Clearspace Server Syndication Feed

Internet Advertising

SBOCTeam — Tue, 18 Nov 2008 21:21:12 GMT

When does it make sense for small businesses?

By Christopher Freeburn

The Internet has been a great leveling technology, evening the playing field between small and large businesses by giving small companies easy and cheap access to a worldwide marketplace. The Internet has also provided unprecedented advertising opportunities for small business, permitting not only access to a global marketplace, but the ability to target and alert potential customers on a local, regional, national, or global scale for a fraction of what traditional marketing programs would cost.

The Growing Online Ad Market
Internet advertising totaled over $21 billion in 2007, according to the Interactive Advertising Bureau (IAB), putting it far behind television, close to magazines, and ahead of radio as an advertising medium, based on ad revenues. According to the Pew Internet & American Life Project, more than 32 million Americans have made an online purchase after clicking on an online advertisement. Social networking web sites, which boast more than 86 million users are almost exclusively run on advertising revenue.

In testimony before Congress in June, Randall Rothenberg, president of the IAB, noted that Internet advertising is particularly advantageous for small businesses. "Online advertising has created regional markets out of local markets, and national markets out of regional markets. Items once sold in local garage sales and pawn shops are now available nationally and internationally via advertised interactive auctions, in which some 40 million Americans participate annually," he said. "Importantly, the online networks not only enable small businesses to communicate to niche communities through small sites; they allow large brand marketers to reach narrow communities as well, contributing to an unprecedented democratization of the media landscape."

So, how do you get your company's ads on the web?

Advertising options
Before selecting a particular type of online ad, you must determine what works best for your business and suits your level of online capabilities.

Search Engine Advertisements
These ads are posted on search engines' web sites. Since most people begin their Internet browsing with a visit to a search engine, advertising on these sites is often a logical place for a small business to place its ads. The two largest search engines, Google and Yahoo, have created advertising programs tailored for small businesses that want to advertise on their sites. The ads usually appear as links to your business, highlighted and set apart from the other links generated by the search. The ads appear whenever a user searches for specific keywords or phrases in the search engine. These keywords or phrases will be related to the sort of product or service your business offers. So, for instance, if you run a business providing surfboards, you ads would appear whenever someone searches for information on surfing. Other search engines offer similar programs.

The cost of these advertisements varies and is often dependent on how many people actually click on the ad and visit the advertisers web site. Each time a potential customer clicks with their mouse on the ad and visits the advertiser's web site, the advertiser must pay a "click fee" to the search engine. Such fees are usually pennies per click, depending on the search engine hosting the ads.

Search Engine Optimization
Search engine use is so popular, and the traffic generated by search engines so considerable, that in addition to posting "pay-per-click" ads on search engine web sites, many businesses seek to "optimize" where their web site will appear during a keyword search. Search engines scan millions of web sites every day, tagging them according to key words and phrases that appear on the web site. When a user searches for a word or phrase, the search engine lists web sites whose content has been tagged with that word or phrase.

In order to improve the number of hits your website receives from search engine queries, a number of online media firms will "optimize" your web site's content. These services start by examining the type of customers who comprise the market for your products or services and will adjust your web sites content and language so that the programs that scan and tag web sites will be more likely to list your web site near the top of lists generated for a given keyword or phrase. Fees for this service vary among search engine optimization firms.

Banner Ads
Usually appearing as rectangular patches or horizontal bars containing text, pictures, animation, or company logos at the top or bottom of web sites, banner ads date back almost to the beginning of commercial Internet use. Internet users who are interested by the ad will be directed to your company web site when they click on it. Most banner ads use simple HTML code to convey text or pictures, but more complicated ads can be created using popular multimedia applications like Java and Flash. The latter, while more eye-catching, are considered somewhat risky since many browsers do not come with Java or Flash software built in, and consumers are not likely to wait to download and install such software just to view your ad.

Banner ads are deployed on other web sites either by direct agreement with that web site for a specific consideration (you pay another web site owner to host your advertisement, or agree to host his or her banner ad in exchange), or by paying a banner network company (such as DirectClick or Flycast) that will post your banner ad on a number of web sites for a specific fee.

Pop-Up Ads
A Pop-Up ad is a paid advertisement that automatically causes a user's browser to open a new window when visiting a particular web site. The new window, which is
generally small and opens in front of the page the user intended to open, contains the advertisement. Unfortunately, while eye-catching, numerous surveys of Internet users indicate that most people find them highly irritating, and many browsers now come with features to disable pop-up windows. Thus, pop-ups have declined significantly in popularity and are now considered a poor advertising choice.

Cash Flow and Accounting

SBOCTeam — Thu, 06 Nov 2008 22:18:25 GMT

by MOBI.1

Cash fuel drives you in business just as jet fuel keeps a plane aloft. A pilot is very careful to accurately predict the fuel requirements. You should place the same importance on cash flow control because if, at any point in the future, you run out of fuel, like the pilot, you've got a BIG problem.

Cash flow control is a simple method of projecting your future needs for cash. It is an income statement covering future periods of time that has been changed to show only cash: cash coming in and cash going out and what your balance of cash is at the end of designated periods of time. This is a great tool because you can predict your future needs for cash before the needs arise.

In cash flow control, for each of a number of intervals of time, you make conservative estimates for your future sources of cash (IN) and future expenditures (OUT). Use low, conservative figures for IN items and use high estimates for OUT items. For the initial period, say a month, you start with the cash you now have. To this you add IN items and subtract the OUT items, which results in the cash at end of the month. The cash at the end of month becomes the starting cash for the next month.

The attached cash flow control spreadsheet shows that ending cash for this first period becomes the starting cash for the second period. The ending cash for the second period becomes the starting cash for the third period, and so on. Your projection should be made for an upcoming 12-month period. The projection will be a useful tool for you to arrange financing before it is required by showing your banker that you are sophisticated enough to provide for future cash in order to preserve liquidity.

You can use this simple cash flow format to make up your own cash flow projection for the business you have in mind. It is so simple, yet can be so valuable!
© 2003-2007 My Own Business, Inc. All Right Reserved.

Applied SEO Marketing Strategy to Engage Consumers

SBOCTeam — Thu, 30 Oct 2008 19:44:07 GMT

by icrossingseo

SEO relevancy, the second component of an SEO marketing strategy, focuses on defining keywords and applying them to your site. Find out how keyword relevancy and understanding the Keyword Consumer Decision Process can help you connect with customers.

SEO Relevancy
Applied SEO marketing strategy to engage consumers with your business

The main components of any successful SEO campaign can be broken into three parts; Crawlability, Relevancy and Popularity.

The previous article, SEO Fundamentals, focused on the technical aspects of SEO - providing an overview of the major obstacles that affect web site crawlability.

The second major component, SEO relevancy, focuses on the applied SEO marketing strategy of your web site. This critical stage is where keywords are defined and applied to your web pages.

Keyword Relevancy

Keywords provide the greatest insight into consumer behavior. The consumer is telling the world exactly what they are looking for by the search terms they use.

Researching keywords relevant to your website is the most critical component of SEO. This is where you will determine which search terms are critical for your business.

Keyword Consumer Decision Process

When researching keywords, it's important to consider your entire site structure and choose only keywords or phrases that are most relevant to each page. During this time it's tempting to use the same popular keyword on every page of your site, but it's a temptation that should be avoided. Instead, apply individual keywords as they would flow through the Keyword Consumer Decision Process (see graphic).

General Interest: Keywords in this stage are usually most relevant for a home page or major category pages. Search terms typically have high search demand and tend to convert at a lower rate. Keyword example: Cookware
Research: Keyword relevancy at this level is most applicable to category and sub-category pages. Although search demand will decrease at this stage in the keyword consumer decision process, they will convert at a higher rate. Keyword example: Frying pans
Conversion: While search demand is at its lowest during this phase, conversion is at its highest. Product-level pages are the most common at this stage. Keyword example: 10-inch non-stick frying pan

Applying Your SEO Marketing Strategy

To achieve the highest-possible search-rank position, targeted keywords must be visible on the page and should represent each page's overall theme. When consumers visit your web site from search engines, the page must speak to keywords they searched. The following page elements are crucial for keyword integration:

Page title: A short phrase that describes the overall theme of the page. This is the main link from a search engine results page (SERP). Keywords should be integrated into the title and should be part of a compelling marketing message that entices users to click-thru. Page title example: Shop for Gourmet Cookware from Rita's Kitchen Store

Meta description: Displayed in the SERPs, a meta description provides a detailed description of the page theme. While it is not visible on the page, meta descriptions are visible in the page's HTML code. Meta description example: Rita's Kitchen Store offers gourmet cookware at low prices. Choose from a wide selection of cookware from your favorite brands. Free shipping is available on all orders over $100.

Page content: Applying keywords to the visible page elements is critical. Integrating targeted keywords into page headers, paragraph content, page links, etc. will help consumers and search engines understand that the page is about the targeted keywords. This helps ensure that your web site is relevant to a particular keyword and, over time, higher keyword rankings in search engines should reflect this.

Note: You should use no more than two to three keywords/keyword phrases on each page. To help you gauge keyword relevancy, use tools like Wordtracker, Keyword Discover or Google AdWords Keyword Tool when developing your SEO marketing strategy.

Crawlability and relevancy are the primary controllable factors of SEO. Eliminating technical obstacles and applying relevant keywords to your web site can create strong search engine visibility and engage a wider audience with your business.

The next article in this SEO Fundamentals series will cover popularity - the third phase of any successful SEO marketing strategy.

About the Author: Richard Chavez is an SEO Manager at iCrossing, a leading digital marketing agency, who develops search strategies for Fortune 500 clients in the financial services, publishing, CPG and pharmaceutical sectors. He is also a frequent search-industry conference speaker.

Firing the Right Way

SBOCTeam — Tue, 28 Oct 2008 15:53:04 GMT

How To Make a Difficult Task a Little Bit Easier

By Christopher Freeburn

There are few tasks less pleasant than firing an employee. There are bound to be hurt feelings and often emotions can run high. As difficult as losing a job is for the soon-to-be-former employee, however, informing him or her of that fact can be profoundly upsetting for the employer as well, particularly in a small business setting. Worse, terminating employment can produce more than simple emotional risks. Wrongful termination lawsuits can be costly for a small business-in terms of both time and money-even if successfully defended.

So how can you minimize the stress and potential legal risks of terminating an employee?

Document your reasons
Though many states still maintain the "at will" doctrine of employment (which states that an employer can fire an employee at any time for almost any reason), many other states place some restrictions on employers regarding job termination. "Realize that even an ‘at will' employment status has an implied covenant of good faith and fair dealing," says Dr. Joanne Sujansky, founder and CEO of Key Group, a Pittsburgh-based consulting firm. "Due to this, fire with cause whenever possible and make sure to document poor performance or disciplinary offenses as they occur." Sujansky advises issuing written warnings to the employee that outline the consequences should he or she fail to improve. "If an employee's performance doesn't improve, he or she will be prepared for the consequences and you will be protected when firing the person."

Check your state's labor laws to make sure you are within your legal rights before terminating an employee. Additionally, anti-discrimination statutes common in most states can provide the terminated employee with a possible basis to pursue a legal complaint. Thus it is important for an employer to maintain sufficient documentation to clearly demonstrate that the job termination was for a valid cause and did not involve any form of legally prohibited discrimination.

For this reason, it is important for employers to keep good records on their employees and to have explained, in detail and in writing, to each employee exactly what their job entails. Having some form of employee handbook, spelling out unacceptable workplace behavior, and providing a structure for evaluating employee performance is especially helpful. If an employee has been warned about their performance, maintaining a written record of those warnings is important.

It is equally important that employers demonstrate consistent behavior toward all employees. If you tolerate tardiness from one employee, but fire another for the same, you are risking a lawsuit.

The firing process
The actual act of firing someone is rarely pleasant, but you can take steps to make the process as painless as possible.

Plan ahead. Know what you are going to say before you meet with the employee. Be able to explain your decision clearly and simply. Get to the point right away, and keep the meeting as short as possible. Dragging out the conversation only makes it worse for everyone involved.

Don't do it publicly. Firing an employee in front of his co-workers is unprofessional. Worse, it can lead to lowered office morale and become a factor in any potential litigation. Remember that juries tend to be sympathetic to workers. The firing should be done in private away from other workers.

Don't waste time. Get right to the point. "Don't start the conversation with idle chit chat, such as talking about the weather, the kids, the newest client, etc.," says Sujansky. "Don't offer the employee coffee or water or food. You want him out quickly." The sooner the firing is over, the better for all concerned.

Have a witness on hand. If you company has a human resources manager, then he or she should be present, as well as the employee's immediate supervisor.

Be clear. Explain exactly why the employee is being fired. Concentrate on his or her failure to perform according to expectations. Provide a written statement, spelling out the reasons for the termination.

Pay them. Have a check ready covering any final salary owed to the employee. If a severance package is to be offered, that should also be put in writing. In most states an employer is required to pay any outstanding salary by the next scheduled payday. Money owed by the employee to the firm cannot be deducted from the paycheck. Some states require payment for accrued vacation days. Check the labor laws in your state to make sure you pay the terminated employee everything he or she is owed. "Failure to pay terminated employees in accordance with state laws can result in civil and criminal penalties," Sujansky warns.

Be polite and professional. Losing a job can be an emotional experience. Be sympathetic, but firm.

Collect company property. This includes company IDs, company credit cards, office or company car keys, or any company owned materials that the employee may possess.

Change passwords. If the employee has access to the company computer network or online systems, cancel his or her password immediately to prevent any potential theft of company information or malicious tampering.

Keep if Confidential. Office gossip is a fact of life in any business. However, allowing the details of an employee's termination to become common knowledge in the office is unprofessional. Simply inform your other employees that the terminated worker is no longer employed at your firm and leave it at that.

An ounce of prevention
Of course, the best way to avoid the unpleasantness that accompanies firing an employee is to make sure the people you hire are a good fit for the job in the first place. A rigorous screening procedure during the hiring process, including a background check, detailed interview and clear description of the position, will go a long way toward making sure you attract the best employees for your business.

Raising Money For Your Business � The Ben Franklin Way

SBOCTeam — Mon, 20 Oct 2008 18:17:17 GMT

by Adducent

Even in good economic conditions conventional bank funding can be difficult to get unless you have strong credit, a business record for them to rely on, provide personal guarantees and collateral. Current market and economic conditions are making things even more difficult for many business owners and entrepreneurs.

Without credit or collateral to get debt based funding for your business, the only avenue you may have is to try to raise capital by selling equity. If you have not done it yet, the best starting point to accomplish this for your business is for you is to get what you want to do down on paper. Developing your business plan helps you to make your dream a reality but only if you work at it to do the things necessary to reach your goal. A good business plan is something that funding sources and/or prospective investors are going to want to see so developing an investor-ready plan should be a priority for you.

If your business plan is solid and the business a viable opportunity you may be able to find an "Angel" investor who would provide some funding for you. Angel investors can and do put money into small private businesses that are opportunities of interest to them but getting the attention of investors can be difficult. Sometimes an indirect approach actually gets you better results than a direct one.

A little story to illustrate this is in order:

I read once about how Benjamin Franklin lined up funding for the Continental Congress to continue the Revolutionary War. As the story goes, he managed to wangle several million dollars from France though he (and the Continental Congress) was not exactly in a position of power to bargain from. Instead of fighting what would probably have been a losing battle (so to speak) dealing and discussing directly with the French decision makers (all men) ... instead, at parties he spent time with the women (the men's wives) and became quite a favorite with them. His belief in his mission and purposeful need for the money resonated with them and circled back via the women to the men ... who agreed to loan the money needed. An oblique approach that worked.

I have sometimes seen that same oblique approach work when finding seed money or a key angel investor for businesses. It pays to "sow as many seeds" as you can and when you talk about your business, focus on your belief in the opportunities your venture holds.

As Ben Franklin was wise enough to know, sometimes those that you talk to have the "ear" of a decision maker that might just become interested in your company and want to talk to you further about it. Sometimes, contacts you make and discuss your business with; the conversations whether planned, inadvertent or indirect can lead to good results. So when you are speaking with people about your business or venture, speak with confidence, eloquence and belief in it and always in a professional way and manner.

You never know who may be "listening".

About The Author

Since 1983, Dennis Lowery has started up, funded, bought and sold a number of businesses; helped private and public companies grow and worked with private businesses going public; providing consulting services to over 352 clients. He is President of Adducent, Inc., http://www.Adducent.TV, and a Founding Partner of Wilshire Capital Funding Inc.

Engaging From Afar

SBOCTeam — Wed, 08 Oct 2008 17:22:14 GMT

Keeping remote employees engaged can be a difficult task for a small business owner. But when managed well, your off-site employees can be just as productive as the ones you see every day.

by Max Berry

Sometime during the 20th century, the water cooler assumed a crucial position in the American office-it became a trading post not only for gossip and recaps of last night's television shows, but also for ideas and advice. With a growing number of 21st-century employees working remotely, the water cooler is a quieter place, its role more often filled by e-mail and instant messaging, videoconferences and webinars. Trading ideas used to be simpler, but that doesn't mean your small business has to endure a communication breakdown. Here are a few ways to keep your remote employees engaged and the conversation flowing.

Remote Connection
"It's all about staying connected," says management consultant Carol Hacker of managing remote employees. Regular contact via phone, e-mail, VoIP- or instant message is of course necessary for monitoring work flow and hashing out ideas, but members of a team who aren't working side by side need an established forum, one that can be accessed around the clock, on which to collaborate and check in with their colleagues.

Remote access services like those provided by Citrix (citrix.com) allow for remote workers to securely access and update centrally maintained information from their computers as easily as if they were working in the home office. Microsoft® Office Groove® offers a similar service, along with the capability to share files and create a workspace accessible to every member of your team.

With remote access to company information comes an increased security risk. However a manager chooses to keep his or her employees connected, an annual consultation with an IT specialist will help to ensure that remote connections to sensitive company and client data remain secure.

Being Clear: The Golden Rule
Once a reliable system is in place for remote employees to connect to the central office, a manager needs to set specific protocol for relations between the two entities. Since a manager can't be on-site to monitor remote employees directly, Hacker recommends creating a reference manual for remote workers. The manual should provide detailed summaries of company policy regarding data security and backup, project deadlines, appropriate use of company-issued equipment (especially notebook computers and other portable devices), the frequency with which a remote employee is expected to check in with the manager, and appropriate response times to requests and inquiries from the central office.

As Hacker puts it, "The most critical thing a manager can do is manage expectations." This means delineating, on a project-by-project basis, the objectives, deadlines, and anticipated challenges of every task a remote employee takes on.

Of course, the value of a remote employee's work can't be judged by hours logged in the office. Since they are not able to observe the way a remote employee goes about his or her task, managers must set clear guidelines pointing their employees to the desired end result. Assessing a remote worker's job performance requires a manager to trust the employee to meet company standards using his or her own strategy and technique. "Managers need to measure success by results," says Hacker, "not activity."

Keeping The ‘I' Team
A major component in job satisfaction is working with others toward a common goal. Feeling isolated from the rest of the team can diminish a remote employee's morale and hurt job performance. It is up to the manager to keep a sense of camaraderie and singular purpose among employees, remote and otherwise.

The first thing to remember is that some employees simply aren't cut out for remote work. Either they need supervision to be productive or they simply get listless if they aren't around a surplus of people. Managers looking to hire remotely should address these issues during the interview phase to make sure a new employee can handle the remote environment.

Regularly scheduled face-to-face meetings and social events can stave off the disconnected feeling in remote workers, as can the occasional "just because" call. "Don't always call [remote employees] when there's big news," advises Hacker. "Call to check in." Informal gestures like this quash the potential for a Charlie's Angels dynamic, in which a recognizably named-but eternally unseen-leader provides instructions only when necessary, and only by telephone.

But the opposite tack can be problematic as well. Hacker warns of becoming a "helicopter manager," an employer who compensates for a lack of face time by checking in too often, hovering from afar. This can be just as damaging as infrequent or impersonal contact. "It speaks to a manager not trusting his or her employees," says Hacker. "If you do that, you're going to alienate your best people."

Of course, employing remote workers also offers myriad benefits to employees, managers, and clients. A satellite office in a different time zone means staggered hours to help meet customer needs. A prospective employee who would have faced a long commute to a company's central office may be closer to a satellite office or, if both manager and worker are okay with the idea, may even be willing to telecommute. Remote offices with small staffs appeal to workers who prefer quiet and detest interruptions. And this is to say nothing of what working remotely can do for an employee's confidence. "Remote employees have the ability to approach their work according to their own strength and preferences," says Hacker. "They're almost entrepreneurs."

Ten ways to reduce your cost of accepting credit cards

SBOCTeam — Fri, 03 Oct 2008 17:03:43 GMT

by amspcs

In tough economic times, small businesses seek out ways to cut expenses. One of the best places to start is to lower the cost of credit card processing.

Here are ten proven ideas that every merchant can and should implement. To learn more about each item, please refer to the resource links provided below.

1.) Minimize surcharges Circumventing terminal prompts such as bypassing Address Verification (AVS) or failing to settle batches properly cause transactions to downgrade to higher rates. Adhering to proper procedurees will reduce your rates.

2.) Avoid chargebacks A common avoidable chargeback reasons is unauthorized use of card. This is easily avoided when cashiers are trained to compare, check and verify signatures on each and every transaction.

3.) Consider adjusting your discounting method Does your processor have you on gross processing or net processing? Daily or monthly discounting? Does your particular business qualify for one plan over the other, and would you benefit from it? Learning these fine points can mean extra profit for your business.

4.) Discontinue the Merchant Club membership Many merchants pay $9.95 or more monthly for Merchant Club dues; not knowing this fee is optional. These programs offer benefits like free terminal repair and free supplies. In rare cases, it's worthwhile. But most merchants accomplish nothing more than spending over $100 per year for maybe $30 worth of free supplies; hardly a justifiable expense. Betters to buy supplies from a local office supply outlet, and opt out of the merchant club.

5.) Verify PCI Compliance In the wake of data breaches and identity thefts, Payment Card Industry (PCI) security standards is a serious matter. This involves the manner in which merchants safeguard and store customer credit card data, among other things. The processing industry has established well defined procedures and regulations, failure to adhere to which can lead to nasty fines. Small businesses are not immune. Contact your processor and make sure you are compliant.

6.) Update your processing equipment Replacing obsolete processing equipment can net significant monetary savings very quickly. Examples: Replacing a dial-up credit card machine with a wireless machine and dropping a costly dedicated telephone line can pay for itself in no time. Newer terminals supporting the latest security programming can actually reduce some discount rates. Newer machines using thermal paper eliminate the need for costly ink cartridges and ribbons altogether.

7.) Invest in a Pin Pad A pin pad and a subscription to a true debit gateway enables merchants to process pin debit as opposed to signature debit at greatly reduced costs. For example, the cost of processing a $500 sale could conceivably be reduced from over $8 to under $1 by processing as pin debit instead of signature debit.

8.) Don't fall for the Cold Call scam Unethical processing reps make their living by cold calling merchants, performing an audit of their merchant statements, and promising huge savings if the merchant switches processors. The problem is that it's a big lie; comparing real world numbers with contrived assumption-based fantasy scenarios isn't a valid comparison. More often than not, duped merchants find themselves locked into long-term contracts with higher processing fees than before. Legitimate mainstream processors simply don't operate this way. Their growth is based on performance and legitimate referrals, not by dispatching droves of amateur salespeople to knock on doors. If you are approached in this manner, make sure you run their 'offer' past your current processor before you sign off. Chances are he'll enlighten you to what it really is nonsense. And worst case scenario, if it's legitimate, he'll probably meet or beat it.

9.) Get rid of the No Checks Accepted sign True, the world pays mostly with plastic these days. But there are still millions of checks written every day, Most of them are good. Problem is, when you turn away all checks in hopes of avoiding the bad ones, you're turning away tons of good ones too! The fact is: With modern check guarantee technology, accepting checks is as secure as credit card acceptance, and often cheaper. Furthermore, there are legitimate service providers offering 100% free collection services for NSF checks. There's really no reason to give your competitor the advantage by handing over your check revenue business on a silver platter

10.) Take advantage of free training offered by your processor Legitimate credit card processors offer training to teach you and your staff the right and wrong ways to accept electronic payments. Take advantage of it. Training teaches how to avoid mistakes, surcharges, and chargebacks. How to properly settle your batch, when to run a void instead of a refund (there IS a difference), what to do (and not to do) when you get a decline response to avoid wasting dollars, and much more. If your processor does not offer training, you are being severely short-changed and overcharged.

RESOURCES:

To learn about CREDIT CARD SURCHARGES visit http://www.MerchantServices-help.com/discount-rate.html

To learn about CHARGEBACKS visit http://www.MerchantServices-help.com/chargeback.html

To learn about DISCOUNTING METHODS, visit http://www.MerchantServices-help.com/processing.html

To learn about PCI COMPLIANCE, visit http://www.MerchantServices-help.com/PCIcompliance.html

To learn about DEBIT PROCESSING, visit http://www.MerchantServices-help.com/debit-card.html

To learn about SALES SCAMS, visit http://www.MerchantServices-help.com/merchantmistakes.html

To learn about CHECK GUARANTEE services, visit http://www.MerchantServices-help.com/check-services.html

To learn about FREE CHECK COLLECTION, visit http://www.MerchantServices-help.com/nsfcheck.html

Barry Godofsky operates Automated Merchant Solutions, Inc., a Florida based Independent Sales Office (ISO) representing several of the largest credit card processing Acquirer institutions in the nation. For more information regarding small business credit card processing issues including unbiased tips, FAQs, and resources, please visit http://www.MerchantServices-help.com

Play It Safe

SBOCTeam — Tue, 30 Sep 2008 17:05:31 GMT

How to Protect Your Customers' Confidential Info

By Christopher Freeburn

Customer data may well be your business's most critical asset. Unfortunately, there are plenty of thieves who would like to gain access to it. Identity and credit card theft are burgeoning problems. Customers' names, addresses, and credit information are valuable commodities that thieves not only steal, but actually trade among themselves. Today's profusion of computer technology and online connectivity has proven not only a boon for business, but for thieves as well. Protecting your company's information is as vital as locking your office doors.

The World Wide Web of Hackers
There's almost no way to isolate your business from the Internet these days. Even the smallest businesses usually have web sites and email is now virtually a business requirement. That usually means that the computers you use for business are likely connected, either directly or through your company network, to the Internet. While there is no question that the Internet has been a huge boost to small business, it comes with serious security risks.

The Internet connection that brings the world to your business's front door can also let unscrupulous thieves dive right into your company hard drives and gain access to vital customer and business data. "The best way to prevent that is to make sure that your company network and computers have a robust firewall and use the latest Internet security software available," says Cambridge, Massachusetts-based computer security expert Dan Smith. "This applies even if you outsource your company's online services to a web hosting company." If you don't know how to enable your firewall and security software properly, hire a network or computer expert to do it for you. "Your firewall is the first and best line of defense in keeping unwanted people out of your system," Smith explains. "If you don't pay enough attention to it you can find your network crippled and your data stolen."

A wide variety of Internet Security software packages are available for small businesses. Additionally, personal computers and network servers come with some form of internal firewalls that will work in concert with third-party Internet security software. Most of these programs feature an automatic update feature that allows the software to contact its manufacturer online and check for software updates. Since the battle between hackers and security software is never-ending, keeping the update feature active is crucial to receiving updates meant to combat the latest threats.

Isolate Data
Your company data can be threatened not only from the outside, but also from within your business as well. Last January, news organizations reported the story of a Florida architectural firm whose office manager, erroneously believing she was about to be fired, deleted seven years worth of company records, including millions of dollars worth of blueprints and drawings from the firm's computer. The company was able to recover much of the data, but only at great expense. In order to prevent accidental or deliberate loss or theft of data, it is a good idea to restrict access to the company network-or at least to the most sensitive data-to a few trusted, high-level employees. Most network software packages offer a variety of different password-based levels of access to the network and its assets.

Make sure that employees guard their individual passwords and that the passwords of employees who depart the business are deleted immediately.

Shredding to Security
Keeping your company's critical data secure often means more than simply keeping your computers free from hackers and the office doors securely locked. Too many companies forget that documents tossed out with the trash become instantly vulnerable to thieves or competitors.

There is no privacy in garbage, according to a 1998 Supreme Court ruling, which means anyone can grab a garbage bag from your firm left at the curb and legally sift through it. That means your competitors can legally acquire sensitive information about your business if you aren't careful enough to properly dispose of it. It also means that identify thieves might glean enough personal information regarding your customers to open credit cards accounts in their names, causing them substantial financial harm.

In order to protect your company and your customers, you should consider creating a formal company policy regarding document disposal. And then make certain that all employees understand and follow through with its implementation.

Any paper that contains customer names, account numbers, or billing information should be shredded. The same is true of company documents that provide employee names, social security numbers, payroll, medical insurance, home addresses, or salary information. But you should also be shredding any documents containing information valuable to your competitors. Sales numbers, financial analysis, marketing plans or reports, web site usage figures - all of these could be of potential interest to competing companies. Legal documents as well. In practice it's a good idea to shred any document that sheds light on your company's internal practices or arrangements.

Document shredder machines are available in a wide range of sizes and prices, with small units running under $60, making it easy for a small business to have several such machines where needed. Traditional shredders rend documents into narrow vertical strips. Newer cross-cut shredders slice the documents two ways, rendering them into confetti that is almost impossible to reconstruct.

Wireless Vulnerability
Once upon a time, connecting the computers in a small office meant running wires all over the place. Today, setting up a wireless network for a small or home-based business can take little more than a few hours work. But for all their convenience, wireless networks face a serious downside: security. Your wireless router broadcasts your network's data indiscriminately over a certain area (anywhere from a 100 to 300-feet radius from the router). Any computer equipped with a wireless network card within that area can receive the signals and access your network.

"The number of businesses that forget to install some level of encryption in their wireless networks is astonishing," says Dan Smith. "People who are scrupulous about installing Internet anti-virus programs just blank on wireless access security." But the consequences can be serious. "There are people who set up their laptops outside office buildings and shopping malls looking for vulnerable wireless networks," Smith explains. "Once they find one they can penetrate they'll poke around until they find some useful information." That can include customer data like credit card numbers and billing addresses or employee data like social security numbers. "Once they have anything like that, it can be used for theft or identity fraud, or sold to others for that purpose."

In order to prevent unwanted intrusions, wireless equipment manufacturers have developed a variety of encryption programs. Most wireless network equipment comes with two basic encryption systems: Wired Equivalence Protection (WEP) and (Wired Protected Access) WPA. These encrypt your wireless signal, requiring any wireless-capable computer to have the right encryption key to decode the signal. WPA is the more robust encryption protocol. Keeping firewalls enabled on all networked computers and changing network passwords is also recommended.

Business Plans

SBOCTeam — Fri, 19 Sep 2008 17:08:26 GMT

Do I Need One? How Do I Go About It?

By Christopher Freeburn

You're ready to take the plunge. You have a good idea for a new business. You've done the requisite soul-searching and determined that owning your own business is the thing for you. You've spent some time researching the idea and you've figured out where you will locate the business, who your customers will be and what sort of market exists for the business. Now it's time to sit down and create a real business plan.

Benefits of a business plan
There is no understating the value of having a properly written business plan. A business plan helps to clarify the challenges you will face when trying to get your business off the ground. It helps you anticipate problems and obstacles in advance and thus work out solutions before you actually run into trouble. It allows you to make a reasonable estimate of how much money you will need to get things going and to keep them going through the early days. A well-researched plan can give you a handle on how much revenue to expect and how to target your business's promotional efforts.

Business plans are not for your eyes alone, however. If you need to borrow money to get your business started, having a professional looking business plan is crucial. "You want to demonstrate to any potential lender that you are serious about your new business and that you have a good idea of what running it will entail," says Martin Lehman, counselor at the New York chapter of the Service Corps of Retired Professionals (SCORE). By providing potential lenders with a well-drafted business plan that deals honestly with potential expenses and problems and demonstrates that you have done the necessary market research, you greatly improve the chances of landing that loan.

Anatomy of a business plan
In general, most business plans follow a basic format.

Executive summary: The purpose of the executive summary is to define the business-what it does and why you are the best person to run it. The summary should be no more than a few sentences, a paragraph at most. The idea is to convey your business's basic activities as concisely as possible.

Market Research: Follow the executive summary by making a case for the viability of your business in the marketplace you've chosen. Is there enough consumer demand to keep your business going? Are there enough potential customers in the given area in which your business will operate? What are the costs of getting the business started? What sort of revenues can you expect in the first year? What will be the cost of rent, utilities, office supplies, equipment, and materials for your products or services? Are there any competing businesses similar to your own in the same area? How does your business differ from them? Government publications, industry publications, trade groups and local chambers of commerce are excellent sources of demographic and marketplace data that you can use when compiling your research. Be as realistic as possible.

Business Outline: Here you will sketch the anatomy of your business. Identify your management structure, supply chain, and operations. "Be as detailed as you can," advises Lehman. "This is the time to work out fundamental questions about how everything in your business will work." Ask yourself the basic questions. Where will your business be located? Will it be a sole proprietorship, a partnership or a corporation? Who will be the owner? Are there employees? How does it provide products or services to customers? Who are the suppliers? "Iron out ownership and decision making roles ahead of time," advises Lehman. "Who gets the final word on things? If there are other people involved in the business, this is the time to figure that out." If there are partners or employees already in place, make sure that their duties and powers are well defined.

Marketing: The business plan should make clear exactly what you are selling and how you plan to let potential customers know about your business. Detail any advertising plans and their likely cost.

Cash Flow: How much money will your business need to get started? How much revenue can you expect from operations? This is an extremely important part of the business plan, and the one that requires considerable research and attention. Try to estimate, as best you can, exactly how much it will cost to keep things going for the immediate future and how much revenue you think your business can reasonably gain. "This can be really difficult for the first time business owner," Lehman warns, "If you don't have an established track record to draw on, you are going to have to make an educated guess. This is where your market research becomes essential." Lehman says that the biggest mistake new business owners make is being too optimistic with their revenue projections while underestimating costs. "Then they find themselves stuck with higher than expected bills and too few customers and they can't afford to keep things going," he says. It's better to err on the side of pessimism when estimating costs and potential revenues. Potential lenders or investors appreciate a little pessimism in financial projections since it indicates a more realistic outlook on the part of the small business owner.

Make 13% more on the sale of your business, guaranteed!

SBOCTeam — Tue, 16 Sep 2008 13:27:20 GMT

By Bridge

Yes, it's a pitch line to grab your attention. Yes, there are some caveats. But, if you have ever considered selling you business, you can potentially net 13% more now versus next year.

It's not what you make, it's what you keep

In my experience, when most owners decide to pursue the sale of their company, they tend to focus on price. The first question a client typically asks is "What's my business worth?" A better question would be "If I sell, how much of the price do I get to keep?"

Net 13% more on the sale

They say two things in life are unavoidable, death and taxes. Right now most small business owners can actually avoid a 10% tax increase. The current capital gains tax rate is at 15%, a historic low. The democratic platform calls for increasing the capital gains tax rate to 25%. Selling your business today for one million dollars nets you $850,000 after taxes (1). With the proposed tax increase, that same sale price next year would only net you $750,000 after taxes. That's $100,000 more in your pocket today, or 13% more than you would get to keep with the proposed rate increase.

All good things must come to an end

Many business owners do not remember that in the late 1970's, the highest effective capital gains tax rate reached 49.875%. As recent as the early 1990's the highest capital gains tax rate was still at 29.2% (2). In recent years we have been experiencing one of the greatest tax windfalls for small business owners - all created by a change of ownership. The current capital gains tax rate was originally part of a stimulus package and was set to expire at the end of 2008 (it was recently extended until 2010).

With elections coming and a budget deficit growing, how long this window of opportunity remains open for small business owners is anyone's guess. Should you consider a sale now? That's your decision, but remember that sometimes you pick the timing and sometimes the timing picks you.

About the author: Greg Dupuis is President of Bridge Ventures, LLC, a middle market merger and acquisition advisory firm. He has completed over 200 transactions in his career. More information about Mr. Dupuis and his firm can be found at http://www.bridgeventuresllc.com.

If you would like to view a short video on other ways timing can effect the value of a business in a sale, visit: http://www.bridgeventures.net/pinnacle_videos/pinnacle_5_Timing.html

Notes: (1) Your actual tax situation will vary depending on your specific circumstances and you should consult a tax professional for guidance. (2) Tax rate data from The Encyclopedia of Taxation and Tax Policy.