This is an outstanding article outlining the importance of taking stock of what you have and how you manage it on a regular basis. Please contact HLR if you have questions about your intangible assets!
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A brilliant idea is not profitable until it is marketed to people willing and able to pay for it. There are plenty of services offering "Search Engine Optimization" and "lead generation" lists, as well as a myriad of products to "target" your intended clients with web or mail marketing. But do you know who you want your clients to be? This article states right in the headline that it's "wooing affluent consumers." How many of you are brave enough to introduce yourself at a Chamber of Commerce meeting or cocktail party that you target "affluent customers" or "high-net-worth individuals"?
Now, it's hard enough to articulate that when it's true. But the point is more that you need to know what kind of customers you want, what kind of customers you have, and why there may be a disparity. It takes both soul-searching and market research. Perhaps you wish you could target only "The One Percent," but in reality your products and services are more appealing to middle-income people looking to find high value at a reasonable price. Talk to your customers and listen even if it's not what you're hoping to hear. You can either adjust your products and services, or adjust your marketing. For a quick overview of what-not-to-do when starting a small business, Susan Wilson Solovic had an outstanding article in the Wall Street Journal yesterday. I'm confident my readers are as intelligent as they are busy, so when I come across gems like this one, I'll share without editorializing.
Yesterday, we began an overview of alternative funding arrangements for small businesses. I revisit the topic today because there is so much good news in this area. In the Wall Street Journal today, Angus Loten outlined areas where rates for small business loans, frequency of lending, and loan repayments are improving. Naturally, Bank of America continues to "buck the trend" of loosening credit, reinforcing the idea that it pays to shop around for lenders. According to Loten, there are signs that the US economy has hit bottom and even if you have applied for a loan and previously been denied, it might be worth another try.
Before the New Year, Loten outlined the bold moves being taken by some entrepreneurs in light of these signs of improving markets. One of the main indicators of an improved economy, he argues, is that leaner-meaner staffs have been pushed to the limit and hiring is slated to increase. Small business owners have cut back each year for several years, and there might not be any more cuts left to make. Accordingly, bolder managers will increase spending to break out ahead of the pack in terms of attracting good talent at lower-than-2006 prices and growing market share before more conservative competitors. Remember, your intellectual property is valuable. As you prepare to apply for financing, be sure to include those intangible aspects of your business that give you an edge over your competitors. This will make you a better bet for lenders, and may give you more leverage for getting a good rate. Did you know that you can access your retirement nest egg to finance certain types of small business investments? Did you know that alternative funding -- that is, other than credit cards, banks, and your family -- are becoming more popular and more regulated each year?
If you're like many people, you have a great idea to start a small business, but you need capital to get the ball rolling. The above article outlines some unorthodox ways to finance new projects. I've already talked about crowdsourcing as an alternative to using venture capital firms. This article posits some other ideas, like government grants and asset-backed or collateralized loans. If you are curious about non-bank financing, such as the Small Business Administration (part of the federal government) or state-based tax breaks and incentives, this article is a great place to start. It's always a good idea to discuss ways to protect your major assets with a financial advisor or tax professional. Whether you need a trust, a Limited Liability Company, or a power of attorney, Hawley Legal Resources is at your service to help protect your assets when you take risks to finance your dream. |
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