Who runs your business if something happens to you?

We all believe ourselves to be invincible. Yet accidents and serious illness happen.  This story from newsobserver.com is just one example how quickly you can be out of action for a prolonged time.

The simple solution is to have a clear understanding and in writing instructions to a successor.

http://www.newsobserver.com/2013/06/10/2953913/small-businesses-big-disasters.html

When you are the key to your business very existence then key-man insurance might also be a good idea to consider for added financial protection.

Washington Health Plan Finder

Countdown to Coverage


To help you understand the upcoming changes associated with the Affordable Care Act and the new options that will be available through the online health insurance marketplace, we are pleased to present a new webinar series titled “Countdown to Coverage.”

The series, which runs from April to July, will include eight webinars that will walk you through the impact of the federal health care law on Washington State, how Washington Healthplanfinder works and where individuals can go for additional assistance to enroll in an appropriate health plan. A more detailed schedule is included below for your reference.
http://wahbexchange.org/countdown-to-coverage-webinar-series/

This fall, Washington residents will have a new way to find, compare and enroll in health insurance. It's called Washington Healthplanfinder, and it gives individuals, families, and small business owners the confidence to choose the plan that best fits their needs and their budget. Washington Healthplanfinder offers:


•Apples-to-apples comparisons of health insurance plans

•Financial help to pay for copays and premiums

•Expert customer support online, by phone, or in-person through a local organization, insurance broker or agent
http://www.wahealthplanfinder.org/

Customer Loyalty Program

I found these blogs on Intuit' Small Business Blog.   They offer several tips to implement customer loyalty program via social media.

http://blog.intuit.com/marketing/how-customer-loyalty-programs-can-bring-you-more-business/

http://blog.intuit.com/marketing/6-tips-for-creating-a-customer-loyalty-program/

Sell Value, Not Low Price

Improve your sales with value based on quality and service. Customers will pay up to 14% more for quality and 10% more for great service. Let’s call service and quality the Value Proposition, a statement that describes the unique value your business offers and separates you from the competition. A strong value proposition that clearly set your quality and service can result in your ability to obtain a better price.


Creating a value proposition can be achieved with the following basic business activities.

Become a trusted advisor. Provide knowledge about your products, your industry and the ability to help the customer resolve their problem. Validate your trusted advisor relationship with integrity offer accurate information on products and services.

Understand the customer’s situation. Listening to your customer, don’t be in a hurry to sell a solution before you have a clear understanding of what the customer is trying to tell you .

Be easy to deal with. Customize solutions be flexible and creative allow adaptions of products and service. Partner with customers in creative problem solving. Many innovative new products were invented as a result of solving a customer problem.

Confirm the proposed solution. You offer great service and quality so you can reduce any perceived uncertainty the customer may have by offering no hassle return policy, guarantees, warranties or exchanges.

Reinforce the relationship. Ask your customers simple feedback questions about delivery of services or products. Asking customers will reinforces positive experiences and help you to immediately identify and correct any complaints, thus turn a potential unhappy customer into a happy customer.

Crowdfunding

The ORIGINAL "crowdfunding" sites started as a way to make a donation to support an arts project/investigative reporting/documentary film or other "worthy cause". Initially the "rewards" were things like being listed in the credits of the documentary. This has evolved (in many cases) into something much more like placing an order for a product that has yet to be produced; hence the reference to game designers "not really delivering" and there are other cool products at the prototype stage that have raised money in this way by promising to produce and send the donor the item once the requisite funding is received for them to be able to produce it.

The NEW "crowdfunding" as covered by the JOBS Act is an equity offering and there are already a ton of rules (including having to go thru an "approved portal") built into the law. The corresponding regulatory framework is now being set up and was to go into effect on January 1st but rules have not yet been adopted by the Security Exchange Commission (SEC). It is interesting that one of the companies that has set itself up to be and "approved portal" says they are targeting companies with sales of between $3 million and $15 million, because this is the size/maturity of company that is big enough to deal with the expense/bureaucracy of the new crowdfunding procedures, but small enough to be unable to obtain debt financing for a major scale up. Thus the term is used for two entirely different processes. ( Kevin Hoult, WSBDC)

There are four basic forms of crowdfunding:

Original Crowdfunding includes:1. Gift-Donation -- often used on the art funding sites where everyone tosses in a small amount of money.

2. Prepaid Purchase – future customers are paying today for something they hope to receive later, like community supported. Revenues are considered sales and subject to taxes.

New Crowfunding includes:
3. Loan - Borrowing money and will pay it back, usually to a fund rather than to the individual contributors.. May be viewed as an offering under security rules.

4. Equity – The SEC must complete rule-making before the ban on general solicitation in Rule 506 offerings is lifted or before crowdfunding can commence. That rule-making is not complete. The SEC has published a warning to this effect on its website at: http://www.sec.gov/spotlight/jobsact/crowdfundingexemption.htm

A recent Internet search revealed hundreds of websites offering crowdfunding many specializing on topical area such as: non-profits, social causes and issues, arts and entertainment, consumer product development, or technology development.  Before registering examine funding website to identify the purpose and types of projects that site want to promote, read rules and identify all the fees.

Posting on a crowdfunding site is only the beginning. Raising funds will be more successful if you also have a social media marketing strategy spreading the word about your proposal. 

Starting a Business Expense Budget

Before you can open the doors of your new business do you know your Start up Expenses?

This list is provided as a simple start up budget planning tool.  Pre-opening typically costs more and takes longer than planned.  Estimates should be on the high side, you can always spend under budget, but it is very difficult to obtain more money when you run short. Plan a contingency fund of 20% of your start up budget and enough working capital to last to cover operating expenses for six months. 

Capital Purchases Buildings/Real Estate

Leasehold Improvements

Item 1 -$
Item 2 -$
Item 3 -$
Item 4 -$
Total Leasehold Improvements $-

Moving and Set up

Labor -$
Decorating-$
Moving Expenses -$
Total Moving & Set up -$

Capital Equipment Purchases 

Furniture - $
Equipment - $
Fixtures - $
Machinery - $
Other - $
Total Capital Equipment $- $

Prepaid Expenses 

Location and Admin Expenses

Rent - $
Utility deposits - $
Legal and accounting fees - $
Prepaid insurance - $
Pre-opening salaries - $
Permits and Licenses - $
Other - $
Total Location and Admin Expenses $-

Opening Inventory

Category 1 - $
Category 2 - $
Category 3 - $
Category 4 - $
Category 5 - $
Total Inventory $-

Advertising and Promotional Expenses

Advertising - $
Signage - $
Printing - $
Travel/entertainment - $
Other/additional categories - $
Total Advertising/Promotional Expenses $-

Other Expenses

Other expense 1 - $
Other expense 2 - $

Total Other Expenses $-

Reserve for Contingencies - $

Working Capital - $ 

Summary of Start up Expenses

Buildings/real estate - $
Leasehold improvements - $
Moving & Setup - $
Capital equipment - $
Location/administration expenses - $
Opening inventory - $
Advertising/promotional expenses - $
Other expenses - $
Contingency fund - $
Working capital - $

Total Start up Expenses - $                                   

Security and Collateral for Loan Proposal

Collateral for Loans

Real estate
Other collateral
Other collateral
Other collateral

Owners Investment

Your name here, amount of investment and source
Other owner, amount of investment and source
Other owner, amount of investment and source

Loan Guarantors (co-signers other than owners)

Loan guarantor 1
Loan guarantor 2
Loan guarantor 3

Branding Includes A Customer Experience Promise

A brand helps people identify their expectations about your business. A strong brand includes a customer experience promise that helps new customers choose your business, strengthens customer loyalty, ultimately increasing repeat sales and profitability. Customer experiences become your brand’s reputation creating your unique competitive advantage enabling your business to standout with distinction from competitors.


Businesses that have earned a strong brand reputation understand the customer’s total experience includes non-monetary concerns for customer interaction and trust. By creating a total customer experience they help potential customers to clearly set expectations for a purchase and for after-the-sale use of products and services. When expectations are met customers are happier and more likely to be repeat purchasers.

To improve your brand’s customer experience promise determine which monetary and non-monetary factors you can control and those you cannot control then:

• Use price strategies like price points, discounts, sales or specials to control monetary values.

• Influence non-monetary issues with customer interactions and listening to customers, offer warranties, level of quality, staff knowledge of products and services, loyalty programs.

• Create a vision of what customer experience should include promote this vision as a company culture, with staff authorized to resolve any customer problem.

• Set goals for customer experience outcomes that align with the vision. Trainings and continuous reinforcement of a customer service culture.

• Measure outcomes against goals by collecting customer feedback. Celebrate and reward achievements.

• Use customer feedback to continuously improve customer loyalty.

Creating a total customer experience that builds on and strives to exceed customer expectation will enhance your reputation and brand value with increased repeat customers.