Who Needs a Degree?

Justin Calabrese – Who Needs A Degree?

Who Needs A Degree? The basic inside information a young entrepreneur needs to open a business

Justin D. Calabrese From the owner of the PPI Global Company

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Justin Calabrese – Who Needs A Degree?

“Take my knowledge, read about my personal experiences, and follow my steps. If you do that, I can tell you that your business will be more successful in the long run.” – Justin Calabrese

This book is published with authorized rights from

the PPI Global Company located in South Windsor, CT. Justin Calabrese is the owner and founder of PPI Global. He has fully reviewed this book and has approved it for publishing.

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ISBN: 978-0-578-01167-7 © 2009 PPI Global Company Distributed By PPI Global Company, South Windsor, CT Published by the Lulu Corporation, USA Do not re-publish or re-print this book without permission This book was written with the intentions of assisting you with the business startup process. This book was designed to be an adjunct to a college degree. In no ways should this book substitute a College education. The information in this book is a personal view of the business process. Justin Calabrese is not responsible for misinterpreted information. The information described is compiled through personal individual experiences.

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Dedication Page This book is dedicated to:

Mike Bruner with pride, and gratitude

“Live every day like it’s your last” - Mike Bruner

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Part 1

Getting To Know Justin Calabrese

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Justin’s Early Life Justin Calabrese was born in Hartford, CT on April 11, 1990. He spent most of his childhood in South Windsor, CT where he grew up and attended public school. Justin was never sure what he wanted to do when he was older. With that in mind, Calabrese focused on his general studies and did not focus toward a specific topic in Grammar School. Calabrese attended Wapping Elementary and Timothy Edwards Middle School. At this time in his life he had not developed a full understanding for the business world. When Justin was ready, he moved onto South Windsor Public High School where he focused about 70% of his studies on business and public relations. During the four years at South Windsor High School, Calabrese learned and developed the basics for owning a company on his own along with the help of a few business teachers. “The rush was great! I could

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not get enough fun and enjoyment out of it,” stated Calabrese. Justin was positive that business was going to be a strong career for him.

Being A Teenager Some people would call Justin a more advanced teenager because he knows what he wants in life and he finds ways to get it. While at South Windsor High School, he studied the basics for business. His schedule was full making sure that he could manage his school work, his part-time job, and his desire for business. When Calabrese was 16 years old, he was encouraged by family and friends to open his first company. This came after Calabrese proposed an idea to his family about starting his own business. The process was hard and time consuming, however Calabrese decided to take the risk and go full throttle though the process. Today, Calabrese currently owns five companies. His love for

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business and his desire for more and more were put together to create his large company, PPI Global. PPI Global was created because Calabrese needed a legal name to operate under. Justin did not want to have each business floating out there on the market but in fact, he wanted to create a parent company. The parent company is PPI Global meaning Personal Protection International Global Company.

Owning A Business Owning a business is not easy. Calabrese currently owns five companies ranging from security to personal sports items. “Being a business owner is not easy! In fact, I am always watching out for problems within my company and areas to improve on,” – Justin Calabrese. Looking at the businesses that he currently owns, we see a large variety of topics and ideas.

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JC Surveillance was Calabrese’s first company. Calabrese started this company when he was 16 years old. It was started out of his house and was the building block for his other four companies that he owns today. JC Surveillance sells surveillance cameras, alarm systems, personal safety, and more. You can shop for over 1,000 items online and have them delivered right to your front door in just a few days. This is currently Justin’s largest company that he owns. JC Surveillance’s customer database holds thousands of customers from outside the United States alone. Because of the good name and reputation that JC Surveillance carries behind it, the business has been trusted by over five large retail companies including Billabong Clothing. This business can be found online at JCSurveillance.com. When JC Surveillance was not

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enough for Calabrese, he decided to open his next company. This company was called Hydro Splat. Hydro Splat is an online retailer that sells airsoft, water, and paintball guns to people around the country. Calabrese is strongly against the use of guns, however he has agreed to sell them as a hobby based item only. Because of the abundance of sales that were coming from JC Surveillance with airsoft guns, Calabrese decided to make this a separate company. The business is very stressful on Calabrese because of the liability and insurance issues that are implemented within the company to operate. You can view this company online at HydroSplat.com. Was this going to be it for Justin, or was he going to expand even more? Calabrese decided to expand again in late 2008 with two companies that would open just within two days

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from each other. These two companies were named CompanyInfo and Offer Dude. These are self-run businesses meaning that Justin does not work with them. He owns them and they fall under the PPI Global name, but the only thing he sees from the website is the check at the end of the month from the sales and revenue made. Calabrese is a firm believer that this is the answer to young business owners who are not familiar with the whole business idea. “The sites are called turnkey sites and you can purchase them for about $100 online. Google it and you will find it. They come in many different designs and layouts and are perfect for a beginner.” – Justin Calabrese. Calabrese finally opened Fly Justin. FlyJustin.com is a self run website that makes travel arrangements for customers around the world. You can fly from anywhere

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in the country any time at low prices. Fly Justin is a spinoff of other well known travel sites, however, Fly Justin offers additional benefits . You can book a road trip with the family or a complete vacation package. Have you always wanted to go on a cruise or take the trip to Disney World with the family? Do not worry because Fly Justin can take you their without the hassle and high booking fees that other websites offer. Calabrese’s system is linked in with all major airlines and hotel companies around the world.

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His Future Life With Business Calabrese does not want to run JC Surveillance, Hydro Splat, Company-Info, Offer Dude, and Fly Justin when he is older. In fact, he does not even want to keep the PPI Global name. He wants to sell off all of his companies and licenses and take the money and open a larger company. Within the next 20-30 years, Calabrese plans to open a large company like Wal-Mart or Target. He

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wants to be one of the world’s largest retailers, eventually making it up to the Wal-Mart level. He wants to open stores across the country and eventually around the world and someday have thousands of employee’s. Calabrese does not see why this is an impossibility. He has dreamed of becoming a business owner for a long time. At the age of 18 his dream came true when he opened his first five companies. What will own when he is 30 years old? Will his dream come true then? We will have to wait and see…

From Justin To You Hello everyone, my name is Justin Calabrese and I am the proud owner of five companies that fall under the name of PPI Global. I wanted to take a moment today to share with you my experiences in my downfalls of owning my companies. When I started

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out in 2006, I had no idea what I was getting into. I did not have a lot of money and resources available to me. This left me to open my company using knowledge that I had gained in my high school classes. It all started when I was attending an entrepreneurship class, and we were asked to complete our final year end project. The task was to develop a completed business plan of your dream business. We would then have to present it to the class on exam day. With that in mind, I got right to work preparing and researching the basics for owning a company. This research that I was completing in class was the building blocks for JC Surveillance. Little did I know that researching and preparing a bogus business plan for my high school class would lead to such a large real life experience?

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It took about two months for me to complete my business plan in class. I was sure not to tell anybody what my dream business would be. Exam day came around and I proudly stood in front of the group and revealed my dream company. It was a security store, retailing security cameras, alarm systems, personal safety equipment, police equipment, retail security, and much more. Because of my interest in that class, I received an A for a final grade. I did not think the class was hard in the first place in fact; it was the only class I really looked forward to. With two months of research and business information behind me I have to be honest, I was not ready for the business world. I had no training or experience nor did I have the money to carry out such a large dream. I always told myself, “If you can

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dream it you can do it.” That is exactly what I did. Just a few months after completing my sophomore year, in 2006, I became the owner of my first company. I took the process slow but made sure that I was moving at a steady pace. In early 2007, I created a complete website that had over 2,000 web pages on it. My website JCSurveillance.com, also hosted a complete 24/7 customer care center, live chat support, and a membership page where current customers could login to their account and check their order status, rebate offers, and sign up for coupons. I will not share how many members I currently have on my website, but I will tell you that the number is astronomical. Could this be? I’m only 18 years old and own a successful business. It is quite different for me to offering advice to people who are much older than me, and

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more experienced than I am. I have been to town meetings, business award ceremonies, schools, and public events, to share my knowledge, interest, and passion for the business world. I am Justin Calabrese, and I am the proud owner of The PPI Global Company. “Take your dreams and ideas in your hand, grasp onto them and make them come true. Nothing is impossible.” - Justin Calabrese

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Part 2

Prep Work & The Basics

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Helpful Hints & Basic Information Basic information is always helpful when opening a company. If someone wants to offer you information for free, take all you can get, because normally business information or How-To books can be rather expensive. Basic conversation starters with a business owner will act as gold to you and are the most valuable information. It’s one thing when you are reading information from a book like you are doing right now, but it’s another thing when you are getting firsthand experience. If you are face to face with a business owner, here are some conversation starters so you can get the most information out of an entrepreneur. The most important thing to do is not to ask them how much money they have. This is a turnoff and can end a conversation quickly. Here are a few conversation starters that may be helpful when

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talking to a business owner: •

So how did you get started?

•

What do you do exactly for a job?

•

Can you explain in more detail what your job entails? I’m a little confused on the whole idea.

•

How do I get started on a career path like you did?

•

Your job seems fun, what do you do?

If you are at the right place at the right time to ask these questions, and or conversation starters, then go ahead and do so. It could open a new topic and line of interest for you. You should always push for more and more information from a business owner when you are face to face with him or her. Do not make it noticeable

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that you are trying to squeeze them for information but do it in an interesting way. Remember that taking notes is a great way to remember information in the business world. Ask the owner if you can interview them because you are interested in being an entrepreneur and or someday a CEO.

Your Personality Plays A Roll Being rude and impolite during a business interview or meeting is not a good way to present yourself. It also is not a way to represent your company. Take into consideration that whatever move you make or however you dress has a reflection on your company and your company’s name. For example, if you dress in sweat pants and walk into a meeting, people may get the impression that your company is a mess and is not worth investing in. However, if you

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present yourself in a high manner and show polite skills, your company will have a better name and reputation to it. If you have an anger problem you want to consider this. You will also want to consider doing some face touchups or using makeup to present yourself in a better image. Always make your hair look nice by using gel or hairspray. You have to remember that whatever you look like and whatever way you present yourself will be a reflection on your company. If you are a service company that is always meeting with people, you may want to dress in a suit and tie to go to work each day. Just because you are the boss and you can do whatever you want, it does not mean that you can act rude towards others. Being rude or not showing manners will lower the work

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atmosphere and will put a bad spin on your company. This is something you do not want, especially when your employees pick up on your bad habits. Use common sense when running your company and when dealing with the public. If someone asks you for a piece of paper, and you do not have one, make every attempt to get one for the person. This will show the person that you are a hard worker and that you are dedicated to serving your customers needs, which is a part of every successful business’s policy.

“Never Say Never” You must take into consideration that the word “never” is bad! You do not want to say that. Saying the word “never” in the business world is like someone yelling “terrorist” in an airport. When someone asks you to do a task in the business world and you reply and say, “Ya right, I will never

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be able to do that,” you need to stop and think. Would Justin Calabrese say that he could never start a company? No he wouldn’t! He would find the ways to open a business even if he had to spend some money and take a few risks. If you hear someone say the word “never” you need to tell them to read this book. After reading this book, you will never say the word “never” again.

Being Responsible Face it, not all teens and adults are responsible. You can be the best person in your town but be very irresponsible. When owning a business you have to be sure that you carry out all tasks and activities that are assigned to you. This means that by being a business owner, you will have to file taxes and get licenses. Be responsible and file the taxes on time.

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Be responsible and get the proper licenses so the government doesn’t shut you down. Don’t only be responsible with tasks and jobs that you have to do, but be responsible with paper work and important documents. Do not loose important papers. Owning a business is not like being in elementary school. If the state sends you a tax return paper and you misplace it, they will not reissue it to you. It is your responsibility to find it, hold onto it, and keep it in a safe place. If you are saying that it is very hard for me to keep papers in a safe place, then maybe you need to invest some money into a file cabinet or a safe. Having a safe is the best option available because it locks and it can keep your information secure. It is also heavy so in the event that someone was to break in and steal your papers

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they have to take the whole safe, which will be hard for them to get into. Purchasing a storage cabinet can be expensive and not as secure. However you plan to organize your papers, keep them safe and secure until you need them, and be responsible with them. Would you misplace money? The answer is probably no… so do not misplace your important documents.

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Part 3

Are You Ready To Become A Business Owner?

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What To Expect You are about to be the owner of a successful company. What should you expect? Expect a lot of time and money to be spent into your project. You cannot make money without spending money. It will be necessary to devote a special amount of time each day to work on the company. You will also need to be prepared to make a separate email account for spam and customer emails. Yes, no joke people! You want to make a special email account just for your business. Do not publish your personal email. Each day you will receive about 200 emails ranging from scams to business loan offers, to bank scams, to customer emails. Do not let this clutter up in your personal email account. What about your home address? In my book I will say not to

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publish a home address. Be prepared for a large amount of spam and bulk mail to be sent to your house. This mail will range from free catalogs that companies will send, free offers, business credit card offers, and more. You may want to price a P.O. Box at your local post office. This will help to cut down and filter the amount of mail you receive each day. Just don’t get overwhelmed. Within your first few months of starting a company your mind will race all over the place. Your brain will tell you to do this and that, when in fact your body can not keep up with it. It may become unhealthy depending on the size and type of business you are starting. In the event you become overwhelmed in the process of starting a business, stop everything. Get a piece of paper and write down everything that you have to do. One by one, work through the list until it is

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done. Every time you brain has another task for you; just add it to the list. This is proven to work by several young business owners from around the world. It is a special way for your brain to empty out and de-clutter. Be expected to spend money. As I already stated, you cannot make money without spending money. If you find that within the first week of your operation, you are not making money (which may be normal) and you are spending thousands of dollars (not normal), you have a problem. You should only spend what you have. Do not spend a lot of money within the first week because you will have ten times the amount of expenses down the road that will require more money.

Do You Have The Time & Money? Have you ever asked yourself if you have the time and money to open

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a business? If you haven’t, ask yourself this question when you can really focus on yourself. Do you have enough time? Let’s face it everyone is busy and rarely do we have down time to just lounge around our house and think about making money. We are on the move all the time brining this and that here and there. You must have about four to seven hours a day to devote to your new company. If you do not have that time, then you may not be able to run a successful company. You have to think of a business as a new baby. You have to tend to it all the time because it cannot do anything for itself. If you do not care for it and take time to support it, then it will fail, just like a baby would suffer. Do we have enough green paper to start the business? Do I have money laying around the house that I

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can open my company or will I have to consider a loan? Just because you don’t have money lying around your house doesn’t mean that you can’t open a business. There are agencies out their like banks and private companies that will offer loans to new business owners. Before you consider a loan, you must think about the risks involved in that loan. You have to think, what if my business fails? Well to be honest, if your business fails and you have a $100,000 loan out from the bank, you are responsible for paying back that loan even if your business fails. Money is very dangerous. If you have money to open the company, then go for it. If you don’t have the money, and get a loan, you can get into a lot of trouble. Be responsible with your money because it will soon act as power. The more money you have in your bank account, the more power you will have in the business world with expanding the business to

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new and exciting heights. Justin Calabrese asks that you be responsible with your money. Money is power, fame, and obviously wealth. Use it wisely or it could end you in jail.

Are You Ready For Fame? Let’s just say that when you own a business, you will receive a lot of questions about how people can contact you for information. Do not feed anyone information that you do not know or cannot trust. After about six months your name will get out to other companies and to mysterious websites on the internet, even if you do

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not publish them. All it takes is for one person to take your name and make a press release and your information is out to millions across the World Wide Web. You have to watch out who gets your name though. If your name gets into the wrong hands, you can have your credit cards and identity stolen. This is the last thing you need when starting a business. If anyone approaches you for an autograph and or photo, do not give it out. They may take that signature home and make a credit card with your name or automatically sign you up for credit or mail offers. If you feel like there is too much information about you on the internet you can hire people to take it off. Special search engine technicians have the ability to edit search engine results so your information no longer appears when a search is conducted. Now when we say fame, it does not mean that you will walk the red

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carpet and make an appearance at the Golden Globe Awards. What a lot of people mean by small fame is that people will ask you via email and or phone for information and where they can contact you or see you in person. If people want to make appointments to visit with you or even take you out to dinner, and you do not know them, turn down the offer and do not respond to further questions by this person. If you think you can handle the fame aspect of a business, which is honestly not too bad, then you are ready to become an entrepreneur. Take the words written in this book and use them so you too can become a successful business owner.

What Not To Do When owning a business there are several things you do not want to do. Here is a list that has been

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compiled of past experiences that Justin Calabrese has experienced and what the internet says that young entrepreneur should not do when operating a business. •

Do not publish a home phone number or address.

•

Do not give out your SS number to anyone unless it is the government and or tax office.

•

Do not give out an autograph or photo of yourself if you do not know the person.

•

Whatever information you do make available on the computer, passwords protect it and back it up daily.

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Do not offer financial information to anyone, especially if you do not know them.

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•

Do not give out account passwords to anyone – even if they are your best friend.

•

Do not keep money if it is not yours – meaning that if you owe someone money do not hold onto it. It gives you a bad name and makes your business look bad.

•

Do not spend money just because you have it in your hand.

•

Do not spend more than 6 hours a day on your business or website. Working on it too much can take away from family time and or school work. It can also make you very depressed.

•

Do not choose a name that is confusing and hard to understand or pronounce. This

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can make your sales plummet. •

Do not make a business that has an off topic. Make a business that everyone can benefit from and that is up and coming.

•

Do not operate your business if you do not have a license. The government will find you and your operation will be shut down.

•

Don’t allow the business to grow beyond what you can handle. Only make it as large as what you can control.

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Part 4

What’s Going To Be My Idea?

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How To Choose A Good Idea Choosing an idea for your business is the biggest step so far. The idea for your company will be the building blocks and foundation for the rest of your company even 30 years down the road. You can get ideas for a business in your local community, school, home, or even another business. Whether you see it or not, ideas for successful businesses are floating out there, you will just have to learn how to grasp them and build upon it. Have you ever walked into an office or another store and said, “wow, these people really need a…?” This is a business opportunity. Let’s say that you walk into a dance studio and find that people are dancing on hardwood floors. You know that if they fall they could get hurt bad. You think of an idea to make a special portable padding device in the event that they fall. Wham, you just got a business idea. You would

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then have to market the idea, design the portable unit and sell it for a profit. That is the general concept of a business idea. You must not look too deep into the whole idea because there are opportunities awaiting you.

What’s Your Interest? Everyone has a special interest, whether it’s playing a sport, talking and being interactive with people, or even doing computer research. Business opportunities and ideas can form right from your interest that you have. Forming a business off of a basic interest that you or a friend may have

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is even better. If something interests you, then you will have a lot of knowledge on it and can easily inform others about it. This takes off half of the stress in the long run because most people starting businesses have to do a lot of pre-research into the area they are doing working in.

I See A Need For… Have you ever taken a walk into a building or even in your local park and think that there is a need for something? This is how about most businesses get started. Either you are annoyed with something within your community, or there is something that you feel just isn’t right about a situation. Take the solution to the problem and make a business idea about it. For example, when driving down the road, you often see people speeding and driving without care. This is not only a danger to them but to

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other innocent people on the road. You may want to create a device that can link back to the police department that tracks everyone’s speed so the police have a record of who speeds and what car it’s linked back to. Now granted, that will take a lot of work and government approval but you get the general idea of how a basic need within the community can turn into a multi-billion dollar industry. When starting a company and being an entrepreneur you must think this way. It is the easiest way to make money in the business world because once you come up with an idea that is needed and people like that idea, then you not only have your sales team backing you up but you have the support and help of the community which is priceless in the business world.

The Idea Game Let’s find out if you have what it takes to start a good business. Do you

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have a good business idea in mind? If you don’t, then here are some questions to put your thoughts into gear. •

What do you do or research on the computer?

•

What do you do in your free time when bored?

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What has annoyed you within the past 3 months about your town or community?

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If you were asked to write a five page paper, what topic could you write it on right away without doing research?

•

What topic can you talk about to carry out a full length conversation?

These are just a few of the questions you may want to consider when opening a company and or

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thinking of an idea. The idea will be your foundation for the next several years so you will want to choose wisely. Here are some ideas you may want to consider as a business: •

If you enjoy sports = sporting goods store.

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If you enjoy cars = auto parts store.

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If you enjoy education = teacher supplies store.

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If you enjoy winter sports = ski & snowboard rental and equipment shop.

•

If you enjoy hanging out with friends = dating website and or online friend community.

•

If you enjoy scrapbooking =

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scrapbook supply store. •

If you enjoy making things = gift basket store or crafts store.

•

If you enjoy eating = grocery store.

•

If you enjoy eating out = restaurant and or chain fast food chain.

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Part 5

How Much Work Will It Require?

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Time Factors Lets admit that we just don’t have time in our lives to stay at home all day from morning to night and work on the computer. It’s ok if you work on your business all day. The more time you dedicate to the company, the faster it will develop and the larger it will grow. If you have children, the process of opening a company will take longer unless you can afford to hire someone to care for your kids during the day. As you begin to create your company, you may want to do your best to prevent interruptions. It is vital that you have complete concentration within the first week of your business. Put your family first, then your company second. Consolidate trips if you are on the road doing errands all day long. Do not go grocery shopping every day

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when you only need milk. By consolidating trips you can plan your time wisely and get the most out of your day. This will also help you in the long run when your company takes off and you are making an income for the family. Plan to dedicate several hours per day to your new business. If you are opening a retail store you will need to spend a little extra time. Not only will you need to work on your website but you will need to focus on getting your retail space (store) up to code and ready for your first customers. Have you ever heard the expression “time is money in business?” That saying is true because when you spend time you will make more money, and when you are pressured for time during wasteful situations weeding out the less important tasks will result in better pay.

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Work Speed Your work speed can play a big part in how much time will be required to open the company. Are you a dedicated and fast worker? If you are, this will help you because you can accomplish more tasks per hour of work. Do not panic if you cannot work as past as your friend or business partner. You may be good at certain tasks like billing and paperwork. Split up the work so your business partner can assist in the areas that you are not

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so fast in. You cannot procrastinate when opening a company. Do not waste your time if someone comes knocking at your door trying to approve you for a bank loan. You have work to do and don’t have time to waste on an hour presentation from the sales man. Time is money. You need to pick the important things and leave the nonvital issues until you have time or can hire another employee to assist you. Use simple tools like a basic calculator to check your work if you are not good in mathematics. You want to work fast but do not want to make mistakes. Making mistakes will cause more of a problem in the long run because you will need to go back and edit your documents. Normally, when one figure is off about 300 other figures and numbers are off because one figure can be a building block for

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other numbers. Work fast, set a pace for yourself, take a break when you need it, and get the work done. If you set a pace and become overwhelmed, you need to take a break. Put down everything you are doing, or finish up what you are doing, and take a walk, get a snack, or take a nap. Let your mind flow clear of what you are doing. Do not become overwhelmed in the business startup process because it can be very unhealthy for your lifestyle and for your family’s attitude.

Can I Still Have A Life? Yes, owing a business does not require as much work as when you are opening it up. Opening a company is the most demanding, stressful, and financial straining task you will probably ever do in your life. You will need to balance your business and your friends. Do not loose friends over

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opening a business; it is not worth the extra stress. Keep in touch with your friends often. Keep them up to date on what is going on. Talking to other people is a great way to get the stress off of your mind. Take your friends out for dinner and plan activities with them. You can even make a plan if you are not sure about how to balance your friends and your business. Get a piece of paper and write down the tasks you want to for this week with the business. This list may include items like: •

I need to clean up clutter and paperwork.

•

I need to order and set up three more cash registers.

•

I will need to complete a budget list for January to hand

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into the bank. •

I am low on pens and sales order books so I need to reorder those.

•

I need to purchase a neon “Open” sign and hire electrician to install it for me.

Now that you have your list of tasks that you need to run your company, make a list of activities that you want to do with your friends. When you are done with the list it should look like: •

I want to take Jamie out to dinner and go bowling with her.

•

I want to call Stephanie on the phone and chat for no longer then one hour.

•

I should make plans to take John out to see the basketball game so we can catch up on

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our sports. Once you have that done, you want to combine the two making a 2 to 1 ratio. Complete 2 business tasks then add in 1 friend activity. This will help to keep your mind clear and will still keep you active with your friends.

The More You Work, The More Money You Will Make Yes; it was said before that time is money in business. The more money your company makes, the less stress you as an individual will have. It is every business owner’s dream to be a millionaire within the first year. However, as we all know, unless your business is in demand and you have invested several million of dollars into it, you probably will not make a million dollars on it within the first year. If you continue to grow your company

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and keep your networks open and plan your time correctly, you will have no problem making your company a million dollar business within a few years. Invest your time and money wisely and use your mind cleverly to provide your business with the knowledge needed to grow and succeed. If you have to choose between time with friends and a business contract, pursue the business contract first. You could end up being worth millions of dollars if you are lucky.

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Part 6

Choosing My Target Market

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What Is A Target Market So you have a great idea for your business? You have planned out the basic steps for starting the company, but now you have one last part before you can really get started with the business process. You need to find out who will benefit from your products and services. Each business is different depending on the location, the areas it serves, the styles of the business, and other factors. Keep in mind that not all businesses are the same when it comes to marketing. Businesses will target different people with different incomes from different parts of the world. Many business owners make a huge mistake from the start. They look at a map of the world and think that their business will be accessible all over the world. That’s fine if you have about $20 million dollars per day to advertise. About 99.8% of all

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businesses do not have that kind of budget so you have to create a target market. A target market is the area and or products that your business will be targeting. What will your business aim for and who will benefit from it? Are there enough people within the local area to market and advertise my items to? Does my business belong in this town? These are all questions you must ask yourself about the company you are starting.

Choosing A Market With Your Idea You will need to choose an area that has the best locations in it that attract your customers. If you are starting a clothing store with teenage clothing, do not put it next to a store that sells clothing for $100. Your business will not have a chance. If you are selling teenage clothing, you will

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want to target a mall that attracts a lot of teenagers. If you do not want to put it in a mall, choose a strip mall. Do not put your clothing store in a building that stands alone. The whole target marketing process boils down to a few concepts. You want to choose the area that best fits your products, topic, or ideas. Do not put a high-end jewelry store in a mall that is 100 years old and run down and ageing. Put that jewelry store in a nice mall or separate area that is in excellent condition.

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Does My business Go In A Mall? This will depend on what type of business you are starting. Here is a list that describes the type of business and where it should be located to best target your market: •

Designer Clothing store = mall

•

Department store = mall or stand alone

•

Auto shop = stand alone

•

Restaurant = mall or stand alone

•

Teenager clothing store = mall

Stand alone stores are buildings that are all by themselves and are not linked to anyone else. These are not in malls or strip malls but are how many restaurants are set up. Mall stores are stores in a mall that is linked together. A lot of chain

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businesses and clothing stores are found in a mall, especially teen and designer clothing stores. Do not rule out the possibility that you can still have your business online. If renting a space is too expensive you may not want to have an actual store. Maybe your business is doing people’s taxes or assisting in tax refunds. You can do that electronically online (however it is best if done in person). All you will need is a store front online, some hosting, and some good advertising.

What Is My Target Market? Take these questions and answer them. These will help you to determine where your target market is. •

What age group is your business oriented towards?

•

What is the yearly income your customer should have per

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household to afford your prices and fee’s? •

What type of business is it that you own? Should it target people that have a need within your area?

Some of these questions can be simple to answer and others can’t. For example if your business is selling high end furniture, that has an ocean older look to it, and a chair cost the customer $1,000 to buy in your store, you may want to target people in Florida. Your business will probably target older retired people or people that have a lot of money.

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Part 7

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Keep The Name Simple Choosing a business name can be very simple yet time consuming. When you are thinking of a name for your company, several ideas probably rush into your head. Most of these names are probably taken by other businesses and others are probably very complicated for people to spell or understand. You want to remember to keep your name simple. Simple meaning catchy, but not too hard for the customer to spell, and not to hard for them to remember. Let’s think about this. If you hear a sports ad on the radio advertising football gear for half price, you may be interested in visiting the website or business. If the name of the company is “Football Plus” then you may remember it more easily than if the name of the company was “Joes Sporting Gear.” You want to tie the topic of you business into the name.

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Don’t have a crazy name just because you like it. Your business will fail because of it Keeping your name simple can also have an effect on the amount of sales you have. If customers can easily navigate to your website and can easily spell the name of the company, then you have a great chance of them recalling it when they hear it on the radio or see it on a TV commercial.

Here are some aspects to remember when choosing a name for your business: •

Is the name unique meaning that no other companies have used it yet?

•

Is it hard to spell or does it have unusual wording to it?

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•

If you name has multiple parts to it then do the part flow together or is it choppy?

•

Can you find a domain name available (URL) to fit your name?

•

Is the name too long for someone to type or spell?

•

Is it already taken as a DBA within your town (you will want to check with your local town hall to avoid legal problems)?

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Choosing a logo can take a lot of time and will be applied to your website, flyers, and business cards that you send out to people and clients. Your logo should consist of the following: •

It should be neat, clean, and have a sharp resolution to it.

•

It should not contain inappropriate content or saying that may offend customers or clients.

•

It should look professional in a way that you approve of.

•

It should have some tie to your company name, meaning, or topic.

•

It should contain one image and one slogan on it.

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Having a good logo can make your business more presentable and memorable. Be prepared to explain to people how the image ties into your company. A lot of people will also ask you why you chose that image over another image. People that ask these questions will be: •

Family

•

Friends

•

Other business owners

•

Town hall representatives

•

People you will be doing business with

For example, if you own a sporting goods store, you may want to add a football for your logo and then add some flames coming off to it to show taste and expression. You may

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also want to put the company name on the bottom of the logo in flaming letters, trying to keep the image all the same text and format.

Add Lots Of Color & Flavor To It When you choose a logo to represent your company you have to think of it as a first impression. When people first see your company logo they will automatically think of the structure of your business. For example, if someone took no time and rushed into the logo process and drew it by hand then people may think that your business is very cheap, unprofessional, and not worthwhile to shop there. Unless your business is an art studio where you sell drawings or teach drawing lessons, your logo should not be drawn by hand. A logo should be done on the computer using computer graphics

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and lots of color. It should not exceed 300 X 300 pixels because you do not want it to be the main focal point on a business card or flyer. Make your logo stand out! You want to be different from all the other companies out there. If the computer will make 3D graphics for you, then experiment and play around with the different pictures and formats it offers. You can pick up logo making software at a store or even online. It will run anywhere from $20 to $100 to make a good looking logo. You can always hire an artist if you are not happy with the job the computer is doing. Be prepared to pay a lot more money for this process.

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Make A Slogan For The Company Making a slogan for your company is also an important task that you must think about. Do NOT choose a slogan that: •

Is too long in length

•

Sounds unprofessional

•

May lower the potential of professionalism within your company

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•

May scare away customers

•

May put a bad name or spin on your company

•

Is to short in length

•

Is choppy or does not flow

•

Has long or hard to spell words

•

May be offensive to people of a certain race, gender, or sex

When you make a slogan for you company make it relate to your company name and business topic. You do not want to make a slogan that is rude or impolite to the customer. This can be a turnoff and can send customers to shop with your other competitors, which you do not want. Make your slogan customer

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friendly. Make it warming to the customer’s heart so that it makes your business sound comfortable and trusting. The last thing you want your slogan to do is to crush the customer’s hopes of your company.

Protect Your Name & Slogan With Legal Rights So you have a wonderful name and slogan for your company, and now it’s time to protect it legally. You have worked all day to think of it, and now you don’t want anyone else to pick it up and use it for their company. You will have to copyright your name and trademark your logo. The best process and cost effective way of doing this is to log online and use an online copyright service. You may also want to contact a lawyer for good advice on what companies to use. If he or she says that their legal office can do it, ask the fee’s before giving them the business. The copyright

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process of the United States works the same; however the process will vary from copyright business to copyright business.

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Part 8

Making My Business Plan

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Why Do I Need A Business Plan? Having a business plan is like having a floor plan drawn of a building or a house. It is the basic outline of the company from start to finish. Not only will it include facts about the business but it will include information about the owners, and who will be running the company. Having a well written business plan is the first major step to owning a successful company. When you have a well written and organized plan you will know exactly what to expect. When you go to apply for a bank loan or a government issued license for the company, they will ask for a business plan. There is no doubt about it. If you do not have a business plan do not expect to make money. If you plan to get a bank loan you will want to be sure you have one. Leaving a section or chapter out of the

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business plan is a bad sign. When you forget sections of the plan or if the bank can not verify information for your account, then it appears like you are trying to hide something. You do not want to have a bad image on yourself or your business just because of your careless actions. When you walk into the bank, they probably will not know you. In today’s day and age a $100,000 plus loan is a big risk for a bank to take. With layoffs and companies going bankrupt, the banks and government want to make sure that their customers are serious about the company. The only way for the bank to approve you for the loan is to use the information off of the business plan. With that said, you should understand the importance of a well developed business plan.

What Makes A Good Plan A good business plan is very

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professional. It is well constructed and edited for spelling mistakes, especially if you are a young business owner. Here is a detailed list of what makes a good business plan: •

Your plan should contains no spelling or grammatical errors.

•

You should add as much detail as possible and elaborate on each topic.

•

You should provide the full names of the employees in your company that will be working for you.

•

You should use specific dates and prices if asked.

•

You should answer the question that is being asked, and do not provide a run-around for the answer.

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•

Do not exaggerate information, but state real facts and real facts only.

•

Do not use page borders, logos, or graphics in your plan.

•

Use only black and white ink. If you do not have black and white, use dark blue ink.

•

Bold the titles and sub-titles of each section so people reading it can understand your sections clearly.

•

Indent and provide sources if you state a fact.

•

Back up all outside sources in the event the bank or government questions where something came from.

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•

Study your plan once completed in the event people ask you questions about it. You do not want to stumble over answers. This will make you look unprepared and not ready to open a company.

Parts Of A Business Plan During a business plan you will want to be sure that you include the categories in the following list. If you leave out a category or do not add in a section because of carelessness, it could cost you your whole company and business future. Here are the items that will make your business plan successful: •

Business summary

•

Business description

•

Market Analysis

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•

Management

•

Operations

•

Critical risks within the company

•

Financial projections

•

Appendix

By including these items your business plan will be ready for the review by the bank. Be sure that your business plan is about 10-15 pages long. This is the normal length for a small retail company’s business plan. If you want to go beyond the 15 page limit, do so. Do not make your plan shorter than 10 pages. It will look like you are empty for words and are not familiar with your own company. This is the last thing you want the banks and government to think about.

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The next section is a breakdown of the business plan and where the information should be located. You should expand on the information below to develop a full length business plan. If you require more help you can search “business plans” online using Google or another search engine.

Breakdown Of A Business Plan •

Business summary Your business summary should

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be a total summary of your business from beginning to end. It should be no longer then 3-4 pages and should include the company profile, nature of the product being sold or offered, the size of the company, growth trends within your company in the next three to five years, key projects and or tasks you plan to accomplish, and a full description of how you will manage your money. •

Business description Now you need to go into even more detail. Spell each item or topic out to the reader. Do not make it to obvious you are trying to spell words out to them but blend in your sentences to make them flow. You will want to include a full description of your mission statement, money and financial requirements

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while in business, history behind the company, the status and proposed legal status of your company (LLC, corporation, etc.), and product research and development. •

Market Analysis Here you will want to enter in your target market, your competitors, and other local companies who will try to compete with you. Add a description of the industry you are in. You will also want to provide information as of why your company should be in this market. Be sure not to repeat the growth trend as it has already been stated.

•

Management Here you will want to make a full description using first and last names of the employees of

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the management team. The banks will be interested to know who they are lending money to. You will want to state the name of the employees, the positions they hold, their descriptions, and what history and or experience they have had in the past with conducting a business. Do not lie, be truthful about your employees in case the bank does background checks on them, and be sure to include yourself in this process. You are the business owner and need to include yourself in this management team as the owner. •

Operations This section will help the banks to understand how your company will run and what your financial goals will be. By

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seeing what you are concerned about and how your company will operate will give them a better understanding of you will budget your funds. In this section focus on your marketing strategy, your personnel and how they will be paid, your customer support, your production plan, and how you will do research in the future for your products and or services you offer. •

Critical risks within the company Every company has risks. Weather they are serious or not, all companies have to be prepared of them. By adding this section, the government and banks can see that you are prepared for the risks associated with your company.

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•

•

You will want to focus on your internal and external risks, and insurance. Financial projections How will your finances go? Hopefully, they will increase and not decrease, but you must be prepared for them to go either way. In this section you will want to focus on your first year financial plan by month and by quarter, five year forecast, a ratio perspective, a strategy to exit the business in the event of an emergency, historical financial data, and a break even analysis. Appendix Your last section should be full of facts to back up the business plan. After all, anyone can write a plan, but the banks are looking for proven facts to back up your plan and data. You will

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want to focus on, price lists of competitors, resumes of your employees, agreements or contracts signed between you and your employees about special deals, benefits, and contracts, facts of a questionnaire providing proof of data from the community or state.

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Part 9

Getting Licensed

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Where To Find Your Licenses When owning a company you will want to be sure that you are fully licensed to be prepared to open your doors for business. Without having licenses your business will be shut down and fined by the local government and or police force. Do not attempt to operate a business without proper licenses from the proper sources. There are several local resources that you can look into to find the license that is necessary to run your business successfully. Let’s take a closer look at where you can find your licenses. Take note that depending on what company you open may require different licenses. For example, if you are operating a restaurant you want to be sure to get a food license. If you own a retail store you will not need a license but will need a resellers permit. Here’s a complete list of licenses you will need

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and where to find them: •

Business licenses can be purchased online or from your local government office. This type of license gives you the right to operate a business within your local town or city. When purchasing a business license online, the company you choose will file it for you with the correct state. Filing online can be simple, all you have to do is fill out a basic questionnaire about your company and submit it to them. You should receive a verification statement or certificate in the mail confirming your license. This type of license is required for all businesses operating in the United States.

•

Fictional name (DBA) is optional

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if you are starting a sole proprietorship or a partnership. This is known as a fictitious name, and basically allows you to do business under the name of your company. This license is needed if your business name is different from your actual name. For example if John Doe is doing business as “Doe’s Pizza,” then you will want a DBA. Most banks will require a DBA in order to open a business bank account. You can obtain one by going to your local town hall. A registration fee of anywhere from $25 - $100 will be required. •

Health Department permit can be obtained by your local health department or government agency. This will be required if you are selling food to customers or vendors.

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In order to obtain this type of permit, the health department will send out an inspector to inspect your facility before issuing the license. The cost of this will be between $25 - $200 depending on the size of your business and the amount of equipment you have. •

Liquor and alcohol license can be found by your local alcohol beverage control agency. If you are a restaurant or a package store selling, offering, or retailing alcohol, beer, or wine, you will be required to obtain a permit in this category. You can find phone numbers and information about your local government agency in the blue government pages listed in your phonebook. Once you obtain a permit, you will have to post signs and

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notifications to your customers that alcohol will be sold on the premises. Be responsible with this type of license because if you misuse it, it can be taken away, or you can be shut down. •

Fire Department permit will be needed if you are selling flammable materials that can be a hazard to the public. In some states you have to obtain this permit before you can even open your doors for business. If you own a movie theater, nightclub, bar, retirement home, day-care center, you will want to consider adding this type of permit to your business.

•

Sign permit sounds quite odd but are a necessity if you are posting signs outside on your

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property. Some towns, cities, and states are very strict on the size of signs that you can install outside your company. This permit also allows you to control the lighting of the sign, the colors used in the sign, and animations that sign may include. Some towns do not want big, bright, inappropriate, or ugly signs posted on the business owners’ front property. This can take away from the scenery and history of the town. Before having a sign manufactured for you, check your local laws so you can prevent costly mistakes. •

Federal licenses should be something that you do not have to worry about as a business owner. If you own a processing company, a TV station, or radio station, a

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federal license will be required of you. All other types of businesses do not require this type of license. •

State license will be required if you are electrician, auto mechanic, building contractor, plumber, or a real estate agent. Before issuing this permit, a government official will come out to inspect your area. You will want to contact your local town hall and chat with them to see what businesses require this type of license.

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What Kind Do I Need When owning a company, there are several types of licenses that you will need. Will you need a state license, a sign permit, fire department permit, or federal license? These are questions that you will want to ask yourself when starting a company. Contact your local town hall, or local government agency to find out what licenses you will need. You can also hire a lawyer to assist you in this process; however that can be costly and time-consuming. Use common sense when selecting licenses and do

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a lot of research into the companies that you are using to license your business. In the previous section, information was discussed about each different license. Use that information to determine the proper licenses needed to operate your company.

Are They Really Expensive To Obtain? Licenses are not expensive to obtain at all. They are required of your business in order to operate successfully. Operating without licenses could end business career very quickly. A general license will run you anywhere from $25 - $300 depending on the size of your company, how many assets the company has, and the equipment your company currently owns. In some events, a license is more than just handing over money to the government. Sometimes

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a government official will want to come out to your property and inspect your business before they issue a permit or license. Do not turn them away when they ask if they can make a visit. It will look like you are trying to hide something from them.

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Part 10

What Type Of Business Will I Own?

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LLC Opening a limited liability company is a great way to get started. You will enjoy the safety and security of what a corporation receives but you will not have to pay the high taxes. This differs from a basic corporation because in a corporation you’re only allowed 100 shareholders. Within LLC you can have unlimited shareholders and the owner can have full responsibility and control over the company. Some states will require that you file an operating agreement with them before opening for business. If you plan to make your business nationwide and you have stores and offices in other states, you have to ask each individual state how they will treat a business that is based outside of that state. Some states and governments will not allow this practice. LLC’s are one of the most stable companies that are available to

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a new business owner.

Corporation Not only will a Corporation require a lot of responsibility, effort, and money but it will require more licenses and tax forms, especially as the business grows. Raising money to start a corporation can be very easy. This type of business can sell stocks, either common or preferred to raise funds to better grow and stabilize the company. Corporations follow laws that are formed under each state. For legal references and information you may want to hire a lawyer. He or she will back the process of starting a corporation legally. Licenses, registration documents, bank statements, and additional paperwork will be required in order for you to open a corporation. Drawbacks of a owning a corporation may include more taxes,

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shareholder payouts, more responsibility, and more communication between management. If your company has a problem communicating, owning a corporation may be difficult or impossible.

Sole-Proprietorship This type of business structure involves only one person. This does not involve a lot of work in licenses to get started. The government makes it so easy that when it comes time to file for taxes you report your earnings on Form 1040. Many young business owners start out as sole-proprietorship and continue to work their way up to partnerships or corporations. By being the only owner of the company, you are open to more scams and risks. You will want to hire a lawyer to guide you through the process of starting up a sole-proprietorship. Obtaining a loan is more difficult because banks are not

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sure if they can trust just one individual. You will also be placing your assets at risk. In the event that you are sued, your house, car, and personal valuables, may be seized.

Partnership A partnership means that several people own the company. It is not a sole-proprietorship and it’s not a corporation. When starting a partnership, you will want to make an agreement between your other partners. You will want to split up the jobs so arguments do not rise and problems do not occur. There should be a clear understanding of each partner’s job description. Having a strict schedule and sticking to it will help your business run smoothly. Take note that every person that is listed as owning the company is responsible for part of it. If your business fails and you

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are in debt, all owners of the company are responsible, not just one.

Non-Profit Organization Owning a non-profit organization or non-profit corporation can have several benefits to it. If you are the owner of a non-profit organization, you may receive sales, property, and income tax exemptions or discounts. You will still have to pay employment taxes, and file tax returns on a regular basis. Check with your state to make sure that you fully understand the risks and benefits about owning a non-profit organization. You may also want to hire a lawyer to guide you through the process of opening one. One wrong move in a non-profit organization category could cost you your business.

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Part 11

Get Legal Help On Your Side

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How Do I Get Legal Help The biggest mistake a new business owner can make is not getting legal help on their side. This should be your first priority when starting a company. A lawyer or a paralegal will assist you in the process of licenses, website help, and of course what is legal. They will help you choose products to sell, vendors to become contracted with, and more. Lawyers and paralegals can be very expensive to hire on an hourly basis. You will want to contact one and explain your situation to them. Ask them if they are willing to open a contract between you and then to assist you with your new company. Because lawyers always are looking for business, they will probably jump on the offer. Set a price, and read our section on negotiation. Getting a lawyer is very easy. You can stop into your local legal office, or check your local yellow

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pages for available lawyers. There are several lawyers for different businesses. You have to be sure to ask the lawyer what type of company he or she will represent because some of them will not assist you with starting a company, but will assist you in a family lawsuit. Be paired to pay a lawyer anywhere from $100 to $300 per hour for their service in advice. It is always better to have legal assistance on your side. When you are not sure if something is legal, they will be able to tell you.

What To Look For When Hiring A Lawyer? When hiring a lawyer you want to look for several things. You can ask the lawyer over the phone if he or she is familiar with certain areas of the business industry or you can meet with him or her in person. Here’s a list of special characteristics to look for when

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meeting with a lawyer. If the lawyer does not have any of these qualities you may not want to hire them. •

Do they have enough experience to be able to assist in the process of starting a company? Ask them if they have ever helped a company before. If they say yes, ask them the name of that company. You may then want to go ask the business owner about the overall experience they had with that particular lawyer. If the lawyer has not helped to start up a company, you may not want to hire them. You always want to hire a lawyer that has a lot of experience.

•

Can the lawyer understand what you are talking about? Do they understand your type

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of business? If the lawyer does not completely understand what you are talking about, you may want to inform them a little bit more. Show them documents, paperwork, and information from your company that may give them a better understanding. If the lawyer still does not understand, you may not want to hire them. Remember that you are paying the lawyer on an hourly basis. If he or she is using your time just because they do not understand what you’re talking about, this is not the lawyer for you. •

Will the lawyer be able to communicate between you, the town, the state, and between other important people within your company? If the lawyer has a problem

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communicating, you do not want to hire this lawyer. Communication is one of the largest aspects that you must master in the business world. No communication will equal no money and a failed business. Make sure the communication is the largest part of your company. Keep others informed and up-to-date as to what is going on. If the lawyer cannot provide this he is not the right one for you. •

Can I meet with my lawyer outside of business hours or if there is an emergency? You want to be sure that your lawyer is flexible with the time he can meet with you in the event that you have an emergency. If your lawyer sticks to a very strict schedule, and appointments must be

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made several weeks in advance, do not hire this lawyer. You want to be able to have a lawyer that will work with you when you need help, and will assist you on short notice. •

Will the lawyer charge me outrageous fees that I cannot afford to pay? You want to be sure that your lawyer has reasonable rates and fees. Ask your lawyer how they will charge you. If they throw out an outrageous rate you may want to go home and sleep on it. Do not jump into a contract that you cannot afford. Remember that you still have business expenses to pay out. A lawyer is not your only expense.

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Collection Agency’s You also want to get in contact with a collection agency. Hiring to collection agency will be beneficial for you when customers do not pay their bills. In the event that you offer your customers credit cards, or loans, you will want to hire an agency to go after people who are late on payments, or do not pay their bills at all. Usually

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collection agencies will take a percentage of the money that is collected. Granted you will not get all of your money back, but you will get about 80% of it. After you have sent the customer to collections, it will also be reflected on their credit statement and their credit score. If you suspect that a customer is not paying their bill on time or has no intentions to pay their bill, you may want to take the easy way out. Instead of sending them directly to collections, send them a basic letter in the mail stating that in the event that they do not pay their bill, they will be sent to collections. This is a very scary thought for a customer and will most likely pay up. No customer or person wants to be sent to a collection agency. It hurts your credit score, credit rating, and ruins their image when they apply for a loan.

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Get To Know Local Police Officers Getting to know local police officers is also a plus. When you see a police officer in the community, smile and say hello. If the time is right, you may want to start a brief conversation with them. Getting to know police officers within your community will help you in the event that you have a robbery, break in, or an emergency that requires the police. If you own a restaurant, police may stop in to purchase food or to socialize. You can offer them a discount on their food or you can take a few minutes out of your day to talk with them. This also works if you own a convenience store or a gas station. Do not suck up to the police; be friendly, nice, kind, and supportive to them.

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Part 12

How Will I Fund My Company?

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Personal Money What does it mean to fund the company? It means how will you pay for it? You may want to use personal savings or investments that are easy to access. If you are starting a large company or corporation, you may not have the funds available to you at home. If you are starting a smaller company or a website, all you may need is about $4,000. Using your personal money is better because you do not need to take out a loan or go to the bank for money. You will also not have any loans to pay back to the bank and everything you spend is right out of your pocket. Using your personal money will also teach you to budget your money better, plan ahead, and use your money more wisely. If you are starting an Internet company, do not get discouraged if you only have $2,000 of personal money to invest. $2,000 can work a lot

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of wonders in the business world. With money being power, those thousands of dollars can be the key to your future.

Bank Loans Bank loans are another good way to fund your company, however you must take in consideration that whatever you take out the bank must be repaid. You will also want to remember that bank loans require more work than using money out of your pocket. Your business plan must be perfect in every way. In order to have a loan approved, you have to be very knowledgeable about your business to make the bank interested in what you have to offer. Do not be discouraged if you do not get approved for your loan on your first try. Do not give up if you are not approved. If you do not get approved ask the bank why, go to a different bank using the knowledge that you gained, and reapply for that loan.

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Different banks have different policies and procedures that they must follow. If you cannot get approved by a bank for your loan, you may want to give a look into a government loan. Government loans are more favorable if you require hundreds of thousands of dollars or even millions to start your dream company.

Government Loans If you are not approved by a bank for a loan, you may want to try the Small Business Administration (SBA). This is a government program that encourages the growth of small companies and young entrepreneurs. The SBA is an excellent source for funds whether you are looking for a small or large amount of money. When applying for a loan with the SBA, you want to consider these: •

You will want a good personal financial history. The SBA looks

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at the business owners past credit line and cash flow. •

You have to be confident in what you’re doing. The SBA will not give money out to anybody who is not confident or sure that their business will last.

•

Make sure that you have made personal investments into your company. The SBA will look into how much you personally have given to your company.

•

In the event you are unable to pay back your loan , the government will also want to see what you have for assets. If you do not own any assets your chances of getting a loan are greatly reduced.

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Part 13

Is It Ok To Spend Money?

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Can I Spend Money? Yes! You have to spend money to make money. If you do not spend money, you will not see results from your company, unless others are spending something for you. Money in the business world will act as power. As your business develops more and more, that statement will become clearer. Spending money can in fact be very addicting. Once you spend $100 you may feel the urge to spend more. Why is this? This is because when you spend money you get great results, most of the time. If you spend hundred dollars on advertising and you see a $4,000 monthly income increase then you want to use that service again and again, hence making spending money addicting. So, do not spend outside your limits. You have to plan and document each dollar that is spent. You may want to consider making a

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spending log to track your money. When you realize that you are spending money and cannot afford it or you feel like you are spending more then you have you may have a problem. You need to immediately stop spending money on the foolish things within the company like internet popup advertising and focus on saving. You will need to make a plan. By making a plan, you can list your expenses verse your income and really see where you need to cut back. Remember that if you are running an actual business with a store, you need to have money for rent, electricity, heat, and etc. Without these necessities you will be shut down by the government for health reasons. Without heat or electricity your business can not operate. Spend your money wisely because money has a lot of power and potential behind it.

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How Much Can I Spend? You can spend the money you make. Do not feel like you have to save every penny. If you have a spending problem take into consideration that whatever you spend on a credit card or take out from the bank will have to be paid back. When you spend money, you are utilizing resources from within the company. Spending your earnings can result in a loss of an employee or a piece of equipment that you needed because you can no longer afford it. Save some money! You do not want to spend all the money you make because emergencies and special events will arise that you will need to fund. Without money, you will not be able to afford these vital aspects of your company. For example, if you made $100,000 last month with your

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company and you decided to go purchase a Hummer for a promotional car. You also had it painted bright purple with your company name on the side of it so it would be more attractive when out on the roads or at a special event. The car and paint job cost you a total of $75,000. You have just spent three fourths of your monthly earnings on a car. You also notice that you have a leak in your roof that needs to be repaired. That cost you a total of $5,000. Then your Hummer breaks down and cannot start one morning. It cost another $500 to get a new battery and service. You have just spend most of your monthly income on a car (that you did not need in the first place) and now have just a little bit of money left. Once you pay out employee’s salary, rent, electricity, and etc. for the month, you are taking home just a little bit for your family. Money can be dangerous. Don’t spend it just

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because you have it. If you have a spending problem please take the real life stories that you hear about and ponder them. Several times a year you hear about people getting into trouble because of debt. Finish reading this section so you can completely understand the importance of saving some money.

Keep A Backup Reserve You will always want to keep a reserve of funds. In the event that you have a fire or a break in (hopefully you will be smart and operate with insurance) you should have a special bank account set up with at least $50,000 minimum in it depending on how large your company is. The reserve amount will vary from company to company. What if an emergency happens and you needed money? If you have trucks that operate on the road, you will have to

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keep a special reserve for them in the event that there is an accident, or a break down. You should have a backup of funds. You may also hear other people refer to this as a “rainy day fund.” Be smart and plan ahead with a special savings account.

I Have A Spending Problem – Now What? This is not something to take lightly! If you have a spending problem it may be beneficial to enroll in a class on money management. People with money spending problems tend to spend for no reason, or just because they are feeling the need to spend some cash. Save the cash for emergencies or even add it to your rainy day fund. If you have taken classes for your spending problem, you can contact the bank and explain that you want an account that is for deposit

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only. Most banks should be able to set up an account like this for you. This will allow you to deposit money into your account, but will not let you withdrawal money. You may want to consider hiring a financial planner to plan out your cash flow for you. Explain your situation and business to him and tell him what you want. He or she will place your money in investment accounts that will grow over a period of years so when you withdraw the money, you will have more money than you deposited (providing that it grows). For free information on money saving you can contact one of Justin Calabrese’s most favorite people, Suze Orman. Suze Orman can offer great information about planning for businesses and family savings. If you

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have a spending problem and your fico scores and or credit rating is affected because of your poor spending habits, log online to suzeorman.com and read about what she has to say. You may also want to pick up one of her books that she has written. You can find them in local book stores and on the internet.

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Part 14

Getting A Business Loan

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Business Loan Overview when you get a loan there are several responsibilities included with it. Can you handle the loan? What are the fees associated with your loan? Will I get approved? How long will the application process take? These are all questions you have to take into consideration when applying for a loan. There are several types available to you including government loans which have a higher risk. You want to make sure that you choose the correct type of loan that fits your needs. Choosing the wrong type can get you in trouble financially and with the law. To start the loan process you will need to go to your local bank and ask them about their policies. This could be the start to a good strong business, or it could be a start to a financially

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straining lifelong lesson. You do not need to pinpoint your exact loan type before you seek help. A representative from the bank will better assist you in finding a plan to fit your needs. It is always good though, to have an idea of what type of financing you will need before you step foot into the bank. The loan process can vary from bank to bank. Terms and conditions will also vary. Choose a bank that is financially steady and you can trust. Let’s take a look at what type of loans are available to you when starting a new business.

Types Of Loans Available To Me Line of credit loans: this is the most useful type of loan available for small and new business owners. This type of loan is generally acceptable for inventory control and operating costs. You will not want to purchase

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land, new buildings, or equipment with this loan type. This is generally a shortterm loan and can extend the cash in your bank account. These loans also carry low interest risks. Some banks will even allow you to cancel this loan in the event you think your business is going to fail. Payments are made monthly and the principle is paid at your convenience. Most of these loans are set for one year hoping that you’ll pay them back within a year’s time. If you do not require this type of loan now, take a moment and speak to a banker anyways. This will help you to become more familiar in the event you need to take out a loan. Installment loan: this loan is paid back monthly with equal amount of payments covering the principal and interest amounts. You will receive a lump sum of cash when you sign up for this type of loan. Paying off a loan early is better for you. The bank may

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not penalize you for paying off your loan early. Speaking to a representative at your local bank now, can financially save your business in the long run if this type of loan applies to you. Balloon loans: these loans are generally written under another category name if you can identify them properly. These loans are the same as an installment loan that we talked about earlier. In this type of loan a lender will offer a loan in which both interest and principle are paid in one single payment. Interim loans: when choosing this type of loan the bank will take extra security measures to ensure that whoever will be paying off this loan can in fact pay it off. You want to make sure the person is liable and dedicated to the bank. Secured and unsecured loans:

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there are two types of loans available to you at the bank. These two types are secured and unsecured loans. If your business seems to be off to a great start, your bank may sign off on an unsecured loan. As a new business owner receiving an unsecured loan is very unlikely, but in the event that you do receive this type of loan take it and use it wisely. You know the bank has great trust and has great hopes for your business. This type of loan will have very high interest rates. A secured loan is a little different on the other hand. It has lower interest rates and can be written in many forms. A secured loan is usually used to purchase equipment for your company or inventory.

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Applying For A Loan When you apply for a loan you want to be prepared to negotiate with the bank representative. You want to be well prepared with background knowledge from your company and information such as documents, printouts, flyers, and handouts to backup your facts. Look professional when you apply for a loan. No bank will want to dish out money to someone who is not well prepared and cannot represent themselves in a professional manner. Remember that a first impression means everything to a

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bank. So make your first impression positive and unforgettable by getting the loan that you need to start your company.

What Paperwork Will I Need? When you walk into the bank to apply for a loan you will probably be greeted and will be asked to take a seat. Appling for a loan is not as easy as just walking to the bank, talking to them, and walking out with $1 million dollars. You will need paperwork and information to prove that you actually own a company. Below is a list of documents that you will need to get started with the loan process. •

Cover sheet

•

Cover letter

•

Table of contents

•

How much you’ll be asking for

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•

History of your company

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Company management personnel

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Advertising documents

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Past financial history and information

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Financial projections

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Possible collateral

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Personal financial history

•

Any other documents that may be helpful

Providing the above information will make you look professional and prepared for your loan. If you do not have a specific document on a topic area that we have just covered, the

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bank may be suspicious. They may think that you are covering up something or do not have enough information on that topic area to explain to them. This is not good for you because the bank does not want to loan money to people who are unprepared and may not repay the funds.

Success Story With No Loans I, Justin Calabrese, the owner of the PPI Global Company, started my company with no loans. I did not go to the bank to set up a bank account and I didn’t ask for an advice from banking agents. Starting a company with no loans is possible. Back in the year of 2006, I used about $100 and decided to invest in website hosting and a tax registration number with the state of Connecticut. What used to be $100 sitting in my bank account is now many thousands. I use resources from the Internet and from my town to build

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the foundation and structure of my company. By using these costeffective alternatives, I was able to use my money in other areas that would later help my business to grow more. Granted, if you need to open a retail store and need to purchase a building, you may need to get a loan. I have found that starting your company on the Internet with just a website is a much easier way to start off. By having a website, it will expose your business to millions of possible customers across the web. I also took advantage of Google’s and Yahoo’s free Webmaster tools. Getting your website ranked in search engines is one of most important things you can do for your company. PPI Global was started with about $100. You have to learn how to budget your money properly so you can save and plan ahead for your future. When a sale came into my

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company, I would take my profit and put it aside. This is a smart thing to do because without a loan you don’t have much money. I was using the money from my customers after each sale was processed. Because I had so many sales on my site, my profit grew. This profit was later used to open new companies, purchase new equipment, and expand my business to other countries. It all boils down to how you play your cards in how you manage your money. Being successful in the business world is possible without a loan. I encourage you to start a company without a loan, start off with a website, and then build your business to new heights.

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Part 15

How To Negotiate Successfully

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Negotiating Is Big In Business If you do not negotiate in the business world, then you will be spending more money than is necessary. When you negotiate you are making an agreement between you and someone else to give you a service or product at a lower price. This can be very good if you do a lot of business with one vendor in particular. Never make a business deal without negotiating first. When you sit down to make a business deal with a customer or client, you will want to make negotiating your first priority.

Learn The Key Points In order to negotiate successfully, you will want follow a certain procedure. If you get carried away on a certain path or tangent, the other person may think differently about you. When you start the process of negotiating you want to remember

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these: •

Know your position on the issue

•

Don’t be nervous or shaky

•

Speak clearly and with confidence

•

Do not give up until your view is heard or an agreement is truly made

•

Do not let be walked over. Stand firm in your belief

•

Be prepared to walk away from the deal if you are not completely satisfied

Don’t Be Nervous This is just what the other party wants from you. They want you to be scared and show emotion as they talk. The more they talk about how the deal

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is better for them, the more nervous you will get. When a bargainer see’s you getting nervous, he or she will try to convince you that this is the way to go. Do not let your emotions over power you when negotiating. Here are some hints to consider helping you negotiate when you become nervous: •

Always use a happy face and do not show that you are scared

•

Be firm with every statement you make

•

Do not show too much enthusiasm toward the issue or bargain deal

•

Do not jump to conclusions… there is always something better to be offered

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If you follow these tips when you are sitting down at the negotiation table, then you should not have a problem controlling your emotions. Do not let the other person see your emotion, nor your sweaty hands.

Steps To Take When Negotiating When you are negotiation, it is very important that you take it step for step. If you know your position and are very strong to your side, then do not rush onto the issue. Take it step by step, even if you are dying to tell the negotiator more information. When negotiating take these steps and follow them. You may want to memorize them for the negotiating process: •

Know your position because he or she will try to talk you out of the position. You always want to be firm on your position and you do not want to let others try

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to shoot you down. Take the information you know about your business and use it to back up your position. Be firm with what you say. •

Know how the other side will gather the information and process it. When you make an offer to a negotiator, be prepared for them to fight back. You may want to consider pre-planning out the process by writing down sample questions and answers. This will help you to respond back in a positive manner. With a quick, fast answer, the negotiator will become nervous, especially if you know what you are talking about.

•

Understand that there is a stopping point in the negotiation process because

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some offers may not be possible. This is also known as “horse-trading.” At this point you have to lay out your options and the reasonable offers, and choose which will be in your best interest. Do not offer anything that will lower your business reputation.

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If you feel like you have been overpowered or feel like you are about to become, then you need to stop. You do not want to stop the process of the negotiation because this will look bad on your part. Do not ask to take a break during the process either. You will want to turn the tables around and force the strain on the other person. If you still cannot reach an agreement after you have tried to make some reasonable offers, then maybe you need to walk out. There are several other deals out there for you. For example, if you are purchasing a car for your company and you are trying to talk down the dealer $5,000.00 and he or she won’t budge, just walk away. There are several other cars out on the market for you to purchase.

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When negotiation, you will want to talk about a few very important points. It is vital that you cover all the points because if you do not and the offer is final, then problems could arise. Before you sign on the dotted line to confirm the deal that was just negotiated you will want to consider these: •

Number of items in the deal

•

Payment methods that will be accepted

•

The condition of the merchandise

•

The time frames that will be involved

•

Shipping methods

•

Storage for the items or service equipment

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•

Penalty rate if the deal is broken

•

Sales tax rates

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Shipping prices and or rates

•

Special discounts for bulk items

•

The closing date

•

Return period or warrantee time frame

•

Insurance costs on the item

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Condition of the goods when delivered off the truck

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Who will pay legal fees if a lawyer is needed

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Who will pay other expenses (list the expenses in detail)

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•

Anything else that is important to your deal

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Part 16

Don’t Be Taken Advantage Of!

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Stand Up For Yourself Whether you own a retail company, or a service based company, people will take advantage of you and your services offered. If you own a restaurant, people will attempt to insult your food because of a simple error. You have to stand up for yourself and stand behind company’s policy if you feel that the customer has violated that policy. Be careful with what you say. If the customer is looking for a fight, then back away or call the police if it is serious enough. It is better to say nothing at all, then to say something that you cannot take back. Do not swear, or act inappropriate toward the customer or customers, but approach the situation in a professional manner, making sure that the customer’s anger does not become escalated.

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Policy Having a customer agreement policy or terms of service is one of the most important things that your business can post on your walls. When your customer purchases from your company, make then sign on a line or agree to the customer policy. You do not have to directly ask the customer if they agree, but print it on the back of the receipt tape, or post it on a wall. Make sure that your policy covers these basics: •

Your return policy

•

Code of conduct

•

Dress code when in your office or store

•

Legal action

•

Scamming information

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•

Shipping policy and information

•

Rebate offers and information

•

Employee code of conduct

•

In the event that a customer scams you

•

Order cancelation policy

•

Payment methods accepted

•

Bad check policy

•

Information about special products sold in your location or office

•

Any other information that may be helpful to your company

Enforcing Your Policies When you have a policy written, you will want to enforce it using

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legal enforcement and collection agencies. If you do not enforce your policy, customers will take advantage of you. Remember that you are the boss and you can control what happens to your customers. If a customer is walking over you can take any these actions against them: •

Send them to collections (if money is involved)

•

Suspend them from shopping at your office

•

Charge them a bounce back fee (see collection agencies for more information)

•

Contact local law enforcement

•

Block their IP address from your website (If your website has advanced setting that can

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handle this) The most important thing you as a business can do for protection is to enforce your policy. Do not let your customers take advantage of you. If you feel like you have been taken advantage, contact your local police department right away. They will be able to better assist you in the process of reporting illegal customer activity.

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Part 17

Setting Up Accounts

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Shipping Accounts When you run a business you will want to consider various option for shipping out your goods. This will be done after you set up shipping accounts. If you ship a lot of items and do not have a shipping account with a vendor like UPS, or USPS, it may become very expensive. Here are a few reasons to set up a vendor shipping account: •

It can save you a lot of time

•

Money will be saved

•

Organizes files and information

•

Saves shipping data and customer addresses

•

Can be linked back to a business credit card or payment account

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•

Can help if you need to contact the shipping company directly

By opening a free shipping account with companies, your company will run smoother. You will find that shipping items will become easier with different shipping accounts. You will only want to sign up for at least two shipping accounts. You will want to do this because if one shipping company goes out of business or has a website malfunction, then you have a backup shipping service. Here is a rundown of different shipping carrier from most expensive to least expensive: •

UPS (most expensive)

•

DHL

•

FedEx

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•

USPS (least expensive)

The postal office (USPS) is the best option to ship with. You can choose from different shipping services like USPS Priority Mail, Media Mail, and others for great prices. You can gather more information about these shipping companies online on their websites. All of the shipping services (except for freight shipping) will allow you to print shipping labels directly from your home or office PC making it easier to ship and send packages. You can send a package virtually anywhere in the world by using the shipper’s online shipping service. They will even drive to your place of business and pick up the package for you after you have paid for and printed out the label. Shipping definitely has become easier over the past few years.

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Vendor / Supplier Accounts When you start up a business or a company, you will want to find suppliers to supply your products. Without these people, you will have nothing to put on your shelves for sale. Suppliers can be found by searching online or by looking online at local yellow pages. These people may also be called “wholesalers” and will sell you bulk items at lower prices. When you are looking for your wholesalers you may want to look around or even contact other

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companies to ask them where they purchase their products from. Most of the time however, large companies do not have this information available to them at their local customer service center. If there is a specific brand name that you want to carry for your company, you will need to go directly to that company to get permission. They will also be able to give you a catalog that offers low prices for wholesale members. For example, if you own a medicine store and are retailing medication, you may want to stick with a brand. Let’s say that you want to carry 123Brand Company because they are found in over 99% of other stores. You will need to contact 123 Brand Company directly for retailing and reselling rights and information. Any company will be willing to offer this to you for little or no

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cost to you. When you choose a vendor you will want to take several factors into consideration. Here is a list of items that you may want to consider when choosing a wholesaler to supply you: •

Do they have a toll free phone number?

•

What are their operating hours?

•

Can they be reached outside the USA?

•

Are their prices lower than other wholesalers or vendors?

•

Can I trust them?

•

What do other companies or people say about that company?

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•

Is their website easy to use?

•

Do they accept a payment method that I can use?

•

Do they have a legal department to protect my rights?

•

What other companies do they support or supply and have I heard of those companies?

•

Can I call this vendor and talk with a live person?

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Will my address be sold or leased?

•

Is their customer service friendly or do they try to solicit more and more when you place a call to them?

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When you are choosing a vendor, take into consideration the above factors. If you have doubt about the company, check with the BBB (Better Business Bureau). They will be able to better assist you with reviews, and information about the vendor you are looking at.

Make A Written Contract Nothing is official when it is verbal. Well maybe it is, however things can be changed, especially if the contract was not in your favor. You will want to get everything down on a written piece of paper. This will save you a lot of time and aggravation in the long run. When two parties (you and another person or company) agree on supplying you for a certain time period or for a special price, get it in writing. If the person is not present, fax them a copy of a statement and have them

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sign it. You will want to do this because in the event that they change their mind or alter an order, you have proof that they agreed to the terms of the contract and that they are held to it. Keep your contracts in a special safe or locked up folder. You do not want to give your employee’s access to your contracts. If you lose a contract then you may have legal problems in the event that the supplier or wholesaler does not follow it as planned.

Giving Out Your Address Do not give out your address to vendors and suppliers. Only give out your address when you are deep into the application process of being contracted with them. This is required for a vendor or business to ask for this information. It will apply to paperwork and will be sent over to the

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government (if applicable to your company). You do not want to give out improper addresses. Giving out falsified information is against the law. If you have a business address, give that out, especially if it is a P.O. Box. This is good because your mail will be collected into a special box and it is cancelable at any time. In the event that your business fails, then you can cancel the P.O. Box without penalty. Check your local post office for more information.

Receiving Junk Mail From Your Vendors Believe it or not your vendors and or wholesalers will sell your addresses. Why do they do this? This is done because the companies are always looking for ways to make a dollar. This is quick and easy money for

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companies. You will also want to check with vendors to see their privacy policy. Make sure that it is against their policy to sell or rent addresses to other companies. Companies can make hundreds of thousands of dollars off of this information. In the event that your address is sold you will know. When your address is given out to the public because it was sold, you could receive hundreds of pieces of spam mail per day. When you start getting a lot of spam, you may want to contact the vendor or supplier and question them to see if your address was sold. When you receive spam take these actions: •

Do not open it

•

Throw it away right away

•

Shred it up in a paper shredder

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•

Call the company who sent it and ask to be taken off their mail list right away!

The less information you give out, the less they will come after you for more information. If you receive letters asking for donations, throw them away. 90% of those letters are scams or organizations that you have never heard of before.

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Part 18

Where Will I Set Up My Business?

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Choose A Location When setting up a store; you will want to choose a location. Location is important because if you think about it, you could have the best company in the world and be in the middle of Africa, and you would have absolutely no business. When choosing a store location you have to consider several factors: •

Does this area fit my business needs?

•

Does my business topic fit here?

•

Are their customers within this area to support me?

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Will I be able to afford the rent and space?

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•

What stores are in the area that may put me out of business?

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Is there room to expand in the event that I need to?

•

What kinds of parking will I need for my customers?

•

Is it easy accessible to main roads or am I in the middle of the boondocks?

These are all important aspects when choosing a company’s location. If you have doubt about an area, it is better to look around before jumping on the offer. If the deal seems too good to be true you will want to look into it! If you are interested in purchasing a retail space for $200,000 and they make an offer for half price, you need to question them. Ask them

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to see past paperwork of damages to the building, liability issues, and more. There could be a major problem with the building and the last thing you need is to be stuck with lemon. If the owner of the property cannot provide this information then you should hand them a business card and walk away. Do not purchase anything unless they can provide documents about the building. Rushing into deals like the situation described above can result in a lawsuit. Read the fine print and be careful about the decisions you make. Once you sign on the dotted line, it’s official.

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How About the Internet? The internet is a great place to start off. Justin Calabrese started all of his companies here. The hosting is cheap and reliable. You can have a website and do just the same amount of business as a retail store if your information is correct and professional. If you are looking to start an online company, you may want to start off with a turnkey site. A turnkey website can be found online by searching it and is already prebuilt with

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the content for you. You can get a turnkey site with anything you want. All you do is enter in your information like a credit card or PayPal account and you will start receiving money back to your account. These websites run themselves and require little to no work at all. If you are looking for something a little more hi-tech, then try to find some hosting that will fit your needs. You will need to find a hosting plan that fits your needs, not price. When online, the internet offers millions of people access to your information. This can be good because advertising is cheap and inexpensive.

Price The Location You can price the location of the office space or building you want to purchase by the internet or by visiting the location in person and talking with them. Please take note

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that if you are meeting face to face with a real estate agent to discuss a building, you may want to read the section in this book that talks about negotiation.

Does The Location Fit The Target Market? Does your location fit your target market? You want to make sure that once you have your business and your business idea, you want to choose the area around the topic. Don’t choose an office space or building, then choose an idea or topic for you business. This will not work and you will set yourself up for failure. You need to plan around your idea. If your business idea is to start a sports company, you will not want to choose a building that is a standalone meaning that you do not want a separate store in the middle of nowhere. You want to be with other

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stores, perhaps close to or even in a mall or strip mall. For information on choosing a location for your business, look at the section in this book entitled target market?

Read Before Signing On The Dotted Line When you are looking for locations for your company, you need to read everything. A lot of places will act like it is just formalities that are on all contracts. Some sales agents will even tell you to skim over the terms. They may say that they are common sense. Stop right there! Do not listen to sales agents when it comes to skimming over terms. Those terms contain important information about your contract. Wouldn’t you feel awful if you signed on the dotted line and then went back and read and did not agree to a term or condition of the sale?

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Remember that once you sign on the dotted line, you are locked into the contract. Once you sign, you have provided authorization of the sale because you agree to everything and anything on that contract. Whether it’s two pages or 400 pages, you need to read it all, even if it takes you several days to read. Do not just read it, but understand it as well. If you have questions about what you are reading, or if you do not understand a term or concept, ask the sales agent first before continuing on with the reading. It would be best to have your lawyer carefully review the contract before signing.

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Part 19

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Finding A Hosting Company When you are hosting an internet business, you will need to consider several factors about hosting and website building. Do you have experience building websites? Do you have experience with HTML and other website codes? If you do not have experience with these areas you will need to find a more basic website hosting company. There are several website hosting companies that can fit your needs if you are new to websites. The best approach to use is the search and find approach. This is where you do a search for website hosting companies with site builders in them. You can find these website companies all over the internet. When you find a hosting company that looks good, consider the following: •

Does the hosting company

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offer a trial period with money back? •

Can I test drive the website builder before I purchase?

•

Can I contact someone within the company before I order the service or hosting package?

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Can I book a package deal with a website and domain name all in one?

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Is the hosting price reasonable to my budget?

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Can I upgrade if I need to in the future without penalty or additional fee’s?

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Is this company well known around the internet?

•

What other large businesses are

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hosted by this website company? •

Are they a member of the BBB or do they use a secure checkout method?

•

Have they ever had any security breaches in the past with credit card data?

•

What do other customers and clients say about this company?

When you are considering a company, always have a backup company, just in case the current company throws a curve ball at you and you cannot support it. For example, if you love a particular company because they have low prices, however that company only allows a maximum of five web pages for your site, it is pointless. You want to have over five

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pages on your site (most large companies have hundreds of pages). In this case, you can go to another web hosting company (your backup) and host with them. If you have any questions about the hosting service you are about to buy, then you need to contact them. Each hosting company is different and has different policies. Please note that when you order a domain name 99.5% of the time it is non–refundable.

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Reliable? How do you know if the company you are choosing is reliable or not. A lot of companies can scam clients, or take advantage of them. Do not make your company a target. Here is a list of special areas to investigate before purchasing hosting or before you build your website: •

Does the hosting company have a toll free number?

•

Is their customer service open 24/7 in the event I have a problem?

•

Can I work with the company in the event I need more server space or I need more website features?

•

Does this company support other larger companies?

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•

What is their Google Pagerank?

•

What do other clients say about this hosting company?

If the hosting company has a poor rank and or has poor reviews, you may want to think twice about choosing this company. Do not waste your money on choosing hosting companies. You will also want to consider that once you register your domain on one site, it can no longer be registered on other hosting companies. Choose your domain name and hosting company wisely. It could be the most important thing to your company.

Price The Hosting Company When you are choosing a hosting plan, you will want to look at the price before you get comfortable with the features of the hosting. You may like a hosting company but it may be $50 per month (very expensive) and

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it may be out of your budget. You have to look at the prices first. If the prices and rates seem reasonable for your budget, then you will then want to investigate further into that hosting company. Do not overspend beyond your means. This can be depressing and can lead to a business crash.

Choose Your Plan – Not Price When choosing your plan it is most important to choose one that fits your needs. Yes, you have to keep the price in mind but don’t keep it as your only focal point. If you know that you need a website that has customer accounts implanted into it then you should choose that option, even if it is $10 more per month. You need to find an option and plan that will form to your business not your wallet. You will still need to set a maximum hosting budget, meaning the highest amount that you and your

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company are willing to pay each month for web hosting.

Getting A Domain Name Getting a domain name is the main part of your website. It is the URL address and what people type in to access your site. You want to choose carefully when purchasing a domain name. Usually it will be included with your hosting package. Here are a few things to consider when creating a domain name: •

Make it easy to spell

•

Make it a common name that a lot of people know

•

If it has two parts to it make sure that they flow together and the two words do not clash

•

Make it unique and different sounding

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•

Make sure that no one else has the name already (get it copyrighted once you have settled on it)

When choosing the domain name you will want to consider the factors that are stated above. The most important thing to remember is that it should take some form of your business name. For example, if your business has a name of “123 Company,” you will want to make the domain name 123company.com, and not something like thebestcompany.com. Making your domain name and business name the same will help you bring in money and will help you direct your customers to your site over and over again.

E-commerance Ready Sites An e-commerance website allows you to sell online securely through a secure server. It is the

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gateway between the “add to cart” button and your bank account. Trying to sell products online without an ecommerance site may be impossible or very difficult to do. If you are creating an ecommerance website and plan to sell products online, you need to choose a website that has an e-commerance package already built into it. If your website does not have this feature in it you will not be able to add it in at a later time. Most hosting companies will offer some sort of e-commerance hosting package. Check the rates, ask questions, and make sure that it ties into your accepted payment method.

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Part 20

How To Control My Inventory

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Consider A Warehouse You may want to consider renting out a warehouse or sharing a warehouse with another business. You will want to do this especially if you have a lot of products that are being sold to customers. Here are a few reasons why you may want to rent out a warehouse: • • •

Control your products and keep organized To have ample room for stock and processing So that your merchandise is in a secure place

When you have a warehouse, you will also have to have a lot more responsibility. Think of it as another house or office. A warehouse is a building that will store your products and keep them safe until they are needed. If you decide to go with a

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warehouse as your holding point for products, you will want to purchase from the vendor, then ship them to the storage unit, and then to your business as needed. A warehouse also has better security. Your house does not have the hi-tech surveillance equipment that most warehouses have in them. Alarm systems, security guards, surveillance cameras, and more are implanted in several warehouses to keep your business and products safe. If you are ready to rent a building, you may check online to see available spaces. It may be expensive so you have to plan carefully. Do not jump into anything without making sure that you have the funds to do so. You will not see a return from your warehouse, meaning that the warehouse will not provide income.

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Don’t Use A Monthly Storage Unit Do not use a monthly storage unit to store your products. This is a bad idea all together because you run the chance for more to happen. Storage units can be rented out just about anywhere. Any town, city, state, or country. When looking for a place to store your products a monthly storage unit is not the place to be looking because: •

They can be easily broken into

•

They are not monitored by

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security •

They are only secured by a pad lock or door locks that can be picked open or cut off

•

They can be damp and moldy or leak water

•

They may have mice, or small animals living in it

•

They may not be heated or meet government standards for holding products for the public

Storage units are great for holding cars, or other business equipment. Do not use them to hold your products that will be sold to the public or food. If you hold food in a storage area, you are asking for trouble by the government or by the police. If the storage unit does not meet code for health reason, the government could

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shut you down.

Get An Insurance Plan For Your Items When you hold your products at a warehouse, you will need to have insurance. This is necessary because in the event that the warehouse catches on fire or has a flood and the items you store are destroyed, then you are fully covered. Most warehouses will require insurance when you move your items or business products into it. Business insurance can range in price. It can be cheap and can be very expensive, depending on how many products you have and how many items need to be insured. The best thing to do when shopping for business insurance is to call around and see what options fit you the best and what prices will fit your budget. Remember that insurance can be expensive but can also protect you

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financially if you have a fire, or flood.

Inventory Control Software When you have a warehouse and a lot of assets you will want to be organized. When you are organized, your business will run smother and your company will be better off. This will also help you when a customer asks you if you have a product in stock. By having your products on file and in a computer system, you can search the item and pull up how many you have, how many are on order, and how many you have sold. If you are considering inventory software make sure you know how to use it before you start entering products into it. Do not start entering items into it and then find you are not comfortable using it. Inventory software can be found online for free or purchased. In a business situation, you should go with

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a paid version. When you order free software, usually it is not good or does not have the options you are looking for. The best option is to do a search with Google. You can search for software and view prices.

Get A Separate Computer When you have an inventory system you will want to use a separate pc just for that. Do not control your inventory on software that you do your homework or computer games on. This will expose your system to viruses and other harmful components. Back up your software every day if the software does not do it automatically for you. You do not want to lose the inventory you have because if that happens it can cause a stir with customers, other vendors, and the government.

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Part 21

What Payment Methods Should I Accept?

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PayPal For E-commerance If you are starting an online ecommerance website, you may want to consider using PayPal for your checkout solution. PayPal is a safe way to request and spend money online without getting scammed. Below is a list of reasons why you should use PayPal for your checkout solution: •

Safe to request money

•

Backed by the PayPal guarantee

•

Buyer protection

•

Low fees to process sales

•

Money market will give you money back

•

Quick access to your funds

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(debit card) You can get more information on PayPal by logging onto their website at PayPal.com. Obtaining an account is free and you will be approved automatically for a personal account. If you want to open a business account and accept business payments, you can upgrade for free of charge. You will need your bank account numbers and a social security number to process the account. It only takes a few minutes and can save you from a lot of worry in the long run.

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Cash Accepting cash can be risky, especially if you are accepting large bills. You have watch out because a lot of people pass off counterfeits. In the event that you receive a counterfeit bill, the bank will not accept it and you will be out the money. Here are a few reasons why cash is not a good method to use: •

Having too much cash can prompt a break in or burglary

•

You have to go to the bank and deposit daily

•

It can prompt you to spend more then you have

•

You have to worry about counterfeits and fake bills

•

You can lose it or misplace it

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Granted, when you start a company, you will be required to keep some money in a cash register but not too much. Do not keep over $200 in your cash register. When you feel like you have reached a large amount of money in one drawer, open it up and take the money into the back room and put it into a safe, or bring it to the bank.

Business / Personal Checks Business and personal checks can be good. This is a great way to pay if you are handling a large business transaction with someone and the dollar amount is over $500. By accepting this method of tender, you can easily organize documents using the check number and the amount. It also helps that you have the customers routing number and account number in the event that there is a problem cashing or deporting the check.

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When doing business with a customer who pays with a check, be aware that the check could bounce meaning that they do not have enough funds to cover it. You will want to deposit the check first, wait about one week for it to safely clear, and then complete the order. Make it a policy that you have to wait for the check to clear with the bank before any service is preformed. Make the customer agree to it by signing. This will be needed if you are selling a car, or selling merchandise that is over the amount of $500 (recommended).

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Part 22

Should I Hire Employees?

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The Risks When you hire employees you have to consider several things before making the move to hire them. You have to consider the first major aspect, can I afford it? Employing someone can lead a business into a financial strain if the business is not yet well established. You will want to hire employees in moderation and keep close watch on them to make sure they are doing their job as described when hired. Here are a few things that you may need to consider before hiring an employee: •

Can I afford it?

•

What paperwork is involved to make my employee legal?

•

Will I have to complete a background check on that employee?

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•

Do I know him or her well enough?

•

Is the new employee a friend of the family?

•

What will I pay the employee and can it balance out with my income so I am not losing money?

•

How will I reprimand the employee if he or she does not do their job?

•

Will I have to worry about lawsuits or problems with this new employee?

•

Is the person friendly and kind to others while working?

•

What is the employee’s background and what experience have they had?

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Choosing the right employee for your company can help you financially, especially if you are working in sales. However as we all know, if we choose the wrong employee, the company may end up in a downward spiral.

The Benefits When you own a company you will want to hire employees at some point in time. Hiring employees does come with benefits. You may want to consider hiring a person because:

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•

They may have a skill in the industry

•

They may be a friend or a family member

•

They may be good at what you are hiring them for

•

They have knowledge that you don’t

•

They will be a business partner and will walk with you through the business process

•

More employees, the more work that can be done

•

They can help the business to run smoothly and can assist customers while you are away from the office

Usually when hiring new employees it

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means that your company is expanding and growing to new heights. The more employees your company has, the more work you can get done, resulting in a better income.

Being Fair To Your Employees When you own a company you want to be fair to your employees. Some companies pay their employees under the table to avoid government paperwork and taxes. This is not good if you are a major corporation. Paying your employees under the table can result in: •

You, the business owner going to jail

•

Your business being fined by the government

•

Loss of your employees (getting fired)

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•

Excessive fines by the government

•

Excessive media drawn to your company

Do not take the chance of risking your business just because you want to save a few dollars here and there. It can come back to haunt you in the long run and can even shut your business down.

Offering Benefits When owning a company you may want to offer your employees benefits. You should only offer benefits within your company if you can afford it. You may want to look around for different types of benefits. Some of the benefits you may want to offer your employees may be: •

Life insurance

•

Medical insurance

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•

Dental coverage

•

Retirement plans

When setting up a benefits plan for your employee it is best if you seek the help of a lawyer. This will be good because then you are not doing anything illegal. It is very common for a new business owner to make illegal mistakes when he or she does not even know it. It is vital that you only offer insurance after your company has a steady income. Not having a steady income and offering benefits can result in a financial crash of your company, especially if you offer special benefits that include matching an employee’s savings amount.

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Part 23

Basic Business Equipment That You Will Need

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What Equipment Should I Have When owing a company you will need several pieces of equipment. Some of these are obvious like a computer and a calculator, but there are others. Some of these are not so obvious to a new business owner. Here is a complete list of items that you will need to start a successful company: •

A desktop computer for your office with internet

•

A mobile laptop for business meetings with internet

•

Business accounting software

•

Inventory control software

•

A graphing calculator or printing calculator

•

Lots of paper and pens or pencils

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•

Sales order slips

•

A paper organizer to organize documents

•

A safe to hold papers

•

A digital shipping scale

•

A desk or workstation

•

A telephone or cell phone

•

Shipping tape or tape gun

•

Paid / faxed / overdue / other stamps and ink pad

•

About 6 binders with special labels for papers

•

Post office international shipping forms

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•

Printer and paper for a computer

•

Paper shredder for important documents

•

A trash bin

•

Two way radios to communicate with offsite employees

•

Lamp and or good lighting

•

Organizer or day planner for appointments

•

Three hole punch to organize papers

•

Envelopes and stamps

•

A comfortable office chair to sit in

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•

A radio or entertainment system of some kind

Having a good office setup can be vital to a successful business. You cannot operate a good company without the above items. You may also want to include items that may be important to you like decorations and other forms of entertainment. Do not include too much entertainment in your office. You are not there to entertain, but to make money.

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Being cost effective can sometime be tricky in the business world. You want to be sure that you can operate the company successfully without being worried about your finances. You will want to look for low brand items to get every day work done in your company. Do not purchase the high end expensive brand names when another product on the store shelves will do the same job. Do not spend money foolishly, especially when it is not necessary for the company’s well being. Do not overpay your workers. Overpaying workers can actually start feuds in the business especially when one employee hears that he or she is not making as much money as another employee. Use your money wisely in business. Money is power and power is wealth. Know how to play your cards, and play them right so you can make

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the most from your business.

New Equipment Is Better Then Used Purchasing used equipment can be bad for your company. Knowing what you are looking to buy will depend on if you should buy it new or used. Here is a list of items that should be purchased new: •

A computer or laptop

•

An office

•

A shipping scale

•

A calculator

•

Anything else that is electronic

You will want to consider purchasing some used equipment, especially if your business is tight on money. Here is a list of items that

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could be purchase used: •

Office furniture

•

Office supplies

•

Telephones

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Stamps and ink pads

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Lamps

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Calendars

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Software programs

When you purchase used equipment not only are you saving the environment but you are helping your business to save money that can be later used to fund another item or project. Purchasing used equipment can be good for some things but when it comes time for a PC, do not get it used. Any electronic device can be

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tampered with or changed around to provide false readings. Computers can be rigged wirelessly to another person so they can see all of your financial data and more. Purchasing used software is a great way to go because it can be very expensive when new. If you can pick up a used copy of software, take it right away, it will save you time and money in the long run.

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Part 24

Protecting Your Data & Computer Systems

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Antivirus Software Is Key When owing a company you do not want to release information to anyone. Be aware that scammers and people are out to get financial information and personal data about yourself and employees. You will want to spend the extra $40 per year to protect your computer. Getting hit with a virus can cause many problems. Did you know that if a virus is detected on your pc you should immediately back up your information? Once you have backed up your information you should turn the pc off and unplug it from the wall. This will prevent the hacker or scammer from gaining access to your information. It may be too late. The hacker may have already gained a good chunk of personal data. This stolen data will be used for his pleasure to

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open up credit card accounts, business accounts, and more without your permission. Keeping your PC and data systems protected is the first step in preventing internet and computer theft. Thousands of pc’s per day are hacked into and hijacked. Don’t be another target. You can access a copy of antivirus software at your local retail store or office supply store inexpensively. This will also help your pc to run faster and have a longer life span.

Screen Capture Software Screen capture software is also another piece of software that can capture inappropriate contact on your computer. If your PC systems are being accessed by hundreds of people per day you may want to

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consider some of this software. Screen capture software runs in the background of the computer and is not accessible to employees or people using the computer. A good piece of spy software will not be detected in any programs, or the control panel application on the computer. This software will take a screenshot of the pc, log the time, and date of the capture so that whoever is using the pc will be caught if he or she loges onto an unauthorized website. Many retail companies are using this type of software to catch employees who access unauthorized sites. This software is mainly found online for purchase. An immediate download is the only way for you to access this software, after you pay for it.

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Only Allow Access To The Ones You Trust Do not publish your passwords to the whole company. There are a lot of bad and untrustworthy people out in this world. You cannot assume that just because someone is a good employee, that he or she is not planning an attack into the system. Only release passwords to the ones you can trust like Vice Presidents and upper management of your company. This does not only apply to passwords but to binders, safes, and important documents. Do not give all employees access to financial data, only the ones who you have close ties with and can trust. If you suspect that an employee has received an unauthorized password, change it ASAP. You need to make this your first

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priority within your company.

Don’t Give Out Passwords Giving out passwords can be a big mistake. Once your passwords are out, your financial data, employee data, and personal data are out on the internet for people to access. About 90% of networks can be accessed from home if the right person knows how to get into them. So, next time you say goodnight to someone in the office, just think about what they

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might be doing to your data systems after you’ve left. Giving out passwords is one of the leading causes for employee theft and system hacking.

Make The Passwords Strong Making your password strong is another aspect to keeping the workplace hacker free. Don’t just use the common name password with your first name and then a number, but make your password strong with unique uppercase and lowercase letters. You will also want to add in a few numbers. Write down your passwords on a piece of paper if you cannot remember them, just be sure to keep that paper in a secure place.

Lock Up All Personal Documents Purchasing a safe could be the best investment you make in your company. Do not give the password

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out to anyone except for upper management, but make sure that it is accessible for people who need information from it. This can be done by having an employee contact a manager asking for access to information in the safe. The manager could then go open the safe, making sure the employee does not see the code or password. Keeping your locked up information in a locker or box with a lock on it cannot be secure at all. Lock cutters can be purchased in local hardware shops. When people are not looking an employee who is seriously looking for information can cut the lock, and steel the information.

Use Commercial sized safes Purchasing small 1.4 cubic foot safes will not cut it. Purchase safes that are large in size. Do not purchase a vault or anything that needs installation

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but something that is heavy enough and has enough steel to it where it will be impossible for someone to break into it. Think of it this way. When you close up your company for the night and put $5,000.00 in a safe do you want your money in a 20 pound safe or a 800 pound safe. Which one do you think would be more secure? When you purchase a safe for your business you will want to consider these: • • • • • •

How much does it weigh How do you open the safe up Does it have a digital keypad on it Does it have key access Is it fireproof How much will it hold

Having a safe that has a key access is a bad thing. You do not want to have a key access to a safe in the event that the key is lost. Whoever

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has the key now has access to the safe. Purchase a safe with a keypad on it for digital access. Some safes come equipped with an alarm (optional) in them in the event that it is broken into it will sound an alarm to alert others.

Alarm Systems & Security Cameras Using alarm systems or security cameras can save you a lot of time and money. Make sure that your alarm system is monitored by the police and the security cameras are recorded 24/7, even if the business is closed. Protecting your assets is the biggest part of a company. Assets and inventory is money for you and your business. If you have an employee who is stealing from you, get

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some security cameras, catch him or her in the act, and then turn the video into the local police department. This employee will no longer see you or the company, and will also have a record to alert other companies of his or her actions. Security cameras can work wonders in the business world. They can save your life in the event of a robbery or a fire in your building. Security cameras can catch shoplifters and customers illegal actions. For the small cost of these systems, your business should not operate without them. Alarm systems can be expensive, especially if you have them monitored, however they can save your life in the event of a break in, medical emergency, or a fire. Alarm monitoring can be purchased through retailers or online. Monthly fees can

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range from $8.99 to $50.00 depending on the service and type of building setup you have.

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Part 25

Getting Your Name Out So People Can Find You

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How To Advertise When it comes to running a business, advertising can be very expensive. You have to choose your target areas to market and find how to market to those areas. Because you are not the world’s wealthiest business you cannot just put ads up anywhere on the side of the roads or in newspapers. Finding the areas to market can be found from reviewing your target market. You want to advertise to the areas that your customers will most benefit from. For example, if you own a sporting goods company, you will want to advertise near a gym or a park. This is because your customers may be found in or around these areas.

Cheapest Way To Spread The Word The cheapest and most cost

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effective way to spread the word of your business is through word of mouth advertising. This way of advertising works the best and is free. Now when we say word of mouth advertising we mean that when you go to a party or to an event and people ask you what you do for a job you tell them your company name and your website. This would be a perfect opportunity to have a business card handy to give to them. When you use your moth to spread the good news of your company, you will want to provide the person with these:

•

Your company name

•

Where they can find your company

•

What your company sells or specializes in

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•

A current sale or promotion you have (optional)

Telling your customers this information in a five minute conversation can be the best way to advertise. By focusing on the points listed above the customer or person gets an idea for what your company’s topic is and why your company is the best choice to do business with. Do not be afraid to spread the word of your company. Even if the customer does not want to hear the information or they do not want to talk to you, if you see an opportunity to jump in and start a conversation, then you will see an opportunity to make some money.

Why Is It Important Advertising is very important. You could have the best company in the world, however if no one knows

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about it, then you will never do any business. Advertising is the key to success in the business world. When you hear of an opportunity to advertise that is inexpensive and effective, take advantage of it, even if it sets you back a few hundred dollars. Keeping a business more noticeable to the public can also help your reputation. If people know that your company exists, then they know that you have advertised well. Keeping a good name is important, especially if you are having good sales. If you are having good sales and want to advertise those too, you may want to try to print an ad in a local newspaper. If you want to go above your limits try to advertise in a national newspaper like the New York Times advertising your sale and a website. Customers from around the world can go online and shop your products too without visiting a retail

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store or actual location.

Print Flyers & Business Cards When you advertise or even own a company, you always want to have business cards on you. Keep them in your wallet or purse to hand out when customers ask for your business name and contact information. If you are interested in printing some business cards, then here are a few things you will want to put on them: •

Your business name

•

Your name and position within the company

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Your full company address and phone number

•

A business fax number (optional)

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•

Your website name

•

Your company logo

If you are printing flyers keep them simple. Remember that you do not want the logo to be the center of attention on the paper. Add some color to the flyers and keep them easy and simple to read. Here are some key points to focus on when printing flyers and business cards: •

Keep them easy to read (No long paragraphs)

•

Do not use more than two colors (black and dark blue are the best)

•

Center text on a flyer – right align on a business card

•

Ad your logo to the upper left part of the flyer or business card

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for best appearances (any place work) •

Keep your logo small and no larger than about 1/5th of the paper or card size

Advertise Without Getting Scammed Everyone is out to make a buck these days. Without advertising the word will not get out about your business. You may browse the internet looking for cheap ways to advertise. Be aware that these ways are inexpensive but do not work. You may see an ad on a homepage for $100.00 in free advertising. Do not click on this ad because it is a scam. Let’s learn the concept that nothing is free. It cost money to run the websites that offer those ads and it cost money to pay the employees working on the other end. Nothing is

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free in today’s world. When you look into advertising online, take these into consideration. Listed below are internet scams and are invalid ways to advertise. They take your money and deliver absolutely no results. •

Popup ads offering advertising opportunities

•

Websites that sell targeted unique website clicks

•

E-books on how to advertise

•

Software that claims they email your ad or text to millions of customers

•

Blog submitters and email harvesters

Please take into consideration that these above methods of advertising

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are scams and will only eat up your money. In fact it is illegal to advertise with email and automatic blog submitters unless you have permission from your customers or blog owners. Play it safe, follow the law and do not advertise illegally. If you are caught advertising illegally, then the government could shut down your company.

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Part 26

Keep Your Name Reputable

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Look Professional When you are out in public or if you go to dinner with a client, you will want to look professional. Depending on the different business topics and focus areas your appearance may change. For example, if you own an entertainment company, then you will want to keep your name reputable by acting fun and upbeat when in public. If you own a business that deals directly with the public, you will want to consider dressing formally in a suit when out in public. Your self image will help you to get your business name out more and more. By presenting yourself to other business owners in town and other local government representatives, you will automatically create a professional and unique reputation for your company. When dealing with the public,

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remember that the way you represent yourself will be how others think of your company.

Talk Professionally Using slang words and profanity can put a downward spiral on your company. Not only can your sales plummet, but you can put a poor image on your company. Is this really how you want to be known as? Your business wants to appear as professional as it can. Set a good example for others and your employees within your company. By acting properly and keeping your speech clear, you will only help your

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company in the long run.

Act Professional When out in public and in the office you want to act professional. Not only talk professionally but also take control of your actions. Do not run around wildly just because you have a lot of energy inside of you. Contain yourself and pull together a professionally looking self image of yourself when dealing with customers and the public. Whatever actions you as the owner of the company put forth, your employees will follow. If you are a fun filled person, that is great because, your employees will follow suit and make the job more fun. When attending public presentations and or events, make yourself as presentable as possible by cutting out horseplay, loud voices, and sad faces. Smile and act as if you are

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having fun, even if you aren’t.

Talk About Promotions And Sales When you are dealing with the public, you will want to point out the positive aspects of your company. When you go public and share information about your company, always point out the sales and promotions of your company. This will help others to understand that you really do have good sales or rates for services. This can only help to attract customers in the long run because if they know of your sales, they will think of you first. Making a promotion or service discount the focus of a conversation or presentation is not good. You will want to focus more on the business as a whole, and not just the sales. Sales change from time to time but the overall process of your business doesn’t.

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Be Honest To Your Customers Be honest with your customers. A customer could report you for lying to the public or you could lose a lot of business by not telling the truth. Lying is not worth it in the long run because it will cost you your reputation. Take notice that when you offer a press release for example onto the internet, it becomes known to millions, including the news and newspapers. Wouldn’t you regret publishing a lie if it made the headlines?

Offer Return Customers Special Discounts When customers return to shop with you again, offer them special discounts and promotions to keep the good word out that you take care of your returning customers. You do not have to lose money off the deal when offering a special

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discount or promotion. For example, you can offer a discount like free shipping on your next order, or save $5.00 on your order total. Do not offer a discount if you are going to lose money or if it going to be too much of a risk for you. The idea of being in business is to make a profit off of each customer regardless of their condition or situation. Profit could be a little bit of money or a lot of money depending on what they are ordering. Do not feel as though you need to offer a discount to your customer if they do not deserve it. Use common sense before you lose a lot of money. Preplanning your sale will be beneficial. Use paper and pencil to figure out your profit margin. After figuring out the profit on your sale or service, then offer a discount, being sure you are still making a profit off of

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the deal, even if it is a small one.

Offer Reimbursements If You Mess Up Making mistakes are common in the business world. If you make a mistake, offer a small reimbursement to your customer to keep them with you. You do not want them to open a lawsuit against you over a $500.00 sale because that would be a waste of time for both of you.

You can offer a reimbursement on a shipping fee or a percentage of a product that was charged to their credit card. Offer a reimbursement by refunding their credit card (credit the account) or offering them a mail check from the business. If a customer became sick from eating at a restaurant you own, you will want to offer to reimburse them for

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medical bills before they decide to take it to court. If you do not believe that it was your fault consult a lawyer right away.

Don’t Make Your Profit Margin Noticeable Making your profit margin noticeable can be very embarrassing to your image and to your business. You do not want to mark up your products so much that your prices are out of the ball park with other companies. Make your product prices in range with other companies. For example if a business is selling a football for $30.00, you should not sell it for $60.00 because that is far too expensive and will not attract buyers for this item. This may even prevent customers from other shopping for other products that you are selling.

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Part 27

Scams & Hoaxes

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Don’t Be Bait For The Trap Every day millions of hackers and scammers try to get information from people. The last thing you want is to be bait for their trap. In this section you will learn how to protect yourself, detect, and report scams. Scams and hoaxes come in many forms and shapes. Some can be in the form of pop-up messages, or some may be letters sent to you in the mail. They may demand money from you, and others may ask for information about your business and financial history. You must learn to not give out information to anybody, even if it is your trusted friend. Do not even publish information on the Internet about yourselves or others. Scammers will find your name, gather information about you, and use it to locate you..

How To Detect A Scam As stated before, scams come in different types and forms. Scams can be sent in an e-mail or can be sent

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in a letter format via the mail. If the letter or document is demanding money or cash from you right away, do not send any money. Another large scam that you may find when owning a company is that people will try to sue you for following the law. If you are selling products through a website, people may try to sue you for trademark or copyright infringement. You will need to speak to a lawyer right away. Do not procrastinate on any type of document that states that somebody is suing you. A lawyer will be able to better assist you with the legal process of finding the authenticity of the letter that was sent. Here is a list of common scams that are found in the business world: •

Someone will send you a letter in the mail demanding money for a product or service that you ordered, when in fact you never ordered that product.

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•

Someone will send a letter in the mail asking if you would be willing to make a business donation to an organization. If you have never heard of this organization before do not give money to it.

•

You will receive an e-mail link from a bank or from a website asking for you to login to your account. They will usually state that your account has problems and issues need to be resolved. By clicking on the email link provided in the e-mail, you are not being directed to the actual website but to a database that will then store your password and username.

•

A scammer will send you a notice in the mail pretending that they are from a legal

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office. They will insist you send over money to cover a lawsuit or claim that you have been involved in. The amount of money could be anywhere from $30-$45,000+. Do not fall for this scam when in fact you believe that you have not done anything against the law. You will want to hire a lawyer for this process and ignore the letters that they continue to send in the mail. They’ll probably continue to send letters until you pay the money. Do not call, mail, or e-mail the scammer back. This will only make problems worse. •

Other scams are also possible to receive in the business world. If you believe you have become a victim of a scam, you will want to seek legal help from a lawyer or a town

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representative that same day. You do not want to procrastinate on any threat against your business or your reputation.

How To Stop Them Scams can be very hard to stop especially if you do not know the source of the problem. When you receive a scam in the mail or an email, you want to be sure to print out or save all the documents associated with it. This will help you in the event you have to go to court or you have to hire a lawyer to defend you. If there is an address, phone number, or e-mail address registered back to the documents that were sent to you, save that information. This could be the key to stopping all communication and preventing further threats to other businesses and customers. If you believe you have been a

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victim of a scam, report it to your local government officials, and to the police. If this scam involves money, or if you have lost money due to this scam, hire a lawyer immediately so they can guide you through the process of receiving your money back.

Report Them Right Away Reporting a scam is the first thing you can do as a business owner, to benefit not only your business but the community. Generally if a scammer is targeting your business they are targeting other people within your local town. Because you are a business owner you do have more power than a normal civilian. However, you may have enough power to get the police involved, and possibly have a government investigation. Report the scam to the police immediately especially if money has

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been involved. Police generally do not take scams that have been involved over the Internet or through e-mail communication, but are willing to guide your process anyways. If you were scammed on an auction site like eBay the police will not get involved. You need to report it to eBay’s safe harbor department right away. It is eBay’s responsibility to do a complete investigation and to stop the problem. When you are part of a scam or a hoax, you want to be sure to have all the documents that were associated with it. The more documents and proof that you have the stronger your case will be.

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Don’t Feed Information To A Scammer do not feed information to a scam artist or to someone who may be involved with this swindle. The more information you feed the more information they have to come after you. If you have personal information about yourself online and you have been a victim of a scam, immediately remove all personal data and information. You want to be sure to do this so that scammers will no longer be able to visit those websites that hosted your information. Here are a few things you’ll want to be sure you never post

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online: •

Your full name

•

Your Social Security number

•

Your address

•

How much money you have

•

An e-mail address

•

How people can contact you

•

Your past life experiences

Never Release Business Data! Do not release business data to anyone even if you can trust them. Do not post financial information and specific business information online. When you post information to the web, it is seen by millions of people per year. Do you really want your financial and

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personal information to be seen by millions? Be aware that the more information you post on the Internet the more junk mail, e-mails, and scams you will receive. It is not worth posting information online.

Delete Emails from Scammers do not respond to e-mails from scammers. If you received e-mails asking for money just delete them. Opening up an e-mail in your inbox that you do not know who it’s from could expose your computer to viruses and spyware. Play it safe when it comes to e-mails. Delete them using common sense. Do not respond or inquire about products or services offered in spam or bulk e-mail folders.

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Part 29

Stop! I Require More Help

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Where To Find Help If You Need It If you need more help with starting a business, please make the internet your first resource. It is free, fast, and has thousands of articles to read on the subject. If the internet cannot provide help for you, you may want to go speak with a lawyer or a business owner in town. He or she may be able to point you in a successful direction.

Websites That Offer Help Here is a list of websites that may offer business help and information for new business starters: •

Entrepreneur.com

•

SBA.gov

•

Yahoo Answers

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•

Business.com

•

Forbes.com

•

IRS.gov

•

Smallbusiness.aol.com

•

Businessknowhow.com

Local Resources Are The Best If you are looking for local resources in your town, here is a list that may be beneficial to you: •

Town hall

•

Local business owners

•

Local lawyers

•

Local government services

•

Banks (Financial information and help)

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After reading this…

What will you do with your college degree?

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