In this troubled economy every dollar is precious.  Your business needs to control costs wherever possible.  Outsourcing certain aspects of your business to third parties, can be a powerful cost cutting move that also frees you up for more important tasks such as finding new clients and product development.

The following are seven things your business can outsource TODAY that will start saving you money and help your business operate more smoothly.

1. Accounting and bookkeeping.  Managing your business’ books is a time consuming affair.  Worse yet, every day is another opportunity to make a mistake that can cost you and your business a fortune.  Outsourcing your day-to-day financials, including managing the checking account, paying vendors and other tasks, to a certified public account can be the best decision you ever make.

2. Taxes. Like accounting, doing your own business taxes presents a two-tiered problem:  it is going to take you a lot of valuable time to get it done, and when you do, it probably won’t get done correctly.  Hire an accountant to handle all your quarterly and annual business taxes.

3. Assistants. Virtual assistants have become all the rage in the business world because they really exceed expectations.  Even the most skeptical people are sold on outsourcing their assistant position after seeing all the little jobs they can do in a day!

4. Website management.  To be successful online, it is absolutely crucial to maintain a vital presence on the web.  However, that means updating your site regularly and always staying on the lookout for technical issues – two things few of us have enough time for in our busy day.  Outsourcing web management can help increase traffic and conversions online for your business.

5. Marketing.  Why try to develop a crucial marketing campaign on your own, when you can hire a team of marketing experts who will do the job faster, more creatively and for less money?  Offline or online, marketing companies take the time to get to know your brand intimately, as well as your target demographic and the most effective ways to reach them.

6. Customer support. Having a live person to deal with customer questions and concerns is an important part of building your business’ credibility.  Customer support phone banks are currently being outsourced to almost anywhere in the country or the world – where call professionals can be trained to represent your business with authority.

7. Data entry. Back when outsourcing was called “temp work”, data entry was one of the most common business practices handled by a third party.  For any task where a significant amount of computer time must be logged, outsourcing is a cost-effective solution.  Data entry outsourcing is especially effective on projects that only come around once or twice a year – and therefore do not require an employee on staff for the entire year.

Finding a good vendor is like adding a reliable team member to your growing company.  When choosing where to outsource these elements of your business, remember to look for established businesses with outstanding references and competitive pricing. The possibilities for your business are endless, so maximize your resources and time and watch your company grow!

To be an entrepreneur you have to be a smart, driven and dedicated individual.  But if that is the case, why do so many businesses fail within one year of their start-up date?  Chances are, the principals of those failed businesses made one of the common mistakes below.

Starting out without a proper business plan

Starting a new company without a business plan is like going into the forest without a map. So to avoid turning your new company into The Blair Witch Project of your industry, it is highly recommended that you create a detailed, well-written business plan to map out mission, goals, financials and more.  A professional business plan writer can help create a powerful business plan that will wow investors and keep you focused as well.

Expanding too fast

In pursuit of “playing with the big boys”, many new businesses run before they learn how to walk. Common mistakes businesses make in terms of expanding too fast include, adding unnecessary (at the time) employees during the first year of operation and leasing high-profile office space that is outside their means.

Running out of funding

Sometimes a business is poised to do great things, but never gets to that point because they run out of money first.  Poor financial planning can sink a business quickly.  Business owners should consult venture capitalists, financial advisors or accountants to help them obtain and maintain their capital. Another resource for funding is small business loans, once again a professional business plan is essential for the step.

Developing a poor marketing plan

Not focusing precious marketing dollars correctly is one of the most common and potentially devastating mistakes that a new business owner can make.   Many businesses simply throw their money at a particular medium – such as magazine advertising or radio – without realizing that their customers simply can’t be found in these locations.   Other times, businesses put forth a marketing campaign that fails to connect with the wants and desires of their customers.  Business consultants and marketing firms can help small businesses alleviate this problem by taking on the planning and creative aspects of their marketing efforts.

Not creating a distinct brand

Branding is another overlooked necessity for new businesses.  A powerful brand is what separates your company from the pack.  A strong brand announces to the world your “voice” and point of view – and does so in a matter of seconds.  Think of the great brands like Apple, Tiffany’s or Volkswagen - they all started with great, professional brand development.  Find a qualified advertising agency or marketing firm to help create your business’ brand for today and the future.

Not mixing business with passion

Individuals who succeed in their start up ventures do so because they have an incredible passion for what they do.  Their positivity is infectious – and converts new clients and investors alike into believers.  Many businesses fail in their first year because the proprietors are unable to generate that spark with those people who matter most.

Giving up too fast

Some of history’s best business success stories began with failure.   Individuals who start their own company must be prepared to weather some initial storms before throwing in the towel.  Few businesses hit it big right away.  But those who plan properly and hire the right people to assist them are the ones who hit it big.

In the first blog installment of this series, we discussed strategic alliances, why small technology companies should seriously consider entering into a strategic alliance with other companies, and provided factors that a business owner of a small technology company should consider in determining which proprietary technology should be made available for licensing under the strategic alliance. Once you, as the business owner, have identified proprietary technology for licensing, what additional steps should you consider in identifying a strategic alliance partner to develop, market and distribute products based on your technology?

In this second blog, we discuss how you can find strategic alliance partners and why these partners should be further qualified.

Tip – Identify and qualify your potential licensees.

Do you know of any companies that are selling products relevant to your technology? If so, they may be a prospective partner, particularly if your technology can be used to improve or complement the prospective licensee’s existing products, and your partner has the means to commercially exploit the technology. However, if you don’t know of any companies offering such products, how do you find prospective partners? Good sources for potential licensees include listings in trade magazines, directories, patent and literature searches. Visiting trade shows or conferences and word-by-mouth publicity is another good way to identify and meet potential licensees. Alternatively, you can also publicize the availability of a license through trade journals and the United States Patent and Trademark Office (USPTO) Official Gazette if the technology is patented, and have potential licensees come to you.

Before you contact the prospective partner to discuss your technology further, you should qualify the potential licensee by ascertaining several factors such as financial strength, technical and market expertise, sales/distribution network, commitment to relevant product line, etc. Much of this information is available online for free or through commercial databases offered by LexisNexis, Hoovers, and Dun & Bradstreet. The investigation can be done in a brief fashion initially before the licensee expresses an interest in the technology. You can follow up more fully once the prospective licensee shows some interest.

Qualifying the prospective strategic alliance partners before you begin serious discussions is important, as it may help a small business owner to avoid headaches later on by not entering into an alliance relationship with the wrong partner. Before considering serious discussions with a potential partner, it is helpful to have a non-disclosure agreement in place. We will discuss such agreements in the next blog.

Many people have great ideas or amazing skills, but are intimidated mightily by the idea of starting their own business.  But starting a business is easier than you might think.  In fact, with the right information and motivation, you can start a business in one month.  Think that’s crazy?   The steps below show you how to make it happen!

Step #1:  Come up with a killer idea!

The ways in which individuals come to their great business ideas are as varied as snowflakes.  Some budding entrepreneurs nurture an idea for many years, tirelessly refining it along the way until the moment is absolutely perfect to release it to the world.  Other people are hit with a lightning bolt one day, and are ready to go right into business.  No matter how you and your idea come together, the one month plan starts right when your business idea is ready to go.

Tip:  A business coach can help turn the idea in your head into a reality.

Step #2: Learn about your market

The first month of your business’ life is the most important.   And one of the crucial first steps in the process involves researching the market in which you plan on doing business.   Take two days and study the competitive landscape.  During this period you should:

• Look at what your potential competitors are doing in terms of pricing, product or service offerings and marketing methods.
• Seek out opportunities that your competitors may be missing.  Are there demographics that are being underserved?  Is there an opportunity to price your products or services in such a way that it will open up NEW markets?
• Create a competitive analysis that you can use as a reference tool moving forward.

Tip:  Use Microsoft PowerPoint to create your competitive analysis.

Step #3: Create a business plan

After you’ve completed two days of competitive analysis, it is time to craft the most crucial part of your new business to this point – the business plan.  The business plan serves two purposes:  it explains to potential partners, investors and clients what your business is all about, and helps you form a clear plan for the first years of your business.

Tips from expert business plan writers

• Start with a clear, concise purpose statement.  Sum up your business in a short paragraph.
• Get into details.   Really use the business plan to show that you are well-versed in your chosen industry and know exactly what you hope to accomplish.
• Include detailed financial projections for the next three years.

Tip:  Hire a professional business plan writer who has experience working with small businesses and start ups.

Step #4: Get financing

Once the business plan is complete, it is time to focus on the capital that will get you off the ground.  For many people, obtaining financing is the most intimidating part of starting a business, but there are several sources for money that generate start up funds quick – and considering we’re getting your business up in just a month, time is of the essence!

Sources for obtaining financing include:  family and friends, business grants from the government, business loans at banks or other lending institutions and venture capitalists.  With the exception of family and friends, all these sources will be more likely to give you money if your business plan is an A-plus and your pitch is detailed, smart and enthusiastic.

Step #5:  Creating a legal business entity

While you are waiting for your financing to come through, make good use of the time by incorporating your business and turning it into a legal entity.

Becoming a legal entity is one of the smartest decisions that a business owner can make.  Legal entities such as S-Corps, C-Corps and LLCs help protect the business owner financially if anything were to go wrong with their business.   Say a business goes bankrupt.  If that happens to a legal entity, it is the business that owes the debt and not the individual.  This can protect your home and other investments if the unthinkable were to happen.

And the protection is not just bankruptcy related.  If an employee or customer is injured at your place of business, or feels that you have wronged them and wants to pursue legal action, the Corporation would pay the bills or any financial settlements.

Tip:  In most states, creating a legal business entity is a relatively easy process and can be completed in a matter of days.

Step #6:  Branding your business

Now it’s time to get to the fun stuff.  Branding is one of the most important, yet oft overlooked elements of building a business.  This is where you can really start to set your business apart from the crowd.  Logos, the “voice” of your message, and even the name of your business all should communicate what makes your company special – and explain to the customer (in a matter of seconds) why they need to be doing business with you.

TIP: We should be well into the second or third week of our one-month plan at this point, so if you don’t feel comfortable working with design and copy yourself, hire a professional who can do the job fast, creatively and most of all, cost effectively.

Step #7:  Crafting the Marketing Plan

After your business plan, the next most important document you will ever create is your marketing plan.  How you spend your precious marketing dollars can be the difference between success and failure.    Again, working with a marketing professional can be a wise investment.  These marketing pros make it their business to know what techniques work best with certain demographics, and know all the “tricks of the trade” when it comes to reaching them.

But whether you hire a professional, or give it a run on your own, consider the following types of marketing when allocating your budget.

• Offline marketing – Includes direct mail, flyers, print advertising in newspapers and magazines, radio, television, billboards and other forms of “traditional” media.
• Online marketing – It’s hard to imagine a business that is not currently investing some of its marketing spend into online efforts.  The major forms of online marketing include: website development, search engine optimization (SEO), pay-per-click advertising (PPC), email blasts, online newsletters, banner ads, blogs, viral marketing and social network marketing.

The beauty of online marketing, especially in terms of our one-month goal, is that it can be implemented and up and running fast!

Tip: If you choose an online marketing agency, they will work with you to pinpoint where, exactly, your potential customers “live” online, and begin developing campaigns to reach them at the exact moment they are looking for your product!

Step #8: Getting leads and selling your products or services

Now that the marketing plan is up and running, it is time to start converting your leads into sales.  Take a couple of days and refine your pitch.  Map out the benefits of your business and drill them down into “talking points” which will genuinely resonate with your target audience.

TIP: If you are having trouble generating quality leads, you can turn to a sales rep for some “instant offense.”  Sales representatives generally work for commission and know how to bring in business.

Step #9:  Finding the right employees

With so much to do, it is going to be difficult to do this on your own.  Hiring employees is the next logical step to growing your business.  Here are some tips for bringing in people who provide top returns on your investment:

• Understand your needs – Before you hire anyone, prioritize what you need the most, and go out in search of trustworthy, experienced individuals to fill those needs.
• Look for multi-faceted individuals – New businesses can benefit greatly from hiring individuals who wear a lot of different hats.
• Use all the online tools at your disposal – Monster.com, HotJobs.com and Craigslist have all made hiring employees easier than ever.  Just be sure to always check references and perform a thorough interview process.

Tip:  A corporate recruiter or headhunter can do all the legwork for you in your search for qualified employees.

And there you have it!  With good planning, total commitment and some seriously hard work, everything listed above will help you get your business up and running in about a month.  Be thoughtful and detail-oriented during these steps.  You are forming the foundation of your dream business, and the more you put into these core business processes on the front end, the more rewards you will enjoy down the line.

Customers just aren’t biting like they were this time last year. This means businesses need to stretch their precious marketing dollars further than ever.

Here are five affordable ways to reach new customers and convert new sales…even if your marketing budget is a little smaller than it used to be.

#1: Refer a friend programs

Why not let your existing customers handle your marketing for you? Create a refer-a-friend program to leverage the people who know and love your business the most. Referral programs are easy - simply send out an email or postcard to your existing customer base and let them know about the promotion. Offer these existing customers a reward for telling other people about your new business. And make sure that these new customers get a nice carrot-and-stick as well. Special discounts or promotional items are both proven-successful methods for generating excitement around a referral program.

And don’t forget to make the process as easy as possible. If you are kick-starting the program via email, include copy or an image that can be easily forwarded on to other people. Most importantly, don’t forget to track the campaign using an offer code in order to see how well it performed.

#2: A viral campaign

Many companies, large and small, are getting tremendous mileage out of their viral marketing campaigns. There are several approaches to take here, but most involve creating a humorous video and submitting it to YouTube or a compelling article or site page and getting it up in the rankings at Digg or other social networking sites. These types of viral marketing will establish your brand as hip, funny and web-savvy, all while spreading the word about your products and services in a highly inexpensive manner.

#3: An email newsletter campaign

You’ve got your customers’ email addresses…now use them! Create a rich email marketing campaign filled with relevant content and compelling offers, then send it out monthly. Always keep the content fresh and remember to develop solid subject lines for the emails so that open rates will be high. Make the newsletters interactive – ask for users to submit their questions, comments or stories for upcoming issues, and offer exclusive prizes and goodies to those who submit the best user-generated content.

#4: Public relations

In today’s buzz-driven society, public relations is king (or queen). Investing a few thousand dollars in a PR agency can pay huge dividends down the road. No matter what you are selling, PR firms know exactly how to create excitement around your business. If, for example, you are selling designer T-shirts, a PR firm can get your products in the spotlight at a celebrity charity auction. If you sell widgets, they can find a magazine that is looking for a cover story about the world’s hottest widget-makers. There’s no limit to what great public relations can do for your business.

#5: Organic search

Search engine optimization is currently one of the most cost-effective ways to reach your target audience online. By hiring SEO professionals to restructure your site and develop keyword –friendly content, you can boost your rankings on Google, Yahoo! and other major search engines. Imagine coming up at the top of page ONE is your chosen area of focus! For an affordable cost, SEO professionals can help your business reach out to the people who are searching for your products and services right now.

2008 is not even three-quarters of the way home, and already the Internet sector has seen some significant startups work their way into the public eye. An economic downturn and weak credit market have not kept these companies from continuing their quest to be “the next big thing.”

This young data analysis company looks to change the way we analyze information and predict future problems. The tech team at V-Kernel has developed a series of proprietary algorithms that collect and compute data from virtual machines (servers) and then determine whether or not there will be conflicts within that data in the future. The company will help businesses effectively use virtual servers to bill their clients more accurately.

With its groundbreaking Basecamp software already making project management easier for small businesses around the world, 37 Signals has set its sights on bigger and better things with its open source web application Ruby on Rails. Instead of piling on more and more features, 37 Signals keeps things simple, adding only basic features to their products that enhance usability. The company currently maintains only a handful of employees, but look for that to change as their software continues to grow in popularity.

The more serious sibling of social networking sites such as MySpace and Facebook, LinkedIn helps individuals network with those within their industry or who need their services. Despite a much smaller user-base than Facebook, the company still forecasts revenue of $100 million per year (compared to $150 million for Facebook). With a redesign in place, watch for this company to make some serious movement in ’08 and beyond.

Slide is a tech company that is proud to play both sides of the fence. Developing widget applications for social networking destinations and their rival, stand-alone websites, Slide is like the weapons supplier in a battle that looks to rage on for years to come.

Taking the touch-screen into the 21st century is the goal of this two-year old startup company. Already known throughout the world for the groundbreaking work on CNN’s election coverage (the company designed the data-filled, eye-popping technology used by the anchors to deliver polling results) Perceptive Pixel has recently scored a top-secret contract with the Department of Defense. And although the terms of that deal are secret, the company itself won’t be undercover for much longer.

The Spanish start-up Fon is a firm believer in the axiom “give and you shall receive.” Tired of paying for WI-FI all over town, the company’s tech gurus have developed a system that allows home WI-FI users to “share” their connection with the world in exchange for free use of the overall network. If the Fon network becomes a world-wide affair like the company’s founders hope, that trade-off should turn out to be a sweet deal.

You don’t have to be crazy to take on Google at its own game…but it helps! Luckily, the team at Powerset is as ingenious as they are nuts, and have developed a search engine technology that utilizes real language to put search terms into the proper context within a sentence. That means more effective searching for the end user, and a more targeted advertising stream for businesses.

Loopt combines social networking with GPS technology to create an application that lets people know where their friends are and what they’re doing. You can even set alerts that announce when people on your friend list have closed to within a certain radius of your position. Creepy concept, but one that incorporates enough social media and blogging to make this company one to watch.

This fast growing maker of lithium ion batteries is revered among the “green” business community because of its partnerships with the top electric car makers in the world. Simply put, as the automotive world moves forward and becomes more fuel efficient, A123 will be there to power the journey.

Perhaps the most innovative start up to watch in 2008 is 23andme. For a small price of $1,000 this company will provide you with a detailed breakdown of your DNA. Everything you ever wanted to know about yourself will be there. It could be a boon for those individuals at risk for hereditary illnesses or those seeking more information about their origins. 23andme even plans a social networking hub to match you up with those who share your characteristics.

We are all sinners – at least in the business sense. And, it is hard not to be a business sinner today. In our current pell-mell state of rushing about putting out current “business fires” it would be beyond the capacity of mere mortals not to make one or more of the so-called business sins. Knowledge of these seven great business sins will not make you perfect, but can allow you to be a better business manager.

1. WORSHIPPING HIGH PROFIT MARGINS
If you maximize your profit margins, you’ll also maximize your competition. High margins mean your competition will lower their costs just to beat you out. Rather than have the highest profit margin, go after market share instead.

2. MISPRICING A PRODUCT OR SERVICE ON WHAT “THE MARKET WILL BEAR.”
Maximizing the price of a product or service based on what people will pay will not increase your market share. Find your niche, stay in it, and price your product or service to bring in more clients and customers.

3. USING COST-DRIVEN VS. PRICE-DRIVEN PRICING
Cost driven is taking in all your costs and adding a profit margin on what you sell. Price driven is coming up with a price that will cause your product or service to move. It’s usually a lower price, but with that comes less competition. If you get a handle on costs, become price driven and get market share—you will beat out the competition.

4. FINANCIALLY STARVING THE OPPORTUNITIES & FEEDING THE PROBLEMS
Because business owners often have trouble focusing on more than one concern, they put capital into old problems rather than putting it towards new opportunities. Old problems keep you stagnant whereas new opportunities are potentials for growth and can bring in much-needed revenue.

5. PLANNING YOUR BUSINESS FUTURE IN AN ECONOMIC VACUUM
Day-to-day activities of running a business keep many business owners unaware of what’s going on in the economy. This causes them to react to changes instead of planning for it. Seeing beyond the forest will help you prosper in what will be a turbulent economy.

6. NEGLECTING THE TOP LINE (SALES)
Unless your sales and revenue are growing, your bottom line will eventually shrink. Just being a good money and production manager is not enough. You must be a good marketing manager to bring in more business, referrals, and sales.

7. STRAYING FROM YOUR CORE BUSINESS
Don’t go into a business that you know nothing about. It’s foolish to branch out if your second business doesn’t increase your sales significantly and adds to your bottom line. Unless you maintain a certain rate of return on your invested capital, you may wind up losing both.

Here are the 5 most important aspects of the business that investors want to read about in your business plan:

1) That The Company Has Focus

The company has clearly defined its business and can state it in a single strong sentence that says it all. Yes, your plan probably will have a more expansive description in its executive summary but you need to open your plan with that one simple declaration to show the clarity of your vision for the business.

2) That The Market Has Potential

The company has a large existing market for its products and services. If your company does not have significant growth potential then it is probably not going to be of interest to many equity investors. If you are shooting for debt based capital that may not matter most to them (market stability would be though so keep that in mind if your plan is geared towards raising debt based capital); but to an equity investor growth is of paramount importance and the size of the market signifies the opportunity potential.

3) That The Company Has Specific Solutions For Their Market

The company has identified what its customers most need and has created a value proposition for them to make it a simple “buy” decision. If there is nothing unique or distinct about your company’s products/services then you do not have a defensible position in your market. Defensibility of your market position is of key importance to investors and funding sources.

4) That Customer’s Show A Readiness & Willingness To Buy From The Company

In an ideal situation, the company’s customers have a recurring need for their products and/or services, with a reasonable sales-cycle and opportunities for premium up sell of additional products & services.

If you don’t have customers ready and willing to buy now … then that does not bode well for interest from most investors and funding sources. If your market is a long-term development type of proposition then your company will need to prove that it is truly a disruptive business model that will have people flock to it once it is functional. Its not so much “if you build it will they come” but rather “if you build it will they buy?”

5) That The Company’s Main Dynamics Are Strong

What are the main dynamics of a company? Simply put it is two components: a sellable product/service and a management team that can run the business well. Investors and funding sources want to know that the company has created unique solutions superior to their competition. And that the management team consists of smart people able to deliver products/services to their customers, control expenses and make a profit … repeatedly.

* * *

If you create your business plan to address the above; then you are ahead of what most people end up with in their business plan. Weaknesses (dilution) caused by putting too much of the wrong content and not enough of what mattes most, kills interest in a company’s plan. It’s the answers to these 5 important aspects that investors and funding sources find most interesting. How well you answer them will affect the outcome of your search for capital.

In my next post I will get into how to use these 5 as your guide for creating (or revising) your business plan to make it an optimal document that says what it should. Be sure to watch for:

How To Really Get Your Business Plan Read (by investors & funding sources)! Learn how to create the type of business plan that investors and funding sources will enjoy reading and will take action on.

Dennis Lowery
Adducent, Inc.

A good list isn’t just a random collection of people. It’s a list of people who have something in common. It may be their age-range/gender, professional affiliation, personal interests, level of income-you name it. If the people on your list have something in common that puts them in the target market for your business, then, bingo. You’ve hit pay dirt.

There are a number of ways you can put the power of a list to work for you as part of an effective overall marketing plan. You can use that list to conduct market research, the way Fortune 500 companies do. Or you could use that list as the basis for your marketing campaigns, utilizing direct mail, email or both.

With all the different ways that the power of a list can help to grow your business, using one only makes sense.

But how can you get your hands on a list that actually corresponds to your target market? Here are a few tips to help you get started.

1) Build One
Your website is a great place to start building a targeted list. That’s because there’s one important thing that all visitors to your website have in common-an interest in your products and services. It’s not hard to see why capturing their contact information can be key to the growth and success of your business.

One effective technique for building a list based on your website traffic is to create a free e-course or special report. When visitors sign up to receive this free information, they provide their email address. The e-course or special report is then sent directly to their inbox and their email address becomes part of your list.

This is a technique that has been incredibly effective for thousands of savvy entrepreneurs.

2) Exchange One
Maybe you know of another business owner who serves a clientele similar to yours with a complementary (non-competing) product or service. In which case, it might be beneficial for both of you to double the size of your list through a list exchange.

If you’re just getting started, and don’t have a list of your own just yet, there might be something else you could provide for your fellow entrepreneur. You might offer to provide a free ad for their business on your website or feature their products or services in a limited run of promotional materials for your own business. Both of these ideas foster the spirit of “win/win.”

3) Find One
The Dunn and Bradstreet Corporation (a.k.a., D&B) is among the leading providers of business information in the world. If your target market includes a certain profession and/or business clientele, you can use the massive database on their website to create a targeted list.

Entries to this site provide legal and trade names, physical and mailing addresses, geographical descriptions, product and industry descriptors, sales and number of employees, as well as up to 40 vital statistics. This information is often used by large corporations for marketing research services and finding prospective customers, because you can really hone in on the specific types of businesses you are looking for.

And, D&B offers modest subscription services for small business owners that include profiles of the top companies in a wide variety of industries. Their Industry Reports can really help you narrow down on sales prospects, in particular.

3) Buy One
When all else fails, there’s always the option of simply purchasing a list. There are a number of businesses online that offer extremely targeted lists, based on the target market you are trying to reach. Check out www.melissadata.com — one of the good ones. If your customers are consumers, they’ve got a variety of targeted lists you might find interesting, including people who have recently moved, recent graduates, people who are “about to move,” absentee homeowners, people with credit challenges, income groups, people with children, married vs. single people and more.

While buying lists tends to be expensive, it may be a worthwhile investment in the long-term health of your business. Before investing serious money in a purchased list, you should know more about your sales conversion rate so you can build a budget for list-buying that ensures a solid return on investment.

No matter which option you choose, remember - a good list is worth its weight in gold!

Over my next posts, I’m going to share with you some important things that I’ve learned over 26 years of business experience from some of the most successful investors, investment and venture capital firms in the world about how they read business plans and what they look for in them.

First some basic advice: With business plans, size does not matter.

Let me say that again.

Size does not matter.

Never lard up a business plan just to make it a hefty read, thinking to “wow” people based on its bulk. That does not impress experienced business people, knowledgeable investors and funding sources.

Experienced and successful business professionals know this and focus their business plan to make it concise and succinct; one that hits all the “hot buttons” but does not say more than it should.

If you use a template to create your business plan, use it as a guide only and modify extensively to give it its own distinct identity. Strip out and replace any “boiler-plate” language that is not necessary and put in only the important things you need to convey (read on to learn what that consists of).

If you hire a business plan writer (who may write well but does not have a great deal of business experience), be sure not to just accept what they give you as being the best for you. Make sure it answers the five most important things (we’re getting to them shortly) that investors and funding sources look for … no more … no less.

What to leave out of your business plan is just as important as what to put in!

• With business plans, telling them you graduated from John Smith high school, love cats and your hobbies are snorkeling and bear wrestling do not matter.
• Telling about your dream to own your own business does not matter.
• Telling them any thing not directly related to the business or your capability to run that business, does not matter – leave it out. Let that simple rule govern what you put into your plan.

You get the idea without me having to add more bullet points (see … less is more!).

What does matter?

I’ll get to that in my next post, because if your business plan does not have what matters most – and you’ve filled it with things that don’t – you have wasted your time and more importantly someone else’s time (and from the all important point of attracting an investor or funding source that is a death blow).

You get one shot at a first impression. Don’t blow it!

Be sure to watch for:

The 5 Most Important Things Your Business Plan Should Contain (that investors want to read about)

Until then best wishes and good fortune to you (and fortune favors the prepared),

Dennis Lowery
Adducent, Inc.