Small Business Marketing

Last time, we talked about the emotional appeal of advertising on TV. This time, we’ll talk about a great way to educate your customers on your products or services: Radio Marketing.

In the recent SIMM 11 study conducted by BIGresearch, it was shown that 44.2 percent of consumers who
hear information that interests them on the radio go online to look into the product or service further. Further studies showed that 22 percent to 28 percent (depending on the industry) of consumers go on to
buy the product that caught their attention.

A recent recession marketing survey by BtoB Magazine shows that companies who normally invest in radio
advertising are estimated to cut back in 2008 by 10 percent. So what does that mean for the clever
business owner?

It means you can acquire one of the most powerful marketing tools for influencing buying decisions at a
significant discount this year.

When radio stations experience a 10 percent loss in revenue, slots that are normally extremely competitive or pricey become available at discounted rates. So how do you take advantage of this?

Negotiate with your radio stations. Radio stations may claim that their prices are fixed, but any
good salesperson will adjust their pricing in order to close the deal, especially when their revenues are down.

One of the best ways to increase your buying power is to offer to increase the duration of your marketing campaign in exchange for a lower rate. For example, rather than buying a 13 week campaign at
$1,500 a week, offer to commit to a 26 week campaign at $1,200 a week. You’ll save $7,800, which is like getting five weeks of valuable advertising for free, and the station gets the extra revenue they need.

Another powerful buying method is to negotiate to buy filler inventory. Radio stations often have 10 to
15 seconds where they have to push filler in order to start a show on time. Those 10 to 15 seconds could
easily be your ad at a significant discount.

Try AM radio. News, sports, and talk radio have amazing followings, and unlike FM or music radio
stations, their listeners are much less likely to surf stations and are much more likely to be attentive
to ads they hear.

So now that you’ve landed a sweet deal for your marketing campaign, how do you maximize returns on your investment?

I’ve said it before and I’ll say it again: Keep your ads simple. Don’t try to cram too much information
into your ad space. I say that for two reasons. First, you don’t want to confuse your listeners. Second,
curiosity is one of the most powerful tools in marketing. You want to grab their attention. Pique their
curiosity to the point that they’ll call the number or visit the website you mention in your ad.

For example, if you sell pizza, you might structure the last few seconds of your ad like this: “Free BOBBY’S Pizza today! Find out more at 918-555-1212. Call now! Tulsa’s best pizza…guaranteed. That’s 918-555-1212.” Now, don’t you want to find out how to get a free pizza?

If you sell a service or information, hook their attention by offering a free report or a free “how to”
article on your website. If you sell retail, offer free coupons or a sales calendar online.

And remember to mention your contact information twice. They won’t be ready to take it down the first
time, and odds are, they’ll be scrambling for a pen. The second time you mention your contact information, they’ll be ready.

Most importantly, avoid confusing domain names or names that are difficult to spell. It’s better to buy an expensive domain name than to spend $15,000 on radio advertising for a website no one can spell. Be
creative with your domain names and avoid domains with the word “and,” confusing symbols like dashes or underscores, and the number 4.

At Xeal every commercial ends with “Visit Xeal online at X E A L dot com…that’s Zeal with an X, and X E A L dot com.” In this case we actually spell it out for the listeners.

Also, a great way to track your ad response is ask your radio station for permission to use their name
in your tracking URLs. Using our pizza example earlier, you could use “KFAQ LOVES PIZZA dot com.” Saying that in a commercial would be much easier than saying “BOBBY’S Italian Eatery dot com.”

If they say no, then try something like “TULSA LOVES PIZZA dot com,” or make it campaign specific:
“TULSA FREE PIZZA dot com” or “5 BUCK PIZZA NOW dot com.” Notice I say “buck” instead of “dollar” so

That’s it for today. Keep an eye out for our next article on our blog [http://www.xeal.com/blog]. We’ll talk about the state of the market, projected spending, and how to come out of the recession stronger than ever before. You’re going to love it.

By: Tony Baker

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Whether you are starting up your business or expanding it you will need finance in order to do so. This is especially relevant to new businesses that are just starting up. There are numerous avenues that you can approach in order to gain this start up finance and there are many different forms of it open to you; choosing the right finance that will benefit your business most is the important thing.

There is a saying that states ‘it takes money to make money,’ this applies so much to new business ventures. For your business to become a success you will need a large amount of money to start off with that can be used to get your business set up. This money will be used to buy equipment, pay the rent on your business property, employ your staff and ensure that you have enough stock to get your business going as well as being used to pay the first few months of all your bills.

Two of the main reasons why many new businesses fail to get anywhere beyond the starting point are due to inadequate business capital and poor management skills, which is why raising money is so important in the early start-up stages of business.

Some ways in which people choose to fund their business idea is by using savings, but realistically not many of us have that sort of cash tucked away, which is why we require outside help. You could opt to borrow money from friends or family if they have the financial resources to help you or you could take out a credit card for the specific use of funding your business. All of the financial options that are open to you can be split into two sections, either debt finance or equity finance. Debt finance is classified as being money that is borrowed from varies different aspects. This is finance that is required to be paid back.

Some examples of debt finance include:

• Bank loans

• Credit cards

• Overdrafts

• Leasing

• Asset financing

All of these are the borrowing of money in one form or another and they will require monthly repayments that will have added interest. Most people however use their bank as the first call of gaining start up finance regardless of the fact they are going to end up paying more money back.

There are disadvantages and advantages of using a bank loan to fund a new business idea. However the disadvantages of having a bank loan to fund your business start up far out-weigh the advantages. The benefit of using a bank loan for business finance include being able to organise a repayment holiday meaning you only have to pay interest for a certain amount of time and you don’t have to turn over a share of your profit. The disadvantages however are that bank loans have strict terms and conditions and can cause cash flow problems if you are unable to keep up with your monthly repayments. Also bank loans are often secured against assets and you may be charged if you decide you want to repay your loan before the end of your loan term.
The other form of finance; equity finance, is often more overlooked than it should be when in fact equity finance could be just the answer that your business is looking for. The main forms of equity finance come from business angels and venture capitalists. Equity finance is money that is invested into your business in return for a share of the business. With equity finance the advantages out-weight the disadvantages and equity finance is a lot more helpful to small businesses than bank loans are.

Some of the advantages of equity finance include your investor being committed to your business and intended projects, they can bring valuable skills, contracts and experience to your business and they can assist you with strategy and decision making as well as often being prepared to follow up funding as your business grows. Two disadvantages of equity funding are your business may suffer as you are spending time securing your investor deal and the investor will own a share of your business.

The one thing that you must do when choosing your business start up finance is to use a finance option that is most suited to your business needs.

By: Helen Cox

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Nearly every town in the world has a newspaper. Simple ads will get notice from the customers that you need. These ads work great if you are offering a special or package deal. If you want to move some of the hair-care products on your shelves then run an ad offering a percentage off of these items. Yellow page ads in your local phone book are a great way to list some of the products and services you offer. The biggest benefit to this type of salon marketing is that it will be in print for a year. Newspaper ads will last for around a week and then you will have to pay again. The yellow pages fit a tight budget nicely. For those few who are technologically advanced, a website is another option. The cost and time required for a website puts off many salon owners. You should carefully consider the pros and cons of having a website.

The most helpful, or damaging, marketing tool for a salon is word of mouth. If you please a customer once they will tell a few friends. If their hair looks great every time they leave your salon, they will tell everyone that asks exactly where they got their hair done. Mess up once and clients will tell everyone they see what happened and where it happened. It may be a double-edged sword, but word of mouth is a very powerful tool. Do quality work and you will be able to rest easy about your reputation. It will also make your salon marketing that much easier.

Why not let your products and services help your salon marketing plan? Some clients will travel to a new shop if it offers the products that they prefer. Shop around at your competitors. That will give you an idea as to what products are common in the area and which ones are unusual. You might have a service that is unique in your area. Be sure to advertise it. Talk to all of the people you meet. Let it be known that you own a salon. If they are looking for a product or service they will ask about it. Research can be that easy.

When all of these methods are put together, you will have a solid salon marketing scheme. Sit down and write out your ideas. Follow your plan to the goals that you have and your salon will become widely known and respected.

By: Greg Milner

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Does the idea of a high risk high reward investment strategy excite you or make you scared?  It is the general perception amongst most people that in order to make spectacular gains you must take spectacular risks.  This is definitely a myth as there are plenty of investment strategies that allow you to make massive profits with very little risk.  Today I would like to have a look at some of the emotional and decision making processes that take place when using high risk high reward investment strategies.

Am I saying that high risk investment strategies are bad?  No definitely not, high risk strategies have a time and place but they must be one of many strategies that you use – not your main investment strategy.  I would also like to mention that there are plenty of ways to make high rewards without necessarily taking high risks.

If your broker suggested that you have a look at a particular trade that required $1000 that would double to $2000 if it was successful or you would loose half ($500) if it was unsuccessful – what would you do? 

In my experience most people are pretty happy to accept the challenge and take a small risk for the prospect of a very good profit.

Would your decision change if your broker offered you the same trade but instead of $1000 you had to put $100,000 o the line.  So if successful your profit would be $100,000 or your loss would be $50,000. 

Suddenly most people aren’t  too keen to take on the trade – Even thought the odds are EXACTLY the same.  Obviously the prospect of loosing $500 is much less frightening than losing $50,000 but I believe that it shouldn’t make any difference to your decision making process.  A high risk high reward investment strategy is exactly that – an investment strategy that that has the potential to loose or win you a lot of money.  I prefer to look at all investment strategies as a percentage rather than in dollar terms. 

This has two main benefits that are vital to developing a strong mindset that is vital when trading (especially if you are using high risk high reward strategies). 

1.  It makes you look at the trade in relation to the actual value of the trade.  The above example is the exact reason why this is beneficial.  Should you place a trade that has the ability gain a profit of $100,000 or a loss of $50,000?  There is no right or wrong answer but if you start looking at the percentages of the trade you will be able to make a much clearer decision.  Always make sure the numbers stack up no matter how big or small the trade is and especially when you are using high risk high reward investment strategies.

2.  The best thing about looking at your trades in terms of a percentage is that it stops you from getting to emotionally attached to the profits and losses that you will inevitable have.  For instance if you were to make a $5,000 profit on one particular trade it is very easy to start getting ahead of yourself and spending the money on flights around the world, cars, boats etc.  If you keep focused on the Percentages you can be extremely happy with your trade but not get to over the top.

Using percentages is even more important when you have a loss on the stock market.  When you lose money is very easy to start thinking about how many hours of ‘normal’ work you have just lost and very quickly you are so depressed that you never want to trade again.  It is quite common for new traders to want to quit after their first loss on the market – even if they have still made a profit over all!  Using percentages gets you away from this mindset and makes you analyze your profits and gains in a much less emotional state.

So does this mean that high risk high reward investment strategies are a thing of the past?  No, it just means that you should really think about the pro’s and con’s of every investment that you make.  One of the main reason why people love using high risk high rewards investment strategies is because they love the feeling of taking risks.  You only need to go to the casino to see that many people are addicted to the rush of gambling with their money.  The question you need to ask yourself when you are placing a trade is – are you Gambling or are you Trading? 

By: Banjo Smyth

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Invoice factoring is a useful but often misunderstood element of small business finance. So in this article, I’ll explain what factoring is and how it can help certain business owners sustain their growth.

By way of definition, factoring is a process through which small business owners can convert accounts receivable (invoices) into much-needed working capital. Basically, there are three primary parties involved in the process:

The Invoicing Company – This could be any company with accounts receivable in the form of invoices. Additionally, the company’s owner wants to convert those invoices into much-needed working capital. For this example, let’s refer to this business as “Acme Corp.”
The End Customers – These are the customers who have been invoiced by Acme Corp and are thus part of Acme’s accounts receivable system.
The Factoring Company – This is the financing company that specializes in providing working capital through such services as invoice factoring. This is where Acme Corp will go to try and convert their invoices into working capital, a.k.a. cash flow.

Now let’s assume that next month will bring some major equipment purchases for Acme Corp. They need two new vehicles for their business, along with some other equipment. The only problem is, a lot of their capital is tied up in the form of invoices. This represents future revenue, but it doesn’t help Acme Corp here in the present, and it won’t help them make those equipment purchases next month. In other words, those invoices are not considered working capital.

In this common scenario, a small business factoring company could step in to help Acme Corp transform their accounts receivable into working capital (which could be used to make those equipment purchases next month).

So Acme’s owner (Bob Smith) would work with a factoring company to transfer some or all of his invoices to the company. The factoring company would then advance Bob a portion of the invoice total, typically around 80 percent. Bob has just converted 80 percent of his accounts receivable into capital that he can use to cover those equipment purchases.

The end customers (the people who owed Bob those invoices) would now make payments to the factoring company, instead of sending them to Acme Corp.

This approach to financing is not for every business. Like any other financial strategy, there are many considerations that must be taken into account. But the point of this article is not to say whether or not factoring is right for your business, but merely to make you aware of this unique approach to small business finance.

By: Brandon Cornett

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So you want to start up a new business? You’ve done your research into the existing businesses and checked out your competition whilst gaining some hands on experience along the way. You’re armed with your business plan, outlining your every move from your objectives, strategies, and target market to your financial forecast. There’s just one little hurdle left to leap over, the decision and arrangement of business finance.

More and more businesses and new ventures are failing to get anywhere past the starting line. There are two main reasons why most businesses fail; poor management plans and inadequate business capital, which is why raising money is important in the early stages of a business.

So why is this need for finance so important? As a new business you will need not only a place for your business to be housed in but also all of the necessary equipment that will be needed to make sure your business is running to its fullest. This start up capital will be used to pay for:

• The renting/buying of a premises/office space, which will require payment of three months in advance.

• Any machinery or office equipment

• Business services such as insurance

• The purchase of stock

• Wages and salaries

• Any financial cover you may need while waiting for customers to use your business

In order to gain the correct business finance and to make sure that people will be willing to invest in your business it is essential to have a well structured and developed business plan. It should state how your business will be different from the competition, why people will use your business and how you will supply your customers with what they require. Research has been conducted that has found companies with a structured business plan stating their overall goals and how they plan to move their business towards them make a considerably higher profit than those that don’t.

Most avenues that you chose to go down in order to secure business finance won’t come near your business without this business plan. So what are your options when it comes to business finance? There are many options open to you but that doesn’t mean that all of them are right for you.

One of the first places that people go to for business finance is there bank. Although banks are still the most common form of business finance it doesn’t automatically mean they are the best. All banks vary in terms of what they can offer start-up businesses, so it is important to talk to a number of them before making a decision. Banks will also expect you to put some of your own money into the business; as a new business venture you may not be able to afford this.

Another form of business finance is asset financing. This is a line of credit that is secured by assets such as real estate. So as a new business venture you can use these assets as collateral to obtain capital. However if payments aren’t made your assets may be seized.

An ever popular choice of Business Finance for a new business venture is a business angel. Business Angels are called this because they often save struggling firms with both finance and advice when no one else will. Angel investors understand the needs of a new business through there own experience and are able to advice and aid the companies in many ways. Business angels are successful entrepreneurs or executives. With their skill, luck, careful planning and good management; they have turned many businesses into profitable ones.

Finally there are venture capitalists who are private investors for financing new or growing businesses and even struggling established businesses. Even though they are high risk investments they can offer the potential for above average returns and/or a percentage of ownership of the company.

By: Helen Cox

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Business Finances

TOP TEN TIPS FOR MANAGING YOUR SMALL BUSINESS FINANCES
Always work on the basis that you’ll need more than you actually do.

You often only have one chance of raising money so remember that when working out your figures. If your figures are too conservative, it could have a huge impact on the future of your business.
The bank is not the only place to get money.

Having said that, don’t go anywhere near Loan Sharks but always keep in mind that other resources can be available.

Cash Flow
If you’re having a problem with cash flow, contact all the people that it may affect,
Customers and suppliers. Try to re-negotiate term where possible but make sure that you
can afford the new payment terms. This will help to maintain trust.

Never give credit
You haven’t made a sale unless you have received the money for it! Never give credit would be a hot tip but if you do go down that route check out references from other suppliers. Also make sure that payment conditions are included in the bill of sale.

Keep the important people in the know
Banks, Inland Revenue etc will be more sympathetic if you keep them informed. Even if that means just dropping emails to people or giving them a quick ring. Keep those contacts open.

Chasing those debts
Make sure you have a procedure in place for chasing non-payers. This could be a an invoice followed by a ‘phone call and then another invoice including an admin’ charge if this is what you want to do.

Forecasting

Forecasting and estimating for your business is essential but remember that it need to be Realistic. It’s sensible to forecast monthly but if things get tight this can be done either monthly or daily if necessary.

Records

Despite being a tedious task keep a record of everything!!!! Telephone calls, receipts, orders, payments, bank statements. EVERYTHING. Track all money coming in and out of your business. Utilise one of the many software packages that are available.

banks
Even if you do not get your funding from a bank, you will still need to use one. However everybody is in the market now to get your custom so make sure you shop around for the best deal. Read all the small print so you know when any low interest rates are due to end. It does not good business sense to be loyal to any bank. Always get the best deal you can.

Negotiate, Negotiate, Negotiate
Negotiate on everything – interest rates, payment dates, minimum/maximum orders. Etc.It never hurts to ask and “if you don’t ask you don’t get!

By: Helen Dowling

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