Captain BUZ's Blog

3 Tips for Veterans Starting and Growing a Small Business

Tom from Ohio writes:

Dear Captain BUZ:

I have been on active duty in Iraq and am planning for separation in 6 months. I would like to start my own business, but don't know where to begin, or where to find resources, especially a loan that I will need to get started.

Dear Tom:

First, thank you for your time and sacrifice through your military service in protecting Americans at home and abroad.

There is some good news in these troubled economic times for you and your fellow veterans who are in business or who are thinking about going into business. There are a wide range of business development resources including loan programs - yes, even loan programs - targeted to support your business development activities.

Here are three valuable actions that you can take to help you build your business success:

First: Determine your "business readiness"

Use the 10 Step Venture eMentoring Program, a free, online, interactive learning system that provides a thorough, step-by-step framework for developing business skills, knowledge and a support network for successfully launching or growing your own business venture. Here you can work through a series of worksheets that will return a score to help you to understand your relative business readiness. These results can also be emailed to a pre-selected business counselor from SCORE Counselors to America's Small Business, where you will receive feedback from an experienced business professional without charge.

The program begins with a self-assessment of suitability for being in business, and concludes with a blueprint for implementing the venture. It is self-paced - you proceed to the next session when you are ready. It is important to devote sufficient time to each of the exercises. For once, there are no predetermined right or wrong answers - the right answers are the ones that work for you.

It is valuable to have someone to discuss the various worksheet results with. That is why using someone else such as a SCORE mentor as a sounding board can help determine whether it all really makes sense.

Click here to register for the program, and visit www.score.org/index.html to locate a SCORE counselor.

Second: Build Your Networks

There are thousands of business assistance agencies that our tax dollars pay for to help veterans and others to build the skills and find the information they need to start, grow and succeed in their own business. These organizations offer free and low-cost help in practically all areas of business management including business planning, marketing, import/export, site location, funding, international business, government contracting and other core management disciplines. Through these free and low-cost business support relationships, you may also obtain referrals to local private sector support organizations such as bankers, accountants and attorneys. Collectively, these resource providers will help you gain more insight and skills based on your own particular entrepreneurial needs and interests, and also help you to begin building your support network for the longer term.

Visit Buzgate.org, select your state, and click on "Free Help" to find the right person in your local area that can provide the specialized expertise that you need.

Third: Find the Financing You Need - The Patriot Express Loan Program

The US Small Business Administration (SBA), in partnership with selected banks across the country, has established the Patriot Express Loan as an important new lending program to support veterans who want to go into business or who are already in business.

The Patriot Express Loan is for veterans and members of the military community who want to establish or expand a small business. Eligible military community members include:

Veterans
Service-disabled veterans
Active-duty service members eligible for the military's Transition Assistance Program
Reservists and National Guard members
Current spouses of any of the above
The widowed spouse of a service member or veteran who died during service of a service-connected disability

The Patriot Express Loan is offered by SBA's network of participating lenders nationwide and features expedited turnaround for loan approvals. Loans are available up to $500,000 and qualify for SBA's maximum guaranty of up to 85% for loans of $150,000 or less and up to 75% for loans over $150,000 up to $500,000. The Patriot Express Loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases. Patriot Express Loans feature SBA's lowest interest rates for business loans, generally 2.25% to 4.75% over prime, depending upon the size and maturity of the loan.

Visit www.sba.gov/patriotexpress/sba_patriot_expressloan.html to learn more or contact your local SBA office. Click here to learn about other SBA loan guaranty programs.

Sincerely,
Captain BUZ

Taking advantage of eMail Marketing?

Ellen from North Dakota writes:

Dear Captain BUZ:

I know marketing is very important to my business, particularly when the economy gets shaky, but how can I take advantage of email marketing when I don't know where to begin?

Dear Ellen:

eMail marketing is all about leveraging technology to make friends. In fact, let's use the word "FRIENDS" to introduce 7 easy ways to launch a productive eMail marketing strategy:

1. First and foremost, the letter "F" means FOCUS

This means that you will want to know exactly who your audience is when framing your eMail marketing strategy. There are different eMail formats for different audiences. For example, you may announce a promotional event, distribute an eNewsletter to existing or prospective customers, and send a press release to media representatives to build public relations. The point is, to know who you want your eMail message to reach and why.

2. For the letter "R" we stress REFINE your campaign

This means that you want to be sure to refine your list AND your messaging over time to be sure that it is working. In terms of your list, you may find that having more than one type of list may be useful, such as customers, prospects, media, suppliers, investors, board members, etc. Your message is likely to be different for each group and will change over time to keep it interesting and compelling.

3. "I" means INVESTIGATE

To ensure that your campaign is effective, it is very important that you track, analyze and refine your eMail Marketing campaign on an ongoing basis. There are established reporting & analytic tools available from outsourced eMail Marketing service providers, such as Bronto, which help to ensure that your eMail messages are being received and that you are in compliance with anti-spam practices.

4. "E" is for ENERGIZE

Marketing in any form is all about energizing your audience and this holds particularly true with eMail marketing where you can include links, toll-free numbers and eMail addresses so that people can immediately respond once they are energized! A good rule of thumb is to create messaging that achieves 3 things:

Gets Attention; e.g., strong title, compelling introduction
Builds Urgency; e.g., sale ends xx/xx/xx, solve problem today, address need now
Motivates Action; Call 1-800, visit www., buy now, cover story

5. "N" for NARROWCASTING

eMail marketing is a form of 1-to-1 marketing meaning that you are communicating to one person at a time. This 1-on-1 relationship is very important to understand because you want to be sure that you are speaking to that person's interests, needs and wants. In this regard, narrowcasting means that your message must speak to that specific target audience or niche market based on their particular values, preferences, or demographic attributes.

6. "D" is for DELIVER

As with all aspects of your business, be sure to deliver on what it is that you promise in your eMail marketing messages. While eMail can be cost-effective and cheaper than the price of a stamp, people take their eMail seriously. If you send eMails to people who have not "opted in," you may be reported as SPAM. If your messaging does not speak to your audiences needs, they may unsubscribe.

7. "S" is for SELL

One of the main objectives for launching an eMail Marketing strategy is to increase sales and so whether you are eMailing to the media, your Board, or customers, be clear that every message sent says something positive about your business. Make each message count.

The good news is that there are service providers out there who specialize in eMail Marketing. For example, Bronto offers proactive client support and educational resources regarding eMail marketing best practices, standards and tactics for success.

Wishing you productive progress ahead!

Sincerely,
Captain BUZ