Small business startup grants

THE STARTUP PHASE OF YOUR BUSINESS can feel frenzied and overwhelming as you set up your operations and market like crazy to get clients. And once you get that roster of clientele, your sole focus becomes providing them the best products and services. Of course, before long you'll have to find the right balance between serving your old clients and marketing to new ones.

"It doesn't have to be anything complex--just write down exactly who you're targeting and what you're offering," says business consultant Kimberly Stevens of Ask the Biz Coach in Crofton, Maryland. "[It's about] figuring out the solution to the problem that the market has vs. trying to be everything to everybody."

Stevens notes that while it's tempting to relegate marketing duties to the back burner when you have new clients clamoring for attention, you must still work them in somewhere. Plot out in advance the marketing steps you intend to take, and schedule them in bite-size morsels, such as setting aside two or three hours to make cold calls, attend a networking event or write a sales letter. Give these marketing appointments the same priority you would a client meeting--you wouldn't put something that important off or fail to reschedule it if something came up, she says.

It also helps to take a closer look at how much time you'll need to do your client work. Stevens says entrepreneurs often have trouble balancing their old clients and new contacts because they set unrealistic timelines. Keep in mind you'll be doing both marketing and back-office duties, so create your deadlines accordingly, she says.

Entrepreneurs who are really pressed for time should pursue two-for-one marketing ideas, which serve existing clients while helping you find new ones. "For every industry, there are centers of influence--people who already have a relationship with your target audience," says Stevens. "Target people who can [do] double duty as a center of influence."

For example, a Web designer who targets other small-business owners as customers could market his services to a small-business accountant. The accountant's Web site and verbal recommendation could then help the entrepreneur garner new clientele from the accountant's roster.

Entrepreneur David Ruttenberg, founder of PM Studios, a music industry educational service in Boca Raton, Florida, is quite familiar with double-duty marketing. He's built his business by offering clear incentives to existing customers who bring in new clients. A former media exec, Ruttenberg, 40, knows the importance of word-of-mouth and says he has never taken out an ad--and never will. "I actually [give incentives] and pay my current customers to act as pied pipers."

He even asks his clients exactly what they'd like for incentives--and then grants their wishes, which vary from discounts on services to gift certificates for spa getaways. "It works like a charm," he says. "It was slow at first, but after a while, if you treat them correctly, they will spread the word." His business, which he started in 2002, has seen quick growth because of this strategy, and today, he expects to gross 2004 sales in the six figures.

Whatever marketing methods you choose, remember that balance is the key. Don't let feast or famine become your routine--strive for balance now, and you'll keep old clients happy while gaining a steady stream of new ones.

Tech Tools

THE WINNER OF OUR TECH MAKEOVER FROM INTERLAND, SPRINT AND IBM LEARNS HOW UPGRADING CAN PAYOFF.

WHEN YOU UPGRADE THE TECHNOLOGY in your business, you usually do it one piece of equipment at a time--a desktop here, a cell phone there. For Deborah Nail's company, it's a major makeover all at once. Not only are her Web site and commerce systems undergoing a dramatic and complete change, but there are new laptops and cell phones in the mix as well. "Initially, it's very fun, but then you really have to take the time to implement it," says Nail, 40. "But it's worthwhile."

As a handbag manufacturer and seller, fashion trade shows are very important to Nail's Atlanta business, Pursesnickety! (www.pursesnickety. com). The IBM ThinkPad R40 laptops (below) are a big step up for Nail. She's most excited at the prospect of using them at trade shows. "If it's a credit card, we don't charge it 24 hours later, we charge it right away. The same goes for being able to check e-mail during the day," Nail explains. The technology is helping her become a business that works in real time. In the fast-moving fashion industry, that's a big plus.

The Palm OS Sprint Treo 600 smart-phones on page 86 are also helping to cement Nail's new status as a mobile warrior. As many entrepreneurs discover, they can't live and work without the technology once they've tried it. "They've got better coverage than any other cell phone I've ever used," says Nail. She is taking full advantage of the PC-like aspects of the phone, and uses the on-the-go Internet access capabilities for research and e-mail. With so many responsibilities in her business, she can't afford to be out of touch when she's off at a show. If an order comes In via e-mail, she's able to act on it right away and get the ball rolling back at the office--no where she is.

As Nail is quickly discovering, upgrading or adding new technology with advanced capabilities can pay off in dividends. In a growing business, entrepreneurs must wear many hats (or, in this case, purses), and the right hardware can make it all flow better. Follow along next month as we check in for the big launch of the new Pursesnickety! Web site.

--Amanda C. Kooser

It'll Cost Ya

GET REAL WHEN IT COMES TO ACCURATELY PROJECTING YOUR BUSINESS' STARTUP COSTS.

DO YOU KNOW HOW MUCH IT WILL cost to get your business off the ground? The SBA recently asked a group of entrepreneurs in the process of starting businesses exactly how much they expected to spend on startup. Solo entrepreneurs projected costs at $6,000 (the median), while team ventures projected $20,000.

Are those realistic estimates? It depends on your business, say the experts. To get the most realistic estimates of startup costs, start with a detailed business plan, says Tom Perkins, business coach, motivational speaker and founder of the Virtual Business Manager in Portsmouth, New Hampshire. Categorize absolutely everything that will cost you money, from build-out costs and equipment leases to rent and utilities for office space. "A lot of times, people don't actually get a fair overview of what's really involved in the [startup] expenses," says Perkins.

If you're not sure exactly what you'll be spending money on, be sure to make that part of your due diligence. When you research other businesses in your industry and area, try to uncover any general expenses that you might not have thought of, says Perkins. Seek the advice of an accountant or a lawyer, ideally one who has experience with small businesses, he says, and get information from your local SBA and Small Business Development Centers.

During your startup phase especially, you need at least six months of working capital on hand, suggests Perkins. Set measurable goals for how much money you plan to bring in, and be prepared to make changes to your expenses based on that. Bottom line--plan for things to cost more than you think, and you won't be floored when those bills start crossing your desk.

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Kimberly Stevens of Ask the Biz Coach in Crofton, Maryland, has seen entrepreneurs make some big snafus while striving to balance old clients with new contacts. Let this be your guide to what not to do:

* Don't approach your marketing plan haphazardly. You can't wait for new clients to come to you, even if you're doing great with the old ones. Schedule times to do specific marketing tasks. "If you push away marketing," says Stevens, "you're not going to grow in your business."

* Don't forget to track your marketing results. Since your time is at a premium, it's foolish to continue to market in ways that aren't effective. Track exactly how many clients come in from each marketing tactic, and use only the ways that are most efficient.

For each tactic you try, "Ask yourself: How much time did you invest in it, and how much did you get out of it?" suggests Stevens. "How much money did you invest, and how much did you generate from it?"

* Don't be afraid to ask for help. "A lot of people don't know what they're doing when it comes to marketing, so they avoid it," says Stevens. Admit you need guidance in this area, and proactively seek help--be it from books, classes or advisors. Realize it's a critical aspect of your business--akin to sales-so commit yourself to it. It will pay off.--N.LT.

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