The Morning Paper: A Reliable RSS Reader

Every small business owner needs to stay abreast of business politics: whether the news concerns your particular industry, small business debates in D.C. or the state of small business optimism. A huge range of events could affect your small business, and keeping up might just help you spot an important opportunity or avert impending disaster. An RSS reader basically screens your chosen news outlets and filters out the most relevant articles for you. Consider it akin to a newspaper made up of only the articles you want to read.

RSS readers have grown wildly popular, and many of these programs are completely free. Popular programs such as Awasu and Omea Reader will provide excellent service without costing you a single penny. For example, these RSS readers can even deliver blog updates, podcasts and so on right to your e-mail inbox. If you fall in love with the software, you can pay for expanded services.

Kicking the Day Off: Calendar Management Software

The right small business software gets you mentally ready for your day, cutting down on unpleasant surprises and missed appointments. An excellent calendar management program assists with meeting schedules, to-do lists and upcoming deadlines. This way you know exactly what you need to accomplish that day in order to stay on the ball.

You may want simple and specialized appointment software, such as the Desktop iCalendar Lite or Google Calendar for those who prefer cloud computing. (Both programs are free). More comprehensive programs such as Basecamp help you manage every aspect of your projects with features like file sharing and discussion forums on top of standard calendar management. There’s no risk to check out this software, as you can try your first project for free.

Lunch with Friends: Marketing Software

You can sit there and spend all your time tweeting, but that frankly wouldn’t be very efficient. (After a certain point, it wouldn’t be very fun either). Luckily for small business owners everywhere, a whole suite of marketing and social media small business software has appeared on the market.

Software such as SurveyMonkey can help you perform marketing research, while services likeMailChimp maintains e-mail marketing campaigns. For all your social network needs, programs such as WildFire Interactive and Shoutlet help you manage accounts, create campaigns and track feedback—all on a single platform.

Closing Shop: Accounting Software

Last but definitely not least, you need to take stock of your finances. Given the importance of cash flow, this should probably be an all day concern. At the very least, you want to check in at the beginning and end of the day to maintain your very essential cash flow calendar. For simple and straightforward programs, free and basic options include Freshbooks and Wave Accounting. Since finances lie at the very foundation of your small business, you may want to go all out on this small business software. For a more in-depth look, check out our discussion on the best accounting software for your small business.

This article was originally published on Funding Gates. Funding Gates is the world’s first CRM platform for receivables management. Serving as an online credit department for small businesses, Funding Gates is set on making managing receivables the easiest part of running a business.

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If you’re already practicing segmentation, you’ve probably established groups based on things like age, location, gender and industry. If you’re ready to take your email campaign to the next level, consider additional segmentation to develop highly customized emails with the potential to bring in even more revenue.

1. Organization Category

Lots of us provide products or services that are equally valuable to small businesses, corporations, non-profits, and franchises. But how we appeal to representatives within each of these organization types will vary. Divide your list, focusing on the most attractive benefits for each group.

2. Purchase History

By identifying which customers have made purchases from you in the past, you can take advantage of upsell opportunities for your products or services. You can also guess what new products a customer might be interested in based on the purchases they’ve made in the past.

3. Shopping Frequency

Email reminders, offers and announcements are solid methods for increasing how frequently your customers shop with you. Encourage more reluctant buyers with special offers and sales announcements while building brand loyalty with your frequent buyers.

4.  Customer Referrals

Customers who refer your business to their friends should be rewarded. Set up a special segment for these valuable buyers. Reward them with new product trials or offer codes, and then take the opportunity to request reviews from these customers who are clearly satisfied with your company.

5. Interest Topics

You can use surveys or questionnaires during the opt-in process to find out what topics your subscribers are most interested and email them only the most relevant email content. This can go a long way in preventing unsubscribes due to email overload. In fact, if you can only implement one new segment category, this is one of your best options.

6. Checkout Abandonment

Research suggests that more than 50% of shopping carts are abandoned before the purchase is completed. By implementing an email campaign for this segment, you can send a reminder to shoppers. The trick is to collect the customer’s email as early as possible in the checkout process.

7.  Industry Knowledge

If you segment groups based on how much they know about the industry you’re in or the products you sell, you can customize how you nurture leads through email marketing. Highly knowledgeable segments don’t need to be bombarded with 101-level content, but those with minimal knowledge will appreciate starting with the basics.

8. Content Consumption

Keep track of how your readers consume content on your site and in your emails. Those who are more responsive to video, for example, can be given more opportunities to view embedded videos in your campaigns. Tailoring content in this way can improve response rates across the board.

These are just a few suggestions for more effectively segmenting your email subscribers. Have you discovered other effective ways to break down your subscriber list?

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Prepare a Traditional Business Plan

It’s essential that any loan application present a detailed and heavily-researched traditional business plan. In today’s economy, even great ideas can flop, so without a clear roadmap to success lenders won’t be willing to take a risk. Your business plan should include extensive market analysis and facts about your target customer base and the market share you can expect to grab. It should also include specific income, expense, and cash-flow projections backed up by sound reasoning. Flaunt your experience and your qualifications to succeed in your industry. Your business plan should make a near-airtight case that you will be able to pay back your loan.

Be Specific When It Comes to Financials

The funding request section of your business plan should also be grounded in specifics. Detail exactly what each dollar of the loan will be going towards. This not only shows the lender that their loan will be used efficiently, but it’s helpful to you as well. Many businesses overestimate their funding needs, which can lead to unnecessary loan rejections or high interest rates. If the loan will be applied to different areas, prioritize them: you may be able to get the funding you need for essential equipment even if you can’t get enough to bring on new hires.

Also include any funding requirements that you expect to need in the next five years and any strategic financial situation plans, such as a debt repayment schedule or a potential buyout. Be clear about the terms you would like to have, but be prepared to be flexible about them when negotiating the loan.

Think Through Collateral

Another important consideration, even for smaller loans, is to be prepared to put up collateral and to contribute your personal wealth. Real estate is common for collateral, with a recent study saying 19% of small business owners are using a mortgage to help finance their business, and 15% are using real estate as collateral. Prepare a collateral document indicating what assets you have that could be used as collateral. Many small business owners are also dipping into their 401(k)s, college funds, or personal savings to put up money for their business. Contributing your own assets shows lenders that you have confidence in your business and are taking on personal risk as well, making them more likely to approve your loan.

Approach the Right Lender

Perhaps the easiest, but still very effective way to improve your chances for approval is to diversify the lending institutions you apply to. Big banks have been advertising their interest in helping small business owners, but they also have the highest rates of loan rejection, even for businesses that are existing customers.

Meanwhile, smaller, local banks and credit unions have much higher approval rates, yet small business owners and entrepreneurs often overlook them. Many small banks receive federal support for small business lending and they aren’t nearly as exposed to the international financial woes that big banks have been suffering. They also tend to be much less rigid about credit scores and financial ratios when considering applications. Expand your list of potential lenders to include smaller, friendlier institutions and you will not only improve your chances for approval but you may also foster personal relationships that can be valuable for years to come.

Small business financing is still hard to come by, and despite improvements in economic indicators, it’s likely to remain so for the near future. But with the right preparation and a bit of determination, you should be able to find a lender willing to back your business.

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1. Poor Credit or No Credit

Anyone seeking a business loan now needs to have great credit, both personally and for their business. This can create problems especially for new businesses and young applicants. Startups with no business credit history will have to rely entirely on the personal credit history of the owner — if you’re trying to get a loan, your credit history for the past few years needs to be spotless to show lenders your integrity and the seriousness with which you take your debts.

Unfortunately, this means young entrepreneurs with short credit histories can find it virtually impossible to secure traditional financing from banks, and may have to rely on investment from other funding sources, such as alternative lenders, friends, family, and angel investors.

2. Outstanding Debt

Another major pitfall in securing a loan is having a company that is over-leveraged. If your business already has a lot of outstanding debt, whether from other loans, lines of credit, or accounts payable, lenders are unlikely to extend you further credit. Paying down loans and keeping low balances on lines of credit (under 35% is ideal, but if that’s not possible keep it as low as you can) is an important step you can take to make your application more attractive to lenders.

3. Risky-Looking Default Factors

Lenders look at a number of default factors when considering a loan. The five most important are your cash-to-assets ratio, EBIDTA-to-assets ratio, liabilities-to-assets ratio, debt service coverage ratio, and net-income-to-sales ratio. These can be improved by simple efficiency measures, such as using savings to pay down principle on debts, managing inventory so that money is sitting in a warehouse, managing accounts receivable so you’re paid promptly, and examining overhead expenses to see where costs can be cut.

Other measures can help, but may need to be approached carefully: for instance, cutting operating costs will boost your net-income-to-sales ratio, but could cause problems in the long term for quality. You may want to cut costs in anticipation of a loan application to optimize your appeal to lenders, but have a plan for compensating for those cuts in the future.

4. No Collateral

Collateral has become very important to lenders, even for small loans. Lenders simply aren’t willing to risk default without any promise of compensation.

Analyze all of your assets, both the business’s and your personal assets (your house, your 401(k), etc.), and prepare a collateral document itemizing everything that you have to offer as collateral. For business owners that have reached the end of their asset base and don’t have anything to offer as collateral, securing a government-backed loan through the SBA may be necessary to find a willing lender.

5. Poor Business Planning

No lender is willing to take a risk on a business that hasn’t thought through its approach. Vague, poorly researched, and unspecific business plans are a top cause of rejection. Fortunately, this is a much easier issue to address than a lack of collateral or poor credit history. Do extensive research and thorough projections, and prepare a business plan that sells your business and shows lenders you have a road paved out to success. You want your lender to be as enthusiastic about your business as you are.

Fixing weak spots in these five areas will greatly help your chances of getting your loan application approved. If you’ve been rejected but you’re not sure where you’re falling short, ask  – submit a written request to the institution that rejected your application within 60 days of the denial, and they are required to give you, in writing, the specific reasons for the decline within 30 days of the request. Then take those reasons to heart so your next application will meet with better success.

Keep reading for tips to follow when you apply for a small business loan: read more.

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1. Donation

Of the five, perhaps the most obvious is the donation model. This works on basic philanthropy, whereby people give money towards a good cause. They are left with the warm glow of knowing they have done something positive, normally with some kind of social value.

Within the arts, this has traditionally been represented by the concept of the sponsor, or patron, of a certain artist or field of creative work.

2. Reward

This is the model which most comes to mind when people think about crowdfunding. The crowd makes a pledge to the project for some money, and the project offers them something in return – like a poster or piece of merchandise.

The reward model is used by services like Kickstarter and Indiegogo. But competition is getting stiff with lots of home grown sites starting to emerge and an equal array of business models that are catering to many different sectors (from archaeology to zoos).

3. Equity

This model happens when the project’s management offers a share of the profits to the crowd. Once break-even is reached and a profit is turned, or the project gets sold, the investors receive a share of the profits.

This is risky as start-ups often fail, so platforms in this sector require you to pass a test before you can invest through their site.

For the creative industries there is also bad news as this model may involve giving away some of the control you have over a project. If you are specialising in, for example, a craft that you are passionate about, it could be difficult for you to give up control.

On either side of the pond, when you offer equity, you will also need legal help to ensure everything is correct for you and the investors. This costs money and takes time to organise. Investors will generally be looking for growth businesses that they can scale up and sell at some future time. A small craft producer that works from their garage is not the kind of business these investors will normally consider.

4. Interest

This model is like getting a loan from the bank. Except here you get the loan from the crowd, and it is on your terms, rather than the banks.

As with equity, you may find a real lack of enthusiasm in your business unless you can prove it has the potential for major growth.

Another problem here is that the rates of interest may be a little higher than the high street. The headline numbers might look the same, but you need to consider fees charged by the crowdfunding platform, taxes you may need to pay and the payment processor. This all adds up and can mean the attractive initial rates you see melt away as these other costs bite.

5. Mixed

Mixed is just as it sounds: a mix of models. For example, the Crowdbnk platform in the UK offers you the chance of a reward or an equity campaign. But again, all the above issues need to be considered before you crowdfund your project through them.

Plus you need to check they are regulated. This will ensure that you are covered should they go bankrupt or find out a campaign is fraudulent.

There are other crowdfunding models, such as peer-to-peer consumer lending platforms, like Zopa and Ratesetter in the UK or Prosper in the USA. These are available for an individual to borrow money for personal use, like buying a new car, which they then pay back with interest. Rates on these sites are normally in line with main street banks, and to borrow or lend money you will need to be credit checked and identified to prevent fraud.

And this is just the beginning. As crowdfunding continues to develop and change, there may be new models born that give start-ups even more options.

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This doesn’t have to be you. The good news is that while you might feel pressure to make a difficult decision between building up your business or paying off your debts, these goals can be pursued simultaneously.

Leverage the time you are spending paying off debts by making intentional choices that will ultimately promote the success of your business. Here are 10 steps to getting started.

1. Compare Expenses with Long-Term Plans

Take time to look at your future goals and expected long-term profits. Managing a business requires looking not just at today’s costs, but also how investments will eventually pay you back. Only incur debts that are required to maintain your business. Wait until your business is bigger to purchase the newest equipment available; stick to necessities.

2. Build Credit

Consistently making payments on debts can allow you to build your credit, which you can use for future investments. At the same time, responsibly addressing debt demonstrates to future lenders that you are a reliable borrower.

3. Prioritize Debts

Gather data on all your debts, including minimum payment totals and interest. Start paying more than the minimum on the account with the highest interest. Focusing on one account at a time will enable you to meet goals and put the rest of your profits into business costs.

4. Set Up Automated Payments

Sometimes credit companies or loan servicers offer discounts if you set up your business account so that monthly payments are automatically deducted. This will save money and ensure you don’t miss payments.

5. Reward Yourself

Keep the momentum of a growing business by celebrating when you meet debt repayment goals. Reaching that halfway point of a loan that you have been faithfully paying off is a huge accomplishment. Treat yourself to a dinner out, and then keep up the good work.

6. Consolidate Loans

Debt consolidation — where multiple loans are combined into a single loan — can be a feasible solution to overwhelming payments. A new loan can lower your monthly payments, so that you have money left over to keep your business functioning.

7. Market Your Business Without Spending

Utilize free social media sites to advertise rather than spending money on marketing. Right now you can access thousands of new consumers by taking advantage of Twitter, Facebook, LinkedIn, Google+ and blogging.

8. Hold Monthly Sales

Once a month, offer a discount on your products and services. You can use social media to get people excited about the sale. Plan to dedicate the extra funds you generate from these events to debt payments.

9. Prepare for Slumps

One way businesses get stuck in a debt cycle is by borrowing during dry spells when sales fall and bills must still be paid. This may force you to fall deeper into debt as you borrow more to stay afloat. Instead, look at industry forecasts and have savings reserved specifically for these times.

10. Get Help

It’s tough to handle debt on your own. When it becomes impossible to make payments or afford to meet business needs, turn to a credit counseling service, so that financial experts can negotiate with creditors on your behalf and get you back in control.

Save where you can, spend where you need to and prevent loans from making your business stagnant. The decisions you make with the resources you possess today can contribute to having a debt-free business tomorrow.

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1. You Aren’t Targeting Recipients

If you haven’t taken any steps to limit who receives your RFP, you might actually be missing out on top proposals. Sometimes firms don’t bother to respond if the invitation to bid has been extended to dozens and dozens of companies. RFP responses take days or weeks to put together, so contractors must feel it’s worth their time to compose a thorough response.

2. Your Schedule Is Unrealistic

If your RFP recipients don’t have enough time to prepare a quote that is thoroughly researched and written, they likely won’t bother to submit one at all. If they do turn one in, it’ll probably be shoddily put together and lacking important information. Allow enough time for complete and professional responses and include your timeline for making a decision. Dates you should include are: deadline for submissions, notification of finalists, presentation dates, final decision, contract finalization, and final notification for all bidders.

3. You’re Not Answering Questions

Without an opportunity to clarify what you’re asking for, bidders may be left to guess what you really want. And there’s a real good chance they’ll guess wrong. List a point of contact for questions about the RFP and the bidding process and do your best to respond to those questions in a timely manner. Your reward for doing so will be higher caliber proposals to choose from.

4. You Haven’t Articulated How You’ll Evaluate Quotes

If you don’t outline your evaluation criteria, responses will be hit-or-miss. Tell respondents what you’re looking for and which criteria are the most important to you. You’ll get customized responses that make the evaluation process a lot easier. Let’s say you’re more concerned with deadlines than price, you can provide a list of scored variables and assign a numeric value to each one.

For example:

• Expertise – 55%
• Timeline – 25%
• References – 5%
• Overall Price – 15%

5. Your RFP Is Too Long

Interested contractors will be eager to write an RFP response that includes all the information you requested, but a long, convoluted RFP will make that virtually impossible. Edit proposals for brevity and clarity. If you need help paring it down, try starting over with a template and filling in only the most crucial information. Provide a checklist so that bidders can easily see whether or not they’ve covered each of the required items in your request for proposals.

You can also improve the quality of future responses by following up with bidders and giving an honest critique of their proposals. With that knowledge, they’ll be able to compensate for any weaknesses the next time you solicit bids for a project.

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Starting Your Small Business

1) The idea is more important than the details - Although a great idea is crucial to starting a successful business, don’t be fooled thinking the idea is going to take you the whole way. The details are just as important. In fact a well-executed, decent idea is better than a poorly-executed, excellent idea.

2) Passion will get you there - Although passion is a must when putting your neck out there, starting your own business, it alone will not be enough. You have to be weary of how your emotions play in. Sometimes too much passion for an idea will keep you from being able to iterate and adjust your business model to the advice of investors and even at times customer feedback.

3) You need a business degree - In our world today, we are used to the idea that if you want to work in a certain field, it requires a certain degree or license. And although there are business or entrepreneurship degrees, they are not at all necessary. In business, you don’t need permission to succeed. You just do it and get paid or don’t and, well, fail.

4) You’re too young - Did you know, at age 10, Leanna Archer became the owner and CEO of her own company, Leanna’s Hair Products? She is the youngest person to ring the opening bell for the NASDAQ stock market. There’s no reason your youth should be a hindrance.

5) You’re too old - At the ripe age of 106, Jack Weil ran Rockmount Ranch Wear. He was one of the oldest entrepreneurs in the US. Rockmount is a pretty famous clothing line known for many reasons, one being to clothe the actors in Brokeback Mountain (you know, the Academy Award winning movie).

6) It’s a bad time to start your business because of the economy - Sometimes starting a business in a bad economy can be a blessing. It gives you an opportunity to run your business lean and mean. It will really test your toughness. If you can survive during a bad economy, you can flourish during a good one.

7) Majority of start-ups fail - This statement doesn’t really represent the numbers truthfully. In fact, according to data from the U.S. Small Business Administration, 67 percent of new businesses are successful after four years. That means only 33 percent fail. Just make sure you goal is to insure you are in that 67 percent!

8) Guard your idea or someone might steal it - Although this might appear smart, especially if you have a particularly good idea, keeping it entirely to yourself can prevent it from developing into a brilliant one. You need to talk through your idea with a select number of people, which will only make it, and you, better.

9) Your business plan must be rock solid from the very beginning - Pressuring yourself to think that your business plan must be exact from the very beginning is lethal. You have to be prepared to be adaptable, changing to demand or the industry landscape. Set a principal plan, but encourage yourself that it will change, and know it’s a good thing when it does.

10) A business plan is not necessary - At the same time, don’t think that just an idea is enough. There is a difference between an idea and a business. Transform your idea into an actual business model.  A business plan allows you to look ahead, know what resources you’ll need and what kind of problems you could find yourself getting into. Not even sure where to begin? Find out more here.

11) If you’re not getting funding, you don’t need a business plan - Another misconception is that you need a business plan, but only if you are getting funding. The thought is that a business plan is only to show others. A business plan, however, should be for yourself first and foremost. It gives you perspective and uncovers things you didn’t even know you needed to know (which in turn will help you come up with solutions to potential problems).

12) You don’t have to register your business - There is a misconception that given your business is small, you don’t need to register. However, it has nothing to do with the size of your business. If you want to do business in a state or country you must register with both.

13) Your friends with this person, so they’ll be a great partner - It seems to make sense, if you know and trust someone on a personal level that they would, of course, make a good business partner. However, the odds are not in your favor.  When you begin working with someone, the entire makeup of the relationship changes and it becomes more professional than personal and can create disputes that will ruin the partnership.

14) You have to answer all the questions before you start - It’s called “analysis paralysis” (yes there’s a name). It’s what you do to yourself when you think you have to know EVERYTHING before you start. But you know what? You never will know everything. As a small business owner you will always be learning.

Small Business Legal Issues

15) You can do it yourself - When first starting off, many owners feel that in order to save money they should try doing everything themselves. They form their own corporations, write their contracts, etc. Although this does save costs on legal fees, it certainly doesn’t replace working with a professional.  If you think about it, legal feels actually look cheap if professional advice in the beginning saves you from expensive litigation or other serious legal problems later on. Check out Rocket Lawyer for a cost-efficient alternative.

16) A handshake seals the deal - It’s great to trust the people you are doing business with but, no matter what, paperwork is always better than trust.  Oral agreements can lead to misunderstandings between the two parties (and are near impossible to prove in court). Written agreements are mandatory if you want to sue. As well, by outlining everything on paper, it will make sure there are no misunderstandings between you and the person whom you are conducting business with.

17) Incorporating protects your assets - Some small business owners think that if they are incorporated or have formed an LLC, than their personal assets are protected. While it will protect these things from most creditors, you can still be exposed if you have co-signed on any company obligations, aren’t paying employment taxes to the government, and if you aren’t keeping your business finances separate from your personal.

18) No legal protection for your company name is necessary - Sometimes so much thought goes into creating the perfect name for your company that you don’t stop to think, “Wait, did someone else have this same great idea?” It’s not just that someone might have had that same idea; it’s that they might have already taken the steps to legally protect that name (which means you can’t use it without getting sued). Protect your intellectual property and get a trademark. It will save you legal fees down the road if you find someone using your name.

19) Being a small business makes you invisible to the government - Don’t be fooled, businesses are extremely regulated on all levels here in the US.  Your business is never too small for some of these regulations. Stay on top of them by checking out the SBA’s Business Law and Regulation page.

Funding Your Small Business

20) Lending is readily available for small businesses - If you’ve been reading the news at all lately you know this isn’t true. Thanks to the recession, it’s harder than ever for small businesses to get cash from the big banks. Be aware that financing won’t come easily as you move forward building your small business.

21) Lack of funding is the #1 reason small businesses fail - However, in that same vein, don’t fool yourself into believing that the only way you can be successful is with a ton of funding. A lack of funding usually is a product of more serious business problems, such as the inability to control costs, underpricing, not changing the business model to keep up with competition, over-financing and not saving. Don’t blame a lack of money on failure, look at the reasons why the money isn’t there.

22) Starting a business takes a lot of money - You do not have to raise money to start your business. Period.  What DO you need? A killer idea, the ability to be resourceful and ingenious. Having lots of money in the very beginning will keep you from developing these characteristics. How do you start the business without a ton of money? Keep your day job. Work on your business in the evenings, weekends and during vacation. This will allow you to pay your bills (give you room to breathe) and provide you with the essential resources you need most for the business.

23) Bank are the only place you can get loans - Part of getting ahead of your competition is looking at things they are not doing and doing them. A misconception in financing your small business is that banks are the only places that will give you money, when in fact, in today’s advanced day and age, there are many creative options. For example, look at online lending platforms, crowdfunding, invoice factoring, to just name a few. Don’t be afraid to explore atypical lending sources.

24) All kinds of government grants are available if you want to start a business - Wouldn’t it be nice? Sadly, though, government grants for starting small businesses are rare. Don’t rely on getting funding from the government. Check out all the other lending options available.

25) SBA loans money directly to small businesses - There has been some confusion: the SBA doesn’t actually lend money directly to businesses.  The SBA (which is actually an independent agency of the executive branch of the government) is the guarantor of 3 different loan programs. These programs, aimed to benefit small business owners, are the 504 loan program, the 7(a) loan program and the 7(m) loan program. For the record, the SBA facilitates it’s financing through an entire network of lending institutions.

26) Venture Capitalists loan money to startups - VCs seem like a dime a dozen nowadays but a great business idea alone won’t get you that venture funding. For most VCs to look at you, your company needs to have a good track record, been doing business for at least 3 years, and look to have a promising future. They are interested in seeing detailed strategies, strong growth potential, and companies that have either a large regional or national client base.

27) You can’t ask your family and friends for money - When looking for innovative financing options, small businesses sometimes don’t realize how close their options are to home. Believe it or not, it is ok to ask your family or friends for money. They know you and how dependable you are (which is like “credit”). Depending on the individual and their access to cash, you might be able to borrow money with no interest. In other cases, you can do so at a very low rate, which would be smaller than anything you could get from a bank but also gives your friend or family member a chance to turn a small profit.

28) Your assets aren’t large enough to lease or factor - What some small business owners don’t realize is that they can actually use what they already have to get some cash when they need it. You can lease your equipment or factor your invoices, no matter the quantity. Look within to see if you have anything you can use to get some cash.

29) Debt is the devil - It in ingrained in our brains that debt is B-A-D. And although debt should be something that should be kept in control, it is something that can really facilitate your business. It gives you the ability to attain certain things you need to bump your business to the next level. As well, debt gives you a chance to establish credit and having credit will allow you tooperate on net terms with vendors, which will give you more control over your cash flow.

30) You can use your personal credit score - One of the biggest mistakes small business owners can make is thinking they can apply for business loans with their personal credit score. DON’T bring your personal credit into this. If you do so, creditors can go after your personal assets. Keep the business and personal separate.

31) You don’t need a business credit score - Some business owners think they can run a business without a business line of credit. They think they will never need to borrow and don’t realize the other benefits it can have. Don’t let yourself miss out on the opportunity to operate on net terms or not be able to take a loan when you need one most because you didn’t make building business credit a priority.

Marketing Your Small Business

32) Competitors are always unfriendly - This is one of the biggest misconceptions in business. Although competition is always competition, sometimes they can be your greatest resource. They can be a mirror for your business and give you a better look into what is happening with your market. Turn to them for advice and create relationships with them. This is where partnerships can be born. No matter what, befriending your competitors is solely fully of advantages.

33) You have to offer the lowest prices to beat competitors - Although good business practice is to maintain competitive pricing, never think that is the answer to beating out your competitors. Consumers aren’t looking for the cheapest product; they are looking for the best. Don’t sacrifice quality to make more sales. It will only hurt you in the end.

34) Build it and they will come - You might have an excellent idea,  then produce it and expect, as it is SO great, that people will just be lining up to purchase it. But, customers have to know the product exists and know what it is about to even get in the line. Build the best distribution and marketing for the product if you want to attract customers to that line.

35) Sales are more important than the numbers - Don’t let sales be your only factor of success. It doesn’t make any sense! Why grow the sales of your company if you just keep losing money over a period of time. Your number one focus should be on cash flow, not sales. If there is less money at the beginning of the month than at the end than THAT’S what is important and should be your focus to fix.

36) Under promise and over deliver - There is a crazy idea in the business world that if you set customers’ expectations low, you will exceed them (and in the end, make them more satisfied). But, be cautious, if you set expectations too low, you will never have the opportunity to even attract the customer!

37) You don’t need a marketing plan or materials, your product/service sells itself - No matter if your product is the next iPhone, or your website the next Facebook, if you don’t have a marketing plan, you will fail. Marketing is an investment in your business. If done well, it pays for itself.  However, no one will know about your product if you are not out there telling them about it.

38) Paying for marketing can’t help you - There’s a misconception out there that if you actually have to pay to market your business, there really is no help for what you’re selling. This is absolutely not true. Every industry has different distribution channels and for some products and services paid marketing is necessary. Don’t be weary of spending money on this necessary business builder.

39) Great marketing can sell a bad idea - Some people have the ability to be able to sell almost anything but they can never actually hide a bad idea. With time, a product’s true integrity will shine through.

40) Monetize everything - One sure-fire thing to hold you back from success is never doing anything without an immediate financial payback. Stop and think about this. If everything you do only says “I just want your money” then you’ll never build trust (which is what you need to survive in this economy). Building a customer-centric company is what it takes to survive in today’s transparent marketplace. Although this nurturing doesn’t have immediate monetary payback, with time it will be the best investment you could have made.

41) No such thing as bad press - Although publicity is good, in the world of small business you don’t have as many barriers to guard you in the midst of a crisis. Usually, if negative reviews get out there, your number of customers will drop. Bad press is lethal for small businesses. However, have no fear. If you find yourself in this situation, there is a solution: iterate. Take the negative feedback and utilize it to make your product and company better.

42) Be active on all social networks - Social media is an amazing thing for small business, be sure to take advantage. But, proceed with caution, as it can also be a royal waste of time. Only focus on tools where your customers are having conversations. Don’t bother trying to establish presence on a site where your target market does not go.

43) Social media has instant ROI - Social media can take a long time to develop. It takes time for your sites to establish an identity and bring in followers, and then with time, it will transform to what the community wants. Be patient with your social media, it will help you reap the full rewards.

Your Small Business Customers

44) Silence your unhappy customers - Believe it or not there are some businesses out there that think if their customer is unhappy, or if there is a problem, that it is better to push it under the rug than to address it and try to make the customer happy.  Never leave a customer unheard or unsatisfied. If they are unhappy, do something that WILL make them happy. It’s a guaranteed way to boost your business.

45) Your customer is always right - This is a business statement that needs never be taken to heart. If your customer was always right, your company would never be profitable. It’s not about the customer being right, it’s about how you handle your customers: Do you listen to issues they are having?  Can you empathize? Understand where they are coming from. Use their feedback to shape the path of your business but never let them entirely define it. Customers will all have different things to say. You have to learn how to add these together and use them to benefit YOUR company and YOUR business plan.

46) Your customers only care about low prices - Too many people focus on the actual price of their product, versus the value of the solution their product is creating for their customers. Although pricing is important to your customer, what you deliver is most important. Put your efforts on delivering the best quality and most effective product before the pricing.

47) You don’t need to extend net terms to your customers - A lot of businesses think that extending credit options to customers isn’t a necessary business step. However, net terms immensely help companies manage their cash flow. If your competitors are offering net terms, you are going to be in big trouble. Stay competitive by offering your customers the same flexibility.

48) Extending credit is too risky - Small business owners are also afraid of extending customers credit as they fear it is too risky. Providing a service or product before it is paid does cause for some stress. However, if you extend credit like a pro, you won’t need to worry about the risk.

49) All your customers deserve credit - At the same time, don’t get too at ease with the process. Part of being a smart creditor is understanding that not ALL customers deserve credit. Only extend options to those customers who can prove they are credit-worthy.

50) Your credit policy doesn’t need to be written - For some reason, there are small businesses that think credit is something that can be done casually. You deliver a product, and your customer (who happens to be your good friend) says they don’t have the money and will pay you back soon…and they never do. Don’t EVER hand out net terms without it being in writing. To properly manage late paying customers, you must be prepared to take action when they are not paying, and this can’t be done without the proper documentation.

51) It’ll ruin your relationship with the customer if you make them pay - Once small business owners have extended credit, and they find themselves in a situation where a customer hasn’t paid, they can be hesitant to pursue this delinquency. Whatever you do, don’t waver. It is your money and you DESERVE to be paid. You are not pushing your customer to do something wrong or outside of the scope. Approach the issue professionally and personally and you will keep your relationship intact.

Small Business Technology

52) You don’t need a website - It’s amazing to think that even though the internet has become the epicenter of our economy (and truthfully our world), some small businesses still haven’t embraced it. If they don’t jump on the wagon soon, they’ll be off the map entirely. A small business website is what defines you to customers you don’t even know you have. Don’t be afraid to seize the opportunity.

53) Websites costs thousands - This idea pretty much puts you in the Stone Age. Technology is so advanced that websites have become extremely affordable. Owning a domain is super cheap and there are many tools out there to help you create your own if you really want to cut costs. Don’t let money be the reason you miss out on one of the biggest necessities for your business to survive.

54) You can save money and have a friend design it - It’s always nice to keep those friends and family around who can help you with your website, your network, etc. (you know, those technology-minded people). But, if you want technology that’s aimed directly at specific goals like increasing revenue or attracting new customers, you need a technology advisor who’s not only a computer genius, but who also understands your business objectives.

55) Google is stupid - Some small business owners think that search engines and trying to rank well on them is a complete waste of time. This mentality can literally KILL your business (or at least keep you from reaching your full potential). Everybody googles everything nowadays. Can you imagine if, say you’re a dry cleaners in Lansing, Michigan, if every time someone googled “Dry Cleaners in Lansing, Michigan”, you’d be the first to pop up? This would increase your business dramatically. Don’t let yourself miss out on this opportunity.

56) Technology will put my customers at risk - It makes total sense that you are worried about what it means for security when you decide to embrace technology. You ask, “Can someone get my customer’s information?”  This fear shouldn’t keep your company off the web. Just as you think technology might open up a risk, there is, thankfully, many solutions that exist to address this problem (firewalls on your business computers or virus protection software, for example).

57) You don’t have time to implement technology - What’s ironic about this statement is that technology is actually geared to help you SAVE time. Yes, different programs require some installation time, but it usually involves a few clicks of a button and it’s done. And if you need to do a heavy technology overhaul, putting forth the effort now will save you an immense amount of time in the future. There are even services out there that can help you during the actual set-up, so you don’t find yourself spending too much time doing so.

58) You can’t afford emerging technologies - Believe it or not, many technology solutions are actually free or extremely low cost. You’d be shocked what you can get for your business at unbelievable prices, not to mention, sometimes implementing certain technologies helps you save more in the long run. Don’t stray away from technology because of cost; instead embrace their cost-cutting (and efficiency-building) capabilities.

Small Business Finances

59) Lack of money is your biggest problem - It’s almost sad to think how many business owners judge their business’ success only off how much cash they have in the bank. Your biggest problem is not THAT you have a lack of money, it is WHY. Are sales lagging? If so, why? Are you customers not satisfied? Is your marketing plan failing? If your sales are just fine, are you failing to manage your money? Are you not properly evaluating your overhead? Are you monitoring your cash flow? You see, when you identify a problem, always ask yourself why it exists. Then, go about solving THAT.

60) You have to spend money to make money - Be cautious of this thought.  If you think throwing money at a problem is going to fix it, it won’t. Spending money for your business involves spending it very carefully and really, truly evaluating each investment’s results. Too much money can keep you from being resourceful. Never use it as a crutch.

61) Your gross margins will grow as you get bigger - A lot of times as your company grows there are initial costs you are not quite prepared for (such as leasing equipment, for example). Your sales might increase, but your gross margins would decline as your having to spend more to support these services.

62) Lowering overhead costs is the only way to increase profits - Lowering overhead costs is certainly not the only way to increase profits, and it doesn’t have nearly the long-term performance ability as other options. Other examples? Raise prices. Look at ways to increase sales. Iterate your product to reach a larger market. Look at lowering overhead costs as a way to supplement an immediate need for cash, but never as a long-term solution to be more profitable.

63) Financial numbers can be outsourced - Don’t let your numbers leave the door. Your financial statements are your company’s score card.  You have to know where you’ve been to know where you are going. Make sure you, yourself, reviews and understands your profits and losses, balance sheets and cash flow statementsevery month.

64) You can write off all your expenses - This is a huge stereotype associated with small business owners. The truth is that business expenses have a lot of rules tied to them, thanks a lot to the fact that people do try to write everything off.  In fact, some things that are business expenses can’t even be claimed entirely (or only if particular circumstances apply).  How do you know if you can write something off? Ask yourself the question: “Would I have paid for this without my business?” If the answer is yes, it is not tax-exempt.

65) You get all kinds of tax breaks for home-based business - People try to take even more breaks if their small business is actually a home-based business. As a home-based business, you are able to claim some expenses that non-home-based business can’t (such as cost of cleaning the home or the heating). However, you can only claim a portion of these expenses based on the actual business use.  There is a business-use-of-home expense that may be claimed, but only by home-based businesses that qualify.

66) Avoid paying taxes by using contractors and freelancers only - This is a strategy that can clearly offer some pretty legit tax savings. However, this can get tricky. The employee has to be working a 1099 basis, but they can’t be showing up for work at a specific time at a specific location every day. Not to mention, are taxes more important than a corporate culture? Don’t miss out on the opportunity to create an awesome work environment for yourself by solely working with contractors.

67) It’s ok to pay your vendors late - Sometimes small business owners think it’s ok to be late on a payment. They don’t want to give up all their cash, they forget to make note of payment, etc. but you need to get it in your mind that it is DETRIMENTAL to not pay on time. When you pay your vendors late not only can it damage your relationship with them but it will also deeply hurt your credit. With bad credit, you’ll never be able to get the financing you want for your business, which can shut all kinds of doors.

68) You don’t need a separate business credit card - Some owners still operate their business on their personal card. Crazy? We know. You cannot do business on your personal card, no matter how many air miles it earns you! You need to keep your personal and your business finances separate, not to mention, you should be building your business credit.  There are business credit cards that have excellent benefits, don’t deny yourself these either!

69) You don’t need a separate business bank account - In the same vein, small business owners are still operating out of their personal bank account. Not only can this put your personal assets on the line if your business is ever in financial trouble, but it keeps you from properly managing your finances and from building a strong credit profile so you can be more of a powerhouse when financing. Don’t limit yourself by being too lazy to separate the business from the personal.

Managing Your Small Business

70) Teamwork is about building consensus - Without a doubt, a great team really can lead to a successful company. But, don’t be confused. Collaboration is not the same thing as consensus (as said so well by Steve Jobs). As the leader, you must set the direction and your team needs to find a way to work together (effectively) and accomplish this objective. They don’t always have to agree. In fact, it’s their difference in opinions and the fusing of these ideas, that make for brilliance.

71) You really know your market - Although research can be valuable, it isn’t always all-inclusive. Follow the data you have found, but don’t be afraid to get creative and pursue other avenues. You’ll be shocked which parts of the market (that you hadn’t originally anticipated) will show interest.

72) One size fits all - As you introduce your business to customers, you are going to see that they are all going to want different things. You are going to have to learn to take in this feedback and what should be applied (and what shouldn’t). One size doesn’t fit all, but your goal is to create a product or service that will, in a way, operate to fit most. You have to approach dealing with customer feedback as about finding one right answer for multiple, unique people.

73) As CEO you know it all - Although this is your company and it’s small enough where you think you’d be kept entirely in the know, you aren’t. When you have employees that are customer-facing, vendor-facing, etc., they are going to acquire information that they might not always remember to pass on. Be sure to establish weekly meetings where this information can be shared, so as CEO you can keep tabs on all the information you want to know.

74) Working capital is not important - Business owners can be so wrapped up into making sales, keeping customers happy and managing their employees that they sometimes forget to focus on what fuels them.  In business, CASH IS KING. You can’t accomplish any of the above things if you don’t have access to capital you can work with. Make sure you are always on top of your working capital.

75) Intern and temps are not right for small businesses - Many small businesses think, given that they are small, that they aren’t the ideal structure to bring in interns and temps.  In reality, though, small businesses are the best for this! Not only can you save a lot of money by bringing in temps and interns, but you can foster these people more. Interns will get more of an education at a small business than a large because everything will naturally be more accessible and transparent. Don’t miss out on this excellent way to cost-effectively bring in more human capital.

76) Going green will cost too much - There is no need reminding you that going green is what our environment needs, but what’s interesting is that going green can actually cut major costs for your business. Having a smaller energy bill, less paper, less office supplies, etc. will only help you have major savings overtime. Yes, there will be a few up-front costs, but the money you will save over time (and how much you’ll be decreasing your carbon footprint) is more than worth it.

77) Environmental issues are for big businesses to solve - At the same time, you might be wrongly informed that your company is too small to make any real impact on the environment. This sort of thinking is actually what’s hurting us! It’s not just the big businesses who need to clean up their act. Small businesses setting an example will make a huge difference, and of course, as we mentioned, cut you major costs and speak to those customers who truly connect with the cause.

78) It’s ok to over order inventory - As a business owner, you like to be ahead of the game and be as cautious as possible. Therefore, some owners think its ok to over order inventory, you know, just in case sales shoot up for the month, etc. This is a practice you should stop. Over ordering inventory can be dangerous for your business. It ties up liquid cash, which you could be using to spend on paying back bills, loans or things that really affect your business financially. Also, if the inventory goes unused, it can become a loss. Thankfully, you can make projections based on previous months and years’ sales. Really put these numbers to work for you.  Successful owners know how to accurately forecast.

79) Small businesses don’t need to manage their documents - Too small to manage your documents? FALSE. You naturally have more resource constraints as a small business owner therefore you are not going to have a lot of people on hand to deal with paperwork. Your employees have enough of their plate; don’t make them handle tasks they weren’t hired to do. Get a good document management system to keep your important details in line and your employee’s using their time in the most productive manner.

80) Good fences make good neighbors - Keeping yourself closed off from competitors and advice simply isn’t good practice. Transparency is a beautiful thing for a company. It allows customers to trust you and your product to be accessible. Be open to feedback and be open with your thoughts. The response you will get could be the difference between your business being good and your business being great.

81) Bigger is better - Major growth might seem like one of the ultimate successes as a business owner, but always know what you’re getting into before you try to expand. There are advantages to being small: intimate customer service, quick responsiveness, etc. These things might really set you apart from your competition. Growth definitely makes it hard to be a flexible company, even harder to remain customer focused.  Growth is good but do it at a steady pace that allows you to maintain the values that are most important to your company.

82) Stick with a winning program - This makes sense, if something seems to be working, why change it? But, you know the marketplace changes daily, therefore your business has to learn how to react to the changes. Always be anticipating new developments. Make your winning program be one that knows how to take advantage of these changes.

Small Business Ideals

83) Success is making money - Money is every business’ favorite way to keep score. However if you make that your goal, your motivator, it’s never going to take you anywhere. Focus on building value, making sure you have awesome cash flow, and the financial rewards will follow.

84) Profits and principles don’t mix - Stereotype says that money turns good people into, well, bad people. Overcome this thought.  Don’t be afraid of success because of this. You can use your success for good, remember that. Make lots of money and use it for good. But never prevent yourself from reaching your full potential because you are afraid of what the success will do to you.

85) You can live the lifestyle of your dreams - Well, now this is all dependent on what your dream lifestyle is. But don’t be fooled thinking small business ownership is about big bucks and lots of free time. It’s hard work, and your income fuels your business. Most small business owners don’t get in the biz to get rich, but don’t ever think business ownership is about luxury. It’s about getting your hands dirty, and putting your whole self into what you do.

86) You’ll have more time to do what you want - This makes us almost laugh out loud. A lot of people think being their own boss means more free time. Try the complete opposite! Time will be the one thing you lack! The issue is you can’t leave work at work because you are the work. You have more responsibility, wear more hats, and naturally will be more in demand because of this. Being an entrepreneur isn’t a job, it’s a lifestyle. Your work will always be with you. But, your passion and belief in your business will drive you through it.

87) You can spend more time with your family - In the same vein, a lot of business owners quit their corporate jobs in hopes of being more available to their families. This should come with a precaution: yes you will be able to duck away for your son’s afternoon football game, but you then, in return, will end up working late in the night to make up for that time. Your schedule might be more flexible, but as we said, the amount of hours you will need to accomplish what you need will only grow.

88) You can pay yourself whatever you want - Wait a sec… if you take a large amount of the money coming in, what will be used to pay your expenses?  Not to mention, there’s a bit in the IRS code about “unreasonable compensation” (don’t want to get yourself in that sticky situation). You should be prepared not to take money out of your business for a year or two. Remember, it’s about cash flow, and you need to learn to gauge how much you’ll be spending for operations before you can start paying yourself.

89) You’ll be profitable after half a year because you’re a pro at what you do - Sadly, it’s fact that even if you are the ultimate expert at what you do, most new businesses don’t even see a profit for almost 2 to 3 years! There is more patience involved than you’d expect. Also, so many owners focus on their idea and not an actual sales plan. It takes a few years to figure this all out, no matter how good you are at what you do.

90) Overnight success is possible - You have to fail to succeed. That could pretty much be the small business mantra. You must come to realize that setbacks are a positive thing, as they help better define your business and lead you to the success you so desire. Be ok with taking small steps to get to your goal and prepare yourself for those moments when things don’t always go your way.

91) Do what you love and the money will follow- This is a saying you will hear thrown around a lot in life. Yes, you should do what you love but just because you have a passion for it doesn’t mean that you will automatically start profiting from it. Some things are ok to be left as hobbies. If you think you can make a profit off your hobbies, try keeping your day job and testing the waters first.

92) Entrepreneurs are risk-taking visionaries - The media chooses to focus on the stories that sell, where people risk it all to get what they want. And although there is definitely risk involved in being an entrepreneur, that fact is entrepreneurs are actually very good at avoiding risk (rather than loading it on themselves).

93) You can set your own schedule - Now, in the same school of thought with “I’ll have more time with family and to do what I want”, there is also the misconception that you will be in complete control of you schedule. Which, in a way you will, but as the face of the company, being the person who will deal most with clients, vendors, etc., you are going to be forming your schedule around others more than ever. Be prepared to be able to flexible and to put your priorities to the side in order to meet others’ needs.

94) There’s glory in it - The truth, despite being an incredibly rewarding experience, being a small business owner can be a pretty thankless job. There is no one above you to tell you how well you are doing, to reward you for all those little things you go above and beyond with.  You really have to know how to motivate yourself and how to praise yourself. Keep keeping on, as it’s your customers who will reward you with the compliment of bringing you loyal business.

95) The best offense is a good defense - This thought is about as opposite you can get from entrepreneurial thinking. Focus on your strengths. Move and manage your business by focusing on achieving, performing, excelling and breaking barriers. Don’t make it about reacting to your competition or trying to formulate your plan based on defending your ideals.

96) You have to be born an entrepreneur - For whatever reason there is a school of thought that a true entrepreneur must be born that way. This is not true. I mean, come on, what does that even mean? Entrepreneurs are people who have a good idea, are passionate about it and work hard to achieve it. Creativity and a stellar work ethic is what they need, but these are traits people can also develop if they truly want something bad enough.

97) It’s about luck - When people see mega brands like Facebook or Apple, it’s easy to think that those business owners had a bit of luck along the way. But the truth is, those owners, and other successful owners, got where they were thanks to an incredible amount of labor and ingenuity. They did things others weren’t willing to do and broke barriers. It might be safe to say that luck is the last thing that will make you successful. Hard work and imagination is the secret to success.

98) You can get rich quick - To explore further, as you know you won’t profit early on, or most likely even break-even, don’t think that when you DO start profiting that you will get rich quick. When you start being profitable, you’ll have to loan back the money to those people who helped you get where you are. It’s still a marathon. Your wealth grows with time. Stress building a business that will remain profitable over a long period of time, with much sacrifice in the beginning. Being a business owner doesn’t guarantee you will be rich. So much depends on industry and market, it’s best to try to keep yourself from getting caught in this illusion.

99) It gets easier - If only this were true. Some small business owners think only the beginning is going to be hard, full of sacrifice and long hours. The truth is that is never gets easier. With each stage of your business there are different challenges, whether it is reacting to growth, a bad economy, etc. You will always work as hard as when you began. No fear, though, as your business is very much a part of who you are, and this part of throwing yourself into something may not be easier in the future, but it will be more natural.

100) The future is out of your control - With the talk of being prepared for  new challenges that will arise, such as growth or a bad economy, business owners fear that the future is out of their control, that whatever happens…happens. But by building a business with a strong foundation, having the ability to read the market and your customers and to know how to iterate, you can prepare yourself for whatever the future holds. The joy of being a small business owner is that you really do have so much control over outcomes. Never lose sight of that power.

101) Play it safe - There is a lot of responsibility and risk that goes into managing your own business. Some say, play it safe, never put too much on the line. But what will you accomplish? Show no fear in trying something new.  As said, you must fail to succeed. Safe shouldn’t be a word in your vocabulary. You are bringing something into this world that hasn’t been before. Take ownership and lastly, enjoy doing so.

101 is just the beginning. As a small business owner, what myths have you come across? 

This article was originally published on Funding Gates. Funding Gates is the world’s first CRM platform for receivables management. Serving as an online credit department for small businesses, Funding Gates is set on making managing receivables the easiest part of running a business.

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1. Implement Call Tracking

For those who may be unfamiliar with call tracking, let me quickly define it. Call tracking is a software as a service (SAAS) that generates a unique phone number for marketing campaigns in order to ascertain which marketing medium the lead or sale originated from. Online, this is accomplished by placing a small piece of Javascript code on your website that dynamically changes your normal phone number to a trackable number tied to a specific medium.

This can be very effective as you spread your dollars across different channels such as email, paid search, SEO, video and others to drive customers to your website. Rather than allocate dollars across various mediums and blindly hope for leads and sales, implementing call tracking will let you quantitatively evaluate spend allocation decisions. With more accurate conversion data small business owners can then evaluate spend decisions armed with some kind of cost per lead metric that allows them to put money where it most effectively grows the business.

An added benefit of using call tracking is the ability to more properly evaluate third-party vendors such as an SEO agency. Long term marketing initiatives, such as an SEO campaign, can more properly be evaluated throughout the campaign by measuring the ongoing effectiveness of lead generation that otherwise may be lost without call tracking.

Call tracking is generally cost affordable for even small businesses. Usually there is some kind of per number fee in addition to a per minute charge which usually is less than ten cents per minute. This cost is generally nominal, assuming you’re marketing effectively. Implementation is also usually very straightforward. This includes signing up for an account, setting up the specific numbers you want to track and implementing the code on your website. The latter being super easy in some cases where WordPress is used and a simple plug-in and verification code can be used to get the ball rolling.  In the past I’ve had good experiences with the call tracking services provided by Call Rail and Century Interactive.

2. Fully Leverage Analytics

While most small business owners today (hopefully!) have some kind of Analytics installed on their small business website, I found many times that they aren’t leveraging it to the extent that they could be. (I’ve always been of the opinion that unless you run a Fortune 100-type company Google Analytics is sufficient for your needs. Thus, the tips below all use verbiage from Google Analytics.)

For any kind of business that involves shopping capability then ecommerce tracking is a must. Ecommerce tracking implementation can be a bit more involved (hire a developer and point them here if needed), but will give you a plethora of data for your different traffic sources including revenue, transactions, average value, conversion rates and per visit value. The cost of having it properly implemented will easily return itself through smarter online marketing decisions.

Like ecommerce tracking most owners probably have some kind of URL goal set up. Examples may include a contact us page, directions page or a submission form thank you page. Setting up proper goals is the first step in establishing a more accurate assessment of your marketing ROI. Each website will be different so make sure you are tracking the customer action that ultimately grows your specific business.

While I assume most small business owners are already using the two previous methods, there are several other ways to accurately measure the effectives of your spend. While the length of this article doesn’t let me go into details, features such as event tracking, multi channel attribution and Google’s URL builder can all be leveraged by small business owners beyond basic URL goals. With a little bit of reading and application owners can implement and subsequently analyze metrics that will help give a more complete picture of allocated marketing dollars.

3. Offline Integration

While the online tracking capabilities are almost endless in their possibilities, offline advertising can pose a serious challenge to tracking a return on money spent. Regardless of how many impressions the print salesman tells you his weekly flyer gets, unless you’re a savvy marketer you have no idea whether that money is well spent. Using the above tips, call tracking and better usage of Analytics, offline spend can become a valuable part of the marketing mix for a small business.

Using call tracking as an example, a small business owner can easily use their platform of choice to set up a specific phone number for an offline print campaign. By ensuring that this phone number is only used as part of that specific campaign any subsequent phone calls received via that phone number can be tied directly to that spend. With some basic number crunching around cost per lead, conversion rates and average order value owners can determine whether that specific effort is worth continuing in the future.

In similar fashion, owners can leverage offline media by driving potential customers to landing pages built exclusively for that initiative. For example, a print campaign that directs users to a custom landing page such as www.mydomain.com/print-campaign will show in Analytics how many people actually visit the website and then take certain actions most valuable to the business. Leveraging features such as event tracking and multi channel attribution can help determine if these customers convert long term even if they don’t do so initially. In both examples marketing efforts should ensure that the phone number and landing page (make sure the only way to find the landing page is via the offline material) is exclusive to that campaign. Otherwise, data will be skewed and can potentially lead to wasted marketing spend in the future.

While call tracking, proper usage of analytics and offline integration may seem overwhelming and beyond the capabilities of a small business owner unfamiliar with these methods, with a little bit of effort these tactics can be learned and implemented in a short period of time. Upon doing so the cost effective marketing decisions being made will not only reduce stress but ultimately help grow the business in a tangible way.

You're reading: Three Ways to Increase Small Business Marketing Spend ROI, which was originally posted on the Small Business Bonfire. If you enjoyed this post, make sure you follow us on Twitter, Facebook and Google+. You may also want to join our free small business social network!

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1. Read Until You Fully Comprehend

Your first step in proposal writing is reading. Carefully analyze the RFP, highlighting any specific instructions or directions you must follow. If you fail to include even one tiny scrap of information requested by the client, your proposal will likely end up in the trash.

2. Research the Client

If you’re unfamiliar with the company or agency, do a quick background check to get up to speed. Visit their website and read any relevant press releases or recent news articles to familiarize yourself with the organization and how they operate. If the RFP requests that you examine additional documents to help you prepare your quote, read them and take notes.

3. Make a Checklist

Make a checklist from the instructions you highlighted during your initial readings of the RFP. Determine whether your business is able to fulfill each of the requirements. If not, line up subcontractors before you begin writing. Don’t risk finding out too late that someone you were counting on is unavailable or unable to fulfill the requirements.

4. Include an Intro

The proposal should lead off with an introduction that explains your reason for contacting the client, so mention the RFP in your greeting or cover letter. Include the client’s reference number or project name.

5. Highlight Your Experience

You should also briefly discuss your company’s experience as it relates to the RFP. You should highlight your team’s skills, education, and project experience focusing on how each of those things will benefit the client if you are awarded the contract. Explain how your company is the best choice for the task at hand. Simply writing a laundry list of services and previous clients isn’t going to impress anyone.

6. Explain Your Plan in Detail

Outline your process, laying out step-by-step on how you will fulfill the requirements of the job. This can be the most difficult step for business owners who write their own proposals, because it’s difficult to strike a balance between striving to keep the section brief out of respect for the client’s time yet detailed enough to illustrate that your plan is thorough.

7. Be Thorough with Pricing

If you’re unable to provide a fixed-price quote for your services or you charge by the hour, include a time estimate and a price list for additional charges the client is likely to incur during the project. Explain what factors may influence the final price so the client has a realistic expectation of the final cost.

8. Review Carefully, Twice

As you review and refine your initial draft, verify that you’ve addressed everything listed in the RFP. Use the checklist you created from the highlighted instructions again, this time to be sure that your proposal meets all the requirements of the RFP.

Finally, proofread the proposal for spelling errors and typos and make sure you’ve created a visually appealing document. First impressions are very important in the world of competitive bidding!

 What proposal writing tips would you add to this list?

You're reading: 8 Steps for Writing a Winning Proposal, which was originally posted on the Small Business Bonfire. If you enjoyed this post, make sure you follow us on Twitter, Facebook and Google+. You may also want to join our free small business social network!

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