WELCOME

Two new items in this issue of AR Online will, hopefully, help in your search for new prospects.

The first is a new venue for your company to advertise, with rates lower than you would ever expect in an online publication. For example a right column ad in AR Online is $80 which translates to 1 month, two issues. Where else can you advertise for $40 per issue? Lots of other rates (per month, size of ad) are available. Check out our advertising page, e-mail MBA's Hazel Smarowsky or call her at (800) 533-3732 to learn more.

The other new AR Online feature that will help you search for new customers is the link to our list of MBA new members which will be included monthly. Our member base grows constantly and with it your networking prospects, leads group participants and people like you with a common goal.

Very truly yours,
Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

Employee Vacations Benefit Everyone

A recent survey conducted by a travel website found that 36 percent of U.S. workers felt better about their job and believed that their work improved after a vacation. While many clamor for U.S. companies to match the higher number of vacation days available to European workers, strangely, this country is one of the leaders in number of days unused.

Managers who are interested in getting the most from employees can address this issue gently by letting employees know that vacation days do not reflect upon their performance. Having a flexible vacation policy which allows employees time off when needed also can help.

Pennsylvania Employers: Reduce Your Workers' Compensation Premiums by Five Percent

Pennsylvania is making it profitable for employers to work safer and smarter. Employers who want to save five percent on workers' comp premiums can set up a workplace safety committee that meets the requirements for state certification and then apply to have their committee certified through the Health and Safety Division of Pennsylvania's Department of Labor and Industry.

The Department of Labor is even offering free training in the three areas (accident investigation, hazard inspection and safety committee operation) required for initial workplace safety committee certification.

Just complete and submit an application to the Bureau's Health and Safety division for review between 90 and 30 days in advance of your workers' compensation policy renewal date. You will receive notification if you've been approved or if there are areas where additional information is needed.

More than 7,100 Pennsylvania employers have already saved millions in insurance premiums. Money that they're using to expand their businesses, hire more workers, buy equipment and invest in safety programs.

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MARKETING

Persuading a Giant:
How One Small Biz Did It

Thomas McInerney is the CEO of the first independent company to sell legal, feature-length films via the Internet. He accomplished this feat by slowly and patiently cozying up to a giant in the film industry. McInerney put his old company on the line, moved to L.A. and educated himself about the movie industry.

Then, after hiring a former general counsel from Paramount, he began a year-long, wooing process with Warner Bros. He listened and assuaged their concerns before finalizing a deal with the giant.

McInerney used the size of his business to represent the humility and perspective required to learn from and deal with forces that are often above our heads but not out of our reach.

The Price Isn't Always Right -
Or Cut Off Your Nose, Spite Your Face

Newer entrepreneurs often slide down a slippery slope by trying to match more established businesses in price. But those lower prices bring with them lower margins which more established companies can handle due to higher volume. This may not be possible for a newbie. If you can't pay the rent or hire needed help, staying price competitive is useless.

Here are some alternative marketing approaches:

Find your niche. Research your market and identify prospective customers who need special attention in terms of product or service. You may not have Home Depot's prices, but they may not have your particular experience and expertise.

Place value over price. Value may overcome pricing when it represents better quality or service. Many customers need this alternative, and you can be the answer to their needs.

YOUR FINANCES

Deadbeat Damage Control

"A squeaky wheel gets the grease,” applies perfectly to small business owners anxious to control their accounts receivable. When a customer fails to pay their bill, a business owner can’t be bashful about calling and requesting payment. And the severity of your contacts i.e. threats to sue, should increase with the number of calls.

As a business owner, it’s up to you to protect your company and its money.

MBA will present a seminar, Ten Ways to Improve Collections and Cash Flow, a workshop directed toward those who are frustrated by the idea that a small business must wait 90, 120 or 180 days to get paid.

Topics to be covered include: improving the invoicing system and avoiding the time and expense of taking your delinquent customer to court.

Do You Qualify for a Home Business Deduction?

According to the IRS, to claim expenses for business use, you must use part of your home:

• Exclusively and regularly as your principal place of business,
• Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business,
• In the case of a separate structure which is not attached to your home, in connection with your trade or business,
  
• On a regular basis for certain storage use,
• For rental use (see the IRS's Publication 527), or
• As a daycare facility.

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HUMAN RESOURCES

Why Not Go and Ask Jim?

AskJim.biz is a website dedicated solely to answering small business questions in real time. It's free and easy to use.

When you log on you can ask a specific question or browse through over 40 categories of questions that have already received attention. The answers to your questions are supplied by a "brain trust" of small business experts.

Jim believes that entrepreneurs need to have maximum opportunity in order to achieve success. He delivers by providing a valuable resource for entrepreneurs to gain information at the pace of today's "light-speed global marketplace."

How Do I Find Qualified Employees and Set Wages?

Choose your employees carefully. Decide beforehand what you want them to do. Be specific. You may need flexible employees who can shift from task to task as required. Interview and screen applicants with care. Remember, good questions lead to good answers - the more you learn about each applicant's experience and skills, the better prepared you are to make your decision.

Wage levels are calculated using position importance and skill required as criteria. While there is a minimum wage set by federal law for most jobs, the actual wage paid beyond that is entirely between you and your prospective employee.

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IT

The Backup Breakdown

According to research, 38 percent of small companies don't have a data backup policy. This can be a costly and possibly devastating mistake for a small business.

Here are a couple of tools to help get you on track for backing up:

Lighthouse E-Trail Digital Archive Lite: This software is used to organize and archive e-mails. The software is compatible with almost every e-mail system, operating system and database and can reduce your storage needs by 75 percent with its e-mail compression techniques.

The downside to the software is that it isn't user friendly and would be more appropriate for a business that has some kind of IT assistance.

Buffalo LinkStation Pro: The LinkStation Pro is a standalone storage box that allows small businesses to keep their data stored on-site without having to pay for network management. The system works automatically so you don't have to worry about forgetting to back up data.

The downside is that the hard disk doesn't create duplicate copies of your data, so if your backup fails you're in trouble.

E-Training Just Got Easier

Lynda.com is a site that provides educational materials, instructional books, an online training library, CD and DVD-based video training and events for creative designers, instructors, students and hobbyists.

Lynda.com's online training library and CD-Rom titles cover such subjects as Photoshop, Flash, Dreamweaver, Illustrator, Office, digital photography, web design, digital video and many others.

Lynda.com's trainers and teachers provide comprehensive and unbiased movie-based training to tens of thousands of subscribers and is a great solution for keeping skills current.

Library subscriptions begin as low as $25 a month with no long-term commitment required. Go to Lynda.com to check it out and get a free lesson.

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NEW MEMBERS

When our member base increases there is more of everything: more creative networking, more benefits and more experienced, enthusiastic business owners. All which move our members toward growth, success and the entrepreneurial spirit.

Click here to meet our newest small business partners.

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MBA EVENTS OF INTEREST

Ten Ways to Improve Collections and Cash Flow

How is your cash flow? What is your average aging? Do you find yourself routinely accepting the idea that you must wait 90, 120 or even 180 days to get paid?

Attend this seminar to learn ten simple steps to: improve your invoicing process; train your staff to get better collection results; decide if (and when) you should call on third-party intervention.

If you bring a recent aging sheet and a calculator to the seminar, you will be able to use a simple formula to pinpoint exactly where your in-house collection procedures need a boost.

Thursday, July 19, 2007
6:00 PM to 8:00 PM
MBA Conference Room
867 Sussex Blvd., Broomall, PA
Free for MBA members, $25 for non-members, includes credit towards membership (must be paid in advance)
Register by Friday, July 13, 2007
Click here to register

Presenter: Evelyn Apple has served local businesses since the mid-1980s, first with typesetting, printing and bulk mail services and currently as an A/R consultant with Transworld Systems Inc. She has also been an active member of the home education community for 23 years, providing classes and workshops for students and parents.

MBA Summer Networking Luau Is Back

Aloha. Whether you're looking for new customers, an opportunity to talk business or a chance to rub elbows with a beautiful celebrity, MBA's luau is just the place on a warm summer evening.

Enjoy complimentary food and beverages while chatting with your prospects and Miss Pennsylvania Rachel Brooks along Manayunk's Main Street. Miss Brooks will be mixing and mingling with attendees for autographs and photos. And, the Manayunk Brewery and Restaurant has reserved their upper deck for our event. What a great way to do business!

And there will be games and prizes for fun too! "Hawaii Ponoi" is the state song of Hawaii. Translate "Hawaii Ponoi" at the event and enter our special prize drawing.

Thursday, August 16, 2007
6:00 PM to 8:00 PM
Manayunk Brewery & Restaurant
4120 Main Street, Philadelphia, PA 19127
Click here to register

Vending tables are still available at this event. Come show off your stuff to fellow businesses. Click here to reserve your spot.

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Sponsors of MBA's AR Online Newsletter

Sun East Federal Credit Union

(610) 485-2960
Offer a great employee benefit

Barbacane, Thornton & Company

(302) 478-8940
Tax planning, prep & problem resolution as well as accounting and payroll - free consultation

SysONE Solutions LLC

(610) 338-0356
Computer & networking support

Unless specifically indicated, MBA does not intend mention of companies, products or services discussed in this publication to be construed to be endorsements. The information in this publication is offered as examples that may be useful to our small business readers. Please consult with an industry professional before implementing any of the tips or subscribing to any of the services described above.