Business Alone

If you are serious about starting a small solo business, there is no greater lesson to learn than how to apply the principle of maximum leverage to everything you do in your business operation.

Your survival, and ultimately your success, will hinge on how well you grasp the concept and make it your slave.

It's a difficult lesson for many, partly because most of us rarely practice applying leverage in our own personal lives. We tend to get complacent and accept low output and/or maintaining the status quo as our daily M.O.

Every business needs to establish and maintain professional working relationships with suppliers, distributors, vendors, service providers, and outsourcing companies.

You may think that just because you're running a solo operation and you are developing all your information products in-house you don't need to worry about on-going relationships.

Every business will need to establish partnerships (or relationships) with an Internet service provider, a bank or other financial partner, tax consultants (even if you prepare your own returns), insurance providers, possibly an attorney, and most likely some online service providers (like a merchant account company to provide for credit card transactions).

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.

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.

In the previous installment we discussed some of the costs associated with delivering physical products to your customers.

Be careful to study the numbers and understand exactly what it is costing your business on a weekly, monthly, and annual basis to send out your goods.

In most instances, it is best to charge your customers about what it costs you to handle and ship their purchase. The amount can vary a little from your exact cost so that you can standardize and simplify the shipping cost structure you present to your buyers.

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.

Often, new business owners figure the only way to increase sales is to put your product or service in front of more people.

Such a strategy usually means that you spend increasing amounts of money on advertising so you can extend your reach in to more and more markets.

Increasing sales by ramping up advertising is one way to pump up the bottom line. But there may be other more effective uses of your business operating budget.

Most small business owners look for additional sales in increased advertising and marketing.

But there are other strategies to explore and some unique methods of driving more sales in your business without turning up any additional customers.

One of those strategies involves up selling - offering additional products to the sales of your current buying pool. You're not having to locate new first time buyers . . . you're simply selling more to those who buy a product.

My wife is affectionately known around our house as "the Coupon Queen."

She dissects the local daily newspaper and all the mail flyers for coupons that she can use locally to get discounts on products that she buys.

I have found that using this same technique in your digital business can be especially effective in drawing traffic to your web site and boosting the sales that you get on your products.

The advantages to using coupons are many. If you include an expiration date, the coupon encourages buyers to check out what you have sooner rather than later.

They give your prospects a reason to click on your active links right now for fear that if they wait, their chance at a good deal may have vanished.

Every new technology faces the same uphill battle when it comes to public acceptance and dispelling people's fears that something bad will happen to them as a result of some unknown or unanticipated problem.

Many people say they are hesitant to make a purchase online because the either fear the process or they fear that their money will be lost forever because the seller will "take the money and run."

I'm too young to remember the early days of inventions like the car, the radio, and the telephone, but there were great fears among the public about what these new devices would do to society.

Many people were slow to adopt and embrace change. It wasn't until they actually saw and understood the advantages and noticed other folks were using the inventions without harm that they decided to give them a try.

Here are a few additional suggestions of practical things you can do in your business to gain the trust of your prospects by calming their fear of purchasing on the Internet and dealing with an unknown company:

6. Be very clear and precise about what the customer is getting with his purchase. Don't leave anything unclear or in doubt. If anything, be overly specific and descriptive so the customer doesn't wonder what his dollars are actually purchasing.

7. Make the actual buying process as easy, straightforward, and intuitive as possible. Don't ask for more personal information than is necessary. Now is not the time for a customer survey. Explain each step you ask the customer to take. If the buyer is going to be taken away from your web site (for instance, to have a credit card transaction approved), explain to him why he is leaving the site and how he will be returned automatically.

You would think most people are rational when spending money on products and services that they find online. After all, the complete information about the product is readily available right on the Internet.

You can also quickly compare prices, shipping, and other factors between two or more sellers to assure you're getting the best deal possible.

I'll admit that I've spent hours online comparison shopping, researching benefits and features, and reviewing the sales pages for just one item I wanted to purchase.

The time I spent online was probably worth way more than the product I was after.

You may not have this problem - I hope you don't. If you're super focused and well disciplined, you should be able to avoid digital dust.

I haven't. I fight the curse constantly and usually give in to my quest for that next great resource that's going to propel my business into the heavens.

Digital dust is what all those business tool software and information products turn into over time. It's pretty much worthless, and often turns into a total waste of your business budget.

I guess maybe I'm just a succor for a good sales pitch. I'm the kind of guy a smart product developer can sniff out in a crowded room. Maybe "gullible" is permanently stamped into my forehead.

If you were to hear this complaint (which by the way, I hear very often) what would you guess the business owner was really saying?

Was he saying that he had a great product, but his targeted customers were just too dumb to recognize it and hence they weren't buying?

Or was he lamenting the fact that he was not selling to the right customer niche market?

Or maybe he was charging too much for his awesome product and nobody wanted to buy at that price?

Or could it be that no one was hearing his sales message and seeing his ads and therefore he was not making sales?

I believe in small business! I believe in entrepreneurs!

I believe that anyone can create and operate their own successful small business if they will choose a viable niche and apply sound business strategies and principles (which you can learn here).

My favorite solo Internet business strategy suggests you create an information-based business around your education, training, interests, knowledge and passion.

So what is this "passion" I'm talking about? Does it mean you have to like the subject of your business?

Well, not exactly. You see, passion is much more comprehensive and deep than simply "liking" what you do.

I saw this question in a marketing magazine recently and it got me to thinking about the importance of defining what you expect your ad to accomplish.

Well there are lots of different types of ads and so there are multiple outcomes that could be targeted for your specific ad depending upon its purpose.

My guess is, most small business ads are pretty ineffective. Let's be truthful here - how many times has your ad pulled the type of response that you had hoped for?

Usually, ads under-perform our goals and sales never seem to overwhelm us on the positive side.

Grab any piece of junk mail and take a quick look at it.

You will probably notice one of two things: either the copywriter hits you right between the eyes with his offer up front, or he forces you to read through the ad to locate the offer which will invariably be hidden at the tail end.

The first strategy is employed to qualify the potential buyers from the "just looking" crowd.

The sales copy is very straightforward and pushes the prospect early to decide if this offer is for him or not.

If the viewer has a genuine interest, he will continue reading the ad.

You know what I'm talking about.

How many times have you seen an Internet marketer use the "impending deadline scare" as a reason to hurry and purchase a product or sign up for this or that before the deadline.

Of course they're trying to incorporate the sense of urgency into their marketing.

Many smart advertisers know that one of the greatest fears most people have is the fear of losing out or of being left behind.

So the ads of these smart people nearly always include some kind of deadline coming up in the near future designed to make the reader take some immediate action.

The manufacturers of the industrial era had at least one thing in common: they found that mass production could cut both product costs and production times by substantial amounts when work was compartmentalized and the flow of assembly was orchestrated to bring all the parts together at the proper time (on the assembly line) and sequence.

The expectation remains today that products can be made and delivered to the customer in record time.

You order a digital camera over the Internet today on your lunch hour, even from a dealer thousands of miles away, and you should be able to have it delivered to your front door by noon tomorrow, if all goes well.

In our previous discussion, we talked about the fact that a new business owner cannot rely upon "the corporation" to provide him with contacts, invitations to events and groups, company resources, credibility, etc.

When you strike out on your own, you're basically naked!

Here are some ideas to help you, as a solo business owner just getting started, develop your own business network and support system.

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.

When it comes right down to brass tacks, I would say every Internet business owner should consider herself or himself an information publisher.

It seems to me that all business web site owners need to be publishers of:
a) website information;
b) sales letter copy;
c) site content in the chosen niche;
d) products in digital or hard copy form;
e) blog content;
f) email communications;
g) customer service responses;
h) advertising / marketing copy;
i) articles and press releases;
j) probably other things I'm forgetting about ...

My point is, whether you consider yourself to be an info marketer or not, you really need to pay close attention to your publishing (i.e. putting it out on the net or in emails) and how it can affect your overall business.