Small Business Advice

7 Common Mistakes in Social Media Marketing

2010-07-29T17:41:00Z

Social media marketing is a great promotional tool, but be careful to avoid these common blunders:

1. Diving in without a plan. Before you begin your marketing campaign, think through what you are trying to achieve and which websites and marketing methods will be most likely to reach your target audiences. A social media marketing plan can include social networking, microblogging, online forums, virtual reader communities, expert sites, media sharing, interactive blogging, and more.

2. Focusing solely on attracting customers. Social marketing is a great place to meet potential customers and stay in touch with existing ones. But you may find it even more valuable for meeting and developing relationships with others in your field and influencers who can help spread the word about you.

3. Trying to do too many things at once. Prioritize your marketing plan and implement one thing at a time. Don't try to be active on too many social networks and websites. Select a couple of sites as your primary networks, then develop profiles on several other sites that you will visit occasionally.

4. Spending too much time on social marketing while neglecting other tasks. It's easy to get sucked into social sites and spend way too much time there. It's best to set aside a specific amount of time each day for social marketing. If you budget an hour a day, you might spend 20 minutes on social networking at mid-day, spend 20 minutes in the evening on other social sites, and do several Twitter sessions during the day.

5. Sending friend invitations with no introduction. To increase the chance of acceptance and make a good first impression, always introduce yourself and say why you want to befriend the other person. Mention what you do, what you have in common with the other person, how you heard about them, etc.

6. Trying to "sell" on social sites. It's okay to subtly promote yourself and your products as long as you do it sparingly. You don't want to get a reputation as someone who just sends out sales pitches all the time. Add value to the community by sharing knowledge, ideas, and resources.

7. Forgetting the "social" part of social networking. Remember to be courteous and to thank anyone who answers a question or does you a favor. Don't forget to inject some personality into your communications and make some personal posts. Share good news or ask for advice. Mention your hobbies, travels, kids, or pets, and link to a photo using services like Flickr or Twitpic.

If you keep these tips in mind, you'll find that social media sites are great tools for building brand recognition and expert status, networking with peers and potential customers, and driving traffic to your website—all steps toward making sales.

Excerpted from Get Connected: Build Your Business With Online Networking, by Dana Lynn Smith, pictured above. www.GetConnectedBiz.com

And finally...Celebrate and Enjoy Your Success!

2010-06-07T13:00:00Z

While starting, building and running a business can be challenging and stressful, be sure to take note of the many achievements you make along the way. Set goals and milestones to reach, and recognize those who helped you get there when you achieve them. From incorporating to designing your products and services to closing the first sale to collecting the first check to crossing a $1 million in sales, mark every step of the way and celebrate your accomplishments. Don’t lose sight of your focus because staying on track will enable you to keep growing and accomplishing even more. Enjoy.

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Get Started!

2010-06-03T13:00:00Z

The best way to build a successful business is to actually start one (or buy one). We can talk, plan and ponder a small business all day long, but make a selection, plan accordingly and GO! The ones who do are the ones who succeed. Don’t just have ideas, but make sure you carry them out and make them a reality!

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Find Your Market; Find Your Customers

2010-05-31T13:00:00Z

Over the years, we have tested and observed a ton of entrepreneurs who had excellent business ideas and value propositions. But many were missing the bull’s-eye. Often, we coached these people to find their market, find the specific customers who were interested in their offering and then find out where those customers were (how to reach them). Then, the key is to figure out how to compel your target customers to make a purchase from You. After doing the research and finding a good group of target customers, you’ll want to provide them with a working model. By giving your potential consumers a look and try at using your product, you’ll be able to see if it would be well-received if you actually decided to produce it.

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Focus on the 1,000 Small Items and the Big Prize Will Take Care of Itself

2010-05-27T13:00:00Z

A big, successful business, even Exxon, Dow Chemical, Microsoft or IBM started with a single idea and a few people. They got to where they are today because they handled the little things – the steppingstones that led to the next phase in their development. We have found that many entrepreneurs focus on the big prize: crossing $1 million in sales or making $5 million. That may happen for you. But, set your foundation and make every step along the way work for You. Don’t make money and profit your only focus. Those entrepreneurs who succeed are the ones who know how to get things done and execute their ideas. By staying organized and reaching incremental milestones and goals along the way, you’ll realize the big prize in time.

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Follow the Key Laws, Fiduciary Duties and Rules!!!

2010-05-24T13:00:00Z

a.    There are other rules regarding employment taxes and Federal Unemployment Insurance, Social Security and Medicare Withholdings, so be sure to consult your professional advisors. Small Business Advisors can assist you with this important process and they should be logged in your books accurately; for more information, click here: http://www.SmallBusinessAdvice.com/bookkeeping.htm

b.    Obligation to Pay (Remit) Sales Tax. When you (your business) are required to collect and remit Sales Tax, the Government views this as a fiduciary responsibility and failure to remit (pay the tax to the proper Governmental authority) is a personal obligation of the business owners, even if your business is incorporated. Tax evasion is NOT forgiven, even in bankruptcy.

c.    Payroll Taxes. If your business has employees, then payroll taxes, including withholding tax, Social Security (FICA) and Medicare, must be withheld from the employee’s paycheck. Taxes withheld are deemed a fiduciary responsibility and a failure to remit taxes due is the owners’ personal obligation not forgiven in Bankruptcy. Keeping your financial statements clean and accurate with the help of a professional will help you ensure that you meet this requirement.

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Consult Your Legal Advisor and Local Government to Discover Other Laws, Rules and Requirements You Must Follow/Meet

2010-05-20T13:00:00Z

Today, compliance is more and more challenging than ever before and penalties for noncompliance can be steep. Given the latest events in our economy, the government is going to become more and more vigilant and consumers and investors are going to want to be able to see the operations of your company in order to make sure they are clean.

a.    If your business is a partnership or sole proprietorship there are usually filing requirements in the office of the County clerk where you live or operate your business.

b.    Sales Tax. Review your State’s regulations pertaining to Sales Tax. If your product or service is subject to sales tax, you will be required to bill, collect and remit sales tax for your local or State Government. Be sure to file with the appropriate State Sales Tax Department for a Sales Tax number (and resale permit). Small Business Advisors offers this service as part of its premium Bookkeeping Service. For more information, click here: www.SmallBusinessAdvice.com/bookkeeping.htm.

c.    Licenses and Permits. Get all the required Licenses and Permits. Red tape or not, today more and more businesses are regulated and State and local Governments require the owners to obtain and maintain a set of permits and licenses.

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Master Key Operating and Financial Ratios that Drive Your Business

2010-05-17T13:00:00Z

Small Business Advisor’s premier bookkeeping service includes a wide array of financial reports and ratios to help you analyze and manage your business. Learn the formula for operating your company. The typical formula is gross profit (gross profit equals sales revenue minus cost of goods sold) is 50% for retailers; 33% for service companies; and 66% for restaurants. The typical target net profit before taxes should be 15%; although this number can vary: higher for Internet based businesses that sell digital content (eBooks; downloadable music like iTunes, etc.; and memberships; potentially as high as 92-94%) and lower for distribution businesses (often 5 to 10%). There are various rations that will tell you whether you are managing your company effectively. By possessing information related to your financial state, which can be obtained from the books we can help you keep, you can calculate and rate your performance on all different levels. These ratios will help you size yourself up compared to your competition, and can also show you how your business is doing compared to previous periods. To learn more, click here: http://www.SmallBusinessAdvice.com/bookkeeping.htm

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If You Sell Goods, Purchase or Produce an Adequate Amount of Inventory but Not Too Much

2010-05-13T13:00:00Z

Typically, vendors and suppliers offer discounts on bulk and volume purchases. Often, as a start up, new or growing business, you’ll be better served by paying more per unit but carrying less inventory. You can always reorder. Whenever possible, pre-sell your goods before you commit to make a purchase; or commit to purchase a small quantity and upsize your order if you land more purchase orders. This is something you should always do. You wouldn’t want to get stuck like some of our past clients with an extreme amount of inventory and no one to buy it. If You Offer Services Hire Only a Handful of Key/Necessary Employees and Use Freelancers and Specialty Consultants to Round Out Your Team. This practice will help you maintain your flexibility and increase your profitability. It’s always beneficial to keep new ideas flowing from fresh minds and faces. Human capital is valuable but also expensive so make sure you hire the best and you will only need a few. You can always add costs later on when you achieve critical mass.

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Don’t Waste Money / Plan to Spend and Expend Your Dollars on Necessities Only

2010-05-10T13:00:00Z

This statement is probably obvious to you, but recently we landed a new client who left a major Wall Street firm; at his former company, he had a lavish office and plenty of resources at hand. On this own, he had to adjust to a limited budget. Treat yourself well but invest your precious capital wisely. Make sure you create a budget that allots enough funds for necessities first. If there is extra cash left over after making necessary expenses, don’t spend it at first. During the first few months and often through the first two years, you should be saving up extra funds and trying not to spend so that you will have a pool which you can use for expansion later on. Purchase only what you need to operate the business and provide material and supplies you actually need.

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Build a Cash Warehouse to Cover Your Expenses for One to Two Years

2010-05-06T13:00:00Z

Typically, it takes two years for a business to stabilize and generate steady cash flow. To give yourself the best chance of success, build up a savings fund to cover your living expenses and your business operating expenses (accountants and other financial professionals typically call this “working capital”). You need to ensure that you will be able to afford owning your assets while having enough to pay back the money you owe, or your liabilities. We have worked with a number of clients over the years who had to throw in the towel because they ran out of money; unfortunately they were very close to the point of success when they abandoned ship. Plan ahead so this doesn’t happen to you. Give yourself plenty of breathing room and excess funds so you’re never stuck in a bind.

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Prepare a Business Plan

2010-05-03T13:00:00Z

A business plan, even a brief roadmap, helps you get organized and gives you a plan of action. In short, a solid business plan helps you organize yourself and your team and allocate your resources wisely. In it, you will define your company’s mission and purpose, and you will be able to identify and set different goals for your team. You will be able to budget your funds and allocate them to different costs and end up profiting from this organization in the future because you can use your business plan to attract capital, vendors and suppliers and employees. To get started on your business plan, click here: http://www.SmallBusinessAdvice.com/business_plan.htm

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Hire Top Professionals

2010-04-30T13:00:00Z

A terrific lawyer, accountant, tax adviser and other relevant professionals can really help you multiply your business 20-fold. Over the years, we have observed entrepreneurs try to save a few dollars by not hiring professionals (do-it-yourself) or by hiring the budget (low-cost) provider. As they say, this is pennywise, pound foolish. You definitely want to invest where it matters, and your books definitely matter. Especially in today’s economy where so much goes under the radar, making your accounting transparent and having it done by an experienced professional is the best way to go. Small Business Advisors provides a wide variety of services including our premier bookkeeping service. To learn more, click here: http://www.SmallBusinessAdvice.com/bookkeeping.htm

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Develop Your Own Opinions and Insights, Using Information and Inputs from Other Industries and Experts OUTSIDE Your Field

2010-04-26T13:00:00Z

This is equally important as advice from #29. Often, outsiders and newcomers bring the best, freshest and most valuable insights that can put more money in your pockets. The best thing you can do is listen, so make sure that whenever someone has something to share, your ears are perked. In addition to listening to pros and other members of the industry in which you’re involved, you should also do your own homework and as much research as you can. You want to gain a great deal of insight into your own company and others, even ones that do not affect your business directly. Knowledge is power.

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Be Skeptical

2010-04-22T13:00:00Z

Notwithstanding advice from previous blog entry, form your own opinions and double-check information. Always do your homework and never make assumptions. You always have to be mindful of the source of your information…are they credible?

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Join the Major Trade Associations in Your Space and Become an Active Member and Then a Leader!

2010-04-19T13:00:00Z

By becoming a member of different trade associations in your industry, you’ll build a network of inside contacts and gain knowledge and training from others who have already succeeded in your chosen space (or at least allege they have succeeded…). In addition to becoming a member, by offering to help plan different events and organize the group those higher up will look positively upon you and be more likely to volunteer to help you network in exchange.

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Develop the Needed Experience to Become a Supreme Success in Your Chosen Space

2010-04-15T13:00:00Z

Learn everything you can about every aspect of your business and build up real world insight and experience. You should also learn as much as you can about your competitors and closely related businesses. This will help you better create and seize opportunities, avoid pitfalls and make better and more informed decisions to become a more successful entrepreneur. Depending on where you are in your small business career, you could gain valuable experience by working for a competitor (beware of “covenants not to compete” and “noncompete agreements” that prevent you from opening a business in the same field as your [former] employer); although there’s no specific time requirement, we have found that it takes approximately 2 years of relevant work experience to “learn the ropes.” Although this might seem like a long time, doing your research certainly pays off in the future.

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Protect Your Intellectual Property (IP)

2010-04-12T13:00:00Z

In today’s knowledge-based economy, intellectual property: knowledge, know-how, trade secrets, customer lists, copyrights and trademarks rule! That’s the gold. Take the time to protect these valuable assets. By taking this simple step, you will cement your business’ value and increase your ultimate exit price because you will keep those ideas and creations that are unique to your company from your competitors.

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Fire Your Worst Customers Today

2010-04-08T13:00:00Z

Life is short indeed, but bad customers detract from your clear head, positive attitude and consumer resources. The small businessperson in particular cannot afford to waste resources on people (customers) who waste your time, complain, negotiate every last nickel and don’t pay. Out!!! The most valuable form of capital is human power. If you have people who are creating trouble and higher costs for you, you need to be able to lay them off or stop doing business with them and find other people who can bring more value to your business.

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Diversify Your Sources of Business

2010-04-05T13:00:00Z

Following the advice of the previous blog entry -

While it’s terrific to win a lot of business from a handful of customers, make sure that the loss of one or two clients or customers won’t put you out of business. Just as brokers advise investors to diversify their investment portfolios among different types of securities of different sized companies in different industries, you too should diversify your client portfolio. Make sure that your clients are from different types of companies, big and small, public and private, and possibly even different industries if possible. This will help you prevent losing business and suffering if any one of your clients should take a blow to their own business and not be able to buy from you. If all of your clients were medium sized, public, electronic equipment dealers for example, and the electronics industry was hit hard by some economic disaster, you would lose all of your clients and your business would fail as well. If you had a diversified group of consumers, you would only lose one customer and not experience as negative an effect.

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