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.

Do you think pursuing government contracts is beyond your small business’s reach? The federal government isn’t the only contracting opportunity out there. Contracting with local government agencies can be a lucrative way for small businesses to get into the contracting game.

How can entrepreneurs find out what types of products and services their local government agencies need?
You can contact the agencies directly, says SBDC Business Advisor Donald Stukes, but you can also perform market research to find out how much money the government spends on your product or service. This is an important step, because if the government doesn’t buy your product or service at a price point that allows you to make a profit, you shouldn’t pursue government contracting. “SBDCs are a great source of information regarding conducting market research,” says Stukes.

What factors should a small business owner consider in assessing whether they are ready to handle local government contracts?
Stukes advises asking yourself the following:

• How much time do I have to work on my business instead of in it?
• What resources do I have available to use for government contracting?
• Is my firm “scalable”?
• Do I have a solid marketing/business development plan?
• Do I have a solid business plan?
• Can I effectively execute my plans?
• Can I take advantage of teaming with other firms?
• Do I have at least three years of above-average and documented past performance?

Pursuing government contracts without assessing these factors is the biggest mistake most small businesses make, says Stukes.

How does the bidding process work?
When a government agency decides to contract out for a product or service, it will issue a Request For Proposal (RFP). Potential contractors review the RFP to see if they meet its requirements and if it fits with their business model. If you decide to respond to the RFP, you need to follow the instructions exactly. Keep in mind, Stukes says, that successful government contractors start the contracting process long before the bid.

How do you meet decision-makers in local government agencies?
“The more difficult part is determining who the decision-makers are,” says Stukes. “Many times the decision makers are a team that has a stake in the outcome of the contract award, and that team can change with each RFP [Request For Proposal] or process in the RFP.” For example, there might be one team that reviews RFPs and interviews potential contractors, but once they make their recommendations, another team will have to review those choices and make the final decision. “Once you identify who buys your products and services,” Stukes explains, “you can start to attend events that these agencies host for the purpose of meeting potential contractors.”

How does selling to a local government agency differ from a typical business-to-business sale?
“The typical business-to-business sale is based on your relationship with the buyer or decision-maker,” says Stukes. “Selling to local government agencies is based on dealing with multiple people and steps in the process.” Another key difference is the time frame. For example, Stukes says the average sales cycle to sell to Southern California Edison is four years.

In general, what criteria do local government agencies use when choosing vendors?
“The criteria vary with each RFP,” says Stukes. For commodity purchases, the decision is normally price-driven; for service purchases, the decision is normally driven by the best value.

Can small business certifications or the location of your business give you an edge over the competition?
“It depends,” says Stukes. “For example, if your office is located in the City of Los Angeles, most Los Angeles agencies will provide an incentive or advantage to L.A.-based small businesses.” Getting small business certifications may be helpful, too. “Certifications cover the federal government, state government and specific industries such as utilities,” says Stukes, who recommends contacting your local SBDC office for more information.

If you bid on a contract and don’t get it, what can you do to improve your chances the next time?
“Always request a debriefing whenever you don’t win a contract award,” advises Stukes. “Be respectful and absorb like a sponge.” The average business wins only one out of seven contracts, Stukes points out. Treat contracting like a marathon, not a sprint, and you’re far more likely to win the race.

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.com to get the scoop on business trends and sign up for free TrendCast reports.

Getting businesses to grow often means hiring the right people, upcoming class will help small business understand the best way to hire.  New classes coming “How to Hire Your First Employee”, “How to Hire the Best Person”

For full article click here

The fundraising initiative is off to a strong start with over $115,000 in pledges received during the reception, and another $100,000 shortly thereafter.  The $400,000 goal is definitely within reach!

Several business partners attended the event including Comerica Bank, California United Bank, HSBC Bank, Security Bank of California, Bank of America, Wells Fargo and The Private Bank of California.

PCR proudly used SBDC clients and friends to provide event services including caterer Ma Jasmin who served delicious hors d’oeuvres, Connie’s Catering provided signature Connie’s Cookies, Recoe Walker delighted guests as a very personable server, and photographer Ian Foxx captured the event’s special moments.

Funds successfully raised throughout the campaign will support PCR SBDC’s technical assistance programs including one-on-one counseling; and classroom training in the areas of business planning, accounting, record keeping, marketing, social media and business legal issues to name a few.

24/7 Business, Compliance and Sales Training

Looking for time to learn about managing your business better? PCR SBDC now has a solution for business owners who need flexibility to grow their company.  Online courses on employee development, health and safety, customer service and sales training are low cost options for gaining valuable skills.  Assistance with business planning is also available in conjunction with courses by the PCR SBDC business advisors.  For more information, please call PCR at 213-674-2696.

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.

The client came to the SBDC after talking with various banks and experiencing an exhausting process.  Ms. Densmore was referred to PCR SBDC; she began her work with Myron Perryman, PCR SBDC Business Advisor.  Mr. Perryman was able to assist the client with access to capital, in a high risk industry, during a difficult economic period.  The assistance consisted of helping the client generate cash flow projections, finalizing project costs and completion of a successful loan package.   The process resulted in funding two micro-loans to finance the new business.  These capital investments resulted in generating 14 new part and full time jobs, spurring growth in the local economy.

Lessons Learned
Business partners Betsy Densmore, Michael Babcock and Juvenal Alonzo discussed the importance of protecting assets and having the proper insurance coverage in a high risk industry. Also having focus and determination, they see how the old saying has true meaning –“Where there is a will there is a way.”

Future plans for the business include expanding to five locations in the Southern California market area and increasing brand recognition. Their next location goal will be in Huntington Beach in 2013 or the following year.

When asked about working with PCR SBDC, Partner Betsy Densmore said, “We talked to several banks prior to coming to PCR SBDC.  PCR was the first one listen, look beyond the numbers and find out about the principals.  They took an approach to see how the deal could be done”. Would they recommend SBDC services to other small business owners? “Absolutely!” replied Ms. Densmore.

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.

On his journey from migrant farm worker to the towers of corporate America, Roy has developed a passion for serving those that are often neglected. As a new member of the PCR Board of Directors, he will be able to indulge that passion as he helps PCR fulfill its mission of providing services “…to underserved small business persons and communities.”

PCR’s president Mark Robertson states that “Roy is not new to our organization. He has been a long-time supporter, confidant, and friend to PCR; and almost a defecto board member for over a decade. We are blessed to be able to formalize our relationship with Roy.”

Organic food has a reputation of being tasteless and boring but OM Snacks are changing that with products like PistachiOMs which are chocolate covered pistachios with toffee; CashOMs, which are covered with gourmet dark chocolate; and organic and vegetarian gummy bears called OMmie Bears.

They were recently approved for distribution at Whole Foods and should be on store shelves in the next few months. Their relationships with Shutters on the Beach and Le Merigot Hotels are growing as travelers look for healthier ways to eat.

Before launching the company in late 2010, the team spent several months researching the snack foods market. They spoke to many suppliers and manufacturers while sampling several types of snacks. They did consumer surveys, and met with potential clients to understand the variety (types and sizes) of products they would be interested in. After narrowing down the final selections they had to choose the best packaging, not realizing the enormous choices to consider. “It was like going to school again. It was an amazing time and an amazing learning experience,” said Jonathan Troen.

Realizing their dream to launch a sound business needed structure, the partners sought assistance to build a solid foundation. “PCR helped us through the process of creating the business plan. They helped us to focus our strategy on the most important things, as well as figure out our marketing efforts. When starting a business, sometimes it feels as if every idea is the most important, and all these great ideas are swirling around in your head. PCR showed us how to get all these ideas on paper in a focused and cohesive manner,” said Mr. Troen.

Larry brings to PCR a distinguished career as a bank regulator (11 years), an entrepreneur, a banker and a low income housing advocate. This is not to say that Mr. Reed is new to PCR. He has served on PCR’s loan committee for 10 years with the last six of those as committee chair.

PCR’s president Mark Robertson states that “with Larry’s schedule, we are blessed that he consented to serve as a board member.” Besides being a regular volunteer at the Challengers Boys and Girls Club in South Los Angeles, Larry serves on several other boards. In addition, he manages to keep up with the academic and sports life of his youngest son while the eldest is away at Northwestern University.

Robertson further states that “Larry’s breadth of experience and strategic thinking ability will bode well for PCR as we move towards the dual goals of serving while achieving self-sustainability.”