I have plenty of small business tips for the neophyte who is just starting out. Over my career I’ve probably started a dozen or so small businesses. Of course, not all of them have been successful, but I’ve learned a great deal about what to do and what to avoid. Probably the most important lesson that I’ve learned, though, is to not get too far ahead of yourself. There’s nothing wrong with thinking big, but every million dollar home run started with a lot of strikes and lucky singles.

The best small business tips come from careful planning. What do I mean by this? I don’t necessarily mean writing detailed business plans and complex spreadsheets, but really understanding the market you’re trying to address. How large is the market? Who are your competitors? Where can you find customers? I find it funny when people tell me of their next great idea and say that there’s no competition out there for their product. To me, that’s a bad sign. No competition could very well also mean nobody wants your product or service.

So, careful planning involves researching the viability and desirability of your product or service. The great news is that with the Internet, you’re able to dig pretty deep to find answers to your questions. For example, very few people realize the power that is at their fingertips with Google’s search engine and its advanced search options. In addition, Google has several tools that allow one to see “trends” and anticipate what people might be interested in. This tool is found at www.google.com/trends.

Other small business tips related to planning are creating proformas. A proforma is essentially a listing of all your sources of income and your expenses. This is where most small businesses fail. They (and I count myself in this category at times) put their rose colored glasses on and think that “all is good.” I’m going to sell TONS of this stuff and get rich. But, the devil is in the details. For example, how long will it be before you get paid? Do you have to extend credit or cash before you get paid? If you’re not paid for 30 days and you have to pay to get product immediately, you could have a cash flow problem.

A proforma does not have to be complex. In fact, the simpler, the better. As your company matures, it can get more sophisticated, of course, to keep up with the dynamics of your business. The most important small business tip here is to really look at and manage your expenses.

I was with a small startup company in the Valley that raised an astronomical $100 Million, while I was with them. Within a few years or so, the company had less than a tenth of that amount left. The reason? Virtually no sales, high payroll and expensive offices.

Whatever can go wrong, will go wrong! Have you ever heard of that phrase? My advice is to always have a contingency plan. If this product or service doesn’t fly, do I have enough cash to try another approach or how can I jettison a bad idea for another?

There are many more small business tips that I’ll share in the next article, especially as they relate to small business tools that will save you money.

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Web site advertising is the most efficient and cost effective option for small businesses these days. This is especially true for businesses who want exposure within their local market, city or county. Examples of local businesses include: real estate brokers, chiropractors, insurance agents and retail shops, to name a few.

There are a number of reasons why web site advertising is so effective. The most compelling reason is that the way people find businesses today has shifted dramatically over the last few years. It’s estimated that 70% or more of people now search for local businesses through online search engines, rather than the traditional methods.

Previously, people searched local listings in the newspaper and the yellow pages. These forms of discovery used to be very effective, especially since there really wasn’t much competition. However, the Internet and search engines such as Google, Bing and Yahoo have changed the game dramatically. These changes are not just about a local company listing, but also about the company’s listing in context to another company’s listing.

Here’s an example of context-related web site advertising for local businesses. Someone looking for a “Turkish restaurant in NYC” would likely key that phrase into one of the major search engines. Google might display 7 or more restaurant profiles matching those criteria. But, in addition to the restaurant profiles, there would likely be links to their websites, restaurant reviews, and perhaps even 3rd party websites offering discount coupons. This is an example of how the search engines provide substantially more value than a static “print” advertisement.

Website advertising for local businesses also has the distinct advantage of precise marketing analytics. Small, local businesses don’t have the luxury of wasting advertising dollars guessing which of their campaigns was successful. With website advertising, every click and ultimate purchase can be tracked right down to the exact wording that drove the customer to the company’s website. In addition, company’s can rotate ADs to determine which one motivates the most number of people to “click through.”

By now, many people have heard of the phrase “getting on the first page of Google.” Statistics suggest that 80% of people searching on the Internet do not go past the first page of search results. These results include both the “paid” advertising slots and the “free” or what is typically called “organic” slots / results.

Just as in the traditional advertising world (print, radio, TV), website advertising for local businesses requires a thoughtful approach to strategy. For example, in the old cable TV world, one might ask “How large of an audience will see my AD?” or “Can I target only three metro cities, instead of the whole county?” The same thought process is necessary for website advertising. The differences; however, are mind-boggling.

For example, with website advertising you can literally put an AD up “on demand.” No more back and forth negotiating or proofing / re-proofing with the cable company. You can precisely target your ADs to a county, city or even zip code. And, you can turn an AD on or off in seconds.

This is just a primer on why website advertising for local businesses is so compelling. There are a thousand more examples of the advertising power of this new channel. The $64,000 question is “Are you ready for the Internet?”

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New Years resolutions are always tough for people, including me, to decide on what resolutions to make. They’re even harder for many of us to keep. Part of the reason for this is that we tend to over reach on our resolutions. I think this year there are some simple things to which we can aspire that will make a positive impact on others and ourselves.

In general, the world just seems a whole lot tougher than it was even 10 years ago. We’re dealing with a global recession (hopefully not for much longer), several wars, joblessness and lots of bitterness. We seem to have forgotten the things that we learned while we were growing up; things like decency and respect.

New Years resolutions come in a lot of different flavors. Some people want to stop smoking, others look to lose weight and still some want to be more fiscally responsible. Good alternative New Years resolutions could be to help make our world a more pleasant place in which to live, even if it’s a simple act of politeness.

Barney and Friends (remember them?) use to sing the magic words “Please and Thank You.” Do you remember the last time you said “thank you” to the grocery clerk? Or, said “please” when asking for something at the store?

I’m as guilty as the next person. Sometimes in my hurried day I’ll run into the store and rush out with my item, without so much as saying “boo” to anyone. But, try it out one day and you’ll see the clerk’s face light up when you say “thank you.” In return, you’ll get a very pleasant “you’re welcome! And, “please come back.” This response will likely put a smile on your face, too.

New Years resolutions don’t have to be about lofty weight loss goals or better eating habits. In fact, I believe that these simple “Please and Thank You” words would help to “de-stress” our world. Less stress could lead to better eating habits and better eating habits … well, you get the picture.

And, what about the word “Yes?” Too often these days I hear people say “No” or “But” or “Can’t.” Times are tough for everyone. There are foreclosures on practically every block, unemployment is above 10% in many parts of the country, and we live in uncertain times.

And, “Yes” is surely a much more positive word than “No!” Try it out and see how it stimulates you to action. “Yes, I can have a more positive attitude.” “Yes, I can start my own business (see my post Small Business Opportunities.” “Yes, I can achieve my goals.”

Let’s make our New Years resolutions about making a difference for the better, even if it’s as simple as a smile or a “Thank you.” And, while you’re at it, say “Yes” to a new resolution to clean out the garage!”

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