Businesses

Does your small business ship products directly to customers? Well, you aren’t alone. With the rise of e-commerce, many brick-and-mortar businesses have since taken their operations online. Selling products online allows you to reach a larger audience. The downside, however, is that you’ll have to ship products, which can quickly eat into your operational budget. The good news is that you can save money on your small business’s shipping costs by following these five tips.

#1) Ship Multiple Products Together

If a customer purchases two or more products, consider shipping them together in the same package. Conventional wisdom should lead you to believe that it will cost less to ship one package rather than two packages. You can even pass some of these savings along to the customer, who may feel compelled to leave a positive review for your small business.

#2) Compare Flat Rates vs Standard Rates

Many shipping companies, including the United States Postal Service (USPS), offer both flat rates and standard rates. If you’re shipping a small and lightweight product, you may want to use the standard rate. If you’re shipping a large and heavy product, on the other hand, a flat-rate box may cost less. The only way you’ll know is by comparing the shipping company’s flat rates to its standard rates.

#3) Purchase Insurance Through a Third Party

As a small business owner, you should insure your packages to protect against financial loss. Shipping companies are bound to make mistakes. Maybe they accidentally lose one of your packages, or perhaps they send it to the wrong address. With insurance, you can rest assured knowing that you’ll be financially compensated in cases such as these. Rather than purchasing insurance directly through the shipping company, though, consider using a third-party insurance provider. They typically offer cheaper rates,

#4) Reuse Bubble Wrap and Boxes

To say packaging supplies is expensive would be an understatement. Depending on sales volume, some small businesses spend thousands of dollars on packaging supplies each year. You can cut this cost, however, by reusing bubble wrap and boxes. When you receive a shipment of products from a supplier, save these supplies so that you can reuse them later.

#5) Get Multiple Quotes

Don’t forget to get multiple quotes on shipping costs from different shipping companies. Contrary to what some small business owners believe, the USPS doesn’t always offer the lowest rates. Other shipping companies to consider include UPS, FedEx and DHL. By obtaining multiple quotes, you’ll be able to see firsthand which shipping company offers the lowest rate for your small business.

Have anything else that you’d like to add? Let us know in the comments section below!

What type of phone system does your small business use? If you’re stilling using a traditional landline, you should consider upgrading to a voice-over-internet-protocol (VOIP) line. While both types will allow your small business to place and receive calls, VOIP offers several noteworthy benefits.

#1) Record Conversations

With VOIP, you can set up your small business’s phone system to record calls automatically. Why is this important? By automatically recording conversations, you can gain a better understanding of your customers’ or clients’ needs.

#2) Increased Accessibility

VOIP is more accessible than traditional landlines. A landline, of course, requires a physical connection with each phone. If you want to use three phones at your small business, you must run a cable to each of the three phones. In comparison, VOIP only requires internet access, such as Wi-Fi.

#3) Support for Smartphone

You might be surprised to learn that you can use your smartphone for VOIP. Of course, this isn’t possible with a traditional landline. Landlines only support basic, non-mobile phones. A VOIP, on the other hand, allows you to use any internet-connected phone to place or receive calls.

#4) Video Conference

VOIP systems come with a myriad of features, one of which is video conferencing. Also known as telepresence, video conference allows you to host video-based calls in real time with other employees, customers, clients or vendors. Assuming your phone supports video — meaning it has a display — you should be able to host a video conference call with it. To do so, though, you’ll need to choose a VOIP phone system for your small business rather than a traditional landline.

#5) Scalable

VOIP is scalable, so you can rest assured knowing that you getting the best value for your money. If your small business rarely uses the phone, you can choose a low-tiered VOIP service. If your small business frequently uses the phone, on the other hand, you can choose a high-tiered VOIP service. You won’t find this level of scalability with traditional landlines, which is just one more reason to consider VOIP.

#6) Productivity

You may notice that a VOIP has a positive impact on your small business’s productivity. You’ll be able to make calls from any phone, assuming it’s connected to the internet. As a result, VOIP can make you, as well as your employees, more productive.

Have anything else that you’d like to add? Let us know in the comments section below!

What forms of payment does your small business accept? Not all customers will use the same method of payment. If a customer prefers a specific payment that’s not offered by your small business, he or she may leave and visit a competitor’s business from which to purchase the product or service. So, what type of payment solutions should your small business accept?

Cash

Even with the advent of digital payments, cash remains the preferred form of payment among most consumers. According to one study, 30% of all transactions involve cash. It’s a universally known and recognized payment solution that keeps the wheels of commerce turning. Cash offers an unparalleled level of convenience when compared to other forms of payment. As long as a customer has cash, he or she can make a purchase. As a result, your small business needs to accept cash payments. Otherwise, you’ll struggle to attract and retain customers.

Check

In addition to cash, you should consider accepting check payments at your small business. Assuming you have a checking account at a bank, you should be able to deposit check payments received from your small business’s customers. You may incur checking account fees, but most banks don’t charge for check deposits. The downside to accepting check payments, of course, is the potential for a bounced check. If the customer has insufficient funds in his or her account, the check may not clear.

Credit Card

All small businesses can benefit from embracing credit card payments. According to Fundera, over three in four consumers have at least one open credit card. With credit card payments, you’ll typically have a pay a fee per each transaction. Depending on the specific type of credit card payment solution, you can expect a per-transaction fee of around 25 cents and 3%.

Mobile Payment

In recent years, more and more businesses have embraced mobile payment solutions. What is a mobile payment exactly? As the name suggests, it’s a type of digital payment that requires a smartphone, tablet or other mobile device. The customer must first install and set up an app on his or her mobile device. Once configured, the customer can use the app to purchase products or services.

Whether your small business operates locally at a brick-and-mortar location or on the internet, you should consider accepting multiple forms of payment.

Have anything else that you’d like to add? Let us know in the comments section below!

As a small business owner, you might assume that your business is safe from cyber attacks. After all, large companies typically have more money, as well as more data, than smaller businesses, so conventional wisdom may lead you to believe that only large companies are targeted. The reality, however, is that all types of businesses are targeted by hackers, including small businesses.

The Rise of Small Business Cyber Attacks

You might be surprised to learn that cyber attacks against small businesses has increased over the years. According to research cited by Forbes, over half of all intrusions, malware insertions and other forms of commercially-focused cyber attacks last year targeted small businesses. With cyber attacks against small businesses on the rise, you should use this opportunity to evaluate your small business’s cybersecurity strategy.

Create Strong Passwords

The first layer of protection against a cyber attack is strong passwords. Short passwords are undoubtedly easier to remember than long passwords. Unfortunately, though, they offer minimal protection against cyber attacks. Hackers may perform a brute-force attack against your small business that involves guessing the correct password. If it’s short or otherwise weak, a brute-force attack could lead to serious consequences for your small business.

Change Passwords Every Few Months

In addition to creating strong passwords for all your small business’s login-protected accounts, you should change your passwords at least once every two to three months. Failure to change your passwords on a regular basis could result in a hacker guessing or otherwise identifying the correct password for one of your accounts.

Install Anti-Malware Software

Anti-malware software can help protect your small business from cyber attacks. Anti-malware software, of course, is software that protects against malware. It designed to both prevent and treat malware infections. If a hacker tries to deploy malware on one of your small business’s computer, anti-malware software should block the attack.

Use a Firewall

Finally, using a firewall can strengthen your small business’s security and, therefore, lower the risk of a cyber attack. What is a firewall exactly? When used in the context of information technology (IT), a firewall is a type of software application that’s designed to filter malicious and potentially malicious traffic. It automatically scans all incoming and outgoing traffic for signs of a cyber attack. If the firewall detects a potential attack, it will block the traffic.

Have anything else that you’d like to add? Let us know in the comments section below!

Are you struggling to generate leads for your small business? Regardless of what your small business sells, you’ll need high-quality sales to whom you can pitch your products or services. Unfortunately, many small businesses have a lackluster lead generation that hinders their ability to succeed. If this sounds familiar, you should consider the five following strategies to generate more leads for your small business.

#1) Direct Mail

Direct mail offers a highly effective channel for generating leads. Statistics show that over one in two consumers believe print-based ads, including direct mail, are the most trustworthy of all marketing channels. With direct mail, you’ll be able to target households within your small business’s key market regions, allowing for high-quality leads that are easy to convert into customers.

#2) Email

Along with direct mail, you can use email to generate more leads for your small business. One report found that that email is the single most popular lead generation channel for business-to-business (B2B) businesses. Whether your business sells to other businesses or consumers, though, you can use email to attract more leads. Just set up a newsletter, at which point prospective customers can provide their email addresses to receive updates and news via email.

#3) Social Media

Of course, social media has become an increasingly popular lead generation channel among small businesses. Statistics show over three in four U.S. adults have a Facebook account. Facebook, however, is just one of many social media networks. By creating an active presence on the leading social media networks, including Facebook, you’ll attract more leads to your small business.

#4) Ask in Person

Assuming your small business operates locally, you can ask prospective customers for their information in person. Even if a shopper doesn’t make a purchase, you can still ask for his or her contact information so that you can reach out with deals and promotions in the future. If the shopper obliges, you’ll have a new lead to whom you can pitch your small business’s products or services.

#5) Blog

Does your small business have a blog? If not, you should consider creating one. A form of content marketing, blogging is a highly effective lead generation strategy. As you create high-quality posts that are relevant to your small business’s audience, you’ll create a steady flow of new, high-quality leads.

Know any other lead generation strategies that you’d like to share with our readers? Let us know in the comments section below!

As a business owner, you probably know the importance of maintaining good credit. With bad credit — or no credit for that matter — you’ll struggle to secure financing. Whether you’re applying for a loan, a credit card or a line of credit, you’ll have a better chance of getting approved if you have good credit. With that said, it’s important to familiarize yourself with the differences between personal credit and business credit.

What Is Personal Credit?

Personal credit refers to the credit-based financial metric of an individual. In the United States, it’s linked to a person’s Social Security Number. When you apply for a mortgage or any other loan, you’ll have to provide the lender with your SSN. The lender will then check your credit score, as well as your credit history, to determine whether to approve or deny your application.

You can obtain a report of your personal credit for free once a year by visiting AnnualCreditReport.com. Available by clicking the aforementioned link, it’s operated jointly by the three major credit bureaus, including Equifax, Experian and TransUnion. Even if you don’t plan on using your personal credit, you should still get into the habit of checking it on a regular basis. Using AnnualCreditReport.com, you can obtain a copy of your personal credit from all three credit bureaus for free.

What Is Business Credit?

Business credit, on the other hand, is a credit-based financial metric of a business entity. Unlike with personal credit, business credit isn’t linked to a person’s SSN. Instead, it’s linked to a person’s Employee Identification Number (EIN).

With the exception of sole proprietorships, most U.S. businesses have an EIN. Also known as a Federal Employer Identification Number or Federal Tax Identification Number, it’s assigned to businesses for tax purposes. The Internal Revenue Service (IRS) gives each U.S. business a unique EIN. In addition to being used for tax filings, though, EINs are also used for business credit.

To check your business credit, you’ll need to purchase a copy from one or more credit bureaus.

The Bottom Line

Personal and business credit are pretty much the same, with the only difference being that personal credit is linked to a person’s SSN, whereas business credit is linked to a business entity’s EIN. Keep in mind that some lenders may look at both types of credit when you apply for a business loan. Therefore, you should actively monitor, as well as improve, your personal credit and business credit.

Have anything else that you’d like to add? Let us know in the comments section below!

One of the biggest challenges entrepreneurs face when starting a small business is paying taxes. When you run your own business — as opposed to working for an employer — you’ll be responsible for calculating and paying your own taxes. While there’s no way to avoid taxes, there are ways to lower the financial burden of Uncle Sam.

#1) Incorporate Your Small Business

There are several different ways you can structure your small business, including the use of a sole proprietorship, limited liability company (LLC) or a corporation. Of those options, a corporation typically offers the greatest tax-savings benefits.

#2) Start a 401(k) Retirement Plan

Another way to save money on small business taxes is to start a 401(k) retirement plan. When running your own business, you won’t receive the same “match” that you would with a retirement plan offered by an employer. Nonetheless, you can still start an individual 401(k) retirement plan to lower your overall tax burden.

#3) Claim the Home Office Deduction

If you regularly work from home, don’t forget to claim the home office tax deduction when filing your taxes. You can learn more about the home office deduction by visiting the IRS’s website. Basically, though, you use either the simplified or regular method, the former of which is easiest. With the simplified method, you’ll receive a deduction of $5 per square foot of business space in your home, with a maximum deduction of 300 square feet.

#4) Purchase Goods and Services With a Credit or Debit Card

What’s wrong with using cash to purchase goods and services for your small business? Well, if you pay with cash, you won’t have a digital trail of your expenses. Instead, you’ll have to keep track of paper receipts, which are bound to get lost at some point or another.

#5) Consider Tossing Old Equipment

When a piece of equipment has reached the end of its usable life, consider tossing it in the trash instead of selling it. If you sell old equipment, you’ll incur a capital loss. If you toss it, on the other hand, you’ll incur an ordinary loss, which you can deduct from your taxes.

#6) Use Quickbooks for Accounting

The right accounting software can help you save money on your taxes. By using Quickbooks, you’ll have the tools and resources needed to maximize your tax deductions. Available in both cloud-based and on-premise versions, Quickbooks is the leading accounting software used by small businesses.

Have any other tax tips that you’d like to share? Let us know in the comments section below!

With the holiday shopping season right around the corner, you should use this opportunity to prepare your small business. Although there are exceptions, most small businesses — particularly those that operate in a business-to-consumer (B2C) industry like retail — generate more sales during the months of November and December as opposed to other times of the year. By planning ahead, you can maximize your small business’s sales during the holidays.

Stock Up on Inventory

As a small business owner, you probably know the importance of keeping products in stock. If you run out of a product, you may have to turn away shoppers in search of that product. During the holidays, out-of-stock products can cost your small business big bucks. Therefore, it’s a good idea to order a surplus of products in anticipation of the increased holiday sales.

Hire Additional Employees

Of course, you may need to hire additional employees during the holidays. While some small business owners are reluctant to hire employees, there’s only so much work you can do yourself. And with the holidays being the busiest time of year for most small businesses, hiring additional employees can prove to be a smart investment. Just remember to choose highly motivated employees who are willing to put forth the necessary effort to help your small business succeed.

Offer Discounts

Consider offering discounts that are only available during the holidays. Prior to visiting your small business during the holidays, prospective customers may search for coupons or promo codes online. If they don’t find any discounts when scouring the internet, they may take their money elsewhere, such as a competitor’s small business.

Change Your Hours

Finally, evaluate your small business’s hours of operation to determine whether they need changing. If your small business typically closes at 6:00 p.m., for example, you may want to extend its hours of operation to 7:00 p.m. or 8:00 p.m. during the holidays. By extending your small business’s hours of operation, you’ll attract more customers during this critically important time of year.

Decorate

The Small Business Administration (SBA) recommends that business owners decorate their establishment during the holidays. Adding just a few seasonally relevant decorations will make your small business stand out. At the same time, it will encourage more shoppers to visit your small business, resulting in higher sales revenue during the holidays.

Have any other tips that you’d like to share with our readers? Let us know in the comments section below!

Statistics show over half of all small businesses will fail within their first five years. To prevent this from happening to your small business, you need a strong marketing strategy. By following these six marketing tips, you can bolster your small business’s presence to achieve greater success.

#1) Create Social Media Profiles

Even if you have a personal profile on all the leading social media networks, you should still create profiles under your small business’s name. Prospective customers will often search for small businesses on Facebook, Twitter and other social media networks. By maintaining active social media profiles, these users will be able to find your small business more easily.

#2) Sponsor Local Activities and Events

Don’t underestimate the value of local sponsorships. By sponsoring activities and events in your city, you’ll reach more prospective customers, some of whom may choose your small business the next time they need a product or service you sell. Sponsorships typically aren’t free, but they are well worth the investment when marketing a small business.

#3) Hand Out Business Cards

Even in today’s digitally connected landscape, business cards are still a useful marketing tool for small businesses. When you encounter a prospective customer, you can provide him or her with a business card. Considering that business cards typically cost just pennies to produce, it’s a small price to pay to spread the word about your small business.

#4) Launch a Website

Of course, you can use a website to market and promote your small business. Not all prospective customers will use social media to search for your business. Some may use a search engine like Google or Bing. Assuming your small business has a website, these prospective customers can find your small business more easily.

#5) Create an Email Newsletter

Email has become of the most commonly used communication channels in the world. As a result, it shouldn’t come as a surprise to learn that an email newsletter can improve your small business’s marketing strategy. With an email newsletter, you can collect the email addresses of prospective customers. Once collected, you can then send them emails containing advertisements for your small business’s products or services.

#6) Network

Finally, networking offers a simple yet effective way to market your small business. Regardless of where your small business operates, there are probably networking events available. During these events, you can meet other business owners, as well as prospective customers, to further grow your small business.

Have any other small business marketing tips that you’d like to share? Let us know in the comments section below!

There’s an old saying that it takes money to make money. As a business owner, you’re probably well aware of the truth within this adage. You must spend money to purchase inventory and services in order to sell your business’s own products and services. While you can always finance your business using a traditional bank loan, however, you should consider equity financing for the five following reasons.

#1) You Don’t Have to Repay It

Bank loans are a form of a debt financing, meaning you’ll have to repay them — usually with added interest. With equity financing, on the other hand, you keep the acquired money. Equity financing simply involves selling ownership stake in your business. As a result, you aren’t required to repay it. Whether you obtain $10,000 or $1 million through equity financing, it’s yours to keep.

#2) No Credit, No Problem

When initially starting your business, you may struggle to obtain debt financing because your business has little or no credit. The good news is equity financing is a viable alternative. Equity investment companies don’t look at your business’s credit. Rather, they focus on your business’s current and future prospective revenue. As long as your business is poised for a successful future, you should be able to obtain equity financing.

#3) Fast Cash

Equity financing is typically faster to obtain than debt financing. Banks can take months to approve an application for a loan. Even then, a bank may encounter problems that pushes back its approval date. Equity investors, however, are eager to finance the right businesses. As a result, you can obtain equity financing in as a little as a few days.

#4) Expert Help

You might be surprised to learn that equity financing can bring expert help to your business. Equity investors want the businesses in which they invest to succeed. If an investor purchases some of your business’s shares — defined as equity financing — he or she will benefit from your business’s future success.

#5) Simple and Easy

Finally, equity financing is simple and easy to obtain. To get the ball rolling, you’ll need to contact an equity investment firm to inquire about financing. The firm will likely review your business plan, as well as other documents, followed by providing you with a quote for partial ownership. Although it sounds like a complex process, equity financing is simple and easy.

What are your thoughts on equity financing? Let us know in the comments section below!