Business Alone

Since the beginning of time, solo business persons have opened and maintained retail stores that sold products to walk-in customers.

Sometimes the stores featured only specialty items, like a bike shop or bakery. Others carried a range of goods (like a mercantile) but remained small enough that one person could man the shop by himself and perform all the daily functions necessary.

There would be goods to order from manufacturers or wholesalers, shelves to stock, customers to wait on, books to be balanced, and cleaning at the end of the day.

When you do business online, you have to get a little personal with your customers. There's no way around it.

Being personal is fine with most of us, if we like and trust the person that's moving into our space. But online, being personal is a real challenge and a very sensitive issue for the business owner.

From the very beginning, you'd like to know how to reach your prospects individually. So, you go after a first name, last name, and an email address at the very least.

Regardless of the size of your business, you should separate all your business financial information and record keeping from your personal banking.

It does not look like you're very serious about your business if you continue to co-mingle your business and personal checking accounts, credit lines, credit cards, etc.

Legitimate companies keep their financial transactions totally separate from those of the owner. So should you.

Separate accounting will help you to avoid confusion, keep your information organized for tax purposes, and it will give you a "check" on the health of your business.

I get a number of calls every week that go something like this:

"I want to start a business. I have a wonderful idea. I have no money but so and so told me there were government grants available for new businesses. Can you help me get $50,000 so I can start right away?"

Not wanting to burst the bubble immediately, I might say something like, "What do you want $50,000 for?"

"That's how much I need to rent a building, make some improvements, and set myself up in business. I figure I'll make it all back in the first year."

Have you ever noticed a shopping cart full of groceries sitting next to the checkout stand at the supermarket?

I've seen it happen a few times and usually figured that someone simply left their wallet or purse at home and would be back soon to claim their abandoned goods.

It's not a big problem since most stores are accommodating about the oversight.

But online, shopping cart abandonment is a huge problem! No one really knows the extent of this loss to e-tailers, but I have seen some estimates that suggest fifty percent or more of all online sales processes are never completed.

Having to ship merchandise out to customers reminds me of the hassle of shaving every morning. It's a part of the daily routine, it's something to be tolerated but it's never enjoyed, and the longer you let it go, the more difficult the chore grows for the next day.

In my mind, having to ship merchandise, keep inventory on hand, box and package products, etc, is one of the reasons I feel strongly about solo operators focusing on information based business only. There is no shipping.

If you ship merchandise, you have to keep merchandise. All of a sudden you are in the warehousing and inventory business that presents all kinds of extra manpower costs, worries and hassles.

Some business owners prefer to deal with problem customers by writing them off and shoving them out the door. They don't want or need to be bothered with further dealings or more headaches.

I think there is a better way, however, to attempt to appease and "soften" an irate customer.

Why not turn him 180 degrees around and convert him into one of your most loyal and valued customers?

You won't be 100 per cent successful with this strategy, but it will work often enough that you will soon understand the benefit to your business of this approach.

I think some people are born to complain.

We've all been acquainted, or at least come in contact, with this type of personality at some point in our lives.

It seems that if the person is not registering a complaint, he's out of character.

It's sad because we all tire of this constant criticism and negative attitude, even though we may be good friends with the person.

But this type of personality can be damaging to a small business in a number of ways.

The type of fraud I'm referring to is credit card or payment fraud as opposed to things like embezzling, tax evasion, or product scams.

The Internet presents a special environment for payment fraud because transactions take place all over the globe often without one or even two parties being physically present to inspect or insure that everything happens as it should.

Anonymity enables dishonest people to become bold and brazen.

Credit card numbers and individual identities are stolen everyday by the unscrupulous.

Web sites and shopping carts are hacked in every industry.

Abuse of the payment system is commonplace nowadays.