How to Build Your Elevator Pitch

Can you describe your business in 3 minutes or less? Imagine a situation where you meet a potential investor on the elevator, and you have only 3 floors to go. During that short elevator ride, you need to be able to win over the potential investor.

Called an "elevator pitch," it is a quick and concise way to communicate who you are, what you do, and why you do it better. It is a way to present your business and win people over in just a short period of time.


The new book "The IT Factor: Be the One People Like, Listen to, and Remember" by Mark Wiskup (Amacom: June 26, 2007) offers four tips on how to perfect your elevator pitch:

1. Describe your business using non-jargon terms. Work hard to speak plainl;y and without jargon in the first sentence, and you will have them listening to you. If you rely on jargon to describe your business, no one will take notice of you -- you'll be just another guy in the industry.

2. Focus on your customers. Now that you've told the listener what your business is, immediately move on to how you serve your customers. Describe specifically what you do for your clients in plain and distinct language. Avoid vague, self-congratulatory maxims that sound familiar and safe -- these phrases are meaningless.

3. Focus on overcoming challenges your clients are facing. Here's where you can really shine. Launch into a single, highly specific issue or problem with which you helped a single customer. Nobody riding in the elevator with you wants to know everything your company does! By sharing a single interesting story, you can give them something to remember you by.

4. Focus on a happy customer ending. Make sure your story has a happy ending for the customer. When you describe a single problem that your product or service resolved for a client, you are telling your listener that you are worth the investment others make in you. It gives you instant credibility.

Article Roundup: Marketing Your Business

Here are some very informative articles I've read this week on various aspects of marketing your business:

• The Secret of Sending Press Releases
• How Can Online Communities Yield Product Sales Results?
• Putting the URL back in Google indexes
• Three factors determine your online success

How to Prepare Yourself from Being Employed to Business Owner

If you are tired of being an employee and want to start your own business, here are some steps to help you transition:

1. Start by thinking and deciding what you really want to do, whether you want the comfort of a regular paycheck or the risk but excitement of entrepreneurship. And then pursue it.

2. Decide what business you want to do. There are different approaches:

• start a business based on what you are doing in your career (if you work as a web designer with a company, you decide to embark on a web design business on your own)
• start a business that highlights your interests such as pursuing hobbies and turning it into a business
• start a business where you see good opportunities, even if totally different from your career or something that you have never pursued before

3. Start researching about the business. Whether you will actually prepare a business plan or not, think of the following

• how does this business actually works
• what is the demand for this business
• who are the customers of this business
• what are needed to start and successfully run this business
• what are the cost elements of this business
• how much do you need to start this business
• what do you need to acquire to start and run this business in terms of skills and knowledge

4. Start looking at the resources needed for your business

• knowing how much this business entails, do you have the funds for this business
• if not, where will you get it
• what are your chances for getting this money (e.g. if you are going to apply for a bank loan, do you have some equity of your own as well as collateral and do you have good credit?)
• do you know any investor to help you fund the business, or even how to look for investors
• if you cannot raise the funds, what are your alternatives and back up plan (e.g. are you going to downscale the business, or will you postpone starting it)

5. Decide on how you want to pursue the business. Will you

• quit your job immediately and start working on the business?
• will you continue your job while starting on the business during weekends and your spare time?
• will you reduce your work hours at your job in order to devote more time to jumpstarting the business?
• will you hire someone to help you do initial legwork for the business?

6. Involve your family in your decision making

• if you quit your job, do you have insurance or are you prepared to buy self employment insurance for yourself and your family
• do you have saved money that can tide yourself and your family for at least 6 months
• 1 year in the event that the business will not yield the income you expected
• if you need additional manpower, can you rely on your family members to help you

Resources on Starting a Greeting Card Business

There is a lot of interest in starting a greeting card business, whether designing the cards, writing quotes, or publishing greeting cards. At PowerHomeBiz.com, we receive several questions on how to start a greeting card business every week.

There are two resources that I highly recommend for those who wish to start a greeting card business:

• Greeting Card Association which is the trade organization of the greeting card and stationary publishers. They have a very informative artist guidelines as well as writers guidelines. They also sell publications, including listings of sales representatives and distributors in the industry -- which is a critical resource for all those who want to start this type of business. The website also lists a directory of greeting card publishers that those who wish to create greeting cards can contact
  
• Greetings Etc. magazine is the trade publication of the Greeting Card Association. This magazine is the bible of the industry players in the greeting card business. The magazine contains information on the trends of the industry, tips to marketing your business, artistic and creative tips for creating cards, and many more. They also publish an annual Buyers Guide, which is a must-have of every greeting card business owners.

Ten Ways to Get Started on Your Own Home Business

I updated and expanded an old article I wrote on the various ways to start a home business.

The article looks at how an ordinary person can start an entrepreneurial venture -- a cash-strapped would-be entrepreneur, a corporate employee looking to be their own boss, and someone willing to go on a slow-but-sure route to success. The reality is that many home business entrepreneurs will never find investors to help jumpstart their business. So if they do decide to start a business, the business will have to conform around the present condition of their lives.

Starting a busines is never easy; but it is also not that impossible. Read the article Ten Ways to Get Started on Your Own Home Business

What Makes a Good Service Business Web Site?

The Web has become a very important marketing and commercial tool in recent years. Though there are still many small business owners whose businesses are offline -- e.g. landscape designer, house cleaners, etc. -- that still need convincing with regards to having a presence on the Web. Since their businesses do not involve the Internet, they don't see the point of spending resources creating their own websites.

They couldn't be more wrong. The Web can help boost the ability of businesses, even those operating offline, to reach their target customers.

If you are a service business owner and looking to create a presence on the Web, the first step is to clarify what you want your website to do and who your customers are. Will your website act as a brochure that's easily available to people on the Web? Will it serve as your way to communicate with your customers?

Here are things you need to consider to create a good service business website:

1. Your web site needs to contain all the information about your business

• what services do you provide
• why should they go to you instead of your competitors: give a list of BENEFITS you can provide to the customer
• who are you
• where are you located
• what is your pricing or if you choose not to post your pricing, how can the visitor get information on your pricing

2. Your website must be able to elicit the trust of your visitors

• clear way to contact you preferably with a toll free phone number
• your picture or that of your staff so visitors will know that you are a real person
• testimonials from previous clients

3. Provide an easy way to order your services

• think of the best way you can best provide services, considering that most of your services may be local
• for existing clients, how can they use the website to contact you?

4. Your website must be functioning optimally

• good and simple web design
• fast loading time
• well optimized for the search engines
• easy to navigate

The Makings of a Viral Video

With YouTube all the rage these days, you can't help but be impressed and a little bit jealous of videos designed to promote products getting watched by over 1 million people. Marketers talk of the "viral" success of these videos. That's free advertising that cannot be ignored!

But how exactly do you create a "viral" video to market a product?

Well, apparently through clever strategizing and hard work, according to Josh Warner, president of The Feed Company who has been responsible for the video hits Ray-Ban's "Catch" (in which sunglasses are tossed at a man who catches them on his face) and General Motors' "Robot". And here I was thinking that it was all luck :o)

Read how Warner pushes his clients' videos to viral marketing success.

Thinking of a Freebie Giveaway? Consider a Guidebook

Half of the year is almost over, and it is that time again to think of giveaways and freebies for your customers, subscribers and visitors. Instead of giving them a tshirt, keychain or pens (again), why don't you prepare a short guidebook or booklet that offers tips? This is the advice of Jonathan Kranz in his brief article in the newest edition of Direct Magazine.

According to Kranz, a "reader-friendly 14-to-24-page booklets offering advice and recommendations -- can turn the freebie into another channel for your company's integrated marketing effort."

For this to work and you to come up with a booklet that will be appreciated by your customers, you need to:

• Come up with ideas of what to write. One great content would be to list down your recent customer success stories -- if you are a search engine specialist, think of clients who saw significant improvement in their traffic after using your services. List why these clients became a success.
• Use the power of numbers. For some reason, people respond to numbers -- e.g. "10 Secrets to Success;" "30 Tips to Improving Your Web Site Traffic"
• Make your content look interesting. Don't write an essay. Break your ideas into digestible pieces, with customer testimonials thrown in between.
• Conclude with a strong call to action. Ever notice that those white papers companies often publish are merely a less subtle form of advertisement? Well, this booklet has the same goal -- to provide information to customers while at the same time reminding them of what you can do to help them.

Resource for Inventors: How to Avoid Invention Scams

The United Inventors Association , a non-profit formed in 1990 to educate new inventors, has a great section on Red Flag Warnings that new inventors must heed to avoid being scammed. I've heard of so many horror stories of inventors taken for a ride, some even losing significant amounts of money and even their creation, because of these scam artists.

UIA has articles on:

• Must readings for novice inventors
• How does the invention scam work
• Articles on invention promotion company

How to Get Your Products to the Market: Dealing with Buyers

Whether you are an inventor or a clothing designer, you need an outlet for your products whether it is the retail store across the street or Bloomingdale's. Of course, the bigger the store, the greater the chances for success.

But the problem is: how do you get your products into the shelves of these retailers? You basically have two options: get the know the CORRECT buyer for each store you want your products to be sold; or hire a distributor or manufacturer's representative to do the pitching job for you. A sales rep is often the easiest route because they already know the buyers of these big stores, they have an established relationship with the buyers, and they know the type of information and paperwork the buyers require.

If you are going to do it yourself, here are some tips:

1. Know the retailer. Before even talking to the store buyers, research the store and why they will benefit from having your products on their shelves (it's a two way thing: you win when they win). Check if your target audience for the product shops in that store. Find out if the retailer is selling products similar to yours; if if they do, what are the advantages of your products over the current offerings.

2. Understand that buyers of big companies and mass retailers are often hesitant and wary in dealing with new suppliers with unproven track records. They don't know you and your products, and whether you will be a good fit for the store. In fact, most buyers prefer to deal with sales reps.

3. Anticipate the concerns and questions of the buyer. You need to do your homework well before your meeting with the buyer, and this includes having proof that your products are ready for the primetime. Buyers will want to know:

• that the product is finished, including packaging
• who else will be selling the product
• whether you have to resources to supply their store
• whether you can meet the demand for your product if it sells well
• whether you have adequate product liability insurance
• whether your product comply with safety, legal, labor and other regulations (imagine the horror of the buyer if he/she approves your products and it turns out your products are produced in a sweat shop!)

4. Use tradeshows. One of the easiest and best ways to attract the attention of buyers is through tradeshows. Make every effort to participate and showcase your products in the best and biggest tradeshows in your industry. Buyers prowl these tradeshows looking for new and interesting products -- and they just might see yours!

I will write more on this topic and give you more tips!

Internet Marketing Glossary of Terms

OneUpWeb.com has published two guides that provide a comprehensive glossary of terms to two aspects of internet marketing -- search engine optimization and social marketing. They compiled and defined all the terms used, and the reports can be very illuminating if you want to learn more about these internet marketing components.

The two reports are:

• SEO Survival Guide (26 pages)
• Social Media Survival Guide (14 pages)

How to Use Videos to Boost Your Ecommerce Sales

There's no doubt that online videos are growing in popularity, led by the video sharing site YouTube. The key question for website owners and marketers, particularly those selling online, is: how do we use videos to boost sales of our website?

I suggest you read our newest article "How to Use Video and Rich Media to Drive Online Sales and Loyalty" for ideas on how online videos can be used to improve conversion and sales. The article also discusses how other sites, mostly the big boys, use these videos on their websites. The article also provides some tips on how you can leverage YouTube to market your products.

Money Saving Tip: Sell or Upgrade Your Office Equipment

If you need to dispose some of your office equipment items and don't want the hassle of selling these items in Craigslist.com or eBay.com, check out NextWorth.com http://www.nextworth.com .

NextWorth.com accepts various items such as Ipods (they're actually very big on Ipod and focuses mostly on this item), cameras, laptops, computer, networking equipment, PDAs and blackberrys, audio and video equipment even art items. The site has an online calculator that can help you assess the value of your items. You can use the calculator, or contact them directly. Once your items are approved, the company will send you a prepaid box to send your items and NextWorth.com will send you the check in about 2 weeks.

If you are in the market for second hand equipment, NextWorth.com sells the items they bought from others so you may want to check that out as well.

How to Earn from Your E-Newsletters

Newsletters are a popular and profitable way of increasing your advertising revenues. Aside from your main website, newsletters offer advertisers a different opportunity of reaching your target audience.

To create a profitable newsletter, you need to think through three important elements:

• What is the editorial content of your newsletter?
• Who is your target audience and what is your target circulation?
• Who are your potential advertisers?

The first step is to think of your audience -- who they are, what do they need, and how you can engage them. You need to think of what type of content they would most want to receive from you and the frequency they will receive it. It is also important to think how your newsletter will be different from your print or online publication: will the newsletter have an all-original content that will not be found in your website; or will it merely announce the latest on your website?

If you want to utilize your newsletters as an advertising source, you goal is to have an engaged readership as these are the people who are more likely to be more interested in the products featured in your newsletter and click on the ads.

The next step is to think of what advertisers would want and what type of information you can give to convince them that your newsletter is the right advertising vehicle for them. Typically, advertisers will want to see the following metrics initially:

• Reach - how many subscribers are receiving your newsletter?
• Demographics - who are these subscribers and whether you have any profile of them?
• Response - what is your deliverability, open and click through rates?

After buying an ad space with you, advertisers will now turn their focus on conversion rates and how the leads gathered from your newsletter are developing for them.

Turning your newsletter into a cash cow is not a simple task -- it requires a lot of thought and planning. But a newsletter that delivers what the subscribers want and what the advertisers want is a winning combination that can lead to a healthier bottom line.

Borrowing Startup Capital from the Bank: What to Ask Your Banker

If you are thinking of getting a business loan from a bank, it is always best to request for an appointment with the loan officer or bank manager and ask about their criteria for giving loans. The more informed you are of what they want and what they are looking for in a loan application, you can boost your chances in getting that much needed loan.

Here are some questions you need to ask your banker:

• What do you need to see and what do you want me to give you to increase my chances of getting the loan? What are the most important factors I need to show to qualify for the business loan?
  
• What have been your experiences in lending to this industry? Is this an industry you consider to be too high risk? Many conservative banks still look at home business (more so if home business online) to be too high risk that they will not lend to this sector -- which means your chances are already very slim.
  
• What types of collateral do you want me to provide? What assets do I need to show? What if I don't have any collateral?
  
• What do you want to see in my business plan? How detailed do you want me to be in the business plan? (some bankers will just read the executive summary)
  
• What are your loan products and can you provide and compare their features? Which loan product would be best suited for my situation?
  
• Ask this if you have no management experience or experience in running a restaurant before -- How important is having prior experience in the industry? Would it help if I bring into my management team more experienced people than myself to help me run the business?

I suggest you read the articles Twelve Tips for Getting Your Bank Loan Approved and Thinking of Getting a Bank Loan? Do Your Homework First! to help improve your chances in getting that business loan from the bank

How to Succeed in Network Marketing

We have never really focused on network marketing here at PowerHomeBiz. But according to the Direct Selling Association, 54 million entrepreneurs worldwide are involved in network marketing, otherwise known as direct selling and multi-level marketing. In the US alone, about 175,000 people start a network marketing business every week.

If you are involved in network marketing or thinking of going to this route, I suggest you get a copy of the newly released book "Be a Network Marketing Superstar" by Mary Christensen. It is is full of tips on how you can succeed in this increasingly competitive space.

According to the author, there are six core skills you need to be a network marketing superstar:

1. Scheduling. Your planner is key to your business -- you need to see it full of bookings and appointments. Otherwise, your business is in jeopardy.

2. Selling. Of course in this business, your income will depend on how much product you and your recruits sell.

3. Recruiting. This is a critical skill you need to master, as you cannot succeed until you learn to promote your business effectively and recruit the right people.

4. Building Relationships. This is just about the 80-20 principle that says that 80 percent of your business comes from 20 percent of your customers. It is hard to find new customers so you need to make sure that you can maximize the revenues from your customers.

5. Mentoring. Your success depends on the success of people you recruit - and that means you need to give your recruits quality support and training they need.

6. Managing. As your business grows, you need to learn to juggle several things at once and make various decisions. You need to have the right management skills to succeed in network marketing