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Merchant Spotlight
RapidAdvance Rides to the Rescue of Maine Shop Owner
 Joanne DeCesere, owner of the Four Corners Variety Store in Maine, raves about RapidAdvance and their fast and easy means of dispersing business cash advances. She had experienced much difficulty securing the funds needed to grow her business from her local lender, which forced her to seek out such alternative means. She expected to jump through hoops with RapidAdvance as well, but was pleasantly surprised when that was not the case. DeCesere states, "It's just so much easier and so much less paperwork than going to a bank. And the speed is just phenomenal. Within three days, I knew I would get the money. Within a week, I had the money in my checking account." DeCesere and her staff have used the funds to make exterior improvements to the store and pay bills. The store celebrated a grand re-opening in mid-August.
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From "RapidAdvance Rides to the Rescue of Maine Shop Owner"
Information, Inc. Staff Writer (08/27/09)
Headlines
Money Matters
Credit Scores: What You Need to Know Now
Cash Flow Strategies for Small Businesses
Bootstrapping Helps Small Businesses Stay Efficient
Bright Ideas
10 Common Mistakes That Small Companies Make
Know Your Customers Using Market Research
Smart Small Businesses Create Their Own Niche
Smart Staffing Can Save Your Business
Grow
Expand Your Business to Keep Growing in Any Market
Free Offers Can Attract New Customers
How to Spend Smart to Grow Smart
Off Hours
B&Bs Welcome Recession-Weary Travelers
Basque Country Offers Unique European Experience
Money Matters
Credit Scores: What You Need to Know Now
Lenders have tightened credit standards as a result of the financial crisis, making small business loans and lines of credit increasingly difficult to get and making an entrepreneur's credit score vitally important. As a whole, credit scores are drastically misunderstood. For example, knowing a precise score only matters when in need of new debt, such as a small business loan or a new credit card. Each credit bureau has its own way of reporting scores based on different factors and the type of lender that requested the score. Dispelling a few common myths about credit scores can help people better understand their own score and situation. First, a credit score is not really a strong reflection of a person's financial smarts and good behavior. Scores do not reflect income, employment history, or assets, which are an important part of a person's overall financial picture. A credit score also does not reflect whether a person pays their rent or utilities on time. Paying credit card bills every month does not affect a credit score because credit bureaus do not know whether someone pays their bill in full or carries a balance each month. Equifax president Steve Ely says people should keep their credit use to less than half their credit limit to minimize the impact on their score. More than a third of the score, 35 percent, is based on whether bills are paid on time. One late payment will impact a score for up to a year, and very late payments can hurt a score for two or three years. Collections and bankruptcies can lower a score for up to seven years. If a payment has been missed, pay it as soon as possible and consider asking the lender to withhold reporting the missed payment to credit bureaus. Keeping old credit cards and accounts open can seriously help a score, provided they are in good order, because while bad influences on a score are removed after seven years, good information sticks around for much longer.
From "Credit Scores: What You Need to Know Now"
Wall Street Journal (09/08/09) P. D1; Blumenthal, Karen
Cash Flow Strategies for Small Businesses
Cash flow can be a serious problem for a small business in a tough economic climate, but following a few strategies can help small businesses manage their cash flow and prevent problems with a client's cash flow from hurting their own. First, use a contract or engagement letter whenever possible. Take orders by telephone, email, or regular mail, but be sure that payment terms are clearly stated and appear on any and all correspondence, invoices, and statements sent to customers and clients. A purchase order from a customer is a legal contract and the fundamental rules of "offer" and "acceptance" apply even when you receive a verbal order. If everyone understands the rules at the start of a transaction, completion of the order and payment are expected and are more likely. Complete an assignment or delivery in a timely manner, and send an acknowledgment stating the expected completion or delivery date before you start an assignment or order. Send invoices in a timely manner following the completion of an order. If a project will extend over several months, send at least one bill each month. It can be difficult to get paid for unbilled services if an invoice is sent out months after the completion of the initial customer order, so avoid letting internal records fall behind schedule. Be willing to turn away customers that owe you for past-due invoices. Also, be willing to be flexible and accept payment terms from clients. A series of smaller payments may be easier to make for customers than a single large, outstanding invoice. However, be sure to put all payment plans in writing and enforce the terms. Lastly, thank customers for their business and for making payments on time. Doing so will help establish good relationships and repeat business.
From "Cash Flow Strategies for Small Businesses"
AccountingWEB (09/10/09) Orlando, Kathleen
Bootstrapping Helps Small Businesses Stay Efficient
Almost all small business owners have to find ways of achieving their objectives with limited resources when starting a business, particularly if small business loans or credit is not available. However, many owners continue "bootstrapping" even after they have established a cash flow and long after they need to continue such practices. Bootstrapping over the long term helps keep businesses efficient, allows the entrepreneur to maintain control over the business, and strengthens the business, helping it survive during difficult economic times. Additionally, continuing bootstrapping practices can help build and maintain a stronger cash flow, improving the value of the business. Entrepreneurs should strive to make everyone in their organization a bootstrapper by creating a bootstrapping culture. Owners and managers should constantly support and reinforce thrifty behavior. Building a bootstrapping culture requires hiring the right kind of people. Look beyond a potential employee's technical skills and experience to see if they will fit into the bootstrap business. Develop open-ended interview questions that will assess a potential employee's bootstrapping temperament. For example, ask applicants about a time when they had to accomplish a task with limited resources. If the applicant responds by complaining about the lack of resources, or that he or she has always had more than enough budgetary support, he or she may not be the best hire for a company focused on bootstrapping. However, if the applicant speaks with enthusiasm and pride about how he or she completed a job with limited resources, he or she is likely a good fit.
From "Bootstrapping Culture Can Keep Business Efficient"
Tennessean (09/14/09) Cornwall, Jeff
Bright Ideas
10 Common Mistakes That Small Companies Make
Startups and newer companies have little room for error, and early mistakes can be disastrous for companies looking to grow or obtain a small business loan. Avoiding a few common mistakes can help a young business thrive and grow. First, avoid overestimating your own enthusiasm for your product or service, or thinking that your product is more special than your customers will. Second, validate market demand by finding a solid base of people who agree that your product is a winner instead of supporting it alone. Third, work with customers early so products or services can fit their needs exactly. Fourth, do not underestimate how difficult penetrating the market will be, and be sure to spend enough effort to reach customers and get them to try the product. Fifth, do not overestimate your product's uniqueness, and be sure to accurately take competition into account. Sixth, be sure to fully account for the time and effort it will take to get a product ready for market, and do not promise to get a product to market before it can be completed. Seventh, be sure to hire the right people, and avoid big-company employees who are used to having a support staff to help them finish their work. Eighth, stay focused on your company's main value proposition and avoid being distracted by side projects. Ninth, price your product correctly, avoiding both over-pricing and under-pricing, to encourage adoption in the right market. Tenth, have a long-term vision that incorporates growth into your business plan. Lastly, be sure to take the time to do things right the first time, instead of relying on fixing mistakes later, and be sure to provide a fun and engaging workplace, both for employees and for yourself.
From "10 Common Mistakes That Startup and Small Companies Make"
Fast Company (09/11/09) Lavenda, David
Know Your Customers Using Market Research
Understanding who your customers are and what they want is key to any small business' operations, and conducting thorough and professional market research is an excellent use of a small business loan. Understanding your customers will allow your business to respond properly to changes in sales patterns and build repeat customers. Professional market researchers generally conduct two types of studies—qualitative studies, which includes interviews and focus groups with free-flowing and open ended discussions, and quantitative studies, which generally revolve around surveys. Given limited resources, the best approach to take is generally quantitative, as establishing some hard data to follow can make a major impact. First, identify the customers to survey. Focus on your best customers, the top 60 percent in terms of sales, to make sure that they will be happy with the resulting changes. Retail shops and similar establishments, such as restaurants, where purchases are small and customers largely anonymous, may have to use a smaller sample from a wider range of customers. However, even these businesses can identify their best customers and engage them in a conversation. Consider implementing a frequent-customer program that provides some discounts or another incentive in return for personal information and permission to contact the customer. Decide how to deliver the format. A highly personalized letter to each customer will improve the chances of a response, while phone interviews are best for complex questions that demand interaction between interviewer and customer. When creating the survey, avoid introducing a bias that broadcasts the answers you want to receive, and do not use trade jargon or abbreviations. Ask open-ended questions that allow respondents to openly discuss your company and their relationship to your business.
From "How to Conduct Market Research"
Inc. Guidebook (09/09) Mandelbaum, Robb
Smart Small Businesses Create Their Own Niche
Conventional business strategy generally dictates that companies should strive to conquer and bury any competition. However, the best strategy may be to avoid any competition altogether by creating your own niche market. Small businesses have an advantage in this area because they can easily adapt their operations to create their own space that they can dominate. The important question is determine just what that space will be, and what you have to do to make it yours. First, become the dominant name in the area you want to own. Second, establish a micro-celebrity around your brand. Find what you are an expert at and exploit that strength. Share this expertise online to build an audience and establish yourself as a leader in the field. Once you have created your own space, focus on establishing a micro brand and providing a great value to your customers. Following this strategy will allow you to focus more on running your business the right way and meeting your customers' needs than on beating the competition. After becoming successful by following this approach, you will need to fight to maintain your dominance. Others will try to follow suit and capture part of your market. Stay ahead by constantly raising your business to the next level to maintain your position as the leader in your field.
From "Negate Competition by 'Owning' Your Space"
BusinessWeek (09/22/09) Guillebeau, Chris
Smart Staffing Can Save Your Business
Smart hiring choices are crucial to the success of a small business. Experts say that good hiring is a two-layered process. First, the process requires finding individuals who are right for the job and compatible with the company's culture, values, and needs. Second, hiring must reflect deeper-level predispositions in making decisions and building relationships. For example, VideoHelper, which provides music for TV and film productions, subjects applicants to a series of increasingly difficult and intense interviews and tests that explore not only the applicants' technical abilities, but how they respond to criticism, praise, and pressure. This thorough vetting process has resulted in VideoHelper experiencing a 95 percent retention rate, with most employees staying at the company for at least seven years. A few guidelines can help ensure you make smart hiring choices. First, study the past by analyzing recent hires and fires for information about your hiring predictions, and try to remember certain traits in applicants that became good employees. Second, pay attention to nonverbal cues in interviews, such as inflection, gestures, and other nuances, that may provide hints into the applicant's character. Third, fully research all applicants, and avoid making "gut" decisions. Fourth, after making a selection, follow through with the new hire to make sure they are adjusting and fitting into the company. Good communication is key to retaining employees, and hiring members of the local community is a great way for a business to establish roots in the community.
From "Smart Staffing Can Save Your Business"
Fortune Small Business (09/23/09) Stein, Alexander
Grow
Expand Your Business to Keep Growing in Any Market
Many small business owners have gone into survival mode, cutting costs, eliminating unnecessary expenses, and even letting workers go. However, a few entrepreneurs have ignored conventional wisdom and instead worked to ensure their companies' survival by launching new products and spending what time and money they have to create and capture new business lines. Many business owners who take this approach say the risk is worth it, and their new products have helped sustain and even revitalize their business. For example, Britt Menzies experienced strong success with her StinkyKids T-shirt line, which was carried by high-end boutiques such as Nordstrom and Ritz-Carlton hotels and sold between $28 and $44 a shirt. However, following the economic crisis, Menzies quickly saw that parents were no longer willing to pay those prices for a T-shirt. Menzies knew from talking with customers that kids and parents developed emotional connections to the 10 named characters she featured on her shirts, so she invested in developing dolls and books to expand her brand. The dolls and books will be carried by Nordstrom and FAO Schwarz. Meanwhile, Thomas Hoebbel's photography business was based on taking pictures for promotional materials for companies and nonprofits. However, as businesses cut back on spending, Hoebbel saw his workload drop drastically. To attract new business Hoebbel invested $10,000 in video equipment and editing software to provide online video content for businesses. Hoebbel estimates that in the next few months two-thirds to three-quarters of his business will come from video.
From "In a Rut? Why Not Expand?"
Entrepreneur (09/15/09) Covel, Simona
Free Offers Can Attract New Customers
To attract new customers to a new product or Web site, small businesses should try several approaches that have proven to be extremely successful. First, consider offering free content to consumers and drawing revenue from advertisers and additional for-pay services. For example, Google has become hugely successful offering free content to users while collecting money from advertisers, and radio and TV have been following this model for years. Second, stress the value of your product or service and emphasize how you can save customers time and money or lower their risk. Offer a tiered membership system. Allow anyone to become a member for free but make advanced services or products available only to paying subscribers. Combine free and paid-for products. For example, the Webkinz stuffed animals can be purchased like a regular toy, but they come with a code that enables children to play free online games with the toy's virtual version. Some of these models can be adapted to improve sales. For example, if a product is being phased out, offer it for free toward the end of its lifecycle, or bundle it with a new product. Allow everyone to be involved in some aspect to increase your potential audience. Lastly, before offering free items, ask for customer input to determine what products they would pay for or what free item would get them to make a purchase.
From "Bring in New Customers"
Investor's Business Daily (09/01/09) P. A3; Cooper, Cord
How to Spend Smart to Grow Smart
When ready to expand, small businesses need to carefully consider how to spend small business loans and capital, and be sure that those choices will fuel expansion. First, create a budget so you know exactly what your business can afford. Project your costs and profits for the next several months, and once you see how much capital you have to work with, determine what types of loans you may need to supplement those funds. Once you know how much money you have to work with, determine what efforts will give you the greatest return on investment. Your business might need a new employee or product line, or there is a new technology that could elevate your business to another level. Relocating to a larger or more prominent location can allow a store or restaurant to increase visibility and foot traffic, carry a larger number of products, or seat more patrons. Consultant Martin Lehman says the best way to expand is to take it slow. Do not rush and settle for a lesser location, and only open one branch at a time to make sure it gets up and running smoothly. Previously unaffordable advertising strategies also can be used to expand a business by reaching out to new audiences. Hiring an advertising firm or public relations expert can help identify how and where to spread the word about your business. After identifying the area you want to expand, run several "what if" scenarios to explore each growth possibility and see how each option could affect your bottom line. Consider all possibilities before deciding on a final course of action. "Take each avenue and examine it carefully," Lehman says. "Each has it good points and bad points. See which will bring the most profitability."
From "Spend Smart to Grow Smart"
Entrepreneur (09/15/09) Mueller, Karin Price
Off Hours
B&Bs Welcome Recession-Weary Travelers
During the Great Depression, many wealthy individuals sold their summer homes and cottages to stay afloat, and many of those vacation homes have since been transformed into bed-and-breakfast (B&B) inns. Today those B&B retreats are doing good business, thriving as inexpensive vacations for people looking to escape from the pressures of life. "There was a lot of panic earlier this year, but I can't remember a single weekend this summer that all inns didn't sell out," says Stan Rosen, head of the Berkshire Visitors Bureau and owner of Hampton Terrace Bed & Breakfast. Bookings at Rosen's inn are up nearly a third this year. Bed and breakfast vacations can include anything from urban home stays to 30-room country inns that provide dinner and breakfast, providing a variety of options for those looking for a weekend getaway. Many B&B inns are taking a more modern approach, dispensing with the traditional starched doilies, shared baths, and common meals, in favor of Jacuzzis, high-end toiletries, and flexible meal times. The majority of B&Bs now offer Wi-Fi and in-room TVs, in addition to traditional afternoon tea or wine. The target audience for many B&Bs is an upscale traveler looking for an experience. Many B&Bs offer lowered midweek prices and promote more value-added packages, including wine or food tasting packages. The B&B experience provides a more personal vacation experience that reflects a bygone era, creating a home away from home vacation.
From "B&Bs Welcome Recession-Weary Travelers"
USA Today (09/24/09) P. 8D; Bly, Laura
Basque Country Offers Unique European Experience
Spain's Basque Country offers a unique culture with whimsical traditional festivals. Throughout the year, centuries-old Basque fiestas, named after patron saints, are held along the coast and up into the mountains, defined by much singing and dancing. The people in Basque Country trace their roots from the south of France through the north of Spain, sharing the language of Euskera. In the Spanish Basque Country, the Basque heritage is proudly displayed, with children effortlessly switching between Spanish and Basque, and celebrations and culture that are purposefully different from the rest of Spain. French Basque culture is more subtle, and sometimes kept in private, though it can be seen in similar celebrations of dance, song, athleticism, and food. The region also is home to centuries-old cathedrals and plazas. Lekeitio, in Spain's Basque Country, is home to an island in the center of a bay that travelers can walk to during low tide. The Basque Country can give travelers a completely unique European experience that cannot be found anywhere else in the world.
From "Basque Without Borders"
New York Times (09/27/09) Wildman, Sarah
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