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Merchant Spotlight
RapidAdvance Keeps Larry's Automotive Motoring
 Larry's Automotive in Mount Pleasant, Mich., has been the recent beneficiary of a cash infusion from RapidAdvance. Owner-operator Larry Weatherhead said the firm's services were needed amid the poor economy. He states, "Through RapidAdvance, we were able to help ourselves out and get some operating capital when it was really needed. We have cut back on employees a bit. We are down to the bare minimum. We've also cut back on advertising. I guess you could say we have cut back on non-essential expenses. One thing I won't do, though, is raise my prices in a bad economy. That’s just counter-productive." Looking ahead, Weatherhead says the outlook remains uncertain for independent repair shops such as his. He concludes, "The Cash for Clunkers program sure didn't help us. It took over 700,000 vehicles off the road that independent repair shops would normally work on. For the next three to five years, the cars that were brought are going to be under dealer warranty. So, that is going to be a lingering effect for us and the other independent repair shops."
From "RapidAdvance Keeps Larry's Automotive Motoring"
Information, Inc. Staff Writer (10/30/09)
Headlines
Money Matters
Five Steps to Rid Your Business of Cash Flow Woes
Strategies for Debt Collection
Small Businesses Need Credit to Expand
Bright Ideas
A Focus on Customers Key to Economic Revival
24 Ways to Improve Your Business
Top 5 Elements of an Annual Business Plan
15 Tough-Love Small Business Rules
Grow
Reinventing Your Business Can Restart Growth
Turning Customers Into Repeat Buyers
Five Ways to Expand Your Business
Off Hours
Luxury Vacation Bargains Abound in Latin America
Bike Your Way Through Napa Wine Country
Money Matters
Five Steps to Rid Your Business of Cash Flow Woes
More than 60 percent of small business owners are "very concerned" about having cash available to pay bills over the next six months, according to a semiannual survey of business owners. Many small business owners judge the health of their business on factors such as profit margins, sales growth, and customer loyalty, and while these are important metrics, the real test for any business is a balanced cash flow because cash pays bills, covers payroll, and can be invested back into a business to support growth. To prevent uneven cash flow, small businesses should keep five simple guidelines in mind. First, know exactly what your cash situation is, and closely monitor the movement of cash in and out of your business. Doing so will tell you exactly what cash is left at the end of each month, and where the money goes. Second, understand how cash flow problems occur to help avoid them before they become a problem. Third, keep cash flowing. Find creative ways of managing peaks in demand without hiring extra workers, such as outsourcing jobs or hiring interns. When making purchases, look for non-cash ways to make payments, such as credit card rewards programs or frequent flier points. Negotiate with creditors to delay payments till when it is most beneficial for your business, and keep cash coming into your business by making sure you are paid what you are owed on time. Fourth, have a contingency plan. There will be times when your company needs additional cash, so have tools available to find those funds. Plan ahead so you can go to credit sources before you are in a financial pinch. Fifth, manage your company's growth. Steady, consistent growth is the best way to smooth cash flow. When growth opportunities arise, plan carefully with cash flow in mind.
From "Five Steps to Rid Your Business of Cash Flow Woes"
Convenience Store News (10/06/09) Flynn, Richard
Strategies for Debt Collection
At a time when loans and credit for small businesses are extremely difficult to come by, it is all the more important that small businesses collect on debts they are owed in a timely and efficient manner. Demonstrating to a debtor that you are serious about resolving past due payments is key. Consistency in dealing with overdue payments, and establishing appropriate responses that anticipate the most common excuses, will help smooth the collection process. First, call regularly and consistently. Debtors are more likely to pay if they know their creditors are on top of their accounts and expecting payment. Build relationships with customers, particularly their accounts payable staff. Send thank-you notes on company letterhead for on-time payments, and be willing to make small talk during telephone calls. Building semi-personal relationships through friendly interaction encourages on-time payments. Bring in the most money in the least amount of time by prioritizing accounts, including organizing past due accounts according to money owed or overall time of delinquency. Review the accounts before determining the most efficient priority list for calling past due accounts. Regularly contact delinquent accounts to let them know that you are serious about collecting, and address all client debts as soon as possible. Quickly contacting a customer about a late payment or upcoming bills demonstrates that you expect payments to be made on time. Practice answers for objections and excuses. Make a list of all possible objections by asking your own or another company's accounts receivable department about what excuses they hear the most, and develop appropriate responses. Lastly, spend some time strengthening your people skills, as better relationships will improve your collection abilities.
From "Strategies for Debt Collection"
Think Business (10/09)
Small Businesses Need Credit to Expand
Many businesses are finding it difficult to secure small business loans and credit, hindering their expansion plans and limiting overall economic growth. Lending standards at banks are expected to remain tighter than they have been for the past decade, until at least the middle of 2010, according to a Federal Reserve Board survey of senior loan officials. The continuing credit crisis seems to be due to ongoing uncertainty about the economy instead of any actual lingering effects of the collapse that occurred in the financial markets last fall. "The banks are just deathly afraid," says Business Finance Solutions partner Sam Thacker. "I don't see commercial banks coming back to the market anytime soon." The inability to obtain loans and credit will continue to limit small businesses' ability to expand, which ultimately prevent job creation and economic growth. Businesses that work on contract are increasingly finding themselves unable to bid on jobs because they know they will not be able to raise the capital needed to hire workers and buy equipment needed for those contracts. "You cannot get a loan if you don't look profitable, and you can't look profitable if you can't bid the work," says ABC Construction President Bob Novak. "I've had to walk away from jobs because I cannot get the funding." The loans are needed to help small businesses expand and hire new employees, jobs that would boost the economy. More than half of the U.S.'s private-sector jobs are in companies with fewer than 500 employees.
From "Clamps on Credit Tightens"
New York Times (10/13/09) P. D1; Goodman, Peter S.
Bright Ideas
A Focus on Customers Key to Economic Revival
Small businesses continue to be plagued by a shortage of credit and a tightening economy. The initial reaction for many small businesses has been to cut costs and squeeze pennies as much as possible. However, just cutting costs is not enough to survive the recession, writes Clarkson University's Mark Compeau. Saving money is key to filling orders, paying employees, and covering bills and interest payments, but if a small business loses sight of its customers then it is all but over. For businesses that rely on foot traffic, such as a store or restaurant, a great way to save some money is to monitor traffic and adjust operating hours and work schedules accordingly. Cutting back labor or hours during the least popular times can be a good way to cut costs while ensuring that you are still fully staffed for the most profitable periods. Businesses also should identify the most popular items and emphasize them on its Web site and in its displays, Compeau suggests. Consumer tastes have changed during the recession, so find the items that customers are still buying and market those. Dan Cook, owner of a 95-year-old chain of dry cleaners, says his approach is as simple as treating customers the way he wants to be treated. "We know everybody that walks in by name," he says. "I tell all of my employees that if you don't know their first names you better know their last. Find out something that is unique about them, have an open ear." To keep customers coming in, Cook offers free off-season clothing storage. He also recommends that businesses go out of their way for the customer, such as if it is raining go out with an umbrella and meet them at their car.
From "Cost-Cutting Won't Get You There"
Forbes (10/26/09) Compeau, Marc
24 Ways to Improve Your Business
Small business owners often get so caught up in the operations of their business, or working IN the business, that they miss opportunities to improve the business itself, working ON the business, writes Jason Cohen. Small business owners and operators need to take the time to step back and look at their business as a whole to see where it can be improved. Cohen offers some simple but effective strategies for improving a small business. First, have your Web site, product, or service examined through the eyes of a new customer. Perform usability testing with a stranger. Identify a decision you have made about your product or a behavior that was the result of your ego instead of good business thinking so you can correct your mistake. Delegate some of the activities you still do yourself and relinquish control, particularly activities that can be done by someone else just as effectively. Increase your company's visibility on the Internet by participating in Twitter, Facebook, or a blog. Identify one element of your company that you know the least about and spend some time improving your skills in that area. Find some way to establish yourself as an expert in your field as people like to know they are working with the best. Identify strategies your company is following because of an assumption or a plan instead of hard evidence and instead follow a plan that the evidence supports. Become more visible in communities related to your business, be it a professional group, the local community, or an online community. Lastly, find and emphasize elements of your company that elevate you above your competitors.
From "How to Work ON Your Business, Not IN It"
Small Business Trends (10/19/09) Cohen, Jason
Top 5 Elements of an Annual Business Plan
As the fiscal year comes to an end, now is the perfect time to start creating a business plan for next year. Establishing a business plan at the end of the year allows entrepreneurs and small business owners to look back on the previous year to determine what worked and what needs improving, and allows the business to focus on its most important objectives over the coming year. All business plans should contain a few key points. First, the plan should feature a situation analysis that objectively defines the business' current situation. Take an honest look at your company's situation by examining revenues from the past three years and how they compare with your competitors. Perform a strengths, weaknesses, opportunities, and threats analysis to see how your company measures up internally, and determine what is unique about your product or service compared with your competitors. Second, perform a thorough analysis of the market to identify business opportunities and determine who are your toughest competitors, which may help you find products or services your customers need that competitors are missing. Third, position your product or service so that it stands out as being unique and a good value. Fourth, establish objectives for your company that include projections for monthly revenues, the number of clients you will need to reach those goals, and dates for the completion of major projects. Lastly, create a strategy that will help your business accomplish its objectives, accounting for the situation analysis, competition, positioning statements, and your short- and long-term objectives.
From "Top 5 Elements of an Annual Business Plan"
MarketingProfs.com (10/13/09) Bletzinger, Donna
15 Tough-Love Small Business Rules
George Cloutier, the author of "Profits Aren't Everything, They're the Only Thing," believes that small business owners need to commit to running over anyone or anything that gets in the way of their company's profits. Small business owners cannot afford to be delusional about their company's profitability. If your company is losing money it is your fault and you must find a way to fix it. Too many small business owners believe that when their company is starting out it is all right to not take a salary, often called "sweat equity," but Cloutier says this is nothing more than foolishly working for free. The inability to pay oneself a full salary is a sure sign that something is wrong with the business. Cloutier believes that a small business must come first, the weekend is for work, and that family and business do not mix, so do not put them on the payroll. Delegating tasks is important to a business running smoothly, but that does not mean owners should abdicate their authority or stop making sure that tasks are being done right. Cloutier says the only way to motivate employees is to compensate them for a job well done, which can only be done if they receive rewards only when the earn them. Small business owners need to be respected and completely in charge of their employees so they know the job will be done well and when they want it. If employees have trouble with your authority, fire them as soon as possible. Activities such as golf, trade shows, and retreats are just excuses to play at the company's expense. He says teamwork encourages mediocrity because a team is only as strong as its weakest link. Anyone who cannot keep up needs to be cut out. Lastly, he says to stop blaming the economy for your financial difficulties.
From "15 Tough-Love SMB Rules From George Cloutier"
bMighty.com (10/28/09) Cloutier, George
Grow
Reinventing Your Business Can Restart Growth
Many entrepreneurs are rethinking their business models as a result of the recession. For example, changing your costs and payment plans can have a major impact on sales. RocketLawyer, a Web site that provides pay-per-document downloads to entrepreneurs, started losing customers as small businesses had less money to spend. To attract more customers, the site launched a "first one free" model to let potential customers try the service, as well as a $40 per month membership to give customers unlimited document downloads and online document storage. Although the changes were intended as a stop-gap measure, RocketLawyer's revenues went from $1 million in 2008 to an estimated $5 million this year, and monthly visitors to the site have increased from 150,000 to 900,000. Another example of a company overhauling its business plan can be seen in Specialty's Bakery and Cafe, which owns and operates sandwich shops on the West Coast. Specialty's recently renovated its Web site to add online ordering, and now 40 percent of the company's revenue comes from online orders. "People can order their sandwiches or salads online, customize them, save them as favorites, and pick up without waiting in line," says Specialty's executive Angela Pace. The ThomasNet Industrial Market Barometer, a survey of 829 manufacturing and distribution firms, shows that 80 percent of respondents are handling the recession by diversifying into new industries, widening sales channels, expanding overseas, and increasing online marketing.
From "To Beat the Recession, Reinvent Your Business"
BusinessWeek (10/23/09) Klein, Karen E.
Turning Customers Into Repeat Buyers
Shop owners who spend most of their day waiting for customers to come in can put their time to good use in several ways to build sales and turn customers into repeat buyers. First and foremost, if you are not selling your products online now is the time to build your company an e-commerce Web site. If building and maintaining an e-commerce site of your own is too expensive or time consuming, post your products on Amazon or eBay, or Etsy.com and ArtFire.com for handmade products. Another good use of time is to compile a database of your customers, including email addresses, though be sure to get their permission before sending them email advertisements. "Retail is all about relationships," says Paul Schneider, who owns Twist, a two-store art and jewelry shop chain that started as an artists' coop. "If you compile an email database and use it to establish a line of communication, you're three-quarters of the way to making a sale." People are often hesitant to give out their email, so make the invitation personal and promise to only send emails when you are offering exceptional sales, and no more than once a month. To attract new customers, participate in online forums and blogs connected to your business to build an online fan base. "Find ways to get exposure by doing something unique," says Eiseman Jewels owner Richard Eiseman Jr. "Host a charity event in your store. Have the local school sell something at your store. You have to get foot traffic in based on some expectation other than buying." Lastly, always carry a card that you can either give to potential customers or use to write down their interests and likes. Find out how your business can help them to bring them back to your store.
From "Turning Customers Into Repeat Buyers"
CNN Money (10/19/09) Eng, Dinah
Five Ways to Expand Your Business
The economic crisis has changed how business is conducted, particularly among small businesses struggling to obtain credit or loans, writes consultant Tamara Monosoff. During difficult economic times, focusing on your core customers can help a business stay afloat. Monosoff list five steps to expand your business using core costumers. The most important thing a small business can do is build and maintain strong relationships with their current customers, she says. Good relationships with existing customers can often result in using those relationships to secure new customers. First, know who your core customers are to make sure the most attention is given to the most important and most profitable customers. Second, find out if core customers are satisfied by asking them directly. Listen to their problems or complaints and address them quickly and efficiently. Seeing your company respond will strengthen the relationship you have with your customers. Third, be creative and find ways of becoming an invaluable asset to your customers. For example, you could find your customer a customer or nominate your customer for an award in their field. Fourth, make sure your customers know that they are among your most important clients and that your company is committed to their success. Fifth, follow through with promises to clients, which will let your clients know that you are serious and truly appreciate them. Constantly be looking for new opportunities to support your customers and your customers will want to do more business with you, advises Monosoff.
From "Focus on Core Customers"
Entrepreneur (10/21/09) Monosoff, Tamara
Off Hours
Luxury Vacation Bargains Abound in Latin America
Latin America has become an excellent option for travelers looking for a bargain on a luxury getaway. Meals are often half as expensive as their European counterparts, hotels are more luxurious than what is available for the same price in the United States, and spa treatments and other luxury services are so affordable that travelers can indulge without feeling guilty. Hotel prices throughout Latin America fell by 18 percent in the first half of 2009, according to Hotels.com's Hotel Price Index. Some of the most affordable luxury spots in Latin America can be found in Argentina and Mexico, partially because tourists have been scared off by swine flu stories. Both countries feature established resort towns and major cities. The dollar also is stronger than it was a year ago, and now can be exchanged for approximately 13.5 Mexican pesos, versus 12.5 in October 2008, and 3.9 Argentine pesos, up from 3.3 last year. Some luxurious boutique hotels in Buenos Aires are listing rooms for less than $100 a night. Large tour operators have recognized the value in Latin America and are increasing their trips and adding destinations that focus on luxury for less. "Travelers start out thinking it's too exotic and therefore out of reach," says Collette Vacations' Allison Flint. "But then are pleasantly surprised at how affordable it really is."
From "Bargains in Latin America, Where Luxury Costs Less"
New York Times (10/25/09) Higgins, Michelle
Bike Your Way Through Napa Wine Country
Small business owners in search of a unique escape should look into a bike trip through California's wine country. California is exceedingly bike friendly, with large bike lanes built in many roads, and a population that is willing to respect and yield to cyclists. Vacation brokers such as Getaway Adventures offer "Sip 'n" Cycle" tours that include back-road cycling, splendid views, visits to multiple wineries, an alfresco lunch, and a lesson to help visitors experience wine tastings more thoroughly. Roads travel past acres of grapevines, mountains, and ranches. Adventurous individuals can forgo the tours and set out to explore wine country on their own. California features many small roads filled with wonderful vistas, low traffic, and the opportunity for visitors to set their pace as they cycle. Cycling through wine country combines two excellent escapes—the sophistication and relaxing atmosphere of wine tasting at vineyards and the rigorous and invigorating exercise of cycling, all while providing some amazing scenery.
From "Bike Your Way Through Napa Wine Country"
Los Angeles Times (10/13/09) Enna, Renee
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