1. Ask for referrals. Many entrepreneurs fail to benefit from referrals because they’re simply too shy to ask. Most satisfied customers are happy to give you referrals–but they won’t think of it if you don’t ask them.
2. Know the right time to ask. Aim to gather referrals at the completion of a project or upon delivery of a product. The goal is to approach the customer when they are happy with the purchase and the transaction is still fresh in their minds.
3. Create a system. Set up a procedure for capturing referrals. This can vary depending on your industry. A business-to-business company might ask for referrals during a post-sale phone call or email. A retailer could enclose a card with each purchase that customers can fill out to refer a friend.
4. Offer a reward. Encourage customers to give referrals by offering incentives, such as a discount on their next purchase, a free month of service or a small gift. Making rewards contingent on whether the referral makes a purchase can encourage higher-quality referrals who are more likely to buy.
5. Build trust. Customers don’t want their friends bombarded with marketing messages. Make them comfortable providing referrals by explaining how you will use the contact information they provide. Will you send direct mail? Will you contact the person by phone?
6. Follow up in a timely fashion. If you let referrals languish for months, their value can fade as the relationship between your customer and the prospect changes or your customer becomes less enthusiastic about your business.  Set up a system to contact referrals within two weeks of obtaining them.
7. Mention the connection, but don’t rely on it. When you contact a referral, be sure to let them know who referred them to you. However, don’t assume that this connection alone will spur the prospect to buy. You need to put forth as much effort as you would with any sale.
8. Get to know them. Don’t give a “hard sell.” Lay the groundwork for a relationship by offering the referral something useful as an introduction to your business. This could be a whitepaper related to their industry, a free consultation, or a discount on their first purchase.
9. Provide great service. When you win business from a referral, always provide outstanding service to the new customer. Otherwise, you will make the referring customer look bad for having recommended you, and you might lose not only the new customer’s business, but the old one’s as well.
10. Repeat the cycle. Be sure to ask your new customer for a referral when the time is right—and watch your business grow exponentially!

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

The City of Long Beach Redevelopment Agency (RDA) and Long Beach City College (LBCC) will celebrate the opening of the LBCC Downtown Small Business Development Center at 10 am, Tuesday, December 13, at 309 Pine Avenue in Downtown Long Beach.

“The new Downtown Center will be an incredible opportunity for small business owners to connect with the great resources at Long Beach City College and our own city economic development programs and tax incentives,” said Mayor Bob Foster. “It’s a great move and I applaud LBCC for opening this center.”

The new Downtown Center, opening just north of 3rd and Pine, will offer small business owners with free training, business advising, access to capital, and advice from entrepreneurs and industry experts.  In addition, the Downtown Center will host the LBCC Small Business Development Center (SBDC), the Long Beach International Trade Office, and the 10,000 Small Business Goldman Sachs Program.  The City of Long Beach will also use the center to promote its economic development programs to small businesses.

“Small Businesses are the backbone of the American economy, and we are committed to providing resources and access to capital for these emerging enterprises,” said LBCC President Eloy Ortiz Oakley.  “Long Beach City College is invested in the future of economic development and our own local economy.”

The opening ceremony will include remarks from Mayor Bob Foster, President Eloy Ortiz Oakley, John Thomas, Chair of the Long Beach RDA, and a resource fair for small business owners.

The SBDC, a program of the Small Business Administration, has been hosted by Long Beach City College since 2006, and in that time has helped hundreds of area business owners increase their sales, obtain loans, streamline operations, utilize new technologies, expand into new markets, and position themselves for long-term growth.

One key objective of the (RDA) is to support the revitalization of commercial sites and to improve commercial corridors in the Downtown Redevelopment Project Area. To promote this objective, the RDA leased this once vacant property to Long Beach City College as a satellite for its regional Small Business Development Center program.  SBDC’s presence on Pine Ave will help activate space in the Downtown and provide convenient services to area businesses.

About the Long Beach City College SBDC
The SBDC hosted by Long Beach City College serves the Greater Long Beach area, including most of the Gateway Cities. Our experienced entrepreneurs provide workshops and one-on-one advising to fellow business owners at little or no cost. As your management advisors, we advise in areas such as finance, marketing, international trade, operations, social media, emerging technology and more.

About Long Beach Redevelopment Agency
Since 1961, the mission of the Long Beach Redevelopment Agency (RDA) has been to enhance the quality of life by improving blighted areas of Long Beach, revitalizing neighborhoods, promoting economic development, creating jobs, providing affordable housing and encouraging citizen participation. The RDA partners with business and the community to revitalize our project areas.  It is because of our partnerships with our citizen-led Project Area Committees, and small and large businesses working together that the Long Beach RDA is one of the leading Redevelopment Agencies in the state.
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1. Understand angels. Angels are private investors or groups of investors who invest in small businesses. Unlike venture capitalists, who invest and manage other people’s money, angels invest their own money.
2. Determine whether your business is a good fit. Angels often fund companies in the early stages, before they are ready to qualify for bank loans or venture capital, explains SBDC Business Advisor Nina Grooms-Lee.
3. Know how much capital you need. Angels typically fund anywhere from a few thousand dollars to $2 million, says SBDC Business Advisor Mike Grimshaw. If you need more than $2 million, angel investors may not be the right choice for you.
4. Be prepared to give up some ownership. Since angels generally provide funding in the form of convertible debt or in exchange for an ownership stake, Grooms-Lee says, you need to be comfortable with sacrificing some equity.
5. Demonstrate potential for return. Because they make risker investments than banks do, angels expect a higher rate of return. You must be able to show how your business will make money, how the angel/s will benefit and a clear exit strategy.
6. Pinpoint the right angels. Angels often focus on certain industries, so you can improve your chances of success by targeting angels that specialize in your type of business. Tech and biotech, medical services and appliances, green products and services and social media tools are all popular industries for angel investment right now, according to Grooms-Lee and Grimshaw.
7. Use all your resources. You never know where you’ll find an angel, so search both online and off. Grimshaw recommends visiting www.gust.com to find angel investor groups nationwide. Capital conferences, referrals from business contacts, and your nearest SBDC are good resources as well, says Grooms-Lee.
8. Show your management strengths. Unlike VCs, who may replace your management team, Grimshaw explains that angels often pick their investments based on a good management team already in place. Instill confidence in the angels by demonstrating your team’s expertise and credibility.
9. Be prepared with a strong package. When you make your presentation to the angel/s, be ready with a clear, concise pitch and a well-thought-out business plan. Also use the meeting as a chance to understand the angels’ approach and build rapport, says Grimshaw.
10. Be willing to listen and learn. In addition to capital, many angel investors provide resources, contacts and advice based on their industry experience. Don’t miss out on the advantages this valuable knowledge can provide.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

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1. Start now. “Now is the time to begin executing your plan to reach customers during the holiday season,” says SBDC Business Advisor Monica Rayes. “Most of the challenges [small businesses face] can be alleviated with a well-thought out marketing plan that connects with consumers.”
2. Use social media. Today, Rayes says, customers expect to be one click away from businesses at all times. Use social media to get close to your customers, alert them about holiday news and specials in your business, and learn what they want and need.
3. Use email. Timing and subject line are key. “Time your emails right and make them stand out,” says Rayes. “Identify the best days and times for emails to go out, and be proactive about generating quick responses.”
4. Use the Web. Even if you don’t sell products online, Internet marketing can expand your visibility to a wider audience. Use social media, search engine optimization and paid search advertising to attract customers seeking particular products.
5. Enhance the shopping experience. Price matters, yes, but emotion is still important for holiday shoppers, says Rayes. Use festive décor, music and scents to create a mood that makes customers linger (and spend more) in your store. Online, use images and marketing copy that put customers in a holiday mood.
6. Be part of the community. Participate in community events both before and during the holidays, Rayes advises. Get involved with charitable organizations and consider holding holiday events in your store.
7. Capture early shoppers. “Early shoppers like to plan ahead and take their time when making purchases,” says Rayes. Since these customers seek continuous engagement, Rayes suggests using mobile marketing, social networking and email marketing to promote customer loyalty programs, discounts and new product announcements.
8. Capture last-minute shoppers. The more you can simplify the gift-buying process for these shoppers, the better, says Rayes. Then, use email and social media to alert last-minute buyers of your simple, stress-free approach to shopping. “Offer ideas and recommendations, and provide a lenient return policy, free gift-wrapping or free delivery,” she adds.
9. Offer added value. Little extras mean a lot to harried consumers during the hectic shopping season. Offering holiday treats, free samples, gifts with purchase or free delivery are all great ways to reward customers and boost sales.
10. Plan for Black Friday, Small Business Saturday (www.smallbusinesssaturday.com) and Cyber Monday. These key shopping days, which fall just after Thanksgiving, are vitally important for retailers. Have a plan for how you will market your business to attract customers on each day and how you will ensure adequate staff and inventory to meet the demand.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

To get your creative juices flowing, let’s take a look at a few examples of how various organizations have approached this relatively new medium:

A small local publisher of children’s books, Megan Hearts, has been using Facebook since 2008. By using the Facebook “events” feature to announce book tour events with compelling pictures and dialogue, they have grown their fan base from just a few friends to more than 3,500. Recently, one particular event, promoted solely through Facebook, yielded sales of almost 200 books.

JetBlue uses “The JetBlue Experience” group on Facebook to create a conversation among flyers about the unique combination of value, service and style the airline offers. It uses this platform to announce plans for new areas of service and to receive candid feedback on its service. A forum for back-and-forth discussion such as this takes the suggestion box concept to another level, where each user can build on each other’s comments and hopefully get to the heart of the issue or idea.

MobWars, a mafia-style Facebook “application” (in this case, a game), allows players to build a mob, stockpile guns and vehicles, and “fight” other mobsters. If you have a hard time recruiting friends to your mob, you can earn “favor points” to buy mercenaries – you will just need to buy real-world products from MobWars sponsors (That’s advertising revenue to MobWars, with rumors suggesting upwards of $1 million per month.).

Accounting giant Ernst & Young has found, through its “Ernst & Young Careers” page, a unique way to connect with college graduates searching for employment. Through Facebook, Ernst & Young is able to engage these potential employees in a comfortable environment, discuss the values of the company, and provide direct interaction with hiring managers. The use of videos in particular offers a great inside look into a day in the life of an Ernst & Young employee.

There are a few keys to success with Facebook and other social media. First, it takes time and effort. Think of social media not so much as marketing, but as building relationships through conversation. Relationships take time – nurturing, building trust, and answering questions – and you get out of it what you put in. Because this relationship is online, you need to lighten up and show some personality to engage your audience in a dialogue that is important to them. Second, be a helper, not a salesperson. Generation Y and other social media users can smell a rat a mile away. Leave the salesperson mentality at home. Provide value first, then you and your brand will be valued and supported virally. Third, do what you say you are going to do. In social media, the single voice can boom loudly either in support or in rejection of your claims or actions. So, always follow through in order to build trust. Lastly, remember that Facebook and other social media outlets are great tools, but should be just one component of an integrated marketing plan.

For more information on using Facebook for your business, visit www.facebook.com or call the Long Beach Small Business Development Center (SBDC) at (562) 570-4574. The SBDC has knowledgeable social media advisors and has helped numerous clients in the greater Long Beach area sustain and grow.

Gourmet Purveyors International distributes healthy, gourmet snacks and beverages such as
nutrient-enhanced sodas and waters, energy bars and drinks, all-natural chips, and sugar-free
gum and mints. Founded in 2007, the company serves retailers in Los Angeles, Orange County,
San Fernando Valley and the Inland Empire. In late 2008, co-founders Richard Medina and Jon-
Paul Chevalier brought longtime friend Arthur Flores on to handle the administrative, accounting
and financial side of the business. One of Flores’ first moves as part of the company was to
visit the Pacific Coast Regional SBDC.

Best Advice:

“As a recent college grad, I didn’t have experience running a business,” Flores explains. “I knew
the textbook version of things, but I needed to know the street-smart version of things.”
Getting a loan for the business was Flores’ first priority. SBDC Business Advisor Nestor Correa
helped him prepare a business plan that included a marketing campaign and sales projections,
and connected him with potential lenders. Flores also took QuickBooks training classes.

Lessons Learned:

• Passion pays off. A young business without much cash flow, Gourmet Purveyors
was turned down by banks and credit unions. But Correa believed in them—
“I could tell these guys were going to work really hard to make the business
grow”— and PCR gave the company a $35,000 microloan. “Nestor saw our passion
and drive,” says Flores.
• Marketing matters. “The SBDC’s marketing consultant advised us how to organize
our sales better and get our Web site up and running,” says Flores. “We brainstormed
a lot of ideas.”
• Get a grip on financials. “From accounting classes, QuickBooks classes and consulting,
I learned how other companies handle their finances, and about Quick-
Books features that could help me,” says Flores.
• Work your connections. Through the SBDC, Flores forged relationships with the
SBA, a credit union and key vendors that helped raise Gourmet Purveyors’ profile.

After:

Using the $35,000 loan, Gourmet Purveyors hired employees and purchased more inventory
and equipment. Since Flores first visited the SBDC in April 2009, the company’s monthly sales
have quadrupled from $20,000 to over $80,000.

Flores sees even bigger things ahead. “The next step is getting more financing,” he says. With
bigger stores such as Gelson’s, Jon’s Market and Mother’s Market all poised to become clients
soon, the business will need additional trucks, employees and inventory. “I feel more confident
about getting a loan this time,” says Flores, “[thanks to] the connections we’ve made.”

Going forward, Flores says the SBDC will continue to be part of the company’s success plan.
“I feel like we’re part of a family at the SBDC.”

1. Join the club. Industry trade associations, niche organizations such as groups for minority or women business owners, groups your key clients belong to and your local chamber of commerce are all great places to make new contacts.
2. Set goals. Know what you are hoping to achieve from a particular organization. Do you want to meet prospective clients, potential partners, job candidates or suppliers? Setting goals will help you assess whether an organization is right for you.
3. Be prepared. In any situation where you’re meeting new people, bring an open mind and a friendly attitude. Also bring business cards and be ready to describe what your business does in simple terms (“We help small businesses save money by preparing their taxes”). Greet everyone with a smile, eye contact and a handshake.
4. Mingle. Never spend all your time at an event talking to one person or group. Think of several ways to politely end a conversation and move on. (But first, get contact information from those you’ve been talking to so you can follow up later).
5. Follow up. When you meet someone you’d like to get to know, follow up. Use social networking tools to link up on LinkedIn, become friends on Facebook or follow each other on Twitter, and you’ll also be exposed to the person’s network of contacts.
6. Take it offline. Connecting on social media is a good start, but to truly foster a business relationship, you need to spend time face-to-face. Suggest getting together for coffee or a meal to share more about your businesses and how you might work together.
7. Keep in touch. Business relationships are like flowers-without nurturing, they wither and die. Make it a point to regularly connect with your key relationships, whether it’s retweeting their tweets, mailing a card or meeting for lunch.
8. Harness technology. Contact management software can help you track information about your contacts so you don’t have to remember birthdays, children’s ages or hobbies. The software does it for you and sets up reminders for actions like emailing or sending birthday cards.
9. Be patient. Business relationships take time to pay off. It may take years of talking and planning with someone before you actually end up working together or seeing any results from one of their ideas, referrals or suggestions.
10. Aim to give, not just get. Of course, you want to benefit from business relationships-but that’s more likely to happen if you have a generous attitude. Focus on how you can help your contacts, and you’ll find that you get more than you give.

Rieva Lesonsky is founder and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com.to sign up for her free TrendCast reports.

1. Assess their needs. What do your employees need to learn-both for their current jobs, and to move up in your company? Equally important, what do they want to learn? Employees will be more motivated if they have a say in the training they receive.
2. Join the group. Industry associations and trade organizations offer a variety of training options, including conferences, seminars, certifications and more. Take advantage of these learning opportunities.
3. Cross-train. Have employees train each other in how to do their jobs. Not only will your staff learn new skills, but you’ll benefit by having backup when one employee is out sick or on vacation.
4. Go online. A simple online search will reveal a wide range of online webinars and training courses, many of them free or low-cost. This can be a great way for employees to learn at their own pace and when it’s convenient for their schedules.
5. Brown-bag it. Host weekly brown-bag lunches at your business where you or other employees talk about a topic of interest. For instance, the person who handles marketing at your business could explain how your company uses social media and how employees can participate.
6. Send them back to school. Community colleges and adult education programs offer lots of courses relevant to your employees, from how to use specific software to accounting and marketing classes.
7. Read all about it. Have everyone on staff read a business book on a topic that will help your business. At the end of the month, lead a lunch meeting where everyone discusses the book and what they learned from it.
8. Start a mentorship program. Having experienced employees mentor younger ones is not only a good way for novices to learn, but also a great way to ensure the knowledge and experience of older workers is passed on.
9. Spread the wealth. Can’t afford to send an entire department to a particular training program or conference? Choose one employee who’s a good presenter. Have that person attend the program, then come back and train the others in what he or she learned.
10. Visit the SBDC. Talk to your local SBDC’s Business Advisors to find out about training programs and solutions offered in your area.

Rieva Lesonsky is founder and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com.to sign up for her free TrendCast reports.

1. Get professional help. Maybe you can do your taxes yourself—but is it worth your time? By keeping up-to-date on tax law and knowing how to use it to your advantage, a good accountant saves you more than he or she costs.
2. Start early. Whether you use an accountant or do it yourself, don’t wait until April 10 to get started—give yourself plenty of time in case last-minute problems arise.
3. Get organized. Don’t show up at your accountant’s door with a shoebox full of receipts. Gathering the necessary documentation and organizing it ahead of time makes everyone’s job easier, saving time and money.
4. Go to the source. Visit the IRS Tax Season 2010 portal for tips and information on maximizing your tax credits. For changes to state tax laws, find your state Web site here.
5. Go ahead, deduct that home office. In the past, many entrepreneurs were afraid a home office deduction would spur an audit. But the IRS has relaxed eligibility rules for this deduction, and if you legitimately qualify, you can take it without fear.
6. Fund your retirement account. If you have a traditional or Roth IRA, there’s still time to lessen your taxable 2009 income by contributing to the account before April 15, 2010.
7. Don’t forget startup expenses. The costs of launching a business are considered capital expenses, and you can deduct up to $5,000 of them your first year in business—but not until your business is actually open.
8. Understand audit risk. The IRS is stepping up enforcement activity, and those who file a Schedule C are particularly at risk. That’s all the more reason to use a professional tax preparer.
9. File electronically. The IRS encourages small businesses to e-file. If you expect a refund, e-filing lets you get your money faster. And when you e-file, the IRS checks your return for completeness, minimizing your chance of errors.
10. Plan ahead. Proposed federal stimulus actions could mean many more tax breaks for small businesses in 2010. Talk to your accountant about what you can do now to lower next year’s tax bill.

Rieva Lesonsky is founder and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva on Twitter@Rieva and read more of her insights on SmallBizDaily.com.

1. Educate yourself. The federal government is vast, and every agency is different. Do your homework to understand each agency, its goals, and whether your business can help achieve those goals. You can find a list of agencies at USA.gov
2. Be realistic. Can your business handle the requirements involved in fulfilling a government contract? You’ll need to manage lots of paperwork, maintain certifications, institute quality control procedures and comply with regulations. Know what’s expected–and make sure you can deliver.
3. Be patient. The government sales cycle can last years. You need to find and get to know decision-makers, search for opportunities, submit proposals and wait for results and funding. If you need to make money now, contracting may not be the way to go.
4. Get registered. To begin, get a DUNS (Data Universal Number System) number from D&B. You need this to register with the Central Contractor Registration (CCR) system, which you must do in order to get contracts and obtain payment.
5. Get certified. When you register in CCR, you can self-certify your business as small, disadvantaged, or women-, minority- or veteran-owned. These certifications can give you an edge in competing for contracts, as most agencies “set aside” a certain percentage of spending for these kinds of businesses.
6. Learn the basics. The Federal Acquisition Regulation explains all the rules regulating government buyers and sellers. The General Services Administration is the biggest federal purchaser of goods and services. Being listed on the GSA Schedule opens your business to contracting opportunities.
7. Get experience. Don’t even think about government contracting unless your business has a track record of success. Past performance is key to landing a federal contract, so you must have a history of customers who will give you excellent references.
8. Market your business. Getting listed on a government schedule doesn’t guarantee sales. You still have to market to decision-makers. Use social media tools, networking organizations, and events like those sponsored by the SBDC to network with government buyers in person.
9. Think small. The federal government isn’t the only game in town. Contracts with local or state governments are a good way to learn the ropes. Visit Business.gov for information and resources on doing business with state governments.
10. Partner up. Subcontracting to a federal government prime contractor is another good way to break into government business even if you have limited capital, resources or experience. You can find prime contractors seeking subcontractors at the GSA website.

Rieva Lesonsky is founder CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com.to sign up for her free TrendCast reports.