visit other locations and examine their processes. Ask the owners if they would buy the franchise again, if the franchisor is providing enough support, if the experience is living up to their expectations, and if they are meeting their business goals. These relationships will also be helpful should you decide to move forward with the franchise purchase. You can develop a network of friends that have the same base knowledge and abilities, and can serve as a source of help when you have questions or good ideas to share.
And as with any other type of small business, you’ll need a thorough, well-crafted business plan to map your franchise’s growth strategy. Preparing a business plan will help you determine where you want to go, and the best way to get there. You’ll also be better able to set experience and performance milestones for steps such as purchasing additional franchises.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
Wednesday, August 5, 2009
How do I turn my small business dream into reality?
If you are one of thousands of U.S. workers who have been affected by the wide economic swings of the past few years, this may be a good time to consider starting that small business you have always dreamed of.
The first steps for creating a successful business are planning, research and more planning. Ask yourself, “Can I be my own boss?” and try to objectively assess the pros and cons. Operating a business is different from working for one even if you are an experienced manager. Every responsibility is yours: generating new work, paying taxes, locating office space, buying paper clips, etc., etc., etc. falls on your shoulders. That is in addition to actually doing the work itself.
As part of your research and planning, take the following actions:
There’s no substitute for experience, so talk to other small business owners who are in the same line of business as you aspire to enter. Find out how they got started, what mistakes they made, and what they would do differently. These discussions may also reveal opportunities to team with existing businesses for special projects, workload overflows or complementary services.
Put yourself in the position of your potential customers. What impresses you about the businesses you patronize? Those little things, such as home delivery or online shopping, consume resources. Consider the time, cost and energy required to support value-added services.
Tell friends and colleagues of your plans. Even if they are not prospective customers, they may volunteer other contacts who may be interested in using your services and offer other useful perspectives.
Make planning an ongoing effort. Update your business plan as you collect useful intelligence. In today’s fast-paced business climate, your entrepreneurial plans may have to take a back seat to other developments in your current work life, such as a major new project or a change in your job responsibilities.
Put your family’s financial security first. Depending on your current situation, remember the adage “a bird in the hand is worth two in the bush.” If a good job opportunity arises, it may be best to take it and put your entrepreneurship dreams aside for a while. But don’t abandon them completely. Many successful small businesses have started as part-time ventures, enabling their owners to eventually shed the worries of working for someone else and truly be their own bosses.
There is no substitute for experience when it comes to planning and opening a small business. A great place to find this valuable resource is your local chapter of SCORE “Counselors to America’s Small Business.” There you’ll meet knowledgeable counselors ready to help you with every aspect of realizing your dream. SCORE’s small business counseling is free, and all discussions are confidential.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
The first steps for creating a successful business are planning, research and more planning. Ask yourself, “Can I be my own boss?” and try to objectively assess the pros and cons. Operating a business is different from working for one even if you are an experienced manager. Every responsibility is yours: generating new work, paying taxes, locating office space, buying paper clips, etc., etc., etc. falls on your shoulders. That is in addition to actually doing the work itself.
As part of your research and planning, take the following actions:
There’s no substitute for experience, so talk to other small business owners who are in the same line of business as you aspire to enter. Find out how they got started, what mistakes they made, and what they would do differently. These discussions may also reveal opportunities to team with existing businesses for special projects, workload overflows or complementary services.
Put yourself in the position of your potential customers. What impresses you about the businesses you patronize? Those little things, such as home delivery or online shopping, consume resources. Consider the time, cost and energy required to support value-added services.
Tell friends and colleagues of your plans. Even if they are not prospective customers, they may volunteer other contacts who may be interested in using your services and offer other useful perspectives.
Make planning an ongoing effort. Update your business plan as you collect useful intelligence. In today’s fast-paced business climate, your entrepreneurial plans may have to take a back seat to other developments in your current work life, such as a major new project or a change in your job responsibilities.
Put your family’s financial security first. Depending on your current situation, remember the adage “a bird in the hand is worth two in the bush.” If a good job opportunity arises, it may be best to take it and put your entrepreneurship dreams aside for a while. But don’t abandon them completely. Many successful small businesses have started as part-time ventures, enabling their owners to eventually shed the worries of working for someone else and truly be their own bosses.
There is no substitute for experience when it comes to planning and opening a small business. A great place to find this valuable resource is your local chapter of SCORE “Counselors to America’s Small Business.” There you’ll meet knowledgeable counselors ready to help you with every aspect of realizing your dream. SCORE’s small business counseling is free, and all discussions are confidential.
Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties
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