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Small Business Owners – It’s Time to Buy Local, Virtually That Is

July 16, 2010 in small business by admin

If you are just starting out in the business creation process, or you currently own an on-line business, chances are that are member of certain lists and forums. Perhaps you even participate or run them. There is a growing movement of people that think we need to get everything for free on-line and get angry when people that provide content occasionally ask for money. Read on to find out how to combat this.

If you provide on-line content or you enjoy someone else’s content you need to start asking for some support. There are many customers that will rebel against a marketer that has created free content for years, and all of a sudden they start pitching a product here and there. The people on the lists bail out in droves. At first glance it just appears as though the groaning customers are just being greedy, however this is the fault of the business owner.

If you own an on-line business, it is just that. Creating valuable content for free is a way to increase readership, but you cannot be shy about asking for the sale. If you set up your content from the very beginning by asking people to purchase your products if they want to know more information and educating them that it is the way you make your living, then you will create a list of people that respect that.

On the flipside, if you just begin a business on the basis of giving everything away, you will never lose that stigma. People revolt later thinking you are greedy, because you have built the wrong list of non-customers. Instead, start with a profit model from the beginning, showing your customers that they are “buying local” from the person that is creating all of the great content they enjoy on a daily basis.

Sure, you will lose people here and there, but you should look at losing a few people off your list as a good thing. That just means that your message did not match with what they were looking for. The people that are left are the ones that are going to put money in your pocket. The “unsubscribe” button is a blessing not a curse. Once you have developed your voice in the content that you create, make sure that every message that you send out also contains some kind of profit generation for you as well. Get the customer to take action or you are going to go a away hungry with a pile of free content and nothing to show for it.

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Small Business Owners – They Owe You The Money Why Don’t They Pay?

June 26, 2010 in small business by admin

Doesn’t it frustrate you when you’ve given good service, sometimes super service, and the customer doesn’t pay you?

Some of them aren’t doing too well and are struggling for cash, but, gee, so are you. In the time they take to pay they could have paid off a little each week and the debt would be gone.

You know others have the money but it takes them six months of sending them copy after copy of invoices, letters and telephone calls before they open their purse…

And often the worst are Government Departments and large businesses. You don’t want to lose sales to these customers but your cash-flow is hurting and you dropped your price to get the contract as well.

Is there any way to stop it?

Perhaps not completely, but there are ways to control the problem. Owners should have a clearly defined Rules of Credit which is known to staff and customers…and they should apply them consistently.

Many owners started off with some rules but over the years they have become lax at applying them. Customers and staff have become so used to breaking them that it’s as though there are no rules at all.

The minimum rules are:

  • Credit check for all new clients
  • Credit limit for all clients
  • Terms of payment 7 days, 30 days etc. Customers will have to negotiate a longer period.
  • Procedure for letters 1, 2 and 3.
  • Procedure for phone calls after letters.
  • Cash Sales only after limit is reached or deviation from payment policy.
  • Procedure for debt collection.

It doesn’t matter what the rules are, as long as your customers know them and know that you will apply them without favor.

You may need some help from your accountant to fine-tune the procedure and help with the letters and telephone script. http://www.profitstrategies4business.com

About the Author

Kelvyn Peters CPA is one of the longest serving Tax Agents in Australia. He registered as a tax agent in 1962 and was appointed as a CPA in 1964.

He is well-known for his ability to rescue an ailing business. http://www.profitstrategies4business.com

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