R-E-S-P-E-C-T

Large IT vendors continue to blunder in targeting the small business market.

ConnectIT, an email newsletter for the computer channel community published by Richmond Hill, Ont-based Integrated mar.com, takes IBM to task for not respecting the uniqueness of the SME market. A June 20 story by Paul Weinberg quotes Wayne Kernochan, senior IT analyst at New Hampshire research firm Illuminata Inc., as saying, “I continue to sense that some vendors don't feel the SMB market is worthy of focus."

He noted that IBM has only managed "modest success" in its push with SMB-targeted products and services, because it has concentrated on the upper level of SMB (which includes far fewer firms than the small-business mainstream).

Kernochan also points to IBM’s Informix division, which he says pumped one release of database software “indiscriminately” into the channel without distinguishing between large enterprises and SMBs. As a result, "The SMBs didn't see much value in it."

Neglecting the small truths of the small business market can be expensive. Kernochan says Informix took six months to recognize its error, “but by then the financial damage to the company had already occurred.”

Although big companies say they value the small business market, he urges IT vendors to do more to reach that type of customer. "Vendors have to figure out how to get at that market in a cost-effective way. They tend to focus their innovation efforts on the large enterprise market."

Kernochan urged IT vendors to broaden their channel coverage beyond VARs and resellers, and reach out to SMB-oriented independent software vendors (ISVs) or solution providers.

He says technology products for small business have to be simpler to use and require less administration. And he warns that small business’s dissatisfaction with the IT industry is “getting higher and higher.”

This article suggests that the solution for big companies such as IBM is the same as that for everyone targeting small business. Acknowledge the special characteristics of this market. Don't dumb your products down: just make them easy to sell, easy to understand and easier to use. Recognize that these customers are intelligent professionals, but not specialists.

And understand that no matter how big you are, you only have one chance to prove yourself.

Start Your Own Business in 10 Easy Steps

If you are ready to venture out on your own and be your own boss, there are 10 essential steps you need to follow to be set up for success. I will list these steps then go into detail about each step. These steps apply to all small, home-based businesses.

• Determine what area you would like to do business in
• Write a business plan
• Come up with a business name
• Get a business phone number, Address and Checking Account
• Register Your business
• Get Insurance and Bonding
• Get office/business supplies
• Build a Website
• Start Advertising
• Meet with your first customer

1. The first and most important step is to determine what you would like to do. What areas interest you? Do you like pets? Do you like people? Do you want to work on the computer or out in the fresh air? A great place to get an idea of all that is available is IVillage and About.com. Make sure you research the business you are interested in getting into to determine if it is a right fit for you. Join discussion forums and read up on what others in the business experience and ask questions. You can also go to the local library and read books written on the subject. You don't want to invest your money into something you find is not right for you.
2. A business plan is essential for your success and growth as an entrepenuer. You can get a free template at SCORE. A business plan will outline the steps you need to take, how much to spend, and your goals.
3. Once you have decided and researched the business you want to start, you can come up with a business name. Keep it simple and easy for your customers to remember. Your business name should have in it a reflection of what you do. For example, if you are a house cleaner, your business can be something like Perfect Touch Cleaning. If you are a landscaper, you can be called Trimmers Landscaping. You just want to be sure your customers can figure out what you do from your name. Also, make the name easy to pronounce and spell. Ask the people on the discussion groups you belong to which they like best and get some valuable feedback.
4. The next step is to set up your business identity. Your phone number should not be your home number. You can use a cell phone or set up a second dedicated line. You should have a professional voice mail message and should always answer the phone professionally. Next is to set up your mailing address. You can use a PO Box or a private box through UPS. The UPS boxes sound more like you have an actual business address, but either is fine. A PO Box is much cheaper if you want to be cost effective. Your checking account should then be acquired after your phone and mailing address are established. You can get a free business checking account.
5. Once your identity is in place, you can get a business license or register with the state if a license is not required. To find out what is needed for your business, click here.
6. Next you will need a general liability policy. The type of policy coverage will depend on the type of business you are starting. The price will range from $200-$1500 depending on amount of coverage. You can get a price quote at netquote.com or call your local agents such as Nationwide or State Farm. If you are going to have employees, you may also want to get a bond. This will cover your business against employee theft. Your local agents can also help you with this.
7. Next you will need to get your business cards, business forms and other office supplies. You can get your business cards at Vista Print and your business forms at Home Business Forms.
8. Next you will need to start building your website. You can start off with just a basic, free website and move to bigger and better things when you are ready, but I suggest you at least get a domain name ($8/year) to point to the site that way when you are ready to get a better website you won't lose your search engine rankings and have to start over. The purpose of a website is to provide your potential customers with a way to find you over the internet. It doesn't have to be fancy. You mainly just need your name, what you offer and contact info. You can do a very easy, simple website for a great price at Homestead.
9. A website is your first form of advertising, but you are now ready to hit the pavement. Put ads in the paper, inquire about the yellow pages, put up some flyers and starting spreading the word that your business is up and running. During the first year you will be doing a lot of advertising. Make sure you track how much, when and what your return was on advertising so you know where you will need to focus your money next time. You have to determine which form of advertising worked best at getting paying clients.
10. Now that you have reached the last step, your phone should be ringing with your first customer ready to schedule an appointment!

Good luck!

Your Friends at Home Business Forms

www.businessformsstore.com

What Should I Expect to Spend my First Year in Business?

I am constantly asked the question, "What should I expect to spend the first year in business?".

The following is a compilation of normal expenses when starting your own home based small business. The figures are based off of businesses such as pet sitting and house cleaning which has relatively small start up costs since office space and retail products are not required.

1. Write a business plan: Free template at SCORE: http://www.score.org/business_toolbox.html : a business plan will be a very important tool to ensure you know what to expect and stay on track.
2. Obtain a Free Business Checking Account: Most banks will offer free accounts. Be sure you are aware of how many withdraws and deposits you are allowed when comparing banks.
3. County/City Zoning for home offices – Varies (if needed): Most states will not require this since they are home based, but it is a good idea to double check to be sure.
4. Business License (if required) – Starting at $100/yr depending on state: Some businesses do not require a license, others do. Go to http://www.business.gov/register/licenses-and-permits/ and enter your city or state to see if you need a license.
5. State Fictitious Name (if applicable) - $50 (depends on state): If you do not need a license, you will need to register your business with the state.
6. General Liability Insurance – Starting at $200/yr : Pet sitting GL policies are around $200 and cleaning will be around $500. These policies will vary depending on the amount of coverage you choose to have.
7. Dishonesty Bond - Starting at $125/year : Bonding is optional, but is a good idea if you have employees to protect your business assets.
8. Basic office supplies - $200 : This covers paper, ink, business forms, business cards, pens and other incidentals.
9. Computer and Printer - $1000 : You don't need anything fancy and should be able to find something relatively cheap on Ebay. Dells go for a great price and have all you need.
10. Business Phone (cell) - Starting at $480/year
11. Advertising - can be up to $1000 depending on how heavy you want to advertise
12. Association Fees (optional) - $500 : There are many assocations you can join, one being the Chamber of Commerce or the Better Business Bureau. I would recommend starting with the Chamber as that will give you the most bang for your buck and offers advertising. Start with one or two a year and add on as your business grows.
13. Uniform - $50 : You can get a couple of polo shirts or t-shirts with your business logo on them for a more professional look.
14. Car (gas and service) - $2200 (weekly fill ups)
15. Business Logo – Starting at $50 depending on level of difficulty: 
16. Domain Name and Web Hosting – Starting at $7.95/yr for .com and .net. Go to Go Daddy.
17. Website Creation – We can design a professional website for you for $300.  
18. Attorney costs – Starting at $400.00 (Pre Paid Legal)
19. Accountant Fees– Starting at $250/year or you can do it yourself for $50.

Total: Around $7200/year. Keep in mind, you don’t have to do all of these options or spend as much as is listed. You can keep it within your set budget and add more each year as you get more business and decide it is time to grow even more. It is recommended you focus your money on advertising.
For more information specific to your industry, go to www.businessformsstore.com and scroll down to find your business. The website offers specific FAQ's to help you step by step start your own business. When you are ready to move past the research phase and actually start up your business, go to www.businessformsstore.com and order your professional business forms.

How to really win friends and influence people

Note: This entry is cross-posted from my other blog, Canadian Entrepreneur.

What do you think when you see the words? “Please help us serve you better.”

You figure they're asking for something that will mainly help them and not you, right?

That's what I thought today when I got an e-mail from Ottawa sales coach Colleen Francis with that cheesy headline. I only read it because I decided not to do whatever it was they wanted me to do.

To my surprise, though, Colleen’s business manager, Casey, had written a very friendly letter explaining how they were upgrading their database. “We currently have 3 databases (UGH!) and we are streamlining them into 1,” wrote Casey. “In order to help us ensure you continue to receive the sales information you want, we would love you to update your profile.”

By using real language (“love”) and a little humour, and by giving us some insight into the human side of their database search, they got me onside.

But then they added the flourish. "Now, you are probably wondering "What's in it for me?" - right? Well - I will tell you. When you update your information I will personally send you a CD! A $79US value for simply filling in 10 little fields.”

You could choose a CD on coommunicating through "gatekeepers" and email, or another on “Turning No into Yes.”

"Once you have completed the form please reply to me with your choice of CD and I will pop it in the mail,” writes Casey. “We do hope you will help us with our spring cleaning.”

Congrats to Casey and Colleen for demonstrating how to turn No into Yes - using positive, informal language and appropriate incentives to motivate and engage people. Which could be why their company is called Engage Selling Solutions.

How could you use these techniques in your next communication with busy business owners?