InsideUp Business Service Sourcing

5 Common Mistakes When Outsourcing

2011-12-15T13:23:00.001-08:00

Know about Collection Agencies

2011-12-15T13:23:00.000-08:00

Pros And Cons Of Outsourcing

2011-12-15T13:22:00.000-08:00

Take Full Advantage of Services Offered by Your Payroll Vendor

2009-12-01T13:17:00.000-08:00

Most business owners realize the obvious benefits of outsourcing payroll, such as saving money—outsourcing can save your company up to 30% over the cost of in-house processing—and saving time. But you may be unaware the many things your payroll service can take off your hands, from annoying little tasks, to key procedures, such as:

Paycheck processing for multiple company locations can be easily handled by your payroll supplier. Some vendors have a branch in every major city. Smaller suppliers will distribute paychecks to multiple locations via an overnight delivery service.
Direct deposit, a feature that most employees appreciate, and that smaller businesses are unable to offer through an in-house system. Funds deposited directly into employees’ bank accounts are often available a day earlier than a paper check would be.
Check stuffing, for those employees who prefer a paper check; your payroll service will handle the time-consuming chore of printing checks and placing them in envelopes.
Special reports. Ask your payroll vendor for a list of their report-writing packages. This service can be of real value if your company needs any type of specialized report. Again, many in-house payroll systems do not have this capability.
Data backup. You won’t need to be concerned about losing payroll information, because most payroll providers back up their data regularly.
New employee reports. The law in most states requires businesses to file a report for each new hire. Your payroll service can compile the data of all your new employees and submit this information to the government electronically.
Tax services. Save yourself the anxiety of possible penalties due to inaccurate tax payments by having your payroll provider remit all employee taxes.
Expertise. You will have a team of payroll processing experts at your service. Your payroll provider will usually be able to answer your questions over the phone, and some will even come to your location for a consultation.

These are just a few of the services your company can take advantage of when you outsource your payroll. Your provider can also take over many processes normally handled by your human resources department, such as the administration of 401k plans and other benefits, saving your company even more labor dollars.

Are These Myths About VoIP Holding You Back?

2009-11-19T11:09:00.000-08:00

Are you reluctant to let go of your outdated telephone system, even though you know that switching to VoIP would help keep your business in step with the competition? Some persistent but erroneous beliefs about IP telephony are still keeping some small companies from discovering its many advantages.

One common misconception is that VoIP is complicated to install and that making the transition is difficult. The truth is that there is no easier type of phone system to install than VoIP. With no on-site hardware, no set-up costs, and no technician visit required, you will probably find the switch to IP telephony easier than having cable TV installed in your home.

Another myth surrounding IP telephony is that training employees to use the system will consume many labor hours. On the contrary, IP systems are very intuitive. After a brief training session, all employees will be able to use features such as call center routing and auto attendantwith minimal help from management or IT personnel. VoIP technology’s integrated data and communications platform will actually help reduce your company’s labor costs.

Your VoIP provider will automatically maintain and upgrade your system without any disruption of your service. Multiple extensions and remote connections for employees who telecommute can be easily added. In fact, IP telephony systems provide scalability and flexibility that traditional systems have never been able to offer.

According to a report by market research company Dell’Oro Group, IP telephony will account for nearly 60% of new communication systems for small businesses, while installation of analog systems is expected to decline by an average of 10% per year, and the use of traditional systems will decline to less than 5% by 2011.

Small businesses that have already embraced IP telephony and realize the simplicity, ease of use, and flexibility it offers are taking a huge step toward positioning themselves to compete with larger companies.

Simple Steps to Avoid Having Your Merchant Account Frozen

2009-11-12T16:29:00.000-08:00

Fear-inspiring stories abound regarding businesses that have had to shut down when their merchant account is put on hold. Fortunately, a little extra diligence on your part can reduce the likelihood of this happening to your business.

Reasons for merchant account holds typically fall into two categories—violation of the account service agreement and suspicion of fraudulent activity.

Study your merchant agreement carefully when you first sign up for an account. Many credit card processing providers will ask you to declare the average volume your business will experience each month, as well as the expected average ticket amount. Be sure to make a note of the amounts you project, and be careful not to exceed them because this can cause your account to be frozen or cancelled.

Never accept payment for goods or services other than those described in your merchant agreement. Again, it is a good idea to consider carefully what you agree to sell when you sign up for the account. If you own a carpet cleaning company, for example, listing your business as “floor care” will allow for the possible addition of related services. If you plan to sell items that are completely unrelated, you may need a separate merchant account.

Excessive chargebacks can also constitute a service agreement violation and cause your account to be frozen. Good customer service and communication will prevent many chargebacks. Some merchants find it worth the effort to call their customers to verify each sale, and customers usually appreciate the extra security measure.

Suspicious processing activity can be more challenging to prevent, there are steps you can take to avoid having your account frozen for suspected fraud. Let your bank know ahead of time if you expect any changes in processing behavior such as a sudden increase in your average ticket amount or if you expect an unusually large single transaction. In this case, you should ask to speak to someone in your bank’s risk department.

Reputable credit card processing providers are as concerned about their customers as you are about yours, and finding such a provider will prevent many future frustrations. Plans and pricing differ, however, and most businesses find they need help sorting though all the variables.

Should You Use an Overseas Call Center?

2009-10-22T11:45:00.000-07:00

Increasing numbers of corporations are looking to overseas call centers as a way to cut costs in a tough economy. Aside from the obvious benefit of lower costs, outsourcing your customer service calls can offer a number of advantages to your business.

Call centers, especially those located overseas in countries such as India, take the need to compete with their counterparts in the U.S. very seriously. Many hire well educated and computer savvy workers and provide customer service training from top companies. These centers have acquired substantial bandwidth and have established strong connections to the global networks using satellite links and undersea optic cable.

The best of overseas call centers have committed to providing the best customer service in the industry. It is what they do, and they do it well.

Your business can reap the benefits of their expertise, and at the same time eliminating the expense of establishing your own call center and continually hiring and training workers.

A few things to look for when choosing a call center:

Customer references that verify the call center’s reliability and professionalism.
An understanding of your particular industry.
The ability to forecast and schedule for expected call volume.
Technology such as performance management and data analytics.
The ability to make changes and readily adapt to market conditions.
Above all, excellent customer service.

Is It Time You Outsourced Your Payroll?

2009-10-11T11:09:00.000-07:00

If your business has grown to the point where this question is necessary, kudos to you.

Of course, now you realize that in order to keep your business growing, and to maximize profits, you will need to spend your time on things other than bookkeeping.

One way to determine the best solution for your payroll needs is to look at what other successful businesses are doing in that regard.

A recent survey of over 800 businesses overseas found that 86% of these successful companies deemed it wise to outsource their payroll because of several advantages they received by doing so. Many felt that outsourcing gave them more control. It allows managers to plan and analyze this area of business, and to quickly implement changes when necessary. These companies also found outsourcing to be a more cost-effective means of handling their payroll.

Benefits of outsourcing your payroll:

You are free to manage other aaspects of your business such as customer service.
Payroll service providers can offer professional advise on difficult payroll issues.
The cost of outsourcing will likely be less than hiring an in-house payroll staff.
You don’t have to worry about your bookkeeper getting a new job and leaving you without payroll help.
Many complicated payroll tasks are an automated part of payroll services.
Outsourcing your payroll allows you to offer direct deposit to your employees.
A payroll service can be an invaluable help when it comes to paying taxes accurately and avoiding tax problems.
It eliminates the headaches involved with trying to use payroll software.

If your company is large, and you decide to go with payroll software as an alternative to outsourcing, you will you will need to hire payroll staff to run the program and deal with the many complicated payroll scenarios that can arise in a business with many employees.

If your business is smaller, you could probably choose a less complex software to meet your needs, but you will still need an employee or two who are adept at applying all of the payroll functions. Using payroll software does cost less initially than outsourcing your payroll, but you will want to weigh that advantage against the time spent implementing and using it.

Outsourcing your payroll easily solves all of these issues. Most business owners who make the move toward outsourcing find that their only regret is not having done it sooner..

Don’t Let Excessive Chargebacks Deplete Your Business

2009-09-18T15:21:00.000-07:00

Chargebacks, which occur when a customer disputes a charge made to their credit or debit card and asks the card company to reverse the transaction. If you, as an internet merchant, have never experienced a chargeback on a purchase, you can be certain that it eventually will happen.

While chargebacks are practically inevitable, and many merchants view the fees as part of the cost of doing business, excessive chargebacks can put a real dent in your profits, not to mention your good standing with your credit card company. Fortunately, there are steps you can take to reduce their occurrence.

First, provide excellent customer service. Naturally, you want to do this anyway because it’s just good business. But good communication with your customers can go a long way toward minimizing chargebacks. Provide a contact phone number or email, and respond quickly to resolve any issues.

Describe your items or services with accurate details. Your customers should know exactly what they are getting, and when they can expect delivery. When possible, use tracking numbers and signature confirmation when shipping packages, and consider buying postal insurance so you are covered if a package is lost or damaged in the mail.

Most customers only request a reversal when they have a legitimate reason. Some buyers, however, ask for chargebacks fraudulently by making false claims. This happens more with higher priced items. Be alert for purchases where the billing and shipping address are from different countries, or the customer makes partial payments using different Paypal or credit card accounts.

Avoid accepting fraudulent purchases by asking for the code on the back of the card, confirming the billing address with the customer if the billing and shipping addresses do not match, and calling the card holder personally to confirm any orders that seem suspicious for any reason. Rather than being annoyed by the call, most customers will usually appreciate your taking the extra step for security’s sake.

If you accept credit cards at the location of the sale, you have the added opportunity to look at the signature on the receipt and compare it with the one on the card. Check for signs that the card has been tampered with or altered. You can also ask for a driver’s license or other photo ID.

The importance of minimizing chargebacks cannot be overemphasized. Most merchant account providers view any business that has excessive chargebacks as a risk, and will not hesitate to terminate the relationship if your account becomes too much of a liability to them. This can have a serious impact on your sales if customers are unable to make credit card purchases from you while you scramble to find a service provider who will accept your business.

The time and effort you put into reducing chargebacks will be well spent and can only serve to enhance your reputation as a seller.

Hosted vs. Premised VoIP

2009-08-17T11:32:00.000-07:00

Picking a VoIP service for your business requires an important difference. Should you go with a hosted service or purchase a premise-based system? Let’s look at the difference.

A premise based system requires a PBX, in addition to the phone infrastructure such as routers that are common to either premise or hosted. Some companies prefer premise-based equipment because of the control and possible long-term cost savings. For businesses that don't depend on the ability to quickly manage and configure their telephony system, a hosted VoIP solution might be a better alternative as it less complex, and you don’t

Hosted VoIP internet phone solutions could be suitable choice for many businesses that starting off and/or looking for a simpler phone solution. You usually obtain the hosted solution bundled with the system and the service. The ongoing service for a hosted solution can include unlimited domestic long distance and local calls.

Hosted services can be deployed on a line-by-line basis, which means that they are easily expandable. They allow for flexibility during the transition from premise-based equipment to a hosted service because they can co-exist with previously existing premise equipment. This means that an enterprise doesn't need to transition all of its equipment at the same time, which would usually be the case with a premise-based PBX.

Disadvantages of premise based systems include costly up-front capital expenditures on hardware and software, although there are leasing options available. There are ongoing maintenance fees, software and hardware upgrades and operational expenses.

Each company needs to individually assess their needs and budget and research both VoIP solutions to understand features, control and cost.

Advantage of of Online Payroll Companies

2009-07-02T15:06:00.000-07:00

Every company that pays employees needs to ensure they have a system in place for paying their employees (and their taxes) accurately and on a regular schedule. Some small businesses have an in-house employee (usually an accountant) perform the appropriate payroll financial calculations and issue paychecks. However, many small businesses do not have a need for a full-time (or even part-time) accountant to perform payroll functions. In such a case, a small business can save time and money by contracting an outside payroll vendor to handle payroll services.

One of the most cost-effective and reliable payroll solutions for small businesses is online payroll. Online payroll creates an interactive partnership between a business and an external payroll provider, which allows businesses to stay hands-on, but ensures that the business can continue to maximize its efficiency by not having to micro-manage all aspects of payroll.

How Online Payroll Works

Web-based payroll is a payroll solution in which you take care of the initial setup and processing of paychecks, but your vendor handles all of the computations. After the initial payroll setup is complete, cutting paychecks takes just a few minutes, as you only have to enter the pay hours and review the final figures. In such a solution, the online vendor handles all of the difficult aspects of payroll.

These Web-based payroll processing companies also allows you to manage your employee payment methods easily by giving you have the ability to pay employees with printable paper paychecks or via direct deposit. Moreover, all work is handled securely online, so there is no software to install; all you need to run payroll is an Internet connection.

Advantages of Online Payroll

Utilizing a web based payroll solutions is effortless, quick, and provides you with many elements to make your job easier. Web-based payroll systems give you the advantage of having an elaborate payroll processing service without the complexity and expense involved with such a system.

Additionally, online systems help to ensure the accuracy of your payroll calculations; all of the payroll tax computations are handled for you, including difficult year-end tasks.

Online payroll systems offer interactive features that can help you stay organized and efficient. These features comprise of email reminders, free direct deposit, the ability to print paychecks locally, rapidly add or make changes to employee benefits or withholdings, and more.

You can review payroll reports anytime from anywhere by logging onto the secure server for your Internet payroll provider. Moreover, many Web-based payroll services give employees the ability to visit a dedicated employee interface to information about their payroll statistics and history.

Web-based payroll systems are gaining in popularity with small businesses because of the convenience and affordability of such services. We encourage you to start taking advantage of these online payroll services by seeing what a web-based payroll solution can do for you.

SBA Online Course Helps Companies Win Federal Contracts

2009-06-25T14:55:00.000-07:00

The federal government offers $400 billion in contracts annually to small business owners and vendors that can meet a specific need. Many small businesses can grow rapidly if they are able to obtain these federal contracts. In fact, many small businesses establish themselves with the goal of providing services uniquely to the federal government. However, getting federal contracts often requires a good bit of effort and knowledge that can take small business owners time to acquire.

To help these small business owners get accurate information about obtaining federal government contracts more effectively, the U.S. Small Business Administration recently launched its latest free online course, Business Opportunities: A Guide to Winning Federal Contracts.

The online course is designed for all small businesses, especially women entrepreneurs and small firms in underserved markets that have historically had difficulty tapping into federal contract markets. The course uses both written script and audio to provide information about the enormous federal market, including information about contract rules, where to find contract opportunities, and how to sell products or services to the government.

How to Use the Course

The instructional, self-paced guide is available on the SBA's Web site. To find this course, follow these steps: from the SBA's training site, click on the menu of free online courses and then select the first course listed under “Government Contracting.”

After completing the 30-minute tutorial, business owners can earn a certificate of completion from the SBA.

By the way, this Business Opportunities online course is one of more than 24 online tutorials offered by the SBA through its virtual campus at the Small Business Training Network.

Factoring Can Help Cash Flow

2009-06-18T15:37:00.000-07:00

Managing cash flow is a major consideration for many businesses. Cash flow, in essence, is a balance of money coming into the business and money going out of the business. Money comes into the business when goods or services are sold. Money goes out of a business to pay for things like inventory, payroll, capital expenditures, and more. Cash flow management can be tricky and even well-established businesses can have a hard time managing cash flow from time to time.

Fact: when businesses extend credit (which occurs anytime a business has to send an invoice for products or services), it will have 10 to 20 percent of its annual sales stuck in accounts receivable. That’s a significant amount of money each year!

When a business needs assistance managing their cash flow, the business can turn to a variety of resources, including banks and other lenders. However, many businesses either can’t get funding through a traditional lender, or would prefer to get funding through alternate means. Factoring is an alternate mean that is very appealing for many businesses. Factoring, in essence, is “cash without borrowing.”

Here’s How Factoring Works

A business sells its accounts receivable (outstanding invoices) to an investor (factor) at a discount rate – usually of about four percent). The factor then collects the money from the customer. Because the business sells the accounts receivable at a discount, the investor is able to collect on the discounted margin. That margin is generally based on a percentage of the total cost of the invoice, but may also be based on a flat rate.

Factoring is a very common practice that has been around for thousands of years, according to Vital Force Factoring. It is generally a business-to-business service, but consumers also use factoring systems anytime they make purchases with a credit card. In the case of a credit card arrangement, the credit card company will pay a retailer for goods when a consumer makes a purchase. Therefore, the credit card company, acting as a factoring agent, serves as a middle man and is in charge of managing payment for a product or service. The factoring system works in much the same way as a credit card system in business-to-business transactions.

Benefits of Factoring

Many company, such as Florida-based First Capital, are in business to buy receivables in exchange for immediate cash – as much as 97 percent of the total amount of the invoice. Some businesses use factoring for funding when they are unable to get bank loans or loans from conventional lenders. In a pinch, some businesses even use factoring to pay for inventory, payroll, and other immediate needs.

Factoring can also help businesses to improve their invoice collection rates as factoring companies handle all aspects of accounts receivable for a company. Some businesses enlist the help of factors if they are unable to collect on an invoice. The factoring company will then use its own resources to collect on the invoice, allowing both the business and the factoring company to receive payment.

Many factoring companies will also perform credit checks on new customers in order to determine the risk associated with engaging in a partnership with the new customer. This credit check can also help businesses to assess a credit amount or interest rate for the new customer.

When looking for a factoring company, look for a company that has a high advance rate for invoices, offers fast payment on invoices, has appropriate invoice management tools, and has a good reputation for collecting payment from customers. It may be helpful to review several different factoring companies before selecting the company that’s best for your needs.

You Noodle Can Help You Predict Your Business Outcome

2009-06-11T13:28:00.000-07:00

What will your business be worth in three years? The sophisticated You Noodle business valuation model analyzes information about business to help predict their outcomes. If you know a business (or own one) you can try it now for free!

What are the benefits of finding out information about a business?

Many individuals and businesses use You Noodle to determine the projected revenue and value of a business when they are considering investing in a business. For example, if you are considering buying shares of a business, you may be able to predict with a high level of accuracy what those shares are likely to be worth in the future using this predictor tool.

This predictor tool can also help you to determine what the outcome of your own business can be. If you are thinking about starting a new business, buying a business, or changing your business services or products, this predictor tool can give you some insight into whether or not your business will be as successful as you imagine. It may also be fun to use this tool to see where your business ranks amongst similar businesses. Are you on track?

For example, if you are thinking about opening a restaurant, this tool can help you to determine whether the start-up costs will be worthwhile – and how long it will take for you to see a return on your investment.

Remember to be logical.

While the You Noodle predictor tool is a fairly reliable way to determine the value of a business, keep in mind that this predictor works by analyzing information from similar businesses and from a business’s own history. While this tool is thought to be rather accurate, it’s important to keep in mind that the success of a business largely depends on the business model, business plan, and leadership team.

Therefore, use common sense if you are evaluating a business for investment purposes – and work hard and smartly if you are trying to realize a certain level of revenue from your own business. The You Noodle predictor is an excellent complement to good old fashion common sense and research!

Women Owned Business Generate $1.9 Trillion In Sales

2009-06-04T14:38:00.000-07:00

Since the dawn of the first fur trading businesses in the U.S., the business arena has been dominated by men. However, times – they are a-changing. In fact, women owned businesses are believed to generate nearly $2 trillion in sales annually – and that figure only counts those women owned businesses that are officially classified as such! (Classifying a business as a minority-owned business is always at the discretion of the business owner, and not all business owners go through the process of obtaining a minatory-owned classification).

With more and more women starting businesses and becoming the majority shareholders in already established businesses, it’s important to pay attention to the role that women play in the global business marketplace. Here are a few facts about women owned businesses that may surprise you:

10.1 million firms are owned by women.
Those 10.1 million firms employ more than 13 million people, and generate $1.9 trillion in sales as of 2008.
Three quarters of all women-owned businesses are majority owned by women (women own 51 percent or more of the shares for the business). This accounts for a total of 7.2 million firms, employing 7.3 million people, and generating $1.1 trillion in sales.

One in five firms with revenue of $1 million or more is woman-owned.
Three percent of all women-owned firms have revenues of $1 million or more, compared with 6 percent of men-owned firms.

Banking and Finance

Women business owners' satisfaction with banking relationships has more than doubled since 1992 (35 percent vs. 82 percent).

More than two-thirds (67 percent) of women business owners choose financial products and services based on their relationship and experience with a lender.

Women owners of firms with $1 million or more in revenue are more likely to belong to formal business organizations, associations or networks than other women business owners (81 percent vs. 61 percent).

What This Means to You

In order to effectively work with and market your services to women owned businesses, it’s important to understand how the leaders of these businesses work. As noted in the example above, women tend to make decisions based on their relationships and are more likely to belong to business organizations as they increase their revenue.

Ask yourself a few simple questions about how your marketing strategy, services (including customer services), and products appeal to women owned businesses, such as:

How can this knowledge impact your marketing plan and efforts as you attempt to develop relationships with these businesses?
How are your services designed to meet the needs of both the business and the business principals?
Do you have products or services that appeal to women owned businesses?
How can you improve your efforts to develop relationships with women owned businesses based on this knowledge?

Early Payment Can Help With Cash Flow!

2009-05-22T13:45:00.000-07:00

Did you know that paying your bills early might actually save you money? Many businesses offer prompt pay discounts, or “2/10, net-30 discounts,” which allow companies to subtract two percent (and sometimes more) from an invoice amount if the invoice is paid within 10 days if receipt instead (of the more standard net 30 or net 60 day payment period.)

Prompt payment discounts can be offered in any industry and anywhere along the distribution channel, including between suppliers, distributors, customers, service providers, and more. In some cases, the prompt payment offer is called a “trade rate,” which is, essentially, a special rate that is offered periodically based on certain circumstances.

Taking advantage of these early pay discounts can really add up, especially for companies with thin profit margins. The challenge for many companies, however, is managing their cash flow system in a way that enables them to take advantage of these discounts on a regular basis.

Here’s what you’ll need to do in order to take advantage of early pay discounts:

Determine if an early pay discount is available from a vendor. Not all vendors offer this opportunity. If the early pay discount is not offered up front, you may want to suggest it to the vendor.
Alert your accountant or payment processor. If you work with an in-house accountant, it may be easier to alert the accountant of the early pay discount. However, if you have an out-of-house accountant, you may need to get in touch with the accountant to let him or her know about your interest in the early pay discount option.
Follow up with the payment processor for your company to make sure that the payment has gone out within the 10 day period.
Follow up with the vendor to make sure they received the early payment and applied the discount.

Why offer prompt payment discounts?

In addition to being able to take advantage of prompt payment discounts, you may also want to offer your own prompt payment discounts to your business associates. Here are a few ways in which a prompt payment discount could benefit your business:

Boost short-term sales, as customers or vendors act quickly to take advantage of a prompt payment discount.
Sell older merchandise or merchandise that is becoming out-of-date.
Reward special or long-term customers.
Increase productivity.
Increase cash flow and efficiency of the accounting department.

To determine whether a trade rate or prompt payment discount is right for your business, you may want to conduct a survey amongst your customers, vendors, distributors, and other key business partners. In this survey, find out if the program would be beneficial to your associates and what terms of such a program would be best.

Why Should All Business Get a D-U-N-S®® Number?

2009-04-15T13:33:00.000-07:00

With more than 100 million businesses in the marketplace worldwide, it’s important to establish a D-U-N-S® Number in order to identify and differentiate your business. A D-U-N-S® Number is a unique nine-digit reference number assigned to a business, similar to the way a social security number is assigned to an American citizen. However, unlike social security numbers, D-U-N-S® Numbers are public, so anyone can research a business based on its D-U-N-S® Number.

D&B links the D&B D-U-N-S® Numbers of parents, subsidiaries, headquarters and branches on more than 70 million corporate family members around the world. Used by the world's most influential standards-setting organizations, it is recognized, recommended and/or required by more than 50 global, industry and trade associations, including the United Nations, the U.S. Federal Government, the Australian Government and the European Commission.

In today's global economy, the D&B D-U-N-S® Number has become the standard for keeping track of the world's businesses.

A History of D-U-N-S®

D-U-N-S® stands for Data Universal Numbering System and is copyrighted by Dunn & Bradstreet (D&B) as a method of identifying businesses. The D-U-N-S® system was put into place in 1962.

Both commercial and federal organizations have been using D-U-N-S® Numbers since 1994 as a standardized method of identifying a business. In 1998, D-U-N-S® Numbers were incorporated into the Federal Acquisition Act (FAR) as the official contractor identification code for Federal Government procurement-related activities.

How D-U-N-S® Helps Businesses

In addition to allowing a business to go after federal government contracts, having a D-U-N-S® Number enhances the credibility of a business and enables other businesses to learn more about it. Information that is accessible by researching a D-U-N-S® Number includes:

Business name
Business physical and mailing addresses
Doing Business As “DBA” affiliations
Names of principals
Financial information, including payment experiences
Industry classifications (including SICs and NAICS)
Government data about the business
Social-economic status of the business

What You Need to Do

If you are a small business, ensure that your company is listed in D&B's database – even if you don’t plan to go after any government contracts in the near future. Establishing your D-U-N-S® Number now will help to build your history and credibility. Once you sign up, you should receive your D-U-N-S® Number within 30 business days.

You can also use the D-U-N-S® for another business as a credit reference for that business, just as another business can use your number as a credit reference for your business.

By the way, you can easily update your record anytime with the eUpdate service offered by D&B.

~~Please note that getting a D-U-N-S® Number alone will not establish a D&B credit file for your company.~~ If you are requesting a D-U-N-S® Number because you need to show others that your business is creditworthy, you will probably need to establish a credit file.

Using References for Vendor Selection

2009-03-12T15:40:00.001-07:00

Whenever you need to select a new vendor for a product or service, it is important to feel confident in your final selection. For every service or product you require, chances are good that there are many vendors to choose from. So how do you select the bes t vendor for your needs? You can start by checking references.

Using references should be a critical piece of picking a vendor. If a simple review of a vendor’s catalog or services can provide you with information about a vendor’s products or services, a reference check can provide you with information about how well those products or services are provided…and how well they hold up. References can give you an idea of how well a vendor meets a deadline, responds to queries, and provides support.

But how can you be sure that the reference you are getting is accurate and useful? In many cases, references avoid saying anything negative about a vendor for two reasons:

There is a legal liability associated with giving references. Giving a bad reference may constitute slander or libel, which can result in legal action taken against the reference on part of the vendor.
Many references are coached by a vendor in terms of what information they can and should share with a new business.

How to Perform a Reliable Reference Check

While obtaining an unbiased reference may be difficult, it is not impossible. One way to find unbiased referenced is to find companies that have use the vendor’s services – but that are not specifically listed as references by the vendor. How can you find such companies? Here are a few ideas:

Take a look at the vendor’s press releases for information about business partnerships and relationships.
Perform a simple search engine search
Browse a vendor’s LinkedIn profile.
Go to industry trade events to meet companies that work with a business (this is especially useful if a business is large or well-known).

Also, ask the references to rate the vendor on dimensions that are most relevant to business services such as timeliness, reputation, expertise, reliability, communication,and availability.

Finally, keep in mind that not all business relationships are the same. The relationship that a vendor has with a business in one industry may differ greatly from the relationship that a vendor has with a business in another industry. Therefore, find references that seem similar to your business in terms of type, size and/or location.

Advantages of of Online Payroll Companies

2009-02-12T16:05:00.000-08:00

How Online Payroll Works

Advantages of Online Payroll

Additionally, online systems help to ensure the accuracy of your payroll calculations; all of the payroll tax computations are handled for you, including difficult year-end tasks.

Small & Medium Businesses are Embracing Web 2.0

2009-01-29T11:54:00.000-08:00

According to Access Market International (AMI) Partners, more than 40% of small and medium businesses (or about 2.8 million businesses) are using Web 2.0 applications as part of their normal business practices. Web 2.0 is a term that describes interactive web features such as blogs, wikis, and social networking sites like Facebook, MySpace, & Digg.

At InsideUp, we believe that the embrace of Web 2.0 by small and medium businesses will continue to grow exponentially as companies find that applying Web 2.0 applications provides a forum for communication and exchange that can lead to a competitive advantage.

Here are some other interesting stats about how businesses use Web 2.0 from the AMI survey:

• More than 400,000 small and medium businesses in the U.S. use blogs and webcasts to promote their businesses.

• 24% of small and medium businesses are using SaaS (software as a service). SaaS applications, such as Backpack, a popular small business organization tool, are hosted on a service provider's computer and offered to businesses for use. This allows businesses to utilize effective tools without having to download, install, or maintain software.

• About 20% of small and medium businesses participate in online communities and portals, such as online chat forums.

Are you using social media to grow your business?

2009-01-13T08:49:00.000-08:00

Do you still use the Yellow Pages to advertise to prospective customers? Is this approach working for you?

How about the other traditional methods of bringing in new clients? If you’re not getting the results you once did, it’s likely a reflection of several factors:

Newspaper circulation continues to dwindle, which means no one is reading your ads. Young people continue to gravitate to the Web for online gaming, and increasingly, to view video content. So they aren’t watching commercials. Millions now listen to music and talk shows on their iPods, which means they don’t hear your radio spot. After decades of interruption marketing, consumers have learned to tune out unwelcome marketing messages via direct mail and other vehicles.

None of this is to say that marketing is dead. Far from it.

Marketing is just evolving from a broadcast model into a closer relationship between you and your existing clients -- and more of a targeted hunt for new clients.

If the scatter-shot approach of the past isn’t working well for you, you must now be smarter about how you identify, locate, connect with and engage your prospects. This means going where your prospects and clients are, and speaking to them in their own language, about the things they care about.

If you are marketing business services, you should probably be establishing a presence on LinkedIn, where there are millions of business professionals. If you are launching a hip hop act, MySpace is the place to connect with your future fans. If you want to be viewed as a trusted expert in your field, there’s nothing like the immediacy and intimacy of a blog to establish your credibility in your field.

You don’t have to be absolutely comfortable and proficient in your use of these tools – they’re going to keep changing anyway. But if you haven’t already, it’s time to dive in and get started. And it’s not difficult or expensive. For instance, this blog is hosted at Blogger.com. It’s free and you can easily launch your own blog and start connecting with your customers today.

Likewise, there’s no excuse for not being on LinkedIn. Your prospects are there now, waiting to connect with you. Get started now!

How do you select vendors?

2009-01-08T16:32:00.000-08:00

When you're the boss, sooner or later you're going to need help from professionals. And we're not talking about that kind of professional help (although many have gone stark raving mad as a result of running their own businesses).

No, the type of help we're referring to is the kind that actually enables you to make more money. Needing it is consequence of success:
When you make enough money, you require the services of an accountant.
If you grow your business unexpectedly fast and don't know what to do next, you might benefit from the guidance of a business coach or consultant.
Once you have real assets, you really should meet with an attorney who can help you shelter them.
Or you might need someone who knows what to do about that swarm of bees that decided to build a hive just above the front door.

These are all good problems to have (any sighting of live bees has to be considered a plus now) and they're the kinds of issues that require strategic action – based on more than your own hunches and the advice of your friends, neighbors and in-laws. When your future earnings are on the line, you want to make the best decisions you can.

So, how do you identify your best options when you are seeking professional help for your business? (This is not a rhetorical question, we really want to know.) Do you:
- Talk to others in the business?
- Comb through Google search results and hope for the best?
- Drive around looking for a sign?
- Riffle through the Yellow Pages?
- Try to remember the ad you saw?

So much has changed in how businesses market themselves to each other.

When you are shopping for a business-to-business vendor, what works for you?

Word-of-mouth recommendations: they're a win / win / win

2008-12-23T19:46:00.000-08:00

Last week we asked about how you select vendors for your business.

When it comes to identifying and selecting business-to-business vendors, it seems that most business owners rely on word of mouth more than any other method. And that makes sense.

Word-of-mouth recommendations typically come from people you know and trust. Someone you know is sharing their experience with you, directly and in a way that meets your specific needs. By doing so, they are helping you avoid mistakes, which, when you're running a business, can be costly. (They are also adding value to your relationship, for which you may want to reciprocate by offering your recommendations in the future.)

So everybody wins with word-of-mouth recommendations: You get the right help; the referrer earns your good will; and solid companies get more business.

But what do you do when:

You don't have time to ask people for recommendations
The people you know have no experience with the type of vendor you're seeking
You're not aware of all the choices that are available to you
You're not even sure what you need

Wouldn't it be great to have a huge database of B2B business performance and recommendation data, searchable by your specific criteria?

That's exactly what we're assembling here at Inside Up.

We've developed a sophisticated but easy way to track businesses' reputations, and deliver bits of that data to you, so you can confidently find the vendors who are the best choice for your growing business.

Think of it as a word-of-mouth recommendation engine, on steroids. With a lot more features added to help you get the information you need to grow your business faster.

By the way, check out this nice third-part validation we received this week.

Word is getting out – Inside Up is the place to go to find trusted vendors for your business!

The Inspiration Behind InsideUp

2008-12-19T11:45:00.000-08:00

What inspired us to start InsideUp? It's simple: our team of Internet business veterans saw a tremendous need among small businesses to be able to find reliable business service providers efficiently, and for business services firms to use online communities to educate and connect with business prospects, especially with small businesses.

According to a 2007 report published by Visa International, small businesses (businesses with less than 100 employees or less than $25 million in sales) in the U.S. spend $1.68 trillion yearly on business services, or nearly 35% of their total business expenditures.

Our own research at InsideUp has been centered on trying to understand how small businesses find business service vendors. Our research indicates that it takes a tremendous amount of work and time to find reliable and reputable business service providers. A business service provider, mind you, can be anyone from a recruiting company that helps you find staff to the marketing company that implements a direct marketing campaign for you.

InsideUp has taken on the challenge of helping to solve these problems for small businesses and the firms that want to provide business services to them. The Beta release of our community platform is a step forward on an ambitious road to provide a comprehensive online platform where small businesses can connect with business service providers. Lots more to come, so stay tuned…

BizNik: Business Networking that Doesn’t Suck

2008-12-01T11:57:00.000-08:00

We've recently been watching an up-and-coming business networking organization called BizNik - and we're not the only ones. In the past year alone, BizNik has been an Official Honoree for the 2008 Webby Awards, Best in Class winner of the 2008 Interactive Media Awards, and Silver Winner of the 2007 W3 Awards.

BizNik believes, as we do at InsideUp, that when you're small, collaboration is a much surer path to success than competition. After all, according to the U.S. Small Business Administration, there are more than 23.3 million small businesses in the U.S. that have just one employee. Networking, therefore, is an essential tool that businesses can use to make connections with clients and vendors.

We especially love BizNik because it combines the power of online networking with local events that are occurring in cities across the country; you get the best of both worlds! With BizNik’s growing membership in cities and towns across the U.S. and around the world, now is a great time to jump in and try business networking.

BizNik makes a point to distinguish itself from other popular online business networking tools, such as LinkedIn and Namyz. BizNik explains that it's "not a place for job seekers. It's about sharing ideas, not for posting resumes. And it's where conversations about business and entrepreneurship are taking place." Plus, as we mentioned, BizNik provides online and offline opportunities to meet and greet fellow small business people.

Keep in mind that whether you network online or in person, there are some networking dos and don'ts that you should be aware of in order to increase your chances of success. According to Mark McGregor, author of "The 10 Commandments of Networking", one of the most important things that you can do when networking is to "drop the 'what's in it for me’ attitude”. For effective networking, including participation in online communities, we at InsideUp feel you have to participate, share, and give; the collective participation will eventually provide rich benefits to all.

Looking for some networking opportunities in your town? In addition to BizNik, check out these sure-fire national resources to get started (if you haven't done so already):

Finally, don't leave home without reading these networking tips from the U.S. Small Business Administration, which include tips on how to improve your appearance (get a haircut) and behavior (don't huddle up with co-workers and friends) while networking.

Four strategies for surviving the recession

2008-10-30T00:34:00.000-07:00

There’s little doubt now that we’re in a recession, and many experts say it will likely last through 2009.

What does this mean for you and your business?

While nearly everyone is looking to curtail their spending, and credit figures to be much harder to obtain than it has been, there’s no need to panic. In fact, an economic slowdown can be a great time to pick up market share from your competitors, as they shrink their budgets, and thus their marketing.

Keep in mind too that when things pick up again, as they always do, you want to be well-positioned to accelerate your business along with the larger economy. That may mean down-shifting now so that you’re ready to up-shift in the future.
So here’s what you can do now to help maintain the health of your business, regardless of economic conditions:

- Cut unnecessary expenses. Where can you tighten your budgets? Whether you do it across the board, or surgically, trimming 10 to 20 percent can have a dramatic effect on your bottom line, while you preserve your core competencies and continue to service your existing clients.

- Focus on your ideal client. Rededicate yourself to finding clients who pay promptly, come back again and again, and refer others like themselves. This means examining your current marketing efforts to make sure you’re looking for the right people, in the right places. Ask yourself: How do I define my perfect customer? Where do I find them? Once I have a prospect, how do I qualify them?Once I’ve qualified them, how do I convert prospects to customers?

- Get out and make new contacts. LinkedIn, Facebook and other online networking sites are great, but there’s nothing like face-to-to-face conversations to build your network. You local Chamber of Commerce and groups like BNI are a great place to start.

- Package your products and services in a new way. Sometimes it helps to refresh how you present yourself to the market. Can you create an attractive offer aimed at new clients? Now’s the time to roll it out.