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Your EnterQuest Bulletin - Issue 211
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| Thought for the week: "Letting your customer set your standards is a dangerous game, because the race to the bottom is pretty easy to win. Setting your own standards - and living up to them - is a better way to profit." Seth Godin |
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In this week's issue:
If you're looking for a grant, or a source of help or further information about your local area or sector, send an e-mail with your query and location to the EnterQuest information team and we'll do our best to help.
Send
your enquiry to enterquest@cobwebinfo.com.
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To
access over 800 factsheets, guides and small business reports, go
to www.scavenger.net. |
How to make your guarantee your unique competitive advantage
There are a number of risks that people must overcome before they purchase your product or service, such as making the wrong the decision, losing money, or not being satisfied and then not being able to get their money back.
One strategy to eliminate these risks is to offer a solid guarantee that will make their purchase risk free, or at least decrease the risk as much as possible.
A strong guarantee makes it less threatening (and less of a risk) for people to consider your offer. You lower the barriers that prevent people from doing business with you. You give them a compelling reason to buy today without fear of looking bad tomorrow. By removing the risks to buyers through guarantees, you give your business a great opportunity to stand out.
Small businesses that make their guarantee part of their unique selling proposition (USP) will prosper.
The ability to differentiate your business by the guarantee that you provide will set you apart from your competition because most organisations don't use their guarantee as their USP. This is especially true with service businesses.
The idea is that you make your guarantee a focal point in your marketing efforts. Your opportunity lies in how aggressively you're willing to tell your target audience about your guarantee. Depending on the extent that you do this, you will enjoy a competitive advantage over all other businesses in your industry. Your business courage will pay you tremendous long-term dividends.
How you approach the wording of your guarantee can make all the difference in the world. Powerful words and phrases significantly boost your sales and response rates.
Here are some powerful words and phrases that will bring some life to your guarantee (and also to your response rates).
Your guarantee can be one of your most powerful marketing weapons. Unfortunately the vast majority of businesses just don't want to place a strong guarantee on their product or service. They're too afraid of the perceived negative consequences. That's a great pity.
Develop a guarantee today that stretches you to the limits and test it. You will be surprised and very pleased at the results.
How to forecast cash flow
A cash flow forecast shows how and when you expect money to be received and paid out by your business. It's vital to know that your business will have enough cash to pay its creditors and expenses when they're due. A cash flow forecast is usually projected over a period of six or 12 months, and is a vital management tool that encourages you to plan ahead and make important decisions about the strategic operation of your business.
The most commonly used method is to set up your forecast in a standard spreadsheet, which allows you to change the numbers quickly and easily as you refine your forecast. There are seven key steps to take when setting up the forecast:
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Step 1 - Produce a sales forecast for the next 12 months. Estimate the split of credit and cash sales, and the credit period taken by your customers so that receipts are put in the correct month.
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Step 2 - Establish whether any other cash income will be received. This will include money you are investing in your business, as well as loans and grants if applicable.
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Step 3 - Estimate the purchases you will need to make for goods/stock to allow you to achieve your sales forecast. Your suppliers may want to receive cash payments with the order initially, but after a month or two you should be able to set up a trade account and benefit from credit payment terms.
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Step 4 - Identify your other regular monthly cash payments. These will include payments of salaries, marketing costs, operating costs, vehicle running costs, and any other sundry expenses.
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Step 5 - Identify any one-off expenditure, such as fixed asset purchases.
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Step 6 - Set out the cash flow forecast month by month for a full year. Always make sure your figures correspond to when you expect payments will actually be made.
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Step 7 - List your assumptions as a reminder of how you have derived your figures - for example, payment terms and cash cycle length used. Most lenders will want to spend time reviewing your assumptions, as these will help them to identify whether your figures have been thought through in detail.
For more information see our useful factsheets on cash flow forecasting and avoiding cash flow problems. Mind Tools also provides practical information on cash flow forecasting.
Each week we provide you with summaries of some popular or emerging business ideas in the UK and elsewhere around the world.
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Ethical wedding planners will source ethical, Fair Trade and other ecologically friendly supplies for couples wishing to abide by their own ethical principles. Issues to consider could include transport to and from the wedding venue, clothes for the ceremony, and food and drink.
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Boutique camping facility providers give music festival-goers the opportunity to stay in luxury tepees, huts and tents. Boutique Camping.net offers a range of accommodation kitted out with comfy bedding, iPod docking stations, flushable toilets and working showers.
Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.
Do you know the meaning of the word 'apogee'?
a) the practice of doing good
b) full and complete
c) the highest point
d) feeling enraged
Answer at the end of the Bulletin.
The following topical business issues have been recently reported in the media. Did your radar pick them up?
1) The Small Business Council has been replaced by which group as part of a review of the Small Business Service?
a) Small Business Forum
b) Small Business Research Unit
c) Small Business Group
d) Small Business Design Club
2) Which public figure has been hosting a major summit for businesses keen to become more environmentally friendly?
a) Dame Anita Roddick
b) Sir John Major
c) The Prince of Wales
d) Sir Richard Branson
3) Modbury in Devon has hit the headlines for being the first UK town to ban what?
a) Cars parking in the high street
b) Plastic bags
c) Polystyrene cups
d) Packaged fruit and vegetables
Answers at the end of the Bulletin.
Protect your intellectual property rights
The Own-it IP protection website has been set up as an online resource for small creative businesses and freelancers who want to find out more about protecting their intellectual property (IP) rights. You'll find free downloadable tools on the website, including templates of legal contracts, factsheets and podcasts. There is also a useful IP FAQ section.
Web 2.0 opportunities for marketers
Web 2.0: A Marketer's Dream looks at opportunities for marketers within the domain of social networking. The article, written for US-based site E-Commerce News, discusses the possibilities of targeting niche audiences who share common interests, in a bid to sell a product or service. It also provides background information on the Web 2.0 phenomenon.
Tutorial on Microsoft Office 2007 security issues
Microsoft has produced a handy tutorial for getting to grips with security issues in Office 2007 programmes. By using it you'll discover how to create strong passwords and protect documents. You can also learn about common viruses and anti-virus software. There is the opportunity to test your knowledge at the end of the tutorial.
Free business promotion templates and information
A PR agency is offering business owners free information and templates to help them promote their businesses more successfully. PR Basics offers free press release templates and action plans, as well as a questionnaire that tests confidence in dealing with PR tasks.
This book for budding start ups is a practical guide to starting up in business, from your initial business plan through to growing your business and branching out. The book is written by Martin Webb, serial practitioner and presenter of TV programme Risking It All. Nobody, says Martin, grows rich lining the boss's pockets. Instead, he uses tips and insider secrets designed to help readers make the break and go it alone. Check out:
Just one word answer
The answer is c).
Apogee means 'the highest point'.
The small business owner believed that becoming president of his local chamber of commerce would be the apogee of his business career. |
How's your business radar? The answers
1) The answer is a). The Small Business Forum meeting has been created as a regular opportunity for Margaret Hodge to meet ten small business owners and representatives of the main business membership bodies.
2) The answer is c). The Prince of Wales was involved in the May Day business summit, which marked the start of a campaign among businesses to cut their carbon emissions into the environment.
3) The answer is b). Every trader in Modbury has agreed to supply environmentally friendly alternatives to plastic carrier bags. |
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Good luck
The EnterQuest Team
This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. |
