Archive for the ‘Entrepreneur’ Category

Biggest Challeneges for Entrepreneurs

Sunday, September 7th, 2008

When I saw the January issue of Entrepreneur Magazine I was thrilled. Cover copy had a teaser on it to the effect that entrepreneurs had been surveyed and inside were their answers. I was certain that, finally, someone was paying attention to entrepreneurs who were striving for a successful business. It was time to hear from us little guys! I can t tell you how surprised I was as I began to read the article. Their idea of an entrepreneur and mine were as different as night and day. I always classified an entrepreneur as someone like the Mom and Pop coffee shop around the corner, the family run produce market in town, or the 18 to 24 year old who had come up with a fantastic gizmo and was scooped up into a corporation as their newest genius. Let me give you a quote from the article that will clue you into its idea of an entrepreneur . To explain the method used for the survey they state, Entrepreneur magazine and PricewaterhouseCoopers Entrepreneurial Challenges Survey is an annual telephone survey of more than 300 CEOs of privately held, U.S.-based businesses recognized for their sustained, rapid growth. They average $31.5 million in annual revenue with an average of 185 employees, and have an ongoing annual growth rate of more than 23 percent That definitely was not my picture of an entrepreneur. I don t know too many entrepreneurs who average $31.5 million annually, or employ 185 people. To me, that s a pretty successful company on its way to being a corporation. We should all be such entrepreneurs! At any rate, I continued reading and I must say the information was worth the read, and the business of doing business can apply to those of us who aren t quite making that $31.5 million per year yet. Here s what the survey discovered. What were considered their biggest challenges for 2006? 73% - Retention of key workers 38% - Developing new products/services 36% - Expansion to domestic markets 35% - Increased productivity 28% - Upgrading technology 23% - Creating business alliances 21% - Better management of cash flow 14% - Expansion outside the U.S. 13% - Improving risk management 11% - Finding new financing 11% - Buying another company or launching a spinoff 7% - Preparing company for sale 2% - Going public Now when you stop and think about it, that s pretty much what most entrepreneurs think about each year. Maybe not to the extent of expanding to foreign markets or launching a spinoff, but to keep your business perking along the road of improvement - all the rest are considered. The next part of the survey was interesting because entrepreneurs were given a list of several wild-card factors that could affect business in 2006. When asked which three would be most harmful to their business, here s what they said: 47% - Unstable U.S. economy 43% - Rising health-care costs 41% - Shortage of qualified workers 40% - Weak market demand 24% - Rising oil/energy costs 24% - Rising interest rates 22% - New government regulations 18% - Weaker capital spending 14% - Weakening world economy 12% - Increased global competition 11% - Decreased access to capital 10% - Sudden drop in U.S. real estate market 10% - Tax increases 9% - Inflation So maybe my entrepreneurs and those surveyed are not really that much different in thinking. The outlook of most entrepreneurs is probably optimistic, or will be unless more unforeseen disasters strike. Even after the huge devastation of 9/11, within two quarters we were back to the same level of optimism as we had before. People get used to dealing with tough circumstances and factor them in, but are not swayed by them. When you really think about it; isn t that what most entrepreneurs are like? If they re not, then they aren t entrepreneurs by my way of thinking.

Become Your Own Personal CFO

Thursday, September 4th, 2008

Budgets and personal finances are not most people s favorite topics, and certainly not one of mine. Even bank executives have problems in this area, but if you re an entrepreneur so do you. You re concentrating so much time on your business, your personal checkbook takes a back seat. Then one day you are met with the startling fact that you re not saving enough for lean times and you panic. Well, just apply your professional talents to the situation and become your own personal CFO. By using your CFO eyes on the situation, it somehow tempers the pain of dealing with your own money. To get started, here are 5 rules for treating your personal finances like a business: Be Your Own Board of Directors. To make good decisions, you must know what you re trying to achieve. In business, Board of Directors write mission statements to keep the company on track with goals. At home, it s up to you to define your mission and make sure you re fulfilling it by writing down your goals. Not just your financial goals either, but your life goals. Know Your Operating Costs. Do you know what you spend every month on average? Businesses do because they base their budgets on historic spending patterns. Most people, however, don t know what it costs to keep their lives running. You can make out detailed budgets, but find out at the end of the month that you haven t stuck to it. So instead of doing a budget that dictates how much to spend, do a cash flow statement that records how much you actually spend each month broken into several categories. Know Your Net Worth. Companies measure progress toward goals through balance sheets which list their assets and liabilities. Your net worth is your balance sheet where you list everything that you own. That means your checking and savings accounts, investments, car, house, etc. minus everything you owe. Track your net worth quarterly to make sure you re moving toward your personal goals. Without this step, you might not see the impact of your money decisions until it s too late. Forecast Money Decisions Results. When a business makes important decisions, they use a process called scenario planning . They look at the possible outcomes of one choice compare to another. You can use the same process to make smart money decisions. For any choice, pick two options, and then look at what each answer would do to your cash flow and net worth. Remember, there are no good or bad choices only choices that put you closer or farther from your goals. Track Progress by Annual Reports. Just as companies assess their progress in their annual reports, you need to review your list of priorities every year. Have you accomplished any goals? Have your spending patterns changed? Did you spend less than you earned? Did you save as much as you planned? You need to treat your money like you treat your business. Give it the time it deserves, because in the end the time you spend is really an investment in yourself and your dreams.

Tried For A Bank Business Loan, Lately?

Sunday, August 31st, 2008

If you ve tried to get a loan from the bank for your business lately, you know it s no slam-dunk. The promos for SBA loans and loans for minority or women owned businesses sounds great, but when you get nose-to-nose with a banker it s another story. Some of the reasons that make it seem so difficult are that many lending officers feel that they re lending you their money instead of the bank s. They take almost personal responsibility for maximizing repayment. Another is that they are particularly suspect of new ventures. Since 4 out of 5 or 80% fail within the first three years, many lenders require a three-year history of doing business. Lastly, with all the bank merging and acquisitions that have taken place the decision-making process has been moved far off-site from the local branch. Add all of these reasons up, and you had better be prepared to razzle-dazzle the banker. Here are some tips to make lending you more attractive to the bank. First, start with a two-part presentation. Initially submit a brief overview of your loan request. In this overview include: Excerpts from your business plan about your business concept, management team, and financial projections. Credit history overviews of the principals of your business. Brief answers to key lender questions of how much you ll need, how you ll use it, and how will you pay it back? This should be a two to three page document and can be considered a mutual qualifier. It determines if the bank has any interest in lending you funds before you spin your wheels for hours in front of the loan officer. You may want to end the document with your phone number so that the banker can call you back for an appointment or discussion. If you ve dazzled the loan officer sufficiently and have obtained an appointment to meet with him, then it s time to prepare the big guns . The ammo you ll come prepared with will be three years of personal tax returns for all the principals of your company and the existing business. Include credit reports on all principals, a complete and impressive business plan, and collateral and capitalization information. This sounds like a lot of information and will require immense effort, but that s why business ownership isn t for everyone. In addition to being prepared with all that paperwork be prepared for any off-the-wall questions the lender might throw at you. Take time to think about and originate a 30-second commercial about what you plan on doing and how it will benefit them and the business. Be prepared to explain away any credit blemishes that show up on the credit reports before the banker has an opportunity to worry about them. Be sure you re able to show cash-flow understanding and awareness, without which any business is doomed. Plot your most realistic estimated cash flow and bank account balance. Make sure the bank balance never goes negative, and for a good touch show the loan repayment as a separate line item. This shows the banker that you understand priorities. Collateral may be needed to satisfy the lender s angst about repayment of the loan, and unfortunately most small businesses have too few assets to satisfy this need. Many entrepreneurs are forced to pledge personal assets such as their home to allay the bank. This may seem scary, and it is, unless you re really sure of your success. It sounds like a daunting task, but with some preparation and determination it can be done. It s not as easy as all the ads you ve heard, and just the fact that you are starting a woman-owned business won t cut any ice with a banker, but all of life is a gamble isn t it? After all, that s why you re an entrepreneur instead of a corporate lackey isn t it? GO FOR THE GOLD! -30-

WRITE ATTENTION GETTING ADVERTISEMENTS

Thursday, August 28th, 2008

The most important aspect of any business is selling the product or service. Without sales, no business can exist for very long. All sales begin with some form of advertising. To build sales, this advertising must be seen or heard by potential buyers, and cause them to react to the advertising in some way. The credit for the success, or the blame for the failure of almost all ads, reverts back to the ad itself. Generally, the “ad writer” wants the prospect to do one of the following: a) Visit the store to see and judge the product for himself, or immediately write a check and send for the merchandise being advertised. b) Phone for an appointment to hear the full sales presentation, or write for further information which amounts to the same thing. The bottom line in any ad is quite simple: To make the reader buy the product or service. Any ad that causes the reader to only pause in this thinking, to just admire the product, or to simply believe what’s written about the product - is not doing its job completely. The “ad writer” must know exactly what he wants his reader to do, and any that does not elicit the desired action is an absolute waste of time and money. In order to elicit the desired action from the prospect, all ads are written according to a simple “master formula” which is: 1) Attract the “attention” of your prospect. 2) “Interest” your prospect in the product 3) Cause your prospect to “desire” the product 4) Demand “action” from the prospect Never forget the basic rule of advertising copywriting: If the ad is not read, it won’t stimulate any sale; if it is not seen, it cannot be read; and if it does not command or grab the attention of the reader, it will not be seen! Most successful advertising copywriters know these fundamentals backwards and forwards. Whether you know them already or you’re just now being exposed to them, your knowledge and practice of these fundamentals will determine the extent of your success as an advertising copywriter. CLASSIFIED ADS Classified ads are the ads from which all successful businesses are started. These small, relatively inexpensive ads, give the beginner an opportunity to advertise his product or service without losing his shirt if the ad doesn’t pull or the people don’t break his door down with demands for his product. Classified ads are written according to all the advertising rules. What is said in a classified ad is the same that’s said in a larger, more elaborate type of ad, except in condensed form. To start learning how to write good classified ads, clip ten classified ads form ten different mail order type publications - ads that you think are pretty good. Paste each of these ads onto a separate sheet of paper. Analyze each of these ads: How has the writer attracted your attention - what about the ads keeps your interest - are you stimulated to want to know more about the product being advertised - and finally, what action must you take? Are all of these points covered in the ad? How strongly are you “turned on” by each of these ads? Rate these ads on a scale of one to ten, with ten being the best according to the formula I’ve given you. Now, just for practice, without clipping the ads, do the same thing with ten different ads from a Wards or Penney’s catalog. In fact, every ad you see form now on, quickly analyze it, and rate it somewhere on your scale. If you’ll practice this exercise on a regular basis, you’ll soon be able to quickly recognize the “Power Points” of any ad you see, and know within your own mind whether an ad is good, bad or otherwise, and what makes it so. Practice for an hour each day, write the ads you’ve rated 8, 9 and 10 exactly as they’ve been written. This will give you the “feel” of the fundamentals and style necessary in writing classified ads. Your next project will be to pick out what you consider to be the ten “worst” ads you can find in the classifieds sections. Clip these out and paste them onto a sheet of paper so you can work on them. Read these ads over a couple of times, and then beside each of them, write a short comment stating why you think it’s bad: Lost in the crowd, doesn’t attract attention - doesn’t hold the reader’s interest - nothing special to make the reader want to own the product - no demand for action. You probably already know what’s coming next, and that’s right. Break out those pencils, erasers and scratch paper - and start rewriting these ads to include the missing elements. Each day for the next month, practice writing the ten best ads for an hour, just the way they were originally written. Pick out ten of the worst ads, analyze those ads, and then practice rewriting those until they measure up to doing the job they were intended to do. Once you’re satisfied that the ads you’ve rewritten are perfect, go back into each ad and cross out the words that can be eliminated without detracting from the ad. Classified ads are almost always “finalized” in the style of a telegram. EXAMPLE: I’ll arrive at 2 o’clock tomorrow afternoon, the 15th. Meet me at Sardi’s. All my love, Jim. EDITED FOR SENDING: Arrive 2pm - 15th - Sardi’s. Love, Jim. CLASSIFIED AD: Save on your food bills! Reduced prices on every shelf in the store! Stock up now while supplies are complete! Come on in today, to Jerry’s Family Supermarkets! EDITED FOR PUBLICATION: Save on Food! Everything bargain priced! Limited Supplies! Hurry! Jerry’s Markets! It takes dedicated and regular practice, but you can do it. Simply recognize and understand the basic formula - practice reading and writing the good ones - and rewriting the bad ones to make them better. Practice, and keep at it, over and over, every day - until the formula, the idea, and the feel of this kind of ad writing becomes second nature to you. This is the ONLY WAY to gain expertise in writing good classified ads. DISPLAY ADVERTISEMENTS A display or space ad differs from a classified ad because it has a headline, layout, and because the style isn’t telegraphic. However, the fundamentals of writing the display or space ad are exactly the same as for a classified ad. The basic difference is that you have more room in which to emphasize the “master formula.” Most successful copywriters rate the headline and/or the lead sentence of an ad as the most important part of the ad, and in reality, you should do the same. After all, when you ad is surrounded by hundreds of other ads, and information or entertainment, what makes you think anyone is going to see your particular ad? The truth is, they’re not going to see your ad unless you can “grab” their attention and entice them to read all of what you have to say. Your headline, or lead sentence when no headline is used, has to make it more difficult for your prospect to ignore or pass over, than to stop and read your ad. If you don’t capture the attention of your reader with your headline, anything beyond is useless effort and wasted money. Successful advertising headlines - in classified ads, your first three to five words serve as your headline - are written as promises, either implied or direct. The former promises to show you how to save money, make money, or attain a desired goal. The latter is a warning against something undesirable. EXAMPLE OF A PROMISE: Are You Ready To Become A Millionaire - In Just 18 Months? EXAMPLE OF A WARNING: Do You Make These Mistakes In English? In both of these examples, I’ve posed a question as the headline. Headlines that ask a question seem to attract the reader’s attention almost as surely as a moth is drawn to a flame. Once he’s seen the question, he just can’t seem to keep himself from reading the rest of the ad to find out the answer. The best headline questions are those that challenge the reader; that involve his self esteem, and do not allow him to dismiss your question with a simple yes or no. You’ll be the envy of your friends is another kind of “reader appeal” to incorporate into your headline whenever appropriate. The appeal has to do with basic psychology: everyone wants to be well thought of, and consequently, will read into the body of your ad to find out how he can gain the respect and accolades of his friends. Wherever and whenever possible, use colloquialisms or words that are not usually found in advertisements. The idea is to shock or shake the reader out of his reverie and cause him to take notice of your ad. Most of the headlines you see day in and day out, have a certain sameness with just the words rearranged. The reader may see these headlines with his eyes, but his brain fails to focus on any of them because there’s nothing different or out of the ordinary to arrest his attention. EXAMPLE OF COLLOQUIALISM: Are You Developing a POT BELLY? Another attention-grabber kind of headline is the comparative priced magazine headline: Three For Only $3, Regularly $3 Each! Still another of the “tried and proven” kind of headlines is the specific question: Do You Suffer From These Symptoms. And of course, if you offer a strong guarantee, you should say so in your headline: Your Money Refunded, If You Don’t Make $100,00 Your First Year. How To headlines have a very strong basic appeal, but in some instances, they’re better used as book titles than advertising headlines. Who Else wants in on the finer things - which your product or service presumably offers - is another approach with a very strong reader appeal. The psychology here being the need of everyone to belong to a group - complete with status and prestige motivations. Whenever, and as often as you can possible work it in, you should use the word “you” in your headline, and throughout your copy. After all, your ad should be directed to “one” person, and the person reading your ad wants to feel that you’re talking to him personally, not everyone who lives on his street. Personalize, and be specific! You can throw the teachings of your English teachers out the window, and the rules of “third person, singular” or whatever else tends to inhibit your writing. Whenever you sit down to write advertising copy intended to pull the orders - sell the product - you should picture yourself in a one-on-one situation and “talk” to your reader just as if you were sitting across from him at your dining room table. Say what you mean, and sell HIM on the product your offering. Be specific and ask him if these are the things that bother him - are these the things he wants - and he’s the one you want to buy the product… The layout you devise for your ad, or the frame you build around it, should also command attention. Either make it so spectacular that it stands out like lobster at a chili dinner, or so uncommonly simple that it catches the reader’s eye because of its very simplicity. It’s also important that you don’t get cute with a lot of unrelated graphics and artwork. Your ad should convey the feeling of excitement and movement, but should not tire the eyes or disrupt the flow of the message you are trying to present. Any graphics or artwork you use should be relevant to your product, it’s use and/or the copy you have written about it. Graphics should not be used as artistic touches, or to create an atmosphere. Any illustrations with your ad should compliment the selling of your product, and prove or substantiate specific points in your copy. Once you have your reader’s attention, the only way you are going to keep it, is by quickly and emphatically telling him what your product will do for him. Your potential buyer doesn’t care in the least how long it’s taken you to produce the product, how lone you have been in business, nor how many years you’ve spend learning your craft. He wants to know specifically how he is going to benefit form the purchase of your product. Generally, his wants will fall into one of the following categories: Better health, more comfort, more money, more leisure time, more popularity, greater beauty, success and/or security. Even though you have your reader’s attention, you must follow through with an enumeration of the benefits you can gain. In essence, you must reiterate the advantages, comfort and happiness he’ll enjoy - as you have implied in your headline. Mentally picture your prospect - determine his wants and emotional needs - put yourself in his shoes, and ask yourself: If I were reading this ad, what are the things that would appeal to me? Write your copy to appeal to your reader’s wants and emotional needs/ego cravings. Remember, it’s not the “safety features” that have sold cars for the past 50 years - nor has it been the need of transportation - it has been, and almost certainly always will be the advertising writer’s recognition of people’s wants and emotional needs/ego cravings. Visualize your prospect, recognize his wants and satisfy them. Writing good advertising copy is nothing more or less than knowing “who” your buyers are; recognizing what he wants; and then telling him how your product will fulfill each of those wants. Remember this because it’s one of the “vitally important” keys to writing advertising copy that does the job you intend for it to do. The “desire” portion of your ad is where you present the facts of your product; create and justify your prospect’s conviction, and cause him to demand “a piece of the action” for himself. It’s vitally necessary that you present “proven facts” about your product because survey results show that at least 80% of the people reading your ad - especially those reading it for the first time - will tend to question its authenticity. So, the more facts you can present in the ad, the more credible your offer. As you write this part of your ad, always remember that the more facts about the product you present, the more product you’ll sell. People want facts as reasons, and/or excuses for buying a product - to justify to themselves and others, that they have not been “taken” by a slick copywriter. It’s like the girl who wants to marry the guy her father calls a “no good bum.” Her heart - her emotions - tell her yes, but she needs to nullify the seed of doubt lingering in her mind - to rationalize her decision to go on with the wedding. In other words, the “desire” portion of your ad has to build belief and credibility in the mind of your prospect. It has to assure him of his good judgment in the final decision to buy - furnish evidence of the benefits you have promised - and afford him a “safety net” in case anyone should question his decision to buy. People tend to believe the things that appeal to their individual desires, fears and other emotions. Once you have established a belief in this manner, logic and reasoning are used to support it. People believe what they “want” to believe. Your reader “wants” to believe your ad if he has read it through this far - it is up to you to support his initial desire. Study your product and everything about it - visualize the wants of your prospective buyers - dig up the facts, and you’ll almost always find plenty of facts to support the buyer’s reasons for buying. Here is where you use results of tests conducted, growing sales figures to prove increasing popularity, and “user” testimonials or endorsements. It’s also important that you present these facts - test results, sales view, and not that of the manufacturer. Before you end this portion of your ad and get into your demand for action, summarize everything you’ve presented thus far. Draw a mental picture for your potential buyer. Let him imagine owning the product. Induce him to visualize all of the benefits you have promised. Give him the keys to seeing himself richer, enjoying luxury, having time to do whatever he would like to do, and with all of his dreams fulfilled. This can be handled in one or two sentences, or spelled out in a paragraph or more, but it is the absolute ingredient you must include prior to closing the sale. Study all the sales presentations you have ever heard - look at every winning ad - this is the element included in all of them that actually makes the sale for you. Remember it, use it, and don’t try to sell anything without it. As Victor Schwab puts is so succinctly in his best selling book, How To Write A Good Advertisement: Every one of the fundamentals in the “master formula” is necessary. Those sitting across from him at your dining people who are “easy” to sell may perhaps be sold even if some of these factors are left out, but it’s wiser to plan your advertisement so that it will have a powerful impact upon those who are “hardest” to sell. For, unlike fact-to-face selling, we cannot in printed advertising come to a “trial close” in our sales talk - in order to see if those who are easier to sell will welcome the dotted line without further persuasion. We must assume that we are talking to the hardest ones - and that the more thoroughly our copy sells both the hard and the easy, the better chance we have against the competition for the consumer’s dollar - and also the less dependent we will be upon the usual completely ineffective follow through on our advertising effort which later takes place at the sales counter itself. ASK FOR ACTION! DEMAND THE MONEY! Lots of ads are beautiful, almost perfectly written, and quite convincing - yet they fail to ask for or demand action form the reader. If you want the reader to have your product, then tell him so and demand that he send his money now. Unless you enjoy entertaining your prospects with your beautiful writing skills, always demand that he complete the sale now, by taking action now - by calling a telephone number and ordering, or by writing his check and rushing it to the post office. Once you have got him on the hook, land him! Don’t let him get away! Probably, one of the most common and best methods of moving the reader to act now, is written in some form of the following: All of this can be yours! You can start enjoying this new way of life immediately, simply by sending a check for $XX! Don’t put it off, then later wish you had gotten in on the ground floor! Make out that check now, and “be IN on the ground floor!” Act now, and as an “early-bird” buyer, we’ll include a big bonus package - absolutely free, simply for acting immediately! You win all the way! We take all the risk! If you are not satisfied, simply return the product and we will quickly refund your money! Do it now! Get that check on its way to us today, and receive the big bonus package! After next week, we won’t be able to include the bonus as a part of this fantastic deal, so act now! The sooner you act, you more you win! Offering a reward of some kind will almost always stimulate the prospect to take action. However, in mentioning the reward or bonus, be very careful that you don’t end up receiving primarily, requests for the bonus with mountains of requests for refunds on the product to follow. The bonus should be mentioned only casually if you are asking for product orders; and with lots of fanfare only when you are seeking inquiries. Too often the copywriter, in his enthusiasm to pull in a record number of responses, confuses the reader by “forgetting about the product,” and devoting his entire space allotted for the “demand for action” to sending for the bonus. Any reward offered should be closely related to the product, and a bonus offered only for immediate action on the part of the potential buyer. Specify a time limit. Tell your prospect that he must act within a certain time limit or lose out on the bonus, face probably higher prices, or even the withdrawal of your offer. This is always a good hook to get action. Any kind of guarantee you offer always helps you produce action from the prospect. And the more liberal you can make your guarantee, the more product orders you will receive. Be sure you state the guarantee clearly and simply. Make it so easy to understand that even a child would not misinterpret what you are saying. The action you want your prospect to take should be easy - clearly stated - and devoid of any complicated procedural steps on his part, or numerous directions for him to follow. Picture your prospect, very comfortable in his favorite easy chair, idly flipping through a magazine while “half-watching” TV. He notices your ad, reads through it, and he is sold on your product. Now what does he do? Remember, he’s very comfortable - you have “grabbed” his attention, sparked his interest, painted a picture of him enjoying a new kind of satisfaction, and he is ready to buy… Anything and everything you ask or cause him to do is going to disrupt this aura of comfort and contentment. Whatever he must do had better be simple, quick and easy! Tell him without any ifs, ands or buts, what to do - fill out the coupon, include your check for the full amount, and send it in to us today! Make it as easy for him as you possibly can - simply and dirert. And by all means, make sure your address is on the order form he is supposed to complete and mail in to you - your name and address on the order form, as well as just above it. People sometimes fill out a coupon, tear it off, seal it in an envelope and don’t know where to send it. The easier you make it for him to respond, the more responses you’ll get! There you have it, a complete short course on how to write ads that will pull more orders for you - sell more of your product for you. It’s important to learn “why” ads are written as they are - to understand and use, the “master formula” in your own ad writing endeavors. By conscientiously studying good advertising copy, and practice in writing ads of your own, now that you have the knowledge and understand what makes advertising copy work, you should be able to quickly develop your copywriting abilities to produce order-pulling ads for your own products. Even so, and once you do become proficient in writing ads for your own products, you must never stop “noticing” how ads are written, designed and put together by other people. To stop learning would be comparable to shutting off from the rest of the world. The best ad writers are people in touch with the world in which they live. Everytime they see a good ad, they clip it out and save it. Regularly, they pull what makes them good, and why they work. There’s no school in the country that can give you the same kind of education and expertise so necessary in the field of ad writing. You must keep yourself up-to-date, aware of, and in-the-know about the other guy - his innovations, style, changes, and the methods he is using to sell his products. On-the-job training - study and practice - that’s what it takes - and if you have got that burning ambition to succeed, you can do it too! QUESTIONS & ANSWERS 1. WHAT’S THE MOST PROFITABLE WAY TO USE CLASSIFIEDS… Classifieds are best used to build your mailing list of qualified prospects. Use classified to offer a free catalog, booklet or report relative to your product line. 2. WHAT CAN YOU SELL “DIRECTLY” FROM CLASSIFIEDS… Generally, anything and everything, so long as it doesn’t cost more than five dollars which is about the most people will pay in response to an offer in the classifieds. These types of ads are great for pulling inquiries such as: Write for further information; Send $3, get two for the price of one; Dealers wanted, send for product info and a real money-maker’s kit! 3. WHAT ARE THE BEST MONTHS OF THE YEAR TO ADVERTISE… All twelve months of the year! Responses to your ads during some months will be slower in accumulating, but by keying your ads according to the month they appear, and a careful tabulation of your returns from each keyed ad, you will see that steady year round advertising will continue to pull orders for you, regardless of the month it’s published. I’ve personally received inquiries and orders from ads placed as long as 2 years previous to the date of the response! 4. ARE MAIL ORDER PUBLICATIONS GOOD ADVERTISING BUYS… The lease effective are the ad sheets. Most of the ads in these publications are “exchange ads,” meaning that the publisher of ad sheet “A” runs the ads of publisher “B” without charge, because publisher “B” is running the ads of publisher “A” without charge. The “claimed” circulation figures of these publications are almost always based on “wishes, hopes and wants” while the “true” circulation goes out to similar small, part-time mail order dealers. Very poor medium for investing advertising dollars because everybody receiving a copy is a “seller” and nobody is buying. When an ad sheet is received by someone not involved in mail order, it is usually given a cursory glance and then discarded as “junk mail.” Tabloid newspapers are slightly better than the ad sheets, but not by much! The important difference with the tabloids is in the “helpful information” articles they try to carry for the mail order beginner. A “fair media” for recruiting dealers or independent sales reps for mail order products, and for renting mailing lists, but still circulated amongst “sellers” with very few buyers. Besides that, the life of a mail order tab sheet is about the same as that of your daily newspaper. With mail order magazines, it depends on the quality of the publication and its business concepts. Some mail order magazines are nothing more than expanded ad sheets, while others - such as BOOK BUSINESS MART - strive to help the opportunity seekers with on-going advice and tips he can use in the development and growth of his own wealth-building projects. Book Business Mart is not just the fastest growing publication in the mail order scene today; it’s also the first publication in more than 20 years to offer real help anyone can use in achieving his own version of “The American Dream” of building one’s own business form a “shoestring beginning” into a multi-million dollar empire! 5. HOW CAN I DECIDE WHERE TO ADVERTISE MY PRODUCT… First of all, you have to determine who your prospective buyers are. Then you do a little bit of market research. Talk to your friends, neighbors and people at random who might fit this profile. Ask them if they would be interested in a product such as yours, and then ask them which publications they read. Next, go to your public library for a listing of the publications of this type from the Standard Rate & Data Service catalogs. Make a list of the addresses, circulation figures, reader demographics and advertising rates. To determine the true costs of your advertising and decide which is the better buy, divide the total audited circulation figure into the cost for a one inch ad: $10 per inch with a publication showing 10,000 circulation would be 10,000 into $10 or 10 per thousand. Looking at the advertising rates for Book Business Mart, you would take 42,500 into $15 for an advertising rate of less that THREE TENTHS OF ONE CENT PER THOUSAND. Obviously, your best buy in this case would be Book Business Mart because of the lower cost per thousand. Write and ask for sample copies of the magazines you have tentatively chosen to place your advertising in. Look over their advertising - be sure that they don’t or won’t put your ad in the “gutter” which is the inside column next to the binding. How many other mail order type ads are they carrying - you want to go with a publication that’s busy, not one that has only a few ads. The more ads in the publication, the better the response the advertisers are getting, or else they wouldn’t be investing their money in that publication. To “properly” test your ad, you should let it run through at least three consecutive issues of any publication. If your responses are small, try a different publication. Then, if your responses are still small, look at your ad and think about rewriting it for greater appeal, and pulling power. In a great many instances, it’s the ad and not the publication’s pulling power that’s at fault!

At Bat In the Second Inning!

Sunday, August 24th, 2008

A growing number of us can now expect to live close to or past 100 years, so 50 has become midlife. Today instead of approaching midlife with the obligations of work and family, baby boomers are looking to a second half they pretty much design as they wish. For many of them, the results don t look much like what their parents and grandparents called retirement. Whether because of layoffs or because they re weary of their jobs, many are considering new possibilities for their post-50 years and that includes starting a business of their own. Many of these business endeavors combine their passions and talents into a revenue-producing career. This marriage fits their goals in ways a salaried job rarely could. Some work full-time, but some work part of a day, week, month, or year. Many are pursuing work similar to what they did when employed, while others are staking out entirely new careers. The obstacles that post-50s face in starting a business are not substantially different from those anyone else faces when becoming self-employed. Without exception, most consider their age as an advantage in communicating credibility to clients and customers. What a difference from the ageism experienced by so many on the job! No wonder the U.S. Small Business Administration is finding the ages of start-up entrepreneurs is trending older. I know of a friend who after a 30-year career as a journalist found his work shifting from working on articles to working with administrators. The bureaucratic and political hassles that came with the job of editor of a consumer magazine were no longer what he wanted. Figuring there was a good chance he d live to 90 or beyond, he started thinking about what he wanted to do with the next third of his life. Luckily he d developed a passion for pottery in his 40 s and the more he did it, the more he liked it. So when offered a chance to retire early at 63, he jumped at the chance to turn his hobby into a second career. His biggest challenge was to find ways to market his work, and he found doing studio sales several times a year worked for him. He and his wife purchased a 20-acre home in Virginia, and remodeled a four-stall barn into a studio workshop and living quarters. Three years later, between the studio sales, galleries that carry his work, annual crafts shows, his Web site and some great publicity his business is growing well. Best of all he loves what he does and envisions doing it until they carry him out. He sees no reason for not having another 30-year career after his first. More and more old gray mares are following the same path. So if you re nearing or are 50, you are coming up to bat in the second inning of your life. Why not hit it out of the park!

I Need Your Help, Please!

Thursday, August 21st, 2008

I ve been writing to you for some time now. I ve tried to give you the benefit of my entrepreneurial counseling, and have touched on many topics. We ve had articles on customer service, positioning yourself in your niche, marketing, advertising, giving your customer what they want, and even some tips for you about the Internet. I hope you found them helpful and interesting. The time has now come for me to find out what MY readercustomers want, or rather what you as my reader wants. I may not be a well of unlimited information, although I think I come close, but I AM FREE! What better deal could you get? What I need to know from my readers is what has you stumped in your business? What do you want to learn more about? What problems do you have that could be alleviated if you only knew how to solve them? In other words, what I m trying to do is to make this column work for you. Give you the information that will help you in your business. The only way I can do this, is if I know what you want from this column. In order for me to help you, I need you to help me. For this purpose I ve set up a very special page for my readers on the Internet at: www.YOUR LINK HERE.com There you will find a short form to fill out, this shouldn t take you more than a few minutes, and hopefully we can turn this column into a helpful tool by working together. You ve heard me say, more than once, in order to be successful you have to know what your target market wants not just what you re offering. This is the point where I must live by my words. I want my readers to look forward to reading my column because they know it is going to help them in their business. If you think about it for a minute, you ll see that this is a win-win situation for both of us. For you because you ll have a source for solving some of your business problems which in turn will increase your profits. For me, because I ll know what you need and are looking for from this column. I enjoy helping fellow entrepreneurs to become successful, and up until now I ve been using the shotgun approach. By that I mean that I ve covered subjects that were helpful to any business person and of general interest. Well, now it s time for me to trade in my shotgun for a laser pistol. I want to be of help to you in your endeavor by zeroing in on subjects that you want covered but don t have the time to research on your own. After all, you ve got to work at earning a living from your business and don t have the luxury of time to do your own research. That s where my column comes into the picture let my fingers do the walking for you. Ultimately, if you win then I win. So please take a few minutes and go to www:YOUR LINK HERE.com and tell me what you want. Let s work together to work better.

Are You Building A Wall?

Monday, August 18th, 2008

Americans throw away enough paper in a year to build a wall 12 feet high from New York City to Los Angeles. This fact is from earth911.org, a public service Website that focuses on recycling issues. Now that s a lot of paper! Despite the hype that computer makers fed us a few years ago, the computer has NOT decreased the paper used in most offices today. According to the U.S. Conference of Mayors Clean Your Files Day Program, the average citizen uses 1 pounds of paper per day. The average office employee uses 10,000 sheets of paper per year according to the Environmental Defense Fund. Now that s just the figures on paper. What about the ink cartridges and cell phones that are tossed into landfills each year. No matter how you slice it, recycling today is big business. Whether it s glass, paper, plastic, steel, ink cartridges, computers, magazines, cardboard boxes, cell phones or another material, recycling products reduces waste and cost, and saves energy and resources. So why isn t your business utilizing a recycling program? Many small business owners feel overwhelmed when asked about recycling, but it needn t be daunting because there are a lot of resources available. Many of them are just an Internet click away. Some that you might look at are: www.earth911.org www.epa.gov/recyclecity/ www.greenofficerecycling.com www.obviously.com/recycle www.nre-recycle.org www.recyclingtoday.com There may also be businesses nearby you that have been there and done that and may be willing to share advice, strategies, plans, and programs. Why reinvent the wheel when you can duplicate it? Here are 18 steps that will help start your recycling program, and help your business become a good corporate citizen: Make the decision to start. Believing that a recycling program is positive and beneficial to the business must exist as the foundation. Get buy-in from other manage-ment and employees. Decide if you need a designated recycling coordinator. This could be a volunteer who feels strongly about the subject. Find a mentor or model. Find a business similar in size that has a successful program and ask for help. Create a program plan. This should include goals and measurable objectives. Know what can be recycled what to collect and what to toss. There are regulations as to what can and cannot be recycled. Understand recycling and educate the team. Tell your employees why you want to recycle, why it s important and what s expected of each employee. Determine a collection method. Decide from the beginning whether recyclables will be commingled or separated by source. Make recycling convenient and easy. Don t skimp on collection bins, for example. If a bin is easier to find than a trash can than your program is bound to work. Choose a method for removal. Here in Santa Clarita we re fortunate to have our own trash companies alert about recycling and willing to assist citizens. Establish program guidelines. Keep it simple and foolproof for employees. Launch your program and get team buy in . Make it fun. Schedule a kick off program, or even a company-wide contest to name the program. Implement! Now it s time to put the program into practice. Purchase and place bins, label recycling areas/bins. Make sure you place signs about what is recyclable and what isn t in the same vicinity as the collection bins. Promote and market your program. Keep the momentum going among your employees. Some companies even offer incentive programs to recognize individuals or departments for their efforts. Evaluate the program periodically. Analyze your program s effectiveness and let team members know the result. How much waste is being saved? Is it reducing costs? Are supply expenses lower? Keep it going and build on the program. If you started with just paper, now extend it to plastic/ink cartridges, for example. Publicize successes. Internally promote the program with workers via a newsletter or email. Externally, use it for a PR boost by sharing results with local and trade publications with a Press Release. Hey, great advertising! Close the loop. Buy recycled content products for your business, reduce waste in the office, and reuse materials when possible. The start of a new business year is the perfect time to start a recycling program in your business. It s just what s needed to re-energize holiday-worn workers, and make them feel like a part of your company s planning team. Happy Recycling!

An Online Newsletter

Thursday, August 14th, 2008

When you start an online newsletter you have the opportunity to collect opt-in email addresses to build your subscription base and establish creditability with your subscribers so that they may want to purchase products from you, a trusting source. The best part about an online newsletter is that it is free to start up. With an online newsletter you can offer your subscribers juicy daily or weekly information and they will love it. It will slowly build up their curiosity and they may purchase a monthly membership or products from you because they love receiving the information you supply. Now, if you send them junk, the complete opposite will occur, so having an online newsletter takes work, but you can always pay someone to do it for you. So, with all this work put into it should you consider charging for subscription. That depends on what you want to accomplish. Do you want to attract visitors and entice them to your main product. Or are you only offering an online newsletter with no products. How often do you send out autoresponders and how in depth and valuable is your newsletter. Is this information easily found free somewhere else on the Internet. Free newsletters are much easier because you can get a lot of people opt-in and you can sell them a subscription in the future. Everyone loves free stuff. Occasionally, at the end of the email you may want to offer special subscriber only promotions or notify your subscribers of new products or services. You could even offer special subscriber only bonuses with a purchase. By the way, if you send your subscribers what begins to look like sales letters, they will opt out quicker than you can say wait! Be careful because this is your potential customer crowd and it is like gold to you.

An Automated Ordering System

Sunday, August 10th, 2008

When you have an online company, it only makes sense to use all the online resources available. The payments you accept should be credit card and paypal, if you choose. Are you going to accept international orders. If you are going to receive orders daily, which is the goal, you will want to use an online shopping cart that automatically accepts the credit card, approves it and delivers the autoresponder emails and in the end, the product itself. What exactly is an online shopping cart. It is a lot like a regular shopping cart, where you can add or remove items as you please. It calculates shipping and taxes and the total of the purchase and passes this information along to the merchant account by a secure site, which protects the customers information. Choosing a shopping cart is crucial because if you choose the right one, it can double your sales. Imagine trying to purchase a product and you are entering all your information when you order and the pages take forever to load. Or worse, there are too many forms to fill out or you cannot find the pricing or product list easily. You would abandon that idea pretty quickly. In addition, you will also need a reputable merchant account that can handle the amount of sales you are going to send their way. You do not want to find a merchant account that requests a very high escrow fund, because this can be difficult to come up with. Before you launch your product, you need to make sure you have a way to provide customer service. You could hire a fulfillment house that takes care of customer service, orders, credit cards, and shipping all at once. But, if you intend to have a lot of business, this is not very cost effective. It would be much easier to take care of the customer service with paid employees and have a special fulfillment house only duplicate, package, and ship products for you.

Advertising 101 For Entrepreneurs

Wednesday, August 6th, 2008

Now that we ve covered the approach you re going to take in your ads let s take a look at Aspects of the Approach . These are actually subsections that needed a place to live, but don t tell anyone. Tone & Personality: You have to make a decision about your ad relating to its tone and personality. What disposition/character/behavior/or attitude is going to be the most effective? Now tone is the undercurrent of your ad or the mood. Personality is the make-up of the ad s character. It s important to think about this because some advertisers ignore it and when they pull the pieces together (picture, copy, etc) the ad doesn t project anything. For instance think of the grabber line being, Big budget delivers big results. Hmm? Just as money can t solve all social ills, big budgets don t automatically create inventive advertising. Many times we ve seen an enormous budget plus a rotten idea = a huge failure. Yet, there are times when we see a small budget plus a first-rate idea = marvelous success. Be prepared to make do and still make it fantastic. Break the Limits. If you have a small ad, demonstrate that you re better than the space you re in. Remember the prospect doesn t care about the size of the ad, he only cares about what you re doing for him. Turn Adversity Into Advantage. If your client insists on showing woodchucks in his jewelry ad, turn out the best woodchuck jewelry ad ever. You ll get points for originality, and because it s a zag you ll probably get results. Use What s Already Available. Before you spend a lot on photos and illustrations, look at what you have lying around. It s free. Can the Approach Work? Not to discourage free form thinking, but you should reject approaches that demand too much BLT (budget, labor, and time). Instead, prepare ads that require your talent and not months and bucks. Frugality Makes You Timely. The smaller the production budget, the sooner your ad can get in the market. This is the Rule of Thumb. The reason is because you re not relying on other resources. So, unchain your ads from expenses and move fast. This is worthwhile because if economic conditions suddenly change (and they will), you can quickly respond with a new ad message that addresses the new economy. You might decide to say, Now more than ever, it pays to use our product. You ll again leave your competitors in the dust because they re tied to expensive ads and long production timetables. Watch Your Language. Most people don t realize the power that s packed in language. One misused phrase can upset thousands of people, so keep you antennas up and use your judgment. For instance, use nothing at the expense of a certain group. This will offend people. Instead, show that an ad can get results from scores of readers and a smile from every one of them. Don t make fun of the prospect in a we re just kidding way. He s not paying much attention to your ad, so he won t get the subtle nuances of your wit only enough to be insulted. If you can follow these hints you should be able to work out a cracker-jack ad for either yourself or a client. Next week we ll take a look at handling the media. -30- KNOW THE SCORE by Maureen Stephenson Advertising 101 By/For Entrepreneurs When you re doing your ad, remember that you must use psychology. You must, and I mean MUST, make your prospect want your product more than anything they can think of and right NOW! By the time they get through reading your ad, they should be panting to run out to your store or shove their check in an envelope and run to the mailbox. Today I m going to give you some tips that will help you. First always remember that enticing, siren of advertising AIDA. Who is AIDA you ask? Well AIDA stands for, A=Attention Grab your targets attention. I=Interest Create curiosity D=Detail Provide details A=Action Call for action If you have AIDA before you every time you start to do an ad, you ll never fail. The most important point is the call to action . You d be surprised at the number of sales that are lost because the client is never asked to order now, try it for 30 days, fill out the coupon - or whatever you use to make your client take action. Here are some advertising pearls that will keep you on the beam: Force yourself to operate under deadlines. When you start buying advertising space you ll have to meet deadlines so get used to them. A good headline answers the question WIIFM (What s In It For Me)? A customer who buys from you two times is twice as likely to buy as a customer that only buys from you once. If you ve got a good product, a good, liberal, strong guarantee should go with it and will increase your sales. The amount of returns/refunds you get will be insignificant compared to the increase in sales. The more your sales letter looks like a personal letter, the better it will work. Remember the 40-40-20 rule for using direct mail. It breaks your success in three ways: 40% of you success is using the right list, another 40% is having the right offer, and 20% is everything else (copy, format, graphics, paper, etc.). In advertising it is better to offer a Free Bonus than to offer a discount. Direct mail advertising statistics show that mail delivered on Saturdays and Mondays get the poorest response. Best days are Tuesday, Wednesday, and Thursday-and in that order. Use testimonials in your ad and put them before the call to action and after the details about your widget. Buy 1 get 1 FREE always out-pulls 2 for the price of 1 . Nothing is more powerful than goodwill except ill will. If a client is dissatisfied, make good and make it fast. Always make your customer feel like they re the most important customer you have, and they ll keep buying from you and not your competitor. If you want to mail an ad for your business to prospects, research mailing lists on the Internet at: www.edithroman.com You ll have access to virtually every direct response mailing lists in the U.S. Sales copy can never be too long, it can only be boring. You can increase your response rate from a mailing if you add a post-it note on your sales letter. You can say something like, Only for the month of June , or Reply before 6/30 to get the discount. The best way to keep tabs on your competition is to become their customer and see how you re treated. In Direct Marketing (which ads by mail are called) there are only two rules: Rule #1: Test everything. Rule #2: See Rule #1 Ad copy type-set in ALL CAPITAL LETTERS is harder to read than all lowercase of Mixed Case. Repeat your offer and guarantee on your order form. Whenever possible, give your customers an extra added and unexpected bonus or gift along with the order to show your appreciation. There are only three ways to grow your business: (1) increase the number of customers; (2) increase your average dollars per sale; (3) increase the frequency you do business with your customer. Always remember, turn-over may feed your ego, but it won t feed your family. The more you treat your clients as friends, the more likely they ll talk about you and do more business with you. Don t ever let a Holiday come and go without offering your current customers a special deal in an ad. Use the event as the hook for the ad, and if you research the subject you ll find there s a holiday of some sort almost every month. Not just the big ones like Valentine s Day or Easter, but use one s like Groundhog s Day, National Dairy Month, Boy Scout s Week, or whatever you can work into your product line. Now that I ve introduced you to AIDA, and given you all these marketing pearls you should be able to compose an ad that will not only increase your presence in the marketplace, but also bring you more clients, business, and profits. -30- KNOW THE SCORE by Maureen Stephenson Image, Timesaving and Cash Saving Tips Since entrepreneurs are wearing all the hats in their business, every little shortcut or tip that makes life easier is always welcome. Let me share some been there-done that information with you to make your business life a little easier. Office furnishings and decorations say a great deal about you, so to convey the image you want to convey pay attention to these: Furniture Arrangement: Setting your desk in the middle of the floor with chairs facing it conveys a formal atmosphere. It conveys to your clients that you want to maintain a distance from visitors. Instead, place your desk against a wall (not facing it) to convey confidence. Messy Desks: A small amount of messiness implies comfort and friendliness, but too much clutter makes visitors think you don t care about making a good impression on anyone. The opposite extreme, an immaculate desk conveys coldness and could be perceived as you not having enough work to do. Decorations: Plants, drapes, and artwork will convey a comfortable, relaxed attitude. Books and artwork express your sincerity. Awards & Certificates: If job-related, they reassure visitors that you are experienced and competent. Planning is essential for the entrepreneur, and all you need is 30 minutes to plan your entire week if you use the OATS formula. Objectives: What results do you want to have by week end? Write them down and rank them. Activities: List the necessary activities you must do to achieve your goals, and rank them. Time: How much time will each activity require? Plan realistically allowing more time than you think you ll need to compensate for unexpected problems. Schedule: Look at your calendar and decide when you can do each activity. Most people underestimate the power of a schedule, but you won t accomplish anything if you don t schedule the time. Underlining reading material is another great timesaver. With the mountains of material entrepreneurs must read to keep abreast of their niche, being able to find it again when you need it is essential. After you ve read the article/book/paper/report, then go back and underline the important information so you can find it again easily. The reason for underlining after you has read it. is because most of us underline too many words before we ve finished the passage and understand the key points. Wait until you ve finished an entire section or chapter, then go back and highlight key points. Returning phone calls is another time-stealer for entrepreneurs. Time-management experts recommend setting aside an hour a day to make and return your phone calls. But which hour do you choose? The best times of day are the first two hours of the morning or the last two hours of the afternoon. Those are the times when most people are in the office and accessible. Do you think business is doing better because of your optimistic attitude? I would think so. However many management experts are now saying that pessimists make better managers. Why? Because they re always thinking of what could go wrong and are coming up with solutions to problems in case the worst happens. My suggestion is not to toss your optimism away, I ve found it very helpful some days, instead force yourself to write down everything that could go wrong with a new project, ideas, or employees. (Remember Murphy s Law Whatever can go wrong, will. ) Personally, I think Murphy was an optimist! My advice is to be optimistic but be prepared. Once you do this you ll naturally be prepared with solutions if disaster does strike. In this present age of computers and time-saving gadgets, we are at times prone to purchasing the latest thing that promises to save us some work. When it comes to purchasing software, a good question to ask yourself is: Is it better than a pencil? The answer will help you decide if the expense is really justified. Keep in mind that computers are supposed to make your work easier and faster. For the entrepreneur that travels overseas often, consider registering your handprint with the U.S. Immigration and Naturalization Service and obtaining an INSPASS card. It s not exactly Star Trek technology, but it s close. With the card, all you have to do is slide it through a machine, press your hand against a screen, and slip on through bypassing the lines. For information wit to: INSPASS, P.O. Box 2010, Newark, NJ 07114-2010 Want to impress your clients with Broadway shows? Call the Actor s Fund of America and ask for Fund Tix , 212-221-7300. The tickets are double the price, but half goes to charity (tax write off) and the seats are great. Are there days when you want to give up? Is your family telling you you re too old to try something new? Well age isn t always a factor in your success or failure. Consider these famous examples: Actor George Burns won his first Oscar at age 80. Golda Meir was 71 when she became prime minister of Israel. At 96, playwright George Bernard Shaw broke his leg falling out of a tree he was trimming in his backyard. Painter Grandma Moses didn t start painting until she was 80 years old. She completed more than 1,500 paintings after that; 25% of those were produced when she was past 100. Michelangelo was 71 when he painted the Sistine Chapel. Albert Schweitzer was still performing operations in his African hospital at 89. Doc Counsilman, at 58, became the oldest person ever to swim the English Channel. S. I. Hayakawa retired as president of San Francisco State University at 70, and then was elected to the U.S. Senate. Casey Stengel didn t retire from managing the New York Mets until he was 75. Entrepreneurs often have crazy ideas for making money and giving good customer service. The next one you have, remember the story of Phil Romano the founder of Fuddruckers the national hamburger chain. He once owned a small, out-of-the-way Italian restaurant called Macaroni s. He packed the place every Monday and Tuesday nights, a time when most restaurants struggle to keep their doors open. How? Apart from the obvious fact that Macaroni s served good food, Romano had a gimmick based on the old Psych 101 principle, Random rewards beget regular behavior. If you happened to be dining there on a randomly chosen Monday or Tuesday night, you and the other 200 customers received a letter instead of a bill at the end of the meal. The letter stated that because the Macaroni mission was to make you feel like guests, it seemed awkward to charge guests for having a good time. So, once each month on a Monday or Tuesday, and always unannounced, everyone would eat free. What did it cost Romano? One night comped out of 30 reduces his revenues by 3.3%, but he has a full house on 8 nights a month when the place would normally be empty. Word-of-mouth testimonials are one of the most effective forms of advertising, and in one fell swoop Romano got a couple hundred tongues wagging. Remember what Goethe said; Daring ideas are like chessmen moved forward; they may be beaten, but they may start a winning game. -30-