BOOTSTRAPPER'S SUCCESS SECRETS [011-4.8]

By: Kimberly Stansell

Synopsis:

This book is a comprehensive guide to help those who want to start
their own businesses on a shoestring.  Packed with valuable advice,
contacts and information resourses, this book is a must for the budding
entrepreneuer.

ISBN 1-56414-277-9

Copyright C 1997 by Kimberly Stansell All rights reserved under the
Pan-American and International Copyright Conventions.  This book may not
be reproduced, in whole or in part, in any form or by any means
electronic or mechanical, including photocopying, recording, or by any
information storage and retrieval system now known or hereafter
invented, without written permission from the publisher, The Career
Press.

Cover design by The Hub Graphics Corp.

Printed in the U.S.A. by Book-mart Press.

To my mother, Eunice Henderson, who wrote this book with me in spirit
Library of Congress Cataloging-in-Publication Data Stansell, ICimberly.

Bootstrapper's success secrets: 151 tactics for building your business
on a shoestring budget / by Kimberly Stansell.

p. cm.

Includes index.

ISBN 1-56414-277-9
1. Small business--Finance.  2. Small business--Management.

3. Success in business.  1. Title.

HG4027.7.S72 1997
658.15'92--dc2l 96-39973
CIP

Acknowledgments A heartfelt thank you to the following:

My brother, David Jay Henderson, my hero and biggest cheerleader.

My childhood friend, Janus Jones Williams, a tireless listener and
confidant.  Here's to coming a long way from Smedley Junior High.

Fellow authors, joumahsts, writers and self-publishers who've traded
industry secrets with me through the years.

The reference staff at the Loyola Village, Westchester, Marina del Raey
and Culver City libraries who've mentored me in the ways of research
and granted me so many favors.

Hewlett-Packard and Gale Research for providing me with special tools
that made writing this book easier.

All those who subscribed to my newsletter, Bootstrappin'Entrepreneur,
without which there would not be this book.

All those who generously participated in my various surveys and have
shared their strategies for inclusion in this book.

The Career Press publishing family for embracing this idea and giving
me leeway to write the book I had envisioned.

And most of all, the Lord, for being true to I-Es word and granting me
the desires of my heart.

Contents

Introduction: What's Your Bootstrappin'IQ?  9 Chapter 1: The
Bootstrapper's Mind-set 13
Bootstrapper's Follow-up File 25 Chapter 2: Evaluating Your Idea 27
Bootstrapper's Follow-up File 40 Chapter 3: Setting Up Shop 45
Bootstrapper's Follow-up File 66 Chapter 4: Financing Your Idea 71
Bootstrapper's Follow-up File 84 Chapter 5: Marketing Your Business 89
Bootstrapper's Follow-up File 121 Chapter 6: Customer Service and
Client Relations 127
Bootstrapper's Follow-up File 157 Chapter 7: Managing Your Business 161
Bootstrapper's Follow-up File 183 Chapter 8: Working with Others 189
Bootstrapper's Follow-up File 201 Chapter 9: Coping with Adversity
205Bootstrapper's Follow-up File Chapter 10: Managing Your Growth and
221
Development Bootstrapper's Follow-up File 233 Directory of State
Resources for Small 235
Businesses Bootstrapper's Survey 247 About the Author 249 Index 251
Introduction

What's Your Bootstrapping

"Bootstrapper' is a universal term.  If you asked a room full of small
business owners and self-employed professionals how many bootstrapped
their ventures, the majority of the group would raise their hands.

Their stories would run the gamut, though.  An electrical engineer
launched a telecommunications firm using $4,000 coupled with $25,000
from a private investor; it normally takes $10 million to start this
type of business.  A strategist was able to use unemployment benefits
as a self-employment stipend and begin helping companies nationwide
reduce their workers' compensation costs.  I took $328.21 from my
corporate paycheck to create a line of costume jewelry-a business that
grew on cash flow and led to other ventures.

Start-up capital isn't the factor that bonds bootstrappers together.

It's intelligence.  Webster's defines intelligence as the ability to
learn from, understand or deal with new or trying situations.  Having a
bootstrapper's IQ means having the ability to use your mind to move
beyond limitations.  You become skilled at maneuvering through the
challenges of your situation.  Tenacity, perseverance and enthusiasm
undergird your efforts.  Ingenuity becomes your ultimate cash
substitute, freeing the mind to rely more on your creative genius than
a checkbook balance.

.

All bootstrappers do not start off so astute in their thinking.  They
do, however, begin with a willingness to take a risk on themselves.

This self-understanding helps them analyze their ability to cope with a
bootstrappees e)dstence.  It's a life of ups and downs.  Some days you
may feel like you're beating your head against a wall.  The rewards do
come, but only to those who are steadfast in their journey.  If you
make a commitment to work with what you have and learn what you don't
know, then you, too, possess a bootstrapper's IQ.

How to use this guide Bootstrapper's Success Secrets pierces the heart
of the problem: How can I make my business idea work with little or no
mone3r.9 This insider's guide of proven survival tactics has the
answers to help you build your business on a shoestring budget.  These
real-life strategies are gleaned from my experiences of bootstrapping
two ventures (a jewelry business and a corporate research, writing and
consulting firm), from publishing the national quarterly
Bootstrappin'Entrepreneur: The Newsletter for Individuals with Great
Ideas and a Little Bit of Cash for four years and from networking with
and interviewing hundreds of bootstrapping veterans across the country.

The quick-reading format allows you to absorb the guide all at once or
selectively by chapter and use it as a handy reference guide.

Bootstrapper's Success Secrets can help novices or wannabes reach their
learning curves faster.  Those more experienced can use it as a
refresher course and stiimulus for new ideas.  The collection of 151
tactics is complemented with sidebar articles filled with ideas and
case studies of bootstrappers in the trenches.  You're bound to find
something that'll help you build a more profitable business.

At, the end of each chapter is a resource list called the
"Bootstrappeils Follow-up File."  Once you've finished a chapter, you
can scout out the resources available to support you in implementing a
strategy.  These resources are complete with addresses, phone numbers,
fax numbers and e-mail or Web page addresses, depending on each
contact's preference.  I've also loaded the guide with plenty of free
resources (with the word "free" always indicated in bold so you can
locate them right away) to help you save your cash for the other
low-cost resources I've included.  I need one favor, though-please be
Introduction sure to let all contacts know that you found them in this
book, as many of these freebies are special offers to my readers.

If you like the book, and I'm sure you will, please tell others about
it.  I also invite you to e-mail me (Ibootstrapaol.com) or write me
(Suite B261-BSS, 8726 S. Sepulveda Blvd Los Angeles, CA 90045) with
your feedback.

There are no shortcuts to success in business.  But there are
definitely faster ways of getting there.  Those ways, my friend, are
now in your han&!
-Kimberly Stansell, Los Angeles, Calif.

Chapter 1 The Bootstrapper's Mind Set

"I've done so much, with so little, for so long, I can almost do
anything with nothing."
-John Bryant, founder, Operation Hope, Los Angeles, Calif Survival Tip
# 1: Purge any vestiges of the corporate mind-set.

"Dejobbed" and dissatisfied workers both leave their former workplace
with more than a severance package and personal belongings.

The workplace culture reinforces philosophies that shape a person's
attitude and behavior.  When you become self-employed, you're changing
cultures and therefore must think and act in alignment with your new
environment.  A corporate mind-set in a bootstrappees environment can
lead to failure; the two are incompatible.  Here's why.

In an employer setting a person usually has work tools in abundance.

For example, in every position I held there was top-flight computer
equipment, the latest software releases, a well-stocked supply I room
and a receptionist to man the phone.  This land-of-plenty environment
helps foster the attitude: "I need a lot of stuff to do the job."

As a bootstrapper, what you really need is redefined.  Subletting an
8-by-10-foot space, haggling over prices at a computer show and
outfitting an office with refurbished wares can work as the backdrop to
a big contract, too.

Second, the workplace reinforces what you 'can't do."  People are
denied opportunities merely because of office dynamics.  If you fail at
politicking, you may be left without a clear sense of your talents.  A
44 can't do" attitude is akin to bootstrappe:es paralysis.  You must be
open to experimenting and finding out what you "can do" to make your
venture successful.  Third, the workplace doesn't encourage you to say
"no" (you could end up getting fired).  Successful bootstrappers
confidently say "no" to unprofitable projects, difficult clients,
unwise counsel or anything that's not moving their business in the
right direction (see Survival Tip #104).

The workplace does expose people to learning opportunities not
available everywhere.  Take inventory of what you learned from an
employer's marketing strategies, industry, success or failure, customer
feedback, contacts and experiences with equipment or fumi tuFe.

This type of information can help you build a better business, whereas
other unsuitable corporate influences will only work against you (see
"Corporate mind-set seeping into your business," page 16).

Survival Tip #2: Say good-bye to your spendthrift days.

In my "Six Ways to Stretch a Afini-Budget" workshop, I ask the audience
to make- "footloose confessionsto reveal their spendthrift habits that
were costly to farmer employers.  Footloose confessions include
everything from ordering large quantities of office supplies for
personal use (read: stealing), encouraging their friends-and-family
circle to call on the company's toll-free line, excessively using
directory assistance at 25 to 75 cents per call and sending everything
via ex press mail.  Besides being an effective icebreaker, this process
helps people zero in on key areas where they may be losing money in
their own businesses.

.

The Bootstrapper's Mind-set Most employee positions are insulated from
cash flow issues.

When the purchasing department okays your request, it's approving more
than your order.  It's validating your behavior, approach and thought
process-or lack thereof-about how you spend money.  So workers who
order whatever they want are just as okay as a manager who spends
everything in a budget.  Bad habits begin to germinate because
employees are not conditioned to think about how much their actions are
costing the company.  But what was okay back then may not work in your
own business.

Many of us carry these spendthrift habits into our own venturesnot
recognizing them until the expenses begin to pick our pockets.

Managing on a shoestring budget requires that you be able to
distinguish between your needs, wants and absolutes (see Survival Tip
#25).  Remember, you're spending your own money.  If you spend money
when it's not okay, you'll be out of business fast.  So spare yourself
the consequences and make your confessions today!

Survival Tip #3: Let go of resentment.

You may have some unresolved feelings about separating from the
workplace environment.  When I left the corporate environment, I
resigned from a position that wasn't in jeopardy of being eliminated.

In fact, discussions about a promotion were underway.  But I had a
secret: A part-time jewelry business was stimulating me in a way that
my day job was not.  I chose to leave the company to pursue other
interests.  But because I didn't plot my exodus very well, I
experienced some hardships.  When I would talk to my mother about
quitting, she would remind me that I chose this working lifestyle.  Her
comments were my reality check: I'm here because of my choices.  The
commitment to make my venture work was renewed.

A colleague had a different response.  Her spouse was downsized, and
she started a business out of necessity.  During a rocky time, she
said, "I resent struggling so hard to make this work.  I wouldn't be
doing this if my husband ha(Wt lost his job."  Although the business
did become successful, her resentment helped create a love-hate
relationship with the venture, affecting her ess to make sacrifices at
times.

Many people who start businesses out of necessity do find fulfillment
in the bootstrapping journey.  However, a resentful attitude can .

rob you of your chance to reach that point.  I'll feelings can affect
your ability to remain committed during tough times.  My colleague
could have turned her attitude around by changing how she viewed the
struggle: "If I continue to work at making this business successful, my
family will not be so economically vulnerable."  Resentment can also
cause you to make half-hearted choices.  An adjustment in your thinking
will free you to make the sacrifices necessary to keep moving forward.

CORPORATE MIND-SET SEEPING

INTO YOUR BUSINESS Psychologists Maynard Brusman, Ed.D of Working
Resources in San Francisco (workingresaol.com) and Jessica G.

Schairer, Ph.D of Self Employment Solutions in Los Angeles
(Jgschaireol.com) both counsel people who are going through career
transition.  They share some common areas where former employees have
difficulty shifting into a self employment lifestyle:

Creating your own structure.  One of the biggest adjustments for people
is having to provide their own structure.  In the workplace there's al
ways someone above you structuring your day, whether it be through
supervisory directives or a job description.  When you become
self-employed, you set the priorities and create structure for
yourself.  You must also be come skilled at juggling the multiple
demands of a business.  Bootstrappers' credo: 'Whatever the work is
that needs to be done, I do it."

Believing no matter what you do or the reswts you produce, you'll still
get paid.  People who are unmotivated, inefficient and occasionally
contribute something of value remain on payrolls across the country
everyday.  Self-employment rewards are based on the ones you produce
yourself Your income is a direct result of your efforts.  You must
commit to working diligently every day-your livelihood depends on it.

Understanding personal responsibility belongs to you.  For years the
American work force was lulled by thinking that Mr. Blue Chip employer
would take care of them forever.  Employers' paternal relationships
with workers are gone.  We're all afflicted by society's shifting-. 
from entitlement to earning, from blame and excuses to personal
accountability, from people having rights to people being responsible
for themselves.  Only those who work at creating their own tomorrow
will survive.

Bcing what you need to do with doing the job.  Unless they were in
sales, many people are used to just doing the job and having some one
else sell the product.  Many bootstrappers enjoy doing the work more
than selling and marketing themselves.  Failing to market your business
will have a wearing affect on cash flow.  When business is rolling,
you'll be busy making money.  When you're not busy, you'll be stalled
with nothing on the way.  It's a challenge to embrace doing things that
you don't like, but it's a necessary part of your survival.

The Bootstrapper's Mind-set Survival Tip #4: Adopt a successful "money
personality."

The Public Agenda Foundation study Promises to Keep: How Leaders and
the Public Respond to Savings and Retirement identifies four underlying
personality traits: planners, strugglers, deniers and impulsives.

Although the Foundation's focus was to analyze people's personality
traits in relation to how they view saving for retirement, some
inferences can be drawn about your survival as a bootstrapper Planners
are in control of their financial affairs.  This group is more likely
to know where their monthly budget is spent and make spending
adjustments to save more for retirement.  Planner bootstrappers should
fare well in managing business expenses and identifying unnecessary
"extras" in their operations.  This group makes less conservative
investments and may experiment more with businessbuilding strategies.

A word of caution: Planners tend to lean toward riskier investments and
have to be careful not to get blinded by a strategy's profit potential.

You can better survive any miscalculated payoffs by balancing your
plans with some reliable approaches (see Survival Tip #72).

Strugglers are beset by financial difficulties and uncertainty.

Their view: "Every time I get my affairs in order, unpredictable
expenses set them back."  Struggler bootstrappers may stick with their
ventures longer than other groups because they're comfortable with
being uncomfortable.  They make financial decisions based on what they
have on hand and have modest expectations about their retirement.

Strugglers may find themselves running marginally successful businesses
that could be turned around with a goal-setting program to create
growth (see Survival Tips #142 and #143).

Deniers have a hands-off approach to savings.  They refuse to give up
life's extras to save for retirement and believe evehing will take care
of itself Running a business requires a lot of give-and-take.

The problems or needs of an operation don't magically take care of
themselves-rather, the business itself disappears.

Impulsives are driven to seek immediate gratification.  This group
admits they waste too much money buying things they do not really need,
and the more they make, the more they spend.  Impulsive bootstrappers
create museum offices, which may be fun to browse while you're
listening to all their marketing-campaign-gone-bad stories.

Their impulse'spending may prevent them from making strategic
investments that will build their enterprises.

You may identify with one trait or fall somewhere in the middle.

It's important to begin thinking about how you spend money and why.

Begin breaking away from patterns that can ruin your business.

The sooner you do, the sooner your venture can realize its potential
(see Survival Tip # 113).

Survival Tip #S: Lace up your boots with determination.

Many attributes contribute to a bootstrappees success, but
determination is the spark plug.  You've decided definitely and firmly
to pursue your dream or goal.  Determination gives you the will to
succeed, while other qualities support your desire to make it happen.

Stories from Women of Enterprise Award honorees illustrate
determination at work in people's lives.  The annual awards program,
sponsored by Avon Products, Inc and the U.S. Small Business
Administration, salutes five women entrepreneurs who've overcome
hardships to achieve success.  What's interesting is that many of the
women's determination was rooted in rising above their environment or
circumstances, and running a business was a vehicle for doing so.

Marge Gershen Abrams, a 1992 honoree, is a good example.  She grew up
in poverty as a sharecropper's daughter.  She later married a
serviceman, and they had three children.  When her husband, who sold
janitorial supplies, died of a heart attack, Abrams was forced to
become the breadwinner.  She knew all his customers and asked his boss
for her husband's job.  She was rejected on the premise that "a woman
can't sell."-Fearful that she'd lose her children, Abrams offered to
clean the buildings of her husband's customers.  This cleaning lady is
founder of Associated Building Services Company, a Houston cleaning
service that grossed more than $40 million in sales in 1995.  Abrams's
response to her success: 'Tm not special.  I'm just determined."

Survival Tip #6: The journey can be rocky, so I<now your personal and
professional limits.

Are you willing to walk around the worldr just halfway-to become
successful?  The road to building a business can take its toll on The
Bootstrapper's Mind-set your life.  Establishing some commandments for
living and running a business may prevent you from losing more than is
necessary.

Business is a family issue.  Parameter-setting with your loved ones is
a good place to start.  You can secure family support by helping them
understand what you're doing and how they'll be affected.  Family chat
sessions should focus on what's motivated you to start a business and
the effort level you'll need to sustain-working long hours, missing
some family activities or traveling a lot.  You should also be clear
about how much jeopardy you can put them in.  Taking a second mortgage
on your house or a loan against the retirement fund may be off-limits,
but postponing your Caribbean vacations may be doable.

(Single entrepreneurs should adopt similar guidelines for their lives,
too.) Your family's perspective of what you're doing can become clearer
when they see how it benefits them.  Barbie Dallman, for instance,
gives her spouse a monthly check for 5 percent of the profits.  She
doesn't have to do this; it's just her way of saying thank you for his
unwavenng support.

Business is also a personal issue.  When business becomes impersonal,
you're more susceptible to compromising your values and integrity.  You
should define some limits about the type of work, customers and
behavior that you're willing to accept.  People who earn money in an
unhealthy way either lose it or don't enjoy it.  Also, make a pact to
guard your health.  Entrepreneurs are notorious for being too busy
taking care of business to take care of themselves.  While you're
building up your business, your body may become too ragged to enjoy its
fruits.

Survival Tip #7: Understand that "more time" is a myth and "different
time" will be your reality.

Here's a joke: Owning a business is great because you only have to work
half the time, and you decide which 12 hours they are.  The truth is,
bootstrappers work harder and longer hours than in most day jobs.

Small-office professionals usually have a home office, which allows
them to work from both places.  Home-office folks live a few feet away
from their headquarters and have the option of working at any time.

Self-employment does give you a chance to have more control over your
tixne, but you have to work at it.

.

You can set your own hours but the schedule needs to be compatible with
your industry.  Salon 21 owner Nhchelle Bell works a fourday week.  Her
Los Angeles salon caters to professional and entrepreneurial women who
keep her door revolving from 7 a.m. to 7 p.m. Bell uses her off-days to
be involved with community activities, attend networking functions and
recuperate from her work schedule.

It's difficult to run a business with children underfoot.  Many
business owners maintain day-care arrangements similar to what they had
while in the workplace.  Many parents, like Barbie Dallman, do find
that self-employment makes them more available to their children.

Dallman, who runs Happy Fingers Word Processing & Resume Service from
her Charleston, West Virginia home, is able to be in two places at once
whenever her son is sick.  She's able to meet her parental
responsibilities and still run the office.

In a bootstrappers environment the stress of asking for permission to
take time off is eliminated.  You'll be able to more freely handle
emergencies and personal commitments, and plan time off around your
family's schedule.  You may not end up with more time.  However, you
will find yourself living and working simultaneously.

Survival Tip #8: Think beyond how you used to perform, and creativity
will come to you.

Creativity became award-winning business writer Catherine Wald's
companion once she ditched her corporate position.  As a communications
editor, she wrote straightforward material for internal publications.

Wald's creativity was hampered in three ways: She had an image to
protect; she didn't want to take the risk of offending someone; and her
energy was zapped from trying to anticipate others' reactions.  Working
independently from her Mohegan Lake, New York, office, Wald felt free
to learn new styles of writing.  Her writing services now include
speeches and company biographies for a Fortune 500 clientele who
appreciate the fresh perspective she brings to projects.

She's even had success at writing essays that have appeared in The
Chicago Tribune and Newsday.

You, like Wald, may have had your creativity blocked in the workplace.

Once you're involved with entrepreneurial work, the biggest The
Bootstrapper's Mind-set creativity squelchers can be self-imposed. 
Creativity is about creating, not imitating.  So you should be careful
not to approach your new work as though you're working from an old job
description.  Most bootstrappers begin by wearing the hats of owner,
officer and key personnel.

Shifting gears between positions will surely stimulate a dominant mind
(or drive you crazy).  It's through this process, though, that you're
free to experiment with yourself and unlock what's inside.

The smaller your business, the more creative you'll need to be in
establishing a marketplace presence and finding solutions to your
challenges.  The good news: Every person is creative to some degree.

You can begin the process by taking some risks.  Enrolling in an art
class, telling your own joke at an improv comedy club and spending more
time with creative people can all work as stimuli.  Wald, for instance,
began trying her ideas on clients, and their responsiveness encouraged
her not to hold back anymore.  Begin with a few small steps, and soon
you, too, will be bubbling with ideas.

Survival Tip #9: Prepare for a time of self-discovery-you may end up
reinventing yourself.

My greatest revelation as a bootstrapper is that I discovered my true
self I was employed as a personnel director, and my job was to
interpret labor law.  A person managing the position needed to be
capable, intelligent, diplomatic and knowledgeable, so I thought of
myself in those terms.  While I still possess those qualities, they're
not the first ones Id use to describe myself now.  Like Sherlock
Holmes, I followed the clues to myself.  As I rebounded from setbacks,
I discovered my resourcefulness.  As companies paid for my ideas, I
valued my cleverness and creativeness.  As people subscribed to my
Bootstrappin' Entrepreneur newsletter, I expanded my voice in
others'lives.

Every experience exposes you to a valuable part of yourself You may
discover a hidden virtue.  Your likes may become your dislikes.

Time may mean more to you than money.  Dixie Darr, a knowledge broker
based in Denver, discovered working alone all the time wasn't her
thing.  She now takes on projects that allow her to work on teams.

Darr also realized that handling every aspect of her business isn't
enjoyable.  Darr concentrates on what she does best-research and
writing-and delegates tasks such as bookkeeping and mailings.

Try this selfcovery exercise.  Write down five adjectives that describe
you and how your business can benefit from each one.  Tuck this
information away for a year.  Before you review the list again, write
down the adjectives that describe you now.  Compare the lists and see
how you've changed.  Nurturing your new discoveries may require you to
reinvent the business.  I went from worker to jewelry designer to
publisher to author.  Selfcovery can change the complexion of your
business-what you start off doing may look dramatically different down
the line.

Survival Tip # I 0: Accept that shamelessness is the name of the game.

Figure out what these bootstrappers have in common: A cosmetics
designer convinces a vendor to produce $80,000 worth of product 'based
on an in-hand purchase order, no money down and payment due when the
department store paid.  A consultant asks an industry giant to endorse
his product, thus positioning himself to leverage sales off of the
company's customer base.  Rather than deplete personal resources to
produce a book, a self-publisher solicits $5,000 sponsorship
contribution from companies trying to reach the same target market.

These people were very bold in garnering the support they needed to
build their businesses.

A bootstrapper is only limited by his or her sense of shamelessness.

Bootstrappers are shameless promoters, jugglers of expenses, marketers,
salespeople and recruiters to their cause.  It's important, however,
that you do not confuse this concept with unethical behavior.

Shamelessness is not about indulging in shady practices or building
your business on a foundation of lies.  Instead, it's about putting
your bootstrapped venture out there before the public's scrutinizing
eye.

Sure, you might be rejected, but you're willing to gamble on your
chances for acceptance.

Joel McIntosh, of Prufrock Press, has mastered the art of
shamelessness.  McIntosh's firm sells education materials to teachers.

It's a lucrative market, but he has to manage his payables around
school The Bootstrapper's Mind-set districts' purchasing procedures,
which slow down during certain months.

In his company's startup phase, McIntosh needed printers who would
grant him fleidble credit terms on orders ranging from $10,000 to
$50,000.  McIntosh's shameless approach: He brought in graphs outg
Prufrock's cash flow flux and used them to negotiate 90- and 30-day
terms.  Four printers were won over by his up-front approach and agreed
to work with him under these arrangements.

Prufrock Press now grosses more than $1.3 million annually, and its
relationships with the printers are still intact.

A shameless bootstrapper is open to daring and odd solutions.

You're bold in asking for assistance from those who have what you need.

You're able to sell others on how your unconventional approach can work
out to be a win-win arrangement.  It takes guts and courage.

It takes a person who is anchored in a healthy self-esteem base.

Survival Tip #11: Nurture your self-esteem.

Bill McGrane, founder of McGrane Institute, Inc in Covington, Kentucky,
defines self-esteem as the respect a person feels for him- or p
herself; it's an emotion.  Self-esteem has everything to do with your
success.  It affects your belief that you have what it takes to be an
entrepreneur, your conscientiousness about money, the level of risks
you'll take and how you sell and communicate.  Consumers buy from
businesses they have confidence in.  And your strength as an
entrepreneur lies in your confidence and satisfaction with yourself
Your positive energy will come through to those who do business with
you.

Self-esteem creates a feeling of acceptance so that you can pursue
innovative approaches and be open to your own and others'creativity.

Operating from a self-inwge base-an imitation, mask or facade of your
true self-has the opposite effect.  Protecting your image becomes the
priority, which prompts you to judge the presentation of ideas instead
of their substance.  Therefore, you miss out on opportunities with
potential benefits.

For example, if you were operating from a shaky self-esteem base, you
wouldn't dare ask for supplier financing the way Joel McIntosh did (see
Survival Tip #10).  You would lack the confidence to even ask for those
terms.  You might also be concerned about what others think, and you
would probably discount this option as a form of begging.

Securing the kinds of arrangements you need as a bootstrapper requires
you to sell people on yourself.  If you're a low self-esteemer, you
wouldn't behave in yourself enough to be able to convince someone else
about your potential to deliver.  Familiar with the adage "Treat people
as you like to be treated"?  If you don't feel good about yourself and
treat yourself well, you'll probably be off the mark in the way you
treat your customers, too.

Developing your self-esteem is a worthwhile investment.  Begin by
expanding your awareness.  Educate yourself about what's going on
around you.  If you feel deficient in an area, go find information
that'll help you (see Survival Tip #118).  Reprogram your awareness.

Evaluate the way you think about yourself and others.  Practice
listening to others without judging them.  Commit to daily self-esteem
action; selfesteem is built by doing-putting your thoughts into action.

The more you do, the more energy, passion and excitement you'll create
in your environment.

Survival Tip #12: Take joy in progress.

I.

R,ome wasn't built in a day, and your business won't be, either.  If
you understand that big success is the result of little successes
achieved over time, then you'll begin to appreciate your efforts.  It's
easy to become frustrated with the growth pace of your venture,
especially when you're eyeing someone who appears to be making great
strides.  Every business has its own rhythm.  Some get off to a fast
start while others need constant resuscitation.

Consider keeping a business activity journal, similar to departmental
status reports distributed in many workplaces.  Divide or categorize it
based on marketing activities, cold calling, mailing responses and so
forth.  Log your entries daily, weekly or (at the very least) monthly.

Keeping track of your progress helps you remain focused.

When you get weary, glancing back at your entries will boost your
psyche.  The pages will remind you that the client who just asked for a
project bid never used to return your calls.  Or the customer who used
to frown at your fees now regularly refers people to you.  That's
progress-delight in the fact that you're still in business to see it
happen.

.

The Bootstrapper's Mind-set Writing down a personal definition of
success and using it to gauge your progress will help you keep a
clearer perspective on how you're doing.

Lastly, release the "big-breale' mentality; it only keeps you in a
state of anticipation.  Sometimes we get so preoccupied with what's
coming that we miss the moment we're in.  I learned to view every
opportunity as a stepping stone to another place in the journey.  Once
I made the shift in my thinking, I was able to joyfully work at my
business every day.

Bootstrapper's Follow-up File American Psychological Association, 750
First St. NE, Washington, DC 20002-4242; 202-336-5500.  Provides
referrals to local psychologists who specialize in helping people make
the transition from unemployment to reemployment or self-employment.

Also check the phone directory under your state or county's
psychological association.

Fit Facts, NordicTrack Health and Fitness Department, 800-358-3636.  A
free collection of briefs discussing the benefits of various cres and
how to develop a personal health and fitness plan.

McGrane Institute, Inc P.O. Box 17406, Covington, KY 41017;
800-341-3304; northern Kentucky: 606-341-2216.  Offers resources and
workshops nationwide to help people resolve self-esteem issues that
affect their careers and personal lives.  Publishers of Brighten Your
Day With Self Esteem by Bill McGrane.  $26.90 postage pd.

Money Personality Quiz, Olivia Mellan & Associates, Inc 2607
Connecticut Ave. NW, Washington, DC 20008.  A 20-question test ($8) to
help you identify five money types from the book Money Harmony:
Resolving Money Conflicts in Your Life and Relationships by Olivia
Mellan (Walker & Company, 1994).

Napoleon Hill's Positive Action Plan: 365 Meditations for Making Each
Day a Success by Napoleon Hill (Dutton/Penguin USA, 1995);
800-331-4624.  $22.95.

Promises to Keep: How Leaders and the Public Respond to Savings Chapter
2 and Retirement, Public Agenda Foundation, 6 E. 39th St New York, NY
10016-0112; 212-686-6610.  A 31-page study identig the major barriers
and attitudes Americans have toward saving for retirement.

The Way of The Guerrilla: Achieving Success and Balance as an
Entrepreneur in the 21st Century by Jay Conrad Levinson (Houghton
Evaluating Mifflin Company, 1997); 800-225-3362.  $19.95.

To Build the Life You Want, Create the Work You Love: The Spiritual
Dimension of Entrepreneuring by Marsha Sinetar (St. Your Idea Martin's
Press, 1995); 800-321-9299.  $18.95.

Working Families: Promoting Balance for Today's Working People, The
Economic Press, Inc 800-526-2554.  Monthly newsletter providing tips
and solutions to tame out-of-control schedules and juggle nonstop
responsibilities.  Free sample copies available.

"Capital i&n't so important in business.  Experience isn't so
important.  You can get both of these things.  What is important is
ideas.  If you have ideas, you have the main assets you need, and there
isn't any limit to what you can do with your business or your life.

They are any man's greatest asset-ideas."
-Harvey Firestone, American industrialist Survival Tip #13: Don't let
your ideas follow money-let money follow your ideas.

Money is not a stimulus for good ideas but a magnet for bad ones.

You may come up with a zillion ways to spend it, but they may not be
the best use of your resources.  Just look at people who win the
lottery At a reunion of Texas million-dollar-jackpot winners, the group
shared experiences and talked about the new realities of their
bountiful Eves.  Many of the winners admitted to spending their money
on

.
26 27 some indulgences.  More interesting were the stories of how
financial 44 advisors" and hucksters would continually try to latch
themselves onto the moneybags with suspicious idea solicitations and
question able "investment" opportunities.

It's important for you not to discount an idea because it seems to lack
money behind it.  Here's an example of this principle at work.

When the rights to Patricia Gallagher's book Start Your Own At Home
Child Care Business reverted back to her from the publisher, she
decided to self-publish a reprint.  Gallagher quickly sold 2,000
copies, but she needed $7,500 to print 5,000 more.  Rather than deplete
her own stash, she paused to figure out another way to do the run. 
Gallagher spent two weeks calling industry-related companies and
professional individuals to see if they'd be interested in financially
supporting her idea.  For a $5,000 sponsorship contribution, each
company ad would appear in the book's back section.  Gallagher had the
same target audience as the sponsors: early childhood providers.  The
companies-a manufacturer of early childhood equipment, an indus try
magazine, a first-aid manual publisher and a resource and referral
service-were all willing to let their money follow her good idea.

Surely, there will be times when money is the problem.  However, if you
first concentrate on substantiating your idea's viability, you'll be
clearer on the financing options.  Also, this principle will move you
away from automatically throwing money at a problem without considering
other solutions (see Survival Tip #132).

Survival Tip #14: See yourself as a problem-solver.

People spend money on products and services that solve their problerhs.

Psychologists at Yale University report that the most persuasive words
in the English language are you, money, save, new, results, health,
easy, safety, love, discovery, proven and guarantee.

People's problems are rooted in these words.  They want to save money
and time.  They want to discover how to become smarter, avoid problems
and gain control.  They want easier ways to live, do business and get
more for their efforts.  They want proven health, relationship and
safety strategies.  The list can go on and on.

Evaluating Your Idea If you view yourself as a problem-solver, then
you'll focus on developing an idea that's the solution for a targeted
audience.  Ask yourself what problems are out there that you're
interested in, qualified to address and care about solving.  That's
what Tony Ulwick of Total Quality Group in Delray Beach, Florida, did. 
Problem: Companies who spend millions developing their products need to
be sure they're valuable and profitable.  Solution: Ulwick and his
staff help pinpoint what's important to the consumer as well as what's
cost-effective for the client.  Total Quality Group spearheads a
three-month process of meeting with the product development team to
discuss concepts, gathering data on consumer interests, testing the
price market and finding ways to manufacture a high-quality product at
an economical price.  Ulwick is a qualified problem-solver; he's a
former IBM product development employee and credits much of his success
to what he learned at the corporation (see Survival Tip #1).  At about
$100,000 apiece, Total Quality Group has solved problems on more than
100 projects for clients such as AlhedSignal, IBM and Motorola.

Your ideas should clearly be the solution to an existing audience's
problem.  A problem-solver mentality will help you stay focused on
customers and on meeting their needs and wants.  It'll also give you an
edge in developing your marketing and customer relationships programs
(discussed in Chapters 5 and 6).

Survival Tip # I 5: Use research as a weapon again nst failure.

Fl Services, a research bureau, has a brochure that captures people's
attitudes about information-gathering.  "Research" is printed in
dirt-like coloring on the cover, and the inside reads: "doesn't have to
be a dirty word."  Being in business doesn't require you to be a
researcher par excellence, but it does require you to do some basic
homework.

Research affects every aspect of your business.  From evaluating the
soundness of an idea and developing a customer profile to determining
an appropriate business structure, identifying an immature market and
pinpointing short- and long-term growth strategies, research can save
you from spending money you don't have or don't need to spend.  Your
awareness will be expanded.  You'll be able to

make informed decisions, scrutinize information that comes your way and
determine when you need to call in a professional.  Research will
support your expectations about a business's success as well as uncover
potholes in your thinking.  For example, someone starting a
subscription-supported newsletter reads about an entrepreneur whose
publication had 50,000 subscribers after three months, but then basic
research uncovers data showing that newsletter businesses experience
high turnover-many publishers who begin in January cease operation by
June because of lack of subscription support.

Another research advantage: You'll get more substantive help from
others.  A librarian, industry expert or counselor can work as a
conduit to better information when he or she knows what you want.

Even if you've done a little homework, you've moved from working with
nothing to working with something, and he or she will be able to point
you toward more resources (see "How a local librarian can work as your
staff researcher" on page 39).

Experts cite that most businesses fail because of a lack of information
rather than a lack of money.  People who are willing to do the dirty
work usually don't end up in this category.

HOT SOURCES FOR SMALL BUSINESS RESEARCH

Business Research Centers.  There are numerous sites across the country
that provide low-cost research services to business clients.  These
facilities are often affiliated with an academic library, such as the
Center for Business Rp-search at Long Island University.  Internet-Plus
Directory of Ex press Library Services (American Library Association,
1996; see page 41 for more information) lists numerous sources for
research and document delivery services.  There's even a handful of
free search sources on the Internet, such as the National Museum of Art
(on America Online, go to keyword NMAA and click on the Reference icon)
and the Internet Public library (www.ipl.org).  The National Museum of
Art anwers questions and provides source referrals on American art,
using the Smithsonian Institute and other resources.  IPL answers your
research questions for free.

Local and community newspapers.  Many papers provide expanded coverage
of the local small business community.  Through The Los Angeles Times'
Tuesday edition (which is devoted to small business coverage), I ths
covered that the Technology Conversion Executive Development Program
(310-204-1832) offered technology-based businesses a free, 10-week
class to upgrade skills in management, marketing, financing and
planning and that Something Ventured, a 26-part small business TV
series, was available in 35 Evaluating Your Idea Los Angeles libraries.
 You can find similar community resources in your area by regularly
scanning the business section or calling local papers to find out
whether any special sections or editions are devoted to small
businesses.

The Internet.  It's the network of networks, and once you become
skilled at using it, you can level the playing field between yourself
and elite corporations.  There are many payoffs; you'll find
information on competing globally, access industry profiles and
government information, connect with groups of people to share
information and much more.  The key is learning how to maneuver your
way through the layers of its offerings.  Helpful resource: Cyberpower
for Business by Wally Bock and Jeff Seene (Career Press, 1996);
800-CAREER!  (2010310 in N.J. and outside U.S.); $14.99.

State Data Centers (SDCs)/Business and Indu!rtry Data Centers (BEDCs).

SDCs work with local organizations to make census data avail able for
public use.  BIDCs provide an enormous amount of information about
product and service development using economic data from the Bureau.

You can take advantage of free computer access to databases, soft ware
and other resources needed to develop a business and marketing plan.

Taking Care of Business: A Guide to Census Bureau Data for Small
Businesses provides a nationwide listing of these facilities.  You can
also find location information on the Web (www.sbaoriline.sba.gov) or
by calling 800-U-ASK-S.B.A.

Survival Tip16: Make sure your idea has longevity.

For a quick primp before meetings, D'Lauren Mte relied on a small hand
mirror tucked into an index card file.  After numerous friends remarked
how convenient the mirror was, Mte decided to create MirorDex, an
unbreakable mirror that fits discreetly in a Rolodex.

Mte approached the Rolodex company about piggybacking her invention
onto its product line.  The company flatly passed on her offer, saying
it was too novel.  Perhaps it was right.  While Rolodexes are not
obsolete, people are relying more on electronic information-tracking
devices.  Mte was able to sell thousands through her Apple Valley,
California, mail-order company; however, she wasn't able to generate
the type of sales that a mass distribution opportunity could produce.

She stopped marketing the product two years ago.

Other novel products have fared well in the marketplace.  Remember the
infamous Pet Rock of the 70s?  Unfortunately, a lot of clever ideas do
not experience this type of success.  Before you throw a lot of .I 3 1
money into an idea, be sure it can pass a longevity test.  Ask yourself
such questions as:

 What sparked this idea?  Did it come from something I read or saw
somewhere?

 Does it have global, national, regional or local iinphcations, or is
it only relevant to my everyday life?

 Who is my target audience, and how will societal changes affect this
audience in the future?

 Does the idea solve a short- or long-term problem?

 Does my idea complement the direction society is moving in?  (For
example, our society is becoming more mobile, more reliant on
technology, more culturally diverse, more health-conscious and more
pressed for time.)

Many good ideas wilt after close examination.

Remember: The more unique, odd or innovative your idea, the more you'll
need to spend on educating the marketplace.  It's a shame to spend good
money on an idea that doesn't have a future.

Survival Tip #17: Take a risk on your own idea-it may be better than
buying into someone else's dream.

There s a perception that you're more likely to succeed if you invest
in a franchise or business opportunity package.  Well, these
investments can be just as risky as setting up shop independently.  A
recent Small Business Administration study of 138 franchising chains
that began operations in 1983 found that only a quarter of them were
still operating 10 years later.  The study also showed that large
corporate franchises did tend to fare better than independent
businesses; however, small start-up franchises did not.

Be leery of business opportunity packages that promise you can make a
lot of money for a few hours a week.  Or those that extol: 'We are not
just selling you a business; we put you in business."  Although there
are some legitimate opportunities, the bad ones seem to garner all the
press.  These prepackaged small businesses appear in a variety .

Evaluating Your Idea of forms, including dealerships, distributorships,
consulting, multilevel ing programs MS market' , licenses and direct
sales progra Investing in a formatted business may seem like a good
idea, especially when you have limited capital and business experience.
 A franchise fee buys you an affiliation with an established company,
instant name recognition, training and ongoing support.  Business
opportunity packages come with similar offerings.  Neither option is a
guarantee for success.  Both require investigative legwork to find out
if the opportunity is light for you and if it has the potential to
yield the financial return you expect.

There is a common denominator between a franchise, a business
opportunity package and an independent business startup: the success of
each is fueled by the sweat equity of its owner.

Survival Tip #1 8: Test your idea against the past, present and future.

Determining the value of your idea by examining a variety of
information sources can help ensure its success.  You can cover the
bases mOre thoroughly by squeezing details from conventional as well as
unconventional sources.  Here are some strategies to consider:

Scan through books that chronicle history-American Chronicle: Seven
Decades in American Life 1920-1989, TimeLife's This Fabulous Centur
sees en clopedi Y ri cy a yearbooks and other decade books.  These can
provide you with information about popular culture, fads, history and
major events.  Besides being fun to read, you can find clues about how
certain events-such as war, recession or high unemploymentaffect
people's habits.

Eye-openers to trends include books and periodical articles.  An online
database search using the keyword -trend" will pull up a lot of
citations.  Also consider research reports from organizations and
individuals.  For example, someone developing a product or service for
family-owned businesses could gain market insights from the Aican
Family Business Survey conducted with Family Enterprise Center
(800-924-2770) and other reports.  Reports such as these are usually
referenced in articles and provide some information for you to do
follow-up legwork.  Perusing government documents such as Employee . I.

Benefits in a Changing Economy or Trends in Aging can help you conceive
of trends.  (Subject Bibliography Index is a valuable guide to
thousands of government publications.) Another good source:
conventions.  Brand-new products and groundbreaking research are
showcased at these events.

Don't overlook a set of old and current phone books.  Use them to
discover if there's a category heading for your idea, how much
competition exists and the movement of other businesses-those who've
closed their doors or have grown.  Both groups can work as links to
finding out about industry ins and outs (see Survival Tip #128).  For
example, a business with a tiny ad in 1990 who sports the largest one
in 1996 may now be the community's heavy-hitter.  By talking to such
companies directly or undercover, you can use them as a focus group in
reverse-using their experiences to evaluate your idea's viability.

The books can also help you identify your niche or unserved markets.

If you're looking for ways to distinguish your offerings from the
competition, scan the pages to see what they're not touting as their
specialties.  Old phone books can be found at public libraries.  The
Los Angeles central library, for instance, has a collection dating back
to 1915 in its history department.  You can also adopt this research
strategy to product and industry directories.

Survival Tip #19: Know thy business.

As an insider, you'll definitely have an advantage with a business
that's a spin-off of your background and experience.  Starting a
software development firm is a natural for a former computer
programmer, for example.  This person has a lot of advantages: expert
industry insights and competitive knowledge on how to learn about the
competition, discover what the market can bear, attract customers and
find suppliers and distributors.  This person's overall familiarity
with the market would be helpful in determining a true need for his
product.

What about someone with less impressive credentials who has a good idea
or strong interest in an area?  Once I fancied the idea of owning a
flower shop until my local florist, Stan's Florist, explained the
business to me.  I discovered my love for flowers was not enough;

.

Evaluating Your Idea the business required a knowledge of horticulture
and a flair for flower arranging (my purchases were always
prearranged); and successful shops were always open on the major
holidays.  He offered me, a minimum wage apprenticeship on the weekends
so I could learn the business.

That day I realized my love for flowers no more qualified me to run a
shop than a great cook to run a restaurant or a world-class traveler an
agency.

Every business has its own nuances and protocol that you must be
educated about in order to be successful.  Did you know the floral
industry carries supplier credit much longer than 30 days?  Or that a
yellow pages ad is a must for secretarial and office Support services
firms?  In the Small Business Administration report, How Small
Businesses Learn, respondents cited customers, suppliers and
competitors along with industry and professional newsletters and
magazmes as their frequently used information sources.  Although lack
of industry exposure doesn't automatically disqualify someone, you'll
need to be proactive in qualifying yourself.  Bootstrappers who succeed
are the ones who know the most about what they are doing.

Survival Tip #20: Know the idiosyncrasies of your target market.

So, you've decided to market to maturity-men and women age 50 and
beyond.  Did you know they're more receptive to an ad when you show
them pursuing a new passion, or with romance in their life, or laughing
with their friends?  And that they're more likely to buy if you give
them a trial period, sample or coupon because they consider their
purchases more closely than other groups?  They're also interested in
more information on products, not 15-second sales pitches; the more
information you give them, the better.  This information came courtesy
Of American Association of Retired Persons' Modern Maturity.

But figuring out other groups' preferences may not be so simple.

Every audience has its own set of preferences, which makes it tougher
for you to capture its attention and dollars.

Pinpointing your audience's idiosyncrasies may require reading between
the lines.  Let's say you wanted to reach the small office/home office
group.  Your database search pulled up The Wall Street Journal .

article 'Huge and Diverse Home-Office Market is Hard to Crack."  The
piece explains how major business suppliers were having challenges
marketing to the diverse needs of the home-office market.  You move
forward in your research and contact national industry associations.

The membership numbers surprise you-you thought more people
belonged-and you discover that renewal rates are low.  You could draw
some inferences from this information.  Perhaps this group doesn't part
easily with money.  If big-boy suppliers are having trouble catering to
the group's diverse needs, is your idea aimed at a niche segment of the
market?  And how big is this segment?  The group appears to be elusive.

How will you be able to get through to them?

Every group has idiosyncrasies.  They're the red flags and patterns
that you must prepare to market to, through and around.  Idiosyncrasies
don't go away; the only way to handle them is to figure them out and
face them dead on.

Survival Tip #2 1: Match your personality with the business's
personality.

."

We've all had an encounter with someone and walked away thinking, "She
really shouldn't be in this line of work."  You know who I'm talking
about: the salesperson with the "dry" personality, the customer service
rep who doesn't know how to help you.  As a bootstrapper, you can't
afford for people to perceive you as being in the "wrong line of work,"
or you'll be out of business!  Every product or service has its own
personality; its profitability depends in large measure on how it's
complemented by your personality.

This was the biggest lesson I learned from my jewelry business.  I
test-marketed my wares through a home party system such as Tupperware.

Although the parties were profitable, they demanded that I be a
schmoozer to move my eclectic merchandise.  Sure, people were willing
to spend the money, but they also wanted to be entertained.

They wanted to hear stories about how I ordered the findings from
around the world and the creative thought process that went into each
design.  At times I was more on display than the jewelry, and I didn't
like it.  In fact, someone suggested that I adopt a more "entertaining"
presentation similar to that of a Mary Kay representative.  I .

Evaluating Your Idea had the talent to fabricate the designs; I didn't
have the personality to market in that particular forum and quickly
began looking for other ways to bring the line to market.

You can determine personality matches by talking to others in similar
businesses or industries.  Ask them what type of personality traits or
temperaments they feel have been necessary in their businesses.

Traits-such as giving attention to details, being flexible so you don't
get bent out of shape or working well under pressure or with other
people-are the style you'll need to run the business.  Also, how a
business must be marketed is another indicator.  If your idea will
require heavy involvement with people or groups and the thought of
socializing drains you, think about how you can handle that-if you can
at all.  Don't fool yourself into thinking your good idea Will sell
itself Even if a business has high income potential, it won't produce
the desired results if its ownees personality isn't a fit.

Survival Tip #22: Consider the virtues of patent, trademark and
copyright protection.

I.

Ideas may be your greatest asset.  When you begin to transfer them into
names, inventions, Product designs, logos, music, writings or other
forms, they become intellectual property.  rmere are intellectual
property laws that protect your creative work from being illegally
copied and profited from by others.

There are three types of intellectual property protection: patent,
trademark and copyright.  They serve different purposes and shouldn't
be confused with one another.  A patent is granted to the inventor of a
new or useful idea.  It's a grant of property rights that excludes
others from making, using or selling the same invention, and it expires
after a number of years, depending on the type of invention patented.

A trademark protects the distinguishing identity of goods or services.

A word, name, symbol, phrase or slogan, or a combination of these
items, can be trademarked.  A copyright protects original works of
authorship such as literary, musical, dramatic, pictorial, graphic or
architectural works, motion Pictures and sound recordings.  It protects
the form of expression; it prevents others from lifting from your idea
and reworking it for their use and requires them to obtain your
permission to reproduce any part of it.

By familiarizing yourself with these laws, you'll be able to factor in
their usefulness as you develop your idea.  One bootstrapper shared how
she wasted $400 getting basic copyright information from an attorney.

The Patent and Trademark and Copyright offices of the Library of
Congress will send you information on the process at no charge.  This
overview material will help you determine, for example, if registering
a business name with your state alone is sufficient, or if you need
broader protection and can benefit from the assistance of a
professional.

Survival Tip #23: Use free counseling as a steppingstone to better
information.

A bootstrapper can get free business counseling from a variety of
places.  Popular recommendations that come to mind include: Semce Corps
of Retired Executives (SCORE), Small Business Development Centers
(SBDCs), Small Business Institutes, University Cooperative Extension
Services, Innovation Service and Export Counseling Centers and loreal
Centers for Economic Development and Continuing Education programs.

You'll find that business owners will have varying opinions about how
beneficial these outlets were to their businesses.  My experience,
however, can help you keep all the opinions in their proper
prospective.

After deciding to move away from the home party system for my jewelry
business, I began researching the idea of a mail-order catalog.

I'd done exhaustive research on the subject, but had questions that
only a seasoned professional could answer.  I turned to a local SCORE
office for advice.  Armed with all my research and a list of specific
questions, the counselor saw I wasn't there for a primer on how to
start a business.  It was obvious that I needed specific help on
effectively designing and promoting a jewelry catalog.  Since I was
proactive by being prepared, his response was to connect me to another
information source-the retired head of catalog operation for Sears
Roebuck.  Not only did I receive answers to my questions from a onehour
coaching session, I walked away with marketing advice that has served
me well throughout my entrepreneurial career.

Evaluating Your Idea The information you get nan only be as good as the
person giving it.

Don't expect a counselor to have an the answers or share your
enthusiasm about a project.  Use his or her knowledge as your
connection to more information, people or resources.  You can get past
first base by being prepared (see Survival Tip #15).

HOW A LOCAL LIBRARIAN CAN WORK AS YOUR STAFF RESEARCHER Librarians are
some of the most knowledgeable people on the planet.  I know because
they've mentored me through the years.  Sadly, though, statistics show
that only 3 percent of small business owners ever set foot in a
hbrar-y.  Maybe it's because they don't know how to use one.  But
ignorance isn't an excuse anymore.  Mary Hopf, a reference librarian in
Angeles, has helped hundreds of business owners tap into the system's
information aches and shares some strategies you can use, too.

Avoid being the clueless patroil You make it difficult for others to
help you when you don't have a clue as to what you need.  Think about
the of resources you're interested in finding.  Even if you're just
tinkering with the idea, what sparked your interest?  If it were an
article, bring that with you and request more information that expands
on the topic.  If you're not sure about a business choice, ask for a
book that profiles multiple types of ventures.  Otherwise, you may end
up in an aisle with hundreds of choices.

Hook up with the library's best resources.  Small business is a hot
topic and many libraries have extensive collections dedicated to the
subject.

Collections of books, periodicals, audiotapes, videos and other
materials targeted at small businesses may be available.  Specially
funded sections such as these are popping up across the country in an
effort to promote self sufficiency.  CaR around to find out which local
libraries have special small business sections.  Ask the reference
librarian about the strengths and weaknesses of its branch and the type
of tools available-public computers and printers, CD-ROMS, etc. Get
tutored in information-gathering.  You get more mileage from a
librarian when you ask him or her to 'teach you how to find materia'
rather than ordering him or her to fetch something.  You can learn how
to conduct specialized searches of databases.  If necessary, make an
appointment for a tutoring session.  That's how I learned to use the
Internet search engines more efficiently.  Working with a librarian can
help you begin to think like a researcher, and soon you'll be able to
independently connect yourself to resources.

Query about special services.  Many libraries serve as depositories for
governxnent information and offer Internet access and other electronic
links such as the CARL System, a modem dial-in access to
libraries'electronic card catalogs.  Libraries work in systems.  You
can ac cess their collective riches through interbranching services.

You may also find it helpful to take a library tour, if the library
offers them.

Establish a rapport with the staff.  When the staff knows who you are,
theym pass along information of interest.  And when you're in a pinch,
your familiarity may motivate them to go the mile to help you out. 
Libraries also make purchasing decisions based on the needs or
interests of the community.  In traffic from business owners such as
yourself may en courage your local library to make a greater investment
in resources you can uw.

Bootstrapper's Follow-up File

101 Best Small Businesses for Women by Priscilla Y. Huff (Prima
Publishing, 1997); 800-632-8676.  $14.

A Consumer's Guide to Buying a Franchise, Federal Trade Commission,
Public Reference, Room 130, Washington, DC 20580-0001; Web address:
www.ftc.gov.  A free, 21-page guide that explmm your obligations as a
franchise owner, how to shop for franchise opportunities and how to ask
the right questions before you invest.

American Business Opportunity Institute, Inc #700, 3 Bethesda Metro
Center, Bethesda, MD 20814.  A national information clearinghouse
specializing in business opportunities and franchise investment and
regulation.  For more information, send S.A.S.E.

Business Opportunity Fraud, Business Opportunities, North American
Securities Administrators Association, 1 Massachusetts Ave Suite 310,
Washington, DC 20001.  A free consumer bulletin.

Catalog of Small Business Research, Office of Advocacy, S.B.A, Mail Code
3114,409 Third St. SW, Washington, DC 20416.  A cumulative listing of
the U.S. Small Business Administration's contracted research studies. 
More than 500 titles covering a broad scope of small business topics
and issues.

Center for Business Research, C.W. Post Campus, Long Island University,
Brookvflle, NY 11548; 516-299-2833; fax: 516-299-4170; e-mail address:
chrC&titan.hunet.edu; Web address: www.hunet.edu/
cwislewp/library/chrhome.htm.  Offers fee-based services for business
clients.

.

Eualuating Your Idea Copyright Office, Register of Copyrights, Library
of Congress, -Washington, DC 20559-6000; 202-707-3000; 202-707-9100
(hothne for ordering forms); Web address: lcweb.loc.gov/copyright. 
Free copies of Circular 1, Copyright Basics, and Circular 2,
Publications of the Copyright Office, available from this office.

Ex ort Counseling Center, International p Trade Administration, U.S.
Department of Commerce, 800-872-8723.

Provides a variety of information on exporting products overseas.

Information Solutions, Gale Research, 800-347-4253; Web address:
www.gale.com.  A free catalog listing all of the publisher's library
reference directories.

International Franchise Association, 1350 New York Ave. NW, Suite 900,
Washington, DC 20005; Web address: entrenikt.corn/

if a- Provides information on selecting and investigating a franchise.

Internet-Plus Directory of Express Library Services: Research and
Document DeliveTY for Hire (formerly titled The FISCAL Directory of
Fee-Based Research and Docunwnt Supply Services), FYI Information
Services of the Log Angeles Public Library and Information Researchers,
University of Illinois (American Library Association, 1996);
800-545-2433.  Lists more than 500 libraries nationwide that provide
low-cost research services.

Manufacturing Extension Partnership, Bldg.  301, Room C121, National
Institute of Standards and Technology, Gaithersburg, MD 20899-0001; Web
address: www.mep.rust.gov/centers.  A nationwide network of affiliated
technology extension centers that provides hands-on assistance to small
and medium-sized manufacturers to help them adopt new technologies.

Patent and Trademark Office, 800-786-9199; Web address:

www.  uspto.gov.  A free copy of Basic Facts about Patents is available
from this office.

Small Business Administration, 800-827-5722.  Provides prerecorded
messages about its various programs and services, including referrals
to your local SCORE and Small Business Development Center (SBDC).  The
Resource Directory for Small Business Management lists S.B.A publications
and videotapes.  Request a free copy from S.B.A Office of Business
Initiatives, Mail Code 7110,

409 Third St. SW, Washington, DC 20416.  Many of these publications
and other information are available online at: www.sbaonline.sba.gov.

Small Business Institutes, Small Business Advanrement National Center,
University of Arkansas, College of Business Administration, UCA Box
5018, 201 Donaghey Ave Conway, all 72035-0001; 501-450-5300; fax:
501-450-5360; Web address: www.sbanet.uca.edu.  Program provides free
management counseling to small businesses.  Contact for information on
local programs.

Small Business Profiles, Gale Research, 800-347-4253.  A two-volume
series of library reference books providing step-by-step guidelines for
more than 100 business ventures.

Small Business Sourcebooks, Gale Research, 800-347-4253.  A library
reference guide to more than 17,000 small business information sources.

Something Ventured, Intelecom, 150 E. Colorado Blvd Suite 300,
Pasadena, CA 91105; 818-796-7300.  A 26-part video series on owning and
operating a small business.  Descriptive listing available.

Subject Bibliography Index.- A Guide to U.S. Govemrnent Info n,
Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402; faxback service: 202-512-1716; Web address:
w,ww.access.gpo.gov/su-docs.  A listing of more than 12,000 different
material resources available through the government.

Taking Care of Business: A Guide to Census Bureau Data for Sen,all
Businesses, Customer Service Branch, Bureau of the Census, Washington,
DC 20233; Web address: www.census.gov.  A free, 26-page guide
explaining how to access and use the demographic and business-related
data offered by the bureau.  Also includes a listing of State Data
Centers (SDCS) and Business and Industry Data Centers (BIDCs).

The Small Business Resource Guide, IBM Corporation, Mail Drop 340, 1133
Westchester Ave White Plains, NY 10604.  A free, 144-page small
business reference guide.

Thonws Register ofamerican Manufacturers, Thomas Publishing Company,
800-222-7900.  A comprehensive library reference guide listing
thousands of product manufacturers.

.

Evaluating Your Idea University Cooperative Extension Services (part of
the Department of Agriculture; check the government section of your
phone book for a local program listing).  Provides counseling and
training to small businesses, usually in conjunction with an area
university.

Wisconsin Innovation Service Center, 402 McCutcham Hall, University of
Wisconsin, Whitewater, WI 53190; 414-472-1365.

Provides a comprehensive and confidential evaluation of your invention
or idea at a relatively low cost.

Chapter 3 Settl'in.g Up Sho "As a general rule, the most successful
people in life are those who have the best information."
-Benjamin Disraeli, British writer and prime minister Survival Tip #24:
Understand the value of a business plan.

Before she launched the Brooklyn-based Lupien, Ltd a computer
consulting firm, Debbra Lupien combed dozens of startup books.  They
all touted business plans-written documents explaining how you will
execute the startup, operation and growth of an entity-as tools to
obtain financing.  Since her company was self-financed, Lupien
discounted the value of a business plan and operated seven years
without one.  Then, needing to hone her marketing skills, she signed up
for an entrepreneur-s class.  Lupien got more than she bargained for:
The class curriculum required everyone to complete a business plan by
session's end.  Only 12 of the 25 first-night attendees completed the
course with a business plan in hand, and Lupien was one of them.

.

The assignment had forced Lupien to reflect on the state of her
business; she realized it was stagnant and lacked focus.  She revamped
her business by specializing in custom database development, which
supported her goals of concentrating on more enjoyable work, doing more
work in less time and serving her clients from her own office instead
of at the clients' location.  The result: Her profits are now up 50
percent.

Whether it's fear or mere resistance that hinders you from creating a
business plan, you must understand that a business plan's value goes
beyond its ability to secure a loan package for you.  You gain an
advantage by building your business on paper first.  The business will
become crystallized as you describe in writing your company, its
products and services, competitors, customers, management, operations,
marketing and sales plan, industrial outlook and long-tenn goals.  The
economics of your undertaking-how much is needed to get going, stay
afloat and move to the next level-will be spelled out for you.  Besides
a lack of money or good information, many businesses fail because of
poor planning.  A written plan will force you to think about how to
prepare for opportunities as well as difficulties.

And, like Debbra Lupien, you may find that using your business plan as
a working document will help make operational decisions easier.

Survival Tip #25: Distinguish between your needs, wants and absolutes.

Every tool for operating a business can be grouped into these
categories.  Absolutes are what you legally need to run your business.

They can include a checking account, fictitious name filing (also
called D.B.A, which means "doing business as"), state or city permits,
professional and occupational licenses, an employer identification
number or state sales tax and resale certificates.  Your particular
absolutes will depend on your location and the type of business you're
running.  Hawaii, Iowa and Rhode Island, for instance, are the only
states that regulate the activities of tattoo parlors and require a
special permit to run such establishments.  Absolutes are often linked
to one another, .

Setting Up Shop such as presenting your D.B.A paperwork to open a bank
account or a business license to apply for a resale permit.

A need and an absolute can be confused when it comes to your tools,
equipment, services, office space and people resources.  Although how
much you need will depend in part on the nature of your business, the
determining factor should be efficiency.  Ask yourself What do I
absolutely need to run an efficient operation?  Standard office arsenal
includes a combination of telephones and special features or equipment,
fax machines, e-mail capabilities, pagers, cell phones or computers and
their peripherals.  A fax machine in my office is an absolute.  Many of
my faxes need to be filed, so buying a plain-paper fax was a better
efficiency investment.  See how the thought process works?

There are a few ways to get your wants.  First, you can work towards
them.  If you're desiring a 20OMhz processor computer or a Herman
NEller deluxe chair, then devise a savings plan for those investments.

Also, Survival Tip #37 may help advance you more quickly toward your
wants.

The key point: Successful bootstrappers avoid indulging in their wants
while ignoring their needs and ending up too broke to handle their
absolutes.

Survival Tip #26: Track down your city's one-stop business startup
package.

.

Working through the regulatory maze in a community may feel as if
you're on an egg hunt.  Don't despair.  You can simplify the process by
contacting the office of your state's department of economic, business
or community development.

Most state information packages for startups include state and local
operational requirements along with contact information.  The primary
benefit of these packages is that they take the guesswork out of
figuring out the legal requirements in your state.  They also provide
you with links to local Small Business Development Centers, Federal
Information Centers and special entrepreneurial training and financing
programs.  If your area has a one-stop permit filing center, that'll be
indicated as well.  A one-stop permit filing center allows you to file
.

and pay for all your business licenses or permits through one officeas
opposed to running around to several different offices to get
everything taken care of.  If your city has one, you should take
advantage of it.

Packages are usually free or available for a nominal fee, but each
state's package will vary in substance.  One phone call to the Arizona
Business Connection or Nhssouri Business Assistance Center, for
instance, will get you a customized package for doing business anywhere
in the state.  Delaware's business kit includes details on occupational
licenses, specifying the types, cost and renewal schedules.

Washington's package includes a schedule of free business information
workshops along with the Business Resource Directory: For Financial and
Technical Assistance.  Some packages will even include a how-to
resource and business plan guides.

You can also contact a "first-stop" business information center.

There may one directly in your city or in another part of your state
(you can check the government listings in your phone book).  A
firststop office can provide (by phone or fax or in person) information
about licensing, permits, your particular business type and running a
business in your state in general.

Beginning your search in reverse-starting on a state level and working
your way downan connect you to more information and resources.  Plus,
it can give you an overview on doing business throughout the state,
which may come in handy should you decide to expand or relocate.  So,
how should you begin tracking down your centralized source?  Turn to
this booles Appendix (the Directory of State R,esources for Small
Businesses, which begins on page 237-I've started the legwork for you!

Survival Tip #27: Aim to legitimize yourself on every level.

As mentioned in the previous tip, you may behave that finding out all
the legal requirements for running your business is a daunting
endeavor.  Or perhaps you're reluctant to file the necessary
applications and pay the required fees because of the expense.  Or
maybe you feel you'll never get caught.  Then again, you might not even
realize you have violated a regulation (see Survival Tip #30).

Whatever Setting Up Shop your reasons, if you operate a business
without obtaining all the permits or licenses in a jurisdiction that
requires them, you're running an illegitimate business, one that does
not comply with governing regulations.

You may have to prove your business's legjtimacy when you least expect
it.  For example, a person whose first and last name are included in
the name of his operation-John Doe Fitness Training Service'-isn't
legally required to make a fictitious name filing (see Survival Tip
#25).  John Doe can open a business checking account and start
receiving payments for his fitness services.  But the city in which he
lives may classify a personal training service as one that needs a
business license.  John Doe may be tempted to bypass the requirement
because he already has a business checking account, plus he provides
workout services to individuals who probably won't ask to see a
license.  But let's say an opportunity to lead in-house workout
sessions for the employees of XYZ Corporation comes along.  If the
corporation needs to see John's business license, he could lose out on
the opportunity.

Companies, large and small, are carefully scrutinizing who they do
business with.  No business wants to get caught misclassifying workers
as independent contractors and face the IRS's costly penalties (see
Survival Tip #121 and #122).  If you get caught in the middle of a
reclassification battle, you come out a loser, too.  You'll lose tax
deductions, your credibility and clients'business.

Your illegitimacy may never become so obvious as when you start working
with government agencies or corporate vendor programs, attempt to have
your business certified as a woman- or minority-owned f= or try to
claim your prize in a business contest.  Part of proving that you have
a legitimate, independent business begins with creating a paper trail,
which may include any of the following documents:

 Proof of ethnicity and citizenship or permanent residency.

 Equipment rental and purchase agreements.

 Management service or lease agreements.

 Applicable licenses or permits.

 Bank signature card.

 Fictitious business name filing.

Tax forms with Schedule C attachments for itemizing the expenses of
your operation against the profits of the business.

Proof of capital invested.

If you've been winging it, it'll be difficult to obtain this
information on a moment's notice!

Further, consumers are advised to verify that the contractors they hire
have insurance protection before they begin any work.  Companies
outsourcing work are adopting this practice, as well, and requiring
their suppliers to have liability insurance coverage before they will
even shake hands with them.  In light of this, you should make it a
priority to thoroughly research the insurance coverage requirements for
your type of business (see Survival Tip #29).

This is also important if you become involved with a 'mutual
corporation," a group of independent professionals who work together on
a specific project and disband once its over.  More independent
businesses are leveraging the talents of many by learning up and
forming virtual corporations.  They take advantage of big-dollar
projects without the official ties and commitments of actually running
a corporation.  These collaborative efforts help independents obtain
larger and more profitable projects.  But if you, as an independent
professional, haven't obtained the necessary insurance coverage (such
as liability or errors and omissions), the whole team could possibly
lose the project.

The reputation of the whole team is at stake.

Don't allow your negligence to disqualify you or others from
opportunities.  Additional ways to legitimize your business include
building a multiple customer base (see Survival Tip #98) and
maintaining a business identity.- One way to accomplish the latter is
by becoming incorporated (see the next Survival Tip).

Survival Tip #28: Pick the business structure that'll best manage your
liabilities.

Your legal structur le proprietorship, partnership, corporation,
Limited Liability Company n make a big difference in how you pay taxes,
handle lawsuits or dissolve or pass on the business.  A sole .

Setting Up Shop proprietorship is simple to organize, and you, as the
owner, have complete control over the business and its profits-which
are filed as part of your personal tax income.  You also assume all
risks and obligations of the business, making your personal assets
attachable to cover debts and liabilities.  Unless your heirs decide to
carry it on, the business ceases when you do.

Two or more people can join together and contribute money, property,
labor or skills to form a partnership.  Each partner shares in the
profits, losses and obligations of the business.  So, if your partner
makes a bad deal, you carry the baggage, too.  You'll both pay personal
income tax on your share of the profits.  You should have a written
partnership agreement, stipulating how the business shall be run,
decision-making authority, distribution of monies and provisions for
continuing should one partner die or want out.  Otherwise, should a
legal or dissolvement dispute arise between partners, your formation
will be governed, in most states, by the Uniform Partnership Act, which
states that each partner shares equally in the profits regardless of
the contribution.

The characteristics of incorporation: Your business operates as a
separate entity; you're granted more liability protection because
you're not personally responsible for the business's debts; you're
taxed differently; shares of stock can be bought or sold much easier
than in a partnership, making it easier to pass the corporation along
to the next generation.  Required formalities of a corporation include
electing officers, keeping separate records and filing separate tax
returns.

There are two forms of incorporation.  Under a standard (or C)
corporation, business income is taxed twice-at corporate rate and your
salary rate.  However, with a Subchapter S, dubbed a small business
corporation, you only pay taxes on a personal level.

The new option on the block is Limited Liability Company (LLC).

Available in most states, LLCs give the liability protection of a
corporation without the double taxation of a C corporation.  But the
IRS guidelines are ambiguous and in some jurisdictions LLCs are taxed
twice, wiping out one of their main benefits.

Before you choose a business structure, make sure you understand the
short- and long-tenn iinphcations of your decision.  Choosing a
Business Entity in the 1990's, a free guide from Coopers & Lybrand, is
.

one helpful resource to consult (see page 66 for ordering information).

Also, you should consult a qualified professional.

Survival Tip #29: Safeguard your future with insurance.

.

Your business can be crumbled by a lawsuit or natural disaster,
especially when you don't have adequate insurance coverage.  Sean
Mooney, of the Insurance Information Institute, recommends that all
businesses consider five basic types of insurance: property, liability,
business interruption, life, disability and workers' compensation.  Ask
yourself 'What can put me out of business?"  If your product touches
the public, there's a potential for liability lawsuits.  If you have
high property exposure, you'll need coverage to recoup from perils that
result in losses of inventory or other assets.  When unthinkable events
affect your operation, business interruption insurance will cover your
income for an extended period of time.  If you work from home, you'll
need additional riders or special coverage beyond your homeowner's
policy limits.

A standard business owner's policy (BOP) will typically cover you for
'property, liability and business interruption.  BOP plans vary widely
in cost, coverage and exclusions.  Some plans, for example, cover named
perils, all risks or risks tailored to the industry type.  Although
BOPs weren't originally designed for people who work from home,
home-basers can get full BOP or specialty coverage.  Under CNA
Insurance Companies' HomeWork endorsement, for instance, the scope of
your coverage expands.  The business property limits are comparable to
your personal property limits, plus you pick up offpremises and product
liability exposures.

Be sure any policy you buy is providing you with adequate coverage
based on your business type, setup or size.  You may need to have
special clauses written for employee dishonesty or other crime/theft
incidences.  Businesses in which "errors and omissions" or malpractice
could result in litigation should investigate getting coverage in
addition to the standard BOP coverage.  Partnerships and corporations
should consider 'key man' coverage.  It insures the lives of
principals, buying you time to reorganize or replace the person or
purchase his or her interest.  These coverages, along with life,
disability, workers'

Setting Up Shop compensation and business auto, are sold separately
from BOP policies and each other (see Survival Tip # 116 for health
insurance).

Begin your coverage search by talking with an experienced agent.

It's important to work with someone who has expertise in your
situation.  Your homeownees insurance agent may not be very conversant
on a BOP policy.  You can get referrals from your colleagues.  Your
industry or trade association may also be able to provide you with
sources as well as offer coverage to its members.  The Small Office/
Home Office Association, for instance, has BOP coverage available
through its benefit provider, I'IT Hartford.  Insurance companies, like
most industry suppliers, are competing for small businesses' dollars,
so you're bound to find a good deal when you shop around.

Survival Tip #30: Be aware of other legalities that affect your
operation.

When I received an invoice from my graphic designer, I thought the
tacked-on sales tax was an error.  It wasn't.  Since the service and
labor cost resulted in the creation of tangible personal property,
GotA-Vision Graphics was required to collect the tax.  Even if your
business doesn't sell a tangible product, you, too, may be required to
make the collection.  If I was surprised by the charge, imagine how
you'll feel to discover that you should have been collecting it from
day one-and that the money's still due.  This is one of many legalities
where ignorance will not exempt you from compliance.

Governing regulations go beyond your basic license or permit.  If
you're running a mail-order firm, for example, your business must
comply with the Federal Trade Conu-nission's (FTC) Mail Order Rule.

Unless you state otherwise in an ad or order form, you're required to
ship an order within 30 days after you receive a properly completed
order.  Under federal warranty law, you can also get into hot water
misusing "satisfaction" or "money back guarantees-saying that
merchandise can be returned unconditionally and then refusing to honor
your promise.  Another example: The Cahfomia Business and Professions
Code requires catalogers to include in all their mailing information
the true address where their business is conducted.

Start your search with the licensing bureau, asking for a copy of the
business and professions code.  Order compliance guidelines for your
type of business from the local State Board of Equalization and the
FTC's Best Sellers, a listing of free publications that explain laws
governing business practices.  Industry and trade associations can
offer you some pointers, as well as 'how to run your type of business'
books.  It's an exhausting process, but you'll save money and possible
heartache.

Survival Tip #3 1: Let Uncle Sam educate you.

Part of running a legitimate business is complying with Internal
Revenue Service (IRS) regulations.  Recordkeeping is the number-one
nagging problem for small business owners, according to Barbara
Jenkins, director, the IRS's Small Business Affairs Office (S.B.A.O).

You'll need to invest in a system that allows you to track sources of
income, expenses, inventory and payroll.  When you're working on a
shoestring budget, record-keeping becomes even more important.  One,
you'll have a clearer picture of your financial position; two, every
saved receipt could translate into tax deductions; and three, you'll
avoid having your profits wiped out by late penalties because you were
too disorganized to file the payroll taxes on time.

The IRS has a variety of free programs and information that can help
you get set up properly.  Even if you use an accounting professional,
attending a Small Business Tax Education Program (STEP) workshop is
well worth your time.  You'll get information on starting a business,
record-keeping, preparing business tax returns, selfemployment taxissues
and employment taxes.  The program also maintains a free lending
library of films and videotapes on a variety of subjects and publishes
the newsletter Tax nps: A Newsletter for New Businesses.

The S.B.A.O's job is to recommend changes to the federal tax system as
they affect small businesses.  In 1995, for example, the IRS
commissioner and S.B.A.O director conducted seven town meetings with small
business professionals across the country.  The attendees voiced that
there needed to be a centralized way to get information on
record-keeping requirements.  In response to their feedback, the IRS

Setting Up Shop created publication 583, Starting a Business and
Keeping Records.

The S.B.A.O does not handle individual taxpayer problems; however, they
are interested in hearing about tax law, regulation and policy concerns
raised by small businesses.

Survival Tip #32: Pick a name you can live and grow withand that's your
own.

Your business name can give you a competitive advantage.  Effective
names establish your marketplace presence, convey what you do and
create a memorable impression.  Clever names, like Glove Me Tender,
turn a half-second glance into a three-second look-see.  First, you
need to be clear on what you would like the name to accomplish.

When a lot of people do what you do, you'll need a name that helps
people remember you.  If the focus is to ensure that people understand
what you're offering, You'll need to create a name that complements the
word or phrase identifier.  If you are well-known in your community or
field, then incorporating your own name nan work well.

Begin the naming process by pinpointing each key characteristic,
benefit or personality trait of your business.  This would include the
range or specialization of your inventory or qualities that customers
appreciate such as skill, friendliness or innovation.  The
Expectations, Inc Affordable Electronics Store, Accurate Patent Search
and Rapid Plumbing are effective monikers.  You should also consider
names that inspire confidence.  If you needed, a resume prepared from
scratch, who would you be inclined to call just by the mere reading of
the nameArcher Resume Service or Resume Wizard?  Or what if you had an
arduous research project-Aspens Systems Corporation or Research Done
Write!  ?

You may find naming inspiration in words' origins or shades of r ce he
no nde ic tonary meaning that enough sources such as T Sy nym Fir or D
t,' of word Roots.  Merriam-Webster's Language Research Service will
answer questions about words free of charge (see page 69 for contact
information).

You'll need to be thorough in checking out names already in use or
similar to your ideas.  The last thing you want is to be forced to stop
Using your name because it belongs to someone else or to have yours
confused with that of another business.

Leaf through library or public resources such as phone books, D.B.A
filings, industry and trade association directories and The Trademark
Register of the United States.

Also, think about how you plan for the business to grow.  Professional
Typing Service may require a name change when you begin offering an
array of secretarial or office support services.  You want the public
to be responsive to your name, so be sure to test it out on colleagues
or associates.

There are some basic do's and don'ts.  Avoid names that are difficult
to spell or pronounce, too short to make sense or too long to remember
or that have some introspective meaning that only you understand and
that confuses people.  Aim for alphabetic al positioning when your
business is fueled by yellow pages inquiries.

You should consider a state or federal trademark when the entire
identity of your business is wrapped up in the name, you plan to do
business nationally or globally or you plan to franchise your business.

Survival Tip #33: Operate your home suite on the right side of the law.

.

I Working from home is not a fad.  The work-at-home-universe continues
to swell every year, with its size estimated at more than 20 million.

Big-business notables like Hewlett-Packard, Hallmark, Microsoft, Apple
Computer and Hershey Foods all started o ut as homebased businesses.

Today, there are fewer barriers to setting up a home office.  The
affordability of essential technologies such as computers, software,
cellular phones and access to the Internet make it easier for you to I
run a competitive operation from home.  Whether your home is a starting
base or choice destination, there are a few things to consider before
hanging out a shingle.

Don't neglect to check out local zoning ordinances.  Home businesses
are prohibited in some communities or governed by local regulations.

Ordinance guidelines may affect your daily customervisitor count,
square footage space allowance, permissibility of nonresident
employees, hours of operation, advertising your home address and the
type of business activities you conduct.  You can find out how your
property is zoned by contacting the zoning board, building .

Setting Up Shop inspector, planning department or city clerk's office. 
If you live in an area with covenants that regulate the neighborhood,
be sure home business activity is permitted.  Even if a city's zoning
ordinance permits home business activity, it can be overridden by
bylaws of a planned community or townhome or condominium association. 
Study the information and proceed from there.  Your compliance may mean
operating from a P.O. box-working solely With no visitor r using a
corporate identity program (see Survival Tip #34).  Also, the American
Association of Home-Based Businesses offers guidance on how to comply
with local regulations.

Next, you should consider if a home suite will professionally
accommodate your business choice.  Is your work space set up so you can
privately meet with clients or is it mixed in with the other
furnishings and activities of your home life?  Do you have adequate
space for you or employees to work efficiently?  Working from home may
require that you to invest in a separate entrance, remodel parts of
your house, meet at clients' offices or make other a-la-carte
arrangements (see Survival Tip #34).

Survival Tip #34: Consider other "suite-ID" options.

If your business dictates a "full-floor" tenant look, then check out
executive suites.  A low-end amenities package can get you an interior
office (no window), meeting room access, telephone answering, word
processing, fax, photocopy and courier service.  Prices, of course,
will depend on whether you need to be uptown, downtown or somewhere in
between.  Most facilities offer deals by the hour, day, week, month or
year.  By using a suite's services, equipment and furniture, you may be
able to get up and running faster while keeping your initial capital
investment minimal.

The nurturing environment of a business incubator is another option.

These facilities house new and growing business under one roof at
below-market rates, along with access to technical assistance,
counseling and a support network.  The amenities are similar to an
executive suite.  Incubators give you an opportunity to save money
through shared costs with other tenants.  At the Pasadena Enterprise
Center, for example, you can get a 200 square foot space, including
services, for $400 per month.  But cash in hand won't guarantee your
entry.  You'll need to submit an application, supporting documents and
a business plan (see Survival Tips #24 and #27) and be interviewed by a
selection committee.  Many incubators and executive suites now offer
corporate identity plans, providing you with a professional address,
telephone secretary and conference room by appointment (this could be
an alternative for someone with restrictive zoning laws).

Then there's always the shameless route.  Back in his salad days, Joel
McIntosh of Waco, Texas, didn't have a nice place to meet with clients.

What the education-market book and magazine publisher did have was a
relationship with a local school.  The university's board room, an
impressive place free of charge, became host to McIntosh's meetings
with out-of-towners.  Now, McIntosh's firm has reached million-dollar
status, and he's not ashamed to meet folks in his current digs.

Survival Tip #3S: Focus on professionalism rather than looking like a
big shot

' You should always aim to present your business as a skilled,
efficient and reliable operation.  That's the mark of a true
professional.

You should focus on setting up your office accordingly.  It's the lack
of professionalism that has many businesses plodding along.  They
could, however, operate on another level with a little tweaking.

Professionalism includes visible and invisible impressions.  A dirty or
disorganized work space or a storefront with a dingy sign all work in
souring others' impression of you.  Snazzy stationery or fancy
furnishings do not cover up unprofessionalism for very long.  Amateurish
work poor phone presentation or follow-through systems or overbooking
clients can cost you business.  Professionalism means operating with
some standards of conduct and having the necessary tools in place to
support you.  A professional operation has adequate phone lines or
services that enable clients to receive a business-like greeting and
leave messages, faxes or electronic mail hassle-free.  The use of
office and computer equipment and software will allow you to produce
quality work in a time- and cost-efficient manner.  Your focus isn't on
showing off the mere fact you're in business, but showing that you own
a professional business.

.

Setting Up Shop When you deliver what you promise when you promise,
you'll inspire customer confidence in you.  As you set up your office,
take time out to consider the resources and materials you'll need in
place to give you a competitive advantage.  Any money you spend today
will give you a professional advantage tomorrow.

Survival Tip #36: Design your collateral around the identity of your
business.

Contrary to popular belief, you should not fall into the trap of
creating an "image."  An image can be expensive to maintain because you
must continually finance the trappings associated with the facade.

Also, when you decide on a business "image," you run the ask of
rrusrepresenting yourself to the marketplace.  Remember, people do
business with those they like, trust or have confidence in.  If
prospects see that you're not who your image portrays you to be, you'll
lose credibility and possible sales.  Before you spend a dime on
stationery, you should think about how to communicate your true
identity.

EverY business has one.  It's a quality or characteristic that sets you
apart from your competition.  It often stems from the personality of
the business or its owner.  In his seminars, self-esteem expert Bill
McGrane encourages participants to anchor themselves in their unique
factor.  Here's how it worked for one entrepreneur.  After being
cheated out of commissions by an employer, a sales executive in the
printing industry decided to open up his own shop.  His firm produced
cutting edge annual reports for Fortune 500 companies.  This savvy
salesman, however, needed to distinguish himself in a competitive
market.  Through the personal history intake in McGrane's workshop, it
was revealed that he was also a talented drummer who began playing to
deal with certain pains in his life.  The tie-in to his business: an
instrument logo with the service slogan 'We help you drum up business."

Next, you should focus on the presentation of your message, choosing an
effective graphic presentation that'll sell.  Your package will include
the colors, paper, typeface and layout you use.  It's important to
avoid graphical choices inappropriate to your industry or that'll steer
business away from you.  For example, studies have shown that the color
blue is an appetite suppressant-just ask the M&M's ' folks.  Begin by
collecting cards from other professionals and companng them against
your ideas.  You can also use paper samples from a local self-service
dealer to begin experimenting with some concepts.

Don't rush through the creative process.  The more time you spend on
developing your graphic presentation, the longer you'll be able to use
the materials in your business.

Resources that'll help you achieve a coordinated look: Color Selling:
Using Color Psychology to Increase Sales by Lea Brit (Spectran
Publishers) and International Paper's Pocket Pal: A Graphic Arts
Production Handbook (see page 69 for more information).  Using
resources like these as a primer will help you work more
cost-effectively with graphics and printing professionals.  You'll also
save money by supplying a printer with your own paper and using a
graphic artist who lays out your designs on a computer.

Survival Tip #37: Use out-of-the-way sources to buy quality furniture
and equipment.

Your shoestring budget may not allow you to mirror the "ultimate
office" as pictured in a magazine, but you can certainly try to mimic
it.

You should always buy quality merchandise.  Every business is fueled by
a primary work tool.  For a manufacturer it may be a piece of
machinery; for me it's my computer.  By first determining your primary
instrument, you'll be clearer on what the best sources are for getting
quality at a good price.  In some instances, a brand new tool is more
feasible but can-be supported by other used or refurbished items.  For
example, buying a new computer system and printer with expandable
memory, yet purchasing used furniture to hold that equipment, would be
wise.

Consider some out-of-the-way vendor sources.  For example, computer
shows offer you extraordinary deals on new PCs (see Survival Tip #38).

Discontinued merchandise is another option.  Local office furniture
outlets, superstores or catalogs offer deals on clearance items.  If
you opt to buy discontinued equipment, make sure that you'll be able to
get replacement parts in the future.  Refurbished items can be bought
at a fraction of the original cost.  Two top-of-the-line .

Setting Up Shop furniture manufacturers offer some more affordable
options: MillerSQA's AsNew and Steelcase's Revest have launched
separate divisions that sell restored furniture repurchased from
customers.  Recycled furniture dealers are POPPing up all over the
country.  They buy, clean up and resell used furniture.  Check out the
National Office Products Association's Web page (www.recyclefum-org)
for a listing of dealers nationwide.

Looking for industry-specific equipment or dependable, standarduse
items, such as store fixtures?  Scan your local paper for auctions.

Facilities managers coordinate events for downsized corporations and
the S.B.A and other government agencies handle repossessed items.

And then there's leasing companies.  Besides being a source to finance
a major purchase, many companies sell expired-lease furniture from
their warehouse.  Check the yellow pages for a local firm.

Survival Tip #38: Buy a Computer that you won't outgrow tomorrow.

.

I.

.

A computer can be your best or worst business investment-it depends on
how you go about it.  Unless you plan to buy the latest annual release,
accept the fact that whatever you buy will soon be considered dated.

But outdated doesn't mean useless.  By creating a technology plan, you
can ensure that you're purchasing a system that's right for your
business today as well as tomorrow.

Your plan should be built around the answers to these questions.  What
do I need the computer to help me accomplish?  Possible answers: to
streamline work activities, handle tasks in-house or provide better
service.  What tYPe of software and accessories will supPort my
objectives?  This area is critical because it will dictate our y
processor and modem speed, memory capabilities, disk storage, printer
and monitor choices.  If you plan to run graphic-intensive programs or
industry-customized software, you'll need a speedy system that can run
the applications smoothly.  Also, be sure your application choices
match your operating systems environment-Windows, Macintosh or DOS.

Remember to think forward.  Your needs may change as your business .
Will the system, for example, be able to accommodate network software
or multimedia programs?  Equipment

w' expandable slots and memory upgrade capabilities will allow you ith
to grow with a system without having to reinvest from scratch.  Use
this information as you begin to shop around for a system and deal with
a salesperson.

There are a few ways to get your hands on a dream system.  Catalogs,
local computer superstores and Home Shopping Channels all offer
competitively priced equipment.  My favorite: shopping at a computer
marketplace.  They offer new, brand-name hardware, software and
peripherals at wholesale prices.  Many of the vendors will
price-haggle, especially when it's a cash offer.  These shows are open
to the public and advertised in local newspapers and computer journals.

Used computers are another option.  Dealers such as Boston Computer
Exchange or RTI sell used or refurbished equipment; some of which come
with warranties.  You may find what you need from an outlet, such as
the IBM PC Factory Outlet, which sells overstocked, refar bished, new
and withdrawn equipment.

Whatever shopping avenue you choose, you should comparisonshop for the
best deal and clearly understand the usage potential as well as
limitations of any system.  This will prevent you from buying equipment
that'll quickly outlive its usefulness in your business.

OFFICE SETUP TIPS TO REMEMBER

1. Keep your eyes peeled for nontenninable contracts.  Let's say you
lease equipment or enter into other contract service agreements.  There
may be a contract clause that locks you into paying for sometg even if
you decide not use it anymore.  Small business attorney Sarah Calvert
of Calvert & Associates in Fairfax, Virginia, says there are vendors
who prey on new startiips because they know most startup business
owners don't un understand contractual language and usually review the
contracts without legal assistance.  Just because a contract has
printed terms doesn't mean it's not negotiable.  If you're
uncomfortable with contract negotiations, consider using a legal
professional-even it means you have to barter or join a pre paid legal
plan.

2. Test-drive items before you buy them.  Would you buy a car without
taking it for a spin?  Treat your equipment, software, furniture and
other items with the same attitude.  Help espeople earn their keep and
ask them to walk you through a demonstration of a product.  Touch, feel
and adjust furnishings as they will be set up in your office.

Higher-priced soft ware sometimes comes with working models which allow
you to test it at no cost, so always ask for them.  You can buy
yourself some testing time by understanding the return policy periods
on your purchases and actually u,-,ing .

Setting Up Shop the merchandise during this time.  Also, make sure
stationery paper is compatible with your in-house printer; some paper
is too textured and don't print cleanly on laser printers.  Czet
samples from your printing company and do a test run on the printer
before you make Your final paper selection.

3. Make invesbnents with your tax deductions in mind.  Under the
Section 179 deduction, you take a sizable deduction on your taxes for
business computers, office furniture and other equipment.  It's
important to educate yourself on the eligibility, limits and exclusions
of your business expenses.  By understanding tax deductions, you can
strare when and how you make purchases for Your business, thus
positioning yourself to stretch out your dollars.

4. Dorilt ignore the importance of ergonomically friendly workspace.

YouR be logging long hours in your business, so it's wise to invest in
tools to help you work smarter and prevent injuries.  One bootstrapper
regrets not spending more time going through her office setup-she's un
happy with her desk and the overall setup of her workspace.  Your work
space should be well-lit, and your furniture and equipment should be
designed to provide maximum comfort.

Ergonomic product sources: AliMed Ergonomics (800-225-2610) and
Ergosource (800-969-4374), or for safety information, call the National
Institute of Occupational Safety and Health (800-356-4674).

5. Avoid being a sole proprietor by default.  This business structure
form is truly the best for many small busiresses.  However, the more
money you make, the more people you deal with and the more assets you
accumulate, you should consider other options for protecting yourself
When you start off and aren't making much money, it may seem
implausible to worry about such things.  But as you grow, do yourself a
favor and reevaluate the benefits of other structure options.

Survival Tip #39: Conserve your cash through bartering.

Bartering your know-how can be the key to valuable products and
services for your busines vi s. You can preserve your cash by swapping
your services or wares with other businesses.  There are two ways to
use this ancient trade method.  One is to join an organized bartering
exchange-an organization Of Professionals who trade or exchange
Products and services in lieu of cash.  For an annual membership fee,
you have access to a ready network of offerings from office supplies to
printing to legal counsel.

Here's how it works: When someone uses your services or products, you
get credited in your account for the purchase.  For example, if I
charge $100 an hour for my small business coaching services and another
member of the exchange mes in for a two-hour session, I co will have
earned a $200 credit in my account.  I can use the credit tOward
something from that person's product line or from anyone else's in the
exchange.

The organization keeps a record of your exchange activities with others
in the network.  You receive monthly statements detailing who used your
offering and whose offerings you used.  Records also indicate how many
trade dollars, or credits, you have available Oward other members'
products or services.  The organization will also send you a 1099-B
form to file with the IRS, which considers bartering a form of income.

You are required by law to file this form.  (If you barter on your own,
independent of an exchange, you will be responsible for keeping records
of your exchanges and reporting them to the IRS.) I have listed two
organized bartering exchanges in the Bootstrapper's Follow-up File for
this chapter-the International Reciprocal Trade Association and Itex.

Before you join an exchange, be clear on who's in the exchange, exactly
what's available and payable commissions.  Make sure there's a
proportional number of members in each category.  Finally, consider
whether the offerings are fairly priced.

Another way to swap your services or products with other businesses is
to solicit deals independently.  A partnership firm, for example,
subletted warehouse space from a soda manufacturer.  Their deal:
stuffing rubber washers in bottle caps for four hours daily in lieu of
rent.  William DeNeen got extra mileage from a paid placement
advertising his new business, TELE-COR, a telecommunications
maintenance coordination service in Waterford, Connecticut.  He
negotiated with the paper to run his "Residents in Business" profile
for two extra weeks-with minimal editing-in exchange for six
telecommunication service calls.  With her "no fear in ash " attitude,
Got-A-Vision Graphics owner Julia Tavis swapped desktop publishing
services for free admision to 10 chamber of commerce mixers.  Again,
independent deal makers are still required to comply with IRS reporting
guidelines.

If you're making deals independently, you should focus on exchanges
that ideally suit you and another.  Remember, your exchanges aren't
being credited toward a network of other choices.  Also, be specific in
your arrangements and discuss any restrictions up front.

If you choose to barter, you should start off slowly and leave yourself
room to cash out quickly should you decide trading isn't for you.

.

Setting Up Shop A BAKER'S TALE Becky and Mike Busath's entrepreneurial
inspiration came from watching their friends' rags-to-riches success. 
Their two friends went from selling everything they owned to open a
franchise business to being able to buy amenities they had never
previously been able to afford.  Becky had always loved baking bread,
and Mike had always wanted to own a business.

The couple married their two desires together and decided to pursue
opening a specialty whole-grain bread store "M San Antonio.  After
investigating a franchise bakery, the Busaths became dismayed by the
franchise and ongoing royalty fees.  Their research showed that the
trend back to fresh, milled breads was growing, their targeted
community had households with money to spend and there were no other
specialty bakeries in the area.  Their own independent setup had
promise.

Still, the Busaths needed the business training that a franchise would
offer.  So, they struck a deal with the California-baed Campbell Baking
& Milling, one of the leading independent bakeries in the country.  For
a onetime fee, Campbell would provide the Busat with recipes, three
weeks of training, a vendor list for the Product and a year of ongoing
support.  The Busaths found a space not far from their home.  What's
more, the property's leasing agent was arudous to get a foot-traffic
business such as theirs into his center and agreed to pay for loo
percent of the build-out (the remodeling of the space into a bakery).

It appeared that Becky and Mike were on the right track until
everything started to go wrong.

The city business bureau didn't clearly explain to the Busaths the
compliance regulations for a food establishment.  Becky mistakenly
called out the building inspector before any work had been done on the
interior rather than waiting until the facility was ready to welcome
the public.  (She didn't know that only the first two visits of a
building inspector are free.) Other inspections followed later, each
one bringing bad news: Either the completed work didn't pass or other
new work was needed.  The build-out tab began to escalate.  Since their
leasing contract didn't address the specifics of additional work, the
lessor began to pass the costs onto the Busaths.

Becky made another costly mistake: She didn't understand that the cost
of their food permits ran in accordance with the number of employees,
Becky paid a higher fee when she could have saved money by reducing
some of her part-timers.

In spite of all this, the Stone Ground Bread Company did open as
scheduled, and it is a thriving enterprise today.  Becky's advice to
other first-timers:

1. Ask a lot of questions, even if they seem dumb.  (Had she been more
persistent with the city, she could have worked more cohesively with
the inspectors.)

2. Make sure any contracts you ign have demi spelled out.  (The Busa,
buad-out specifications showd have been deed more thoru&y.)

3. OnlY work with licensed and bonded professionals whose reputation
You can check out.  (They were stuck with the real estate agency's
contractors, many of whom didn't know what they were doing.)

Bootstrapper's Follow-up File Achieving the Competitive Edge Through
Office Ergonomics, Quill Corporation, 800-789-6640; Web address:
www.quillcorp.com.  A free guide on setting up an
ergonomically-friendly office.

American Association of Home-Based Businesses (AAHBA), P.O.

Box 10023, Rockville, NM 20849-0023; 800-447-9710 (202-310-3130 in the
Washington, D.C. area); Web address: www.aahbb.org.

Auction information: How to Buy Surplus Personal Property, a free guide
from the Defense Department, DRMS, National Sales Office, P.O. Box
5275-DDRC, 2163 Airways Blvd Memphis, TN 38114-5210; the Department of
Treasury Public Auction Line, 703-273-7373; the Internal Revenue
Service's 24-hour Auction Hot Line (call your local IRS office for the
number in your area); and the Small Business Administration (call your
local office and speak with the liquidation officer).

Best Sellers, Federal Trade Commission, Public Reference, Room 130,
Washington, DC 20580-0001; Web address: www.ftc.gov.  A -complete list
of hundreds of the FTC's free consumer and business publications.

Boston Computer Exchange, 800-262-6399.  Maintains a database of used
equipment for sale and serves as a matchmaker for buyers and sellers.

Business Plans Handbook: A Compilation ofactual Business Plans
Developed by Small Businesses Throughout North America, Gale
Researching 800-347-4253.  A library reference guide.

'Choosing a Business Entity in the 1990's, Coopers & Lybrand, National
Tax Services, 1800 M St.  NW, Washington DC 20077-5984.

A free, 7 1-page guide explaining the advantages/disadvantages of
business structures.

Compac Works, 800-318-6919.  Sells quality reconditioned computers at
outlet prices.

Developing Your Business Plan Workshop, Small Business Administration,
Web address: sbaonhne.sba.gov.  A free business program you can
download from the "Starting Your Business" .

Setting Up Shop section of S.B.A!s Web site.  Shareware programs for
starting a business 'also available.

Environmental Protection Agency Small Business Office, 800-368-5888
(703-305-5938 in the Washington, D.C. area); Web address: www.epa.gov.

Provides resource materials and information to help your business
comply with applicable EPA regulations.

Ergonomics and Office Design, Haworth, Inc 800-344-2600.  A free,
38-page publication and computer disk which contains ergonomic and ADA
information that can help you adjust your office environment for more
comfort and greater productivity.

Executive Suite Association, 800-237-4741.  Provides referrals to
facilities 'm your area.

First Step Business Plan, National Business Association, 800-456-0440.

A software program offering a simple format to help develop a working
plan for your business.  $5.

Glossary of Leasing Terms, Advanta Business Services Corporation,
800-255-0022.  A free guide to help you understand the language used
when negotiating a lease.

Hewlett-Packard Advantage Center, 800-637-7740.  Sells remanufactured
business computer systems and printers.

IBM PC Factory Outlet, 800-426-7015.  Sells overstocked, refurbished or
new and withdrawn systems at 15-25 percent of original price.

Insurance Survival Guides, Insurance Information Institute, 110 William
St New York, NY 10038.  Free guides that provide valuable information
to help protect your business: Insuring Your Home Business, Insuring
Your Business Against a Catastrophe and Insurance for Your House and
Personal Possessions.  Send S.A.S.E with first-class postage for one
guide; add 23 cents for each additional guide.

Insuring Your Business: What You Need to Know to Get the Best Insurance
Coverage for Your Business by Sean Mooney (Insurance Information
Institute Press, 1992); 800-331-9146 (ask for publications department).

$22.50.

I.

Internal Revenue Service, Taxpayer Education Coordinator, 800-829-1040.

Provides information on the Small Business Tax Education Program
(STEP).  Other helpful IRS resources (call 800-TAX-FORM to order, or
download from www.irs.ustreas.gov): Your Business Tax Kit, Starting a
Business and Keeping Records (Publication 583); Tax Guide for Small
Business (Publication 334); Taxable and Nontaxable Income (Publication
525) (information on bartering); Business Use of Your Home (Publication
587); Free Tax Help on Video (Publication 1237); and Guide to Free Tax
Seruices (Publication 910).

International Facility Management Association, 1 E. Greenway Plaza,
Suite 1100, Houston, TX 77046-0194; 713-623-4362; fax: 713-623-6124.

Provides used office furniture information.

International Reciprocal Trade Association, 6305 Hawaii Court,
Alexandria, VA 22312; fax: 703-914-9677.  Send S.A.S.E or fax request for
a free list of bartering exchanges in your state.

IRS Small Business Affairs Office, C:SB-Room 1211-100, 1111
Constitution Ave. NW, Washington, DC 20224.  Works with other
government agencies, trade associations, small business owners and
their representatives to address ways the IRS can better serve the
needs of entrepreneurs.

Itex, 800-213-5496; faxback: 800-426-5777; Web address: www.itex.net.

A nationwide organized bartering network.

KeyLease Plus, Inc 800-800-3671.  Provides small businesses with fieble
leasing options for equipment.

Lighting in the Healthy Office, Steelcase, 800-777-0330.  A free,
17-page publication that discusses how lighting affects performance and
productivity.  Also includes instructions for adjusting the lighting in
your office.

Major Laws Administered by the U. S. Department of Labor Which Affect
Business, U.S. Department of Labor, Room S-1004, 200
Constitution Ave. NW, Washington, DC 20210.  A free guide with short
summaries of major laws which impose requirements on business.  Send a
self-addressed mailing label with your request.

Setting Up Shop Merriam-Webster Language Research Service, P.O. Box
281, Springfield, MA 01102.  Provides free answers to questions about
history or origin of words.  Send S.A.S.E to receive more information
about service, Afiller-SQA AsNew, 800-253-2733.  A line of restored
office furniture.

National Business Incubation Association, 20 E. Circle Dr Suite 190,
Athens, OH 45701; 614-593-4331; fax: 614-593-1996; Web address:
www.nbia.org.  Provides information on incubators that may be located
in your community and an information sheet on how to evaluate an
incubator.

National Directoriess of State Business L ensi and Regulations Gale
Research, 800-347-4253.  A library reference guide comprised of
licensing and regulation information for more than 100 businesses.

National Insurance Consumer Hotline, 800-942-4242.  Answers questions
about various insurance matters, offers referrals for consumer
complaints and Sends out free consumer brochures.

National Office Products Association, 800-542-NOPA.  Publishes a
directory of office furniture recyclers.  $10.

Nolo News, Nolo Press, 800-992-6656; Web address: www.nolo.com.

A quarterly newsletter of legal information and updates from publisher
of self-help legal books and software.  Two-year subscription: $12.

Plan Write 4.0 for Windows, Business Resource Software, 800-423-1228 or
512-251-7541; Web address: www.brs-inc.com.

Business plan software.

Pocket Pal: A Graphic Arts Production Handbook, Print RAesources Group,
P.O. Box 770067, Memphis, TN 38177.  A 233-page guide.  $7.25.

Pre-Paid Legal Services Inc 800-775-7582; Web address: www.pplsi-com.

Offers small business plans for handling a menu of legal situations,
including contract or document review, incorporation partnerships,
intellectual property and more.  (Check yellow pages under heading
"legal service plans for similar programs.) Cost: $59/month.

.

RTI, 800-RTI-TRADE.  A computer liquidator; sells used and
reconditioned computers.

Small Office/Home Office Association, 888-SOHOA-11; Web address:
www.sohoa.com.

Small-Time Operator.  How to Start Your Own Small Business, Keep Your
Books, Pay Your Taxes, and Stay Out of Trouble by Bernard Kamoroff
(Bell Springs Publishing, 1995); 800-515-8050.

$17.95 postage pd.

Software for Your Small Business Success; National Business
Association, 800-456-0440.  This guide teaches you how to choose the
right software for your business needs.  $2.50.

Staying on the Right Side of Zoning Laws, Home Business Institute,
800-DIAL-HBI.  A free report on dealing with zoning issues in your
connnunity.

Steelcase's Revest, 800-333-9939.  A line of restored office furniture.

Tax Tips: A Newsletter for New Business, Internal Revenue Service,
Attn: Editor, M: C: DP, 11 11 Constitution Ave. NW, Washington, DC
20224; 703-914-9677.  A monthly publication for first-time business
owners.

Send a postcard with your name and address to receive a free
subscription.

Telecom Made Easy: Money-Saving, Pr-ofit-Building Solutions for Home
Businesses, Telecommuters and Small Organizations by June Langhoff
(Aegis Publishing Group, 1995); 800-828-6961; Web address:
www.aegisbooks.com.  Filled with tips on how to get the most out of
telephone products and services.  $19.95.

The Naming Guide: How to Choose a Winning Name for Your Company,
Product or Service, The NA-mestormers, 2811 Declaration Circle, Lago
Vista, TX 78645-7523; 512-267-1814.  A free guide with an abbreviated
checklist of steps to follow in developing a new name.

The Official Guide to Buying, Connecting and Using Consumer Electronics
Products, Electronic Industries Association/Consumer Electronics
Manufacturers Association, 2500 Wilson Blvd Arlington, VA 22201.  A
173-page book guiding readers through the prepurchase and postpurchase
phases of making computer and other electronic purchases.  $9 plus
$6.95 shipping.

.

Chapter 4 Financing Your Idea "Wenever understand how little we need in
this world until we know the loss of it."
-Sir James M. Barrie, Scottish playwright and novelist Margaret Ogilvy
(1896)

Survival Tip #40: Be realistic about your options.

The options for a small business startup are limited.  It is very
difficult for a new startup with no track record to get financing
through a traditional lender.  The S.B.A doesn't lend directly to
individual businesses anymore; its function is to back or guarantee
loans that are made through traditional lenders.  So, the average
bootstrapper uses piecemeal financing.  As a bootstrapper, you will
find that your funding puzzle will be influenced by several factors:

Discretionary cash: the amount of money you have that isn't earmarked
for other obligations.

Personal assets: your possessions that can be liquidated.

 Creditworthiness: your available credit lines or your ability to
borrow more.

 Moneybags connections: people who'll make you a loan.

 Character appeal: people who'll lend you unconventional support based
on their belief in you.

There are several ways to piece together your funding puzzle.

Dipping into personal accounts or rechanneling wages, bonus or
unemployment checks are Capital options.  Also, foregoing some
lifestyle comforts can help your account balances swell.  Some people
make loans part of their investment portfolio.  But remember that
wellheeled folks will be more receptive to your asking for a loan if
you present it as a business opportunity proposal rather than a
beggar's request.  And although a small enterprise with no track record
will have difficulty securing a commercial bank loan, more banks have
begun marketing specialty loans where approval of a one-page
application can land you an unsecured credit line or loan ranging from
$2,500 to $50,000.  Wells Fargo, for instance, has learned up with the
National Association of Women Business Owners (NAWBO) to assist
creditworthy females nationwide.  If you have a good personal and
business credit record and have been in business for two years, you may
qualify for a $5,000 to $100,000 loan from this program.

Most business loans do require your business to have been in estence
for a while, so tapping your personal credit line may be more
appropriate if your business is still in the startup phase.  Options
could include taking out a home equity loan, borrowing against or
liquidating a retirement fund or using a credit card.  (Remember to
carefully weigh the pros and cons of each of these options before
forging ahead.

If you pull money from a retirement fund, for example, the penalties
and tax liability you incur may not be-offset by your business's profit
gain.  If you use credit, it's important to understand that it's not
always easy to juggle the payments.  If you decide to pull funds
earmarked for something else, make sure that putting them toward your
business is a better use of these resources.) Your possessions may be
hidden sources of rash.  Selling a car or hosting a neighborhood garage
sale can help you raise cash quickly.

Lastly, a business can be funded on your personal integrity.  The
vendor who releases supplies based on a handshake or the landlord who
Financing Your Idea gives you a lease with no money or deposit are
financing their confidence in you.

Survival Tip #4 1: Don't spin your wheels chasing down "free money."

A persistent he is traveling through the entrepreneurial community:
There are millions of dollars in grants available to start a business.

This false notion has many talented souls wasting time trying to track
down government agencies, private foundations and organizations who
will fund their dreams.  The truth, however, is that few groups give
individuals money to finance a startup.

While researching business grant sources for an article, I became
curious about how this myth got started.  Well, it started (and
continues) with ads, infomercials and books that promise to help you:
Rake in $1, 000, 000 per year by getting free grants or Milk Uncle
Sam's free business grant programs.  These ads ask readers to send in
money to get information on free money that doesn't really exist.

Don't be duped, my friend.

Essentially, the companies that place such ads will provide you with
the names of organizations that are listed in directories of
foundations and sources of grants.  The companies and organizations in
these books provide fellowships, scholarships and grant money to other
organizations.  The majority of the available grant money is really
targeted at nonprofit organizations and government agencies, according
to Norton Kiritz, president of The Grantsmanship Center in Los Angeles.

These groups use the money to fund a variety of special projects such
as community revitalization, job training or research.  A hrnited
amount of money is granted to individuals for scholarships and
financial aid or to fund artistic activities or fellowships.

Now, the reality of what's available to you.  The well-known Small
Business Innovation Research (S.B.I.R) program awards grants to
established and qualified enterprises to develop new technologies.  The
competitive program funds projects that could lead to significant
public benefit.

For example, Berkeley Systems, creators of the After Dark Screen Saver,
received an S.B.I.R award to develop soffware that helped visually
impaired people use Macintoshes.  They created "inLarge," a program
that made everything on the screen look bigger.

Other options for cash-strapped entrepreneurs include cash awards,
prize money or mini-grants offered by a dwindling pool of
organizations.  Some of the legitimate ones are listed at the end of
this chapter.  You may find something you're qualified for in Gale
Research's Awards, Honors and Prizes, a library reference directory of
more than 20,000 sources.  You should also check various
entrepreneurial magazines, such as Entrepreneur or Home Office
Computing.

Some of them have their own contests and award programs that come with
prizes.  Otherwise, read on.  This section will show you other funding
solutions to consider.

Survival Tip #42: Understand what interests venture
capitalists-opportunities with multimillion-dollar potential.

You may be thinking: "If I could just get my hot idea connected with a
deep-pocketed financial guru, everything would be okay."

.Think again-it's not that easy.  Venture capitalists-a group of
wealthy individuals, government-assisted sources or major financial
institutions-are in the business of making equity investments.  While
they receive thousands of hot propositions annually, they ultimately
invest in only a handful.  The hkehhood of you and their dollars
becoming coupled will depend on how closely your opportunity matches
the venture fund's goals.

Capitalists generally specialize in one or a few closely related
industries; they're interested in opportunities with the potential to
become major regional or national concerns and expect to earn 10 times
their initial investment in less than 10 years.  V;Mle some capital
funds look for exciting opportunities to kick into high-gear the next
America Online, Staples or Federal Express, many invest in household
names unknown.  Some are interested in startups while others are only
interested in those with an established track record.  They're not
merely your source of funds; they work as part of your management team,
bringing hands-on assistance and business experience.

Your business plan will be critical in piquing an investoes interest.

A venture capitalist will scrutinize how thoroughly you address the .

Financing Your Idea opportunity's potential in your business plan and
will also examine the background and skills of those who manage your
business to determine if they are capable of making it grow to the
level projected in your plan.

If you feel venture capital is an ideal source for your business,
you'll need to find the kind that funds the type of opportunity you're
offering and grants the dollar amounts you need.  Don't spend your time
courting a Mismatch.  You should begin your search locally and branch
out from there.  Venture capitalists are known to make investments
through referrals.  You may find some connections through Small
Business Investment Companies (SBICS) and venture capital associations.

Survival Tip #43: Match your qualifications with a microloan.

Hundreds of community-based organizations are helping to promote
entrepreneurship through micro lending.  Private and SBAbacked
agencies, make loans to qualified individuals from a few hundred
dollars to $25,000.  The loans can be used for startup, expansion
working capital or equipment or supply purchases.  The borrowing
criteria is based on the lender's belief in your integrity and the
soundness of your idea.

Matching your needs and qualifications with a local lender may be your
biggest challenge.  The lender programs do not operate under uniform
practices.  Many of the programs have target audiences, such as women,
minorities or low-income groups.  Working Capital, for example, lends
only to existing businesses in New England's rural areas.

Some programs do not impose set income restrictions on borrowers.

Their focus may be to stimulate job growth for the community.  You'll
find that some lenders make loans directly to individuals while others
make peer-group loans.  In a sohdafity circle, people work together to
obtain financing, determine the loaning order and influence each
other's ability to borrow more based on the group's repayment history.

Also, most programs offer you technical assistance, and some may
require individuals to complete a business training course as a loan
requirement.

Mike Stamler of the S.B.A public affairs office points out some common
misconceptions surrounding the programs:

1. Although women and minorities may be the targeted audience, the
programs are open to others, as well.

2. People think the dollar amounts are too minuscule to make a
difference, when, in fact, a small cash infusion can be a lifesaver.

3. Your business doesn't have to be full-time to qualify; many of the
recipients are running part-time ventures along with regular
employment.

4. The money is not a character grant-you will be expected to pay it
back.

You can find out if there's a program in your area by contacting your
local S.B.A or economic development office or small business development
center.

BOOTSTRAPPIN" MICROLOAN STRATEGIES

it's a misuse of your time to pursue unlikely sources of funding.  You
can redirect that same effort into creating your own microloan ftmd.

Con sider these strategies-they may net you a few hundred to a few
thousand dollars in cash or goods:

Cash in on focus groups.  Market research groups are always on the
prowl for willing participants to evaluate products or services on
behalf of their corporate clients.  Business owners and entrepreneurs
are ideal candidates for many of the products.  Marketing consultant
Pamela Carden-V.

was part of a computer-literate, home-based business owners' group who
evaluated multiple-use office equipment.  The two- to three-hour
sessions pay anywhere from $75 to $150 cash for your time, depending on
the group.

Interested?  Look in the yellow pages for market research firms in your
area.

yourself with a corporate or government benefactor.  If your offering
includes the use of special materials, some companies will actually
loan or give you items from their product line to support you in your
efforts.

For example, someone developing an aluminum or energy product could
approach respective manufacturers or goverrunent agencies.  In
exchange, you would acknowledge the use of their product on your
labeling, promotional materials and so forth.  Approach a company's
public relations or community outreach department with your request. 
Prepare a presentation letter explaining what you're doing and how both
of you would benefit from the .

Financing Your Idea arrangement.  Make it clear that you're not asking
for money but for product or material support.

Call in your deposit markers.  Retrace any security deposits you've
made.  If they were reftmdable after a specific time period, you should
follow up to get them-requesting cash instead of credit.  A law in Los
Angeles, for instance, requires landlords to make interest payments at
least every five years on security deposits.  Depending On the deposit
amount and interest rate, you could have a nice chunk of change.

Take advantage of home computer loan programs.  Many employers offer
interest-free loans to their workers to buy computer equipment.

The loans are usually paid back through payroll deductions.  This could
be an ideal way to buy equipment for a new or existing business.  Check
with Your spouse's or loved one's employer.

Demand compensation for others' mistakes.  In 1995, Pacific Bell took
out ads explaining to customers that they were conducting billing
audits.  The telephone carrier encouraged people to contact them if
they felt they had been overcharged through late payment charges,
returned check charges or service restoration charges.  Credited
amounts were tabulated with 12-percent interest.  If you had been
overcharged, you had the option of credit or cash, totg several
hundreds of dollars.  Be on the lookout for ways that you can initiate
the process of making businesses accountable for their blunders.  You
may have some money due you, too.

Replace variety gift requests with business ones.  For your birth day,
anniversary, graduation, retirement and even your wedding, don't be shy
about making your requests known.  This is an excellent way for others
to support your venture.  My brother, David, and I started this
tradition years ago.  We've exchanged everything from software to
transcription re corders to professional organizers.

Survival Tip #44: Incur debt in moderation-it'll save your sanity.

imagine yourself in this situation.  Bootstrapper Nicholas desperately
needed Consumer Credit Counseling to help him.  He was buried under
$60,000 in credit cards and business debts.  He had two choices: to
file bankruptcy or to come up wilh a repayment plan.  Nicholas viewed
filing bankruptcy as the easy way out, so he opted to pay back his
obligations.  First, he was able to get his partner to assume most of
the debt and assets of their failing business, which reduced Nicholas's
obligations to $30,000.  Next, he committed to a debt management plan.

it took him four years to work his way through the indebtedness-he now
only chooses unsecured debt he can afford to pay back in full.

Running a business comes with a built-in stress factor.  When you
become heavily leveraged, the pressure is multiplied a hundredfold.

Sure, your business may need to carry some debt for startup, growth or
expansion.  But don't be foolish.  Incurring bills frivolously is bad
debtverything around you will be owned by someone else.  Good debt
helps you take advantage of opportunities.  Bad debt: using credit as a
regular substitute for income.  Good debt: financing a copier to
eliminate frequent trips to the corner copy shop.  A casual attitude
about debt is bad.  Strategically and thoughtfully approaching debt
decisions is good-you accept the financial responsibility based on your
realistic comfort zone.

Overextended bootstrappers make business decisions out of desperation,
not savvy.  Your flexibility will be hampered because you'll be too
indebted in an area to pursue a new or better direction.  Growing on
cash flow while managing moderate debt is okay.  It may take you longer
to build, but your business may last longer, too.  You just have to
decide how you want to spend your nights: going to bed a little hungry
or dreaming endlessly about all your bills.

Survival Tip #45: Refine your juggling skills before you begin the
credit card financing act.

You've heard the stories before.  The movie director who used dozens of
cards to finance his first film.  Or the three partners who applied for
100 cards simultaneously and got $500,000 in credit lines to jumpstart
their company.  Personal credit cards are one of the top three vehicles
for financing a business.  They're easy to get for a person with an
unblemished credit history who receives solicitations regularly.

And they're easy to use.  Where else can you get instant money with no
questions asked?  Before you begin flirting with the card system,
consider a few points.

Plastic is expensive money.  If you use it as a short-tenn loan, say to
make a badly needed purchase, and are able to Turn around and zero the
balance out quickly, that's fine.  It's when you use it as your sole
source that things can get complicated.  When you have little or no
cash flow, you'll be unable to pay down a high (or increasing) balance.

You, in Turn, may need to have more cards to finagle around the .

Financing Your Idea payments.  You know, robbing plastic Peter to pay
Paul.  Low introductory rates don't last forever, so you may find
yourself scurrying around just to cover the interest payments.  Even
worse, when you have a personal emergency, your cards Will already be
tapped out, with no plastic to depend on.

There are future implications as well.  Even if your credit remains
intact during the card juggling process, you may have problems
obtaining other types of loans later.  The lending world uses the five
C's of credit analysis: capacity, capital, collateral, conditions and
character.  Along with evaluating your capacity to pay back a loan,
lenders look at your potential to run up other debt.  If you have five
open credit card accounts with hrnits of $10,000 each, you can
potentially run up $50,000 in obligations that could interfere with
your paying back the loan in question.  So if plastic is your only
option, use it judiciously.

Survival Tip #46: Consider the pros and cons of unconventional sources.

.

I.

The best capital source may lie within your intimate circle.  It may be
a parent, relative or friend.  They're unconventional sources because
you can get amounts equal to what you'd get from a traditional lender
(such as a bank), but you can work out the terms of the loan with the
person, plus there's no scrutiny of your credit history.

You'll need to be careful-nothing can sour a relationship faster than a
misunderstanding about money.  Approach only those who you like and who
can afford to lose some money or will not need it back light away.  It
goes without saying that a loan from someone you find difficult to get
along with will only put more strain on your relationship with that
person.

In More than Money, a newsletter forum for people with financial
surplus, the readers discuss success strategies they use in making
personal loans.  You may find the suggestions adaptable to your
situation.

If the loan is $5,000 or more, one reader requires that a small
percentage of the amount be placed in an escrow account.  The reasoning
is that it forces borrowers early on to begin using outside
professionals in their businesses.  There are power issues associated
with a loan situation, and you can flush them out through candid
conversation.

You should thoroughly discuss how you feel about asking for the loan
and how the other person feels about granting it, the previous loan
history between you and the type of communication required if things go
awry, then define what mutual respect will mean throughout the
relationship.  You can then solidify the deal with a written agreement
drawn up by a professional, stipulating a repayment schedule and other
agreed-upon points.

Diverting funds from other accounts is another unconventional strategy.

If the money is intended for something else---an emergency or college
fund-you need to consider whether your plan is a better use of the
dollars.  For example, a bootstrapping couple in New Jersey received a
$5,000 windfall.  Based on their investment preferences, a planner
advised them that putting the money to work in their candy store was a
better investment at this time.  By taking time out to mull over your
moves, you'll avoid ending up on the downside of the choices.

Survival Tip #47: Attract angels of support by selling them on your
vision.

Although venture capitalists can be considered angels, the title can be
bestowed upon other sources, too.  It may be a supplier, colleague or
pillar in your community.  Your best help will sometimes come from
people who don't even know you but are willing to help.

You need diligence to find them and courage to ask for their support.

Here's an example of someone who was touched by an angel.

Just call Naimah Jones, of Naimah Cosmetics, a visionary.  Based on 15
years in the beauty industry, she envisioned a niche line aimed at
women of color.  Her dilemma: a great idea with no money to finance it.

Instead, she coordinated a consortium of professionals who could
benefit from being a part of this ground-floor opportunity.

Working from an illustrated picture of her concept, Jones secured a
tentative commitment from a major Southern Cahfomia department store.

Her angel circle included a manufacturer, who produced samples based on
the store's mere interest and later more goods worth $80,000.  What's
more, he agreed to wait six months until she got paid.  The other
players included a photographer, who charged her material costs, and an
artist, who accepted delayed payment terms.

.

Financing Your Idea Their deal: make us your primary supplier when the
company gets off the ground.

You can solicit the support of others by involving them in your vision.

Be your own best salesperson and show them the potential of your idea.

It's important, though, that you accept help from the light people.

Someone who has reservations or lacks enthusiasm may be committing for
the wrong reasons.  Also, consider angels who can function as mentors
and can afford to remain committed to the arrangements.  Besides their
product, service or money, you'll need their emotional support.

FULFILLING A WISH TO EDUCATE A COMMUNITY

Atlanta seemed like a profitable place for a specialist in the business
of helping companies set up telecommuter programs.  The city had air
quality problems, and the 1996 OlymPic Gaines were on the way.  In
1991, Nfichael Dziak decided to package his 18 years of
telecommunications experience into a business.  He formed InteleWorks,
Inc a training and consulting firm that helps clients maximize the use
of existing and emerging communications tools.

When Dziak began marketing his services, he mired the cmmunity wasn't
educated enough to embrace the benefits of teleworking.  If InteleWorks
was going to make it, he needed to invest in educating his marketplace.

Rather than going about the task alone, Dziak decided to pinpoint stake
holders in the area who could benefit from being a part of the
telecommut ing movement.  First stop: the Georgia Department of Natural
Resources, the agency responsible for writing the State Implementation
Plan for Atlanta to meet the requirements of the Clean Air Act.  Dziak
was effective in getting the agency to understand how telecommuting was
a viable transportation control measure.  An education program,
however, was needed to help employers understand the concept.  After
submitting a proposal, Dziak was awarded a $10,000 grant from the
agency-not to find his business but to invest in the community's
education.  The monies were used to publish Georgia Telecommuting
Times, an outreach newsletter for organizations and individuals.  Dziak
was also able to form Metropolitan Atlanta Tele commuting Advisory
Council (MATAC), a nonprofit group that coordinates educational
workshops.

Both parties benefited: the state department by fulfilling part of its
public outreach responsibilities, and Dziak by participating in the
education of his targeted market.

Dziak's involvement with the outreach has paid off.  His company has
landed various consulting contracts with area employers, MATAC (www.

matac.org) has hosted five annual telecommuting education conferences
with big-name sponsors, and Atlanta did benefit during the Olympics.

There was a 50-percent decrease in peak-hour traffic.  The Olympics'
Director of Traffic estimated that one-third of the reduction was
attributed to people telecommuting.

Survival Tip #48: Put your creative energy to work.

Your biggest challenge as a bootstrapper will be to graduate from a
cash-dependent to a wit-dependent business person.  It's the only way
shoestringers make it on their budget.  When you listen to stones about
how people came up with creative alternatives to their funding
problems, it's because there were no boundaries for believing an option
was possible.  It stems from your imagination.  Children have
incredible imaginations.  When you were a child, you automatically were
able to use your mind to envision yourself in all types of situations
and places, even though you were far from it.  Remember?  It's through
free-flowing thoughts that you'll be able to see yourself through your
situation.

Jot down exactly what it is you want to do with your business and what
you need to get it done.  Ponder your notes and allow your imagination
to scan the possibilities.  Imagine the most unusual and blessed
alliances or strategies you can think of.  Then begin to connect the
dots with people, resources, events or actions that can make it happen.

If you're offering a fresh twist on a standard service or a product
others have neglected to deliver, then your newness makes you a
candidate for unique opportunities.  If you imagine yourself with a
benefactor to your cause, you'll stir up energy as you talk to people
who can lead you to one.  Your imagination may point you in unheardof
directions, but don't squelch it because your hope may he in the
thought.

A plastic visor manufacturer coneed a mold-maker to build a $20,000
mold for no money down.  He agreed to finance the project through
payments of 2 cents for each unit sold.  In the unlikely event the
product demand was fewer than a million, the company would pay the
remainder in bulk.  That's creative financing.  See what's possible
when you take the ceiling off your brain?  Now get going and begin
imagining unorthodox solutions for your situation.

Survival Tip #49: Take inventory of your possessions.

People don't hesitate to refashion a spare room or home area into a
workspace, but rarely approach their other possessions with the same
zeal.  Go through everything you own and determine what can .

Financing Your Idea be reused for your business.  Everything has
potential-furnishings, appliances, entertainment equipment, old
vehicles and more.  Your discoveries can either be sold to generate
more cash or recycled as equipment capital.

A little paint, polish and dusting can give new life to a forgotten
item.

If you're an exhibitor, look for old standbys in your garage.

Tables and chairs can be camouflaged to decorate an exhibition area.

If you're a professional caterer, look for fine table settings tucked
away in your linen closet.  If you're an event planner or exhibitor,
you can probably find good uses for unused wedding gifts such as
tablecloths, clocks, vases and frames that weren't purchased from your
registry.  Don't forget to scour rental storage space.  Bidding on
abandoned storage stalls is big business.  So if people are willing to
bid on unknown items in a space, imagine how much value you may find in
your own.  If you dabbled in various hobbies or relocated before, you
probably have some gems packed away.  And if you come across an item
that's worth repairing, have it fixed and reuse it.

When Kay Young needed money to launch her Secretarial & Office Support
Services ($OS) Quarterly newsletter, she decided to part with an
inherited item.  She took a silver set to an auction house and it sold
for more than enough to launch the publication.  In Young's heart,
"SOS" has another special meaning: sold old sliver!  There is also
another upside to the inventory-taking process.  You may be inspired to
simplify your life and donate your stuff to a worthy cause.

Survival Tip #50: Start right where you are.

Don't use a lack of money as an excuse not to go out and pursue your
dream.  Remember, it's commonplace for a bootstrapper to operate
undercapitalized.  Venturing out on your own is risky business, and
it'll start with putting yourself out there for public scrutiny.  When
you introduce your offering in small steps, your efforts will begin' to
generate more money to put back into the business.

When I started my jewelry business, my startup money only covered a
modest amount of supplies and business cards.  I was able to fabricate
about six designs, not an entire collection.  I didn't have the fancy
jewelry trunks to display my wares in.  Instead, I created a display
box by removing all the dividers from a regular wooden and glass
jewelry box and lining it with a silk scarf.  I started showing my
products to potential buyers and within three weeks I had jewelry
orders exceeding my initial capital.

Everything big starts with something little.  A professional organizer
who now commands $1,500 per day started by organizing people's garages.

A millionaire mail-order guru started with one product and one ad.  A
cookie moggul started with a very short menuthe type of cookie.  And
the infamous computer giants all started by tinkering in their garages.

You, too, can start today and watch your activities multiply.

Bootstrapper's Follow-up File Access to Credit: A Guide for Lenders and
Women Owners of Small Businesses, Federal Reserve Bank of Chicago,
Public Information, P.O.

Box 834, Chicago, IL 60604.  A free, 41-page guide offering advice to
entrepreneurs and bankers.

American Express Small Business Centers, Web address:
www.americanexpress.com/smallbusiness.  Pilot program in Phoenix, Los
Angeles and Chicago, with centers providing cardmembers with loans as
well as access to American Express experts in credit, small business
tax planning, cash flow analysis, financial reporting, employee and
retirement benefits planning.

AT&T Small Business Lending Corporation, 800-707-0609.

Provides assistance with obtaining a loan through the S.B.A!s LowDoc Loan
program.

Awards, Honors and Prizes, Gale Research, 800-347-4253.  A library
reference guide listing 20,000 sources.

Best of America Awards, National Federation of Independent Business
Education Foundation, 600 Maryland Ave.  SW, Washington, DC 20024.

Recognizes with fewer than 250 employees at least three years in
operation for their excellence in business.  First prize of $25,000;
three runners-up prizes of $5,000 each.

.

Financing Your Idea Elizabeth Twin Fund (ELF) Award, National Chamber
of Commerce for Women, 10 Waterside Plaza, Suite eH, New York, NY
10010.  Makes grants each year to male and female entrepreneurs who
want to promote their companies.  The ELF awards range from $500 to
$15,000 in cash, products, services or any combination thereof.

First Step Software Series, National Business Association,
800-456-0440.  Free program providing you with an orientation to the
S.B.A-guarantee loan program and assisting you in determining the
likelihood of receiving a loan.  DOS, Windows and Macintosh versions
available.

Guide to the National Endowment for the Arts, National Endowment for
the Arts, Public Information Office, room 803, 1100 Pennsylvania Ave.

NW, Washington, DC 20506-0001; 202-682-5400.  Free resource containing
information about various grant programs.

In-Kind Mini Grant Program, Operation Hope Inc 800 W. Sixth St Suite
1200, Los Angeles, CA 90017; 213-891-2900.  Offers free office
furniture an'd equipment to small businesses in designated Los Angeles
county communities.

Money Hunt TV Show, fax: 203-0866-4099; Web address:
www.moneyhunter.com.  Half-hour program giving entrepreneurs a chance
to talk about their business opportunity and receive a critique from a
venture capitalist.  Show guidelines are available by fax.  Web page
offers a downloadable business plan template.

More than MoneY, The Impact Project, 2244 Alder St Eugene, OR
97405-9964; e-mail address: impactCa)efn.org; Web address:
www.efn.org/-impact.  A quarterly newsletter to help people with
financial surplus take charge of their money and their lives.

National Association of Small Business Investment Companies

(NASBIC), 1199 N. Fairfax St Suite 200, Alexana, VA 22314;
703-683-1601; fax: 703-683-1605; Web address: envista.coriv nasbic.

Represents firms licensed by the S.B.A as small business investment
companies (SBICs).  Publishes Venture Capital: Where to Find It, a book
listing venture capitalists and their investment interests.  $10.

National Foundation for Consumer Credit, 800-388-2227.

Provides referrals to local Consumer Credit Counselors (CCC).  CCC
centers provide free counseling and advice to consumers having
financial difficulty and help consumers pay back their debts through a
debt management program.

National Inventor of the Year, Intellectual Property Owners, 1255 23rd
St. NW, Suite 850, Washington, DC 20037.  Programs recognizing
outstanding achievement by an inventor.  Inventions must be either
patented or first commercially introduced in the previous calendar
year.  Honor includes a $5,000 cash award.

National Self-Published Book Awards, Writer's Digest magazine,
800-283-0963, x. 633 Accepts entries of self-publishers'books in the
categories of life stories, cookbooks, children's, fiction, nonfiction
and poetry.  First-place overall winner receives $1,000 plus promotion
in Publishers Weekly.  Other winners receive $250.

National Venture Capital Association (NVCA), 1655 N. Fort Myer Dr Suite
700, Arlington, VA 22209; 703-351-5269; fax: 703-351-5268; Web address:
www.envista.coni/nvca.  Membership of venture capital organizations,
corporate financiers and individual investors.

Rural Information Center, 800-633-7701 (301-504-5547 in the Washington,
D.C. area and outside U.S.); Web address: www.nal.usda.gov/nc.

Provides information and referrals on federal rural development
programs.  Free information package includes A Guide to Funding
Resources and Federal Funding Sources for Rural Areas.

Ruth Chenven Foundation, 7 Park Ave New York, NY 10016.

Awards up to $1,000 annually to craftspeople and artists engaged in or
planning a craft or art project.  Applications available from January 1
to May I only.  Send S.A.S.E for an application.

Small Business Administration (S.B.A) Financial Programs, 800-827-5722;
Web address: www.sbaonhne.sba.gov.  Contact for phone number of your
local S.B.A office, which can give you more information on guaranteed
loans to small businesses that have been denied financing from a
commercial lender.  Such loans include .

Financing Your Idea LowDocumentation Loan (LowDoc), FA$TRAK Loan,
Mcroloan Demonstration, Women and Minority Prequahfication Pilot Loan
and Certified Development Company programs.

Small Business Innovation Research (S.B.I.R) Grants, Office of Innovation,
Research and Technology, 202-205-6450; Web
addresswww.sbaonhne.sba.gov.S.B.I.R.  Program giving small businesses the
opportunity to develop new technologies to meet federal research and
development needs.  Awards are made through the Departments of
Agriculture, Commerce, Defense, Education, Energy, Health and Human
Services and Transportation; the Environmental Protection Agency;
National Aeronautics and Space Administration; and the National Science
Foundation.

Telecommunications Development Fund, Office of Communications, Business
Opportunities, Federal Communications Commission, 1919 M St. NW,
Washington, DC 20554.  The Telecommunications Act of 1996 authorized
the Telecommunications Development Fund to provide a source of loans
and investment capital to small communications businesses.  Loan
applications and investment guidelines are under development.  Contact
the corruiussion to receive update mailings about the fund.

The Credit Process: A Guide for Small Business Owners, Federal Reserve
Bank, Public Information Department, 33 Liberty St New York, Ny 10045.

A free, 26-page workbook offering guidance to people who are seeking
outside financing for the first time.  Discusses the sources and types
of funding typically available to small businesses along with a
business plan section.

The Small Business Financial Resource Guide: Sources of Assistance for
Small and Growing Businesses, MasterCard International, 800-821-6176.

A free, 150-page book discussing various funding options and sources.

The Top Small Business Lending Banks in the United States, S.B.A Office
of AdvocacY, Mail Code 3114, 409 Third St. SW, Washington, DC 20416;
fax: 202-205-6928.  A fee study identifying the banks that do the most
small business lending.  Write or fax your request.

Wells Fargo Bank/1-4AgO Program, 1413 K St. NW, Suite 637, Washington,
DC 20005; 800-359-3557 x. 120; fax: 301-608-2596.  A loan fund for
women entrepreneurs whose firms have been in business two years.  To
apply for a loan under $25,000, call.  For larger amounts, contact the
office in writing.

Women of Enterprise Award, Avon Products, Inc 9 W. 57th St New York, NY
10019.  Annual program awarding $1,000 in cash, an all-expense-paid
trip to New York City, speaking engagements and national publicity to
six outstanding women entrepreneurs who have overcome hardship and
achieved success.  Applications available every October through
January.  For application package, send 9 x 12 S.A.S.E with $1.01 postage.

.

Chapter 5 luarketin Your Busitness "Marketing is always a work in
progress."
-J.  Daniel McComas, Advertising Ideas, Inc Silver Spring, Md.

J/

Survival Tip #5 1: Gear up to become a lifetime mareter.

Marketing is an activity that you'll be involved with for the entire
life of your business.  So brace yourself In various surveys, small
business Professionals frequently cite two nagging challenges: (1)
getting new business or clients and (2) promoting and growing their
businesses.  The prescription: marketing.

Marketing is much more than advertising the fact that you're in
business.  It involves everything you do to obtain and keep a customer,
from conducting market research, developing a customer profile and
Positioning your identity in the market to selecting marketing devices
to determining your location, how your phones are answered and how you
handle customer complaints.  (you will learn more about each of these
aspects of marketing in this chapter.) .

Staying in business also requires that you continually educate the
market about your offering.  Even when you have a solid, steady
customer base, you need to keep them informed as to how you're growing,
improving and preparing for and responding to marketplace changes-and,
more important, to their needs.  You can do this through a systematic
marketing program.

A marketing program consists of the strategies and devices you use to
communicate to your target audience.  Your program may look a little
different from mine or from that of a shop owner across the street.

We all have dozens of tools available to uect response mailings, TV and
radio spots, newspaper and yellow pages ads, brochures, community
involvement, public relations, billboards, advertising specialty items
and more.  Which tools you use-and how-will be influenced by market
research (see Survival Tips #15, #18 and #54).

Market research may indicate that a television repair service's
marketing program should be undergirded with paid placements in the
phone book, since "television repair" is one of the most often
looked-up headings by homeowners.  Consultants, on the other hand, may
find that an aggressive public relations campaign will sell people on
their expertise.

. Marketing shapes every area of a business.  Your business's life span
is controlled by how effectively it's marketed.  Marketing helps you
penetrate a place in your audience's mind, positioning your business at
the top of their mental awareness.  They in Turn automatically identify
your business as the solution to their problem or need, thus creating
your share of mind (see Survival Tip #73).  It doesn't happen by
osmosis.  You have to work continually at communicating your marketing
message.

Don't let your inexperience frighten you.  You can become a savvy
marketer with practice and commitment.  The average small business
owner does not start off with marketing small specially those of us
coming from workplace positions in which we didn't have to worry about
such things.  You can learn how to market yourself by observing others,
heeding basic principles (such as targeting your marketing to ensure
that the message reaches the people you want to attract to your
business's product or service), adopting strategies appropriate for
your business type and sticking with a marketing plan (a step-by-step
approach for communicating your message to a defined buyer).

.

Marketing Your Business Small businesses that flourish in today's
marketplace are operated by individuals with a marketing m-
and-set-people who use creative, cost-effective ways to attract and
retain business.  A restaurant owner is profiled in the paper for
making daily donations of leftovers to homeless shelters.  A graphics
designer, photographer and printer use a three-way promotional approach
by pooling their talents to create a customer giveaway calendar.  A
business owner takes advantage of being listed in various industry
directories free of charge.  Learn from these people.  They've all
learned how to be bootstrapping marketers.

It's an ongoing process-and it's a commitment for life.

Survival Tip #52: Don't make your investments around misconceptions.

Marketing is a business investment.  Its greatest dividend: prompting
clients and prospects to think of you first when it's time to spend
their money.  You'll fare best by investing your resources-time,
creativity or cash-in strategies that work.  Before you begin, listen
to these misconceptions about marketing that you'll want to sidestep.

One of the biggest misconceptions is that marketing results are even by
your budget.  Quite the contrary.  High-impact strategies are usually
low-cost ones fueled more by creativity and time rather than money (see
"Bootstrappin' marketing strategies that will leave your competition in
the dust" on page 100-103).  As you develop your marketing program and
weapons, shift your focus from ',how much" to "how effective."

Another mistake people make is failing to recognize the true importance
of frequency in marketing.  Consider this: Research shows that
consumers need to hear a message at least three times for them to have
name recognition and recall and nine times before they become a
customer.  A one-time ad or mailing is rarely enough to generate even a
1- to 3-percent response rate.  You must invest in strategically
repeating your message to capture people's attention and ultimately
sway a buying decision in your favor.

A third misconception relates to the number of marketing vehicles
people may believe are necessary.  The truth is, most businesses do .

not rely on a single tool.  Even a business that thrives on yellow page
advertising complements that tool with other weapons.  Marketing isn't
a single activity.  It includes a combination of tools and techniques,
such as a strong word-of-mouth referral program, direct response,
exhibitions, distinctive business cards and stationery, community
outreach, program tracking, customer service follow-up and more.

Investing in a marketing mixture yields results similar to those
achieved by business professionals who have multiple income sources;
should one source slow down or evaporate, you'll have other options to
fall back on.

Survival Tip #53: Chart your course with a marl(eting plan.

Many operations plug along without a business plan.  However, few of
them survive without a plan of attack for marketing their businesses.

A marketing plan works as a survival as well as a preventative tool.

It'll keep you on track when you're tempted to react impulsively to a
dip in business or fall into the deadly trap of lowering prices to keep
pace with your competitors.  Successful businesses are proficient at
attracting and keeping customers by satisg their needs.  A written
marketing plan provides you with the methodology for doing so.

Pull out the research you've gathered on your customers, marketplace,
competition and trends (see Survival Tips #15 and #18).  Use this
research as your cornerstone to help you spell out each area of the
plan.  A simple, effective marketing plan can be created around these
four components:

1. Objective: What is it that you need to accomplish?  Clearly
articulate the purpose of your marketing in terms of specific goals,
quantifiable results and timetables.  Example: Best Cleaners'
marketingplan ' will help increase customer referrals and repeat
business by 50 percent in 12 months.

2. Marketing mix: How will you position your business in the
marketplace?  What should your marketing message communicate about your
identity or niche to a target audience?  Your marketing nux should work
in concert with your product or service, price, place, Marketing Your
Business promotion and position.  Clag each of these areas for your
business will help you select the most complementary approaches and
tactics for your marketing program.  Define your:

 Product and/or service: Best Cleaners 's a specialty dry cleaner
whose treatment process keeps Your clothes looking new.

 Price: Best Cleaners is value-driven as we save customers thousands
in garment replacement costs.
- Place: Best Cleaners is conveniently located near a commuter
intersection, with ample free parking.

 Promotion: Best Cleaners is the town's quality cleaner.

 Position: Best Cleaners is the only operation that offers pickup,
delivery and drive-through service.

3. Execution strategies: Which marketing vehicles are the best to
deliver your message?  Example: Best Cleaners will use two-for-one
specials, neighborhood coupons, season-end customer postcard ma'lings
and special offers in community newcomers'packages.  We will mail out
coupons every month, run a weekly ad in the local paper and offer a
back-to-school special in August.  We'll begin to develop our mailing
list from infor7nation we pick up from the personal checks customers
pay with, and our ads will reach people within a 7-mile radius.

We've earmarked 30 percent of our annual revenues for this program.

4. Results tracking: How will you determine the effectiveness of your
activities?  whether it's through sales, customer base activity or
profits, you'll need to audit each device continually.  For example,
Best Cleaners could code their newspaper coupons by geographical
distribution.

These base components can be expanded or retooled for any business.

Don't ignore gray areas; they may be a signal for more market research.

Your marketplace position should set you apart from your competition.

You should be able to substantiate your position with the competitive
research you've done.  Best Cleaners, for instance, knows that it's the
only one offering all the available convenience services, based on
snooping on other cleaners in the area.  Although you should make a
commitment to execute the plan, feel free to revise or update it as
your goals or business needs change.

Survival Tip #54: Choose the right marketing vehicles.

.

The effectiveness of any vehicle will depend on what you're marketing.

Survey responses from my newsletter network substantiate this point.

When asked to share their best and worst marketing strategies, readers
discounted some popular tools and heralded some unpopular ones.  For
example, for one computer consultant, joining the chamber of commerce
was a dud while volunteering to lead a specialinterest group's monthly
software roundtable led to referral success.

Cable television advertising drained another bootstrappers pockets, but
presenting free seminars produced desired results.  Before you dispatch
any marketing vehicle, ask yourself three questions:

1. How compatible is the tool with your marketing goals?

Let's say that you're aiming to build customer loyalty that leads to
repeat business and referrals.  Your market research leads you to the
Promotional Products Association International.  Their studies show
that advertising specialties-merchandise imprinted with your name or
message and given free-are effective in this area.  Furthermore, the
more useful the item, the more likely customers will keep and use it.

In this instance, the item's usefulness would directly effect its
compatibility with your marketing goal.

2. Does your type of business use one particular marketing tool more
often than the others?  You must know the nuances of your business
first (see Survival Tip #19).  For example, classified ads fuel some
businesses while others use flier distribution effectively.

For restaurants, local newspaper ads are effective because most
restaurant clientele come from a 3- to 5-mile radius.  Local storefront
shops find success with coupon advertising in community mail packs or
on the back of receipts.  Scanning a stack of my own grocery receipts
reveals ads from such neighborhood regulars as a car wash, a dry
cleaner, an auto repair center, a dental center and a storage facility.

. .

Marketing Your Business

3. Is your knowledge of the marketing tool limited?  A device will only
work when you know how to work it well.  Let's say you decide to send
out a direct-response mailing- You've read that personalizing letters
yields a better response than senffing out generic ones, so you try it.
 But before you send them out, do you have a follow-up system outlined,
which may include a series of phone calls, postcards, consultations or
premium offers?  There's more to this strategy than sending out letters
and waiting for the responses to roll in.

If the tool in question is a go on all fronts, make sure it is
wellproduced.  You won't get big results from amateurishly produced
materials or presentations.  Develop a file of writers, artists,
proofreaders or other marketing professionals with whom you can work or
barter.

Survival Tip #55: Uncover a niche.

.

Authors Donald K. Clifford, Jr and Richard E. Cavanuagh studied 6,117
small companies that had grown four times faster than the Fortune 250.

Their research found that 90 percent of these inns competed in
small-niche markets.  Their success lay in being driven by customers
rather than sales-their marketing was aimed at a small, reliable and
qualified pool of buyers.

Your business may start off with a targeted audience.  Through the
years of observing market trends and regularly communicating with your
buyers, you may find a niche inside your group.  There are few ways to
discover a niche market.  Niches can be found by unearthing the
idiosyncrasies of your target audience (see Survival Tip #20).

Perhaps their idiosyncratic behavior is not being serviced in a
particular manner or format.  For example, for customers who'd like to
shop from the comfort of their homes, a clothier could offer private
showings in their homes in addition to a boutique operation.  You
can,also find niches by observing what your competitors are failing to
do.

Norm Brodsky, a veteran entrepreneur and an Inc. magazine columnist,
discovered a profitable niche with his storage company, Citistorage.

When Brodsky first looked into the business, he discovered that
records-storage companies weren't responding to industry changes.

Clients were looking to store active files, as well as dead ones,
off-site.  With the exception of a few major companies located outside
the metro area, nobody was catering to the evolution of the archive
retrieval business.  Brodsky invested in a huge modern facility in the
city.  He distinguished himself from the old records-storage companies
by designing his facility specifically for retrieval of active files,
and he used the latest technology.  He also distinguished himself from
the giants by his location within the city, thereby creating his niche
market.

Be open to experimenting with several niches before finding one that's
a perfect fit for your business.  As you discover or evolve into a
niche, you'll need to refine your marketing messages.  You'll need to
communicate the differentiating factors that are important to the
customer.  For example, if serving your niche means having such
strengths as speed, service, exclusivity or specialization, everything
in your marketing arsenal must cohesively tout those qualities to
customers.

Survival Tip #56: Hammer home your message with a focus test.

.

.

When you give people a jack-of-all-trades description of your business,
you'll only confuse them and make it difficult for others to work as
your marketing mouthpieces.  Developing a focus statement will enable
you to give a clear, concise and intriguing response when people ask
what you do.  There are other benefits as well.  A focus test, an
exercise to cansel out a pithy description of your business, will help
you define your product or service, clarify your marketing message and
remember the business you're in, which is critical as you filter
through opportunities that come along (see Survival Tip #103).  The
more focused your business is, the more responsive people will be to
you and your offering.

Begin the exercise by writing an editorial description of what you do
in 25 words or less.  Write what comes to mind.  If it's a little
clumsy, don't worry because you'll spiff it up in a minute.  Your
description should include what your product or service is, how it
benefits the user and the problem you solve or action you perform.

Read over your description.  The next step is to take that description
and Marketing Your Business make it punchy.  Here's an example for an
advertising specialist: "We create ads that boost your profits in 60
days.  We specialize in helping retailers lower overall advertising
expenses while generating more store traffic."  This 24-word statement
captures what the company does.  Each sentence can also work as a
standalone 7- to 15-word statement to pique the listener's interest in
15 to 20 seconds.  It will also inspire the question "How do you do
that?"-opening the door for you to go into more detail about your
offering.

By keeping your descriptions simple, you can use them to pass the word
about your business in discussions with anyone from an associate to
your dentist, as well as use them in your directory listings, ads or
quotes for media representatives.  You can also use the phrasing to
develop your slogan-an attention-getting phrase such as "The 60-day
Profit Boosters."  By using the same or similar phrasing, your message
is communicated consistently to the market and helps develop "share of
mid" (see Tip #73).

Survival Tip #57: Marleet your product like a product and your service
like a service.

A product is tangible.  A service is intangible.  Their difference
affects how you market each one.  A product gives you great
flexibility.

You can see and touch it, take it home, resell it and even return it
for a refund.  When you like a product, you might buy it even if you
don't like the person selling it.  Think about it.  The sensory process
has helped you determine the product's value to you and your situation,
thus you proceed with the transaction.  It's nothing personal between
you and the seller.

More and more products are being sold in an impersonal wayand it works.

For example, people make large purchases over the Internet, through
catalogs and through direct-mail advertisements.  A product marketer
with a selection of quality merchandise can increase its audience's
responsiveness to this method of selling through clear descriptions,
good photographs, stock ready to ship, an easy ordering method and a
no-hassles return policy.

Selling a service, on the other hand, is personal.  The value or
perception of a service is connected to the person who's selling it.

Buyers .

don't always know a service's value until the servicing process is
complete.  Your challenge is to help them see the connection
beforehand.  As a service provider, you're trying to woo buyers on the
intangible promise that you'll deliver what you say, and furthermore,
that you're the person for the job.  Your presentation must market this
promise so that it becomes tangible to your clients.  A hairstylist,
for example, may gain a new customer because that person saw the
haircut he or she gave to someone else.  Service providers sell
themselves primarily on their past performance or ability to convince
buyers of their qualifications.  You can accomplish this through
testimonials (what others say about your work; see Survival Tip #84),
media marketing and public relations placements establishing yourself
as an expert in the public's minds, speaking before an audience about
your profession and case studies of how you solved others'problems.

Consultant David Calabria says that his marketing needs to inspire
confidence in his expertise.  Direct-mail letters, for example, were
ineffective in building his practice.  Instead, his target audience
started flocking to him once they began regularly reading his byhned
articles and occasional quotes in their favorite periodicals.  As you
can see, some strategies that work for a product may not be effective
for a -service.  Most services require personal contact marketing, such
as a personal consultation or an opportunity to see you demonstrate
your work.  A computer consultant, for example, may offer the first
assessment of your computer needs at a highly discounted rate-or for
free.

You can begin to match the right approaches to your product or service
by examining your own buying habits.  What vehicles make you responsive
to buying a service from someone?  Or which factors influenced to you
buy an item without even seeing it first?  Also, evaluating thevarious
tools and techniques that have made certain products and services hot
sellers in the past can aid you in the matchmaking process (see
Survival Tip #18).

Survival Tip #58: Use flexibility to generate high-quality inquiries.

An overlooked marketing weapon: flexibility.  It's an intangible but
potent tool.  You can put it to work by developing a response menu.

Offering multiple response devices so prospects can choose the method .

Marketing Your Business they prefer makes it easier for them to
respond.  For example, some people need your information right away, so
they prefer to call.  Some like the 24-hour convenience of taxing or
e-mailing their requests.

Others may opt to sent a postcard or letter or use reply cards.  Many
people fall into the trap of offering only one response method, such as
just a phone number or mailing address.  when implementing this
strategy you should factor in your professional style and business
setup.  You'll need to ensure that your infrastructure is designed to
respond efficiently to all those requests (see Survival Tip #59).

Next, let prospects choose which follow-up action they would like you
to take.  Rather than offering inquirers one information option, try a
combination of two or more choices, such as pointing them to your Web
page or offering catalogs, brochures, application notes, a newsletter,
a demonstration, a test or analysis, samples, a sales call or any
combination thereof.  This will significantly increase the number of
inquiries you generate.

There are some hidden benefits for you in this tactic.  You can
determine which prospects require prompt attention by their request
choice.  Those with an immediate need will probably require a sales
call, analysis or demonstration.  Those who have longer-tenn needs, or
are not ready for meeting, might ask for literature, application notes,
a newsletter or a sample.  You can then use this information to code
prospects in your database and assign the appropriate follow-up steps.

This way, you're pouncing on your hottest prospects while
simultaneously coaxing the other ones along.

Survival Tip #59: Develop a marketing infrastructure to carry forth
your banner.

You work against yourself when you're not prepared to respond to
opportunities that result from your marketing efforts.  Scrambling
around to piece together requested information will either slow down
your response process or deter you from responding at all.  The
solution: Develop a systematic way to respond to all opportunities.

Begin by evaluating all of your response methods (see Survival Inp
#58).  Let's say that you provide buyers with the option of contacting
you by fax or e-mail.  In order to respond quickly to their queries,
you should have materials that can be sent via those same mediums.  For
example, .

when I started including my fax and e-mail address on my newsletter, I
developed a taxable promotional sheet as well as a standard e-mail
reply file.

Here's an example of a marketing infrastructure at work for an
entrepreneur who works as a small-business coach, speaker, consultant
and author.  A product brochure, which doubles as a flier and catalog
(see Survival Tip #72), is printed in lots of 2,000; the master copy is
updated as postal rates change or new items are added to the line.  A
one-page taxable business biography along with hundreds of
black-and-white photos are maintained on file.  The consultant keeps an
updatable resume on computer to include in consulting and seminar
proposals.  Customized Post-it notes are used to write notes that
accompany a flier or newsletter.  The entrepreneur's mailing list is
ever growing because contacts made through seminars or networking
events and all information-requesters are entered on the list.  This
provides a ready database of recipients for a chrect-mail campaign.

Your infrastructure may include a portfolio of your work, quality
reproductions of articles about or by you, or an informational sheet of
frequently asked questions.  One bootstrapper developed a standard
packet for customers that included coupons for referring new customers
to her business, along with extra business cards.  When you use this
type of strategy in your business, you deliberately (not just by
relying on a few loyal customers as your mouthpieces) pass the word
about your business at every opportunity.

A marketing infrastructure positions you to cherry-pick your
opportunities and seize the most profitable ones.  If you don't pursue
an opportunity, it'll be because you chose to bypass it, rather than
because you missed out since you weren't set up properly to respond in
time to get additional consideration for the job.

BOOTSTRAPPIN' MARKETING STRATEGIES THAT WILL LEAVE YOUR COMPETITION IN
THE DUST Befriend an office building concierge.  Many high-rise
business complexes employ concierges.  Their job involves providing
tenants with convenience services and maintaining a referral network of
local businesses.

One building concierge spotlights area businesses in a monthly
newsletter and allows each one to come in to give demonstrations to
tenants.

For .

Marketing Your Business example, one week tenants could try in-office
massage services or attend a lunchtime debt management seminar
presented by a financial planner.

Businesses that are mobile, such as an auto detail service that works
on your car while it's parked outside the building, a dry cleaner with
a pickup/ delivery service or a notary public, have particular appeal
for tenants.  The building concierge arranges these kinds of
conveniences for them.

These high-rise buildings often host other events, such as
transportation fairs, which could be a fit for Your business.

(Transportation fairs are popular in cities that are trying to comply
with clean air regulations.  Businesses such as the local transit
authority, bike shops, health and fitness organizations and auto repair
shops exhibit at these events to educate attendees about the
alternative ways Of commuting to work and how to reduce air emissions.)
The concierge coordinates all the promotion for such events.

Your participation would give you invaluable exposure-tenants may infer
that you must be worth checking out if the XYZ Building is allowing you
to exhibit there.

Steer foot traffic into your store.  An open door is not enough to
bring in customers.  You need clever approaches that invite people in.

In Chase's Annual Events: The Day-by-Day Directory to 1997
(Contemporary Books, 1997), a directory that's available in most libres
and updated every year, there are more than 10,000 events and
observances ustranslating into foot traffic opportunities for you.

For example, October is National Breast Cancer Awareness Month.  The
American Cancer Society (ACS) and various organizations host a
tremendous amount of public outreach activities during this time.  The
ACS provides businesses with free literature to distribute.  If you ran
a boutique, a health and fitness club or a beauty salon, you could
chime in, too.  A press release announcing your participation would
surely pique the media's interest and result in positive press.  People
who come into your store to pick up the health material may not have
dropped by otherwise.  Of course, you should be prepared to encourage
them to browse your shop while they're there.  No matter what kind of
business you own, you could find a similar event tie-in for your
business by looking through Chase's.

Get on bidders' lists.  Arrange to get on the lists of city, state,
government, corporate or other agencies to receive request for proposal
(RFP) solicitations.  By doing so, you'll be kept abreast of changes
taking place in your local community that will affect job growth and
economic development.

You can also use the information to spot trends or new markets to
exploit.

You'll be privy to the names of companies who are awarded the contracts
and can possibly align yourself to receive some outsourcing work.

Claim the co-op advertising dollars youre due.  Cooperative advertising
is a cost-sharing arrangement between a manufacturer and a retailer for
customers' advertising programs.  The money is earmarked to help
businesses stretch their advertising dollars.  Yet studies show that
billions of dollars go unclaimed each year.  Whether you're a full-time
retailer or own a service business with a retail center, you should
pursue co-op opportunities.

Let's say you carry XYZ brand in your business.  You can become a
registered dealer of XYZ company, and when you feature them in your ad,
you get cash rebates or credits to your account toward more product
purchases.

Also, by including that brand in your ads, youre helping customers find
an outlet based on brand recognition.  Co-op opportunities are
available in every medium, from yellow page listings to print ads to
radio and TV spots.

You can search for co-op opportunities by referring to a copy of Co-op
Source Directory (National Register Publishing, 1997) at the library;
this book is updated each year.  Another information source is Sales
Development Services (1335 Dublin Rd Suite 200A, Columbus, OH 43235;
614481-3530).  It sponsors Co-op Awareness Month every October.  Kathy
Winston, a spokesperson for the Yellow Pages Publishers Association,
suggests that small businesses also contact vendors or manufacturers
directly and ask if they'd be willing to sponsor a program with you.

Nab an award.  Being recognized as a distinguished professional in your
industry is an honor and can be used to market your business.  A
landscaping firms spends 10 percent of its marketing budget on vying
for a variety of accolades.  The firm also uses the strategy to gain
recognition in niche markets it plans to pursue.  There are countless
opportunities for your business to win an award.  At the library, check
out the listings in Awards, Honors and Prizes (Gale Research, 1996).

Like the landscaping firm, you'll need to make an effort to get double
the publicity value by publicizing your win yourself in addition to the
award-giver's publicity.  Several entrepreneurs who've won awards have
confessed that they were negligent in using the honor to gain more
momentum in their businesses.

Outsmart do-it-yourselfers.  Inevitably there are going to be people
who either can't afford your prices or believe that after picking your
brains through a free consultation, they can handle the job themselves.

You can turn the situation around by selling your knowledge in
digestible bites.  Creating a series of how-to booklets, special
reports or fact sheets may be just what a do-it-yourselfer will buy.

Avoid pricing your item too low, hoping to convert the person into a
sale and make up the cost difference.  Instead, price it based on its
value, with a decent profit margin.  Otherwise you'll end up losing
money because some do-it-yourselfers will only be interesw in the item,
period.

I Use your al manual.  I regularly send in information W my alma mater,
Loyola Marymount University.  The alumni publication has a "class
notes" section where people send in all types of news.  Some of the
blurbs are quite lengthy and you can subtly promote yousiness.  Just
think: The publication goes to just about everyone who graduated from
the University.

Exposure such as this can lead to speaking engagements and other
business or networking opportties.

Scout out all free advertising opportunities.  If you're online, have
you set up a profile for others who are online to read so they can
learn about you?  It's doesn't cost anything extra to do.  On America
Online (AOL), for example, you can create a 'member profile."  I've
filled mine with information promoting my, business and this book.

I've received countless inquires .

Marketing Your Business from people who decided to contact me based on
the profile information.

AOL also lets you place hw classified ads in the Business Strategies
area.

There are also some industry directories that offer profile listings.

For example, newsletter publishers can receive a listing at no charge
in Oxbridge Directory of Newsletters (Oxbridge Communications, 1996;
800-9550231) and Newsletters in Print (Gale Research, 1996;
800-347-5253).  You may find other opportunities in Directories in
Print (Gale Research, 1996).

Another idea: Consider setting up a window disPlaY of your wares in a
library or another city building.  Many libraries and government
buildings have display cases that they allow local businesses to use.

This arrangement works very well for artis , photOgraPhers, clothiers
and craftmak g b its in us nesses.  (A library display of my jewelry
line once brought me some business.) In a library, all you may need is
the head librarian's approval before you set up your display.  Be sure
your exhibit includes a sign or a card with the name of your business
and how people may contact you.  It'll start working the moment you set
it up, without your even being there.

Use family as your marketing mouthpiece.  One entrepreneur's son is so
conversant about her practice that several of his friends, parents have
become customers.  It's happened so many times that she now gives him a
referral bonus besides his allowance.  It's important that your loved
ones have a good understanding about what you do, so when asked, they
can respond with a subtle sales pitch.  they can also let you know
about opportunities they hear about that sound like a fit.

Pounce on newbies.  Families and businesses new to a community are
excellent targets for certain businesses.  Since many town newbies
don't know anyone, they rely on referrals from mentors, employment
services, chambers of commerce or the 'welcome wagon" committee.  You
can use these organizations as sources for contacting newcomers as
potential customers.  Also, if another business is relocating, You
could offer to serve the customers being left behind.

Survival Tip #60: Focus on being competitive, not just a low-baller.

Terrible things can happen when you operate a price-driven business.

Getting and keeping business will be based on lowening your prices,
which cuts into your profits.  You'll also create an unreliable
customer base.  People who buy based on price alone will abandon your
business as soon as a cheaper offer comes along.

Competitive businesses don't always tout the lowest price in town.

d, they build up their businesses by offering better solutions to .

their audience's problems, providing quality service consistently,
marketing strengths that show why they're better than the competition
and investing continually in components that help them build up their
businesses (see Survival Tip #146).

Here's a case in point.  A few years ago, someone highly recommended me
to a company that needed people to work on a subcontracting project.

My project fees were considerably higher than those of the other
contractors used by the company, but the client divvied up the work
among myself and the others.  Each assignment period my work portion
steadily increased, and within a year I became the company's sole
contractor for the outsourced work.  I didn't worry about my
competition-I just outshined them.  The quality of my work and the
ease, reliability and flexibility (all components of my business
identity) of working with me more than justified the clients paying my
higher fees.  Had I lowered my fees to get more work, another savvy
professional may have come along and used my strategy.

You can determine your ability to compete successfully with other
businesses by being aware of-not worrying about-your competition.

You don't want to fall into the trap of copying others, but you should
definitely know what's going on in your industry and how others are
faring.  Scouting can be as simple as checking your section in the new
yellow pages book or other professional directories to see who's coming
and going or what's being offered.  Regularly reading business and
trade materials can give you great insights into the tools and
technologies that are helping businesses compete.  Staying aware of the
movement in your industry will enable you to present your competitive
offering to the marketplace with confidence.

Survival Tip #6 1: Strategically spend and place your advertising
dollars.

Paid ad placements are vital marketing sources for some businesses.

Bear in mind that when customers refer to a directory or advertising
section, they've already qualified themselves as someone who needs what
you and your competition are selling.  Whether you're paying for a
display in the phone book, newspaper or church directory, .

Marketing Your Business you need your dollars to work effectively in
steering people's attention over to your message.

Before you spend one dime on such a placement, keep the following
considerations in mind:

 Does the medium allow you to communicate your message as often as you
need?

 Will the format allow you to communicate enough information to prompt
people to call for an appointment, send in an order or request
additional information?

 What is the medium's cost in terms of the number of people it will
reach?

 How many of the distribution recipients will actually be your target
audience?

Your paid placements should work in concert with your other tools.

Let's say, for example, you pay for a yellow pages display along with
special ads in a supplier director-Y and the newspaper.  Which of the
vehicles generates the most responses throughout the year?  If you
depend on one type of placement more than the others, you should
consider staggering your placements to stimulate movement during any
work gaps.  For instance, you may opt to go with a placement that comes
out a few months before your slow season.  Also, consider a placement's
life span.  Short-lived placements need to be supported by a series of
other ones to maintain a flow in your business.

Test runs will help you determine which options are best for your
business.  Marketing experts recommend that you test paid placements,
such as classified ads, for three to six months to get a feel for their
effectiveness.  Rarely is the response of a one-time placement a
cut-and-dried indication of how well an ad works.  Start with a few
small placements and slowly graduate to a more extensive advertising
program.  Track the results of any placements.  By having prospect' e
customers dial a special number or enter a department code whlevn they
call you, or asking every caller how they heard about you, you can
monitor the effectiveness of your strategy.  You'll also ensure that
You're not paying for something that doesn't work.  (You can get more
information on creating yellow pages ads from the Yellow Pages
Publishers Association.  For more information, see page 125.)

.

Survival Tip #62: Incorporate the "media" into your program.

.

Dancing with the media has many advantages.  However, through the years
of regularly providing expert quotes, having my business featured in
articles and on TV and providing lively conversation on radio shows,
I've narrowed its advantages down to two: (1) Media exposure is
effective in helping you be first in people's minds even when you're
not first in the marketplace and (2) it sows creclibihty seeds that
can't be planted through paid advertising.  Although you shouldn't rely
on the media as a sole tool, you should reserve some marketing energy
to land publicity for your business.  You can factor media activities
into your overall marketing plan.  In comparison to a series of paid
advertisements, a series of media appearances can actually be
inexpensive and a very cost-effective investment over time.

Media representatives are always looking for interesting stories and
useful information to present to their audience.  You can steer them
your way through carefully crafted press releases.  If you have
interesting information from an industry survey you've conducted,
participated in the development of your community, received an award or
special recognition or have some usefill tips to share, you are a
candidate for publicity.  A house-painting service, for example, sent a
press release announcing its involvement in g a facelift to a community
landmark.  It was newsworthy because the facility serves as host to an
annual celebration and completion of the renovation was scheduled
around the big day.  The service was mentioned in all materials
promoting the event and the new exterior, thus clrawirig attention to
the painter's business.

Publicity nan help you in other ways.  A product manufacturer used
responses from publicity as a test-market indicator.  Its product was
featured in a column syndicated nationwide.  Orders poured in but only
from certain cities.  The manufacturer used this information as it
targeted retailers in various areas.

Publicity will often generate more publicity; other media folks will be
pointed to you because of past coverage.  However, you'll benefit most
from media marketing when you can regularly feed media sources with
information about your business, which has a cumulative effect (see the
following article, "How to woo the media").

.

Marketing Your Business HOW TO WOO THE MEDIA Wooing the media is
simpler than you think.  When you approach them in the right way and
with the right information, they'll be receptive to your message.  You
can enjoy media marketing success by following these five steps:

1. Learn how to tell it to the press.  A large percentage of stories
you see, hear and read in the media are generated from hundreds of
releas,s received each month.  Unfortunately, most Press releases are
thrown in the trash because they're ineffective and not written in the
proper format.  There are a number of materials available to help you
learn how to write a press release.  I've included some of these
references in the Bootstrappees Followup File for this chapter,
beginning on page 121.  They all provide you with sample releases along
with how-to information.

2. Build a targeted media list.  A common mistake many people make is
sending out releases to any and every media contact they can find.

This untargeted approach isn't very effective because your releases are
probably going to inappropriate contacts, which is a misuse of your
resources.  By spending some time developing and building a targeted
list, your business will be better Positioned to receive some notable
publicity.

First, define who you're trying to reach.  The answer should be spelled
out in Your marketing plan.  Next, refer to library directories, such
as Bacon's Newspapers/magazines Directs (Bacon's oration, 1996), T TY
nf I'm he Working Press of the Nation (National Register Publishing,
1996) or Gale Directory of Publications and Broadcast Media (Gale
Research, 1996).  These directories include a description of the
editorial content of each media outIet-which will help you find the
best outlet for your audience-along with contact names and information
requirements, such as new product literature, press releases or how-to
information.  Compile a list of local or national media, using the most
recent directories available, and use this as your mailing list.

Once you start receiving responses from Your mailings, you should keep
track of those contacts-perhaps coding them in Your database as live
sources- Get the complete names and follow-up information for any media
person that contacts you.  In my Office it's standard operating
procedure to ask for a phone number, fax numbr, e-mail address and Web
address from everYbodY.  You can develop a media list by using the
directories, but to build your list, you must stay in contact with
actual media representatives.

3. Send out timely, useful information.  Releases that include
startling facts or statistics, announce a co-op deal between you and a
brand company, offer a free workshop or seminar, introduce a new
company catering to an unusual niche market or tell people anything
that is unique or out of the ordinary can be considered newsworthy.  If
you have professional photographs, you can include those with your
mailing.

Crafting a release on helpful consumer tips can also land you a media
placement.  For example, a tax preparation service could send out a
release titled "lo Deductions .

Commonly Overlooked" during tax season.  Also, if you publish a
newsletter, you should regularly send it to media contacts.  It'll keep
your name before them and may prompt a call for something they're
working on.

4. Make yourself findable.  Every placement will not include fWl con
tact information about your business.  You can, however, be on the
offensive and make yourself impossible not to find.  Start by having
any names by which you do business listed properly with directory
assistance.  For example, my business phone number can be found under:
Research Done Write!, Bootstrappin' Entrepreneur and Kimberly Stansell.
 This strategy helps en sure that when a feature article only mentions
my name or the business name and the words "based in Los Angeles,"
people can find me.  Also, being listed in professional and industry
directories can help.

duce wonderful results and other times it may not yield a single phone
call.

5. Prepare to ride a roller coaster.  Sometimes a placement will pro
There may be instances when you spend a lot of time being interviewed
for a piece and end up being edited out.  As you become a seasoned
publicity seeker, you'll learn to stay focused and move on to the next
opportunity, continually sending materials out.  It's the nature of the
business, but it's an investment worth your time.

Survival Tip #63: Follow the ABCs of making a "free" offer.

Freebies can be an effective or expensive proposition.  The offer of a
free brochure, special report, tips sheet, product sample or
consultation can keep your phone ringing nonstop.  It's effective when
you're able to convert a high number of inquiries into sales.  It's
expensive when you're just entertaining freebie junkies.

Your target audience will determine the effectiveness of a free offer.

If you've identified the idiosyncrasies of your market, you'll have an
idea of how marketing without samples will fly in the face of your
prospects.  Remember the mature market group (see Survival Tip #20)?

Industry protocol may require freebies.  For example, it's standard
practice for a person to have a free consultation or demonstration
before receiving an electrolysis treatment.  Some offerings lend
themselves to be sampled.  Manufacturers send out toiletry, food and
cleaning items, and you can sample Boston Market menu items before
placing an order.  If your offering is expensive, novel and up against
heavy competition, freebies can work toward helping people see its
value.

.

Marketing Your Business If you feel that your budget can't absorb a lot
of giveaways, then consider some ways to modify your offer.  When
Accent on Travel purged its free packets mailing list, they discovered
that a low percentage of inquirers were actually booking trips.  They
switched their game plan by collecting a shipping and handling fee for
the packets, which now include a $30 coupon redeemable toward any trip.
 Selling samples of your offering at a reduced rate can work well. 
This way prospects get to trY the item without incurring a great
expense.  A word of caution, however.  Make sure that your free offer
isn't a deceptive lure and complies with the guidelines outlined in the
Federal 0
Trade Commission's Guide Concerning Use of the Word "Free" (f r
ordering information, see page 125).

You should also spend time developing a follow-up and tracg SYS to
gauge your results.  For example, calculating your sales conversion
rates will indicate how well the strategy's working, Some people won't
buy right after they sample, SO You'll need to invest in follow-up
activities to secure an actual sale.  Logging all this information can
help you create new or better ways to sell your product or service.

Survival Tip #64: Build a tailor-made network.

Networking is also a form of marketing.  It positions you to see, hear
and be in-the-know without trying D&chael Keaton's stab at
multiplicity.  Instead, other people are at work for you.  Your
relationship with them creates a top-of-the-mind awareness so that when
they see opportunities or information you could use, they pass it on.

Networking at its best is the byproduct of reciprocal relationships
built over time.  It's a critical part of your marketing arsenal.  But
it only works when you do-you'll get from it what you put into it.

Many people shy away from networking or find themselves in awkward
situations because they misunderstand the process.  People confess to
me all the time: "I)m really not a 'meetings' person."

Networking isn't limited to just attending gatherings to pass out
business cards.  It's not about imposing yourself on someone or only
calling when you want something.  Networking is about looking for waYs
to help your professional peers and exchanging resources with

them.  Great networkers look at people they meet and ponder how they
can help them.  They find out how by listening to what people tell them
about themselves.  And when they come across an article or book, they
know who to pass it along to because they're familiar with other
people's interests or needs.

Your focus isn't just on building up a big pool of contacts-rather,
it's on nurturing quality ones and establishing your credibility to the
point that when you do need something, people will gladly accommodate
you.

You'll benefit most as a networker when you operate within a tailormade
network, a system that's compatible with your style and goals.

You'll find yourself moving away from merely mimicking what you see
others doing and beginning to focus on strategies that are right for
your business.  Your system should feel like a well-fit glove, and
you'll be more apt to commit to building your network for the long
haul.  I've relied on five factors to build my "network that works."

Here they are (Survival Tips #65 through #69):

Survival Tip #65: Network based on who you are.

You'll gain more ground by pursuing opportunities where you feel most
comfortable sharing and giving of yourself The compatibility of your
personality with the business type will be crucial in this area (see
Survival Tip #21).  You're selling yourself as well as your business.

It's important to avoid approaches that make you appear clumsy and
choose ones that enable you to shine as a professional.

Here's an example.  A psychologist needed to increase the referral
stream to his practice.  He was already nurturing his network through
regular lunch meetings, but he needed to do more.  But hard selling
wasn't his forte.  He was more effective in one-on-one relationships,
as he should be, being a therapist.  The best way for the psychologist
to market his practice was through gatekeepers-people who would refer
others to him.  Good networkers are attuned to the needs of their
contacts.  The psychologist knew that his gatekeepers were devoted to
their own professional growth.  So he began hosting free, intimate
professional workshops, to which his "referral club" and their guests .

Marketing Your Business could come and learn new techniques and gain
new information.  The result: his referrals doubled within a few
months.

There are a few reasons why this strategy worked.  It's important to
note that the psychologist's one-on-one preference is compatible with
his type of business.  Although many practitioners do market through
teaching and public speaking, these strategies were not a fit for this
psychologist.  The issue was to increase his top-of-mind awareness and
referral circle.  The approach was effective because he was interacting
in a manner that was compatible with who he is while exchanging
something of great value to his colleagues.

Survival Tip #66: Network based on your business type.

All businesses are not networked the same.  Some businesses are best
networked through traditional alliances, such as active membership in a
chamber of commerce or professional association.  Other businesses
benefit from faceless networking through the online world.  You may
also benefit from a combination of traditional and unconventional
approaches.  However, knowing your business Will enable you to more
clearly identify the most effective strategies for your situation (see
Survival Tip #19).

"Building block" options may include your peer group, competitors,
suppliers or folks in your neighborhood.  Your network may be built
around industry affiliations- A desktop publisher who specializes in
business communications, for example, gets a lot of mileage from
visible involvement with communications organizations, such as the
International Association of Business Communicators.  Some businesses
benefit through forming a professional team.  A florist, caterer,
photographer, event planner and disc jockey could exchange referrals or
scout out and bid collectively on joint opportunities.

Telecommunication makes it easier for people to become telenetworkers.

It's common for businesspeople, particularly those whose businesses
have a national scope or are run from a home office, to tell you about
reciprocal relationships they've developed through Internet forum
groups and over the phone.  However, for this to be an effective
strategy, your professionalism and enthusiasm must come across in your
conversations and writing.

ill Your business's tailor-made strategies will also determine follow-up
methods and frequency.  Self-publishers, for instance, often exchange
publication subscriptions.  Or to establish yourself in online areas,
you'll need to showcase your expertise by regularly contributing to a
chat forum or posting answers to others' questions.  A helpful resource
on networking communication links: 52 Ways to Re-connect, Follow Up and
Stay in Touch When You Don't Have 7ime to Network by Anne Baber and
Lynne Waymon (for ordering information, see page 121).

Survival Tip #67: Network based on what you have to offer and need to
gain.

.

What you know is important in networking.  People will only stay
connected with productive relationships.  If you never appear to know
anything, you won't have a network to speak of Being dubbed as a stingy
or tight-fisted networker has the same effect.  Think about all your
knowledge assets.  Maybe you consume a lot of information on an ongoing
basis through regular resources.  Or you may have access to people or
events that your colleagues don't.  Then think about what it is you
need to know.  You may not be able to keep up with changes in
technology or have problems finding qualified people to outsource with.

Once you're clear on what you can exchange, use your networking radar
to match yourself with exchange opportunities.

You may be able to network through your work.  That's what I do.  My
projects allow me to regularly discover new small-business resources
(many of which I'm sharing with you in this book).  I also meet,and
interview interesting and knowledgeable people for my writing projects.

The benefit is that the majority of the people are interested in or
involved with entrepreneurship, which makes it easy for us to stay in
touch.  Adding them to my mailing list for my newsletter or other
informational mailings is a cinch; likewise, I'm on their lists.

We each appreciate the valuable information, we stay connected and I
always have a ready network of sources to draw from no matter what I'm
working on.  Essentially, every contact becomes a link in my network.

.

Marketing Your Business Jan Melnik of Durham, Connecticut, uses another
strategy.

Through her books and newsletter, Melnik has become a mentor to the
secretarial and office support services industry.  Her give-and-get
networking tool: She produces a summary report of highlights from the
annual conference of the National Association of Secretarial Services,
sharing the ideas and information presented in various workshops.

Melnik's supplement is sent out as an "extra" with her newsletter, and
she even posts it in an online forum.  It benefits those industry
professionals who were unable to attend.  Furthermore, it generates an
unbelievable amount of word-of-mouth for her as the industry expert.

Survival Tip #68: Develop a three-her networking system.

It's important that you continue to grow as a professional.  Networking
with a variety of people who are at various places in their journey can
help you.  I call it "trilevel networking":

Level one: Network with people who are more experienced than you.

These people usually are further along than you or are where you want
to be.  You get to learn from these individuals.  You get to hear how
they got from point A to point Z. You also get to hear about the type
of projects they're involved with and how they went about landing them.

These people are also the most likely to let you in on a trade secret
exchange (see Survival Tip #128).  By listening to them, you can
determine how to go about reaching their level.  They serve as mentors
in many ways.

Level two: Network with your professional equals.

These are individuals who have the same experience or status as you.

Since you're pretty much on the same level, you'll have a sort of
"buddy system" relationship with these people.  You can work to keep
each other on track toward your respective goals.  If you find it
easier to confide in others you view as equals, people at this level
can be a good sounding board for you.

.

Level three: Network with professional newcomers.

They're just getting started and trying to learn.  They will appreciate
your knowledge and support and are likely to repay you later on.

It's through this system that you'll learn the most about reciprocity
because on any given day you may find yourself giving or getting or
both.

You may not start off with all these relationships intact.  Defining
some goals for your networking activities will help you stay focused on
forming strategic alliances-beneficial to both parties-and you'll be
better able to stay in touch systematically and manage those
relationships properly.  Don't squelch potential relationships by being
careless.

Whenever people show you a professional courtesy always take time out
to follow up with a thank-you or feedback.  With so many communication
tools at our fingertips there's really no excuse for not doing so.

There are no instant networks.  It takes a commitment on your part to
build a network conversation by conversation, exchange by exchange.

It's to your advantage to start building your network today.

Survival Tip #69: Become an exhibitionist.

.

Showcasing your business at a trade show, conference or networking
event can work as a vehicle to reach your target audience.

Whether you pay for a booth or display table, you should always focus
on matching your dollars with the light opportunity.  Start by
scrutinizing a show's profile package.  Your decision to participate
will be influenced by fdctors such as how the show's theme relates to
your audience; the number and type of exhibiting companies; how the
event will be promoted; and the track record of the event's sponsor.  I
was once flown in to speak at a New York City expo that yielded a poor
turnout because it wasn't promoted properly.  It was a free trip for
me, but the exhibitors ended up paying to sit around all weekend.

You, too, have a responsibility to bring foot traffic to the exhibit.

You can display show materials and coupons in your business or send out
a special invitation mailing to customers, colleagues and prospects.

Make an intriguing offer-lure them to your booth to pick up .

Marketing Your Business some special item or to participate in a
drawing and win something valuable.

Look for free exhibition opportunities.  That's what Jamis Jones
Williams of Chefs in Your Pocket, a catering business in Rocklin,
California, did.  As a regular Sam's Warehouse shopper, her fun
received an automatic invitation to be a debut exhibitor at the Taste
of Sam's.

The exposure led to dozens of new customers and a contract to cater a
company picnic for the community's largest employer-a project she'd
been denied a year earlier.

You don't have to spend a fortune on display items either.  You can
make a professional presentation with second-life items of your own
(see Survival Tip #49) or through a used displays dealer.

Survival Tip #70: Be a friend to your community.

Running a business provides you with unique opportunities to contribute
to your community in a meaningful way.  In the SmartGivmgTm seminars,
David,Calabria of Calabria & Company in Oshkosh, Wisconsin, teaches
corporations how to develop growth strategies while strengthening
worthy causes.  Small businesses can adopt a similar approach and
become players in their communities, too.  When you lend support
through goods, services or time, you're strengthening your
connnunity-making it a better place to live and do business.  In Turn,
your business reaps some benefits: You'll stand out from your
competition, your product or service is showcased prominently before
the public and you'll gain visibility not enjoyed by every firm.

Here are some examples of SmartGivinlfm at work in small firms.

A hair salon teams up with a nonprofit job referral service and offers
unemployed job seekers a free haircut and manicure before they go out
on interviews.  A graphic design firm donates its services to arts
organizations in its community and is now regarded as the quality place
for typesetting work.  Other affordable contributions can include
sponsoring an award, donating a raffle prize or earmarking a percentage
of your profits for a designated organization.  The National Alliance
of Businesses encourages business owners to enhance classroom
curriculums by speaking to students about their profession and what it
takes to be successful.  As employers; they help develop a .

future pool of laborers by getting involved.  According to a survey by
the research center of Boston College, eight out of 10 people say they
purchased from a business because they approved of its involvement with
the community.  Your outreach efforts can create a win-win situation
for everyone.

You can begin to align yourself with worthy causes by identig core
needs, problems or opportunities in your community.  Use your core list
to pinpoint organizations and groups that proactively solicit help for
a cause.  You can then pick an appropriate association for your
business based on your own or customers' interest.  Either way, your
company will be positioned as a community giver and benefit from the
goodwill effects that advertising alone cannot buy.

Survival Tip #7 1: Speak and teach your message.

A surefire way to qualify your business is to speak before an attentive
audience.  Leading a class or workshop or delivering a message before a
group of professionals can help establish you as an expert in your
industry.  Adult extension course programs, libraries, bookstores,
community organizations and trade associations are interested in
qualified people to speak at their events or programs.  Your challenge
will be to match your message with the right audience and venue.

Determine what topics you could speak about that are a natural tie-in
for your business.  A small business attorney, for instance, teaches a
"How to Run Your Business on the Right Side of the Law" workshop.

Next, you'll need to match your presentation with a program that your
idea will complement and that is able to reach your target audience.The
attorney's workshop could be taught through an adult'extension program
or workshop specialists, such as the Learning Annex.  Your expertise
may even qualify you to lead a presentation through SCORE.

You can also deliver and promote your message independently.  A
woman-owned auto repair service offered free one-day seminars that
taught women how to check under their hoods for problems.  The owner
hosted the seminars once a month at her storefront garage.

The media loved her story and generously plugged the seminars.

Guess who the attendees patronized when they had car trouble?

.

Marketing Your Business Sideline gigs can provide you with business
research, too.  A computer store owner teaches adult education computer
courses at local high schools and libraries.  Class feedback has helped
her develop her customer profile and mailing list and pinpoint niche
markets, geographical selling spots and price structures.

Initially, you'll probably present your message for free, a low fee or
an honorarium.  That's okay, especially if you're speaking before a
welltargeted audience that can generate business with resulting profits
that would surpass any fee you might have charged.  There are other
tangibles you can pick up in lieu of cash for your presentation.  You
can ask for an attendee or membership list to help you develop your
mailing list, a free ad in an event program or a prominent mention of
your business name or location in materials promoting the activity.

Before you approach any group, you'll need to prepare a proposal for
your class or a letter outlining your credentials and the content of
your presentation.  Should you decide to Turn to speaking as a source
of income, you should sign up with a local speakers' bureau,
participate in a local Toastmasters group and begin reading or taking
classes on how to become a professional speaker.

Survival Tip #72: Invest in strategies with a multiplying effect.

Effective marketing strategies always work double time-feeding off of
each other and creating a ripple effect.  Just like multifanction
equipment, your marketing tools should have multiple purposes.

Rather than investing in a device that's used to communicate your
message in one way, explore the device's potential to be used in other
media to get results.  The pay-off- You'll get more bang for your buck.

Here are some examples:

A yellow pages ad can be reprinted into a postcard and used as a
customer service follow-up tool.

If you're a guest in an online chat, the transcripts can be posted on
your own Web page or provided to media representatives for developing
questions to ask you during a live interview.

.

 A business card can be affixed on the outside of a presentation
folder.

 A byhned article has a lot of potential.  It establishes you as an
expert, and it's a vehicle for educating your market.  It can be
reproduced for presentation packets, included in promotional mailings
and offered as a one-time reprint item in other publications.

 If you've created a quiz or a contest to educate the market about
your offering, you could incorporate it into an advertising specialty
item.  For example, if the quiz had 12 questions, you could put a
different question on each month of a promotional calendar you've
created for your customers.

 You can use your voice mail service for announcing sales or other
appealing information about your company, instead of simply for
managing your calls.

Look for ways to repackage your work.  A case study about how you
solved a clients problem can be printed in a promotional newsletter or
work as a supplement to your brochure or proposals.  Newsletters are
mileage maximizers, too.  I took money-saving tips from an issue of my
newsletter and turned it into a press release titled ",ren Ways to Save
Small Businesses Thousands in 1995."  My press release quickly resulted
in a spot on a radio show and in citations in a halfdozen other
publications.

Strategies with a multiplying effect give you more value for your
initial efforts and free you to concentrate on other ways to build your
business.

Survival Tip #73: Commit to capturing "share of mind."

I.

You'll cement your place in a market by gaining customers' "share of
mind."  Your name, identity and offering benefits are systematically
repeated before your audience to the point that there becomes an
instant association between your company and their need.  Share of mind
is gained by people seeing and hearing about your company time and time
again.  It's a process that's nurtured and built over a .

Marketing Your Business period of time, and it can only be secured
through a commitment to your marketing plan.

Repetition is your power.  You'll need diligence in dispatching your
marketing efforts.  They can start with one ad that is followed by many
others.  Regularly appearing in the paper and having your expert
opinion quoted throughout the media contribute to the process.

Nurtuning your existing client relationships will translate into word
of-mouth endorsements.  Your signs, mailings, phone calls, displays and
other weapons help solidify and intensify your share of mind.  If you
fail or become negligent in your commitment, you'll lose some ground in
the building process.  It's better to commit and follow through on a
few tactics than to occasionally indulge in a bunch of activities.

Share of mind is built slowly.  However, you'll feel it is worth the
wait when people say to you, "I keep hearing about you and decided to
call" or "Wow, you must be doing something right because I see your
name everywhere."  Besides the resulting financial rewards, the
emotional rewards you'll get from hearing these comments will alone
make your tenacity seem worthwhile.

Survival Tip #74: Maintain a presence even when you're busy.

I.

A marketing mistake to avoid: ignoring your marketing agenda when you
get swamped with work.  This is easy to do, especially when you're
involved with long-term projects or in the midst of your peak season.

Prolonged busy times create a sense of invincibility-you begin to
believe that there's no way it's going to end.  It's wise, however, to
invest in "presence maintenance" strategies, which work when you're not
around.

Although you may be operating at a saturation point, you can still
engage in marketing activities without generating immediate business.

One way is to underwrite a public radio show.  National underwriting
spots are pricey; however, costs are lower on local levels.

Classical stations will acknowledge sponsors throughout different
segments of a show and include an 18-word description of each sponsor.

Your description can't be a sales pitch, but it will help you .

maintain your presence of mind in the marketplace.  One bootstrapper
maintains her presence as an active board member of a local women's
forum.  She serves as the group's media spokesperson and her name
appears on all its press releases.  When fielding the calls, she has a
chance to talk about her business while serving as a volunteer.

You can maintain your presence by staying within the opportunity loop.

For example, if you are unable to serve certain customers but know of
other businesses that could, rather than passing on business, set up a
referral network.  You can even collect a percentage fee from the
professionals you refer customers to.  You will be inviting queries to
still come your way while positioning yourself to take advantage of
opportunities should you need the business.

Survival Tip #7S: Don't be afraid to do your own thing.

Creativity in marketing can attract people, but it also involves taking
some risks and putting yourself out there for possible rejection.

People who market their businesses must be confident about putting
their own twist on a marketing idea.

. A chiropractor actively promotes his practice through what he calls
"marketing with a human quality that projects a positive image."

His gutsy approach: He rides an elephant in the local 4th of July
parade, followed by an entourage of loyal patients who pass out peanuts
to onlookers.  The community reacts positively to his approach; the
number of his patients doubled the first year he did it.  Another bold
move comes from an author.  She caravaned across the country with her
three children in a new van custom-painted with animals and the title
of her childcqre book.  She stopped at various cities to do speaking
engagt,ments and teach workshops on the subject of her book, as well as
some radio and TV appearances and newspaper interviews.  Her stunt
caught the attention of Publishers Weekly, landing her a fullpage
feature in the magazine.  It was great coverage and an impetus for
increased book sales.

You can't be afraid to impose your creativity into a situation.

Recently a Chicago Tribune reporter was prompted to call me by my
quotes in a 1993 Home Office Computing magazine article.  She was
working on a technology feature, and she was interested in my buying .

Marketing Your Business philosophy: Avoid buying too much, too little
or just the wrong thing.

We arranged a photo shoot at a local Staples to accompany the article.

The photographer explained how he planned to shoot the pictures, which
really didn't capture the essence of the piece.  So, I pitched him my
idea of photographing an overflowing basket of software and technology
goodies, showing the readers that this is what will happen if you don't
follow my advice.  He took a few pictures with my idea and several with
his own.  When the article appeared, guess whose photo idea was used?

You guessed it-mine.

This chapter has provided you with the tools, techniques, safeguards
and ideas you need to be a smart, bootstrappin' marketer.

Now, go out there and do your own thing!

Bootstrapper's Follow-up File

52 Ways to Re-connect, Follow Up and Stay in Touch When You Don't Have
Time'to Network by Anne Baber and Lynne Waymon (KendalYHunt Publishing
Company, 1994); 800-228-0810.  $14.95.

Art Marketing Hotline, 800-999-7013.  A free marketing advice hotline
for artists and other creative business owners.

Cabletelevision Advertising Bureau, 830 Third Ave New York, NY 10017;
212-751-7770; fax: 212-832-3268.  Provides a free copy of Guide to
Local Cable Advertising: Tips on Planning and Buying Cable to Generate
Maximum Impact from Your Local Media Budget and a resource list of
available publications.

Complying with the 900-Number Rule, Federal Trade Commission, Public
Reference, Room 130, Washington, DC 20580-000 1; Web address:
www.ftc.gov.  A free, 2 1-page guide explaining the legal guidelines
for marketing with 900 numbers.

Complying with the Telemarketing Sales Rule, Federal Trade Commission,
Public Reference, Room 130, Washington, DC 20580-0001; Web address:
www.ftc.gov.  A free, 36-page guide explaining the legal guidelines for
telemarketing practices.

Getting Publicity: A Do-It-Yourself Guide for Small Business and
Non-Profit Groups by Tana Fletcher and Julia Rockler (Self-Counsel
Press, 1995); 800-663-3007.  $14.95.

Grammar Hotline Directory, Tidewater Community College Writing Center,
1700 College Crescent, Virginia Beach, VA 23456.

A nationwide directory of Grammar Hothne centers, which provide free
answers to short questions about writing and are staffed by faculty
members, graduate students, editors and farmer teachers.

Send S.A.S.E.

Guerrilla Marketing Newsletter, Guerrilla Marketing International,
800-748-6444; Web address: gmarketing.com.

Published bimonthly by Jay Conrad Levinson.  $59/year.

Guerrilla Marketing: Secrets for Making Big Profits from Your Small
Business by Jay Conrad Levinson (Houghton Nfifflin Company, 1993);
800-225-3362.  $11.95.  Other books in series include: The Guerrilla
Marketing Handbook, Guerrilla Marketing for the HomeBased Business,
Guerrilla Marketing Online, Guerrilla Marketing Advertising and
Guerrilla Marketing Weapons.

. Guide Concerning Use of the Word "Free," Federal Trade Commission,
Public Reference, Room 130, Washington, DC 205800001; Web address:
www.ftc.gov.  A free guide explaining the legal guidelines when using
the word "free" in your advertising.

Incentive: Managing and Marketing Through Motivation, 355 Park Ave. S
New York, NY 10010; 212-592-6400; fax: 212-592-6459; Web address:
www.incentivemag.com.  A free incentive marketing magazine.

Making the Most of Voice Mail and Voice Mail Tips and Etiquette,
Pacific Bell Information Services, ROom 2500Q, 3401 Crow Canyon Rd San
Ramon, CA 94583; 800-954-8477 (in Cahfomia).  Two hw how-to guides.

Marketability: Bottom Line Strategies for Micro-Business and the
Self-Employed, Impression Impact, 369 Lindsay Pond Rd Concord, MA
01742.  A quarterly newsletter filled with marketing tips and ideas.

Send S.A.S.E for a free copy.

.

Marketing Your Business Marketing Boot Camp: 85 Profit-Packed Tools,
Techniques and Strategies to Boost Your Bottom Line NOW!  by Arnold
Sanow and J.

Daniel McComas (Kendall[Hunt Publishing, 1994); 800-228-0810.

$24.95.

Marketing with Newsletters: How to boost sales, add members & raise
funds with a printed, faxed or Web-site newsletter, Second Edition, by
Elaine Floyd (EF Communications, 1997); 800-264-6305-P Web address:
newsletterinfo-com.  $29.95.

National Alliance of Business, 800-787-2848; Web address: www.nab.com.

Encourages educators and businesspeople to join forces to enhance the
nation's educational system; provides information on how companies are
contributing to the educational process.

National Speakers Association, 1500 S. Priest Dr Tempe, AZ 85281;
602-968-2552; fax: 602-968-0911.  Membership organization; sponsors
workshops, offers training certification program and publishes resource
materials for professional and aspiring speakers.

Procurement Opportunities: A Small Business Guide to Procurement
Reform, S.B.A Advocacy office, Mail Code 3114, 409 Third St. SW,
Washington, DC 20416; fax: 202-205-6928.

A free, 49-page guide designed to help small firms take advantage of
government procurement opportunities as a result of changes in federal
policy.  Offers specific advice on marketing your business to the
government.  Fax or mail your request.

Promotional Products Association International, 3125 Skyway Circle N
Irving, TX 75038-3526; 972-252-0404 (ask for marketing communications
department); fax: 972-594-7224; Web address:
www.promotion-clinic.ppa.org.  Offers a free book, Make Promotional
Products Work for You, along with other case-study booklets on using
advertising specialties and a list of distributors in your area.

Simple Steps to a Powerful Presentation, Quill Corporation,
800-789-6640; Web address: www.quillcorp-com.  A free, 25-page guide of
tips and ideas to help you create your own dynamic mitten and oral
presentation.

Six Steps to Free Publicity: and dozens of other ways to win free media
attention for you and your business by Marcia Yudkin (Plume/Penguin
USA, 1994); 800-331-4624, $9.95.

Small Business Success, Pacific Bell Directory 800-848-8000.  A free,
80-page annual magazine.  New volume published every spring in
conjunction with the S.B.A.  Filled with marketing strategies and small
business management tips.  Past volumes available while supplies last.

Speak and Grow Rich by Dottie and Lilly Walters (Prentice Hall, 1989);
800-922-0579.  $14.95.

Speaker's Idea File: Quotes, Anecdotes, Humor, and Statistics, Ragan
Communications, 800-878-5331; Web address: www.ragan.com.  A monthly
newsletter of tips, quotes and information to help you make a
professional speaking presentation.

Free sample copy available.

Start Up Marketing: An Entrepreneur's Guide to Advertising, Marketing
and Promoting Your Business by Philip R. Nulman (Career Press, 1996);
800-CAREER-1 (201-848-0310 in N.J. and outside U.S.).

$16.99.

The Electronic Mail Advantage: Applications and Benefits, Electronic
Messaging Association, 1655 N. Fort Myer Dr Arlington, VA 22209;
703-524-5550; fax: 703-524-5558; e-mail address:
70007,2377compuserve.com.  Free case study booklets on e-mail savings
and applications.

The Publicity Handbook: How to Maximize Publicity for Products,
Services and Organizations by David R. Yale (NTC Business Books, 1991);
800-323-4900.  $19.95.

The Publicity Manual by Kate Kelly (Visibility Enterprises, 1995);
800-784-0602.  $29.95.

The Small Business Guide to Advertising with Direct Mail: Smart
Solutions for Today's Entrepreneur, U.S. Postal Service, Advertising
Mail/Product Management Department, Room 5540, 475 LEnfant Plaza SW,
Washington, DC 20260.  A free, 88-page guide filled with .

Marketing Your Business money-saving tips and step-by-step instructions
for planning a direct mail marketing campaign.

The Teaching Marketplace by Bart Brodsky and Janet Geis ri

(Community Resource Institute Press, 1992); 510-526-7190 (or write:
Community Resource Institute Press, 1442-A Walnut #51, Berkeley, CA
94709).  $14.95.

Toastmasters International, P.O. Box 9052, Mssion Viejo, CA 92690;
714-858-8255; fax: 714-858-1207.  Provides referrals to local
Toastmasters groups and offers a free copy of Ten Yyps for Successful
Public Speaking.

Tradeshows Worldwide: An International Directory of Euents, Facilities
and Suppliers, Gale Research, 800-347-4253.  A library reference book.

Used exhibit dealers: World Exhibit Brokers, 800-743-0330;
Exhibitgroup, 800-424-6224; The Exhibit Emporium, 800-541-9100.

SecondLife Exhibits, 617-884-7455; fax: 617-884-0190.

Writing Effective News Releases: How to Get FREE Publicity for
Yourself, Your Business, or Your Organization by Catherine V.

McIntyre (Piccadilly Books, 1992); 719-548-1844 (or write: Piccadilly
Books, P.O. Box 25203, Colorado Springs, CO 25203).  $17.95.

Yellow Pages Fraud Hotline, Yellow Pages Publishers Association,
800-841-0639; Web address: yppa.org.  provides a free tip sheet, Beware
of Bogus Yellow Pages "Bills."

Yellow Pages Publishers Association, 3373 Cherry Creek circle Mountain
Dr Suite 920, Denver, CO 80209; fax: 303-320-6999.

Publishes resource materials on yellow pages advertising, with
information categorized by industry.  Specify your business type in
mitten requests to the association.

Chapter 6 ustonier ervice an ien e a ions

"The ledst expensive way to make more money and grow faster is to be
perceived as a service leader."
-John Tschohl, Service Quality Institute, Bloomington, Minn.

Survival Tip #76: Embrace customer service truisms.

Listen to what various studies are saying:

Truth #1: A small business that places heavy emphasis on customer
service is more likely to survive and succeed than competitors who
emphasize advantages such as lower price, convenience, speed of
delivery or product performance.

Truth #2: Customers will gladly pay a premium for products or services
to companies that differentiate themselves from their competitors with
customer-driven service.

Truth #3: The number-one reason American companies lose business is due
to poor service.  Adopt a treat-you-how-I'm-feehngtoday service style,
and it may be the last time you see a customer.

It's too easy for someone to go elsewhere.  Consistently serve
customers in the way they'd like to be treated (and better), and you'll
keep them coming back for more.

Customers who feel well-served by your business can become priceless
allies.  Their spi.Tit of cooperation will come shining through when
you need it.  Well-served customers will gladly brag about your
business to others; they'll remain loyal in the face of cheaper or
tempting offers; they'll provide you with valuable feedback; and
they'll gladly give you their money.  Nordstrom, for example, has
created a loyal patronage through its legendary customer service.  It's
been reported that Nordstrom's sales have outpaced its competitors'
during recessionary periods.  Why?  Customers will give their money
first to a business that treats them well, and their loyalty will
remain constant in lean times.

Most customers have a tendency to patronize businesses with which they
are familiar and like.  They are slow to change or stray from a
business unless they're given a good reason.  Once customers buy from
you, your job is to serve them in such a way that they'll be inspired
to use your services again.  Looking for a competitive advantage?  Then
run your operation by delivering quality service from the perspective
of your customer or client.  Interested in learning how?

Read on.

Survival Tip #77: Court the right customer.

I.

Imagine a scenario when the customer is not "always right."

Unconventionally speaking, the customer is not always right when he or
she is the wrong customer for your business.  You've poured resources
into developing a profile of the end user of your product or service.

You also have marketing tools and strategies at work communicating to
that customer.  So why court a prospect who doesn't value your
offering?  A person becomes disqualified as a customer when he or she .

Customer Service and Client Relations doesn't have: the financial
ability to pay; a real, immediate need for your product or service; and
the authority to make a buying decision.

Too many businesses exert energy (and waste money) chasing a "hot"
prospect who is really not qualified to be a customer.  Say your market
research has identified your target audience to be women who earn more
than $75,000 annually (a select group, considering that only 400,000
women in the U.S. pull in this much dough).  Will their perception of
your offering differ from that of a woman whose annual income is
$25,000?  Yes, indeed.  What type of mental payoff could you honestly
create in a buyer's mind that would convince her to buy something she
really can't afford?  It's an uphill battle and a misuse of your energy
and rinds.  When you wander away from your customer criteria, there are
other effects, too.  You'll find yourself trying to be all things to
all people, which can result in a haphazard customer service style. 
You'll end up directing to hopeless prospects attention that could have
been used to Turn good customers into frequent buyers through follow-up
efforts, surveys and other outreach activities (see Survival Tips #81
and #88).

Bob Serling of Stafford Communications in Cardiff, California, advises
his clientele of small- to medium-sized business owners to devise a
customer screening process.  Here's how it works: Divide prospects into
three categories:

 Group A.- people who meet all the buying criteria; they can afford
your offering and have a fairly immediate need for it and the authority
to make a decision to buy it.

 Group B: people who meet part of the criteria, but there's something
delaying the buying decision.  (You'll want to monitor this group by
staying in touch through your customer communications program.  See
Survival Tip #86.)

 Group C: people who don't meet the criteria at all-they don't have a
real, immediate need for your offer.-Ling, they can't afford what
you're offering and they don't have the authority to make the decision
to buy it.  They're wrong for your business.

The results from Serling's screening strategy are worth noting.

Tracking businesses that have used this process has revealed that .

businesses have been able to reduce their customer base by 50 to 70
percent while dramatically increasing their profits by devoting their
energy to people who are qualified to buy.

Profitable businesses aren't afraid to alienate segments of the
marketplace.  They realize that the wrong customer only drains a
business, whereas an investment in the right customer pays dividends.

Survival Tip #78: Handle price objections with finesse.

Today's consumers are more price-conscious than ever.  Although studies
show that customers are willing to pay more for a product or service
when there's a perceived value attached, matching your cost with their
pocketbooks can be hard work.  In large measure, being able to sway a
buying decision in your favor will depend on how well you handle price
objections.  It's premature to automatically deem people as unqualified
customers when they say, "Your price is too high."  If you understand
the meaning of an objection, you can respond with finesse and still get
the sale.

First, identify the reason for the price objection.  By simply asking
why a person feels that way, you may indeed discover that your price
exceeds the person's means.  However, the question may also lead you to
some other valuable insights.  You may learn that the person isn't
making the right comparisons.  For example, a customer who balks at the
price of an all-leather shoe because one that doesn't include a leather
sole is cheaper is making an off-base comparison.  More leather equals
more money.  If someone is comparing your product or service to one of
lesser.  quality, it's your job to point out the benefits of your
offering that are worth the difference in price.

You can also chip away at price objections when you quantify the
benefits in terms of pace.  For example: "You can chum out 3,000 more
copies a day with our machine.  How much would you save in labor?"

Another effective approach: Mnimize the difference by showing how
insignificant the price difference comes out to be over the lifetime of
the product when those extra benefits are taken into consideration.

For example: "The difference between the two items is only $50.

That's less than $1 a month over a five-year period.  But with this .

Customer Service and Client Relations product's efficiency feature,
which the other item doesn't have, you're really saving money in labor
costs.  How long do you think it will take to save $2 in labor?"

These product analogies can be adapted to service-providing businesses.

A printout of what it would cost the client to hire a staffer to handle
the project under discussion could be drafted beforehand and presented
when the client is having difficulty seeing the price advantages of
using an outside professional.

Don't forget to mention the customer service benefits that go along
with buying from you.  If you're offering 24-hour turnaround or other
special services, for example, the buyer needs to understand that those
are factors in your premium price.  Customers may not need or want this
level of service and will not see the value of paying for it;
therefore, they may not be the right customers for your business.

You should, however, make a mental note of price objections that you
encounter through the year even when your business is booming.  Down
the line some objections ma be indications of marketplace y trends.  It
may be impossible to eliminate every objection that comes up.  However,
when you take time out to prepare for those that do come your way,
you'll find it easier to close more sales.

Survival Tip #79: Carry some of the risk on your shoulders.

Your sales presentation has to be effective in overcoming a buyer's
aety.  When you coat your offering with a guarantee, you can gain an
edge in persuading someone to do business with you.  Interestingly,
though, most businesses do stand behind their product or service but
fail to communicate their stance in an up-front, compelling manner.

Thus, you inadvertently end up being viewed as a risky proposition in
the eyes of potential customers.  Samples or demonstrations whet
prospects' appetite for your offering.  A guarantee-which assures
prospects that they have nothing to lose by trying youan hook them into
a full-scale buying commitment.

Here's an example of how a marketing expert secures subscriptions to
the newsletter Marketing Makeover (800-266-8885).  This newsletter is
satisfaction-guaranteed down to the last word of the last issue.  If
you come to the 12th issue of your annual subscription and .

decide you want a refund, you'll get it.  What's more, once you sign
on, you immediately receive three bonus reports of real-life
profit-building strategies and case studies, in addition to the
newsletter.  If you don't feel these are worth it, you can cancel your
subscription and get your $97 subscription fee refunded.  The
publisher's philosophy: What do you have to lose by trying such a
profoundly beneficial offer?

Worried that an offer like this only sets you up to be taken advantage
of?  Don't be, especially when customer satisfaction is your service
mark.  Your objective here is to persuasively stat r exploit-what you
plan to do to make the customer happy.  Guaranteeing your work can help
put your company to the test.  You'll be kept on your toes as it forces
you to be consistent in delivering quality work.  You'll be careful not
to make false promises, take on too many accounts or indulge in any
other overzealous behavior that will interfere with you delivering on
your guarantee.  For example, the position of my firm, Research Done
Write!, is "quality writing, thorough research, on budget, on
time-guaranteed."  In order to deliver on this statement, I'm forced to
manage my workload and time commitments carefully.

Prospects' buying objections (see Survival Tip #78) may provide you
with some hints on what to guarantee.  For example, the question !'How
long will this carpet last?"  may signal to a carpet manufacturer that
a guarantee against staining or fading would ease customers' worries.

As you get to know your buyers better, you'll discover what's
i-inportant to them, and you can adjust your guarantee policy based on
these customer-oriented factors.

Survival Tip #80: Introduce clients to your business in smaller bites.

There's another part of buyees aety that poses a problem for business
owners.  People are more cautious spenders these days.  Face it.  Some
buyers can stare down the most effective marketing ploys and not be
persuaded one iota.  Others are willing to spend but less likely to
commit easily, quickly or to larger expenditures.  A countersolution:
Sell your offering in smaller bites.

Neal Lubow, a sales-rep-turned-entrepreneur, revamped his
Portland-based consulting firm by offering clients a lower-risk method
.

Customer Service and Client Relations of signing on.  Lubow's decision
to do this was sparked when a client was unable to devote the time
needed to launch a new project using Lubow's services and decided to
put it on the back burner.  After Lubow made periodic follow-up
attempts, the client asked to be removed from Lubow's prospect list. 
There was a similar pattern with many other clients; they were all
reluctant to commit to long-term, big-dollar projects.  Lubow began to
find that the old sales adage "Get your foot in the door" was not as
effective in the early 90s.

In order to survive, Lubow had to make some changes in how he
approached the business.  First, he changed the business's name to
IDEAS By-The-Hour.  The name reflected his offering of services in
bite-size increments.  Next, Lubow adopted a "toe-in-the-door"
approach.  Lubow, with his repackaged service approach, reintroduced
himself to the first client.  The client liked it and used an hour of
Lubow's time.  The first hour turned into another one, which eventually
resulted in a large project.  The one-hour consultation-the
"toe"resulted in a $5,000 project-the whole body!  A no-sale turned
into a small sale, which led to a buying relationship.

It'll take creative thinking on your part to devise ways to repackage
your offering so that it's accessible from the buyer's point of view.

A cataloger or retailer, for instance, can offer a product selection
with a broad pn'ce range.  Or a service provider can work on a smaller
project and graduate to larger ones.  You'll have to work harder and
longer to make more smaller sales; however, this may be necessary in
some instances.  It's up to you.  You'll need to decide when a no-sale
is better than a small one in a client relationship.

Survival Tip #8 1: Assure buyers with postpurchase follow-up.

Whether it's a big or small sale, you can solidify- a relationship by
following up with the buyer.

Unfortunately, many businesses fall short in this area and miss out on
all the potential benefits that a follow-up conversation can yield.

First, this is a golden opportunity to show customers you care about
them and meeting their needs.  A follow-up call can quickly dispel any
feeling that you just took their money and moved onto the .

.

next sale.  Depending on the business, your follow-up window should
range from 48 to 72 hours to a week or so after the sale or servicing
process.  You can use the conversation to thank the customer for his or
her business and inquire as to how the purchase is working out.

This is also an opportune time to reiterate your guarantee policy.

Follow-up reassures buyers that you've not abandoned them and that they
can call you if they have any problems or questions later on.

You can also use the follow-up process to gain valuable customer
feedback.  If you've sold a tangible item, you can inquire about its
delivery condition or promptness.  If the customer has visited your
store, you can question him or her about the shopping experience.

If you've designed a program for a client, you should definitely
monitor the implementation effects of your work.  You can also confim
whether the buyer was satisfied with your service.  If there is a
problem, you'll be in a position to correct it quickly (see Survival
Tip #92) and squelch any dissatisfaction before it starts to mount.

Every customer isn't a squeaky wheel, so you'll need to be proactive in
soliciting feedback.

Postsale follow-up is also the time to educate buyers about your other
offerings (see Survival Tip #82).  You can mention your other products
or services related to what they've already purchased.  Or if they
mention a need, you can point out how your business can help in that
area, too.  You can also tell them about your customer communications
program (see Survival Tip #86) or explain that you conduct periodic
follow-ups.  Then, your phone call or other mailings will be greeted
with expectancy rather than with clueless curiosity.

Did you know that seven out of 10 customers who patronize a business
only once have no specific reason for not returning?  Turn the odd
around by inviting a customer into a relationship with you.  One
bootstrapper, for example, sends new customers a short letter welcoming
them to her business and includes a discount certificate toward their
next invoice.  This type of follow-up shows your gratitude for people's
business and invites them to do business with you again.

Plus, the discount gives them an incentive to return.

On that note, here's another idea to help you create long-term
customers

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Customer Service and Client Relations Survival Tip #82: Scrutinize the
buyer's intentions-it'll help you build relationships instead of
one-time sales.

Every business starts off devoting its energy to attracting new
customers.  How do many businesses err?  They get stuck on attracting
new customers while neglecting to get more business from their existing
clientele.  Consider another customer service truism.  It costs five to
10 times as much to attract a new customer as it does to keep an old
one.  Therefore, any effort you expend on developing a loyal patronage
base is worth it.

Inevitably, there are going to be folks who patronize your business one
time-whether that experience was good or bad.  You can gain a head
start in evaluating a relationship's potential from indicators revealed
in discussions leading up to a sale commitment.  For example, the
manager for a project I was working on gave me a lead on an opportunity
in another department.  While explaining the project, the other
department's manager said, "Our goal right now is to sell products.

We're not focusing on relationship-building strategies at this time."

My antenna immediately went up.  Experience has taught me that this
type of attitude toward customer relationship-building would also apply
to me-and that steady assignments from this client would be
slow-coming.  As I listened to her elaborate on the company's
priorities, I got a better feel about the company's spending attitude.

This company was really only committed to the single project.

You can adopt a similar strategy by creating an "intake" form-a form on
which your new clients will fill in information about their plans,
goals or future direction.  It's your business's version of the
questionnaire people fill out the first time they visit a new doctor.

Or you can do an informal intake, the way I did, just by listening to
what is being said.  The information can be used to help manage your
communications program more efficiently and pace your follow-up efforts
more effectively.  As with my client, I wouldn't abandon my efforts to
nurture the relationship.  However, my communications cycle would focus
on staying in touch without pestering her about work that hasn't
materialized yet (see Survival Tip #86), and I wouldn't allow my
efforts to take away from catering to my better clients.

You can also build relationships by learning your customers' needs and
continually educating customers about your business.  Often, clients
patronize you for one need, not realizing how you could help them in
other ways.  For example, someone who has a resume written may not know
that you provide interview coaching as well.  Or a person may buy a
cake and be unaware that your bakery provides fullservice catering. 
It's your job to inform clients about everything you offer.

Tools such as a customer newsletter, informational postcards or
detailed brochures should be strategically distributed (see Survival
Tip #86).  Case studies describing how your business solved a
customer's problem can also help build awareness.  (However, you should
get customer clearance before you begin sharing such information.)
These can be printed in a newsletter or sent out as single mailings.

Survival Tip #83: Squeeze 80 percent of your business from

20 percent of your customers.

Nothing sells better than credibility.  Once you satisfactorily service
a buyer, you have established credibility and can shift your focus to
selling more to the same customer.  When you have a pool of satisfied
customers, you can use them to run a more profitable business.

You already know where your customers are, so you minimize expenses
associated with trying to reach them.  They're already familiar with
your business.  If there was a problem, you handled it.  They've
experienced firsthand how you honor your guarantees.  You wowed them by
overdelivering on what you promised.  Your service style has inspired
confidence, and they're ripe to buy from you again, minus the front-end
sales lead time.  Although they are your smallest market, all of these
factors, make these customers your most profitable segment.

Consultant Bob Serling shared with me the dilemma of a mailorder camera
business owner.  The company's leading sales item was an inexpensive
35men camera; more than 4 million units have been sold.  The company
wanted to expand its business, but it felt the market had been
saturated, plus the current advertising wasn't generating any new
business.  Mr. Fix-it Serhng suggested that the company use a
different strategy to expand-relying on its existing mailing list.

He advised the company to send a letter to everyone who had bought the
camera and offer it to them again, suggesting that customers buy
another one as a gift item, or for themselves if the first one was a
gift .

Customer Service and Client Relations for someone else.  More than 50
percent of the list responded.  Using the existing customer base
further, Serling advised the company to offer those same customers a
related product.  The camera company offered a special flash attachment
for the camera, and that, too, sold exceedingly well.

Your current customers can be recaptured by the same product or other
related products.  You nan also facilitate sales through a regular
calling schedule.  When you monitor customers' purchasing cycles
through your database (see Survival Tip #85), you can place calls
around the time when they buy.  You can use the conversation to discuss
their regular order or encourage them to buy something else from you.

Also, as you monitor their needs through surveys (see Survival Tip #88)
and day-to-day feedback, you can move quickly to introduce new
offerings to them.  Remember, your best customer is the one you already
have, so devote a lot of energy on reselling to them again and again.

Survival Tip #84: Tout your credibility with testimonials.

The first compliment you receive from a satisfied customer should be
turned into a testimonial- Most customers will put their words in
writing for you, even on official letterhead, if you'd like.  In fact,
consider collecting testimonials as a regular part of your operation.

Testimonials can be effective in putting to rest the doubts of a
skeptic who isn't completely sold on your business.  It's one thing for
you to say persuasively what your business can do, but a third party's
input can influence people differently.  Testimonials can work as
effectively as a media placement (see Survival Tip #62).  People trust
editorial coverage or customer comments as unbiased opinions.

You can put testimonials to work in a number of ways.  You can include
them in a portfolio or presentation package.  You can excerpt from them
and include them on product packaging.  You can display them
prominently in your office.  You can even incorporate them into ads.

Sylvia Blishak of Accent on Travel in Klamath Falls, Oregon, put her
own twist on testimonials.  She took letters and postcards from her
clients and created a "testimonial collage" with them.  Many of the
postcards were sent by clients while on trips the agency had .

coordinated for them.  The top of the collage is titled: "A peek inside
Accent on Travel's mailbox The agency includes the testimonial sheet
inside of travel information packages and as part of regular customer
mailings.

Before you start sharing customers' good words, be sure that you obtain
their permission in advance and explain how you plan to use the
endorsements.  You should secure as much leeway as possible from
customers so you'll have fleidbility in using their quotes.  For
example, with permission, you'll be able to display a testimonial in
your office, as well as excerpt and place parts of it on other items,
citing the name and home town of the person who said it.  Another
advantage: There really isn't a time limit on a great testimonial.  You
can keep using it for years to come!

Survival Tip #85: Connect to lifetime profits through your customer
database.

Saks Fifth Avenue sends regular customers who become inactive a
10-percent discount coupon, along with a letter saying, "We haven't
seen you in awhile."  A neighborhood dry cleaner sends its regulars a
$5 gift certificate for their birthday.  These companies are able to
monitor their customers closely because they have a database at work.

Gestures like these communicate that you're paying attention and
listening, and that you're interested in making customers happy and
retaining them as customers.

Studies show that a good customer list will generate a response that is
three to five times greater than that generated by other types of
prospect lists.  A good customer list is a list of potential customers
you've developed yourself with names of people who've bought from your
business, who were referred to your business or who responded to one of
your marketing devices.  Other types of prospect lists include those
bought from another party, listing people who are interested in your
type of offering but who have never been in contact with you before.

If you began a newsletter aimed at small-business owners, you could
reach your potential audience in one of two ways:

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Customer Service and Client Relations

1. You could rent a prospect list from another entrepreneurial
magazine, which sells the names of its subscribers, or from a market
research company that's developed a list from such sources as recent
business license filings, the membership data of an entrepreneurial
association or the names of people who've attended an entrepreneurial
trade show.

2. You could use names of people who responded to an article about your
newsletter, who stopped by your booth at a trade show and talked with
you for a moment, etc. The difference is you're contacting people who
are already farnihar with you, even if they haven't bought from you.

With the first type of list, you're dealing with cold contacts.  This
is where many entrepreneurs get stuck.  Just because people have bought
entrepreneurial material from other sources in the past doesn't mean
they'll be interested in your offering.  Your pn'ority should be to
develop and maintain a list of your own.  With your own list,
recipients receive your information thinking, "Oh, I remember hinvher
from the'trade show," rather than 'who is sending me this?"

Scores of businesses don't even have an active database of customer
information.  Without one, you're disconnected from the source of
lifetime profits.  A database helps you cater to your customers.  The
database-building process begins with your first customer or prospect
encounter.  Collect basic information, such as name, address, phone
number, fax number, e-mail address and how he or she heard about you.

Do this with every new customer or prospect.  This basic information
will help pinpoint various ways you'll be able to communicate with
them, audit the effectiveness of the marketing device that led them to
you or thank or follow up with whoever referred them.  Then, expand the
information intake a little.  By asking how they plan to use the end
product or who it's for and making some notations about comments made,
you position yourself to specialize your commuilication and offering to
this customer.  You should also use every encounter with customers to
gather more information about them and build up the file.

You can use the database to monitor buying habits, and in turn,
pinpoint your best customers.  You'll then be positioned to shower
special attention on those who contribute most to the profits of your
business (see Survival Tip #83).  You'll also be able to personalize
your communication messages.  The use of a database can put you on the
path to optimizing your customer base and sales volume to attain the
highest profitability.  Don't delay.  Start building a customer
database today.

Survival Tip #86: invest in a customer communications program.

Communicating with your customers (and prospects) on a regular basis
contributes to the development of a relationship.  Staying in touch
helps reinforce your interest in the customer and your commitment to
understanding and fulfilling their needs.  You can develop a program
that allows you to stay in touch by phone, mail, fax or e-mail, or in
person.  The avenue you choose should take into consideration your
customers' preferences.  For example, during your postpurchase
follow-up call (see Survival Tip #81), you could inquire as to how the
person would prefer to receive future mailings.  Or you can develop a
preferred customer application and explain to people that the
information is for your database (see Survival Tip #85) and will be
used to inform them of advance notice offers along with other mailings.

The application can have a section for checking off their communication
preferences.

A popular component in a communications program is a free promotional
or customer newsletter.  This can be effective in educating your
customer, encouraging repeat business and expanding your customer base.

It also works as a value-added tool when you provide readers with
useful advice and information.  Tips, statistics, resources, or client
news catering to your customer's interest will ensure that the
newsletter gets read.  It need not be lavish; two to four 81/2 x 11
pages will do.  It should surely communicate your business identity.

For example, a wordsmith's newsletter will be ineffective in inspiring
confidence if it's full of grammatical errors.  You can even make it
interactive by inviting readers to send in questions for you to answer
or include a savings coupon.  A helpful resource: Elaine Floyd's
Marketing with Newsletters: How to boost sales, add members & raise
funds .

Customer Service and Client Relations with a printed, faxed or Web-site
newsletter (for ordering information, see page 158).

Postcards are effective for staying customer-connected.  You could
provide customers with a problem-solving tip of the month, a summary of
upcoming events that cater to their interest, a special sales
invitation or a service call reminder.  Some business owners have
created newsletters on postcards.

Manning a phone program can also be effective in some relationships.

An engineering consultant's program includes periodically calling
customers to share industry information of interest; he also calls
clients for their expertise on other projects he's working on.  Your
customer relationships may also lend themselves to staying in touch
through occasional dining or get-together outings.

You'll be able to retailor the program as your customer relationships
grow.  When you learn more about people, your imaginative energy will
work wonders in developing other communication strategies.

Be sure the program complements your company's overall consistency in
communication by contacting people in regular, steady intervals.

Survival Tip #87: Don't confuse a regular customer with a satisfied
one.

People will patronize your business even though they're dissatisfied
with your service.  There are several factors that contribute to this
behavior.  A regular customer may not be aware of your competition, so
the person believes that the service you're providing is as good as it
gets.  Or the customer may have gone through a slew of bad providers
and you're better than they were, which may not be saying much.  It may
also be too inconvenient for the person to switch or shop around right
now, so it's better to stick it out with you in the meantime.  Or
perhaps you're just cheaper than the rest-in which case you'll be
quickly abandoned when an even lower-cost business, or a slightly more
expensive one with much better service, comes along.

Does all this sound unbelievable?  Then consider how many times you've
shopped in a store where you disliked the service because you were too
busy to drive across town.

.

All business owners should be concerned because a dissatisfied regular
customer works against you in subtle ways.  First, the person is
unlikely to give you any referrals (see Survival Tip #91).  The person
knows deep inside that he or she is dissatisfied with you and wouldn ,
t dare risk referring someone over to your business.  Second, the
person probably doesn't buy anything extra from you, which nullifies
the 80/20 rule (see Survival Tip #83).  Third, the person will probably
dump your business when you least expect it.  If your absence or
unavailability ever forces the dissatisfied regular to go someplace
else, you may be unknowingly signing your own release papers.  The
person may stumble into making a switch, and you'll then lose him or
her for good.  It's at this point the person will proceed to tell nine
others of his or her dissatisfaction with your business.

A survey of dissatisfied customers revealed that they never complain
because: They feel it's not worth their time; they feel the provider
won't listen if they do complain; and they feel the company won't do
anything about the complaint.  If you're not getting referrals or
unsolicited compliments from your customers, you may be nursing a
dissatisfied clientele.  A customer-driven business makes it a priority
to satisfy its customers' needs.  When you do, theyll think twice about
switching away from you.  Remember, though, you must provide service
that is good from the customer's point of view.  You can find out if
you're on track when you flat-out ask them (see Survival Tip #88).

7 WAYS TO INFLUENCE CUSTOMERS AND WIN LOYALTY 1. Say thank you.  Sound
simplistic?  Recount the number of times you paid for a product or
service, were handed your change or receipt and sent on your way
without a word of thanks.  Always remember to express your appreciation
to anyone who supports your business.  Make sure your workers
understand the thank-you drill, too.  There will also be times when a
customer's actions warrant a special note of thanks.  This endearing
principle also applies to your networking and referral relationships.

2. RAespect your customers' privacy.  Don't be so quick to make a buck
off your customer database.  People are becoming increasingly con cemed
about how private information they give is being used.  Your customers
may willingly share information with you, not expecting you to turn
around and sell or use it outside your business.  Always give your
customers .

Customer Service and Client Relations the option of not having their
information released.  By asking them first, you'll find that this
courtesy will be appreciated in the relationship.

3. Give gifts.  Incorporate some form of gift-giving to your best or
repeat customers.  You can honor them with a gift of appreciation at
year-end holidays, customer birthdays or anniversaries.  A study by the
University of Florida's advertising faculty revealed that the top gifts
businesspeople give are officelbusiness accessories, food and personal
gifts.  Survey respondents indicated that customers' responses to
receiving gifts from these categories were the most favorable.  Treat
customer gifts with the same care as ones to a good friend.  Try
individualizing your gifts to avoid a whole appearance.  You can find
some useful tips in The Creative Gift Giver newsletter (see page 158
for ordering information).

4. Mind your manners.  No matter how friendly your rapport is with a
client, don't make the mistake of being too familiar with them.

Speaking or joshing in an inappropriate manner can nun a relationship
and create a question mark in someone's mind about your professionm.

Absolute nono's: using profane language (not everyone in the world
swears!), mispronouncing or shortcutting customers' names, bemoaning
about your personal problems and gossiping or bad-mouthing another
customer or your staffers.

5. Stay customer-driven, not competition-driven.  Many businesses feel
pressured to install special features and services based on what their
competition is doing or provide services based solely on their own
preferences or considerations.  But did you check with your customers
to make sure it's something they will value?  For example, because it
seems customer-focused, a business may imtall a 24-hour faxback
service, allowing customers to call in, listen to a menu of information
they can have faxed to them, punch in their selection and fax number,
and receive a fax within minutes.  But prodding customers may reveal
that a toll-free fax line is what's really needed.  Whenever you forget
your customers' needs you're merely giving lip service to the
customer-driven philosophy.

6. Suppress a '-stomach" attitude.  Your business may have more than
enough business.  If you're not careful, you'll experience the downside
of your success.  Sometimes a full plate can create an apathetic
attitude toward additional business.  A client called a business owner
with a referral lead.  The business owner began spouting off about how
busy he was and that he hoped the lead had the money to pay for the
services.  The client was appalled by this arrogant attitude and began
giving repeat business that was hungrier-and more grateful.  Don't
abandon what made you successful.

7. Celebrate Customer Service Week.  The International Customer Service
Association (I.C.S.A) sponsors a special week in October.  You can get
more information from I.C.S.A at 800-360-I.C.S.A (faxback: 800-203-I.C.S.A; Web
address: www.icsa.com).  Although customer service is a daily priority,
you can use the celebratory week to do something special for valued
customers, raise awareness with your employees or jump-start a new
campaign.

s to a usistrategies .I.

Survival Tip #88: Survey customers for valuable feedback.

Your assessment of your business's service may differ drastically from
a customer's, particularly if you've adopted service strategies based
on industry norm or past practices-void of customer input.

Customers are the lifeline of any business; your business exists to
meet the needs of customers, so their view of how well you're doing is
vital.

Implementing an organized and systematic program for soliciting
customer feedback can give you these advantages for remaining at the
top of your customer service game:

1. You'll get a quick head count of how many dissatisfied regulars are
on your books.

2. You'll get in touch with your customers' thoughts or unexpressed
feelings about your business.  You may find that someone appreciates
your work but resents having to leave messages all the time or being
charged a rush or cancellation fee.

3. You'll find out customers' priorities, ensuring that service is
delivered in a fashion they value and need.

4. You can gain a head start on developing and offering new or better
solutions to their problems, which can translate into other profit
centers for your business.

5. You can clear up any gray areas that surface from their comments.

For example, a customer may make a new service suggestion for something
that's already part of your business.  This could be a red flag that
you need to invest more in educating customers about your overall
operation.

You can approach the surveying process in a few ways.  You could host a
one-question poll, querying everyone during a designated week or month.

You can have customer satisfaction cards displayed in your business and
ask people to fill them out before they leave, or you can send them out
under separate cover.  You should also use each customer encounter as a
feedback opportunity.  Every order, confirmation or follow-up call can
provide you with valuable insights.  You have to proactively listen to
what's being said and encourage the person into Customer Service and
Client Relations further conversation with you.  A comment such as,
"It's been a trying day" may mean your business had something to do
with it.  Or you can simply ask people, "How'd you like the service?" 
the way restaurants and other service providers do at the end of your
visit.

A more formal approach is to conduct an annual survey.  You can create
a simple questionnaire of about five to 10 questions.  You should ask a
combination of questions: some that allow the customer to grade or
numerically rate your business and some open-ended ones that'll give you
ideas and comments to sift through.  Some examples of rated questions:
How would you rate the quality of our work?  or How well are we meeting
your needs?  Some examples of open-ended questions: What do you like
best about our company?  What do you like least?  Share three ways we
might be better able to serve you.  Is there anything about our
business you find confusing or unclear?  (By the way, if you own an
established business and haven't ever surveyed your customers, shame on
you!)

According to a recent International Customer Service Association
membership survey, companies who measure customer satisfaction do so
through written surveys or telephone interviews.  You can follow suit
with your program.  If you choose phone interviews, contact your
clients in advance to set up an appointment.  Mailer surveys should
include a postage-paid envelope for easy return.  Follow up with a
participation thank-you note.  Some feedback may require one-to-one
follow-up to clarify- or address specific concerns.  you comb through
the feedback, pat yourself on the back for things you're doing light.

Unflattering feedback, however, should be swallowed gracefully and
turned into opportunities to profit from change.

Survival Tip #89: Charm ' em with extras.

Give a little, and you'll gain a lot of customer loyalty.  Amazingly,
you can do this without putting a dent in your wallet.  I've done so on
a number of occasions, costing me time and a little postage.  For
example, a Staples representative gave me dozens of $10 discount
coupons at an expo where I spoke.  I picked up extra resource guides
and product sample packages from each expo booth.  Later, I bundled up
the goodies and sent them to my best customers and a few to my personal
and professional service providers.  They all went wild over this
unexpected (and useful) treat.  Another time, I provided a client with
a media placement lead that resulted in him receiving hundreds of
product orders.  The average person enjoys and appreciates receiving
something pleasantly unexpected, and your patrons are probably no
different.  Your business is in a much better position to dole out t4
extras" than a larger business; your front-line contact gives you ample
opportunity to take what you know about customers individually and
shower them with personalized treats.

Another way to charm your customers is to make them feel like insiders.

You can coordinate cooperative arrangements with other vendors that
allow your customers to get discounts on their product or service.  If
you become privy to some information that a customer may be interested
in, why not pass it along?  If a vendor is offering you special
pricing, explore the possibility of letting your customers in on the
deal.  You'll want to be sure it's clear to customers that the 'extra"
is a direct benefit of being associated with you.  For example,
consider being involved in setting up the contact appointment or
working as the drop-off point for an item to be picked up.  Your
involvement will reinforce your standing as the benefitial link.  It's
a win-win arrangement, too.  The vendor is getting introduced to new
customers, your clients are getting a sweet deal and you're the
wonderful middle person building loyalty on both sides.

The information you gather over time about your customer will position
you to make other unexpected gestures.  Listen.  Stay alert.

And the next time you come across a fabulous "extra," you'll know
exactly who to send it to.

Survival Tip #90: Become an information source clients cannot live
without.

Information is the currency of exchange in networking alliances; it can
work in your customer relationships, too.  You can begin to position
yourself as a font of information by taking your customers' interests
and matching them with sources they're not finding on their own.

As others in your networking circle act as your eyes and ears (see
Survival Tip #64), you can work the same way for your customers.

.

Customer Service and Client Relations People have confidence in
knowledgeable folks.  Being conversant on topics outside your
profession can indicate to others that you're someone in the know.  In
the course of educating yourself, you can keep your eyes peeled for
information that'll be useful to your clients.  It may be an article, a
book or a press release.  For example, I regularly receive press
releases from the Census Bureau, a service available to professional
researchers.  There have been many occasions when I've passed the
advance information along to my clients and colleagues.

A shining example of an information connector: David Wood a copywriter,
publicist and marketing consultant based in Weare, New Hampshire.  Wood
provides his services to the construction industry; he's made it his
mission to connect construction entrepreneurs to resources they might
otherwise bypass.  Wood crams each issue of his quarterly newsletter
with useful, entertaining and sometimes odd information.  I even look
forward to receiving it.  One issue, for example, included tidbits on:
caring for your pet dog; how to use golfing to solidify a client
relationship or build one up; financial tips and statistics; and
reviews of books on business and topics of general interest.

Wood admittedly spends three hours a day combing through a potpourri of
material.  He sends the missive to clients, corporate friends,
prospects and the like.  (He'll send you one, too.  Just call him at
800-HEY-WOODY.) Its high pass-along readership, coupled with
word-of-mouth, has positioned Wood as a valuable information source in
his audience's mind.

Consider working as your customers' concierge, building up a referral
network.  You can maintain your own ready reference database with
everything from professional to personal service sources.  Of course,
you'll need to thoroughly screen out your referrals to ensure that
you're sending them to quality providers.  You can mention your
referral database in conversation or include it in your customer
newsletter or as a bill-stutter reminder.

Big businesses aren't providing this type of personalized serv ice to
their customers, but you, as a small firm owner, can.  The strategy
works best when you know your customers and are clearly catering to
their needs.  Personalized service makes clients think twice about
divorcing themselves from your business.

.

Survival Tip #9 1: Ask for referrals straight out.

Your customers hold the keys to the doors of business from other people
they know who'll value their recommendation.  You'll need to be
assertive, though, as the average satisfied customer only tells five
other people.  You can encourage customers to talk up your business
through a referral program.  You should immediately enroll every person
that patronizes your business into the program.  You can introduce it
through a letter sent out a few days after they're served by your firm,
catching folks while they're still feeling enthusiastic about your
work.  A straightforward letter should explain to the customer that
your business is built on providing quality service that leads to
repeat and referral business.  Include some business cards for them to
distribute.  Whenever people are in your office, you can also remind
them about the program.

People are inspired by useful incentives, and your referral program
should include some.  Offering a percentage discount on their next
purchase or a commission fee on leads that Turn into actual sales is
something to get excited about.  You could even host an annual referral
drive.  One bootstrapper offered $1,000 to the customer who brought in
the most referrals during a given period.  Another bootstrapper's
client has so many accrued referral dollars that it's been months since
she's paid for anyffiffig.  But what you're giving away in incentives
can pale in comparison to what you're gaining in additional business.

There are a few tricks that'll make your efforts more productive.

You'll improve the quality of your referrals by being specific in what
you ask for.  Rather than asking, "Do you know anyone who needs
financial planning assistance?", ask "Do you know a two-income
professional family with young children?"  An online bootstrapper
shared her scripted pitch: "I'm calling you today to make sure you know
to pass the word that I'm looking for potential advertisers for a free
multilevel marketing newsletter I am starting.  The first issue 20,000
copies-will be out on January lst.  Who do you know that will want this
exposure?"

If you feel that a client is reluctant to offer any referrals, don't
dismiss his or her attitude as uncooperative.  Sure, the person may not
want to be bothered, but it could be something more.  Confim that he .

Customer Service and Client Relations or she would indeed refer others
to you.  Your double-checking will help you root out any dissatisfied
regulars (see Sumval Tip #87).

Survival Tip #92: Act swiftly to correct a problem.

.

I' .

An irate, angry customer doesn't have to be a lost one.  Studies have
revealed that 95 percent of dissatisfied customers would do business
again with a company if their problems were solved quickly and
satisfactorily.  its up to You to Turn the situation around.  When a
customer begins to explain a problem, control any impulse to react
defensively.  You can win back disenchanted customers just by
listening, so let them do the talking.  If Your company is at fault,
acknowledge the error and apologize.  You can appease angry or annoyed
customers when you let them know your willingness to correct the
problem to their satisfaction.

Before you offer up remedies, be sure to ask the customer how he or she
would prefer the problem be resolved.  A customer may be amenable to
your replacing an item or redoing the work, thus giving you a second
chance.  However, if a customer is adamant about a full or partial
refund, it may be in your best interest to honor the request, even when
it's not your policy to do so.  Your yielding can help squash any bad
word-of-mouth advertising.  Once you and the customer have agreed on
how to resolve the problem, quickly follow through on your word.  Don't
drag your feet.  If You're given a chance to correct the work, make it
a priority to get it done.  Remember you're trying to win the client
over again.  If a refund is in order, then quickly refund the
customer's money.

If your company is not at fault, don't rub it in a customer's face.

Instead, after the customer has been able to vent, offer an explanation
that focuses on helping the person avoid any similar situations in the
future.  And you should still express regret that the customer had that
negative experience with your company.  When employees are involved in
the dispute, you should take time out to retrace the problem with them,
providing them with the necessary retraining.  You can adopt a similar
approach for winning over a customer who expresses some dissatisfaction
in your Postpurchase follow-up calls (see Survival Tip #8 1).

Survival Tip #93: Stay close during the servicing process.

Vv'while postpurchase follow-up is important for all businesses,
service providers should pay special attention to how they communicate
during the service process.  If you're working on a project that'll take
30 to 90 days or longer to complete, for example, you should have a
communication schedule in place for checking in with the client.

There are several reasons for doing so.  First, you'll be able to
ensure that the project is on track.  Second, you'll be able to deliver
a final product that's in line with what the customer requested.

Third, periodic check-ins can help prevent a client from being
unpleasantly surprised by an end result they feel is unsatisfactory.

When you're preparing for a long-term project, think about how to stay
close to the client.  One consultant calls mechanisms for doing this
"timely client relations tools."  Your mechanisms can include a phone
call, fax or e-mail check-in.  You should be prepared to present a
schedule to the client as you're ironing out the details of a project
and its delivery schedule.  These briefings can benefit your
relationship tremendously.  You can use the session to provide the
client with a progress report, communicate any problems that may have
arisen, allow the client to communicate any desired changes or reassess
the project entirely.  For example, a consultant holds 60-second
check-ins for budget updates.  A professional trainer who conducts
training sessions over a three-month period has participants complete
an assessment after a few sessions.  She reviews the reports and shares
some of the workers' feedback with the company that hired her to train
its employees.  This process helps the company evaluate what it has
already received for its expenditure.

Certain service businesses, such as massage therapy, hair salons or
nail salons, would not use this particular strategy because of the
shorter time frames involved in providing their services.  However,
these businesses can stay close to the customer by confirming if the
customer would like to be served the same way as before.  Of course, if
you run this kind of business, you're going to need some notes of what
that last time involved-a special color or curl pattern, perhaps.  As
an attentive service provider, you would have gathered this information
from previous visits, right?

.

Customer Service and Client Relations In developing your own schedule,
keep in mind that the more money clients spend, the more they'll be
watching you.  By staying close, you can circumvent any buyer's
remorse.  Not only will you deliver what you promised, but more
important, you'll deliver what they want.

Survival Tip #94: Avoid misunderstandings.

Customers'attitudes will quickly sour toward your business when they
feel you should have explained an issue before a buyer's commitment was
made.  Nfiscommunication or lack of communication usually involves the
pricing and associated policies of your operation.

A common sticky point: a quote versus an estimate.  Many businesspeople
use the words interchangeably when they do not share the same meaning.

A quote implies a fixed amount that the customer expects not be
exceeded.  An estimate refers to an educated guess that may change as
work commences.  It's commonplace to honor a quote for a specified
time; be sure that's communicated to the customer.

When a job begins based on a cost estimate, the customer should be
contacted once you reach a certain dollar point inside the estimated
range; this will allow the him or her to evaluate the cost of what's
been done against the cost of what's left to do (see Survival Tip #93).

Let people know your policies up front.  If you charge a cancellation
fee, for example, the policy posted as a wall sign or on collateral
materials isn't enough.  When a customer cancels, then calls for
another appointment, you should remind him or her of the previous
cancellation.  Don't just slyly add it to the tab.  If you charge a
rush fee, let people know in advance of your taking the order.  This
way the buyer can decide whether or not paying the premium is worth it.

Other policies that should be discussed include special fees or
surcharges, time restrictions on work revisions, how long incentive or
refund credits are honored and whether or not a deposit is refundable
or can be credited toward another job.

Some businesses find it appropriate to use a customer information
sheet.  This facilitating tool explains to customers the costs and
procedures of doing business with you.  The information is verbally
explained to customers, and it should be presented to them in a manner
that will make them feel they are being shown a cost-efficient way to
work with your firm, rather than in a manner that will make them feel
as if they're being schooled by a taskmaster.  (They should be given a
copy for their reference, as well.) Courteously say where you stand,
and let customers choose their place in the workings of your business.

Survival Tip #95: Don't male guarantees or promises you can't afford to
I<eep.

"I promise to make you happy," you say to a customer or client.

What does that really mean?  Are you verbalizing your explicit or
implicit guarantee policy?  An explicit guarantee policy clearly states
what it is promising and what it will do if it fails to deliver.

Federal Express, for instance, guarantees package delivery by 10:30
a.m. the next business day or it's free (contingent upon bad-weather
delays, of course).  Conversely, an implicit guarantee is not stated;
rather it's the .impression customers have'that they can count on you
to deliver.  An implicit promise is earned through your track record of
making good on customer dissatisfaction.

While a strong guarantee policy will help your business stand out from
competitors and ease customer worries (see Survival Tip #79), failing
to deliver on a promise could ruin your reputation.  Carefully mull
over your guarantee policy.  Begin by honestly noting your reaction to
possible customer problems.  If a client asked you to redo the work
several times, would you gladly comply with the requests?  Or if a
person bought something from your store, used it and brought it back a
little worn, how would you feel about giving a cash refund?

Making promises or guarantees simply to appease people without
considering your own feelings or limits could cause you problems.  You
may find yourself begrudgingly following through, which will work
against your customer service efforts.

What quality or characteristic of your business do you believe in most?

Is it the product itself, the way you do the work or the end results it
brings to the user?  Avoid copycat guarantees (mimicking the service
promises of other similar businesses); you may end up .

Customer Service and Client Relations overextended.  Your guarantee
should play to the strength of your business, the factor you behave in
most.  When you guarantee or make promises around what you do best,
your heart mill allow your cash register to finance the policy.

Survival Tip #96: Carefully handle special requests.

I", I Part of building a relationship with clients is making them feel
comfortable with you.  Goodwill feelings may inspire a customer to ask
you for special concessions.  Some possible scenarios: A regular may
begin experiencing cash flow problems and ask you to waive your deposit
requirements.  Or one of your accounts may ask you to extend its 30-day
terms to 90 days.  New or prospective clients may weigh in with their
requests, too.  Psychologists and some physicians laccept patients on a
sliding fee scale and day-care providers will often work around a
family's budget.  Someone may inquire whether your business does the
same.

How would you handle such requests?  It's worth thinking about.

First, consider the requester's value to your business.  If it's a
customer who's been with you for years, granting special terms may be
in order.  Next, consider the magnitude of the request.  If the request
is for extended payment terms, then consider how that will affect your
overall cash flow position.  You should also consider how much of your
business comes from a particular requester.  For example, if an account
brings m more than 20 percent in payables, you may be courting danger. 
The same scrutiny would apply in instances where you agree to flexible
pricing requests.  Professionals who use sliding scales always maintain
a strict balance between those who pay in full versus those who follow
other pricing plans.

If you decide to honor the request, safeguard the arrangements (and
relationship) by claiming specific details.  For example, if the
request is a one-time proposition, make sure that's clearly understood
by the requester.  For example, if you're waiving the deposit this
time, reiterate that the next job will require one.  More complicated
requests may need to be in writing.  A letter explaining revised
billing terms or differential pricing can reinforce that an arrangement
is temporary.  If you're offering flexible pricing, you may want to cap
the arrangements with time restrictions.

Also, offer up some other solutions.  You may be able to service
customers at your usual fee, while setting them up to proceed on their
own for services the can't afford from you.  Say, for example, you run
y a full-service editorial business, providing writing, editing, layout
and design.  A customer can't really afford the whole package but
really needs your writing and editing services.  You could complete
these services for the customer but deduct the layout and design,
leaving that work up to him or her.

Survival Tip #97: Keep clients involved with your business.

Besides delivering quality work and service, customers' confidence can
be further inspired by your business's growth and development.

Many of the changes you introduce will indeed be prompted by customer
feedback.  However, there will be times when you follow trails based on
other interests or passions.  In this instance, you'll need to make
sure your customers don't begin to feel alienated by your new
direction.

For example, my clients were delighted to hear that I was writing this
book.  However, in announcing the news, I explained to them how
promoting the book and Research Done Write!

would work in concert and how our working relationship would continue.

You can curtail the tendency of your customers to see your new
direction as a sign of abandonment by involving them with your growth.

Whenever you're adding new services, experimenting with other
technologies or contemplating any type of change that'll affect your
patrons, be sensitive to how it may be interpreted on their end.  One
bootstrapper, for instance, surveyed her clients about a name change
she was considering.  The owner was leaning toward a shorter moniker
that had a more strategic alphabetical placement in the yellow pages
and a better reflection of her expanded services.  By polling clients
through a newsletter and in face-to-face meetings, she discovered that
many of them identified the business by her own .

Customer Service and Client Relations name, so she was prompted to
include it in her ads along with the new title.

Arudety gets stirred up when customers aren't gingerly introduced to
changes.  Be prepared to educate customers on how new changes will
benefit them.  For example, say you start using e-mail to deliver
completed projects to customers, rather than sending them by using
overnight mail.  You wouldn't just announce: All projects are now
delivered via e-mail.  Instead, you could announce the availability of
the service 'm your customer newsletter, asking customers to respond
with their preferences.  You could also call customers and explain the
new delivery system and how it can be a time- and money-saver-for
instance: E-mail eliminates the risk of lost packages, the
inconvenience of waiting for a delivery person and delays caused by
unfavorable traveling conditions due to bad weather.  Don't impose the
change on people.  Also, use your annual customer survey (see Survival
Tip #88) to gain insights as to how people may respond to changes.

Another way to keep customers involved is to share the bounty with
them.  For example, if you're being profiled in an article, there may
be an opportunity for you to refer the media to your customers or have
one of them mentioned as a customer.  Also, if you're in the business
of publishing and depend on advertisers to keep your publication going,
you could try strengthening their loyalty by sharing your publicity
opportunities with them.  The publisher of the newsletter The Creative
Gift Giver (see page 158 for ordering information) helps her
advertisers get publicity by sending out press releases to the
advertisers' local papers announcing: Local crater is featured in an
upcoming issue of national publication on creative gift-giving.

So, as you grow, always remember to keep your customers involved with
your business, and they'll, in turn, stay involved with you.

Survival Tip #98: Graduate from the "sole client" scenario ASAP.

.

An anchor client-one that generates the majority of your revenuecan
smooth out the wrinkles of a fluctuating cash flow.  However, you . .

leave yourself open for disaster when you become dependent on one
primary client.  It's easy to do, especially if the client is your
former employer or you're working with a downsized firm that's turned
to outsourcing.

Work arrangements that monopolize your resources and prevent you from
prospecting for other clients can be easy to rationalize.

For example, one professional justified her arrangement by saying shell
have plenty of money when the project's over.  Perhaps that's true.

But how far will all the money you've stashed away carry you if the
transition into finding new projects results in a drought?

There are other pitfalls, as well.  Working with one client may make
you a candidate for IRS scrutiny.  Whether a self-employed professional
has multiple clients is a factor the IRS uses to confirm one's status
as an independent contractor (see Survival Tips #27 and #122).

You also put yourself in danger of becoming professionally stagnated.

You may become so focused on tending to one client's need that you
become closed off from the needs of other clients.  You'll miss out on
the valuable and varied insights into marketplace needs that are
revealed through interaction with a circle of clients.  Also, people
who become dependent on one client tend to neglect their marketing
efforts (see Survival Tip #74).  If you haven't been communicating your
marketing message, it's difficult to Turn on a dime.  You'll
essentially be starting over because some other diligent marketer may
have captured your audience's share of mind.

Once you've landed one source of business, begin building on that base
immediately.  You can aggressively scout out referrals from this base
client, and if you're in a position of working with more than one
person in that company, enlist their referral support, too.  In the
meantime, follow your marketing plan and remain committed to its '
execution.  Keep in nlind that most client relationships have a life
span.

Even if you work with people for several years, there are factors that
cause a relationship to evaporate, such as death, relocation,
retirement, shifts in priorities and more.  When a relationship runs
its course, a business that works with a pool of clients will fare
better than one that relies on a single arrangement.

.

Customer Service and Client Relations

.

Bootstrapper's Follow-up File

50 Powerful Ideas You Can Use to Keep Your Customers, Second Edition,
by Paul R. Tinun, Ph.D. (Career Press, 1995); 800-CAREER-I
(201-848-0310 in N.J. and outside U.S.). $7.99.

50 Ways to Win New Customers by Paul R. Timm, Ph.D. (Career Press,
1995); 800-CAREER-1 (201-848-0310 in N.J. and outside U.S.).

$8.95.

A Businessperson's Guide to Federal Warranty Law and Writing Readable
Warranties, Federal Trade Conu-nission, Public Reference, Room 130,
Washington, DC 20580-0001; Web address: www.ftc.gov.

Two free guides giving you practical suggestions for writing simple and
easy-to-understand warranties.  Includes guidelines on advertising
satisfaction guarantees.

Creating a Client Newsletter, Best Impressions, 9847 Catalpa Woods
Court, Cincinnati, OH 45242.  An eight-page guide providing how-to
information about story ideas, design and production considerations,
uses and potential pitfalls for producing a customer newsletter.  Also
includes six sample newsletters.  $5.95.

Customer Service and Retention, Clement Communications, 800-345-8101.

A biweekly newsletter of tips and techniques on how to manage your
customer service program.  Also publishes Master Salesmanship, a
biweekly newsletter on handling sales situations.

Free sample copies available.

Customer Service on the Internet by Jim Steme (Wiley Computer
Publications, 1996); 800-225-5945.  $24.95.

Customers First: A Practical Guide to Profitable Customer Relations,
Dartnell, 800-621-5463.  A biweekly newsletter Also published by
Dartnell: a series of 15 different business management newsletters,
including Salesmanship: nps, Techniques, and Strategies That Get
Results!, Successful Closing Techniques:

.

Building the Sale from Proposal to Purchase and Overcome Objections:
Your Personal Guide to Success in Selling.  A complete listing and free
samples available.

Guide to Business Gift Giving, 444 Whittier Ave Suite 200, Glen Ellyn,
IL 60137.  A special mini-report.  Submit request for a copy on company
letterhead with SA.SE.  $1.

How to Compile and Maintain a Mailing List, Quill Corporation,
800-789-6640; Web address: www.quillcorp.com.  A free, 40-page guide
providing helpful information about building and maintaining your own
list.

How to Win through Great Customer Service, Quill Corporation,
800-789-6640; Web address: www.quillcorp.com.  A free, 64-page guide of
tips and ideas to help you make customer service a priority in your
business.

Lotus Approach, 800-343-5414; Web address: www.lotus.com.  A database
software to track customer information.

Marketing with Newsletters: How to boost sales, add members & raise
funds with a printed, faxed or Web-site newsletter, Second Edition, by
Elaine Floyd.  See page 123 of the Bootstrapper's Follow-up File in
Chapter 5 for a full listing.

Microsoft Access, 800-426-9400; Web address: microsoft.com.

Database software to track and monitor customer activity.

Service Breakthroughs: Changing the Rules of the Game by James Heskett
and Christopher W.L. Hart (Free Press/Simon & Schuster, 1990);
800-223-2336.  $35.

Strategic Database Marketing: The Master Plan for Starting and Managing
a Profitable Customer Based Marketing Program by Arthur M. Hughes
(Irwin Professional Publishing, 1994); 800-634-3966.  $35.

The Creative Gift Giver, 444 Whittier Ave Suite 200, Glen Ellyn, IL
60137; 630-790-9189; fax: 630-545-2417; e-mail .

Customer Service and Client Relations address: CASw-riteaol.com.  A
quarterly newsletter of imaginative and creative techniques for
gift-giving.  Four issues: $15.  Sample packet of two back issues and
several special gift offers: $9.

The One to One Enterprise: Tools for Competing in the Interactive Age
by Don Peppers and Martha Ptogers (Doubleday/Currency, 1997);
800-323-9872.  $24.95.

The One to One Future: Building Relationships One Customer at a Time by
Don Peppers and Martha Rogers (Doubleday/Currency, 1993); 800-323-9872.

$15.95.

.

Chapter 7

0 rdanaging 0 our usiness dreams begins responsibility."
-William Butler Yeats, Irish poet and dramatist, Responsibilities
(1914)

Survival Tip #99: Manage your business with respect and attention.

You treat your customers well, and they love you.  But how do you treat
your business?  Many entrepreneurs behave exemplary service is
synonymous with a well-run business.  It's only part of the equation.

It took one bootstrapper years to make this connection.  Delivering
quality work and service was her trademark; customers' unsolicited
compliments confirmed it.  But she was operating without a playbook;
she handled situations as they arose.  She often ended up on the short
end of deals and agreed to arrangements that weren't in the best
interest of her business.  The business began to run her instead of
vice versa.

What does a well-run business look like?  It creates and uses an in
temal playbook for its foundation.  Most big business offices have an
operations manual (see Survival Tip #100).  It's a vital tool and can
work for small offices, too.  How else are you going to know where to
draw the line in challenging situations or what your policy is on
bounced checks?  A well-managed business doesn't cheat itself out of
opportunities because it's disorganized; it has policies and services
in place that make it run like a well-oiled machine (see Survival Tips
#105 and #115).  Owners of tip-top operations know that high sales and
heavy foot traffic don't always equal profitability; they stay aware of
their price position through testing strategies (see Survival Tip
#106).

A well-managed business has a Captain who's physically and emotionally
healthy (see Survival Tips #116 and #117); it's hard to run a business
when you're exhausted all the time or allow the business to rob you of
life's pleasures.  Your business needs to be nurtured; your respect and
attention shouldn't only be reserved for your customers.  When you
neglect to manage your business well, you work against yourself, the
dream and its survival.

Survival Tip # I 00: Live by a set of standard operating procedures.

As mentioned in Tip #99, an operations manual can serve as your
management script.  It provides you with a guidebook for managing your
business.  Your tailor-made manual can be as short or as long as you
like.  ltll benefit you most when you use it to govern your client,
supplier and employee relationships.  Referring to your manual will
help you sidestep the problems associated with a "winging it"
manag,ement style.  It'll provide you with a foundation for handling
problems, setting up new accounts and overseeing your business in
general.  It can rescue you in an overzealous moment when you may
ignore an important detail.  Use of a manual allows you to work from a
responsive base, not a reactive one; you'll have guidelines in place to
measure special requests against (see Survival Tip #96).

Your manual should allow you to respond without stuttering when asked
what your policy is on a particular issue.  For example, someone may
call and ask: "Do you offer credit?"  Some client relationships warrant
billing terms while others do not; you'll need to clarify some .

Managing Your Business guidelines for yourself to work from.  Your
manual can include any of the following:

o Information checklist for new accounts or for qualifying for credit.
- Payment policy-that is, deposit requirements, billing terms, etc. 
Billing and past-due collection procedures.

Customer complaint procedures.

Guidelines for selecting vendors-location, track record and turnaround
times.

 Criteria for outsourcing projects and selecting and veng information
on other professionals.

9 Guidelines for pricing, quoting or bidding on jobs.
- Etiquette for manning the phones.

These suggestions can be used as building blocks for putting together a
manual based on your business type.  Share the manual with your
employees; it'll help them understand more clearly the workings of your
business.  Update and revise it as your operation grows, incorporating
new sections or addressing issues that arise in your day-to-day
experiences.

Survival Tip #101: Be detail-oriented.

Haste makes waste and skips every detail in between.

focus only on just do it, do it, do it, you're bound to overlook a
detail that'll come back to haunt you later.  It isn't necessary to
become a detail fanatic; however, your business should have an aura of
deta'ledness to it.  A client's excitement about launching a project
can be contagious.  But before you run with the assignment, have all
the questions in your mind been answered?  This is when your standard
operating procedures can save you (see Survival Tip #100).  Have you
met everyone you'll be working with?  Is it clear who will provide what
kinds of materials for you to work from?  Do you need a purchase order
en you

number to get paid?  Ironing out details like these can help eliminate
misunderstandings later (see Survival Tip #94).

Detail is important when you employ others or contract with
selfemployed professionals.  It's amazing how many businesspeople hire
workers or subcontract work out to others without checking references.

It's like handing a stranger the keys to your home; you're granting
them access to a cherished asset-your business.  Have you verified the
type of work the person has done in the past?  Is the person truly an
independent contractor?  Do you have a copy of a current business
license?  Is a nondisclosure form appropriate for the working
relationship?  (A company may have an independent contractor sign one
of these forms to keep the details of a developmental project from
being leaked to the marketplace or competitors.) Even people who are
recommended by referral should be checked out.

Whenever you commit to a financial obligation, the absence of one
detail can lock you into an arrangement.  One bootstrapper learned this
lesson the hard way.  She paid a cash binder to begin negotiating the
terms for taking over a business.  Once the deal was solidified, she
discovered that the existing suppliers' contracts weren't transferable
to the new owner-a major setback because the deals were needed to keep
the business profitable.  Whether it's a maintenance contract or
special service purchase, make sure you understand what you're paying
for and your options for terminating the relationship.  What are you
(and they) responsible for?  What recourse do you have if they (or you)
don't perform?  If an arrangement is legitimate, others will appreciate
your attention to detail.

Besides building confidence in your ability, developing an eye for
detail will protect your business and relationships.  "Just do it" may
promote Nike well, but focusing on the details will work better for
you.

Survival Tip #102: Tap into free and low-cost trai ni ng network.s.

Many entrepreneurs become certified in business management through the
curriculum taught at "Mis-University."  They learn lessons from the
experiences of misemploying, miscalculating, mispurchasing .

Managing Your Business and mismanagmg- Mistakes such as these can be
costly, and in some instances, deadly for the business.  There's good
news, though.  You can minimize on-the-job mistakes through free and
low-cost training opportunities available to novices and more
experienced bootstrappers alike.

If you've been laid off from your job, you may be able to participate
in a free job training program for displaced workers that offers an
entrepreneurial training track.  Title III job assistance programs for
displaced workers are grant-funded by local and federal government
departments.  Displaced workers are usually referred to the programs
through unemployment offices.  To qualify for a Title III program, you
must be unemployed and apply to a program serving your residential
area.  (Title III programs are not to be confused with the private
outplacement services, workshops or training that your company may
offer you upon terminating your employment; there's a cost to
participate in these.)

Title III programs provide eligible participants with training in
business fundamentals over a set time period, and upon completion, some
programs offer access to mentors and to loan pools for financing
startup businesses.  For example, the DownHome Washington program
offers training along with mentorship follow-up and administers a
special S.B.A Nhcroloan Fund in 13 Washington state counties (see page
184 for more information).  You may be able to connect with a program
through your local Private IndustrY Council (PIC).  There are more than
600 PICs nationwide (see page 186 for more information).

You may also be able to benefit from the Self-Employment Assistance
(SEA) program.  This federal provision allows states to establish
programs in which qualified unemployed people can use their
unemployment benefits as a self-employment stipend and receive
entrepreneurial training.  Each state must pass legislation to
establish the program.  So far California, Connecticut, Maine, New York
and Rhode Island have authorized SEA-type programs.  Check with your
local or state employment development department.

Don't overlook opportunities available through your trade, professional
or networking associations.  Many offer members free learning
opportunities.  The Association of Black Women Entrepreneurs, for
instance, offers the WIN TECH program-a one-year, mini-MBA program,
underwritten by corporate sponsorships, that gives participants .

(both men and women) marketing-intensive training.  (See page 184 for
more information.)

Need to improve your technology skills?  People 55 and older can learn
computer technologies through SeniorNet's nationwide learning centers
(see page 186).  Others interested in tackling the Internet can take
free online classes through the Spectrum Virtual University
(calendahorizons.org).  Your local library may also be a source for
training.  Many libraries have received grant funding to set up public
workstations and give one-on-one Internet training.

You can also create your own free training opportunity.  Consider
asking a business owner.if you can work as an apprentice or volunteer.

You'll be able see first-hand what it takes to run a particular
operation.  In your search to find or create opportunities, you may
also find some other possibilities in the business startup package you
ordered (see Survival Tip #26).

Survival Tip #103: Protect your profits with a business "filter."

The formula for profitability: Stay focused.  You can safeguard your
focus by having a "filter" against which you'll measure all your
market-, product- or operational-related decisions.  Think of a filter
as a mesh screen made up of the strengths, customer base, purpose and
market position you have defined for your business.  Any opportunities
that come along must be "filtered" through this screen; if they don't
fit what you've defined for your business, you should pass on them.

Even when the most attractive opportunity comes along, a filter can
help you make a business decision based on soundness instead of
emotion.  A filter will help your business stay on track in its
development, progressing steadily toward fulfilling your goals.

One bootstrappees business is completely driven by the filter of who
his market is: small- to medium-sized businesses that have been in
operation for two years.  The businessman was asked to develop and
teach a how-to seminar for home-based businesses.  Once he passed the
opportunity through his market filter, he determined that it would not
be beneficial to the business.  He did not work with startups; in fact,
.

Managing Your Business he had excluded them from his ideal customer
profile.  He realized that the project would work against his core
business, so he passed on it.

Another bootstrapper had an opportunity to have her skin cream for
pregnant women distributed to discount distributors.  This was an
interesting opportunity on the surface, but her product positioning
filter revealed its possible downside.  Her product was priced for an
upscale market, and in a discount store, price would be a driving
factor in determining which products shoppers would buy and which they
would reject.  The filter reminded her that her product would profit
most from endorsements by obstetricians and distribution through
specialty matemity and baby shop channels.

Operating without a filter is a form of Mismanagement.  Without one,
your business may be prone to becoming unfocused, chasing inappropriate
opportunities or forming unproductive ties.  With one, you'll be better
able to scrutinize opportunities not merely on their potential but on
how they will directly benefit what you're doing.

Survival Tip #104: Learn when to say "no."

I.

Saying "no" can be good for business.  It's easy to say no to an
annoying or difficult client.  But your confidence shouldn't stop
there.

You can matter-of-factly say no when your answer revolves around
important core issues.

Here are some points to consider:

Does the opportunity complement your direction?

As one bootstrapper grew in visibility, so did her opportunities.

There was a catch: She was becoming a magnet for low-paying projects.

These projects, in the end, would bring her business down, slowing her
pace toward plum, high-wage gigs, so she had to Turn many of them down.

In another example, a partnership of computer developers began doing
repair work along with program development, but as it turned out,
programming was more profitable, so making it their core business meant
passing on repair activities.  These bootstrappers were clear on their
desired business direction; it became their policy to say no to
opportunities that wouldn't advance them anywhere but forward.

.

Does your business have the resources in place to professionaBy handle
the work?  Phyllis Apelbaum of Arrow Messenger Service in Chicago was
offered a six-figure service contract.  The project (and the money) was
attractive, but she knew at that point in time that her firm was too
small to service the account.  She admits it was painful to pass on the
job, but acknowledges that her business couldn't do the work.

There will be instances when it's better to refuse a job than risk
poorly serving a customer.  If the demands of an opportunity mean that
you have to hastily hire people or buy equipment or become a
quick-study OVERNIGHT, consider saying no.

Does the project offer you just compensation?  If the time and sweat
don't match the dollar sign, say no.  Some projects aren't worth your
effort.  Will involvement result in your values being compromised?  If
an opportunity contradicts your lifestyle and beliefs, no amount of
money will ease your ill feelings later.

Politely saying no doesn't have to put people off.  Explain that it's
not the right opportunity for you now and consider offering a referral.

You'll be respected for your honesty.  Apelbaum's motto: "When you Turn
business down for the light reason and in the right way, very often it
will come back to you."  Or something even better will come your way.

Survival Tip # I 05: Maximize your resources with

"just-in-time management."

"Just-in-time management" is an industry phrase that means
manufacturing products as you need them.  In lieu of stocking huge
inventories of raw materials, businesses order them when needed, use
them and then ship the finished product.  This practice allows you to
have what you need when you need it, reduce excess spending and expand
your cash reserve.  Bootstrappers can apply this practice to their
businesses, as well:

First, look at your inventory.  Think of excess inventory as idle
money; it's just sitting on your shelf doing nothing.  Even as a
service business, you have inventory in the form of equipment, forms
and .

Managing Your Business supplies.  Control your inventory by calculating
how much and how often you use each item.  Then set a minimum to be
kept on hand, and reorder a predetermined amount each time the supply
falls below this minimum level.  Factor in the turnaround delivery time
of your suppliers, noting any premium charges you may incur for a rush
request that may be too costly.

Second, evaluate how you're using Your computer.  Many communication
tool.-, can be stored on your system-correspondence, marketing
materials, proposals, contracts, budgets, invoices, thankyou notes,
resumes, an operations manual and, of course, your mailing list- You'll
be able to update and customize these materials at will, and you can
recycle formats and phrases from document to document.

If you farm out your writing, secretarial or desktop publishing
projects, always request a disk copy so you can add them to your
in-house system.  You can also slice some of your panting costs by
keeping your communication tools stored on your system and getting
reproductions made only when you need to (rather than getting stacks of
materials run off all at once, only to have them sit in your supply
closet, collecting dust).

Third, look at your people resources.  You'll be able to manage
overflow work more efficiently when you have a network of'professionals
to call on.  You'll need to spend time cultivating relationships with
skilled individuals who are available upon demand (see Survival Tip #11
1).

Let your peers know that you're looking for people to work with.  Then
check them out and test them on a few nonrush projects first (see
Survival Tip #119).

Survival Tip: #106: Regularly test your prices against the marlet.

A well-managed business is a profitable one.  You should always stay
aware of your pace position-knowing whether you fall on the high-,
lowor middle-priced point on the marketplace scale.  When you're aware
of your price position, you can devise ways to protect or build on it.

Maintaining your profit base will require that you monitor the basic
costs of doing business, marketplace trends or competition.

Shifts in these areas may force you into a change.  However, there are
strategies you can use to keep pace with the market and stay ahead of
your competition.

All pricing boils down to what the market will bear.  Quoting higher on
prospects'jobs will allow you to test the waters and see how high you
can go without losing business.  Try quoting a higher rate to new
inquiries for a designated time period.  Avoid using referrals as your
guinea pigs, since they may already know your price position (people
have a tendency to share what they paid for things).  Or change the
price of your product for a while.  The sales or prospects' responses
may lead you to a new price point.  This approach keeps you in touch
with your market's potential.

Consider your competition.  You may have developed a price point by
default.  If your competitors are charging 50 percent less than you
are, you automatically become the premium provider.  In this instance,
if your profitability began to drop, your business may be forced to add
new profit centers or diversify to increase or maintain its profit
base.  Use prospects to find information.  If a prospect indicates that
he or she has been comparison-shopping, ask where and find out how much
the quote was.  Periodic competitor-snooping will give you an idea of
where you fall in the pricing ladder and help you better evaluate
options for positioning.

R,egularly gathering this type of information can help you prepare to
absorb any dips in profit.  You'll gain an advantage when introducing
changes to your customers-your presentation will be based on real
comparison data, not off-based notions.

Survival Tip #107: Aim at having a project minimum.

.

I.

An aerial photography service has a minimum order requirement of $75.

A desktop publisher bills in quarter-hour increments.  A doctor's
appointment may cost you $60-it doesn't matter if you take up an hour
or five minutes of the doc's time.  Another professional bypasses
projects that are under four figures.  All of these small business
professionals have calculated a minimum by which to do business.  Of
course, this strategy isn't appropriate for every type of business.

However, working with a project minimum can be effective in helping you
.

Managing Your Business maintain or increase the profitability of your
business.  You may not start off with the confidence to work with a
minimum but as you grow in status and expertise, consider incorporating
one into your operation.

You can begin to explore working with a minimum by asking yourself At
what point does a project become unprofitable?  For example, the aerial
photography service has to set up each reproduction job separately.  In
order to make money, the firm has factored in a minimum covering the
basic expenses associated with each job.  A desktop publisher may get
several quick, one-minute change requests from clients, which can add
up in a given day.  Rather than lose out by calculating a small fee for
each short request, the publisher makes sure customers understand that
the minimum charge is a quarter-hour.

Some professionals impose their own quota system, aiming to serve a set
number of clients per day or to make a certain amount in sales.

This is setting parameters for yourself for fulfilling the financial
goals of the business.

Another way to increase your profitability is to develop skills that
will enable you to provide services that are worth more.  A person may
begin providing basic bookkeeping, then become an accountant, then
ultimately become a high-priced CPA.  Or a printer may open shop with
basic printing services and then graduate into more specialized
projects, such as yearbooks and annual reports.  Within virtually every
profession, there are opportunities to improve your skills through
certification or training (see Survival Tips #102 and #147).  These can
translate into more profitable services for your business.

Survival Tip #108: Introduce rate increases in stages.

. I Inevitably, you'll be faced with the task of raising your rates and
introducing the change to Your customers.  You can avoid frequent rate
changes by initially calculating your cost and profit margins at a
higher percentage, giving yourself room to absorb any costly
occurrences.  You should annually review your rates in terms of the
overall profitability of your business.  A rate increase may not be in
order; adopting a smarter-working management style may be the answer
(see Survival Tips #107, #109, #113 and #115).

Rate increases can be tied to using business costs, a transition into
higher-paced products or services or the results of testing the

 Bootstrapper's Success Secrets market (see Survival Tip #106).  If
your increase is tied into skyrocketing business expenses, explain that
to customers.  For example, a U.S. paper shortage began in 1994 and
prices rose between 11 and 28 percent; it continued into 1995,
resulting in another 15 percent increase.

Nevertheless, businesses continued to patronize their printers and
office suppliers because everyone understood what was going on.

How customers, particularly your old-timers, respond to new rates will
depend on how you handle it.  You could begin by charging all newcomers
the higher rates (if you've been testing the marketplace, the
transition should go smoothly).  But your existing clients may require
more finesse.  Introduce the change by:

 Giving an advance notice, say 30 to 60 days; this will allow them to
take advantage of the old rate and save money.

 Explaining the increase, relating it to expanded services or economic
conditions.

 Offering other pricing options, such as customized versions of your
standard service, package deals based on volume or prepaid services, or
retainer specials allowing the customer to use your service for a flat
monthly rate for a set time period.

(The longer the retainer agreement-a year, for example the bigger the
price break you could give the customer.)

If you're under contract, be sure your original deal specifies the
possibility of a rate change.  You may also find it effective to
i.Tnpose increases on a case-by-case basis, according to each
customet's status.

If a 10-percent rate increase will decrease a particular customer's
volume by a sizable percentage, you'll lose money overall.

. Raising your rates takes confidence, so prepare yourself to lose some
customers.  If you're providing a value-added offering with stellar
service, your loyal customers will continue to use you.

Survival Tip #109: Tend to the business of collecting your money.

Don't be afraid to ask for money that you're due.  You're setting
yourself up for problems when you manage your receivables with a timid
or lax attitude.  Being lackadaisical about customers' payments .

Managing Your Business may create a casual attitude in their minds
about paying you.  If you're ever faced with a delinquency, you may be
ineffective in resolving it because you haven't been developing your
assertiveness skills.

Be kind to your cash flow and communicate your payment policy in
advance.  Your payment terms should be discussed as soon as you secure
a sale, and in some cases, as you're negotiating a deal.  It's at this
time clients may express to you their payment terms, telling you that
they pay all accounts in 30 to 45 days.  If you can afford to work
under their suggested arrangement, that's fine.  If not, explain your
terms and work to reach a compromise.  Trust me, everything is
negotiable.  For example, I've worked with some of the same clients as
my colleagues, but my payment experiences have been quite different
than theirs because I negotiated better payment terms for myself.

Follow up as soon as an account becomes past due.  If a payment is due
on the 15th, call on the 16th.  VIhen you contact your customers
quickly, your actions communicate that You expect payments to be made
Promptly or you expect to be notified of any delays.  Collection expert
John Johanson of Mid-Continent Agency in Rolling Meadows, Illinois,
points out that the period of 31-60 days following the payment due date
is the most critical time, when your cash flow either maintains its
momentum or breaks down.  Customers whose accounts are 31-60 days past
due are usually just slow payers-not collection problems.

When you stay close to them through phone calls or letters, you can
accelerate the payment process.  Don't wait until the payment is more
than 60 days late.  Otherwise, you may have difficulty collecting the
money.

Other safeguards to consider: Use your postpurchase follow-up call to
reiterate payment terms (see Survival Tip #81).  When you inquire about
customers' satisfaction with your offering, You can wrap up the
conversation by saying, "Since everything was okay, well look for your
payment on the 15th."  Also consider padding your cash flow by billing
in cycles-having accounts due on different days.  This way, if you're
faced with a few delinquencies, you'll still have some cash coming in.

Survival Tip #110: Avoid lopsided contracts and terms.

My personal motto: Enter all negotiations prepared to walk away from a
bad deal.  This mind-set can be quite liberating.  It's part of my
business filter, and I use it to scrutinize every client alliance and .

project that comes my way.  There may be times when you're approached
with opportunities for which the arrangements are more beneficial to
the other party.  You may be tempted to go along with the deal because
you need the work or believe doing it one time won't hurt.  Consider
this: You're setting a precedent that may be difficult to break away
from.  If you're in a contract-oriented profession (such as freelance
writing), you drag your industry down when you accept unattractive
terms because it makes buyers believe that they can make any offer and
someone is bound to accept it.

Bad deals come in various packages.  First of all, avoid letting
clients dictate payment terms to you.  That practice is particularly
common if your clients are larger entities.  Scores of businesspeople
cringe as they agree to payment schedules they cannot afford for the
sake of landing an account.  Another scenario: taking on work that you
won't make any money on.  People confuse this with the toe-in-the-door
strategy (see Survival Tip #80).  Introducing your business on a
smaller scale means making less money initially, not giving your
talents away.  when you don't make money on jobs, you're contradicting
your price position.  Also be careful about entering into work
arrangements that will jeopardize your status as an independent
business (see Survival Tip #122).

Don't be afraid to negotiate.  One reason many self-employed
professionals agree to poor deals is that they haven't honed their
negotiating skills.  Be prepared to offer some halfway solutions.  For
example, if a client tells you 60 days is its policy for making
payments, you could counter by explaining that your normal tenens are
30 days, but with a 50-percent deposit you'd be willing to carry the
account for 45 days.  Express to the other party that productive
working relationships are built on win-win arrangements; this will set
the tone for fHendlier negotiations.

5 MANAGEMENT CRIMES NEVER TO COMMIT

AGAINST YOUR BUSINESS 1. Undervaluing yourself in the market.  Just
because you're the new kid on the block, you don't have to be the
cheapest.  A home-baseci boot strapper thought that because her
business was part-time, it seemed right to charge less.  Not so.  Your
fee structure should cover overhead expenses and be in line with the
experience you bring to the market.  Careful industry .

Managing Your Business research will help you structure your pricing
correctly.  At worst, you would enter the market charging a moderate
rate, regularly testing your prices before increasing them (see
Survival Tip #106).

2. Failing to honor the policies of your business.  Don't compromise
your business standards just to placate a demanding customer.  If your
office is nonsmoking or whatever, make sure everybody who walks in the
door abides by the rule.  when you bend the rules, you set a precedent
that someone will remind you of later.  You also send a message to
customers and employees that anything goes in your operation.

3. Disreting your time.  You can't expect others to respect your time
when you don't.  If others see you lollygagging on the phone or s i
izoc al ing when you should be working, then they'll begin to think
that what you're doing isn't that serious.  Value your time by using it
wisely.  You'll set a tone for others to follow suit.

4. Afismanaging your hard-earned money.  Haven't you heard that the
excess of the 90s is gone?  Even when you can afford to, it's foolish
to become a spendthrift in your ways.  You may find it difficult to
begin tightening Your belt again.  Always manage Your resources wisely.

ltll help you maintain a responsive position instead of a reactive one.

5. Being lax in how you pursue business.  If your business income isn't
a necessity for your family's financial survival, be mindful of how
that can negatively affect your drive.  Entrepreneurs have Shared with
me that knowing they had spotty financial support affected their
aggressiveness at times; they knew that if a deal didn't work out,
their needs would still be met.  If your business isn't a hobby, don't
treat it as one.  Even if you feel financially secure now, if you
haven't been developing your business savvy, you won't have anything to
fall back on when you really need it.

Survival Tip #1 I 1: Practice defensive driving.

Success happens when opportunity meets with preparation.  Sometimes we
work so hard to create an opportunity for ourselves that we neglect to
prepare for it.  Your wish may be "more business,) but when it comes,
you find yourself scrambling around, fumbling through the process.

Instead of making money on an opportunity, you lose money.

It's lack of preparation that makes a professional appear amateurish, a
winner look like a loser and the most talented person question his or
her ability.  You can capitalize on opportunities by approaching them
from a defensive point of view-asking yourself, "How can I prepare
myself to respond when the other guy makes a move?"

Make it a habit to think several steps forward.  For example, if you're
working toward selling to the government, what management system do you
need to have in place?  Electronic data interchange (EDI) is the
all-electronic method the federal government is moving toward to buy
goods and services.  You'll need access to a VAN (valueadded network)
to conduct EDI transactions.  In this instance, you need to educate
yourself on the costs of what's available and prepare to get the system
in place.  (A current listing of all government certified VANs can be
obtained by calling 800-318-9223.) Let's say you've been courting an
account that would require additional staffing.  Have you been actively
looking for people?  Do you have a placement service or organization
that you can use to connect to qualified people?  Have you begun
negotiating flexible pricing or payment terms for your volume order?

Thinking ahead can help you save money and maximize the profit on each
deal.

Sit down and review your business development goals.  Although you may
feel ready for an opportunity, scrutinize your existing resource
network and your ability to expand it.  How will you handle any sudden
surge in business?  Have you been comparison-shopping for new
equipment?  Have you begun to research the various loans available to
you, so you won't be wiped out by a possible jump in business expenses?

Write down all the details of your impending situation and begin to
create your strategy for preparing for each one.  Forward thinking is
good management.

Survival Tip # 112: Incorporate disaster planning into your operation.

.

;.

.

The Northridge, California, earthquake of January 1994 wiped out Sue's
Secretarial Service.  The facility housing Sue Clamage's business was
so severely damaged she was never allowed back inside.

She lost important computer files, customer records and completed
assignments.  Her equipment losses included five computers, three
printers, a Xerox machine and a phone dictation system, totaling about
$65,000.  Her standard insurance policy helped recoup some of the
losses.  The experience prompted Clamage to beef up her
disasterpreparedness strategy; she now stores backup computer files
off-site and maintains a line of credit to tap in an emergency.

.

T Managing Your Business Your recovery from a disaster begins with
having adequate insurance coverage (see Survival Tip #29).  However,
your insurance coverage should be supported by a disaster recovery
plan.  If your office was affected by flooding, fire, an earthquake or
another natural disaster, how would you bounce back?  Your business can
recover quickly when you plan in advance.  Keeping duplicate records
off the premises can be a lifesaver.  You should be backing up your
computer system regularly.  You can keep duplicate copies of important
records, documents and other important numbers in a safe deposit box.

Next, develop a communications strategy to prevent loss of clients or
customers.  For example, you can check with your phone carrier to find
out about available service routing options to keep your business
going.  Consider alternative facilities you could use in the interim.

You may able to coordinate some shared space arrangement with another
business.  You should also verify whether your equipment suppliers can
provide you with loaners.  Consider having an additional credit line so
you can buy what you need while you're waiting for your insurance claim
to be processed.  Write up your plan and make sure your employees know
who to contact and what to do if you're affected by a disaster.  A
helpful resource: How to Survive a Catastrophe: A Guide for Businesses
(see page 185 for more information).

Survival Tip #113: Develop a smart shopper's mentality.

Did you know that less is more?  It's a smart shopper's comerstoneThe
less money you waste, the more you have to build your business, to make
investments or just enjoy.  Smart shoppers aren't nickel-anddimers,
though.  They take advantage of the free and low-cost offers of
business service providers who are fiercely competing for their
dollars.

A smart shopper has purchasing savvy and is dedicated to getting true
value for every hard-earned dollar spent.  Here are three areas where
you can easily begin to incorporate smart shopping into your
business:

First, avoid making shortsighted purchases.  Buying equipment, products
cycle.

Say, for example, you need an additional phone line in your office, so
you pay to have one installed to fulfill l your immediate need.  Six
months later, you need another line, and you pay an installation fee
again.  What you should have done originally was have the technician do
the wiring for more than one line-you actually save on installation
charges when you have more than line installed simultaneously.  Or say
you need a computer, so you buy a cheap one just to get started.  Six
months to a year later, you find you need more memory and more features
than the barebone model you bought can allow, and you have to invest in
a new, more advanced model.

When you buy quick fixes instead of making "investment" purchases, you
end up chipping away at your profits.  You start the cycle when you are
unclear about your needs and the business's direction or when you just
hastily buy "stuff' to get over an immediate hump.  Always think your
purchases through.  Focus on funneling your dollars into
business-building purchases that help you provide standout service for
the long haul.

Second, think multipurpose.  As with your marketing devices (see
Survival Tip #72), think about multiple purposes for items you invest
in.  Many items are candidates for the "multipurpose test," such as
brochures, collateral and office equipment, furniture and supplies.

A foldout business card, for instance, can serve as a mini brochure.

Or four-in-one office equipment can allow you to fax, copy, print and
scan.

Want to save multidollars?  Then think multiple purpose.

Third, sample 'til your heart's content.  Freebies are everywhere.

U.S. businesses spend billions every year on giveaways.

Whenever possible, try an item first.  This will help eliminate your
buying items that you really don't need or like.  -,kvery Dennison
(800252-8379) will send you labels and stationery from its product
line.

Lotus (800-872-3387) has a working model on CD of its SmartSuites, an
'integrated software package consisting of several applications (a
multipurpose item).  For a sampler package of office supplies, you can
also contact 3M Office Products (800-395-1223).  In fact, whenever
you're going to order anything, always ask whether a sample is
available before you buy.

Begin embracing this philosophy today, and you'll wind up the owner of
a well-managed business.

.

T Managing Your Business Survival Tip #114: Install convenience
services and tools.

There are little things you can do to give yourself an advantage in
managing your business.  Your goal here is to use tools or implement
services that make it easier for you to run the business and for
employees, suppliers and customers to interact with you.  Begin by
evaluating who handles your mail.  Whether you're in a storefront space
or a home office, paying for a P.O. box or mail service can improve the
handling of your incoming mail.  For example, many P.O. box-holders can
pick up their mail as early as 8 a.m collecting checks so they can make
an early deposit.  A mail service, however, gives you a safe place to
receive package deliveries when you're away.  Shipping your packages
can be easier, too.  UPS's Quick Cost Calculator software allows you to
compute shipment rates and compare costs for a variety of other
shipping options; by the way, it's free (800-742-5877).

A number of other convenience services and tools can help you run your
business more smoothly:

Interested 'in opportunities to capitalize on customers' impulse-buying
decisions and eliminate your bounced check worries?  Then you can
obtain merchant status, which allows you to accept credit card payments
from customers.

Merchant status is becoming easier for small businesses to secure
because many professional associations now offer it as a value-added
membership benefit (see Survival Tip # 115).

Your customers may also appreciate being able to use a dropbox outside
your office, or at a centralized location in town, for depositing
payments, work projects and other items after hours.

You can also make it a cinch to bill your clients for the phone calls
you've made for their projects by taking advantage of a service offered
by many long-distance carriers for free or a low fee.  The feature,
commonly referred to as "call manager" or "account coding," enables you
to punch in a code you've designated to a particular client before you
dial a long-distance phone number for that client's project.  Your
long-distance bill will then be itemized by client-listing the calls
and their cost separately according to each client's code.

.

Having trouble managing your follow-up schedule?  Instead of relying on
your memory or manual calendaring system, invest in a contact
management software program.  This program can remind you to make
follow-up calls and send correspondence at specific times, as well as
keep detailed records of all your contacts and business activities.

Make yourself more accessible with expanded contact options.  For
example, pager notification on your phone system will enable you to
respond quickly to your customers' calls.  Ensuring that you have an
ample number of lines dedicated to voice calls and faxes also makes
your operation run more smoothly.  E-mail access is another convenience
tool.  An informal survey of my networking circle revealed that a large
percentage of self-employed people subscribe to online services for
e-mail usage only.  You may discover more convenience options through
your trade-journal reading and from suggestions in your customer
surveys (see Survival Tip #88).

Survival Tip #115: Put value-added programs to worl', in your business.

The next time you get a solicitation in the mail from a business
supplier, think twice about throwing it away.  It may be your link to
discounts on other valuable products and services.  Business-tobusiness
suppliers'offerings now have value-added programs attached to them.

For example, a primary supplier, such as your phone carrier, may team
with other suppliers that target the small business market to offer a
special package deal on all their services.  These kinds of coop deals
can include offers from banks, office superstores, trade associations
and others.  What's neat about some of the programs is that you may be
gaining access to things you need that you've been unable to get on
your own.

Many phone carriers offer model examples of value-added programs.  US
West has two programs aimed at its self-employed customers, The Home
Office Network (800-898-WORK) and US West Business Start-Up Kit
(800-603-6000).  Both programs offer small businesses free office setup
counseling, introductory discounts on .

Managing Your Business phone services and products, a newsletter and
business building resource guides.  Augmenting the program are more
than $300 worth of certificates that can be used to save money on items
from value partners, such as Microsoft and CompuServe.  Bell Atlantic
offers its customers technology education through its Knowledge Centers
(800-867-6000).  Small business owners can visit the facilities to
preview and experiment with communications technologies and
applications at no charge.  Another program example: the bank.  Mine
offers its small business customers 15- to 50-percent discounts on
airline and rail tickets, car rentals and on a variety of other
goodies.  Also, associations are getting in on the act by offering
members access to low-cost legal services, business and health
insurance and merchant services (enabling small businesses to accept
credit card payments).

These programs are big business's way of building customer
relationships.  Whenever you're dealing with supplier companies, ask
them about the existence of such programs.  Frankly, many business
owners aren't tapping into these networks because they ignore customer
communications tools that are used to promote the programs, such as
direct-mail promotions, bill inserts and newsletters.  So the next time
your supplier sends you something in the mail, read it to ensure that
you're not tossing your ticket to a deal that can be put to work in
your business.  (You can learn more about value-added programs from my
special report, How to Find Value in Value-Added Programs.  See page
185 for ordering information.)

Survival Tip # 116: Protect you r greatest asset-you rse If mil
-----------There's a television commercial in which a woman business
owner is shown working in her artistic studio.  A narrator explains
that the woman has opted for the independent lifestyle, but she wories
endlessly when she feels under the weather or has a recurring body ache
because she doesn't have health insurance.  The commercial goes on to
advertise an insurance company that has affordable options so business
owners don't have to worry about not being covered.  Unfortunately, too
many people in this country can identify with this commercial.

Business owners will insure the assets of their business while
neglecting their most important asset-themselves.  Part of taking care
of yourself means going to the doctor when you need to.  When you're
juggling the various expenses of your business, make having health
coverage a priority.

If you've recently left a job, you're entitled to continue your
insurance coverage under the Consolidated Omnibus Budget Reconciliation
Act (COBRA).  Depending on the circumstances, you can keep the coverage
for 18 to 36 months.  You pay for the premium at your employer's group
rate, which may be substantially less than a private policy.  You can
use this time to look for other coverage.

Many self-employed people find affordable coverage through a health
maintenance organization (H.M.O) or preferred provider organization
(PPO).  Many HMOs and PPOs provide quality care and accept individual
members.  Contact your local medical society or city's consumer affairs
office.  Also, consider any state plans or coverage pools.

For example, self-employed Oregon residents have access to affordable
health coverage through Oregon Health Plan.  Your state department of
insurance should be able to tell you about similar programs in your
area.  A professional or trade organization can be another source.

Groups such as the National Association for the SelfEmployed
(800-827-9990) and Home Office Association of America (800-809-4622)
offer coverage options.

Carefully scrutinize the stability of a carrier, the premium costs
versus the benefits included and how premiums and rate increases are
calculated.  Remember that your medical history will usually affect
your premium costs.  Don't forget your tax deduction.  The health
insurance tax deduction for self-employed people has increased to 40
percent.

Survival Tip # 117: Don't forsalee the working lifestyle you adore.

Chances are that you didn't become self-employed to live in drudgery or
discontentment.  If you didn't mind that state of being, you would have
kept your day job, right?  Entrepreneurism is one of the few
occupations that allow you to mesh your professional and personal
interests together.  It provides you with a working lifestyle that you
can control, and it allows you to work toward your ultimate fulfillment
(see Survival Tip #7).  Business demands will require you to .

Managing Your Business work long, dogged hours, but how you manage your
business can help balance this out.  When you forget that you're the
captain, you become a slave to the business.

What key benefit does your working lifestyle enable you to enjoy?

Is it the fact that you have flexibility to pursue personal interests,
are more accessible to your loved ones or are able to participate in
community activities?  It's important to make a note of these benefits.

If your business regularly interferes with these benefits, then there's
a problem that may tie into your management style.  The same is true if
you're working toward a benefit and never get there.  For example, you
may be cutting your deadlines too close or overbooking your schedule,
wasting too time much on the phone or just working against yourself in
general.

As you grow, it's important to stay involved with the parts of the
business that give you fulfillment.  Delegation is part of smart
management, but you can still have an active part in desired areas.

For example, if you grow to the point that you must hire an independent
sales rep to shop your product around, you can still periodically do
drop-in visits with shop owners.

Part of good management is regularly taking some time off to rest and
rejuvenate yourself.  It may be as simple as a mental health day or an
extended weekend.  Make a regular habit of evaluating how you're
managing the business.  Is the working lifestyle you dreamed of a part
of your reality.9 Are you moving closer to your desired existence or
just farther away?  You don't want to wake up and be managing a
business that you don't enjoy.

Bootstrapper's Follow-up File Accounts Receivable: How to Tame the
Beast, Dun & Bradstrieet Information Services, 800-333-6497.  A free
guide of helpful collection strategies.

Act!  2.0,800-441-7234; Web address: www.symantec.com.

Contact management software.

.

Amen'ca at Work, Microsoft Corporation.  A six-part video series
dedicated to helping you learn how to better manage your business.

Topics include: marketing your business, getting started with
technology, doing business on the Internet and managing virtual offices
and alternative workplaces.  Series is available for viewing at Small
Business Development Centers nationwide at no charge.

America Online, 800-827-6364.  An Internet and online service provider.

American Collectors Association, Inc P.O. Box 39106, Minneapolis, MN
55439-0106; Web address: www.member.com/aca.

Sells publications on collection strategies; Web page includes
collection fact sheet and frequently asked questions about the
collection process.

Association of Black Women Entrepreneurs, P.O. Box 49368, Los Angeles,
CA 90049; 213-624-8639.  A professional networking association open to
women and men.  Offers a variety of educational opportunities to its
members, including a one-year marketingintensive training program.

Bank Card Solutions, 800-260-1500.  Providers of merchant services.

CompuServe, 800-848-8199.  An Internet and online service provider.

Consumer's Resource Handbook, Consumer Information Center, Pueblo, CO
81009.  A free, 125-page guide designed to help consumers make
informed- decisions and avoid problems.

Corel WordPerfect Suite and WordPerfect Suite 7, 800-772-6735; Web
address: corel.com.  An integrated package of word processing,
spreadsheet, graphics and presentation software.

Delhi, 800-695-4005.  An Internet and online service provider.

DownHome Washington, Snohomish County Private Industry Council, 917
134th St. SW, Suite A-10, Everett, WA 98204; 206-743-9669.  Provides
free entrepreneurial training for dislocated workers in 13 counties in
the state.

.

Managing Your Business Energy Efficiency and Renewable Energy
Clearinghouse, 800-363-3732.

Handles information queries about energy efficiency issues related to
your business.  All information provided free of charge.  Request free,
27-page resource guide, Hands-on Solutions to Improve Your Profits and
Productivity: Energy-Saving Tips for Small Businesses.

Everything's Organized by Lisa Kanarek (Career Press, 1996);
800-CAREER-1 (201-848-0310 in N.J. and outside U.S.). $16.99.

GEnie, 800-638-9636.  An Internet and online service provider.

Hammermill Papers, 800-242-2148.  Provides free sample paper packs.

H.M.O SmartPages, Web address: www.buyerszone.com.  Created by the
publishers of Business Consumer Guide, provides information on more
than 150 HMOs nationwide.

How to Find Value in Value-Added Programs by Kimberly Stansell,
Research Done Write!, Suite B261-BSS, 8726 S. Sepulveda Blvd Los
Angeles, CA 90045.  A special report presenting a five-step strategy to
evaluate the worth of a value-added program to your business.  Includes
a roundup of programs nationwide.  $5 ($5.41 for California residents).

How to Save Money on Office Supplies, Quill Corporation, 800-789-6640;
Web address: www.quillcorp.com.  A free, 54-page guide providing
helpful tips for cost-efficiently buying supplies for your business.

How to Set Your Fees and Get Them, Fifth Edition, by Kate Kelly
(Visibility Enterprises, 1994); 800-784-0602.  $17.50.

How to Survive a Catastrophe: A Guide for Businesses, Insurance
Information Institute, 110 William St New York, NY 10038.  A free guide
providing helpful information on how to develop a catastrophe recovery
plan.  Send S.A.S.E with request.

InfoAlert: Your expert guide to online business information, The
Economics Press, 800-526-2554.  A monthly newsletter of tips on how to
use the Internet in your business.  Free sample copy available.

InsWeb, Web address: www.insweb.com.  A Web site offering links to
health insurance carriers and agencies worldwide.  Enables users to
scout out price quotes for coverage online.

Microsoft Small Business Resource Center, 800-60-SOLTRCE; Web address:
www.microsoft.conVsmallbiz.  Provides information on how Microsoft
products can be used to help manage your business.

National Association of Private Industry Councils, 1201 New York Ave.

NW, Suite 800, Washington, DC 20005; 202-289-2950.

An association of the members of the 600-plus PICs in the country.

Provides information, technical assistance and advocacy for its
members.  Contact for a referral to a local PIC.

National Public Telecomputing Network, 30680 Bainbridge R,d Solon, OH
44139; 216-498-4050; e-mail address: infoCa)nptn.org.

Provides a nationwide listing of local Free-Nets, a community computer
system that offers free and low-cost Internet access.

Postal Business Companion: Time-Saving Information for Your Business,
U.S. Postal Service, M. Dempsey, Business Account Services, Room 8430,
475 LEnfant Plaza, Washington, DC 20260.  A free, 124-page book filled
with resources and tips for managing your business.

Principles for Business, Nfinnesota Center for Corporate alle Ave
Minneapolis, MN 55403-2005.

An information package on guidelines for running an ethical business.

$15.

Prodigy Information Service, 800-776-3449.  An Internet and online
service provider.

. Quicken and QuickBooks Pro, 800-816-8025; Web address:
www.intuit.com.  Accounting/bookkeeping software programs.

Self-Audit Kit, Software Publishers Association, 800-388-7478.

A free kit to help you perform a self-audit of your business's software
practices and procedures.

SeniorNet, 1 Keamey St 3rd Floor, San Francisco, CA 94108;
415-352-1210; fax: 415-352-1260; e-mail address: seniometseniomet.org;
Web address: www.seniomet.org.  Provides information on its local
computer learning centers.

.

Managing Your Business Share Communications Network, 800-247-0352; Web
address: www.noncash.com.  A service that allows merchants and
businesses to accept noncash (credit card, bank debit card) payments
and processes such transactions for them.

SideKick, 888-782-7347; Web address: www.starfishsoftware.com.

Contact management software.

The Source, d-Continen NE t Agencies, 3701 W. Algonquin Rd Rolling
Meadows, IL 60008.  A quarterly newsletter With tips on credit and
collection.  Free sample copy available.

The Things Everyone Should Know About Point-of-Sale Software and
Hardware by WaYne Philips (A-Z Business Services, 1996); 407-296-3274.

$14.95.

U.S. Postal Service, National Customer Support Center, 800-238-3150;
Web address: www.usps.gov.  Provides a variety of free publications,
software and information helpful for small businesses.

Using Prepaid Phone Cards, Consumer Action, 116 New Montgomery St Suite
233, San Francisco, CA 94105.  A cost comparisons survey of various
cards, including tips on how to use the cards.  Send S.A.S.E for free
copy.

Waste Reduction Tips: For Your Bottom Line, Environmental Newsletters,
Inc 11906 Paradise Lane, Hemdon, VA 20171; 703-758-8436; e-mail
address: asoaol.com.  A bimonthly newsletter of tips and strategies to
help businesses save money by reducing waste.  Free sample available.

Women's Network for Entrepreneurial Training (WNET), S.B.A Office of
Women's Business Ownership.  A mentoring program matching successful
entrepreneurial women With female business owners whose companies are
ready to grow.  Contact your local S13A office or Small Business
Development Center for more information.

Chapter 8

0
'Working 0

"No one can succeed and remain successful without the friendly
cooperation of others."
-Napoleon Hill, motivational speaker and author Survival Tip #118: Use
self-Knowledge to pinpoint how others can help you.

Other people can begin to help build your business from day one.

You don't have to be a bona fide employer to begin using your people
resources.  In fact, you've already begun the process.  It started when
you used the research knowledge of your local librarian.  Or when you
picked the counselor's brain at the SCORE office or Small Business
Development Center.  I'm working for you light now as you highlight the
strategies on these pages or order the information presented to you in
this book.  Your subconscious recognized that you were short on
knowledge in an area and pointed you to people who could help pick up
the slack.

.

You can consciously go a step further by taking inventory of your
strengths and weaknesses.  Be honest.  You'll need this information to
help you handpick your support team of peers, contacts, suppliers,
mentors and employees.  Write down the areas in which you excel.  Do
you have strong verbal presentation skills?  Exceptional technical
knowledge?  These are the areas around which you will build your
business.  Next, note the areas where you are deficient.  You may be
weak in getting your ideas across on paper or limited in your computer
skills.  Use fearless self-knowledge to identify the abilities and
resources you'll need to look for in others, who then can be put to
work in your business.  Be open to ways of working with others without
necessarily employing them.

Your clarity will help you stay focused; you'll know when a "people
resource" is better than an organizational one.  For example, hiring
someone to do telemarketing may not be as effective as signing up with
a professional referral service.  You can also decide whether to
improve in a desired area or use another person's talents instead.  If
you don't like to sell your product, for example, and have no interest
in learning how, then a working relationship with an independent sales
rep may be a viable option.  The same is true in your peer
relationships.  A marketing extrovert and a computer introvert could
cook up ways to barter based on each other's attributes.  A strategic
approach will be at work here: You're aligning yourself with people
whose strengths complement yours.  Consider it.  Embrace it.  You'll
form more productive relationships and discover the most suitable
people to work for you.

Survival -rip #119: Consider hiring alternatives.

Manning your business without an employee payroll doesn't have to stunt
its growth.  There are countless bootstrappers running profitable
businesses solo while incorporating others' talents into the process.

Many business owners create an army of contractors (see Survival Tip
#121).  You can create your own network of other self-employed people
whose talents, knowledge, resources and skills can be used to handle
the demands of your business.  Besides helping you with overflow work,
the collaborative talents of your team can help you obtain larger
projects and grow with your clients'needs.

Working with Others The manpower behind your network may vary.  For
example, a Web page consultant may have a team of writers, graphic
designers and other technical experts in place to handle projects.  A
product designer may use a manufacturer's representative to sell his or
her wares.  A newsletter publisher may use a subscription management
service.  A cataloger may use an order fulfillment house.  A road
warrior may use an answering service to cover the phones.  You'll need
to determine the feasibility of any arrangement based on your support
needs and the costs versus the investment of hiring in-house staffers.

Bob Mastin of Aegis Publishing Group in Newport, Rhode Island, doesn't
rely solely on his part-timers to manage his firm.  He uses a strategic
alliance as his defacto sales team.  The Telecommuting Advisory
Council, an association for companies interested in the telecommuting
movement, sends him a monthly list of new members (who are usually
eager to get their hands on information about working more productively
and comfortably from home).  Mastin, in Turn, sends the new members
books on the subject of telecommunications, along with information on
placing bulk orders of the book.

Make sure your network is reliable.  You'll need to consider others'
availability as you begin to rely on them to facilitate opportunities.

Consider working on a trial basis before committing yourself to a work
arrangement.  If someone fails to deliver for you, it could put you in
a bad position with your customers.  You may discover or feel that your
business would benefit most from having a staff devoted to you.  In
this instance, you should begin to evaluate the responsibilities
associated with becoming an employer (see Survival Tip #120).

Survival Tip #120: Be sure it's the right time to hire.

Faced with a crunch work period or finding it difficult to manage
business growth?  Hiring an employee may appear to be an obvious
solution.  If you hire prematurely, what seemed like a good idea could
Turn into a burdensome expense.  It's estimated that the employer's
taxes, worker's compensation insurance and administrative paperwork
will cost you an additional 30 percent of your payroll.  Some
businesses try to sidestep the expenses by dubbing everyone they hire
as independent contractors, which can Turn into a disaster when done
incorrectly (see Survival Tip #121).  Hiring an employee is an
investment in your business and in another person.  Your decision to
become an employer should be scrutinized carefully.

Before you begin the recruitment process, you can avoid a costly move
by filtering your decision against some important factors:

What are my business needs?  Keeping a daily routine journal can help
you pinpoint duties to delegate.  The information may help you
distinguish between a cyclical or sustained growth period.  You can
also use the notations to clarify the skills your worker will need and
create job descriptions and placement announcements.

What is my hiring objective?  Are you looking for someone to help
handle tasks associated with a new account or take over ur YO mundane
duties?  For example, if you need someone to handle word processing,
then paying an outside business to handle the work may be a more
cost-efficient move.

Do I have the resources in place to support another worker?

Yofill need to provide proper workspace, equipment and supplies so that
a staffer can work productively.  If you work from home, you'll need to
be sure that your zoning allows nonresident workers (see Survival Tip
#33).

You should also consider the short- and long-term advantages of your
decision.  It isn't always easy to find qualified workers, so you need
to be clear about how much time you can afford to invest in the
process.  If you need to have a worker lined up by a set date, consider
ways to use the services of other self-employed people in the interim.

Whatever you do, don't rush through the hiring process, winding up with
someone you wish you'd never met.

Fair Measures, a management law consulting group, has an "ask the
lawyer" section on its Web site (www.fairmeasures.com), where business
owners can get free legal advice.  Browse through the area.

Reading through others' hiring blunders and predicaments may provide
you with food for thought.  (You can learn more about managing employee
turnover from my special report, How to Hire Right the First Time and
Avoid Costly Turrwver Problems.  See page 202 for ordering
information.)

.

Working with Others Survival Tip #12 1: Beware of the independent
contractor trap.

Many businesspeople try to niinirnize their responsibilities as an
employer by hiring independent contractors.  The arrangement can cut
your paperwork in half-you don't have to withhold taxes and only file
tax Form 1099 for those to whom you've paid more than $600 in a year.

But beware: The Internal Revenue SeMce (IRS) is watching you.  Uncle
Sam has made it a priority to audit businesses suspected of misclassig
workers.  If you get caught, the repercussions, such as back taxes and
stiff penalties, can bankrupt your business.  A notable example is
Microsoft Corporation, which recently was ordered to pay employee
benefits to hundreds of workers it had been classifying as independent
contractors.  The software giant plans to appeal the ruling; a small
business, however, may not be able to bankroll a lengthy legal process.

The key distinction between an employee and an independent contractor
is control.  Merely allowing a worker some discretion or freedom in the
job or having a signed independent contractor agreement on file does
not camouflage an employer-employee relationship when one, in fact,
eidsts.  An individual can be considered an independent contractor when
he or she is regularly engaged in the independent trade or business
related to the service performed and is free from control and direction
in the performance of the job.

You should keep this in mind as you work through the steps of deciding
whether or not to hire (see Survival Tip #120).

The IRS has a new document, Independent Contractor or Employee (Section
530, Relief Requirements).  The simple, one-page document explains your
rights under the law when the agency questions your classification of
workers as independent contractors.  Other IRS publications include:
Circular E. Employer's Tax Guide (Publication 15), which includes all
the IRS's legal definitions and guidelines, and Employment Taxes
(Publication 937), which includes 20 factors used to determine proper
classification of an independent contractor.  RAequest free copies of
these documents from 800-TAX-FORM or download them from the Web at
www.irs.ustreas.gov.

Protect yourself when working with outside professionals by getting
copies of their business license, home occupation permit, client
references or any documentation that verifies they're operating as an
independent.  Carefully monitor how much time the person is devoting to
your business; you need to avoid the trappings of a full-time employee
scenario.

Survival Tip #122: Protect your own independent status.

I.

.

Conversely, you don't want to become a casualty in a reclassification
battle.  You need to protect your status as an independent,
selfemployed person.  If the IRS determines you're a participant in an
employer-employee relationship, your client will shoulder the expense
of back withholding and Social Security taxes, interest and penalties.

There's a downside for you, too.  You may have a bigger tax bill as the
result of losing deductions such as health insurance premiums, home
office allocation, mileage, equipment and more.  What's more, you may
even lose your client; it may be too expensive to carry you on the
books as an employee.  Be careful and monitor how entrenched you become
in your client's operation.

Take some clues from the independent contractors at NEcrosoft.

The court found that NEcrosoft had fully integrated the workers into
its workforce.  Although the contractors were hired to work on specific
projects, many of them had worked on successive projects for two years.

They billed the company for their hours and were paid through
accounting, not payroll.  They had no supervisory or delegation
authority, were excluded from official company functions and wore
identification badges of a different color to distinguish them from the
regular staffers.  However, they often were involved with employee work
teams, -performed identical duties as other workers and shared the same
supervisors.  See any similarities in your existing relationships with
your clients?

Some of the halh-narks of a legitimate client relationship:
establishing and maintaining your distinct business identity (see
Survival Tip #27); being compensated for your work on the entire job,
not hourby-hour; controlling your work schedule and how the work is
done; and having multiple clients (see Survival Tip #98).  You should
refer to IRS Publication 937 (see Survival Tip #121) and govern your
behavior accordingly.

.

Working with Others Survival Tip #1 23: Family, friend or foe?

.

I.

Yo&re buried in work Your relative, friend or neighbor needs a job.

Should you marry the two opportunities together?  It depends.  Hiring
family members and friends is a delicate situation.  Some business
owners have done it with no problem, but for others, the jury is still
out.  You can protect the relationship and your business from a hiring
nightmare by considering what may go wrong and preparing for it.

Don't hire your relative or friend just because you feel sorry for him
or her.  If the person doesn't have the skills that you need, you may
resent him or her later when the situation becomes shaky.

Evaluate the person's abilities as you would an outside candidate's.

Take into consideration the person's previous work experience.  You may
have firsthand insights into his or her working personality.  For
example, if your friend disliked her last supervisor who was "too
bossy" or has said that she hates taking instructions from morons,
consider how receptive shell be to your management style.

Establish a professional tone for the working relationship.  You should
present to,the person a job description or an outline of work duties
along with your procedures manual.  Even if your office has a relaxed
or casual atmosphere, you need to head off possible misconceptions.

For example, one bootstrapper hired her best friend to handle clerical
tasks, and although the two women's children were playmates, the
business owner explained that the kids were not allowed in the office
under any circumstances.  You should also set some boundaries about how
you'll both behave during work; tamng too much about personal issues
can affect the relationship's professional tone.

Treat the person with respect at all times, clarifying up front how
performance issues will be handled.  You should also avoid asking him
or her for a personal favor that you wouldn't dare ask another
employee.  If you behave as a professional, your relative or friend
will be encouraged to do so, as well.

Survival Tip #124: Expand your recruitment venues.

Placing a newspaper ad is often the knee-jerk reaction of a business
that needs to find job applicants.  But this can be expensive and

.

often produces a pile of unqualified or undesirable applicants.

Consider some other sources for matching your business with skilled
people.  You can reach the qualified crowd nationwide through Internet
databases (www.bestjobsusa.com) or through Jobtracles online service
(wwwjobtrak.com; 800-999-8725).  The type of work you're offering may
be a hands-on experience that's fit for a college work-study or intern
program.  One bootstrapper has had great success in hiring college
freshmen to work in the business up until graduation.  If your opening
is suitable for a college student, contact placement offices at local
colleges and universities.

Consider community workplace programs-opportunities to help improve
your community employment base while meeting the needs of your
business.  For example, the Metropolitan ansportation Authority in Los
Angeles (213-922-5255) sponsors an employment and training educational
program.  The program places high school students in transportation
industry companies for a 10-week internship.  Another program called
"Workhnle' (800-253-7746) helps employers evaluate the workplace skills
of local high school students.  And the National School-to-Work
learning and Information Center (800-251-7236) helps facilitate
opportunities for students to gain skills through local employers.

Use your professional affiliations as sources, too; they could point to
some reliable contractors.  For example, the HomeBased Business
Association of Arizona (www.softrain.coni/hbba) publishes the
semiannual Independent Contractors' Outsource Network directory,
listing local self-employed professionals, and distributes it to
sources most likely to need the services of these professionals.  You
can also expand your recruitment pool by offering your colleagues or
suppliers incentives for new hire referrals.

Survival Tip #125: Train people to retain them.

Nothing will eat up your profits faster than employee turnover.

Your role as an employer isn't limited to issuing directives and being
able to meet payroll.  Your job includes being a nurturer and mentor to
your employees.  It's an ongoing process and begins on the first day of
employment.  Set your workers up for success by providing them with .

Working with Others ample equipment, materials and supplies to do the
job.  You should also give them a job description or checklist to
eliminate any ambiguity about their responsibilities.

You should establish a timetable for acclimating the worker to aspects
of the job.  Avoid overwhelming a person with everything at once.  You
should set aside blocks of time to introduce and work through various
tasks.  You might include a sample packet that illustrates how forms or
letters are to be completed or procedures for answering the phones.

Encourage the worker to ask questions as you go along, and set aside
separate nines to talk about how things are going.  When you're dealing
with a performance issue, always tell the employee how to improve.  For
example, rather than saying, "You need to take better messages,"
explain that a complete message includes name, company, alternative
phone numbers and times to reach the caller, along with a brief
description of the call's purpose.  This type of feedback provides the
employee with a clear path toward improvement.  Provide your workers
with positive reinforcement.  If your employees feel good about working
for you, it'll come through in their customer service.  (You can adopt
a similar approach when you use the services of a temporary worker.)

Remember that hiring employees is an investment not only in your
business but in other people.  The only way to have productive and
profitable relationships is by developing people's ability along with
your business.  Helpful resource: Choosing the Right Training Program:
A guidebook for small businesses (see page 201 for ordering
information).

Survival Tip #1 26: Make your business an attractive place to work.

You may not be able to compete with the benefits of a blue-chip
employer.  Frankly, you may not have to.  Small businesses are in the
enviable position of being able to offer their workers unique
incentives that a big business might ignore in its quest for uniform
policies and regulations.  Here are a few examples of the advantages
that you, as a small business employer, can offer your workers:

.

Try to pay the most competitive rates to employees that you can afford
because you'll save money overall.  A printer who is concerned about
waste taking place in production, for example, would probably see the
waste factor reduced if he paid for quality staffers.  Weigh your wage
scales against going rates in your community.  You can get compensation
information from trade associations, the unemployment office or those
in your networking circle.

 You can boost your pay offer with other incentives.  For example, one
bootstrapper offered a clerical staffer an additional per them to her
hourly wage for projects in which she handled advanced tasks.  The
business owner didn't have to commit to paying the extra money
regularly, plus it gave the worker an incentive to improve her skills.

You can also offer a delivery bonus for meeting a deadline on a big
job.  Or create a special discount program, such as offering regular
discounts on your merchandise or services.

 Include your workers in special events that you're invited to.

 Consider time and convenience benefits.  Workers are hungry for
flexible work arrangements.  If it jibes with the needs of your
business, try offering flextime, personal emergency days or
telecommuting arrangements.

 Just like you charm your customers with extras (see Survival Tip
#89), do the same for your employees.  If you have access to any deals
that can be passed along to your employees, then pass them along.

YOU MAINTAIN FRIENDLY COOPERATION WHEN YOU

Listen to those around you.  Your secretary or anyone who works with
you can be a source of inspiration.  How attluied you are to other
people's feedback is a self-esteem issue (see Survival Tip #11).  When
you close yourself off from others' perspectives, you may be mii;sing
out on opportunities with potential benefits.  You may not use other
people's exact ideas, but their thoughts may plant seeds for concepts
of your own.  So listen.

.

Working with Others Avoid pigeonholing your providers.  You want your
customers to use more of your offering menu; your providers would
appreciate the same from you.  For example, many people use their
accountant only at tax time.

You can use his or her professional service to strategize and plan
year-round everything from business financing to purchasing decisions
to retirement planning.  Don't overlook your printer's expertise; he or
she could advise you on the best paper to buy for your office printer
and tell you which paper houses have the best deals.  Consider your
providers part of the business family.

RAespect others' professional abilities.  Your time demands may re
quire outsourcing work that you can very well do yourself.  Since
you're capable of doing the work, you may not place as much value on
another per son's abilities.  Resist the urge to nitpick at the work,
thinking you could have done a better job yourself Review the work with
an objective eye.  It doesn't have to be done your way for it to be
considered .  If it's done well, appreciate the effort.

Don't irk others the way customers irk you.  Doesn't it annoy you when
a client uses the "check is in the mail" line?  Or when clients don't
re turn your phone calls?  Or when they try to pull a fast one on you?

Your people network feels the same way when you behave this way toward
them.

So don't do it.  And if you're tempted, remember: Do unto others as you
would like them to do unto you.

Survival Tip127: Create a championship circle.

Put the expertise and wisdom of others to work in your business by
creating a board of directors.  Your board c-an include a mix of
professional peers, legal or financial advisors, or mentors.  Some
business owners opt to have a peer group of selected professionals.

Since you'll be soliciting advice from the group, your members should
include people that you respect and with whom you share similar
philosophies and business practices.  It helps when some of the members
are more experienced or conversant than you in a particular area.

You can use the group to provide you with feedback on aspects of
running your business or you can bounce growth and development
strategies off of them.  You should meet with them periodically in
person.  You can also send them an informal quarterly update about your
business.  A bootstrapping publisher uses her circle to discuss
editorial issues related to her publication.  Another bootstrapper
meets bimonthly with a peer group of six others to discuss problems and
brainstorm about new ideas.  The advantage of such working I
relationships is that the members can point out blind spots in your
thinking and give you objective feedback because they don't have the
emotional attachment to issues of your business that you do.

Another option is to work with a business coach.  A coach helps you set
goals and grow your business through problem-solving sessionsduties
similar to your board's functions, but for a fee.  Your board, peer
group or coach relationships are set up separately from your other
networking groups.  You should always host or pick up the tab for any
gathering where people are advising you for free.  Though it may take
time to develop your board, it's a component of your people network
that you can start building today.

Survival Tip #128: Get in on a trade secret exchange.

Trade secrets can be invaluable.  No, I'm not talking about proprietary
business information that is protected by intellectual property laws.

I'm talking about secrets of your trade, the kind of knowledge that can
be gleaned from other businesspeople who have front-line information
that a newcomer, novice or outsider may not be privy to.

It's another form of networking, but the more bonded you are with a
person, the deeper the information you'll get.  It's not about creating
a gossip exchange.  And it goes beyond asking people what type of
software they use or what is the best association to join.  It's about
gaining an advantage in a situation because of the information you
heard straight from the mouth of an insider.

For example, one bootstrapper received an offer to do some spokesperson
work for a national corporation.  She was inexperienced in these
matters and didn't want to be overzealous in negotiating the offer's
terms.  Fortunately, she had a relationship with someone who had
experience in this area.  The person openly explained the fine art of
such deals, including how much money and the type of perks to ask for.

She was wide-eyed while listening to all this information but followed
the instructions and landed a plum deal for herself The trade secret
clearly gave her an advantage in handling the situation.

People who trade secrets are great networkers.  But it takes a great
networker to know one.  It's a dividend from relationships built over
time.  Secret-swapping will begin to happen as you earn people's
confidence through actions that reveal your character.  As .

Working with Others people become comfortable with you, they'll open up
and share valuable information that you'll be hard-pressed to find
elsewhere.  Confidence is important, since trading a secret often
involves sharing intimate details about one's personal situation.  It
re quires give-and-take, too.  So, as you begin to give of yourself,
you'll become the recipient of some trade secrets, too.

Bootstrapper's Follow-up File

101 Questions to Ask Your CPA, American Institute of Certified Public
Accountants, Division for CPA Firms, 201 Plaza 3, Harbor Side Financial
Center, Jersey City, NJ 07311-3881.  A free guide offering tips and
suggestions for using a CPA as an integral part of your business.  Send
S.A.S.E with request.

Choosing the Right Training Program: A guidebook for small businesses,
Government Printing Office, Superintendent of Documents, P.O. Box
371954, Pittsburgh, PA 15250-7954; 202-512-1800.  A 42-page training
guidebook.  $3.25.

Employer Information Hotline, U.S. Department of Justice, Office of
Special Counsel, 800-255-8155.  A 24-hour hotline providing employers
with free tips and information packets on how to comply with the
employment eligibility verification process, featuring prerecorded
information, a faxback option and the opportunity to speak with a
representative.

Equal Employment Opportunity Conumission, Publications Information
Center, 800-669-3362.  Provides free resource booklets and fact sheets
on hiring and employment practices.

Hiring resources: ADA Enforcement Guidance: Preemployment
Disability-Related Questions and Medical Examination and Job
Advertising and Preemployment Inquiries Under the ADEA, Equal
Employment Opportunity Commission (EEOC), Office of Communications and
Legislative Affairs, 1801 L St. NW, Washington, DC 20507.  Free guides
outlining .

permissible preemployment inquiries under the 1990 Americans with
Disabilities Act and the Age Discrimination in Employment Act of 1967.

How to Hire Right the First time and Avoid Costly Turnover Problems by
Kimberly Stansell, Research Done Write!, Suite B261-BSS, 8726 S.

Sepulveda Blvd Los Angeles, CA 90045.  Special report presenting a
five-step plan for hiring employees.  Includes tips on interviewing,
testing and training staffers and a list of additional employer
resources.  $5 ($5.41 for Cahfomia residents).

National Association of Temporary and Staffing Services, 119 S. Saint
Asaph St Alexandria, VA 22314-3119; Web address:
www.natss.conVstaffing.  Provides legal and legislative advocacy,
public relations, education and industry-related information to its
membership of staffing services companies.  Offers referrals to local
firms in your area.  Send S.A.S.E for a free copy of How to Buy Temporary
Help Services.

Occupational Safety and Health Administration, Publications Office,
P.O. Box 37535, Washington, DC 20013; 202-219-4667; fax: 202-219-9266;
Web address: www.osha.gov.  Provides a bevy of free resource guides,
such as How to Prepare for Workplace Emergencies, Working Safely with
Video Display Terminals, Consultation Services for the Employer and
Employee Workplace Rights, as well as a free complete listing of the
agency's holdings titled OSHA Publications and Audiovisual Programs.

OPAC System Keyboarding Test, 800-999-0438; Web address:
www.biddle.com.

A software program containing three different timed typing tests.

Promotional copy, available for $6 handling fee, can also be downloaded
for free from Web site.

Paychex, 800-322-7292.  Provides payroll services to small businesses.

Stay Out of Court: The Manager's Guide to Preventing Employee Lawsuits
by Rita Risser (Prentice Hall, 1993); 800-922-0579.  $18.95.

The Job Accommodation Network, 800-526-7234.  Provides free advice to
businesses on how to accommodate disabled workers.

.

Working with Others The Manufacturers'Representatives Educational
Research Foundation, P.O.

Box 247, Geneva, IL 60134.  Provides free listing of industry-specific
rep associations and guidelines for interviewing and working with a
prospective rep.

The Motivational Manager.  Strategies to increase morale and
productivity in the workplace, Ragan Communications, 800-878-5331; Web
address: www.ragan.com.  A monthly newsletter.  Free sample copy
available.

The President's committee on Employment of People with Disabilities,
1331 F St. NW, #300, Washington, DC 20004; 202-376-6200; fax:
202-376-6219.  Provides a free, comprehensive information package about
ADA compliance, including material on tax and hiring incentives.

The Virtual Office Survival Handbook: What Telecommuters and
Entrepreneurs Need to Succeed in Today's Nontraditional Workplace by
Alice Bredin (Wiley, 1996); 800-225-5945.  $16.95.

.

Chapter 9 Coping With Adversity

"Each of us has the right and the responsibility to assess the roads
which lie ahead, and those over which we have traveled, and if the
future road looms ominous or unpromising, and the roads back
uninviting, then we need to gather our resolve and, carrying only the
necessary baggage, step off that road into another direction.  If the
new choice is also unpalatable, without embarrassment, we must be ready
to change that as well."
-Maya Angelou, poet and author Survival Tip #129: Prepare to pick
yourself up when you stumble.

Everybody stumbles over bumps during their bootstrapping journey.

Your survival will depend on how well you pick yourself up and move on.

The bumps will include setbacks brought on by inexperience, lack of
forethought or uncontrollable influences.  Setbacks can be unsettling,
rocking your confidence or threatening your professional and financial
well-being.  But the experience doesn't have to deter you from pursuing
your dream.  How well you rebound will depend on your attitude.  You
nan train your mind to manage disruptive occurrences so that you don't
succumb to paralysis.  The process begins by adjusting your perspective
on setbacks.

First, understand that setbacks aren't failures.  Failing to persevere
is a failure.  You may be on the verge of turning the corner of
success.

If you retreat with discouragement, you'll miss out on what you've been
working toward.

Second, setbacks provide you with an opportunity to learn about
yourself You may discover a character flaw, such as being inflexible or
resistant to change, that is hindering your success.

Third, setbacks will reveal how committed you are to your vision.

If you delve into the personal histones of successful bootstrappers,
you find that many of them endured extraordinary challenges.  However,
their commitment to make the business successful was stronger than
their desire to quit, thus sustaining them through the difficult spots.

There is no absolute formula for eliminating the inevitable highs and
lows of running a business.  Instead, there are strategies you can use
to turn stumbling blocks into steppingstones to more success.

During my bootstrapping tenure, I've stumbled into all sorts of
predicaments.  Nevertheless, I persevered.  The following tactics
(Survival Tips #130 through #140) have contributed to the development
of my mental toughness.  Each one has helped me get up, dust off, put
one foot before the other and move forward.  You, too, can use them to
emerge stronger and become a better businessperson.

Survival Tip #130: Analyze your situation.

Curb any impulse to reach for a Band-Aid cure when faced with
adversity.  Instead, stop and begin to analyze your situation.  Make
some mental or written notes; this will help clarify your reality.

Money experts always advise people to first list all debts to determine
their financial position.  The same approach will serve you well, too.

.

Coping with Adversity Ask yourself How deeply am I buried in this
situation?  You need to know exactly where you stand.

Your notations should define your problem.  List the events that have
created the situation and the consequences you're experiencing, and
express how it makes you feel.  For example:

Probleim I caift meet my overhead expenses.

]Event: I haven't had any billable work in 60 days.

Consequence: My suppliers are threatening to discontinue services.

Feelings: I'm snapping at everyone, and insomnia is my nighttime
companion.

Now dig deeper by determining if you're faced with a short- or
long-term problem.  If you haven't had work for 60 days, why is that?

Do you have something in the works that's being delayed?  Let's say
that you landed a new contract, but it was pushed back by the client.

The projected delay time will determine its effects on your current
situation.  A 30-day postponement is short-term compared to a sixmonth
one.  Or is the 60-day dry spell the result of marketing negligence due
to overdevotion to one project?  In this instance, you're leaning
toward a long-term situation-it's difficult to drum up work when you've
ignored your marketing pipeline (see Survival Tips #74 and #98).

When faced with an adverse situation, it's easy to feel like you can't
see the forest for the trees.  An assessment of the situation helps you
grasp the bigger picture, break it into manageable bites and begin to
resolve it accordingly.  You'll be free to untangle yourself from a
situation and focus on realistic and appropriate solutions.

Survival Tip #131: Focus on solutions to rework a situation.

As a novice bootstrapper, I used to have one response to my setbacks:
Quit!  It always seemed that just as my business was gaining momentum,
something would come along to disrupt its progress.

. .

Every setback increased my internal pressure; I felt that everyone was
watching and still wondering what possessed me to quit "that good job."

I was no stranger to hard work, but I wasn't used to trying so hard to
make something work.  So quitting always seemed like the best solution.

But I never did.  I would walk away from the problem for a day or two,
come back and take a stab at reworking my approach.  After a few years,
my automatic reaction to a problem was the thought: "Rework the
situation."  A shift in my mind-set had occurred; my natural
inclination was to focus on solutions no matter what I faced.

Once you've clarified the long and short of your situation, ask
yourself.  "What do I need to get over this hump?"  Don't get stuck
staring at the problem-it won't change anything.  Shift your energy
toward resolving it.  What steps can you take to bring it to an end?

Jot down all possible solutions-even farfetched ones.  If money is the
issue, you need to focus on all the ways you can generate some.  Let's
say that slow-paying clients are wreaking havoc on your cash flow.

Don't let their bad habit persist.  Possible solutions: Request
deposits or payments in installments, or charge a rebilling fee to
discourage late payments.  "Relief' solutions-intended to take out the
sting of the problem in the immediate term-may require you to swallow
your pride and be more flexible.  For instance, you could resolve a
60-day dry spell by taking on less desirable work or offering to do
overflow jobs for a competitor.

There is a solution to every problem you'll face in business.  Some
solutions will be obvious, whereas others may require creative footwork
on your part.  Your action-oriented mind-set will help you work through
any feelings of discouragement.  Inactivity only intensifies the
consequences -of your problem, and you'll begin to feel hopeless as
things deteriorate.  Putting solutions into action is the only way to
build a bridge to the other side of a problematic situation.

Survival Tip #132: Distinguish between a money problem and a strategy
problem.

Many setbacks you encounter will not be money-related, although they
may appear to be on the surface.  A timely cash infusion can give .

Coping with Adversity new life to a business on its last leg, but money
itself will not rescue you from the results of following a bad idea
that is eating up your funds.

Let's say that you've been testing a direct-response ad for three
months.  The results have been marginal.  Your budget is running low,
and you need to keep testing.  The advertising outlet has offered you a
special new promotion; however, the cost exceeds what you have
available.  You begin to brainstorm for ways to get more money to throw
into this strategy.  Stop.  Are you about to pursue a dead end?

Your results have been marginal, and all the outlet is offering you is
another opportunity to drag the process out for a reduced rate.  Before
you make an additional commitment, examine your approach.  You may
discover that you've been advertising on low-response days (such as
Wednesdays and Saturdays instead of Sundays or Tuesdays, which are
high-yield days).  Perhaps you overlooked a detail such as this in your
planning.  Throwing more money into advertising on more "off' days
would not solve your problem; tweaking your strategy will.

When you automatically think money is the solution, you'll be prone to
throw good money after bad.  When evaluating a setback as it relates to
your financial base, first examine what you're doing.  Do you
understand the direction or strategies that you're using?  Are you
making decisions with outdated information?  Do you need more
information, training or knowledge?  Approaching your problems this way
will help build discipline.

Before you go looking under your mattress for your stash, ask yourself,
"Is money really my problem?"

Survival Tip #133: Call on the counsel of a select few.

When you're going through a difficult time, you need a safe place to
vent your thoughts and feelings.  You nan build a "safe house" 'with 4i
pillars" such as your family members, friends, colieagues or
championship circle (see Survival Tip #127).  You won't call on them to
solve your problems but to serve as a sounding bound, to help you gain
perspective and to make you feel less isolated.  Talking through your
problems can unclog your thinking and clear the path to solutions.

Your intimate circle should include people who are familiar with your
background, who understand you and what you're doing and who are great
listeners.

For example, one pillar in my safe house is my best friend, Jamis.

She's my childhood friend and a fellow entrepreneur.  Venting with
someone who has known me for so long has contributed to my success
journey; she reminds me of my attributes that I tend to forget.  You'll
get the best feedback and support when you have honest and secure
people rallying around you.  They have insights into your character and
an unfailing way of helping you see overlooked solutions.

Don't discount the value of being active in an online newsgroup or
other forum, either.  Although the communication is faceless, people
use message boards and forums to forge professional bonds.  ' When you
actively participate in an online forum, you're building up a form of
loyalty and support.  I've witnessed a countless number of occasions in
which an active member has posted a problem he or she is having, and
regular troopers have responded, providing valuable feedback and
insights based on similar experiences.  The dialogue is candid and
open.

If you don't have someone to talk to, all is not lost.  My favorite
line in the movie Shadowlands is: "people read to know they're not
alone."  Reading books by and about accomplished businesspeople can
help clarify your thinking in a situation.  Articles in entrepreneurial
periodicals that share others' survival strategies and struggles can be
helpful and inspirational.  Read, clip, file and refer to these pieces.

They may be your life jacket when you're drowning.

Survival Tip #134: Don't be afraid to change directions.

Setbacks are often red flags, flashing signals that you're traveling in
the wrong direction.  It's tempting to ignore the signs if you have a
predetermined picture of what your business should look like.  Rather
than considering a directional change, you will probably want to clamp
down and persist in handling the setbacks the way you always have.  But
a business that never seems to sustain its momentum is a candidate for
directional scrutiny.  The problem may be that you're .

210 r Coping with Adversity trying to gain entry into the wrong market,
courting the wrong customer or marketing the wrong message (reread
Chapters 5 and 6).

Setbacks may also be signaling you to go back to the direction that
gave you your first success.  A graphics supply firm, for example,
enjoyed early success selling high-quality graphics supplies to
advertising agencies and artists.  As the operation grew, its owner
began to dabble in other areas of the industry.  The company began to
experience a series of financial setbacks because the owner, who was a
salesperson by nature, took over financial and administrative tasks and
strayed from the strength that built the company-his contact with the
customers.  The business got back on track by aligning everybody in the
company with duties that matched their talents.

Give yourself permission to change your direction.  You may feel that
you'll appear foolish to others, be ridiculed or have to hear, "I told
you so."  But it's your business and you're in control.  You'll find it
easier to reroute your direction when you're not in heavy financial
debt (see Survival Tip #44).  But don't let your worries influence your
decision to make a change; you'll have more difficulty dealing with the
internal voice that you've ignored.  Misplaced determination or pride
won't pay your bills or move you any closer to building a better
business, so feel free to modify your business accordingly.

Survival Tip #135: Consider downsizing solutions.

Stumbling blocks may be the result of using too many cylinders to build
your business's engine.  Big chain retailers, for instance, accelerate
their growth through a blowout strategy, opening multiple locations as
fast as possible before they're copied by competitors.  Your business
may have adopted a similar strategy to create marketplace dominance or
boost profitability.  Your success, however, will depend on the
management resources you have in place to support the demands of this
approach.  Otherwise, you're bound to experience problems because of
your inability to juggle all the responsibilities.

Consider the concept of downsizing to reduce what you're doing to a
more manageable size.  Are you losing money?  A downsized business that
is well-managed will make more money.  Are you trying to .211 manage
too many profit centers?  For example, if your consulting business has
speaking and publishing components, the demands of your two secondary
components may be pulling you away from consistent follow-through on
your customer contacts and leads to the point that your primary practic
onsulting-isn't really growing.  Begin to dissect the areas responsible
for the breakdown.  For example, your speaking component is a
combination of paid and in-kind speaking engagements.

You could downsize by limiting your pro bono engagements from 12 per
year down to, say, six.  If your publishing component includes a
promotional newsletter, reduce its size, rather than decreasing its
frequency.  If you offer free consultations, designate a certain day to
conduct them, rather than doing them upon request.

The downsizing concept can be applied to your overall business or to
specific areas.  This concept allows you to leverage yourself and
eliminate some of the problems you're experiencing.  Be careful not to
shrink your business to the point that it becomes anorexic.  Your goal
is to be able to manage and grow the business at a sustainable level
that allows you to minimize the adverse effects associated with trying
to do too much.

Survival Tip #136: Try suspending your operation before you walk away.

When the oil industry went bust in Texas, so did Jan Triplett and Dan
Diener's Austin-based business.  The partnership duo produced
customized slide-tapes for oil companies' in-house training programs.

The once-lucrative business struggled along through year's end until
the demand for its services evaporated; its primary customer market
stopped hiring and training.  What's more, other local industries
slowed down as they held their breaths waiting for the ripple effects
of the bust to hit them-so Triplett and Diener could not turn to them
for business.  Down to their last $36, Triplett and Diener started to
think that closing the business was their best bet.  But it
wasn't-their services could be offered to another market, not just oil
companies.

They decided to suspend their full-time operation for a few months and
use the time to restrategize.

.

Coping with Adversity Your circumstances may be overwhelming, and you
may want out.  You may just need some time away from the situation, or
you may be facing personal issues that require a release from your
responsibilities.

Rather than close your doors entirely, give yourself some breathing
room and temporarily suspend the operation.  You can use the suspension
period to reevaluate your situation and create a comeback plan.  You
may not need to suspend the business completely but reduce your
activities to a minimal level.  Diener and Triplett, for instance, took
workplace jobs, did odd projects and still networked to form other
alliances, which led to new contracts.

when deciding whether to suspend or to terminate your business, ask
yourself  Is there still a market for my offering?  You may need to
change directions or reinvent your presentation to the market (see
Survival Tip #134).  These modifications may still be able to work
under the guise of your current business.

 Do I still enjoy the work and the business?  If not, then closing it
to pursue another avenue may be the best solution for you.

What is the core issue I am facing and how can it be resolved?

plett and Diener faced the problem of losing the target market for
their services.  They could resolve their problem by finding a new
target market and taking some time out to accomplish this since the
overall economic climate of the city had declined.

A suspension puts your business in a state of readiness to be revived.

If you don't leave your customers hanging, you'll lessen the fallout
from your decision.  Explain to them what you're doing, why, and for
how long.  Give them as much notice as possible with some alternative
suggestions, perhaps making some arrangements for another professional
to serve them.  If you still have passion for being you!- own boss,
quitting isn't the solution.  Taking time to reforge is.

5 THINGS TO DO WHEN BUSINESS IS DOWN

1. Keep your marketing engine running.  Don't abandon your marketing
plan.  Many businesses cut back on marketing during hard times.  It's
wiser to slash another fixed cost.  Studies have shown that businesses
who maintain or increase their marketing outlay during slow periods
wind up outselling competitors who cut back.  Consider adopting some
short-term marketing tactics, such as sales or price promotions, to
ride out a slump.

Whatever you do, dowt Turn off your marketing engine.

2. Donate a few hours of your services as a door prize.  Luise Kursmark
has donated her desktop publishing services as a prize for golf
tournaments sponsored by her business association.  The winner gets a
certificate good for specific services such as layout or design, which
Kursmark advertises as a $100 value.  This gets the winner into
Kummaries office and stirs his or her imagination, usually generating a
project for more than the certificate value.  A giveaway can be a
business stimulator for a startup as well as an ongoing tactic to
expand a business's customer base.  You can also tailor this strategy
to products you may sell; it can be a great way to increase a
storefront's foot traffic.

3. Get a temporary gig.  Don't be ashamed to work in someone else's
business as a temporary worker.  If you need the money, this can be a
quick way to generate some cash.  You'll find that the temporary work
force is fun of other self-employed people.  You can sign up with a
temporary employment service, preferably one that serves your local
community so that commuting costs don't eat up the money you earn.  You
can also offer to do overflow work for a competitor when you're e slow.

ItR keep you involved with work you enjoy while funneling some cash
into your business.

4. Comb the classifieds.  Perusing the classifieds can help you in two
ways: You may find an independent contractor opportunity or you may be
able to create an opportunity for yourself to fifl a need.  Go through
the classifieds and mark the ads that interest you.  Contact the
company and offer your business as the solution to their temporary
problem.  Be sure to emphasize how your special skills and talents can
save the company money in the interim; they're getting an experienced
person who they dowt have to train.  Some companies think they need to
a regular worker, when in reality they really need a qualified
contractor-which could be you!

5. Offer incentives for paying in advance.  Try offering discount
incentives to customers who prepay for long-term commitments.  For
ample, some online service providers provide you with savings when you
prepay your service for a year.  You can apply this concept to your
business, as well.

A financial advisor, for instance, could offer clients six one-hour
planning sessions at $100 an hour to be used over a given year.  Preset
this way can generate cash quickly.  Limit your preselhng program to a
period of one year, leaving yourself room to introduce any rate
increases.  A word of caution: Be sure that when business picks up
again, you're still able to manap all the prepaid accounts (see
Survival Tip #149).

.

Coping with Adversity Survival Tip #137: Don't allow stress to
overwhelm you.

There will be times when your stress system is tested.  If you're not
careful, your mind and body will short-circuit.  When you're working
through a difficult situation, particularly a prolonged one, don't
ignore physical systems, such as headaches, body aches and pains,
chronic fatigue or inertia.  This is your body talking, alerting you
that it's possibly about to conk out before you resolve your current
problem.  You may be tempted to keep hammering away at the problem,
thinking you're close to finding a resolution.  Don't do that to
yourself; you may not make it.

In a survey I conducted, bootstrappers said that their number-one
strategy for surviving a tough time was taking a break.  Not going on
vacation, but taking a moment to step away from the problem.  Setting
the problem aside for a brief moment frees your mind to concoct
possible solutions.  A put-it-on-the-shelf mentality can help you
better manage stress.  For example, one home-office bootstrapper takes
time out to garden for a while and comes back refreshed to tackle the
issue at hand.  Another bootstrapper takes on one-day temporary
assignments through a service to get away from the office.  You can
renew your spirit through inspirational or devotional reading.  You
know what your body and mind respond favorably to, so gravitate towards
that which will rejuvenate you.

PsYchologist Maynard Brusman has a tip for managing highstress periods.

At the end of the day, do a quick review in your mind of what you've
done.  Rest in the fact that you've done everything possible for one
day.  Appreciate your efforts.  Appreciate the day.  Relax your mind
and go to sleep because tomorrow is another day.  You'll have another
chance to work on the problem.

Survival Tip #138: Don't ignore your financial obligations.

A bootstrappers absolute survival skill: proficiency in juggling
expenses.  If you become entrenched in a cash crunch, you need to know
how to manage your financial responsibilities without ruining your
credit and vendor relationships.  Prioritize your bills based on your
legal and credit obligations.  If you employ others you should always .

meet payroll.  Credit cards, bank equity lines, insurance premiums,
utility bills, and auto, equipment or office space leases merit top
attention because delinquencies are reported on your credit report and
you can lose service or possession of your assets.  You should always
pay at least the minimum to these creditors.

You should also avoid missing your IRS payment obligations, such as
payroll deposits or your quarterly estimated taxes.  You'll be
penalized, and trying to catch up on payments can be difficult.  You
may find more leeway with your smaller vendors, such as a printer,
bookkeeper or other professional service provider.  Don't be afraid to
communicate.

You may feel embarrassed that you're in this position, but failing to
notify your debtors can result in needless heartache.  If you're in a
prolonged cash crunch-say, for 60 to 90 days-get on the phone and start
negotiating.  Explain to your debtors the situation, your absolute
willingness to pay and your need for some special arrangements.  You
may be in for a pleasant surprise.  A bootstrapper was in a 90-day cash
c=ch and unable to make her car payment.  She called the creditor and
explained how she had miscalculated her cash return on the opening of a
new facility.  The creditor suspended her payments for three months
without repossessing the business van.  Her solid payment history with
the company prompted this cooperative arrangement.

Drastic times may require that you let go of those "nice to have"
things and keep the bare necessities.  You can reduce your expenses by
scaling back on services-for example, unlimited usage of your online
service, which generally costs more, or work you have outsourced, such
as your office-cleaning.  You may be able to entirely eliminate some of
these services.  You should also make a list of quick cash
alternatives, noting all the sources you pull money from in an
emergency.  You'll have a ready supply of solutions when your capital
is thin.  (You can learn more about juggling your expenses from my
special report How to Pay Your Bills When You Don't Have Any Money.

See page 218 for ordering information.)

Survival Tip #- 139: Make mental notes all through the trial.

Adversity can guide you into a better understanding of yourself But if
you're not paying attention, you'll miss it.  Dr. Martin Luther King,
Jr said that the best time to judge a person's character is in a Coping
with Adversity time of adversity.  It can be an opportune time for you
to judge yourself and use those observations to become a savvier
businessperson.

You can develop this self-awareness by making a concerted effort to
note your reactions as you're going through a trying situation.  One
bootstrapper asked her employees to evaluate her performance and
discovered that she didn't communicate or give directions well when she
was particularly busy with clients, which made it difficult for her
staff to work independently.

When asked what the self-employment journey has taught them about
themselves that they didn't realize before, many of my survey
participants cited inflexibility.  This quality often surfaced in the
midst of adversity.  Many respondents said that had they been more
flexible in their attitude, a problem could have been resolved sooner.

Many of them were guilty of having an "it's my way or no way" attitude.

Ask yourself-.  "Why am I in this situation?"  or "what is the lesson
of ce?"  It may be the result of a personal weakness.  If you ignore
it, you'll find yourself in the situation again or in an even more
intensified one.  Be open with yourself, exploring your flaws and your
motives.  Are you judging people too quickly?  Then you need to be more
open to others'suggestions.  Are you reacting this way because of a
lack of confidence in yourself.?  Then you should try to remedy this
area through self-development (see Survival Tip #147).  You should note
everything that went right and things that went wrong duling a
difficult period.  Note your positive attributes and examine ways to
apply them to the counterproductive parts of your character.

Survival Tip #140: Use the experience to put safeguards in effect You
can neutralize some of the lows of running a business by using what you
learned from previous slumps and working to sidestep them in the
future.  First, acknowledge any mistakes you made that brought hardship
into your business.  You'll continue to stumble over your ego if you
can't admit you made a mistake.  Admitting your mistake opens you up to
learning from the experience.  Sort through the mistake or setback and
examine the facts, looking for areas where you can apply some
preventative measures.

.

Let's say that a dissatisfied customer demanded that you refund a
portion of your consulting fee but you've already spent it.

Depending upon the financial state of your business, you may be facing
a precarious situation.  Now is the time to figure out how to prevent
such a quandary from happening again.  Retrace how the project was
secured and examine the source of the customer's discontent.  Were you
clear on the specifications of the job?  Did you stay close during the
servicing process, checking in when you met certain benchmarks (see
Survival Tip #93)?  Next, examine ways you could have prevented the
situation.

Preventative measures could include using a project intake form (see
Survival Tips #82 and #94).  In the past, I've used a project strategy
form, which includes all of the specifications of the work I'm doing
for a client.  In this instance, the use of one could have been a
lifesaver.

Another safeguard would be to make it standard procedure to check in
with clients while you're working on a job, particularly on long-term
projects.  As for the issue of not being able to refund the money-you
have bills to pay, I understand.  But it's critical to have something
to fall back on, such as a line of credit you can use in an emergency.

With each adverse experience, you'll develop into a seasoned
selfemployed professional.  It'll become natural for you to look for
remedies to your problems and develop your business so that the lows
don't alwa s push you back to square one.  You may not exactly delight
in y your struggles, but you'll have a more positive outlook.  You'll
be looking for ways to use the experience to pave your way to future
success.
- Bootstrapper's Follow-up File I.

I

100 IVays to Motivate Yourself- Change Your Life Forever by Steve
Chandler (Career Press, 1996); 800-CAREER-1 (201-848-0310 in N.J.

and outside U.S.). $13.99.

How to Pay Your Bills When You Don't Have Any Money by Kimberly
Stansell, Research Done Write!, Suite B261-BSS, 8726 S.

Sepulveda Blvd Los Angeles, CA 90045.  Special report presenting a
five-step plan for handling your financial obligations when you're in a
cash crunch.  Includes tips and strategies for developing a cash .

Coping with Adversity cushion and negotiating your debt without ruining
your credit.

$5 ($5.41 for Cahfomia residents).

Insights and Inspiration: How Businesses Succeed, Blue Chip Enterprise
Initiative, 800-367-2234.  A collection of case studies on businesses
that have overcome extraordinary challenges and emerged stronger.

Profiles hundreds of businesses from a variety of industries.

Book: $8.95; three-volume video: $50.

Making it on Your Own: Surviving and Thriving on the Ups and Downs of
Being Your Own Boss by Paul and Sarah Edwards (Jeremy P.

Tarcher/Peiigee, 1991); 800-788-6262.  $10.95.

Succeeding in Small Business: The 101 Toughest Problems and How to
Solve Them by Jane Applegate (Plume/Penguin USA, 1992); 800-331-4624.

$12.

The Accidental Entrepreneur.- for Self-Employed Corporate Re)4ees, 3421
Alcott St Denver, CO 80211.  A bimonthly newsletter.

Send S.A.S.E for free sample.  $24/year.

The Power of Positive Thinking, The Peale Center, 800-274-5097.

A free, 50-page, condensed version of the best-selling book by Norman
Vincent Peale.

Winning Ways: The newsletter for people living and working with
passion, P.O. Box 39412, Minneapolis, MN 55439.  A bimonthly
selfemployment newsletter.  Sample copy: $4; one-year subscription:
$31.

Working Solo: Reaching Independent Entrepreneurs, 800-822SOLO; Web
address: www.workingsolo.com.  Quarterly newsletter.

$24/year.

Chapter 10 Managing Your ro,%v an eve opnien "If one advances
confidently in the direction of his dreams, and endeavors to live the
life which he has imagined, he will meet with a success unexpected in
common hours."
-Henry David Thoreau, American writer, philosopher and naturalist
Survival Tip #141: Take pride in the legacy you leave behind.

How do you want to be remembered in your lifetime?  What is the mark
you'd like to leave on society?  Joumahsts often ask presidents how
they'd like to be recorded in the history books.  It's an area of
concern; no president would relish the thought of his tenn being dubbed
a lame-duck tenure.

You can shape your legacy through a mission statement that defines the
aims, goals and purpose of your business.  You can combine it with a
personal mission statement that speaks to your life's direction, values
and beliefs.  The dynamics of these statements can contribute greatly
to your business's success.

A company mission statement will keep your business focused.  It will
work as the guiding principle for growing and developing your business.

The statement will remind everyone working in your business what your
business stands for.  Here's an example of a media producer's mission
statement: "produce quality educational materials, dealing with health
and social issues, to serve students and teachers" A publisher's
statement: "provide affordable and practical financial information to
help women become financially independent" These statements are clear,
direct and easy to follow.

You can also use your personal mission statement to guide your business
practices.  Combining the two kinds of statements will help you behave
in ways that reflect your values.  It will prick your conscience,
helping you avoid becoming concerned only with your bottom line and
ignoring the effects your decisions may have on people to whom you're
committed.  When a factory owner's facility burned down, he continued
to pay his workers.  He chose not to be remembered as the factory owner
who made money off all the locals and left town.

The public applauded his behavior but viewed it as unusual because we
live in times when companies choose profits over people.

Ask yourself, "What do I want to be remembered for?"  Use and grow your
business in a way that promotes the legacy you want to leave behind.

Survival Tip #142: Etch out a growth plan.

A fledgling business becomes a thriving one through the deliberate
planning of its owner.  Your business may have unlimited potential, but
you'll never realize it without a plan for unleashing what's there.

First, examine what you want for yourself.  Someone once urged me to
grow my business so large that it would become a problem.  An
interesting thought, but not for me.  I've envisioned another working
lifestyle, so I quickly tossed the advice.  You're building a business
around your dreams and desires, not someone else's.  Clarify your I.

Managing Your Growth and Development position immediately, because it
will influence the growth choices you make.

Look at your business from many different angles.  Does it lend itself
to going national or global?  Even the smallest local shop may have
hidden broader geographical appeal.  Consider other audiences who could
use your offering.  There may be room for you in other markets.  Can
you redress your offering?  For example, high-end fashion designers can
create a lower-end line under a subsidiary label to capture the dollars
of another audience.  Are there other distribution channels for you to
use?  A local television program repackaged its format into a radio
show.  A product manufacturer marketed its wares through a catalog.

Think of your business as a prism in your hands.

When you look at it from various angles, you'll see other ways to
expand what you're doing.

Next, identify the resources you'll need to move into growth areas.

For example, if exporting interests you, then begin educating yourself
through the National Export Center (800-872-8723).  If you're planning
to increase your distribution channels, you'll need to identify
qualified outletsIf you plan to launch a Web site, you'll contact
technology developers.  You etch out your plan by addressing the who,
what, when and how.  Your plan should include implementation
timetables, perhaps introducing each phase in annual or biannual time
frames.  Leave yourself room to make changes.  You may begin exploring
an area and discover that it's not for you.  Your plan will become a
reality through a goal-setting program (see Survival Tip #143).

Survival Tip #143: Use goals to bring your vision to life.

Bill Griffeth, the farmer of host CNBC's Money Club, gave viewers a
prescription for feeling uneasy about their lives when they reach
certain milestones: setting goals.  If you never set goals or fail to
follow through on your desired achievements, you begin to dread turning
points, such as birthdays or a new year.  It's difficult to assess your
life or appreciate your travels because you don't have a solid
reference point.  Goals give you something to measure your life
against.  Studies show that only 2 percent of the population has
written goals; interestingly, those people are the ones who achieve
success.

. .

44 Goals are an amazingly powerful tool.  They Turn your thoughts of
what might be" into "what will be."  If you want to have a purposeful
direction, to realize your business's potential or to develop into a
business champion, you need to set goals.  You can bring the vision for
your business into fruition through goal-setting.  A business without
goals may progress aimlessly and end up in detour directions.  You can
use goals as a road map, defining paths with specific plans and ideas.

This is the best way to capture the future you've dreamed for yourself
Goal-setting need not be complicated.  Begin by writing your goals
down.  Your goals should be specific and measurable, have a timetable
and be divided into manageable pieces.  For example, saying you want to
increase revenues is too general, but saying you want to increase sales
by $75,000 within the next 12 months is targeted.  You would break this
into achievable parts.  I assign quarterly steps that must be
accomplished in order to achieve my overall goal.  My quarterly
accomplishments help create momentum into the next quarter.  This
approach sometimes results in me reaching the goal earlier than I had
planned.  Motivation experts encourage you to write down the personal
benefit or reward associated with your goals.  This works as your
reminder of what's important.  The $75,000 increase, for instance, may
translate into a one-month vacation.  Regularly review your goals to
ensure you're on track, possibly posting them prominently in your
office.

You must commit to working at your goals.  Otherwise, the exercise is
futile.  Don't overwhelm yourself-, start with a few small goals.

However, once you realize each one, savor the feeling of having drawn
success from inside yourself and having persevered.  Use the
achievement as a reminder of what you can do, and move on to set more
goals for yourself and your business.  A helpful freebie: Personal Goal
Planner.- Your Monthly Companion, available by calling 800-731-GOAL.

This a special offer to readers of Bootstrapper's Success Secrets, so
be sure to mention this book!

Survival Tip #144: Generate some energy through diversification.

Here's a bootstrapping adage: "It's easier -to make $1,000 per month
from 10 businesses than it is to make $10,000 from one."

.

Managing Your Growth and Development Although reaching your financial
goals may not require a conglomerate of 10, diversification can be an
excellent way to grow your business.

You can increase your product or service line with one or more
closely-related activities.  Your profits can increase dramatically
while overhead costs stay virtually the same.  Diversification works as
an income stabilizer.  If one aspect of your business slows down, you
have other sources to pull from.

There are many ways to diversify a business.  A service firm can
diversify by adding a retail product.  A product line can be
diversified with new applications.  For example, a manufacturer of
quick-fitting pipe couplings for oil fields sells one for construction
and public work applications.  But diversification doesn't stop here.

It can include changing your marketing methods, moving from direct
selling to consumers to wholesaling to shops or taking your
person-to-person services and offering them to the business-to-business
market.

Diversification can also work as an antidote to business boredom.  One
business owner always loved to write.  She was able to diversify her
business by penning articles in her field of expertise.

Granted, some businesses are easier to diversify than others.  Give
your business a chance.  Start by identig other markets where you fit
in, asking: Who needs what?  How can I modify my existing product or
service to make it appealing to another target audience?  What else
might I offer that would help or benefit my clients or customers?  Some
businesses have grown nicely on a one-stop shopping concept, providing
their clientele with a primary offering supported by related ancillary
ones.  A business that relies on one widget for one purpose may die.

Think about ways you can use diversification to keep life in your
business.

Survival Tip #145: Create passive income opportunities.

Nancy NUchaels of Impression Impact in Concord, Massachusetts, was able
to double her income while limiting the scope of her serv' ices.

How?  By repackaging herself into a product.  Her firm provided
fullservice marketing services, which included designing and
implementing plans for small businesses in the New England region.

Good pay, .  .

but the implementation was grueling.  Nhchaels decided to cut back and
offer plan design only, but she needed to do something to make up for
the lost income.  She was already using public speaking to promote her
practice, so she took the meat from her presentations and packaged it
into a marketing cassette series, How to Be a Big Fish in Any Pond
(800-BIG-FISH).  The product served two purposes: Michaels is able to
make money without being present, and it's an effective marketing tool.

You, too, can make money in your absence through passive income
opportunities.  You can "clone' yourself and work and earn money when
you're not around by taking what you know people are willing to pay for
and packaging it into another format.  It's considered a passive income
opportunity because you invest in the initial production and let it
start working for you.  It's a low-maintenance form of diversification.

A newsletter, for example, is high-maintenance-you have to produce it
in regular intervals.  But a cassette series, such as the one Nhchaels
created, is low-maintenance.  She made the initial investment, and she
doesn't have to make any revisions to it for years if she chooses.

A passive income opportunity also gives others who otherwise can't
afford your offering, or who are out of your market's physical
location, access to you.  The income is often generated by products
such as books, audiocassettes, videos and software.  You can also use
faxback services, allowing users to tap your information base from a
menu of reports or fact sheets.  A 900 number is another device.  A
lawyer, for instance, can dispense legal tips on a 900 line.

Your passive income item or service is promoted along with your core
business.  The difference: It works for you while you're working for
your clientele.

urvival Tip #146: Continually invest in your business.

According to a national survey I conducted, the number-one investment
bootstrappers make to grow their business is an investment in
technology-technology in the form of better equipment and advanced
features.  Survey respondents invested in resources that helped them
provide better service, do more work in less time and .

Managing Your Growth and Development branch off into different areas. 
These resources can include everything from bookkeeping software to
voice mail to color printers to designing a Web page.  You, too, should
continually look for ways to build a better business through equipment
investments.

Resist the "If it ain't broke, don't fix it" mentality- You may be
selling your operation short.  Face it: The office you started off with
shouldn't look the same five, 10 or 15 years down the line.  There
should be some semblance of growth.  That begins with investing in
better tools.

Your investment strategy should complement your business's growth and
goal plan (see Survival Tips #142 and #143).  For example, once her
business turned the corner, one bootstrapper decided that her policy
was to buy a new computer system every two years.  This investment has
helped her enjoy 25- to 30- percent growth each year.

Your investments may include a deluxe printer or copier.  Investments
such as these allow you do more work in-house, thus increasing your
profits and eliminating taps to the corner store.  As you expand with
regular employees, a networking communications system may be necessary.

Another investment may be refurbishing your office, creating a
workplace setup that better complements the way you work.  For
instance, you may decide to ditch a makeshift desk and replace it with
an ergonomically friendly, roomier workstation that acts as a central
location for all your work and your tools (computer, printer, etc.).

The next top investment bootstrappers make to grow their businesses is
an investment in people.  Your people investment will pay off most when
you help employees grow with your business (see Survival Tip #125).

Recent studies have shown that one of the top reasons employees quit
their jobs is that there is no opportunity for advancement or personal
development.  You'll get more from your people investment when you give
workers flexibility in their work, a say-so in how they work and closer
contact with you and your customers, according to recent studies.

The third best bootstrapper investment is in personal growth and
development (see Survival Tip #147).

Survival Tip #147: Continually invest in yourself Avoid getting too
comfortable with success by neglecting your own personal growth and
development.  It's a fatal mistake, making you vulnerable to changes in
the world around you.  Create and commit to your own lifetime learning
program.  You'll keep your skills sharp, stay current, maintain your
prosperity and be in step with our everchanging society.  You should
earmark funds from your business to invest in various self-development
vehicles and tools.

Make reading a priority.  There's a lot of good information on the
market, and you should regularly be feeding your mind with some of it.

Rely on a combination of resources that are tailor-made for your
information needs.  For example, you could subscribe to an
entrepreneurial magazine, newsletter and newspaper, creating a mixed
balance of general management or industry-specific resources.  My
startup strategy included checking out from the library all the back
issues of various publications to determine which ones were best for
me.  You can also stay current by scheduling library reading days.

Save yourself some money by taking advantage of publication trial
offers or ordering subscriptions for up to 90 percent off the cover
price through a wholesaler such as Below Wholesale Magazines
(800-8000062).  I've put together the Bootstrappin' Entrepreneur
Newsletter Bundler Packcige to help jump start your reading program
(see page 233 for ordering information).

Also, associate with your associates!  Hands-down, bootstrappers will
tell you that their best sources of information and learning have been
other people.  You can connect with fellow bootstrappers through local
and national associations.  Gale Research's Encyclopedia of
Associations, which can be found in most libraries, lists more than
20,000 groups nationwide.  You can find other networks by scouting them
out online or asking your local S.B.A office or Small Business
Development Center.  You'll benefit most from an association membership
when you .  actively participate and work with its members.

R,egularly attend seminars, conferences or workshops.  You can learn a
lot at functions sponsored by associations or educational management
companies.  Commit to attending at least one major annual conference or
trade show.  Or attend at least two mini-workshops or seminars
annually.  You don't have to leave your office to learn.  Online
courses are growing in popularity, allowing you to participate from the
comfort of your computer desk chair.  Also, consider programs through
local universities or colleges, such as the University of Southern
Cahfomia's Business Expansion Network (213-743-1726).  You'll .

Managing Your Growth and Deuelopment find other educational programs
and events in the various trade publications you read.

Survival Tip #148: Put some money to work for your future.

Many business owners wait for their business earnings to soar before
they begin stashing away some retirement cash.  They hope that future
profits will make up the difference for what theyre not saving.  Avoid
delaying the investment process.  Besides robbing yourself of valuable
tax deductions, you're reducing your greatest investment ally: time.

Financial experts and advisors repeatedly encourage people to put their
money to work as soon as possible so they can benefit from the effects
of compound interest.

A few retirement savings options are available to you as a selfemployed
person.  Vehicles you can use to plan for your future:

Individual Retirement Account (IRA).

Simplified Employee Pension Plan (SliP or SliP-IRA).

 Keogh (self-employed retirement plan).

 Savings Incentive Match Plan for Employees of Small Employers (SIMPLE
Plan).

Each plan has its own nuances.  Depending on your selection, you can
tax-defer anything from $2,000 to $30,000 and can include your
employees.  Helpful primer information includes the following IRS
booklets (call 800-TAX-FORM): Individual Retirement Account
(Publication 590); Self Employed Retirement Plans (Publication 560);
and Form 5305-SIMPLE.  Retirement planning kits for the self-employed
are available from T. ROwe Price (800-638-5660) and Fidelity
Investments (800-544-4774).  You can also speak with a financial
professional to aid you in your decision.

Look for other ways to make your working capital grow.  For example,
the United Services Government Securities Savings Fund (800-873-8637)
has a couple of account options that come with unlimited checkwriting
and pay daily competitive interest on every penny of your balance.

Another helpful resource: Money Smart Secrets ol'the Self-Employed by
Linda Stern (see page 234 for ordering information).

Survival Tip #149: Monitor your commitment level.

There's a fine line between expanding your business activities and
spreading yourself too thin.  You need to leverage the business to
avoid becoming overextended with commitments you're unable to fulfill.

You should constantly monitor what you're doing, how you're doing it
and the effects it has on your operation.  You're entering the
overcommitment zone when the quality of work is compron-Ased.  Think
of your work as a self-portrait.  If commitment levels begin to paint a
satisfactory picture versus excellent one, you need to reconsider what
you're doing.

You can keep pace with your commitments when you have a reliable
support system.  Carefully monitor your support channels (see Survival
Tip # 1
19 for examples of a support network).  Should there be a breakdown in
your system, you're headed for trouble.  For example, if you're
experiencing persistent employee turnover, take nine out to address
what's going on in your business.  The same attention should be given
to any outsourced portions of your business.  Your priority should be
stabilizing problem areas first.  It's foolish to bypass them.

Your business will not grow unless it's adequately supported.

I was once contracted to do some consulting work with a software
developer-a well-financed, two-man partnership that had received a
couple of product development projects.  The partners jumped at these
opportunities-this was what they'd been working toward.  They had hired
several contractors to work on various aspects of each project, in
addition to investing in new equipment to streamline work done inhouse.

In the beginning, every project progressed nicely.  Then each project
began to take on a life of its own, each having a different set of
problems.  The demands of each project began to overwhelm the hands-on
owners, making it difficult for them to work cohesively with all the
teams.  Eventually the poor planning and lack of infrastructure halted
one of the projects; the owners were unable to deliver on their
commitment.  They tried to do too much too fast, without the proper
support.

It's good to test the boundaries of your business.  That's what growth
is all about.  However, sustained growth is the result of delivering
quality work consistently.  You can only do that when your business is
running on all cylinders.

.

Managing Your Growth and Development Survival Tip # I SO: Relocate with
the "portable" parts of your business.

Your entrepreneurial journey may transplant you into another community.

We're a mobile society.  Census Bureau statistics show that since 1975
nearly three-fourths of all households had changed residences.

Economic conditions or changes within your family circumstances may
dictate a change in your location.

Leaving your local community doesn't mean you have to abandon or
disband your business.  If your business is driven by a local
clientele, think about parts of it that you can take with you.  If
you've been diversifying or expanding your distribution channels (see
Survival Tip #144 and #145), you may be able to run some of those
activities from your new location.  A travel agency, for example, began
with a local customer base.  Through years of advertising in national
travel magazines, its clientele was broadened, so when the owners
decided to relocate from Cahfomia to Oregon, they were able to take the
business with them.  Your growth strategy (see Survival Tip #142) could
include adding a "portable" profit center to allow you some flexibility
in the event of a move.

As a growth-minded entrepreneur, you may be tempted to run to where
business prospects and the quality of life are better.  You can make
lifestyle changes more easily when your entire business is portableable
to be operated regardless of its location.  For example, my business,
Research Done Write!, can be operated from any place that has an
adequate number of phone lines and good phone service.

Relocation may also be an opportunity to reimplement an idea that
floundered in your old neighborhood.  A home-based digital computer
imaging firm struggled for three years in Montana, where the demand for
high-tech graphic design was low.  The owner moved to Phoenix, known
for its thriving home-based business community, and set up shop.  The
business flourished locally, eventually building up a local and global
clientele, including London, Brazil and China.

Louise Kursmark, a certified professional resume writer and desktop
publishing professional, was relocated by her husband's job.  She
quickly introduced her business to the new community.  Her savvy move:
volunteering her services to a group that would connect her to her
target audience.  She hooked up with the Job Search Focus Group .

in Cincinnati and offered to teach resume-writing workshops, thus
getting a chance to help others while helping herself It's important to
let your new community know you're there.  You can accelerate the
process by sending out press releases (see Survival Tip #62) and
joining associations.  Some communities even profile their new small
business residents in the local paper.  (You can learn more about
relocating your business from my booklet, The Entrepreneur's Relocation
Guide.  See page 235 for more information.)

Survival Tip # I 5 1: Develop success qualities.

The past four years of writing, consulting and developing projects
aimed at small business owners have given me an opportunity to meet
some of the most intriguing and fascinating people.  They haven't
graced the pages of People magazine, but they have definitely shaped
the content of this book.  Those people are entrepreneurs.  Their
stories have inspired and encouraged me in my own personal journey and
make me proud to count myself as one of their crowd.

Those interviewed for this book were asked to share the one personal
quality that has helped them become or remain successfully
self-employed.  The most popular responses were: perseverance,
tenacity, enthusiasm ' persistence and sincerity.  But it doesn't stop
there.

There are a few other things you need to know about what it takes to
make it as a bootstrapping entrepreneur:

 You must be willing to do research; it's one thing to come up with a
good idea, but it's another to follow through on bringing it to life.

 Never promise more than you can deliver.  If you don't accept shoddy
workmanship from others, you shouldn't expect your customers to accept
it from you.

 The ability to stay focused on your goals is critical.

 A commitment to excellence will help you stand out from the crowd.

.

Managing Your Growth and Development You'll remain steadfast when you
have an absolute conviction that there's no happiness working for
someone else.

It is my belief that you absolutely need faith in God.

These are the qualities that have served hundreds of bootstrapping
veterans across the country well.  They can work for you, too.

I've presented to you the tips, tactics and strategies that will help
you build a more profitable business, but please do not overlook the
important character traits you need to have enduring success.  They're
already inside some of you, waiting to be unleashed.  Some of you may
need to develop them by reshaping your perception about yourself and
life.  Whatever you do, be your best.  Be courageous.  Be honest in
your dealings.  And never give up on your dream.  Until the next book
Bootstrapper's Follow-up File

900 Know-How: How to Succeed With Your Own 900 Number Business by
Robert Mastin (Aegis Publishing Group, 1996); 800-828-6291; Web
address: www.aegisbooks-com.  $19.95.

Apple Computer seminars, Web address: www.seminars.apple.com or
www.smallbusiness.apple.com.  Seminars for small business owners
nationwide.  Past topics have included "Grow Your Business
Electronically,"

"How Big Do You Want to Be" and "Leverage Technology to Your
Competitive Advantage."  Locations, times and dates available on Apple
seminars Web site.

Black Enterprise, 800-727-7777; Web address: www.blackenterprise.com.

A monthly magazine.  $16.95.

Bootstrappin'Entrepreneur Newsletter Bundler Package by Kimberly
Stansell, Research Done Write!, Suite B261-BSS, 8726 S.

Sepulveda Blvd Los Angeles, CA 90045.  A package containing the most
popular four issues from the newsletter collection.  Timeless
information, including more marketing tips, business-building .

strategies, networking contacts nationwide, success stories, case
studies and dozens more resources.  $20 ($21.65 for Cahfomia
residents).

Business97, Group IV Communications, 125 Aubum Court #100, Thousand
Oaks, CA 91362; 805-496-6156.  A bimonthly publication offering
information on small business management and marketing.

Sample copy: $4.50; one-year subscription: $21.

Creativity Success Journals, Spotlight Publications, 800-527-7625.

A personalized entrepreneurial journal to log the growth plan or goals
for your business or other projects.  $19.95.

Edward Lowe Foundation, 800-232-LOWE; Web address: www.lowe.org and
www.edgeonline.com.  Sponsors, organizes and develops courses for a
variety of educational conferences, seminars and workshops held across
the country for small business people and entrepreneurs.

Encyclopedia ofassociations, Gale Research, 800-347-4253.  A library
reference book listing more than 20,000 groups nationwide.

Entrepreneur.- The Small Business Authority, 800-274-6229; Web address:
www.entrepreneurmag.com.  A monthly publication.  $19.97.

Francorp, 800-372-6244; e-mail address: francorpaol.com.

Provides consulting on franchising to entrepreneurs.

Home Office Computing: Solutions for Today's Small Business,
800-228-7812; Web address: www.smalloffice.com.  A monthly publication.

$16.97.

Inc.: The Magazine for Growing Companies, 800-234-0999; Web address:
www.inc.com.  A monthly magazine.  $19.

Money Smart Secrets of the Self-Employed by Linda Stem (Random House,
1997); 800-726-0600.  $20.

Moving Expenses (Publication 521) and Change ofaddress (Form 8822),
Internal Revenue Service, 800-TAX-FORM; Web address:
www.irs.ustreas.gov.  IRS information on relocating and moving.

.

Managing Your Growth and Development National Center for Financial
Education, S.A.S.E Section, P.O. Box 34070, San Diego, CA 92163; Web
address: www.ncfe.org.  Provides information to help people do a better
job of spending, saving, investing, insuring and planning for their
financial future.  Send S.A.S.E for information package.

Self-Employed Professional, 800-366-7857.  A bimonthly publication.

Sample copy: free; subscription: $19.97.

The Entrepreneur's Relocation Guide by Kimberly Stansell, Research Done
Write!, Suite B261-BSS, 8726 S. Sepulveda Blvd Los Angeles, CA 90045.

A 32-page guide providing you with a six-step plan for relocating
yourself, your family and your business.  Includes money-saving tips,
research strategies for evaluating a new location, relocatee profile
and directory of small business assistance agencies nationwide.  $9.50
($10-28 for California residents).

What Are Your Goals?: Powerful Questions to Discover What You Want Out
of Life by Gary Ryan Blair (Wharton Publishing, 1993); 800-731-GOAL.

.

Appendix D'i'rector of esources r 0 Small Businesses Alabama Center for
Commerce Small Business Office of Advocacy 401 Adams Ave. Montgomery,
AL 36130
334-242-0400 Publication: Doing Business in Alabama (free)

Alaska Trade and Development P.O. Box 110804
Juneau, AK 99801
907-465-2017 Publication: Establishing a Business in Alaska ($8 plus
$3.50 shipping and handling)

Arizona Business Connection Arizona Department of Commerce Bldg.  D,
3800 N. Central Ave.  Phoenix, AZ 85012
602-280-1480 Publication: Small Business Book: Guide to Establishing a
Business (free) Directory of State Resources for Small Businesses
Arkansas Industrial Development Commission Florida Department of
Commerce One State Capitol Mall Division of Economic Development Little
Rock, all 72201 Collins Bldg.

501-682-1121107 W. Gaines St Room 443 Publication: Starting a Business
in Arkansas Tallahassee, FL 32399
904-488-9357 California Office of Small Business, Office of Permit
Assistance Publication: Florida Business Guide: References and
Resources California Trade and Commerce Agency for Florida Business
(free) 801 K St Suite 1700
Sacramento, CA 95814 Georgia Economic Development Department
800-353-2672 Information Department Publication: California Permit
Handbook (free) P.O. Box 1740
Atlanta, GA 30301 Colorado Business Assistance Center 404-586-8403

1625 Broadway, Suite 805 Publications: Small Business Sources of
Capital; Starting a New Denver, CO 80202 Business; Management Services
and Technical Assistance: Small 303-592-5920 Business Resources
Handbook (free) Publication: The Colorado Business Sta7-t Up Kit (free)
Hawaii Department of Business and Economic Development Connecticut
Department of Economic Development Business Action Center Office of
Small Business Services 1130 N. Nimitz Highway, Suite A254
805 Brook St.  Honolulu, HI 96817
Rocky Hill, CT 06067 808-586-2545

860-258-4200 Publications: Starting a Business in Hawaii; Hawaii's
Business Publication: Starting a Business?  Start With Our Help (few)
Regulations; Checklist for Employers in Hawaii; All About Business in
Hawaii (free)

Delaware Development Office Small Business Advocate Idaho Department of
Commerce P.O. Box 1401 P.O. Box 83720
D(jver, DE 19903 Boise, ID 83720
302-739-4271 208-334-2470 Publication: Small Business Sta7t- Up Guide:
A Blueprint for Publication: Starting a Business in Idaho (free)
Beginning Business Operations in Delaware (free) Illinois Department of
Commerce and Community Affairs District of Columbia Office of Business
and Economic Development First-Stop Business Information Center 717
14th St.  NW, 10th Floor 620 E. Adams St 3rd Floor Washington, DC 20005
Springfield, IL 62701
202-727-7100 217-785-7546
Publication: Washington Business Guide (free) Publication: Starting a
Business in Illinois (free)

.
238 239 Indiana State Information Center 402 W. Washington St Room W160
Indianapolis, IN 46204
317-233-0800 Publication: General Information Sheet for New Businesses
in Indiana (free)

Iowa Department of Economic Development Small Business Division 200 E.

Grand Ave.  Des Moines, IA 5309
515-242-4700 Publications: Iowa Small Business Resource Guide, Business
License Package (free)

Kansas Department of Commerce Business Development 700 SW Harrison St. 
Suite 1300
Topeka, KS 66603
913-296-3481 Publication: Steps to Success ($3)

Kentucky Cabinet for Economic Development Small and Minority Business
Division Small Business Start-up Packets 23rd Floor Capital Tower
Frankfort, K'Y 40601
502-564-4252
Publication: Steps in Establishing a Business in Kentucky (free)

Louisiana Department of Economic Development Office of Commerce P.O.

Box 94185
Baton ROuge, IA 70804
504-342-5893 Publication: Six Steps to Starting a Business in Louisiana
(free)

.

Directory of State Resources for Small Businesses Maine Department of
Economic and Community Development Office of Business Development State
House Station #59
Augusta, ME 04333
207-287-2656 Publication: Answers: A Guide to Doing Business in Maine
($4)

Maryland Department of Economic and Employment Development Regional
Development Department Redwood Tower 217 E. Redwood St. Baltimore, MD
21202
410-767-6300 Publication: Maryland Guide to Business Resources (only
obtainable online at www.mdbusiness.state.md.us)

Massachusetts Office of Business Development One Ashburton Place, Room
2101
Boston, MA 02108
617-727-3206 Publication: Small Business Assistance Packet (free)

Mchigan Jobs Commission Business Start-up Assistance Victor Office
Center, 4th Floor

201 N. Washington Se.

Lansing, MI 48913
517-373-9808 Publication: Business Start-Up Package (free)

esota Small Business Assistance Office 500 Metro Se.

121 7th Place E.

St.  Paul, NM 55101
612-296-3871 Publications: A Guide to Starting a Business in Minnesota;
An Employer's Guide to Employment Law Issues in Minnesota; A
Manufacturer's Guide to Products Liability Law in Minnesota (free)

.

Mssissippi Department of Economic and Community Development P.O.
BoxJackson, MS 39205
601-359-3593
Publication: Entrepreneur's Tool Kit (free)

Afissouri Business Assistance Center, Community and Economic
Development P.O. Box 118
Jefferson City, Nhssouri 65102
573-751-4982
Publication: Starting a New Business in Missouri (free)

Montana Business Development Division, Department of Commerce P.O. Box
200501
Helena, MT 59620
406-444-3814
Publications: A Guide to Montana's Economic Development and Community
Development Programs; Start-A-Business (free)

Nebraska Department of Economic Development Business Assistance
Division P.O. Box 94666
Lincoln, NE 68509

402-471-3782
Publications: Checklist for Starting a Business in Nebraska; Financing
Alternatives for Nebraska Businesses; Management and Technical
Assistance for Businesses (free)

Nevada Small Business Advocacy Office 2501 E. Sahara, Suite 100
Las Vegas, NV 89104
702-486-4335
Publication: Small Business Start-Up Package (free)

New Hampshire Business Finance Authority Industry Development Authority
14 Dixon Ave Suite 101
Concord, NH 03301
603-271-2391
Publication: A Guide to Doing Business in New Hampshire (&M) .

Directory of State Resources for Small Businesses New Jersey Department
of Commerce and Economic Development SWMB Division 20 W. State ST.-CN
835
Trenton, NJ 08625
609-292-3860
Publication: Doing Business in New Jersey ($5)

New Mexico Economic Development Department P.O. Box 20003 Santa Fe, NM
87504 505-827-0300 Publication: Starting Out: A Guide to Creating Your
Own New Business (hw)

New York Business Assistance Hot Line, Empire State Development

633 3rd Ave 32nd Floor New York, NY 10017
800-782-8369 Publications: Your Business, A Management Guide ($5);
Small Business Start-Up Package (free)

North Carolina Small Business and Technology Development Center 4509
Creedmoor Rd Suite 201
Raleigh, NC 27612
919-571-4154
Publication: New Business Start-Up Kit (free)

North Dakota Department of Economic Development and Finance 1833 E.

Bismarck Expressway Bismarck, ND 58504
701-328-5300
Publications: Economic Development Guide; New Business Registration
For7ns (&ee)

Ohio One-Stop Business Permit Center Department of Development,
Economic Development Division P.O. Box 1001 Columbus, OH 43216
614-466-4232
Publication: Starting Your Business in Ohio (free)

Oklahoma Department of Commerce P.O. Box 26980
Oklahoma City, OK 73126
405-843-9970 Publication: A Guide to Doing Business in Oklahoma
(free)

Oregon Business Information Center Public Service Bldg Suite 151
255 Capitol St.  NE Salem, OR 97310
503-986-2222 Publication: Oregon Business Guide (free)

Pennsylvania Small Business Resource Department of Community and
Economic Development 374 Forum Bldg.

Harrisburg, PA 17120
717-783-5700 Publication: Pennsylvania Small Business Operations and
Resources Guide (free)

Rhode Island Economic Development Corporation One W. Exchange St. 
Providence, RI 02903
401-277-2601 Publication: Starting a Business in Rhode Island (free)

South Carolina Department of Commerce Enterprise Development P.O.
BoxColumbia, SC 29202
803-737-0400 Publication: BusinessLine (free)

South Dakota Economic Development 711 E. Wells Ave.  Pierre, SD 57501
605-773-5032 Publication: Business Start-Up Package (free) .

Directt)ry of State Resources for Small Businesses Tennessee Department
of Economic and Community Developnii-nt Office of Minority Business
Enterprise Rachel Jackson Bldg 7th Floor 320 6th Ave.

N.

Nashville, TN 37243
615-741-2545
Publication: Small Business Guide (free)

Texas Department of Commerce, Business Information and Referral P.O.

Box 12728
Austin, TX 12728
512-936-0081
Publication: Business Information and Referral Packctge (free)

Utah Business and Economic Development Division 324 S. State, Suite 500
Salt Lake City, LTT 84114
801-538-8800
Publication: Doing Business in Utah: A Guide to Business Information
(free)

Vermont Department of Economic Development 109 State St. Montpelier,
VT 05609
802-828-3221
Publication: The Vermonter's Guide to Doing Business (free)

Virginia Department of Economic Development P.O. Box 798
Richmond, VA 23206
804-371-8100 Publications: Let Us Guide You; Virginia Capital Resource
Directory; Guide to Establishing a Business (free)

Washington State Business Assistance Center P.O. Box 42516
Olympia, WA 98504-2516
360-753-5632 Publications: Operating a Business in Washington State: A
Business Resource Guide; Business Resource Directory: For Financial and
Technical Assistance (free) .

West Virginia Development Office Department of Commerce Capitol
Complex, M-146
Charleston, 25305
304-558-2234
Publications: Going into Business in West Virginia; Minor* Owned and
Women Owned Business Directory (free)

Wisconsin Department of Commerce Business Helpline P.O. Box 7970
Madison, WI 53707
608-266-1018
Publication: Going into Business in Wisconsin: An Entrepreneur's Guide
(free)

Wyoming Economic and Community Development 6101 Yellowstone Rd 4th
Floor Cheyenne, 82002
307-777-7284
Publication: A Guide to Business Permits and Licensing in Wyoming
(free)

.

Bootstrapper's Survey

.

Calling all bootstrappers!  The following is part of an ongoing
research project to gather feedback from self-employed people across
The country.  There's no form to fill out.  Simply send in your
responses to the following questions.  You can answer all of them or
selected ones.  Your feedback may be used in various articles, books
and other projects under development and could lead to your business
being prominently profiled in a future project.

1. What questions would you like to see answered in a book for small
business owners?

2. What parts of running a business present you with the most
challenges?

3. What strategies have you used to graduate from a struggling
bootstrapper to a prosperous one?

4. Share three things self-employment has taught you about yourself
that you didn't know while in the workplace.

5. What is the most imaginative approach you've used to get new
business or a client, to promote your business or to boost pmfits?

6. which strategies in this book did you find the most or the least
useful, and why.?

7. If you won a private coaching session with a small business expert,
what problems would you have him or her help you work through?

.

Your participation is appreciated.  Please include a brief description
of yourself and your business and how we may contact you.

Send to:

Kimberly Stansell R,esearch Done Write!

Suite B261-BSS 8726 S. Sepulveda Blvd. Los Angeles, CA 90045 e-mail
address: Ibootstrapaol.com Thank you!

.

About the Author Kimberly Stansell bagged her job as a corporate
personnel director in 1989 and hasn't looked back since.  She
reinvented herself 'nto an information specialist and small business
coach.  She runs Research Done Write!  from her home in Los Angeles. 
Companies and organizations across the country use her research,
writing and consulting services to develop reference materials and
products aimed at the small business marketplace.  She published the
national quarterly, Bootstrappin'Entrepreneur.- The Newsletter for
Individuals with Great Ideas and a Little Bit of Cash, for four years
and now helps others learn the ins and outs of entrepreneurship through
her personal coaching service.

Kimberly's bootstrapping techniques have been featured in The Los
Angeles Times' weekly business column "Small Talk" and a variety of
publications, including USA Today, Home Office Computing, The Chicago
Tribune, Bottom LinelPersonal, Woman's Day, Black Enterprise and
Entrepreneur's Business Start-Ups.  Her bootstrapping column regularly
appears in Self-Employed Professional magazine.

Kimberly has also provided instructional and motivational television
spots to Making It!  Minority Success Stories, which airs on three
California stations and more than 100 cable stations nationwide.

For more information about her services, contact:

Research Done Write!

Suite B261-BSS 8726 S. Sepulveda Blvd. Los Angeles, CA 90045 e-mail
address: lbootstrapaol.com
