Wise Bread (Lynn Truong)

Do You Feel Entitled To Money?

Lynn Truong — Mon, 07 Nov 2011 10:36:13 +0000

One of the biggest obstacles for those who are trying to save money and pay off their debt is their notion that they are entitled to money. They look at celebrities or their neighbors and want what they have. They feel like it's not right for them to be left out of that happiness (because, in this consumer driven world, we often equate happiness with our ability to spend, and who isn't entitled to pursue happiness?). (See also: 6 Ways Money Really Can Buy Happiness)

"It's Not Fair"

There's a feeling of "it's not fair" when someone else has more money. Why do they deserve to enjoy those things? So the race is on, for bigger, newer, and shinier things, all charged on credit. If pro-athletes, celebrities, and lotto winners can end up bankrupt because of overspending, what are the chances for us regular non-millionaires?

Entitlement Quiz

If you aren't able to accept your current situation (your income), you will never be ready to live in a financially responsible way. Here's a quick self-quiz:

Do you buy things because someone you know just bought one or talked about getting one?
Do you buy things because you saw a photo of a celebrity with one?
Do you justify buying something you can't afford because you feel you deserve it?
Do you compare the things you have with things other people have, and feel superior if yours is better and inferior if yours is not?
Do you always pick the latest model or the more expensive one not because of the features but because of the price?
Do you feel like you're missing out if you don't own something someone else has?
Do you think it's okay to spend on credit right now because you know you will make more money later?

10 years ago I would have answered yes to at least 4 of these questions. But any yes to these questions means you feel entitled to money, and as long as you feel that way, living within your means is out of your reach, no matter how many coupons you clip or brown bags you bring to work.

Accept What You Have

What can you do to shift this mindset? Accept that you have the money that you have. Accept that there are things you just can't afford. Believe that there are things that you can afford that will satisfy you. Believe that it is more important for you to not be in debt and save money, than it is to have something.

3 Ways to Start

This type of emotional spending (seeing something you really, really want or seeing someone else with a new toy) is what impulse buys are all about. The most effective way to curb impulse spending is to give an opportunity for time to equalize the emotions.

If you really want it, save up for it. You can have anything you want — you just have to save up for it. You don't have to deny yourself anything. The question is, is that thing you want really worth that time and effort? When you actually have to save up for something, it will give you time to contemplate how desirable it really is.

Borrow it. Borrowing does two things. First it allows you to really know how much utility it's going to give you. Second it gives you the same "high" as if you had bought it for yourself because you have something different. How you feel when you return it will give you a good idea of whether it is something that will truly give you value.

Commit to a waiting period. Again, it's all about giving yourself some time to get over the initial "ooh ooh I want that" feeling. Give yourself a 3 month waiting period for any purchase. If in 3 months you still want it, you can buy it (if you can pay cash for it of course!).

Where do you stand? Did you take the quiz? Are there other ways to get over the feeling of entitlement to money?

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

6 Ways Money Really Can Buy Happiness

Lynn Truong — Mon, 31 Oct 2011 10:36:19 +0000

A study in the Journal of Consumer Psychology (PDF) looked into the age-old question, "Can money buy happiness?" Their answer was a resounding yes. In fact, they concluded that "If money doesn't make you happy, then you probably aren't spending it right."

Their assertion is that the vast majority of us are making incorrect predictions about how money will make us happy, so we spend it in ways that we think will make us happy, but they don't. However, if we follow certain principles of spending, money indeed will make us very happy. (See also: Does Money Really Buy Happiness?)

1. Buy Experiences Instead of Things

Researchers found that people reported greater happiness when reflecting on an experience purchase rather than a material purchase. The reason is because we adapt to things very quickly. Buying a new and shiny toy brings us some happiness at the moment, but after a day or two, it becomes an everyday item that we use. In contrast, an experience takes us out of our everyday and leaves a lasting impression. Imagine a safari adventure or surfing in Hawaii for the first time. You will remember it more fondly when looking back than you would a purchase of a thing, no matter how shiny it was.

2. Spend Money on Other People

We are profoundly social, and the quality of our relationships is a strong indicator of our happiness. People who spent more in "prosocial spending" (gifts for others or charity donations) were happier, even after controlling for income levels. Subjects felt happier when they reflected on a time when they had spent money on others versus a time they had spent on themselves. Using MRI scans, researchers showed that giving money away (even when being forced to do so) led to activation in brain areas associated with receiving rewards.

3. Buy a Few Small Things Rather Than One Big Thing

We adapt so well to the stuff we buy that making even a big material purchase does not have long-lasting effects. But that also means that the difference in happiness between a big purchase and a small one is minimal, and we could have multiple pleasures at the cost of one. We don't need a lot of money to buy the one big thing when we can afford smaller, more frequent mini-things. The amount of money spent on the purchase affects us less than just the enjoyment of having something new.

4. Don't Buy Warranties for Emotional Protection

The researchers are coming from the point of view that consumers buy warranties as a safeguard again emotional loss. People tend to predict that they won't cope very well in a bad event (even though they're wrong — we're more resilient than we think). "The prospect of loss is highly aversive to people, who expect the pain of losing $5 to exceed the pleasure of gaining $5. This is not true." Even though the warranties offered by retailers and manufacturers are generally known to be bad deals for consumers, they're still purchased by people who believe that the warranties will make them happier if something does happen to their items, and they're able to avoid the loss. In reality, even if something does happen, it really doesn't make the person happier or less sad than if she didn't have the warranty at all.

5. Delay Consumption

People generally feel happiness when they anticipate an event. The person who buys a cupcake and eats it right away experiences less joy than the person who takes it home with anticipation to eat the cupcake at a later time. The difference is the extra happiness she gets during the ride home. Even though we are so used to instant gratification and desire it, we still very much enjoy looking forward to something in the future. We think it'll make us happier to get the satisfaction right now, but in reality we're perfectly happy while eagerly awaiting something.

6. Focus on the Day-to-Day Impact

Many people have big dreams, like buying a McMansion or a boat so they can sail off for months at a time. We imagine having a cottage in the woods where we can get away every weekend or retiring at 35. When we daydream about fulfilling these goals, we see a big — but fuzzy — picture. We forget that a very large house requires more time to keep clean or that we get seasick. We don't think about bringing home mosquito bites and bed bugs from the cottage or that retiring at 35 is actually pretty boring. Remember to think about the day-to-day impact of what you want to purchase. In this case, it really is about the details and not the big picture.

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

4 Skills Every Leader Should Have

Lynn Truong — Sat, 20 Aug 2011 21:26:59 +0000

Link:

http://www.openforum.com/articles/4-skills-every-leader-should-have

The most well known leaders are often charismatic and extroverted. They make great speeches and can rally a crowd. In millions of successful and thriving businesses and communities around the world, there are also great leaders driving their companies and causes forward. But they're not all extroverted and gregarious. They're not all outspoken and charming. But they do all share four key attributes of leadership.

1. Leaders Make Decisions.

This sounds simple, but many business owners are paralyzed by the decision making process. A poor leader who can't decide between two great opportunities or two very tough calls makes things worse by deciding to do nothing at all. Almost as bad is the leader who asks a committee to make the decision, instead.

A good leader understands that she has to be wise but decisive. And while asking for opinions, ideas, and advice from others is important, ultimately a leader has to be prepared to make the call, and willing to take responsibility if things don't go well.

2. Leaders Meet and Greet Their People.

Those who follow need to feel connected to the leader. There has to be a trust in the leader's guidance and vision. Without a strong personal connection, that relationship cannot be built.

This doesn't mean one-on-one time with every employee, every day. If you're running a multi-million dollar company, you cannot know the name of every single person working there. But you have to be accessible. You have to find ways to meet and greet those on the ground floor. That's the only way they'll be willing to support you.

3. Leaders Establish a Common Purpose.

Your employees don't just want to help you make more money. That's not a worthy goal. Your company needs a mission statement and a culture that supports that mission. Give your employees something to be proud of by working for you. Give them a “worth vision” to pursue. The daily grind has to add up to something more than a paycheck.

The common purpose has to be worthy of their support, and they have to trust that you will hold to that purpose. Provide updates and news on the progress towards the shared goal, and make sure everyone knows where you and they stand in relation to that goal.

4. Leaders Teach.

The most important thing a good leader does is teach. Beyond the company's mission and long term vision, employees want to grow and perhaps one day create something of their own. Teach what you've learned. Share what you've been given. Be a mentor and example and ensure that you're providing an environment that will help your employees flourish. That might mean that you're giving them the tools to eventually leave your team. At the same time, stunting their ambition will be an invitation for them to leave as well.

It's easy to overlook these aspects of leadership when there are many more concrete and tangible things to address. It can be reports or meetings. It can be keeping up to date on industry news and developments. But at the end of the day, it's people who keep your company running and it's these people who deserve your attention.

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

4 Project Costs to Consider Before You Launch

Lynn Truong — Sat, 13 Aug 2011 18:36:35 +0000

Link:

http://www.openforum.com/articles/4-project-costs-to-consider-before-you-launch

It happens all the time. During a weekly (or daily) meeting, someone brings up something "interesting" he saw online or read about on the Harvard Business Review. "Maybe we should try it."

Sometimes one of these spontaneous ideas turns out to be an outburst of genius. It may solve an existing problem efficiently and economically. Or maybe it offers a new way to engage your customers. Other times, though, the excitement of something new leads us in pursuit of time consuming and costly projects that don’t deliver.

There's no doubt that today's landscape requires companies to move fast so they don't get left behind. But it's also important to be prudent about where you spend your resources. More often than not, the "shiny and new" feature that cost tens of thousands of dollars to build will become obsolete even before launch.

Fortunately, there are four simple ways to evaluate whether a long-term, resource intensive project is really going to be valuable when it's done.

1) Time Is Money

For every business, time is a cost. There may be opportunities that need to be passed on simply because you don't have the luxury of time. If your cash is going to run out in three months, but the project you want to take on is going to take five months, it doesn't matter how great the idea it is. Your company won't be standing by the time it's done. It's not just about whether you can afford to spend the money; you have to consider whether you can afford to spend the time.

2) Count the Opportunity Cost

The hard costs required to complete a project are easily inputted neatly into a spreadsheet.

You can calculate how much new employees or freelancers will cost, as well as the tools needed and other resources required. What's more difficult to calculate (and often overlooked), is the opportunity cost. What are you giving up to pursue this project? Can you be building your company in other, better ways? What resources will be diverted from other areas to support this new feature or service? There are usually many options a business can choose from for growth. Is this the very best one?

3) Review Your Priorities

Small businesses rarely have the resources to do absolutely everything they could do to grow revenues and expand their reach. This is where priorities come into play.

Pursue projects that are in line with priorities and high target goals. Don't get sucked into a sales pitch from the guy who's selling a large package of goodies that are just neat to have. Are there other things you can do that will more effectively meet your most important goals?

4) Don't Listen to the Squeaky Wheel

It's easy to get distracted by a new complaint or an inconsequential but "loud" bug. What's top of mind can quickly become an all consuming project that no one really cares about.

Whenever a new problem becomes apparent, discuss it with the team, but remember to place it in the queue where it belongs. If it's a blaring bug that demands prompt attention, that's fine. But if it's not, let it go for now and get back to it when it's time.

Keeping resources focused on your high target, high yield goals will produce the results your business needs. Stay away from the traps of pursuing projects that cost more than they're worth.

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

13 Business Leaders Who Failed Before They Succeeded

Lynn Truong — Wed, 03 Aug 2011 18:43:53 +0000

Link:

http://www.openforum.com/articles/13-business-leaders-who-failed-before-they-suc...

It’s often said that success is 10 percent inspiration and 90 percent perspiration. For these 13 eventual business successes, it might be said that success is ninety percent failure.

Akio Morita

Morita co-founded Sony, a multi-billion dollar company. But the company's beginnings were not so rosy. Their first product was a rice cooker, but it burned the rice. However, this didn't stop them from moving on to building bigger and better things.

Bill Gates

Before building his empire, Gates started a business called Traf-O-Data which went nowhere and he dropped out of Harvard. But his passion for computers and his vision of the opportunities led him to start Microsoft.

Colonel Sanders

Surprisingly, the Colonel's famous secret chicken recipe was rejected over a 1000 times before a restaurant accepted it. He founded KFC when he was 65 years old.

Evan Williams

Before co-founding the social media giant Twitter, he founded a company called Odeo, a podcasting platform. Soon after, Apple announced that the iTunes store would include a podcasting platform, making Odeo obsolete.

Frank Winfield Woolworth

Before starting the Woolworth Company (now Foot Locker), Woolworth worked at a dry goods store. His boss did not allow him to wait on customers because Woolworth "didn't have enough common sense to serve the customers." The Woolworth Company was one of the original five-and-ten-cent stores, which is the model Sam Walton used to start Walmart. Woolworth's eventually became one of the largest retail chains in the world.

Fred Smith

While studying at Yale University, Fred Smith presented a business idea to his business management class that received a nearly failing grade. The idea was for a parcel service that could deliver packages overnight. Smith ignored the grade and founded FedEx.

Henry Ford

Ford's first two car companies failed and left him broke. But that didn't stop him from founding Ford Motor Company and become the first to apply assembly line manufacturing for cars. He became one of the three most famous and richest men in the world.

Mark Cuban

Before making billions selling his company to Yahoo, Cuban failed at a variety of jobs. He failed as a carpenter, as a cook, as a waiter (he couldn't open a bottle of wine). He says of his failures, "I’ve learned that it doesn’t matter how many times you failed. You only have to be right once. I tried to sell powdered milk. I was an idiot lots of times, and I learned from them all.”

Rowland Hussey Macy

Between 1843 and 1855, Macy opened four retail dry goods stores that all failed. He learned from those mistakes, and hit it big with his next store in New York City.

Richard Branson

Even the fifth richest person in the UK didn't get to where he is now without a few failures along the way. Along with his famous Virgin Records and Virgin Airlines, he also developed Virgin Cola and Virgin Vodka. The fact that you don't recognize them says it all.

Soichiro Honda

Honda initially applied for a job at Toyota as an engineer, but was turned down. Being jobless, he started making scooters at home, which he sold to neighbors. With the support of his family, he founded Honda, the world's largest motorcycle manufacturer and one of the most profitable automakers.

Thomas Edison

Edison, one of the most prolific inventors in history (holding over 1000 U.S. patents), was told as a boy by his teacher that he was too stupid to learn anything, and suggested he go into a field that did not require intelligence. He tried more than 9,000 experiments before he created the first successful light bulb.

Walt Disney

Disney was fired by an editor because, "he lacked imagination and had no original ideas." His first animation company went bankrupt and it's said that he was turned down hundreds of times when he sought financing for Disney World. The Walt Disney company makes average revenue of US $30 billion annually.

If you're still waiting for success, do what these thirteen did and don't give up. Maybe you just haven't failed enough yet.

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

5 Office Habits to Keep When Working From Home

Lynn Truong — Tue, 28 Jun 2011 09:30:00 +0000

Link:

http://www.openforum.com/articles/5-office-habits-to-take-home-with-you

Whether you've set out on your own or have convinced your boss to let you telecommute, it may feel like a huge relief to finally lose the commute and be able to work from home. So it may come as a surprise when you find yourself struggling to maintain productivity and a stable work-life balance, when you've never struggled with either before.

What happened?

You left your at-work attitude back at the office.The structure and formality of an office setting offers unconscious cues that allow you to get in "work mode" that a home office may not provide. However, you can replicate the benefits of an office setting but still have the flexibility and comfort of working from home.

A Physical Boundary

The most obvious difference between commuting to an office and stepping out of your bedroom is the physical boundary. When you're at the office, you can't access your couch, your bed, your Tivo. Your neighbor can't knock on the door to borrow some tools. All the stuff you have at home – a leaky faucet, laundry, DVD set of Buffy the Vampire Slayer – is literally out of your reach until you get home. It sets your mind at the tasks that are in front of you.

Consider using a coffee shop or a library as your "office" to avoid distractions at home. Sometimes doing this just once or twice a week can make a big difference in your ability to focus on tough tasks or when working on a deadline. At home, create a designated work space. If you can't have a whole room for an office, use something physical to block off the space and make sure both you and others in the household respect that space. Get noise reduction headphones and turn off the house phone so you can't be disturbed, just as if you were in an office elsewhere.

Watercooler Chats

Among the most valuable aspects of a traditional office are daily social interaction and camaraderie. It's not just nice to have social relationships, but it's an opportunity to network and establish bonds with other people in the industry.

Remember to make time for professional engagements that allow you to connect with colleagues. This might be joining a local meetup group or just keeping in touch with old coworkers by meeting them for lunch. If you are telecommuting while fellow coworkers are at an office, it's all the more reason for you to maintain regular contact (in person) to stay properly integrated into the team.

Role Models

Not having a boss down the hall who can easily look over your shoulder may be liberating, but on the flip side, not having someone you can quickly reach out to for advice and direction limits your productivity. Further, one of the best ways to grow professionally is to have a mentor. If you're working from home, you may need to reach out to people you look up to and see if they'd be open to mentoring you.

Respectable Clothes

One of the best things about working from home is that you can be on important conference call in your bunny slippers. However, being in your PJs all day isn't conducive to training your mind to be in work mode. After all, PJs equal bedtime; our bodies respond to routine. If you go through a "getting ready for work" process, it will help your mind and body gear up for it. This doesn't mean you have to wear a tie at home, but it does mean getting out of your PJs and brushing your hair.

Office Hours

Increasingly, employees are breaking out of the usual "office hours" anyway by checking and sending emails during non-office hours, but it's still important to establish your work hours regardless. Working from home allows you a lot of flexibility in setting those work hours. For example, you can work 4 hours in the morning, break for 4 hours, and then work 4 hours in the evening. Whatever works best for you is what you should go with, and then make sure the people in your life are aware of that.

One of the problems about working from home is that friends and family think that you're available for them at any time. You'll get requests for airport pickups, impromptu visits, and other tasks and events that you're expected to do or participate in because you can work "any time." While it's true that you are able to adjust your work time, it's just as important to maintain a regular schedule so that your colleagues can reach you, your work is done promptly and efficiently, and you don't lose your professional edge.

It's easy to take for granted some of the ways that a "real office" contributes to your professional growth and productivity. But a home office can give you the best of both worlds. All you have to do is step out of your bunny slippers and keep yourself actively engaged.

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

7 Reasons Your E-mail Pitches Are Failing

Lynn Truong — Fri, 27 May 2011 22:10:04 +0000

Link:

http://www.openforum.com/articles/7-reasons-your-e-mail-pitches-are-failing

You've got a great product or service that you know people would love if you could just get the word out. And what better way to spread the word than via an email blast? It's cost effective. It reaches everybody. You could probably write it yourself. But in this spam-filled digital age, you need to make sure your message isn't tossed out with the rest of the trash.

If you're finding that you're getting zero love back from your email pitches, it's probably not your service or product (because it's awesome, right?). It's more likely your delivery. As a small business owner myself, I get hundreds of solicitations from other business owners asking me to "check out this service." Unfortunately, I often end up clicking the "delete" (or worse, the "report spam") button, even though I know there must be a few gems in there.

These are the seven most common mistakes I see from those trying to reach out.

You are sending it to the wrong person.

It should be obvious, but you must do your research before you send your pitch. Just because an email is easy to send, doesn't mean you shouldn't take the time to do it right. Find the right person and tailor your message to that person's needs.

An email sent to webmaster@sitename.com will most likely end up in the black hole of emails. What did it matter that it took you very little time to send it? You've still wasted your time. If your pitches aren't landing in the right person's mailbox, then your email won't be useful, period, no matter how well written it is.

You are not offering a clear benefit.

The most annoying email that I get goes something like, "Please check out my website and let me know what you think!" Who are you and why should I spend my time doing you a favor? Entice me. Give me a reason why you're going to make my life better (but do it quickly and concisely). Tell me why your product is groundbreaking and offer me a sneak peak or free trial. And more importantly, make me like you enough that I would even want to "check out" what you have to offer.

You are writing too much.

No one is going to take the time to read through a long email from someone she doesn't know. Introduce yourself (briefly) and get to the point. Be specific and clear. Break down your message to its key elements — think "elevator pitch." You only have a small window of time to catch someone's interest. There are hundreds of other emails waiting in line.

You are not asking for a specific action.

If you've gone through the process of explaining your company, but have left no specific call to action, it's likely that you won't get any response, even if the recipient is interested. What are the next steps? Sign up for an account online? Arrange a meeting? Don't expect the other person to take the initiative. Tell them what they should do next.

You are being mysterious.

This is another type of email that I never respond to: "I have an exciting opportunity for you. Please call me to discuss it further." It tells me that you've got nothing interesting to offer me, and worse, that you've got no respect for my time. The Mr. Vague approach won't pique anyone's interest and it won't inspire follow up. If you want me to be interested, be direct and tell me what you're offering.

You are being too pushy.

It's fine to follow up, but you aren't entitled to a response. If you haven't gotten a response, you can assume that the other party isn't interested. Never send out a follow up message that simply says, "I haven't heard back from you about the message I sent last week. Please respond as soon as you can." Instead, try a different tactic. Look at your last email and see if you could frame your message better. Was it too long? Did you not include a strong benefit? Try again with a shorter, smarter pitch. But stop after two attempts. You can try sending it to another person in that organization, but at some point you have to let it go.

You are expecting too much.

Telling someone that you did something for them ("I linked to you in my blogroll!") and then asking for the same in return is simply bad form. If you are interested in a true partnership, the relationship has to be mutually beneficial and the terms agreed upon up front. You can send a note that explains that because you are a big fan of the site, you've added it to your blogroll, but don't expect anything in return (except a warm thanks).

Sending out a "cold email" may not be as difficult as cold calling on the phone, but it's just as important to get the pitch right. Otherwise you're wasting everyone's time.

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

How to Always Be on Time

Lynn Truong — Tue, 17 May 2011 10:24:16 +0000

When it's really important for you to be somewhere on time — job interview, first date, wedding — you have to plan ahead. These tips can help, and you may be surprised to find that it's not just as simple as "leave early." (See also: 10 Ways to Save Time by Spending Time)

1. Prepare to get there early.

I'm big on punctuality — my husband, not so much. He just can't stand the thought of getting somewhere early. He'd feel like he wasted perfectly good time that he could have spent lounging and relaxing at home — a whole 10–15 minutes of his life thrown away for no good reason. In order to be on time, you have to be okay with getting there early. It's a mindset. So prepare for it. Bring a Kindle.

2. Know how long the preparation actually takes.

You might think it only takes you 15 minutes to get ready, but on the big day you find out that 15 minutes doesn't even get you shaved. Consider that if this meeting or event is really important, you'll also want to get extra spiffed up, which takes extra time. Have you also accounted for things like having to walk a block and a half to get to your car? All those little things eat into your time before you're able to actually start traveling to your destination.

3. Have your outfit ready.

This doesn't just mean figuring out what you're going to wear. For the men, you might just need to decide on which tie, but you should actually take the clothes out of the closet and lay them out. You might even want to go ahead and put the outfit on — how long has it been since you've worn it? Maybe you've lost or gained some pounds. Maybe there's a spot that you had planned to get cleaned but forgot about. Is the outfit wrinkled? Is there a button missing? These are all things you do not have time to deal with as you're getting ready.

4. Map out your route.

Do not rely on your GPS. There are a variety of reasons it might not work on your way there. Know how to get where you're going without having to depend on it. Use Google's street view to look for landmarks that will signal that you're there. Know the parking situation.

5. Organize everything you need to bring.

You don't want to be looking under your couch for your keys right before you leave. Put everything you need to bring with you — including directions, business cards, and Kindle — all in one place.

6. Create a timeline and stick with it.

Work backward to determine what time you should start getting ready. Always pad the timing for contingencies — remember, don't be afraid to get there early. If everything goes smoothly, then you will be there early, but if something happens to delay you, at least you had accounted for that time and will still be there on time.

6. Do not distract yourself before you leave.

Once your timeline tells you to start getting ready, don't do anything that's not listed on the timeline. You can check email one last time here in case something happened to change the meeting but don't check it again. Don't turn on the TV while you're getting ready. Don't make one last phone call. Stick to the schedule!

7. Choose a time that's best for you.

Sometimes this isn't possible, but if it is, choose a time that gives you the highest probability of being on time. If you're not a morning person, don't schedule something that is going to rely on an alarm waking you up on time. If you're not close to the venue, try to avoid peak traffic time. If you often have to work late, don't schedule a dinner that depends on you leaving work right on time.

Written by Lynn Truong and published on Wise Bread. Read more Productivity articles from Wise Bread.

7 Essential Small Business Tools to Save Money, Time, and Space

Lynn Truong — Sun, 13 Mar 2011 18:46:54 +0000

Link:

http://www.openforum.com/idea-hub/topics/technology/article/7-essential-small-bu...

It's time to clear out the clunky machines and aisles of file cabinets. Businesses nowadays can function without a ton of storage space for supplies and paper records. Use these seven essential tools to save money, time, and space for your small business.

EchoSign

Contracts take up a lot of space and resources. Multiple pages and copies need to be printed and copied, then mailed, and finally stored away. Enter EchoSign to save the day. Contracts can be filled in and signed, verified and secured, and a PDF copy distributed to everyone in no time at all.

CutePDF

Cute PDF allows you to save any webpage or document as a PDF. Instead of printing something out on a piece of paper that you need to file away, save it as a PDF and keep it as an electronic copy that you can access easily on your computer. CutePDF is installed as a printer. To use it, go to "print" and choose CutePDF as your "printer."

eFax

Donate your fax machine. You don't need it anymore. Use eFax to send and receive faxes from anywhere. When you receive a fax, you'll get an email notification with the scanned document. You won't have a machine taking up space or need a stash of paper to feed it.

YouSendIt

Do you have large audio, video, or image files that need to get sent to clients or vendors? Are you still burning them on a DVD and mailing them because the files are too large to send via email? Use YouSendIt instead for files up to 2GB.

Mozy

There are various services available that helps businesses back up their data in case of a computer crash. I use Mozy and love it -- it's affordable and no fuss. Once it's set up it works quietly and efficiently in the background with no further action required from me. There's no need to manually transfer your data to an external hard drive or burn hard copies of the data periodically.

Dropbox

Do you still carry a bunch of flashdrives to carry your important e-files with you from work computer to home computer? Do you need to email documents to yourself when you're traveling? Dropbox will make your life easier. Put documents you need to access in Dropbox and retrieve it from any computer. There are also sharing features that allow others to access those documents, too

FreshBooks

There's no need to continue to print out and mail invoices. Just use FreshBooks to create simple invoices and have it delivered to their inbox. Clients and vendors can view and save a copy fo their records. It doesn't get any easier than that.

Keeping up with the latest technologies and features is not just something that will help streamline your own processes and cut expenses, but will help the relationship with clients, customers, and vendors alike. They may be used to using these new apps and if you aren't up to date, it can affect the ability for others to interact with your business. While you don't want to jump on every new thing that comes out -- that would be inefficient if it turns out to be a dud and you have to go back to an old system -- you want to always be aware of what many businesses have started to adopt so that you can decide whether it's a good option for you.

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.

Wise Bread's Halloween Adventures

Lynn Truong — Tue, 02 Nov 2010 14:00:19 +0000

I spent this Halloween with my three-week old niece. It got me thinking about all childhood Halloweens. My mom used to make all my costumes — from Strawberry Shortcake (I won a prize!) to Snow White, my mom dutifully sewed whatever I asked. Thanks, mom!

Here is a roundup of some of our writers' favorite Halloween memories. Please share your Halloween adventures with us in the comments below!

Jeff Rose: It was November 2004. I was set to deploy to Iraq in January for a 15 month deployment. My original plan was to propose to my (now) wife in January, but the Army kind of interfered with that plan. Knowing I wanted to do it before I deployed, I was having a hard time trying to find the perfect opportunity.

For Halloween that year, we had our costumes picked out: I, the Tin Man, and my wife, Dorothy. Me being me, I had to come up with something clever and romantic when I proposed. I had never been more nervous in my entire life.

Getting down on one knee, I uttered something to the sort of, "You are my Dorothy. You will always and forever have my heart. Will you marry me?"

Even as cheesy as that was, she still said "yes."

6 wonderful years and 2 amazing sons later, we're still just as madly in love and "there's no place like home."

Linsey Knerl: My husband is an over-achiever when it comes to costumes. The night before the big parade for the kids, he tells me that he is definitely going with the "Wizard of Oz" theme for our boys. He stayed up all night, carefully wrapping cardboard with aluminum foil and creating a hat for our oldest son — the tin man. The two other boys were sort of an afterthought: one would be a lion from a costume we bought for dress up last year, and the other would get by with straw hot-glued to the inside of his clothes and hat.

We were still assembling the tin man outfit as we pulled into the driveway of the spot where the parade was to begin. The kids were already lined up and marching down the sidewalk, and we were fiddling with zip ties and more aluminum foil! Even though our son lost the bottom half of his tin man costume within the first 2 blocks of the event, he was perhaps the best-dressed this year. And the only thing we purchased was the funnel he wore on his head ($1 at the thrift store). Even his ax was a homemade invention from duct tape and cardboard!

Julie Rains: The kids didn't dress up for Halloween this year (the picture above is from a previous Halloween). They have decided they are too big (16 and 13, both about 5' 7"). Their church youth group had a Halloween-oriented scavenger hunt, and then we stayed home and gave out candy to the few trick-or-treaters who stopped by.

The most entertaining thing that happened was that my youngest son heard on The History Channel that 90% of adults eat their kids' Halloween treats. The most popular item is chocolate bars and the least popular is licorice. He seemed shocked that parents could be so sneaky. Then he confronted me about my past and I admitted to eating some of his stash from Halloweens long ago. My rationale was to help him avoid eating so much sugar.

Paul Michael: I dressed as a Roman soldier, complete with SPQR tattoo. My wife was Cleopatra, and to stay with the theme, our girls decided to completely ignore it and be a witch and her cat! My brother-in-law was "sick housewife" and his wife was a pirate. Much fun was had by all, even though it was very cold here in Colorado when we went trick or treating on Sunday night.

Lela Davidson: My husband and I knew we'd be pirates again this year, mostly because we already had the costumes. Sort of. Throughout the busy pre-Halloween week I knew that my husband's costume might be incomplete. At the edges of my memory there was something about using the pirate shirt as a buffing cloth, the kids mutilating the Captain Jack wig, and someone using the eye patch as a sling shot. However, I didn't have time to confirm any of that. We'd pull something together, I knew it. Come Friday night the only male pirate items in the house were the fake swash-buckling boots. I had to think fast.

My husband ended up in a cape, my pirate hat (complete with pink ribbons), some cheap gold bling, and a fuschia tie. He was a rather flamboyant pirate. "Could you humiliate me any further?" he asked as we rang the doorbell to the party. Ten minutes later a friend yells to me at the makeshift bar, "Hey, Lela, you've got to see this." In the living room he posed with two cigarette-smoking pregnant women, one of whom was a nun. Clearly I could give tips for frugal Halloween costumes, but perhaps I should write a post for Parenting Squad about the messages such costumes send our kids!

Nora Dunn: I'm currently traveling through Australia, where Halloween doesn't seem to be a particularly big deal. However I still found a place to kick my heels up, at a party in the Aussie countryside! It gave me a chance to practice an art I love to do: fire-spinning. (Next up: I'll be taking the train across the Nullabor desert from Melbourne to Perth and back. I love train travel!)

Written by Lynn Truong and published on Wise Bread. Read more Entertainment articles from Wise Bread.

4 Pricing Strategies to Promote Value

Lynn Truong — Fri, 02 Jul 2010 18:11:22 +0000

Link:

http://www.openforum.com/idea-hub/topics/money/article/4-pricing-strategies-to-p...

You know the value of your product — the benefits and innovations that set your products or services apart from the rest. You want your customers to think about these factors when they weigh your product against competing selections, but odds are that they won't. Of the many options on the shelf, customers are likely focusing on the price tag. Don't think lowering your prices is the best route to take, though. Consistently undercutting your competitors will get you more customers at first, but if that is all you do, you can kiss your brand equity and profit margins goodbye.

Don't get sucked into a price war. Instead, change the way your customers view your products. Convince them that your product isn't just a commodity that can easily be substituted by the next, cheaper item on the shelf. Marco Bertini and Luc Wathieu describe four strategies to stop customers from fixating on price. Your main weapon? The price.

1. Specify Pricing by Value

Paradoxically, the best way to draw customer attention away from price is to revise your pricing strategy. One option involves changing the way you present the prices of your various offerings. Divert their focus from the price itself, and specify the value you're offering.

Goodyear did this with great success. The tire company had a hard time convincing their customers that their tires were worth the premium price. So they began to base the pricing on how many miles they're expected to last. Instead of using a lot of engineer speak and going into the complexities of their innovations, they figured out a simple way to communicate their premium value (thus the reason for their premium pricing). That's the kind of value customers are willing to pay for.

2. Raise Your Price

In a price-conscious market, consumers usually pick the product with the lowest price, if they think the products are of equal value. Throw in a price that's unusually high, and you'll grab a second look. Take advantage of the curiousity and convey benefits that they hadn't considered before.

For example, Burt's Bees priced their personal care products at 80% to 100% over competing, nonnatural brands. Customers were shocked by the unusually high prices, but they also wondered what made Burt's Bees' products so special. They discovered that Burt's Bees' offerings were made with natural ingredients by a socially responsible organization. And to many customers, this mattered.

3. Offer Menu Pricing

Allow customers to select parts or services for their individual needs. Breaking down the prices can help customers focus on value than the lump sum total. It also allows price conscious customers to opt for basic services while those who are willing to pay for value will upgrade.

Bertini and Wathieu conducted several experiments to test this strategy. In one experiment, the participants were asked to choose between a $165 nondirect, no-frills flight and a $215 direct flight with meal service and in-flight entertainment. They created two levels of amenities for the $215 flight on the assumption that better quality would convince more participants to choose the higher fare, but it turned out that quality didn't matter when the fares were presented as a lump sum. Rather, it was when the fares were itemized and the quality of the amenities made explicit that more participants opted for the higher fare.

While price partitioning is great way to highlight your competitive advantages, this strategy often backfires when companies itemize fees for standard, unavoidable, or mandatory features — like check-in and baggage handling.

4. Offer Personal Relevance

This strategy is effective when customers are presented with several options designed to appeal to different tastes. With price differences out of the picture, customers will need to discover which option suits their needs best. It compels them to base their purchasing decisions on the differentiating features of your products and not solely on the price.

One example of this strategy at work was Apple's decision to sell every track available on iTunes at the uniform rate of 99 cents per track. Steve Jobs was criticized for not taking advantage of the fact that high-demand products can carry a higher price and for disregarding the conventional practice that lower-demand products must be priced lower. As it turns out, this was a profitable move for Apple. When customers shop on iTunes, they're less fixated on price, more sensitive to the selection and their own musical tastes, and more willing to buy more tracks.

Written by Lynn Truong and published on Wise Bread. Read more Small Business Resource Center articles from Wise Bread.

How to Cut the Last 10% of Costs

Lynn Truong — Sat, 26 Jun 2010 00:51:53 +0000

Link:

http://www.openforum.com/idea-hub/topics/money/article/how-to-cut-the-last-10-pe...

If your business is still standing, you've no doubt cut costs in the last year or two. You've reduced spending in the most obvious, big places. Now you see you've just got a little more to go. Eking out the last 10% is still possible without causing major changes to how individual departments or work groups interact with each other.

Events and Activities

You've probably already cut all the nonessential perks and activities, so try to consolidate the ones that you do want to keep. Consider the events that require the same people to attend and make it an all day event instead of two separate days one month apart. For example, combine training sessions with celebrations. Events don't necessarily have to be on the same day — sometimes even having it on the same weekend can cut costs significantly.

Underperformers

There's a difference between people who might be less-than-busy and those who are consistently underperforming. For those who are underperforming, bite the bullet and let them go. For the less-than-busy people, spread out the work the underperformers were responsible for. The key is not to over-work your employees, but to make sure they're being fully utilized.

Supervisors

If there has been little turnover, the need for supervision should decrease over time. Employees learn the ropes and can be trusted to make decisions efficiently as they grow. Keeping the same amount of supervision over the same group of people not only limits growth but impedes efficiency. Employees end up wasting time discussing decisions, which made sense to do a year ago when the employee just started, but now can handle on his own. Supervisors can be given more important work and doing less looking over shoulders.

Supplies and Equipment

It's very easy to go overboard with the supplies and equipment spending. Make sure the process for ordering supplies and buying equipment is managed closely. You don't need to deny employees of basics like pen and paper, but perhaps there is a cheaper vendor. And when buying equipment, consider your needs rather than wants — do you really need the top of the line model? Can you wait 6 more months to purchase? Every consideration counts. Purchase thoughtfully.

Pay Increases

Pay increases are important for morale and keeping talent. But if your employees' salaries aren't below market, you may want to hold the average pay increase to 1% or 2% less than last year's company average.

Previously Rejected Ideas

Your company is likely in a different place than it was three business cycles ago, and the constraints and priorities that caused previous suggestions to be rejected may not be relevant now. An old idea may be a viable option this time around.

Written by Lynn Truong and published on Wise Bread. Read more Small Business Resource Center articles from Wise Bread.

6 Ways to Keep Your Rising Stars on Track

Lynn Truong — Wed, 16 Jun 2010 01:59:51 +0000

Link:

http://www.openforum.com/idea-hub/topics/managing/article/6-ways-to-keep-your-ri...

You may think it's safe to assume your rising stars are also highly excited and committed to your company, but Jason Martin and Conrad Schmidt's research suggests otherwise. Over the past six years, they studied over 20,000 "emerging stars" at more than 100 organizations worldwide. Considering the statistics that came out of the study, you may want to rethink any assumptions you have regarding your high potentials:

One in four intends to leave her current employer within the next year. 12% of all the high potentials in the study said they were actively searching for a new job.
One in three admits he is not putting all his effort into his job.
One in five believes her personal aspirations are very different from what the company has planned for her.
Four in 10 have little confidence in their co-workers and even less confidence in the senior team.

So, what can you do to combat negativity in your rising stars? Here are six ways to keep your company's best assets — its future leaders — on track.

1. Keep them engaged.

Your rising stars want stimulating work, recognition for their accomplishments, and the chance to push their career forward and prosper with the company. If the company is struggling, however, they are the first to consider leaving. Confident in their skills, they are the ones most likely to actively research other opportunities.

Even if your company is experiencing rough times (as many companies are these days), you need to make sure that high potentials are engaged in the company. Give them the recognition they're due by celebrating their successes and reward them with flexible work options, such as once-a-week telecommuting. Make it clear that their individual goals align with company goals and let them help solve major problems. The more involved they are with building the company's future, the less likely they will jump ship when the going gets tough.

2. Assess them for future potential.

The three attributes that really matter in the success of rising stars are ability, engagement and aspiration. Your rising stars need to have the intellectual, technical, and emotional skills necessary to handle future challenges, especially as their roles in the company become more and more important. They also need to feel personally connected and committed to your company and its mission. And they certainly need to want to advance in the company.

According to Martin and Schmidt's research, 70% of high performers don't have the levels of ability, engagement, and aspiration necessary to succeed in future roles. Although it certainly isn't impossible to do well without them, the chances for success are greatly reduced if even one attribute is found lacking. Design annual tests and interviews to assess these dimensions. You want to make sure that your rising stars will continue to rise.

3. Manage them at the corporate level.

Don't delegate the management of your top talent to line managers. Sure, line managers may know employees' individual strengths and weaknesses. It may also seem to make sense from an economic standpoint because the costs of talent development programs are shifted from corporate headquarters into the budgets of the department or business unit.

However, leaving the cultivation of your future leaders exclusively to business units tends to narrow the development opportunities of top talent, focusing on the skills required now rather than those needed tomorrow. Instead, senior leaders and general managers must share the development of high potentials. Your star players will be much more willing to contribute to the company if they're treated like the critical organizational assets that they are.

4. Place them in "live fire" roles.

Emerging stars need to be placed in demanding roles where they have to acquire new capabilities in order to succeed. Don't shield them by leaving them where you know they'll succeed. Your company's future leaders need to be developed and tested in "live fire" roles where they must perform under real stress and where there the chance of failure is very real.

Start by identifying the high-impact positions in your company that can offer quick development and learning opportunities (i.e., "brand manager for a leading product" or "marketing director for a new segment"). Then, make an effort to assign most of these positions to your high potentials. Yes, failure can disrupt the business, but if you shield your emerging talent from derailment in the training stage, they may not be able to handle greater challenges later on.

5. Make them feel special.

Martin and Schmidt's research found that under normal circumstances, high potentials put in 20% more effort than other employees in the same roles; their contributions may be even greater if the company has recently downsized or restructured. However, don't take their extra efforts for granted just because they're willing to do the work.

Give your support to your company's best employees. One company in the study dedicates a portion of the dollars saved through layoffs towards the emerging leaders' bonus pool, while another company buys lunch for its high potentials every day. Such gestures of appreciation, whether generous or modest, show your employees that hard work will be rewarded accordingly.

6. Share future strategies with them.

One of the strongest factors in high top employees' engagement is their confidence in their managers and in the company's strategic capabilities. If you don't disclose corporate strategies at times of economic uncertainty, you risk disengaging the very people that can help your company pull through.

Share strategies with your high potentials by sending them e-mail updates, inviting them to meetings with high-level executives, or providing other opportunities for them to weigh in on corporate direction. Let them know they're part of the team that is building the company's future. That's exactly what you want your rising stars to do, after all.

Written by Lynn Truong and published on Wise Bread. Read more Small Business Resource Center articles from Wise Bread.

10 Ways to Save Time by Spending Time

Lynn Truong — Wed, 14 Apr 2010 13:16:43 +0000

Just like the adage you have to spend money to make money, it’s just as true that sometimes you have to spend time to save time. But when do we know if a time investment will have a high ROI? Here are 10 ways to save time by spending it.

1. Learn a Skill

If there is a recurring task that takes up a large amount of your time, consider whether getting some training will speed things up for you in the future. If you run a blog, but haven't taken the time to learn all that your CMS (Wordpress, Drupal, etc.) has to offer, you're probably spending a lot of time doing things the hard way. Information and training is not only readily available, but mostly at a low cost. Unless it's something you are planning to outsource, there's just no reason to continue to do something inefficiently if you can learn a valuable skill and save time in the future.

2. Build a System

Sometimes a lot of our time is spent repeating steps. Are you answering the same emails every day? Create a canned response in Gmail, or save an email template for Outlook. Are you doing things manually that can be automated? Use Quickbooks or Mint.com to automatically download and sync your credit card and banking transactions. Stop repeating tasks that can be eliminated if you can spend the time to build a proper system for it.

3. Assign a Point Person

When there are too many cooks in the kitchen, most of the time is spent figuring out how to avoid tripping over someone else. If there are multiple people (or departments) involved in a project, decide ahead of time what needs to be committee approved and what can be left to the discretion of the point person. A lot of time is wasted waiting for approvals from various people for decisions that really don't deserve so much attention.

4. Establish a Routine

Don't get stuck figuring out over and over again how to do the same task. Having good documentation is time consuming, but it's essential to have step-by-step instructions for tasks that are extremely detailed and prone to error. Otherwise you'll end up correcting the same mistakes. Make sure to keep this in an easily accessible place or you'll forget or be too lazy to reach for it when starting the task. You'll also find this handy when it's time to pass this task to someone else.

5. Set a Deadline for Decisions

It's not wise to make decisions too quickly, but it's just as detrimental to take too long. If you have all the information you're going to get, allow yourself some time to ruminate over the pros and cons or come up with a creative solution, but waiting and hoping that something will magically come to you is not a good move. You'll just end up reviewing what you've already gone through many times over. Decide on a deadline to make a decision and make it, so you can move forward.

6. Read Carefully

Whether you're skimming through emails too fast or tossing the instruction manual aside before putting together the crib, you'll inevitably waste time undoing errors or rereading an email because you found out you missed an important question. Don't end up back on square one because you decided to skip the first step.

7. Keep Organized Notes

Do you find yourself in meetings where you end up discussing something that was previously resolved in another meeting, but no one remembers? Do you find yourself asking the same questions or running into the same problem that you vaguely recall fixing last time? Takes notes and make sure it's organized and effective — no, mental notes won't cut it.

8. Plan Ahead

Ever bought a desk without measuring and realize it won't fit through your office door? Some people are really good a "eyeing" it or improvising, but for the rest of us, it's just a time sink. Take the extra time to make a plan of action — even if you're just shopping at IKEA.

9. Make a To-Do List

Whether you use a task management system or a spiral notebook (I use both), just make sure it works for you and your lifestyle. Do this the night before as a way to wind down and let go. In the morning, your list will be ready and you won't have to stress over what to do next.

10. Breathe

For all our running around obsessed with being productive, we end up running in circles because we don't know when to stop. Take some time to recenter, refresh, and relax. Drink some water. Get some sun. Maybe you'll decide a few of those things on your list isn't even all that necessary. What better time saver is there?

Written by Lynn Truong and published on Wise Bread. Read more Productivity articles from Wise Bread.

The 2-Pronged Strategy for Postrecession Success

Lynn Truong — Mon, 15 Mar 2010 21:57:23 +0000

Link:

http://www.openforum.com/idea-hub/topics/managing/article/the-2-pronged-strategy...

It is probably safe to say that recessions mark hard times for everyone. Consumers cannot afford to spend as much as they used to; companies lose sales every day; employees suffer wage cuts or lose their jobs — and cannot afford to consume. The current round of this vicious cycle began in 2007, and though some say we are beginning to recover, the outcome will likely prove to be drastically different from what we used to know. What strategies can businesses use to help them survive a recession — and with enough health to thrive when times get better?

Ranjay Gulati, Nitin Nohria, and Franz Wohlgezogen launched a project in December 2008 to analyze corporate performance during three global recessions: 1980 to 1982, 1990 to 1991, and 2000 to 2002. In their article Roaring Out of Recession (Harvard Business Review, March 2010), Gulati, Nohria, and Wohlgezogen identify what they call "progressive companies" as the type most likely to come out ahead after a recession. Progressive companies utilize an optimal combination of defensive and offensive measures to help them succeed even as their rivals flounder in the tough economic landscape. The strategy most likely to produce results during — and after — an economic downturn involves improving operational efficiency and investing in both existing and new businesses.

Defensive Measures: Operational Efficiency

When a recession hits, this is often the first question that business executives would attend to: How do we cut costs? There are many ways to reduce expenditures: lower operating costs, eliminate frills, and reduce the workforce, for example. Business leaders implement these tactics in hopes that their company will save enough resources to ride out the downturn, but if the focus is solely on cutting costs, odds are good that the company will fall far behind their more aggressive competitors. Trying to do more of the same with less often results in lower quality products and services — major turnoffs for customers who are looking for better value for their money. Within the company, initiatives and innovations that may improve performance are left unfunded; employees see upper management slash head count and fear they may be next.

While it is undoubtedly necessary to cut costs when times are tough, the best way to enhance corporate performance is to increase operational efficiency. Rather than doing the same with less, companies need do better with less. Companies need to reexamine every aspect of their business models and come up with innovative and cost effective solutions. Although increasing operational efficiency is a difficult process, it is definitely worth a try. Companies that stress operational efficiency (instead of, say, reducing the workforce) enjoy better morale among their employees, who in turn become more creative in reducing costs. And when times get better, operational costs would remain low — allowing profits to grow significantly faster than those of rival companies.

Offensive Measures: Invest in the Future

Companies that are too defensive tend to fall behind competitors who are able to adjust their business models in accordance with the new economic environment. Companies that promote themselves too aggressively, however, also risk endangering the organization's welfare. Offensive moves that a company may consider include reaching out to untapped customer bases, making strategic investments with long-term payoffs, and taking advantage of depressed prices to buy talent, assets, or other businesses. While these investments may prove helpful in themselves, focusing too much on promotion may create a "culture of optimism" within the company where executives and employees ignore warning signs, taking too long to recognize and respond to crises.

Progressive companies invest in their future by spending on marketing, R&D, and new assets. They develop new markets and enlarge their asset bases by buying property, plants, and equipment at low prices so that they will be better equipped to fulfill increased demands after the recession. Investment tactics have the potential to help pull a company out of the recession rut, but only if they are implemented with customer needs in mind; adding bells and whistles at a time when customers want lower prices and greater value would only drain resources and decrease profits. If a company's executives want their business to thrive after a recession, they must make investment decisions based on how they can best meet their customers' needs.

According to the study, only 21% of companies that focus only on cost-cutting actually pull ahead of competitors after a recession; of heavy investors, only 26% fare substantially better than their rivals. Unsurprisingly, companies that perform well after a recession use a combination of both defensive and offensive measures — the best outcome results from the two-pronged approach deployed by progressive companies. Progressive companies cut costs in ways that would increase operational efficiency, freeing up resources that they would subsequently invest in marketing, R&D, and assets. The focus is always on how to improve the company's performance in the future, because once better times arrive, they will be the ones already at the top.

Written by Lynn Truong and published on Wise Bread. Read more Small Business Resource Center articles from Wise Bread.

16 Best Mobile Shopping Apps For Your Phone

Lynn Truong — Wed, 03 Mar 2010 15:00:03 +0000

Dealista MP3:

Best Mobile Shopping Apps

This article shares tips from the newest episode of Dealista, our podcast that'll help you get more for less.

Bargain hunting is easier than ever with these great shopping apps for your smart phone. You no longer have to run from store to store comparing prices, or wonder if the hot deal you're looking at might not be as hot as the one offered across the street. Use these popular shopping apps to make sure you're walking out the store with the very best deal.

ShopSavvy: Scan barcodes with your phone and compare prices across 20,000 retailers. It also provides reviews. Available free for iPhone and Android.

Shop Nearby: Shop every store with every product on the web from your iPhone. Find out which stores near you carry the products you're looking for and compare prices. Available free for iPhone or mobile browserK.

RedLaser: Similar to ShopSavvy, you can scan bar coded items and compare prices from GoogleProducts and TheFind database. Available for iPhone at $1.99.

Amazon: Search and compare prices from local retailers for over a million products sold on Amazon.com. Available free for iPhone, Blackberry, and Android.

Save Benjis: Search online vendors for virtually any product to compare prices. This app also provides product descriptions and reviews. Available free for iPhone.

Compare Me: If you've got two items of varying volume and need to figure out which is the better deal, CompareMe will tell you. Available for iPhone for $1.99.

Coupon Sherpa: Use this app to find coupons while on the go. Just show the coupon on your phone and it'll scan at the register! Available free for iPhone.

MobiQpons: This cool app will show you coupons available for stores, restaurants, and services near you. Available free for iPhone, Android, and Blackberry.

SnapTell: Take a photo of the cover of a CD, DVD, book, or video game and the app will identify the product and find ratings and pricing. Available free for iPhone and Android.

Compare Everywhere: Scan barcodes to get product prices and reviews. It can even use Android's GPS to tell you the location and directions to the nearest store that stocks the item. Available free for Android.

Buzzillions: Get product reviews on the go. Make sure the plasma TV you're eyeing at the store has user approval. Get all the reviews and ratings you need at your fingertips. Available free for iPhone.

GoodGuide: Scan a barcode to see if a product is safe, healthy, and green. See detailed ratings for health, environmental and social responsibility. Available free for iPhone.

Point Inside: Ever get lost while in a shopping mall, and can't even find the directory for a map? Take out your trusty phone and pull up the mall directory directly. Available free for iPhone.

Slifter: Get local product search, prices, images, maps, and a personalized shopping list with this neat app. Available free for iPhone and Blackberry.

Holiday Gift Guide: Browse through over a thousand items that are listed on popular holiday gift lists, and find them locally at nearby or online stores. Available free for iPhone.

Be Nice to Bunnies: Developed by PETA, you can use this app to check if a product was made cruelty-free. Available for iPhone for $1.99.

Quick and Dirty Tips for Using Shopping Apps to Get the Best Deal

You're armed with these apps and you're ready to hunt down the best bargains. Don't forget these tips while you're at the store.

Resist the temptation to buy something you know isn't the best price simply because you want it now. Sometimes it makes sense to pay more for convenience, but not when you're just impatient.
If one of your nifty apps do tell you a store nearby has the item for less, show it to the store manager. You might be able to get a price match then and there, rather than having to make a trip to another place.
Check out reviews and user ratings. Learn from the mistakes of those who bought before you.

Dealista is a collaboration between Wise Bread and Quick and Dirty Tips, the producer of popular podcasts such as Grammar Girl, Money Girl, Winning Investor, and Mighty Mommy.

If you enjoyed these tips you can find more in our show's archive.

Written by Lynn Truong and published on Wise Bread. Read more Shopping articles from Wise Bread.

How to Choose an Accountant for Your Small Business

Lynn Truong — Sun, 21 Feb 2010 18:00:31 +0000

Link:

http://www.openforum.com/idea-hub/topics/money/article/how-to-choose-an-accounta...

Small business owners often overlook the importance of having a good accountant on their side. The role of the accountant doesn't have to be limited to tax preparation. He can be a valuable adviser for your business year round. Here are some things your accountant should be involved in for your small business.

Taxes

This is the area of expertise your accoutant should know backwards and forwards. Get an accountant who has a lot of small business clients — even better, a lot of small business clients in your industry. There are a ton of tax laws and codes, and the more experience your accountant has in your particular industry, the better he can help you optimize your tax planning. He can advise you on common practices and keep you up to date on recent developments. He should also be monitoring your business growth, and be able to advise you on options as you grow. For example, he may recommend that you change your business structure (from LLC to C-Corp) if it looks like you can see significant tax savings based on your earnings. You should also be calling your accountant before you make large purchases or enter into lease agreements to see what options are most beneficial to you from a tax standpoint.

Money Management

Beyond tax considerations, your accountant should be able to advise you on all aspects of your financial planning and management. He can be a sounding board when you are considering an investment for your business. He can guide you through financial hurdles. Whether you have a problem with cash flow, credit, or collecting money due, your accountant should be the first person you call before taking any action. In addition to your business finances, you can go to your accountant for personal finance advice. Because he knows your business so well, he can make good recommendations on how you should save or invest your own money.

Employment Laws

From labor laws to benefits, your accountant can help you navigate through all the rules and regulations required of employers. Once you have employees, you'll need to find out about workers comp insurance, health and retirement benefits, and payroll taxes. If you're not ready to have a full fledged Human Resources department, your accountant can fill in. It can get complicated, and it'll be wise to have an accountant ready to guide you, especially as your business grows. For example, some employment laws only apply after you have a certain number of employees. It's important that someone is on top of the various phases of your business, and sometimes it's just nice if it doesn't have to be you.

Numbers Analysis

Numbers are a second language to accountants. You don't have to be good with numbers if you have an accountant. He can look at your sales figures and determine profitability. He can verify that your debt vs. equity ratio is appropriate. He can be a resource to help you compare your benchmarks within the industry. He can provide profit forecasts, cash flow projections, perform annual audits. These reports can help you greatly in monitoring and optimizing business performance and growth.

Business Financing

A good accountant is invaluable if you are seeking capital. He can help you evaluate various options available for business financing. He can read your financial statements and tell you exactly what your lenders are looking for. He can prepare you for the questions you'll need to answer and the documents you'll need to prepare. Additionally, it's likely that he'll have access to resources and contacts that will give you an edge for obtaining the best financing.

As tax season rolls around, you may want to give more thought to building a relationship with your accountant, or shop around for one who can provide expert advise for your small business.

Written by Lynn Truong and published on Wise Bread. Read more Small Business Resource Center articles from Wise Bread.

Marketing to Women: Who's Doing It Right and Who's Not

Lynn Truong — Sat, 20 Feb 2010 17:14:48 +0000

Link:

http://www.openforum.com/idea-hub/topics/marketing/article/marketing-to-women-wh...

Women are juggling conflicting priorities (work, home, family, and themselves) on a daily basis and struggling to negotiate the many demands on their time — they could use any help they can get, and yes, they would be willing to spend money for it. However, few companies have responded to women’s needs, even if this could mean more sales and access to an increasingly influential market.

Michael J. Silverstein and Kate Sayre are partners in the Boston Consulting Group and coauthors of Women Want More, the book resulting from the 2008 study conducted by BCG which aimed to create an understanding of what women want. The results of the 120-question survey, distributed to over 12,000 women around the world, led to this conclusion: Despite the considerable market and social powers that women have achieved in the past century, they still feel undervalued and underserved by the marketplace.

Consider this: BCG’s survey found that women make the decision in the purchases of:

94% of home furnishings
92% of vacations
91% of homes
60% of automobiles
51% of consumer electronics

Despite the substantial purchasing power of women, many companies simply don’t market to women, and even the few that do may be way off base. In their article The Female Economy (Harvard Business Review, September 2009), Silverstein and Sayre describe some marketing strategies that completely missed the mark with women — and some that actually worked.

Don’t Just “Make It Pink”

In May 2009, Dell launched its “Della” website in an effort to market specifically to women. It was slick, it was colorful, and it had tips for counting calories and finding recipes — in the “Tech Tips” section, no less. All in all, Della didn’t offer its visitors any substantive tools or advice — at least, none that pertained to laptops and technology. Unsurprisingly, women found the website disconcerting and condescending: Is this what Dell thinks its female customers look for when they shop for a laptop?

Dell responded quickly to the uproar. Within weeks of the launch, it had changed the site’s name and focus. But really, if companies want to sell their products and services to women, they need to do more than make things feminine. They have to understand what women want and need, then tailor their goods in a way that isn’t condescending or patronizing towards female consumers. And it helps to not fall back on those troublesome stereotypes.

Know Your Women’s Market

It’s likely that there are women who would have appreciated Della. Thing is, the majority of Dell’s female customers wasn’t satisfied with the limited offerings — and that’s a problem. Dell’s apparent target was too broad; its customers felt they were being generalized and stereotyped while their specific needs were not addressed. Perhaps Dell could have served women better if they knew which women they wanted to market to.

Take Whole Foods and Tesco, for example. Both grocery chains were favorites among the women that BCG surveyed although they appeal to different types of women. Whole Foods offers high-quality meats and produce and a knowledgeable staff for the demanding “fast-trackers” — the economic and educational elite who are willing to pay extra for quality. Tesco stores allow time-strapped “pressure cookers” — women who are married with children and often feel ignored and stereotyped — to conveniently buy a wide range of household goods at one place.

Besides the fast-trackers and the pressure cookers, Silverstein and Sayre identify four other key female consumer segments: the relationship-focused, the fulfilled empty nesters, the women managing on her own, and the ones trying the make ends meet. More likely than not, a woman can identify with different types at different stages of her life. While such segmentation has its limitations, it helps companies zone in on who they want to target and, with thorough research, deliver what she’s looking for.

Treat Her Well

She is a customer. She’ll do business with you if you treat her with respect and consideration, but she can walk away in an instant if you act like you don’t care to have her business. Women got that impression from Express stores — mainly because of their inconsistent sizing system. Four garments marked “size 8” may actually range from sizes 6 to 12. Express customers became frustrated with what should have been a pleasant experience. In contrast, Banana Republic attempted to solve the problem of fit and was generally successful — especially for pants. Its sizes were consistent across the board and offered a variety of cuts to suit different shapes. Banana Republic made it easy for women to find clothing in a size that fits.

The respondents of BCG’s survey were also dissatisfied with the performance of the healthcare industry. They were especially irritated by the amount of time they had to spend waiting for doctors and lab reports. Scheduling and keeping appointments for themselves and their families also ate up their time. And that’s added to the fact that women generally pay substantially more than man do for health insurance.

As frustrating as the apparel and healthcare industries can be, financial services seems to be the industry least sympathetic to women. Financial companies continually disappoint women by the level and quality of service they provide. BCG’s survey respondents cited lack of respect, poor advice, contradictory policies, and seemingly endless red tape that left them exhausted and annoyed. This is not how you want to treat customers with money to invest — and women do have money. By 2020, private wealth in the United States is expected to grow from about $14 trillion today to $22 trillion. 50% of it will be in the hands of women.

As the customer, women shouldn’t have to settle for poorly conceived products and services that don’t meet their needs. They shouldn’t have to accept marketing narratives that promote female stereotypes, either. Yes, women are different from men, but they are also and different from each other. They have different needs. And if companies hope to succeed in the near future and beyond, they’ll need to make sure they can deliver what their female customers want.

Written by Lynn Truong and published on Wise Bread. Read more Small Business Resource Center articles from Wise Bread.

5 Reasons Fighter Brands Fail

Lynn Truong — Sun, 14 Feb 2010 17:08:25 +0000

Link:

http://www.openforum.com/idea-hub/topics/managing/article/5-reasons-fighter-bran...

Today’s economic landscape is harsh on the expensive, high-quality premium (or “luxury”) brands. With lower-priced alternatives readily available, companies selling premium products may find themselves losing customers or slashing prices (and profits). However, many companies are considering a third option: launching a fighter brand.

A fighter brand’s job is two-fold. It needs to provide fierce competition against low-price rival brands while protecting the sales of the company’s premium products. A successful fighter campaign may eliminate the competition and open a new, lower-end market for the company, but the consequences of a failed fighter brand can ruin its parent company. Mark Ritson’s article Should You Launch a Fighter Brand? (Harvard Business Review, October 2008) investigates five hazards most likely to knock out a fighter brand from the inside.

1. Friendly Fire

Companies launch fighter brands to attract consumers opting for lower-priced alternatives to their premium-priced offerings, but what happens when customers are buying a fighter brand instead of the parent company’s premium brand? In the mind of a consumer, if two products appear close enough alike (and produced by the same company, to boot!), it’s no surprise that they would choose the cheaper version. Thus, a fighter brand becomes the very problem it was created to combat.

How to avoid it: The key is perception. The parent company needs to ensure that their fighter brand’s low price is matched with equally low perceived quality. It must market the fighter brand as a lower-quality product in comparison to its premium sister brand, right from the start. Customers need to feel that the higher price of the premium brand is justified by its higher quality. Why would they pay more for a similar product?

2. Failure to Eliminate the Enemy

The most favorable result of a fighter brand campaign is the elimination of the enemy brand. However, the campaign cannot succeed in this if it’s weighed down by other considerations, like the protection of the premium brand. For example, the parent company may sacrifice the quality of the fighter brand to avoid losing premium customers. But if the product is clearly inferior even to the rival brand, consumers would choose the rival brand instead.

How to avoid it: The parent company has to be prepared to react quickly to customer response and recalibrate the price and performance of the fighter brand to ensure that it doesn’t jeopardize the premium brand or underperform against the rival brand. Overprotection of the premium brand would only make the fighter brand less effective against the enemy; the best way to protect the premium brand is to bury the competition.

3. Failure to Make a Profit

The price tag on a fighter brand needs to be competitive enough to keep customers away from rival brands, yet high enough so the parent company can to make a profit. One way to increase profit is to cut back on costs — but tread carefully! If a company tries to save on expenses and increase quality by using standardized parts and production lines, the end product may be indistinguishable from premium sister brands, resulting in friendly fire.

How to avoid it: Before launching a fighter brand (and during the campaign), the parent company needs to crunch the numbers and make sure it can match the price and value of the rival brand while attaining a sustainable level of profits. If the company is new to the low-end market, it may have to rethink what constitutes a strategic success and how to create a fighter brand that can achieve that success. Even if customers respond positively to a fighter brand and it sells well, the campaign has failed if it isn’t profitable, too.

4. Neglecting the Customers

This hazard may be especially hard for a fighter brand to overcome if only because its creation is in direct response to what the company has never focused on (thus allowing an enemy brand to meet previously unmet needs). The goal of a fighter brand campaign isn’t necessarily to develop a new, original product that is not already on the market though; the primary focus is to protect the premium brand by matching the rival brand. However, if all a fighter brand does is match the rival, the enemy brand — perhaps more innovative, more familiar with the low-tier market — can eventually outstrip the fighter brand if they have a better grasp of how to fulfill their customer’s needs.

How to avoid it: The parent company should turn their focus immediately to the new brand’s target consumers. Determine what potential customers want and develop a brand that would appeal to them. It isn’t enough to simply match the strengths of the rival; the fighter brand needs to surpass it. Performing market-tests can help the parent company figure out what their customers want.

5. Diverting Company Attention

A fighter brand becomes a liability when it distracts the parent company from its core business — the premium brand. The range of a fighter brand is fairly limited; it is mainly used to fend off low-priced rivals, but it can do little against other threats. Fighter brands can also leave premium brands more vulnerable by siphoning away vital funds and management attention and delaying important strategic decisions.

How to avoid it: The parent company needs to reinvest in the premium brand, making sure that its high price is justified by its quality. However, the company can’t neglect the fighter brand, either. If a fighter brand fails, it can drag the premium brand down with it. For both the premium and the fighter brands to succeed, the management attention allotted to each one must balance out to the benefit of both.

Written by Lynn Truong and published on Wise Bread. Read more Small Business Resource Center articles from Wise Bread.

Free and Cheap Stock Photos

Lynn Truong — Wed, 03 Feb 2010 17:00:03 +0000

Here at Wise Bread, we're constantly on the lookout for great, affordable images to go with our articles. And with a blog created like every second, many of you are in the need of some nice images to go with your blog posts, too!

I had been a loyal user of iStockphoto for a few years, but what used to be $1 per credit has turned into $1.52. Not only that, but the price of each image has gone up to 2 credits. That's a 300% price hike.

Then I discovered stockxpert, which was great. They were everything iStockphoto was. $1 per credit. 1 credit per image. And many of the images were exactly the same ones from iStockphoto. Except they're shutting down as of February 11! (All unused credits will be transferred to iStockphoto. I smell a buyout.)

So I began to look around for another source and happily discovered there are good alternatives.

Free

Flickr is a fan favorite, but the selection for the commercial use license is limited. However, we've used a ton of Flickr images here on Wise Bread, so it's not really that limited.

Stock.xchng is another popular one used by many bloggers. You do need to sign up for an account (this small barrier is the reason I haven't tried it).

Stockvault offers free stock photos, and you don't need to sign up for an account to download the images.

MorgueFile has a bunch of plainer looking stock photos, but completely decent and free.

Freedigitalphotos is another place to get free stock photos. Looks like a smaller selection than the others above, but hey, they're free.

$1 (or just a little more)

Dreamstime is a gem I just discovered. Credits start at $1.25 (for 8 credits) but quickly go down to $1 per credit if you buy 25.

At Fotolia, credits start at $1.14 per credit. It's a nice looking site that I'm eager to try out.

A little pricer

Can Stock Photo offers images for $2 a piece. They do have the lowest starting price for subscriptions. $35.95 per week to download 10 images per day.

Big Stock Photo offers credits starting at $3, but quickly go down with a few more credits -- it's $1.96 each if you buy 25 credits.

iStockphoto offers credits starting at $1.52 (with small discounts at larger packages). They recently raised most of their images to 2 credits. Additionally, they have quite a few photos that cost even more. I do have to say that I've never been disappointed at their selection quality.

Crestock is a nice looking site with lovely images. Their credits start at $4.50 (you need to buy 100 of them). Or buy images one at a time for $5.

Shutterstock rounds out my "pricey" list with $9.80 per image.

Going for Bulk

If you're looking to buy images in bulk, look for subscription options. I haven't listed them here because I don't know anyone who needs 25 images per day. But Photos.com has a really good subscription package ($100 for 1 month, 25 downloads per day). That's just $0.13 per image. (Getty Images is slightly cheaper at $0.11 per image, but you have to buy a year's subscription for $1,999 for 50 downloads per day).

Where do you get your stock images?

Written by Lynn Truong and published on Wise Bread. Read more articles from Wise Bread.