10 Creative Ways To Get Your Business Funded

November 3, 2011

Forget applying to banks to get a loan for your business. Most of them stopped being in the “give a loan to a small company who has no collateral” business in 2007. This does not, however, mean that you are out of options to fund the growth of your company.

In his new book, Get Your Business Funded, author Steve Strauss discusses creative ways to get the money that you need. Here are 10 options to try:

1. Factoring

This method allows you to sell your accounts receivable to a third party (i.e. The Receivables Exchange) for immediate cash. It’s a $150 billion industry and goes back to the ancient time of Babylonia. Remember: Factoring is expensive since it can cost up to 15 percent of the receivable. This may work for a growing company, but is not a method of financing for a company that is shrinking or losing money.

2. Retirement accounts

Borrowing money from your IRA or 401(k) can be tempting. First consider a 60 day interest free loan from it. There are no fees if it is paid back in this time frame. Remember: This is your retirement money, so using it is risky and potentially devastating if you lose your business.

3. Government grants

These programs require research at local, state and federal levels. According to Steve, these agencies include the USDA, the Department of Commerce, and the Treasury Department. They come with names like SBIR, STTR and SBIC. Remember: Typically they are very specific and technical in nature and come with reporting strings attached.

4. Peer to peer lending (P2P)

It is now possible to go online and get funding from people you do not know at sites such as Prosper.com and Lending Club. The amount paid for the loan depends on your credit score, the economy, the length of the loan and “your story.” Remember: P2P loans are not easy to get and the interest rates can be very high.

5. Crowdfunding

A sister method to P2P, you can now get people to invest in “your cause” in exchange for something (other than money). This is a different source of funding since the money is not repaid. The rewards for donors range from receiving your first products to having a product named after them. Popular sites that facilitate crowdfunding include IndieGoGo and Kickstarter. Remember: Crowdfunding is very emotional and its success is based on the appeal of your idea.

6. Microfinancing

While this is relatively new in the United States, these small loans up to $10,000 are gaining popularity. Loans are based on your experience, passion, market opportunity and sales. Organizations include Accion USA, Grameen Bank and Kiva. Remember: It is a good alternative if you have an appealing idea and need a small about of money.

7. Supplier or wholesaler financing

This method works with your supply chain to get the money that you need. It usually works best with a smaller, local supplier who really wants your business and is willing to work with you. Tony Hsieh, CEO at Zappos said this type of financing was critical to the company’s growth. Remember: Don’t personally guarantee this loan.

8. Business plan competitions or other contests

When all else fails, try to win the money! There are a lot of regional and national competitions giving away substantial amounts of money. These include the MIT $100K Entrepreneurship Challenge, The GE Ecomagination Challenge and the Amazon Web Services Start Up Challenge. Remember: This is really show business that loves a great idea and very competent team. You also need to be a good presenter.

9. Business incubators

If your business is new, it can get seed money, mentorship and other similar services to get started. These types of organizations have a great track record of success which include Excelerate Labs and TechStars. Remember: There is a lot of competition to become part of an incubator these days so focus on a handful of organizations which match up best with your goals.

10. Barter

Swap products or services, not money. Before there was currency, there was only barter (trading). The U.S. Department of Commerce estimates that 25 percent of the world’s trade is still done this way. Barter can save money, move unused inventory and find new customers. Bartering can be done directly with another business or through a barter exchange like IMS Barter. Remember: Barter selective goods and services. You still typically can’t pay your employees or rent without cash.

By Barry Moltz

Barry Moltz is a Small Business Speaker, Consultant, and Author

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6 Ways To Grow On The Cheap

April 13, 2011

Apr 13, 2011 -

Homepreneurs by nature are small businesses, often with a single employee/owner or small staff depending on business needs.  Some are content to remain small, avoiding direct conflict with major competitors.  Other Homepreneurs have goals that are somewhat loftier: to grow and become major players in a given market niche.

Growth, larger, and bigger tends to connote money, and many times lots of it, doesn’t it?  Not necessarily, writes Steve Strauss.  Several key decisions including joint ventures, big clientele, and shoestring marketing don’t necessarily cost much, but may provide big returns.  Of course, extra time, effort, and a little risk is required, but running a business – regardless of size – requires time, effort and risk.  Why not incorporate some of Strauss’ suggestions and potentially grow quite a bit for little money.  Your efforts may not succeed of course, but valuable lessons are learned during the process.

But what about the opposite?  Consider that your efforts might succeed and bring your business to a higher level.  Wouldn’t that be a nice bonus to your self-esteem and pocketbook?

———————————————-

By Steve Strauss

If there is anything that small business people want more than growth, it’s growth without spending much money—although, while we are at it, a little more time in the day wouldn’t be so bad either, right?

Large companies want this too, of course, but it’s less of a concern; big budgets and all.

The good news is that you need not spend a fortune to grow your business. There are plenty of ways to do it. The trick is to take the time, try a few of these out, see what works, and then double down on those.

Here are six ways to grow on the cheap to get you started:

1. Use shoestring marketing

I do a lot of public speaking, and “Shoestring Marketing” is by far my most popular topic. In this talk, I share about 20 different ways to inexpensively market your business. Here are a few:

  • Overnight radio: Especially if yours is a B to B business, radio should be part of your marketing mix. But it sure can be expensive—upwards of $500 a minute during drive time. The solution is overnight radio. That same ad might cost $25 at night, and the reach on a major station is not dissimilar to what you would get on a regular station during the day.
  • Co-op ads: My dad used to have a billboard on the San Diego Freeway in Los Angeles that read, “Carpet World—Elegance Underfoot. Featuring Ban-Lon Carpets.” Ban-Lon paid for most of that ad. That’s co-op advertising. Check with your wholesaler or distributor to see if they have a co-op program. I bet they do.
  • Pay-per-click: Why pay for a bunch of eyeballs to see your ad when most will never buy from you? The beauty of pay-per-click is that only very targeted, highly likely to buy people will click on your link. You don’t pay for looky-loos, and that saves you money.


2. Get bigger clients

Want more money? Then do the same work for bigger clients with bigger needs and bigger budgets who pay bigger money.

Example: I have a pal who sells real estate. When the downturn in the market came, after initially panicking, he decided that if he was going to be working less because there were fewer deals to be had, then he needed bigger clients to make up the difference. So instead of houses, he switched to investment properties and slowly but surely started to list and sell four-plexes, mini malls and the like. He actually ended up making more money than before.

3. Joint ventures

Sure, you can keep doing the same ‘ol thing. And you will get the same ‘ol results. But consider: What if you reached out to some businesses similar to yours and decided to do a project or joint marketing effort? Here’s what might happen:

  • You will double the exposure of your business to the other company’s customer base; customers you would not otherwise reach.
  • You will cut your budget in half as you will be jointly sharing the cost

4. Get some no-cost, up front help

You are probably overworked, most small business people are. But even so, the common lament is that we cannot afford the help we need. Hooey! Here’s how to remedy that one, and grow in the process:

Hire a commissioned salesperson: You don’t pay them until they get results and make you some money.

Bring in interns: I have a pal who used to run his whole business using nothing but interns.

Get a board of advisors: I was recently asked to be a board member for a friend’s business. Twice a year we will meet (by phone) and give her some free help. In return, I will get her help with my business.

Hire an independent contractor: You don’t have to pay for benefits, and you only pay for the time actually worked.

5. Get free publicity

Getting a story out there about your business—be it on TV, radio or online—pays multiple rewards, for years. You can post it on your website and use it in your marketing. Whenever I write about a business for my USA TODAY column, I make sure that the person knows he or she can and should use it in their marketing. How valuable is that? “As seen in USA TODAY!”

6. Create new recipes

You have a recipe for success; all small business people do. It might be an ad that always pulls or a social media strategy. But the problem for most small business people is that they come up with one or two recipes…and then stop. That’s the mistake.

Does Amazon just sell books these days? Of course not. That recipe worked so well that Amazon duplicated it in many other ideas. That’s the ticket.

Steven D. Strauss is one of the world’s leading small business experts. The senior USATODAY.com small business columnist and author of 15 books, his latest is the best-selling Small Business Bible. Steve is also a lawyer and public speaker and speaks around the world about entrepreneurship, including a recent visit to the United Nations. He has been on CNN, CNBC, The O’Reilly Factor, and is a regular guest on MSNBC’s Your Business. You can visit him online at www.MrAllBiz.com or follow him at www.Twitter.com/SteveStrauss.

Source:  http://www.openforum.com/idea-hub/topics/managing/article/6-ways-to-grow-on-the-cheap-steve-strauss?cid=em-smartbrief

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How a good idea became a successful product

February 10, 2011

By Steve Strauss

Jane Angelich loves her dogs. And she also loves business. Her innovative invention, Supercollar, allowed her to combine both
passions. Supercollar is a unique dog collar that has, get this, a built-in retractable 36 inch long leash. If you are taking Fido for a
walk and need to gain control of him immediately, you can, and without having to take the time to find and attach a leash.

Jane got her big idea one day when noticing her fireman husband’s utility belt. Firemen need to carry a lot of tools around their
waist and do so by having them attach to a retractable belt —the tools can be pulled, used, let go, retracted, and returned to their spot quickly.

Jane thought that that would be very useful for dog owners; if she could build a retractable leash into a collar, it would be easy and convenient, and especially for older people, since attaching the leash clip to thecollar is not always easy for them.

Here’s how she did it:

1. She had a great idea: Great products begin with great ideas. To me, the Supercollar is one of those ‘why hasn’t this already been
invented?” ideas. It makes so much sense.  But of course, Jane checked with other dog owners and people whom she trusted first,
before expending the necessary money and time required to get the project off the ground. Other people had better think you
have a great idea, too.

As the Supercollar marketing materials say, the product is “a revolutionary all-in-one dog collar and retractable leash. It is perfect
for dog owners with an active lifestyle who want to make life easier and keep their pets safe.”

It’s no wonder that it was selected as the 2010 Best New Pet Product of the Year and recently featured on The Early Show.

2. She made sure it was unique: Your best bet of creating a breakthrough product comes when you combine something the market needs with something that is different.  The Supercollar is strong, durable, and waterproof. Made of sturdy polypro webbing, it features two specialized retractors containing high-tech coated steel cables, which have over 100 pounds of break strength each. The collar also features 3M Scotchlite reflective accents for pet and customer safety.

3. She got a prototype built: Fortunately, Jane had a head start in that she had seen the essence of what she wanted in her product on her husband’s belt. She was able to show and explain it to design engineers fairly easily.  It also helped that she has a strong business background, and those skills proved to be transferrable. A successful business coach, writer and a speaker, Jane had previously worked with and for the Gap and Salomon Brothers, among others. After leaving the corporate world, Jane went on to found, grow and sell several businesses.

All of this helped her source a design firm in Texas that was able to create a prototype. Cost: About $75,000.

4. She got a patent: As I wrote about previously, if you want to protect your invention and retain exclusivity rights, you need to obtain a patent. No, there is no “patent police” that will enforce your rights once you get a patent, but at least by having a patent you will have the right to enforce your rights.  Having no patent at all means that anyone can take your ingenuity, hard work, time, and expense, rip it off and make their own version of your product. And there is almost nothing you can do about it.  So you gotta get a patent.

5. She rolled it out, but maintained control: Once she had a prototype she liked and a patent to protect her, Jane began to seek out stores who would sell her product.  So often, I hear from readers who ask, “How do I get my product into Wal-Mart?” (Or Kmart or Costco, etc.) Jane didn’t want that.  She did not want her product to be just another forgotten product in some pet superstore. She knew that her product needed a little more attention and would likely get lost in a Big Box store (at least in the beginning.)  So she focused on small chains and pet stores that would take the time to learn of her product and become fans. They did and they are. Jane started smaller, worked out the kinks, learned her business, and is in a better position because of it. You don’t always have to swing for the fences.

The entire process, from great idea to award-winning product on the shelves, took about three years.

Jane Angelich did it, and so can you.

Today’s Tip:

When inventing a product, be careful of companies that promise they will market and sell it for you. Of course, there are many
reputable ones out there that will do just that, but there are also some bad guys. Do your homework.

Steve Strauss is one of the country’s leading small business experts. USA TODAY columnist, author of The Small Business Bible, speaker, and small business spokesperson.  He can be found at  http://www.MrAllBiz.com

Source:  http://www.usatoday.com/money/smallbusiness/columnist/strauss/2011-02-06-strauss-leash_N.htm

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Making a Million With a Big Idea

November 17, 2010

Whether it’s mastering the latest social media craze or trying out a new marketing campaign, many entrepreneurs are often on the lookout for that seemingly-elusive trick that will take things to the next level.

One way is to create an innovative product.

A few years ago I was afforded the opportunity to write a book called The Big Idea in which I looked at just that: How did ordinary people turned a novel idea into a multi-million dollar business or product?

How many times have you said, “I wish I had thought of that!” or worse, “I thought of that a few years ago!” The Big Idea looks at the people who figured out how to take that big idea and turn it into reality.

What I learned is if they did it, you can too. Consider:

The scientist whose walk in the woods changed the world: One day George De Mestral took a walk in the woods to capture some flies with which to examine under his new microscope. Although he found no flies that day, he did end up with a lot of burrs on his sock. Figuring that was next the next best thing given the situation, De Mestral examined the burrs under the microscope, wondering what caused them to stick to his sock.

It turned out that the burrs were made up of thousands of tiny hooks that attached to the thousands of tiny loops that made up his sock. De Mestral then had his big idea: If he could duplicate the hooks and loops system, he just might be on to something – a product that could fasten things together without the use of a zipper or button.

It took him 10 years and almost going bankrupt, but his product, Velcro, is now found everywhere on Earth, and maybe most interesting of all, inside the helmets of astronauts as a way to it a scratch an itch that can’t be scratched by hand.

The woman who changed play forever: Back in the early 60s, Ruth Handler and her husband co-owned a small toy company. Although she had not been on the lookout for a product that would become ubiquitous, you never know when inspiration will strike.

For Ms. Handler, it occurred when she noticed that her daughter enjoyed playing with paper dolls more than real dolls. At the time, real dolls were all made to be babies, whereas paper dolls were grown-up women dressed as stewardesses, doctors, veterinarians and so on. With paper dolls, her daughter could pretend to be anything, not just a mommy to a baby.

But creating a doll that was a woman – with shape and breasts and so on – was a radical idea at the time. Not only that, but creating tiny dresses with patterns, hair that changed, and the like was a feat of engineering that stretched to the limits her small company, Mattel. Nevertheless, six years later, Barbie was introduced.

For Mattel, the lesson was similar as with the creation of Velcro: Great products often take time. They take time to create, and time to gain acceptance. Commitment to the vision is a requirement.

Necessity is the mother of invention: Ed Lowe was a WWII veteran who owned a clay factory. Yet his idea to sell tons of the stuff as an industrial absorbent went nowhere. It was only when his neighbor came over one day and asked to use some for her litter box that the idea for Kitty Litter was born.

For Ed Lowe, the trick wasn’t in the invention then, it was in getting people to try the stuff. No one had ever thought to use clay for this before as people generally used ash at that time. Undeterred, Lowe bagged up his product and drove to cat shows and pet stores.

It worked, but what really worked was being first to market with a new product. Amazon.com was the first big online retailer. FedEx was the first overnight package delivery company. The so-called “first mover’s advantage” is real and makes a big difference.

Partners make a difference too: One of Chester Carlson’s first jobs was to copy patents by hand. Figuring there had to be a better way, he tinkered at night in his garage until he came up with a photocopying process. But he could not sell it to anyone. It was not until a man who owned a company called Haloid saw it and saw the potential that anything happened. The man, Joe Wilson, teamed up with Carlson. Haloid eventually renamed the business Xerox.

Having a partner that fills your gaps helps you go from small to big.

Lessons learned: Predicting whether a product will break through is of course difficult, but the evidence indicates that these things help the cause:

  • Passion for the product
  • Commitment
  • Keeping it simple – hard-to-learn products (think programming a VCR) have two strikes against them
  • Fulfilling a need
  • Being first if possible
  • Well-timed publicity
  • Forming strategic partnerships

By Steven D. Strauss

The senior USATODAY.com small business columnist and author of 15 books, his latest is the best-selling Small Business Bible.

Steve is also a lawyer and public speaker and speaks around the world about entrepreneurship, including a recent visit to the United Nations. He has been on CNN, CNBC, The O’Reilly Factor, and is a regular guest on MSNBC’s Your Business.

You can visit him online at www.MrAllBiz.com or follow him at www.Twitter.com/SteveStrauss.

Source:  http://www.openforum.com/idea-hub/topics/money/article/resources-for-small-business-retirement-plans-michael-periu

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Why You Might Want To Redo Your Website Using WordPress

November 3, 2010

When it comes to websites, small business owners tend to fall into one of two camps:

 

* The first are those whose website is vital, and they integrate it into their overall business. They look for the latest and greatest trick, they understand SEO, they blog and post and all the rest.

* The other group are those folk who know they need to have a website, pay it lip service, and either have a site (albeit an unexceptional one) or, horrors, no site at all.

If I were to tell you that the majority of small businesses fall into the second camp, you wouldn’t be surprised, would you? We have all seen what too many small business websites look like: With the look and feel of something out of 2002 or so, they have few, if any, Web 2.0 tools and act essentially as an e-Yellow Page ad.

Given that, it is not surprising that many small business people find their website to be a pain in the rear, a necessary evil, a chore to be handled, rather than what it should be – their MAIN window to the world, a profit center, an e-billboard, a marketing brochure, and a sales tool all rolled into one. But for too many small business owners, it is not that. Instead, their site is not only boring, it is difficult to update, and although they may want a nicer or more robust site, the imagined costs and effort make it seemingly prohibitive.

But it need not be, redoing your site with WordPress can change all that.

As you may know, WordPress is a popular program that many people use to blog. It’s popular because it is easy. But what you may not know is that WordPress can also be a very powerful and affordable website creation tool.

(Confession: Two years ago, wanting to redo my own site, I received bids as high as $75,000. Sticker shock led me to rethink the project, and my assistant extraordinaire, Vivian, convinced me that we should use WordPress. It turned out to be a very smart business decision. I love WordPress.)

Creating a website with WordPress is surprisingly easy. There are literally hundreds of themes to choose from, and most are free. These themes can be completely customized and installed quickly. You can see some of the best themes here.

 

 

The advantages of using WordPress for your business website are many:

 

The look: As indicated, there are tons of WordPress themes out there, so finding one that fits your business is easy. That it will be Web 2.0 enabled, and have the look and feel of something very now makes it all the more attractive. Slideshows, flash movies, blogs, video, advertising spots – all are a part of various WordPress themes, or easily integrated.

No longer need you be stuck with a site that is bland, blah, or mediocre.

The cost: Most WordPress themes are free, and those that are not cost less than $100, generally. Customizing your theme, if desired, is easy.

CMS: A CMS, or Content Management System, is what most small business people need but don’t have; that is why they need to go to their webmaster whenever their site needs updating. Not so with WordPress. The WordPress CMS is simple and intuitive. It is designed to make adding or changing content to a site a breeze.

SEO: SEO is built into the WordPress dashboard. Below the spot where you post a new article is an “All in One SEO Pack.” It asks you to give your keywords, tags, excerpts, and so on. WordPress does the rest. The result is that you get URLs that are indexed right, full of keywords, and are friendly to search engine spiders.

 

Suddenly, SEO is a snap.

Participation: Adding visitor comments to your site is always great, and with WordPress, visitor participation is integrated through comments and trackbacks.

Support: Because WordPress is open source software, there is a very large community of people out there who can help you.

Ease: Installing a standard WordPress site is quick and easy. Even a custom one can be done in short order. 1 and 1, GoDaddy, and other web hosts know how to add WordPress sites easily.

Bottom line: If you have been thinking of redoing your site, give WordPress a good look. You will be glad you did.

 

Steven D. Strauss is one of the world’s leading small business experts.

 

The senior USATODAY.com small business columnist and author of 15 books, his latest is the best-selling Small Business Bible.

 

Steve is also a lawyer and public speaker and speaks around the world about entrepreneurship, including a recent visit to the United Nations. He has been on CNN, CNBC, The O’Reilly Factor, and is a regular guest on MSNBC’s Your Business.

 

You can visit him online at www.MrAllBiz.com or follow him at www.Twitter.com/SteveStrauss.

Jun 06, 2010 -

 

When it comes to websites, small business owners tend to fall into one of two camps:

 

 

* The first are those whose website is vital, and they integrate it into their overall business. They look for the latest and greatest trick, they understand SEO, they blog and post and all the rest.

 

* The other group are those folk who know they need to have a website, pay it lip service, and either have a site (albeit an unexceptional one) or, horrors, no site at all.

 

If I were to tell you that the majority of small businesses fall into the second camp, you wouldn’t be surprised, would you? We have all seen what too many small business websites look like: With the look and feel of something out of 2002 or so, they have few, if any, Web 2.0 tools and act essentially as an e-Yellow Page ad.

 

 

Given that, it is not surprising that many small business people find their website to be a pain in the rear, a necessary evil, a chore to be handled, rather than what it should be – their MAIN window to the world, a profit center, an e-billboard, a marketing brochure, and a sales tool all rolled into one. But for too many small business owners, it is not that. Instead, their site is not only boring, it is difficult to update, and although they may want a nicer or more robust site, the imagined costs and effort make it seemingly prohibitive.

 

 

But it need not be, redoing your site with WordPress can change all that.

 

 

As you may know, WordPress is a popular program that many people use to blog. It’s popular because it is easy. But what you may not know is that WordPress can also be a very powerful and affordable website creation tool.

 

 

(Confession: Two years ago, wanting to redo my own site, I received bids as high as $75,000. Sticker shock led me to rethink the project, and my assistant extraordinaire, Vivian, convinced me that we should use WordPress. It turned out to be a very smart business decision. I love WordPress.)

 

 

Creating a website with WordPress is surprisingly easy. There are literally hundreds of themes to choose from, and most are free. These themes can be completely customized and installed quickly. You can see some of the best themes here.

 

 

The advantages of using WordPress for your business website are many:

 

 

The look: As indicated, there are tons of WordPress themes out there, so finding one that fits your business is easy. That it will be Web 2.0 enabled, and have the look and feel of something very now makes it all the more attractive. Slideshows, flash movies, blogs, video, advertising spots – all are a part of various WordPress themes, or easily integrated.

 

 

No longer need you be stuck with a site that is bland, blah, or mediocre.

 

 

The cost: Most WordPress themes are free, and those that are not cost less than $100, generally. Customizing your theme, if desired, is easy.

 

 

CMS: A CMS, or Content Management System, is what most small business people need but don’t have; that is why they need to go to their webmaster whenever their site needs updating. Not so with WordPress. The WordPress CMS is simple and intuitive. It is designed to make adding or changing content to a site a breeze.

 

 

SEO: SEO is built into the WordPress dashboard. Below the spot where you post a new article is an “All in One SEO Pack.” It asks you to give your keywords, tags, excerpts, and so on. WordPress does the rest. The result is that you get URLs that are indexed right, full of keywords, and are friendly to search engine spiders.

 

Suddenly, SEO is a snap.

 

 

Participation: Adding visitor comments to your site is always great, and with WordPress, visitor participation is integrated through comments and trackbacks.

 

 

 

Support: Because WordPress is open source software, there is a very large community of people out there who can help you.

 

 

Ease: Installing a standard WordPress site is quick and easy. Even a custom one can be done in short order. 1 and 1, GoDaddy, and other web hosts know how to add WordPress sites easily.

 

 

Bottom line: If you have been thinking of redoing your site, give WordPress a good look. You will be glad you did.

 

Tags: content management system, seo, the strauss group, cms, steve strauss, website, wordpress, search engine optimization

 

Steven D. Strauss is one of the world’s leading small business experts.

 

The senior USATODAY.com small business columnist and author of 15 books, his latest is the best-selling Small Business Bible.

 

Steve is also a lawyer and public speaker and speaks around the world about entrepreneurship, including a recent visit to the United Nations. He has been on CNN, CNBC, The O’Reilly Factor, and is a regular guest on MSNBC’s Your Business.

 

You can visit him online at http://www.MrAllBiz.com or follow him at http://www.Twitter.com/SteveStrauss.

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