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Twitter continues to grow at a rapid pace and attracts thousands of new users each day. But you often hear people say that Twitter is a waste of time with no benefit to the small to medium sized business. Others rave about Twitter’s positive impact on their company.
The fact is that many small to medium businesses are using Twitter to develop relationships with their customers, raise awareness of their company, uncover the latest trends, and make more sales. How do they do this? Before we answer this question, let’s look at what Twitter is and how it works.
Twitter is a micro-blogging site that enables users to communicate with each other in “tweets” of up to 140 characters. You can think of a tweet as a text message that is not directed to one person in particular, but to all your “followers”. When you tweet, your message appears on Twitter to all the people who have chosen to follow you. You also choose to “follow” other people such as your followers, customers, prospects, media representatives and others who have an interest in your company or industry.
It’s important to understand that your tweets shouldn’t be sales oriented announcements about how great your products or services are. Effective tweets should build relationships and can take many forms. The main guidelines are that your tweets should in some way be of value to your followers, they should be worded in a conversational tone, and they should reflect your company’s culture.
Your tweets can help position your company as a reliable source of expertise by including links to your company blog or an industry site. They can let your followers know about the latest developments in your business. They can take your followers behind the scenes at your company to show them your personal side and create stronger connections. You can also “retweet” interesting tweets from others to your followers.
Some retailers offer coupons or special promotions in their tweets. Although these are outright promotions, these companies usually have separate Twitter accounts where people become followers specifically to learn about special offers.
Besides tweeting to your followers, it’s important to remember that Twitter is a two-way conversation. You will want to pay attention to what other people are saying in their tweets to learn their opinions and ideas concerning your company, product, service or industry. Even better, you can tweet to ask questions, present ideas and request feedback from your followers, and get quick responses. You can also use the Twitter search function to find out what all users, not just your followers, are saying about your product, brand, company or industry.
If you decide that Twitter might benefit your business, there are a number of steps to take to get started. First, you will need to set up a Twitter account if you don’t have one. Designate who will manage your account by tweeting and monitoring tweets from your followers. You might want to have several people managing your account to ensure effective coverage. But make sure they understand your Twitter goals and guidelines.
The next step is to attract followers. If you have the email addresses of your customers, you can search for them on Twitter and become their followers with the goal of having them reciprocate by following you. You will want to include a Twitter link on your website and have a Twitter button in your emails, electronic newsletters and other correspondence.
Many small to medium businesses are finding that Twitter is an effective way to communicate with existing and potential customers and build a relationship with them. Twitter might be the right tool to develop connections for your business. Remember that it’s a two-way conversation and that you must bring something of value to your followers in order to succeed in the long run. The best way to learn about Twitter is to jump right in and start tweeting.
Feel free to connect with us on Twitter at www.twitter.com/AdvisorOnTarget. We try to share useful information for small to medium businesses about social media marketing and other business tips.
Some information in this article is sourced from RAN ONE © 2010 Bullseye
- Know your business’ balance sheet thoroughly. This may sound obvious, but, as your accountant can confirm, many business people don’t know how cash flow works and its significance to keeping their operation afloat. Many owners focus on their business’ profit and loss statement alone. It’s a potentially fatal mistake because healthy profits can mask an impending cash flow crisis. Profit and loss statements don’t usually contain the information required to make an adequate cash flow projection. For that, you’re going to need a structured balance sheet that includes all the influencing factors including debts, interest payments, inventory and so on. This is the basis for your cash flow projection which represents an “educated guess” at the likely inflows and outflows over the period of time you have selected to map out.
- Set up a cash flow budget. You need to focus on forward planning to generate a “best guess” about likely future sales and expenses. There are some cash flow software tools around, but you can also set up your own program in Excel. You can also ask us for help. We have financial monitoring tools to help you stay on top of your numbers.
- Review and update cash flow budgets regularly. It’s your best insurance against potential cash shortages. If your business has a predictable cash flow, then cash flow budgeting on a quarterly basis is often enough. If you’re already visiting your accountant for other tax related matters, then you can get a cash flow budget prepared at the same time. The rule of thumb is that the greater the cash flow uncertainty a business faces, the more often a new cash flow budget should be prepared.
If cash is really tight, you might need to move to weekly projections, and decide which invoices you’ll pay and whom you need to get payment from as soon as possible. Watch bank balances and make sure you don’t have checks sitting on a desk waiting to be deposited. This can be time consuming, but you won’t be the first business that has had to do that from time to time.
Rapid growth sounds good but, ironically, too much of this good thing can bring on a cash crunch – which takes many business owners by surprise. A sudden spurt in sales is often accompanied by depletion in inventory or an increase in receivables that is not being monitored for overdue collections. Strong sales one month often means a cash shortage next month. By monitoring the business’ cash status you can arrange credit from suppliers and banks to cover the temporary shortfalls. However, these arrangements take time to set up so you need to be prepared in advance. - Set your credit terms carefully. If the nature of your business requires offering credit, then it is important to set clear limits to your terms of credit.
- Get payments in quickly. Master the art of receivable management. Let customers know how much time remains before due dates. Stay in close touch with major debtors as payment deadlines approach. Offer small discounts for early payment as an incentive.
- Pay your creditors strategically. Take advantage of credit terms and prioritize payments according to the consequences involved in going overdue. Wages, taxes and direct debits are at the top of the list for on-time payment; key suppliers may be prepared to wait a while to keep your business. Don’t pay early just to get a discounted price unless getting the discount is better than being without the cash.
- Plan for the ups and downs. Be aware of when lean cash flow periods are coming up and plan accordingly. Avoid funding major purchases from your business’ working capital unless you are sure you have the cash to cover it.
- Get finance products working to your benefit. Overdrafts, premium funding, lease facilities and cash flow funding products can all be excellent tools to help match a business’ cash supply with planned outlays. Even the business credit card can be a good way to ease the squeeze as long as you are sure the debt can be paid before interest kicks in.
- Don’t incur tax and other statutory penalties. Save yourself the money and the stress!
- Keep your hands out of the till. Make cash drawings for personal purposes according to conservative cash flow forecasts.
Information in this article is sourced from RAN ONE © 2010 Bullseye
Most small businesses operate a tight ship. They manage overhead expenses and watch cost of sales to stay on the credit side of the ledger. But when you’ve reached a point where you cannot see any further ways to reduce costs, there could still be an opportunity to increase your profits through increasing productivity. Probably the most important way managers can increase productivity is in the way they manage their people. There are a number of practical steps you can take that revolve around your people management systems.
• Select the right person for the job
• Give them clear directions and clear systems to direct their work processes
• Manage the differences between your team members to get the best out of each person
• Don’t ever think that they will put in the same effort that you, as the owner, will
• Document clear performance indicators so everyone understands just what’s expected of them
Select the right person for the job
Granted it’s always tough to really be sure in an interview, it’s still the best tool you have. Consider questions such as whether the applicant fits in with your current team; are they the sort of personality you want to work with; do they seem to have a good work ethic; do they have enough experience and if not will they train up easily; do they have a history of useful contribution in their previous workplaces? Also prepare your interview questions carefully – it is quite legal to include technical questions and even practical exercises to assess skill level or capability. Ask questions about what they might do in a situation where a certain kind of problem arises. You’ll be able to assess better whether they’re a fit for your business. Settling for someone you’re not sure about can be costly on your time and money, not to mention on team morale, if they don’t work out.
Read More→
Even in a downturn, if you don’t get in front of people and explain your unique value proposition then your chances of selling will be restricted to current customers or accidental passersby. Marketing is what sets you up for selling. However, there are three important things you should appreciate before you start.
1. Your target customers need to hear your marketing messages at least 7 times to influence a buying decision. Sounds like a lot – it is. People just don’t always take in all the information at any given time. Especially the first time they hear it, so you need to choose strategies that allow you to repeat them often enough to work for you.
2. Expensive ads don’t guarantee sales – even when they are popular with the public. Companies have gone broke over big ticket ads. Every marketing dollar has to translate into sales.
3. A sure way to improve sales is to use multiple marketing channels. Your underlying message should be consistent, but you need to get it out in a variety of mediums.
So, if you’re a small to mid-sized business on a limited budget your tactics should be to optimize your spending so that you get in front of the right customers regularly and in a variety of ways. Here are four techniques you can use to achieve that.
Identify and target niche customers
Unless you are a major player with an unlimited amount of money to devote to scatter gun marketing – go narrow. Do your market research and focus on niches – those groups of customers you can clearly identify who would be interested in your offering. Customers who are affordable for you to reach! Then get your message out into local clubs, trade shows, industry publications, niche newsletters, anywhere you can reach those specific prospects. Read More→
In QuickBooks you are able to sort the Pay Bills window four ways: Due Date, Discount Date, Vendor, and Amount Due. Now you can also Filter that screen for one vendor or multiple vendors. You no longer have to see every vendor you owe money to, in that window.
Want to go paperless? You can, using QuickBooks Document Management system from within QuickBooks. Every QuickBooks form now has a paperclip icon on the top that says attach. This allows you to scan and attach documents to a form that are directly related to that form. For example, you can scan and attach the vendor bill, you received, as back up to the bill you are paying in QuickBooks. This service is free up to approximately 1,000 2-page PDFs. Additional space can be purchased for an additional cost.
In the bank reconciliation window, items are highlighted in bold until checked off allowing a more visual means of seeing unreconciled items. They definitely stand out!
A new marketing center which allows you to send e-mails to your clients based on your clients spending habits with you. You can customize the e-mails, send thank you e-mails and coupons. Then QuickBooksTM will tell you if your e-mail campaigns are successful in terms of additional revenues in QuickBooksTM. There is an additional cost for this service, as well.
For many business owners, paper checks are the most common form of payment. With Intuit Check Solution, you can turn those paper checks into electronic checks (E-Checks) either by accepting checks over the phone or by scanning paper checks. You must already be using Intuit Merchant Services to use this feature.
These are just some of the new offerings. For a complete list visit my website, and click on Order QuickBooks for a full list of features for all versions of QuickBooksTM, QuickBooksTM for Mac, QuickBooks Online and other add-on services.
To learn how to use QuickBooks more efficiently in your business, contact Teri at 619.463.6851.
Target every new contact for follow up communications and watch customer loyalty – and your profits – grow.
A good quality customer and prospect database for email or direct mail can mean the difference between business survival and failure, especially during times of slow growth. The same list, combined with smart communications, will make the good times even better. It costs more money to find new customers than it does to nurture repeat customers through regular contact, so you need to make accurate list-building a daily habit.
Here’s a checklist of ways you can effortlessly add more potential customers:
Direct web traffic
Put a prominent message on your website inviting browsers and customers alike to sign up for regular contact. Your pitch needs to be more than an exercise in collecting names and addresses. Make it clear you’ll be rewarding customers with discounts, sending regular free tips or professional advice too, by mail or email. You must also clearly stress up front, the ease of ‘opting out’. People are more likely to give you their details if they are sure they can leave your list as easily as they joined it.
Customer lists
If you already have clients’ addresses for purchasing, invoicing or other purposes, invite this already ‘warm’ list to receive marketing news too. It may also be appropriate to ask them during regular contact, to recommend or refer like-minded colleagues, particularly if you can offer an incentive for them to add to your list. Read More→
Poor relationships within the team will always reflect on morale and have been proven to impact on the bottom line. You can make or break a career or a job depending on the way you behave with fellow workers. Workplaces need to be profitable for businesses and for the people in them – and that means personally and financially.
Whether you are a leader or a team member there are actions you can take to create a positive, empowering, motivational work environment for people.
A CEO complained that his managers only brought him problems. When you come to the meeting with a problem, have some suggested solutions ready at the same time. The negative effect simply complaining disappears, and is replaced with an atmosphere of constructively sharing in resolving issues.
Constantly laying the blame on someone or something else is negative and often destructive of team spirit. Don’t put your effort into finding ways to point the finger at others. People are more likely to recognize their contribution to the problem if they are not publicly humiliated in the process. You will alienate others and end up with enemies, not conducive to your future job prospects or your business’ success. Read More→
Want to stay in business and be profitable in this economic climate? The answer is to plan, but it is difficult to think in terms of three to five year plans these days. So focus instead on the next 12 to 18 months and use “what if” scenario planning and stress testing along the way.
Build scenarios
Create a forecast for the next 12 months to 2 years. Take your business plan and then impose a series of scenarios. A business-as-usual scenario, for example, might have flat growth. Another scenario might project a 10% drop in revenue and a 20% increase in input costs. These scenarios show you the effect on the business of outside forces, and allow you to develop contingency plans to mitigate their effect if you start to detect their impact through your monthly reports.
You might decide that if revenues decline for two or three consecutive months, then you will implement a stronger marketing and sales program. If that fails, then you might move to significant cost reduction activities. Look at what happens if the company loses customers and suppliers.
You might need to draw up plans to create other ways of drawing revenue, like discounting, or going to other markets or changing production. Identifying a critical threshold means you can start thinking about how to mitigate it.
Develop your business plan
Critical to forecasting is your business plan; it should cover market analysis, organization and management, strategic analysis, marketing and sales, products and services, the amount of funding needed to start or expand the business, and financials. The best business plans are updated every six months, though you should be reviewing it quarterly.
Do you find when it comes to a choice between serving a paying customer and writing a business plan, like most small businesses, you go for the money? Lack of time is a major reason many small companies don’t have plans. The answer for some businesses is to prepare the plan on the weekend. It might take an entire day, but it’s a worthwhile exercise. Read More→
They both record the same information: SALES. Invoices record sales on an accrual basis, sales receipts record sales on a cash basis.
An invoice records the sale as income and increases accounts receivable, as of the date of the invoice, even though you haven’t received the PAYMENT for the sale. To complete the sale process started by using an invoice, you must “Receive the Payment” against the invoice, which will reduce your accounts receivable.
This is a two step process: Increase to Accounts Receivable = Sale and Payment = Reduction to Accounts Receivable.
A sales receipt is used when you receive the PAYMENT at the time of the sale. In other words, this is a cash sale. In completing a sales receipt in QuickBooksTM, you record the sale as income and deposit the PAYMENT in to Undeposited Funds or a bank account, at the same time, using the “sales receipt” form.
This is a one step process: Sale = Payment.
In addition, in QuickBooks, a sales receipt is also often used when a client gives you a deposit towards future work.
To learn how to use QuickBooks more efficiently in your business, contact Teri at 619-463-6851 or by e-mail at teri@terimilligan.com.