Cold Calling – Finding New Potential Customers through Business Networking

Posted on April 30, 2012 by

by Alice Nadin, SCORE E-Mail Counselor

Business Networking is still the #1 way to turn cold calls into potential customers. Classic business networking is using contacts/clients you already have to find new potential customers. It can be as simple as asking current clients to suggest/recommend new ones to participating in structured Business Network groups like BNI.com or your Chamber of Commerce or other local Network groups – every town or city has them.

Seek the local Network Groups out and learn what value they have for your business. Importantly members of network groups understand the purpose – to find new business and educate other Network members about their own business so they can find new leads. So when you call a prospect, you can say, Joe of XYZ Business suggested I call – this is much stronger than cold calls – plus it gets you passed the gate keepers or administration personnel who screen your target prospect’s calls.

LinkedIn

LinkedIn.com has redefined cold calling. Now, in addition to the local active network groups, you can build a dynamic network of contacts online. Do you have a LinkedIn profile? Have you built your network? From that network you can do much the same as classic networking for within all the contacts that you already know (and should be invited into your LinkedIn network) is someone who knows someone, who knows someone you are trying to approach for new business.

Do not know how to use LinkedIn? There is a ton of great help right on their website.
For New Users: http://learn.linkedin.com/new-users/
For small business, see http://smb.linkedincreatives.com/
or see the links on the left of the above page for more options and help.

 

Posted in Business Networking, Marketing | Tagged , , , , , , , , , | 1 Comment

Developing Financial Projections

Posted on April 26, 2012 by

Bob Grant, SCORE Mentor/Counselor

Developing projections of revenues and expenses is often confusing and difficult. Where do you start? How do you do them? Why is it so important? Where can you get help?

First, financial projections are normally required along with a written Business Plan if you are seeking financing for your new business. Banks and investors want to see how you intend to repay the loan you are requesting. But more important is the fact that it forces you to take a hard look at the cost of starting and operating your business and the financial risk that you are taking.

Start by looking for a template that you can use to guide you through the development of your financial projections. This template will guide you through the process and provide you with a finished format of financial statements – Startup Costs, Income Statement, Cash Flow Statement, and Balance Sheet. A good example of a Financial Projection template is available on the SCORE website (www.score.org) under Templates and Tools and includes the template, notes explaining how to complete the financial projections using the template, and a sample of a set of finished financial projections.

It is critical that you do your research before beginning the development of your projections. Your estimated Revenues and Operating Expenses must be based on valid information. Many entrepreneurs tend to overestimate revenues and underestimate expenses which results in a shortfall in working capital. This is one of the primary reasons for new business failures.

Bottom line:
• Do your research in order to accurately develop estimates of your startup costs and your monthly revenues and operating expenses.
• Get help if necessary. Request mentoring from SCORE or consult with your accountant.
• If you will do them yourself, look for a good template that you can use to develop a full set of financial statements including Startup Costs, Income Statement, Cash Flow Statement, and Balance Sheet.
• Understand the completed Financial Projections and use them as a tool in guiding your new business.

Posted in Financial Reporting, Planning | Tagged , , , , , , , , , , , | 1 Comment

Making Your Business Stand Out

Posted on April 23, 2012 by

By Joyce Pearl, SCORE Counselor

What can you do to make your business stand above the rest? When you consider that there really isn’t anything new under the sun, it takes some clever ideas. Creative thinking is important during the planning stage, long before opening the literal or virtual door to your customers. Two ways to stand out from the crowd are to have a niche and/or exceptional service.

Even a small variation can place your business in a niche in the industry. If you have a pizza shop, it’s hard to stand out as that is a popular business. Visiting the competition might give you an idea of what has not been done. You may need to dream up unusual toppings. But, how about providing something extra for take-out orders? In addition to napkins, why not paper plates and hand wipes, of course imprinted with your business name and phone number and a take out menu. Don’t forget that the cost of extra paper products needs to be factored into the selling price. This is a place where owner supervision is important. Employees will throw in handfuls, where as the boss will count out what is likely needed.

Attention to serving your customer is another way to set your business apart. An example might be a home or commercial painting business. Call two days before starting to confirm the time of arrival and re-confirm the expected time the work will take. When the job is completed, the painter should identify the color and room on unused cans of paint. Why not advise the customer that you will call in six months (or 12 months) to check if any touch up work is needed, of course at no cost. And mark the calendar to do so, because it just may be that other painting is needed at that time. Send a holiday greeting to remind the customer that you are available to do more excellent work. Remember, time is money so the extra touches need to be built into your estimates even if the cost is small.

Finding a niche and offering attentive service to the customer goes a long way in assuring the success of your business.

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Why Businesses Fail?

Posted on April 20, 2012 by

Why Businesses Fail?
Bob Carlson, SCORE Mentor/Counselor

You’ve probably heard that a high percentage of start-up businesses fail with the first year or two.

It’s true. But, why do so many fail?

The following are among the top reasons:

# 1 The owner(s) had no previous experience in the business field they plan to enter.
Example: Just because you love to cook is not reason enough to open a restaurant. If you really want to own a restaurant, get a job in a restaurant for 6 months. Learn firsthand what it takes to manage the business.

# 2 Lack of family support.
If your spouse, mate, or other family members are opposed to your business idea, your home-life may suffer and in turn affect your enthusiasm.

# 3 Under estimating the amount of money it will take to maintain the business until it starts generating profits.
Look beyond the start-up costs.

# 4 Failure to write a Business Plan (see # 3 above).

# 5 You plan to start and grow your new business by offering prices below those of your competition.
This seldom works out well. Your competitors can lower their prices to match or beat your prices for a much longer time than you. It’s likely they are profitable, so lowering their prices simply decreases their profit margins, while you sit wondering why you are getting little or no new clients.

 

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Business Plans

Posted on February 12, 2012 by

by Michael Mohajery, Counselor Chapter Chair Most people think that the primary purpose of a business plan is to raise capital for a business via conventional bank loan, “angel” investor, sale of stock and/or any other of the myriad ways … Continue reading →

Posted in Planning | 23 Comments

Every Small Business Owner Needs A Team

Posted on February 12, 2012 by

by Michael Mohajery, Counselor Chapter Chair operate as a sole proprietorship, partnership, limited liability company or corporation? Will you perform your service or sell your product from your home or will you lease office space? Do you have enough money to fund … Continue reading →

Posted in Planning | 5 Comments

Got a BIG idea? Steps to See How Big It Really Is.

Posted on February 10, 2012 by

by Alice Nadin, Counselor Research the idea; determine FACTS on how big an idea this is. Who will want it? What are buyers currently using that this item will replace? WHY will buyers make the change? How much will they … Continue reading →

Posted in Planning | 1 Comment

Focus Your Activities

Posted on February 10, 2012 by

by Bernard Grandjacques Focus your activities Most business leaders admit that their organizations lack focus and that their organization capabilities do not completely support their strategy according to a Booz & Company survey of more than 1,800 executives1.  A majority of … Continue reading →

Posted in Planning | 3 Comments

Understanding the Financial Reports for Your Business

Posted on February 10, 2012 by

by Mary Lee Gannon No matter where you are in your career, you need to be able to understand financial reports so that you may plan, ask the right questions, hedge off disaster and grow. I meet entrepreneurs every week … Continue reading →

Posted in Financial Reporting | 18 Comments