by: Charen Smith

Know thy enemies.

Keep your friends close; your enemies closer.

Get to know your competition.

Ever heard of these principles? One writer/philosopher once said that in order for you to be competitive and even rise above the pack, you need to know your competition and what they’re doing to be different. When you do, you’ll surely be able to create tactics that will make you stand out and hence, make a difference in your market share.

I suppose you think that the business community is very hard to be a part of because you’re always competing and trying to outdo each other.

Believe it or not, business is not about that. On the contrary, it’s not a blood bath all the time. In fact, business owners and marketers do it in a more classy and comfortable arena where they often work together to make their community work.

But no doubt about it, competition is present. And the best way to differentiate yourself from the rest is an analysis of what your competition is doing to become successful. Here’s what you should know when spying for your marketing research:

Step 1: Be a detective.

Competitive analysis is all about gathering the tools and materials your competitors have to market their products and services. Examine their features, the design, and even the commercial color printing method used to come up with an effective marketing campaign. One marketer even suggested shopping and purchasing from your competitors to learn and experience what it feels like to buy from them.

Step 2: Identify and analyze even those you feel are competitors.

Chances are you’re right. Even in the most unlikely places, you might just be surprised that a competition is present. So be on the lookout for marketing tools and materials of any businesses that you perceive to be providing the same services as you do.

Step 3: Analyze the message.

After you’ve collected the materials, focus on the message of your competitors. What are their promises? Do they have anything different to offer? Do we have anything in common? What formats did they use? Is the design effective? What seems to be the best marketing tool in all that you’ve collected?

Step 4: How can you be unique?

Finally, after gathering all the information from your competitors’ marketing materials and tools, it’s now time for you to create your own marketing campaign that would reflect something unique and compelling in your offer. When you do find your answers, be sure to include every factor that can contribute to your success - your products and services, your operating method, your unique company qualities and customer service attitude, your values, etc. Whatever you learned from your competitive analysis can definitely help you create a remarkable tool that would be able to sell to your target clients.

By Terry Hill

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline. This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.
• Protect assets.
• Reduce costs.
• Improve efficiencies.
• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.
• Focus on what YOU can control… Don’t let the media’s rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.
• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.
• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business’ survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.
2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.
3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.
4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers’ buying history and frequency of purchases can reveal some interesting facts about your customers’ buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.
5. Re-negotiate with your suppliers, lenders, and landlord:

   i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

   ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with “the how” and “the when” of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

   iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.
7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over
   insured.
8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced “noise” and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.
9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.
10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

by: Rodney Ringler

The internet has revolutionized business all around the globe. Almost every competent new or existing business wishes to exploit the incredible potential of the internet, and the first step is to have a web site designed done and maintained by a professional web site design service or build and maintain it yourself. One of the first things to consider is your computer ability. If you despise computers and software and find them confusing and frustrating then building your own website can be quite a task. One that you may not want to undertake. However, if you enjoy working with computers and learning new things or if you just have the patience to stick with it, then building a website is within your grasp. You may also decide to do it yourself to save cost. If you still feel that you want to build your own site you should choose software that is easy to use and user friendly.

Your website should be as unique as you and your business. You should select the website that is specialized in what will meet all your needs, both now and in the future. Custom based websites are for those who already have a website but are looking for those special finishing touches that quality custom graphics can provide. Designer graphics can make your website stand out above the rest and a custom website specializes in taking your original graphic or photo and turning it into a unique work of art. Quality graphics make an incredible difference in the visual appeal of your website.

Actual site “content” continues to be essential to the success of a website. More often than not though, visual appeal is the determining factor as to whether or not a client or customer will remain on a website long enough, to actually see the product or service the business is providing. Custom websites are for those who don’t have the time to design or create, but want to get things mush better and fast with a nice graphics.

Web site builders are online tools which anyone can use to build a professional looking Web site without programming and have it hosted instantly. No software to buy, no code to learn, all you need is to be a little Internet savvy and know how to click your mouse.

Most business owners today know that having a web site is an essential component of marketing. In the past, the choices were to hire a professional web designer, hire a local teenager to create a site for mall money, or learn to do it yourself. The last two options, are the least expensive, and were the preferred method for small businesses. The results are often not what businesses need to grow, reach, and impress new potential customers, however. They seem good at the start but quickly become limiting.

If you operate or manage a business, you surely must realize the increase in e-commerce taking place today. Many businesses find themselves searching for the best way to increase their exposure on the internet, and for most a website is the first course of action. As most businesses operate on firm budgets, finding cost effective solutions are usually one of the first thoughts when looking to make new purchases. When it comes to creating a website there are many affordable software programs that can produce professional results. Business software should be capable of handling your needs today and in the future. Business are always changing, adding new products, changing or removing old products, offering specials, having sales, etc. By choosing a business website builder over a professional web designer you will be able to make changes to your website whenever you want to. Another benefit is that you will be avoiding the high costs associated with developing the website and costs for making any necessary changes.

Website Builder tools advantages to you are increased revenue, cost control, caters to the large demand existing for web designing in the SME sector and can increase the client base without adding to your overhead. The advantage that your customers gets is a professional quality website, up and running in minutes and a User friendly and easily customizable interfaces that gives a complete website with all its frills and features and a nice attractive design. The downside is that you are limited to the look and functions of the tool and the templates or designs they provide.

On of the advantage of a custom website design is that the web site will look and function exactly as you want. A custom made web site can promote your brand and increase sales. The functionality and design of your website is important, because the images and text on the screen can make an indifferent visitor turn into a keen client, and the goal is to optimize your site to evolve maximum traffic conversion.

As more and more people are starting their own small home business many are finding that having a website is an important factor to consider. When one starts to consider building a website, especially the novice, many questions arise including…. can I create a website myself or should I hire a professional?

Hiring a professional is a great way to go if you can afford it. Although there are several things to keep in mind: how much will it cost? How much will ongoing maintenance cost? What will changes cost? How long will changes take? etc. As a result, many people opt to build their own website and begin searching for software that can easily help them.

As you start searching for an easy web site builder, there are some factors that you should take into consideration so that your new software will serve you now and the future.

There is quite a variety of easy web site building software and content management(CMS) based websites on the market today. In addition, some of the software available today is very expensive, geared more for the professional web designer, and come with a huge learning curve.

The options for small businesses to get a site developed have changed from the past. There are now sophisticated “site builder” tools available to small business owners, bundled with many web hosting packages. By using templates, and a content management system to manage updates to the site, it became easier to set up and maintain a web site, and many development companies have canned this functionality, for a fee. Hosting providers are increasingly offering tools to automate the web site building process, and with good reason. This new option has many benefits, as long as the business owner recognizes that there are trade offs and limitations to getting a web site this way. Some of the downsides are…the design is limited to their predefined templates. The functionality is limited to the tool. Also, in most website builder tools it is hard to perform search engine optimization, which is essential for a site to be found in the major search engines.

One of the biggest attractions for site building tools is the cost. It won’t necessarily cost less to get your site this way, but it does provide a way to spread the cost over time. The cost for a custom website varies as per the feature and function it carries with itself.

Many people are concerned with building their own website, fearing boring designs and complexity. However, it is now becoming apparent that there are many custom web site builder software products on the market that promise dynamic layouts, professional templates, and user friendly web design tools. The professional web designers know there are a few more things to know, but sometimes they find some irony in the fact that web developers, in their quest to improve and better the web, have made themselves “optional”. Most site building tools today are very robust, making it simple to add forms, searching, maps, guest books, calendars, and a whole variety of elements to a web site. Even better, the hosting company sometimes offers an entire suite of services - the site builder, email marketing, search engine optimization and statistics, all in one package along with the hosting.

There is also a possibility that the service will require you to keep some branding on the site telling people that you used their website designs and tools. This is more common with the free site builders - which pay for themselves by putting ads on your site. If your goal is to build a business web site, it’s really not worth sacrificing your professional image by getting something free, which screams CHEAP.

Low quality websites sometimes attempt to sell expensive products or services. These websites cannot succeed. Studies reveals people spend more time on a well designed web page than on a low quality web page. There is a comparative relationship between the amount of time that an average visitor will spend on a web page and the amount of time that was spent building the web page.

Websites are an important aspect of online businesses. They are the first face of interaction between the user and the business. The website creates the first impression on the user and hence needs to be effective and impressive too. It is the job of web design services to make the website user friendly and search engine friendly too, so that it can serve the purpose of both effectively.

A tool can make things happen - but if you don’t know what to make happen, it is either a useless tool or a dangerous one. There is a learning curve in knowing how to present information online (called information architecture in the profession), as well as for using the site builder. In other word, the fuller featured the tool; the more there is to learn. If you aren’t familiar with color theory, use of typography, information architecture, navigation and interface design, and page layout and design, you can potentially make something that will hurt your business more than help it. So, unless you are already computer and web savvy, figuring out all the features within your web hosting and site builder package can be time consuming and frustrating.

In the end there are ways that a business can take advantage of these new options and still create a functional and professional web site. One way is simply take your time and research the available website templates, and find the one that has the most features and flexibility, that meet your functional requirements. In other words, spend the time to learn the things a seasoned pro would bring to the table. The internet is a massive library of “how to” information, where you can literally teach yourself anything - and with enough time spent, you could potentially learn how to layout information, what colors and fonts work well together, how to conduct your marketing online and optimize the site for search engines. The second is choosing the best suitable custom website design company and work with them to build a professional website that meets your needs get your imaginations carried and make business a greta success.

About HostChart.com

HostChart, a Web Hosting Company Resource, is a leading web hosting directory website that has been in business for over 5 years. They provide numerous web hosting articles and tutorials as well as news, interviews, and reviews. You can use their extensive set of tools to research and evaluate your current or future web hosts. HostChart is a Property of Advantage1 Web Services, which also operates ResellerConnection.com

by: Dan Herman

The ‘Marketing Strategy’ is the way we have come up with for achieving our marketing goals and it should include two mandatory elements:

Which target consumers whom we can reach, hold a viable potential to buy whatever we intend to sell?

What is the offer (the entire marketing mix) we will be presenting to these consumers in order to appeal to them and thus realize the said potential, given their alternatives?

You must not think of these as two separate questions but rather as two parts of the same idea. Let me clarify. What are “target consumers with a potential to buy”? These are consumers (a sizeable enough group with buying power) likely to desire what you are offering. Why would they want it? That is the potential that you are supposed to identify. There may be several reasons. For example, maybe they are not consumers of your kind of product yet, however, they might be if something happens, or if they are exposed to a certain message. It could be that they have special needs or preferences, which up until today were not catered to by any of your competitors’ offers (and don’t forget that psychological, social, aesthetic, … needs are real needs). Maybe they are bored with what they routinely buy. When you identify such a situation, you know that the potential is there.

Identifying potential is only the initial stage of your mission, of course. Your strategy would also have to include something that you are going to offer these consumers that might improve their situation in a certain way, solve a problem, give them more than what they already get for the same price, or open new opportunities for them. In short - something that will motivate them to buy from you and thus materialize the potential.

The ‘Marketing Scenario’ is a synopsis of the logic of your marketing strategy. In the same breath, it also enables you to make sure that that logic really works. The ‘Marketing Scenario’ translates the ‘Marketing Strategy’ to simple everyday language. How will it happen in reality? How will the materialization of marketing goals occur? I don’t know whether or not you have already sunk in this fact, but marketing goals are achieved through customer acts. So, let’s assume that we install a webcam with enhanced psychological insight capabilities inside the market and that it captures the materialization of our marketing plan, one purchase after another.

What is the ‘Marketing Scenario’?

The ‘Marketing Scenario’ is an amazingly simple tool to use: Only four questions. Are you jotting this down?

1. Who are the people who we believe have the potential of buying what we intend to sell? Yes, these are the same people we so often refer to as the ‘Target Consumers’. First, we must define our targets. What do these people have in common that makes them probable prospects (in the sense that they are likely to be particularly interested in our offer)? We could use demographic, socioeconomic, psychographic, as well as lifestyle descriptions. Note that at times, we target not a specific group but a wide almost indefinable group of people in a specific mood, a specific situation, or a specific need or state.

   Make room for another possibility. You can target not a defined group of consumers but rather a state of need/desire or a consumption context shared by many diverse consumers at one time or another.

2. What precisely should they be doing (that they are not doing already and will probably not do if we will not intervene), that would direct them to eventually choose our brand specifically? It is, by the way, the first and only objective of branding. What do they have to do so that your marketing plan will materialize (even before the actual purchase)? Do they have to go somewhere? To call? To agree to meet your salesperson? To stop and pick out your product from the shelf? Which activity, which does not occur today, would lead them in the correct path on the way to buying?
3. What is the sound reason that should motivate them to change their behavioral inertia? How will they benefit from that change? Why would you, in their place, buy what you are offering? You can think of it as your differentiating factor (what makes you differentially better?), or as your competitive advantage (what makes you comparatively better?), according to your preference. What could make their situation better compared to their current standing and to the other options available to them in the market?
4. How exactly will they extract the benefit (that which answers question 3) according to your marketing plan? That is not a repeat question. Notice that the third question dealt with the ‘why’ of the target consumer’s planned motivation, and now, we are trying to understand the ‘how’ of your marketing plan. How are you planning to provide the benefit defined in the answer to question 3? If, for instance, you said before that you are making something more accessible, easy or comfortable for them, now explain how it will become more accessible, easy or comfortable, due to you product.

Let us look at an example: The introduction of Palm Pilot to the market. O.K.? Just the main points:

1. “Residents” of the business community, gadgets fans, who manage a dynamic, constantly changing schedule, and have not yet embraced the electronic organizers, or were disappointed by them because of their being laborious to update and generally unreliable.
2. … will step into the nearest office equipment store and ask about the Palm Pilot.
3. … because at last there is an organizer which is not only sophisticated, small and wonderfully shaped, but is also easily kept up to date and preserves the stored data when damaged or when upgrading to a new model
4. … because the Palm Pilot can ‘converse’ with the PC, making the updating process a simple task to perform, as well as enabling creation of backups which could be easily transferred on to the next generations of organizers.

That is what the ‘Marketing Scenario’ is all about. All you have to do is answer the questions. Be precise. Be thorough. Be honest. Do it in writing. Even if you’re absolutely sure that the answers are positively clear to you and there’s nothing to be gained. Only when your ‘Marketing Scenario’ is totally translated to a written text, should you go on and proceed with the brand development process. Otherwise - you will get trapped along the way, and don’t say I didn’t warn you.

by: Derek Rogers

Website Marketing Companies provide effective techniques to establish and enhance your online business. When developing a website for your business, your objective is to create an internet presence. This online visual determines long- term success for any web business. Regardless of your choice of internet marketing strategy, your web site must contain powerful content along with a reliable marketing company.

A successful web page promotion campaign can be obtained through an efficient website marketing company. If the website content is relevant and entertaining, it can achieve high ranking within the major search engines, such as Google, Yahoo, AOL, MSN, and AltaVista. If your website manages to obtain high listings with at least three of these major engines, you are guaranteed an overflow of targeted traffic. Subsequently, there are several reasons why applying the techniques of these companies will help your small business to be profitable.

It is important that any online business that invests in online marketing companies must devote extensive time and effort to analyze the return on their investment. More so, because a number of online businesses are relatively new, it is recommended that you recruit your marketing strategy and immediately move to the next step of analyzing. Many effective and affordable tools are available to monitor and analyze your sites traffic. The website marketing companies are the best tool to assist you with subsequential evaluation of the ultimate production of your marketing efforts. Specifically, if you are investing a great deal of money into search engines and keyword buys, you need to know which one is meeting your goals.

Search engines may or may not be your greatest source for traffic. Website marketing tools will also track where your traffic is coming from and why. It would be beneficial to attract significant on- ramps from other websites, perhaps relative online companies who are potential business partners. Furthermore, it is important to know if your efforts to generate new customers and sales leads are effective. Website marketing companies can provide tools that can show you who directs the traffic your way while also monitoring your sites most requested pages. They will identify the most common entry pages as well as any exit pages. If your strategy is working effectively, then you can optimize your site to distribute more of the same. In the worst case scenario; you may need to reconstruct your web pages to present something more intriguing or compelling.

Website marketing gurus use tools that enable you to view the actual operating systems that your users may have. This will allow any defects of your site to be revealed. For instance, a website will become defected if a user attempts to link nonexistent or “404″ pages to it. It is rewarding to know what your visitors’ viewpoint is regarding your website and business.

Finally, web marketing companies are beneficial as they provide techniques that allow a small business owner to understand their customers and your targeted audience. Any technology associated with the internet that provides a marketing strategy for your small business helps to develop methods to achieve high ranking and enhance the marketing tools that helps you sell your product. Basically, website marketing begins with a well- written and organized website and concludes with a successful web page promotion.