Archive for the ‘Small Business’ category

Small Business Investments

September 19th, 2011

State laws have been relaxed to make it easier for small business to raise start-up and growth financing from the public. Many investors view this as an opportunity to get in on the ground floor of an emerging business and to hit it big as the small businesses grow into large ones.

Statistically, most small businesses fail within the first few years. Small business investments are among the most risky that investors can make. This guide suggests factors to consider for determining whether you should make a small business investment.

Risks and investment strategy

A basic principle of investing in a small business is: Never make small business investments that you cannot afford to lose! Never use funds that may be needed for other purposes, such as college education, retirement, loan repayment, or medical expenses.

Instead, use funds that would otherwise be used for a consumer purchase, such as a vacation or a down payment on a boat or a new car.

Above all, never let a commissioned securities salesperson or office or directors of a company convince you that the investment is not risky. Small business investments are generally hard to convert to cash (illiquid), even though the securities may technically be freely transferable. Thus, you will usually be unable to sell your securities if the company takes a turn for the worse.

In addition, just because the state has registered the offering does not mean that the particular investment will be successful. The state does not evaluate or endorse any investments. If anyone suggests otherwise, they are breaking the law.

If you plan to invest a large amount of money in a small business, you should consider investing smaller amounts in several small businesses. A few highly successful investments can offset the unsuccessful ones. However, even when using this strategy, only invest money you can afford to lose. » Read more: Small Business Investments

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Posted in Business, Small Business

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Steps for Successful Small Business Marketing

August 6th, 2011

Small business marketing can be tricky, and you can spend so much to only be disappointed. It shouldn’t be that way. For a marketing campaign to be effective, it must be able to attract consumers. One of the mistakes budding entrepreneurs do is making campaigns that are hard for consumers to understand. People won’t come to your business if they don’t understand what you’re telling them. So make your campaigns simple. Basically, you only want to tell your audience what you are offering and why they may need your products. The purpose of marketing is to capture an audience. If marketing doesn’t seem to work, it’s time to evaluate your strategies.

One of the reasons why small businesses fail is that they get into the game attempting to compete with established businesses.

1. Find your audience. Marketing cannot start without knowing who your audience is. Are you selling candies for kids and young teens? Are you offering laundry and ironing services for homeowners? Are you opening a convenience store in your town? Knowing who might be needing your services or products is a prerequisite to small business marketing.

2. Talk to your audience. There are many ways to get your message across. The most important thing is to call their attention. For that, you should come up with an effective marketing campaign. What do you want to sell and why are you selling it?

3. Be there as an answer to an existing problem. Clever businessmen advertise products by first emphasizing an existing need or problem and then presenting a solution-their products or services. Consumers will not buy something they don’t need. » Read more: Steps for Successful Small Business Marketing

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Posted in Business Marketing, Marketing, Small Business

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