Ask BizMom

    Listed below are basic questions every entrepreneur should ask themselves. Although these are the first questions that come to mind,  there will be many more to follow.  From concept to execution, growing your business will pose many questions.  Here's some of the more popular to get you started:

     The first thing you'll want to do is evaluate your business in terms of what you know about it and what it is you'll need to learn.  Most business owners will tell you that doing something you know well is the best way to select a business. If you are doing something you don't know a lot about, you'll want to plan a healthy period of learning time and not expect things to move too quickly. 

     Tip:  Don't let this fool you.  Many people get into business without having experience in the area they are going into and become very successful.  A wise man once said, "It's not what I know, but knowing how to get the information I need." M

     The purpose of a business plan is to help business owners stay focused and keep on track.  If you don't have a clear idea of the services/products you want to provide, and didn't clearly define your company's direction and objectives, you may find yourself in left field and in an unpleasant situation.  A business plan doesn't have to be a novel.  You could start out with a one page outline.  It keeps you focused, on track and helps you see what the next 'steps' are.

     Another important reason a business plan should be written is to obtain funding from banks, such as small business loans or grants - government and private.  Each lender will require that you have a business plan in place and will ask that you submit it with your loan application.  Expect to be 'interviewed' or present your plan in person.M

     There are many grants available.  We will caution you that grants take time and research.  Follow this link to a world of information.M

Grants, grants, and more grants!!

     This is a good question.  If you are planning to run your business yourself, you can run it as a 'Sole Proprietor'*.  If you plan to have a partner, other than your spouse (Co-Sole), you will need to form a partnership/corporation.  There are several ways to structure your business.  You will also find that there are many different tax and liability benefits to Incorporating. 

*Sole Proprietors

     Most business start out as a SP, because it is the simplest way to get started.  All income and expenses are reported under your SSN and all related obligations and liabilities fall under the SP.  You must check with your city/state to see if any special licenses are required for you to operate your business.M

Learn More Here!

     Although you are selling services, which are not tangibles, you should check with your State agency for specific licenses needed - they should have a reference to Cities within the state as well.  Since you will be filing quite often in the first year (typically every month) you need to have this license in place if it is required.  Even if you're filing ZERO taxes.M

Check for Tax ID requirements in your state here!

     If you are selling your services on a consultation basis, or if you contract with others to provide services to clients, professional liability insurance protects against claims for damages as a result of an error or omission in the work provided to the client.   You also have to consider General Liability, Auto Insurance, etc.

TIP: Whether you business is service or products, you need to check with an Insurance Agency to be sure you're fully covered.M

     Your pricing structure and policy are major components of your public image and are crucial to securing and keeping your clientele. 

     Pricing for service businesses may be more complex than retail pricing. However, the result is the same: cost, plus operating expenses, plus desired profit, equals the services price. 

     The key to success is to have a well-planned strategy. Establish your policies, constantly monitor prices and operating costs to insure profit. Accuracy increases profits!

TIP: You can always adjust your pricing!M

     Now that you need customers, you'll need to take a look at the products and services you offer and determine who you will target.  Once you have decided your potential customers, consider these:

Direct Sales: Old fashioned door-knocking.  Don't knock it, it WORKS!   :O)

Direct Mail: You can create a list of potential customers, however if you buy leads, you can spend anywhere from $ .05 to $ 2.50 per lead.  Now you need flyers, brochures, etc. to send out.  The more qualified your leads, the better close ratio.  Fact:  Direct mail nets less than 3% business. 

TIP:  Go to your customers at hand first.  They will continue to buy until you've established additional customers.

Telemarketing: Make sales calls into homes or businesses of potential customers.   The key here is to schedule an appointment and sell to them in person.

TIP: If you work from a Virtual office, you can introduce yourself, briefly discuss what you would like to offer and ask for a scheduled phone call to conduct your sale.  This will also give you time to drop some material in the mail or email out an electronic brochure.

Internet : Banners, Links and a web page . they can all be ways to get the news about your product out to the public. M

Proof from the SBA:

Television: Show your potential customers what they are missing!  Believe it or not, late night (early morning) local spots aren't too expensive. 

Radio:  Radio ads or jingles after a particular program that deals with the product you are promoting are very effective.  

TIP:  I once owned a cellular and paging store in Phoenix.  In an effort to keeps costs down (radio is not cheap!) We bartered.  I supplied phones and airtime to the radio station's staff in exchange for airtime.   Consider bartering if possible.

Yellow Pages:  One of the first places people look when they need to find products and services quickly.  Super Pages will take your listing without charges.  M

List your business free at SuperPages.com