Synergy is the term used to describe a situation where the final outcome is greater than the sum of the individual parts. This can happen when the right two businesses come together and share their information, clients, markets, or other resources. Through synergy, companies can increase revenue and cut costs.
Revenue increases can be found when companies have different, yet complementary products or services that don’t compete with the other business. This gives each company access to larger markets as they share their client base. For example, if a company that sold iPhone accessories teamed up with an iPhone application developer they could both market and sell to each other’s customers without stepping on one other’s toes.
Lowered costs can also take place when two companies come together. The term Economies of Scale refers to the cost advantages associated with expansion of production. Benefits include purchasing supplies in bulk, reducing the number of managers needed, closing an office that isn’t needed anymore, or combining marketing campaigns to reduce cost and risk.
What do you think? Please share an idea or example of how companies can use synergy to increase business and lower costs!
Part I: Reduce Overhead Costs and Debt
Part II: Synergy - Become partners with a complimentary business
Tuesday, November 25, 2008
Monday, November 24, 2008
Strengthen Your Business in Uncertain Times: Part I: Reduce Overhead Costs and Debt
Making sure your company has no unnecessary expenses and a liability is the first step you should take when looking for ways to strengthen your business during uncertain economic times. Here are a couple ways you can look to keep your business lean and operating in the positive.
1. Find and reduce any big costs or debts from things that are obviously not needed to keep your core business operating. One way to do this is to lay out all of your larger expenses and rate them based on two score calculations: Elimination Consequence and Amount Saved.
Elimination Consequence:
Rate each item from 0 to 5 based on how much it hurts your business to eliminate it - 0 means you cannot eliminate it without severely affecting your business and 5 means you can eliminate it without any affect to your business operations.
Amount Saved:
Then rank each item by how much potential money it can save your company - 0 saves no money and 5 saves a lot of money.
To get the total value, multiply the two scores together for each item. For example, your best performing senior sales person may score a 4 on the amount of money saved, but a 1 for the elimination consequence (because it would largely affect your sales to lay them off), their overall score would be: 4 * 1 = 4. The items with the highest scores are the first things you should consider getting rid of. Of course, this is just a tool to help you gain perspective. Where you actually decide to cut costs is up to you.
2. Reduce costs by setting a target goal to cut a certain percentage, say 10 percent, from all the different parts of your business. This is a good alternative if you can’t find any big expenses to get rid of. By tightening the slack a little here and there, it can add up to significant savings for your company as a whole.
Each business is different, so use your creativity to find places to save. Ask yourself how you can produce your product for less. Eliminate production of a product that isn’t performing as well. Or, if your business travels a lot, consider using more fuel efficient vehicles or traveling coach instead of first class. Greening your business is a good way to save money while also increasing your business image.
It’s not always easy to cut costs, but in a down economy only the lean survive. Use your creativity to find places to cut costs while improving their business at the same time. The more of these you can find, the stronger your business will become.
Part I: Reduce Overhead Costs and Debt
Part II: Synergy - Become partners with a complimentary business
1. Find and reduce any big costs or debts from things that are obviously not needed to keep your core business operating. One way to do this is to lay out all of your larger expenses and rate them based on two score calculations: Elimination Consequence and Amount Saved.
Elimination Consequence:
Rate each item from 0 to 5 based on how much it hurts your business to eliminate it - 0 means you cannot eliminate it without severely affecting your business and 5 means you can eliminate it without any affect to your business operations.
Amount Saved:
Then rank each item by how much potential money it can save your company - 0 saves no money and 5 saves a lot of money.
To get the total value, multiply the two scores together for each item. For example, your best performing senior sales person may score a 4 on the amount of money saved, but a 1 for the elimination consequence (because it would largely affect your sales to lay them off), their overall score would be: 4 * 1 = 4. The items with the highest scores are the first things you should consider getting rid of. Of course, this is just a tool to help you gain perspective. Where you actually decide to cut costs is up to you.
2. Reduce costs by setting a target goal to cut a certain percentage, say 10 percent, from all the different parts of your business. This is a good alternative if you can’t find any big expenses to get rid of. By tightening the slack a little here and there, it can add up to significant savings for your company as a whole.
Each business is different, so use your creativity to find places to save. Ask yourself how you can produce your product for less. Eliminate production of a product that isn’t performing as well. Or, if your business travels a lot, consider using more fuel efficient vehicles or traveling coach instead of first class. Greening your business is a good way to save money while also increasing your business image.
It’s not always easy to cut costs, but in a down economy only the lean survive. Use your creativity to find places to cut costs while improving their business at the same time. The more of these you can find, the stronger your business will become.
Part I: Reduce Overhead Costs and Debt
Part II: Synergy - Become partners with a complimentary business
Thursday, November 6, 2008
Business Strategies for a Recession
As the credit crisis hangs over our economic future, many small business owners may be asking the same question: What can I do to recession proof my business? Luckily, as a small business, you have the capability to adapt quickly – an advantage your larger competitors don’t have. Here are a few things you can do to get your business in shape:
Diversify and avoid the middle market
As the current market slows, you can strengthen your client base by broadening the services and products you offer. By providing things that your competitors don’t have, you can attract new customers and stay appealing to your old ones. You never want to get too dependent on one customer’s support because they could disappear and so would your business. As you begin to brainstorm new product ideas, focus on the things that people can’t go without and avoid the middle market. During a recession, people are more likely to choose a similar product that costs less compared to the slightly nicer one. They don’t want to pay extra for ambiance, so strip down your product to the essentials.
Increase marketing, but do it cheaply and consistently
During slower times you have to find new ways to attract customers and make sales. The key is to not expose your business to expensive marketing campaigns like image building or large ad spaces. Their success is hard to measure and may not even work. Instead, offer promotions and coupons. People are looking for good deals, and it makes them feel better to know that they are saving money. This reduces upfront marketing costs by ensuring a purchase before any money is spent. Short term promotions and coupons allow you to attract the attention of bargain shoppers without needing to cut your prices long term. They also give you the chance to hook new customers onto your product. Lastly, make sure you market consistently, all year long, so that you are always attracting new business for the future.
Go green to save green
Making your business greener can save costs and is good for the environment. It gives customers another reason to choose you over someone else. Start off by reviewing your energy costs. You can call your electricity company to request a free energy audit. Sometimes they will even visit your business to tell you where you can reduce energy costs. Simple things like changing from halogen light bulbs to L.E.D. bulbs can cut your energy bill way down. One company in Florida saw their energy bill decrease by half just from changing the bulbs they used. Going green is an ongoing process, but if you start off with the obvious fixes that are cheap to change you’ll start to see savings right away.
No matter what the economic circumstances happen to be, there are always businesses that do well and those that fall behind. Being smart about the products you offer, how you market them, and where you cut costs can keep your business running profitably. The business changes you ultimately decide to make are only limited by your creativity and flexibility.
Please feel free to share any business ideas you think are important to be successful during a recession!
Diversify and avoid the middle market
As the current market slows, you can strengthen your client base by broadening the services and products you offer. By providing things that your competitors don’t have, you can attract new customers and stay appealing to your old ones. You never want to get too dependent on one customer’s support because they could disappear and so would your business. As you begin to brainstorm new product ideas, focus on the things that people can’t go without and avoid the middle market. During a recession, people are more likely to choose a similar product that costs less compared to the slightly nicer one. They don’t want to pay extra for ambiance, so strip down your product to the essentials.
Increase marketing, but do it cheaply and consistently
During slower times you have to find new ways to attract customers and make sales. The key is to not expose your business to expensive marketing campaigns like image building or large ad spaces. Their success is hard to measure and may not even work. Instead, offer promotions and coupons. People are looking for good deals, and it makes them feel better to know that they are saving money. This reduces upfront marketing costs by ensuring a purchase before any money is spent. Short term promotions and coupons allow you to attract the attention of bargain shoppers without needing to cut your prices long term. They also give you the chance to hook new customers onto your product. Lastly, make sure you market consistently, all year long, so that you are always attracting new business for the future.
Go green to save green
Making your business greener can save costs and is good for the environment. It gives customers another reason to choose you over someone else. Start off by reviewing your energy costs. You can call your electricity company to request a free energy audit. Sometimes they will even visit your business to tell you where you can reduce energy costs. Simple things like changing from halogen light bulbs to L.E.D. bulbs can cut your energy bill way down. One company in Florida saw their energy bill decrease by half just from changing the bulbs they used. Going green is an ongoing process, but if you start off with the obvious fixes that are cheap to change you’ll start to see savings right away.
No matter what the economic circumstances happen to be, there are always businesses that do well and those that fall behind. Being smart about the products you offer, how you market them, and where you cut costs can keep your business running profitably. The business changes you ultimately decide to make are only limited by your creativity and flexibility.
Please feel free to share any business ideas you think are important to be successful during a recession!
Monday, November 3, 2008
Why Online Business Makes Sense in a Recession
As Wall Street swings up and down, consumer spending drops, and news headlines reveal banks failing left and right from the mortgage crisis, it seems probable (if not inevitable) that our economy is heading towards a recession. But don’t crumple up and toss away your well-thought out, ingenious business plan yet! A slow economy does not necessarily mean that your business can’t make money. There are still plenty of opportunities for success if you engage in the right sector, and the best place to be right now is virtual.
Ecommerce was up 13% in the first quarter of 2008 with online revenues at over $32 billion. Compared to store sales, online retail is growing at triple the rate, which means that customers are increasingly shopping online. One study by Nielsen Online suggested that convenience and ease of use is a big reason why people are changing their buying habits. People are able to shop any time of the day while having access to a large selection of products and prices to compare between.
High gas prices are also causing shoppers to think twice about spending extra money to drive to the mall. In some cases it costs more to drive to the store and pick up the item than it does to have it delivered to your doorstep. Stores like Zappos.com, an online retail shoe store, have created entire businesses by exploiting the convenience of online shopping and free shipping. Their business model supports free shipping (both ways) with a 365 day return policy. Because storefront costs are low, they can pass along savings to their customers in the form of free shipping. Zappos was founded in 1999 and they’re projecting over $1 billion in sales for 2008.
Starting a business online allows you to cut out overhead expenses typically associated with launching a new company. By starting online you can reduce the rental payment, utility bills, and staff wages from your costs. And you can keep your online store open 24 hours a day, 7 days a week. This flexibility lets you keep your day job while you work on your personal business at your own time and pace.
If you have more than one business idea, you can try them all out with little additional cost to see which one will work best. Online Ecommerce tools allow you to test out your market before you risk too much investment capital. For instance, if you’re thinking about selling a product, you can test out the market by selling on EBay before spending the money to set up and market a new website. EBay already has millions of customers coming to their website regularly, so why not take advantage of that?
Another benefit of having an online business is that it allows for automation. You can save a lot of your own personal time, risk, and frustration if you create your business so that you can outsource its functions to places that already specialize in them. Once your business has gained some success, you can contract out things like manufacturing, order fulfillment, or customer service. By doing this you can potentially free yourself from the majority of the day-to-day operations, giving yourself time to focus on more important things like designing your next great product or idea.
As the U.S. economy remains unstable, the internet provides a customer base with less boundaries and more diversity. Not only can you sell your products or services to people worldwide, buy you can also find potentially new, untouched markets.
These are just a few of the advantages of starting an online business during a recession. Please share any thoughts or ideas you have on the topic!
Ecommerce was up 13% in the first quarter of 2008 with online revenues at over $32 billion. Compared to store sales, online retail is growing at triple the rate, which means that customers are increasingly shopping online. One study by Nielsen Online suggested that convenience and ease of use is a big reason why people are changing their buying habits. People are able to shop any time of the day while having access to a large selection of products and prices to compare between.
High gas prices are also causing shoppers to think twice about spending extra money to drive to the mall. In some cases it costs more to drive to the store and pick up the item than it does to have it delivered to your doorstep. Stores like Zappos.com, an online retail shoe store, have created entire businesses by exploiting the convenience of online shopping and free shipping. Their business model supports free shipping (both ways) with a 365 day return policy. Because storefront costs are low, they can pass along savings to their customers in the form of free shipping. Zappos was founded in 1999 and they’re projecting over $1 billion in sales for 2008.
Starting a business online allows you to cut out overhead expenses typically associated with launching a new company. By starting online you can reduce the rental payment, utility bills, and staff wages from your costs. And you can keep your online store open 24 hours a day, 7 days a week. This flexibility lets you keep your day job while you work on your personal business at your own time and pace.
If you have more than one business idea, you can try them all out with little additional cost to see which one will work best. Online Ecommerce tools allow you to test out your market before you risk too much investment capital. For instance, if you’re thinking about selling a product, you can test out the market by selling on EBay before spending the money to set up and market a new website. EBay already has millions of customers coming to their website regularly, so why not take advantage of that?
Another benefit of having an online business is that it allows for automation. You can save a lot of your own personal time, risk, and frustration if you create your business so that you can outsource its functions to places that already specialize in them. Once your business has gained some success, you can contract out things like manufacturing, order fulfillment, or customer service. By doing this you can potentially free yourself from the majority of the day-to-day operations, giving yourself time to focus on more important things like designing your next great product or idea.
As the U.S. economy remains unstable, the internet provides a customer base with less boundaries and more diversity. Not only can you sell your products or services to people worldwide, buy you can also find potentially new, untouched markets.
These are just a few of the advantages of starting an online business during a recession. Please share any thoughts or ideas you have on the topic!
Friday, October 10, 2008
10 Must Have Online Resources for Any Business
As businesses take advantage of the internet more and more, new tools and online resources continue to be developed to fill business needs and make life easier. From creating an ecommerce presence to optimizing office performance to networking, the internet has become the essential medium for today’s businesses to function and compete. Here are our top 10 must have online resources for any business:
1. FastDue
Collection cycles are shortened with FastDue.com. FastDue is a free online invoice and collection tool that creates, manages, and communicates collection issues and agreements online. With FastDue.com, your time is managed more efficiently and your company is marketed more effectively. There are no fees or sign-up required, so you can get started immediately without any hassle.
Using FastDue, you get a professional and friendly way to efficiently communicate collection issues with quick results. Once your clients receive an online invoice, you can accept their payment through a secure PayPal or credit card transaction, or enable them to pay by check at their convenience. Not only does FastDue keep clear accounts of what is owed and what is paid, but you can also upload your unique company logo to promote your brand image. FastDue will automatically send reoccurring invoices and payment reminders at predetermined times enabling you to rest easily about your finances.
FastDue offers advanced features like co-branding and CRM that are specifically developed according to individuals company's needs. Chambers of Commerce across the state of Iowa use FastDue to communicate to and conduct business within their membership base. In FastDue My Accounts, you can organize all your business interactions, including all invoices paid and due. FastDue opens up a communication channel where all parties can create and negotiate terms of an agreement, and effectively resolve transactions in a secure and friendly online environment.
2. Skype
Skype is an online service that allows users to make phone calls over the internet. They provide free worldwide calling between other Skype users as well as instant messaging and video conference calling. In addition to the free Skype-to-Skype services, they also have good rates for calling or receiving calls from people who don’t have Skype. You can use your Skype number wherever you have internet connection. Additionally, you can purchase phones that work with Skype so that you don’t have to be tied to your computer.
Skype is a great service for businesses that are located in more than one location and people who need to communicate between offices daily. This is especially true if your branches are located in different parts of the world, because you can save big on international phone calls. Email doesn’t always provide the personal element or discussion that is necessary when exchanging ideas. Skype keeps the ideas flowing between colleagues for free - both through phone and video conferencing.
Skype is also beginning to go mobile. In April 2008, Skype became available on 50 mobile phones and can currently be used on a Blackberry.
3. PayPal
PayPal, in its tenth successful year of operations, is widely accepted as a means of transferring payments online. PayPal is an easy, inexpensive way for a small business to start accepting payments online. You can send invoices through email, accept payments through a PayPal account, or let your customers pay by credit card.
PayPal offers several levels of merchant service options to help integrate a payment system into your online business. Websites Payment Standard is a good place to start benefiting from the convenience of immediate and interactive payments, without any monthly fee or startup cost. You’ll pay 1.9% to 2.9% + $0.30 per transaction depending on your monthly income. But the best part is that for your clients (those who are paying you), the PayPal service is completely free.
When an invoice is received from FastDue.com, your PayPal account information is already embedded in the email link that your client has been sent to view the invoice. While PayPal has been growing every day, it has also been receiving awards and accolades along the way. The company has won the Peoples Voice Award and the Webby Award for the Best Finance Site. It has also been named one of The Top 100 Web Sites by PC Magazine, and one of the Top 25 Companies by Fortune Small Business, just to name a few of the company's achievements.
4. EBay
There aren't many sites on the Internet that can claim the success that eBay has enjoyed. The company began in the home of Pierre Omidyar is 1995 and is now a leader in Internet revenue. EBay is an ecommerce site allowing individuals and businesses to sell goods and services in an auction style or at a fixed price format. Auctions are set up for a certain number of days and sellers can set a reserve price that must be met for the item to sell. Fixed price allows customers to buy it now for a set price.
Items on eBay are listed by categories and anyone with an eBay account can bid on the item of their choice. You can find just about anything you can possibly imagine on eBay, including cars, real estate, collectibles, concert tickets, CDs, clothing, DVDs, and artwork. When you list an item for auction on eBay it can be seen by millions of people all over the world.
EBay gives small businesses the potential to immediately reach millions of customers around the world at a low cost. Small businesses can easily start an Online EBay Store for $15.95 a month to get advanced organization and selling functions. Features include a central online location with up to 300 categories to organize your products. You can post information about your business and promote your brand identity with your logo and custom store design. You can manage your sales with Selling Manager and market your store with cross promotions, promotional flyers, and emails. Additionally, EBay Store keeps track of your sales and you can easily export this data to QuickBooks.
EBay pricing fees involve a price tier structure, including both an insertion fee and a final value fee. The insertion fee is based from the reserve price for auctions or the buy it now price for fixed price items. The final value fee is based on price tier percentages of the price your item sells at. If your item does not sell then you are not charged a final value fee.
5. MyFax
MyFax is an internet fax service where you send and receive faxes through your email. Simply attach a document in an email (over 178 file formats are supported) and send to your recipients fax number. MyFax makes it easy with common software programs like Microsoft Office by allowing you to send an Excel, Word, or PowerPoint document directly from that program without even having to log into your email. You’ll save money by no longer needing a second phone line, fax machine, paper, ink, or maintenance.
MyFax gives you a real fax number, with options for both toll free and local numbers so that your clients don’t have to pay long distance fees when they fax documents to you. It’s also possible to keep your current fax number either through forwarding it or in some cases by using it directly with MyFax. Additionally, you’re less likely to miss a fax or lose it afterwards because they all go to your email as well as being stored online. Add up to 5 email addresses to send and receive from.
My Fax is ideal for businesses requiring travel and mobility like sales consultants, agents, or realtors who can’t always be in the office to receive a fax. You can send and receive faxes wirelessly through a handheld device like your Blackberry or Palm Treo.
Base plan starts at $10/month and includes 100 pages sent and 100 pages received. Each page after that is $0.10
6. Your Free Legal Forms
You can do it yourself at YourFreeLegalForms.com by searching and downloading free legal and business forms provided by community professionals. Users rate each document so that you know you’re getting a high quality form, and if it needs to be customized you can contact the professional who uploaded it for advice or consultation.
Your Free Legal Forms makes it easy to find the form you’re looking for. You can browse by state, category, most downloaded, highest rated, or use their advanced search feature to find exactly what you’re looking for. The database of forms is continuously expanding and includes agreements, leases, non-disclosure and confidentiality agreements, LLC and incorporation checklists, employment agreements, and other consumer and business legal documents, as well as lawyer-contributed articles on important legal issues. If you need a specific form that isn’t already in the database, you can make a request for it so that professionals may upload it.
In addition, Your Free Legal Forms is an excellent way to market your company online. Lawyers and business professionals can promote their business for free by uploading forms. When you sign up you can create a professional profile that links back to your company’s website, increasing its exposure and traffic. Additionally, your profile is search engine optimized and designed to take advantage of the thousands of users searching for these forms. Users search online, find the forms they need at YourFreeLegalForms.com, and contact you if they need further consultation.
7. Better Business Bureau Online
Due to the anonymous and sometimes opaque nature of the internet, customers may have concern about doing business with you online. Basically, they want to know if they can trust you. To ensure this trust, you may consider applying for the Better Business Bureau Online Security Seal. After you apply and get accepted you will be able to display the BBB Trustmark on your website. This Trustmark links back to a BBB report on your business which gives your customers an instant way to verify your business is trustworthy. Additionally, as a member you will be listed in online BBB directories and be able to network with other BBB verified companies.
8. Priceline
Priceline gives the best discounted rates for travel arrangements such as airline tickets and hotel stays. It works by comparing rates from several different providers to help you find the best deal. You can find specific travel arrangements from many low priced options or you can “Name Your Own Price” by telling them the price you want to pay. Naming our own price can get you a significant discount compared to other online booking sites, but it limits your ability to choose. For instance, to Name Your Own Price for a hotel you can select the area, the hotel star level, and the price you want to pay. Priceline finds a hotel that matches your criteria and lets you know where you’ll be staying. These reservations are non-refundable, but hotels are typically well known nationwide chains.
If you are flexible you can name your own price for airline tickets as well by selecting your departure & destination airports, travel dates, and the price you’re willing to pay. Your flight may be scheduled anytime between 6am and 10pm for the dates you choose. Priceline always looks for direct flights first, but you may also end up with one connection each way. Like all Name Your Own Price reservations, these tickets are non-refundable.
In addition to hotels and airfare, Priceline provides reservations for rental cars, vacations, tours & attractions, and cruises. Be sure to note that you can’t find the lowest accepted price by simply increasing your bid $1 each time it gets rejected. If you don’t change something in your order like the travel date or hotel class, then you will have to wait 24 hours before you can place another bid.
9. LinkedIn
Keep yourself in the loop with LinkedIn, a social networking service for business professionals. There are over 25 million current users around the world who are networking already. Once you sign up, you can create your professional profile and start making connections.
Three tiers of connections are used to find people and businesses you can trust. Direct connections are relationships you’ve already established, second degree connections are from your direct contacts, and third degree connections are from the second tier. Thus, your network begins to grow very quickly and opens up a multitude of business opportunities and relationships.
Small businesses can utilize LinkedIn in several ways. Find employees through recommended contacts or post questions to professionals in your network or industry to get answers you trust. Additionally, you can join groups related to your industry and discuss topics of mutual interest. Once employees of your business register your company as their employer, a company profile is started based on a compilation of information gathered from your employees and different sources. In the near future, companies will be able to post information about products and services, post targeted jobs and recruitment videos, upload company images, and more.
10. Entrepreneur.com
Entrepreneur.com is a good place to start when you’re looking for an answer to a business question you have. For example, if you’re interested in finding out more about trademarks for your company, you could start by doing a search here. You can find a general overview of what a trademark is, why you should do it, and the process required.
You can find many other helpful articles that may give you new ideas about how to develop and manage your company. In addition, you can ask a question to Entrepreneur’s small business adviser panel. Topics include starting a business, e-business, marketing, money, sales, advertising, management, franchising, home based business, and many more.
What is your favorite online business tool? Please share with us your experiences and suggestions on the best online business resources for small businesses.
1. FastDue
Collection cycles are shortened with FastDue.com. FastDue is a free online invoice and collection tool that creates, manages, and communicates collection issues and agreements online. With FastDue.com, your time is managed more efficiently and your company is marketed more effectively. There are no fees or sign-up required, so you can get started immediately without any hassle.
Using FastDue, you get a professional and friendly way to efficiently communicate collection issues with quick results. Once your clients receive an online invoice, you can accept their payment through a secure PayPal or credit card transaction, or enable them to pay by check at their convenience. Not only does FastDue keep clear accounts of what is owed and what is paid, but you can also upload your unique company logo to promote your brand image. FastDue will automatically send reoccurring invoices and payment reminders at predetermined times enabling you to rest easily about your finances.
FastDue offers advanced features like co-branding and CRM that are specifically developed according to individuals company's needs. Chambers of Commerce across the state of Iowa use FastDue to communicate to and conduct business within their membership base. In FastDue My Accounts, you can organize all your business interactions, including all invoices paid and due. FastDue opens up a communication channel where all parties can create and negotiate terms of an agreement, and effectively resolve transactions in a secure and friendly online environment.
2. Skype
Skype is an online service that allows users to make phone calls over the internet. They provide free worldwide calling between other Skype users as well as instant messaging and video conference calling. In addition to the free Skype-to-Skype services, they also have good rates for calling or receiving calls from people who don’t have Skype. You can use your Skype number wherever you have internet connection. Additionally, you can purchase phones that work with Skype so that you don’t have to be tied to your computer.
Skype is a great service for businesses that are located in more than one location and people who need to communicate between offices daily. This is especially true if your branches are located in different parts of the world, because you can save big on international phone calls. Email doesn’t always provide the personal element or discussion that is necessary when exchanging ideas. Skype keeps the ideas flowing between colleagues for free - both through phone and video conferencing.
Skype is also beginning to go mobile. In April 2008, Skype became available on 50 mobile phones and can currently be used on a Blackberry.
3. PayPal
PayPal, in its tenth successful year of operations, is widely accepted as a means of transferring payments online. PayPal is an easy, inexpensive way for a small business to start accepting payments online. You can send invoices through email, accept payments through a PayPal account, or let your customers pay by credit card.
PayPal offers several levels of merchant service options to help integrate a payment system into your online business. Websites Payment Standard is a good place to start benefiting from the convenience of immediate and interactive payments, without any monthly fee or startup cost. You’ll pay 1.9% to 2.9% + $0.30 per transaction depending on your monthly income. But the best part is that for your clients (those who are paying you), the PayPal service is completely free.
When an invoice is received from FastDue.com, your PayPal account information is already embedded in the email link that your client has been sent to view the invoice. While PayPal has been growing every day, it has also been receiving awards and accolades along the way. The company has won the Peoples Voice Award and the Webby Award for the Best Finance Site. It has also been named one of The Top 100 Web Sites by PC Magazine, and one of the Top 25 Companies by Fortune Small Business, just to name a few of the company's achievements.
4. EBay
There aren't many sites on the Internet that can claim the success that eBay has enjoyed. The company began in the home of Pierre Omidyar is 1995 and is now a leader in Internet revenue. EBay is an ecommerce site allowing individuals and businesses to sell goods and services in an auction style or at a fixed price format. Auctions are set up for a certain number of days and sellers can set a reserve price that must be met for the item to sell. Fixed price allows customers to buy it now for a set price.
Items on eBay are listed by categories and anyone with an eBay account can bid on the item of their choice. You can find just about anything you can possibly imagine on eBay, including cars, real estate, collectibles, concert tickets, CDs, clothing, DVDs, and artwork. When you list an item for auction on eBay it can be seen by millions of people all over the world.
EBay gives small businesses the potential to immediately reach millions of customers around the world at a low cost. Small businesses can easily start an Online EBay Store for $15.95 a month to get advanced organization and selling functions. Features include a central online location with up to 300 categories to organize your products. You can post information about your business and promote your brand identity with your logo and custom store design. You can manage your sales with Selling Manager and market your store with cross promotions, promotional flyers, and emails. Additionally, EBay Store keeps track of your sales and you can easily export this data to QuickBooks.
EBay pricing fees involve a price tier structure, including both an insertion fee and a final value fee. The insertion fee is based from the reserve price for auctions or the buy it now price for fixed price items. The final value fee is based on price tier percentages of the price your item sells at. If your item does not sell then you are not charged a final value fee.
5. MyFax
MyFax is an internet fax service where you send and receive faxes through your email. Simply attach a document in an email (over 178 file formats are supported) and send to your recipients fax number. MyFax makes it easy with common software programs like Microsoft Office by allowing you to send an Excel, Word, or PowerPoint document directly from that program without even having to log into your email. You’ll save money by no longer needing a second phone line, fax machine, paper, ink, or maintenance.
MyFax gives you a real fax number, with options for both toll free and local numbers so that your clients don’t have to pay long distance fees when they fax documents to you. It’s also possible to keep your current fax number either through forwarding it or in some cases by using it directly with MyFax. Additionally, you’re less likely to miss a fax or lose it afterwards because they all go to your email as well as being stored online. Add up to 5 email addresses to send and receive from.
My Fax is ideal for businesses requiring travel and mobility like sales consultants, agents, or realtors who can’t always be in the office to receive a fax. You can send and receive faxes wirelessly through a handheld device like your Blackberry or Palm Treo.
Base plan starts at $10/month and includes 100 pages sent and 100 pages received. Each page after that is $0.10
6. Your Free Legal Forms
You can do it yourself at YourFreeLegalForms.com by searching and downloading free legal and business forms provided by community professionals. Users rate each document so that you know you’re getting a high quality form, and if it needs to be customized you can contact the professional who uploaded it for advice or consultation.
Your Free Legal Forms makes it easy to find the form you’re looking for. You can browse by state, category, most downloaded, highest rated, or use their advanced search feature to find exactly what you’re looking for. The database of forms is continuously expanding and includes agreements, leases, non-disclosure and confidentiality agreements, LLC and incorporation checklists, employment agreements, and other consumer and business legal documents, as well as lawyer-contributed articles on important legal issues. If you need a specific form that isn’t already in the database, you can make a request for it so that professionals may upload it.
In addition, Your Free Legal Forms is an excellent way to market your company online. Lawyers and business professionals can promote their business for free by uploading forms. When you sign up you can create a professional profile that links back to your company’s website, increasing its exposure and traffic. Additionally, your profile is search engine optimized and designed to take advantage of the thousands of users searching for these forms. Users search online, find the forms they need at YourFreeLegalForms.com, and contact you if they need further consultation.
7. Better Business Bureau Online
Due to the anonymous and sometimes opaque nature of the internet, customers may have concern about doing business with you online. Basically, they want to know if they can trust you. To ensure this trust, you may consider applying for the Better Business Bureau Online Security Seal. After you apply and get accepted you will be able to display the BBB Trustmark on your website. This Trustmark links back to a BBB report on your business which gives your customers an instant way to verify your business is trustworthy. Additionally, as a member you will be listed in online BBB directories and be able to network with other BBB verified companies.
8. Priceline
Priceline gives the best discounted rates for travel arrangements such as airline tickets and hotel stays. It works by comparing rates from several different providers to help you find the best deal. You can find specific travel arrangements from many low priced options or you can “Name Your Own Price” by telling them the price you want to pay. Naming our own price can get you a significant discount compared to other online booking sites, but it limits your ability to choose. For instance, to Name Your Own Price for a hotel you can select the area, the hotel star level, and the price you want to pay. Priceline finds a hotel that matches your criteria and lets you know where you’ll be staying. These reservations are non-refundable, but hotels are typically well known nationwide chains.
If you are flexible you can name your own price for airline tickets as well by selecting your departure & destination airports, travel dates, and the price you’re willing to pay. Your flight may be scheduled anytime between 6am and 10pm for the dates you choose. Priceline always looks for direct flights first, but you may also end up with one connection each way. Like all Name Your Own Price reservations, these tickets are non-refundable.
In addition to hotels and airfare, Priceline provides reservations for rental cars, vacations, tours & attractions, and cruises. Be sure to note that you can’t find the lowest accepted price by simply increasing your bid $1 each time it gets rejected. If you don’t change something in your order like the travel date or hotel class, then you will have to wait 24 hours before you can place another bid.
9. LinkedIn
Keep yourself in the loop with LinkedIn, a social networking service for business professionals. There are over 25 million current users around the world who are networking already. Once you sign up, you can create your professional profile and start making connections.
Three tiers of connections are used to find people and businesses you can trust. Direct connections are relationships you’ve already established, second degree connections are from your direct contacts, and third degree connections are from the second tier. Thus, your network begins to grow very quickly and opens up a multitude of business opportunities and relationships.
Small businesses can utilize LinkedIn in several ways. Find employees through recommended contacts or post questions to professionals in your network or industry to get answers you trust. Additionally, you can join groups related to your industry and discuss topics of mutual interest. Once employees of your business register your company as their employer, a company profile is started based on a compilation of information gathered from your employees and different sources. In the near future, companies will be able to post information about products and services, post targeted jobs and recruitment videos, upload company images, and more.
10. Entrepreneur.com
Entrepreneur.com is a good place to start when you’re looking for an answer to a business question you have. For example, if you’re interested in finding out more about trademarks for your company, you could start by doing a search here. You can find a general overview of what a trademark is, why you should do it, and the process required.
You can find many other helpful articles that may give you new ideas about how to develop and manage your company. In addition, you can ask a question to Entrepreneur’s small business adviser panel. Topics include starting a business, e-business, marketing, money, sales, advertising, management, franchising, home based business, and many more.
What is your favorite online business tool? Please share with us your experiences and suggestions on the best online business resources for small businesses.
Tuesday, September 30, 2008
Small Business & Freelancer Collection Guide
The goal of the collection process for any freelancer or small business owner is to receive money owed as quickly and efficiently as possible. Collection of payments owed should be handled in a way that is professional, friendly, and simple for all parties. Here are some guidelines that will keep your collections running as smoothly as possible.
Predict Ambiguities:
This is achieved by clearly explaining the terms of payment, such as whether you prefer to receive cash or check. Online payment options are also widely accepted as a standard.
Know your clients. Offer choices and alternatives that can work for any business - big or small. Flexibility to your clients needs is as important as Consistency. You can enable your clients to choose their own payment schedule or offer options of phased payments, offer discounts for early payments or even negotiate payments owed. Statistically, the more flexibility that is offered, the more likely you will get paid more of what you are owed. If both parties are satisfied with the payment terms, then be sure that a clear agreement is signed and documented to prevent any inconsistencies.
Promote Flexibility and Consistency:
Develop a system for requesting payments. Again, allow for flexibility and renegotiation of terms, within a clear and consistent framework. Allow your clients to opt-in to payment reminders that fit their schedule and budget. These alerts could become reminders of late payment past a certain date.
A great way to automatically send late notices or reminders is with a free online business form service such as Fastdue.com. You can send an invoice, a past due notice, create an online agreement, or file an online complaint. Not only does FastDue keep clear accounts of what is owed and what is paid, but you can also upload your unique company logo! This saves you the time of creating these forms yourself while also allowing you the flexibility to promote your brand image. Once your clients receive an online invoice, you can accept their payment through a secure PayPal or credit card transaction.
One benefit to using a collection system like FastDue, is that interactions with clients is immediate, professional and friendly. Confidence is instilled when communication channels are open and response rates are high.
Predict Ambiguities:
This is achieved by clearly explaining the terms of payment, such as whether you prefer to receive cash or check. Online payment options are also widely accepted as a standard.
Know your clients. Offer choices and alternatives that can work for any business - big or small. Flexibility to your clients needs is as important as Consistency. You can enable your clients to choose their own payment schedule or offer options of phased payments, offer discounts for early payments or even negotiate payments owed. Statistically, the more flexibility that is offered, the more likely you will get paid more of what you are owed. If both parties are satisfied with the payment terms, then be sure that a clear agreement is signed and documented to prevent any inconsistencies.
Promote Flexibility and Consistency:
Develop a system for requesting payments. Again, allow for flexibility and renegotiation of terms, within a clear and consistent framework. Allow your clients to opt-in to payment reminders that fit their schedule and budget. These alerts could become reminders of late payment past a certain date.
A great way to automatically send late notices or reminders is with a free online business form service such as Fastdue.com. You can send an invoice, a past due notice, create an online agreement, or file an online complaint. Not only does FastDue keep clear accounts of what is owed and what is paid, but you can also upload your unique company logo! This saves you the time of creating these forms yourself while also allowing you the flexibility to promote your brand image. Once your clients receive an online invoice, you can accept their payment through a secure PayPal or credit card transaction.
One benefit to using a collection system like FastDue, is that interactions with clients is immediate, professional and friendly. Confidence is instilled when communication channels are open and response rates are high.
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