Surviving the Zoning Laws

One of the perils of running a home-based business is running afoul of the zoning laws. Worse, the zoning officials can force you to close down your business. Sounds unreal? It may be so, but there have been many instances when home businesses have been forced to shut down because they were found to be in violation of zoning restrictions.

Zoning laws are designed to preserve a neighborhood's residential character and thereby maintain property values. Some zoning regulations are stricter than others. In some areas, home businesses

• Could operate only on a part-time basis.
• Are limited in terms of the floor space designated to the business (in some areas, home businesses cannot take up no more than 250 square feet in a house)
• Have limits on the amount of car and truck traffic
• Prohibits outside signs; or if allowed, sizes and placement of signs are carefully monitored
• Have restrictions on the number of employees
• Have restrictions on the allowed number of customers per hour
• and many more

Cheltenham Township in Pennsylvannia has a detailed list of what can a home business do and what it cannot, and as you can see from their zoning laws -- it is very detailed (and yes, restrictive.)

So what can you do to make sure that you don't run afoul of the zoning laws?

• When registering your business, take time to ask about the zoning restrictions for home businesses so you can be aware of what you can, and cannot do.
• If you are thinking of buying a house into a community and you are already running a home business, be sure to check the zoning restrictions before you close on the property.
• Neighbors can be powerful allies -- or enemies. They can report you to the zoning board and complain about the traffic or the comings and goings of people in your house (can you imagine if they complain that you are a drug dealer because of the constant stream of people and they do not know that you are a consultant working from home?) Get their support early on; even be open to them as to what you can do.
• If you have a lot of pickups and deliveries, consider having an alternative location such as private mailbox service.

Business Idea: Starting a Personal Chef Business

If you like spending time in the kitchen and cooking for other people, you may want to consider starting a personal chef business.

Personal chefs prepare personalized meals typically in the homes of their clients, then package it and prepare detailed instructions for reheating. Cheaper than private chefs, they are in high demand in urban areas by families who wish to spend more time together, young professional couples or singles who enjoy eating tasty meals without the hassles of cooking.

To succeed in this business, you need to have the following skills:

• superb culinary skills
• time management skills
• great in budgeting
• superior customer skills

Here are some great resources on how to get started as a personal chef:

• American Personal & Private Chef Association http://www.personalchef.com/
• United States Personal Chef Association http://www.uspca.com/
• Personal Chefs Network http://www.personalchefsnetwork.com/
• Hire a Chef http://www.hireachef.com/

Tips on Negotiating from a Successful Real Estate Entrepreneur

I just got the book "The Peebles Principles", a first person account of R. Donahue Peebles -- head of a real estate development company The Peebles Corporation who made his fortune from scratch. He made his mark in Washington DC area, but his crowning achievement was the establishment of the Royal Palm Crowne Plaza, which became the first African American-owned resort in the U.S.

Peebles' book is surprisingly very informative with lots of tips on how could one start wheeling and dealing in the real estate world. Peebles may not be as well known as Donald Trump, but his book has a breath of freshness and believability that Trump's books often lack.

Some of Peebles tips on negotiations and running a business include:

• Don't quit even if it seems like the end, endurance in key.
• Don't be intimidated by better established rivals.
• Never stop looking for a way to win.
• Don't get sloppy at the end; the last five yards are more important than the first.
• If you cut deals with questionable parties, always make sure the documentation is thorough.
• In addition to thinking about how much money you can make from a given transacion, carefully consider your financial exposure. Be aware that this may exceed the intermediate cash you've put on the line.
• Maintain political relationships even when you don't need them. They may prove to be good insurance in critical situations.
• When it comes to closing deals, delay is the enemy of the entrepreneur -- unless you use it to stretch out your financial obligations.

I have written about the principles that Peebles live by based on his own experiences, and you can read it over at WomenHomeBusiness.com

Impact of Getting Top 10 Rankings in Google

We all know the importance of getting top 10 rankings in Google for our most important keywords. But what exactly can being in the top 10 give your site?

Oneupweb.com has an interesting white paper that quantifies the impact of getting a top 10 ranking in Google. According to their study, getting on the top 10 increases your traffic and conversion. Their research shows that:

• The month prior to listing in the top 10 of Google, their test site showed that it averaged 14 unique visitors per search term
• The first month the site appeared in the 1-10 search result of Google on the first page boosted its unique visitors to 46 visitors per search term
• After the second month of appearing on the first page, average visitors per keyword increased to 86

Read the study of Oneupweb.com

The Mistake of Setting Unrealistic Expectations

I just watched the DVD of the movie "The Pursuit of Happyness" starring Will Smith. Will Smith's character signed a dealership agreement with a bone density scanner machine company to become the exclusive distributor in the San Francisco area. He had such great expectations about the business, which unfortunately turned out to be unrealistic. Doctors found his machines to be expensive and an "unnecessary luxury."

Like Smith's character in the movie, one of the common mistakes made by startup entrepreneurs is setting unrealistic expectations about the business.

When we start our businesses, we are often so full of optimism that things will go out really, really well. Whether joining an MLM network, or starting an online business, or starting a retail store, we dream that cash will start rolling in. We think that things will work out as we have planned -- which is all good, of course, as we need to be optimistic about the prospects of the business.

Unfortunately, sometimes it doesn't work out as we hope it to be. We open an online store, only to find 6 months down the road that we have not received any sales -- despite spending and spending on pay per click advertising or printing tons of flyers. Or we join a network marketing program only to find that selling the products or recruiting new members is very hard to do.

How did it all go wrong? It may be a combination of naivete, or unrealistic expectations.

I remember the first time I did a business plan. When it came to the financials, my projections were off the charts! I felt confident that things will work out just as I had planned that right from the get-go, I projected that the business will earn, and continue earning month after month. Of course, it did not happen.

When I talk to other new entrepreneurs, I find that I am not alone, and it's a common mistake committed by too-eager prospective business owners. Here are some steps to avoid this problem:

1. Research and understand the business thoroughly. Read about the business from books. Search forums where other business owners congregate.

2. Talk to others already doing the business. You will find that some entrepreneurs are willing to share their experiences and knowledge. Use resources such as Yahoo Answers or forums to ask about other people's experiences.

3. Find a mentor. Go to your nearest Small Business Development Center or SCORE offices and check if you can find someone in the same industry who may be willing to work with you and help you. Or join your local business organizations such as the Chamber of Commerce.

How to Start and Succeed in a Freelancing Career

I recently posted about the Common Mistakes to Avoid When Freelancing , and I got a number of interesting feedback with people sharing their own mistakes while freelancing.

So now I'd like to look at the flipside and offer tips on how you can succeed as a freelancer by starting your freelancing career on the right foot:

1. You must have the right reasons for wanting to be a freelancer. Everything starts with the motive: why do you want to be a freelancer? How do you see the life of having no job security or benefits? If despite all the possible negatives you still feel the excitement of being a freelancer, then you're off to the right track.

2. Determine if you have the personality and temperament to be a freelancer. To succeed as a freelancer, you need to have the right personality traits and skills. You need to have great people skills as you'll be working from one company to another. You need to have good marketable skills and creativity in promoting your services. You should have energy and determination to grow your freelancing services into a profitable business operation. Attention to detail is also a must as there is only one who will watch out for you, and that is you.

3. Research, research and research. Like any startup business, you need to learn about your target market and your competitive environment. Who will need your services? What types of clients or companies will hire you? Are there enough of these companies in your locality? Or are you going to solicit assignments from other areas through the Web?

4. Use the power of networking. Presenting yourself cold to a company who's never heard or worked with you before is not easy. In freelancing, "who you know" is a very important asset. You stand a better chance in winning the contract or assignment if you know someone from the inside (maybe from a previous assignment or work environment) who can vouch for your skills and reliability. Knowing the right people can also be your source of tips for upcoming assignments. The power of referral is incredibly important in the field of freelancing, and you can achieve this if you network.

5. Plan your freelancing career. Freelancing is just like starting a business: you need to have a roadmap to help chart your course to success. Think of it as similar to the process of writing a business plan. At the onset, consider whether you will embark on freelancing head-on and quit your job; or start slow and start freelancing while working part-time. Think of where you want to be in a year. The key is to determine whether you have the resources to tide yourself while you are still getting your groove in freelancing, or whether you can immediately find clients.

6. Hone your marketing skills. Don't you wish that assignments and new contracts will conveniently fall on your lap without you lifting a single finger? Alas, that is mostly pipe dream. For majority of freelancers, you need to market yourself to potential clients. And marketing is never easy. You need to find the companies who are looking for the services you provide and learn about them as much as you can -- what is their contract hiring process, who is the decision maker, what are they looking for, etc. Be prepared to do a lot of cold calling and reponding to requests for proposals. Spend time knowing a contact in the organization, even inviting them for lunch. Use the web to market your services by creating a website. Create brochures, flyers and lots of business cards. Attend seminars, conferences and other events where your target market congregates and get to know key people. Personal networking is an important marketing arsenal for freelancers.

7. Improve your likability factor. In business, they say that it is easier to keep existing clients than finding new clients. And that is so true in freelancing. Being likeable can go a long way in making sure that clients love you and will want to continuously work with you. Give your best customer service and you will succeed in freelancing. And that means delivering high quality outputs, delivering them on time and on budget. Make sure that you have a smooth working relationship with the client by being congenial and a good communicator. I've seen talented freelancers whose clients cannot wait to get rid of them because they are just too difficult, combative and just being a pain in the neck.

8. Be a smart businessperson. In as much as you want to think that your client will keep you forever, alas that is not always the case. Have the foresight to prepare for the eventuality. Get a sense when clients are starting to think that they no longer need your services -- the worst you can do is to assume that all's well in the world only to be handed a termination later that day. It takes about 2 to as much as 6 months to find new clients. Without sacrificing the quality of your work, spend at least an hour a day marketing your services.

I would really appreciate it if you have any suggestions or additions to my tips :o)

A Lesson in Finding a Profitable New Target Market: Case of Western Union

I was leafing through my old issues of Business 2.0 magazine and I came across a 2004 article on Western Union and how it has successfully reinvented itself by going after a new market: the foreign born workers.

Western Union was at one time the monopoly national communications company, especially in the 19th century up until 1930s. During the heyday of telegrams, Western Union was the mammoth company of its times.

But as modernization ensued, the company struggled and even went into bankruptcy in the 1990s. By then, they have refocused their business to moving cash from one part of the country to the other, done through credit cards, ATMs and other forms of electronic payment. Alas, even this business failed to push Western Union back into black. The company sent its last telegram on January 2006.

Until Western Union decided to change its target market. Charles Fote of First Data Corp which acquired Western Union (then spun it off to shareholders in 2006) saw a great opportunity for Western Union: become the chief money-mover for foreign-born workers, one of the fastest growing segments of the country.

The number of immigrants in the US is rising dramatically, and while "cashless society" is the mantra of Americans used to carrying plastic all the time, cash still reigns supreme to many immigrants. And immigrants often send money back home (in cash) to their country to support the parents, families and children they've left behind. Thus, they need services that could facilitate this transfer of money. Being an immigrant myself, I know this for a fact (though I don't use Western Union because of the fees :o).

The good news for Western Union is that this market has long been ignored by most banks and businesses. And the results showed that they were right. Way back in 2003, the company earned $3 billion in fees on cash transfers and the market continued to grow as the company posted transaction growth in the international business of about 23% in the Q4 of 2006. Western Union had became a trusted household name among foreigners.

So what lesson can this give us small businesses? If you want room to grow, look for a market or a niche that is largely untapped by the industry and your competitors. Western Union found that among the foreign born workers. It may be an offbeat market, or even an unglamorous market, but see its growth potential. If the market seems to be getting bigger and stronger, then capitalize on that market. Be different, and serve that market really well and your business can find its way on the road to success.

You can find the complete article on Western Union at Business 2.0 archives

How to Use YouTube to Market Your Business

Online Media Daily has an interesting article on how to use YouTube (which the article describes as the "Holy Grail" nowadays) to market your business. The article lists some strategies:

• Always go entertainment over brand.
• Make it feel low budget. The higher quality the less the video tends to spread.
• Find something that's already accepted and back your brand into it.
• Make it feel chaotic.
• Keep it loose.
• Be brave.
• For smaller brands, engage the audiences by answering the comments made on your video
  
  

The Challenge of Getting Traffic to Your Website

Getting traffic for established sites is hard; and the challenge becomes infinitely tougher for new websites.

One of the commonly used way to generate traffic nowadays is to use pay per click advertising in the search engines. Unfortunately, pay per click advertising is not only costly, but rife with fraud as well. According to investigative search firm Click Forensics , the industry average click fraud rate was 14.8% for the first three months of 2007!

That's a pretty high rate, especially for a small and home-based business. Imagine if you've got only $1,000 to spend a month on pay per click, and you get hit by click fraud at this average rate, then it means that $148 of your budget goes down the drain. Sure the search engine companies are working to combat click fraud; unfortunately the fraudsters are always a step ahead of them. You may want to read Google's case study of a botnet they faced last year and how they were able to catch it in the paper "Anatomy of Clickbot.A"

Many search engine marketing companies are starting to say that pay per click is becoming a waste of resources, and enough of a reason for small businesses to consider other ways to get traffic.

In my opinion, getting good rankings in the organic listing of search engines is still the best way to get traffic. Sure, there's the ups and downs of search engine rankings where one day you're at the top and then the next you're gone, but its zero-to-low cost is still the strategy to beat.

You may also consider the low-cost traffic building strategies I outlined in the article "Free Ways to Promote an Online Business."

Tips on Advertising Your Business

We recently had an issue with an advertiser regarding the creative for their text link. He wanted to use the phrase "Cool links" for their text ad. We told him that our audiences are not likely to respond to that text ad, but he insisted. True enough, his ad hardly got any clickthrough at all -- our audiences are typically looking for ways to make money, and they are not looking for "cool links."

When you advertise, whether you are using a banner, text ad or print campaign, you have to remember that your creative must meet 3 important checks:

• It must meet the readers or visitors needs
• It must generate a response
• It must have an immediate impact

The ad in the example I gave failed the first check in that our readers are not looking for "cool links" which is too vague and too sketchy (how do you define cool links -- it can be pictures of Angelina Jolie for one person or a funny video in YouTube for another person). Hence, the ad failed to generate a response and had no immediate impact.

The real success of an advertising campaign is based on action, so carefully craft your creative to generate the most response from your target audiences.

Common Mistakes to Avoid When Freelancing

I know a lot of folks who are into freelancing -- web designers, graphic artists, writers and others. They are all self employed who enjoy being their own boss and the freedom associated with being a freelancer. The flipside, though, is that I'm also privy to the mistakes they often make in managing their freelancing careers.

If you want to freelance, here are common mistakes to avoid:

• Over-reliance on one client. When you find a great company to work for that pays well, often you stop looking for other clients. Afterall, you already have a great account so why bother embarking on marketing and bidding again? Alas, this attitude is very risky. Freelancing is a volatile occupation; and even with a contract, companies can let go of freelancers. A company downsizing for example would first fire their freelancers compared to their employees. It is always best not to put all your eggs in one basket, and get a variety of clients.
  
• Failing to Account for the Ups and Downs of Self Employment. When you are freelancing, you need to be prepared for the roller coaster ride of self employment: some months you may have several clients, and some months you may find it hard winning any accounts. That is simply the nature of freelancing. You need to prepare for the lean times and make sure that you have income buffer to ride out those difficult times.
  
• Forgetting the business side of being self employed. You may focus too much on the technical side of your occupation ensuring that you deliver high quality products that your clients expect. However, don't forget the management aspects of being a freelancer, and that involves billing, collection, record keeping, tax paying, even marketing your services to other clients. Dedicate a certain percentage during the day to administrative and marketing tasks, or hire professionals to help you manage these tasks.

Targeting the Real Estate Agents Market for Your Small Business

The April 2007 issue of Target Marketing magazine has a great article on how to reach the real estate agent market. Realtors are real estate professionals who are members of the National Association of Realtors.

According to the article, the real estate agents comprise a "large market that purchases a wide variety of products and servIces and influences other prospective customers on a daily basis." Having just bought a house, I can attest to this statement -- as I have come to rely on my real estate agent for her recommendation from vendors to interior decorators to painters.

What are the factors that make the real estate agents a ripe market for businesses?

• According to the list management and brokerage firm Mal Dunn Associates, there are more than 1.3 million realtors in the US
• They are typically independent professionals and manages their own business and as such, buy products and services for themselves, their businesses and even their clients
• They are in a position to recommend products and services to clients who are in a buying mood
• They typically run their businesses from their homes, and their home offices often have all the necessary equipment and supplies particularly Internet connections
• According to the National Association of Realtors, the median income for realtors in 2004 and 2005 was $49,300

If you are a business that sells specifically to the real estate market, then the real estate agents are a key part of your target audience. However, even if you sell anywhere, you can also target this huge market. So what do realtors buy and how to reach them?

• Real estate agents are constantly on the move, so mobile products such as cell phones and PDAs are their necessities
• They also buy computers, office furnitures and office supplies
• They are in contact with buyers and sellers looking for products and services such as appliances, furniture, decor, and other home improvement products

If the real estate market interests you, I suggest you read the complete article at Target Marketing

4 Step Process to Problem Solving

I just received a copy of the book "Ignited: Managers! Light Up Your Company and Career for More Power More Purpose and More Success" by Vince Thompson, and it is full of great tips on how to run and manage an organization.

While the book's orientation is geared towards the corporate employee, business owners have a great deal to learn from it. We've published an excerpt from the book where the author talked of the difficulties and realities of time management in the article "The Problem with Time Management"

One of the sections I like is that of problem solving. As a business owner, you will constantly be faced with problems, and the author recommends the following four-step process:

1. Define the problem = Start with a thorough information gathering process by speaking to all people involved. If your biggest customer complains that your product is starting to fail, for example, talk to the customer to learn exactly where the problem lies. Using the information you get, analyze your product to see what ways you can rectify the problem and improve your product

2. Explore the costs of failure = In connection with the problem, what exactly will failure mean? List down what this problem would really mean for your business, including financial costs, how this affects your relationship with customers as well as any partnerships. Using the example above, if your biggest customer pulls out their account, will your business survive? How will it affect your cash flow and revenues? Understanding the impact of a problem and knowing the worst case scenario can push you to act on it fast.

3. Explore the benefits of success = From viewing the negative, now see the flip side: what will happen if you successfully resolve the problem? Will your biggest customer keep their account with you? Will you be able to expand your product line if this issue is resolved? The author explains that

"Success is why we work, but without an examination and vision of success our work has less meaning. This is especially crucial during tough times."

4. Outline the solution = List the specific steps that need to be taken to solve the problem. This is the most important step in the problem solving process, and don't be afraid if you think you need help to determine the best course of action.

5 Trends in Online Retailing Small Businesses Should Consider

If you are selling online, here are trends you need to look out for:

1. Using videos to generate online sales = The increasing use of broadband has significantly expanded the use of videos and rich media. The key now is to think how to use these formats to increase sales in your website. Video sites such as YouTube attract gargantuan traffic and could be used to increase brand awareness, and ultimately drive sales. One way videos can be used to boost sales is through the creation of product demonstrations. Marketing Sherpa has written a great article on how to create online videos for your products.

2. Using social networks to boost sales = Social networking sites such as MySpace generate tremendous traffic, including your very own target audience. Study how the big and other innovative small businesses are creating personal profiles in MySpace and similar sites and using these to drive traffic and sales to their websites.

3. Using product reviews to create more loyal customers = Amazon has made product reviews an important tool of online selling, and big sites such as Overstock.com and others are using the same technique. In a study published by Foresee Results in January 2007, they found that "shoppers on sites with customer product reviews were 5% more likely to buy online, 5% more likely to buy from the retailer the next holiday season, and 4% more likely to purchase from the retailer the next time they are in the market for similar merchandise."

4. Increasing importance of multichannel marketing = This is an area where the big boys can sufficiently harness to further their brand and reach. Customers can order at CircuitCity.com and pick up the items from the nearest Circuit City store. Customers can buy from Gap.com and return the items in their nearest Gap stores. The key is integration of the different sales mediums. There are a lot of small businesses that operate catalogs and online stores or physical and online stores -- and they need to enhance the synergies between these mediums.

5. Growing mobile commerce. Using cellphones to buy items online may still be in its infancy in the United States, but it is happening elsewhere such as Japan. While there may still be a lot of technical hurdles to overcome, tapping the phones and turning them into a sales machine is something that small businesses need to look into, and how to get in on the game.

Importance of Good Bookkeeping

The tax deadline is almost upon us and I hope that most of you have completed, if not submitted your tax documents.

In talking to other entrepreneurs, tax time is either made easy or unbearable by quality of their bookkeeping. Some have it great with their accountants who do everything for them. However, many more do their accounting and tax work by themselves -- and some are pretty diligent about it and do it regularly; while others do it only before April 15 rushing to find all their receipts and listing their expenses and income. I know of many home-based entrepreneurs who don't even know how much they make in a month except what they see in their bank account!

If you will do it yourself, you need to have a system that you will work most for you.

It can be as simple as using a software such as Quicken or Quickbooks. Or it could be as easy as an Excel spreadsheet. You can also use a paper system such as any of the bookkeeping books sold in your favorite office supplies store.

Someone recently gave me a copy of the Tax Minimiser system. which is a paper based daily planner system designed specifically for keeping track of your business expenses and income. I haven't used it yet, but it seems that it is a simple enough system that even non-accountants can understand. I am hopeless with accounting and I don't even want to understand how Quickbooks work, so I am looking forward to checking out this paper based system.

Bookkeeping is one of the necessary constants in doing business -- whether you hate or love it, you have to do it.

Getting to Know You

When creating a website, one of the very first things you need to decide is what will you put in your About Us page. Should you present a more personal approach where you tell visitors who you are and how you started the business? Or should you present a more corporate facade that sounds so businesslike and professional, without revealing anything about yourself?

I don't think there's a right or wrong approach.

The more personal approach of presenting the life story of the business founder or a detailed description of how the business came about can be a great human interest story. More so if you really have an interesting story to tell, or your business has already achieved some sort of success. In fact, I've interviewed several folks and written about them both here at PowerHomeBiz.com and at WomenHomeBusiness.com because I was fascinated by their story in their About Us page. However, I'm turned off by those people who praise themselves to the highest heavens in their About Us page (e.g. "I did this, I did that, I am so great hear me roar")

On the other hand, the more businesslike approach that tells the readers what the business is all about and what the business stands for can also be a good choice for some. While not presenting a single figure visitors can identify with (typically the founder), the prospective customers and readers get a feel for the business and what it represents. This approach is also good if you want to project a bigger image for your business hiding the fact that this is a one-person business (not that there's anything wrong with that, but some find it easier to get more business if they project a bigger size).

The key to remember is that customers or visitors want to have an idea of who they are dealing with. Whether you write a brief entry or a kilometric story, your visitors want to know that they are dealing with real people who are not out to dupe or scam them. By sharing even a little of yourself and what the business is all about, you are able to bring in the needed trust from your visitors.

The Second Life Phenomenon

One of the fastest growing online communities nowadays is the virtual world of Second Life http://www.secondlife.com . It is a 3D world where you can literally live a second life (hence the name), where you create an avatar, adopt a new name, develop your own personality, and even embark on an entrepreneurial journey!

Many big companies are already setting up shop and presence in Second Life. IBM has already acquired 24 Second Life "islands" while Toyota, Dell, Reuters, Starwood Hotels, American Apparel, General Motors and several others also have their presence in this virtual world.

But the biggest news coming from Second Life is the success story of Anche Chung (a German whose real name is Ailin Graef). Graef is the first Second Life entrepreneur who have made more than $1 million virtual real-estate dealings. Imagine that -- more than a million for something virtual (it's not even real land!)

In Second Life, the members (or avatars) can buy and sell items using Linden dollars (named after the founder). Linden dollars are easily traded for U.S. dollars at an official currency site. Plus, players retain the copyright for their in-game creations. So if you design clothes in Second Life, you have the copyright for all your creations.

Sounds crazy? Maybe. But people are drawn to this virtual world in droves. The site even has a list of possible businesses that you can start, which include:

• Party and wedding planner
• Pet manufacturer
• Tattooist
• Automotive manufacturer
• Fashion designer
• Custom avatar designer
• Jewelry maker
• Architect
• XML coder
• Freelance scripter
• Game developer
• Tour guide
• Real estate speculator
• Publicist

Check it out. Me, I can't even make my avatar walk straight let alone get out of the orientation island. It will take me a while to be able to start any of the businesses, or even earn a Linden dollar. But it looks like fun

Free Educational Stuff for Home Business Entrepreneurs

Just want to share with you folks invites that arrived in my inbox that are worth looking into:

• Free subscription (digital version) to the Small Business Technology Magazine
• Free Webinar: China Logistics = for those of you who wish to expand to China or wish to tap the Chinese market). This webinar, to be held on April 17, will focus on the current market outlook, government regulations and opportunities for U.S. companies in two key areas relating to the China marketplace
• Free Webinar: Is There a Doctor in the House? How to Breathe New Life Into Your Under-Performing Customer Acquisition Programs = topics to be covered include tips on how to run a quick damage assessment on why a campaign is under-performing; how to change your offer strategy, among other things. This one's on May 10 at 2 p.m. EST and sponsored by Target Marketing

Enjoy!

Is Your Business Successful? Replicate It!

This is an interesting problem to have: what if your business is such a success that you need new territories to explore and replicate the business in another geographical location?

One option is to franchise your business. By franchising, you get to widen the reach of your business without you shouldering the expenses for it.

However, to be able to succeed in franchising you must first be able to show that

• Your business has a track record of success over time
• You must prove that you have a proven concept that works
• You must have a business that offers something unique
• You must make sure that your business is replicable and can be taught to others
• Your business must be profitable

The last point is very important. Afterall, if you franchise your business, you will require your franchisee to pay you royalty fees anywhere from 15 to 20 percent. For a franchisee to be able to pay you the royalty fees -- and actually earn over and beyond the fees -- your business should provide returns more than those percentages. Otherwise, no one will buy your franchise and your existing franchisees will be very unhappy.

It is important that you prepare a plan on expansion and how you are going to go about it. If franchising is the option you decide, you need to have proper legal documentation, which means franchise contract, an offering circular and state registrations.

The process of franchising will pose different challenges and many small businesses get the help of franchising consultants to help them do this. You need to find a good franchise lawyer to help draw up your plans. Also network with franchise organizations such as International Franchise Associations

If you don't want to franchise, you have the option of doing everything yourself. The pro of course is that you have total control over everything. The con is that you will need to invest time and resources to get everything going in another location, plus you will need to hire employees (manager to staff) to do everything for you.

Another option would be to find a strategic partner who will carry out your business for you in the new location. The partner do the work for you and you give the partner a commission.

Let me know of other expansion options that have worked for you.

Is There a Right Personality for Entrepreneurship?

Someone asked a question today on whether there are personality types that are not suited for entrepreneurship. Immediately, one can rattle off some characteristics that may not suit an ideal entrepreneur and these are:

• Those who are better off following directions, instead of creating their directions
• Those who are too risk averse and loves/needs the security of a salaried life
• Those who have problems seeing through to what they started
• Those who have no long term vision of what they want to accomplish
• Those who cannot handle the pressure of trying to make it on their own
• Does not persevere and immediately gets discouraged
• Lack of drive to accumulate wealth and earn more than working for others
• Lack of specialized business ability or skills that can be translated into a successful business

However, I am curious as to what empirical studies have noted. There's a new study by the Florida International University that looked at 830 entrepreneurs over four years to see which characteristics result in failure or success of the business. They looked at 130 different independent variables such as education, prior exposure to entrepreneurship, social outlook, among others and most of them don't seem to make a difference! MiamiHerald.com has a story on the study (unfortunately, I can't find any link to the study from the FIU website)