Biz Tip

Business Planning

A business plan is not only something you show to the bank in order to get a loan. The process of formatting a good business plan helps you take an objective look at your venture as a whole and, once finished, the plan can be used as a tool to help you manage your business.

Biz Tip

Plug and Play Opportunities

Being an entrepreneur does not necessarily mean building a business from the ground up. There are thousands of franchise opportunities available. Starting with an already established brand can help you accelerate your success right from the get go.

Biz Tip

Precious Resources
Time and money are rarely more important to a business than when it is first formed. Analyzing internal Strengths & Weaknesses as well as external Opportunities and Threats can help a young business understand its next step.

Business Turnaround Strategies

Dear Captain BUZ:

The economy continues to represent unpredictable challenges for me and my business. I’m not sure what to do or where to begin. Please help!

Lee, New York

Hi Lee:

You’re not alone. Let’s begin by assessing The Four R’s: Restructure, Refinance, Recapitalize and Respond.

1. Restructure Restructuring your business under the current economic climate can take many fruitful forms. For example,
   • What You Sell: Reposition, repackage, reintroduce and restructure what you sell to capture new market opportunities and new customers. For example, if you’re in new home construction, consider shifting to home renovations or green construction – Both offer incentives under the current economic stimulus package.
   • How You Sell: If you don’t yet sell on line or do, but not enough, restructure your ecommerce strategy
   • How You Promote: Revisit how you market and promote your offerings using No-Cost Low-Cost Marketing techniques.
   • Debt: If you find your cash flow to be going out more than flowing in, evaluate debt restructuring options.
   • Overhead: When times are tough, overhead is the first place to restructure to potentially save costs. This includes possibly cutting staff hours, sub-letting space, collaborative marketing strategies that split costs and limiting new spending. Using a comprehensive Breakeven Analysis Worksheet can help you to determine if and where such costs might be possible.
2. Refinance If you carry debt, look for ways to reposition it in order to lower monthly payments, reduce interest or save taxes. For example,
   • Business Stabilization Loan: Contact your local financial institution or State SBA Office to learn about a new 100% SBA guaranteed loan program created as part of the American Recovery and Reinvestment Act (ARRA) that provides deferred-payment loans of up to $35,000 to viable small businesses that need the money to make payments on an existing, qualifying loan for up to 6 months.
   • Cancelled Debt Tax Incentive: Any debt cancelled in ‘09 and ‘10 can be tax deferred with no payments in the first 4 to 5 years and the balance paid off in years 6 through 10. This means that if you negotiate paying off a $100K loan at $75K, the $25K difference that gets booked as income, does not incur a tax payment obligation until 6 years later.
3. Recapitalize Examine how your business is capitalized currently to look for ways to save. For example,
   • New Loan Programs: Contact your local financial institution or State SBA Office to learn about new SBA Loan Programs where application fees are reduced or waived; guarantee levels are increased; and micro and expanding businesses are particularly targeted.
   • Investor Incentives: Check out Angel Investment venues because American Recovery and Reinvestment Act (ARRA) has increased capital gains exclusions from 50% to 75% when stocks are sold after 5 years of ownership as a strategy for encouraging more small business investments.
4. Respond Lastly, be sure to RESPOND versus REACT to any current business pressure. To do this, tap into your local public business assistance network where you can find free and low-cost help with most any aspect of your business. For example,
   • Free sources of Business Counseling
   • Free sources of Business Marketing Help
   • Free Business Start-up Help
   • Free help Expanding Sales Internationally
   • Network with Trade Associations
   • Free Financial Counseling

In summary, it will pay to remember that planning without action is a waste of time. Therefore, be sure to act on any idea, resource or strategy introduced in this article. Often the only difference between success and failure is to “just do it.”

Sincerely,
Captain BUZ

Taking advantage of eMail Marketing?

Ellen from North Dakota writes:

Dear Captain BUZ:

I know marketing is very important to my business, particularly when the economy gets shaky, but how can I take advantage of email marketing when I don’t know where to begin?

Dear Ellen:

eMail marketing is all about leveraging technology to make friends. In fact, let’s use the word “FRIENDS” to introduce 7 easy ways to launch a productive eMail marketing strategy:

1. First and foremost, the letter “F” means FOCUS

This means that you will want to know exactly who your audience is when framing your eMail marketing strategy. There are different eMail formats for different audiences. For example, you may announce a promotional event, distribute an eNewsletter to existing or prospective customers, and send a press release to media representatives to build public relations. The point is, to know who you want your eMail message to reach and why.

2. For the letter “R” we stress REFINE your campaign

This means that you want to be sure to refine your list AND your messaging over time to be sure that it is working. In terms of your list, you may find that having more than one type of list may be useful, such as customers, prospects, media, suppliers, investors, board members, etc. Your message is likely to be different for each group and will change over time to keep it interesting and compelling.

3. “I” means INVESTIGATE

To ensure that your campaign is effective, it is very important that you track, analyze and refine your eMail Marketing campaign on an ongoing basis. There are established reporting & analytic tools available from outsourced eMail Marketing service providers, such as Bronto, which help to ensure that your eMail messages are being received and that you are in compliance with anti-spam practices.

4. “E” is for ENERGIZE

Marketing in any form is all about energizing your audience and this holds particularly true with eMail marketing where you can include links, toll-free numbers and eMail addresses so that people can immediately respond once they are energized! A good rule of thumb is to create messaging that achieves 3 things:

• Gets Attention; e.g., strong title, compelling introduction
• Builds Urgency; e.g., sale ends xx/xx/xx, solve problem today, address need now
• Motivates Action; Call 1-800, visit www., buy now, cover story

5. “N” for NARROWCASTING

eMail marketing is a form of 1-to-1 marketing meaning that you are communicating to one person at a time. This 1-on-1 relationship is very important to understand because you want to be sure that you are speaking to that person’s interests, needs and wants. In this regard, narrowcasting means that your message must speak to that specific target audience or niche market based on their particular values, preferences, or demographic attributes.

6. “D” is for DELIVER

As with all aspects of your business, be sure to deliver on what it is that you promise in your eMail marketing messages. While eMail can be cost-effective and cheaper than the price of a stamp, people take their eMail seriously. If you send eMails to people who have not “opted in,” you may be reported as SPAM. If your messaging does not speak to your audiences needs, they may unsubscribe.

7. “S” is for SELL

One of the main objectives for launching an eMail Marketing strategy is to increase sales and so whether you are eMailing to the media, your Board, or customers, be clear that every message sent says something positive about your business. Make each message count.

The good news is that there are service providers out there who specialize in eMail Marketing. For example, Bronto offers proactive client support and educational resources regarding eMail marketing best practices, standards and tactics for success.

Wishing you productive progress ahead!

Sincerely,
Captain BUZ