Basement Riches by

Reaching at the Top

By MA

Basement Riches by

Copyright MA

All rights reserved with the author. No part of this publication may be reproduced in any form, or stored by any electronic or mechanical means including retrieval systems sans prior from the author. Reviewer may use or quote excerpts in books with proper references to the book.

Edition: First Genre: Business Guide Author: Published: March 3, 2013

Basement Riches by

Disclaimer

Basement Riches comprises of content from author's real-time experience, reading, research and interviews with entrepreneurs. The author has made every effort in composing and creating the material for this ebook. The information contained in this ebook is strictly for the use of intended purposes only. Any other use then listed or thought may lead to harm for which the author will not be held responsible.

The author disclaims any warranties [expressed or implied], merchantability, or suitability with any particular purpose or objective beyond the one expressed here. The author shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is other than intended one.

Basement Riches by

Acknowledgements I am greatly indebted to ----------------------- at Alibaba, who has helped on numerous occasions on sourcing the right products, Staff at ------------ Resources for keeping the business communication open at all times and Clickbank for making this ebook available to millions.

Basement Riches by

I dedicate this entire book to my wife Nav for her unflinching faith in me and my beautiful daughter Live, who is a source of great inspiration and love and my two outrageously cute dogs Kiki and Smoky.

Basement Riches by

Introduction Why This Book!

Nowadays, there is a great market for everything and anything if you can sell it well. People are exploring possibilities and coming up with innovative ideas to make lives easier and comfortable. This trend has in turn given a boost to the concept or entrepreneurship and the drive to join the business world. Now more and more people are willing to take the risk to translate their passions into a means of generating profit and this spirit is doing wonders for expanding the business world; however, it is necessary to educate oneself about the nitty-gritties of the business world before plunging into it, since its a vicious and competitive arena. If you want to start your very own business, this book has everything that you need to get you on your feet and dive into the business world. From rudimentary concepts related to capital to advanced concepts regarding the revolutionary internet marketing, you can find everything in this book. If you are a layman when it comes to business and are looking for something that is easy to understand yet comprehensive, this book is definitely, what you are looking for. It is loaded with tips, examples, and strategies from business experts, which are aimed at elaborating how things work in the market. I myself am an entrepreneur and I faced a lot of problems while I was setting up my business. There were a lot of things that I didnt know and I learned them the hard way; therefore this book is aimed at guiding all the

Basement Riches by young and inexperienced aspiring entrepreneurs towards the right path. I believe that if I had a book such as this one to guide me along the way, I wouldve gotten off a very strong start and this is exactly what I want to deliver to my readers. Experience is the mother of all teachers and I want to use my experience and business knowledge to give you a taste of how things work in the business sphere. If youve purchased this book then you are one step closer to fulfilling your business dreams. Next up, you should dive into this book and wrap your head around all the imperative concepts which are shared in the same. If you implement your business ideas the way they have been elaborated in this book, you will gain a strong start which will propel your business towards success. The sooner you start off with this task at hand, the better because your dream is waiting for you to take it by force and realize it as soon as possible. This book means a lot to me, since it entails my entrepreneurial journey and I want to thank all of you for purchasing it. I believe that if this book can play some role in making you realize your entrepreneurial dreams, it will serve its purpose. Micky M.J February 28, 2013

Basement Riches by

Chapter-1 I.

Capital Capital Vendor Financing Why Capital is Required How to Start with Minimum Capital

11 12 14 16 18 28 28 30 30 31

II. III. IV. Chapter-2 I. II. III. IV. V.

Selecting Your Product, Ideas for Your Product Line Coming Up With a New Product or Service Prime Reasons Why New Products Fail Reasons Why Some New Products Succeed Getting Ready For The Business World

Some Wise Words By Successful Entrepreneurs On The Same Subject 32 Developing Your Product Line Choice of Products Conduct Informal Customer Research Believe In Your Ability To Generate New Ideas The More You Know, The More Ideas Youll Have Get New Ideas Through Brainstorming Sessions And Competition Analysis Editing Ideas After the Session 34 38 42 43 43

VI. VII. VIII. IX. X. XI.

45 46

XII. XIII.

Come Up With Ideas By Attempting To Improve Products Of Your Competitors 47 Choose The Most Viable New Product Idea 48

XIV.

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XV. XVI. XVII. XVIII. XIX. Use Your Marketing Strategies To Screen Ideas Screen Ideas Against Sales And Profitability Minimums 49 50

Involve Customer Input In Your Idea Finalization Process 50 Testing During The Product Development Cycle 50

Basic Must Dos During The Development Of The Product Prototype 51 The importance of testing the advertisement strategy, packaging and price of your new product 52 The Mechanics Of Service Companies Evaluate The Success Of Your New Product Over Some Time 53 55 55 57 Alibaba, Product Decision 60 62 63 64 53

XX.

XXI. XXII.

XXIII. XXIV. XXV.

Private Labeling Idea The Mechanics Of Private Labeling Product Having Huge Market

Chapter-3 Products, Choice, Using Google, and Labels Search for Private Label Cosmetics I. II. III. IV. V. VI. VII. VIII. IX. X. Staring A Cosmetics Business Product Line of Cosmetics

Costs And Profits Associated With The Cosmetic Industry Beauty Products to Start Business With Some Important Points Finding Suppliers Searching for Google Using alibaba.com Important Guidelines For Product Listing 64 66 68 69 69 71

Tools For Duplicate Products: What Are Duplicate Products? 72

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XI. XII. XIII. XIV. XV. Using The Management Tool Tools For Miscategorized Products Correcting Miscategorized Products Frequently Asked Questions 72 77 77 81

Alibaba.com Connects Small Businesses with Global Trade Partners 84 Due Diligence is an Absolute Must 85

XVI. XVII. XVIII.

Tips for Secure Payments, Escrow, Shipping and Insurance 86 Finding Products: Your Preferences, Pricing, Order Quantity, Shipping and Sellers Reputation on alibaba 87 Contact Suppliers Trade With Confidence Getting Your Labels Designed From Vendors Tips & Warnings 90 92 93 95 96 96 97 102 105

XIX. XX. XXI. XXII.

Chapter-4 Setting Up Business Website I. II. III. IV. V. VI. VII. VIII. IX. X. XI. The Pros Of Having A Website Tips on Choosing a Good Domain Name How to Register Your Own Domain Name

Important Precautions to Take When Buying a Domain Name WordPress Installation Getting 1800 for just $2.99 from kall8 Good Features Of The Kall8 Phone Service Trademark, Copyrights and Policies Copyrighting Your Business Logo 106 111 112 114 116

Determine Who Owns The Copyright To Your Business Logo Difference Between Copyrights And Trademarks 118

117

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Basement Riches by
XII. XIII. XIV.
Chapter-5

Setting up Virtual Office and its Importance Benefits Of A Virtual Office Setting up a Virtual Office
Image, Credits, Loans, Tax Issues for Your Home Business I.

119 119 120

121

Projecting Your Image Ways of Creating Positive Image of Your Business Tips About Small Business Credit Different Kinds of Small Business Credit Using Image to Access Credit and Loans Taxes Deductions on Home Business

121 122 127 127 130 137

144

II. III. IV. V. VI.

Chapter-6

Marketing Your Product

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV.

Defining Internet Marketing Goals of Internet Marketing Essential Components of Internet Marketing Home Based Businesses And Internet Marketing

144 145 145 147

Which Internet Marketing Strategies Should You Go For? 147 Costs Associated With Internet Marketing Examining And Tracking Results The Importance of Flexibility Using Google adwords The Mechanics 0f PPC Advertising Using Google Adwords Learning about Google AdWords Using Social Media Using Facebook 148 149 149 150 150 151 151 151 155

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Basement Riches by
XV. XVI. XVII. XVIII. XIX. XX. XXI. XXII. XXIII. XXIV. Facebook Pages Facebook Groups Using Video or Youtube Using Local Trade Shows to Market Your Product Getting Responses and Analyzing Market Different Kinds Of Market Research Some Common Mistakes Made In This Process Product Psychoanalysis for Boosting Sale The Worksheet Benefits of Market Analysis 156 157 157 159 162 162 164 165 165 168
169

Chapter-7 Tips for Successful Sale

I. II. III. IV. V.

Choice of Product Verifying and Checking Suppliers Name Your Product Pricing Issue Conclusion

169 170 172 173 182

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Basement Riches by

Chapter-1 Capital
I-Capital In the world of business and economy, the term capital, also referred to as capital goods or real capital, means those items, which have extensive value. It is also used to denote the
Capital isn't that important in business. Experience isn't that important. You can get both of these things. What is important is ideas. Harvey S. Firestone

magnitude of wealth that a certain person is controlling. These valuable goods are obtained or bought with money. In accounting and finance terms, capital generally means fiscal wealth, which is used to either start or maintain a certain

business endeavor. If you wish to indulge in business or prospective investments, you should have three kinds of financial capital on your fingertips. The knowledge of these three will help you take better decisions and make investments that are more rewarding. a. DebtCapital In debt capital, a third party invests the capital and an understanding is developed between the financing party and the business owner that the

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Basement Riches by money will be paid back at a set future date. Until this debt is paid, the investing party, which is usually a bank or bondholders, receives a certain amount of interest as compensation. Interest maybe thought of as the rent that one has to pay to expand his/her business; hence it is also commonly referred to as cost of capital. For those individuals or businesses that do not have readily available capital, this is a very good option because it is easy to obtain and understand. The profit earned by the business owner is the difference between the interest paid and the return obtained from the capital investment. So for instance if you take a debt of $200,000, earn 15% return on capital, and pay 10% interest, you get a profit of 5% i.e. $10,000. b. EquityCapital The equity capital, also referred to as book value or net worth, is the figure that represents the assets with deducted liabilities. It is a very commonly used term and there are certain businesses, which are wholly financed with this concept. Many people favor it because it comes with a safety landing, since the investor cannot go bankrupt. However, this form of investment is extremely costly and it requires a lot of work to make an enterprise flourish. Microsoft is an example of a company based on equity capital structure; it generates returns that are high enough to maintain the business on this concept. c. SpecialtyCapital Specialty Capital is known as the gold standard since it is one of those rare capital resources, which have almost nil economic cost. Concepts

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Basement Riches by such as vendor financing (negative cash conversion cycle), insurance float, and others are examples of this sort of capital. II-VendorFinancing(NegativeCashConversion) I will elaborate on this concept using an example. Lets assume that you own a store and are planning to expand it. Upon delving in the matter, youve realized that you need a capital of $2 million to open up a new store. Now, most of this capital will be required to buy new items for your inventory and filling your shelves with goods. The sale of those goods is entirely dependent upon the number of customers that come to your store; until or unless someone buys your goods, your capital will remain with you in the form of your inventory. A very feasible situation would be to get the payment from your customers before paying for the goods. In this manner, not only will you cut down losses but also include many more items in your inventory that the limit allowed by your capital. AutoZone is a good and flourishing example of this concept. The business line has persuaded different vendors and dealers to put their products in the AutoZone stores and retain the ownership of the same until they are bought by a customer. At the very instant when a consumer buys a certain product, AutoZone buys the same from the vendor and sells it. This strategy has enabled AutoZone to expand very far and wide and give better returns to the vendors through share purchases, as they dont have to invest millions of dollars in stocking up their inventory with goods. Other than that, earlier payments by customers and good vendor terms allow the involvement of more profit in the business which in turn allows far greater returns that equity or debt capital.

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Basement Riches by This kind of fiscal plan may be quantified by analyzing the ratio of inventories to the accounts which have to be paid; the higher the ratio, the better the situation. The cash conversion cycle should be analyzed as well and the more negative the cycle, the better your position is. The Dell Corporation is a legendary example of this concept. It demonstrated this negative cash conversion cycle for around two to three weeks and the same enabled it to sky rocket from a dorm room to one of the biggest IT conglomerates; and this was achieved with minimum or nil debt and at a very fast pace. a. InsuranceFloat Float is basically the money that an investing company holds but does not own due to which it has all the benefits of debt capital but none of the disadvantages. Insurance companies are a very good example of companies which you can contact for this sort of financing. They have financial investments from clients that they can easily invest in businesses before paying them back to the clients. In such scenarios, the important point of consideration is the amount of money that a certain business needs to generate money through float. In some favorable cases, this maybe negative i.e. you might actually be paid to invest money from other resources and earn profit on the same. Floats are a very favorable situation but they are very difficult to generate. b. SweatEquity Sweat Equity is yet another form of capital in which the owner makes up for the lack of capital and hence work force by putting in long hours into a business at a low pay scale. Although this form of investment isnt fiscal or

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Basement Riches by tangible, it is still considered as a form of capital since it covers up the cost of work force that wouldve been employed if the owner had not put in the additional hours of work. The owner does not get return for the additional work in the form of additional pay; rather the aim of sweat equity is to enable the business to grow at a fast rate and this boost in business growth compensates for the additional work put in by the business owner. III-WhyCapitalIsRequired In todays fast paced world, businesses and growing more than ever in both numbers and magnitude. The diverse investment options available in todays world have enabled people to open their own businesses and making their dreams come true. Only a few decades ago, only those people who had a large source of capital could consider the possibility of opening a business but fortunately things have improved for the better now and if you have a good business idea, you can implement it by using various financing option available today. Also, in the past a lot of risk was associated with business and losing a business meant losing everything for a person. However, the variety of options available today have greatly decreased the risk factor and people can now push their businesses forward through both good and bad times. The hero behind this entire story is working finance capital. Working capital financing is a great idea and many big corporations all around the globe are currently using it. Its mechanics allows a company to protect itself during unexpected falls and revise or expand a business through new strategies. It is a very efficient concept that equips a business with stability, strength and flexibility. This is the main reason why

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Basement Riches by businesses these days are choosing this option for financing and strengthening their businesses. Small firms and new businesses usually face severe problems in the facing of sustaining their operations because of lack of capital. Due to the same, they cannot purchase relevant raw material or stock their inventories. As a result, they are unable to sell enough merchandise to score the profit needed to make this situation better. This is a very grave situation and it may even lead to the collapse of a business. With a good capital loan, you can ensure that your business has a strong start so that you are able to sustain it with less effort. Hence, the presence or availability of capital plays a huge role in making a business succeed or fail. Taking up the right capital options at the right time can make a whole lot of difference to your business story. There are a lot of flexible plans available and if you can easily avail them to start off with a strong start in the business world. Most people who do not have a business background, have little or no idea about this entire capital concept. Hence, there are a limited number of laymen who actually know what working capital really is. According to the dictionary definition, it is simply the difference between current assets and liabilities. It is also known as net working capital and it symbolizes the stability of a certain business. It refers to the ability of a business or organization to meet its due financial obligations as they come into the picture. Hence, a certain business or companys working capital is a good reflection of its scope and ability to progress. Getting a capital loan on your side and starting strong can help you a great deal in realizing your aims.

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Basement Riches by Most loan lending parties require businesses to give some sort of insurance in order to secure a loan. However, recently a new setup of such parties has emerged that operate on other principles and do not require any fiscal or tangible security on part of the loan receiver. There a lot of options that you can try out in the financial world today and if you are planning on becoming an entrepreneur, there is no better time to start off with your very own business. With the concept and help of working capital on your side, you will be able to prepare yourself and your business for all sorts of unexpected scenarios. You will be able to pull through for your customers through various circumstances which will give your business a whole new air of integrity. You will be able to grow and expand your business while trying out various new strategies without the fear of losing everything that you own. IV-HowtoStartwithMinimumCapital Not all of us are born billionaires but most of us still aspire to start our own entrepreneurial ventures. Youve probably heard of the term bootstrapping; it refers to the procedure of starting your own business with limited or no external funding. Many famous business giants started off their businesses on the same concept. These include Pierre Omidyar from eBay, Richard Branson of Virgin, Michael Dell of Dell Computers and Bill Gates from Microsoft! They used different tactics to give their businesses a strong start and in this section I have divided these tactics into seven different categories. You will need to pick your own combination from these tactics and use them in conjunction to achieve best results. These are as follows:

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Basement Riches by a. BreakingtheGoldenHandcuffs Youll be surprised to know that its not lack of ideas that stops people from going for their own businesses; its the lack of courage to let go of the golden yet monotonous life that they are used to. People are usually hesitant to let go off their pension fund or sell off their new car to start off and invest in their own business. You have to realize the fact that starting a business requires making sacrifices. If you dont think that you can do it then make peace with your current lifestyle. If you can, then set a deadline for yourself and start saving up for your future business. Dont invest in a new condo; rather keep that money aside for your business. b. BelieveInYourselfAndYourBusiness Please remember the fact if you dont believe in your idea and your ability to succeed in your business aims, no one else will. You should be willing to make all the necessary fiscal sacrifices for your business and should be able to see yourself pulling off your dream idea. This belief will in turn motivate those who are close to you to help you in your time of need. Many successful businesses were started off in this very manner.

c. DoEverythingYourself Most entrepreneurs that I have met like to indulge in each and every part of their upcoming or established ventures. Whether it is accounting, copyrighting, marketing, programming, or anything else, entrepreneurs are always willing to go the extra mile to learn new things and do everything themselves. This in turn gives them better control over their business

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Basement Riches by endeavor. Moreover, this will also help you save a lot of money since you will have to hire less manpower for performing the job at hand. Once your business is on the rise and you are earning millions of dollars, you will be able to hire people for different departments of your company. However, until then, you should be willing to put in a lot of effort and time into each and every department of your entrepreneurial venture. d. EngageYourselfInASideJobWhileDevelopingYourBusiness This is a very good idea and it will enable you to generate a steady stream of income while you are on your mission of starting off your own business. This extra cash will help you acquire all the basic essentials that you need to take your business off the ground. You can use the same to buy all the relevant raw materials of inventory that you need to start rolling. There are many entrepreneurs who have used this strategy to get their businesses off their feet. For example, Nkhensani Manganyi who is the owner of the brand Stoned Cherries had always dreamed of selling clothes that she had designed from her very own retail outlet. However, at that time she didnt have enough cash to start off her own store so as an alternative she started designing and selling her clothes through other direct channels. Relative to the first option, this option turned out to be very cheap and once her brand caught the public eye, she was able to set the base for her brand. Once she had succeeded in generating enough capital for sustaining her business, she opened up her own retail store to realize her lifelong dream. The author of the book The Art of the Start, Guy Kawasaki, has used a very effective example in the same to prove this concept. He has taken the hypothetical case of a group of programmers who are working as

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Basement Riches by consultants. Now while the consultants are working, they are able to generate a steady stream of income through regular salaries. This capital will allow them to make their own software side by side. While still engaged with the consultancy firm, they can check the reception of their product by testing it in their target market. Using the paychecks from their jobs, they can further tune the product in line with customer requirements until they are able to get a circle of dedicated customers of their side. At this point, their product is ready for going out into the world. When this goal is achieved, the programmers will be able to sell of their product as an independent tool and generate a steady stream of profits. Once this is done and dealt with, they can leave their jobs and get used to the new lavish lifestyle. e. KeepTheEyeOnTheEndGoal Sticking to a certain job is a very effective way to generate the capital necessary for opening and sustaining a business. However, many of us develop a dependence on the job and indulge ourselves completely and madly in the same. This is turn prevents us from following and implementing our true dream of developing our very own business idea. If you dont keep an eye on what precisely you want from life, you will develop a sort of satisfaction with your current life style. This will in turn prevent you from putting in your time and effort into your dream product. This is a very easy way to lose track of what you want from life and in order to avoid the same, you should keep telling yourself what your ultimate goal is.

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Basement Riches by Try to allocate a set amount of time to your entrepreneurial idea and remember to develop it side by side. If you tag along with this approach, you will be able to realize your dreams. f. StartOffAsSoonAsPossible Another mistake that many wannabe entrepreneurs do is that they wait to collect thousands of dollars in their life before starting off with their own business. Remember that no matter how brilliant your idea is, if it is on paper its useless. You should start developing and promoting your product right away. The key to succeeding in the business world is to popularize your product as much as possible and perfecting it through constant feedback. Therefore you should never expect t make the perfect product the first time round. Rather, it is important to try the test version in the market before launching it in full throttle. In order to practice this, you will need to start developing your product right now. Similarly, too much planning is usually a bane as well since it leads to over analysis. This is turn prevents the aspiring entrepreneur from formulating and launching his or her product since he or she is never satisfied with the theoretical science behind your business venture.

g. LaunchYourProductBeforeTesting Most of us want our product to be picture perfect before launching it. However, if you involve yourself in such nitty-gritties, you will never be able to achieve your desired result and will never get around to introducing your

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Basement Riches by product in the market. Most successful business corporations, such as Microsoft, release the beta versions of their products and then perfect the same using valuable feedback from the customers. If your business is concerned with products which may potentially harm the users then its an altogether different story. Otherwise, people are not going to die if a bug is discovered in an online messenger! Heres a simple trick to determine whether you should launch your product or not. Ask yourself if you will let your loved ones use the same and if your answer is yes then you should launch it right away. h. Sell(upfront) If you think that your product will be able to capture the market once it is released but are short on the initial investment, you can use the option of sales before product development to get started. Youre probably wondering how this may be achieved. Ill demonstrate this strategy with an example. Suppose that you plan on launching a series of cook books and you know that there are a lot of people who will buy your books once you launch them in the market. However, you do not have enough capital to produce the first set of copies to launch in the market. In such a case, you can contact different advertisers and sell them advertisement space in your future cook books. This will enable you to acquire the necessary capital before product development. You can then use this capital to design, develop and launch your cook books in the market. Once the ball starts rolling, you will be able to thrive on your own in no time. In order to pull this off, you need to believe in your product and have the relevant marketing and selling skills to convince third parties to invest in your product.

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Basement Riches by Dell computers has developed a very brilliant scheme using this strategy. They let their customers design their own PCs online using their website and ask for advance payment for the same. This way the customers actually pay them before the development of the product. This is an extremely profitable strategy since the losses associated with the same are nil as the customer base has already been established. It has given the company a lot of cash flow perks and little of no inventory consisting of finished merchandise. i. MakeUseofSuppliers Suppliers are those parties who give you a necessary product or service that you need to formulate your own product. In most businesses, there is almost always a supplier, or multiple suppliers, involved. So for instance if you are planning on opening a caf, you suppliers are those parties providing you the raw food stuff and the cutlery. Similarly if you are launching a website, your supplier could be the party selling you server space. Try to find a supplier who is willing to negotiate terms with you. Go for those suppliers who are willing to let you pay them a month or two after they have delivered the product to you. This is no easy task and you need very good convincing skills to pull this off. However, it isnt impossible and if you manage to pull this off, you will be able to start of your business without requiring a lot of capital. You can give incentives to your suppliers to convince them to agree to your terms. For instance, you can give them advertisement space; or you can let them keep a counter of their own in your shop. Incentives such as these will give them a feeling that they are getting more out of this deal than

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Basement Riches by merely money and this is precisely the kind of impression you want to leave on them j. IndulgeInSwappingAndSharing These are perhaps the most productive and logical yet overlooked strategies to start with boot strapping. Many resources that you require to start off with your business may be shared. For instance, you wont need a printing room, or board room, or delivery van all the time. A clever thing that you can try is link up with other small businesses and make the most out of these shared resources. This approach will not only cut down your costs, but also enable the concerned parties to use the resources in question to their maximum potential. For example, if you need to deliver your products only once a week, your delivery van will stay idle for six days and only be in use for one day. If you link up with other businesses, you will be able to utilize the same to its fullest potential while cutting down your costs. k. Bartering Bartering is perhaps one of the oldest techniques used for sustaining businesses. Since a very long time, people have been bartering their products in exchange for other products. For example, in the old days, farmers used to exchange their vegetable produce in exchange of dairy products. Now you can use the same technique to start off with your business. You can contact other businesses and offer your services in exchange for products or services which will help you get off your feet. Techniques such as these cut down the capital required to start off a business since the fiscal element is reduced from the overall equation. For example, if you are planning on opening a consultancy, you can offer your

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Basement Riches by services to the party that is responsible for providing you your office equipment. There are a lot of options out there in this respect. You just have to know the exact potential of your product and what it can do for others. l. Cash If you are bootstrapping your business, then a very wise approach is to aim for managing cash flows at first instead of profits. Most businesses that fail dont go down the drain because they dont generate profits; the main problem is that they run out of cash. They dont have any cash left to pay off all the concerned parties such as the employees, suppliers and creditors. Hence, it is pertinent to efficiently manage cash flows above anything else. Start off with as much capital as you can handle to pay off. Dont put all your eggs in one basket and expect everything to fall into place. If you start off with the minimum amount of capital, you will be able to pay off your debts and tune your product in accordance with the market taste. Although there are a lot of options that you can go for when it comes to starting a business, remember to be smart about any capital that you take to invest in your business.

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Basement Riches by

Chapter-2 Selecting Your Product Ideas For Your Product Line

A lot of companies have chosen to downsize, and maybe that was the right thing for them.

We chose a different
path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.

Steve Jobs I-Coming Up With A New Product Or Service If you are planning on launching a new service or product, your decision should be backed up by one of the following reasons:

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Basement Riches by It should be based on customer demand and interest The demand placed should be enough to lift the company and boost profits. Hence, when it comes to business its more important to determine what exactly the customer wants rather than what the business owner is interested in selling. If you want to see whether your idea is backed up by these reasons or not, you should conduct thorough research regarding the same. The more research you conduct, the more informed your decision will be and the more risk you will be taking with your new prospective product or service. However, the amount and depth of research conducted is proportional to the cost of the product or service as well. Hence, the depth of research should be dependent upon the kind of product that you are intending to launch and the risk factor associated with it. For example, if you are planning on introducing a new item in your caf then you probably dont have to carry out a great deal of research to realize your idea. If it doesnt work out, then you can simply remove it off the menu card again. However, if you are planning on introducing a new phone in the market then you will have to invest a great deal in the research part since you wont be making just one product; you will have to launch an entire batch and if it doesnt work out then you will suffer a heavy fiscal loss.

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II-Prime Reasons Why New Products Fail If you analyze the market closely, you will find out that many new products that are launched in the market fail to create an impact. Here is a list of reasons why this happens: i. The prospective market was either overestimated or not studied thoroughly enough. ii. The product which is launched is similar to already existing products in the market. iii. The development of the product was more costly than the budget restrictions. iv. The new product was not positioned in the right way or in the relevant market. v. vi. vii. It was considered too expensive by the customers. It wasnt designed as per customer expectations. The competitors were able to introduce better versions of the same product in the market. III-Reasons Why Some New Products Succeed Among the new failed products, there are some cases of successful new products as well. The reasons why some products succeed while others fail are as follows:

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Basement Riches by i. The product is backed up by thorough research. The market of the product is well analyzed beforehand and all the pros and cons are weighed objectively before launching the product is the market. ii. The product is original and has an edge over other products launched b competitors. iii. The product is a good amalgamation of the latest technology and customer demands. iv. The product was launched in the market after going through all the necessary stages. The customer demands were initially determined and the then the product was designed in accordance with the same. Tests were then performed to determine if the product would be successful in the prospective customer circle or not. All the necessary cost analysis, sustainability issues and resources required were addressed to before taking a plunge into the customer market. IV-Getting Ready For The Business World If you pay close attention, you will realize that there is not much difference between the process of starting a new business and launching a new product. Both these ventures require utmost determination, belief and passion on part of the owner; both the processes involve the much feared risk factor and if the owner isnt well prepared to go into the market, both can turn the world upside down for the owner. So if you are set on the idea of launching your own business, be prepared for the fact that you will have to face challenges every step of the way and you will have to prepare yourself thoroughly in order to pull through them. Moreover, your decision to start your own business should not be an emotional one; if you want to go for this idea simply because you are unsatisfied with your current job or

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Basement Riches by are hopeful that you will end of making billions of dollars, then you should let go of the idea. You should be completely convinced that the idea and product that you are going to launch is a plausible one and should weigh all the pros and cons objectively before reaching your final decision. World Banks IFC released a report in 2004 titled Doing Business in 2004. In the same, it was discussed that it is easier for a business to succeed in a country that has the following five advantages: i. Lesser number of licenses, rules and regulations to register a business and make its activities legal. ii. Flexibility regarding employment provision so that you may hire and fire employees more easily. iii. iv. v. Provision to draw up and establish legal contracts. Provisions for borrowing money and getting credit with relative ease. Lesser number steps required to close a business or declare it bankrupt so that a company may get rid of a failed business idea more easily. If you are planning on opening your business in a country that is devoid of one or more of these factors then you should prepare yourself for handling this entire matter effectively beforehand. You should do your homework and keep your head where it belongs before taking a plunge into the business world. Consider all your options and analyze the feasibility of each option thoroughly before settling down for one.

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Basement Riches by V-Some Wise Words By Successful Entrepreneurs On The Same Subject i. Dont try to jump into a completely new venture before preparing yourself for it beforehand. You should prepare yourself for handling all kinds of work if you want to go for an entrepreneurial venture. So for instance, if you are a programmer and love coding but want to start your own business as well, be prepared for the fact that you will be dealing with a lot of other spheres as well other than coding. From finances to employees, you will have to address everything. ii. It is fun to get paid for something you love doing. For instance, you probably enjoy selling warm cookies that you loved making or designing a website for a friend. However, if you want to convert your passion into a business venture, you will first have to study and determine if there is a market available for the same or not. The target market should be big enough to generate profits and sustain your business. iii. Before diving right in, do your homework and foresee all the challenges that you can possibly face in your journey of establishing your own business. Conduct thorough research and study case studies in detail to prepare yourself as much as possible. iv. Many people make the mistake of leaving a perfectly good job for trekking on the entrepreneurial road and regretting it later. Until or unless you have a set plan in mind and have all the essentials to start off with the business, you shouldnt leave your job. Leave your job only when you cannot possibly hand both the things at the same time.

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Basement Riches by This way you will have a steady source of income to sustain your expenses and business. v. Exercise caution but if you have a very good idea and are all prepared to jump into the business world, act quickly. If you think too much and concentrate on all the negatives, you will never get anywhere. vi. Whatever your idea and business plan is, remember that this is a commitment that requires you to dedicate all your efforts towards your new venture. VI-Developing Your Product Line As beginners in the business world, many people make the mistake of tapping into multiple ideas and mediums at the same time. If you want to be successful, you should have a variety of products in your product line, available in a variety of sizes and prices, but there should be some sort of connection between all these products. Do not put completely unrelated products on your shelves because such an approach will not enable you to develop expertise in one department. For instance, most successful clothing retail stores expand their businesses by introducing accessories such as hand bags, shoes, etc. in their product line. They dont indulge in something completely different such as electronic items or toys for expanding their business. This doesnt mean that you will have to limit yourself to just one craft or interest; in fact there will be a variety of crafts and items that you will be able to indulge in. In the beginning, most entrepreneurs go for a variety of products in order to divulge into multiple markets. However, very soon they

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Basement Riches by are able to establish the importance of specialization and quality. Hence, they usually go in one direction from this point which is determined by customer demand and interest. It is very important to pay attention to what your customers want before deciding on the items of your product line. You love and passion for something isnt going to pay the bills and keep the business rolling; its the sales which will determine the course of your entrepreneurial venture. A lot of entrepreneurs have to make peace with what the customers want in their products and this is the key to their success. Here is a list of things that you should consider before finalizing your product line: i. Concentrate On Categories While thinking about the different items to include in your product line, concentrate on the categories. Different categories that you can concentrate on include decorations ornaments, bath items, clothing, gift items, toys, etc. You can also concentrate on craft categories as well such as painting, sculpting, clay, etc. ii. Pay Heed To What Your Customers Have To Say The customer is always right; this is because your customers are the people who are going to use your product ultimately. You should therefore try to incorporate their feedback in your product line in order to tune it towards maximum profitability. In fact, sometimes your

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Basement Riches by customers can give you extremely valuable and original suggestions that you can use to make your product stand out among the rest. iii. Stay Up To Date With What Is Popular And What Is Not Your product line should always be in tune with the latest trends. Try to always incorporate the new age element in your products and always be on the lookout for variables such as colors, designs, accessories, etc. This will help you stay up to date with the recent trends in your line of business. iv. Analyze Your Profit Potential While developing your new product, keep your eyes of the profit generating potential of the same. Carefully consider all the costs associated with its development such as raw materials, designing, packaging, delivery, etc while finalizing the price of the product. Keep a margin of profit as well and see how the customers react to the price that you have set for the item. If theyre good with it then you can include the item in your product line. Also, please ensure that you are able to produce enough items to satisfy the demands of your market. v. Deal With Multiple Suppliers Whenever you indulge in a business endeavor, remember to include more than one supplier in your supply chain in order to ensure that you have someone to fall back to if your primary supplier goes out of business or is unable to meet the placed demands. If you cant buy

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Basement Riches by your supplies at wholesale, keep a lookout for sale periods and stock up your inventory during such times in order to lower the cost of your product as much as possible. While considering suppliers, try to choose someone located close to your business hub in order to cut down the transportation costs. vi. Give Unique Names To Your Products Giving a name to a product attaches a sense of originality and uniqueness with it. If you are trying to introduce a new product in the market, give it a nice and catchy name so that it stays in the minds of your prospective customers. Try to spice things up and attach a humorous or catchy phrase with the name to make it more attractive. vii. Keep A Watch On The Legal Issues Before launching a new product, always consider the legal aspect of things to make sure that you dont get into trouble. For example, if you want to introduce a limited edition product, you should check the laws of your state first. Many states now have strict warranty and disclosure requirements associated with limited edition products and you will have to satisfy these, if they apply to you. Similarly, the idea that you are trying to implement might be copyrighted already. Hence, it is always necessary to ensure that you arent ruffling any legal feathers with the launch of your new product.

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Basement Riches by

viii.

Buy Copyrights For Your Product If you think that your idea and product might get copied which may in turn affect your sales, it is advisable to get copyrights for the same. Get your hands on the copyright form that applies to you, fill it out, and register your ideas and product details with the Copyright office to ensure that your creativity is protected. You can get all the information that you need at www.loc.gov/copyright.

VII-Choice of Products Product development is an extremely important process and in order to make sure that your product delivers the expected results, you will have to pay attention to each and every stage of product development from the brain storing session to the development of the final product. If you are planning on introducing a new product, it can fall into one of the following categories:
i. ii. iii. iv.

Products that are meant for an altogether new market Extensions of already existing products Improved versions of products Repositioned products.

Whether you are the owner of a big business or a small one, if you want to launch a new product the first thing that you should be equipped with is a novel idea. Take your existing products and see if there are any ways in which you can reposition or improve them to take the market by storm.

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Basement Riches by Here are a couple of techniques that you can use to come up with new idea regarding your line of products: i. Screen your products from time to time and always compare them with similar products launched by your competitors to see where you stand. While doing so, keep your eye on ways in which you can improve the current attributes of your products or combine different products to come up with something phenomenal. ii. Anticipate the current needs of your customers which are not being catered to by your product and similar products created by your competitors iii. Hold productive brainstorming sessions

a. Benchmarking Your Current Product Line In Tune With Customer Demands Sometimes factors such as time constraints, lack of resources and awareness prevents new businesses from reviewing their current products and tuning them in accordance with customer demands. As a bare minimum measure, these companies should at least attempt at comparing their products with their direct and indirect competitors to get a better idea of where they stand in the market. However, this shouldnt be the end of it. In order to succeed, you will have to cater to a lot of other things as well. b. Cost-Effective Methods of Bench-Marking Your Product Line Now that you know how important benchmarking is, it is time to get started with it. If you dont have a lot of money to spend on this part, here is a list of things that you can try out:

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Basement Riches by a. Formulate an expert screening panel from within the company to analyze your product line. You can also include your friends, family, and existing product users in this panel to get a well-rounded point of view. Other than that, if you have the necessary contacts, it is a good idea to get relevant consultants and industry personnel involved as well. Here is a list of things you should analyze during this activity: i. ii. iii. iv. v. vi. Your business philosophy, mission, strategies and ethics. Your operations and distribution techniques Your future business aims and product line The customer or user profiles of your product line You businesss sales, shares, and profit gaining strategies Marketing strategies and investment in new technology.

b. Apart from paying attention to your own products, review the product line of your competitors as well to get a better idea of where you are currently standing. While doing so, pay special attention to the following: i. Differences between the features and positioning of your product and your competitors. ii. The probability and ability of your competition to produce stronger and better products iii. The difference between the cost of developing a new and original product and one that is similar to your competitors. iv. The defensive reaction that your competitor is going to demonstrate one you introduce your new and innovative product in the marketplace.

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Basement Riches by c. Implement What You Have Learned From The Screening Process Once you are done with the screening process, you should get into your action mode. If your results were not up to the mark then there is a need to introduce the necessary changes in your business and product line. However, you might want to invest in a little more market research before dining into the product improvement part. Ask yourself what exactly are you risking by introducing these improvements and whether further qualitative and quantitative market analysis is necessary to lower the risk factor. While you are making this decision, you should ask yourself whether the introduction of these changes is going to boost your sales or not. If the answer is affirmative, you should get down to implementing the changes right away. Make sure that you dont take a rash decision about this situation. d. See What Your Customers Have To Say About Your New Product Ideas As I said before, the point of view of your customers is very important since they will ultimately determine the magnitude of your sales. In order to incorporate the same in their product development cycle, big business conglomerates usually conduct periodic diary panel studies, attitude studies, product perception mapping studies, and other studies. They also employ special researchers to analyze the market place thoroughly and give them a better idea of what the customer needs. However, all this is way beyond the scope of smaller companies since they do not have the time, money, or resources to indulge in this sector in such

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Basement Riches by a manner. If you are a business owner and are facing a similar situation, here are a couple of things that you can try out: i. Try to stay close to your customers. Ask them what do they want or expect from your product and which features would they want to get from the same that they are not getting from anyone. ii. iii. Maintain close contact with the ultimate end user of the product. Try to get the point of view of the sales force as well. Ask them how your product is faring and if there are better alternatives available in the market that customers prefer. iv. Incorporate the feedback of your suppliers as well. They are usually up to date with the latest technology and trends and can provide valuable input. VIII-Conduct Informal Customer Research Indulge as much as possible in this and you will notice a gradual but positive impact on your business. Here is how you can implement this: i. Pay regular visits to your the buyer circle If you dont sell your goods or services directly to the end user, you should conduct regular visits to your buyer circle in order to analyze what the customers have to say about your products. ii. Get in touch with the end users If you are directly selling your product to the end user, this will be relatively easy for you. However, if this isnt the case then you should make a conscious effort to pull this off once in a while.

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Basement Riches by iii. Write down relevant questions Make a list of relevant questions that you want to ask your buyers and end users and whenever you visit them, ask them these questions. These should be aimed at revealing helpful trends and opinions regarding your product line. iv. Get in touch with your suppliers As I said before, suppliers can play a huge part in revealing current market trends and you can ask them for valuable feedback regarding your products or services. Their opinion will reflect the point of view of your customers and the mechanics of your competitors. IX-Believe In Your Ability To Generate New Ideas Most of us think that we cannot force new ideas and they only pop in our brains at their own will. However, this isnt so. With the right people, place, and motivation, you can give birth to brilliant ideas by force. You should therefore always encourage creativity and hold regular sessions with the relevant personnel to introduce innovative and original business ideas. For example, many new and successful businesses such as 3M found out that good product and business ideas can come from anywhere; formal research and development procedures arent the only way. As a result, 3M encourages its employees to spend more than 10% of their time on company projects that really interest them even if they arent related to their current scope of work.

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Basement Riches by X-TheMoreYouKnow,TheMoreIdeasYoullHave Until or unless you are on board with all that you have to know regarding your product line or services, you will not be able to generate good ideas. Keep your eyes on whatever is happening in the world around you and look for inspiration outside the box. Study different things related to your line of business and analyze how the introduction of the same will affect your customers. For example, many businesses now offer free wifi hotspots in their retail stores and outlets. A few years ago, this idea was literally unheard of. This is a very good idea because if allows the customers to preoccupy themselves while they are waiting for their product or services. Customers love this new wifi availability so much that they often make their decision to visit a specific store or restaurant or not based on this availability. Hence it is very important to stay up to date with what is happening in the world around you. Here is a list of things that you can try: i. Get in touch with technology and industry experts. These individuals generally keep an eye on whats currently going on in the industrial and business world and will be able to help you in evaluating trends, products, and technologies. ii. Get in touch with product pioneer users Those users who are the first ones to purchase and buy new products have a keen interest in the specific product and are

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Basement Riches by generally years ahead of other users in terms of judging the product at hand. Therefore, their point of view can help you a great deal. iii. Carry out a comparative analysis between your products and similar products manufactured by your competitors This is an extremely important and useful tactic that you should always incorporate in your product development cycle. You will find out where you are lagging or are ahead of your competitors and this will enable you to make your product better. iv. Invest some time in group brainstorming sessions This will enable you to get different point of views regarding your current product line and set an atmosphere that encourages new and innovative business ideas. XI-Get New Ideas Through Brainstorming Sessions And Competition Analysis Brainstorming is a very useful technique that is used by successful corporations all over the world to generate new and original ideas. Brainstorming sessions are usually aimed at solving a certain specific problem relevant to the product at hand. These sessions are usually held in an informal atmosphere and the participants are encouraged to give creative and wild ideas. Once you have jotted down every idea, you can then analyze the same from an practical and objective point of view. The following brainstorming components are suggested by Alex Osborn:

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Basement Riches by v. A moderator who conducts the session and makes sure that it doesnt get off the topic. vi. vii. viii. A relatively small group of six to ten people Hour long sessions A list of rules regarding the mechanics of the brainstorming session..

The moderator plays a very important role in this entire brainstorming process. It is his responsibility to encourage a healthy discussion and make sure that things dont get out of hand during the session. He or she is also responsible for writing down all the ideas and sharing them with the group. In order to ensure that a brainstorming session is successful, the participants must adhere to the following: i. ii. They should refrain from any form of criticism. The ideas presented should be noted down exactly as they were stated in short and lucid phrases. iii. iv. v. vi. Incomplete ideas should be encouraged as well. None of the ideas should be rejected at this point in time. A large number of ideas should be encouraged and collected Using other ideas presented during the session to come up with something new should be encouraged. XII-Editing Ideas After the Session Once the session is over, the ideas obtained are usually analyzed and studied from a practical point of view by the implementing party. Those which are not feasible or do not make much sense are discarded. If longer sessions are held with a larger number of participants, the moderator can

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Basement Riches by break down the session into groups and ask each group to provide a list of ideas that they agree upon. Even if you own a small company that does not consist of many personnel, you can still gather people for your brainstorming sessions. All you need is a source of recording ideas and a group of people who are creative and are willing to help you out. Remember that sessions that are held with a group of people are always more useful than individualistic probing. XIII-Come Up With Ideas By Attempting To Improve Products Of Your Competitors This is perhaps one of the most cost effective and least risky ways of coming up with a new product. Take up an already existing product in the market and analyze it from every aspect in order to come up with a better version of the same. Most companies, whether they are big or small, follow this strategy in order to expand their line of products. This idea saves the extra cost associated with extensive research and skips the customer education part. For example, once the concept of smart phones was introduced and accepted by mobile users all over the world, literally all the mobile manufacturers all over the globe introduced their own variants of the same in the market. This in turn saved a lot of money for all those companies who stepped into the smart phone game later on. In order to implement this strategy in the right manner, you must keep the following points in mind:

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Basement Riches by i. Indulge in those product categories where there arent a lot of patents, large capital improvements, and proprietary information involved. This will ensure that you stay on the legal side of things. ii. You should be able to allocate resources and capital towards this strategy as soon as they are required. iii. Keep in mind that the profit potential of your product might be less than the original innovative party. iv. Dont lose focus and dont indulge in too many segments of the market at the same time. XIV-Choose The Most Viable New Product Idea Using the methods above, you will be able to generate quite a number of ideas regarding new products that you can launch in the market. However, it is very important to settle down with the idea which has the highest chances of succeeding in order to sustain your business. Small companies generally operate on their reputation among a certain circle of users and they cannot afford to lose the same by introducing a failed product in the market. Furthermore, even a single failure can create a big negative impact on a small company if a large number of resources are allocated to that specific product. Hence, it is very important to give due consideration to the ideas and only implement those which are most likely to give favorable results. Fortunately for you, you can cut down these risks by introducing good marketing strategies in overall campaign for product promotion. Reduce the risk factor by selecting the most favorable idea. You can screen the ideas as per the following standards:

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Basement Riches by
a. b. c.

Your companys marketing strategy Your companys profitability and sales minimums. Your customer circle

XV-Use Your Marketing Strategies To Screen Ideas If you are planning on launching a new product, it is imperative to measure it against your companys marketing strategy in order to determine its impact on the market. You have to ensure that the product that you are planning to introduce is in line with the companys image and reinforces the focus of the same. At the same time, it should utilize the scarce resources allocated by the company in the best possible way. If you have a good marketing strategy, it will help you a great deal in finalizing your idea. In a nutshell, your marketing strategy should: a. Define the customer circle by demography and lifestyle b. Be able to convert your companys aims in order quantitative objectives c. Demonstrate how the companys aims will be achieved in terms of:
o o o o

marketing expenditure versus competition Brand positioning Pricing structure and actions Quality of the product

d. Set new standards for the introducing the new products in terms of:
o o

frequency accomplishment of the set marketing objective

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o

the expected response

If the product that you have in mind does not follow your companys marketing scheme, then it is best of discard it until or unless you feel that it will uplift your image in the eyes of your customer circle. Even then, remember that there will be a huge risk factor involved. XVI-Screen Ideas Against Sales And Profitability Minimums Your new product should be able to the sales and profit minimums which you have set after a thorough analysis of cash flows. If you own a small business but are competing against big companies with similar products, the knowledge of the minimums set by your competitors can help you a great deal with the formulation of your product development and marketing strategies. XVII-Involve Customer Input In Your Idea Finalization Process Most new companies commit the mistake of not asking for customer feedback and evaluation during the product development phase. This may have a negative impact on sales afterwards if the product isnt according to the customers demand and needs. Many business managers and owners get so involved in the product making process that they forget the fact that the product is being formulated for the customer. Hence, it is imperative to conduct both qualitative and quantitative studies directed towards interpreting customer demands.

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Basement Riches by XVIII-Testing During The Product Development Cycle Creating a successful product that caters to the financial as well as quality aspects of your business is no easy task. It takes a long period of time to perfect your new product and introduce it in the market. Testing and benchmarking throughout the product development cycle is very important since it allows you to evaluate your products and foresee their performance in the market. There are a lot of quantitative tests that you can carry out to see if your product is up to the expected mark or not. You can compare your scores with the scores of your competitors to see where you stand. Remember that you will have to demonstrate utmost commitment and dedication to the product development phase. Be ready for a lot of work and a lot of change. XIX-Basic Must Dos During The Development Of The Product Prototype A product prototype is a very good way to get the overall response regarding your new product from prospective customers and buyers. While developing the prototype, you should ensure the following: ix. The price, packaging, and product positioning should be in accordance with the accepted concept targets. x. Your sales, distribution, and manufacturing procedures should be within the resources that you have allocated for the same. xi. You should be equipped with the minimum resources that you need to bring your product into the market and effectively market it in the targeted customer circle.

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Basement Riches by xii. You should let the buyers know the details of the benefits and features of your new product. xiii. Your product should be able to recover the investment made towards the same and accomplish the set profit and sales objectives. XX-The importance of testing the advertisement strategy, packaging and price of your new product Many business owners spend a lot of time developing the ideal product but pay little heed to testing its packaging, advertisement strategy, and price in the real world. In this section, I have elaborated on why the same are important. A. Testing The Packaging It is important to monitor the packaging of your new product under live conditions in order to: i. Test its storage potential under a variety of conditions characterized by different levels of humidity, lighting, and temperature. ii. Test it under rough conditions which will probably be encountered during shipping iii. Test it under different environment conditions characterized by various levels of sun and fluorescent light iv. Study its shelf life and deterioration with age. B. Testing The Price This should be done in order to analyze:

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Basement Riches by i. ii. How you product is better than that of your competitors. Whether you are getting the same returns for your product as your competitors. iii. Whether your competitors are giving something more due to which the customers are willing to pay the extra cost. iv. Whether you have kept enough margin for:
o o o

Wholesaler and distributor pricing Marketing and support Expected profit

v.

Whether your brand positioning is correct or not

XXI-The Mechanics Of Service Companies Service companies should ideally carry out the test elaborated above as well in order gain maximum advantage in the end. Although they wont have any tangible packages to test, they can offer their services in attractive ways to get the attention of the targeted customer base. Here is an example of how this may be done. Many financial planning companies offer a bundle of related services in order to compete effectively with other personal service businesses such as lawyers, insurance agents, tax preparers, and investment brokers. These firms usually offer a very large pool of services that the customers can choose from. They have the expertise to handle everything for you such as your estate, taxes, insurance, investments, etc. They can also handle different financial aspects of your very own business.

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Basement Riches by XXII-Evaluate The Success Of Your New Product Over Some Time Once you are done with the entire product development phase and have launched the same in the market, the next thing to do is to evaluate its success. You should give due time to this process. Remember that even if your product doesnt turn out to be successful, this learning curve will help you immensely in planning your future endeavors. Here are some techniques that are used by big businesses to evaluate the success of their new products or services: i. ii. iii. iv. v. Attitude and consumer usage studies Trial and repeat purchase tracking studies Experimental primary lab research Experimental primary field research or controlled field testing Recall studies and advertising awareness

These techniques cost a lot of money and most small companies cannot afford them. If this is the case with you, here are a couple of things that you can try: i. Get in touch with your customers and buyers in order to gauge how satisfied they are with your product. This may seem like informal qualitative research but it can provide extremely valuable information that you can incorporate in your product. Moreover, it will place you at the location where the actual purchase takes place which will in turn help you understand the necessary dynamics. ii. Test your advertisement policy by spending different fiscal amounts on the same in different markets. As an alternative you can also try

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Basement Riches by spending different amounts during different times on the same market. This will help you realize exactly how much you need to spend on advertising and which mediums are acting effectively for the promotion of your product. iii. Analyze your sales of the new product on a weekly basis and compare this with reorder sales. This will help your differentiate with the initial and ultimate impacts of your product. XXIII-Private Labeling Idea Private labeling is a very good option that has offered a ray of hope to new entrepreneurs. With its help, new businesses can come up with their own original brands without all the prior hassle and cost associated with dedicated equipment, supplies, and facilities. Hence, it has enabled businesses to carry out innovative endeavors more freely and at a lesser cost. XXIV-The Mechanics Of Private Labeling The first thing that you have to cater to is the type of product that you want your brand to be associated with. Decide whether you want to go for custom made products, such as a designer clothing line, or already made products, such as frozen food? After this, you will have to find a manufacturer who is in tune with your requirements. Decide on whether you are going to settle down for the standard options offered by the manufacturer or do you want to have something custom built.

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Basement Riches by Depending upon your product and the kind of manufacturer you want to go for, you might have to interact quite a bit with your manufacturer. This will help you ensure that his final product is exactly in tune with your requirements. While considering your options, please remember that distance is a very important factor as well. The longer the distances are, the more costly will be the transportation. Hence, you should always consider the resources which you have allocated for this part of product development. If your product is a general item and is not specific in nature, you might be able to settle down for a manufacturer located at a distance. This will help you build a more comprehensive network of people to work with. You can negotiate prices with the same and test your product with different markets. Please make sure that you have the necessary resources to bring your products and your brand in the market. You should also have a good marketing strategy in order to sell your brand name and products. a. Some Private Label Manufacturers i.

Clothing & Accessories AMARISAS Clothing Manufacturer - Bangkok, Thailand 9 Mode Custom Made Clothes - Ho Chi Minh City, Vietnam SJ Manufacturing - San Francisco, CA Fessler USA - Orwigsburg, PA Cosmetics West Coast Cosmetics - Chatsworth, CA

ii.

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Raya Cosmetics Manufacturing Company - Los Angeles, CA Lady Burd Cosmetics - Beverly Hills, CA Vitamins & Skin Care VitaLabs - Jonesboro, GA Aloe Commodities International Inc. - Costa Rica Nutri-force - Miami Lakes, FL NHS Labs Inc. - Boise, ID Retail Food

iii.

iv.

Solo Foods - Chicago, IL Bay Valley Foods - Platteville, WI Private Label Foods - Rochester, NY Gilster-Mary Lee Corporation - Chester, IL Associations and Trade Sites

v.

Ali Baba Private Label Manufacturers' Association (PLMA) Private Label Trader

XXV-Product Having Huge Market i. Which Products Sell Best Online?

In order to determine the products which will fare the best online, the first thing that you have to do is understand your target audience. People who use the internet to buy stuff usually have a good know how about things because they have a vast amount of information at their disposal.

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Basement Riches by Therefore it is very important to add relevant and quality value to your product in order to distinguish it from other offerings in the market. ii. Added Value And Good Price

If you want to distinguish your product from your competitions, there are two strategies that you can use. The first one is offering a good price. If two products offer the same features, the customer would obviously go for the one which has a lower price.

The second strategy that you can use is adding value to your product in the form of extra features or characteristics which would give it an edge over competitors with similar products. These could include services such as easy exchange policies, good customer support, etc. If you are offering such features, you should market them loud and clear so that the customer knows that your product or service has an added edge. iii. Eliminate Unknowns

In general those products that have a popular name and a good reputation fare well in the internet world. Even if a new product is offering all the features being offered by a popular brand at half the cost, people will go for the later because of trust issues associated with buying things over the internet. Therefore, if you own a business that deals with selling products from different vendors online, it is advisable to go for those which have an established niche in the market. iv. Keep The Option To Order Via Telephone

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Basement Riches by In todays world, online businesses are extremely popular and successful. However, you will be surprised to know that the most successful online corporations receive half of their orders over the phone. Consumers usually visit the website and after browsing through the products and selecting one, they proceed to order the same via telephone. Hence, it is advisable to give your contact information as well. v. Shipping And Handling Problems

Most businesses have to deal with handling and shipping issues. Not only do shipping charges increase the cost of the product, but there is a very high probability of mishandling and accidents during the same as well due to which most customers prefer buying something within reach instead of ordering something online which will require shipping. Therefore, your products should be such that they have very slight chances of being damaged via shipping. If not then you should prefer conducting business in your local state. vi. The Online And Offline Markets Are Very Different

Most business owners tend to forget the difference between online and offline products. Based on their research on products in the offline market, they introduce the same in the online market as well. This may turn out to be a grave mistake because not all products that are suitable for offline sale fare well in the online world. People these days are smart and they have segregated the kind of things they buy offline and online. Therefore, it is necessary to carry out your research in the right medium before settling down for a product or service.

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Chapter-3

Products, Choice, Using Google, Alibaba, Product Decision and Labels Search for Private Label Cosmetics

Being good in business is the most fascinating kind of art. Making money is art and working is art and good business is the best art. Andy Warhol

If you want to start your own business and are looking for a good idea, Private label skin care items are a very good choice. They are tried and tested and because of the existing setup of the same, you can even get

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Basement Riches by your hands on the recipe of its successful implementation. According to the means of purchase and the tools involved, you can start your own brand online, offline, or both. You can manage your business any way you deem fit and use the profits obtained for further investment. Most businesses that deal with their own skin care items have a diverse product line that consists of a variety of goods. These include items such as scrubs, soaps, liquid soaps, creams, lotions, etc. You can choose any of these products to start off your very own brand. This option will allow you to select your product line from a diverse range of available items and mark them with your very own brand name. If you are planning on starting an online business, the procedure is extremely simple. All the tools for creating the brand label and its associated image are readily available and you can use them to make an entry in the business world. If you want to start off with one or two products and expand your line later on, you can use the same tools to further create labels further down the timeline. Indulging in an idea that has already been tried and tested helps you save resources, effort, and time. There are a lot of case studies and successful business models available and you can use those to cut down the risk factor involved. This will enable you to enter the business world with a strong start. Different items belonging to this line have different prices in light of the relevant factors involved. These include the ingredients, labeling, packaging, manufacturing, etc. You will be able to find these items at good

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Basement Riches by prices and in view of the same, you should create a comprehensive budget plan beforehand. This way you will know how much capital you have available to invest. Different manufacturers sell their products in accordance with different rules. You should conduct a background check of the manufacturer and his/her products in order to make sure that you are investing in the right direction. If you are perplexed and confused about this entrepreneurial venture, you should start off by making your very own business plan. This will enable you to identify the products that you want to sell and develop strategies for pulling off the same. You will also get a good idea of how effectively you can pull your plans off with the budget that you have. Private Label skin care items are a very good investment because they have a steady market and the homework has already been done for you. There isnt a lot of risk involved and you can tune your products in accordance with the image that you want to create by designing your own brand and label. This will enable you to generate good profits. Some Facts I. Staring A Cosmetics Business

The general impression regarding the cosmetic industry is that it is a very expensive business to start off with. However, this isnt really true and you can even start off this business from your home by investing in home based cosmetics. You can easily make you own lotions, soaps, and oils and sell

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Basement Riches by them in malls, retail stores, in your own rented space, or from your home. The raw material and equipment is very cheap and you can get the necessary stuff for a couple of hundred dollars. Other than this, you can also get in touch with a contract cosmetic manufacturer and make your own cosmetic line with your very own label. Contract manufacturers can take care of everything for you ranging from the label design to the product packaging. Another business line you can go for is distributing already existing cosmetic brands in areas where they arent present. II. Product Line of Cosmetics

There is a long list of possible products that you can sell in this regard. These include: Soaps Oils Masques Lotions Lip balms and glosses Lipstick Body powder Shampoos Hair conditioners Bubble baths Deodorant Scrubs Blush Eye shadow Eyeliner Makeup remover Mascara Foundation Perfumes Nail polishes Mouthwashes Douches Anti-aging cream Aftershave Massage lotions Stretch mark lotion

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Basement Riches by Moisturizer In this business, sometimes improving something or adding something extra to an already existing product is more than enough to give you a good start. If the product manages to capture the markets attention, you will get extremely good returns. Other than the products listed above, you can also add some related products to your product line if you want to expand your business along new directions. These include hand bags, lingerie, herbal cosmetics, and natural oils. III. Costs And Profits Associated With The Cosmetic Industry

The amount of investment required for this business depends upon the portion of the finished product that you will be manufacturing yourself. They can cause as less as $ 0.1 per item and the best part is that you can sell them for much higher prices. For instance, a single lipstick costs around $10. Hence, the cosmetics industry is a very profitable industry. If you are going to start from home then you can start your business with an investment of merely $1000. IV. Beauty Products to Start Business With

In the modern world, a lot of emphasis is placed on beauty and outward appearance due to which it is a very profitable business. From hair products, to nail and make up products, there is a huge variety of items that come under the category of beauty products. If you want to invest in makeup products, there are a lot of options available and you can start off with multiple products since these products are used

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Basement Riches by in conjunction with one another. For instance, foundation is generally used with a concealer and finishing powder. Similarly, women generally use bronzers and shimmers with foundation as well. Eye makeup is a very good option as well and involves items such as eyeliner, mascara, and eye shadow. There are a lot of lip products available as well such as lipsticks, lip glosses, lip liners, etc. Similarly, there are a lot of hair products that are currently being used by women all over the world as well. Hair dyes are a very popular product and they come in temporary, semi-permanent and permanent varieties. Products such as lightening powder, highlighting color, and color developer are used to add a twist to the regular old hair color. These usually require auxiliary products such as foils, frosting needles, and processing caps. Hence there are a lot of options to choose from. Beauty salons and parlors are equipped with an extensive range of products which are sued for specialized purposes. These are available in the general market as well for home use. These include products such as manicure tools (nail colors, fillers, strengtheners, and fortifiers), sterilizing products, creams, pedicure tools (slippers, toe spacers, etc), and a lot of other products. Hair lightening and removal products are very popular all over the globe as well and include wax strips, muslin strips, bleach, razors, tweezers, shavers, epilators, shaving gel, and epilation cream. These are good investment options as well if you want to start a business in beauty products.

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Basement Riches by Skin care and cleaning supplies are commonly bought in the beauty circles as well. There are a lot of items that you can choose from in this category. These include hand and body lotions, firming lotions, massage creams, cocoa butter, brightening lotion, foot creams, etc. These products are available in natural variants as well. Hence the beauty care business is extremely diverse and literally every product in this industry has a big market. If you want to start your business in the same, there are a lot of products that you can choose from the specialize in, sell in the market, and generate profits from. V. Some Important Points

If you want to get involved in the beauty business, you should be equipped with the necessary knowledge regarding launching and branding concepts in order to make the most out of your business endeavor. Here is a list of absolute must dos in this regard: i. Research Your Topic Thoroughly If you want to be successful in the cosmetics business, it is imperative to carry out the relevant research first. If you want people to buy your products and love them then you will have to find a good yet reasonably priced private label manufacturer for cosmetics. Conduct an in depth background check of your selected candidates. Have a look at their work profile, see the kind of products that they have manufactured, and the response that they got. Experience matters a lot so make sure that they have been in the business since

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Basement Riches by some time. Try to meet the manufacturers in person before settling down for your final choice. Some good manufacturers in this regard are LoraLab Manufacturing and SK Pharmaceuticals. ii. Choose A Catchy Name For Your Brand Your brand name is extremely important since people are going to recognize your business through the same. Your brand name should reflect the philosophy and idea behind your business; it should elaborate your mission statement. Dont go for something clich. Think out of the box and come up with something unique. You can try holding brainstorming sessions with any creative people that you know, whether they are friends, family, or employees, to help you find the perfect name for your brand. Some good brand names include Bare minerals, Shea Touch, and Burts Bees. iii. What Does Your Label Say? Maintain constant contact with your package designer and let him know what your product is and how do you want to reflect it in the market. You should ensure that the front side of your package has the right keywords. Other than that, the backside should have easy instructions regarding product usage.

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iv.

VisitSitesLikeEWGsSkinDeepAndFindRelevantInformation This is a very good website that contains essential information regarding which ingredients are considered safe in the cosmetic world and which are not. They reveal a lot of information about different products and their side effects.

VI.

Finding Suppliers

Finding the right suppliers is very important in the cosmetic industry since the products that you are going to promote under your brand will be used on a dermatological level by your customers. If you use the wrong ingredients, which are not safe, your product might cause a very negative impact on your customers which might even land you in jail. Hence, you should choose your suppliers after careful thought and consideration. Please make sure that the supplier that you choose has a commendable track record and has considerable experience in the cosmetics industry. Visit the following link to find some relevant suppliers in the cosmetics

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Basement Riches by industry: http://allwebhunt.com/dir-

wiki.cfm/Top/Business/Consumer_Goods_and_Services/Beauty/Cosmetics /Private_Label VII. Searching for Google

VIII.

Using alibaba.com

Alibaba.com is perhaps the largest online trading platforms for businesses all over the world and it has helped many businesses, big and small, in finding relevant suppliers and manufacturers. This gigantic online platform has three main marketplaces and it was founded in Hangzou, which is located in Eastern China. Its comprehensive and international English language marketplace has brought together a

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Basement Riches by gigantic number of importers and exporters from around 240 regions and countries all over the world under one wing. It also has a China marketplace which was primarily introduced to facilitate national business to business interaction within China. It also offers Ali Express, which is a transaction based wholesale platform. It is a very good initiative because it allows small businesses and buyers to obtain small amounts of merchandise at very reasonable wholesale prices. According to the company, these three marketing platforms collectively have more than 79 million registered users, which is a very big number.

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Basement Riches by Once you have signed up with Alibaba, the next thing to do is to learn how to use the same to gain business advantages. On this platform, you will come across a variety of suppliers and cosmetics manufacturers who can help your realize your business aims.

IX.

Important Guidelines For Product Listing

If you want to attract the right attention on the mediums discussed above, it is important to display accurate and relevant information regarding your product and company. Moreover, the information should be up to date. According to our research, those companies who categorize products incorrectly or display the same products repeatedly in their listings arent

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Basement Riches by very effective at attracting the right attention. Hence, they are also given lower rankings in search results since they tend to get repetitive. The renowned Alibaba.com has come up with a brand new set of tools aimed at helping you display your product listing in a better manner to improve your search results ranking. These maybe split into two categories: 1. Tools for duplicate products 2. Tools for miscategorized products X. Tools For Duplicate Products: What Are Duplicate Products?

They are defined as those products which either have very similar or completely identical product information. Identical duplicate cases refer to those products which have the same keywords, product details, subject, description, category, images, etc. On the other hand, similar products may refer to any products which share relevant information as per any of the following cases: They have similar keywords, details, detailed description, listing description, subject, and category. They have identical data in four or more of the categories listed above. XI. Using The Management Tool

This tool maybe found on Alibaba.com under the following category. The following image will help in making things more clear in this regard:

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As you can see, the homepage of the management tools for duplicate products divulges information regarding the number of duplicate products that you currently have on display.

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Basement Riches by Now you can make relevant changes to your duplicate products by accessing the View Duplicate Products option. Here is some additional information for you which will help you in understanding the tool better: Those product listings which are delivering the most effective results are grouped under the Recommended Listing category. You should keep these ones and remove the other duplicated products. If you dont want to delete the products permanently, you can move them to the trash can. Otherwise, you also have the permanent deletion option. You have the option of sorting your product listing in accordance with the date on which they were most recently updated or first displayed. FAQs

i.

Why do duplicate products have lower search rankings on Alibaba?

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Basement Riches by According to our research on the topic, nearly identical or duplicate products displayed by the supplier makes it very difficult for the buyers to spot products that are relevant to their line of business. These products do not increase the amount of inquires or exposure received by the supplier; in fact this pointless repetition makes the buyers think that there is something fishy about the supplier and they are consequently discourages froms ending further queries. Since Alibaba.com is aimed at creating a healthy, effective, and helpful business to business interaction between buyers and suppliers, these products are automatically ranked lower in the rankings since they lack relevance. In this way, buyers can look for their options more effectively and suppliers with good and relevant product lines can get more focus. ii. How can I change my product display to get more exposure and inquiries? According to our studies, suppliers which have around 100,000 products, consisting of a lot of repeated ones receive inquiries for only 0.2 percent of their entire product line. This is a clear reflection of the fact that displaying more products does not mean better exposure. In order to make the most out of this tool, you should try to edit your product listing and information in such as manner that it ends up attracting more and more relevant buyers to Alibaba.com. This will translate into a larger number of inquiries, more exposure, and better search results ranking.

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Basement Riches by To implement this, make sure that you have a reasonable number of products and try to improve the information displayed for each product. If you have certain products which have different appearances but identical descriptions, you can display them as a single product, and share the images of the different models available in the detailed description section. In this manner, you will be able to incorporate all the relevant information and encourage the buyers to click more which will in turn make your rankings better.

Furthermore, if you want to include similar products with good keywords in your product listing, you can try to differentiate them by mentioning special features on each product in their product details and focusing each product on the specific industry that you want to target. If you want to add scoring keywords, Alibaba.com has a recommended keywords section that you can use for this purpose. These words signify those products that many users tried to look for on Alibaba.com but to no avail, since the search did not produce ample results. The usage of these words will uplift your business in the search results. iii. What should I do if the amount of exposure and inquiries that I am getting decrease after I get rid of my duplicate products? As we pointed out before, our studies and statistics suggest that the number of displayed products does not have a huge impact on the amount of exposure that you get since Alibaba.com tries to ensure that users get relevant results. On immediate basis, you might feel like you are getting less exposure, but the number of inquiries

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Basement Riches by received will not get affected because users only make inquiries once they realize that the product being offered is relevant. In the long run, the professional and efficient methodology elaborated above will only bring you in the limelight since the buyers will find your products more easily. You can visit the following link to find out more information:

http://service.alibaba.com/ggs/quickstart/video/high_quality_product.html XII. Tools For Miscategorized Products:What Are Miscategorized Products? They represent those products which are not categorized correctly. For instance, an electronic item under the clothing category would be a miscategorized item. These make it very difficult for the buyer to browse effectively and such improper categorization deters them from making further enquiries regarding the product. Like duplicate products, these products usually disappear in the search results as well since they mislead the buyers. XIII. Correcting Miscategorized Products

The listing optimization tool can help you correct your product categorization. You can find it in the selling section and the homepage of

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Basement Riches by Alibaba.com. The following image will give you a better idea:

In case you have any miscategorized products, a link pointing to same will be visible in Biz Trends Product Performance Statistics section. See the image below for further details:

You can look for these products by checking the product status or the person in charge option, as elaborated in the image below:

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Here are the different types of statuses which can come up with reference to your product: Optimization Suggested: This means that a different category has been suggested for your product by your site and it is waiting for your response. Awaiting Review: This indicates that you have changed the category and are waiting for its review and approval by the authorities that run Alibaba.com. Review Failed: This means that the changes that you have suggested are not in line with the recommendations made by Alibaba.com. You can perform the following actions to adjust the categories of your products:

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Basement Riches by Change the Category

Once youve selected the category recommendation suggested by Alibaba.com, click the Next button to proceed to the Modify Product page.

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Basement Riches by The details that you had entered earlier on for your product will become accessible and you can update the category of your product as per the suggested recommendation. Discard the suggested recommendation If you are of the opinion that the current category that you have enlisted is the best option for your product, you can express your opinion using the option elaborated in the image below: Using this option, you can suggest new categories as well and your suggestions will be more than welcome at Alibaba.com Delete the product If you think that your product isnt appropriate and is weighing your business down, you can delete it. XIV. i. Frequently Asked Questions How do I ensure that I have selected the right category for my product? Once youve decided on certain keywords for your product, our system will make category recommendations to help you get started. You cans elect a category among them that aptly applies to your product. If you dont think theres any category that gels with your product, you can access our category database and select one that you think is the best fit. If you are still confused, another trick is to search your product on Alibaba.com and discover which categories

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Basement Riches by are other suppliers using to categorize their products. This will help you a great deal. ii. If I follow the recommendations made by Alibaba.com, will my product listing get more exposure and enquiries? If you categorize your products aptly, they will no doubt have better chances of getting discovered by buyers. In addition, the same will also add more attributes and specifications to your products detail section which will in turn make it easier for relevant buyers to locate and buy your product. As stated before, those products which are categorized correctly are seen more relevant by the site which in turn pushes them up the search results. iii. I enlisted my product under one of the categories suggested by Alibaba.com but it is still labeled miscategorized. Why is this so? When a product is first entered in the system, the site makes certain category suggestions based on the keywords contained in the product description. These keywords maybe relevant to different categories and all these will show up as recommendation. However, the vice versa is not necessarily always true i.e. there might be some categories which will not be relevant to your product. This is where the human element comes in. You can review the recommendations presented and make an appropriate choice by selecting the category that matches very closely with your product. iv. What if I dont change the category of my product according to the recommendations that Aibaba.com has made to use for it?

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Basement Riches by Incase your product isnt categorized properly the category feature wont be of any use to all since it wont be able to enhance the details of the product presented. However, more importantly, most buyers look for products using the category feature; if you dont use the correct category, your intended market will never be able to find your product. Incorrectly categorized items wont get the required traffic and they also confuse users which send them down the search results. Hence, it is very important to ensure that your product is registered under the right category. As discussed above, you can use Alibaba.coms Listing Optimization Tool to make the required changes. v. What should I do if I cant find a suitable category for my product on Alibaba.com? If you cant locate a category that effectively defines your product, you can point this fact out to Alibaba.com by using the listing optimization tool. Such an input will turn out to be very helpful for the site owners as well. If you are starting a new business from scratch, then you probably understand the fact that finding a good supplier and manufacturer that is trustworthy and good is no easy task.

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Basement Riches by XV. Alibaba.com Connects Small Businesses with Global Trade Partners By using Alibaba.com, you can gain a lot of business advantages. One of these countless advantages includes the opportunity to conduct business with other businesses located around the world. In order to exercise this option, the first thing that you need to do is find a supplier or manufacturer who can fulfill your business requirements. In this regard, Alibaba.com is the perfect hub because it has registered businesses, suppliers, manufacturers, and wholesalers from more than 240 regions all over the world. Through Alibaba.com, you can find a good and reliable supplier or manufacturer for obtaining the goods that you need for your business. There is an online search tool available that you can use to find general order suppliers and wholesalers. However, if you are looking for products that are more complicated, you can submit a Request For Quotation (RFQ) which will be matched to 10 customized companies. If you own a small business and are looking for a comparatively smaller consignment of good, you can try out AliExpress. Whats most important is that these sites are completely free of cost for buyers. Hence, whether you are a buyer or a supplier, Alibaba.com is a very good option for you to meet and discover businesses that can help you out all over the globe. You should remember that once youve met the party that you are looking for, you will have to carry out the necessary dealings with it

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Basement Riches by off Alibabas platform. Hence, you should be very careful about what you disclose and discuss. XVI. Due Diligence is an Absolute Must

After short listing suppliers and manufacturers for your product, the next step is to investigate their backgrounds in order to establish their ability and legitimacy in terms of carrying out business transactions. Remember that there are many posers who may seem to have an excellent profile due to which you should always be on your guard. In February 2011, Alibabs.com suffered due to a case in which a false company had registered with the site under the name Gold Suppliers. Upon recognizing the fraud, the company dealt with it immediately and had to suffer from heavy losses in the form of resignation of the CEO, COO and around a hundred sales people. This incident served to be a lesson for the site and they formulated a detailed series of safety and trust services to ensure that such an incident does not happen again. Hence it is very important to stay on your guard and invest as much time as possible in background research in order to make sure that you are not swiveled at the end of the day. Now that you know how important and sensitive business transactions can be, the next step is to get started with the background check process. You can start off by googling your prospective suppliers and manufacturers and reading up reviews by people who have been involved in a business relationship with them. You should also ask the business that you are planning on getting involved with for at least two recommendation letters

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Basement Riches by from authentic banking sources. You should then cross check the same to ensure that they are real.

Another very significant point you should ensure is that the business that you are planning on getting involved with delivers the goods or merchandise as promised in the agreed terms and conditions. This is usually done by on-site inspection and if you are located very far away from your company of interest, you can hire renowned and recommended onsite inspection services for this purpose. XVII. Tips for Secure Payments, Escrow, Shipping and Insurance

If you think that finding out that the company you are about to deal with is legitimate is the end of your worries, you are wrong. You will further have to

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Basement Riches by ensure that the goods are delivered to you as promised and the payment method is secure. In order to make sure that you are not swindled in this area, Alibaba has come up with an escrow service that holds the disbursement of payment until you confirm that order is received as promised. It is recommended that if you are new to this entire online transaction business, you should conduct your dealings through this escrow payments option on Alibaba.com. It has a three percent fee but its nothing compared to the advantages you will be getting in terms of secure transactions. XVIII. Finding Products: Your Preferences, Pricing, Order Quantity, ShippingandSellersReputationonAlibaba Find Products Here are a number of options that you can use to find the products that you need on Alibaba.com for starting your business: Option 1 Use the search bar to go through the 1.5 billion products that Alibaba has to offer. You can use the suggested searches and related searches options to filter your search results. The following image demonstrates this option:

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Option 2 You can use the Buying Request option available on Alibaba.com to get in touch with 10 relevant suppliers in merely 48 hours. This option is also referred to as customized sourcing and it has the following benefits: o Gets you in touch with trust worthy, reliable, and quality suppliers personally verified by Alibaba.com o It enables you to get the relevant quotes from verified suppliers in around 48 hours o It is very easy to exercise since it takes only 5 minutes to fill out the form.

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Basement Riches by Please find the sample image of the form below to get a better idea of the whole process of exercising this option. Screen Results With reference to screen results, you can exercise the following options: Filtering Alibabas search feature is extremely handy and it will allow you to find the products that you are looking for very easily. As per the image below, you can apply many filters such as category, country/region, and verification type to narrow down your results.

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Basement Riches by Comparison In order to choose the best product or supplier among the various options that you have, make sure that you check the compare box. This will allow you to make a comparative analysis between two or more suppliers. An example relevant to this option is elaborated in the image below:

XIX.

Contact Suppliers

Here are the options that you can exercise to contact relevant suppliers: The Get Latest Price option While conducting your search check the Get Latest Price box to get a quick and authentic quote from the relevant supplier that you are trying to contact.

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Using Trade Manager This is a very handy tool that allows you to conduct real time interaction with your business partners. It has the following advantages: o It makes the entire process very fast since you can now contact the supplier directly o It is very easy to use since it does not require you to download and software. Send an inquiry to the supplier

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Basement Riches by The following image will elaborate on this option:

XX.

Trade With Confidence

AlibabasEscrowService As discussed above, Alibabas Escrow service is an extremely handy and valuable tool that you can use to ensure that you engage in secure and quality transactions. It offers the following advantages: It protects your transactions since it only disburses the payment to the supplier once both the involved parties have given the signal that the transaction has been completed in accordance with the agreed upon terms The service that is offered is speedy, easy to use and customized. It also has a dispute resolution policy. In case there are any disputes between the involved parties, Alibaba can act as the mediator and resolve the issue at hand.

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AlibabasInspectionService Alibabas inspection service is a very good tool since it provides the following advantages: The inspectors involved are very reliable and their qualifications are checked by Alibaba.com itself It is very economical. You can get a good inspector for as low as $100 per day The Escrow service ensures that the payment is only released to the inspector after youve indicated that you have received the required services. XXI. Getting Your Labels Designed From Vendors

The first thing that you should do is enlist the data that you want on your label. Usually, this includes the name and logo of the company, the products name and its brief description, and any accompanying tagline. Have a good look at your package and estimate the size and kind of label which will appropriate for your products package. For example,

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Basement Riches by if the package is rectangular, you may want to decorate it with a sticky label on the back and front. For best results, you should make a template yourself. Cut out the kind and size of label that you want on a plain white paper and make a rough sketch of how you want the information to be incorporated in the same. Measure the dimensions of your label. Depending upon the quantity of labels that you want on your package, make separate label templates. After this, color your label in accordance with the colors that you want. It is advisable to use warm and bright colors which will appeal to your target audience. If you want, you can add further art and texture to your label. If you can even hire someone to make your label for you. If you havent designed your logo already, make it on a separate page. While doing so, make sure that it has attractive colors so that it stands out and is distinguishable. Now paste it onto a transparent sheet and paste the same on your label to see how your label will look once it is made. Now that your test label is complete, paste it onto your package to see how it looks. If you need to make any changes, do so. If you think that its a perfect fit for your product, you can proceed to get it pr inted for your products.

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Basement Riches by XXII.

Tips & Warnings If you are happy with the way your label looks, you can print it yourself as well if you have a good printer. If not, then you should take it to a professional printer to get quality labels.

Take a round of the market and see the products labels of products similar to yours. It will give you a better idea of what is popular in the market.

Refrain from copying other labels. Please obtain all the necessary information about labels before proceeding to make one for your brand. There are many laws which are applicable to product labeling and you should know these before moving any further.

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Chapter-4

Setting Up Business Website

Getting A Website, Buying Domain and Setting Up Website with Word Press www.xxxxxxxxxxxxxxxx.com

I.

The Pros Of Having A Website

In todays business world, having a website has become more of an essential than an option since it is perhaps one of the fastest way to get in touch with prospective customers and clients. If you are starting a business, you should be aware of the importance of having a website in

Success often comes to those who dare to act. It seldom goes to the timid who are ever afraid of the consequences. Jawaharlal Nehru

the modern era. Here is a list of reasons why you should have a website: I. It will help you come in the limelight and find interested customers and clients. II. It will help you be accessible to your customers 24/7 which will in turn give your business a boost.

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Basement Riches by III. The website can act as a hub for providing consistent customer service which will result in more satisfied and loyal customers. You can share different help resources such as troubleshooting procedures, FAQs, etc. to help you customers. This will also decrease your toll of customer service employees. IV. Using the website, you can share relevant information regarding your brand and product line with the users visiting your website. This will in turn build your credibility in their eyes and you can use the same to keep them constantly updated with whatever you have to offer. V. VI. It isnt costly and does not have any size constraints. You can use your website to indulge in online selling. There are many companies available, such as Interswitch, which can handle you payments and accounts. Therefore, it is a very cost effective and efficient way for conducting business. VII. Having an online presence will help you compete more effectively with both local and global businesses. Make your website as professional and attractive as possible since it will give your business a boost in the form of increased traffic, exposure, and customer interest and loyalty. II. Tips on Choosing a Good Domain Name

Here are some important points that you should keep in mind while deciding on your domain name:

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Basement Riches by i. Itshouldbethesameasyourwebsitesname

It is very important to ensure that your website name, which is based upon your brand, is the same as your domain name. This may seem obvious to many, but the point that I am trying to make here is that it isnt only recommended, its essential. This is because you want your customers to find your domain as soon as they think about your brand. Now if you had a cryptic kind of name then it would become very difficult for your prospective customers to find your domain; the more exacting your domain name is to your brand or website name, the better chances you will have of being found. Now if you find out that the domain name corresponding to your brand is already registered by someone else, there are three options you can try: You can try another domain name that isnt already registered and is very close to your brand or websites name. You can change your brand name You can try to boy over the current domain from its owner Now you probably dont want to go for the second option if your business is already famous and you have a loyal market corresponding to your brand name. In this case, you should go for the third option. Gather information regarding the current owner of the site and if you are persistent enough, he or she might just give in. Otherwise, if you are just starting out, the first and second options can work for you. You can even get a domain name first and base your brand and website name on your new domains name.

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Basement Riches by ii. Should I go for brand or generic domain names?

You should base your name on your brand instead of choosing a generic name. For example, if you own a clothing business called Clothes for you, it is better o go for a domain name like clothesforyou.com instead of clothes.com or something like that. This is because your domain name should identify with your particular business, not with the product that you are selling. Most people who surf the internet usually have a particular brand in mind that they want to investigate. Plus, adding your brand to your domain name will also add a touch of authenticity to the same. Otherwise, the user might be in doubt that the domain is a hoax. iii. Are long domain names better or short ones?

The character limit of your domain name is 67 characters. There are conflicting opinions prevailing in the market regarding the question at hand. Some experts say that longer names are more productive, while others argue that shorter ones are more apt at bringing about the desired results. People who argue in favor of short domain names assert that they are far easier to remember and type, and have lesser changes of typo errors simply because they have lesser characters. Those who prefer long names argue that short website names are usually made up of a series of seemingly unrelated characters and its difficult for the user to memorize these names. According to them, its easier to remember something like ClothesForYou.com rather than cfu.com. This is true to some extent since most of the good short domain names are already taken and the ones that

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Basement Riches by are left behind are so random that it would be very difficult for someone to memorize them. Other than that, you can also include keywords in longer domain names which will give you better rankings in search engine listings. iv. Should I go for a hyphenated domain name?

Hyphenated names come with a series of advantages and disadvantages. You should know tehse before making your decision:

Advantages 1. It will enable search engines to distinguish relevant keywords in your domain name in a better manner. Hence you will get more results pointing back to your domain name. 2. If the non-hyphenated name is already taken, it is a good strategy to retain your website and brand name.

Disadvantages 1. Most people forget about hyphens when typing to domain name. Hence your prospective customers might end up on the domains of your competitors instead of yours. 2. Non hyphenated domain names are easier to remember and pronounce verbally. So for instance, if your website is named great-books.com, someone visiting your website would most likely pronounce it as greakbooks.com while recommending your website to others. This will again lead your traffic in another direction. 3. It is more difficult to type.

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Basement Riches by v. Using The, My, and Plurals in your domain name

Sometimes, if your website name is already taken, you would be tempted to go for the the, my, or plural varieties of your website name to make sure that your domain name is relevant to your website and brand name. For example, if you wanted the domain name phonebook.com for your website, your registrar might suggest you to take anyone of the following: thephonebook.com, myphonebook.com, or phonebooks.com. In this regard, it is alright to go with the former two. However you should remember to stress on the word the or my while narrating your website name to someone. Otherwise people might go to phonebook.com instead. When it comes to plurals, it is advisable to avoid them since most people tend to forget thes while typing website names. It is a very common error and it might end up landing your prospective customers on your competitors website. vi. Should I go for .org, .net, etc?

This is a very popular question and sadly it does not have a definite answer. Many people who cant get their desired .com domain opt for other extensions such as .net, org, or country specific domains such as .nu, .de, .sg, and more. However the question is whether one should go for this approach or not. If you have a local business then this might be a good idea for you because it will give of the impression that you are serving a specific region or country. However, if you have an international business this impression might work against you since people all over the world interested in your

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Basement Riches by products might feel like your product line is restricted to a specific region only. However, even so, some businesses maintain that it is much better to get a domain name like this instead of going for something that is obscure, random, and not related to your business and brand. Some experts maintain .com variants are better for business since search engines look for .com websites before searching for other extensions. So for instance if a user types the word books in the search bar, the search engine will attempt to look up books.com before going for books.org or books.net. Hence there are mixed opinions regarding this question and you should make your decision after weighing both the pros and cons of this choice. III. How to Register Your Own Domain Name

If you have a website, then registering your domain name is very important. You dont have to be a part of a business or organization to pull this off; anyone who owns a website can register his or her domain name. i. The significance of a domain name

Here is a list of reasons why you should have a domain name:

If you change your website address, also known as URL, you will still retain your domain name. You domain name will automatically redirect your customers towards the new URL and you wont have to worry about informing everyone about this change.

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A domain name adds more authenticity to your online outlook which means a lot if you are engaged in an online business. People prefer conducting business with those companies which have their own domain name.

If your domain name reflects your brand and business, then it will be easier for people to remember it and gain access to your website. This will no doubt increase the amount of traffic that you get.

A good domain name is also helpful for landing sponsors and advertisers since it lends an air of respectability to the website.

ii.

Overview of the registration process

Now that you are aware of the importance of registering your domain name, the next step is to do so. The process involves registering the domain name with an organization responsible for overlooking the internet called ICANN. Heres the sequence of steps that you should follow to register your domain name:

First of all, think of some good domain names for your website. Dont stick to just one choice since theres a huge chance that it might already be taken. Therefore you should make a list of names in accordance with your personal preference.

Remember that you will need a PayPal account or a valid credit card to pay for the registration process. Most registrars have this requirement and it gets you the rights of the domain name on an immediate basis. If youve already made a website and have a webhost, get your hands on the names of your primary and secondary name servers.

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Basement Riches by Even if you dont understand what they are, just jot them down and keep them somewhere safe. You can usually find this information from documentation, such as FAQs, posted on your webhosts website. If you cant then simply ask them to give you the information. Once youve bought your domain, this information will be used to point your domain to your specific website.

If youve decided to go for the domain registration process before making your own website, you can ask your registrar to point your domain towards a temporary, under construction website. This way you can secure your domain name and work on your website side by side.

iii.

Some domain name registrars for your information

There are many domain registrars available and this list is a source of guidance for you to get started. You can site their URLs to get more information. Please remember to exhaust and study your options thoroughly before settling for a registrar. Here is the list:

Register.com 1&1 Internet World's Largest Registrar - GoDaddy.com Dotster.com

There are also many commercial web hosts available online as well. If you agree to host with them, they will give you a domain name for free.

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Basement Riches by IV. Important Precautions to Take When Buying a Domain Name

Most of us think that the online world is free of malpractices and sour experiences. However, this is not so; this is because its an extremely competitive world in which every business or organization has to strive to get and edge and survive. This topic will elaborate on some things which you should be prepared for when you decide to buy your own domain name. i.

Conniving domain registrars and domain name front running Domain name front running This is practiced very commonly these days. In domain name front running, the culprit monitors various domain names that are available and then buys them before the person making inquiries can buy it through the process elaborated above. The objective of this exercise is to sell these domain names at more demanding prices to interested parties. This way, they can score a lucrative profit without putting in any effort.

Conniving Domain Name Registrars Sometimes, domain name registrars also engage in shady practices in an attempt to make profits. These registrars register literally every domain name that is entered in their search box and then sell them to interested parties at higher prices. If you look for a domain and see that it is available, these registrars grab it quickly and register it. This way none of the other registrars can register the domain name for

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Basement Riches by you, since according to their information, it is already taken. So you are left with no other option than to buy the domain from the unscrupulous registrar at his or her higher than usual prices. This is a very common practice and has been a source of complaint for many. ii. Things you should do to avoid these scams

1) Go to the registrar with all the possible names in your hand. Make sure that you are ready to buy when you visit the registrar. 2) Decide on a trustworthy registrar beforehand and only go to him or her for your domain name registration. 3) If the domain name of your choice is available, buy it instantly since it might not be available a few seconds later. 4) If you are confused about several domains, buy them all and decide later. Remember that you can sell the rest of the domain names later on. 5) Never post or ask on forums that you are planning on buying this or that domain name and are confused about it, or something along those lines. Trust me, you domain name will be grabbed within seconds of posting that comment. V. WordPress Installation

Installing Wordpress is not a big deal; however, you have to make sure that your installation is secure. There are some tweaks that you will have to perform in order to achieve this objective and I have elaborated on them below to guide you through the installation process:

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Basement Riches by i. Perform a pre- installation check

Before starting off, make sure that you are equipped with the following items: Information from your database such as your name, password, and username. The most recent version of Wordpress. You can get it from wordpress.org. You specific domain hosting package on which the installation process will take place. ii. Begin installation

The first thing you will have to do is gain access to your website. This will be done typing in your domain name in your web browser, such as http://greatbooks.com. If you want www with your domain name, you should then begin your installation by writing https://www.greatbooks.com. iii. Configuration file

Calling your URL will call up the following screen. To proceed further, click on the button labeled Create a Configuration File.

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Basement Riches by iv. List of Requirements

Before moving forward, Wordpress will remind you again of the items that you need to install Worpress successfully on your domain. These are as follows:

Name of Database Username of Database Password of Database Host of Database The Table prefix, if you do not have complete access to your database.

v.

Making Use Of The Installation Data

Now in this step, we are going to make changes which arent in tune with Wordpresss standard procedure. First of all, you will have to change the default values in accordance with the settings that you were given. Secondly, look at the field Table Prefix which is the last field of the settings panel. Notice that it has the stand wp_ value. You should change this value to something else since most hackers tend to target tables which have wp_ in their names, such as wp_users, wp_options, etc. Once you change your prefix, you will be safe from at least these preliminary attacks. vi. Run the Installation

If all your data is in place and is verified, next up you will get a screen pop out which will say that you can now run the install. Otherwise, you will get

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Basement Riches by an error and a notification that you should recheck the data the data that you have entered. vii. Finishing up

On the last screen, you will have to enter your email address and your blogs name. On this email address, you will get your username and password and you will have to validate your email address in order to complete the installation. viii. Installation Is Complete

Now everything is complete and you will get a final pop up screen with your default user name admin and a random password generated by the system. Make sure that you save your password somewhere safe since its generally difficult to remember such passwords. ix. Gain access to your WordPress Dashboard

You can now Log in to access your dashboard and start using Wordpress. If you dont want to log in right now, make sure that you enter either /wp admin or /wp-login.php after your domains URL in order to access the login screen pop up. So for instance if your domain name is greatbooks.com, you will have to type in either http://greatbooks.com/wp-admin or http://greatbooks.com/wp-login.php x. Listofthingsyoucandoonceyouredonewithyourinstallation

Here is a list of things that you should do once your Wordpress Blog is up and running:

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Basement Riches by i. Make a new user ID with administrator rights. Now log out of the current admin one and login with the new username. The next step is to delete the admin ID and all the links and posts associated with it. This will be an added security measure since most hackers try to hack the default admin account first. Plus, this will also give you more space to work with. ii. Delete the default about page and make one of your own which has your own customized title and URL. iii. Change your permalinks and explore options such as custom structure to make your blog and domain more search engine friendly. iv. The next step is to either remove or rename the default category of your posts. Make sure that it is in accordance with your websites theme. v. Make new link categories and either delete or rename the default ones. In Wordpress, the default name for links is Blogroll. You can change it to something that reflects your brand and product line. vi. Configure and activate the Askimet Plugin in order to ensure that your blog is not contaminated by spam in the comments section. vii. Revise your image access settings as an added security measure and to facilitate your activities. Please make sure that the folder that you refer or point to has the needed write permissions for Wordpress uploading. viii. Have a look at your privacy settings and ensure that your default settings are not blocking search engines from indexing your domain.

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Basement Riches by ix. Have a look at your discussion settings and change them in accordance with the way you want to handle them. You can disable comments if you want to go for a static website. x. Change your reading settings in accordance with how you want your website to be. The reading settings will establish whether your site will act as a blog or static page. xi. Make sure that you have all the necessary plugins such as Askimet, a database handler, an SEO plugin, a page sorting plugin, a sitemap generator, and a Google sitemap generator. xii. Install a brand new theme that is more in tune with websites theme to give it a personalized touch. xiii. Install and configure necessary widgets which will give you added advantages and more personalization. xiv. Once you are done with all these things, you should now being writing. Make sure that your content is relevant and interesting.

VI.

Getting 1800 for just $2.99 from kall8

Toll free numbers are a great way to interact with the different parties involved in your business and they give off an air of credibility and professionalism. On the other hand, personal phone numbers seem extremely casual and are a nuisance to manage as well if you change your location. Most businesses change their locations as they grow and expand and this could mean changing telephone numbers very frequently if you dont have a toll free number. A toll free number will enable you to maintain consistent contact with your customers no matter where you are.

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Basement Riches by It is also possible to get a toll free phone number that reflects your very own brand or popular product. For instance, KFCs toll free number is 111KFC-KFC, whereas Mc Donalds number is 111-BIG-MAC. Getting toll free numbers such as these will make it easier for your customers to memorize your contact number. This will in turn help you gain more exposure, recommendations, and profits. It will also serve to be a great instrument for customer service as well as it acts as a dedicated source of communication between the business and the customer. Therefore, if you are staring off with your business, you should get your hands on a toll free number to get off on a professional start. Look for different options that you have in this regard. In this section, I will elaborate on the service offered by Kall8 in this regard. It is a wellbalanced toll free service that offers everything that you want from a toll free number. It gives you all the usual perks of a toll free number and also gives you the option of tracking all the toll free numbers that you have in real time. VII. Good Features Of The Kall8 Phone Service

Here is a list of features of the Kall8 Phone service which make it stand out among the rest: i. It has a web call button that integrates a button on your website which will allow your customers to directly call you from the website. All they have to do is enter their number and they will be connected to your toll free number automatically.

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Basement Riches by ii. With Kall8, you have the option to accept voice messages, fax messages, or both, depending upon your requirement and

convenience. iii. Using Kall8, you can setup a conference call for a maximum of 25 people. It is very easy to setup the call and you are charged in accordance with the per minute rate of each caller. iv. You can obtain a virtual calling card that you can use to call anyone anywhere with your Kall8 number. v. The Kall8 service provides a lot of options when it comes to call blocking. You can block individual numbers, or block numbers according to area, state or city codes. vi. You can control the maximum length of the voice mails that you receive. This will help you use the Kall8 service in a more economical manner. vii. You can set the call forwarding option to forward calls to a total of 800 numbers at any single instant of the day to facilitate your customers in contacting the right person in your company. viii. You can select your Kall8 number as the number that shows up when somebody calls you on your toll free number. This will help you differentiate between business and personal calls since you will most likely be called on your toll free number with respect to some business matter. ix. Using Kall8, you will be able to track all your calls which will in turn help you determine the efficiency of your calling system.

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Basement Riches by VII. Trademark, Copyrights and Policies

A trademark is basically any name, word, design, symbol, or a combination of two or more of these elements that distinguishes one business or brand from another. It is basically the representation of the brand in the market. A service mark is primarily the extension of the concept of trademark in the services industry. So if you own a business that deals with tangible products you will have your own trademark whereas if you deal in services, you will have a service mark.

In the business world, it is extremely crucial protect your brand using trademarks since it ensures that only you can use a certain symbol or word to identify your brand. This will help you maintain the standard that you have set in the market. For small businesses, it is a means of getting attention and asserting their place in the market.

Therefore, it is very important to make your very own logo if you are starting off with your business. Here is a list of tips that you should follow to make sure that you come up with a logo that is in accordance with your business motto and image:

i.

The first thing that you should determine before making your logo is your target market. This will help you come up with a logo that will be more likable in your intended audience.

ii.

Conduct brainstorming sessions for formulating your business logo. Communicate exactly what you want this logo to represent to all those involved in the brainstorming session and start discussing. Get

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Basement Riches by some creative people involved in this process to ensure that you come up with something innovative, original, and attractive. iii. Go for an image or symbol that reflects your business and product line. It can be something every simple or intricately designed. Just make sure that it is something that your audience will find appealing. iv. The font that you sue in your business logo is very important as well. There are a lot of fonts available online and you can choose one in accordance with the entire them that you are going for. If you want to be really innovative, you can even get your very own font designed. Please ensure that it is something that might be reproduced by your designer easily. v. Colors are very important and they give rise to different emotions in people. Selecting a good color that represents your business is very important. In this regard, you can study the colors that your competitors are currently using to gauge the colors which are popular with your target market. Examine trends and decide on your colors accordingly. vi. Make sure that your logo stands out and is able to grab the target markets attention. Dont try to follow someone elses technique. Your logo should be able to assert the fact that you are unique and have something new to offer. vii. You can circulate your sample logo in the target market to see if it fares well or not. You can take feedback from your prospective customers and incorporate the same in your logo to make it more in tune with what the market wants.

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Basement Riches by VIII. Copyrighting Your Business Logo Once youve decided on your business logo, the next step is to copyright to ensure that it is only used by you and not other businesses which wish to cash in on your brand name. Here is the sequence of steps you should use to register and protect your business logo using copyright law: i. The first thing you should do is put your logo onto something tangible, such as paper, a hard drive, CD, etc. This is very necessary because if your logo is not is a tangible form it cannot be protected by copyright law. ii. The next step is to register your logo with a relevant third party which will provide you the required certificate which will ensure that your logo is protected. The certificate has the time and date on which the logo was registered on it to avoid counter claims. You should indulge in this as soon as possible to avoid being deprived of your logo. Please make sure that you dont do for the Poor Mans copyright method which consists of registering your email and email yourself. This will not be of any use in the court if someone uses your logo. iii. Make a copy of your copyright certificate and keep it with somewhere safe in case you ever face a case of infringement. There are some online copyright registration services that can hold a copy of your registration certificate, in case such an event takes place. You can use their services if you dont want to occupy yourself with protecting your copyright certificate. Maintain a copy of your registration certificate in the event infringement occurs.

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Basement Riches by iv. If there were more than one people involved in the process of making the logo, make sure that you keep the details of their specific contributions. IX. Determine Who Owns The Copyright To Your Business Logo It is very important to establish who exactly own the right to reproduce the logo. If you dont take care of this detail, there might come a time in your life when you yourself wont have the right to reproduce your logo. By default, the person who makes the logo has the right to reproduce it. However, things are a little different in the business world because most business owners hire creative parties for the logo designing part. Here are the things you should take care of in such a case: i. When you hire someone to make your logo, make sure that you make them sign a detailed contract that states that you own the copyrights of the logo. ii. If the logo was designed by someone else who is employed by your company, make sure that you ascertain the fact that the logo that has been created is the companys property and not the individuals. iii. If you want to, you have the option of transferring some or all of your copyright laws to another party. iv. You can also license your logo to another business if you want to. This means that you can give another business the permission to use your logo for a specified period of time for a certain cost or other benefits. However, in this case you will still retain all the copyright and the company that you have granted rights to cannot influence your copyrights in any way.

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Basement Riches by X. Difference Between Copyrights And Trademarks Copyright is different from trademark. Copyrights basically protect the artwork associated with the logo. On the other hand trademarks protect everything that distinguishes your brand from others. This includes name, slogan, symbols, words, or any other entities that you wish to associate with your brand. Hence it is as essential, if not more, to get a trademark for your brand name as well or you might have to give it up to someone. Here is the sequence of steps that you should follow to achieve get trademarks for your brand representations: Step 1 Go to USPTOs website and look up your tentative brand name to see if it is registered already or not. There are many search criteria available that you can use to execute this task. Each criterion comes with its own set of definitions and parameters. You should read all these carefully to ensure that you are carrying out your research in the right direction. Step 2 Once youve determined that your tentative brand name isnt being used by anyone else, write down a detailed description of your services and products. This is because USPTO requires you to submit a description of your offerings while obtaining your trademark. It should include details of the items and as well how you are planning on marketing and selling them in the market.

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Basement Riches by Step 3 You will also have to give representations of your business logo and name. These are simply sketches of the same. These are required to investigate that your representations are not too similar to someone elses. By the same principle, USPTO will also ensure that someone else doesnt go for a brand representation that is too similar to yours. Step 4 After this, the last step is to file your trademark application by using USPTOs submission service TEAS (Trademark Electronic Application System). You will receive a confirmation and serial number from the site and you can use it keep track of the approval process. XI. Setting Up Virtual Office And Its Importance As the name suggests, a virtual office does not exist is a tangible form; instead it refers to an office in which the concerned individual work from their homes and communicate with each other through resources such as the telephone and the internet. It is a very revolutionary and attractive idea because it allows people to work together while retaining their freedom to choose the environment in which they are most comfortable. XII. Benefits Of A Virtual Office There are many advantages associated with the concept of virtual offices and they are as follows: More personal freedom

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Basement Riches by Increase in every individuals productivity since they can now work as per their own schedules A lot of money is saved since the expenses associated with trips to the office, meals, individual computer systems, etc. are nullified. Lesser amount of work stress More active lifestyle since a person can engage him or herself in physical activities as he or she deems fit. XIII. Setting up a Virtual Office Now that you know the benefits of a virtual office, the next step is to set it up. There are some essential things that you will need in this regard. These include computers that have the specifications required to run the applications associated with your line of work. Other than that, you will need an internet connection, telephone connection or cellular connection, fax services, photocopying services, and a specific mailing address. This will act as the address of your office and you will receive all your mail at this address. You should also have a strong and professional website to act as a source of communication medium between you and prospective customers. Apart from all these tangibles, please ensure that you have all the paperwork covered. You will need tax identification numbers and business licenses. Please ensure that the kind of business that you are dealing with does not have any additional paperwork associated with it. Once you have everything covered, you are all ready to start off with your very own virtual office.

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Basement Riches by

Chapter-5

Image, Credit, Loans and Tax Issues for Your Home Business

I.

Projecting Your Image you are successful in

Remember that credit is money. Benjamin Franklin

If

projecting a positive image of your business and brand in your target market, it means that half

of your work is already done and dealt with. This is why most business personnel are seem roaming around in crisp and ironed clothes that seem extremely professional; they know that giving off a professional image is very important. However, it isnt only your personal grooming that is important; rather everything that you put on display in front of your clients or prospective customers should be impeccably groomed and polished. Such an approach will convince your prospective clients that you know what you are doing and they will start trusting you. Imagine this: if you saw a realtor drive a good for nothing car, would you consider doing business with him or her? Of course not. Hence it is very

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Basement Riches by important to give off the impression that you are successful. This convinces people to believe that you are good at what you do. Therefore, it is very important to focus on seemingly irrelevant details when you are running a business. Remember that your prospective clients and customers will observe you from every angle to judge how able you are at handling your business. If you give off the image that you are falling apart, theyll probably believe that your business is falling apart as well even if that is not the case. Always take care to ensure that you dont end up repelling your potential customers. Look at everything around you from the point of view of a prospective customer. Ask yourself if you would like to conduct business with someone who sits in a dingy little office? Make sure that everything and everyone involved in your business give off an extremely professional and contained impression. Revamp everything that you think might put off the customers and it is also a good idea to involve those people in your business who can talk convincingly. These techniques will help you convince your customers that you mean business. II. Ways of Creating Positive Image of Your Business

In todays modern world, business transactions arent only limited to face to face interactions; rather there is a very high probability that your prospective customers would Google your name and brand before approaching you in person. Therefore it is essential to have a very good online presence as well.

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Basement Riches by Your online reputation is very important and it may be tarnished very easily by someone who has had a bad experience with your brand, whether it was your fault or not. Hence, as the owner of a responsible business, you should try to maintain a strong and positive online presence. Here are a couple of things that you can try to create a positive image of your brand in the online world: i. Start Off By Googling YourselfGoogle your name and find out what is being said about you online. Go through the results carefully and investigate the reasons behind the views which have been shared, whether they are good or bad. Dont be demoralized in case you have any bad reviews; this section is aimed at correcting this image and the rest of the items in this list are aimed at helping you receive precisely that. The point you should concentrate on is that at least you know what is being said about you in the online circles. ii. Cater to the negative reviews Most business owners think that simply ignoring the bad reviews posted online will make everything better. However, this is not the case and this approach only aggravates the situation at hand. The sane and logical approach is to address these issues. You can use sites such as Yelp.com to see the reviews left behind by people and respond to the same accordingly. If someone had a bad experience with your product and has turned to the internet to share his or her opinions, you should approach them and set the situation right by

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Basement Riches by fixing the problem at hand. Such a proactive approach will not only satisfy that one particular customers, but also leave a positive impression on other users going through the posts. iii. Begin Blogging Blogging frequently is a very good technique that you can use to push the negative reviews about your company down the search engine results. Although SEO algorithms change on a constant basis, they are always on the lookout for good and informative content. Make sure that your blog is very informative and relevant for your customers. This way they will gain popularity and fill up the visible search results obtained through search engines. iv. Using Press Releases If you want to press down a negative review on an immediate basis, you should give a press release. This will go directly to the top of search engine listings; nevertheless, it wont stay there for very long since they lose their value as the days pass by. In order to sort this problem, you can give press releases on a periodic basis to push all those negative search results down the list. v. Maintain A Presence On Social Media Search engines such as Google give a lot of points for social media presence. Therefore, you should have a constant presence of social media resources such as Facebook and Twitter. Using these mediums you can also ask your loyal customers to leave behind

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Basement Riches by positive reviews regarding your company on sites such as yelp.com and Google+. This will in turn dominate over all those negative reviews. It is also very good for interacting with your customers and gaining their trust with the passage of time. vi. Sign up with some forums related to your industry Conduct a search and you will find many online forums that are specific to your industry. Join those forums that have good ratings and start contributing actively in them. Always remember to leave behind your websites link in your signature. Try to develop a positive and authentic online presence; try to reach out to prospective customers online and impress them with your impeccable and strong online presence. vii. Use Search Engine Optimization Another thing you can do is ensure that your online resources such as blogs, website, and social media pages are SEO optimized. The choice of good and relevant keywords will push you higher up search engine rankings and this will help you gain more exposure. And if you share good and relevant material, this will help you develop a solid position on the World Wide Web. viii. Share Information After Careful Consideration Before releasing any information or quoting anything online, make sure that its authentic and relevant. Once you put out something online, it always stays there and there is no way to retrieve it back

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Basement Riches by completely. Therefore it is very important to think through first before sharing something. Ask yourself if the information that you are sharing will cast a positive or negative image on your business. Also make sure that its interesting and relevant. ix. Use Photos For Gaining Advantage Sharing your photos online will help you develop a connection with your prospective clients. Nowadays, people want to see the face of the person they are conducting business with. Putting up your photos will help you gain trust and hence better returns. You can also add keywords in your photo tags to improve your search engine ranking. x. Look For Domains That Contain Your Brand Name If your reputation is wrecked pretty badly in the online world, a quick way to cover this up is to buy many domains which contain your brand name. Now launch smaller websites that are related to your business and share what you have to say on these websites. These domains will automatically gain precedence in search engine listings and will push all those negative reviews out of sight and hence out of mind. People usually engage in the exercise of discussing their experiences with certain products online. On the downside, its usually the unhappy users that engage in this activity rather than those who are content with your product. Hence, you should try your level best to keep yourself updated with what is happening in the online world. In accordance with the same,

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Basement Riches by you should try to correct your image and appease those who are unhappy with your product or service. III. Tips About Small Business Credit

Most of us associate negative connotations with the word credit; however, this isnt necessarily true. In fact, there are many instances when you will require strategic use of this credit to maneuver your business towards success. The key to ensuring that you dont end up falling in a pit is managing your credit and cash flows effectively. IV. Different Kinds of Small Business Credit

If you are the owner of a small business, here are some options that you can go for obtaining credit:

Personal, SBA, and Bank loans Credit lines offered and extended by vendors. Rented or leased offices, equipment or warehouses. Business oriented credit cards which are subject to certain advantages and terms.

While searching for a viable source of credit, make sure that you explore those options which are specific for small businesses since they are specifically designed in accordance with your business needs. i. Advantages of Small Business Credit

If you are double minded about the use of credit for your business, here are a few advantages of the same to put your mind at ease:

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It can help you in making necessary fiscal arrangements for various investments that you need to make while starting your business.

If you have a good and reliable credit history, you will be able to obtain future loans and credits more easily.

A good credit history will end up giving you a good credit rating which will promote the image that your business is very stable financially. This will in turn enable you to explore new fiscal opportunities.

A good business credit will make it easier for you to keep your personal finances from your business ones.

Business credit cards are a very good source of added security measures and protection against fraud.

Business credit cards are tools through which you can make your business more productive since they speed up your purchases, streamline your bookkeeping activities, and centralize your bill payments.

ii.

Getting Your Hands On Small Business Credit

Loans: In order to get your hands on business loans, you will first need to formulate an elaborate business plan that is equipped with all the necessary details such as the aims and history of your business, your financial status, and all those factors which may affect the success of your business. Lines of credit and leases: This type of credit is usually obtained and negotiated with owners of the required equipment and property, and vendors. It isnt necessary, but a solid business plan may help you in landing this type of credit as well.

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Basement Riches by Credit cards: To get your hands on a business credit card, the first thing that you should do is investigate credit lines, interest rates, and other relevant features of these cards. Once youve made your choice, you c an submit an application for a business credit card with the selected bank along with all the necessary business details. The bank will then review your application and approve it if its convincing enough. iii. How To Build A Solid Credit History

If youve managed to get your hands on sufficient small business credit, the next step you should concentrate upon is managing it effectively in order to build a good credit history which will be useful for you in the future. There is no need to panic. Most of the practices that you have to execute in order to manage your business credit are those that you use already to manage your personal expenses. These include:

Ensuring that you pay all your bills on time Keep your eye on interest rate trends Carry out extensive research before settling down for a certain small business credit option.

Make sure that you have a solid plan to ensure that you pay back everything that you have borrowed.

Keep your business and personal credit separate.

The crux of it all is that you should develop the habit of using your business credit option only when you have to and pay it off as soon as possible. Remember that credit is a means through which you can support your business, not sustain it.

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Basement Riches by It is a very good tool for gaining financial stability but you have to be very stringent when it comes to its use in order to ensure that it delivers the results that you are hoping for. V. Using Image to Access Credit and Loans

Most businesses, whether they are big or small, require business loans at some point in their professional tenure. In order to get your hands on the loan, you have to convince the lending party that you have a good credit history and the money that you are borrowing will end up promoting your business in the right direction towards success and better profits. This section is dedicated to everything that you need and should be aware of in order to get access to loans and other credit sources. i. Introduction

Access to a small sized business loan may be easy or difficult depending upon the amount of risk involved in your business endeavor. In order to get a loan, you have to convince the lender that the money that their money will be used for a profitable cause. Furthermore, you will have to explain why exactly you need the money. Most small businesses require business loans for taking care of everyday expenses such as equipment, start up costs, and fixed assets. Be confident when you are applying for a loan. If you have prepared yourself well and have a solid credit history, you will be able to convince the lender that you deserve the loan that you are applying for. You should also back up your application with a strong business plan.

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Basement Riches by ii. The importance of personal credit history

If you want to get a loan, your credit history is perhaps the most important element in this regard. The credit institution or bank, which you have applied to a loan for, will probably want to see your credit history before anything else. Using this, they determine a persons creditworthiness, which is defined as the debtors ability to pay off the loan. Therefore, it is important to ensure that your credit history has all the important elements. Here are some tips for you in this regard: 1. You can obtain your business credit report from one of the following three institutions: Equifax, Experian, and TransUnion. 2. You should be aware of your credit score because:
o o

The credit score requirements vary from vendor to vendor. The credit score is basically a reflection of your debt, payment, and credit history.

3. Go through your credit report thoroughly and get rid of possible inaccuracies and mistakes. 4. Prepare yourself for explaining things such as missed payments. iii. The importance of a business plan

It is always recommended to prepare a good business plan before approaching a credit history and asking them for a loan. Remember that you have to convince the lender that your business plan is sustainable and practicable in order to get a loan. In this regard, the following are some tips that you can follow: 1. Get hold of all your financial statements.

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Basement Riches by 2. Find out the current worth of your business and make realistic projections about its future worth. 3. Describe all of your business assets in detail 4. Include your own information and bio data in the plan. 5. Include your market analysis in the plan. 6. Your business plan should be as detailed as possible, without compromising n relevancy. iv. Your loan proposal After you have all your necessary fiscal documents and business plan in place, the next thing to do is to write a professional and solid loan proposal. You should first get in touch with your prospective lender to ask for any specific requirements in your loan proposal. A typical good loan proposal consists of the following: 1. The Executive summary This will basically act as the cover letter of the proposal 2. The Business description Business History Current business activities The type of product or service that you are dealing with The legal structure of your business Your business location Your target market Your prospective customers Your competition in the market

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Basement Riches by 3. Your Managerial profile Give details for your education, experience, qualifications, and credentials 4. Your Financial details Your personal fiscal statements Your business fiscal statements Last years federal income tax return Detailed explanation of your businesss financial trends 5. Your business projections for the upcoming two years Projections of income Projections of cash flow statements 6. Request for loan The amount of money that you need for your business The manner in which this loan will be used 7. Share your repayment plan details Discuss the terms that you want and be prepared to negotiate on the same youre your bank. Give details of how and when will the loan be repaid. 8. Collateral Give details of the assets that you will use to secure the loan.

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Basement Riches by vii. Decide on the kind of loan that you need

When youve figured out all the financial details of your plan, the next step is to decide on the type of loan that you want. There are many types of loans available and common ones include: 1. Micro loans: This is a long term loan for small businesses and its value is under $35000. You can use this loan for your business requirements such as equipment costs and everyday expenses. 2. SBA loan: This is also a long term loan given by SBA (Small Business Administration). In order to get this loan, you will need a good credit history and collateral. 3. Development financing: This is another long term loan that is used to finance sizable fixed assets such as machinery, real estate, and renovation endeavors. 4. Lines of credit: This is a short term loan that is usually used to finance day to day operations. viii. Deciding on a lender

When you are done with all your preparations, the next step is to choose a good lender. 1. If you have already done business with certain credit institutions and banks and have had experience with them, they should be your staring point. Please make sure that you have a solid financial standing. 2. Explore and keep your eye on the best offer

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Basement Riches by 3. You should explore big banks as well as small ones. However, it is important to ensure that the bank you are dealing with has the authority to lend you the amount of money that you require. 4. Try out credit unions as well 5. Please ensure that the lender functions as per your needs 6. Always go for lenders who have experience in your line of business. Once you have chosen your lender, heres what you should do: 1. Before meeting the mender, fill out your application. 2. Make a presentation packet which has the following contents: 1. Loan proposal 2. Loan application 3. Business plan 4. Resume or CV 5. Supplementary visuals such as graphs and charts 3. Remember to make an appointment with your lender beforehand. 4. Dress up in a professional manner 5. Be punctual ix. Loan Approved

If your loan is approved by the lending party that you approached, the following is the ensuing sequence of steps: 1. Go through all the documents and conditions very thoroughly before signing. Get a good look at and understanding of all the important elements such as interest rates, collateral, and repayment schedule.

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Basement Riches by 2. Return the documents as soon as possible to leave a favorable impression 3. Maintain constant communication by: 1. 2. 3. Maintaining a strong relationship with your loan officer. Providing detailed reports on your businesss progress. Updating your loan officer regarding and problems that you are

facing. x. Loan not approved

If your loan is not approved, there is no need to feel like your business is a lost cause. Remember that there plenty of places that you can try and its important to stay positive. Before going to the next credit institution, you should do the following: 1. Talk to your loan officer and ask him or her why your loan wasnt approved. Once you gain access to this information, you can either work on what you are lacking or go for a new strategy. 2. You should take advice from your local SBA. Other than SBA, you can also seek advice regarding your financial options from business counseling associations such as SCORE or your local Small Business Development Center. 3. There are other fiscal options that you can try as well. These include: 1. 2. 3. 4. Grants from the government Nonprofit organizations funding Community organizations funding Interested Private investors

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Basement Riches by If you have an impressive credit history, along with a good business plan and loan proposal, you will be able to convince the lender to give you the much needed credit loan. It is important to be positive and confident when you approach the credit institution. Even if things dont work out at one institution, stay positive and work on your flaws. VI. Taxes Deductions on Home Business

Small businesses usually use the term tax deduction to refer to legal business expenses. It basically incorporates the income tax that is deducted from their business income on an annual basis. There are some tax deductions which are particularly applicable to small businesses, which allow these businesses to have lower tax rates than usual. You should have a detailed look at all the strategies and tips that you can use to make the most out of tax deductions. Here is a list of business expenses on which you can claim costs as tax deductions. The list isnt completely comprehensive. Its purpose is to give you a better idea of the kind of costs that you can claim via tax deductions: a) Accounting & Legal fees b) Advertising expenses c) Automobile expenses d) Bad Debts e) Bank Charges f) Business Taxes & Business Licenses g) Collection Agency fees h) Conference and Convention fees

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Basement Riches by i) Expert Advice j) Interest expenses k) Insurance expenses l) ISP fees m) Membership Dues n) Meals and Entertainment expenses o) Office Rent expenses p) Office Supplies expenses q) Postage & Courier expenses r) Private Health Service Plan (PHSP) premiums s) Promotion expenses t) Property Taxes u) Repair & Maintenance expenses v) Salaries of employees w) Telephone/Telecommunications expenses x) Travel expenses y) Utilities z) Home Business Tax Deduction aa) Expenses Related to Home-Based Businesses

While working with tax deductions and your business expenses, you should also be aware of the concept of Capital Cost allowance in order to utilize it efficiently. Visit the following page to get a better idea of this concept: http://sbinfocanada.about.com/cs/taxinfo/g/capcostallow.htm

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Basement Riches by There are many strategies that you can try to maximize your tax deductions and cover your business expenses in the best possible way. Visit the link below to get a good idea of how this may be achieved: http://sbinfocanada.about.com/cs/taxinfo/a/taxstrategies_2.htm Most people engage in home businesses for reasons such as family matters and the need of a more comfortable and laidback environment. However, there are many tax deductions that apply to home businesses as well and the owners of such businesses should be aware of them. In order to qualify for receiving this advantage, there are certain conditions which should be met. Your house should act as your principal hub for business. It should be a place which is used for earning your income and meeting clients and customers. i. What Amount Of Cash Can You Claim As Tax Deduction If You Run A Home Business? The amount of cash that you can claim is dependent upon the area in your home that you utilize for your business. A simple formula that you can use is to find out the total area that you are using and divide it by the total area of your property to find out the deductable amount. There are tax softwares available as well and you can use them for this purpose as well. These softwares will provide you all the information that you need.

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Basement Riches by ii. Are Utility Bills Applicable For Tax Deduction?

Yes, utility expenses such as heat and electricity maybe subjected to tax deduction. Please make sure that you keep your utility bills to claim the same. iii. Home Maintenance Costs

These include costs such as property repairs, maintenance costs, and cleaning materials and services. These may be subject to tax deduction since they are a part of your home business. You can also claim a portion of your home insurance for the same. iv. Home Ownership Expenses

If you are running a home based business, a portion of your property is being used for business reasons. Hence, you can subtract a part of your property taxes because of your business expenses. Other than that, you can apply tax deductions to your Capital Cost Allowance and mortgage interest as well. You should discuss all this with your accountant before making any claims they affect the future value of your house. There are many authorities that can help you figure out the details of what you can claim or not when it comes to tax deduction on home based businesses. For example, if you live in Canada you can use a chart called Calculation of business-use-of-home expenses, found in a form available with the Canada Revenue Agency, for this purpose. Also, please remember that the amount that you are claiming should not exceed the net income that you are getting from your business.

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Basement Riches by v. What Qualifications Do I Need To Be Able To Claim The Home Business Tax Deduction? This is perhaps one of the most common questions that comes into the minds of those people who are planning on claiming tax deductions. In order to claim the home business tax deduction, the first thing that you should ensure is that your home is your central business place. Your home should be the principal hub where you meet your customers and clients. If there are multiple places where you are conducting your business and from where you are earning your income, you wont be able to claim these tax deductions. As pointed out before, there are many kinds of deductions that you can claim if you run a home based business. The next section will reveal how you can claim the tax deduction applicable on home businesses, once youve determined that you are authorized to receive the same. vi. Claiming Your Home Business Tax Deduction

If you meet all the necessary requirements, the first step in this regard is calculating your business expenses and categorizing them. Since you are conducting business from your place of residence, you can only claim a percentage of the total expenses. This percentage is calculated using the total area of your property that you are using for business. As I pointed out before, taking the ratio of the two quantities will give you a good idea of the amount of tax deduction that you can claim.

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Basement Riches by Lets take an example. Suppose that you are using a room for conducting business and the size of that room is 12 by 12 feet. Lets suppose that the area covered by your entire house is 1440 feet. So the amount of taxes that you can claim as business expenses are 144 divided by 1440, which is equal to 10 percent. Once youve found out the percentage that you can claim, the next step is to multiply it with your total home expenses to find out your business expenses. You can apply this percentage to all those expenses that are directly related to your business. These include cleaning materials, utility bills, telephone bills, repair costs, and others. Other than that, you can also claim tax deduction on other expenses such as mortgage, insurance, property taxes, etc. If you have the house on rent, you can claim a portion of the rent as well as per the same percentage. Lets take another example to make things clearer. Suppose that you run a home business, and as per your calculations, you have determined that your total relevant expenses are $10,000. Now as per the theory above, you can claim a total of 10 percent of these expenses as business expenses, which comes out to be $1000. Now if you conduct a part time business in your home, things will be a little different. Lets suppose that you run a consulting service in your home for five days per week. In order to calculate your business expenses, count the total number of hours per day that you work and divide it by 24. This will be the percentage of expenses that you can claim. You can also perform these calculations for a week instead of a day.

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Basement Riches by Ill elaborate on the same using the example above. First of all well calculate the daily percentage. Suppose that you work for 10 hours per day. The daily ratio may be obtained by dividing 10 by 24. Now you can multiply it by the expenses to determine the weekly expense that you can claim: 10/24 x 1000 = $416.7 If your business is operated for only 5 days per week, you will have to reduce this amount accordingly: 416.7 x 5/7 = $297.6. This is the amount that you can claim if you are involved in a home based part time business as per the above mentioned specifications. Please remember that the amount that you claim should not be more than the income that you are generating. These are all the details that you need to know to claim tax deductions on your business expenses if you are conducting a business from your home.

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Chapter-6

Marketing Your Product

I.

Defining Internet Marketing

Internet marketing is a very vast concept and accordingly it has a lot of definitions. It is also known as online marketing and it is an extremely important tool that is being used by businesses
The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. Peter Drucker

all over the world these days to march towards success. Whether you have an online business or not, internet marketing is a very effective means of getting your message across to people located all

over the world. The choice of using it as a marketing strategy is completely up to you but as an owner of a business, you should know that most successful organizations have included it in their marketing mix in order to make the most out of their marketing plan. In fact, there are some businesses whose marketing plan is solely based on internet marketing. II. Goals of Internet Marketing

At its core, businesses and organizations indulge in internet marketing to attain one or more of the following objectives:

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Basement Riches by Convey the companys message regarding its products, services, and image to both current and prospective clients and customers Carry out research regarding current and prospective customers and examine market trends Engage in online selling on products, goods, or advertising space. III. Essential Components of Internet Marketing

Internet marketing is currently being practiced by different businesses in different ways. However, there are some essential common elements that these internet based marketing strategies have in common: i. A website consisting of all the necessary elements such as images, audio and visual elements, text, and relevant information regarding your business. A website is primarily used to establish your identity in the online world. It will act as a hub of information for people who are interested in using your products or services. ii. Search Engine Marketing (SEM) is basically aimed at promoting a brand by attaining a higher ranking in search engine results. This may be achieved by purchasing Pay Per Click ads, buying Pay For Inclusion listings, or indulging in Search Engine Optimization. This is an extremely popular form of internet marketing these days.

iii.

Marketing through email is another essential element of internet marketing. It basically comprises of distributing information regarding products and services to prospective customers and getting their feedback to incorporate it productively. These ends are achieved

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Basement Riches by through the use of email. Email marketing maybe thought of as the online version of post mail marketing. iv. Placement of ads and banners on popular websites by paying a certain amount of fee is another component of internet marketing. It is similar to posting advertisements in newspapers and on billboards. v. Online press releases basically comprise of publishing interesting news regarding your business in the internet community. It is a good means of gaining popularity. vi. Blog marketing basically comprises of using interactive online forums such as blogs to market a brand. Businesses either start their own blog or maintain an active presence on popular and relevant blogs in the online world to achieve this end. While using other blogs for marketing, they leave behind their website links in the comments section of the blog in question. vii. Marketing through articles comprises of writing interesting and informative articles regarding your products and services and publishing them online. Articles usually spread around very easily on the internet. viii. Social Media marketing is a new yet extremely effective method of internet marketing. It involves the usage of social media resources such as Facebook and Twitter to interact with prospective customers. IV. Home Based Businesses And Internet Marketing

Since home based businesses dont have concrete physical locations for client interaction and information dispersal, a website might prove to be a very good source for them to establish a solid ground. Using a website, they can easily disperse information regarding their products and services

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Basement Riches by among their target market at very low rates. Rather, they can also sell arrange to sell their products online using the same. Internet marketing is a very suitable option for home based businesses since it allows them to establish a strong presence in their target market at very good rates. Hence, if you are running a home business, remember to include internet marketing in your overall marketing plan. V. Which Internet Marketing Strategies Should You Go For?

The right internet marketing mix for you is dependent upon your personal taste as well as your line of business. For example, if you cant stand spam, you should probably take email marketing off the list. However, I believe that if you use every tool in a strategic way, you might be able to avoid the problems associated with the same. For instance, when it comes to email marketing, you can keep a registration process on your website and only send out emails and newsletters relevant to your product only to those people who register at your website. This will ensure that your contact is limited to those people who have shown an interest in your business. Similarly, a set of pros and cons hold for the other internet marketing strategies as well. You should base your decision on the requirements and modus operandi of your business. Remember, you should know how to use the strategy at hand to your advantage. VI. Costs Associated With Internet Marketing

The strategies of internet marketing that you settle down for will be dependent upon your budget as well. Fortunately though, internet marketing is very cheap compared to traditional marketing sources.

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Basement Riches by However, even this could be a source of thought for small start ups and therefore it is important to think everything though. If you want to launch a website, you will also need to get a domain name for it and register it with the relevant authorities. However, the cost of this entire exercise is very low and is affordable for even those businesses that are just starting out. Now comes the pricey bit; it is very important to ensure that the content that you share on your website is relevant and interesting in order to attract customers. If you are good with aesthetics and IT, you can do this yourself which will save you some cash. However, most business owners lack both the elements stated above and they usually go for a professional web designer to ensure that their website is up to the mark. While you are finalizing the content of your website, it is very important to cater to SEO strategies as well in order to ensure that your website is found by prospective customers. You will need to find out as much as possible about SEO in order to pull this off. This might require you to make some additional investments but it will pay off in the longer run. SEO is very effective at ensuring that your websites turns up in searches conducted by prospective customers. When you are done with your website, you can either maintain it yourself or appoint a webmaster to take care of it for you. Including advertisement strategies such as Google Adwords and PPC (Pay per click) may turn out to be useful for you as well. The good thing about them is that they have very flexible packages. You can decide on how much you want to pay for each click that you advertisement receives and this will in turn determine the amount of exposure that you will receive. You

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Basement Riches by can also convince other brands and businesses to place advertisements on your website and make cash out of the same. Hence there are a lot of options that you can exercise when it comes to internet marketing. VII. Examining And Tracking Results

Most small businesses have limited resources to start off with. Therefore, it is essential for them to monitor the internet marketing strategies that they are using to determine if they are producing the desired results or not. Keep track of your marketing plan and replace ineffective marketing strategies with new ones to come up with the most suitable internet marketing blend for your business. This will not only help you achieve better results, but also learn a lot about how things work in the virtual community. This information will help you make the most out of your marketing plan. VIII. The Importance of Flexibility

Remember that you wont get your results overnight; studying and tracking the effectiveness of internet marketing strategies is a gradual process and you will need to demonstrate necessary patience in order to reach the right conclusion. There is a lot of competition in the business world and you should always be on your heels. Always be flexible with your marketing plan and be ready for making adjustments to the same as per requirements. If you have a good marketing plan and a level head on your side, you will be able to achieve your desired success with the passage of time.

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Basement Riches by IX. Using Google adwords

Google adwords is perhaps the most popular version of PPC advertising and it being used by small and big companies alike to make the most out their internet marketing plan. PPC advertising is a very effective tool for directing relevant traffic towards your site and making some money by hosting relevant advertisements on your website. X. The Mechanics 0f PPC Advertising

In PPC, you place your advertisements and banners on websites that are relevant to your business line and search engine result pages. Whenever someone clicks on your placed advertisement, you pay the advertising party. Basically the amount that your pay for advertising is directly proportional to the number of clicks generated. The cost per click that you have to pay is dependent upon the keywords that you choose and the rank that you are willing to settle down for when it comes to advertisement displays. The more popular the keywords are, the more you will have to pay. Likewise, if you want your advertisement to be displayed at the top of the page, you will have to pay more. XI. Using Google Adwords

Using Google Adwords is very easy. All you have to do is create a new account, decide on your keywords, type in your advertisement and then place your bid for the keywords. You can also decide if you want your advertisement to be displayed on websites, Google search result listings, or both. This selection feature also allows you for decide on individual

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Basement Riches by websites on which you want your advertisement to be displayed. All you have to do now is wait for Googles decision on your offer, which is usually made very quickly. XII. Learning about Google AdWords

If youre new to Adwords and are looking for some useful tutorials on the same, you can find all the help that you need online. There are tutorials available which are designed by Google itself which will help you with this task and help you learn the difference between Adwords and other PPC sources. XIII. Using Social Media

In todays world, the concept of social media has taken the entire world by storm. From teenagers to billionaires, everyone is using social media to meet their ends. However, there are still many people who dont know what exactly social media is and how it is being used in the sphere of internet marketing. Social media resources basically consist of extremely cost effective online tools and forums that combine technology and social interaction to connect people from all around the globe to one another. Examples of social media resources include Facebook, Twitter, YouTube, and MySpace. Because of social media, businesses can now reach out to their current and prospective customers and promote their brand and product line in a new light. It has helped business owners to give their businesses a face

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Basement Riches by and interact with other concerned businesses and customers in a light and informal manner. However, once you indulge in social media, you have to ensure that to contribute actively to it on an everyday basis. If you dont give it the attention it requires, it will not serve its purpose. You are probably thinking that social media is a low cost means for small businesses to reach out to market. However this is not so; there are many huge corporations and personnel who have used social media resources to achieve new heights of success. These include: i. ii. iii. iv. Absolut Vodka BMW Dunkin Donuts Barack Obama

Now that you are aware of the role that social media in todays business world, it is time to learn about its possible role in your marketing campaign. Marketing campaigns are primarily aimed at promoting a product or service in front of prospective customers and here is how social media can help you achieve that: i. It gives the business and the personnel involved an identity. This identity maybe used to communicate and bond with prospective customers. ii. It may be used to form beneficial relations with those people who might not have known about your business outside the social media circle.

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Basement Riches by iii. It will allow you to interact personally with the your current and potential customers. This will make them feel like you are not just a business brand but an actual person who is willing to address their relevant needs. iv. It may be used to form links with relevant peers who may help connect your business with its target market. v. Its interactive mode and two sided communication will help you obtain valuable feedback. However, there are some things that you should keep in your mind while using social media as an internet marketing strategy: i. Remember that social media is a means of supporting your entire marketing plan not sustain it. Therefore you should use other marketing strategies with it in order to make an effective marketing plan. ii. There are no specific right or wrong kind of people on social media so its alright to be yourself. Remember that people are communicating with you via social media resources to find out more about you, not your business. They can get all the business details from your website. iii. Its important to be consistent with the usage of social media. It wont be of any use it you dont indulge in it on a regular basis. So far, the concept of social media has worked for everyone who has used it in a strategic and smart manner. From employers looking for talented employees, to small business just starting to, to multinational corporations who want to strengthen their grip on the market, everyone is using social

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Basement Riches by media to achieve their ends. The basic role of social media is to enable you to communicate with and be accessible to those who are interested in your products or services. It also enables your customers to form a personal relationship with you which in turn generates valuable feedback and gives birth to customer loyalty. It can be used in multiple ways to achieve different ends and you can tailor its use in accordance with your needs. For most business which are used to the traditional form of marketing, stepping into the social media arena might seem very overwhelming. However, the best thing about social media is that it does not require a lot of investment. This means that you can experiment as much as you want without worrying about losses. Nevertheless, remember that social media develops your business identity so you have to be careful about how you portray yourself. In a nutshell, social media resources allow you to:

Disperse knowledge and expertise Get valuable customer feedback Provide a forum where customers can interact and help each other Build customer loyalty Using Facebook

XIV.

There was a time when Facebook was only thought of as an entertainment tool for teenagers and kids. However, it has now expanded far beyond that and is being used to big multinationals and small businesses alike to increase their profits and expand their customer base.

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Basement Riches by The following statistics will further support the above assertion. From February 2008 to 2009, it was observed that:

The count of Facebook users in the age group of 35 to 44 increased by an overwhelming 51 percent.

The count of Facebook users between ages 25 and 54 increased by 47 percent.

Facebook users aged between 26 and 34 increased by 26 percent.

Hence, it may be said that Facebook is no longer an ordinary tool merely limited to teenagers. You can use it as a very effective means of scoring new clients, promoting your old and new product line, and maintaining mutually beneficial relations with old clients. It can also be used to create a positive buzz about your products and brand. Facebook is loaded with many tools which may help you achieve the above mentioned targets. However, the following two are perhaps the easiest and most effective tools which are being used:

Facebook Pages Facebook Groups Facebook Pages

XV.

You can create a new Facebook page for your business to give it an identity on this popular social media resource. Perhaps the best thing about these pages is that they are free; they provide you with a means of strengthening your presence for no cost at all! Your current and customers have the option of becoming fans of your brand. Once they do so, they will

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Basement Riches by receive constant updates regarding your product line while you will get free publicity in return. There are a lot of content sharing options available for you on Facebook. Apart from the usual text information, you can post photos, advertisement videos, messages and various applications to popularize your brand as much as possible. Everything that you post appears in the mini feed of your fans. There are certain things that you should keep in your mind while making your Facebook page. The information that you share is dependent upon the kind of business that you conduct and the sort of image that you want to create. While starting out, Facebook will provide you with three choices about the kind of business that you are running. These are as follows:

A Brand or a Product A Local Business An Artist, Band or a Public Figure

If you maintain your Facebook up to date and as informative as possible, you will end up expanding your customer circle substantially. XVI. Facebook Groups

Facebook groups are different from Facebook Pages in the sense that they are focused on a group of people instead of your brand or business. It is very easy to make a group. Simply login to Facebook and click on the link labeled Groups in the main menu to get started. It is a very helpful feature

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Basement Riches by for conducting informal discussions regarding various aspects of your business. The fan feature isnt available in Facebook groups. In order to contribute to a group, an individual has to become a member of the same. Due to this, the interaction is limited to the group only unlike the Facebook page. XVII. Using Video or YouTube

YouTube is perhaps the most popular video website in the online world. It is also an extremely effective social media tool which may be utilized by businesses all over the world to launch a free of cost yet extremely interactive advertisement campaign. There are more than 78 million users of YouTube and if you brand video turns out be popular among them, the effect will be phenomenal. However, there are around 150,000 videos that are uploaded on YouTube everyday and in order to stand out among them your video must be very well made and professional. It is based upon the viral effect so its very important to ensure that you are portraying a ver y impressive image of your brand in your video. Now that you know how YouTube works, the next step is to incorporate it in your social marketing spectrum. The first step in this regard is determining the category of your product or service. Remember that the main objective of this tool is not to merely upload a good video but to interact with possible customers. Hence, it is important to ensure that you choose the correct category for your video.

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Basement Riches by Once youve decided on the category, the next step is to make the video in accordance with the likes of your prospective customers. There are many options that you can try out in this regard: i. ii. iii. Informative how to videos Flashy and entertaining videos based on your products or services Podcasts

Whatever type of video you decide to go for, remember that user interaction is essential. Moreover, please dont overdo things or you will end up pushing the customers away instead of attracting them towards your brand. In order to help your brands and businesses, YouTube also launched the concept of brand channels which could be used by businesses to set up their pages consisting of their videos. This is a very good tool that you can use to gather subscribers and keep them hooked onto your brand by launching gripping and relevant videos. If you want to find out more about this option, you should call up the YouTube authorities and talk to them about the perks and cost associated with this option. With this option of showcasing your brand through videos, you can have a lot of fun. So remember to enjoy this whole process. XVIII. Using Local Trade Shows to Market Your Product

These days, there are a lot of trade shows in the market; in fact, it seems like there are too many trade shows. Quality exhibitors involved in this business are of the opinion that there should be regulatory body which

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Basement Riches by should be in control of determining the quality and quantity of tradeshows on exhibit. This would eradicate the more than necessary overlap between the contents of different trade shows and their timings. The fact that there are too many shows of display makes it very difficult for buyers to decide on which show should they attend. Most buyers are on a tight budget and it is very difficult for them to attend multiple shows. Hence, they have to be extremely selective in this regard. If you want to take part in a trade show, you should first find out the essential details about the trade show before booking a booth at the same. In fact I would recommend you to go and walk the trade show in order to get the best possible picture; even if you find out all the essentials, such as traffic, the attendance of buyers, and the press coverage involved, it wont be the same as walking the trade show yourself. Therefore, this is the first thing that you should do before deciding on a trade show for show casing your brand. Now youre probably wondering about why you should get involved in a trade show in the first place. In this regard, I would like to inform you that trade shows are very significant for the growth of your brand. Trade shows are very good platforms for communicating and connecting with buyers and obtaining relevant feedback from the same. You can meet your competitors at trade shows and compare your performance with them directly. In such conventions, bloggers and other parties who might enhance your internet marketing mix show up as well. Hence, they serve as very good opportunities for meeting and connecting with all the right people in your line of business.

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Basement Riches by You can compile a comprehensive list of prospective buyers at trade shows, even if they dont buy anything from you. The key to this is to identify those buyers who might be interested in what you have to offer. If a buyer lingers by your exhibit, immediately ask him or her or a card and exchange formalities. You can then add the buyer to your list of potential future buyers. i. Preparing and planning for a tradeshow

A lot of planning and preparing is involved in the task of setting up a trade show. There are a lot of things that you will need to take along with you such as business cards, brochures, samples, booth decorations, line sheets, and lighting sources. Here is a list of things that you should ensure while you are preparing for your trade show. Remember that these are business dependent and some of these might not apply to you: a. A comprehensive send-in contract. b. Interact with your sales representative on a personal level and discuss your business or concerns with him or her in detail. c. Make sure that you send in the deposit d. Select your booth size and decorations beforehand. e. Get your hands on the trade show manual and go through it in detail. f. If the management of the trade show is demanding insurance, arrange it. g. Make travel arrangements and book your hotel.

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Basement Riches by h. Look at and decide on your advertisement or sponsorship options. Sometimes, opportunities for sponsorships are enlisted in the manual of the trade show. If the information isnt shared in the manual, ask the representative of the trade show about possible options in this regard. i. If you want to attract a good amount of people to your booth, make some food or beverage arrangements. j. If you think that there is a lot of work involved and it will be difficult for you to conduct everything on your own, you should hire temporary help. You can also ask you friends or employees for assistance in this regard. k. Place the order for staff badges l. Consider all possibilities and decide on whether you will take your products in suitcases to the show or send them directly. m. If you want, you can also order extra lighting and electricity. n. If you want, you can also order booth cleaning. o. Send in your final deposit. p. If you need labor to put up the shelves or arrange equipment and furniture, order it beforehand. q. Find out the schedule and be present at the trade show as soon as it opens to prepare as much as possible. XIX. Getting Responses and Analyzing Market

Conducting a market research will enable you to determine the kind of new products and services which will fare well in your target market. Other than that, market research also reveals whether the current products and services being offered by your business are as per the demands and

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Basement Riches by expectations of customers or not. Answers to relevant market related questions reveal whether there are any changes that a business can make to its products package, design, or other features to make it more attractive. The results obtained from this marketing research maybe used to make a new marketing plan, create a new business, or gauge the current progress of the business. Hence, it is very important to ask relevant questions which are aimed at revealing important trends and facts related to your target market. If you dont pay much to your method and depth of research, you might end up obtaining wrong results which will push your business further down the drain. XX. i. Different Kinds Of Market Research Primary Research

The basic aim of primary research is gathering relevant data to analyze the current trend of your sales and gauge the success of your business based on the same. It also takes strategies used by your competition into consideration, and is hence very significant when it comes to analyzing your competition. Primary research maybe conducted through the following:

Interviews Relevant Surveys Specific Questionnaires Focus groups aimed at getting direct feedback from the target market

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Basement Riches by ii. Secondary Research

In secondary research, relevant data that has been published already is analyzed for achieving certain ends. Using this data and the consequent analyses, you can identify your target market, learn more about your competition, and establish benchmarks. Your target market maybe segmented into categories depending upon factors such as lifestyle, demographics, age, behavior, etc. iii. Collection of Data

For a business, particularly a small one, to succeed it must be fully aware of its customers and how its products or services are thriving in the market. In todays world, the competition is overwhelming to say the least and if you slack off when it comes to research, your competitors will crush you with their proactive approach in no time. There are basically two kinds of data that you can collect namely quantitative and qualitative data. Quantitative data is basically obtained through methods based on mathematical analyses and require a hefty sample size. These in turn reveal important numerical and statistical trends regarding the aim of your investigation. Different things that you can investigate in this regard include the average time users are spending on your website, the source of your leads.

On the other hand qualitative data is inferential data that is basically obtained by fine tuning quantitative methods. With the help of this data, business owners can learn more about the customers point of view and

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Basement Riches by define problems that the business is currently facing. In this method, the size of the sample is very small. XXI. i. Some Common Mistakes Made In This Process Relying solely on secondary research If you solely rely on data published by others for conducting your market research, you will never understand the issue at hand in its entirety. It is indeed a good place to start but it shouldnt be the end of your marketing research since there are many other factors involved. ii. Relying solely on web resources If you base your research on common data gathered through search engines, the picture that you will get will not only be incomplete but inaccurate as well. If you have a limited budget but want to conduct detailed research, go for other resources as well such as business centers, local libraries, or college campuses. iii. Conducting survey only on those you know Sometimes, owners of small businesses only conduct surveys on people they know such as family members and friends. However, one should refrain from this exercise since its not necessary that they are your customers as well. Therefore it is essential to obtain the data that you need from actual customers who can give you an objective view point regarding your products and services.

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Basement Riches by XXII. Product Psychoanalysis for Boosting Sale

Once youve determined what exactly your target market needs, the next step is to incorporate those needs in your product in order to satisfy the end customer. Now in order to accomplish this, you must first determine the exact characteristics or features of your product which can bring about the desired effect. You would be surprised to know that there have been instances when even the most capable businesses have failed to take notice of the most important aspects of their products simply because they didnt look at it from the customers point of view. Therefore, it is necessary to psychoanalyze your products before releasing them in the market. The following detailed worksheet will help you achieve this goal. Once you are done with the contents of the worksheet below, you will be able to judge how your product and company is viewed by your consumers. Using this information, you can rework your marketing plan and marketing approach. XXIII. i. The Worksheet Visit a private where no one is going to disturb you. Take your product along or if it is too heavy, take a picture of your product with you. Also, take a pen, writing pad, and your sales literature along with you. ii. Examine your sales literature and note down the ten features or characteristics that you think are the best ones in your product. After

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Basement Riches by this, jot down five reasons why your customers should buy your product. Once you are done, keep this piece of paper in a secluded corner. iii. Get in your comfort zone and imagine your home life. List down ten things that you use on a regular basis in your daily life. Dont take cost into account. They should just be items of daily use. iv. With each product, write down the reason why you use that product and the specific brand that you usually go for. v. Now examine your answers and highlight those words which signify your personal needs, wants, fears, and desires. vi. This part of the routine was meant to see through the eyes of a typical consumer. As you can see, its the functionality that matters the most not the nitty gritties that you concentrate on while devising your marketing campaign. Once you are done with this, you should ask yourself the following questions: vii. If a customer of yours indulged in the exercise described above and listed your item, what would he or she have written down corresponding to your item? viii. Now look at your answers and compare it with the data obtained in the last question. Do you see any similarities between the two? Devise your similarity scale and rank your answers in accordance with the similarity observed. ix. Now imagine that martial law has been imposed and a government official comes to you and tells you that if you dont give him a good

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Basement Riches by answer to how your product is serving the public, its production will be discontinued. Think about this question and write down its answer. x. Ask yourself that if your product prices and those of your competitors were fixed at the same rate, why should your target market go for your product? xi. List down five abstract words which define your product such as dependable, beautiful, etc. Now circle those words which you think that your buyer might to justify buying your product. Try this exercise again if you arent convinced about the results. xii. Imagine that you are on the phone with your customer and he is asking you to convince him to buy your product in a short period of time. Think over the question and make a list of all the concrete reasons why your product is better than your competitors. List these reasons down. Once you are done with this regime, you will achieve two valuable resources. Firstly, you will get your hands on all the characteristics of your product that distinguish it from your competition. Secondly, you will also get a look at your product from the customers point of view. XXIV. Benefits of Market Analysis

As I pointed out before, marketing research and analysis is very important when it comes to identifying relevant trends of the market which are affecting your business. If you engage in thorough and detailed market analysis, you will be able to gain substantial advantages over your competitors. Some of these advantages are as follows:

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Basement Riches by It allows you to communicate with your current as well as prospective customers in a manner that is beneficial for both parties. It is very useful for spotting hidden opportunities for business growth in the market. It helps in minimizing the risks involved. It may be used to gauge your reputation in the market objectively. It can help you identify and address possible problems and issues. It can help you plan the future of your business. It can prove to be very useful for identifying relevant trends. It can help you determine your current position in the market.

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Chapter-7

Tips for Successful Sale

I.

Choice of Product

Choosing the right product for your business is perhaps the most important yet difficult decision make since the To succeed in sales, simply talk to lots of people every day. And heres whats exciting there are lots of people! -Jim Rohn that you will have to progress dependent of your upon

entire business is the same. There

will always be a lot disposal and you product very wisely.

of choices at your should choose your

It should be something which is profitable, in demand, and in line with your interests. Here are a couple of important factors that you should consider before deciding on a product: i. It should have a certain market demand. You should identify your target market the size of the same. Remember that it should be big enough to sustain your business. ii. It should be profitable. The higher the profit margin, the more your business will grow.

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Basement Riches by iii. It is preferable to go for a consumable product which will be purchased by consumers on a regular basis. iv. v. It should be in line with whats popular in the market. You should keep your competition in mind. If you come up with an original and innovative product, you will face less competition in the market. vi. You can go for private label products. These are products that you would enjoy selling but are manufactured by another party. vii. While making your product, ask yourself if you would let your family and friends use it. It is very important to ensure that the quality of the product is up to mark. viii. In the beginning, you should maintain your focus on a limited number of products. However, once youve developed your niche in the market, you should diversify your product line by introducing new, innovative, an profitable items. II. Verifying and Checking Suppliers

Choosing the right supplier is very important since the supplier plays a crucial role in the entire supply chain of your business. With the expansion of the business world and business opportunities, there are plenty of suppliers available in the market. However, the number of scam suppliers has increased substantially as well due to which it is of utmost importance to ensure that the supplier that you go for is genuine. Here are a number of tips to get you started in this regard:

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Basement Riches by i. ii. Always ask for company details, VAT, or a copy of Tax ID. Google your prospective suppliers to get your hands on as much information about them as possible. iii. Look up the bank details of your prospective suppliers. Go to websites such as bbb.org in USA or oft.gov.pk in UK to find the details of your suppliers. Chances are that if they show up on such websites, they are legit. iv. Obtain the contact information of your suppliers and verify the same. Most scam suppliers share false contact details due to which you will be able to cross off a lot of suppliers off you list by using this tip. v. Try to verify the supplier through government authorities. For example, in China every legitimate company has to register itself with the Bureau of Industry and Commerce (BIC). If you are in China, a quick call to the BIC will verify whether the supplier you are planning on dealing with is legit or not. See if there are such requirements in your state as well. vi. Have a close look at the payment terms of your suppliers. Scammers never use Letter of Credit payments since they can be traced. They always go for untraceable methods such as PayPal and Western Union. vii. Ask for customer referrals and check them in detail before proceeding.

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Basement Riches by viii. If a supplier is offering you a product for an unbelievably low price, its probably too good to be true. Always compare the prices being offered with other suppliers to get an idea if you are dealing with a scammer or not. ix. If you are purchasing branded products from the supplier, please check to see if they are authentic or not. Check their documents and make sure that they have the required permission from the brand to sell those items to you.

Using these tips, you can identify whether you are dealing with a fraudulent supplier or not. You can never be too careful in this regard due to which I recommend that you keep your eyes and brain open while you are finalizing your selection. III. Name Your Product

The exercise of naming, or renaming, your product is very crucial. The name that you decide on will be the representation of your business in the market due to which it is necessary to ensure that it is relevant yet attractive. Whether you are planning on naming a product yourself or are hiring external help, here are a couple of things you should know: i. You should know what exactly you are naming or renaming and why. Most people rename their products simply because it seems like a good way to grab attention. However, you should refrain from such measures since such steps might cause confusion in the market. Hence you should have a concrete justification for this exercise.

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Basement Riches by Other than that, you should know your product. Ask yourself if its a standalone product or is it a part of a series of products. Such questions will help you come up with a product name that is relevant. ii. You should know your target audience since your ultimate business goal is to sell as much of your product as possible to them. You can ask your customer base for suggestions or you can put yourself in the customers place and think from his/her perspective. Many

companies even hold competitions to get the customers involved in the product naming exercise. It is important to not only keep track of their likes but dislikes as well in order to ensure that they arent put off by the name that you choose. iii. In order to come up with the perfect name, it is essential to know exactly what ends do you want the name to achieve for you. You need to spell out these ends in order to ensure that the name that you come up with is covering all the grounds. iv. The name that you choose should be original and innovative. It should be a reflection of your business and should make you stand out among your competitors. IV. Pricing Issue

There are three fundamental methods that you can use to price your products. They are as follows:
A. B.

cost-based pricing competition-based pricing

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C.

customer-based pricing i. Cost-Based Pricing

In cost-based pricing, the price of the product includes the cost of business operations and the cost of ingredients. The cost of business operations includes costs such as wages, transportation, raw material, rent, and others which arise during the production process. Once you have established this cost, the next step is to decide your profit and add it to this base price to come up with the final product price. This profit may be accommodated in your product price as per one of the following three methods: Mark-up pricing which entails adding a profit percentage to the cost of the product Cost-plus pricing which entails adding a profit percentage to an unknown product cost Planned-profit pricing which is basically a blend of the cost of the product and the total profit

We will now have a detailed look at these three methodologies:

ii.

Mark-Up Pricing

This method is favored by many businesses and organizations that have a variety of products because it is very simple to use and incorporate. A profit percentage is decided first and then the same is added to the production cost to come up with the final product cost. This strategy is usually used by

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Basement Riches by retail stores because they sell off products that belong to a variety of vendors.

iii.

Cost-Plus Pricing

This strategy is useful for those businesses who do not know their production costs. The difference between mark up and cost plus pricing is that the buyer and seller negotiate and settle down on a profit percentage while assuming that the cost of production of the product in question is unknown. For example, if your business deals with selling custom order products manufactured by other businesses, this strategy could prove to be very useful for you for minimizing risks.

iv.

Planned-Profit Pricing

This method is different from the other two because it focuses on the total profit of the entire business instead of the per unit price. It takes both per unit costs as well as other business projections into account for the formulation of the pricing structure. This kind of method is suitable for those businesses engaged in the manufacturing arena.

v.

The Cons Of Cost-Based Pricing

Here are some disadvantages of cost-based pricing that you should consider before settling down for it: It does not take customer demand into account It does not take market competition into account

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vi.

Competition-Based Pricing

In competition based pricing, the final price of the product takes the cost of business operations, raw materials, and the effect of competition into account.

A major benefit of this pricing strategy is that it focuses your attention on your competition and the whole industry in which you are involved. This will enable you to know exactly what your competition is planning and doing and you can tailor your products price to beat them accordingly. In this strategy, you will have to carry out extensive research regarding your competition. Here are some areas which you should cover in this regard:

Establish what exactly are you selling Identify your direct competition Identify your indirect competition Find out the number of companies and businesses that are currently involved in your industrial line

When it comes to pricing, there are three methods that you can use in competition based pricing:

Basing your product price on your competition Increase your consumer base through your price Use your price to aim for a larger market share

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Basement Riches by vii. Basing Your Product Price On Your Competition

Using this method, you will be able to set a product price that is comparable to your competition. If you manufacture and sell standard products then this method will work well for you.

If the products that you are offering are different from those offered by your competitors, you should first establish the degree of originality that is exhibited by your product. Using this information you can set a scale of comparison with your competitions product at one end and your product at a level that reflects that similarity between your product and your competitions. Using this scale, you can price your product in tune with the current market trends pertaining to your line of business.

viii.

Increase Your Consumer Base Through Your Price

This pricing method is also known as market penetration pricing. In this method, the company in question settles for a product price that will attract target customers away from the competition and towards the product. It is intended at penetrating into the market and establishing a niche in the same. In most cases, companies who go for this strategy, lower their product price in such a manner that it is below the general range of prices of similar products in the market.

This method of pricing is recommended for new businesses since it will allow them to compete effectively with established businesses. In the form

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Basement Riches by of lower product prices, they will have something to offer to the target market which sets them apart from the rest.

ix.

Use Your Price To Aim For A Larger Market Share

This pricing strategy is also referred to as market-share pricing and it is aimed at targeting and getting as many customers on your side as possible. This is usually opted for once the business has penetrated into the market and established its roots. It basically involves selling very large volumes of product in the market. It is usually practiced by established businesses which have a large target market.

x.

The Cons Of Competition-Based Pricing

Here are some disadvantages that you should consider before settling down for this marketing strategy:

It might end up neglecting your production costs. It needs more time and market research. Your competition can easily copy your prices. Customer-Based Pricing

xi.

This pricing strategy is also known as value based pricing. In this strategy, the business owner bases the price of the product on customer demands and needs. If you are manufacturing an original and innovative product, this strategy will help you price your product in accordance with target market.

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Basement Riches by There are five customer based pricing methods that you can use. They are as follows:

Use the product price to support the image of the product Use your product price to boost sales Design your price range to generate interest in different customer segments

Use your product price to increase the volume of sales Use your product price to excite consumers and reduce the size of inventory

xii.

Use The Product Price To Support The Image Of The Product

In this method, you have to be consistent. Your price should be a direct reflection of your product and should be in accordance with what your consumers expect. For instance, if you aim for the bargaining customers, they would prefer lower prices; however, customers who are brand or quality conscious are usually of the opinion that the quality of a product is directly proportional to the price.

xiii.

Use Your Product Price To Boost Sales

Most businesses that opt for this strategy go for lower product prices to attract consumers. Others give special perks and bonuses to encourage consumers to go for their products. Examples of methods that you can use include:

Coupon books

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Holiday specials Low priced products Promotional offers such as buy one get one free Design Your Price Range To Generate Interest In Different Customer Segments

xiv.

If you have a very good idea about your market, you can segment it very easily into distinguished groups. Depending upon this segmentation, you can price your products according to the people in these segments. Possible factors which may influence your pricing decision include age, income, location, social class, etc.

xv.

Use Your Product Price To Increase The Volume Of Sales

This method is also referred to as volume pricing and involves discounted rates on large volumes of product in order to motivate consumers to buy hefty amounts of product. Most of the times, such offers are made to established customers who show an interest in buying large amounts of product. It is also a useful technique to sell off large volumes of perishable products that are accumulated in your inventory.

xvi.

Use Your Product Price To Excite Consumers And Reduce The Size Of Inventory

If there are items in your inventory that arent moving along at a fast pace,

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Basement Riches by you can accelerate their selling process by grouping them up with popular products in promotional deals.

Such packages are usually sought by bargain hunters. However, sometimes prestige seeking customers go for bundles as well if a high quality product is involved.

xvii.

The Cons Of Customer-Based Pricing

The following are some disadvantages of customer-based pricing that you should be aware of before settling down: Does not take production costs into account Does not take competition into account

xviii.

Pricing Your Products Effectively

In order to price your products in an effective manner, you have to be flexible, research oriented, creative, and alert. The most effective pricing strategy is the one the takes production costs, consumer demands, and the competitions strategies into consideration. Here are some tips that you can follow to ensure that your pricing strategy is successful:

You should be creative and innovative You should listen to what your customers have to say You should do your homework and necessary research It should be aimed at boosting your sales It should cover all the fundamentals

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It should be flexible Conclusion

V.

If you have gone through this book with utmost concentration and the spirit to learn, you are now a lot closer to realizing your dreams. Starting off with your very own business in todays competitive world is no easy task. You have to ensure that you start off strong and stay focused in the business game to soar through the same. There are a lot of things that you can do, depending upon the type of business that you have in mind, to get off a good start. Getting some capital on your side is a good idea. You can try out debt, equity, or specialty capital and if you think that they entail too much risk, you can go for methods such as vendor financing and insurance float. Having the necessary cash or items without any major investment on your part before your first sale can cut down the risk factor by a huge margin. With the right contacts and necessary help from this book, you will be able to achieve the same. As the owner of a business, there are a lot of things that you will have to keep in your mind in order to make it successful. In this regard, your product line is an extremely crucial. It should be made up of items that are original, innovative, yet in line with what the customer wants. Hence it is very important to keep your target market in mind while you decide on what to include or not in your product line. Another thing you should look out for is your competition. If you are starting off, it is important to first conduct a detailed market survey and learn about what your competition has to offer. If the market is already saturated with the products on which your business idea is based, you will have to offer something extra to win customers and

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Basement Riches by establish your niche in the market. This could be something like lower prices, or added benefits, or new features, etc. These days, a very popular business idea is selling already manufactured goods under your own private label. In this regard, it is very important to ensure that you have the right manufacturer or supplier on your side. You should take out the time, energy, and resources to analyze all your options in this regard and conduct a thorough background check on your suppliers and manufacturers. If you get stuck with a bad manufacturer or supplier, your business will suffer automatically no matter how hard you try to perfect all the other areas of your business endeavor. Once youve decided on your product line, the next part is to market it in an exceptional way to make it stand out among similar products. If you want to carry this out effectively, you will first have to carry out a detailed market survey and research. Find out what attracts your customers; do they like bright colors and savvy tag lines or do they prefer something sober? Other than that, you should always know what your competition is up to in order to be one step ahead of them. Moreover, this will also allow you to gain important information regarding what is popular in the market these days. Be prepared to invest in some research in this regard. When it comes to marketing, there are a lot of options today that you can use to spread your business besides the traditional ones. In this matter, internet marketing is a forerunner and in todays virtual times it has become essential for a business to have a good online reputation in order to succeed and survive. These days, there are some businesses that are

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Basement Riches by based solely in the online world and the internet is serving to be a great medium for them to thrive and flourish. There are many techniques which have been shared in this book which are aimed at ensuring that the reader is able to market his or her book in an effective manner on online as well as offline mediums. Once youve developed your brand, you have to ensure that no one steals it from you. Therefore I have discussed copyrights and trademarks in great detail in this book to enable you to take the right steps to protect your intellectual property at the right time. Through this book, I have tried to ensure that you get a good grip on the current business trends and how you can use the same to your advantage. I hope that you are now in a good position to start off with your very own business. Remember that you can never be too careful with your strategies and decisions. However, it is just as important to act at the right time in order to reap the rewards of a successful business endeavor. On this note, I wish you best of luck with your future entrepreneurial journey and hope that this book had everything that you were looking for to set off with a clear head on the same.

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