WELCOME

Customer service is a real consideration when it comes to existing, new and potential clients. Last week I called a contractor who recently put in a new driveway at my house. After the work was finished I was happy with the job, but after further consideration, I realized there were a few details that needed attention.

The call to the contractor went well. After I described the problem there was no hesitation. The company's rep came to the house, looked things over and told me what they could do to solve it. As a satisfied customer, I will now recommend the company to anybody looking for their service.

Last night I was walking my dog at the park in my neighborhood. Another dog walker was chatting with me about needing a new driveway.

See how things work? Good service after the fact not only keeps your customer happy, but that customer will now become part of your small business's advertising campaign.

Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

SBA Loosens Lender Limits

The 7(a) loans used to finance goodwill (the intangible assets of a business) in a business acquisition have found a bit of breathing room. Initially, the SBA advised lenders that no more than 50 percent of 7(a) loans should be used to finance goodwill. This meant that no goodwill could account for more than $250,000 of the loan amount.

These limits have caused lenders and business brokers to ask the SBA to reconsider on the grounds that the limits would make it harder to buy or sell a business. The SBA has reconsidered and has recently released new guidelines to lenders. Effective October 1, SBA lenders can make loans for business acquisitions if the goodwill is less than $500,000 without getting agency approval.

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MARKETING

Your Own Biz Magazine

Want to set your company apart from your competition? Create a magazine that revolves around your business or your industry, and you will have the ability to offer current and potential customers information about your business, helpful industry advice and product reviews.

With MagCloud.com, you can publish your own professional quality magazine. Simply send MagCloud a PDF file, and they handle the printing, mailing and subscription management.

The publishing is free, but the end product costs about 20 cents per page, plus shipping. (Keep in mind, you can mark up the price of your mag and collect earnings from each magazine purchase.)

HINT: Link your magazine to your home page so people can order directly online. MagCloud will get your magazine to their doors and keep your business on their minds.

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YOUR FINANCES

Introducing Your New Collections Policy

Current economic conditions are making it more and more difficult for customers to pay on time. Creating a clear policy will help enforce collections and handle delinquent accounts:

Accounts Receivable: Freeze everyone's credit until you have an opportunity to examine your receivables. Use the accounts that are farthest behind as you begin your collection efforts.

Create a Protocol: Decide what actions are required for each account. Personal visits can put the pressure on larger delinquent accounts, but that can be time consuming. Making phone calls requires slightly less time, but it still gives customers the impression that you're serious about collecting the debt.

Executing Excuses: Be ready for excuses with quick follow-up questions. If your customer claims, "The check is in the mail," ask for the check number, or when it was mailed so you can estimate its arrival date. Asking for the dollar amount is good way to determine if the payment will help settle the account. If the customer is still stalling, ask for a specific date when the account will be settled.

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FOR THE HOME-BASED BIZ

Home Business Insurance Assurance

Many home business owners make the common mistake of assuming that their homeowners insurance and umbrella polices will cover their business operations. If you haven't safeguarded your home business by taking an in-depth look at your coverage, here's where you need to start:

Property Insurance: This policy will cover assets like office equipment, inventory and supplies. Be sure to investigate the specifics of the office equipment policy since computers and machinery represents a significant loss if damaged.

Liability Insurance: This will protect you from a lawsuit should a delivery person or an associate injure themselves on your property. Standard homeowner's policies will not cover business-related operations, so make sure you get the right coverage.

Auto Insurance: Most personal auto insurance will cover the occasional use of your vehicle for business purposes, but if you use a van or special business vehicle you should look into a commercial auto policy.

HINT: When possible see if you can purchase insurance for home and business through the same carrier. This helps avoid the prolonged drama of multiple carriers deciding who pays for what should the need arise.

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HUMAN RESOURCES

Receptionist, Assistant or Both?

Building the right connection between your staff and your receptionist can improve customer service and productivity. In order to create the right synergy, follow these guidelines:

Synchronicity: Be sure your receptionist receives copies of daily schedules for key staff members. This way he/she can give callers accurate information about staff availability. Keeping your receptionist up-to-date with schedule changes and lists of high-priority callers can also help keep communication flowing between your company and callers.

Calls and Beyond: As the first line of contact with callers, be sure that your receptionist has a clear understanding of your business's products, service information and pricing structure (if appropriate). You may also want to provide training to expand responsibilities beyond managing phones into other administrative areas.

The Voice of your Business: The voice and actions of your receptionist are directly related to your business so be sure that an image of professionalism is conveyed. As the initial connection for callers, be sure to create a protocol that effectively determines and helps to meet each caller's needs starting with "Hello."

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IT

Spruce up Your Site with Online Tools

The following free and low-cost web tools can give your site a touch-up to grab attention and stand out in the crowd:

Audio Micro: With competitive pricing and no hidden fees, this user-generated database of sound effects and music can help engage the ears of your web viewers. Be sure to check out the many free effects and sound clips available for download.

Color Scheme Maker: This free, easy-to-use web tool uses advanced algorithms to create color schemes for your ads and web content. Simply start with your desired color and the various tools will help you design an entire color scheme with a professional flare.

RedAlt: This cool tool allows you to grab the exact specifications of any color that is used on a webpage. Simply type the address of the page in the search box, and you will receive a list of the colors used on the page's text and various design elements - the colors of specific graphics will not be detected. The service is free and totally legal to use.

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MEMBER NEWS

MBA member Accessible Home Health Care announced that the state of Pennsylvania approved the company as a licensed home health agency. Jane Butler, who opened the Ardmore-based franchise two years ago, can be reached at (610) 649-0321.

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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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MBA EVENTS OF INTEREST

FREE Marketing / Coaching Lunch & Learn

MBA Member American Executive Centers presents a free lunch and seminar to help attendees get a jump on their 2010 marketing plan. This is a coaching workshop designed to help assess your current marketing practices and define an action plan to improve them.

Included will be a demonstration of how to use a "profit equation" to develop an aggressive, measurable plan that increases leads, sales and bottom line numbers. This program introduces marketing best practices to address the needs of closely-held and "solopreneur" businesses.

Wednesday, October 28, 2009
12:00 PM to 1:30 PM

American Executive Centers
600 W. Germantown Pike, Suite 400
Plymouth Meeting, PA
(click here for directions)

Please pre-register by contacting (610) 940-1600.

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Sponsors of MBA's AR Online Newsletter

The Administrators, Inc. Insurance Division
(800)634-4428
Making health insurance affordable

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.