For years I have read the popular business magazines, all having so called experts write articles for entrepreneurs on how to finance their business. "The top 10 strategies for financing your start-up", "How the SBA can help your small business", "Personal credit is the key for entrepreneurs" and so on. In most cases I'm willing to bet those writing these articles are journalists that have never had a successful start-up. How can I come to that conclusion you may ask? Because of the bad advice they give.
I have worked with thousands of small business owners who have been very successful without the need to use their personal credit cards, retirement funds or fill out stacks of paperwork and wait months for a response from SBA backed banks. In fact I have seen entrepreneurs with access to hundreds of thousands of dollars without giving up a percentage of their company or having any of the money show up on a personal credit report. Sounds good right? Well, there is one catch. You will need to go through the evolution of financing your business. You can't start at the end. This is the problem with most entrepreneurs. They want fast results and aren't willing to wait. By taking the quick fix they give up ownership and put their personal credit at risk.
The evolution of business financing starts with a solid foundation for your business. A solid foundation is comprised of several parts. The first of which is structuring your business entity appropriately. I recommend to every entrepreneur that you use a Sub Chapter S-Corporation, C-Corporation or Limited Liability Company to operate the business. This is the first step in separating the business owner from the business. The next phase of building the solid foundation is to ensure the business is in compliance with the lending markets. Several business owners are surprised when I tell them most lenders we work with when reviewing a credit application will first call directory assistance to see if your phone number is listed. It's a simple check, but it's the first flag that will be raised for them if the business isn't listed. Why would a lender finance a company that doesn't want anyone to find them?
There are hundreds of other due diligence phases that a company must go through in order to ensure the owner and business are not considered "high-risk" for obtaining credit and financing. The more a business has in place to show that it is a real business the more likely a lender will grant credit to that company.
The second step in the evolution of small business financing is to define what the business does, what makes it unique and why it will be successful. The business owner must create a one-page "sales pitch" for the business, also referred to as an executive summary. The executive summary can be used when applying for credit, seeking investors and developing marketing campaigns.
Business owners need to keep in mind when seeking financing that the most important thing for a business is to produce a profit. Without revenue there will be no profit. Marketing the business will help produce the revenue and the executive summary will help create the marketing.
Third, a company must build a business credit report separate from the owner's personal credit. By working with trade credit, the single largest source of lending in the entire world, a small business can tap into limitless leverage for buying goods and services they need to start, run and grow the company. The beautiful thing about trade credit is in many cases it's free money. If a vendor grants terms of net 30, a business owner has the ability to use the vendors goods or services for 30 days without interest before they need to pay the vendor. The other wonderful part of trade credit is that there are companies offering products and services small business owners need who will report the credit to a business credit bureau. The reporting of the trade line will create a business credit profile separate from the personal credit of the business owner. Eventually the business will be able to access more and more credit under the business name only if it maintains a positive business credit score.
The more credit received under the business name the more likely other companies will grant that business credit. No one wants to be the first in line to grant a business $50,000 in credit, but if others already have they will be more inclined.
Fourth, is to use the owner's positive personal credit score in combination with a positive business credit score as leverage for obtaining hundreds of thousands of dollars in unsecured lines of credit for the business. The key is to do this with lenders that don't report the accounts to the personal credit bureaus but rather the business credit bureaus. Many banks offer business lines of credit and loans, however finding the right type of product from these banks can be tricky. A business owner needs to make sure the loan or credit line they apply for reports only to the business bureau.
By keeping business debt separated from the personal credit report, a business owner has the ability to keep their personal credit score high. The more a business owner uses their personal credit in the business, the lower the score will drop. Credit scores determine the ability to buy homes, rates on car insurance, and several other factors. Keeping a personal credit score above 720 is extremely helpful in the business owner's personal and business life.
The fifth stage of the business financing evolution is to look at other alternative financing the business may be able to obtain. Leasing is one key area. Why use precious cash reserves to buy equipment or software when you can make a small monthly payment? In addition 100% of the payment on the lease is expensed.
The final stage deals with investors. The majority of investors don't want to look at companies unless they have already progressed through the business evolution stages outlined above. Keep in mind that an investor is not just investing in a business they are investing in the business owner as well. If the business owner has tapped every available resource for credit and cash personally and never taken the time to establish business credit, financing or lease arrangements an investor will toss that company's proposal in the garbage quickly.
Not every business owner will find themselves at the stage they need an investor. They may have a combination of enough cash-flow, credit and financing in place from the early stages that they won't need additional capital. However, if a business needs to grow with the help of additional capital or financing there are two typical ways an investor will look at the deal.
The first is through debt financing and the second equity financing. Debt financing with an investor is where they provide a loan to the business in exchange for a pre-determined amount of interest. Equity financing is where an investor puts money into a business in exchange for ownership. There can also be a combination of debt and equity.
The majority of small business owners believe this is where they should start, with the investor. In reality this is the last place a business owner should look. Investors want to use their money to grow a business by having the money spent on revenue generating activities. The typical small business owner that goes to an investor says "I need a million dollars to start my business." When asked what they're going to use the money for they say, "start-up costs and payroll". This is where the investor walks away. No investor wants to fund a project so the business owner can make payroll, buy office furniture, equipment or office supplies.
This is the perfect example of the evolution of business financing. The company starts out as an idea, then structure is put in place. Next, the business becomes real with licenses and a sign outside the building. Next, the business creates an identity with the right message. Then the business obtains trade credit that separates the personal and business credit in order to obtain larger lines of unsecured credit. All of which is used to build the infrastructure of the business without maxing out all the available credit for the business or business owner. Last, the business has the ability to seek investors because it has done everything required to create the solid foundation.
Receive the booklet How to Build Business Credit by David Gass ? President and Founder of Business Credit Services. It will share with you how more than 10,000 businesses across the nation have achieved over $175 million in combined financing in their business name only, all using his patent-pending system to build corporate credit separate from your personal credit.
You will also learn the first steps required to getting a business loan, lease, and other lines of credit without the use of a personal credit check or guarantee.
The development of financing a small business
astermind consultants all small business owners must have successfully
The statistics on small businesses going broke in the first 12 months of operation are nothing short of obscene and seriously scary. In Australia and other western countries such as the United States 70% of all small businesses fail within the first 12 months of operation but let me tell you from experience, surviving after that 12 months is no less harrowing.
My ten Small Business Mastermind Advisers are there as my support team in helping me make the right decisions. See often when we make a decision in small business, it might be right at the time but down the track it can do you a lot of harm. Having your small business mastermind advisers on call, you can simply call them and ask them the consequences of the choices you are about to make.
For example, having the right business structure and putting your business assets in the right structure will play a major roll in the success of your business when you decide to exit the business. Se e most people who go into business only ever think of the business as a job they do not look at it from the perspective of how they will exit the business when they have built it into an enterprise.
Those ten small business mastermind advisers will help you to ensure that you have met your obligations and that there are no hidden issues that might come up in the future for your business. For example, we recently chose to sell off our car cleaning business as my wife wanted to pursue something different. Because of the way I had structured some of the trademarks in my company that related to hers, when we went and sold the business it created a number of headaches in the sale process. Essentially we had to shift ownership of those trademarks to her company prior to the sale which created a number of financial costs that we have had to endure even though my company never made any money. This issue arose simply because in the early days, I did not have my 10 Small Business Mastermind Advisers to tell me how my choices would impact on me in the future.
Adviser 1: Accountant
In business today, with the complexities of superannuation, sales tax or GST, income tax and all the other taxes out there an accountant is a must. As a small business owner you need to find an accountant that is a small business specialist and is proactive in working with you.
What I have found is that some accountants will only do what you ask them to do and will not step in and give you advice if you do not ask. You want an accountant that if they see you are doing something wrong then they will tell you without you asking.
The other thing you will need to ensure is that you hire an accountant that outlines where all of their hours are going. It is very easy for you with accountants and solicitors to end up with 5 or 6 figure bills.
Adviser 2: Solicitor
The solicitor is another important Small Business Mastermind adviser. Just like the accountant you need to make sure that the solicitor is a small business specialist. The role of the solicitor is to help you with all legal issues like what structure suits what you want to achieve, do your forms and policies meet your legal obligations, like your privacy policy, recruitment policy etc.
They can also help you protect your assets and in particular your intellectual property like trademarks, copyright etc. Often small business owners do not do the basics of trademarking their business name and logos to stop other business predators using their identities.
Adviser 3: Marketing and Advertising Expert
A Marketing and Advertising Expert is a must in today's market place. I have found that with the various media types, people in the industry can get better deals than if you dealt with the media owners. For example, recently I chose a new advertising specialist to join my small business mastermind advisers because their company was able to negotiate lower television advert placements, than what I could dealing directly with the station.
Your marketing and advertising expert should have some experience in your industry and be able to show real statistics of adverts and marketing campaigns that actually achieved results. More so, they should also have a mantra of test and measure to ensure that your campaigns are giving you value for money and more so, are making you a profit.
Adviser 4: Bookkeeper
Some accountants have their own bookkeepers, but I have found that quite often they are more expensive than bookkeepers not tied into an accountant. Further to this you should always check to make sure the bookkeeper is certified. In some countries, including Australia, bookkeepers can be certified through the National Bookkeepers association or the CPA.
Your bookkeeper must be prepared to work with your accountant and if they have questions you must give them permission to speak with your accountant and more so, you need to make sure that they document all communications with your accountant.
Remember one thing, it does not matter whether your Bookkeeper or your accountant makes a mistake, ultimately, you as the business owner are responsible for your books. If they get it wrong, it will be on your head, so always make sure that you understand what they are doing.
Adviser 5: IT Person
Everybody hates computers and I am a 20 year veteran of the industry and I still hate them. Having a good IT person is essential. Most businesses today are now totally reliant on their IT Technology and if your technology goes down, the question you need to ask is, "could your business still operate?" If the answer is no, then you need to hire an IT person who will be there in an emergency.
When choosing an IT Person or company make sure they are qualified in the technology you are using. For example, if you are using Microsoft Windows technology in your office, then your IT Person should have at the very least the Microsoft Certified Desktop Support Technician qualification.
Adviser 6: Website and Search Engine Expert
If your business is not on the web and you are not selling products to the global market then you are making your life incredibly difficult and you are missing out on lots of opportunities. The internet is a fantastic tool for doing business but be warned there are lots of crooks out there, especially in the search engine optimization industry.
Before choosing a web builder and search engine expert ask to speak with some of their existing clients or talk to other business associates and find out who they use. I will say you should expect to pay anywhere between $1,500 to $5,000 per month for this service depending on your business and what sort of income you want to derive from the internet.
Adviser 7: Business Coach
Business Coaches, are like website and search engine experts, there are a lot of snakes out there who have no real small business experience. Before choosing a Business Coach ask them if they have ever owned a small business or if they had been a principle small business manager.
If you have been in small business for a while, then it will be very obvious to you as to which business coaches have owned businesses before going into business coaching. Their approach will tend to be more practical then something out of a book. Once again before choosing a business coach, talk to your business colleagues and see if they can recommend someone.
Adviser 8: Financial Planner
Managing your money is a major issue and most accountants will not give you Financial Planning Advice. A good financial planner will be able to help you where to put your business money, to get good growth but also to be easily accessible.
You should also have a good financial planner for your personal 401k or superannuation policy but also if you are managing an employer superannuation program. Most small business owners forget to build their own 401k or superannuation policy as they are building their business and when they get to selling their business they find they do not have enough to live on once they retire because once the business debts are paid off, nothing is left.
Adviser 9: Business Banker
Finding the right bank and right business banker is essential to succeeding in business. You definitely need to build a constructive relationship with your business banker as they will be your life line in a dire cashflow situation or if you need money for a deal you just could not let go by.
Business Bankers can also help you with other issues like leasing and hire purchase accounts, but also other facilities like merchant facilities, sales tax bank accounts etc.
Adviser 10: Insurance Broker
I learned the hard way on how important an insurance broker is to your business. The previous insurance company I dealt with did not advise me that none of the glass in my building was covered if I was broken into. I have extensive insurance, but because Glass was an optional extra, the previous insurance company did not tell me this and when we were broken into, even though I pay over $5,000 per year in insurance, I still had a $4,000 bill for all the glass damaged during a break and enter.
This particular experience really drove home, how a good insurance broker, whilst upfront might cost you more, in the future will save you more.
Just like any employee when you are putting together your Small Business Mastermind Advisers you need to interview each adviser and ensure that you are able to work with them. Further to this, to get the best advice from your Small Business Mastermind Advisers you must be 100% honest and open with them, even when things are looking dire. If you are not totally honest, then they cannot give you the advice that will help you get out of trouble.
6 Ways Small Businesses Can Survive In A Crazy Economy
This is a wonderful customer service - every time. Ask a friend or colleague visit your business and feedback from the consumer point of view. This person should be unknown to the team and willing to honest evaluation.
Please check that the second front and back office as a well-oiled machine. The first row and the back office to tell customers the same?
3 customer relationship management - customer back to the minimum easy - you can use to your advantage. Stay in touch often.
4 Check the strategic plan monthly (weekly, it , even better). Please be aware that such things will know where you want to go.
5 Set the strategic plan, if necessary. A smallness become more flexible.
6 Communication, communication, communication - the staff and customers. To maintain these relationships. Ask for feedback often.
10 Hiring Tips for Small Business Owners
Working long hours, no freedom, and spent the weekend.
When was the last time you went to the dentist? When
the last time you had a night with your partner without interruption?
If the goal by 2005, allowing more time for family or
personal enrichment - like attending classes and conferences -
You may want to bring some help.
The following tips will help you begin to receive
A group of 10 or a backup from time to time!
Do not expect to rent a copy here! Any man found, and
Interview is a living, people, their
Habits, styles, ideas and much more! This is fine - as long as
The ideas and habits are not philosophically against it.
The first employee, Jen graduated with a right
moved to the area, and nearly 20 years younger than me!
Or, detail-oriented and based on the time to do things
happened. I Mon little in his pants is type of service. O
a perfect fit as it complements the way you work! City
When the executive portion of my business notte I
neglected - like maintaining scheduling and billing.
He knows exactly what is expected of the new season. Before
Help commercials, sit down and write a job description. List
The goals of the new season - he wants someone to fill
In the short term, if you need a day or two
I want someone who can work those hours? Will
someone who can satisfy the customers in their own time and
Meetings and events in their name, or just want
You can take the overflow? The issue of work
of thoughts that can be rented
a great partnership. As articulated
task of all applicants, it is possible
Although , Sat mutually acceptable. Determine
focus on work related to the groups and descriptions
subjective information.
Decide what kind of leader you are! It is important that
They are honest about your work style. After all, if you say
We want an independent thinker, but really is not much
control end an unhappy helper. The
On the other hand, if you hire someone who needs a lot of information, as
Make sure to cut people , the
Process.
Spend a little time. If you expect to hire someone in the 15
next month may be a preference for the failure. As
You can not expect to find the perfect image of you - not
Always set a deadline for starting the recruitment process. In other words,
Plan to recruit, interview and train to find the right
Person. (Tip: If you are the right person - for rent
immediately, you will find work for themselves! Never in the top
Go!)
Check with your insurance company are your responsibility
Distribution of group members. If you hire an independent
Consultant or employee of a theme in another article,
However, you must ensure that it covers.
Idenetify policy time. Like you, members of his team
The need for time - how to recover from the flu or just a
again. How will you handle these absences?
Create a multi-disciplinary and review process. If it is necessary
Problems with poor performance or chronic absenteeism -
We have a policy before the first layer
Members. Questions of this process are: how many
Emergency absences are acceptable for a certain period? As
That going to solve consumers complaints and problems? As
His reward outstanding performance? What format is
Communication with the team?
Find a reputable firm to conduct background checks. If
The company s products or services for employees
Access to customer data home, children or property can not be ignored,
The importance of due diligence. You can search the
Internet, ask your insurance company or your local
The police recommendations on companies
This control is for you. In any case,
Applicants signature and understanding will be a
Third perform a background check as a condition
Employment.
New application profiles, which together
Applications from interested candidates. On this page
Basic needs of the job description, expectations and attitudes
Process.
Create a training program. Whether a detailed manual or
training for a specific period of time - make
There is a written statement. The training program must
all aspects of the task for the new leased premises.
Many misunderstandings and frustrations simply because ELO
new employee does not understand the expectations of the boss.
Building Marketing Momentum For Your Small Business
The success of your business depends on your ability to create a dynamic marketing. Without the ability to generate new lead generation sources to creation, your ability to recession, and growth of your business to sell stagnate or decline.
Unfortunately, many small business owners are at a loss when charged with coming up with new ways to market, while d others are frustrated by the stagnation in the face of the results of their consistently ineffective marketing efforts. This n is okay if your company is young or established. If your company is young, you just have to survive in the market. D other hand, if you had a marketing success with a method that increases the chances of generating new business for your success will be hampered by the limited opportunities for new sources activity.
Strengthen the dynamics of marketing is like a ball into a hill is steeper. Whenever the hill a little steeper the ball rolling faster and s speeds. Marketing, add a little tactic to draw attention to what you re done is done on the hill a little steeper.
L other day, I talked with Ed, who runs a successful business of shiny metal. I asked him how he is about to create new revenue streams. M It said that 100% of their marketing effort is networking. I could not m keep asking myself why. I understand that it is to do, but when he placed an ad in the yellow pages s SA generated revenues just over a year that , covering the costs of advertising and be profitable!
Although Ed networking events are successful, it limited its ability to grow their business by implementing only a form of marketing. Just trying something new, in addition to networks, Ed de l development of a new way to generate leads and marketing to build momentum.
Marketing is dimensional or stagnant? Here are five tactics you can use to create a dynamic marketing.
Give a good marketing message
If the answer to , what do you do? questions with an intelligent marketing message that you see that many people associate what you do with a need for their own or that of a member friend, colleague or family, and you will win more references. Develop and use a good marketing message compelling, and finding more people s want to watch what you do. The result will be better to sell more.
Take a hot spring sales cold calling
Many small firms hate cold calling. Their position is understandable. Making cold calls, set up for rejection. Nobody likes to be rejected. However, the release of the game by making phone calls. When you realize that it not your fault when someone , said during a a cold call to bypass obstacles and add cold calling marketing arsenal.
The fact is, d here regularly to pick up the phone and reach potential customers small businesses to increase their chances of finding new business. A percentage of the people you talk to your customers in the cold call, especially if you market properly targeted and provide what they need. You work on your skills to your phone the ability to increase sales s improve. Add cold d call your marketing strategy and increase your chances of generating new business.
Use your website as an effective marketing tool
Many companies have websites that are not as effective marketing tools. If your site is constantly generating leads and sales? It should. And it can. The World Wide Web is an open continuously as hundreds of millions of consumers every moment of every day and now you can easily and accurately target those who buy your products or services. A company without a website, as part of their marketing teams are missing a great opportunity to increase revenue. Provides a website that acts as an effective marketing tool, and you will constantly add to your sales momentum.
Develop your network
Another great tool to use to create a dynamic marketing is networking. Networking is a very effective way to generate a link for business (which is the one of the easiest things for you as a reference). A person who is ready to see someone one can contact about your product or service transfer to trust their friend or colleague you refer. Make it easier for customers to trust you remove the one of the obstacles to a sale. By developing a robust network, increasing your ability to find new prospects and make more business.
So how s take to build your network?
Ed from our previous example, is capable of operating only with their successful network. It is s Ed correctly because the network. Many small business owners and managers do not know what the network really is. Too often people think that and have a network for people that just they know when they have to do to achieve is to take steps to expand its network at all times. Ed is a regular networking events and is involved in various social groups. It ads new people to network all the time and have a show for successful business (although that it was more effective when it added another agent to their marketing toolbox).
Measure your results
No matter what tactics adaptation to market you or your business need to measure your results. By measuring the results of your marketing, you can move any way to adapt and stick with and improve. By carefully measuring your results you can improve your ability to display ads on market dynamics and growth of your business and success.
By measuring my results and try new things that I have an announcement to what a 20% response is developing. L announcement was so successful that I occasionally run m call occupied NOK generate. Not only does this big announcement does a great job of generating interest in my services marketing, it saves me the money on my advertising costs, because my goal by running less than ads.
You can also develop highly effective ads by measuring your results.
Marketing Move Forward
If your marketing efforts and help you reach your goal, you can improve performance by implementing the one of the tactics described above. Choose the one you feel most at comfortable and take small steps towards realistic goals measured and you will see a positive change in your marketing performance to see.
How To Make Sure Your Customers Still Trust Your Small Business
These fairs are still on a wild roller-coaster. Business confidence is at a historically low level. Your customers trust? Here are seven ways that will help you to be sure.
First we go a step. In accordance with the laws and over deliver - time worn concept, with works every time. Be for their customers and show how reliable you are. It is your actions that count, not words.
Second Other offers spectacular customer service - every time. Ask a friend or colleague to visit the company, as well as estimation of the client perspective.
Third Pass at the front and back office as well-oiled machine. Make your first line of the staff and office staff to inform the customers are the same?
Fourth Managing customer relationships - customers come back to the minimum effort - to be used to your advantage. Often in touch.
Fifth Communicate, communicate, communicate - with employees and customers. Keeping these relationships. Often ask for opinions.
Sixth Responsibility. Throw the ball. If you do not personally handle the client is the problem, ensure that the customer off gracefully.
Seventh-fulfillment of obligations. This ensures that something will be done. They are also a way of managing customer expectations. You can continue to make appointments. Further engagement builds trust. Lacked commitment destroys trust. And when trust is broken, it takes much longer to rebuild.
How to Start a Big Mail Service
A BIG MAIL SHOULD CONTAIN:
At least three to four Mail order Magazines Circulars containing offers or interest to new mail order dealers. Circulars which the Big Mail Dealer has been to mail.
Do you enjoy reading Mail Dealer magazines? Do you enjoy ordering and receiving "Big Mail?" Do you enjoy working with new Mail Order dealers and opportunity seekers? If your answer is "YES" to all of these questions, then it would probably be profitable and pleasurable for you to start a "Big Mail" service.
In the pages to follow I will show you how to set up a Big Mail Service. I'll show you how to advertise your service and I'll also show you how to use the Big Mails that you receive in your mail to your own advantage. I'll show you how to use commission circulars (how to get a lot of them free!) and I'll also show you how to keep track of them.
We'll talk about co-publishing and we'll discuss circular mailing (you'll learn how to get people to pay you cash to mail their circulars for them!).I'll show a simple trick that will get you a lot of free advertising and I'll show you where to get a free mailing list that will create a lot of new customers for you, if you are willing to put in a little work to get them.
But...before we get into this...I would like to give you a word of caution. Big Mail selling looks easy and it sounds easy IT IS NOT! Selling Big Mails is a lot of work,HARD WORK. And it is NOT a way to get rich quick.
You will probably not make any money at all for a least a few months. In fact, you will have to invest more than you take in. If you are willing to invest a little of your money, and a lot of your time, then you will gain invaluable experience selling Big Mails, and then you will make money. You will gain experience that you could gain nowhere else in the whole world. And if you are alert, creative, and AMBITIOUS, you can eventually turn your mail order business into a very lucrative enterprise.
If you are still interested...and I hope you are..read on!
The first thing you should od is to sit down with the latest issue of MAIL SALE ADVERTISER or POPULAR ADVERTISER and order a least twelve Big Mails. After that, get into the habit of ordering a least one Big Mail EVERYDAY!
Then devote a portion of EACH DAY to STUDYING them. And I do mean STUDY!
Feed your mind and your imagination with all kinds of ideas. The Mail Order Business is a very creative and imaginative one. The more you feed feed you imagination, the more it will do for you!
Set up a personal notebook. I would suggest you divide into four sections:
* Commission Circulars Sources
* Sources of low-cost printing
* Prospective Mailing Customers (Save the circulars that other dealers have been paid to mail. I'll show you why later on .)
* Good ideas.
You can set your personal notebook up any way you like, but I use a loose-leaf notebook and scotch-tape the ads, circulars etc.
Read and re-read every circular and mail order magazine that you can get you hands on. SAVE ANY IDEA THAT APPEALS TO YOU! Start ordering SMALL supplies of "commission circulars" that APPEAL to you. (never try to sell anything merely because it pays BIG commission.)
When you are satisfied that you really want to start selling Big Mails, there are two very practical things you must do.
1. Order a name and address rubber stamp. Be sure it is SMALL enough to use on commission circulars.
2. Open a PERSONAL CHECKING ACCOUNT. Open it in YOUR OWN NAME. When you start to advertise, use your own name. If you do that, there will be no problem when you go to the bank to deposit checks that your customers will send you.
Your next step is to place an ad in a least SIX mail order magazines or ad sheets. In the beginning you will have to use publications that will accept handwritten copy, since you do not yet have "camera ready" ads. Your ad should read something like this:
BIG MAIL-25 cents Commission circulars mailed FREE! (your name and address)
A simple ad like this will pull better than one with a lot of words in it.
You probably already know which magazines and ad sheets you want to advertise in. That is fine! But I would suggest you start off by advertising in at least one or two of the following:
Mail Sale Advertiser
Popular Advertiser
Mail Order Bulletin
Timely Tips
All of these are letter press publications, which means they will set your ad up for you. They appear regularly EVERY MONTH ON TIME, and almost everyone interested in mail order reads them!
Because these publications are CO-PUBLISHABLE, the publishers of each publication will send you 50-100 copies to include in your Big Mails. Your name will appear on your copies as the CO-PUBLISHER. You will get to keep around 50% as your commission on any ads or subscriptions you sell. If you are faithful mailing your copies, you can often make enough profit on ads and subscriptions to pay for all your ads. This way your ads actually cost you nothing.
Each advertiser is also mailing his copies to his customers or mailing list, and every last copy mailed has YOUR ad in it... The printer is also mailing a copy to every person on his subscription list...so, usually within about ten days after your address appears in print, you will start receiving letters with quarters in them asking for Big Mail. Some advertisers, for one reason or another are quite slow in mailing their copies, but this can work to your advantage. You will often get orders two or three months after your ad appears!
COMMISSION CIRCULARS
Long before you start receiving orders for your Big Mail, you should have acquired a starting supply of "commission circulars." You will want to include them in every one of your Big Mails.
Commission circulars are usually 3x6" or 81/2x11" circulars offering such things as: Rubber Stamps Name-address Labels Folios Magazine Samples Mailing Lists Envelopes Printed Stationary Business Directories Catalogue Samples Drop-ship Samples Printed Circulars Formulas Books Mail Order Plans Magazine Subscriptions Name Listing Services Pen Pal Clubs, etc, etc.
Wholesale firms supply commission circulars to mail order dealers, usually at cost. The dealer stamps his name in the blank space under "Order Form" and mails them to prospective customers. When he receives orders (and he will if he mails them regularly), he keeps his commission, which is usually about 50%. He then sends the balance, along with his shipping label, to the wholesaler, who drop-ships the order directly to the customer under the dealer's shipping label.
Commission circulars can be profitable for you, as a Big Mail Dealer, if you are very careful to select only those circulars which appear to MAIL ORDER BEGINNERS. You will soon learn that gift items and general merchandise rarely appeal to people who are ordering Big Mails, unless you are offering them on wholesale basis. (Safari boots, transistor radios, hunting knives, automatic can-openers, $15.95 necklaces are nice, and they can be sold by mail...but not to mail order beginners!)
If you work at it, you can make a lot of extra money by including good commission circulars in your mails. Test a few hundred copies of each commission circular. If it evokes no interest, discontinue it. But if it produces and order or two,then include one in every piece of mail you send. When you have found a circular that "pulls,"try to have them printed with your name and address on them. (printed circulars will often pull FIVE times better than stamped ones.)
Don't mail poorly printed circulars. They tend to make your entire mailing look sloppy> You will also find that 6x9" and 8 1/2x11" circulars pull better than 3x6", although some 3x6's pull surprisingly well.
Once your ad appears ( starting COMMISSION CIRCULARS MAILED FREE) you will start receiving commission circulars. Test every circular that is given to you. Push the winners, discontinue the duds. You will eventually develop a list of real money makers to include in your Big Mails.
Most of the suppliers of commission circulars are honest people. They offer items of real worth. But occasionally you will find circulars that you should not mail. They will get you in TROUBLE! * Adult Offers (pornography). Even if you do not object to this, some of the customers will...and some of your customers may be minors.
* "Stuff and Address Envelopes at Home..Send a $1.00 for your Starting Kit," These offers are illegal. People have been convicted in court for selling them. Beside, the plans are worthless.
* Chain letters--These are also illegal. Beware of any circular that says you will receive $20,000 in sixty days if you will mail a dollar and "follow the instructions, etc."
There is one more thing I would caution you about. There are about 40-50 standard folios that have been around the Mail Order Business for the last twenty years. They are EXCELLENT folios, well written, well printed, and the advice in them is absolutely valid. But it is a waste of time trying to sell them to mail order beginners. Most of them already know where to get them at wholesale prices! If you receive FREE commission circulars offering these folios, by all means, mail them. You may get an order or two. But if you are going to buy expensive circulars, be sure you are offering something NEW something which EVERY mail order dealer has not already seen at least one hundred times!
FACTS AT YOUR FINGERTIPS!
As a Big Mail Dealer, you will be selling many things. So that you can fill each order accurately and promptly, I suggest that you start another looseleaf notebook Divide it into three sections:
1 Commission Circular Information
2 Co-Publishing Information
3 Advertising Schedule
1. Commission Circular Information---Every time you receive a new supply of commission circulars, sit down and examine them. (Sometimes you will receive two or three varieties in one envelope.) Tape one sample of each circular in your notebook. Underneath it write:
* Name and Address of the Drop-shipper
* Amount to forward to the Drop-shipper
* How to obtain additional circulars. (Are they available with
your name and address imprinted on them?)
2. Co-publishing Information--Most publishers of mail order magazines will send a "Fact Sheet." If they do, simply scotch-tape the sheet in your notebook. If not, record these facts yourself:
*Name and Address of Printer *How much to forward on new advertising, subscriptions, etc
3. Advertising Schedule--To keep your ads running CONTINUOUSLY, you will have to keep track of "closing dates" (the last date on which a publisher will accept advertising for his next issue.) Here is a very simple method to use:
Take a page of common notebook paper. At the top of the page, write the name of the month. Then number down the page from 1 to 31. (Use one line for each day of the month.)
The closing date for Mail Sale Advertiser is the 15th of the month, but you will want to mail your ad on the 5th of the month (always mail your ads in TEN DAYS EARLY.) So next to the number 5, write down the code letters "MSA." If you check this sheet religiously every day, you will never forget a closing date.
Before you mail your ad, turn to the page for the following month and make a notation of that month's closing date. If you will use this system ( or your own variation), you will remember every deadline, whether you are advertising in five magazines of five hundred!
CIRCULAR MAILING
Once your Big Mail ads are appearing regularly, you will start to receive orders for them regularly. As soon as you are averaging five a day, you can advertise yourself as a CIRCULAR MAILER. It's easy to get started. Each time you renew your Big Mail Ad, send in another ad like this. (As co-publisher, your ads cost half the advertised price!)
100 250 500
3x6 .50 1.25 2.25
6x9 .60 2.50 2.50
9x12 1.00 2.00 4.00
These prices are given only as examples. The postal rates and other costs change and you should check the ads currently running Circular Mailers and charge about the same rates. Cut-rate prices will NOT get you more orders.
A circular mailing ad will almost ALWAYS pay for itself immediately. ( Incidentally, many dealers have tried to run a combination Big Mail and Circular Mailing ads. They do work half as well as TWO SEPARATE ADS!)
As soon as you receive a circular mailing order, send your customers a sample mailing. Be sure it is neat and be sure it includes the LATEST issues of several mail order magazines.
Then include ONE of his circulars in every Big Mail until you have finished mailing them. If you have not received any more circulars to mail, send him a friendly thank you not and let him know that you have finished mailing his circulars. Tell him you hope he receives some orders from your mailing. Include some new circulars from new advertisers and a NEW magazine. If he has any more circulars to mail, he will likely send them to YOU!
Remember, circular mailing depends on REPEAT customers. Never exaggerate mailing capacity ( either in personal letters or ads.) If you really try to get orders for your customers, they will be back for more!
HOW TO GET FREE ADS
There are many editors of mail order magazines and ad sheets who will print your ads free if you will mail 100 to 200 copies of their publication. Here is a very effective way to get them to run YOUR ads:
Take a sheet of white typing paper. Type the following words on it.
PRINTERS PUBLISHERS: If you will print any of these ads in your publication, I will mail 100 copies for you FREE! (With co-publishing rights, I'll mail 200 copies!) Note that all of these ads are camera ready for your convenience.
Then use a rubber-cement to paste copies of ALL YOUR DIFFERENT ADS on the sheet! (If your ads have been printed on colored paper, bleach them before you paste them up. Pour a little clorox over them, until the color disappears. Rinse them in water, and dry them on a piece of flat cardboard.)
Once your circular is pasted up (camera-ready), take it to your local instant photo offset printer and have 500 or 1000 copies printed on WHITE paper. (Be sure its on white paper.) Enclose one of these circulars in every mailing. You'll be amazed at the results!
WHERE TO GET GOOD MAILING LISTS FREE
If you advertise regularly, you will get a lot of response to your ads. But if you will do a little specialized direct mailing, you can double your business almost immediately. Here's how:
Imagine that you have just received your mailing copies of TIMELY TIPS from the printer. If you look at your self, you discover that you still have 14 of lasts month's issue left to mail. Sit down and make up 14 SPECIALIZED mailings. In each mailing, enclosed:
1. One copy of last month's TIMELY TIPS
2. One copy of each circular you have been paid to mail.
3. One copy of your new FREE MAILING FOR FREE ADVERTISING
circular.
To whom do you mail them? COMPILE YOUR MAILING LIST FROM THOSE BIG MAILS YOU HAVE BEEN ORDERING EVERY DAY! Mail them too:
* CIRCULAR MAILING PROSPECTS--Each time you receive Big Mail, examine all the circulars. Who has paid the dealer to mail circulars for them? If they have paid him, THEY WILL ALSO PAY YOU...if you will take the time to send them a sample mailing!
* NEW AD-SHEETS AND MAIL ORDER MAGAZINES--Whenever you see the announcement of a new publication, send a sample mailing and be sure to enclose your Free Mailing for Free Advertising circular. You'll get many, many free ads, if you work at it.
* NEW MAIL ORDER ADVERTISERS--Save the names of new advertisers in the mail order magazines or ad-sheets. You'll be amazed at how responsive they will be to your mailings!
Every time you receive new mailing copies, mail out the remaining copies of last month's issues to the categories listed above and your mail order business will grow faster than you ever dreamed it could. You'll be surprised at the new business you will be able to generate using this method.
WHERE DO YOU GO FROM HERE?
I honestly can't answer that question! Only you have the answer. If you are ambitious--if you are willing to develop your imagination--if you are willing to experiment with new ideas....the sky is the limit!
Don't let anyone tell you that Big Mail Selling and Circular Mailing is only for beginners. There are SUCCESSFUL mail order dealers who have been selling Big Mails and mailing circulars for twenty-five years! If you really love it, don't ever give it up!
What direction your mail order business takes is entirely up to you. I hope you will keep your ads running, and I hope you will expand your business by constantly adding new publications to your advertising list.
Keep your eyes and ears open. Saturate yourself with fresh, new and imaginative ideas. I hope you'll keep excited about the Mail Order business...I hope that ten years from now, You'll love it and be more involved than you are today.
Mail Order is far more than just a money-making business for me. It's a way of life! And I hope it is your way of life, too!
How to Successfully Avoid Becoming One of The 80% of Small Businesses That Will FAIL
It may be simply due to common factors, namely lack of time and energy d investment in advertising, dedication, lack of stamina, l weight will not fix ambitious goals of low and so on.
But the saddest news is that even with full and enthusiastic about some of the above, many employers moved slowly and gradually to what can only be described as a suicide d business.
The number one reason many companies n is no shortage of good quality, regular advice, surprising and very relevant. It that simple.
Managing a successful business is to make decisions on a daily basis. The decisions we make depend on d a number of things, including:
1. Previous experience and
2. Knowledge of the facts.
The owner a firm may have relatively little experience or not.
No individual can know all the facts.
The solution is as follows: Create a team experts. Assemble a team experts and not only an overall increase of experience, but also their knowledge of the facts that a person becomes less relevant.
To identify who should be on your team, you must break decisions in certain areas. Try doing this:
If it is a legal problem, do not try to fix it yourself. Ask your lawyer / attorney.
If it is a complex tax problem, talk to your local tax office. Contact IRS and Treasury, as appropriate.
If you have found the accounts of severe headaches, do not cut corners. Check with your accountant.
If you have financial difficulties, do not take the decision borrow from a lender X. Make sure all d first. Your bank manager has good ideas or suggestions?
When they face challenges, which means that the n not to make decisions immediately. He wants advice. Good and many it. Then and only then can decide, before you commit to a plan action.
Then, probably the highest, is: Do you know anyone someone who has experience with the same or similar you? They are active? Are they effective? If you can answer yes to all these questions about this person, so that they did their best friend again. Put them somewhere near the top of the list of Christmas cards (if you send such a card).
Try not to be regarded as a rival for company or a competitor, but think of them more as a mentor. Of course it helps if they are available and willing to share their knowledge, tips and experiences with entrepreneurs interested by other enthusiasts.
In summary, remember this: None a great success in ; all their own. They were help and advice of many others. Usually people who are experts in their fields.
Obtain Maximum Results For Your Small Business Through Better Time Management
Most small business owners May, dealing with so many tasks and incredible work during the day. Mainly because of the different roles we play. One day a small business from the customer, special collections, marketing expert, public relations representative, and the list goes on. The crazy enough to drive the average person. But also caused small businesses in different hands, and sometimes succumb to normal, everyday events through the mismanagement of time. Bad idogazdálkodás significant negative impact on the company sales and customer dissatisfaction. The owner of a small company can not afford.
First, regardless of how the body stick to it. Bag or a handheld organizer can do wonders. But it does not depend on one's own work. Why should only be used if you regularly enter your data permanently and research what you entered.
If you decide what type of organization would be best for you begins with the usual tasks at regular intervals. For example, every Monday, you can create new tasks, so you know in the next few weeks. Can behave as 1 week to new tasks and remove completed well. It is true that this system effectively, you should begin to review and routine tasks. This will help to plan and minimize the chances of all must not be less than overwhelmed entrepreneurs.
Here are some steps you do to create and view a week can:
Priorities First: Decide what tasks our immediate attention and plan your day.
Divide the second task: to ensure that you have the time, he opened the larger tasks. Commands all the tasks that can not wait to see, such as collection or sales calls.
3rd Revaluation of the start and end date (so they realistic): Enter realistic finish and start and end dates of work, every day a little.
4th Reward yourself: Reward August break, or other personal incentives to stay motivated throughout the week.
5th Set limits: Determine how many hours you can spend a small business. Accordingly, you plan your daily task list.
6th Avoid negative thoughts: If the date, not result in the end of the world and no reason for frustration. Just use the tips of the second and third on the list to start the process over again. Besides trying to figure out what about the weather, and similar mistakes in the future.
Remember, the plan is the key to consistency. Success is yours. Unlike most people who say no nagging boss, what to do when (one of the many benefits that a small business owner), but whether it can lead to problems if you have not learned how to create and manage the time. Such a positive outlook to keep your daily goals.