4 Common Small Business Budgeting Mistakes: How You Can Avoid Them

Budgeting can be a challenge for any small business owner. Knowing when to spend and when to save can be crucial to surviving those early years. Yet small businesses consistently make a few of the same mistakesâ€"mistakes that inevitably force them to either restructure or close for good.

Here are a few of the most common budgeting mistakes small businesses make…along with tips that can help you avoid them.

Please note:  I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. 

Visit http://facebook.com/visasmallbiz to take a look at the reinvented Facebook Page: Well Sourced by Visa Business. The Page serves as a space where small business owners can access educational resources, read success stories from other business owners, engage with peers, and find tips to help businesses run more efficiently. Every month, the Page will introduce a new theme that will focus on a topic important to a small business owner’s success. For additional tips and advice, and information about Visa’s small business solutions, follow @VisaSmallBiz and visit http://visa.com/business.

Mistake #1: Lack of Strategy

The day a small business first opens its doors, a solid business plan should be in place. Many small business owners, eager to get started, jump in without having a good, detailed business plan. Several resources are available to help set both short- and long-term financial goals for your startup. Ask advice from an experienced entrepreneur or a seasoned business analyst who can possibly spot a few things you might have missed.a

Once a business plan is in place, it’s important to continue to review that plan regularly. Another common small business mistake is losing sight of that overall mission over time, leading to costly mistakes.

Mistake #2: Underpricing

When a competitor comes to town, undercutting everyone’s prices to land a job, it’s tempting for other businesses to reduce prices to compete. The competitor likely has a lower operating cost, often at the cost of quality. If you shrink your prices to compete, you’ll either have to operate at a loss or reduce the value of the product or service you’re providing to avoid losing money. Either of these choices can spell death to a growing business.

Instead of slashing prices to compete, emphasize to your customers that your product has a value above and beyond that offered by competitors. Let customers know exactly what they’ll get when they choose your business over others. This enthusiasm for your own value will be contagious.

Mistake #3: Overspending

Part of growing a small business is increasing capital. It’s important to keep operating expenses as low as possible in those early days to survive the inevitable obstacles that will occasionally come your way. Some small business owners choose to accept very little salary in the first couple of years, knowing it’s important to put every dollar possible into the business. While this isn’t always an option, it’s important to avoid the high life until it’s clear the business is realizing a steady profit.

Mistake #4: Disorganization

Life gets busy for small business owners. It’s easy to let expense tracking and billing fall through the cracks. Whether your business is a one-man operation or you manage a team of five to ten workers, software solutions can do some of the work for you, ensuring you account for every dime that flows through your accounts. Visa Small Business Solutions is a great tool for small business owners, giving you access to your financial information from any device with an Internet connection. Built-in reporting and analysis tools help Visa Business Card owners determine where every dime is going to make better financial decisions.

In addition to helping with organization, Visa Small Business Solutions provide discounts on certain purchases through the Visa Savings Edge program. To learn more about the many benefits of Visa Small Business Solutions, including 24/7 lost or stolen card reporting and zero liability of unauthorized card purchases, visit http://usa.visa.com/business/.

4 Common Small Business Budgeting Mistakes: How You Can Avoid Them

Budgeting can be a challenge for any small business owner. Knowing when to spend and when to save can be crucial to surviving those early years. Yet small businesses consistently make a few of the same mistakesâ€"mistakes that inevitably force them to either restructure or close for good.

Here are a few of the most common budgeting mistakes small businesses make…along with tips that can help you avoid them.

Please note:  I am blogging on behalf of Visa Business and received compensation for my time from Visa for sharing my views in this post, but the views expressed here are solely mine, not Visa’s. 

Visit http://facebook.com/visasmallbiz to take a look at the reinvented Facebook Page: Well Sourced by Visa Business. The Page serves as a space where small business owners can access educational resources, read success stories from other business owners, engage with peers, and find tips to help businesses run more efficiently. Every month, the Page will introduce a new theme that will focus on a topic important to a small business owner’s success. For additional tips and advice, and information about Visa’s small business solutions, follow @VisaSmallBiz and visit http://visa.com/business.

Mistake #1: Lack of Strategy

The day a small business first opens its doors, a solid business plan should be in place. Many small business owners, eager to get started, jump in without having a good, detailed business plan. Several resources are available to help set both short- and long-term financial goals for your startup. Ask advice from an experienced entrepreneur or a seasoned business analyst who can possibly spot a few things you might have missed.a

Once a business plan is in place, it’s important to continue to review that plan regularly. Another common small business mistake is losing sight of that overall mission over time, leading to costly mistakes.

Mistake #2: Underpricing

When a competitor comes to town, undercutting everyone’s prices to land a job, it’s tempting for other businesses to reduce prices to compete. The competitor likely has a lower operating cost, often at the cost of quality. If you shrink your prices to compete, you’ll either have to operate at a loss or reduce the value of the product or service you’re providing to avoid losing money. Either of these choices can spell death to a growing business.

Instead of slashing prices to compete, emphasize to your customers that your product has a value above and beyond that offered by competitors. Let customers know exactly what they’ll get when they choose your business over others. This enthusiasm for your own value will be contagious.

Mistake #3: Overspending

Part of growing a small business is increasing capital. It’s important to keep operating expenses as low as possible in those early days to survive the inevitable obstacles that will occasionally come your way. Some small business owners choose to accept very little salary in the first couple of years, knowing it’s important to put every dollar possible into the business. While this isn’t always an option, it’s important to avoid the high life until it’s clear the business is realizing a steady profit.

Mistake #4: Disorganization

Life gets busy for small business owners. It’s easy to let expense tracking and billing fall through the cracks. Whether your business is a one-man operation or you manage a team of five to ten workers, software solutions can do some of the work for you, ensuring you account for every dime that flows through your accounts. Visa Small Business Solutions is a great tool for small business owners, giving you access to your financial information from any device with an Internet connection. Built-in reporting and analysis tools help Visa Business Card owners determine where every dime is going to make better financial decisions.

In addition to helping with organization, Visa Small Business Solutions provide discounts on certain purchases through the Visa Savings Edge program. To learn more about the many benefits of Visa Small Business Solutions, including 24/7 lost or stolen card reporting and zero liability of unauthorized card purchases, visit http://usa.visa.com/business/.

Crowdfunding Expected to Double in 2013

Crowdfunding has proven to be an effective way for small businesses to generate revenue, and the trend is expected to double that success in the next year.

According to the Crowdfunding Industry Report from MassSolution, campaigns raised at least $2.7 billion last year, and that amount should double in the next year. Much of that activity has occurred in Europe and the United States, where bank lending to small businesses has been in decline for a number of years.

The Read More

The post Crowdfunding Expected to Double in 2013 appeared first on Small Business Trends.

Crowdfunding Expected to Double in 2013

Crowdfunding has proven to be an effective way for small businesses to generate revenue, and the trend is expected to double that success in the next year.

According to the Crowdfunding Industry Report from MassSolution, campaigns raised at least $2.7 billion last year, and that amount should double in the next year. Much of that activity has occurred in Europe and the United States, where bank lending to small businesses has been in decline for a number of years.

The Read More

The post Crowdfunding Expected to Double in 2013 appeared first on Small Business Trends.

Crowdfunding Expected to Double in 2013

Crowdfunding has proven to be an effective way for small businesses to generate revenue, and the trend is expected to double that success in the next year.

According to the Crowdfunding Industry Report from MassSolution, campaigns raised at least $2.7 billion last year, and that amount should double in the next year. Much of that activity has occurred in Europe and the United States, where bank lending to small businesses has been in decline for a number of years.

The Read More

The post Crowdfunding Expected to Double in 2013 appeared first on Small Business Trends.

Cool New Device Makes Your Computer Ring When You Get An Important Message

Your computer opens a new world of possibilities for you, as far as communication is concerned. Of course, you don’t always spend time with your eyes attached to it, just like you don’t spend a lot of time in front of your phone. Could you imagine how life would be if phones didn’t ring when people called How come computers don’t ring like phones do when you get a message

Sometimes, message notification sounds are not enough. If you’re having a particularly busy day, you’re probably not going to be able to respond to every message you get. You probably want your computer to “ring” only when you get important messages. How could you make this happen

Meet Sonic Alert’s Sonic Connect 2. This simple USB device does more than notify you when you receive a message. It integrates with instant messaging applications, email clients, and video conferencing software (like Skype), giving you a full range of message notification capabilities.

When you receive a message, an ultra-bright LED lights up and the device rings loudly, letting you know that you’ve got something waiting for you at the PC. If you’re not around while it rings, you don’t need to worry about missing anything, since Sonic Connect 2 will light up in red to show you that something’s waiting for you.

To use this device, you only need to plug it into a free USB port and install the software on the computer you’re using it on. While you’re attending to other duties, the Sonic Connect device will ring and flash brightly. It also has the option of tactile interaction (vibration mode), with or without the ringing tone, in case it’s too obnoxious for you or you don’t want to disturb others.

It’s stunning how no one really thinks about the fact that phones ring, yet computers are still completely silent. While you’re carried away trimming hedges, you’re probably not thinking about checking your email for customer orders. This device will let you know whether you got something waiting for you so you don’t have to pop back at your computer and waste time checking whether something arrived.

Cool New Device Makes Your Computer Ring When You Get An Important Message

Your computer opens a new world of possibilities for you, as far as communication is concerned. Of course, you don’t always spend time with your eyes attached to it, just like you don’t spend a lot of time in front of your phone. Could you imagine how life would be if phones didn’t ring when people called How come computers don’t ring like phones do when you get a message

Sometimes, message notification sounds are not enough. If you’re having a particularly busy day, you’re probably not going to be able to respond to every message you get. You probably want your computer to “ring” only when you get important messages. How could you make this happen

Meet Sonic Alert’s Sonic Connect 2. This simple USB device does more than notify you when you receive a message. It integrates with instant messaging applications, email clients, and video conferencing software (like Skype), giving you a full range of message notification capabilities.

When you receive a message, an ultra-bright LED lights up and the device rings loudly, letting you know that you’ve got something waiting for you at the PC. If you’re not around while it rings, you don’t need to worry about missing anything, since Sonic Connect 2 will light up in red to show you that something’s waiting for you.

To use this device, you only need to plug it into a free USB port and install the software on the computer you’re using it on. While you’re attending to other duties, the Sonic Connect device will ring and flash brightly. It also has the option of tactile interaction (vibration mode), with or without the ringing tone, in case it’s too obnoxious for you or you don’t want to disturb others.

It’s stunning how no one really thinks about the fact that phones ring, yet computers are still completely silent. While you’re carried away trimming hedges, you’re probably not thinking about checking your email for customer orders. This device will let you know whether you got something waiting for you so you don’t have to pop back at your computer and waste time checking whether something arrived.

Cool New Device Makes Your Computer Ring When You Get An Important Message

Your computer opens a new world of possibilities for you, as far as communication is concerned. Of course, you don’t always spend time with your eyes attached to it, just like you don’t spend a lot of time in front of your phone. Could you imagine how life would be if phones didn’t ring when people called How come computers don’t ring like phones do when you get a message

Sometimes, message notification sounds are not enough. If you’re having a particularly busy day, you’re probably not going to be able to respond to every message you get. You probably want your computer to “ring” only when you get important messages. How could you make this happen

Meet Sonic Alert’s Sonic Connect 2. This simple USB device does more than notify you when you receive a message. It integrates with instant messaging applications, email clients, and video conferencing software (like Skype), giving you a full range of message notification capabilities.

When you receive a message, an ultra-bright LED lights up and the device rings loudly, letting you know that you’ve got something waiting for you at the PC. If you’re not around while it rings, you don’t need to worry about missing anything, since Sonic Connect 2 will light up in red to show you that something’s waiting for you.

To use this device, you only need to plug it into a free USB port and install the software on the computer you’re using it on. While you’re attending to other duties, the Sonic Connect device will ring and flash brightly. It also has the option of tactile interaction (vibration mode), with or without the ringing tone, in case it’s too obnoxious for you or you don’t want to disturb others.

It’s stunning how no one really thinks about the fact that phones ring, yet computers are still completely silent. While you’re carried away trimming hedges, you’re probably not thinking about checking your email for customer orders. This device will let you know whether you got something waiting for you so you don’t have to pop back at your computer and waste time checking whether something arrived.

Read “Can’t Buy Me Like” for Insights About The Relationship Era

Is it really possible that more people love Satan than Dow Chemical Well, according to the trusty Google search conducted by Bob Garfield and Doug Levy - yes. When you type in the words “I love Satan” you get 293,000 hits, and when you type in “I love Dow Chemical” you get just 3.

And so begins “Can’t Buy Me Like: How Authentic Customer Connections Drive Superior Results“, a tale of what it takes to woo customers these days as skillfully woven by Bob Garfield (@onthemedia), Host of NPR’s “On the Media” and Doug Levy (@douglevy1), the Founder of CEO of MEplusYOU, a leading strategic and creative agency that believes authentic relationships fuel astonishing brands.

I received a review copy of this book just this week and couldn’t wait to tell you about it as soon as I finished reading it. I think it contains vital mind-shifting information for every business; large and small.

Top Down Telling and Convincing is Dead in Today’s Grassroots “Relationships Era”

According to the authors, we’re evolving into the relationship era. If you remember any marketing class you’ve ever had or marketing book you’ve ever read, you’ll recall that marketers define their history as beginning in the 17th century with the “Product Era” which stayed with us into the 1950’s. Then there was the “Consumer Era” which started around 1965 and ran up until “five minutes ago” (according to Garfield and Levy). This was a time where large brands thrived by simply finding out what consumers wanted and then giving it to them.

“Cant’ Buy Me Like” is all about the next step in marketing - “The Relationship Era.” This book outlines exactly how this era has disrupted business as usual. This is a time where human needs, human values and human connections will define your success or failure. The currency of “Relationship Era Marketing” is not awareness; it’s belief.

Discover How Successful Companies Are Measured and What to Do to Thrive

It’s not enough to say that things are changing. You already know that. What “Can’t Buy Me Like” does is get to the root of what triggered the change and why you need to have a firm grasp of these events so that you can make the necessary changes and run your business better.

You may be tempted to write all of this off as a passing fad or some kind of social media-driven drivel. This would be a huge mistake. The concepts of “authenticity” and “customer connections” may have started out that way, but they have become the DNA of successful and profitable businesses.

The book goes into detail of companies who were simply going through the motions of top-down marketing campaigns such as McDonald’s, who created a mess by asking for authentic customer stories without building the required trust and engagement from their customers to pull it off. Or United Airlines who destroyed 25 years and billions of dollars of Gershwin ads when over 12 million people viewed the “United Breaks Guitars” YouTube video from a dissatisfied customer.

The lessons in this book are clear and lasting; you have to pay to play in today’s likeability arena. And paying means paying attention to the core values of your company and actually living those values beyond the posters and ads that you put out in the marketplace.

You’ll read about how companies that have put their values where their ad dollars are have come to reap the rewards:

• Patagonia, which earned credibility with their “Don’t Buy This Jacket” campaign that explained their company’s commitment to their “Common Threads Initiative” and urged their customers to be conscious consumers.
• Panera Bread, which doubled their per store sales by focusing on creating a welcoming environment while spending just 1% of sales on advertising. (I know what they mean, I prefer Panera to Starbucks simply because there is free wifi and they don’t blast distracting music.)
• P&F’s Secret Antiperspirant grew by simply rallying behind the idea of female fearlessness.

What Will “Can’t Buy Me Like” Do for Your Business

If you get anything from this book, it’s that the days of “corporate speak” and top-down message control are over. The good news here is that this frees you up to really build a profitable business around your true commitments and the reasons that you started your business in the first place.

When I talk to my clients, I often have the impression that they think they have to be “professional” and they have to do things “the right way.” It finally dawned on me, after reading this book, that much of this mindset comes from the now obsolete ways of top-down marketing.

I’ve been telling everyone who will listen that your marketing has to be a true reflection of who you are and what you are committed to. When you try to put a face on your brand that is anything less than that, you will either go broke trying or fail.

If you’ve been looking for the right way to inject your true values and personality into your marketing, then you have to read “Can’t Buy Me Like.” You’ll walk away with a whole new outlook and future for the life of your business, and for the business of your life.

Read “Can’t Buy Me Like” for Insights About The Relationship Era

Is it really possible that more people love Satan than Dow Chemical Well, according to the trusty Google search conducted by Bob Garfield and Doug Levy - yes. When you type in the words “I love Satan” you get 293,000 hits, and when you type in “I love Dow Chemical” you get just 3.

And so begins “Can’t Buy Me Like: How Authentic Customer Connections Drive Superior Results“, a tale of what it takes to woo customers these days as skillfully woven by Bob Garfield (@onthemedia), Host of NPR’s “On the Media” and Doug Levy (@douglevy1), the Founder of CEO of MEplusYOU, a leading strategic and creative agency that believes authentic relationships fuel astonishing brands.

I received a review copy of this book just this week and couldn’t wait to tell you about it as soon as I finished reading it. I think it contains vital mind-shifting information for every business; large and small.

Top Down Telling and Convincing is Dead in Today’s Grassroots “Relationships Era”

According to the authors, we’re evolving into the relationship era. If you remember any marketing class you’ve ever had or marketing book you’ve ever read, you’ll recall that marketers define their history as beginning in the 17th century with the “Product Era” which stayed with us into the 1950’s. Then there was the “Consumer Era” which started around 1965 and ran up until “five minutes ago” (according to Garfield and Levy). This was a time where large brands thrived by simply finding out what consumers wanted and then giving it to them.

“Cant’ Buy Me Like” is all about the next step in marketing - “The Relationship Era.” This book outlines exactly how this era has disrupted business as usual. This is a time where human needs, human values and human connections will define your success or failure. The currency of “Relationship Era Marketing” is not awareness; it’s belief.

Discover How Successful Companies Are Measured and What to Do to Thrive

It’s not enough to say that things are changing. You already know that. What “Can’t Buy Me Like” does is get to the root of what triggered the change and why you need to have a firm grasp of these events so that you can make the necessary changes and run your business better.

You may be tempted to write all of this off as a passing fad or some kind of social media-driven drivel. This would be a huge mistake. The concepts of “authenticity” and “customer connections” may have started out that way, but they have become the DNA of successful and profitable businesses.

The book goes into detail of companies who were simply going through the motions of top-down marketing campaigns such as McDonald’s, who created a mess by asking for authentic customer stories without building the required trust and engagement from their customers to pull it off. Or United Airlines who destroyed 25 years and billions of dollars of Gershwin ads when over 12 million people viewed the “United Breaks Guitars” YouTube video from a dissatisfied customer.

The lessons in this book are clear and lasting; you have to pay to play in today’s likeability arena. And paying means paying attention to the core values of your company and actually living those values beyond the posters and ads that you put out in the marketplace.

You’ll read about how companies that have put their values where their ad dollars are have come to reap the rewards:

• Patagonia, which earned credibility with their “Don’t Buy This Jacket” campaign that explained their company’s commitment to their “Common Threads Initiative” and urged their customers to be conscious consumers.
• Panera Bread, which doubled their per store sales by focusing on creating a welcoming environment while spending just 1% of sales on advertising. (I know what they mean, I prefer Panera to Starbucks simply because there is free wifi and they don’t blast distracting music.)
• P&F’s Secret Antiperspirant grew by simply rallying behind the idea of female fearlessness.

What Will “Can’t Buy Me Like” Do for Your Business

If you get anything from this book, it’s that the days of “corporate speak” and top-down message control are over. The good news here is that this frees you up to really build a profitable business around your true commitments and the reasons that you started your business in the first place.

When I talk to my clients, I often have the impression that they think they have to be “professional” and they have to do things “the right way.” It finally dawned on me, after reading this book, that much of this mindset comes from the now obsolete ways of top-down marketing.

I’ve been telling everyone who will listen that your marketing has to be a true reflection of who you are and what you are committed to. When you try to put a face on your brand that is anything less than that, you will either go broke trying or fail.

If you’ve been looking for the right way to inject your true values and personality into your marketing, then you have to read “Can’t Buy Me Like.” You’ll walk away with a whole new outlook and future for the life of your business, and for the business of your life.