Start Your Own Business (37 page)
Read Start Your Own Business Online
Authors: Inc The Staff of Entrepreneur Media
AHA!If you believe your future business could contribute to community development or empower a group of economically disadvantaged people, visit your state economic development office to find out what types of community development grants may be available.
Register
(Palgrave Macmillan), which lists more than 4,200 grants.
(Palgrave Macmillan), which lists more than 4,200 grants.
There are other places to look, of course. The most logical place to get an infusion of cash is from Uncle Sam, but you can also win grants from foundations and even some corporations.
Even in the most economically challenged of times, the government is one of the best sources for grants. For instance, the National Institute of Standards and Technology’s Advanced Technology Program offers grants to co-fund “high-risk, high-payoff projects” in order to provide Americans with a higher standard of living. Whatever the project is, you can bet it will be scrutinized by a board of qualified experts and academia.
The Small Business Innovation Research (SBIR) Program is another government program that gives grants. The SBIR Program specializes in small businesses looking for funding for high-risk technologies. Founded in 1982, the SBIR recently awarded funds for research in advanced metals and chemicals, biotechnology, information technology and manufacturing. So if you’re planning on opening a pizzeria, you might have trouble with this one.
e-FYICheck out
grants.gov
, the website that lists all the federal government’s grant programs. You can find opportunities in categories ranging from arts and humanities to science and technology.
But there are federal grants awarded to food and nutrition companies. For instance, a pizzeria that caters to children and specializes in serving nutritious, healthy pizzas may be able to win a grant. You can also check with your state or local government—start with your local or state chamber of commerce.
Of course, finding the grant is the easy part; the hard part is getting the grant. It’s a lot like applying to college. You have to jump through the hoops of each organization, which usually involves writing an extensive essay on why you need the money. There are grant-writing businesses out there as well as grant brokers—people who try to find the right grant for you. You pay them regardless of whether they find you a grant; on the other hand, if they land you a $750,000 grant, you still pay them the flat fee, which is generally from $25 to $100 an hour, depending on their level of success. But if you don’t have the funds to pay for a grant-writer or a broker, and you’re a decent writer and have a passion for your business, then start researching, and fill out the forms and compose the essay yourself. There’s no rule that says you can’t try to get a grant on your own. And who knows—you might be successful!
GET SET ...You have a great idea, a perfect plan,
and the money to make it all happen. What’s the next step? Get set for business with Part 4, “Prepare.” First, we’ll show you how to get what you want out of every deal, with negotiating tips that will put you in the driver’s seat in any situation. Learn how to select a prime location that will get customers to come in and come back. We’ll show you retail operating options, such as kiosks and carts, plus how to negotiate the lease you want. Or maybe your plan is to start your business from home. If so, you’ll learn the steps to setting up a home office. Whether it’s at home or away, once you’ve found the right site, we share secrets for giving your business a professional image with furniture, business cards and stationery that all spell success. Next, stock your shelves with inventory: You’ll learn how to choose, track and maintain your product supply and discover the best sources for getting what you need.Once you have the inventory, you have to sell it. That’s why in the next section, we discuss the most important part of business ownership—getting paid. We’ll reveal how to give your customers credit without getting taken, plus tips for accepting credit cards, debit cards and checks and collecting on slow-paying accounts. Since every business needs to use the mail, you won’t want to miss our guide to setting up mailing systems. Discover how to choose the right equipment as well as the most efficient, convenient and economical ways to send mail.If employees are part of your game plan, you’ll find all the information you need to hire smart. Learn the secrets of a good job interview, low-cost hiring options, and the laws you must know to stay out of hot water. Finally, protect the business you’ve worked so hard to start by checking out our chapter on insurance. We show you the basic insurance no business owner should be without, plus how to put together the perfect insurance package for your needs.Now, get geared up for business! Part 5, “Buy,” takes you step by step through setting up your office. Office machines are more affordable than ever these days, so it’s simple to get set up on a budget; we’ll show you the options, from superstores and mail order to leasing and more.Today’s technology can boost your business productivity like never before. Whether you’re in the office, at home or on the road, we’ll explain the hardware and software tools you need to make the most out of every working moment. We’ll show you how to set up your business’s website, including choosing a web designer and ISP, getting set for e-commerce and more. And finally, we’ll give you the latest on how smartphones, VoIP, instant messaging and more can keep you connected 24/7.
part 4
PREPARE
chapter 16
WHAT’S YOUR DEAL?
Negotiating Successfully
By Cliff Ennico, an author, business consultant and former host of the PBS TV series
Money Hunt
I
f you’re in business, you’re a negotiator. You have no choice. Business doesn’t happen unless two or more people enter into a transaction. This can be as simple as buying inventory or as complicated as a merger of two public companies. Without transactions, business doesn’t happen, and every transaction involves a certain amount of negotiation.
f you’re in business, you’re a negotiator. You have no choice. Business doesn’t happen unless two or more people enter into a transaction. This can be as simple as buying inventory or as complicated as a merger of two public companies. Without transactions, business doesn’t happen, and every transaction involves a certain amount of negotiation.
If I had to pick one of the scariest challenges facing every first-time entrepreneur, it would be learning how to negotiate. Nobody (except perhaps a lawyer) likes to negotiate—it’s confrontational, it involves a certain amount of “play acting,” and it may put you in the position of thinking you’re “putting something over” on another human being. In a big company, you had the luxury of hiring people to do this for you. Not anymore.
When you’re in business, negotiating the best possible deals is a high, if not the highest, priority. As a business owner, you can’t know enough about negotiating.
“I don’t know the key
to success, but the
key to failure is trying
to please everybody.”—BILL COSBY
It’s a lot easier to describe what negotiation “isn’t” than what it is. Let’s get some things straight upfront. Negotiation is not:
• a search for truth, justice and the American way
• a friendly discussion at the corner Starbucks
• a quest for the perfect solution to a business problem
Make no mistake: Negotiation is a game. Whether sellers have paid good money for something or are emotionally attached to it, they’ll want to get the most money they can from its sale. Buyers are worried about losing money and want to pay as little as possible for something so the chances of making a profit on resale are as high as possible. Somewhere between these two goals, there’s a deal waiting to happen.
The goal in negotiating is to win—to get the best deal you can. Period.
Preparing for NegotiationTo get ready for any negotiation, you must do three things:
1.
Know your bargaining position
. In every negotiation, someone is in a stronger position and someone is in a weaker position. Where are you?Let’s say you’re looking to lease 1,000 square feet of retail space in a shopping center. The landlord is a large commercial real estate developer with 2 million square feet of space in five major shopping malls in your town. How flexible do you think this landlord will be in the negotiation? Not very. One thousand square feet is a drop in the bucket to this landlord, so you’ll be the one making all the concessions.NEVER LET ’EM SEE YOU SWEATA
re you serious about wanting to be a better negotiator? Then learn to play poker. A good poker player is almost always a good negotiator. Consider the lessons poker teaches you:• Use a “poker face” to conceal your emotions from the other side.• It isn’t so much the hand you’re dealt, as what the other players think you’ve got. If you get a great hand and show too much enthusiasm, the other players will fold early and leave you with a small pot, but if the other players think you have only a mediocre hand, they’ll stay in the game and leave a lot more money on the table.• Likewise, if you truly have a mediocre hand, by making the other players think you’ve got something better, they’ll yield to their insecurity and fold early. This leaves you with money you wouldn’t have gotten if you’d shown your cards too soon.Bluffing and posturing are part of the game of negotiation. If you master these techniques early, you stand a much better chance of winning negotiations on a regular basis.Now, let’s say you’re looking to lease 1,000 square feet of retail space in a strip mall. The landlord is a local widow whose husband died several years ago. The strip mall is the only property she owns, the 1,000 square feet is the largest tenant space in the mall, and it’s been vacant for the last six months. Who’s in the stronger position now?You—and you’re crazy if you don’t take advantage of it. (See “The Golden Rule” on page 243.)
2.
Know how the other side perceives its position
. It isn’t enough to know what your real bargaining position is. You also have to consider how each side perceives its position. As any poker player knows, sometimes a mediocre hand can be a winning hand if it’s played properly. If the person with the mediocre hand can convince the other players that he or she has a much better hand than he or she actually has, and the other players (with better hands) buy into that, they’re likely to fold early to cut their losses, leaving the pot to the bluffer.If your negotiating position isn’t great but you see the other side is worried about losing the deal, you can’t go wrong by coming on strong and playing to the other side’s fears.TIPSometimes silence is the best weapon. By quietly pondering for several moments what the other side has just said, you raise their anxiety about your willingness to do the deal. Your body language should send the signal that you have all the time in the world and don’t need the deal. Just don’t do this too often; you’ll appear indecisive.
3.
Assess your bargaining style
. Are you aggressive or passive by nature? I hate to say it, but in 25 years of studying lawyers, I’ve found that those who are naturally aggressive, fearless and downright ornery tend to make the best negotiators. People are afraid of them, want to avoid their nasty behaviors and give them what they want. To truly succeed at negotiating, it helps if you can find your inner Rottweiler. Remember, it’s a game.I’m not saying you should yell, scream or threaten violence during a negotiation (although some negotiators use these techniques to great effect). You can be pleasant and communicate your willingness to get the deal done as quickly and efficiently as possible. Just make sure the other side doesn’t misinterpret your nice behavior as a sign of weakness, or you’ll lose the negotiation.
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