NHSBDC Business Tips

7 methods for attracting your first customers

The Planning Shop has taken some basic information for starter businesses and put it into a handy, brief chart featuring seven strategies you might think about using to attract your earliest customers. They are

1) Introductory offers: You can use these for a new product, new service or for a new overall business.  Provide deep discounts for a limited amount of time. One disadvantage of doing this is it may attract only 1-time bargain-hunters, not long-term customers.

2) Teaser rates or leader rates: This is the practice of offering something at a price that is so low the business is losing money on it. However, it’s a way to get customers in the door.

3) Offer freebies: This is a no brainer, but offering something for free for a very limited time has been shown to lure customers in, and to lead them to buying.

4) Offer samples.  If you can give samples of your product or service, a new customer will feel more comfortable buying from you down the road.

5) Daily deal. There are plenty of “daily deal” sites today where you can list a deeply discounted product or service for one day and see how many customers take advantage of it.

6) “Beta” testing: Ask your customers to participate in the development of a new product or service. People love to give input and, when they have done so, often turn into paying customers.

7) Get good reviews: Collect testimonials and positive reviews from people who are influential in your industry. Publish these on your website or social media networks, and use them in press releases and paid advertisements.

Ready to compete with other NH start-ups?

Two out of four start-up competitions in the state of New Hampshire have deadlines coming in the next month, according to information posted on the No Bull blog: 

The Holloway Prize Innovation to Market Competition championship round begins May 7. Open to students within the University System of New Hampshire, this prize is hosted by the Paul School of Business at the University of New Hampshire. The Holloway Prize is worth over $100,000 in cash and in-kind services and the championship round begins at 1 p.m., May 7 at Paul College. For more information on the Holloway Competition, click here.

The Manchester Young Professionals Network encourages and promotes entrepreneurship in the young professional community.  The competition is open to New Hampshire start-ups and applications will be accepted until April 18. This year’s winner will receive more than $55,000 in cash and in-kind services. The MYPN Start Up Challenge semi-final event is May 15 and the winner will be announced June 17 at Saint Anselm College. To learn more about the MYPN Start Up Challenge or submit an application, click here.

Watch for a total of four such start-up competitions every spring in New Hampshire, starting in early March.

How does your cash flow? You really should know

Cash flow management is one of the most crucial business functions within a small company.  Smaller operations are especially vulnerable to cash flow problems—simply the timing of cash going out and coming into the business.  For a small business, a patch of ill-timed payments due when no cash is coming in could easily spell disaster. 

It doesn’t have to be an extremely cumbersome or complex task to manage your small business cash flow.  It starts with a Cash Flow Analysis.  All that means is looking at the bills you’ve paid over the last few months along with the money you’ve had coming in. A deep look into income and outgo will show you some patterns and help reveal your reliable revenue sources and how stable they are from month to month.  You’ll want to note which of your expenses recur and how often.  Look at your account receivables and any sales forecast you might have to help predict the cash coming in.  

If your business outlay of cash doesn’t match up with its income, it’s time to consider making some adjustments.  Obviously, you can attempt to reduce your expenses in some way, or you can try to increase the amount of revenue you've got coming in. To increase money coming in, perhaps it’s as simple as offering a discount to any customer paying cash or paying earlier than the standard. Are you offering credit card payments? If not, you may wish to add that option. 

Next, review all the money that goes out. Could some of these expenses be eliminated? Could some be delayed or made into smaller payments? You may be paying some of your bills too “early” in order to help your credit profile, but is this really necessary?

This kind of analysis will help you avoid cash flow problems in the first place, or help you recover from one that occurs unexpectedly.

Find our Cash Flow worksheet here: http://nhsbdc.org/resource-library/cash-flow

Here’s more about cash flow projections: http://www.nhbusinesstips.org/2012/08/cash-flow-projections-got-you-confused.html

 

More women in manufacturing? Good for women, good for our economy

Did you know that average weekly earnings for manufacturing jobs in New Hampshire is $1044, compared to overall earnings for all private sector workers, at $805 weekly? That pay differential is just one reason that community colleges scattered throughout New Hampshire are working together to promote the idea of more women entering into advanced manufacturing fields. Women are encouraged to check out the Advanced Manufacturing Partnerships in Education website . The site lists open houses planned throughout the year at each campus. The schools are dedicated to providing certificate and degree programs that can lead the students into stable, better-paying jobs.

Women may also be interested in becoming part of the online community of these manufacturing educators at http://www.ampednh.com/about. The schools have worked with New Hampshire companies to develop the appropriate programs resulting in the right set of skills for graduating students. Follow news of these educational programs and a list of special events here: http://www.ampednh.com/news-and-events

 

Venture capital dollars were on the rise in 2013; technology sees record advances

During 2013, venture capitalists invested $29.4 billion in new businesses, a 7 percent increase over the previous year and a 4 percent increase in terms of the number of such deals that were signed.  Within that total funding, investments in Internet-related businesses were the highest they’ve been since 2001 and in software-related businesses, the highest level since 2000. One expert quoted in the report states this trend is due to advances in technology that have “changed the landscape of virtually every industry” and, he says that consumers are “eager to embrace technology at a faster and faster rate.” 

Biotechnology is included in the types of industries seeing tremendous growth in investments. Media and entertainment industries also showed strong growth. For the complete report, click here: http://www.pwc.com/us/en/press-releases/2014/annual-venture-investment-dollars.jhtml