- What I Learned on
the Inside
- Every word matters
- Starting a New
Business?...
|
 |
As
little as a 5% increase in customer retention can boost
profits by 25-100%.* |
|
Trends,
like horses, are easier to ride in the direction they are
going.- John Naisbitt |
|
73%
of customers base their repurchasing decisions on the quality
of service they received when problems
occurred.** | | 
| Editor's
Note: The most difficult hurdle for most new businesses to
overcome is financing: you have the idea, but how do you get it off
the ground? Should you borrow from friends and family, seek private
angel investors, try to attract a professional venture capital
investor, or eschew outside investment completely and pursue a
slower, self-funded strategy? Jeff Kearl, head of sales and
marketing here at LogoWorks, came to work with us from the heart of
the dark and mysterious world of start-up financing, the venture
capital firm. Since his intimate knowledge of this important subject
is regularly sought, we have asked him share some of his insights
with you in a series of articles. The first installment in this
issue is "Sources of Capital." Next month, Jeff tackles the issue of
valuation in "How Much Do I Give Up." Finally, he asks the question
"To Raise, or not to Raise." We wish you success in growing your
business.
|
What
I Learned on the Inside
BY
JEFF KEARL
 About three and half years ago I joined vSpring Capital, a
leading early-stage venture capital firm based in Salt Lake City. I
correctly assumed it would be an unparalleled opportunity to learn how to
be a better entrepreneur. Not only was I exposed to the inner workings of
hundreds of small businesses seeking financing through the investment
evaluation process, but I was also able to observe the unique qualities of
the different entrepreneurs running each of the 26 portfolio companies
where we had equity investments. I remain grateful for the rich experience
I had at vSpring. Since joining LogoWorks, many of our customers
who are running small businesses have asked me for advice on raising
capital. The questions are generally about sources for capital, valuation,
and whether or not I think they should try to raise venture capital. I
thought this newsletter would be a good place to provide some general
answers.
Sources of Capital
First and foremost, the best
source of capital for financing a business is revenue from your customers.
Many entrepreneurs would come into our office seeking an investment and
say, "If I just had the money, I would be successful." By contrast, a
small number of entrepreneurs would say, "I'm going to be successful
whether you decide to invest or not. You can sit there and watch or start
helping me." Almost as a rule, we never invested in the dependent
entrepreneurs. Dependency is just not a trait... Full
Article Every
word matters
BY
DAWN MEEHAN
 Ask any marketing professional and they'll tell you it's
true: sometimes changing just a single phrase or word in a sales letter,
web page, brochure or flyer can significantly impact the response.
Every trained copywriter keeps this in mind when developing copy. We
know that the right words and strategies can literally win over your
readers. This is why we do a lot of research before sitting down to write.
We thoroughly study the market segment and try to understand the
psychology of a specific ad campaign.
Whether you use a professional copywriter, or a key member of your
staff, the following tips will help you write effective marketing
materials:
Discover Your Competitive Advantage
Do your
research. Learn about your competition. What's your competitive advantage?
Why should people use your product or service over another?
If you are offering a brand new product or service, tell your reader
what it is. Explain... Full
Article Starting
a New Business? Protect Your Personal Assets by Incorporating
BY
BUSINESS FILINGS INCORPORATED
 As a new business owner, or even as a business owner who has
been operating a sole proprietorship or general partnership, one item you
may consider is the decision to structure your business as a corporation
or limited liability company (LLC). Doing so helps protect your personal
assets from the debts and liabilities of your business. Given the
litigious nature of society today, this is often a very important and
common step. Corporations and LLCs are considered legally separate
entities from their owners. Because of this, the owner's personal assets
are typically regarded as separate from the assets of the business. The
owner's liability is often limited to the amount he/she invested in the
business. Incorporation can help protect the owner's house, car, etc.,
should the business be sued or face bankruptcy.
In addition to the personal asset protection incorporation provides, it
can also provide certain tax advantages, help establish credibility for
the business with potential customers, vendors, partners, and employees,
and can make raising... Full
Article
» Visit Business Filings
Incorporated
*JoAnna
Brandi, author of Building Customer Loyalty
**Michael
LeBoeuf, author of How to Win Customers and Keep Them for Life
|
 |
ACEX
|
|
|
ACEX
is business information exchange for mortage default
servicing. Location: Chicago,
IL. President: Mary
Hunter
Tips:
| |
| 1. |
Research your market extensively and listen. |
| 2. |
Before you create a product, make sure you have
listened to your customers. |
| 3. |
In a start-up, it's critical to make sure
personalities are a fit with the first people hired. |
| 4. |
In a spin out situation, it's a good idea to have
physical separation from the parent company so you can
establish your culture. |
| 5. |
Keep your message consistent - even while you are
on the phone.
| |
See
Full Spotlight
(with Video)
|
Tell
us what you think.
Is
there anything you"d like us to include in our next newsletter?
As a dedicated partner
for your organization, let us know how we can help you out. Click here
to send us a note.
|
