Business Development Digest

Small Business Tips for Long-Term Success

2011-11-01T08:37:00.000-07:00

Building relationships with customers results in security.

The failure rate for small businesses is incredibly high. Many small businesses rely on "good products," "good ideas" or "good services," rather than on proper preparation, business structure, funding and marketing strategy. While having a sound product and/or service is also a must, a business with a great product or service that is not supported by strong, fundamental business concepts will not be successful in the long run.

Plan for the worst. Businesses that are prepared for financial and public relations crises can handle them in a proactive, rather than retroactive, fashion, which will be beneficial in the long run.

Know your strengths and weaknesses. When businesses are aware of their strengths, they can capitalize on them and sell the company better to customers and clients. Additionally, knowing weaknesses is equally important so improvements can be made.

Build a relationship with your customers or clients. Establishing a relationship with customers and clients is essential. Especially during times of economic hardship, loyal customers help keep businesses afloat.

Don't try to grow/expand too fast. Growing too fast can also be detrimental for a small businesses. Prior to running a huge advertising campaign (or other marketing tactic), businesses must ensure that they have the man power to support the company's efforts if there is a surge in demand.

Know your competition. Keeping an eye on competitors is beneficial because businesses can not only see what other businesses are doing successfully, but also what tactics other businesses have tried that have been unsuccessful, so they can avoid going down the same path.

California Law Prohibits Credit Checks for Certain Employees

2011-10-03T10:02:00.000-07:00

Earlier this week, California Gov. Jerry Brown signed a bill that would prohibit employers to request credit reports from job candidates for certain positions. The bill, AB22, which will be effective as of January 1, 2012, restricts the use of consumer credit reports in the hiring process to individuals who will work in law enforcement, a financial institution or the California Justice Department, among others.

If you do not currently do business in the state of California, the news is still pertinent to the rest of the country, as California is the seventh state to enact such a law, and at least 20 other states have considered similar action. A Congressional bill that would limit the use of consumer credit reports for employment purposes is also under consideration, but the House has yet to approve it.

For states that do not have a law to limit address to consumer credit reports, employers are allowed to obtain credit reports for both current and prospective employees. The employer simply must request permission from the employee or future employee, and notify the person if he or she was not promoted or hired because of negative findings.

SBA Women-Owned Small Businesses Contractor Program

2011-07-18T06:03:00.000-07:00

If your business has 51 percent female ownership, you could be eligible for new government contracts. On February 4, 2011, the U.S. Small Business Administration (SBA) announced a new contracting program for women-owned small businesses (WOSB). The first contracts that will be awarded under the SBA program are expected to be awarded by the fourth quarter of fiscal year 2011, according to the SBA. Find out if you qualify and learn how to apply. Some economically disadvantaged women-owned small businesses (EDWOSB) also qualify for the program.

Obtaining a Business License

2011-07-04T14:31:00.000-07:00

Now that you’ve decided what type of business you would like to go in, it’s time to make it official. All businesses need at least one local, state or federal license to legally operate in the United States, so the next step is to obtain a business license for the state in which you would like to do business, which is actually a fairly quick and easy process.

Laws vary state-to-state, but typically your state’s secretary of state’s Web site is where you should begin. Conduct a simple search in your favorite search engine to find the Web address for your secretary of state. Once you have arrived on the appropriate site, there will be various business licenses available for you to choose from.

After choosing the appropriate license(s), you will be taken to a screen that will enable you to download the forms you need to apply for your license. Fill out all of the forms associated with applying for your particular license. Prior to submitting your application, make a copy to keep for your records. Some states allow you to submit forms electronically, while others require forms to be mailed. Either way, make sure the full fees are submitted with your application. After your application is submitted, the approval process generally will take a few weeks to complete. Once your license is approved, you will receive your business license in the mail, and can begin conducting business.

Make sure you take note of whether the license must be renewed on a regular basis. If so, keep track of the renewal dates and be sure to renew your license prior to expiration, as there are serious penalties and fines for businesses that operate without appropriate licenses. Also keep a copy of your license for your business records. Many states require business owners to display their licenses so they are visible to customers and clients. If this is a requirement for your particular license, be sure to do so, as not displaying a license when it is required is also considered a serious violation.

It is important to note, if you ever expand your business or its products and/or service offerings, you may need additional licenses. Prior to any expansion projects, you may want to check to see if any additional licenses are required for your business, just to play it safe. If your business is involved in activities supervised and regulated by a federal agency, you will probably also need to obtain a federal license, according to the Small Business Administration.

Servant Leadership: Leading the Way Through Servitude

2011-06-01T07:54:00.000-07:00

Servant leadership is having the desire to not only lead, but to do so in an ethical manner. I am aware that this could mean a variety of things for many people, but to me, it means making decisions that will benefit those within the organization as well as the organization as a whole, and putting the wellbeing of the organization and its members before self. It also means taking the necessary measures to ensure proper growth of the organization and its members—whether it is through additional training at the expense of the organization, or simply taking time out of one’s day to ensure that organization members feel worthwhile. Servant leadership has become more attractive in recent years because people are beginning to realize that while an organization can achieve success under a tyrannical leader, this success will be limited and short lived. The most successful organizations are comprised of content members. This can only be achieved through servant leadership.

The primary problem with leadership is that some leaders have shown resistance to encouraging the growth of those around them. The desire for constituents’ success in and outside of the workplace, and longing for them to become competent leaders in society is a prime example of servitude while in a leadership role.

Building Relationships with Constituents

In the stages to becoming a servant leader, one is first dependent, then becomes independent, and then ultimately becomes interdependent with his or her constituents and the organization as the leader strives to support others and the institution. The principle of interdependence is a critical aspect of servant leadership, because without this relationship, success will be stifled. In order to move into the final stage of interdependence, servant leaders must build a rapport, which then leads to building a strong relationship with their constituents, which is mutually beneficial for the company, the leader, and its constituents. In order to achieve this level of success, it is necessary for the leader to show the constituents that they are cared about outside of the success of the organization—as an individual.

Evaluating Servant Leadership

So the question is, “How does one determine success of servant leadership”? Although servant leadership is a foreign management philosophy for some leaders, as desired results are achieved, more and more people have accepted this type of leadership. Content, high-performing employees validate servant leadership. While this unconventional style of leadership is not accepted by everyone, results are measureable, and after continued success, the servant leadership style can become more accepted into ones particular work environment.

Strategies for Effective Intercultural Communication

2011-05-02T09:54:00.000-07:00

In today’s society, diversity in the workplace is a fact of life. The probability of organization members coming from diverse cultural backgrounds, as well as customers and clients coming from diverse cultural backgrounds is very high. That said, the way in which organizations communicate, both internally and externally, must reflect this changing demographic, because communication is greatly affected by culture.

Becoming an effective intercultural communicator does not just happen by chance. To the contrary, in order to become an effective intercultural communicator, one must be motivated, and take the necessary steps to do so. These steps include becoming transcultured, asking oneself what preconceived notions about the other person’s culture may hinder the communication process, letting go of any ethnocentrism, and simplifying the meaning of culture to understand the communicator for who they are as a person. While following these steps can help one increase their effectiveness as an intercultural communicator, it is imperative to remember that just as communication is an ongoing process, becoming an effective intercultural communicator is also an ongoing process that takes work.

In order for effective intercultural communication to be achieved, there has to be a shift in consciousness and the identity of the self on the part of the communicator—a hybridization of consciousness and identity, meaning that the communicator must make a conscious effort to open one’s self up to understanding, which may actually alter the communicator’s identity.

Becoming an effective intercultural communicator also involves making a conscious effort to avoid communication dissonance. Prior to interacting with a person from another culture, or during the communication exchange, one should ask oneself the following questions to ensure that no preconceived notions or biases exists that may hinder the communication process:

What preconceived notions do I have about this person based on social identity characteristics (whether we seem different or similar)?
Are those notions positive, negative, or neutral?
What’s the source of those preconceptions?
Will my preconceptions facilitate or impede communication?
Am I open to learning about this person and myself during this interaction? Why or why not?
Am I willing to be changed as a result of this interaction or experience?
What communication tools can I use to try to create genuine communication

The next step to increased effective intercultural communication is to attempt to let go of any ethnocentric feelings you may have. While many of us may feel as though we do not have any ethnocentric feelings or ideas, that is, esteeming one’s nationality, culture, or ethnicity above another’s, taking a moment to truly examine one’s way of thinking could reveal otherwise. In a multicultural setting, simply assuming that one’s own culturally-accepted gestures or style of communication is appropriate to use amongst others is a form of ethnocentrism. Therefore, one must strive to be aware of the accepted verbal and nonverbal communication for various cultures, and not esteem verbal and nonverbal communication in one’s owns culture over others. This is similar to cultural relativism, in which all social practices are equally good. However, unlike cultural relativism, the goal of effective intercultural communication is not to state that all cultural practices are good, but to strive to develop an intercultural consciousness and understand others in order to enhance communication to increase understanding amongst all communicators.

Another way to improve intercultural communication, both internally and externally, is to simplify the situation. Culture is a very complex topic, but viewing culture as simply a community of practice, histories of community of practice, a way of doing things, and as a community in general can help organization members find ways to communicate in a more effective manner with diverse organization members and customers and clients. The key is to understand the individuals’ communities and to communicate with them in a way that would be acceptable or appreciated in their community. To understand what is culturally acceptable in another’s community, one must make it his or her responsibility to become aware of what the social norms are in the other person’s culture. This could include minor research or casual observation. However, jumping to conclusions could be detrimental and result in communication dissonance. To avoid jumping to conclusions, one should take cues from the other people he or she is communicating with, or if the relationship is close enough as in a co-worker-to-co-worker relationship, sometimes it is ok to simply ask what styles or methods of communication are preferred or appropriate in various situations.

J. Mariah Brown is the owner and editor-in-chief of Writings by Design, LLC. To learn more about how Writings by Design can help your business flourish, please visit us at http://www.writingsbydesign.com, email your question to inquiry@writingsbydesign.com or call 866-937-2361.

Understanding Intercultural Communication in the Workplace

2011-04-01T07:37:00.000-07:00

As people, our culture greatly impacts who we are and how we communicate, even on the job. Culture encompasses nationality and ethnicity, and can also be influenced by one's occupation, sexual orientation and religion. That said, people take their culture with them wherever they go, including the workplace. Organizational members of all levels consistently come in contact with a diverse group of people, internally, as well as externally. It is critical to communicate in an open, non-judgmental manner with diverse organization members, clientele, and customers in order to complete tasks in a timely manner and meet customer needs in a satisfactory manner. However, communicating with members from diverse cultural backgrounds can present challenges and cause breakdowns in communication when misunderstandings occur. Therefore, it is imperative that organizations properly train personnel about the importance of understanding what intercultural communication is, and how to communicate effectively with intercultural groups.

What Is Intercultural Communication?

Intercultural communication takes place whenever two or more people of different cultures interact. Culture affects every aspect of our lives, including communication. Therefore, in order to communicate effectively, one must have an understanding of how others' cultures impact the way in which they communicate, as well as how one's culture influences one's own communication. Effective communicators are motivated to understand themselves, as well those who they are communicating with in order to enhance the communication process. Therefore, effective interpersonal communication is a person's ability to interact and adjust to others from various backgrounds.

Understanding Breakdowns in Intercultural Communication

In order to become an effective intercultural communicator, you must first understand why communication is sometimes hindered between people from different cultures. When people come from the same or similar cultural backgrounds, the way in which they communicate is often very similar, which means they often interpret similar meanings and have similar perceptions of when and how it is appropriate to use certain types and styles of communication. However, when speakers have different cultural assumptions, the possibility of communication breakdown significantly increases. This breakdown in communication that is caused by misinterpretation and misunderstanding is called communication dissonance. Dissonance can occur both intentionally and unintentionally, and intra-culturally and interculturally, however, for the purpose of this discussion, I will focus on unintentional intercultural communication dissonance. Despite the good intentions of the communicator, unintentional intercultural communication dissonance can result in a wide array of results, including unpleasant feelings on the parts of the sender and the receiver. Dissonance can occur for multiple reasons, but essentially comes down to the inability to understand what is meant by what is said. Other factors that may contribute to communication dissonance are as follows:

Ethnocentrism
A sense of privilege
Stereotyping
Prejudice

These factors are introduced to balance the ignorance of others' cultures and how that might impact workplace interactions. For example, one organization member may not understand why another organization member uses his lunch break to pray rather than to eat with other coworkers. Rather than trying to understand the other organization member's culture, the other organization member may simply begin to stereotype the worker for choosing to pray, making overgeneralizations about "those types of people," which can then further develop into prejudice. However, simply changing the way we think can help increase the effectiveness of our communication across cultures. Rather than rushing to judgment when another person's culture is misunderstood, one should seek understanding. In the aforementioned scenario, the coworker that misunderstood why the other coworker missed an opportunity to eat and socialize with other organization members could simply politely inquire about the coworker's culture to gain understanding, which could then enhance communication and build and strong relationship between the two people.

Effective Tactics for Managing Consultant-Client Relationships

2011-03-15T07:32:00.000-07:00

In order for consultants to be the most effective, a strong relationship must be formed between the consultant and the client. However, throughout the consultation process, political and ethical issues arise that can either hinder or help the relationship, and therefore, hinder or help the overall strategy. The way in which the consultant handles these political and ethical issues can strengthen or weaken the consultant-client relationship and lead to a successful or unsuccessful program.

Smeltzer, Watson, and Barker developed the Model of the Communication Consultant/Client Relationship, which consists of 24 steps that explore various aspects of the relationships between consultants and their clients. The model is based on the premise that consultants often must work in environments where political and ethical issues are raised simultaneously (Smeltzer, Watson, & Barker, 1984, p. 126). While ethical consultants “do not simply try to determine what actions are in their own best interest, but rather what actions are right or best for all parties concerned,” political issues “are concerned with the kind of actions that are most often beneficial or harmful to a person as an individual, and which advance one’s own interests (p. 126).

After the first two basic steps of the model of marketing oneself as a consultant and having the initial meeting with the client, the third step of the model is to have the client state the problem (Smeltzer, et. al., 1984, p. 127). This is the first stage that possible political and ethical considerations usually arise. “Politically, the consultant may want to see only the part of the problem which is in the domain of his or her professional expertise. Ethically, the consultant must decide if the important problem areas are outside his or her area of expertise” (p. 127). During this stage of the process, consultants must also decide whether to limit his or her investigation to the problem identified by the client, or to investigate other areas within the organization that could also indirectly affect the issue at hand. Of course, this could increase the length of time spent on the project, and the consultant may discover that other problems must be solved before the requested problem is solved (p. 128), however, this is both a political and ethical decision the consultant will have to make prior to beginning the project.

In the fourth, fifth and sixth steps of the model, the consultant must analyze and obtain data to determine problem-solving strategies. Ethically, the consultant must determine how much information is needed to develop an effective strategy for the client (Smeltzer, et. al., 1984, p. 127), and politically, the consultant must determine how much time and effort should be spend to attempt to gather the necessary data to make a sound decision (p. 128). For instance, the consultant may appear to be more professional if he or she does not require extra time to assemble more data, but ethically, if the consultant knows that a more sound decision could be made with access to more data, extra time should be taken to gather the necessary data. In the seventh step of the model, determining the possible strategies that can be used to deal with the problem, “there may be a difference between the strategy which would be the most profitable for the consultant and that which would be most effective (p. 128). In this case, the consultant would have to choose whether to select an effective strategy that may not show results right away, and a less effective strategy that may show immediate results. Being open with the client at the early stage of the process, and explaining why the consultant has opted to use the most effective strategy that is slow to show results in the short-run, can actually help strengthen the client-consultant relationship in the long-run.

The eighth step in the model addresses the various degrees of the consultant-client relationship, and “the extent to which the consultant should take over the tasks and responsibilities of the client” (Smeltzer, et. al., 1984, p. 128). In this stage of the process, the consultant and client must determine what the ultimate goal of the consultant is—whether to teach tasks, or complete them, and on what level in regards to dependency, involvement, and ownership (p.129 – 130). Dependency is the extent to which the consultant wants the client to be dependent on them. The consultant must also evaluate the client and be open and honest with the client in regards to the client’s competency level and ability to be independent (p. 129). Some clients may desire a high level of involvement in the decision-making process when determining which strategy is right for the company (p. 129). While this could be helpful, it could also cause conflict if they client requests a particular strategy that the consultant believes will be ineffective. Politically, selecting the client’s choice may have better results initially, but if the program fails, the consultant could still be held responsible, even though it was the client’s idea. Ethically, if the consultant feels as if the strategy is not in the best interest of the client, he or she should explain why, although this may result in an undesirable situation, such as high tension or the termination of the relationship. Lastly, the client and consultant must determine the level of ownership of the program and implemented strategies (p. 130). For instance, who would take credit for the success or failure of the program, and at what point? In steps 9 through 16, time and resources are evaluated for the project and the proposal is presented to the client.

Evaluating the Effectiveness of the Consultant Program

Steps 17 and 18 of the model begin the evaluation process of the consultant program. During this phase, the consultant must decide how extensive an evaluation to conduct, determine “what aspects of the evaluation should be used by the consultant for personal self-development and what should be used for organizational improvement,” and must separate objective data from subjective data (Smeltzer, et. al., 1984, p. 131). After the evaluation has been completed, the consultant must provide the client with feedback—Step 19 (p. 132). While presenting feedback may seem like a pretty straight-forward process, again, both political and ethical issues must be taken into consideration during this stage of the process. The consultant must be committed to sharing all feedback—both positive and negative results—because that is the only way the client will grow in the long run. “…special problems develop when one is aware of certain information and contemplates the possibility of withholding it. In some situations, it may be both morally and politically judicious to withhold information (i.e. confidential information from employees), but in other situations the decision is not easy) (p. 132).

Step 20 and 21 of the model describe the process of terminating the agreed upon strategy and discussing future actions. There will come a time when the strategy that a consultant has implemented has been exhausted. While many consultants see “certain actions need to be implemented, there may be a tendency to make it part of the present strategy rather than making a new proposal,” this is not always the best option (Smeltzer, et. al., 1984, p. 132). When the agreed-upon program is completed, the consultant should evaluate the effectiveness of the program with the client. At that time, if either party feels as if there is more work to be done, the client and consultant must make the decision whether to continue the relationship, at which point a new proposal should be written by the consultant (Steps 22, 23, and 24) (p. 133). If the client and consultant agree to continue the relationship, the consultant should be aware that he or she will likely face many of the same problems, but on a different level. “In fact, some of the questions become even more complicated as the relationship between a client and consultant grows and develops” (p. 133). If the relationship is terminated, materials should be returned to either the client or consultant based on prior determinations. Decisions pertaining to the use of materials and ideas after the client-consultant relationship has ended should be determined prior to the implementation of the program.

Conclusion

In the consultant-client relationship, there will always be instances where ethical and political issues must be taken into consideration. These considerations can lead to a strong relationship between the consultant and the client, as well as the successful implementation of the strategy, supported by objective results. However, making the wrong decision, or a decision that is not ethically or politically sound, can lead to a weak consultant-client relationship and a failed strategy. That said, even when ethically and politically sound decisions are made, there are times when the consultant-client relationship must be terminated due to a difference in ideas about where the organization should go; disagreements about the level of dependency, involvement or ownership of the organization or the strategy; or at times, simply because the contract has come to an end. Regardless of the end result, it is imperative that the consultant make a valiant effort to continuously make ethically and politically sound decisions throughout the entire relationship with the client to ensure optimal results.

Reference

Smeltzer, L., Watson, K., & Barker, L. (1984). The communication consultant/client relationship: An analysis of ethical and political issues. Communication, 13(1), 125.

Optimizing Social Media

2011-03-01T09:53:00.000-08:00

Great video on social media.

Managing Ethical Dilemmas

2011-02-15T06:16:00.000-08:00

In the day-to-day operations of a business, all leaders are faced with ethical issues. Ethical issues range from determining which employees deserve promotions to more complex issues, such as serving a client with a potentially unethical request. Regardless of their complexity, all ethical issues that arise in the workplace should be carefully examined, and handled with care, as the determinations of these ethical issues can lead to the growth or demise of a company.

Critical Thinking and Emotion

While some dismiss emotion when processing moral dilemmas, emotion is intrinsic to the ethical decision process. According to theorists Gaudine and Thorne, “Emotion is often a non-essential aspect to the ethical decision process that is best ignored, if not controlled, as it interferes with logical, rational ethical decision process…but emotions should not be ignored as irrational biases to a rational ethical decision process, but attention to ones emotions may result in a better ethical decision.” While the consideration of emotions is not the only necessary aspect of the critical thinking process when working through ethical problems in the workplace, including emotions in this process actually strengthens the cognitive analysis of ethical dilemmas.

Ethics, Credibility and Relationships

Ethically sound leadership is directly correlated to increased credibility and stronger relationships within organizations, as strong ethics result in increased credibility, which then builds lasting relationships with team members. Treating employees and situations in an ethical manner will help leaders gain credibility and build stronger relationships. Many theorists believe that “late stage” managers are actually more ethical than their less developed counterparts, and these late stage managers and entrepreneurs develop their own ethical systems based on the varying interactions and environmental changes, rather than holding steadfast to a particular way or formula for coping with workplace dilemmas. As managers move through developmental stages and become more ethical, the community is strengthened, which can also be interpreted as the key component of unity within strong organizations.

As credibility is increased, the building of strong relationships naturally follows. Organizational leaders who are perceived to have a high level of credibility are admired and respected by their constituents. This increased credibility of leaders also makes the admiring constituents feel more worthy, and feel as though they are valued. This sense of being valued leads to increased loyalty and a strong relationship between leaders and their constituents. Therefore we can see how sound ethics leads to increased credibility, which leads to relationship building. Rather than acting as tyrant, ethical leaders create a collaborative environment and a feeling of being a part of a team for all members of the organization, regardless of rank or position. It is a continuous cycle. If one aspect is missing—ethical behavior, credibility or relationship—it will be very difficult for the other aspect to exist.

Understanding Leadership: Integration of the Five Frames for Effective Leadership

2011-02-01T05:37:00.000-08:00

Frameworks are used to understand organizations, and to find the best way to operate the organization, its structure, and resolve various issues that arise. The five organizational frames are the rational frame, the human frame, the systems frame, the political frame, and the cultural frame. It is imperative to understand that when organizational leaders integrate all five frames, they can successfully solve organizational dilemmas.

The Rational Frame

The first principle of the rational frame is the organization is an instrument for the achievement of specific goals. The second principle of the rational frame asserts that every organization has an optimal structure and process, and in order to achieve this, the organization must incorporate differentiation and integration. Differentiation can be achieved by dividing responsibilities within the organization. The third and fourth principles of the rational frame blame inefficient structure for organizational problems, and state that reorganization can often solve those problems.

The Human Frame

As its name implies, the human frame focuses on how human needs affect organizations. The first principle of the human frame is that the organization is the vehicle for satisfying healthy human needs. Maslow’s Hierarchy of Needs is an integral part of the human frame. Just as a person whose physiological needs are not met cannot focus on needs of belongingness until his or her basic needs are met, the people within an organization, and the organization itself, operates in a similar way. On the organizational hierarchy of needs, increasing productivity and making a profit would be a basic need to survive. As organizations progress, ethical needs would be further up on the hierarchy of needs. Rather than simply questioning whether something is profitable would no longer be sufficient for someone who was looking at the situation from the human frame. The second principle of the human frame places the emphasis on the codependent relationship of the individual and the organization. The third principle of the human frame states that the needs of healthy people and the goals of functional organizations must be integrated in order for both to be productive. The fourth principle of the human frame is based on the concept of McGregor’s Theory X and Theory Y, which states that employees act the way they believe they are perceived by their managers—a self-fulfilling prophecy of sorts.

The Systems Frame

The main focus of the systems frame is the relationship between the organization and its surrounding environment, whereas the organization adjusts to its surroundings. Due to this adjustment to the surrounding environment, there is never an absolute resolution to a problem, because the environment is constantly changing.

The Political Frame

All four principles of the political frame of reference address how organizations operate as a functioning unit within society. The first principle of the political frame states that the organization is bounded by the allocation of scarce resources. In this case, a leader viewing the organization’s dilemma from the political frame may view articles as a scarce resource. The second, third, and fourth principles address the differing beliefs of organizational members, negotiation that is necessary due to these differing beliefs, and the necessary conflict within organizations. Leaders viewing situations from this perspective would recognize that people within organizations are bound to perceive situations differently and for differing reasons. It is likely that these leaders would realize that internal conflict can lead to results by testing and refining ideas which would lead to discussion, and a possible compromise.

The Cultural Frame

The cultural frame addresses the way the actual organization can define problems and offer solutions based on the existing culture of the organization. The four principles of the cultural frame state that meaning is constructed for participants through organizational culture, that culture consists of the beliefs of these participants, and is reflected in behaviors and norms, and the group’s behaviors are due to learned responses based on that culture. Based on the aforementioned principles, a leader who is guided by the cultural reference frames does not make decisions that he or she feels is best for the organization, but to the contrary, the culture of the organization says what works in the specific environment.

In conclusion, effective leaders must integrate the perspectives of all five frames. Managers and entrepreneurs who approach organizational dilemmas using only one approach actually hinder organizations. When leaders do not balance the five frames, they become disconnected from the issue at hand and those who they lead. Integrative leaders combine various management styles and theories, rather than just choosing one.

What Investors Really Want to Know

2011-01-17T06:46:00.000-08:00

Whether you have been in business for ten years or ten days, approaching potential investors is all about selling yourself. You may have the best product on the market, or a revolutionary service or idea, but if you do not effectively explain what investors really want to know, your chances of obtaining funding for your start-up business or expansion project are slim to none.

To increase your business’ chances of obtaining funding, provide the following pertinent information about your business in all materials you provide to the investors, including the business plan and funding request letter:

Strength of Management—Showing the level of expertise of the owner(s) and managers can help put the lender’s mind at ease, and increase your chances of getting funding for your business; which is especially imperative for start-up businesses.
Strength of Brand—Showing proof of an established, strong company brand is critical in this process. A company Web site with traceable traffic generation information, evidence of discussion of your products or services and company on online forums, or other proof of market awareness of your brand can strengthen the lender’s confidence that your company will flourish. In some cases, company brands can be used as collateral, if deemed strong enough.
Business Strategy—Development and showcasing of a sound business strategy will show your potential lenders that you business has direction and sustainability. The only way lenders can picture where your business will be in the next 5, 10 or 20 years is if you show them.
Target Market—You must effectively convey the fact that you know whom your target market is for your business’ products and/or services. Your business can offer the most revolutionary products or services, but targeting these products and services to the wrong niche market will lead to the inevitable demise of your business. Conduct thorough research to determine the demographic information for your target audience. Potential lenders will trust that this will be a common practice for your business in the future, which will enable you to keep up with changing markets—leading to the longevity of your business.
Competition—Just as in the case of understanding your target market, if you show your potential lender that you understand who your competition is, the lender will believe that you will consistently conduct research to keep up with industry trends, and offer cutting-edge products and services to contend with top competitors.
Big Name Clients—Having well-known clients in your repertoire simply means that it will be easy for your company to continue to consistently attract more companies of similar stature.
Innovation—Supplying the same products and services to crowded markets is the best way to have a business that never quite gets off the ground. Develop innovative products or services that will ensure new clients (and lenders) will come flocking to your business.
Intellectual Property—Along with innovation, showing actual ownership of a product design or service idea will further demonstrate that your company will be bringing something new to your particular industry or market, which increases the long-term stability of your company.
Recommendations—If other financial institutions and businesses trust your business, lenders will be more apt to trust your business as well. Slipping in a few solid recommendations could be the difference between an approved application and a denied application.

Managing Organizational Conflict

2010-12-20T20:51:00.001-08:00

Despite the size of an organization, product or service offered, or whether the organization is a non-profit or for-profit business, there are an array of challenges that can (and likely, will) affect every organization at some point. Organizational conflict is inevitable, but conflict can potentially add value to the organization and its members by testing and refining ideas. The key is to be prepared for these challenges and have a plan of action in place to handle them if and when they do occur. Potential organizational challenges include conflict that arises between co-workers, employees and managers, as well as employees and the organization as a whole (disagreement with organizational values and/or structure). The most effective way to handle organizational conflict is to have a dispute resolution system in place prior to the occurrence of any conflict. Everyone in the organization should be made aware of the dispute resolution system and how it works.

Dispute Resolution System

One of the most important aspects of an effective dispute resolution system is inclusiveness. A dispute resolution system should include all members of the organization—from the CEO to administrative assistants to the sanitation staff. Organization members should also be reminded that no one is exempt from dispute resolution so everyone feels as though they can solve disputes with employees at every level within the organization. Most dispute resolution systems involve some sort of mediation.

Before conflicts are brought to the attention of management, self-mediation between conflicting parties should be strongly recommended. Employees can often resolve conflicts themselves when discussed on a formal platform. If self-mediation does not resolve the conflict, upper management should begin the dispute resolution process. Regardless of the intricate details involved in an organization’s dispute resolution system, the first step to resolving conflict is identifying the cause of the dispute. Instead of focusing on smaller issues, those in charge of the mediation process should attempt to uncover any deep, underlying issues that may be at the core of the conflict, such as varying communication styles, jealousy, prejudices, etc. If the conflict can be resolved by referencing the company policy, conflicting parties should be notified of the company policy, and be formally reminded of the policy and how it relates to the conflict at hand. Otherwise, an uninvolved third party should act as a mediator for the conflicting parties. The mediator should remain neutral at all times, and simply facilitate the discussion between the conflicting parties, ensuring that each party is given an opportunity to voice their opinions about the matter at hand. A record of all mediation sessions should be kept. Upper management should also be kept abreast of the resolution status.

Avoiding Conflict

Many challenges that organizations experience are due to the organization’s lack of valuing its own diversity. Whether that diversity is present through different cultures, sexes, or generations, organizations must learn to value the unique perspectives and contributions of all of its members. All too often organizations continue to approach situations in one particular way, because that is the way that it has worked in the past or the way it has always been done. Valuing employee input can help strengthen organizations—management just has to be open. Creating an environment where employees feel like they have a voice and a real purpose within the organization can help avoid conflict and result in a thriving organization.

A Fact Sheet on the Fair Labor Standards Act

2010-12-15T19:22:00.000-08:00

If you have employees, it is critical that you are always abreast of current labor laws. Employees should be aware of labor laws for protection purposes as well. To learn more about the Fair Labor Standards Act, read more in an article written by yours truly.

5 Ways to Boost Your Productivity

2010-12-01T12:36:00.000-08:00

Productivity levels are a common topic of discussion for businesses of all types and sizes, because productivity impacts a plethora of other aspects of business, including the bottom line—profitability. Increasing personal productivity levels can help secure your job position, get you promoted to the next level or help your business flourish if you are an entrepreneur; but sometimes that is easier said than done. Check out the following steps for easy ways to increase your productivity.

Optimize your schedule. Most people have a certain time of day when they are more productive than others. Whenever possible, try to schedule the time when you work alone on projects and various tasks during your highest period of productivity. For instance, those who love the morning should try to leave mornings open, and schedule the bulk of their meetings in the afternoon. Although the morning person will need to be productive all hours of the workday, he or she can also boost productivity for the afternoon by being extra productive during the morning hours (ie. brainstorming a list of talking points/ideas in the morning to increase productivity during afternoon meetings).
Prioritize your “to-do” list. Have you ever had a day where you were seemingly extremely busy, but accomplished nothing of substance at the end of the day? Prioritizing your “to-do” list can help eliminate this all-too-common problem. By prioritizing your list, you will complete the most important tasks first, and the less important tasks if you have time remaining in the day. Prioritizing you list will also make sure you are not tempted to complete easy tasks on your list first, which typically leaves more complex (and important) items for the following day, week or even month.
Get rid of distractions. Email, telephone calls and other distractions are a necessary part of doing business. However, these distractions can severely decrease productivity levels. Designate a set time for answering emails and making telephone calls each day. Of course, you may want to answer incoming telephone calls as they come in, but setting a specific time to respond to emails or missed telephone calls will enable you to work on tasks with virtually no interruption. Working without distractions eliminates constant starting and stopping of tasks that can make it difficult to complete anything of real substance. If you work in an office setting, let your co-workers know when you prefer to have “Do Not Disturb” periods so you can concentrate on important tasks, making it clear that you are available for emergencies or important last-minute issues that arise.
Delegate tasks. Although some of us would like to think we are, no one in your office has the title of Super Man or Super Women—so stop trying to do everything by yourself. If you have a task that would be better completed by someone in another department within your company, or by multiple people, rather than just you, don’t be afraid to say so. Delegating tasks can help you feel less overwhelmed and increase overall productivity.
Change the words “have to” to “get to.” Believe it or not, changing the way in which you view your daily tasks can actually help increase your productivity. If you approach all of your daily “to-dos” with a positive outlook, you will look forward to completing them, and possibly complete them in a timelier manner. Rather than “I have to complete these marketing brochures,” say “I get to complete these marketing brochures.” Automatically, your mind will be taken to a place where you see the endless opportunities and future growth that your business will experience through the completion of your sometimes-tedious tasks.

J. Mariah Brown is the owner of Writings by Design, LLC. To learn more about how Writings by Design, and our extensive business writing and administrative services, please visit us at www.writingsbydesign.com, email your question to inquiry@writingsbydesign.com or call 866-937-2361.

Traits of Successful Entrepreneurs

2010-11-16T08:45:00.001-08:00

Millions of people spend an insurmountable amount of time trying to get out of the rat race. Whether you are s six-figure salary earner or a struggling waitress making minimum wage, the simple fact is, the only way to gain true wealth is through self-sufficiency—in other words, the obtainment and maintenance of your own business.

Entrepreneurs are made from a different stock than their “9-to-5” counterparts. While gumption is a trait that must be present for all successful business people, entrepreneurs must be go-getters on a new level to experience true success and longevity—especially in a sub-par economy. If you think you have what it takes to be an entrepreneur, read the following to see how your characteristics match up. When you are finished, check out the U.S. Small Business Administration’s (SBA) Assessment to determine whether you are ready to start your own business.

Patience to Weather the Storm

Most people would agree that the majority of the good things in life take time. That said, how will you know if you’ve put in enough time and effort into your business where you should be experiencing profitability and growth? According to the U.S. SBA, the majority of small business owners do not make a profit until their fifth year in business—that’s if you make it to your fifth year, as 95 percent of small businesses close within the first five years. Are you willing to wait five years or more to see a profit? How will you sustain your lifestyle in the interim?

What about the lucky few businesses that experience profitability almost immediately? Whether it is due to low overhead costs or a revolutionary business idea, if your business makes money from the beginning, congratulations! While this is a great accomplishment, all roads to success, no matter how short or long, have dips and valleys. Successful entrepreneurs must be prepared to handle slow periods and should have a sound plan to do so.

Having an Extrovert State of Mind

While it is not necessary for entrepreneurs to be true experts, for the purpose of launching a business, having an extrovert state of mind can be beneficial. This simply means that you must be willing to spread the word about your new business through networking. While you may plan to use expensive advertising and elaborate marketing techniques, nothing is proven to be more effective than good old fashioned word of mouth. Even in the beginning stages of your business (before you are ready to sell anything), making an effort to network with key players in and outside of your community is critical. You never know who you might meet that could possibly springboard your business to success. If you are proud of your new business, why not shout it from the rooftops?

Flexibility

Having a solid plan is critical to success, so you have a step-by-step guide to lead you through business operations. These plans come in the form of business plans, strategic marketing tactics and public relations strategies. However, successful entrepreneurs must be willing to deviate from those plans when necessary. Just because a tactic has worked in the past, doesn’t mean it will be successful the next time around. Responsible entrepreneurs know the importance of monitoring the effectiveness of all tactics utilized, so they can abandon the less-effective tactics at a moment’s notice.

Passion

Lastly, you must have a true passion for your small business. Without passion, walking away when the journey gets a little rough will always be an option. Passion will also create an inner sense of optimism that is essential for all entrepreneurs. After all, if you don’t believe in what you’re doing, who else will? While it’s wise to always have an exit plan, it should be your last resort, not amongst one of the first options. Only those with passion will last through the storm, and reap profits on the other side.

Your Basic Guide to Understanding Search Engine Optimization

2010-11-01T10:43:00.000-07:00

Search engine optimization, commonly abbreviated as SEO, has become a buzz word across all industries in the last few years. SEO is a process of making your Web site search engine friendly to help drive traffic to your site. This means that when users enter certain keywords into the search function of search engines such as Google and Yahoo, a link to your Web site or article will appear if you have properly optimized your site or article. You can optimize your business' Web site, as well as place strategically-written SEO articles on other Web sites to draw traffic to your Web site. Before you can successfully utilize SEO, there are a few steps you should take to make sure your efforts pay off.

In order for SEO to work properly, your site must be written using HTML or PHP mark-up language (the weird text you see when you look behind the scenes of a Web site). Each page of your site or article must meet specific standards to be correctly indexed so users can easily locate your site or article. Your first step is to make a list of target keywords if you have not already done so. Your list should contain descriptive words about your business and the services or goods you provide. For example, if your business is Tommy's Speedy Car Wash in Columbus, Ohio, your target keyword list may resemble the following:

Tommy's Speedy Car Wash
Car wash
Quick car wash
Cars
Car washes in Ohio
Columbus, Ohio car wash
Car detailing
Polish
Buff
Coupons
Etc.

After you have completed your target keyword list, make sure you heavily use these words throughout each page of your Web site (at least every 90 words), or frequently throughout each article (appearing approximately every 150 words).

Now we'll move onto working with the HTML code of your site. Your next step is to examine the page titles of your site. Your title should be relatively short, to the point and effectively describe what actually appears on each page. Try to incorporate words from your targeted keyword list whenever possible, unless it results in an awkward-sounding title. An example of a page title for Tommy's Speedy Car Wash would be: "Tommy's Speedy Car Wash Coupons."

The next step to optimizing your site is to place "description" and "keywords" metatags in the head of each Web page. Each page should have a different tag. An example of this is as follows:

Description: "supplier of quality car wash and detailing services at discount prices"
Keywords: "car wash, detailing, quick, discount"

The next step in the process is to incorporate heading tags in your Web site's HTML code. Many search engines place the most emphasis on heading tags, so it is critical to use words from your target keyword list for this step. Place one "h1" tag on each page next to the most important keyword. Use subsequent head tags ("h2," "h3," etc) to support the main heading, and draw additional hits to your site from supporting keywords:

h1 - Car wash
h2 - Quick Shine Car Wash service

As previously stated, the text of each page of your Web site, or article should contain words from your targeted keywords list. Additionally, try your best to incorporate words that people may commonly enter when searching for a business of your type. For instance, when searching for a car detailing service provider in Columbus, Ohio, someone may enter "quick and affordable detailing service in Columbus, Ohio." You may want to place "get quick and affordable detailing services" in a few places on your site to help drive traffic to your site when someone is searching for that specific term. Be careful to strategically place your keywords and search terms throughout the text so you ad copy does not sound unnatural.

J. Mariah Brown is the owner and editor-in-chief of Writings by Design, LLC. Mastering SEO can be a little confusing when you first begin. If you need help navigating through the process, or if you would like to learn more about SEO and how you can quickly and inexpensively drive traffic to your company Web site, email Writings by Design at inquiry@writingsbydesign.com, call us at 866-937-2361 or tell us more about your goals or future project at http://writingsbydesign.com/contact_us.

Preparing Your SBA Loan Application

2010-10-28T08:56:00.001-07:00

If you need a business plan to jump start your company's funding initiative, contact Writings by Design today!

Small Business Administration Certifications

2010-10-14T13:30:00.001-07:00

There are two great assistance programs available to small business owners through the U.S. Small Business Administration (SBA) that could help give your business the boost it needs during tough economic times. The assistance programs, the small disadvantaged business (SDB) certification program and the 8 (a) business development program, can be an asset to any type of business, regardless of length of operation. In addition to increased funding and training, becoming classified as an SDB or 8 (a) business can substantially increase your chances of receiving government grants or federal and state contracts.

The first step in becoming certified is to understand what a small business is, and then you must know the difference between each certification/classification. According to the SBA, a small business is defined as an independent business having fewer than 500 employees, although the definition used for government programs and contracting varies by industry. If you qualify as a small business, in order to receive SDB or 8 (a) certification, the owner of the business must be economically and socially disadvantaged. However, the key difference between the two classifications is the owner’s personal net worth (I’ll talk about this more later).

In order to be considered socially disadvantaged, the owner must “have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group,” according to the SBA. Typically small business owners who are Hispanic, Native American, Asian or African American meet this requirement. There is also a broad statement saying that “other individuals can qualify if they show by a preponderance of the evidence that they are disadvantaged.” Due to this rather ambiguous language, many women small business owners can be considered socially disadvantaged as well if they can prove that they have been a victim of long-term gender-based discrimination. For example, if a woman faced discrimination from professors and administrators at a military college due to the fact that she went to a predominately male school, she could claim that the discrimination hindered her ability to form a business later in life. Women who have previously filed sex discrimination cases are more likely to be able to qualify as socially disadvantaged. Contrary to popular belief, White males are also not excluded from the “socially disadvantaged” group. If a White male has a disability or is handicapped in any way, there is a possibility he could qualify as socially disadvantaged. Those suffering from mental health issues, such as depression, or those who may feel as though they are socially disadvantaged due to religious preference could qualify, but must prove that they were discriminated against solely for those reasons.

Now that you know whether you would be considered a socially disadvantaged individual, you must figure out if you can also classify as an economically disadvantaged individual. This is where the difference between SDB certification and 8 (a) business certification comes into play. Small business owners can qualify for SDB certification if their personal assets are worth less than $750,000. If a small business owner’s personal assets do not exceed $250,000, he or she can qualify for the 8 (a) business development program. Please note: The SBA does not consider home equity as a personal asset. If a business is classified as an 8 (a) business, it is automatically SDB certified. However, all SDB businesses are not 8 (a) businesses due to the personal asset qualifier.

If you believe you qualify for either the SDB or 8 (a) SBA programs—or both—do not hesitate to apply to the programs. For more information, visit www.sba.gov.

To learn more about how Writings by Design can help your business apply for funding or certification programs, or connect with customers, clients and other key stakeholders, please visit us at www.writingsbydesign.com, email your question to inquiry@writingsbydesign.com or call us at (866) 937-2361.

Annual Evaluations

2010-09-27T08:09:00.000-07:00

The end of the fiscal year is a primary time for organizational evaluation. Whether you have a start-up operation and have been in business less than a year, or are a veteran; annual evaluations are not only beneficial to all organizations, they are a necessity.

During an annual evaluation, you want to assess your entire operation. First, start by examining your annual revenue against your cost of doing business. Were your profits as high as you had expected or hoped they would be? If not, why didn’t you make as much as you wanted to? Was it due to a lack of or faulty marketing efforts? Did you lose customers or clients? Did you spend too much time and money training employees with a high turn-over rate? If profits were higher than expected, first take a moment to celebrate your good fortune; then get back to business. Why were profits so high? Did you gain an unexpected amount of customers or clients? Did you efficiently train employees, and therefore had a low turn-over rate? Did you increase free publicity through effective public relations efforts?

After examining your revenue, move onto your organizational structure. If you planned well from the beginning, your structure should be fairly flexible to meet the current needs of your business, while having room to grow as your business matures. Do you have enough employees to meet current demand? Do you have too many employees? Are the current positions meeting organizational needs? For instance, a company may have a Human Resource Director and a Human Resource Assistant. As the company expands and begins to receive more business, it may be necessary to incorporate a Project Coordinator. Rather than hiring someone new, the Human Resource Assistant can probably make a very good Project Coordinator (during the annual review the company discovered that the Human Resource Assistant did not have a lot of work to do). Moving employees rather than hiring new ones can help your organization save time and money. Sometimes a change in title and scope of duties for one employee is all an organization needs to do to substantially increase productivity for the entire operation. This is also a great time to conduct individual employee evaluations.

At the end of the day, most businesses have the end-goal of growth. What did you company do in the last year to expand? How are you staying in touch with new and loyal customers and clients? How are you reaching people who may have never heard about your business? What is your current publicity/marketing strategy? How much time are you spending executing it? Based on your answers, should you consider outsourcing?

While product quality and assurance should be an on-going process, a year-end evaluation should also include an assessment of your company’s products and services. How do your products and services match up to the competitions’?

It is important to take note that whether the news is good or bad, you must always search for the reason why in your annual evaluation. If your company performed poorly, you will need to understand what went wrong so you can fix the problem. If your company had a stellar year, you will also want to have a thorough understanding of why so you can repeat and improve on those results for the next fiscal year. Once you discover what your company did right, and what went wrong, take the time to make a new plan for the upcoming fiscal year. This is a great time to bring out your business plan as well and make any necessary revisions.

To learn more about how Writings by Design can help your business connect with customers, clients and other key stakeholders, please visit us at www.writingsbydesign.com, email your question to inquiry@writingsbydesign.com or call us at (866) 937-2361.

Effectively Utilizing Computer Mediated Communication for Your Business

2010-09-23T15:26:00.000-07:00


Knowing when you should make a call versus email is critical.

Computer mediated communication (CMC)—communication through the use of technology, such as text messaging, social media Web sites and so on—enables businesses to easily and quickly distribute messages to the masses. I love technology, and am always the first to purchase little gadgets and software to make business (and life in general) flow a little easier. I do, however, realize that there are certain key aspects that are missing when I choose to send an email to a client rather than picking up my phone and calling; or better yet, meet in person for a face-to-face meeting.

While some experts argue that CMC can sometimes help people develop deeper relationships than that of face-to-face communication, I beg to differ. Face-to-face communication is a complex process, in which physical markers and non-verbal cues greatly affect the receiver’s interpretation of a message—that is what makes it unique. Even when a genuine connection is seemingly made through CMC, that connection can quickly dissolve unless the communicators attempt to transition to face-to-face communication.

The critical error is perceiving one form of communication—either face-to-face or CMC—as “better” or “worse” than the other. In order to truly master effective communication in both face-to-face and CMC situations, we must realize that both serve different purposes and must be treated as such. There is a time and a place for email; situations where video conferencing is appropriate and times when text messaging is OK. Although the three aforementioned forms of communication are CMC, they still are very different—just as when comparing face-to-face and CMC. Methods of communication are vehicles for various messages. Sometimes it is better to take the scenic route on a train (traditional hand-written letter), even though I may be able to get to my destination a little faster on a plane (email); it just depends on the overall experience I wish to get from the communication (and the experience I would like the receiver of the message to have as well).

While technology has made staying in nearly constant contact with customers and clients, as well as potential customers and clients, a breeze, never forget the importance of face-to-face communication. Depending on your type of business, this may be more difficult for some than others. If you sell a product from a physical store, it will be much easier for you to make a connection with customers via face-to-face communication. On the other hand, if you are a business-to-business supply company, or sell services or products via the Internet, you may have to be a little creative. Physical distance can make meeting with clients in person rather difficult. If you are unable to periodically meet with clients in person, video conferencing tools can help you personify your organization and make a true connection with clients—which will inevitably lead to the increased longevity of your business.

J. Mariah Brown is the owner of Writings by Design, LLC. To learn more about how Writings by Design can help your business connect with customers, clients and other key stakeholders, please visit us at www.writingsbydesign.com, email your question to inquiry@writingsbydesign.com or call us at (866) 937-2361.

Why keeping up with the Joneses can be detrimental to your business

2010-09-14T12:02:00.000-07:00

Unique tactics set your business a part from competitors.

Monitoring the strategies and tactics utilized by your competitors is necessary in the process of developing your company’s unique strategy. Evaluation of competitors can help your company stay abreast of various industry trends, which can help you meet your customers at the point of need. Examining different techniques used by similar companies, as well as increased or decreased sales and popularity during the time that the tactic was used can help you gauge whether similar techniques may be of value for your company as well. However, when developing your marketing and publicity campaign strategy, be careful not to completely mimic the tactics used by your competitors.

For instance, if you are planning to open up an ice cream shop and found that the ice cream shop down the street experienced increased media exposure after it hosted a free lunch-time ice cream social for workers in the area, it would not be wise to do the same ice cream social/free giveaway type event. First of all, no one likes a copy cat. The public and the media can see right through a business that does not really have anything unique to offer. While it is true that everyone loves to get something for free, at best you may get a few people who stop by to grab a free ice cream cone and leave. The media surely will not cover an event that has been done before, so rather than reaching the workers and the entire coverage area of the news station that covered the story as the original ice cream store had, your exposure will be limited to those who pass by; not to mention the added cost of providing tons of free ice cream with little if any return in generated publicity. Even if your ice cream is better than your competitor’s, you may experience less than stellar results for using an old idea.

Aside from not producing the desired results, there are other, more severe consequences to not developing a solid marketing and publicity strategy that is unique to your company. The fact is, all companies are different. While it may seem that two ice cream shops that are a block a part with similar products, pricing and customers could successfully utilize practically the same plan, there are many other factors that affect the success of tactics that must be considered.

In my aforementioned scenario I did not mention how long the first ice cream shop had been in business. If the shop was well established, chances are the company has loyal customers that would turn out for almost any event. It may not be as easy to get those same customers to come to your new ice cream shop. It is also possible that the ice cream social coincided with a company anniversary or other unique milestone, which may generate more attention from the media than the opening of your ice cream shop. Longevity often wins over something new, unless your business idea is truly unique (an ice shop is typically not considered a revolutionary idea). In addition to knowing the circumstances under which a tactic was successful, it is also important to take note of when the tactic was successful. Maybe the ice cream social was held prior to the construction of a shopping mall in the area. Now that the mall is near, a lot of workers use their lunch break to shop, so hosting an event during lunch may not be a great idea—even if it is free.

In the end, trying to keep up with the Joneses, or doing everything your competition does, can be detrimental because all businesses are unique. Find what makes your business special and use your tactics to draw attention to your strengths. If you are a soccer-mom-turned-business-woman and are new to the ice cream business, capitalize on what you know. How about offering a play place or noon story and ice cream hour for parents and children who visit your shop?

Learn how Writings by Design can help you develop and execute a strategic marketing and publicity campaign that is unique to your company.

Increase Your Bottom Line with Writings by Design

2010-08-23T06:32:00.000-07:00

Writings by Design, LLC, is a business writing consulting firm, offering targeted, cost-effective products and services to meet the operational needs of various businesses. We specialize in business development, client outreach and promotion, and strategically generate publicity using proven methods, including but not limited to, Web copy revitalization, blog creation and maintenance, article construction, newsletter compilation and distribution, business plan and proposal writing, ebook/ghost writing and editing services that will help your business reach its target audience and key stakeholders. Tell us about your project today!

Learn how Writings by Design can provide cost-effective solutions for all of your business communication needs. Our Annual Summer Sale is still going strong! You won't want to miss it!

About Writings by Design

Writings by Design was founded by J. Mariah Brown, an experienced technical research writer and public relations practitioner who has worked in an array of industries including, but not limited to, Non-Profit, Language Services, Health and Wellness, Legal and Energy Conservation.

Writings by Design helps businesses deliver custom writing products to customers, create a strong online presence to generate publicity and increase membership/customer base by strategically connecting with key stakeholders, program participants, investors, customers, clients and other interested parties in a more direct manner by personifying organizations.

This is accomplished through the development of articles, press releases and case studies; the creation of customized online publications; search engine and social media optimization and other cost-saving strategies and methods. Writings by Design adheres to the strict ethical codes set forth by the Public Relations Society of America and the Society of Professional Journalists.

Sample Business Funding Request Package

2010-08-16T12:05:00.000-07:00

Providing lenders with a sound, well-constructed funding request letter is a critical step in the business funding process. Your funding request package should contain a letter of inquiry, a proposal cover letter and the actual proposal. See the following examples of key components in a funding request package:

Letter of Inquiry

Busy executives do not always have the time to read your full proposal. To increase your chances that your proposal is read in a timely manner, write a strong letter of inquiry to peak the reader’s interest.

Sample Letter of Inquiry

Proposal Cover Letter

The proposal cover letter will further demonstrate why your company’s venture is of value to the lender. Leave the extensive details for the proposal. Use the letter as a brief outline of what the lender can expect in the proposal, as well as a very brief overview of your company and vision.

Sample Cover Letter

Proposal

In the initial stages of the proposal review, it is likely that executives will “browse” through your proposal. Since you do not have control over what is viewed first, it is critical to make sure all aspects of your proposal are equal in strength and effectiveness. Include the following information in your proposal:

Company overview (history, products, services, clients served, niche market, competition, brand)
Company need
Business strategy—introduce how funding will help this strategy
Solution (funding in more detail)
Funding initiative objectives
Strategic outline/schedule of implementation
Allocation of funds
Business funding history (if applicable)
Letter(s) of recommendation

Composing a Funding Request

2010-08-09T10:41:00.000-07:00

Composing an effective funding request is a critical aspect of the process of obtaining funding for your business. Regardless of the level of perceived success you have of your business, top-level clients you have or wish to cater to, or how many innovative products or services your business will offer, potential business partners, lending institutions or other financial providers will not be aware of these factors unless you effectively convey this information in your proposal.

Your goal is to make whoever reads your proposal understand that your business is different from the millions of other start-up businesses or business expansion projects out there. This can be achieved by providing pertinent information in regards to the following:

Strength of Management—Showing the level of expertise of the owner(s) and managers can help put the lender’s mind at ease, and increase your chances of getting funding for your business; which is especially imperative for start-up businesses.
Strength of Brand—Showing proof of an established, strong company brand is critical in this process. A company Web site with traceable traffic generation information, evidence of discussion of your products or services and company on online forums, or other proof of market awareness of your brand can strengthen the lender’s confidence that your company will flourish. In some cases, company brands can be used as collateral, if deemed strong enough.
Business Strategy—Development and showcasing of a sound business strategy will show your potential lenders that you business has direction and sustainability. The only way lenders can picture where your business will be in the next 5, 10 or 20 years is if you show them.
Target Market—You must effectively convey the fact that you know whom your target market is for your business’ products and/or services. Your business can offer the most revolutionary products or services, but targeting these products and services to the wrong niche market will lead to the inevitable demise of your business. Conduct thorough research to determine the demographic information for your target audience. Potential lenders will trust that this will be a common practice for your business in the future, which will enable you to keep up with changing markets—leading to the longevity of your business.
Competition—Just as in the case of understanding your target market, if you show your potential lender that you understand who your competition is, the lender will believe that you will consistently conduct research to keep up with industry trends, and offer cutting-edge products and services to contend with top competitors.
Big Name Clients—Having well-known clients in your repertoire simply means that it will be easy for your company to continue to consistently attract more companies of similar stature.
Innovation—Supplying the same products and services to crowded markets is the best way to have a business that never quite gets off the ground. Develop innovative products or services that will ensure new clients (and lenders) will come flocking to your business.
Intellectual Property—Along with innovation, showing actual ownership of a product design or service idea will further demonstrate that your company will be bringing something new to your particular industry or market, which increases the long-term stability of your company.
Recommendations—If other financial institutions and businesses trust your business, lenders will be more apt to trust your business as well. Slipping in a few solid recommendations could be the difference between an approved application and a denied application.

J. Mariah Brown is the owner of Writings by Design, LLC., a comprehensive business writing service company. To learn how Writings by Design can help your company receive funding with an effective funding request, visit www.writingsbydesign.com, email inquiry@writingsbydesign.com or call us at 866-937-2361.

How Can Outsourcing Help Your Company?

2010-08-04T11:42:00.000-07:00

Frustrated? Outsourcing can help!

Reducing overhead costs is the easiest way to save your business money, and therefore increase its bottom line. One of the simplest ways to reduce overhead cost is to eliminate or significantly reduce the utilization of full-time employees. Many companies have realized that outsourcing various services is beneficial in a plethora of ways. Outsourcing, using outside help to complete tasks that are normally performed in-house, is not a new concept, as companies have been utilizing outside advertising firms, accounting companies and distributors for decades. Small- to medium-sized businesses can also benefit from outsourcing other tasks, such as promotional materials, which has been proven to have significant advantages that outweigh monetary benefits—although those are nice as well.

In addition to saving money, outsourcing various marketing and public relations services has many long-term benefits for companies of various sizes and types. Long-term outsourcing benefits are as follows:

Increased productivity and efficiency
Reduced labor costs
Reduced utility costs associated with workplace lighting and computer usage
Reduced equipment costs for in-house staff
Increase company attractiveness to investors—Invested capital will be spent directly making money rather than being poured into expensive salaries.
Specialization—Outsourcing companies are often specialized in a specific area, rather than those who may be completing a project in-house who wear many hats.
Increased competitive edge—Many small- to medium-sized businesses do not have the resources to compete with the in-house staff of large corporations. Outsourcing services provides smaller companies with an edge to compete.
Increased focus on primary business concerns—Outsourcing writing and marketing services means that managers will have more time to focus on primary business operations, such as product development, distribution and sales.

Of course, there can always be too much of a good thing—outsourcing included. Sometimes it may not be wise to outsource all company writing or marketing services depending on the specific circumstances of the company. To avoid outsourcing too much or too little, prior to taking the leap into the world of business-to-business outsourcing, thoroughly evaluate current operations. How much is being produced and at what rate? Could outsourcing help you increase productivity and your company’s bottom line?

Top Five Unique Customer Appreciation Ideas

2010-07-16T13:36:00.000-07:00

Your business is as strong as the loyalty of your customers and clients. Regardless of the quality of your company’s services or goods, minor shifts in the economy can drastically change shopping habits or what other businesses are willing to invest in, in the case of business-to-business sales. One way to ensure that your customer or client base remains constant in the face of an economic downturn is to ensure that you have a strong relationship with your customers. In order to build lasting relationships, your company must convey that you are willing to go the extra mile for their patronage, because you understand that they could easily chose another business.

The easiest way to build relationships is to say “Thank you.” This may sound like a no-brainer, but when was the last time you sincerely thanked customers for their patronage and trust in your company? While it may seem like a small gesture, customers will surely remember how your company went out of its way to show its appreciation, which increases the likelihood of repeat business. Read the following ways to show your customers how much they are appreciated to build strong, lasting customer relationships:

Product/Service Giveaways—Giving away products or services for free may seem counterintuitive for those wishing to make a profit (all of us). However, giving valued customers, or potential customers a taste of what they might receive if they continue or begin their patronage with your company may make them more likely to come back for more. Of course, this must be done strategically, so there must be a plan to properly execute a product or service giveaway. If selling a product, a simple “The first 50 customers in the store receive…” works. For those selling a service, the same idea applies, but instead of offering the giveaway for those who enter the store, the select service could be given away for those who respond to the advertisement.
Have It Your Way Contest—Show your customers you care about what they really what with a “Have It Your Way Contest.” Simply have customers put comments in a suggestion box. At the end of the month, determine which customer suggestion is the most valuable to the company and its customers and implement it as a new policy. Announcing the process will let your customers know that you truly care about their experience and are willing to go as far as changing company policy to ensure that all needs are met.
Special Coupons for Top Customers—Giving coupons away to already-loyal big spenders is a great way to ensure that they will continue to be regular patrons.
Open House—Everyone loves a great party! Host an open house for customers, clients and other key stakeholders to show your appreciation. Open houses also present the prime opportunity to showcase new products or services.
Customer/Client of the Month Drawing—Each time a customer or client makes a purchase, they earn one raffle ticket to be placed in the monthly Customer/Client of the Month drawing. At the end of the month, draw one name from the raffle. The lucky winner can be rewarded with special coupons, company merchandise, or something as simple as a mention in the company newsletter. Either way, he or she will surely feel appreciated.

Public Relations 101: Transparency in Business

2010-06-22T13:18:00.000-07:00

At the end of the day, people are going to do business with people who they feel like they know and trust. While the aforementioned statement may initially seem like a no-brainer, transparency in business is one of the key determining factors for the longevity of a business—yet many still struggle how to accomplish this without saying too much.

So what is transparency in business anyway? Does business transparency mean that businesses must disclose every little detail to current and potential clients and customer? To the contrary, transparency in business is less about how much is disclosed, and more about the frequency of disclosure and the manner in which this is achieved. For instance, if a manufacturer of goods discovers that there may be a problem with the construction of one of its products, obviously the business should immediately inform consumers about the problem. It may not be necessary to tell why the problem exists or how exactly the product reach consumer hands despite quality and assurance checks, as this may induce unnecessary panic. However, it is critical that the company stay in almost constant contact with the consumer during the crisis situation so the consumer feels as though the company really cares about their safety, and not just the company’s bottom line. Depending on the magnitude of the crisis, weekly, and sometimes even daily updates may be necessary.

While the size of the company is often a determining factor in reach, various approaches can be taken to ensure that the proper information reaches consumers in a timely manner during a crisis situation. Press conferences are an option for larger companies, while similar “conferences” or announcements can be made on company Web sites or even sites such as YouTube and Twitter for smaller companies. Announcements via email, newsletters and brochures are always great ways to show consumers the lines of communication are open. Lastly, the distribution of press releases can ensure that your company’s message reaches consumers and other key stakeholders through prime media outlets.

Remember, transparency is more about frequency than full disclosure. Always be sincere and truthful, but be careful to properly construct the message you want consumers to receive—as that one press release may be your only opportunity for redemption.

To learn how Writings by Design can help your company through a crisis, or just keep in contact with stake holders through press release construction and distribution, visit http://www.writingsbydesign.com/, email inquiry@writingsbydesign.com or call us at 866-937-2361.

Understanding Commercial Leases

2010-06-22T13:08:00.000-07:00

The idea of investing in commercial real estate can be daunting—even for the seasoned residential investor. The industry terminology, the differences in funding, and the overall culture of the commercial real estate world can be intimidating, to say the least. While these factors may make your entry into commercial investing a little frightening, don’t let it shake your confidence. In fact, the commercial real estate sector is actually quite strong in many markets—and it is the perfect time for novice investors to join in the game.
If you are planning to invest in a commercial property, leasing the space out can be extremely profitable. Depending on the type of tenants you plan to have, one type of lease may be more attractive than others. Read the following to gain a basic understanding of the various types of commercial leases:

Net Lease: The tenant is responsible for paying the rent in addition to a portion of the maintenance fees, some operating expenses and insurance premiums.
Triple-net lease: This type of lease is most commonly used for tenants of a freestanding building. The tenant is responsible for paying all fees and operating expenses. If you are currently a tenant in this type of lease, it may be wise for you to consider purchasing the property, if the owner is willing to accept an offer.
Gross lease: Similar to a traditional apartment lease, with a gross lease, the tenant is responsible for paying a set rent at a predetermined rate established by the building owner. The landlord then uses the funds from the tenants’ rent to pay operating costs, insurance and taxes for the property.
Ground lease: Also known as a “land lease,” ground leases include the grounds of the property as well as the property itself in the lease. Tenants with this type of lease option must remember that improvements made to the property usually revert back to the landlord at the time that the lease is terminated. This includes new buildings or structures constructed on the property during the lease period.
Shopping center leases: With this type of lease, the tenant is given the lease control. While the tenant is responsible for paying an established rent rate that typically directly coincides with the square footage that is used, they also usually must pay a predetermined percentage of gross sales and a portion of the property taxes. The tenant usually must adhere to strict guidelines about signs and promotion, established traffic areas (especially for businesses with pick-up and delivery services), and the tenant may be moved to a new location within the shopping center at the discretion of the owner.

To learn how Writings by Design can help you construct an effective proposal to get the funding you need to start investing in commercial real estate, visit http://www.writingsbydesign.com/, email inquiry@writingsbydesign.com or call us at 866-937-2361.

Investing in Commercial Real Estate: A New Outlook in an Unpredictable Market

2010-06-22T12:57:00.000-07:00

Contrary to popular belief, the real estate industry has begun to recover in several markets. In the wake of increased government funding, there are prime opportunities available for those in all sectors of real estate—from sales to development to small-scale investments. Now is the time to seize the moment and be on the front end of the wave of innovation.
Prior to the recession, many viewed real estate as a sound investment, regardless of minor downturns or upturns in the market. One could always trust that he or she could count on a strong return on investment—if not immediately, at least within a few years. Due to the current mortgage crisis, investors of all statures have begun to hold on to their money for fear of an unstable market and less than favorable returns, if any were to be received at all. This fear is not only unwarranted and a direct result of misguidance, it actually means that more people are missing out on making some of the most sound investments available in years.

As with any business, there will always be a segment that is up while another is down; and vice versa. While investing in residential properties can still prove to be profitable, as the market has shifted, commercial real estate is on the stronger side of investments. There is a notion that investing in commercial real estate is simply not a viable solution unless one is a seasoned investor—another misconception. Investing in commercial real estate can be a rewarding experience for anyone who is committed to being knowledgeable about the investment, and is willing to gain a laymen’s understanding of how the market works.

Depending on your level of expertise, you may want to consider consulting with a real estate attorney or an accountant prior to taking the plunge into commercial real estate to determine if this is a viable option for you. While attorneys and accountants can be somewhat expensive, this will all be calculated in your return on investment, so you should not skimp on any areas of the deal, as you might later regret it. If you are convinced that this is the approach you wish to take, you can easily consult with your broker’s professional team after you have located a property of interest.

When making the decision to invest in commercial real estate, you must first be aware of two critical factors: the need for flexibility, and the ability to alter one’s plan of action to suit sudden downturns and upturns in various sectors. Never fall in love with a property, or the idea of obtaining the property. If the numbers just are not adding up like you had planned, do not be afraid to walk away from the deal, as your wallet will thank you later. If you are diligent in your search, amazing deals are available every day.

Another added benefit of investing in commercial property in the current market is the availability of funds. The government wants all the help it can get to stimulate the economy back to health. Grant funding is available for small business owners, large business owners, investors, municipalities and just about anyone who can help bring life back to deteriorating neighborhoods, vacant office buildings and so on. All you have to do is look. Don’t be shy about applying, as the more grants you apply for, the greater your chances are of actually obtaining funding for your ideal project.

Remember, every market is different—each with its own strengths and weaknesses. Your willingness to adjust your game plan accordingly to fit that of each market (and sector within that market) will be the ultimate determiner of your level of success.

Summer Sale!

2010-06-17T10:15:00.000-07:00

Social Networking for Business

2010-06-17T09:18:00.000-07:00

Social networks have become increasingly popular in the past few years. From car collectors to book lovers, there seems to be a network out there for everyone. That said, social networks present a prime opportunity for businesses of all sizes to reach targeted audiences, while saving money and increasing their bottom line through increased publicity.
Social network marketing is marketing that utilizes previously established social networks as avenues to generate awareness about a given company, politician or even a social issue. These platforms are also often used to inform clients and customers about sales, product launches and other company news. Many networks enable various types of posts including digital photos and video clips, which enables business to be creative and explore various methods of promotion.

Although traditional advertising can be effective, advertising and marketing campaigns can be quite expensive. Utilizing social networks for marketing and advertising purposes present several benefits for small- to medium-size businesses that may not have the funds available to execute expensive publicity campaigns. The amount of time spent on the campaign is also significantly reduced due to the fact that other than periodic updates, most of the work is already finished for you given that the platform (the social network of your choice) has already been established and word of your company will be spread by hundreds, thousands and sometimes even millions of your dedicated readers or site visitors, often referred to as fans or followers.

At the end of the day, most people like to get things for free, and detest when someone is obviously trying to sell them something. By marketing through social networks, your company can offer your clients and customers and potential clients and customers something for free (beneficial information of some sort) without being too “sales-pitchy.” Chances are, your visitors will return time and time again to where they found critical information, which will help your business build a lasting relationship with clients, customers and other key stakeholders prior to even conducting business with them. Due to the established relationship, when the time comes for that person or business to purchase products or services that your company supplies, they will most likely come to your business to do so.

If you still do not see the benefit of social networking for businesses, think of it this way: if you do not choose to advertise and market your business in this fashion, your competition surely will. Why miss the opportunity to grow your business in a cost-effective manner?

To learn more about social networking for business or to speak with a representative about establishing a strong online presence for your company, call Writings by Design at 866.937.2361, email us at inquiry@writingsbydesign.com or fill out the inquiry form at www.writingsbydesign.com/contact_us.

Are you taking advantage of the HIRE Act?

2010-06-07T10:56:00.000-07:00

Are you thinking about expanding your business and bringing new personnel aboard? Why not look at the unemployed? Due to the economic downturn, a plethora of qualified individuals in a wide array of industries are currently receiving unemployment.

The good news is, thanks to the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, small businesses can now receive incentives for hiring these qualified individuals. Under the act, employers can receive a payroll tax exemption for unemployed individuals hired March 19 through December 31, 2010. If qualified individuals are retained for at least 52 consecutive weeks, businesses can receive an additional business tax credit (new hire retention credit), with a maximum credit of $1,000.

Learn more about the HIRE Act.

Funding your business with grant money

2010-06-06T20:52:00.000-07:00

Government grants are heavily underutilized, but are an invaluable resource for those hoping to obtain business funding—especially since the passing of the Recovery Act, which released Stimulus money. Grants vary by amount, ranging from a couple thousand dollars to hundreds of thousands of dollars. The critical mistake many business owners make is discounting grants that may be in smaller amounts, as insignificant. The fact is, your competitor could be a business that received $20,000 in grant money last year. While this is not a life-changing amount of money, which company’s bottom line is immediately strengthened? Certainly not yours if you did not take the initiative to apply. Doing nothing gives your competitors an advantage. Who doesn't like free money?

You have probably been bombarded by companies offering to find grants and apply for them for a "nominal" fee—but these services are simply unnecessary. The government actually wants to give away this money to help strengthen the economy, so information pertaining to these grants is available and free to the public.

The first thing you need to know about applying for government grant funding is that your odds are strengthened with numbers. Submitting several applications at once is the best way to ensure that funding from government grants is obtained. Apply to all that is applicable to your business—especially the obscure ones. These grants are commonly overlooked by all demographics, but are extremely underutilized by female business owners in particular. Nearly half of all monies designated for female entrepreneurs in 2008 went unclaimed.

The government wants to give you money!
There are 26 federal grant-making agencies, all of which offer a multitude of grants each year. Grants are categorized and rewarded by the following segments:

• Agriculture
• Business and Commerce
• Consumer Protection
• Education
• Energy
• Food and Nutrition
• Housing
• Information and Statistics
• Law, Justice and Legal Services
• Science and Technology and other Research and Development
• Recovery Act
• Community Development
• Disaster Prevention and Relief
• Employment, Labor and Training
• Environment
• Health
• Humanities
• Arts
• Income Security and Social Services
• Natural Resources
• Regional Development
• Transportation

At first glance it may appear that the selection of available grants that your business may be eligible for is limited. The key is to look beyond the obvious. The fact is, a large number of grants are overlooked each year, and the money is not used. Looking for, and applying to the most obscure grants can often be your ticket to obtaining funding. Given that you have properly filled out the form, if you are the only person who applies for a grant, you win!

Remember, do not be discouraged if you only receive one grant from your first 10 applications. This is free money that you did very little to obtain, and it also means that it will be easier to obtain government funding in the future. Once you have your first grant, and have proven that you will use the money wisely to expand your business and stimulate the economy, you may actually be personally invited back to apply for other grants in the future. Obtaining grant money is a slippery slope, of sorts—once you get the ball rolling, nothing can stop you! Learn more about grant funding for your business, including the best time to apply, various application methods, search techniques and the application process.

The key to obtaining grant money is making it clear what problem the government will solve by giving you the requested amount of money. For instance, if you would like to start a housing/rehabilitation program for runaway teens, this would in turn, decrease the crime rate caused by juvenile delinquency, increase the chances that these children will return to high school, increase the chance that said children will go on to obtain higher education, substantially increase the likelihood that these children will go onto lead productive adult lives and obtain good-paying jobs, which would warrant paying higher income taxes to the government, which would further stimulate the economy. It is your job to convey the fact that in the end, everyone (especially the government) will benefit from the funding you will receive for your business.

When to Apply
You can also increase your chances of obtaining funding by filing at the appropriate time. It is a good strategy to apply for grant money when government agencies are up for re-appropriation, or at the beginning of the agency's fiscal year. Agencies are more apt to grant funding prior to agency re-appropriation because they want to get rid of the money they have on hand to increase the funding that they will receive. Applying at the beginning of an agency fiscal means, there is more funding available, therefore, increasing your odds of obtaining funding.

Desired Application Dates:
October 1 (beginning of fiscal year)
May 1 - June 30 (agency up for re-appropriation)

Schedule your free consultation today to learn about different funding options and how Writings by Design can help your business formulate a fool-proof funding request. Visit us at writingsbydesign.com, or email your question to inquiry@writingsbydesign.com.

Ecommerce on your Web site = Increased bottom line

2010-06-06T20:50:00.000-07:00

Ecommerce is the online transaction of business, featuring linked computer systems of the vendor, host and buyer. The following are the various types of ecommerce sites:

• Transactional Site—The most common type of ecommerce site, transactional sites enable consumers to search through a store’s merchandise, then order and pay for the products in the same transaction.
• Information Delivery Site—These sites act as a sale-generating tool for the site owner, as they provide information about the merchandise and information on how to proceed to purchase it, but the transaction cannot generally be completed online. This option is usually much less expensive than transactional sites.
• E-marketplaces—These sites are commonly known as auction sites, as they connect buyers and sellers. Merchandise is usually auctioned off, but some items are only sold at listed prices, depending upon the preference of the seller.

Regardless of the type of ecommerce that is utilized, statistical data supports the fact that the addition of ecommerce to any Web site can substantially increase profitability for the Web site or business owner, as well as effectively drive traffic to your site. In fact, the estimate of U.S. retail ecommerce sales for the fourth quarter of 2008 totaled $37.1 billion, an increase of 17.3 percent (±2.1%) from the third quarter of 2008. The fourth quarter total ecommerce sales for 2008 were estimated at $133.6 billion, an increase of 4.6 percent (±1.8%) from 2007.

Everyday an increasing number of Web site owners join the ranks of many to offer retail products, or at least links to such items, on their Web site. This growing number of businesses has contributed to the rapidly expanding ecommerce market and growth of online sales in the U.S., and even on an international level. According to an Interland 2005 study, 83% of small- and medium-sized businesses with Web sites containing ecommerce features were receiving monthly revenue from it.

In recent years, the popularity of businesses selling merchandise online has exploded. With a click of a button, consumers from around the world can shop your company’s storefront—no matter how big or small—and instantly purchase your merchandise. But what if your company does not offer a specific product for sale?

The good news is, virtually anyone can now have ecommerce capabilities on their Web site, regardless of the type of site, size of customer base, whether an actual product is offered, and most importantly, at a minimal cost. New technology enables everyone, even small service providers to increase their bottom line through the utilization of ecommerce. For instance, a freelance writer with a Web site could choose to have a link for writing supplies on their Web site, or cater directly to meet the needs of the clients that are more likely to visit the site. If 90 percent of the writer’s income comes from the culinary community, it may be wise to feature cooking products, such as utensils, books, etc., on the site.

Merchant cash advance

2010-06-06T20:48:00.000-07:00

Obtaining business funding has become increasingly difficult throughout the years. As the economic climate worsens across the U.S., and on a global scale, lenders are less likely to freely distribute funding, and investors are not as willing to take a chance on seemingly risky business ventures. So how do you obtain business funding in such a climate? Personal financing is risky, and not an option for the majority. A fairly new option that has become increasingly popular within the past few years is the merchant cash advance.

Merchant cash advances, the purchase and sale of future income, are often used as an alternative to traditional financing, but many view this as an option that is as good as, or better than, many available traditional financing options, due to the flexible nature of the advances.

How it works
Merchant cash advances provide business owners with immediate access to working capital in exchange for the promise of a share of future sales. Since the lender will receive funds from all future sales until the debt is repaid, there is no real collateral involved. This option has gained popularity due to the fact that debt repayment is not on a fixed schedule, but rather based upon current sales. This flexible payment schedule is attractive, particularly when future sales are unpredictable. Lenders for this type of financing are also much less choosey than a bank or venture capitalists.

While this option may sound appealing, there are certain criticisms to consider. Interest rates vary by company, but can be extremely high. In addition, since this industry is fairly new (less than ten years old), it is virtually unregulated. It is also important to consider the fact that while unpredictable future payments may be an advantage when times are rough, if you have unusually high sales for a period, your payments will also be unusually high as well.

As with any method of obtaining funding for your business, it is critical that you fully understand the terms of the agreement before you decide to take action. While it may be easy to obtain funding through a merchant cash advance, it should be treated like a loan. Be proactive and closely monitor interest rates.

The importance of a tax ID number

2010-06-06T20:45:00.000-07:00

New businesses spring up each and everyday, and while the product or service you plan to provide might be revolutionary, there are risks with all business ventures. Generally speaking, it is ideal to separate your personal finances and assets from that of your business in the event that your business fails, or does not become as profitable as you would like. The best way to accomplish this is to establish a tax identification number (TIN), also known as an employer identification number (EIN).

An EIN officially separates your personal identification from that of your business. It also offers a great opportunity to establish strong business credit, even if your personal credit is sub par. In addition to protecting your personal assets, an EIN enables business owners to essentially start with a clean slate. Regardless of your personal credit score, or less than favorable dealings with lenders, an EIN essentially establishes your business as its own person—which allows you to build spot-free business credit.

According to the IRS, you will need to apply for an EIN if you can answer “Yes,” to any of the following questions:

• Do you have employees?
• Do you operate your business as a corporation or a partnership?
• Do you file any of the following tax returns?
o Employment
o Excise
o Alcohol
o Tobacco
o Firearms
• Do you withhold taxes on income, other than wages, paid to a non-resident alien?
• Do you have a Keogh plan (a tax-deferred pension plan used by unincorporated businesses and those who are self-employed for retirement purposes)?
• Are you involved with any of the following types of organizations?
o Trusts, except grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
o Estates
o Real estate mortgage investment conduits
o Non-profit organizations
o Farmers’ cooperatives
o Plan administrators

Getting funding for your business

2010-06-06T20:38:00.000-07:00

The common thread between all successful businesses is availability of adequate funding. Regardless of how innovative a product or service is, without the necessary funding, your dreams of business ownership will never come to fruition. The tricky part can be finding the funding you need to start your business or expand on an existing business. There are a wide variety of approaches to business funding, but all have certain advantages and disadvantages attached that must be considered.

Personal Funds
Personal funds include funds from your savings account, or retirement fund(s) (401K or 403 B).

Advantages
• Low overhead
• Debt free
• Tax-deferred savings

Disadvantages
• High risk if business is not successful
• You may not have enough in personal savings to fund a business

Business owners also commonly acquire bank loans to finance business ventures. Unfortunately, in the current economy, this is sometimes easier said than done. It might also be in your best interest to keep your credit lines clear for other expenses associated with owning a business—expected and unexpected. If financing cannot be received through bank loans, many consider credit cards as a viable alternative. This option comes with high risk in the event that the business does not assume the expected level of success, as repayment of debt may become difficult.

Funding from friends and family is also considered a form of personal finance. When people lend money for the start of a business, or become a co-signer for a loan for commercial property, this could open up the opportunity for the individual to become a vested owner in your business—a positive or negative, depending your end goal. If the friend or family member becomes a vested owner, this would alleviate the need to repay the loan, but would also limit your overall control of the company.

For many, funding a business with any form of personal financing is not a viable option, as the risk is much too high. So what is the alternative?

Equity funding, also known as equity finance, equity loans, private equity, venture capital or private venture capital, is essentially an investment that combines a life insurance policy and mutual fund shares. With this option, the investor is shielded by the protection of the insurance policy (collateral), and also has added bonus of the growth potential of the mutual fund.

Equity funding is a viable option to obtain funding for your business expansion project, or funding your start-up; but it also takes work. How do you find interested investors? How do you construct an appealing funding proposal? How do you get investors to actually read the proposal? What are the typical terms of agreement for your particular business venture? Are there other funding options to use in addition, or in lieu of equity funding? Will the same angel investors work for equipment financing? What about merchant cash advances?

Schedule your free consultation today to learn about different funding options and how Writings by Design can help your business formulate a fool-proof funding request. Visit us at writingsbydesign.com, or email your question to inquiry@writingsbydesign.com.

Starting a business? Which structure is right for you?

2010-06-06T20:31:00.000-07:00

Selecting the appropriate structure for your business is one of the most important decisions that you will make, and will have long-term future implications for your company. When considering which structure is right for your particular business, you must not only consider your current business dealings, but also your potential and/or expected growth as well. The business structure you choose will affect your level of control within the company, the size and nature of your business, vulnerability to lawsuits, tax implications, projected profit, whether you will need to reinvest earnings into your business, and ability to access cash from your business’ earnings. While it is possible to change your business structure after it has been established, it can sometimes be difficult depending on your current business structure, and the new structure you want to establish.

Partnership
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

Instead of paying an income tax, any profits or losses made by the partnership are passed on to the partners. Those shares and losses are then reported on each partners’ personal tax return. No Form W-2 should be issued for the partners, as they are not employees, but rather a Form 1065, also known as Schedule K-1, should be provided.

Some advantages of a partnership include the following:
• Relatively easy to establish
• Business profits filed on personal tax returns
• Ability to become a partner can attract potential employees

Some disadvantages of a partnership include the following:
• Individual partners can be held liable for the actions of other partners.
• Profits must be shared with others, as well as decision-making responsibilities.
• A partnership can easily come to an end in the event of withdrawal or death of a partner.

Limited Liability Company
Also known as “check-the-box” taxation, limited liability companies (LLCs) are designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Formation is more complex and formal than that of a general partnership.

LLCs are typically taxed as partnerships, but if there are more than two of the four following characteristics, corporation forms must be used:
• Limited liability to the extent of assets
• Continuity of life
• Centralization of management
• Free transferability of ownership interests

C Corporation
In forming a corporation, prospective shareholders exchange money, property or both, for the corporation's capital stock, according to the IRS. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate tax-paying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders. The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends—a double tax.
Advantages of a corporation include the following:
• Shareholders have limited liability for the corporation's debts or judgments against the corporation.
• Shareholders are generally only held accountable for their investment in stock of the company, with the exception of an officer in certain cases.
• Stock represents another possible avenue for income.
• A corporation may deduct the cost of benefits it provides to officers and employees.
• If certain requirements are met, a corporation can be taxed as an S corporation, which enables the company to be taxed similar to a partnership.

Disadvantages of a corporation include the following:
• The process of incorporation requires more time and money than other forms of organization.
• They are highly monitored by federal, state and some local agencies—which means more paperwork and regulations to comply with.
• High taxes.

S Corporation
An S corporation is simply a tax election for a corporation, which enables eligible corporations to avoid being taxed twice, as previously discussed. Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss and credit, and their share of non-separately stated income or loss.

Sole Proprietorship
A sole proprietor is someone who owns an unincorporated business by him or herself. A sole member of an LLC cannot be considered a sole proprietor if the LLC is treated as a corporation, as previously discussed.

Advantages of a sole proprietorship include the following:
• It is the easiest and least expensive form of ownership.
• Sole proprietors have complete control of any lawful decisions they wish to make in regards to the company.
• All business-generated income can be kept, with the exception of taxes.
• Earnings are easily filed on personal tax returns.
• If the business is no longer desired, it is easy to dissolve.

Disadvantages of a sole proprietorship include the following:
• Sole proprietors have unlimited liability and are legally responsible for all debts against the business, and there is no clear distinction between personal and business assets.
• It may be less attractive to potential employees who want to own a part of the business.
• Employee benefits are not directly deductible for tax purposes.

Venture captial: Making the right move at the right time

2010-06-06T20:24:00.000-07:00

Venture capital is a type of equity funding, meaning that an investment is made in a company for the purpose of receiving shares in said company, along with other collateral (usually an insurance policy). Selling shares of one's company also means sharing ownership and ultimate control over the business. The more shares that are sold, the less control the original owner has over the company. This type of funding may be attractive for new companies with limited credit and operating history that may have difficulty raising capital in public markets or from debt funding, such as bank loans.

If relinquishing control over your company doesn't seem very attractive, you should consider another form of business funding. On the other hand, depending on the stage of your business' development, and your end goals, venture capital could be the right solution for you.

After a period of significant growth, many small business owners are not equipped with the expertise to take their businesses to the next level-either maximizing growth or selling it for profit. A venture capitalist can bring managerial and technical expertise to aid businesses that are ready to take the next step. In a nutshell, venture capital is a useful tool for entrepreneurs hoping to build a company to flip for a quick profit. If your goal is to build a lasting business (that remains under your control), alternative funding options should be considered.

If venture capital sounds like a viable solution to your funding needs, just remember, venture capitalists reject 98 percent of all proposals presented to them. The market is highly competitive, and if your proposal is approved, the lengthy process-usually 6 to 18 months-has just begun. In order to obtain equity funding, you must present a sound proposal to outline the strategy and vision for your company.

Areas of interest for potential investors include the following:
- Strength of management
- Strength of brand
- Business strategy
- Target market
- Competition
- Big name clients
- Innovation
- Recommendations
- Intellectual property
- Barriers to entry

What should you know about venture capital?

2010-06-06T20:17:00.000-07:00

Venture capital, a type of equity funding, is essentially an investment that combines a life insurance policy and mutual fund shares. With this option, the investor is shielded by the protection of the insurance policy (collateral), and also has the added bonus of growth potential of the mutual fund. The term equity funding is the exchange of money for a share of business. This allows business owners to obtain funding without incurring any debt, but there are potential downsides of venture capital all entrepreneurs should be aware of.

Venture Capital Myths Dispelled
Many startup companies in search of funding often consider venture capital as a feasible solution-but this is often not the best choice. While venture capital may be viable for some businesses, there are many factors to take into consideration prior to deciding to use this type of funding.

When in search of business funding, the end goal of obtaining funding is often the only factor given consideration. More importantly, business owners must realize that the method in which funding is obtained will have both positive and negative short-term and long-term consequences, depending on the ultimate end goals. As previously stated, venture capital is typically invested in a company in exchange for shares in said company. Depending on the amount of capital received, that could mean the business owner loses ultimate control over the business. When the investor and business owner have misaligned goals, this could translate into huge problems. Venture capitalists invest in companies with the most potential to realize extreme growth in hopes of an eventual sale of the company. If your end goal does not include the eventual sale of your company, or there is a chance that you will receive a nominal return on investment for the sale of the remaining shares of your company, an alternative funding option should be considered.

Another misconception is that venture capital is somewhat easy to receive. It takes time to contrive an affective funding proposal and to find investors who are actually willing to read and consider your proposal. Despite the substantial amount of time spent on the funding proposal process, the majority of businesses never actually receive venture capital, because in spite of how innovative your business is, venture capitalists have very high expectations and aim to ensure high yields on their investments-sometimes 30 percent or higher. This brings us to the high cost of venture capital. Unlike debt funding, there is no amount that must be repaid, but with a 30 percent return on investment, along with salaries and bonuses, venture capital becomes very expensive. While this money may not necessarily be coming from your wallet, it is coming from somewhere-your business.

Before deciding if venture capital is right for your business, consider the following advantages and disadvantages:

The advantages of equity funding are as follows:
•You do not have to pay back your investors even if your company goes bankrupt
• Business assets do not have to be pledged as collateral to obtain equity
• Businesses with sufficient equity will look better to lenders, investors, etc
• Your business will have more cash available because it will not have to make debt payments

The disadvantages of equity funding are as follows:
• You will have to relinquish ownership and a share of your businesses profit to other investors
• Other owners may have different ideas than yours on how businesses should be run
• Payments to investors in C-corporations are not tax deductible

J. Mariah Brown is the owner and editor-in-chief of Writings by Design, LLC. To learn more about how Writings by Design can help your business formulate a fool-proof funding request, please visit us at writingsbydesign.com, or email your question to inquiry@writingsbydesign.com.

Welcome!

2010-06-06T11:11:00.000-07:00

Welcome to Business Development Digest, the one-stop shop for all of your small business needs. From business funding, human resource best practices to promotional ideas and opportunities, we've got you covered.