This issue of HomeBizBytes answers the question...
What is the "big shakedown" and how will it affect your
small, home-based business?
Hint: Bigger than a breadbox.
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--- Welcome To ---
H o me B i z B y t e s
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July 31, 2002
Library of Congress - ISSN #1530-8790
* See end for contact, submission and subscriber information.
_____ IN THIS ISSUE ________________________
- Dave's and Heidi's Ramblings
...Did you take the challenge?
...Want a FREE ad in HomeBizBytes?
- Reminders
...$1000 Prizes at forums
- 2-Liners For Our Fellow Home-based Entrepreneurs
- Dave and Heidi Were Recently Asked
...Dave's and Heidi's honest opinions
- Featured Article
The Big Shakedown
...It's coming, and it WILL affect you more than you
think.
- Kind Things You Have Said... Thanks!
- Contact, Submission and Subscriber Info
-----
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_____ DAVE'S AND HEIDI'S RAMBLINGS _________
A warm welcome from Heidi and Dave to our new subscribers.
Friends and Readers of HomeBizBytes,
--> Dave and I gave you the challenge last week to take a day
off (or simply a morning or afternoon) to do nothing but have
some pure fun. Now the big question... "Did you take the
challenge?" We're serious about this, you know. Your business
will thank you, really!
--> Some of you may have noticed that in the resource box at
the end of each issue's featured article there is a URL that
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We've been watching this over time and have found the results
fascinating!
Well, we'd like to reward you for using our articles and for
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_____ REMINDER _____________________________
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_____ DAVE AND HEIDI WERE RECENTLY ASKED ___
Getting to know us over time, you can't help but realize that
Dave and I are straight shooters. We tell it like we see it -
the good and the bad. When a product is good, we tell you.
When it isn't worth your money, we tell you to keep your money
in your wallet.
One question that keeps surfacing from our subscribers is "If
you could only purchase one online membership, which would it
be?" Well, we've avoided this question as there are a handful
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Since the question keeps coming up, we felt it deserved an
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See you there!
_____ FEATURED ARTICLE _____________________
The Big Shakedown
1934 marks the year Bette Davis and Charles Farrell starred in
the movie "The Big Shakedown." In this movie, a pharmacist,
wanting to make big money, compromises his principles to
manufacture drugs for the underworld. His infuriated pregnant
wife finds out, loses trust, and decides she can no longer live
in her husband's new world.
Today, you and I are part of a real, live shakedown similar to
the one in this old movie.
Don't believe it?
Okay, here's the plot:
- Two nice companies named Enron and WorldCom go into business.
- Times get tough and compromises are made.
- The truth surfaces.
- An infuriated public won't stand for the deceit.
- They begin to look elsewhere for business they can trust.
Okay, I've melted this down to something quite simplistic.
However, there is more to this plot which culminates on a very
significant day - August 14th. That day marks the deadline
when the largest U.S. companies (947 of them) are required to
send in a sworn affidavit to the Securities Exchange Commission
(SEC) confirming that their "reported numbers" are accurate.
See how the plot thickens? This could become a major
shakedown.
You can view the updated list as the 947 companies comply at
this URL: http://www.sec.gov/rules/extra/ceocfo.htm
"No problem," you say, "My small business' name is not on the
list, so I have nothing to worry about."
Oh, but I assure you, this isn't a time to be smug. This will
affect your small business, indeed. The effects will be both
positive and negative.
How?
With the shakedown of the large corporations, there is a major
trust factor at stake. This trust factor extends far beyond
the Enron's and WorldCom's. It extends to your small business.
Your own customers and prospects are going to be much more
leery of doing business with you or anyone else. They will be
watching for signs.
Yes, you will be scrutinized.
So, I'm going to drop a bomb on you and ask, "What are you
doing to gain their trust?"
I recently read an interesting book by J.L. Scott of I-Cop.org
that claims we need more professionalism on the internet, that
if we sell anything on the internet, no matter how small, we're
in business and should behave as business professionals. He
claims that professionalism breads trust. Hmmm. Yes. So how
can we be more professional and earn our customers' trust?
Dave and I recently scrutinized our own website and business
procedures and realized that while we were succeeding in some
areas, we were failing in others.
Here are some ideas we brainstormed:
1) Do you have clear, easy-to-find contact information? Have
you included your name? No, not your business name - YOUR
personal name? Knowing there is a real person behind the
company who is responsible will help build trust.
2) Do you respond quickly to questions and inquiries? If a
question comes by email, you must answer it immediately, even
if you don't have the answer at the moment. Reply with
something like, "Thank you for your inquiry. I expect to have
the best answer for you within such-and-such time."
3) Do you have 404 pages or outdated pages on your website?
4) Do you provide testimonials and glowing letters of
endorsement? Post them on your website and at the bottom of
your emails, in brochures and other communication.
5) Do you offer a strong guarantee? When you reverse the risk
of buying from you, you make it easy for your prospects to say
"yes" to your products and services.
As I mentioned, we're as guilty as any on many of these points.
Nevertheless, this has been a good exercise for us. Perhaps
it's time to make the changes necessary to become more
professional in our small businesses, to scrutinize our own
businesses, to become more worthy of our customers' trust.
Certainly, others will be scrutinizing us. However, people are
not only looking for reasons to distrust you, remember, they're
also looking for reasons to do business with you.
Will you be the one they trust?
Let the shakedown begin!
------
About the Authors:
Successful entrepreneurs Heidi and Dave Perry are founders of
HomeBusinessOnline.com and PrettyGreat.com. Receive free
issues of their popular HomeBizBytes newsletter:
http://www.HomeBusinessOnline.com/nsl.htm?hbb
-----
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_____KIND THINGS YOU HAVE SAID______________
Note from Heidi: Can't say I've ever been called "way cool,"
but I think I like it...
Karen's kind words:
"Wow, I had been getting your ezine for 3 or 4 months, then
bought the book,"The Women's Home-based Business Book of
answers" and lo and behold, Heidi is in there! I haven't
finished it yet, but it is a great book and I love reading
it. I didn't know as much about your business before I read
the book, but now am very impressed..and homeschooling your
children too? Way cool!"
Hearthside Mom
http://www.angelfire.com/ct/hearthsidemom
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