Ask An Expert

“Steven D. Strauss is one of the world's leading entrepreneur experts. A nationally recognized author and columnist, he is also the author of 12 books, the most recent being "The Small Business Bible." Strauss' weekly column for USAToday.com is among the most widely syndicated business columns in the country.

A highly sought after commentator and media guest, Strauss has been featured on CNN, Bloomberg Television, Leeza, the O'Reilly Factor, MSNBC, Court TV, the BBC, ABC News, and numerous local stations.

Strauss also lectures around the world about entrepreneurship and business issues. If you would like to sign up for Steve’s free e-newsletter Small Business Success Secrets! Visit his website - www.mrallbiz.com.

Q: We would like to expand our business into some new areas that, though we are interested in them, we have no experience with them. The worrisome part is that we have no established links with suppliers as we do with our current business. Can you assist?

Andrea, CA

A: First let me say that it is vital to not underestimate the importance of finding the right supplier -- it indeed can be the difference between success and failure.

Consider my friend John. John owns a very successful antique shop in California. In fact, it is so successful that John works only about six hours a day, four days a week, and he still makes a six-figure income. His store is usually busy and it is not hard to see why. It is full of fascinating, old knick-knacks, doodads, odds and ends, and other stuff that he buys from a variety of sources: Dealers, antique shows, garage sales, classified ads, and estate sales are the most common.

When asked what the secret of his success is, John tells me, “It’s all in the buying.” John loves shopping for things to put in his shop, but won’t buy anything, no matter how much he likes it, unless he can get it for the right price. He knows that if he pays too much, no matter how interesting the item is, it will take up valuable space in his store; space that could be used by products that sell. He also knows that if he can get the right item for the right price, selling it won’t be a problem. John is convinced that the reason for his success is not how well he sells, but how smart he buys.

It’s all in the buying is as sound a small business principle as you will hear. So as you start to make the decisions that will build your brand, don’t forget that the name of the game is to buy low and sell high, and that the key to that is finding the right suppliers who can help you buy low.

Here are your best bets:

Referrals: Find similar businesses in neighboring cities and speak with them. They can tell you who their suppliers are and give you the name of the suppliers’ representatives. Call the reps and have them come to your store to show you their line.

Trade Shows: Trade shows are maybe the best place to find products and suppliers for your new endeavor. Trade shows are presented by people in the business for people in the business. By attending, you will make invaluable contacts, see the latest trends, meet potential suppliers, learn the lingo, and essentially get a crash course in your new industry. Wander the isles, find the products you like, and speak with the rep in each booth.

Trade Magazines: Pick up a copy of the trade magazine(s) for your new business and look at the ads. They want to sell to you. Call the companies whose products you like, and again, get them to send out a rep to meet with you.

Trade Associations: Trade association usually have a list of contacts who sell what you want to buy.

Go Online: Go to the online version of the Thomas Register and type in the products you are looking for - www.thomasregister.com.

Go to the Source: If you know what product you want and who makes it, then go online and get the company’s contact information. Call them up and ask for the sales department. Explain who you are, what you are doing, and that you would like to meet with the rep in your area.

Remember, it’s all in the buying.

Today’s tip: Small businesses in the Gulf Coast that need assistance due to Hurricane Katrina should be sure to check out the Small Business Administration Disaster Loan Assistance Program: http://www.sba.gov/disaster_recov/loaninfo/dloanassit.html.

Q: I have owned a home based business for five years. I have seen associates move their home based businesses out of the house and wonder if I should do the same. There does seem to be a limit on growth being based from home, but I also really like the perks – being near my children, low overhead, and so on. What do I do?

Allison

A: There are two types of home-based businesses, and so the first thing to do is decide which camp you fall into. The first type is the home based business that is started with the intent of keeping it a home business. It may be a mom who, like you, wants to be closer to her children, or simply an individual who likes the lack of stress. This is a business built around the home.

The second type of home based business is the one started from home so as to keep overhead low, but which will be moved out of the house as soon as it is financially feasible to do so. Jeff Bezos started Amazon.com from his garage, but it was never intended to be a long term home based business. I worked from home for a few years, but moved out when the time was right.

If, as I suspect, your business falls into the first category, that need not limit your growth, but I understand why you think it might. Home based business owners, like many small business owners, become complacent. But if it’s true that “if you always do what you’ve always done, you’ll always get what you always got” then home based business growth requires doing something different. It requires change.

Here then are the Top 5 things home based business owners can change in order to grow:

1. Think, and plan, big: Getting caught up in the day to day minutiae of filling orders and putting out fires leaves little room for coming up with a Grand Plan, or even a plan that is grand. So the first thing to do is to schedule some time away from the business to daydream:

• Where do you want your business to be at this time, next year?
• What changes need to occur for you to have more fun and make more money?
• What steps do you need to undertake to implement these changes?

2. Double your marketing efforts: I suggest that the biggest rut most of us fall into is the marketing rut, running the same ‘ol dog and pony marketing show again and again and again. Well, if you want your home based business to grow, you need to mix things up. There are scores of great marketing books out there. Pick a few up, try some new tricks, and reap the rewards.

3. Take a sales course: As a home based small business, you are a salesperson whether you like that part of the job or not. The good news is that sales is a skill that can be learned and honed. So find a sales course, either at a local community college, or at a local SCORE office, or online, or somewhere, and take your sales skills to the next level.

4. Play to your strengths: As a home based business, you have several advantages that bigger businesses do not: With a lower overhead you can charge less, and thereby get more business. A smaller operation like yours can usually offer more personalized service. Your turnaround time may be quicker, or your ability to handle emergencies may be better. Be sure that present and future clients understand and appreciate these differences.

5. Ramp up your technology: The computer-Internet-technology- revolution occurring over the past 25 years is the biggest change ever for small business. If you are not using tools like wireless networks, software, websites, PDAs, laptops and so on to work better, faster, and from every and anywhere, you are missing a great opportunity.

The good news is that your home based business can shift into overdrive with a few small, simple changes.

Today’s Tip: If you are like many small business owners (including myself) handling the financial part of your business is probably not your favorite part of your job. Of course, there is software out there that can help you, and I am pleased to report that there is a new software solution that can really make this sometimes unpleasant part of your business easier.

Microsoft (a company I write for) has just come out with Small Business Accounting 2006. The company tested the Beta version of the product on 4,800 U.S. small businesses in order to make sure that it worked in the real world. The program uses an intuitive interface to help you streamline bookkeeping, payroll, invoicing, inventory management, billing, and so on. It is worth checking out.

http://www.Mrallbiz.com