Product Review Page - 7 Key Elements that You Should Know

Product reviews are written to provide customers the information that they need. This is basically exercised to help users make more informed purchasing decisions and improve your customer’s shopping experience. And we all know how much customer’s value shopping experience right?

The structure of a product review is really simple and anyone can write one. A product review is consisted of an introduction, an overview, and a summary.

Your product review page’s introduction consists of a few sentences outlining the problem and introduces a possible solution for your prospect, in this part you need not go into detail yet. The overview portion provides the consumers of the product's capability, an explanation of how the product is used. The last part which is the summary is almost a repeat of the introduction, and contains a strong recommendation for purchase based on your conclusions.

In writing your product review page, the following key elements must be present:

1. A product review page should include images or videos. It will be a big help to your consumers of you take the time to include an image or video of the product or service that you are reviewing. This will assist your customer to visually connect your review with the product or need that they are researching.

Including a photo or video is so easy to do. You can take a photo of the product yourself; you can also try using an image from the merchant’s website, take a screenshot of the website, or use a picture of you using the product. For some products, it is applicable for you to present a before and after picture.

If you are planning on including a video, then your video can feature things like: ordering/using/results, taking physical products out of the box, or an explanation of the product and its features.

2. A good product review page also includes the product description. In your product description you can mention things like size, number of pages, features, ordering process, delivery/package details, benefits, expected results, your specific results.

Customers nowadays are more meticulous when shopping online. They are more careful because there are a lot of scams going on. People would like to know what exactly they are going to get if they order this product today.

If you were able to try the product yourself then include your personal thoughts and personal experience about the product or what made you decide to purchase this product. This helps your customers relate to how you felt when you were purchasing or deciding whether to purchase the product yourself.

3. Your product review page should also include your buyer’s description. Who is this product for? This product is not suitable for whom? No product, like nothing has been made that suits everyone. Be sure to describe the perfect buyer in a manner wherein your reader can easily decide if this is the right product for them or not.
The main reason why you write a product review page is made is to make sure the right people buy the right product.

4. Include proofs on your product review page. You can include two types of proofs on your product page. There are two types of proof to include in your product review, you need to prove that you have tried the product and prove to customers that the product really works.

Not everyone believes in product reviews; they feel that these reviews are biased. People are skeptical of product reviews and believe that reviews are based on payment or compensation. Your job is to prove that you have the product yourself, and you are providing your customer with unbiased review.

Proof can be achieved by using photos or video, by describing the product in more detail than can be found on the merchant’s website, mentioning unadvertised bonuses, and by addressing the negatives.

5. Your product review page can also include “negative comments.” If the product has any negative comments it is also advisable that you include those, it may be a negative comment about the product itself, or with the ordering process, etc. Adding negative comments will make your product review page objective and will dramatically increase the ‘believability’ of your product review. If you just mention the good stuff on your review page then chances are your customers would be skeptical.

Do not be frightened of informing people of the product’s negative side. They are probably already thinking it, so this is your opportunity to address those thoughts and help them make an informed decision about making the purchase.

The important thing is that when you present something negative in your product review page you immediately follow it up with the resolution.

6. A product review page must also include a call-to-action. This is one crucial part that should not be forgotten. Your call-to-action tells your reader exactly what they should do next, and it needs to include very specific directions with a smooth transition.

Take a look at the landing page where you will be sending your visitors to from your product review page, and frame your call-to-action in a manner which encourages them to click through and lets them know exactly what to expect when they do click on the button.

7. As always your product review page must contain keyword phrase. Every piece of content that you create on the internet should be optimized for a specific keyword phrase and your product review page is no different from this. You may be optimizing your review for the actual product, or you may formulate your review around a specific problem or need. Choose your keyword phrase so that you attract the ideal prospects.

Convince People to Buy - 7 Tips to Get People Buying

Persuasion this is an art wherein you get people to do what you want them to do. "It's how you tap into people's dreams and link your products or services or causes to the realization of their dreams – it's how you make them see it, hear it, and want it." The success of your online business is composed of the results of your ability to convince others to purchase from you and not your competitors.

Why should a prospect purchase from you and not some other website who offer the same product? What makes your business so special it would inspire a customer to choose your services over your competitor’s? What will it take to convince people to buy from you? You see this happening plenty of times wherein a prospect is so interested in your product however you still need to convince people to buy before they can make a decision. By observing them keenly and understanding what is going on with them, you can determine what it will take to convince people to buy.

If you find it difficult to convince people to buy, one problem might be that they do not believe what you are telling them. Would you buy from someone you did not believe? Probably not. So it is clear that your own credibility is critical to a successful sale. It does not take a genius to convince people to buy, all it takes is to understand the aspects of human nature that are often automatic and work at a subconscious level.

Here are some tips to convince people to buy:

1. Convince people to buy by coming up with your own customer and client list. This list you have made is a perfect way to show to your prospects how long you have been running your business and how many customers you have satisfied. Proving to potential customers that you have served a lot f people already is an effective way to convince people to buy. If others were happy with the results there is no reason why they should not try it out themselves right?

2. Convince people to buy by showing you have been in business for quite some time now. Show prospects that your business is “real” and you are going to disappear into thin air. It is obvious that the longer you have been in business, the better.
You usually some store signs stating their year of establishment, you see something like, "Established 1867" or some equivalent. Would you feel more comfortable buying from a well-established business? Probably. They are trying to show you their longstanding business solidity. So, in your goal to convince people to buy you have got to show to them that your business is here to stay.

3. Convince people to buy, show them what others are doing. More often than not people look to others and will often do what they are doing. Your prospects tend to look into others first when they feel uncertain. This psychological phenomenon is called “social proof.”

Customers feel more reassured or they feel like what they are doing is right if they base their decisions to what others are doing. So, show your prospects what others are doing now and convince them to buy from your online store.

4. Convince people to buy from your online store by showing user-generated reviews. User-generated reviews can have a massive influence on peoples' buying decisions. Program your website wherein customers or site users can write and leave reviews and express overall ratings for products and services on your site.
It is common knowledge that web users are more inclined to trust what people like themselves say, compared to marketers. Do not be scared of bad reviews (be prepared for that since that is part of business) people can smell sites that have been 'edited' a mile away, forcing them to simply not trust anything you say. Instead, be prepared to act quickly on your customers' feedback. Allow prospects to leave their views on your products or service, and in doing so, you would be able to convince people to buy from your online store.

5. Convince people to buy by showing the scarcity of products. Scarcity generates demand and encourages people to buy sooner. People want what they think they cannot have and social psychology would indicate that loss is a more powerful emotion than gain. That is why you often hear advertisers say, “Get it while supplies last.” This is a powerful statement used to convince people to buy immediately.

6. Convince people to buy by showing pictures and if possible, you can show videos. Imagery is a very powerful when you want to convince people to buy, hence increasing product sales especially for high value and luxury goods, so be sure to provide good quality images of products. These images will go a long way to reassure people about what they will be getting.

7. Convince people to buy by showing authority. The principle of authority states that those with authority more easily convince us. Websites showing authority and expertise are trusted more.

Obtain Customers Online

If you are running an online business, you already know by now that it involves a lot of understanding. As an entrepreneur, how well do you understand your market? As of now you feel that you are offering the best product or service in the online market, but is this what you target market needs? If you truly want to obtain customers online then you have to come up with a game plan, which will demonstrate how well you understand your market.

In an entrepreneur’s quest to obtain customers online they need to understand that, it is crucial to come up with the right strategies and determine the best goals and objectives. It is important that you obtain customers online because not only will these people help your business to profit they can also tell you as to when you should start looking to change direction.

Here are some tips how you can obtain customers online:

1. To obtain customers online you need to understand what the internet can do for your business. The internet has a huge influence on many people and to obtain customers online you need to know what to do with it. Since we all have different objectives in mind as an entrepreneur we need to understand what the web can do for our online business.

A lot of successful entrepreneurs that we see today chose to start an online business because starting a traditional business is admittedly costly. Nevertheless, the advantage of the internet is that you can obtain online customers from your computer and of course, it is not as costly. With an online store you are also able to market your business to the global community, for a little cost or at more often than not none at all.

2. To obtain customers online you need to provide customers with significant and important information. Many people use the internet to look for some information they need. If you are looking to obtain customers online then you have to be the one to supply them with the best information possible. If you are distributing an e-newsletter about online marketing, be sure it is the finest resource the customer will ever read.

3. Obtain customers online by harnessing the familiar. It is normal that people will fear something that is unfamiliar. Admittedly, shopping online is way different from actual shopping (traditional); there are various ways wherein you can make the experience less scary for your prospects. You are on your way to your goal to obtain customers online once you have eliminated this apprehension.

Drive Traffic to your Website

Many online entrepreneurs think that designing and publishing a website is everything they have to do. No sir. Developing / putting up your own website are just the tip of the iceberg. There is more to it than just putting up a website. You have to drive traffic to your website.

When it comes to running an online business, always keep in mind that you need to drive traffic to your website. You need to drive traffic to your site and you also want to make sure that it is relevant traffic you get. This is where many online entrepreneurs fail. For sure, they are able to drive traffic to their website however, without sales, it is pretty much pointless. Of course, there is a reason as to why they are not making as much sales as other entrepreneurs.

Here are some tips you can use to drive traffic to your website:

1. Drive traffic to your website by running a test. There are numerous and various ways wherein you can test your website. From layout to copy to design, there are various combinations of changes that may increase your website’s visitor to customer conversion rate. Keep in mind that the following elements should be tested:

- Your sales copy should be tested pay attention to the headline, the benefits, the guarantee, and of course your call to action.
- The order process should be kept as simple as possible, a complicated order process can turn-off any potential customer.
- Opt-in offer, so you can determine if you' are able to capture your guest’s contact information which can be used in the future.
- Site navigation, so you can figure out how many clicks it takes to buy.

2. Drive traffic to your website by creating links. The number of links your website has on various other websites determines the level of your popularity. Always make sure that you swap links with as many websites as possible as it helps in your goal to drive traffic to your website. You can have a separate page devoted solely for this purpose. The websites on which link will appear should be chosen with care and should be focusing the same set of audiences that you focus on.

3. Drive traffic to your website by starting an affiliate program. An affiliate program pays a part of their sale proceeds to websites whose links have helped the retailer in generating actual sales. You should focus on building a network of affiliate program whose products and subscribers can help you drive traffic to your website. Decide on the percentage of fee that you will compensate them with and always focus on getting right kind of group

Conversion of Prospects

Oftentimes we hear or read about the advantages of a work at home online business over the traditional business, this is true. There are a lot of advantages an online entrepreneur can receive. But before we go into that let us look at one hurdle most online businesses encounter. One hurdle that an online entrepreneur might experience is the conversion of prospects.

Unlike the traditional business wherein there is personal contact which gives sales people a chance to recommend items to people and if these people buy then the business was able to successfully achieve the conversion of prospects. On the other hand conversion of prospects with an online business is not as easy because personal touch or contact is not present. Although your sales letter might cover some points, there is more to it when it comes to conversion of prospects.

Here are some tips you can follow for successful conversion of prospects:

1. As oppose to a physical shop, where the customers can both physically check out the product before buying and obtain answers to their questions from the sales person, your website must offset this disadvantage by including a strong guarantee. Conversion of prospects can be easily achieved if your customers are confident in their purchase. By providing a strong and clear guarantee you are able to eliminate any doubts your customers might feel. Once doubts are eliminated then conversion of prospects should come easily.

2. Provide bonus or bonuses when a customer purchases a product from your site. This is a simple demonstration that you value and appreciate their purchase also this is a visible way of saying thank you. This is a proven technique businesses use for their conversion of prospects. Why? Because these people who have purchased from you will tell other people of their good experience with your website and how you have treated them. It also shows customers that you are willing to deliver more than what you have promised to them. Just a note when it comes to bonuses, make sure that it is directly related to the product they have purchased and make sure that you clearly state that you are giving this bonus as a token of appreciation.

3. Most prospects do not buy the first time they see or hear about your business. It would be advisable if you do follow-ups on them. Your follow up can be as simple as contacting them occasionally with new offers that you might have for them. Or it can be more complex such as publishing a weekly newsletter with useful information and articles. If you do not already have a way to collect their address, you can get it by offering a valuable gift that you deliver only by email or postal mail. Conversion of prospects can be achieved if you are diligent in doing your follow ups. In the conversion of prospects you can offer a special report, a list of sources or some other essential information they cannot get anywhere else. These are valuable to customers and prospects alike and the good thing about this is that it will not cost a lot on your part if you provide this.

Online Success

I came across a poster of a well known webmaster recently wherein it states that he is on-track to reach seven figures in revenues this year. That means a million dollar in revenues from a website that is not even a year old. According to the poster the revenues that he receives are mostly from a combination of contextual advertising, affiliate programs and banner advertising. He is receiving online success without even selling anything.

Regardless if this poster is true or not the web has changed a lot in the recent years and online success became possible. The internet’s growth is probably the most dramatic phenomenon to happen in years and because of this it opened doors for entrepreneurs who are looking for online success. By creating websites, many have realized their dreams of becoming entrepreneurs. Online success is what every entrepreneur dreams of because the rewards are very attractive.

The internet has brought online success to some however; there are many more people who cannot seem to make the internet work for them hence failure for online success. They sign-up with various programs, buy every possible business opportunities they can find all of which promises online success. All they earn is a couple of hundred a month, if at all.

So what does it take to achieve online success? Here are some tips for you guys to achieve online success we all want:

1. Value your customers. Despite the fact that the internet is the “new economy” this rule still applies: the most successful businesses are those able to create value for their customers. Meaning online success is still dependent on your customers. The reason why you put up a website is because you want to fulfill your customers needs be it information, product or service. Online success is possible if your give your customers what they are looking for.

The value you give your customers is important to your online success. The more your site is able to make your consumers lives easier or help them save money, the more your company will be valuable to them. It means not just creating an online brochure but guiding visitors, how using your website can actually assist them.

One major hindrance to online success is by creating a website that is primarily designed to pull off the fast money. Instead of creating a site where users could actually get value, they construct useless spam pages in the hope of tricking users and search engines alike. I assure you that you are so far off online success if you do this.

2. Focus on consumer service. One challenge that you might face on your road to online success is how to keep customer service alive and well in a medium where personal interaction is inherently limited.

One way of assuring online success is by keeping your website functional but at the same time personal. The design and content of your website should be based upon your prospects; you need to have a deep understanding of what your customers are, what they expect and why they need your product.

3. Go beyond what you have promised. We all know that customers love it when they get more value for their money. One way of assuring online success is to go beyond what you have promised, basically exceed customer expectations. There is a lot of hype on the internet, particularly among small online businesses (ever seen one of those websites with ridiculously lengthy sales letters that are full of promises?) These sites may yes attract customers the thing is many customers are left unsatisfied. However, if you under-promise to customers but over-deliver customers will be pleasantly surprised and love your site all the more for it!

4. Design the website for your consumers. Although a well-written, well-designed site which includes great content can make a positive impression on your prospects, the design should focus mainly around getting the visitor to take the action you want them to make.

Online success is gained if you focus more on what your customers want, and in designing your website these people are your best source of information. Seek the feedback of your customers and verify if your site works for them. If they think it’s not that great, what are the things that should be changed in order for them to be satisfied with your website? Listen carefully to their suggestions, and adjust your site accordingly. See what works, and what stuff does not.

5. Team up with the right people. In as much as you want to, you cannot provide everything your customers want and need. You want your site to be the destination of all web users when it comes to your topic, however achieving online success might be tough if your resources are limited. You won't be able to achieve what you want if you have limited manpower, technical capabilities, etc. Because of this you may want to team up with complementary websites to boost your content, provide more resources, and offer more tools for your prospects. Teaming up with the right groups or people can help increase the exposure of your website; build its reputation in your industry, and hence gain online success for you.

6. Center your efforts on creating a brand. The most accomplished businesses have established strong brands for their merchandise, some of these companies are Coca-Cola, Microsoft, Disney, McDonald’s, Mercedes, and others. On the internet we have Google, eBay and Amazon who have also built strong businesses based in part on great branding. These big businesses understand that an essential part of success is building strong brands – yet many small or home-based online business owners feel that creating a good brand is way out of their reach. Effective online branding does not require big budgets, just an understanding of what brand attributes you are trying to build which will eventually lead to online success. By making every transaction brand-relevant and providing your customers with brand-based value, you will increase the depth and stickiness of your customer relationships and assure online success for your business.

Bad Websites

Whenever you come across a bad website what do you usually do? I mean even if that website contains or offers the stuff that you are looking for you still end up closing it and your look for alternatives. This is a normal case most especially if you are having a hard time navigating.

You would think that over the past 10 years of internet, that websites would be of higher and better quality as compared before. But sadly this is not the case; there are just as many bad websites out there than ever before.

Since we are already discussing stuff about bad websites, I think that it is just fitting that we discuss some tips to help avoid building a bad website.

1. Before you publish a website make sure that you are 100% ready. One of the reasons why some entrepreneurs end up with a bad website is because they failed to plan for it. You should only invest on a website when you are ready to spend time and money in developing your website.

2. Entrusting your website to the pros. You may be one of many entrepreneurs out there who knows basic HTML and basic graphic design, however to avoid a bad website you have got to hire professionals to complete the job for you. It would be great if you can provide your own personal style to the site. An amateurish site is synonymous to a bad website. Your customers might think that you are not serious and you are not credible enough to handle their demands.

A bad website is just one reason why your prospects think twice about doing business with you, so do not give them a reason to leave you. Right now you might feel that you cannot afford the services of a professional website developer or website designer it would be advisable for you to wait until you are able to afford one or wait until you can work out a payment plan.

3. Have a clear objective in mind. A bad website is one which does not have a clear purpose. What is the main purpose if this website you have developed? Your website should support your business goal and should be in lieu with your marketing strategy. Avoid being one of those entrepreneurs, who plunged right into website developments without a clear purpose, hence the result was a bad website.

Ways to Profit Online

Like what I have said time and again the internet is one huge market place. There are various means and ways to profit online. There are literally hundreds of ways to profit online and it would be great if we can go over them one by one but sadly we cannot. So what I am going to do is cite the most effective and proven ways to profit online.

The following is a list of some of the more usual ways to profit online:

1. Start to write your blog and share valuable information.
One way to profit online is by writing and sharing information to random people. One of the great advantages of blogs is that it is very easy to get search engine traffic since the robots love freshly updated site. An effective way to profit from your blogs is through Adsense and selling space, products and services. This system is an interesting way to profit online because it has a lot of potential. You can meet new people through blogs, your posts can help some people, and you can make money from it. Blogging is not just a past time for some people; it's also their source of income. If you are good enough with writing this can be a full time job for you.

2. Selling other people’s products and services.
A fast way to profit online is my marketing and selling other people’s products or services. This money making scheme is one of the easiest way to profit online because all you have to do is find affiliate products which are readily available online. Check out affiliate products in large site such as Clickbank, Commission Junction and Amazon. As an affiliate you can earn up to a whopping 75% commission per sale.

3. Join and be counted in get paid to websites.
There are people who easily make extra money with get paid to (GPT) money making programs online. Joining GPT sites is another way to profit online it involves clicking on ads, get paid to place banners, get paid to surf, get paid to read email, and many more of this type. The best way to profit online through GPT is by referring other people to the program you have joined.

4. Online retail industry.
Since we are talking about ways to profit online, it is imperative that I mention eBay. eBay is one of the easiest ways to profit online. Each day more and more people sign up on eBay to either buy or sell goods / services. To start selling at eBay you have to open an account then after that you can start posting the goods / services that you want to sell. Do not be concerned about listing your items because it is going to be a systematic process. eBay will provide you with the necessary guidelines to make posting easier.

Develop a Successful Business Online

Each and every day we hear about people develop a successful business online. We cannot help but think, “How were they able to develop a successful business online?” The ever expanding market of the internet provides great opportunities for entrepreneurs; success can be enhanced if you know what you are doing. To be able to develop a successful business online you have to be equipped with the right knowledge.

The internet is continuously changing, and because of this change you have to think of creative ways to develop a successful business online. Technological improvements crop up every month, and impact the online business setting.

Here are some useful tips you can use to develop a successful business online:

1. The secret to develop a successful business online is the entrepreneur which YOU. You are where you are right now because of the choices you have made, and if you have decided to develop a successful business online then go for it. You as the entrepreneur have the power to make decisions and commitments to will eventually lead to a successful business. The internet offers a lot of opportunities and making most out of it is up to you.

2. If you want to develop a successful business online you have got to find the right system that will work for you. You would be able to reach your goal to develop a successful business online if you choose the right system. Your success and the speed at which you achieve it depend on the vehicle you choose to sign on with and how it relates to you. Critical elements include available training and support network, forums and support through sponsors and trainers in the business. Build up a network and you would be able to increase your business’s net worth.

3. To develop a successful business online you also have to commit yourself to continuous learning. Life in general is a continuous learning process; same thing goes for your business. Find resources to improve your knowledge, skills and abilities. As an entrepreneur you bring certain skills and abilities to the business if you continue to build and harness those skills and for sure you would be able to develop a successful business online.

4. Of course learning is not enough, to develop a successful business online you have to apply whatever it is that you have learned. Until you apply what you have learned no benefit can be gained from it. Do not wait to learn and master everything before you take action. When you start taking action, you begin building assets that will develop a successful business online.

Successful online business opportunities are open to anyone that has a great desire to move forward in their life. The opportunity is right before you, so develop a successful business online and I assure you that the rewards can be greater than you have ever imagined.

Making Money Online

The internet sure is big and it can serve various purposes for different people. The times are changing and many people have devised different ways of making money, one of this is making money online. There are many people out there saying and promising that making money online is easy. True that making money online can be easy of you know what you are doing. That is why many people produced making money online schemes. However, what is the necessary information you need in making money online?

Here are three easy ways of making money online:

1. Affiliate marketing. Affiliate marketing has become one of the most popular ways to generate a pretty nice income; In short, this is the easiest making money online scheme. For those who are new in the online industry affiliate marketing is wherein you market some other company’s product and whenever someone purchases it, you gain a commission from the sale. There are a lot of companies that promote affiliate marketing. All you need to do is find a company that has products that you feel you could market, visit their website and look for a link that says, “Affiliate,” click on that and everything should be explained to you in detail.

Making money online is like any other business, it takes time and patience to make it work. If you decide to go with affiliate marketing, it would take time to get started. Do not make the same mistake other people did, they thought that signing-up for the product is all they have to do. Sadly, that is not the case. Millions of people may purchase the product but if they did not purchase it from your site or your link then of course no commission will be earned. You are in charge if putting your link in front of your prospects. One of the tricks to making online is being creative. Always remember that you are not the online affiliate who is trying to make online, for all you know there are millions of people marketing the same product as you. You have to be creative and think outside the box when you market the product.

2. Using auction sites. One good way of making money online is through auction sites. The beauty about making money with auction sites is that this method caters to any financial goal that is trying to be obtained. All you have to do is sign-up with websites such as eBay and Amazon. After doing so find stuff that you want to sell, make sure that your products are in good shape and auction it off to the websites I have mentioned earlier. Auctioning your used items is a good way of making money online.

3. Using your writing skills. Writing articles is another good way of making money online. It is not strictly writing alone, you can also edit articles and some other stuff that basically involves text. Thousands of people out there are willing to pay others to get certain stuff done. And the person they are looking for can be you!

Starting A Home Business

Many people have dreamed of owning their own business. In this difficult times where many people have been laid-off, plenty of individuals are looking into starting a home business. The sad part is not many people know how to go about starting a home business. Nothing comes the easy way most especially if know nothing about it. The same thing goes in starting a home business. There are some essential things that you have to know in order for it to work out.

1. In starting a home based business always keep in mind that you must treat your business as a business. If you are serious about starting a home based business then you must know that it is not just a hobby, it is something more than that especially if you do not have a full time job. You have the luxury of setting your own hours and work when you want, but that does not mean you should work whenever you feel like it. Set your working hours and make sure that you abide by them and for sure starting a home business will be a breeze for you.

2. When starting a home business you should be aware that you would have to invest a lot of time and in some cases money to make your home business work. You are going to have to treat your business like a business and spend money to promote it before it will succeed. The main difference between a typical business and starting a home business is that you reap all the reward for yourself.

3. In starting a home business learning is going to be constant. You are going to have to constantly learn and improve what you know and what you are doing. The best way to do this is to be in touch with those who have already started their own home based business and are already a success in their chosen field. These people more often than not are willing to help you because someone helped them when they were starting a home business of their own.

4. You also have to stay focused when starting a home business. In order for it to be successful you have to choose a business and stay with it, do not hop around with various opportunities. You are not going to come across a business that became successful immediately, so give an opportunity time. You will waste a lot of time and money trying to look for quick success, so stay with an opportunity that you think is good and give it time to grow.

We all have our own reasons for starting a home business, what the reasons are does not matter. What matters is that you are committed to it and that you are continuously working to make it happen.


Here are more tips to help you in starting a home business.

Social Media

Just this year Twitter grew by 3,000 per cent. Facebook hosted 61.2 million visitors and LinkedIn garnered 20 million users worldwide. The Social Media scene has a truly big potential, and because of this online entrepreneurs are looking to unlock the secrets of social media. They see social media as another channel wherein they can get the word out about their business. Free access to a lot of social media accounts just adds to the attraction.

But before you take that plunge into social media, do you think it will work for your business? Could social media be a free substitute for traditional advertising? How much time should be spent in the care and feeding of all those profiles? The answers might overwhelm you.

“Traditional advertising and marketing is not dead,” according to Oliver Blanchard, a business strategist. Blanchard promotes the integration of social media into a more traditional marketing and advertising plan. According to him “So you can have a healthy mix, much like a diversified investment portfolio.”

Even if the platforms vary according to the type of business, small businesses are encouraged to have a solid website, email list and a contact base even before they venture into social media.

Blogs: Compose and write your way to success
Customer loyalty can start by providing informative blogs to your audience. Social media is considered as an important tool when it comes to online advertising; however you need to learn how to write informative blogs before anything else. I know some aspiring entrepreneurs are not savvy when it comes to blogging platforms, for a newbie using Tumblr is highly recommended. This platform can be easily customized, extremely easy to use and has an additional factor that allows you to follow people and also re-blog their content with ease.

Blogging is an effective way of spreading information about your company. This is a step beyond any official press releases, publicity ads, and marketing leaflets. The magic of social media happens right there and then in your blog. A well-maintained and managed blog invites peoples’ perspectives and also provides an opening for a real relationship to be formed which is a significant facet of great customer service.

To Tweet or not to Tweet.
Twitter a social media tool and at the same time a micro-blogging instrument. It allows you to key-in up to 140 characters and update people who are following you. Connecting with a business owner via Twitter provides a personal touch which is preferred by most customers. Through this social media tool a company can announce new product or promotion and you can easily link back the details on the company’s blog or website.

Youtube
Another social media tool that an entrepreneur can capitalize on is Youtube. With a little creativity and relatively low overhead uploading a short video clip can be a rapid way to test the market. You can release freebies to people which will enable you to capture a niche.

Keep in mind that no matter what platform you use the true value of social media is found in the conversation. Truly social media has changed the communication between entrepreneurs and customers.

Here are some more tips on Social Media that can help you grow your business.

Start-up Business

It is natural for an entrepreneur to dream of success for their start-up business. This is a typical behavior that can be seen in most start-up entrepreneurs. They have probably invested most of their savings on this venture. So of course if that is the case then succeeding in your start-up business is what you are aiming for right?

Here are some tips you can follow to succeed in your start-up business:

1. Getting a job instead of owning a business. Remember that you have to be involved in the daily operation of your start up business. Your ultimate goal is to grow this start-up business into much more than just a job where you work hands-on every day. Work on the business, not just in the business.

2. Taking on a business partner. Most start-up businesses begin with two people managing the business. Eventually the other one gets tired of running the start-up business so the other one buys him out. This is a tiresome process. Unless you are absolutely sure about your partnership, hire people to help you out instead for your start-up business.

3. Thinking the start-up business scheme will make the company. It is the business owner who makes a business successful, not the product, not the service and not the new invention. Focus on building a successful start-up business as much as you do a great product.

4. Competing on price and price alone. This is by far the fastest way to send yourself into bankruptcy. The reason you established your start-up business is for the profit you will get, and having a smaller revenue with a larger profit margin will always beat out winning tons of business but earning almost no profit. Train yourself in marketing and sales so you can get out of the price wars.

5. Trying to cost-cut your way to success. Most start-up businesses would like to cut-down costs by saving a wage and doing the work themselves, but they forget that nobody’s out there drumming up new business for them. Focus on bringing in the business, not saving a few pennies.

6. Paying attention to only one area of your business. A start-up business’s success involves three main areas: sales and marketing, finance and administration, and operations. You have got to make these three factors work harmoniously with each other and growing in unison. Do not focus your attention on the area you know you are good at.

Increase Average Sales

When you go to your local McDonald’s and order a burger the clerk will automatically ask you if you want to have fries as well. Every customer who answers “Yes” adds $1 or more to that particular sale. If just a fraction of McDonald’s 54 million daily customers say “Yes,” that means millions on extra dollars. This strategy is an effective way of increasing average sale.

The same strategy used in increasing average sale should be observed by start-ups. These businesses have not yet built a large customer base so they need to increase average sales as much as possible from each person who buys from them. It is like the old story: A bird in the hand is worth two in the bush.

During the first few months of operation your focus is not the market share but increasing average sales. Boost the dollar value of your average sale, and you boost your cash flow and bottom line. Here are some tips to help you increase average sales.

1. Crunch the figures. To start increasing average sales you have to understand the dollar value of your average sale. Say for example you have 30 customers and your total sales reach $1,500 on a normal day, then your average sale is $50. After you figure out your average sale in a day you can set a higher target from then on and plot your strategy as to how you can reach your goal.

Depending on the nature of your business it would be helpful if you can calculate your average sale per hour, day of the week, location, marketing campaign and other variables. The answers that you get will most likely lead you to your plan of action. Say for example you average sales on a Monday is pretty low compared to other days then you can plan special Monday promos.

2. Change the product or service mix. Adding or subtracting to what you sell can help you increase average sales. Take the case of a bakery that had an average sale of just $5. The problem was they offered virtually no higher-priced items. When they added specialty cakes and other premium goods, that figure jumped to $14.

You can achieve the same effect if you get rid of lower-priced products. Say for example you sell three different types of jeans drop the $35 jeans and the customer is forced to get either the $45 or $55 jeans instead.

3. Give bundle offerings. A good way of to increase average sales is by encouraging your customers to spend more. How? You can provide consumers with a packaged deal on various products or services. Take McDonalds for example, they do have what we call Extra Value Meals that include burger, fries and a drink.

4. Raise prices. Being the cheapest in the market is not the right technique to increase average sales. If you are just starting your business, price your products or services on the high side and then figure out how to offer more value. Being the cheapest in the market is not necessarily going to pay the bills, and you will be left high and dry when a competitor beats your price.

If you use these strategies I have cited you would be able to increase average sale by maximizing every transaction you get. You help keep the cash flowing while you are getting your business off the ground. And once business has taken flight, these same strategies can develop your flight plan for generating peak profits. Master the art of supersizing your sales early and it will pay off many times over.

Acquiring New Customers

It is so sad to see a customer walk-out of the door empty handed. A potential sale goes up in smoke so does the potential for acquiring a new customer. Nowadays a lot of small businesses turn to plenty of channels to acquire new customers. However some of them are expensive that it acquiring new customers cuts down your business profit. Acquiring new customers does not have to be tedious and expensive.

For start-up businesses every sale counts. As a newbie in the industry you have to make sure that you maximize every customer you acquire, every sale that you make.

The first step to acquiring new customers which will eventually increase sales is to calculate your actual conversion rate. Since you are running an online business, web analytics software should do the trick for you.

The optimal conversion rate of course will vary from business to business depending on the product being sold. However, knowing the ratio is the key because many businesses overestimate this figure. Seeing the actual numbers is a signal for entrepreneurs to focus more on acquiring new customers hence sales are improved.

Once conversion quotient is determined, you are on your way to improving it. These strategies will help you close more sales and of course assist you in acquiring new customers.

1. Stress your USP (Unique Selling Proposition). Making your business unique, separating it from others is an effective way acquiring new customers. You have got to deliver you message loud and clear.

2. Figure out the bottleneck in your sales process. If you are set on acquiring new customer you also need to analyze the steps required to convince prospects to buy from you and pinpoint the weak spot. Say for example you are in the wedding dress business. To help you acquire new customers you need to show photos of your work, propose a design for your client, price the item etc. Look closely at the pictures you provide are these pictures clear enough? Are these pictures detailed enough for your customers? Figure out the flaws and for sure acquiring new customers will not be far behind.

3. Rewrite the sales pitch. One of the biggest roadblocks to acquiring new customers can be traced to sending the wrong message. Take the home security firm whose opening line will be, “We heard there have been series of break-ins in your neighborhood and we would like to assist you in keeping your house secured.”This approach was a major turn-off so it has to be changed. With the revised opening the firm acquired new customers and hence increased their sales.

As you can see acquiring new customers for your start-up business need not be expensive. It is more of a controllable facet that some entrepreneurs fail to look into. Do not make the same mistake and start acquiring customers for your business and in doing so you also increase the sales of your business.

Setting Prices

One of the biggest obstacles an entrepreneur can face is setting prices for his goods or services. Difficulty in setting prices is experienced not only by startup businesses but also established businesses. The frequent topic with setting prices is risk: risk environment prices too high and you may push potential customers away; risk environment prices too low and you cut business profits.

Due to this pricing paradox most owners turn to discounting. However the risk in most cases can be removed if you have the right information. In general if you know more the less risk you perceive. From that standpoint, pricing is all about getting as much information as you can about your market, your customers and your own internal numbers that drive your profit.

There are no secrets to a successful business, it just takes knowing the right information. When it comes to setting prices, here are some tips to help you avoid mistakes most entrepreneurs make. If you can avoid these, you'll not only be ahead of your competition, but also you'll be ahead of most other businesses.

1. Going too low. Some entrepreneurs set low prices as a strategy. Setting prices that are low will of course increase their top line revenue numbers however they fail to consider their bottom line profit number which is important. An entrepreneur has to profit and price accordingly. You might not get business out of all of your price-conscious consumers, but that is fine. Your competition will--and in doing so they will have to figure out how to profit from the "price shoppers" when there is little or no profit to make.

2. Using the same margin for all items. When setting prices always remember that there is no law stating all products must have the same prices. Keep in mind that slower moving items need higher profit margins. You can afford a smaller margin based on high sales volume. But still you should find ways to add value and increase those margins. Because in the end, even those incremental increases over time will have a huge impact in your bottom line.

3. Not understanding the difference between margin and mark-up. In setting prices these are things you should know margin and markup. Margin is based on the sales price; on the other hand markup is based on the cost. In setting prices most small businesses utilize markup formulas, but many overlook margin. That is a mistake, according to some consultants, since utilizing margin as a tool for analysis helps improve profitability. It is well worth the time for any businessperson to know the difference between margin and markup and how to use both.

4. Doing what others do. Sometimes we set our prices according to the price of competitors. Instead of setting price the same as them why not do a little more research and start to discover and uncover the value you truly offer your customers. Then price for value. IN doing so you will be in the best position to defend your price against competitors with your own “Why list.” Make your customers realize that your price is well worth it.

These are just some mistakes that you should avoid when you are setting prices. Avoiding pricing blunders and being strong in your pricing scheme go hand-in-hand in constructing a profitable business. Master the so-called "pricing paradox" and you will master an area of business in which even the most experienced business people sometimes struggle.

Advertising Online (part 2)

Advertising online is a type of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to catch the attention of customers. As a budding entrepreneur one of your biggest obstacle probably is producing advertisements online. I mean if you are not going to ask for any assistance from ad agencies, producing an advertisement online of your own will be a little difficult. The key is to engage your target audience, because for advertising online to succeed, it has to be remembered.

Here are some tips to make advertising online a success:

1. Address the right audience. Advertising online involves understanding your target market. How well do you know your prospects? Your ads should immediately appeal to prospects and speak to them in their possess vernacular, including buzzwords. Your advertisements online must at all times ring true, without the use of gender or cultural stereotypes, or exaggerated claims, so prospects automatically understand that your offer directly relates to their needs and wants.

2. Visual focal point. Since you are advertising online you need to create ads that use a single, eye-catching visual to provide central focus. Competing visuals will make your online advertisement cluttered. Advertising online should be about attraction right? If your page seems cluttered and disorganized prospects will no doubt get turned-off. With so much competing advertising, make your ad stands out by virtue of clean, clear design, with an appealing focal point and simple elements.

3. Create “THE” moment. If you have been advertising online for some time now, you must be aware that the word “new” is used quite often. That is because our brains are actually alert for new information about various topics. Advertising online is all about providing new information; great ads have the ability to open minds. Your ad has the power to show your customers a new way to achieve a goal or provide unique insight. In return you will get greater audience attention and elevated response rates.

4. Make things happen. Any ad value its salt should move a prospect to take some kind of action. Advertising online should show the benefits a customer can receive. The headline must contain these benefits and include features in your body copy; your prospects will be motivated to learn how to take advantage of what is pledged.

5. Powerful benefit. Formulate a headline that pulls your readers. Make use of it to point out a desirable benefit or offer. Find out and understand what your customers want that you can provide.

Advertising online can be done in a lot of ways but however way you do it, it is vital that you use the form that is best suited for your online business. If you do not advertise your business online nobody has a clue that it exists. Trial and error is a great method for advertising online, so try out some of these tips and increase your online sales.

Advertising Online

Before, advertising online was considered as unusual. In the past companies invest most of their capital on tradtional advertising. If you get to see their budget plan, marketing probably holds the biggest share after operating expense and advertising online was not used. But with the dawn of the internet this was changed. The internet has brought many unique benefits to marketing, one of which being lower in costs and greater capabilities for the distribution of information and media to a global audience. In short advertising online became essential to many businesses.

Here are some tips you can you when you are advertising online:

1. Network. Was there a time that you received a message from someone asking you to send that same message to 10 of your associates? If you pass along emails to your associates who are in your address book whether it is about a virus alert, crime alert, and stories -- you can use the same strategy in advertising online. Inform your family, relatives and friends about your new online business, and then ask them to do the same thing and let their friends know about your online business. Compose an email that will describe your business and how people can benefit from it. Hopefully, your email will be passed on to some more of your friends’ friends. This is an effective way of advertising online. Do not forget to ask for their comments and suggestions on how make your site better.

2. Viral marketing. Another effective way of advertising online is through viral marketing. Viral marketing is a strategy that relies on individuals rather than traditional campaigns to pass along a message to others. Two of the most successful online businesses who used this strategy were Hotmail and BlueMountain.com.

Referrals are also an effective way of using viral marketing. If you are one of those sites who offer content service, you can place a “Tell a Friend” button that will enable customers to recommend products or web pages via email to their friends. Some services that you can use are Recommend-It and BigNoseBird.com. These services will allow you to keep track of those who recommended your online business and to whom did they recommended it to.

3. Start your own newsletter. Formulating your own newsletter is an effective way of business advertising online. Newsletters and e-zines have become valuable tools in building loyalty and repeat visitors to your online business. You have the option to develop the content of your newsletter, or use articles provided by other authors. Establish your mailing list as you go along, but remember that you should never send unsolicited letters. Spam is simply not worth it.

4. Participate in forums. A lot of websites provide message boards because this is a good way of attracting traffic. You can post messages and invites to your site, but of course make sure that the forum you will join is relevant to the product/services that you sell. Participate in the discussion, and end your post with a link to your site. This is another way of advertising online.

Do not throw away your hard earned profit on traditional advertising. Find cheaper means and ways to let people know your online business exist. In doing so, you can use the money on other important things that will benefit your business in the long run.

Products to Sell Online

The internet is considered as one huge market place and everyone came up with their products to sell online. In the past I have told you about the success story of Hewlett-Packard and where it all began. A lot of small businesses were inspired to gain their own share of action so they came and everyone is just so eager to introduce their products to sell online from houses to handcrafted tapestries.

If you are an aspiring entrepreneur, you read other people’s success stories and you feel like, “I CAN DO THAT TOO!” However, the product that you will sell online is the thing that should be dwelled on.

Keep in mind that not all products can be sold online. Some products may be better suited for online sales than others; some products simply are not built to be sold online. According to a study done by Ernst and Young the most popular online item purchased were computer related products at 40 per cent, books at 20 per cent, travel at 16 per cent, recorded music at 6 per cent, subscriptions at 6 per cent, gifts with 5 per cent and investments with 4 per cent.

The types of products/services that sell best online take advantage of the internet’s convenience. We all know that convenience is one of the reasons why a lot people opt to shop online. The choice of products you sell online determines the success of your online store. Keep an open mind about the suitability if products for online sales, and to increase your chances of success it is imperative that you choose a product/service that exhibit important characteristics. Here are some tips to help you choose what products to sell online:

1. High value.

If the product you sell online is unknown to many people rest assured it will create a commotion, and this has been proven time and again. Consumers are highly attracted to products that are unusual. Say for example the product that you sell online are toothbrushes; do you really think people will buy it? I mean sure it is convenient for them however if you are going to charge shipping then it will cost more compared to buying it from some store. Some online entrepreneurs stick to selling special cheeses, rare cigars, Persian Carpets, etc.

2. Information products.

Like what I have said time and again, the internet is a great source of information and it is also used for entertainment, communication and research. Since people use it for such, good products to sell online are softwares, books, magazine subscriptions etc. These are the most popular products that sell online nowadays.

3. Services.

Some people think that selling or offering services online is not possible, but think again. Hotel reservations, air travel and investments have successfully transitioned their business online. If you travel frequently then you must know how convenient it is to book a flight online and also reserve a hotel room. Everything can be done at your convenience.

Whatever product or service you decide to sell online always remember that a successful online business is the one that is able to provide convenience combined with excellent service and outstanding reliability of delivery. Keep in mind that the choice of products you sell online determines the success of your online business.

Building Customers Online

Success online depends on how well you understand people. I mean sure you have a great product / service, but is this what your target audience need? Before anything else it is imperative that you know and understand what customers want on the Web. If you want to build customers online you have to formulate the right strategy and determine the best goals and objectives. Building customers online is essential because your customers can also point you as to when you should start looking to change direction.

Here are some ideas to keep in mind when building customers online:

1. Understand what the internet can do for you.
The internet as a whole is a very powerful channel and building customers online is one advantage you get. And since we all have different goals in mind as an entrepreneur we need to understand what the internet can do for our business.

Some entrepreneurs opt to start an online business because they cannot afford the demands of a physical store. The good thing about an online shop is that everything can be done from your computer and of course it is less expensive. With an online store you are also able to market to the global community, for a little cost or at times none at all.

2. Give customers pertinent and valuable information
The internet has become a necessity and is a good source of information to users. A lot of people nowadays use the internet to find the information they need, whether shopping for books, looking for directions, etc.

If you want to build customers online you should be able to provide the best information. If you are publishing an e-newsletter on online marketing, make sure it is the best resource the customer will ever read. If you are selling information products like eBooks, take note that people look for information first meaning they want a background on what you are selling. So instead of doing full-on sales pitch, it is ideal that you provide an excerpt of your information product which will make visitors stay longer.

This is just like promoting a new movie. Producers provide a “trailer” so you will get an idea of what the movie is about. In doing so the audience become curious and hence builds interest.

3. Harness the familiar
Many people fear the unknown, which is of course normal. True, that shopping online is way different from actual shopping (traditional); there are numerous ways wherein you can make the experience less scary for your prospects.You are on your way to building customers online once you have eliminated this apprehension.

If you are selling products online, your major challenge will be show to show the products clearly on the computer. Since customers won’t be able to see it up close nor touch it providing them with big, clear and detailed pictures are necessary. Many returns and exchanges over goods purchased occur because customer expectations are different from the actual product.

One great technique of building customers online is by providing them with online assistance. Through this customers can be easily assisted with products, ordering, returns and exchanges or any problems with your website.

4. Listen to your customers
In building customers online, you have to listen and understand their needs. Why is the customer shopping online? Convenience and price, as well as product assortment, are just a few reasons why people shop online. Understanding the customer also entails understanding their concerns which prevents them from shopping in your site.

Take time to listen to your customers. Remember that building customers online is crucial to your online business's success.

Expanding Your Business Online

There would come a time that an offline entrepreneur would think of expanding his business online. But something stops them because they think expanding their business online is a cost consuming thing, but this should not be the case. Expanding your business online will provide you with a lot of advantages. These advantages are not possible or unlikely if you are selling using conventional methods.

Here are some advantages you will get by expanding your business online:

- Widens market potential
- Immediate interaction with prospects
- Lessens the "time to market" for new products
- Enables you to reach globally
- Compete with larger businesses and operate 24 / 7, sharing information about your business, your products and services accessible anytime, even days, nights and holidays.
- Give customers direct access to sales literature at no additional cost.

Expanding your business online is not as easy if you do not have any experience as well as knowledge on the right things. To make your business expansion online a success, you need to have a deep understanding of the intricacies of selling on the Internet. You have to consider things from product presentation to customer fulfillment, doing business on the internet can add some complexity to your existing operations.

Below are the some steps you need to take to make the transition or your expansion online as smooth (and as successful) as possible:

1. Envision your goals and set them.
If you plan on expanding your business online you also have to decide on how you want to use the Web. The internet has a lot of purpose; it can serve as an online brochure for your company or product presentation. Your prospects and existing customers can go to your online shop and get information about your product and services, and they can either call you, visit your store or office to place the order. A simple informational site is good if you just want to tell your customers of the products that you offer. You do not have to think of the complexities of an e-commerce operation.

Once you have decided on expanding your business online you should have a clear goal of what you want to achieve.

2. Think differently
Remember that a traditional business is way different from an online business. In a retail store, a likely client who enters and looks around your display shelves may stay for a few minutes, allowing your sales clerks enough time to talk to the customer, address their concerns or respond any questions they may have.
With an online shop, however, a prospective customer can hit the “back” button immediately or as soon as they decide that your site is not at par with their expectations – e.g. perhaps your site is loading up too slow for dial-up, too cluttered to navigate, etc. A worst case scenario is that they are already shopping on you site but then they abandon their cart without giving you any reason for their decision to stop the purchase.

3. Make sure that your product is suitable for an online store.
Before you go spending a fortune in developing your web site (which is a requirement when you expand your business online), you need to know that not all products or services sell well on the Internet. What sells well on the Web? Studies have shown that the following are the characteristics of products that are suitable for the Web:
• Digital products
• Products requiring lots of information
• Products that do not need to be handled or tried on
• Products that are difficult to find locally

Expanding your business online from the traditional type must be planned carefully, implemented and monitored to enable continued efficiency. The profile of a business that is best suited to the online environment includes those that have a distinct product or service portfolio that requires little manual invention to facilitate a sale. Ideally they will have a fixed pricing policy that applies to all customers and have products or services that have a predictable lead time in terms of delivery.

The Marketing Plan

A good marketing plan is like a game plan; it should act as a road map and a blueprint for the procedures you will follow to grow and make your enterprise successful. It should also have some flexibility because as you move to testing and measuring your tactics, you will be required to change strategies from time to time, to capture or gain a share in a specific market.

Jay Conrad Levinson (known for his Guerilla Marketing tactics) says you can create a great marketing plan in just seven sentences. This makes us think, “Can such a concise document be effective?” Remember that a good marketing plan does not have to be complicated.

Keep in mind that a prizewinning marketing plan has the right combination of good strategy and tactics, and you cannot do either one effectively without the other. Do not be tempted to wander from these fundamentals.There are some things, however, you should avoid when putting together your own marketing plan for your business.

1. Not doing the numbers.
If you don't know your numbers, you will not succeed in business. A good marketing plan is about math, and math is about figures. Taken a step further--business has a lot do with numbers. Creating some marketing plan without knowing how much it will cost to gain your customer, what your average sale needs to be, what your profit margins need to be and how many times your average customer needs to buy will set you up for failure If you plan to run on a $1,000 advertisement, how much leads and sales do you need to cover the cost of your advertisement and how much profit will you make?

2. Relying heavily on creativity
Creativity is okay, I do not find anything wrong with it. However, if you focus or rely too much on it at the expense of tactics it can hurt your business.

A great example of this is the difference between the once-famous and now-defunct brand Pets.com and the still famous and thriving brand eBay. Pets.com relied heavily on its famous sock puppet icon and television ads to drive its brand, eBay on the other hand used a tactical approach to business. eBay moved from its original model of being known as a collectibles auction site to something more upscale. This is why knowing the right figures are important because that will ultimately drive your business.

3. Thinking marketing is JUST advertising
Advertising is an integral part of any marketing plan that is true. Your marketing plan is not limited to how you sell your products or services, but it is also how your receptionist answers the phone and how you set up your company culture. Marketing is also the strategic and tactical aspects of identifying and segmenting your customer base, figuring out your competitive edge and USP (Unique Selling Proposition), setting your pricing strategy, sales strategy , etc. All of these things come into play if you want to maximize your ROI.

4. Forgetting to market to existing customers and prospects.
For businesses that have moved beyond the start phase, there is no better or quicker way to massive growth than your underway customers and prospects. In truth, it costs more to acquire new customers than to sell something to an existing customer. Your marketing plan should always include your current customers; they are your business’s biggest resource.

Your existing customers are your goldmine, which is something that many marketers tend to forget because they are so busy chasing after new markets or customers. A good marketing plan should include strategies to tap into what could be your business’s most valuable resource.

Pitching to Investors (Learn to succeed with investors)

Shortly after my academy graduation, some of my friends started a small business which of course includes me. Within a few weeks we fleshed out the concept, formulated a business plan and set out to seek financing. With a little hustle, we managed to get an appointment with an acclaimed investment firm to discuss the opportunity. Admittedly our business had yet to earn profit, and none of us had been the CEO of any clothes boutique more so a multi-million dollar enterprise, but we were all assured that we had an abiding affair on our hands. Afterwards all our banking projections forecasted gross revenues of $200 million. What broker could say no to that? But of course we were wrong. I realized we as entrepreneurs need to learn more about real-world fund raising. To this day, whenever I pitch investors for capital, I always remember these hard-learned lessons:

1. Remember that less is always more.
Filling your presentations with flowery words and extensive explanations will not affect investors, and most likely it will turn them off. Present your business in an approach that is short, candied and straight to the point. Investors need the assurance that your business will attract and absorb customers. If they do not get or understand your concept in a short time span, they may assume that your prospects will not accept it either.

2. It is better to execute than hypothesize.
A good pitch should inspire. Provide them with pertinent facts, not fiction. Most investors seek out low-risk businesses with people who have proven themselves successful in other ventures. A company with cash flow, a track record and real-world experience has a better chance of getting investors than a business plan forecasting large returns. Find means to test your business’s capability on a limited budget, and turn your idea into a functional business before you seek investment.

3. Leave the hockey sticks on the ice.

Stimulate investors with a big picture, but be rational and responsible. Avoid hockey stick projections. Respectable investors will not believe you or take you seriously if you present them with banking graphs that shows your company’s revenues will abound from $100,000 to $50 million in three years.

Show investors that you have a grasp on reality with three versions of financial projections: best case, reasonable case and worst case. A good pitch contains facts coming from past and present performance, industry and competitor analyses and of course a series of well-thought out assumptions.

4. It takes time, perfect necessary skills.
Perfect your marketing tactics, sales strategies and operational procedures. Demonstrate that your business can crawl before you say it can walk. Investors appreciate companies with sustainable step-and-repeat business models that are poised for exponential growth. Remember, even Google’s success is based on a single product. Investors are wary of funding over-eager businesses that seem destined to bite off more than they can chew.

Before asking for millions of dollars to fund 50 divisions and hundreds of product lines, prove how well you can create, manage and fulfill demand for a single product.