submitted by Tamela Peacock - Bryant & Stratton BBA Student

After Starting a business, how do you advertise without being financially able to do so? How do people know about your product or service? What is the cheapest way to advertise?

Well! This was one big problem that I felt would be an issue for me, if I decided to start advertising for my business. So I went online to GOOGLE and researched ways to advertise with little to no money. I came across a list of 10 unusual ways to advertise (Williams, 2010).

1.       Door hangers on doorknobs - this is a good strategy for grocery stores and day care providers.

2.       Flyers under windshield wipers - this would be a good method for working individuals.

3.       Purchase word-of-mouth - hire someone to be a walking ad

4.       Virtual Showroom - build a website to display your service/product

5.       Nighttime silhouettes  -ask a business owner to allow you to post a poster on a side wall big enough to see at night.

6.       T-shirts and vests - print the service/product on it.

7.       Hand stamps

8.       Publicity stunt - make a statement

9.       Self-publish a book - write a book about the service/product

10.   Spray-painted signs - cost less and easy to make signs

Be prepared to open up doors that were closed. Having these guidelines will help you drastically. With these pointers, advertising may not come quickly, but the organization will be advancing - just not as quickly as if you had the money for advertisement. So let’s get as much knowledge out to the consumer as we can. Don’t forget “word of mouth is the best way for advertising”.

Williams, R. (2010). Entrepreneur of 2010. Retrieved 29 May, 2010, from Entrepreneur: http://www.entrepreneur.com/advertising/adcolumnistroyhwilliams/article83812.html

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Submitted by: Maxwell Lawrence - Bryant & Stratton BBA Student

Entrepreneur is defined as someone who organizes a business venture and assumes the risk of it. On another hand, an entrepreneur is also any person who starts a business with the intent on seeing it become successful.  In my own opinion, I believe almost everyone at some point is or has been an entrepreneur in some way. The entrepreneur is the main person or the main force behind his or her company or home-office. Such person usually demonstrates good quality by ensuring that the right teams of managers are chosen to help run the organization. The entrepreneur has a tendency to brainstorm different opportunities and after identifying a niche, he or she will exploit that niche by organizing their resources in an effective manner in order to make accomplishment.

The spirit of the entrepreneur demonstrates a mindset which fits the description of a person who has a personal outlook that can lead to been inventive, or creating ideas and opportunities. (According to Pothitt.C.S. 2010)

The successful implementation of creative ideas within an organization, and believed that creativity was a necessary but not sufficient condition for innovation. Successful entrepreneurs are not only creative but they are able to take their creativity and run with it, creating innovative solutions to the challenges their target market faces. This innovative spirit drives them to ever improve upon their ideas and leads to success in many of their endeavors. (Line 5) 

The above reference explains the journey, the commitment and the independence one needs to take to become an entrepreneur.

While becoming a better business owner in the entrepreneurial world, one will have many critics. Accept them constructively because that’s how you keep developing. Learn from any mistakes you made and from other peoples’ mistakes. Networking is important as that’s how you will be known by your surroundings. Always be open to new or updated information to help keep your business in the marketplace. The more you learn the more you will know. (Patel, 2009) Patel explains that the most important and last thing you should know is that you should never stop learning. No matter how successful you are, there is going to be someone out there who has accomplished more than you. So instead of being arrogant, take every opportunity you get to learn new things. Whether it is from an experienced entrepreneur who has been around the block, or a 16-year-old kid, everyone can teach you something. You just have to learn what to take away from a conversation because there are going to be some things that are going to benefit you and others that won’t.

Patel. C, 2009, How to become a better entrepreneur in 20 minutes, received, May 29, 2010 From, www.quickprout.com/2009/05/25/how-to-be-a-better-entrepreneur-in-the-next-30-minutes

Pothitt.C.S. 2010, entrepreneur Tips, Successful entrepreneurial traits, innovativespirit,Received, May 25, 2010 from, Www.http://entrepreneur.lifetips.com/cat/65052/becoming-an-entrepreneur/index.html

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submitted by: Edward Thoms III - Bryant & Stratton BBA Student

Small Business owners take on a hard task the minute they first open and throughout their entire existence. Some things they may take on may not work in their favor and the task may in fact fail altogether. If this were to happen to them, they shouldn’t give up on the business. One should be fearless and not afraid to take on the challenge set before them. Being a fearless small business owner can get them past those points where the business is at its rough patches and the owner is ready to give up. If they can gain the mindset of being fearless, there’s a better chance that they can keep their business flowing through the rough times.

Sometimes small business owners don’t know how they can become fearless and take risks when times are hard. According to Fisher-Roffer (2009), there are several steps a small business owner needs to do in order to become fearless in the uncertain times.

Step 1 – Go Fishing for the Real You, Step 2 – Use Your Differences as a Lure, Step 3 – Find a Few Fish like You, Step 4 – Swim in their Ocean Your Way, Step 5 – Put Yourself Out on the Line, Step 6 – Evolve by Casting a Wide Net, and Step 7 – Reel in Your Unique Power (Fisher-Roffer, 2009).

In others words, the meaning of each step is as follows:

step 1 – As a small business owner, know what you are better at than others, like the strengths of your business.

Step 2 – When things are happening, don’t do things that other companies are doing to get by, step out of the box and do something risky that may get you ahead of their competition.

Step 3 – Customers that are loyal to your company should be rewarded for that.

Step 4 – You should know the culture background of your customers and their demands as well.

Step 5 – Be different from your competitors, don’t try to fit in, stand out from others.

Step 6 – Keep up with the changes of the industry your business is involved in.

Step 7 – Believe that you can get through the rough times without any doubt.

Success would most likely be granted to them if they could master these steps and become a fearless small business owner. The use of these steps as well as other things that a small business owner could come up with would enable them to get past those rough patches or failure moments when trying something new. Small business owners should just not be afraid to take those risks that are different from competitors and could be bring them out on top.

Fisher-Roffer, R. (2009). How to Become a Fearless Small Business Owner in Uncertain Times. Retrieved May 22nd, 2010, from http://www.businessknowhow.com/growth/fearless.htm.

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Submitted by Nishi Dickens - Bryant & Stratton BBA Student

There are many common ways to market a business online.  Some of the latest trends can help a business capitalize on the internet market.  Social marketing is one of the biggest trends today.  Facebook is one of the most commonly used social medias for marketing.  They have approximately 130 million user’s world wide. (Camusio 2010 p. 1) Users of facebook log in almost everyday which makes them very accessible. 

In order to utilize Facebook for marketing, you must first design a user page for your business.  Next you should request your clients and business associates as friends.  You can always invite people to join Facebook if they are not a current user (Camusio 2010 p. 5).  You can also start a group in order to network with others who are interested in your business and by adding other groups your network will expand (Camusio 2010 p. 7). I started a group in Facebook for chocolate lovers, and one for people who are from the Caribbean and live in the Western New York area.  These groups actually started growing without me adding other groups to them; I can only imagine how they would take off if I did add other groups. 

If you have a blog on your business website, you can import it into Facebook by adding Facebook notes. This keep your customers updated on the latest news with your business.  (Camusio 2010 p. 10)

Social marketing has received a lot of attention, especially through Facebook. I believe social markets will become a more common trend and valid process for businesses to listen, communicate and connect with customers.   Expect change, expect innovation and expect new opportunities for your business.    

Camusio, Z. (2010). Facebook Marketing - 7 Amazing Ways to Promote Your Business on Facebook. Retrieved from http://www.startupnation.com/series/132/9300/facebook-marketing.htm

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Submitted by Derrick Martin - Bryant & Stratton College BBA Student

With the first steps of the business out of the way, the next step would be to pick a structure that works for the best interest of the business, business owner, and customers. This will require a skill that can be acquired through training and possible internship. The skill is management. This term has different meanings to different people and it varies depending on the situation. Some people manage very well while others could use some improvements and coaching. But the definition of a business manager according to The Business Dictionary is: “All management activity carried out in the course of running a firm, such as controlling, leading, monitoring, organizing, and planning.”

This is a huge responsibility to take on especially for a young entrepreneur trying to start off in the business world. The first step is to set a business structure that works to take charge and ensure that you have a support team of workers that you feel can bring something to the table. The business is only as good as the people that run it. If the business is under poor management, it will have a trickledown effect to the employees and then the customers. To avoid this, good leadership skills such as communication, the most important skill, should be used on a regular basis. If everyone is on the same page, it makes it that much easier to get tasks and objectives done on time and efficiently. Lack of communication can lead to mistakes that can cost the business profit and customer base if there are misunderstandings among managers to employees, and even to customers. Once the company has a bad image or reputation, it becomes harder and harder to gain back customer interest and satisfaction.

Being a good leader involves one taking the initiative to take time to train towards better business owner/ manager skills along with employees so that the business practices good workplace skills such as safety regulations, HR regulations, and employee and customer standards.  Some companies do this well while others fail to keep some of the basic structures in place. Poor management skills and business practices affect a business’s reputation and security as the business can be held accountable and in jeopardy. Take the Adelphia scandal that took place in 2004. According to the Associated Press, MSNBC news states:

Adelphia Communications Corp. founder John Rigas and his son Timothy were convicted Thursday of conspiracy, bank fraud and securities fraud for looting the cable company and duping its investors.

With structured management in place, you will ensure that the necessary resources, skills and requirements will be attained that are necessary for the business to carry on operating in an appropriate manner. This is essential due to every business having a foundation upon which they were built. If the foundation is weak, then the business can ultimately fail; while if the business has a strong, solid structure, then the business will thrive and possibly stand the test of time.  Through adversity and everything else that comes with owning your own business, it starts with the owner/ manager of the business to take the initiative to make sure that everything possible is done to help the company better itself as a whole.

Associated Press (July 8, 2004) Adelphia founder John Rigas found guilty. Retrieved May 29, 2010 from http://www.msnbc.msn.com/id/5396406

The BusinessDictionary.com (2010) Business Management. Retrieved May 29, 2010 from  http://www.businessdictionary.com/definition/business-management.html

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Written by: Nishi Dickens - Bryant & Stratton BBA Student

It’s 2010. Should women business owners face the challenges that they do today? Women face many struggles such as balancing a business, managing time and keeping their family structured. The zeal of owning a business and being your own boss is very appealing to women who have families and want to free up time to spend with them. Some of the biggest challenges faced by women business owners are stereotyping, financing, gender, retaining qualified male employees, lack of education and training (Smith-Hunter, 2006, para. 18).

When comparing male owned small businesses with female owned small businesses, women may have different motives for going into business for themselves, motives that may include a flexible schedule, less workplace unfairness and discrepancy, and being close to home while their children are young.

I spoke to a woman business owner in Buffalo, New York who recently had to let go of two male employees because they were having a hard time working with her. “Finding quality male workers who are willing to work for me, a woman, without undermining me has been a major challenge for my business” (K. Falzone, personal communication, July 18 2010.) It’s an issue people don’t think about because it’s easy to forget that there’s a face and a story behind businesses, especially small businesses.

Not only do woman business owners face cash flow issues in the start up of their businesses, but they also face issues such as lack of appropriate training. More women are getting an education. Between 1997–98 and 2007–08, the percentage of degrees earned by females fluctuated between 60 and 62 percent for associate’s degrees and between 56 and 58 percent for bachelor’s degrees, while the percentage of master’s degrees earned by females increased from 57 to 61 percent (U.S. Depart. Of Education, 2010, para. 2).

Fewer women are likely to open small businesses now, but anyone is reluctant to open a new business with the economy today.

Smith-Hunter, A. (2006). An Initial Look at the Characteristics of Hispanic Women Business Owners and Their Businesses. Business Renaissance Quarterly, 1(2), 101-140. Retrieved from Business Source Complete database.
U.S. Department of Education, National Center for Education Statistics. (2010). Condition of Education 2010, Indicator 23 (NCES 2010-028).

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Written by: Edward Thomas - Bryant & Stratton BBA student

One of the first steps one must take in order to become a small business owner is to get an Employer ID Number (EIN)/ Tax ID Number (TIN). EIN/TIN is like the “Social Security Number” for one’s business. They are also used for the federal government to examine the status of businesses operating within the United States. One can’t start a business without having one of these as they are used to identify a business entity. For those who want to start a small business, but don’t know what the steps are in order to obtain their EIN/TIN, it’s very easy to obtain and it’s also free as well.

According to Mark Ingebretsen (2010), one must obtain an EIN if any the following apply to your business:

1. You have employees.
2. Your company is organized as a corporation or partnership.
3. Your company offers a Keogh retirement plan.
4. You file one or more of the following tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms.
5. You withhold taxes from a non-resident on income other than wages.
6. You are involved with certain forms of trusts, non-profits or farmers cooperatives, as defined by the IRS.

After one figures out if they need to obtain an EIN/TIN, these are the steps in which they would take in obtaining it:

1. Visit the IRS website. The IRS website has become a user-friendly way for you to apply for a business EIN without having to pick up the phone and call. With a few easy clicks, you will have applied for the EIN. Type or cut and paste this URL into your internet browser: https://sa2.www4.irs.gov/modiein/individual/index.jsp. 
2. Complete the online application. Hit the “Begin Application” button toward the bottom of the page. You will then need to complete each question on the application before hitting the “Continue” button at the bottom of each page.
3. Submit the application. Once you have completed all of the questions, you will be able to submit your online application.
4. Apply by phone. If you have any problems completing the online application or you prefer to apply by telephone, call (800) 829-4933. An IRS employee will take your information by phone, assign an EIN Number and provide it to you before the call is over. (Lorette, 2010).

If you have any more questions about Employer ID Numbers, for example, if you would need a new one, how to cancel one that you have, how long it would take to obtain one, and etc., please check out http://www.irs.gov/businesses/small/article/0,,id=98350,00.html. This is important for future small business owners.

References

Ingebretsen, M. (2010). Guide to Getting an Employer Identification Number (EIN). Retrieved July 31, 2010, from http://www.work.com/getting-an-employer-identification-number-ein-783/.

Lorette, K. (2010). How to Get an EIN Number. Retrieved July 31, 2010, from http://www.ehow.com/how_2306360_get-ein-number.html.

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Written by: Maxwell Lawrence - Bryant & Stratton BBA Student

When planning a business venture, one should identify the business opportunity that interests them, making sure it’s the right business. Whatever the business is, the business owner needs to do a market study as this will help to measure the level of existing services that is provided in the area. Next a business plan is the blue print to your business, it identifies who you are, what you do, how will you do it, and your ability to do it [find a business plan template from SCORE's Template Gallery]. Running a business is a challenging task and, though it is associated with great freedom, a business owner has to realize that serving customers and employees is first. A business owner also needs to create the right business name that will help distinguish them from their competitors.

Choosing the structure of your business is important and should take serious consideration. This will have an impact on the business liability, which includes funding ability and tax obligations. Choosing the structure should not be taken lightly, whether you become a LLC, a sole proprietorship or a corporation. Licenses and permits may also be required for your business. Next is finding the location that will eventually be your home for your business. Next is insuring your business, for protecting both assets and investors’ shares in the business, if any.

Promoting your business is most important to finding your customers; this can be both online or off line. Whatever promotion you choose, it helps to affirm your company image and draw interest to people or other organizations. Doing this will give you all the support from the community you do business in, like wise if you support the community. Small business notes, (2009).  Because your community supports your business, it is a good business practice to support your community. Community means more than just a location. Community also can refer to specific groups of people, such as the Hispanic community. The great thing about participating in community events and programs is that it’s a win-win for both you and the community.

Promoting your business is the main stream to bringing profits to your business and will also demonstrate your expertise. Once you’ve got a grasp of how to best express your niche promotion of what you offer, make sure you maintain that message consistently throughout your promotion and marketing efforts. This should be reinforced repeatedly to build on your brand identity and to give people a clear reason to be interested in your business.

References

Small business notes, (2009) promoting your business. Retrieved July29, 2010,

from http://www.smallbusinessnotes.com/operating/marketing/promotion.html

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Written by: Tamela Peacock - Bryant & Stratton BBA Student

The first thing you want to do when starting a business is decide why you want to start a business. Some of the most common reasons for starting a business are (Riley, 1998):
• You want to be your own boss.
• You want financial independence.
• You want creative freedom.
• You want to fully use your skills and knowledge.

Then you need to find out what type of business is “right for you.” Ask yourself these questions (Riley, 1998):

• What do I like to do with my time?
• What technical skills have I learned or developed?
• What do others say I am good at?
• How much time do I have to run a successful business?
• Do I have any hobbies or interests that are marketable?

Then you have to find out in what niche you fit.  Do the necessary research to answer your questions like (Riley, 1998):

• Is my idea practical and will it fill a need?
• What is my competition?
• What is my business advantage over existing firms?
• Can I deliver a better quality service?
• Can I create a demand for your business?

In order to start your own business, you have to first figure out why you want to own your own business. Then you need to know what type of business so that you know what niche to fill. Last but not least, you have to do all the research that will benefit you and the business that you desire to open.

Works Cited (n.d.).
Riley. (1998). Steps in Starting Your Own Business. Retrieved July 15, 2010, from Starting a business: http://www.rileyguide.com/steps.html#start

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Pricing for Maximum Profit - by Kenyon Riches of the Buffalo-Niagara Chapter of SCORE

An often complex business decision is how to price your product so that you can maximize your earnings.  In order to do so, several factors must be considered and understood:

1. value to the user
2. sales volume sensitivity to price
3. competitor offerings
4. manufacturing/service costs
5. promotion costs
6. distribution costs
7. manufacturing capacity/servicing capability
8. Inventory levels, obsolescence  and seasonal considerations
9. alternative opportunities

In addition, since you may serve many market segments, these values and costs may differ within different market segments. It may be beneficial to establish different pricing in different market segments through alternative packaging, different features, selective discounting, product coupling, and different marketing channels.

1. The upper end of the pricing choices would be the Value to the user, which requires an analysis of how the user would use the new product, what alternatives the user has to use of the product, and what advantages and value - to the user - the product has over these alternatives.

2. Although the greatest unit margin may be realized by Value pricing, the maximum total margin can only be realized by understanding how the volume of sales increases with decreased pricing.  This may be determined through test markets or selective discounting.

3. Competitor offerings may place a cap on the prices you are able to achieve, and requires an analysis of competitive products, prices, and market positions.  If your product has advantages that justify premiums over competitive products, you may be able to help underwrite the costs of market introduction with premium pricing.  If this is not possible, you may have to accept lower profits (or losses) in order to launch your product.  An entrenched competitor may be difficult to displace, and you must also consider how competitors will react to your new product. Alternative marketing channels might also be considered.

4. Manufacturing costs or costs of services must be understood in order to determine your margins.

5 & 6 Promotion and Distribution costs must be understood to understand margins within each market segment.

7. Manufacturing capacity/servicing capability must be coordinated with expansion so that a low price doesn’t generate sales that overwhelm your manufacturing/service capability.

8. Inventory levels, product obsolescence and seasonal considerations are short-term pricing considerations.

9.  Alternative opportunities for manufacturing/service capabilities should always be considered, especially when margins fall.

Other factors to consider are possible competitor actions, what barriers must be overcome for competitor entry, and the timeline involved.  Obviously a unique and patented product has a big pricing advantage over a me-too or only slightly improved product.

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