A small business quote a day keeps you thinking, inspired and entertained 

“The mass market has split into ever-multiplying, ever-changing sets of micromarkets that demand a continually expanding range of options.”

Alvin Toffler (b. 1928) US social commentator 

To find previous Quotes of the Day look here 

A small business quote a day keeps you thinking, inspired and entertained 

“Most large markets evolve from niche markets”

Regis McKenna (b. 1939) US marketing entrepreneur 

It always amazes me to see how many businesses still charge by the hour - it is a business killer. How do you like it if someone comes to quote for a job and then tells you he/she is charging you by the hour. You will have all or at least some of the following thoughts:

• How many hours will it take, can I afford this?
• I don’t know this person, I don’t know how good he/she is at what they do?
• Great, I am taking all the risk here, he/she can take as long as they want and I’ll have to pay?

The truth is that charging by the hour is terribly customer unfriendly and is therefor very bad for your small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants.

By charging by the hour you are creating so many barriers to doing business that your chances of securing the order is very small, if you are competing with someone who offers fixed pricing you have virtually no chance of getting the order. So if you work in an industry that charges by the hour and you need more work you know what to do.

In my experience you can charge more, if you charge a fixed fee and get organized. I believe that more accountants and solicitors loose work because they charge by the hour, the client relationship sours and then break down altogether.

Get rid of your timesheet - fix prices and bill your clients upfront - your customers will love you. ST.

Mass Media Advertising for small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants is almost always a waste of money. To build your brand in a market segment is far too expensive and will take a long time. Worst of all, the result can not be guaranteed.

That is why I always rant about bootstrapping, get your product accepted, i.e. someone to pay for it. That is the only way to find out if it will sell. If it sells you can do other things to get more business - trade publications, telephone directories and local papers - get you to your target group fast and cost effectively.

Remember, bootstrapping rule No. 1: Don’t spend money you do not have! ST.

We started years ago to offer some parts of our OnlineOffice for free. We have not been alone in the past years, but in what I see as a momentous shift the big boys are joining in. At the same time we are getting back to what the internet was supposed to be, a portal to free information and services.

Even Rupert Murdoch is jumping onto the bandwagon, he has just closed a deal to buy Dow Jones. Having learned from his MySpace investment, he is planning to make the online Wall Street Journal, the most successful paid-for media website, free of charge. This is just one example, the Financial Times is probably following suite.

While I still believe that most “Free” offers are made for the wrong reasons, they never the less represent a growing trend. This trend will offer new ways to cut cost and reduce overheads. Small business owners need to be savvy about these offers and make them work for themselves. “FREE” is no longer synonymous for inferior, but a big revolution in customer relations and the new marketing standard in our drive away from “PUSH” to “PULL” marketing.

Whenever you search online, don’t forget to include the little word “FREE” in your search, it could be all the competitive edge you need! ST.

Have you ever wondered why people buy products and services from you or anyone else for that matter? Why do people love an iPod, why do they buy a Rolex watch? The reason is always the same, it makes them feel good. It helps people to feel calm and secure, or superior - these feelings are deeply satisfying to all of us.

Is that the only motivation why people buy, I don’t think so. The other reason is to avoid feeling bad. Feeling bad may have to do with feeling pain, losing money, loosing business, being hassled, feeling guilty and so on.

Bottom line? If your product and service does not do one of the two, you may have a problem. ST.

Many worries in a small business are centered about sales and the need to earn money in order to pay for over-heads like rent, wages and so on. Especially in a technology driven company this can often be a problem. Often you try to sell to your clients as if they are industry insiders who understand exactly what you are talking about. While in reality they are customers and don’t know what makes this widget so special.

You need to sell the benefits of the widget, that is what customers want, benefits. Know who you are talking to, if you are talking to an industry insider, tell him all the technical details, because he understands enough of the technology to understand the details, and then work out the benefits for himself/herself. If you are talking to a customer who wants to use your service or product to gain a benefit from using you, let him/her know what the benefit is.

One word about not being able to show a benefit, I would openly say to my client that there is no benefit from using our product, you may not get a sale, but you will get someone who will respect you and come back, because he/she trusts you. You may also get referrals this way.

By the way, woman are far more benefit talk driven than men. Or as my wife will say to me and my son, talking about the latest gadget, stop talking “klingon” (the star trek species)! ST.

As part of our OnlineOffice we offer web-services like web-hosting, email, online shop, online file-store and a wordpress blog. Blogging is most certainly the most inexpensive and direct way to communicate with possible customers, you can

• blog about your products and services; explain certain aspects better;
• blog about your company and your business mission;
• blog about your industry, comment on development and differentiate yourself;
• blog about case studies to do with your product and services.

In other words communicate with others on the internet and market your small business. There are many hosted services out there, which are more or less easy to use. Our approach has been to make the blog a plug-in to the basic web site you can setup without any IT skills. With our free 24/7 live support we can help with any issues, should you have any. problems.

For me blogging is a bootstrapper technique to attract new business without having to spend any more money. In the mid-ninties I used to tell people to get a web-site, today a web-site should be standard for any small business and a blog a must if you want to succeed in the future. You may believe that blogging is all about attracting global audiences, when in reality you can use blogging for very local markets, too. It certainly beats sending out leaflets and it is better for the environment.

If you have a story to tell, tell it - nobody else is going to do it for you. ST.

When you sign up to WinWeb’s free LiveNet - still in public beta - you can also use our useful and FREE RSS Press Release service.

While LiveNet is an online marketplace for your services and products, which allows you to promote your business to others and find others to help you with work you need to have done. It is also a great place to make new business friends and share experiences.

The PR tool has been around for some time and we have registered this RSS feed with many different search engines and news sites. Using this free service will give your small business web coverage, sometimes even the old media picks it up.

Give it a go - it’s free - and that makes it a great bootstrapper tool. ST.

You may speak more languages and have market segment knowledge about a certain product or service. That is a great basis for a small business startup, two scenarios spring to mind:

Virtual Export Assistant: You may know, or can find a business which has a great product, but they don’t export yet. You could offer your services for a particular country and become their Virtual Export Assistant for that country. You use your language and local knowledge skills and open up a new market for this small business.

Virtual Import Assistant: You could source - using your language and local knowledge skills - products in other countries for retailers in your country of residence. Or you could help the foreign business to import into your country.

But remember you are working with small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, you need to keep the price low for them. To do that you can offer your services to ten or twenty businesses, each paying you a retainer of about $200 - 400/£100 - 200, this makes it affordable for them and low risk, while presenting them with sales opportunities. If they pay you a small commission on top, you are generating a nice little income for yourself.

For this kind of service it would be advisable to get a low cost telecom service for your calls abroad, sometimes you can get fixed monthly subscription pricing for unlimited calls - have a look around.

Other than that your setup cost should be low, if you have computer, ADSL, and telephone. Monthly cost including telephone could be as low as $90/£45.

You can work from home, have your work-life balance and do it on a shoe-string - these are the business ideas I like. ST.

NOTE: If you have any problems with setting something like this up, give our 24/7 live support a “click“, they can help you.