Promoting

Home

PUFS

PROMOTING THE BUSINESS

Most small business owners view promotion and advertising as a "luxury" that they cannot afford. Unfortunately, this usually results in ineffective promotion and poor results. You should assess your potential customers and competition and the business' products and services to determine a promotion strategy. You can then develop a budget to determine the most cost effective method of promotion.

Many small businesses advertise effectively via local media such as daily or weekly newspapers, shopping guides, flyers, radio, and direct mail. More specialized businesses may advertise in trade magazines, business directories, travel guides, and tourist publications. A small business may also gain recognition by joining the local chamber of commerce and may also donate goods or services to charitable events. Promoting the business does not have to be expensive. But you must develop a budget and a plan to effectively reach your target markets.

MANAGING THE BUSINESS

Managing the business is a skill that can only be gained through experience. The new owner must offer direction and control to the business. Managers of small businesses are usually very skilled at their craft and often involve themselves in the day-to-day operations rather than the business' overall management. They get by from crisis to crisis or event to event without an attempt to conduct operations with a strategic plan. But it is very important for a small business owner to see the "big picture." Technical skills are certainly important. However, many small businesses fail because the company's functions are not coordinated with a common purpose. To maximize efficiency, you should constantly monitor and evaluate activities to determine the best use of money, materials, and manpower. You should set measurable objectives such as specific sales dollar volume or time constraint for a particular job. The business plan must be frequently reviewed and updated to evaluate business performance according to expressed goals. Finally, you must learn to delegate certain duties so that you may concentrate on the overall operations and direction of the business.

INSURING THE BUSINESS

Before opening the business you should consult with an insurance agent to develop a comprehensive insurance plan.

A basic package may include the following types of protection:

Fire Insurance - covering damage to the premises, equipment, and inventory caused by fire, explosion, wind, riot, or smoke.

Liability Insurance - safeguarding the business from financial loss due to any claims of bodily injury or property damage connected with the business.

Crime Coverage - reimbursing for losses resulting from robbery, employee dishonesty, and vandalism.

Workers' Compensation Insurance - covering employee injuries and loss of pay related to accidents on the job. South Carolina requires all employers who employee four or more full-time or part-time persons to obtain this coverage. (Certain exceptions apply)

Fidelity Bonds - placed on employees with access to cash and other assets to guarantee against financial loss from embezzlement.

Business Interruption Insurance - compensating for revenue lost during halt of business due to fire, theft, or illness.

Automobile Insurance - covering both physical damages and liability caused by company owned vehicles.

Employee Health and Life Insurance - furnishing financial benefits to workers and their dependents in case of illness or death.

"Key Person " Insurance - compensating the business if owners or essential management become disabled or die.

Product Liability - protecting the business against claims regarding faulty merchandise.

You should determine which types of insurance are needed for your business and shop around to determine the coverage available and applicable rates.