- What I Learned on the Inside
- Every word matters
- Starting a New Business?...
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As little as a 5% increase in customer retention can boost profits by 25-100%.* |
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Trends, like horses, are easier to ride in the direction they are going.- John Naisbitt |
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73% of customers base their repurchasing decisions on the quality of service they received when problems occurred.** |
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| 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.
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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
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ACEX
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ACEX is business information exchange for mortage default servicing.
Location: Chicago, IL.
President:
Mary Hunter
Tips:
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Research your market extensively and listen. |
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Before you create a product, make sure you have listened to your customers. |
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In a start-up, it's critical to make sure personalities are a fit with the first people hired. |
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In a spin out situation, it's a good idea to have physical separation from the parent company so you can establish your culture. |
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Keep your message consistent - even while you are on the phone.
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