Posts Tagged ‘small business’

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New iPhone App Lets You Connect Instantly with Business Services

Friday, August 6th, 2010

InsideUp has has just released an iPhone app that will help you find the services you need instantly, and get immediate quotes from multiple vendors. When you submit a request on the iPhone or iPad, you will be instantly matched with vendors that fit your criteria, and receive custom quotes from up to five providers. Not only will you save money on business services, but you will get access to top quality, pre-qualified vendors.

Business owners are increasingly relying on Web-enabled phones and other mobile wireless devices to conduct business on-the-fly. With this app, you can take immediate action whenever an idea presents itself. If brainstorming over lunch produces a brilliant plan for a direct marketing campaign, just a few touches to your iPhone screen will have you in touch with a direct mail provider while your ideas are still fresh.

The application currently includes VoIP phone service, call center services, direct mail, web design, credit card processing, debt collection services, and payroll accounting vendors. More services will be added to the system in the future.

Once you’ve downloaded the app, all you need to do is answer a few simple questions about your business needs, and the system will match you with qualified vendors, based on your company profile and specific needs. The app is free, and it only takes a couple of minutes to submit your information.

This new app will be an indispensable time-saver for businesses, eliminating the ordeal of researching each provider to find the one that best matches their needs and budget. The immediacy of this system makes it simple and cost-effective for businesses to have ready access to service providers.

Statistics from research firm Gartner show that the number of smartphones and Web-enabled phones will soon exceed 1.82 billion units. With 6.5 billion mobile connections expected by 2014, all companies, both large and small, will be accustomed to conducting business online.

Download this time-saving app here, and discover how easy it can be to get the business services you need, as soon as you need them.

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Posted in Vendor Sourcing | 13 Comments »

Experienced Management Builds Successful Relationships with Providers

Thursday, July 1st, 2010

When entering an agreement with a new vendor, businesses naturally hope for a successful long-term relationship, resulting in a measurable return on their investment. Assuming you have chosen a quality provider, some of the responsibility for a successful relationship lies within your management of it.

The Outsourcing Journal recently analyzed the findings of a survey involving businesses whose relationship with outsourced service providers had been in place for more than one year. The survey revealed that 50 percent of these buyers had assigned an inexperienced employee to manage the relationship with the providers.

Of the 50 percent of participants who did use managers with previous experience, 22 percent admitted that they had chosen someone who had limited experience in this area, or whose scope of experience was limited to managing the process before it was outsourced.

This resulted in some common mistakes and challenges in managing the relationship with the providers, including:

  • A tendency to micromanage the provider. For the relationship to work smoothly, a manager needs only be concerned about the delivery of tasks. Details of how the work is carried out are best left to the service provider.
  • Trying to improve the provider’s performance level by imposing penalties or offering incentives. This might work with in-house processes, but is not likely to have the desired effect on your vendor.
  • Lack of effective communication between buyer and vendor; as a buyer, you will need to have some insight into how your provider plans to handle your company’s processes. A manager should be willing to listen to and understand the provider’s viewpoint on matters of mutual concern. He or she should also be able to effectively communicate the company’s needs and priorities.
  • Inadequate skills to manage changes, and to bring the buyer/provider relationship to an optimum level.

Some of the companies in the study did invest in formal training for their relationship managers, but nearly 30 percent did so long after the buyer/vendor relationship had begun to experience difficulties due to the lack of knowledge or experience.

To avoid this problem, and to pave the way for a successful relationship with your providers, be sure your relationship manager has adequate skills in areas such as change management, negotiation, communication, partnering, and project management. Relationship managers can also acquire a great deal of applicable knowledge by reading the latest white papers, books, and articles on the topic of managing vendor relationships.

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Posted in Vendor Sourcing | 3 Comments »

Top Reasons Companies Choose to Outsource

Monday, May 3rd, 2010

outsourcing

Cost savings, of course was the main reason most businesses gave for outsourcing, but other factors contributed to the decision as well, such as gaining access to talent, the higher level of expertise that many providers can deliver in their area of specialty, and increased business model flexibility.

Many business owners also believe outsourcing to be a key factor in improved customer relationships, the development of new products or services and market segment expansion, as well as geographic expansion.

There are bound to be some drawbacks with outsourcing; many companies still hold values that favor the use of in-house employees. Others cite a lack of skill in managing outsourced operations, and the need for in-house clean-up prior to outsourcing certain activities. Despite these problems, however 91% of customers said they would outsource again.

Most companies that use outsourcing prefer providers who specialize in a precise area of service, since most of these have developed a high level of competency in their area of expertise. In fact, outsourcing trends show that providers are continuing to define their services down to precise functions that can be carried out in optimal locations around the globe.

The overall conclusion is that outsourcing is a firmly established business strategy that continues to evolve and mature, and delivers value beyond mere cost savings, for companies that take advantage of it.

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Posted in Vendor Sourcing | 12 Comments »

How to Find Truly Useful Vendor References

Tuesday, February 9th, 2010

sales

When you need to select a new vendor, you want to feel confident in your final selection. For every service you require, there will likely be many providers to choose from. So how do you select the best vendor for your needs? Start by checking their references to get an idea of how well a vendor meets deadlines, responds to queries, and provides support.

But how can you be sure that the reference you are getting is accurate and useful? Some references will avoid saying anything negative about a vendor to avoid liability; giving a bad reference may constitute slander or libel, which can result in legal action. In addition, some references may have been coached in terms of what information they can and should share with a new business.

How to Perform a Reliable Reference Check

Seek out companies that have used the vendor’s services, but are not listed as references by the vendor. Here are a few tips on finding such companies:

  • Look at the vendor’s press releases for information about business partnerships and relationships.
  • Perform a simple search engine search.
  • Browse a vendor’s LinkedIn profile.
  • Attend industry trade events to find companies that work with the vendor you’re considering (this is especially useful if a business is large or well-known).
  • Look for references from businesses that are similar to yours in terms of type, size, and/or location.

Whenever possible, speak to the person who actually deals with the company you’re inquiring about. They should be able to give you more in-depth information about what it’s like to do business with this vendor.

Once you have gathered several unbiased sources, prepare a few key questions to ask. Delve for details by asking specific questions about what the company has done to fill their needs. Ask them to rate the vendor’s business services on factors such as timeliness, expertise, reliability, customer support, communication, and availability. When comparing more than one vendor, remember to record your findings for later review.

Performing a thorough reference check may seem like an annoying task, but finding a first-rate vendor who will provide reliable service to your company is well worth the endeavor.

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Posted in Vendor Sourcing | 5 Comments »

Signs that It’s Time to Switch Vendors

Friday, January 22nd, 2010

switchMany businesses rely heavily on the ability to outsource certain operations to quality providers. For your business to run smoothly, it’s important to maintain a good relationship with your vendors. Part of the responsibility for smooth business relations lies with the vendor, of course.

Unfortunately, there may come a time when you have to consider a change in service providers. How do you know when your association with a particular vendor has come to the breaking point? There are a few clues that can indicate a need to look elsewhere for a vendor.

Unreliability

It is bound to happen occasionally that a provider to whom you outsource a great deal of work simply has become overbooked or understaffed. This state of affairs could be temporary. Most good service providers will readily apprise you of the situation, sometimes before you even have to ask, and let you know what they are doing to remedy it. You might consider sticking with them through an occasional rough patch, but if communication problems and delays in service become a regular occurrence, it may be time to look elsewhere for a provider that will deliver more reliable service.

Excessive Rise in Costs

Inflation is inevitable, and you can expect that your service providers will need to raise their prices from time to time. If their pricing increases seem exorbitant, however, or occur very frequently, but in smaller increments that you may not have noticed at first, it might be in your best interest to at least compare the new fees with those of a few other providers. You could find that price break you’re looking for with another vendor.

Lack of Communication

Communication is key in maintaining good business relationships. Many providers welcome frequent interactions with their clients, and are quick to respond to questions and feedback. They will gladly listen to your concerns and will work to make any changes in order to meet your needs. If you feel you are being neglected in this area, perhaps it is time to find a provider with better customer service skills.

Of course, you will want to check the references and reputation of any new provider you are considering, or you could end up switching one problem for another. In a future blog, we will offer tips on how to research vendors.

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Posted in Vendor Sourcing | 1 Comment »

SBA Online Course Helps Companies Win Federal Contracts

Thursday, June 25th, 2009

SBAThe federal government offers $400 billion in contracts annually to small business owners and vendors that can meet a specific need. Many small businesses can grow rapidly if they are able to obtain these federal contracts. In fact, many small businesses establish themselves with the goal of providing services uniquely to the federal government. However, getting federal contracts often requires a good bit of effort and knowledge that can take small business owners time to acquire.

To help these small business owners get accurate information about obtaining federal government contracts more effectively, the U.S. Small Business Administration recently launched its latest free online course, Business Opportunities: A Guide to Winning Federal Contracts.

The online course is designed for all small businesses, especially women entrepreneurs and small firms in underserved markets that have historically had difficulty tapping into federal contract markets. The course uses both written script and audio to provide information about the enormous federal market, including information about contract rules, where to find contract opportunities, and how to sell products or services to the government.

How to Use the Course

The instructional, self-paced guide is available on the SBA‘s Web site. To find this course, follow these steps: from the SBA’s training site, click on the menu of free online courses and then select the first course listed under “Government Contracting.”

After completing the 30-minute tutorial, business owners can earn a certificate of completion from the SBA.

By the way, this Business Opportunities online course is one of more than 24 online tutorials offered by the SBA through its virtual campus at the Small Business Training Network.

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Posted in Small Biz Tips | 9 Comments »

You Noodle Can Help You Predict Your Business Outcome

Thursday, June 11th, 2009

YouNoodleWhat will your business be worth in three years? The sophisticated You Noodle business valuation model analyzes information about business to help predict their outcomes. If you know a business (or own one) you can try it now for free!

What are the benefits of finding out information about a business?

Many individuals and businesses use You Noodle to determine the projected revenue and value of a business when they are considering investing in a business. For example, if you are considering buying shares of a business, you may be able to predict with a high level of accuracy what those shares are likely to be worth in the future using this predictor tool.

This predictor tool can also help you to determine what the outcome of your own business can be. If you are thinking about starting a new business, buying a business, or changing your business services or products, this predictor tool can give you some insight into whether or not your business will be as successful as you imagine. It may also be fun to use this tool to see where your business ranks amongst similar businesses. Are you on track?

For example, if you are thinking about opening a restaurant, this tool can help you to determine whether the start-up costs will be worthwhile – and how long it will take for you to see a return on your investment.

Remember to be logical.

While the You Noodle predictor tool is a fairly reliable way to determine the value of a business, keep in mind that this predictor works by analyzing information from similar businesses and from a business’s own history. While this tool is thought to be rather accurate, it’s important to keep in mind that the success of a business largely depends on the business model, business plan, and leadership team.

Therefore, use common sense if you are evaluating a business for investment purposes – and work hard and smartly if you are trying to realize a certain level of revenue from your own business. The You Noodle predictor is an excellent complement to good old fashion common sense and research!

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Posted in Small Biz Tips | 3 Comments »

Factoring Can Help Cash Flow

Thursday, June 11th, 2009

FactoringFact: when businesses extend credit (which occurs anytime a business has to send an invoice for products or services), it will have 10 to 20 percent of its annual sales stuck in accounts receivable. That’s a significant amount of money each year!

When a business needs assistance managing their cash flow, the business can turn to a variety of resources, including banks and other lenders. However, many businesses either can’t get funding through a traditional lender, or would prefer to get funding through alternate means. Factoring is an alternate mean that is very appealing for many businesses. Factoring, in essence, is “cash without borrowing.”

Here’s How Factoring Works

A business sells its accounts receivable (outstanding invoices) to an investor (factor) at a discount rate – usually of about four percent). The factor then collects the money from the customer. Because the business sells the accounts receivable at a discount, the investor is able to collect on the discounted margin. That margin is generally based on a percentage of the total cost of the invoice, but may also be based on a flat rate.

Factoring is a very common practice that has been around for thousands of years, according to Vital Force Factoring. It is generally a business-to-business service, but consumers also use factoring systems anytime they make purchases with a credit card. In the case of a credit card arrangement, the credit card company will pay a retailer for goods when a consumer makes a purchase. Therefore, the credit card company, acting as a factoring agent, serves as a middle man and is in charge of managing payment for a product or service. The factoring system works in much the same way as a credit card system in business-to-business transactions.

Benefits of Factoring

Many company, such as Florida-based First Capital, are in business to buy receivables in exchange for immediate cash – as much as 97 percent of the total amount of the invoice. Some businesses use factoring for funding when they are unable to get bank loans or loans from conventional lenders. In a pinch, some businesses even use factoring to pay for inventory, payroll, and other immediate needs.

Factoring can also help businesses to improve their invoice collection rates as factoring companies handle all aspects of accounts receivable for a company. Some businesses enlist the help of factors if they are unable to collect on an invoice. The factoring company will then use its own resources to collect on the invoice, allowing both the business and the factoring company to receive payment.

Many factoring companies will also perform credit checks on new customers in order to determine the risk associated with engaging in a partnership with the new customer. This credit check can also help businesses to assess a credit amount or interest rate for the new customer.

When looking for a factoring company, look for a company that has a high advance rate for invoices, offers fast payment on invoices, has appropriate invoice management tools, and has a good reputation for collecting payment from customers. It may be helpful to review several different factoring companies before selecting the company that’s best for your needs.

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Posted in Small Biz Tips | 14 Comments »

Women Owned Businesses Generate $1.9 Trillion In Sales

Thursday, June 4th, 2009

women owned businessSince the dawn of the first fur trading businesses in the U.S., the business arena has been dominated by men. However, times – they are a-changing. In fact, women owned businesses are believed to generate nearly $2 trillion in sales annually – and that figure only counts those women owned businesses that are officially classified as such! (Classifying a business as a minority-owned business is always at the discretion of the business owner, and not all business owners go through the process of obtaining a minority-owned classification).

With more and more women starting businesses and becoming the majority shareholders in already established businesses, it’s important to pay attention to the role that women play in the global business marketplace. Here are a few facts about women owned businesses that may surprise you:

  • 10.1 million firms are owned by women.
  • Those 10.1 million firms employ more than 13 million people, and generate $1.9 trillion in sales as of 2008.
  • Three quarters of all women-owned businesses are majority owned by women (women own 51 percent or more of the shares for the business). This accounts for a total of 7.2 million firms, employing 7.3 million people, and generating $1.1 trillion in sales.
  • One in five firms with revenue of $1 million or more is woman-owned.
  • Three percent of all women-owned firms have revenues of $1 million or more, compared with 6 percent of men-owned firms.

Banking and Finance

Women business owners’ satisfaction with banking relationships has more than doubled since 1992 (35 percent vs. 82 percent).

  • More than two-thirds (67 percent) of women business owners choose financial products and services based on their relationship and experience with a lender.
  • Women owners of firms with $1 million or more in revenue are more likely to belong to formal business organizations, associations or networks than other women business owners (81 percent vs. 61 percent).

What This Means to You

In order to effectively work with and market your services to women owned businesses, it’s important to understand how the leaders of these businesses work. As noted in the example above, women tend to make decisions based on their relationships and are more likely to belong to business organizations as they increase their revenue.

Ask yourself a few simple questions about how your marketing strategy, services (including customer services), and products appeal to women owned businesses, such as:

  • How can this knowledge impact your marketing plan and efforts as you attempt to develop relationships with these businesses?
  • How are your services designed to meet the needs of both the business and the business principals?
  • Do you have products or services that appeal to women owned businesses?
  • How can you improve your efforts to develop relationships with women owned businesses based on this knowledge?
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Early Payment Can Help With Cash Flow!

Friday, May 22nd, 2009

save moneyDid you know that paying your bills early might actually save you money? Many businesses offer prompt pay discounts, or “2/10, net-30 discounts,” which allow companies to subtract two percent (and sometimes more) from an invoice amount if the invoice is paid within 10 days if receipt instead (of the more standard net 30 or net 60 day payment period.)

Prompt payment discounts can be offered in any industry and anywhere along the distribution channel, including between suppliers, distributors, customers, service providers, and more. In some cases, the prompt payment offer is called a “trade rate,” which is, essentially, a special rate that is offered periodically based on certain circumstances.

Taking advantage of these early pay discounts can really add up, especially for companies with thin profit margins. The challenge for many companies, however, is managing their cash flow system in a way that enables them to take advantage of these discounts on a regular basis.

Here’s what you’ll need to do in order to take advantage of early pay discounts:

  1. Determine if an early pay discount is available from a vendor. Not all vendors offer this opportunity. If the early pay discount is not offered up front, you may want to suggest it to the vendor.
  2. Alert your accountant or payment processor. If you work with an in-house accountant, it may be easier to alert the accountant of the early pay discount. However, if you have an out-of-house accountant, you may need to get in touch with the accountant to let him or her know about your interest in the early pay discount option.
  3. Follow up with the payment processor for your company to make sure that the payment has gone out within the 10 day period.
  4. Follow up with the vendor to make sure they received the early payment and applied the discount.

Why offer prompt payment discounts?

In addition to being able to take advantage of prompt payment discounts, you may also want to offer your own prompt payment discounts to your business associates. Here are a few ways in which a prompt payment discount could benefit your business:

  • Boost short-term sales, as customers or vendors act quickly to take advantage of a prompt payment discount.
  • Sell older merchandise or merchandise that is becoming out-of-date.
  • Reward special or long-term customers.
  • Increase productivity.
  • Increase cash flow and efficiency of the accounting department.

To determine whether a trade rate or prompt payment discount is right for your business, you may want to conduct a survey amongst your customers, vendors, distributors, and other key business partners. In this survey, find out if the program would be beneficial to your associates and what terms of such a program would be best.

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Posted in Small Biz Tips | 1 Comment »

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