Rick Spence

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• Whats the best way to advertise a small business?

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    As efficiently as possible, depending on your target market. A mass-market consumer product may be best sold through traditional media, such as newspaper or radio ads; a business product might be sold best through direct mail, trade shows or pay-per-click ads. It depends on your market, your budget, and to some extent on your price point. Whatever you do, market creatively. Don’t copy your competitors' ads or brochures; take a completely different tack. Make your market sit up and take notice.

• I've just started my own catering company with the soft launch last year, and going part-time starting in May 2011. After only a couple of months, We are already growing at a rate that we will need to add a few more employees, and I'm looking to go full time with it starting in August. It's a unique concept that people really love. We've done a couple of corporate events with the largest being 100 people. How can we tap into this market more and get more of these gigs?

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    Join the local chamber of commerce; get involved in events and committees. Get to know your fellow members and network with those who are in a position to hire you. People buy from people they trust. Look for opportunities to showcase your wares and your service (maybe you could cater a lunch at the chamber – or just provide the best dessert ever!). Collect testimonials from all your satisfied clients, and plaster them all over your website and brochures. Don’t forget to ask those same clients to refer you to their contacts – put word of mouth to work for you!

• Is this a basic, reasonable way to go? In this partnership I am thinking: I do administrative work, Partner is doing skilled work (painter). He does most of the work as far as time spent goes. After we cover the costs he gets 80% and I get 20%. Anything after that we split 50-50. We both must reinvest 1/5th of that 50-50. It seems ok to me. Thank you in advance.

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    Apologies for responding so late; by now you probably know whether that split works or not. You don’t really provide enough information to ground an outside opinion: I’m not sure how many hours you work compared to your partner, and I don’t know at what point the rewards are split 50-50 I don’t think I’d reinvest 50-50 in the company with someone who gets 80% of the profits. Always run contracts like this by independent legal council (your partner should have his own lawyer, too). Any mistakes made at this early stage could come back to haunt you years from now.

• I'm in the process of starting a small business. What are the steps I need to take?

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    First, give your head a shake. This is a pretty elementary question for someone already starting a business.

    Step 1 is to hone your strategy by writing out as mission statement for your business: who do you help,what benefit do you provide them, why will you survive in a crowded marketplace? Check your local business development office for information on taxes, permits, hiring, health and safety concerns, etc, At the same time, call up as many people as you can find in the industry to pick their brains about what it takes to suceed in their business today. Focus especially on identifying gaps in the marketplace. Then work on a business plan. Don’t skimp: write down what your product does, who the market is, why people will buy it. Research production and distribution, write up a marketing plan, and do some financial forecasts for the first two years. Every extra hour you put into thinking before you start your business will pay off in the long run.

• What is the best small business loan or grant available

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    Very few loans or grants available. In Canada, SRED is best, if you’re doing research and development. CYBF has low-interest loans ($15,000, and possibly more) for qualifying Canuck entrepreneurs; they also provide invaluable one-on-one mentoring. Some provinces and states offer assistance in specific industries, such as high-tech, manufacturing and culture; hopefully you know about them. The best source of startup funds is your own bank account, the bank of mom and dad, or the equity (if any) in your home.

• I just launched my Sunglasses Brand last year, and I am looking to sell my products in stores. I don’t have enough money left for trade shows after manufacturing in Italy, but I am willing to pay a good commission to sales reps to help bring in some income. I have had no luck finding Sales reps for Sunglasses/Fashion. Where can I find sales reps? Or is there a better way to go about getting sales with retail stores?

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    Everyone wants sales reps. No one can find great sales reps. You may have to train your own: look for energetic, outgoing people who are charged up by opportunities and make their own breaks. Ask around to find out what great sales reps are being paid – because you’re going to have to pay in that ballpark too. One totally untested theory: start hanging out in real estate circles. There are lots of real estate agents starving in today’s market; they may be happy to do some moonlighting.

• I would like ideas on launching a magazine and increasing my subscribers base. The magazine will be available on-line, print and iPad.

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    This is a tough business, especially when you are lauching digitally and in print at the same time. I can only presume you have oodles of advertisers lining up to pay cash for ads in your magazine. I also presume you have a clear niche that delivers a unique and affluent audience in a compelling new way. If these factors are not there, you might want to rethink what you are doing. Print magazines are never going away, but they make for an expensive startup. Direct mail is the most common means of getting paid subscribers. You might also try sampling, sharing ads with other publications, or buying mailing lists that let you mail your mag to non-paying readers (this is known as controlled circulation). Major publishers are practically giving their magazine subscriptions away these days (under $1 per issue), so make sure you have an audience that can’t get your information and attitude anywhere else.

• Whats the Best way to Find an Investor for your start-up

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    It depends what kind of business you have, how much money you need, and what ROI you are offering. Most businesses don’t attract outside capital unless it’s love money (from family & friends) or an investment by a potential partner. When dividend stocks are paying 6%, why should investors risk their money in your business? If yours is a potentially high-growth firm, seek professional assistance to learn how to woo angel investors or VCs. If you’re starting a fairly conventional retail or service business, with largely predictable cash flows and average growth prospects, then you’re probably better to seek out a local angel investor (if not a sympathetic relative). Angels may be local doctors, dentists or entrepreneurs, affluent individuals who enjoy investing in new businesses. These people are hard to find. Ask your accountant or bank manager for leads. Ask what your bank can offer, though it will probably be limited to lending you your own money thru a home equity line of credit.

• If I want to start a textbook rental company, is it good for me to partner with Universities in order to minimize competition? If so, how do I do that?

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    Here’s my tip: Don’t ask me. Call up some universities and ask them. Speak to the bookstore managers, by all means, but also talk to academic deans and student unions to find out if they see value in what you are proposing.

    Nothing – no, not even Sprouter – replaces using every possible opportunity to speak with your target group and learn more about their problems, needs and wishes. If you are afraid of giving your idea away too soon, contact colleges outside of your geographic market range. (If you’re intending to build out in the U.S., call some schools in Canada. If you’re in Canada, call schools in the U.S. midwest or northeast. Their problems and pains will be similar.) Engage with your market. Engage with your market. Engage with your market.

• What's the difference between an advisory council and a board of advisors?

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    No formal distinction, really. An advisory board will usually be a group of people who meet regularly (though not necessarily often) to discuss a range of topics related to the operation of a particular company or organization. You need a variety of skills on that. (And you could call it a council if you want to.)

    More often, however, an advisory council is more of a showpiece than a working group. An advisory council often advises a company on just one thing – such as a council of experts from a specific industry advising a trade magazine covering that industry. Their expertise is generally narrower than that of an advisory board, and it usually deals more with industry topics rather than operations.

    I think every business should have an advisory board. Advisory councils are a more specialized breed, often providing industry perspective, but not general business expertise.