What a Website Needs to Succeed! by: Jim Shutes

A Proven Formula for All Websites

Every business needs a website. It is an absolute MUST! Nowadays, it’s like not being in the phone book. The Internet is a digitally-indexed database that is searchable. Whenever anyone wants to know more about anything, they look it up on the Internet, in their own time, 24/7, without the pressure of a sales person. With search engines, such as Google.com or Yahoo.com, the information they are looking for can be found in seconds.

If you aren’t where people are looking, you CAN’T get the sale.

Even if you aren’t planning on selling anything online, you still need to have an Internet presence, telling your story and being a 24/7 sales person for you. The Internet is information. So, even if you just have an informational website, people can find out more about you, your company, what you have to offer, and why they should choose you over your competition. A website gives you the opportunity to get all of that across to your potential customer.

Following, are proven components of a website and why you will need them in yours.

A Home Page is the window into your website and should be short, sweat, and to the point. Statistically, it has been proven that you get about 3 seconds, once a person arrives at your website, to get them interested enough to click for more information. If you can get them to click, then you have them! If you try to give them all of the information at once, then you will lose them.

Some websites try to give you their inventory on the home page, or write a story that scrolls forever. This is not good. A home page should not scroll. This is a big “No No”. When people get to a home page and see paragraphs, trust me, they go on to the next website. It needs graphics that represent the services, happy pictures, happy customers, and a quick sales pitch. Remember, people are lazy and won’t read large amounts of text, unless they have a need to. And included on the home page, needs to be quickly gotten across, why someone should use you over your competitor.

The About Us page sometimes gets left off, in favor of making the home page the About Us page. You will want to have an About Us page that explains in detail what you have to offer, your history, your mission statement, and a good reason that a potential customer should use buy from you over your competitor. This can be seen as the detailed version of the home page. However, it is a mistake to forgo the About Us page in exchange for a detailed home page. Again, this will just push people away who do not want to read all of the details to find out who you are and what you have to offer. This information should be available for those who wish to see more information after they are intrigued by the home page.

Design rules. For uniformity and good design, websites (any marketing piece) should have rules for graphic elements and text. For example, all headings should be the same size/style/color, etc. All subheads should have their own size/style/color, etc. This helps the eye make sense of what it is looking at. Guide your visitor with well-placed graphics and text.

Make sure that your website has good navigation, with buttons/links for all main sections of your website. And be sure to keep these navigation buttons/links visible on ANY page. There is nothing more frustrating than to not be able to find your way while browsing a website. People will leave before becoming too frustrated. Don’t let this happen on your website!

The constant, flashing email (or other) button/advertisement is a "No No" these days. In the old days, flashing and blinking graphics were used. As websites became more graphically sophisticated, these types of elements were not used any more. It can be annoying to see something flashing just off your vision, when you are trying to read the web page.

Text links at the bottom are rarely used any more. They were implemented back in the day of the text-based websites, when they were just starting out. This was for the dial-up users who had the option to turn off graphics for faster web page loading. When this happened, there were no links for navigation, unless a webmaster placed text links at the bottom. Nowadays, most people have broadband connections, and this just isn't necessary any more.

The biggest problem I see with websites these days is that a person has to read quite a bit to see what, exactly, a website is selling. When people show up at your website, you get about 3 seconds to peak their interest. Get it across very quickly, with icons/graphics/bullet points that are easy to understand. Tell them why they should choose you over your competition. And then tell them where to go to get started.

Another very important element is testimonials. More important than telling them why a potential customer should use your services over your competitions’, is a customer of yours saying the same thing. Not only is a testimonial someone who used your services, but they can say "how" you were able to help them. This gives new potential customers ideas on how your services will help “them”. Testimonials are also sales pitches from your happy customers, people just like them. They are people who were in the same position as they are right now and they got through it, so they can too. They also build credibility. When you are endorsed by other people, you have credibility and that you can do what you say you can do. And even though they may be saying the same thing that you are saying, it is coming from someone just like them, and not someone who is trying to sell them anything. They have nothing to gain by saying this. You do. So they need to hear from them. You absolutely MUST have endorsements for your business; otherwise, you are just blowing your own horn!

The next best thing to a testimonial page is an FAQ page. An FAQ (Frequently Asked Questions) page answers questions for your company 24/7, when you can't be at the phone to answer, and for people who would rather look over your information than speak to someone who might try to sell them something. FAQs also help to give scenarios of how they can be helped, by answering questions that other potential customers have asked, and they might not have thought of themselves. This gets them thinking and gives them answers in a risk-free environment. It is VERY important to have an FAQ working for you 24/7. It's like having a free sales person working for you around the clock, fielding all questions that might come up! It's a MUST-have for ANY website!

Your website should also have a clear "call to action". A lot of websites say that “we are here and we do this”, but they don't tell them how to get started, or tell them where to go to get started right now... no call to action. Now that they have the information, now what? People are like sheep. They must be led. You must lead them to the next level; otherwise, they probably won't get there. You should have calls to action by all services, and on your home page. You should sprinkle testimonials throughout, as well, leading them back to the full testimonials and then to the call to action, which should be placed on the testimonials page, as well. You could offer a FREE Consultation by calling right now… or click HERE now to email us 24/7 for a FREE Consultation… something that tells them where to go from here and a reason to get started right now and how.

There also needs to be graphics to help tell the story; high-end icons that help draw the eye to the item of interest, to get them to read it. Having a text-only page usually does not get read. People are lazy and will not usually read paragraphs of information in hopes of getting the information they are looking for. They would have to first be extremely interested before reading the “fine print”. And to get them interested, it should be broken up with graphics that represent each section. They will see the related graphic first, and then move to that area if interested. But to give them a page of information usually doesn't work.

You also need meta tags. This is very important to search engines. These are hidden key words and phrases that describe what you offer, but also your location, etc. Search engines rely heavily on key words and phrases in order to give your website as a result in a search done for your type of business. In fact, it is also good to have misspelled keywords that people might type in order to find you. Obviously, you won’t want to have misspelled words or phrases on your page, since this will give the wrong impression of who you are. With meta tags, misspelled words are hidden in the code of the website, but can be used to bring people to your website who may not be able to correctly spell some your services. Even putting your competitions’ names and products in your meta tags can help get traffic to your site, so that they can compare your products and services to your competitors’.

Another item that puts you high on the search engine results listing is having articles about your type of business, both on your website, and other websites that link back to yours for more information on the subject. Offering free information makes you an authority on the subject, not just someone trying to sell their wares. This plays heavily in search results, along with one-way links back to your website. When you get one-way links back to your site for more information, this gives you much credibility and definitely helps to make you an authority that other sites rely on. So when someone looks up your type of product or service for more information, obviously the search engine will give a site that has the most helpful and free information (and one that other sites rely on for more information on this subject) a higher rating and puts them higher on the search results list.

A FREE Tips & Tricks or Hints page is also a good way to get relevant traffic. People are always looking for How-To's and DIY information on all types of subjects. On my site I have FREE Tech Tips that get hits all the time, which pertain to my services. Again, a percentage of these hits click on my services. And the only way I got them there was because of the FREE How-To's that I offer. So, you have to entice people to your site, by offering more than your competitor's website. This is where these types of pages come in handy.

It is also good to have a Privacy Policy page. This shows integrity and also builds credibility and a higher ranking in the search engines. This is one item that search engines look for, in particular. Websites with a page dedicated to a Privacy Policy get a higher ranking and your site will show up higher in the search results.

A Guarantee page is also a good idea. Again, this gives credibility and will give you an edge over your competitor, who may not offer a guarantee. A website that has a guarantee, but is hard to find, makes a potential customer feel like they have something to hide and may not purchase from that website. However, if you have an easy-to-find Guarantee that you put right in their face (whether you dedicate a page to it, or you put it right on the Home page), it eases potential customers into a buying position.

You may want to have a form that allows a customer to request more information about your product or service, and which also lets the customer type in their personal information and what they are looking for. This not only helps you by getting their contact information, it also helps by prompting the potential customer into thinking about other aspects. By doing it this way, you will also get all of the information needed to correctly quote a product or service more effectively, without having to make additional phone calls to the customer. The more common way of requesting information is just by posting an INFO email address and hope that the person requesting the info knows enough about what he is looking for to provide all of the info to get a good quote. This is not usually the case. Most of the time they need a form to fill out. In most cases, there is info that is left out. A form ensures that you get everything needed to quote the product or service accurately. And, also, by offering a form to request more info, leads will be generating 24-7 for you. All you have to do is the quote and give them a call. This reduces the need for cold-calling, and gives you an excuse to call and close the deal.

If you incorporate all of the above pages, along with the “way” these pages should be shown, your website will have a higher ranking in the search engines, which puts your website higher in the search results, thus significantly increasing the traffic to your website!

The above categories aren't the only things you can do to increase traffic to your website. SEO (Search Engine Optimization) should also be done, as well as swapping links with relevant websites, and posting articles and links back to your website from online article and content websites.

To have an award-winning and specially-formulated website designed for your company, contact Michigan Tech Group TODAY at (810) 496-4595 or email us at info@MichiganTechGroup.com Visit us online at http://www.MichiganTechGroup.com

Good luck. I hope this article has helped you. If you live in the Lapeer, Genesee, or Tuscola County, Michigan areas, and would like an IT Professional to do a professional to help you in your home or business,please contact Michigan Tech Group at (810) 496-4595, or visit our website at http://www.MichiganTechGroup.com. You can email us at info@MichiganTechGroup.com.

If you would like to use this article for any publication, you may do so if you do NOT change any of the content, and the tag line remains intact.


About The Author
Jim Shutes

I have worked in the IT field since 1989 and hold several Microsoft certifications. I am a network administrator and co-owner and co-operator of Michigan Tech Group, located in Flint, Michigan. During these years, I have supported both Macs and PCs, am an accomplished graphic and web designer, and have had the opportunity to support 2nd and 3rd level enterprise networks for GM, EDS, Delphi and Delco. If you would like to get in touch with me, you may do so at (810) 496-4595, or by email at jshutes@MichiganTechGroup.com. My website is http://www.MichiganTechGroup.com

Advantages of a Custom Website versus using a Website Builder Tool by: Rodney Ringler

Advantages of a custom website versus using a Website Builder Tool

The internet has revolutionized business all around the globe. Almost every competent new or existing business wishes to exploit the incredible potential of the internet, and the first step is to have a web site designed done and maintained by a professional web site design service or build and maintain it yourself. One of the first things to consider is your computer ability. If you despise computers and software and find them confusing and frustrating then building your own website can be quite a task. One that you may not want to undertake. However, if you enjoy working with computers and learning new things or if you just have the patience to stick with it, then building a website is within your grasp. You may also decide to do it yourself to save cost. If you still feel that you want to build your own site you should choose software that is easy to use and user friendly.

Your website should be as unique as you and your business. You should select the website that is specialized in what will meet all your needs, both now and in the future. Custom based websites are for those who already have a website but are looking for those special finishing touches that quality custom graphics can provide. Designer graphics can make your website stand out above the rest and a custom website specializes in taking your original graphic or photo and turning it into a unique work of art. Quality graphics make an incredible difference in the visual appeal of your website.

Actual site "content" continues to be essential to the success of a website. More often than not though, visual appeal is the determining factor as to whether or not a client or customer will remain on a website long enough, to actually see the product or service the business is providing. Custom websites are for those who don’t have the time to design or create, but want to get things mush better and fast with a nice graphics.

Web site builders are online tools which anyone can use to build a professional looking Web site without programming and have it hosted instantly. No software to buy, no code to learn, all you need is to be a little Internet savvy and know how to click your mouse.

Most business owners today know that having a web site is an essential component of marketing. In the past, the choices were to hire a professional web designer, hire a local teenager to create a site for mall money, or learn to do it yourself. The last two options, are the least expensive, and were the preferred method for small businesses. The results are often not what businesses need to grow, reach, and impress new potential customers, however. They seem good at the start but quickly become limiting.

If you operate or manage a business, you surely must realize the increase in e-commerce taking place today. Many businesses find themselves searching for the best way to increase their exposure on the internet, and for most a website is the first course of action. As most businesses operate on firm budgets, finding cost effective solutions are usually one of the first thoughts when looking to make new purchases. When it comes to creating a website there are many affordable software programs that can produce professional results. Business software should be capable of handling your needs today and in the future. Business are always changing, adding new products, changing or removing old products, offering specials, having sales, etc. By choosing a business website builder over a professional web designer you will be able to make changes to your website whenever you want to. Another benefit is that you will be avoiding the high costs associated with developing the website and costs for making any necessary changes.

Website Builder tools advantages to you are increased revenue, cost control, caters to the large demand existing for web designing in the SME sector and can increase the client base without adding to your overhead. The advantage that your customers gets is a professional quality website, up and running in minutes and a User friendly and easily customizable interfaces that gives a complete website with all its frills and features and a nice attractive design. The downside is that you are limited to the look and functions of the tool and the templates or designs they provide.

On of the advantage of a custom website design is that the web site will look and function exactly as you want. A custom made web site can promote your brand and increase sales. The functionality and design of your website is important, because the images and text on the screen can make an indifferent visitor turn into a keen client, and the goal is to optimize your site to evolve maximum traffic conversion.

As more and more people are starting their own small home business many are finding that having a website is an important factor to consider. When one starts to consider building a website, especially the novice, many questions arise including…. can I create a website myself or should I hire a professional?

Hiring a professional is a great way to go if you can afford it. Although there are several things to keep in mind: how much will it cost? How much will ongoing maintenance cost? What will changes cost? How long will changes take? etc. As a result, many people opt to build their own website and begin searching for software that can easily help them.

As you start searching for an easy web site builder, there are some factors that you should take into consideration so that your new software will serve you now and the future.

There is quite a variety of easy web site building software and content management(CMS) based websites on the market today. In addition, some of the software available today is very expensive, geared more for the professional web designer, and come with a huge learning curve.

The options for small businesses to get a site developed have changed from the past. There are now sophisticated "site builder" tools available to small business owners, bundled with many web hosting packages. By using templates, and a content management system to manage updates to the site, it became easier to set up and maintain a web site, and many development companies have canned this functionality, for a fee. Hosting providers are increasingly offering tools to automate the web site building process, and with good reason. This new option has many benefits, as long as the business owner recognizes that there are trade offs and limitations to getting a web site this way. Some of the downsides are…the design is limited to their predefined templates. The functionality is limited to the tool. Also, in most website builder tools it is hard to perform search engine optimization, which is essential for a site to be found in the major search engines.

One of the biggest attractions for site building tools is the cost. It won't necessarily cost less to get your site this way, but it does provide a way to spread the cost over time. The cost for a custom website varies as per the feature and function it carries with itself.

Many people are concerned with building their own website, fearing boring designs and complexity. However, it is now becoming apparent that there are many custom web site builder software products on the market that promise dynamic layouts, professional templates, and user friendly web design tools. The professional web designers know there are a few more things to know, but sometimes they find some irony in the fact that web developers, in their quest to improve and better the web, have made themselves "optional". Most site building tools today are very robust, making it simple to add forms, searching, maps, guest books, calendars, and a whole variety of elements to a web site. Even better, the hosting company sometimes offers an entire suite of services - the site builder, email marketing, search engine optimization and statistics, all in one package along with the hosting.

There is also a possibility that the service will require you to keep some branding on the site telling people that you used their website designs and tools. This is more common with the free site builders - which pay for themselves by putting ads on your site. If your goal is to build a business web site, it's really not worth sacrificing your professional image by getting something free, which screams CHEAP.

Low quality websites sometimes attempt to sell expensive products or services. These websites cannot succeed. Studies reveals people spend more time on a well designed web page than on a low quality web page. There is a comparative relationship between the amount of time that an average visitor will spend on a web page and the amount of time that was spent building the web page.

Websites are an important aspect of online businesses. They are the first face of interaction between the user and the business. The website creates the first impression on the user and hence needs to be effective and impressive too. It is the job of web design services to make the website user friendly and search engine friendly too, so that it can serve the purpose of both effectively.

A tool can make things happen - but if you don't know what to make happen, it is either a useless tool or a dangerous one. There is a learning curve in knowing how to present information online (called information architecture in the profession), as well as for using the site builder. In other word, the fuller featured the tool; the more there is to learn. If you aren't familiar with color theory, use of typography, information architecture, navigation and interface design, and page layout and design, you can potentially make something that will hurt your business more than help it. So, unless you are already computer and web savvy, figuring out all the features within your web hosting and site builder package can be time consuming and frustrating.

In the end there are ways that a business can take advantage of these new options and still create a functional and professional web site. One way is simply take your time and research the available website templates, and find the one that has the most features and flexibility, that meet your functional requirements. In other words, spend the time to learn the things a seasoned pro would bring to the table. The internet is a massive library of "how to" information, where you can literally teach yourself anything - and with enough time spent, you could potentially learn how to layout information, what colors and fonts work well together, how to conduct your marketing online and optimize the site for search engines. The second is choosing the best suitable custom website design company and work with them to build a professional website that meets your needs get your imaginations carried and make business a greta success.

About HostChart.com

HostChart, a Web Hosting Company Resource, is a leading web hosting directory website that has been in business for over 5 years. They provide numerous web hosting articles and tutorials as well as news, interviews, and reviews. You can use their extensive set of tools to research and evaluate your current or future web hosts.

About The Author

Rodney Ringler is President of Advantage1 Web Services, Inc., which owns a network of Web Hosting Informational Websites including HostChart.com

Basic Knowledge of How to Select a Right MLM Company by: Tsuyoshi Suzuki

Introduction

Network marketing opportunity is a big decision. But how do you choose which network marketing opportunity is the right one for you. Basically, what a network marketing opportunity is nothing more than direct selling. Is the general impression left that the network marketing opportunity is largely about selling the network marketing opportunity to new participants with an emphasis on recruiting or acquiring new participants and selling them the product, rather than having as a primary purpose the sale of the product to non-participants who remain non-participants?

Start

Many companies also offer incentives such as fast start bonuses which can really jumpstart your earnings. Your full of energy, motivated about the product, and eager to get started. But you really should give yourself at least six months and some sales before you start calling the family tree. Everybody has to go through that startup period when they are NOT rich, famous, and a shining example to all who seek to emulate their success. What do you get in return for your start up investment, other then the potential to earn good money? If you want to, you can start your own company any time you want.

Program

Ask yourself if it is something that you can use and sell outside of the program. If the product is only useful in recruiting others into the program than you should probably stay away from it. Try to avoid programs that force you to go wide on your first level, or who don't reward you for going deep. The average network marketer only recruits two to four people, so you will want an opportunity that allows your downline to go deep which will make it easier for everyone and may help people from quitting the program. Do a little research on the company and the program you are thinking about getting involved with. The program should have great marketing tools, training, and excellent customer support. Sometimes diligence and patience, which are rare commodities in someone who has invested money in a network marketing program, will overcome the lack of a system or training program.

Companies

Companies go through different stages of growth, and choosing the right company at the right time is crucial to your potential with that particular company. Companies can combine the basis compensation plans in any way they want. How does the pay plan compare to other companies with similar products? This question should be going part of your thought process as you choose just what you want from a network marketing companies’ opportunity. Network Marketing means that companies choose to sell products by using independent distributors rather than stocking their products in storefronts. Most network marketing companies have a money back guarantee which means that if you are unhappy with the products you can send them back for a refund and also retired the pension plans. If you happen to be a member of several companies, it is important to remember that you should really focus on one good network marketing home based business for the long run and the others will tend to operate essentially on kind of a referral basis.

Conclusion

So, now that you understand how choosing a online network marketing opportunity as your perfect chance for starting a successful home based business. This is why the educational system inherent in a good network marketing opportunity is so important. Trying to decide if that network marketing companies are right or not. If your Network Marketing opportunity is leaving you feeling confused about how to grow your business into a successful and profitable venture maybe you should consider that again. Achieving financial freedom from home is probably one of the biggest desires for people today and it is a great way for you to start a new career and meet your own personal goals. For more information about MLM, make sure you follow the link in the recourse box below now.


About The Author
Tsuyoshi E. Suzuki is an Expert Internet Network Marketer.

Home Based Business Tips for Newbie by: Tsuyoshi Suzuki

A major concern of all Home Based Business Entrepreneurs is to get Traffic to their websites. Most people who have searched for a suitable home based Internet Business opportunity complain about a common illness: They are sick and tired of websites that promote best home based Internet Business opportunities… sick and tired of the false promises, the over-hyped sales pitches, and the downright SCAMS that lurk behind most Internet Business opportunities. Millions of people around the world have had the dream of finding the perfect home based business and being able to fire their boss.

Starting a home based internet business can be a run away success if the website comes up within the first 20 results of organic searches. Promoting your Internet Business Offline is a great way of getting over this problem and at the same time creating an image for yourself and your Home Based Business. Hence SEO is one of the main tools for your websites promotion as well as marketing, when starting a home based internet business.

Looking at the above statistics and statements, you must have gathered a basic picture in your mind on how important SEO can be to your starting a home based internet business. If you are new to the Internet business, you might feel that you would prefer to remain anonymous because you are still learning the trade and have no expertise to share. Once you’ve decided what you are going to sell on the internet and how, you venture online to search for profitable home based business opportunities that appeal to you.

In addition to diversifying your online business, you should also take a few other things in account that are unique to the problems that home based business owners face. These are just a few of the reasons that you should consider diversifying your business. Promoting an home business calls for 3 things: increasing traffic to your website, selling goods/services that are worth the money and retaining/adding to your customer base.

In order for your internet home business to be successful, your website must well set up so that it attracts the traffic you need, and so that the visitors who will come to your website will make you some money. For your business to be successful, it is important that you constantly improve your website or products/services, and you can achieve this by having a feedback form on your website. The final fear to overcome when thinking about putting your photo on the Internet for your website, is that you are not good looking or just don't photograph well.

One of the easiest, low capital and requirement little knowledge and skill initially to build a home based business is to join a MLM or network company. Another way is to get into the mind of the small home business owner. As a Web Designer or a Business owner wearing a Web Designer Hat it seems you have 2 Choices, do what seems right and in many ways best and use a Pretty Directory Structure and Loose Ranking points or Throw out the Directory Structure and Gain Ranking Points.

Tsuyoshi E. Suzuki makes it easy to build your home based business and earn a substantial income. Finally, you should make sure that lifetime support for your profitable home based business opportunity is provided. For more information, make sure you follow the link in the recourse box below now.

How to Successfully Navigate Your Business through an Economic Downturn by: Terry H Hill

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

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Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

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About The Author
An author, speaker, and consultant, Terry H. Hill is the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm based in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business desk-reference book, How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine."

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Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.