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Q: I own a small, homebased financial and credit cardacceptance company. How can I attract clients on my limited income?Also, do you know of anyone who is interested in a partnership?
A:Provided by Dan McComas, a speaker and author ofHigh-Impact Marketing on a Low-Impact Budget (PrimaPublishing, $16, 800-632-8676), known as "America'sSmall-Business Marketing Coach."
When your marketing is effective and revenues are growing,it's much easier to attract partners. Plus, when you're asuccessful new business "rainmaker," you'll have moreleverage in partnership negotiations. Here are several low-cost andno-cost marketing strategies I recommend:
1. Start a tip club. A tip club is an effective wayto join forces with others who want to share ideas and getbusiness. Tip clubs typically comprise 12 to 40 business-people innoncompeting industries who meet weekly. A tip club forprofessionals might include an accountant, a real estate broker, amanagement consultant, an insurance broker, a banker and so on. Ifyou don't want to start your own club, check your phonedirectory for networking clubs such as Business NetworkInternational and LeTip. Both are low-cost ways to generate leadsand referrals.
2. Ask for referrals. Referrals are the mostunderutilized form of free marketing. Why? Most people are afraidto ask for them. Think of the acronym EAR. First, earnreferrals from clients by always giving more than they expect.Next, ask for referrals. Simply say, "I appreciate yourbusiness, Jim. Who else do you know who might benefit from myservices?" If your client can't think of anyone, ask ifyou can go through a chamber of commerce or trade associationdirectory together to pinpoint names. Finally, reward thosewho give you referrals with a handwritten thank-you note, a gift ora referral fee.
As for your question about partnerships, research and network inyour community and via the Internet. Visit the SBA's Web siteat www.sba.gov. Participate in Internet newsgroups in yourindustry, and read your industry's trade journals.
Q: I'm interested in opening a bar but am not sure ofthe regulations or even how to begin. Any information would behelpful.
A:Provided by Bob Johnson, a 37-year veteran of the barbusiness, national speaker at beverage-related conventions,professor of beverage management at Florida InternationalUniversity in Miami and executive director of the BeverageManagement Institute.
If you aren't a convicted felon and you have enough money,technically, you qualify to open a bar. Therein lies the problem.Most bars go out of business within the first year. Reasons forfailure include poor purchasing procedures, hiring the wrong staff,inadequate inventory controls, insufficient employee training, poorpromotional ability and ignorance of laws governing the industry.Theft by unscrupulous bartenders and wait staff can also bring abar to its knees.
Unfortunately, no school teaches a full curriculum of barmanagement. So unless you want to be an absentee owner, the barbusiness is best only for the thoroughly experienced.
If you're determined to go into this business, take a yearto complete the following before you invest:
1. Attend a bartending school. Visit other bars.Talk to bartenders, managers, owners--anyone who can offeradvice.
2. Attend beverage-related trade shows. Many offerseminars on bar management; call the Beverage Management Instituteat (800) 447-4384 for a list.
3. Buy bartending and bar management books, andstudy them cover to cover. Bruce Fier's Start and Run aMoney Making Bar (McGraw-Hill, $29.95, 803-593-7788) is anexcellent choice.
4. Attend a Certified Bar Management seminar for$139. Call (800) 447-4384 for a nationwide schedule.
5. Hire a beverage operations consultant to spendtwo weeks with you prior to opening.
The industry is extremely competitive. Learn everything you canbefore you pour your first drink.
