BASICS OF PROMOTION ADVERTISING

Promotion advertising differs significantly from consumer francise-building advertising. The latter is long-term in nature and aimed at giving customers reasons to buy. Promotion advertising is short-term. It pushes for the order by providing incentives, coupons, rebates, premiums and contents.

The usual medium for promotion advertising is print. Some big-budget advertisers use broadcast (radio and television) to get consumers to look for their promotion advertising in their local newspapers. As a rule, promotion advertising should be specific and should call only for consumer to perform a desired action. Resist including extraneous points in the promotional ad. Focus on a simple call to action.

For example: Your ad copy may ask the readers to
(1) Redeem this coupon and save $2, or
(2) Buy two packas and get the third one free, or
(3) Fill out coupon and enter sweepstakes to winn $100,000, or
(4) Buy two of the products and receive a free gift worth $10.

Most promotion events are price or added-value oriented campaigns. As such, it is imperative that when writing copy, the ad should appeal more to the wallet than the emotion. Final point: Do not make your redemption procedure complicated and confusing. Avoid have a more that one time of offer wherein the consumer is forced to use math in order to determine which ones make him/her save more money. Your task is to make it easy for the consumer. Avoid having to make them decide. That's too much work for them.

read to:
making-money-with-voice-mail
sell-information-by-mail
business-name
learn-yours-money
115-ways-to-earn-money
service-business
starting-at-home-big-money-business
how-to-get-job-fast
get-rich-without-working
profitable-home-based-business

Readmore »»

MAKE YOUR BUSINESS SURVIVE # Part II

Many small companies set up advisory boards or outside professional people. These are sometimes known as Power Circles, and once in place, the business always benefits, especially in times of short operating capital. Such an advisory board or power circle should include an attorney, a certified public accountant, civic club leaders, owner/managers or businesses similar to yours, and retired executives. Setting up such an advisory board of directors is really quite easy because most people you ask will be honored to serve.

Once your board is set up, you should meet about once a month and present material for review. Each meeting should be a discussion of your business problems and an input from your advisors relative to possible solutions. These members of your board of advisors should offer you advice as well as alternatives, and provide you with objectivity. No formal decisions need to be made either at your board meetings nor as a result of them, but you should be able to gain a great deal from the suggestions you hear.

It should be that most of your customers have the money to pay at least some of the money they owe you, immediately. To keep them current and the number of accounts receivable in your files to a minimum, you should call them on the phone and ask for some kind of explanation why they're falling behind. If you develop such a habit as a standard part of your operating procedure, you'll find your invoices will magically be drawn to the front of their piles of bills to pay. Do not be hesitant nor too much of a "nice guy" when it comes to collecting money.

Something else that's a very good business practice, but which hew business owners do is to methodically build a good credit rating with their local banks. Particularly when you have a good cash flow, you should borrow $100 to $1,00 from your banks every 90-days or so. Simply borrow the money - place it in an interest-bearing account - and then pay it all back at least a month or so before it's due. By doing this, you'll increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice. This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes desperate.

By all means, you should join your industry's local and national trade associations. Most of these organizations have a wealth of information available - everything from details on your competitors, to average industry sales figures, to new products, services and trends. If they give you a membership certificate or wall plaque, you should display these conspicuously on your office wall. You customers like to see such "seals of approval" and place additional confidence in your business when they see them.

Still another thing often overlooked - if at all possible, you should have your spouse work in the business with you at least 3 to 4 weeks per year. The important thing is that if, for any reason, you are not available to run the business, your spouse will be familiar with certain people and situations about your business. These people should include your attorney, accountant, any consultants or advisors, your major suppliers and creditors. The long-term advantages of having your spouse work four weeks per year in your business with you, greatly outweigh the short-term inconvenience.

Whenever you can, and as often as you need it, you should take advantage of whatever free business counseling is available. The Small Business Administration has many excellent booklets, checklists and brochures available on quite a large variety of businesses. They also have management and financial assistance programs that can definitely benefit just about any small business. Most local universities, and many private organizations hold seminars at very minimal costs, often without charge. You should also take advantage of free services offered by your bank and local library.

You may feel no great need for continuing education courses, but if you learn even one new bit of information that will be of ultimate benefit to you or your business, the little time spent at a seminar or in a night course, will be a wise investment. The important thing about continuing education courses, but if you learn even one new bit of information that will be of ultimate benefit to you or your business, the little time spent at a seminar or in a night course, will be a wise investment.

The important thing about running a small business is to know the direction in which you're heading - to know on a day-to-day basis, your progress in that direction - to be aware of what your competitors are doing - industry trends and sales figures for businesses comparable to the size of yours - to practice good money management at all times - and to prepare yourself to solve your problems before they arise.

Generally speaking, times are always tough for small businesses. In order to survive with a small business, regardless or the economic times, it is essential that you surround yourself with smart people, and practice sound business management at all times. Be sure that if you are doing well now, you will continue to be successful in the future.

Back To MAKE YOUR BUSINESS SURVIVE # Part I

Readmore »»

MAKE YOUR BUSINESS SURVIVE # Part I

You may be in Mail Order, Direct Mail, or you may be a local merchant with 150 employees or more; whichever, however or whatever, you've got to know how to keep your business alive during economic recessions. Any time the cash flow in a business, large or small, starts to tighten up - the money management of that business has to be on the ball.

Some of the things you can do and should do, include protecting yourself from expenditures made on sudden impulse. We've all bought things or services we really didn't need, simply because we were in the mood, or perhaps due to the flamboyancy of the advertising, or even because of the persuasiveness of the sales person. Then we sort of "wake up" a couple of days later and find that we've committed business funds to hundreds of dollars for an item or service that's not really essential to the success of our own business.

If you're incorporated, you can eliminate these "impulse purchases" by including within your by-laws a clause that states: "all purchasing decisions over a certain amount are contingent upon approval by the board of directors." This will give you a chance to consider any "impulse purchases" a second time after you've had a chance to think about the need for your purchase.If you're business is a partnership, you can tell whoever it is that attempts to sell you something, that all purchase decisions are contingent upon the approval of a third party. In reality, the third party can be your partner, one of your department heads or even one of your suppliers.

If your business is a sole proprietorship, you don't have much to really worry about because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you really don't need it or can't afford it. Especially in times of emergency, be sure that you don't "short-change" yourself on professional services. Anytime you commit yourself and move full-speed ahead without fully investigating all the angles, and preparing yourself for all the contingencies that may arise, you're skating on thin ice. Regardless of the costs involved, it always pays off in the long run to seek out the advice or experienced professionals before embarking on a plan that could ruin you.

As an example, an experienced business consultant can fill you in on the 1244 stock or Sub-Chapter S advantages. A very simple process, but one with tremendous monetary benefits to businesses. The 1244 status encourages investors to put equity capital into your business because in the event of a loss, amounts tup to the entire sum of the investment can be written off in the current year. Without the "1244" classification, any losses would have to be spread over several years, and this of course, would severely lessen the attractiveness of your company's stock. Any business owner who has not filed as a 1244 corporation, has in effect, but himself off from 90-percent of his prospective investors.

Particularly when sales are down, you must be "hard-nosed" with people trying to sell youluxuries for your business. When your business is booming, you undoubtedly spend more time allowing different sales people to show you new models of equipment or a new line of better-looking supplies, but when your business is down, skip the entertaining frills and concentrate on the basics. Great care, however, must be taken to maintain courtesy and allow these sellers to consider you a "friend," and call back at another time.

Whoever maintains your company's books should reflect your way of thinking, and generate information according to your policies. Thus, you should hire an outside accountant or accounting firm to figure your return on your investment, as well as the turnover on your accounts receivable and your inventory. Such an audit or survey should focus in depth on any or every item within your financial statement that merits special attention. In this way, you'll probably uncover any potential financial problems before they arise.

Continue To MAKE YOUR BUSINESS SURVIVE # Part II

Readmore »»

EVALUATE HIGH-TECHNOLOGY STOCKS

HOW TO EVALUATE HIGH-TECHNOLOGY STOCKS
High technology is the last frontier in American business. Many of the new businesses revolve around some type of technology, whether it is direclty computer-related, communications-related or somehow tied in with the "Electronic Superhighway", whose arrival we all eagerly anticipate. Although tech stocks have declined sharply in during bear markets, they have proven to have outperform other stocks, re-bounding more sharply in subsequent recoveries.

There are three major advantages that point to small companies:
1.) They are generally free from government regulation because their earnings are often in a new field.
2.) The company stands to gain a lot of ground if the come up with a unique idea. The growing market will be theirs to dominate.
3.) The impact their earnings will have on their financial status will be considerable... therefore a success can increase their profitability greatly.

There are several rules to follow if you choose to be an investor in this high risk market. Firstly, do not be fooled by the size of the company. It is important to investigate the high-technology expertise of the firm and secure that it is a meaningful part of the firm's business. Secondly, it is vital that the company is serving a current social need in the marketplace. For example, cable was first intro-duced in the 1960's and interested investors long before it could draw subscibers.
Look for companies that are operating in the black.

Companies that offer teriffic scientific break-throughs but operate at a deficit are just too risky. It is also important that you ignore market indexes. Companies with technological superiority are not tied to a stock mar-ket environment over time. Lastly, keep current on all technological innovations. Buy trade magazines and read scientific papers and investment guides that deal with technology and technology-related fields.

Readmore »»

THE LURE OF EASY BANKRUPTCY

Here is a true story about bankruptcy, and the advantages it offers. A husband and wife team of practicing psychiatrists, with a joint income of $78,000 per annum, accumulate personal debts totaling $22,000, and also have outstanding a $33,000 mortgage on their com-fortable suburban New York home.

They are not in arears, nor even over their heads. They simply seek more discretionary spending power. Their solution to the problem? They file for bankruptcy and are able to immediately reduce their debt load to a mere 10 cents on the dollar, repayable on an extended schedule in very small amounts. An officer in one of their finance companies notes that they could refinance the mortgage or even sell the house. But you will see in a moment why that was not necessary.

Traditionally, personal bankruptcy has been a desperate last resort for those so deeply in debt and harried by creditors, that there really seemed to be no other solution. The typical profile included low-income, under- educated clerical workers or laborers, or perhaps transient non-homeowners. Common age groups were those who were in their twenties, or those over sixty five years of age. This is no longer the case. Today's profile includes people with good jobs, even families with two incomes. It is not surprising to find those with six-figure incomes declaring bankruptcy. The process comes no longer out of a dire necessity, but it is now a means by which people can rid themselves of debts that cramp their lifestyle.

The most common applicants for bankruptcy include recent college graduates who file in order to avoid paying back government-guaran-teed student loans. Their rationale? They feel society owed them an education. You will also find older, "keep up with the Joneses" types filing for bankruptcy. For suburban executives to Wall Street professionals, they are unwilling to live within their means. The passage of the Federal Bankruptcy Act of 1978 made the whole process much easier. This change significantly liberalized personal filing procedures in the name of consumer rights. Chapter 7 makes no reference at all to the debtor's income. It permits debtors to clear the slate by turning over all their assets except those specifically exempted to creditors. Among the exemptions: Up to $7,500.00 equity in the debtor's house (15,000 if both file); $4,000.00 in accrued dividends; $1,200.00 in automobile equity; $500.00 in jewelry; $200 per category of household items (including clothing, books, etc.) and more!

Chapter 13 requires that debtors show only a regular income to handle a reasonable three-year pay-back plan. The court's definition of reasonable happens to be as little as 1% to 10%, even when a payment of 50% could easily be managed.

Readmore »»

BIG PROFITS

ADVERTISING AD SHEETS = BIG PROFITS
Publishing and distributing a mail order ad sheet can be very profitable. They are simple and easy to produce, with most quick print shops able to handle the printing at fairly low cost. The important consideration is that you can use them to pull in advertising dollars for yourself, as a free advertising media for your own products, and as an exchange medium with which to get greater exposure for your own ads.

Before starting an ad sheet, you should plan it all out - decide on an interesting, informative title, choose a masthead, lay out your columns for size, determine if it is to be a simple 8 1/2 x 11 single sheet of paper or an 11 x 17 sheet folded in half. You'll also need to know your production cost for the number you intend to have printed, and the postage cost to mail them out. Most ad sheets start out as single sheets of paper, 8 1/2 x 11, printed on both sides. Usually, the front side is divided into three equal columns about 2 1/4 inches wide, with a 1/2 inch margin from the edge of the paper on both sides and top and bottom.

Assuming that the space occupied by your title, masthead and listing of rates for advertisers interested in placing an ad with you is two inches deep, this leaves you about 24 inches of advertising space to sell on the front side. Figuring a cost of $50 for 1,000 copies of such an ad sheet, printed both sides, and a third-class bulk-rate postage of $110, this means that your 24 inches of ad space will have to be sold at a rate of $6.25 each in order to break even. This means: You have to sell all of the ad space on the front of your ad sheet at $6.25 per ad - and then expect to make your profits from the sale of the back side of your ad sheet. Actually, it would be feasible to charge $7.00 per inch for the space on the front side, and carry your own full page ad on the back side. At any rate, don't box yourself into a loss situation where you can't afford to place your own ads in your ad sheet.

You get ads by making up an advertising solicitation sales letter and sending it out to as many mail order dealers as you can find. You can also run ads in other people's publications, inviting the readers to check with you regarding placement of an ad in your publication. And of course, you'll be wanting to work out some exchange advertising deals (whereby another publisher runs your ad in his publication, and you run his in exchange). From the experience of many, many publishers, this can be one of the most effective ways of getting your ads run, at low/no cost, and it is recognized to be successful in the field of Mail Order.

You probably won't be able to fill up all of your available ad space with paid ads until you are well established - but no problem - first you fill your ad space with paid ads, and then you fill in the empty space with ads of your own. Some beginning advertisers fill a part of their empty space with complimentary ads for other mail order operators, send them a copy of the issue in which the complimentary ad appears, and invite them to continue the ad on a "paid" basis from there. Many of them will appreciate the favor and send you a check or money order to continue running the ad.

If you undertake the publication of an ad sheet, be sure to consider the possibilities of sending out 100 to 1,000 copies of your ad sheet to other mail order operators to rubber stamp their names/addresses as co-publishers and mail out for you. Thus, if you had 50 other mail order operators sending out 100 copies each of your ad sheet, you'd be talking about a circulation of 5,000 copies plus the number of copies you mail out. If you can get this kind of program going, you'll quickly build your reputation as well as your circulation, and at the bottom line, your profits.

Some ad sheet publishers, once they've established themselves and are putting out an impressive publication, set up distributor networks. Generally, they run ads calling for distributor/dealers and asking for a $5 to $10 registration fee. In reply to the registration application, they send out a letter explaining that each distributor can buy at half price, so many copies of each issue of the ad sheet, rubber stamp their name on each copy, and send them out as their own. In return, the distributors usually get 50% of the incoming advertising orders, a half-price ad for themselves, and an opportunity to sell subscriptions.

The bottom line relative to becoming a successful ad sheet publisher has to do with keeping your production costs - printing and mailing - as low as possible, while putting out a quality product that other people in the mail order business will want to advertise in - while at the same time using it as an advertising/selling vehicle for your own products. My advice is that almost everyone involved in mail order selling should have some sort of ad sheet - if for no other reason than as a means to an end - an advertising vehicle for your own products, an extra income form advertising revenues, and as an exchange media with which to gain greater exposure for your own products in other people's publications. Once you've got an ad sheet, or any kind of publication set up and being seen by other mail order operators, you'll quickly gain stature and a certain amount of prestige.

As with any business, your ultimate success depends on your own feasibility studies, and your "sharp-pencil" planning completed before you order your first issue printed. Think about it, weigh the pro's & con's, then go with your decision.

Read to:
moving-profit
to-make-your-business-grow-faster
make-big-dollars-with-bumper-stickers
home-based-business
starting-business-from-home
learn yours money
115-ways-to-earn-money
how-to-sell-royalties

Readmore »»

Make Big Money In Real Estate

Real Estate is one of the oldest forms of investing known to man. Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it.This can happen in any part of the country and is not an exceptional case. As the population keeps growing in the U.S., land prices continue to raise and it means that Real Estate will continue to offer one of the best investment opportunities in the country. Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest.

One of the problem of Real Estate is his lack of liquidity. Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties. There is a difference between a land speculator and an investor. A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an
indefinite period of time.

If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act. Without realizing it, you already made a very successful investment in Real Estate if you bought your own home. Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home.

Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered:

* You must know something about architecture and remodeling and get and idea of how much it will cost to get the house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done.
* The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities.

It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc. Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at the time they sell you the land, so it is much more profitable for you to buy your own.

When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed. Prepare a list of all properties available in your area and think up the best future use of the properties. Learn to purchase land before there is a demand. To buy land well in advance is the only economical way at today's prices. Then hold the property until you can resale for large profits. Don't sell all your desirable properties and keep just lemons.

If you are willing to leave the cities, you should not have any trouble finding inexpensive land for sale. If you discover a tract of land appealing to you but not listed for sale, contact the Country Register's Office and he will tell you who is the owner. Get in touch with him and he could be willing to sell. As a rule purchasing tracts of land within thirty miles from a growing city is often a sound investment. Deal only with qualified realtors. Be careful of individuals who offer quick profits.

Before taking any action, study what has been written about the subject. Know why you should and should not buy. Stay conventional and don't buy white elephants. Look for hidden defects and make the property attractive before offering it for resale. Study local conditions and be sure it is practical. Constantly look for bargains and quality properties with exceptional features that will make the sale easier. Follow up on For Sale signs, make inquiries. When discouraging elements occur, minimize your losses by whatever means available. Don't throw away money on repairs for poorly located property or in an area of surplus rental units.

Before you attempt to sell, find out how the prospect can use the property profitably. Ask yourself if you would purchase it if you were in the prospect's shoes. Ask yourself if the future use will fit any of the many types of specific businesses. Can a hospital, a bank, an apartment complex, condominium or professional building be located on the property. Learn to analyze the pros and cons of a real estate problem. Break it down into its various elements. Know if the answers you come up with are satisfactory and practical. Try different approaches to the problem. You are necessary looking for the "top" or "bottom" of the market, or the current economic situation. You are looking for a variety of properties which have a higher value dependent on the use that can be established for them. There are always opportunities in Real Estate during good times and bad, but it is up to you to pick and choose only those very best deals, especially during times when it appears that Real Estate values and demand have reached their peak or in times when it is practically impossible for most anyone to get bank loans due to the tight money market or impossible interest rates.

Readmore »»