WELCOME

If you are like most of our readers involved in a small business, you know that you are responsible for everything from selling your product to cleaning the floors. Doesn't seem fair does it. Getting back to the selling: Are you or your salespeople using referrals as a sales tool? Or are you just afraid that you'll get turned down if you ask?

Who cares if you get turned down? Referrals are a great way of getting leads that have a little warmth. Talk about fear of getting turned down - try a cold call. Now that's fear.

If you have an agenda for your business's selling activities, write "referral" at the end of the list. You'll see that asking for one (or two) becomes routine. And remember that most people, if you've done a good job for them, will actually like to recommend someone else to you.

If your customer seems amenable to the referral, try a second pitch. Ask for a testimonial too. Have a printed form ready to make it easier. But I guess I'm getting ahead of myself. I'll leave the testimonial to another day.

Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

Federal Reserve Reports Ease in Small Biz Lending

The Federal Reserve recently reported survey findings that large U.S. banks have eased lending standards for small businesses. The survey reports that this is the first instance of larger lenders relaxing their standards since 2006. The survey also found that larger banks eased standards on consumer loans and prime mortgage loans.

The Federal Reserve has been putting more and more pressure on lenders to support small businesses, citing that large corporations are increasing their earnings while small businesses are still scrambling unsuccessfully for credit.

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MARKETING

Marketing Local Alma Maters

Marketing to students and parents of local colleges and high schools represents an opportunity to penetrate a niche and expose a huge undercurrent of potential customers:

Colors: High school and college colors are widely sought after. Use these color schemes to make purchasing decisions about products and to create local ad space that appeals to staunch school supporters. You can even implement them into the design of your business space.

Announcements: Displaying booster banners and schedules for big games and events lets the community know that you're a supporter and that your business is ready to service fellow fans.

School Discounts: Offering discounts to students and faculty will get you noticed quickly. Buying ad space in college and high school papers is also an inexpensive method to get a coupon and your logo in front of students.

Creating Your Own Biz Magazine

Want to set your company and your industry knowledge apart from your competition? By creating a magazine that revolves around your business or industry, you can offer prospects information, helpful advice and product reviews.

With MagCloud.com, you can publish your own professional quality magazine at no cost to you. Simply send MagCloud a design PDF file (i.e. Adobe), and they handle the printing, mailing and subscription management. The publishing is free, but the end product will cost 20 cents per page, plus shipping. (Keep in mind, you can mark up the price of your mag, and collect earnings from each 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

Common Problems of Accounting Software

Each business has their own specific needs when it comes to accounting. The trick is to figure out what you need and what you don't.

Here are some recommendations based on the top complaints that software experts hear:

• Your data isn't secure enough: Many business owners just don't feel satisfied with conventional security measures like firewalls and redundancy. Another option is to hire an application service provider (ASP) to deal with your account remotely through the web. Over time the pricing is comparable, but ASPs give you the edge on staying updated.
• We outgrew it: Small businesses often outgrow their initial software because they didn't factor in their rate of growth. When shopping for the right software, keep in mind your projections for growth and how different software will be able to complement your success.
• Data is entered, but irretrievable: Many accounting programs are extremely complex, leaving the average user unable to retrieve necessary information or even print reports. The best way to avoid this is simply asking other businesses or accountants what kinds of programs they recommend.

Summer Cash Flow Crunch

The vitality of your business is heavily dependent on cash flow, so if you haven't done so recently, reassess your habits to uncover savings.

Here are some places to look:

1. Discounts: By offering customer incentives for paying early, you not only can increase the rate of your cash flow but you also keep your current customers happy and loyal.
2. Up Sell: In tight times, try offering more to your existing customers rather than searching for new ones. Take some time to let them know about your newest or your premium products. This will not only help you save on marketing efforts but it will inform customers of these special offerings.
3. Billing Cycles: Arrange your payment schedule around your billing cycle to get the most out of the creditor's grace period. This means you can make purchases early in your billing cycle and delay payments, giving you the optimal amount of time between payments.

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FOR THE HOME-BASED BIZ

Home Business Home Wreckers

Sometimes operating your business out of your home can give you an unrealistic sense of security, causing a relaxed approach to normal business protocol.

Here are some hints on how to avoid common home business blunders:

Keep Receipts: Not only is it important to keep track of your business expenses to have an accurate view of financial health, but receipts are necessary to claim tax deductions. All the tiny expenses like pens/paper, toll and parking receipts don't look so small when they come back in the form of a refund check.

Accept Credit Cards: More payment options means increased chances of making a sale. Not accepting credit cards to avoid fee costs is short-sighted considering the state of the economy and consumers' reliance on credit. Call MBA at (800) 533-3732 for information on merchat card processing.

No Business is an Island: Working from home and being the solitary employee of your business may leave you disconnected with a slight "god" complex. Networking your home business is absolutely essential to its success and will keep you from feeling that you're above the suggestions and help of others.

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HUMAN RESOURCES

Managing Employee Issues

If your small business has employees, you will likely encounter behaviors and situations that require special attention.

Here are some common issues that may arise and tips for handling them:

• Stealing and Abuse: Employee theft and privilege abuse can cost a business up to seven percent of its annual revenue, or more when times are tough. Create and post a fraud policy where all your employees can see it. For serious cases of fraud consult an attorney before you take action or confront the suspect.
• Religion/Politics: Heated discussions about personal belief can lead to office unrest, reduced productivity and even harassment lawsuits. Let employees know to save this type of banter for off-work hours.
• Evident Substance Abuse: OSHA regulations require that you provide a safe working environment for your employees. Substance abuse compromises that requirement. Take the employee aside privately to discuss the problem and offer help however you can.

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IT

Creative Commons

Creative Commons is a non-profit organization whose goal is to keep creative ideas in the public domain. The website offers users tools and resources to share, collaborate and draw on the ideas and work of other contributors legally and without compensation.

There are various levels of protection and sharing that each user can assign to their work, so you can maintain as much or as little control as you wish. Creative Common's licenses don't replace copyrights, but work in conjunction with them to help modify the terms to suit your purposes.

As a collaborative tool, Creative Commons is a great way to work with others, test out your ideas or tap into the thoughts of others to hone your creative endeavors. There is no charge for use of the tools or to search the work of other contributors.

Venmo: Charge and Pay by Phone

The new service Venmo offers a safe and convenient way to charge and pay for services via any cell phone with text features. Getting started is easy and fast.

After you sign up you will be ready to make and accept payments from anyone - even if they're not registered. Have your customer text the Venmo number with your username or phone number and the amount they wish to pay. Venmo will then contact the customer with an automated message to pay with a credit card.

If you build a trusted repoire with a customer or friend, you can set your Venmo account to a level of "Trust" that allows the trusted party to withdraw up to $500 from your account at will.

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COMMENTARY

Time to Fight Back
By Stephen Markowitz

As a small business owner or manager, surely by now you have enough of the blame being put on your shoulders while the hands of those who blame are in your pockets.

It does not matter if you are a Democrat, a Republican, a Teetotaler, or a Libertarian…they are doing this to all of you. You will shortly be paying higher taxes, more for electricity to run your shops and offices, fines if you do not offer health insurance, and rapidly increasing health insurance premiums stimulated by Obamanomics and its kamikaze health reforms.

What do you get in return for this? Vilification by politicians with agendas that have nothing to do with the quality of your lives. Blame for not hiring more people because you have no confidence in the direction of the economy or our leaders. Blame for hiring illegals who were supposed to be caught at the border, not at your time clock. Mountains of regulation to insure you are bogged down in bureaucratic hoop-jumping rather than being productive.

This is a country founded on the premise that the common man can run his own life and trust in those he elects to protect the country and serve him. Of course that now includes her as well (The Founding Fathers didn't always get it right). As a well-defined, potentially-powerful voting entity, the small business community must start fighting back now or it will be too late. Take on your elected officials who have forgotten that they serve to protect and serve, not to experiment with social agendas that fly in the face of a system that - warts and all - has made us the most efficient society in history, not to mention a leader in charitable giving and protecting other nations.

Midlantic Business Alliance has begun an initiative. Join MBA today in support of their support of you. MBA will develop non-partisan strategies, programs and merchandise to support this initiative. The initiative embraces a simple message: I am small business and I employ America. Do your job and I'll do mine.

Stephen Markowitz is chief executive officer of The Administrators, Inc. His column Commentary appeared for 15 years in The Alliance Report, MBA's printed newsletter. His comments reflect his views and not necessarily the opinions of the board and staff of Midlantic Business Alliance. Contact him at SMarkowitz@TheAdministratorsInc.com.

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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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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.