Category Archives: Strategy

Although outsourcing is one of the first actions an enterprise-size company might take to cut costs during a recession, according to a recent study by Warrillow, it’s just the opposite for SMBs. In fact, small businesses responded that they do not prefer to outsource during an economic downturn, but rather favor a sort of “batten down the hatches” strategy to have greater control over spending. But controlling expenses goes way beyond cutting the nice-to-haves, or what is considered superfluous during budget constraints. There are certain aspects of your company, which unless you’re planning on going out of business, have to be outsourced: Your payment processing. Whether it be your bank or a third party processor, as cash payments disappear, you need a payment processor that can take your customers payments (credit card, check, or other form) and turn them into cash. Which brings up the question: What are you paying to process your customers’ payments? Can you answer with certainty that you’re paying the lowest merchant account rates you could be? Take a look at the difference between paying 2.9% + $0.30 (PayPal’s rate for small business volume) vs. 2.28% + $0.24 (an alternative to PayPal’s pricing) on a month’s, or even year’s worth of credit card payments. It doesn’t take long for those extra few percentage points to add up. Merchant Account Rate (MOTO) Monthly Volume Average Transaction What You Pay in a Month … Continue reading…

The holiday season can either be your busiest or your slowest time of the year. Help prepare for this season by following these simple tips: Watch your cash flow: If the holidays are the busiest time for your business, then save money from your increased revenue for the slower months ahead. However, if the holidays are the slowest time for your business, then cut your expenses as much as you can and start a reserve when revenue is flowing again for next holiday season. Sell gift certificates and gift cards: Almost every business, from dentists to carpet cleaning, can sell gift cards during the holiday season for their services. If the holidays are slow for you, then offer gift cards/certificates at a discount, allowing you to take advantage of holiday buying revenue, and the customer can use it later in the year. Take advantage of “down” time: Host a networking party, update your website, submit an article to a local publication. Every business has its “down” time and it’s a great time to get caught up on tasks that get pushed to the back burner during the busy months. Attend holiday parties: Holiday parties are an excellent way to make new contacts and reach potential clients. Attend as many parties as you can–and don’t forget to bring along a handful of business cards. Send holiday cards and thank you’s: An important part of the holidays … Continue reading…