WELCOME

It's a demanding, hectic and tiring time of year - and I don't mean just holiday shopping. With the economy hurting just about everybody in one way or another, we've also got the end-of-the-year tax talk and some of the old, reliable chain stores hanging out "closing" signs. Makes your brain hurt, right?

I wish there were answers for all the situations that are causing problems for our small business members. But I would like to caution readers about the store closings. Maybe you're considering purchasing equipment, electronics or business machines when you see that "Everything is Going" sign.

Here's the caution: store-closing prices may be higher than sale prices elsewhere. If there is still a lot of merchandise left, there may be no reason for the store to offer extreme discounts until the store is really about to close the doors.

Don't just assume that a going-out-of-business sale will reward you with big savings. Research what you need, including features, by checking out pricing online, in person or in newspaper circulars. Take your requirements and prices to the store closing, and you'll feel a lot more prepared and ready to make your deal.

Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

Postal Service Shipping Prices to Change in January

The Postal Service is changing prices on Sunday, Jan. 18, for Express Mail, Priority Mail, Parcel Select, Parcel Return Service and some international shipping products. Overall, shipping services prices will increase an average of 5 percent.

This is the first time the Postal Service is adjusting prices for its shipping services on a different schedule from its mailing service. Price changes for mailing services, including stamp prices, will be announced in February and will be effective in May 2009.

New for 2009 is Commercial Plus pricing, a program for high-volume Express Mail and Priority Mail users. New Commercial Plus prices for Express Mail are 14.5 percent less than retail on average, and for Priority Mail 7 percent less than retail on average.

“Commercial Plus is a tiered pricing option designed with larger shippers in mind,” said Gary Reblin, vice president, Expedited Shipping. “It’s a very competitive offering for commercial customers — lower prices that will reward them for shipping higher volumes with the Postal Service.”

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MARKETING

Advertising Inspiration: Look Local

People who read classified sections and service directories are great prospects because they are already looking to buy something. To reach these customers, start collecting and studying local newspapers and magazines to see who is advertising and how.

If there are businesses similar to yours that advertise regularly, there's a good chance that their ads are working. To be sure, collect future issues to see if those businesses are advertising over time. If the same businesses are running ads, take that as a sign that your potential customers can be reached via that source.

Video Ads Within Your Price Range

Most entrepreneurs think they can't afford to create a video ad for their business. If this is you, try checking out AditAll.com.

This site allows you to customize pre-made ads using your logo, text or narration to create your own video ad. Want one ad? It'll cost you $149. Want more? Enroll in the monthly program. In three easy steps you'll have an ad ready for download to be used on your website or in your online ad campaign.

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YOUR FINANCES

Get Paid Up Front

For many small businesses collecting receivables can be time-consuming and growth inhibiting. With the right pitch you could have your clients paying in advance, allowing you to pay bills on time and grow your business. Here are some tips for getting clients on a pre-pay plan:

Incentives: Getting a client to pre-pay is often a question of bargaining. Incentives ranging from discounts to priority shipping are often enough to make a deal. If those don't work, find out what they want and go from there.

Appeal to Efficiency: Some business deals will actually benefit both parties by being paid in advance. If you have a client that is always placing orders that are delayed due to budgeting, try getting them to pre-pay monthly so you have the funds to fill their order when they need it.

Create Policy: It is often the case that small bills are the most time-consuming to collect. To combat this nuisance, create a policy in which bills under a predetermined amount are paid up-front. Often times, posing this arrangement as a "pre-paid package" can be more agreeable to the customer.

Proceed with Caution:
Credit Counseling Services Ahead

Legitimate credit counseling services can help you manage money, business debt and create a budget that works. But there are a lot of credit counseling services out there that are looking to benefit at the expense of their clients. And although many of them operate as non-profits, that doesn't mean they are free or trustworthy.

Steer clear of organizations that charge monthly fees, pressure you to make contributions or won't send you free information without your credit card account numbers. Reputable organizations will work with you face to face and can be found through reputable financial institutions.

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FOR THE HOME-BASED BIZ

Stay on Track

The entrepreneurial experience can be wonderfully exhilarating, especially working from home. But it can also be exhausting, frustrating and annoying. Here are some tips to keep you going:

Make to-do lists: Either on paper or electronically, an updated list of jobs keeps you feeling together and helps you stay on track. Cross off the items as they are completed.

A calendar is a must: Again, on paper or electronic, a calendar should be updated with your appointments and deadlines. Check it frequently.

Work a workday: Don't start your day when you feel like it. Set your work hours and stick to them. Big companies set start and stop times as well as break times. Take a break yourself to recharge. Go for a walk with your dog, read the paper or just have a cup of coffee in the kitchen.

When your "stop" time rolls around, take a look at your work space and organize for the next day. It will help you feel a sense of accomplishment.

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HUMAN RESOURCES

Managing Difficult Conversations

What manager hasn't had to "counsel" an underperforming employee or calm an unhappy customer? As always, the best policy is honesty, and here are some basic principles that can help guide you through these types of unpleasant situations.

Emphasize Your Relationship: Whether it's an employee or a customer, their relationship with you is most important. Be sure to begin the discussion by emphasizing this, which can create a sense of appreciation and help start the conversation on a positive note.

We Not You: When you use the word "you" too much it can put people on the defensive. Instead replace it with "we" to show that you (as the manager) are part of the effort to create change.

List the Benefits: Explain the advantages of changing. Be sure to discuss how the change will benefit both your employee/customer and your business.

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IT

Cloud Computing: Not IT Heaven, but It's Close

There's another revolution developing in the world of technology. "Cloud computing" is poised to improve the way businesses operate. Cloud computing is the term for accessing computer-based services and/or software on the Internet instead of on a hard drive.

Google's Gmail, calendar and document creator are examples of how businesses and individuals can now compute in the clouds without purchasing or downloading software to their hard drive.

What are the benefits of computing in the clouds? 1) Global access to your business information. 2) Computing may become more affordable without requiring expensive software. 3) Less IT to manage since the service provider will maintain your cloud in their data center.

Customer Service with a Cyber-Smile

The non-personal nature of e-business makes providing excellent customer service a special challenge. Because of the amount of fraudulent businesses and scam artists on the web, creating a trusting relationship with a customer starts by creating a reliable presence. Here's how:

Know Your Customers: Get acquainted with the needs and problems of your customers by conducting on-site surveys and providing follow-ups.

More Than Answers: It's a good idea to have a FAQ (frequently asked questions) section, but you should also offer a phone number and an e-mail address for additional questions.

Resolve Right Away: Whether by phone or e-mail, customer questions and problems should be addressed ASAP.

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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 move our members toward growth, success and the entrepreneurial spirit.

Click here to meet our newest small business partners.

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Sponsors of MBA's AR Online Newsletter

Sun East Federal Credit Union

(610) 485-2960, extension 217
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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.