Entrepreneurs: Build Your Brand, Build Your Opportunities

June 17th, 2013

“Business is as old as life,” says author and entrepreneur Ifeanyi Enoch Onuoha, “there is no living being that does not have a business.” Business may be as old as life, but many of us get so caught up perfecting new technology, we forget life’s business basics.

According to the Word of Mouth Marketing Association (WOMMA), a whopping 59 percent of us believe that the most credible purchase recommendations come from face-to-face, or voice-to-voice interactions. What does this mean for you? If you’re not armed with tangible brand collateral, confidence and a pitch that resonates, you’re missing invaluable opportunities for success.

Invest in Affordable Tools of the Trade

Whether you’re the CEO of a Fortune 500 company, or you’re trying to get your handmade furniture business off the ground, your business card should be an extension of your hand. Prescott Perez-Fox of Starship design likens your business card to an artifact that everyone you meet can remember you by. A properly designed and distributed card can be the thing that signs your biggest clients. Kyle Laser of Laser printing tells businessinsider.com that he modeled his company’s business card after a Google search result, and he estimates that 10 of his largest clients were signed because of the card alone. The printing business is competitive, and many companies offer unique reasons to print with them: Printing for Less business cards are produced in a tri-certified green way, allowing you to feel good about your mark on the environment.

Be Your Brand: Make an Impression

A study published by “Psychology Today” reveals that more than 80 percent of communication is conveyed through non-verbal means like body language and tone. And, according to businessinsider.com, 55 percent of someone’s opinion of you is based on your overall appearance. What does this mean for your brand and business? You wield the most power in person, so take advantage of it.

  • Clothing: You don’t need to be clad in Gucci from head-to-toe, nor should you be sporting a wrinkled T-shirt from your college water polo days. Conservative clothing diminishes the chance of anyone being turned off.
  • Eye contact and body language: Posture, eye contact and a strong handshake have the ability to poise you as a titan of industry or a nervous wreck. Sit up straight, look your potential clients in the eyes, and you’ve nailed most of their expectations.
  • Tone: Remember that 38 percent of someone’s opinion is based on tone, so find one that resonates. Businessinsider.com recommends you come across as a calm blend of enthusiastic, humble, secure and determined.

Master the Word-of-Mouth Pitch

Face-to-face, or voice recommendations are the most powerful tools for your business, but how do the numbers translate? According to WOMMA, 54 percent (the largest piece of the pie) of purchasing decisions are a direct result of word of mouth. Good-old-fashioned conversation is one of your strongest allies in the business world. In our economy, a good elevator pitch or introduction can seal any deal. An elevator pitch is as much as a science as it is an artform, and if you haven’t perfected yours yet, now is the time. Entrepreneur.com’s Barbara Findlay Schenck breaks down the art and the science of the perfect pitch:

  • Take five words to describe yourself, preferably less
  • Say exactly what you do in one sentence
  • Explain who your target market is
  • Paint a picture of your vision
  • Practice until your voice is horse
  • Now, reduce the whole thing to less than 20 words

Your business might be new, and your online presence might be tailored to perfection, but every business transaction has value. Every new encounter you make has potential. Be ready with the right collateral, poise and pitch, and you can take on the world.

Posted in Entrepreneur, small business, Tips & Tricks | 4 Comments »

The Best Hire for Your Empire

May 6th, 2013

More than 30 percent of hiring managers second guess their new hires. Up to 25 percent of new hires second guess their choice of employer. The results can devastate the profits of a business, reports The Recruiting Roundtable. Just consider that 68 percent of customers and clients stop doing business with a company because an employee shows an attitude of indifference towards them, and the lifetime value of a customer is 300 to 700 times more than an hourly employee’s pay, according to a survey by author Michael LeBoeuf

When it comes to employees, choosing wisely will help you reap the most rewards.

Cultivating a Small Business Culture

Although opportunities for advancement are generally less frequent with small businesses, there are ways to make devoted employees feel like part of a growing business. Even large companies such as Costco can adopt a small business culture that boosts the morale of current employees.

An interview with Jim Sinegal, former CEO of Costco, showed that big companies often work to promote from within because it provides better incentives for longtime employees. Individuals who come from other retail venues are trained for a set time period before obtaining a promotion to a preferred position at Costco. Basically, Costco has enjoyed much of its success because they use a specific formula to cultivate the enthusiasm of their employees while rewarding long-term effort and loyalty.

photo Victor1558

The Benefits of Promoting From Within

Having a plan to rate and review each employee’s strengths, areas of growth, and leadership potential can make the decision a little easier for professionals looking to hire new employees.

Clay Wyatt of BusinessFinanceStore.com, says that a major benefit of hiring internally is cost reduction. Hiring from within saves the expense of using a recruiting service and advertising the position. The cost of hiring externally is usually much higher, due to the necessary steps a company must take to interest potential employees.

Another benefit of internal hiring is increased employee morale. Employees who feel that they are able to grow with a company are more likely to work efficiently and retain a positive mindset. This increases the productivity of employees as they work on building a career.

Benefits of External Hiring

Although hiring from within is an excellent practice for many reasons, hiring outside the company is a great way to bring in fresh thinking. New ideas brought in by external hires can motivate a stagnant staff, according to Education Week’s Emily Douglas. A new employee is likely to bring creative thoughts to the table, which can lead to more innovation. Streamlining the process with resources like job-applications.com for new hires to apply can also be a big, time-saving help.

Hiring externally may also be necessary when specific qualifications, experience or educational standards are desired. Current employees might not have the experience or education needed for a promotion. Hiring a specifically educated new manager can also help current employees expand their repertoire and business sense.

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Why Economists Love Cloudsourcing

April 6th, 2013

“The cloud” is the phrase on everyone’s lips this year, but not all new ideas stick with us—Segways, zip drives, and HD-DVD were all the hot new tech at one point, and they’ve all gone the way of the dinosaur. Will cloud computing wind up on the scrap heap of tech history? We don’t think so, and neither do many economists. Here’s why:

1. Cloud computing massively lowers fixed costs

Drumming up initial investment is one of the biggest hurdles that small businesses face. The larger fixed costs are, the harder it is to get started—and the more likely entrepreneurs are to get stuck in an exploitative contract with investors. All startups endure a zero-profit phase while they build customer base and pay down their fixed costs, and the longer that period is, the more likely a business is to fail. Cloud innovations like virtual desktops, storage, and money management lower the need for startup cash, shortening the window of zero-profit, and allowing more good ideas to turn into successful businesses.

2. Global cloud networks spur investment in developing countries

Until quite recently, people in developing countries had very few opportunities to connect with the world of global business; if you couldn’t afford to go to college overseas, you were stuck. Now, cloud networks connect hospitals in Europe with x-ray technicians in Bangalore, and American corporations consult with engineers in Nigeria; the human capital of the entire planet is increasingly connected in an efficient, wealth-generating network that is far more than a passing fad.

3. Cloud services give small firms access to economies of scale

Most production processes get cheaper as they get larger, and in the past, that fact has strangled small businesses who attempted to compete with the bigger players in their industries. A mom-and-pop grocery store simply can’t match the massive, fine-tuned supply chain of a global supermarket franchise. For services like data storage, web hosting, and accounting, the cloud has given small firms the same “bulk discount” that big companies receive—which makes markets susceptible to disruption and innovation on an unprecedented scale.

4. Comparative advantage is everything

Comparative advantage is the first principle of economics: it states that economies run better when everyone concentrates on their strengths, instead of trying to do everything themselves. Until recently, most entrepreneurs would have to serve as accountant, lawyer, analyst, customer service, and IT, all at once—a very inefficient and exhausting way to do business. Today, cloud services allow entrepreneurs to focus on idea-creation and execution where they have expertise, and use cloud services to store their data, track financial goals, and hire customer service and tech support at minimal cost.

5. Cloud networks broaden the labor market

Only fifteen years ago, companies were limited to the workers they could hire in-town, or persuade to move. Now, about three-fourths of businesses in the US hire part or full-time telecommuters, meaning they can select the best employees from all over the world to meet their company’s needs. Cloud file structures like Dropbox and Google Docs allow firms to collaborate seamlessly across the world. Not only does this allow for firms to save money and run more efficiently, but it also allows workers to find employment without the massive cost and commitment of moving across the country or the world.

 Tara Wagner is a staff writer for TechBreach. She has worked from home for over a decade, and loves sharing news and advice with fellow telecommuting moms and dads. She’s fascinated by new tech and new ideas; and when she finds time to unplug, she enjoys long hikes in the mountains near her home. She lives in Denver.

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Posted in Entrepreneur, Guest Post, small business, Tips & Tricks | 1 Comment »

Starting a Business on Credit: The Forbidden Financier

April 4th, 2013

If you search for entrepreneurship advice online, it won’t take long to find experts shouting to avoid credit cards. They may cite the Ewing Marion Kauffman Foundation, which found that every $1,000 of credit card debt increases the probability that a firm will fail by 2.2%, or financial radio show host Dave Ramsey, who claims credits cards are the scourge of American finance.

They probably won’t mention a pair of Stanford Ph.D. students that spread funding for their pet project across three credit cards or the designer that developed small plastic guitars while paying with small plastic credit cards. Those entrepreneurs went on to create Google and Guitar Hero, respectively, and if those companies’ successes are any indication, using credit cards to fund startups can’t be all bad.

Credit Cards

Experts aren’t foolish enough to advise against credit dependence, but if you use them responsibly, credit cards serve as a valuable tools for growth. Consider these advantages to taking out a credit card for business.

Rewards

Pessimists hear “credit card” and think of compounding interesting rates, late payment penalties and plummeting credit scores. All of these things are potential consequences when owning a credit card, but that’s not the whole story. Rewards are a consumer’s chance to gain from the credit card industry. From airline miles to supply store discounts to cash bonuses, you need not look far to find rewards that offer a significant boost to your bottom line if you make payments on time. Things go south when you get behind on your payments, but credit card rewards add value to your business.

Credit Score

It would be one thing if card cards only served as cash advancements, but using plastic responsibly contributes to an important financial statistic: credit score. According to a post in the American Express OPEN forum by financial consultant Mike Periu, personal credit is a major point of interest for investors and lenders. You’re probably savvy enough to know that financing a business solely on credit isn’t wise, but building credit could open opportunities for outside investors. Lenders expect owners to have a FICO score of at least 700, according to Openforum.com.

Using a card to start a business puts your credit score on the line. Miss a payment, and you’ll see the score drop. Stay current, on the other hand, and your rising score will open opportunities to new investors.

Potential

In the end, financing a small business or startup with a credit card isn’t about rewards or your credit score. It’s about your dream and the chance to create something of value. The experts are right. Credit cards aren’t the best way to finance a business. You don’t always have thousands of dollars saved up, and there aren’t always venture capitalists waiting to write you a check. Credit cards afford you the chance to gamble on yourself.

If you believe in your business idea, don’t ignore credit cards as a possible financing tool. Who knows? You could start the next Google or Guitar Hero.

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Posted in Entrepreneur, Financial Intelligence, Investing, small business | No Comments »

How to Buy Gold and Avoid Scams

March 26th, 2013

The continent of Africa continues to be the world’s fastest gold-producing region. The history, and events of today as they pertain to the continent are quite telling as to gold’s monetary value regardless of market conditions. Mali and South Africa have been two of the world’s top gold-producing countries for quite some time. Gold prices have risen by more than 500 percent since 2002, and will continue to rise as the global central banks continue their policies of liberally printing and debasing the value of world currencies. Wealth attracts criminal opportunity as we’ve seen with the country of Nigeria unfairly targeted in the well-known “Nigerian prince” scam. The following are some tips on gold investing and how to avoid being scammed.

Gold Investment

Gold Investment

Mining

The Nigerian Minerals and Mining Act of 2007 prohibits “unauthorized” exploration and excavation of minerals from the ground, including gold. The federal government has issued permits and titles to several individuals and companies to begin mining. But the process has been slowed because villagers, who’ve lived on the lands for centuries, aren’t leaving quietly, according to the Global Post. Locals are well aware of the precious metal’s presence all around them, but in the past haven’t pursued mining because of small returns on their time investments. This has all changed now that gold is selling on international markets for about 10,000 Naira ($60 U.S.) per gram.

Nigerians are forming local associations and unions to pool resources and slowly buy back the right to mine their lands, according to Voice of America News. Lead poisoning is common, however, for miners who don’t take the necessary precautions. Any associations and unions looking to mine should invest in a supply of dimercaptosuccinic acid (DMSA), which removes lead from the body in case of poisoning.

Buy Bullion

Gold is now far too expensive for most Nigerians (and most others around the world) to buy at market prices, but is a great investment for those with the means. The main concern with buying gold bullion bars is, of course, being ripped off. A reputable online seller, such as US Money Reserve, will have disclosures and any risk factors on their website. The premium which any company charges over market value should never exceed five percent. The company should also have a verifiable address and phone number.

Gold Exchange Traded Funds

The best thing about gold ETFs (stocks) is that you can generally purchase shares for far less than on the per ounce gram basis bullion is sold. The Nigerian Stock Exchange added the NewGold ETF to its index in December 2011, which enabled investors to diversify without buying the physical metals. The fund has done relatively well in the subsequent 13 months after starting off slowly.

If you are trading in gold, do well to share with us in your comment. Cheers.

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Posted in Entrepreneur, Investing, Nigerian, small business | 2 Comments »

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