Strategy

• How to Negotiate with your Vendors

  Tue. Aug. 26, 2008
  by Ryan Peddycord, Resource Nation

  Note from Kara: Ryan Peddycord, President of Resource Nation will be a frequent contributor to the Small Business Blog discussing ways you can plan, start and grow your business. Resource Nation is a company that matches businesses to vendors via a database of local & national, pre-screened vendors, in over 100 categories ranging from phone systems to web designers.

  Recently there’s been some good discussion around what defines a vendor in the small business space. But, if you are looking for some good tips on working with your vendors here are several to keep in mind.

  • Prepare a brief overview - Every vendor you talk to should receive the same information, so write a brief description of your project and send it to each vendor.
  • Use a vendor matching service - If you have a lot of time, a web search will provide you millions of vendor options. But, to save on time and pre-screening, ask friends / co-workers for references or use a vendor matching service. Since the selected vendors know they are in a competitive bid environment, they are more likely to give you a competitive price right from the beginning.
  • Create a list of questions - While asking questions, you want to listen to the answers and also gauge if you like how the provider communicates with you. Be sure to provide an opportunity for the provider to ask you questions about your company and the project. This will help them understand the scope of your project and help you evaluate the quality of their questions.
  • Needs assessment - Depending on the complexity of your project, the needs assessment stage may take more than one conversation. Your goal during this process is to finalize a document that describes your project in detail. Also, you should ask to talk directly with the individuals who will be representing your company.
  • Ask for their proposals - Set a deadline for the proposal. A proposal should include confirmation of the project description, a price, a target project completion date, and a copy of the provider’s standard agreement so you can read all of their terms. After you make your decision, it is a professional courtesy to inform all of the companies of your decision. *For more complex projects, a provider may include something in a proposal that you did not expect (a special term or a promotion). You can always go back to the providers to give them feedback on their proposal and ask them to make adjustments if necessary.
  • Renegotiate contracts – As the term expires, renegotiation is a great way to save money for your company. Don’t feel obligated to automatically renew with the same company. Your business has likely grown and the market may have become more competitive. Before you renew, get new price quotes from alternative suppliers and make your current vendor compete to give you a great price.

  Feel free to share any other tips you’ve uncovered when working with vendors.
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• Financing IT – how leasing can help

  Fri. Aug. 22, 2008
  by Monique Bonner, SMB Sales Director

  Regardless of the credit crunch, as a small business you will have always found yourself to be scrutinising budgets and making tough financial decisions about where and how to allocate your resources. Financial planning is a key factor in survival, and can help small and medium enterprises (SMEs) to assess cash flow and assign budgets effectively.

  With most businesses reliant on some form of technology for their day-to-day operations, IT is an important area to invest in. However, if money is tight, IT purchases might be low on the list of priorities. In such cases leasing is one method of funding IT equipment purchases, by keeping money in the business rather than tying it up in depreciating assets.

  There are a number of reasons to consider leasing:

  • Technological flexibility - Leasing can give you the ability to meet changing technology needs quickly and easily, without being tied to specific purchases and individual lifecycles.

  • Financial flexibility - Leasing conserves cash reserves by enabling you to acquire the equipment without making a substantial lump sum payment. It may also offer tax advantages in some cases as leasing payments may be offset against tax.

  • Managing cash flow - Payments are fixed over the agreed term of the contract, allowing you to be protected from changing interest rates, enabling accurate budgeting and cash flow projections.

  • Protection against depreciation - With technology becoming more advanced every year, it’s important to ensure you are always getting the best from your IT. Leasing can protect SMEs from equipment devaluation or obsolescence and, if relevant, a piece of equipment can be leased for a specific contract.

  • Flexibility at the end - Leasing doesn’t always mean giving the equipment back when the lease is up. At the end of the lease term, customers often have the option to purchase the equipment, renew the lease for a specific period of time or discuss a new equipment upgrade.

  Many IT vendors now offer a variety of financing options, including leasing packages. However, since all businesses are different and their needs vary, there is no one-size-fits-all solution. When choosing how to finance your purchases, IT or otherwise, consider all the options and decide on the choice that best suits your company’s size, scope and budget.
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• Growing your business with word of mouth

  Thu. Aug. 21, 2008
  by Kara Krautter, Small Business Community Manager

  The world of digital media can be overwhelming for many small businesses. Do I need to hire someone to help with search? Isn't a website enough? What is social media? But, one of the simplest (and best) Web 2.0 strategies is really nothing new to small businesses, word of mouth (WOM). WOM marketing is just another way to talk about referrals. But, unlike the referrals of yesteryear, WOM isn't just done in person or over the phone -- rather it can happen any time online.

  Recently I chatted with Liz Klein, owner and head landscape designer of Design My Yard (a landscape design, installation and consultation company serving Central Texas) about how she has used WOM to grow and sustain her small business.

  What I learned from Liz is in the landscaping business - like in many other industries- is about who you know and what you know. From her first job working at a family-owned nursery in San Diego, she learned that it was all about the relationships you formed with the customers. When customers see you as credible AND the source with all the answers they will not only keep coming back, but they also will talk to their friends and family about your service. The good relationship with one customer or contact can truly multiply when WOM enters the equation.

  For Liz, referrals, being knowledgeable about local plants and networking with local nurseries and contractors was enough to sustain her business when she moved to Flagstaff, AZ and also when she moved to Austin, TX. But, she soon realized that if she really wanted to grow her business she would have to start marketing herself as an individual rather than a quality add-on service. To do this Liz checked out FLORA (Female Landscapers Out Running Amok), a local female landscapers group.

  It was from a contact in the group that Liz found out that HGTV's Landscaper's Challenge had just finished filming an episode in Austin and was interested in finding three more local designers to be a part of the show. After the encouragement of many friends and her family, she applied to the show, was chosen to compete and ended up being selected as the winning designer.

  After the excitement of winning died down, Liz realized that it would be good idea to look into some more traditional marketing -- a Web site. Since the show was going to give her a lot of free publicity, she at least needed a place for viewers to easily contact her. The filming was done several months before the show was to air, so Liz had just enough time to get a good site together (with the help of a family member in the marketing business). The show provided Liz with great national visibility, which actually proved to be a great thing for a local designer. She received numerous calls from customers in other states wanting to give a landscape makeover gift to relatives in the Austin area.

  

  Now, several years after the original airing of the show she still gets great traffic to her site. Every time the show re-airs, she sees a significant spike in traffic. To keep up the momentum Liz updates her site regularly with new before/after photos and key words people are using to find landscape designers. She also plans on doing sending out tips on fall clean up and preparing your yard for winter to the email list she's been putting together.

  But --still-- the cornerstone of marketing for Liz remains fostering WOM. She regularly calls to check on client's yards, how business is going for contractors and takes perspective clients to the yards of her satisfied customers. Have you been a word of mouth marketer without realizing it? What are some other WOM tips small businesses can use?
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• Are Your Email Designs Inviting or Invisible?

  Wed. Aug. 20, 2008
  by John Arnold, Email Marketing for Dummies

  Note from Kara: John Arnold, author of Email Marketing for Dummies, will be stopping by the Small Business blog every few weeks to talk about simple ways you can improve email marketing for your business.

  According to the Email Experience Council, fewer than 50 percent of marketers create emails that render appropriately when displayed on a computer screen. And, one in five emails is invisible and ineffective because of blocked images.

  Email programs don’t necessarily read and display html and other design languages the same way that web browsers do. For example, email programs don’t read JavaScript, and Outlook 2007 uses Microsoft Word to render and display the html in your email. In fact, almost every email program behaves a bit differently when it comes to displaying your html email creation.

  Instead of worrying about how your email designs display in every obscure email program, design for the majority. This way you can be certain that your emails will render properly for most consumers. According to MarketingSherpa’s Email Marketing Benchmark Guide, here’s what consumers are using to read their emails:

  • 20% use AOL
  • 19% use Yahoo!
  • 15% use Outlook Express
  • 12% use Hotmail

  Since each of the above email programs require users to manually enable email images to display on the screen, use email designs that have enough text to identify your business and deliver your main call to action. After you employ a healthy balance between image use and text in any one design, send a test email to each of the email programs. That way you can eliminate any quirky design flaws to assure that at least 2/3 of your audience will see your email the same way.

  If you don’t have time to test every email design and work out the rendering details – it would be a good idea to use an email template designed by a professional with a good reputation. Even if you’re an advanced html programmer, starting with a trustworthy email design template and customizing the html in the template will save you from rediscovering the most common email design pitfalls.

  The best Email Service Providers:

  · Design templates intended to render properly in the majority of email programs

  · Have plenty of template options

  · Allow you to access the code and style sheet behind the template.
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• Want Business Advice from Michael Dell? – Now’s Your Chance

  Fri. Aug. 15, 2008
  by Kara Krautter, Small Business Community Manager

  The most coveted component of the Dell Small Business Excellence Award is the chance to sit down with Michael Dell and Dell leaders for a day of best-practice sharing.

  Transport Designs, a Pennsylvania-based custom enclosed trailer and motor home manufacturer, was named the U.S. winner in June, and owner Steve Mattie and three of his staff are already starting to plan for their Day at Dell in Oct. Winners and finalists are being named as we speak in the remaining 11 countries – including winners in Mexico and Canada, and finalists in Australia, China, France, Germany, Italy, Spain, UK. All national winners will be announced between now and early Sept. We will keep you updated on their stories.

  In her post in June about Transport Designs’ innovative technology use, Washington Post small-business blogger Sharon McLoone closed with a good question - What do you plan to ask Michael Dell? Steve answered, “How did you do it?”

  UPDATE 8-15-08: We're extending the deadline to submit questions to Monday, Aug. 18th. Voting on IdeaStorm will begin on Tuesday Aug. 19th. Keep the questions coming!

  If you had face-time with Michael Dell to get advice regarding your business, what would you ask him? Submit your question via the comment box below. You have until this Friday, Aug. 15^th Monday, Aug. 18th to get your question in.

  Beginning Monday, Aug. 18^th Tuesday, Aug. 19th, you will be able to vote and comment on the top questions on IdeaStorm. I will post here with all the details on voting next Monday. We’ll take the top 5 - as voted on IdeaStorm - and have Michael answer them in a Vlog here on the Small Business Blog on Aug. 28^th.
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• Going Green, even on a small scale, can be big

  Fri. Aug. 08, 2008
  by J. J. Davis, Sm and Med Business Communications

  Yesterday we announced that Dell has reached its goal to be carbon neutral ahead of schedule and blogged about several ways to make your business greener.
  
  But, for businesses with only a few PCs, a printer and maybe a server, is it possible to save that much money? If so, does it really matter? According to a study by Access Markets International (AMI) Partners, small and medium-sized businesses (SMBs) are increasingly seeing the value of going green. Vittesh Kalambi, AMI's New York-based Research Analyst, suggests that SMBs are paying more attention to Green IT since it can reduce overall running costs, total cost of ownership and increase savings. Sustainability is now a part of the SMB bottom-line.
  
  In many cases, businesses that use Green PCs will see a modest savings per system - which can add up depending on the number of PCs you own. Switching to a system like the Vostro 410 desktop saves customers up to 47 percent in annual energy costs when EnergySmart setting are enabled.
  
  But, the real motivation to go green is when you think about the collective impact of every small business in the world buying IT with the environment in mind. There were 24 million PCs (desktops, laptops, ultra-portables, x86 servers) shipped to SMBs worldwide in the first quarter of this year alone (IDC Worldwide Quarterly PC Tracker, June, 2008). If all of these systems were designed and set up to consume less energy, that's millions of tons of C02 avoided and billions of dollars in collective savings. We announced in May that we are designing our laptops and desktops to consume up to 25 percent less energy by 2010, relative to systems offered today. Dell products are already among the industry's most energy efficient.
  
  So whether you have a data center or just a few PCs, Green IT does offer savings for your business and helps us all do our part to save our planet. Environmental responsibility - from product design to a company's operations to reuse and recycling - is also an increasingly important factor for businesses evaluating IT providers. Let us know what you think and how you are implementing sustainable practices in your business.

   
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• Small Business Cost Saving Tip: Go Virtual to Reduce Expenses

  Thu. Aug. 07, 2008
  by Robert Peek, SMB Liaison

  The US Postal System, FedEx, and other major carriers do a great job delivering for small businesses.  These services can get quite expensive, particularly if you use them regularly or ship bulk materials. More and more, small businesses now have computer systems and rely heavily on web pages, email, and online banking to handle their daily transactions.  So, cutting out paperwork altogether can make filing easier, save on staff resources, and reduce postage costs, not to mention the environmental advantages.  Megan Prusynski of the Ecopreneurist wrote an article that dives into the economics of a paperless operation. This is a great read if you’re looking for some tips on how to become paperless.

  If you do plan on converting your business records and transactions to “virtual transactions”, be sure to keep duplicate records.  Sites like Yahoo and Google will store business emails online for free, and online data storage is relatively inexpensive.   Jeremiah Owyang brings up an interesting point that - in the future - data storage companies might start paying their customers to upload their records.  In addition to uploading, creating a ghost copy, tape backup, or RAID backup of the computer's hard drive locally would be imperative for saving critical data.
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• 5 SEO Tips for Small Businesses

  Mon. Aug. 04, 2008
  by Emily Gudeman, Dell Search Goddess

  Everyone is looking for a competitive edge in a competitive market that is ever changing online and SEO can seem overwhelming at times. Both my grandparents were small business owners, and my father still is, so I know that getting the most from your efforts - quickly - is critical to your success. Effective Natural Search results are practically delivered to potential clients looking for your services without a costly acquisition campaign. So - how do you make sure that you’re the right page is appearing at the right time with the write message?

  Understand the language of your customer. Choose one keyword to focus on per page and make that page, essentially, the landing page for that topic. Don’t be too technical or too “buzz word” oriented. Choose a keyword or phrase that is exactly what your customer use to describe your service. Keep it simple but specific. That is how your customers talk and search. Having the same words on your page helps demonstrate to a search engine that your page is the most relevant to the topic.

  Page and Web site design is key. A spider reads your Web page like you read a book- top to bottom, left to right. Keep the text at the top of the page. Also, don’t forget that bold text, bullets and hyperlinked text is seen as being “more important” text on the page.

  · Simple, link driven navigation is very SEO friendly. By positioning your navigational links, descriptive text at the top of the page, you are ensuring that the text is recognized by the spider.

  · Use Meta tags to direct spiders away from “standard” elements of your page like links to “contact us” or logo icons. Focus the spiders to the most pertinent content on the page and “squeeze the juice” from the content.

  · Flash banners and pages can create a positive experience for a customer but they can be challenging for your SEO efforts. Consider if Flash or Flex is the best vehicle for your top targeted pages. If so, ensure that they are coded in a SEO- friendly way. Maximize and optimize by hyper-linking your targeted keywords for the page!

  · Don’t underestimate the importance of your page’s Meta description. It’s the first opportunity that you have to message to the searcher and differentiate from the other search results. Get that Click!

  Get Analytics. Understanding your website’s Natural Search performance helps to understand and prioritize your efforts. Maybe you need to optimize a page for searchers who are in the research phase and another for those who are ready to buy. Which page is going to get you the best results- quickly? A data-driven decision will make your optimization efforts more focused and effective.

  Be a player in the industry. Linking can be the most difficult of all aspects of SEO. Artificially collecting links can be expensive and, if not legitimate, can be detrimental to your online reputation. But garnering links from other sites can be within your control. Understanding your industry landscape and the big players that you can partner can open linking discussions. Consider other Web sites that operate in the same space but aren’t your competitor. Try a variety of methods like including links in your press releases, links partner sites, industry event Web sites or even links from your own homepage. SEO directories & Agencies can also jumpstart your linking strategy.

  Lastly, consider paid search as way to jump start your online presence. SEO can take months to reach its full potential and a simple Paid Search Strategy can increase your traffic and brand presence in the meantime. Focuses on keywords that are used when customers are close to purchasing so you realize a positive ROI.

  Google and Yahoo have changed the way we navigate information forever. Even the most obscure information, products and services are now at our fingertips. Customers are looking for you- Are you there?
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• A small thank you is still a thank you

  Mon. Jul. 28, 2008
  by Kara Krautter, Small Business Community Manager

  The days leading up to a project deadline are often filled with stress and long hours at the office, which leads to very little time to do your normal everyday tasks (like eating). Drew McLellan of Small Business Branding posted a great article on how saying thank you to your employees - even on a small budget- can go a long way. From gift cards to massages, free meals to time off, there are simple and relatively low cost ways to show your employees you appreciate them. Sure, a wad of cash would be great after all the hard work is over, but a free dinner brought into the office at 7 p.m. can definitely ease some of the overtime burden.

  How have you said thank you to your employees?
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• A Q&A with Melanie Notkin – CEO and Founder of SavvyAuntie.com: Part 2, Tips for Launching

  Thu. Jul. 24, 2008
  by Kara Krautter, Small Business Community Manager

  A continuation of the Q&A with Melanie Notkin.

  Kara: You come from an interactive marketing background, so incorporating social media (Twitter, blogging, Facebook) in your marketing seems natural. What advice can you give other small businesses about the advantages (and disadvantages) of using more 'non-traditional' ways to reach out to customers?

  Melanie: Anyone who knows anything about business knows that it’s all about relationships. Kara, you know that intimately, being the Community Manager for the Dell Small Business Blog. Small businesses need community on a number of levels, not the least of which is support. So building community and relationships is nothing new. What is new is the way we’re able to approach it through social media.

  I can honestly say that the launch of SavvyAuntie.com would not have been nearly as successful without the social media communities I have joined. The people I connect with on Twitter, Facebook and through my blog are tremendous supporters of the site and of me frankly. In fact, many of the Savvy Auntie Experts and Advisory Board members are people I met on social networks. And there are so many people who have helped with Word of Mouth side of my launch by blogging about it, Stumbling it, Facebook sharing it, and Twittering about it. I am proud to say that “SavvyAuntie” was the most Tweeted word on Twitter the day I launched. How cool is that?!

  Of course, I support the people I have met through social media as well, which is the key to success in community. Listen before you talk.

  If you are planning to launch or have launched a small business and are looking to engage community, find people you want to learn from and connect with on a micro-blog like Twitter. Join the conversation. Tell them about your business and ask them for help building it. Don’t ever sell. Twitter is not a market-place. It’s a community. Think of it more like volunteering to plant the community garden, not selling the community your sod. If the garden needs sod, the community will know who to turn to.

  Kara: Creating your own site forces you to get more 'up close and personal' with technology. What surprised you most about the technology needs to launch a site? What tech gadget/system/software could you not live without now?

  Melanie: While I do understand technology, I am hardly a tech geek. I love my iPhone (version 1.0) and have a lot of fun with my Canon Powershot and my Flip camera. But I leave the more sophisticated technology up to my Technology team over at Quarksoft.com. One of the things I learned early on about starting my own business was to know what I know and do what I do-- and do it well. What I don’t know or can’t do, I hire people much smarter than I to manage it. I also have a wonderful Advisory Board.

  Kara: On your blog you give 20 great tips for new entrepreneurs. If you could only give one tip for women who want to start their own company, what would it be?

  Melanie: Ask for help. Some women are either embarrassed to ask questions, or think they are not worthy of someone’s time. But, I have found that 95% of the time people are more than willing to help. If you are excited and confident about your idea, you’ll be surprised how willing people are to help, even strangers. Everyone wants to be a part of something new and inspiring. They will thank YOU for the opportunity to be a part of it. And that other 5% who are not willing to help? Well, that’s where karma steps in.

  Kara: The launch of SavvyAuntie.com has filled a gap in the online world - the first online community for Aunts. What other opportunities do you see on the horizon for small businesses online?

  Melanie:  It used to be that if you launched something online, it had to reach and engage everyone. Today, niche destinations are more exciting. Social media enables like people to form communities online and engage each other with user-generated content. The more niche the content, the more focused and connected the community, the more exciting the possibilities. Be something really special to a niche group, and develop something really engaging. If you build it, they will come. And if they don’t, never regret trying.

  A friend of mine, also an entrepreneur, told me recently that he had a really bad day because he started a triathlon and had to quit soon after he got on the bike – the first leg of the race – because he had a fever and just couldn’t make it. I told him he should be proud. Most people never get in the race in the first place. The courage to get on the bike is the key to winning the race. There are no guarantees you are not going to fall, get hurt, or quit. But if you never get on the bike, you are guaranteed never to get to the finish line. It’s that simple. So to all of you small business owners who got in the race in the first place – cheers!

  If you have questions or comments for Melanie, please share them here and she will try and respond. Also, feel free to connect directly with her on Twitter.com/SavvyAuntie.
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