Welcome to Part 2 of our 6-Part article series on starting a new business. In this article we will discuss: Marketing and Promotion on a Dime; Funding Your New Business; and Understanding Cash Management. Let's get started!

1. Marketing and Promotion on a Dime: Let's face facts... you're probably not a giant corporation like a Wal-Mart, or Johnson and Johnson, or Best Buy, or Target. You are more than likely a small business entrepreneur, or perhaps you are thinking of starting a new business. The first thing to do is to create a simple, inexpensive and efficient marketing plan. It's much easier than you may think:

*A. Identify your target market: This means make sure you know who you want to sell to. Whether your market is local, national or global, many of the basic fundamentals are the same. Now with technology at your beckoned call, you are no longer bound by neighborhoods or local communities. In fact, the technology world is your "virtual oyster" regardless of the size of your business.

*B. Develop a strong marketing message and promo "hook." Once you identify your market, it's time to find something catchy to hook them in with. This can be a bit challenging with so much spam overload, but it's not impossible, with a little creative thought put into it. I definitely feel simplicity is the best policy, but you should always add your own creative flair to what you are doing. Be professional, upbeat, straightforward, and creative in your approach. I find people respond to that best.

*C. Create one piece of "marketing collateral" that will set you above the competition. Think of the term, "marketing collateral" as your marketing toolbox. This toolbox includes items like press kits, press folders with company logo for postal mailing, letterhead for letters, business cards (a must-have), company and/or product fact sheets, testimonials (if you have them), and a good website (a topic in my next article). These tools and props will help instill confidence in you and in your potential customers.

*D. Circulate and communicate: Today, there is no reason not to communicate with others. With technology so readily available, there are all kinds of great ways to reach people; email, websites, blogs, chat rooms, and social networks. Even postal mail still works if you will be sending out press kits or special materials. In addition to all of this, make sure to physically attend local community meetings, online meet-up groups, and by all means become active in online social networking. In order to successfully promote your business, you must talk to people about what you do. Communication is key to success. Skip this important marketing step and your business won't survive. That is the fact.

*E. Follow Up, Follow Up, Follow Up! This is where so many business owners fail. I hear it all the time from new entrepreneurs; they fear rejection, especially in the beginning. If you wish to be successful, you can't hide from people. You owe it to yourself and your business to follow up with every business lead you can. You don't have to be pushy, or in people's face. Simply be professional and state your business. It takes nothing to call or email a prospective customer. In fact, they will be pleased you cared enough to contact them. With practice, you will develop a thick skin very quickly.

2. Funding Your Business: This will probably be tight in the beginning, but do your utmost to start funding your own business, out of your own pocket. Once you begin to achieve some form of success, you can look into outside funding, if it is necessary. However, once you bring financial partners into the mix, it can be very sticky. And once you accept outside funding, you now have a new business partner, like it or not. Think it through carefully and get advice from financial advisors you respect before taking outside money. Don't get me wrong; business loans, venture capital and seed funding can be great for the right business model, but do make sure to get advice on this important step first. It is not for the faint of heart!

3. Understanding Cash Management: Cash is the lifeblood of any business. If you have some basic common sense about money, this does not have to be difficult. Your cash flow is comprised of many things: accounts receivable (money coming in), accounts payable (money going out), inventory and stock, business expenses, borrowing and credit debt, payroll, and overhead. The most easy rule to think of is this: Keep as much cash in your pocket; spend as little cash as you possibly can; don't get sucked into loan debt unless absolutely necessary; and don't go spend-happy! Learn how to efficiently manage your money if you need help. If you are not experienced in this area, make sure to get assistance from your accountant, CPA or financial advisor for help. In addition, there are countless books and websites available, which teach money management.

Stay tuned for my next article, Part 3 of this article series. We will be discussing Business Structures, Website Creation and Setting up Your Home Office.

Articles Main