Wyoming Entrepreneur Blog

Interesting Bedfellows . . . Credit Card Processing and Market Research

There are dozens of credit card processors available, but start-up Swipely’s selling point is helping merchants better understand their customers, i.e. data. In addition to the credit card number and amount, the company collects and analyzes data about each and every transaction, stripping out any personally identifying information and grouping the data into customer dashboards that track daily and weekly sales and show which card numbers bought what and when.  The system will even tell you how a particular rainy day affected your profits.  In addition, they synch with your merchant social accounts so you can see how campaigns on Facebook or reviews on Yelp affect your business.  The concept is to equip small businesses with marketing information and strategies to create loyal customers.  Combining credit card acceptance with analytics and marketing tools, allows merchants to essentially convert credit card acceptance fees into marketing investments. 

How much for your business to obtain all these additional analytics?  Swipely offers to match whatever you are currently paying for credit card processing.  The analytics, marketing tools, customer insights and loyalty reward programs incur no additional costs. 

Swipely software works with most POS systems, and processes most credit cards.  Information on each card swiped goes into a CRM customer database.  That data will show the business owner which card users are new versus repeat customers; which are top spenders and when they normally visit; and, for the 20% of customers who are willing to give merchants their name and email,  how to contact and reward top customers to keep them coming back.  In addition to processing credit card transactions, Swipely also provides information about daily performance, who is buying their products and how often they are buying, plus the businesses’ online reputation. 

The loyalty marketing tools, help small businesses sponsor programs similar to those sponsored by major national retailers.  To encourage wary customer to provide personal information to a relatively unknown service provider, Swipely provides merchants with a “marketing manager” that allows business owners to upload company customer email lists and send invitations to customers to join
the new loyalty program.  Traditional loyalty programs require significant effort on the part of the merchant to track purchases and reward customer when they reach specific goals.  Swipely eliminates that merchant effort by automatically tracking customer expenditures and automatically dispensing cash rewards billing the merchant for the rewards at the end of the month. 

Think about your small business having some of the marketing advantages of Amazon.com.  If your company grosses over $30,000 in credit card sales per month and tends to have frequent repeat customers and a healthy social network following, Swipely may be a good partner for your business. 

If you go this direction, let me know how it works out!

MOBILE CREDIT CARD PROCESSING FOR DUMMIES

Strange that someone who still possesses a "dumb phone" should be writing about processing credit cards on a mobile device!  But credit card acceptance is a necessity for all businesses today, from doctors to convenience stores.  And, having the ability to process a customer transaction on a mobile phone provides even micro businesses with critical credit card acceptance ability. 

Merchant service companies can now convert smartphones and tablets into mobile credit card acceptance portals with little effort or additional investment.  For mobile businesses or many home businesses, the ability to accept credit cards via a mobile phone saves time and makes money. Not only is this a very efficient way for your business to get paid, but it also saves your customers the time, money and effort involved in paying your invoice at the end of the month. Examples of the types of businesses for whom mobile credit card processing is an asset include hair stylists, landscapers, house and carpet cleaners, mobile food trucks, outside sales representatives, farmers’ market merchants, and many more.  This innovation has resulted in decreased exposure to credit card fraud, PCI non-compliance, charge backs and the added costs of “keyed” transaction fees.

 

After deciding what processor you want to use, you will be required to complete a merchant application.  Upon acceptance of the application, the business owner will be able to download the mobile app and secure log-in credentials allocated for the business’ depository bank account.  A card reader will plug into the audio jack of your mobile device to swipe customer cards, which will populate the mobile app with the cardholder information.  All the business has to do is swipe the customer’s card right on the smartphone, have the customer sign on the touchscreen, and then email the customer a copy of their receipt.  Your cell phone,accompanied by a mobile credit card processing service, will provide real-time validation and payment processing, low rates, online account management, and the ability to email or text receipts back to your customers. 

Businesses should carefully examine the fee structure of the processor. Typically, you will be charged set-up fees to start, monthly service fees, and transaction fees every time you process a credit card.  Transactions fees are typically composed of two elements, the base rate and the processing rate.  Note that one service may have a low per-transaction fee, but the authorization rate may be high.   

Most apps will work with any popular mobile phone.  Every major service uses SSL encryption to be sure that sensitive information is secure.  Individual apps are typically password protected and include additional safety measures in the event of theft or loss of the device.  Credit card information
is never actually stored on the phone. These payments are typically safer than other methods of credit card acceptance because the card never leaves the customer’s sight and there are no imprinted receipts containing customer credit card information.    

For reviews of mobile credit card processors, go to http://credit-card-processing-review.toptenreviews.com/mobile-credit-card-processing/

Marketing 101

Basically, marketing is reaching out to your customers.  Without customers, you have no business. Market research is what you need to make intelligent business decisions. If you’re just thinking about a business, market research can be the most important thing you do for yourself and the success of your business.  And then there are the entrepreneurs already in business that are eager to rush out and spend thousands of dollars on advertising without really knowing what their typical customer profile may be. But what is the BEST way to reach these people?   Should they advertise in the newspaper, or on the radio, or both, or neither?  What you really need is a strategy that will help you connect to your customers.  But just who are your customers? 

You probably have a good idea of who your main customers might be, but you may not know how many of those kinds of people are out there, which is your market size.  That is where market research comes in.  Is your market large enough to start a business? 

To find out how many potential customers we have, we can start with demographics.  We can get numbers for age groups, income, males and females.  Will they be younger folks, married with kids, moms, or grandparents? 

In addition to demographics, we can take a different angle and talk about psychographics.  Psychographics is digging deeper into the personal lifestyles of customers.  What kind of newspapers or magazines do they read?  What kind of radio stations or TV do they listen to?  What movies do they watch?  What kinds of entertainment do they enjoy?  Where do they go on vacation?  As you begin to gather this information, you can get a picture of what your main customers look like.  Then you can think about how to market to them.

The key to any business is connecting with customers. The challenge is knowing what people are thinking and how they will react to your products and services so this connection can be made.

Determine customer needs before trying to connect to them through expensive marketing strategies like radio or print ads.  Start with surveys or the tried and true method of asking them.  Once customer needs are identified, the business owner should focus on differentiating his/her product from similar products. Products and services must be able to give customers an obvious benefit.  In other words, “what’s in it for me?”  

Businesses should appeal to customers. A business should be unique, not only in the products and services provided, but also in the way the marketing strategy is approached. This may require changing the way the owner thinks about the business. Ask this question, “How can products be made so unique people will want to buy them?”  The answer will come through market research and planning.

5 Things I Wished I Knew 15 (or 30) Years Ago

A while back I noticed that I’m no longer the youngster in the room. Somehow, without my noticing, my hair has gone grey, I have a less than athletic shape, and sometimes I get called “sir”. Someone asked me what lessons I’ve learned over my career. I have been around for a number of years and am coming up on 30 years of experience in marketing, sales and management. In thinking about this question, I came across an article in “Innovation Daily” (www.innovationamerica.us) that really struck a chord with me and matches with my experiences. In it Jarred Cinman writes about “4 things I wish I’d known about business 15 years ago”. These are:

1. Medium is Beautiful. Having worked in large companies and small, I can tell you that innovation and drive seem to thrive more easily in smaller organizations. Mr. Cinman feels that the ideal size is 50 people or less because the systems and processes required are minimal and everyone knows each other, making it easier to keep a quality staff. I would concur and add the sense of “family” that a small organization can and should foster helps it survive tough times and prosper when the economy turns better. Smaller organizations are inherently more flexible and can shift direction much more easily than larger companies.

2. Great people are (really) hard to find. If you live in Wyoming, you probably feel this even more than folks in other parts of the country. We are one of the most rural states, have a small population, and therefore a small pool of candidates for any particular job. Cinman notes that many business owners don’t understand how hard it is to find great people. Most of us end up settling for someone with “potential” and hoping that we can turn them into someone who is “great”. My experience would indicate that this seldom happens. It is vital to work really hard at finding people who are great. After all, you will tend to spend more time with these people than you will with your husband or wife. Make sure that when you hire, you are spending the time and resources to find great people.

3. Service is a verb. Remember that service is an action. Drill into everyone in your organization that great customer service is not optional, but absolutely essential. If you have an employee that can’t empathize with your customers and clients, then you need to ask yourself whether or not they belong in your organization. Think about companies that are famous for service. My kids still talk about a Disney World trip where the maid left a Goofy doll in different positions each time we returned. EVERYONE in your organization should have customer service as their prime duty. In today’s social media world poor service shows up immediately….but so does great service. Which would you rather be known for?

4. Everything has a solution. Cinman notes that “There is no such thing as an unsolvable problem in business”. I would agree with this. Way back in my past, I was Director of International Marketing for a medium-sized company. With the easing of the cold war, I started getting inquiries about our products from Eastern Europe. My colleagues and my boss told me that there would never be a market for our products in such distressed areas. However, I worked closely with a number of start-ups, explained the concept of selling at a profit (unheard of in communist countries) and within several years we had offices in Moscow and Poland….and the second largest customer for our entire company behind WalMart was my distributor in Moscow. The big problems require hard work and perseverance, but in my experience most of them can be solved.

5. Have Fun. This last one is not in Mr. Cinman’s article, but is one that I believe in wholeheartedly. If you aren’t having fun, if you don’t enjoy what you are doing, then why are you spending the biggest part of the week doing it? Find a business that you love and you are always going to be the better for it. A challenge to those of you who are no longer “youngsters”.

What have you learned that you wished you knew 15 (or 30) years ago?

The Entrepreneur’s Curse

Many folks start a business because they’re tired of the 8 to 5, five days a week drag and the thought of being their own boss sounds perfect.  Now, goes the thinking, I can take time off for hunting and fishing, take that vacation to the Bahamas, or get to all of my kid’s school functions. 

Unfortunately, the reality, especially during the first several years, is pretty much the opposite. You’ve run into what some call “The Entrepreneur’s Curse”.  Peter Gasca, writing in Inc. Magazine talks about starting his own business this way: “Like any new business, it consumed every minute of spare time and every ounce of energy I had. When I actually took a few hours off, for example on a weekend to indulge in a simple college football game, the enthusiasm and pleasure of doing so were always dampened by the heavy guilt I felt for not working at the business. If we were slow enough to take time off, should I not be focused on trying to get more business?” 

Sound familiar?  Nearly every entrepreneur would find this to be something that strikes pretty close to home.  Mr. Gasca came up with 5 ways to avoid the “curse”.  These are: 

1)      Find a Partner.  I know, you’re the original loaner and you want to build your business your way.  However, a trustworthy partner can go a long way to splitting the load, and maybe even help you find time for that football game or even a vacation.

2)      Hire Better People.  Look for people who are smart, trustworthy and passionate.  In other words…look for you.  Don’t skimp on the quality of your personnel, because better people make for a better business that runs smoother.

3)      Learn to Delegate.  This is really tough for many entrepreneurs.  After all, YOU are the expert on your company and no one can do it better right?  Well, maybe.    It’s important for the growth of children and employees that you let them have the opportunity to delight you.  Gasca says “Understand your strengths and the priorities of the business and trust the rest to your team.”

4)      Find Your Happy Place.  Carve out time and space for you to recharge.  This can be a few minutes in your car listening to music, an evening at the movies, or riding your horse.  It is vital that you make time to reset your brain, even if it only is for a few minutes.

5)      Do What You Love.  Most entrepreneurs start their business because they have a passion for some part of it.  You can quickly lose the joy you felt when the parts of the business that don’t make you smile continually intrude.  With me, it would be the accounting and reporting part.  If you find yourself getting frustrated, remember why you started the business and spend some time doing what you love.  If some part of your business really irritates or confounds you, then see if you can find someone to handle it.  After all there are lots of folks who love bookkeeping (or marketing or…..). 

Follow these tips and chances are you can avoid the “Entrepreneur’s Curse”.  You, your business, your employees and your customers will all benefit!

Do you have ways of coping with the Entrepreneur’s Curse?  Please share them below.

The American Invent Act, First to File, and Provisional Applications

This blog continues the discussion from last week about patents.

The America Invents Act, First to File, and Provisional Applications

Karen Kitchens, Intellectual Property/Documents Librarian, Wyoming State Library, [email protected]

President George Washington signed the first U. S. patent statute in 1790.  Since that time, United States patent law has uthorized the granting of rights to the first to invent a patentable
invention, contingent upon meeting rigorous terms and conditions.  This means that the date the inventor envisioned the invention is the “date of invention” – thus the date of ownership.  Generally, this date preceded the date of filing with the United States Patent and Trademark Office (USPTO).  Soon, this will no longer be the case.

As of March 16, 2013, one of the most debated provisions of the America Invents Act (AIA) will take
effect.  As of this date, the “first-to-invent” system will change to the “first-inventor-to-file” system.  This provision changes the legal ownership of a patent onto the entity that is the first to file with the USPTO, thus bringing the U.S. system closer in line with most of the rest of the world.  The new version of § 102 (35 U.S.C. § 102) declares that a person is entitled to a patent unless the claimed invention was publicly disclosed prior to the effective filing date of the patent application. The exception to this being, (1) the disclosure was made less than one year before the filing of the patent
application (by the inventor themselves) and (2) the disclosure was made by the inventor or someone who derived the inventive subject matter from the inventor. 

Once this provision takes effect, filing patent applications as quickly as possible may
be in the best interest of the inventor.  In order to stay competitive, inventors of all sizes (including small business owners) will need to file patent applications quickly in order to stay ahead of competitors.  Filing a provisional patent application may be one way to quickly get a patent
application on file at the USPTO.  A provisional application allows filing without a formal patent claim, oath or declaration, or any information disclosure (prior art) statement. It provides the means to establish an early effective filing date in a later filed non-provisional patent application.  A provisional application also allows the term “Patent Pending” to be applied in connection with the description of the invention.  Provisional applications have a pendency lasting 12 months from the date the provisional application is filed.  The 12 month pendency period cannot be extended.  This means, once a provisional is filed, you will have 12 months to file a non-provisional.  A provisional patent application may or may not be the path for you.  Provisional patent applications do not mature into a granted patent without further submission.  All provisional applications automatically become abandoned when the pendency period expires by operation of law.  Thus, all potential patent applicants are encouraged to gather as much information as possible on this option.  The USPTO website is the foremost information source on provisional patent applications. 

For further updates on AIA, check out the USPTO AIA Blog. 

A Blog version of this article and an opportunity to post comments is available at http://www.wyomingentrepreneur.typepad.com/blog/.

 For more information about the services of Wyoming SBDC, MRC or PTAC, or to ask a question, please call 1-800-348-5194, e-mail [email protected] or write 1000 East University Avenue, Department 3922, Laramie, WY 82071-3922. Additional help is available on our website www.wyomingentrepreneur.biz.

 

The Wyoming SBDC, MRC and PTAC partnership
program is funded in part through a cooperative agreement with the U.S. Small
Business Administration. Additional support is provided by the Wyoming Business Council and the University of Wyoming.

America Invents Act and Fast Track Patent Examination

WYOMING BUSINESS TIPS

A weekly look at business questions from the Wyoming Small Business Development Center (SBDC), Wyoming Market Research Center (MRC) and the Wyoming Procurement Technical Assistance Center
(PTAC), a partnership of business assistance programs at the University of Wyoming.

Can you tell me more about the changes happening with patent applications?  Anne, Cheyenne.

I checked with Karen Kitchens, an intellectual property librarian to give us an update.  This week and next she is providing us some input into changes in the patent process.

Anya Petersen-Frey, MBA

Regional Director SE Wyoming

 The America Invents Act and Fast Track Patent Examination

Karen Kitchens, Intellectual Property/Documents Librarian, Wyoming State Library, [email protected]

 Fast tracking your U.S. patent application may be the right move for your small business.  Using traditional filing avenues, you can anticipate an average wait time of nearly three years until your patent’s final determination.  Such a long wait period may negatively affect the valuation of your business, as you do not have any incontrovertible rights while a patent application is pending.   Remember, the rights granted to patent holders include the rights to exclude others from making, using and selling your invention. These rights do not take effect until after the United States Patent and Trademark Office (USPTO) completes its examination of the patent application.

As of September 26, 2011, the USPTO began offering a Track I Prioritized Examination Program, as part of the America Invents Act (AIA).  This program gives inventors an opportunity to have their patent application reviewed within a reduced timeframe, for a fee.  To participate in the Track I
program, the applicant must pay an additional fee to the USPTO on the same day the patent application is electronically filed.  For patent applications that have already been filed, the Track I fee must be paid upon or after the filing of a request for continued examination, but before the USPTO issues a first office action. For companies with less than 500 employees (considered a small entity), the Track I fee is $2,400.  This is a 50 percent discount on the $4800 fee for the fast track option. 

The AIA also created a new applicant status called micro-entity.  To qualify as a micro entity, an applicant must:

• 
  Qualifyas a small entity;
• 
  Have not been named as an inventor on more than 4 previously filed patent applications;
• 
  Did not, in the calendar year preceding the calendar year in which the applicable
  fee is paid, have a gross income exceeding 3 times the median household income;
  and
• 
  Have not assigned, granted, or conveyed (and is not under obligation to do so) a
  license or other ownership interest in the application concerned to an entity
  that, in the calendar year preceding the calendar year in which the applicable
  fee is paid, had a gross income exceeding 3 times the median household income.

A micro-entity is entitled to receive a 75% discount on fees for filing, searching, examining, issuing, appealing, and maintaining patent applications and patents.  The micro entity 75% discount will apply to fees for filing, searching, examining, issuing, appealing, and maintaining patent applications and patents.  Micro entity fees were included in the FY2013 fee schedule proposed in May 2012, the first fee setting by the USPTO under the authority granted by the AIA.  However, these fees might not actually be implemented until as late as March 2013.   A 17-month implementation timeline is located on the USPTO website here. 

Patent ownership is a critical factor that some venture capital companies consider when investing in entrepreneurs and small businesses who hope to grow their businesses. Therefore, prioritized patent examination may be a good investment for your small business.  

A Blog version of this article and an opportunity to post comments is available at http://www.wyomingentrepreneur.typepad.com/blog/.

 For more information about the services of Wyoming SBDC, MRC or PTAC, or to ask a question, please call 1-800-348-5194, e-mail [email protected] or write 1000 East University Avenue,
Department 3922, Laramie, WY 82071-3922. Additional help is available on our
website www.wyomingentrepreneur.biz.

 The Wyoming SBDC, MRC and PTAC partnership program is funded in part through a cooperative agreement with the U.S. Small Business Administration. Additional support is provided by the Wyoming Business Council and the University of Wyoming.

Averting the "Fiscal Cliff"?

Congress Approved Eleventh-Hour Agreement with the American Taxpayer Relief Act 2012! 

Yesterday, January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012, averting the "Fiscal Cliff."  The Act allows the Bush-era tax rates to sunset after 2012 for individuals with income over $400,000 and families with incomes over $450,000; permanently "patches" the alternative minimum tax (AMT); revives many now-expired tax extenders, including the research tax credit and the American Opportunity Tax Credit; and provides for a maximum estate tax of 40 percent with a $5 million exclusion.  In addition to an extension for most taxpayers of the lower individual income and capital gains tax rates, marriage penalty relief, and more than 50 other tax benefits popularly referred to as the "Bush Tax Cuts," the legislation makes over 100 changes to the Internal Revenue Code.

Highlights of The American Taxpayer Relief Act of 2012 include:

• 39.6% tax rate for incomes above $400,000 ($450,000 families)
• All other Bush-Era Tax Rates extended
• 20% Maximum Capital Gains/Dividend Tax Rate
• Permanent AMT Patch
• Five-Year Extension of American Opportunity Tax Credit
• One-Year Extension of Business Tax Extenders
• And more!

According to Commerce Clearing House (CCH, a Wolters Kluwer business)

The next battle will be over the debt ceiling: Lawmakers will have to turn to discussing how to deal with the nation's $16.4 trillion debt ceiling next, which will need to be raised as early as mid-February to prevent a default.  And, according to House Speaker John Boehner, R-Ohio,"Without meaningful reform of entitlements, real spending controls, and a fairer, cleaner tax code, our debt will continue to grow, and our economy will continue to stumble."

What is your thoughts on deficit reduction and tax simplification?

Customer Retention The Old Fashioned Way – Using New Fangled Tools

One of the things I hear for business clients frequently is that they don’t understand how customers think today.  Actually times haven’t changed that much, but there are new tools that make keeping your customers happy actually work more like things did in my great grandfather’s time.  Back then you purchased from the retailer down the street.  You knew him and he knew you and your family.  There was a relationship, and with that relationship came flexibility.  The old “mom and pop” stores often ran tabs, gave discounts and remembered what their customers liked.   Then came the age of mass marketing where consumers were numbers and entries on a balance sheet, and the personal approach was lost.

 

What’s happening today is a return to the times when merchants and customers had personal relationships.   The difference is that technology has opened a window to enable these relationships to occur between people who are located a great distances from each other.   Karl Wirth, writing on the Marketing Profs website talks about the “7 P’s of Customer Retention”.  These are:

 

1.  People.   To retain customers you need to build a relationship with your customer as a person, not just a customer.  Start by hiring people who show they care about others.  Many companies now have a “chief customer officer” to ensure that the entire company maintains a people focus.
2. Product.   Without the right product, you won’t really be able to accomplish any of the “P’s”.  Make sure that your product provides value quickly, retains value over time and is of high quality.  Commodity items don’t generally have loyal customers, so make sure your product is special.
3. Place.  Location matters when you are locating a physical store, but if you are an online retailer, place still matters.  Your site needs to be easy to find, easy to navigate, and friendly to the customer.  What goes for “bricks and mortar” goes for online merchants as well.
4. Price.  If you have a relationship with your customer as a person, then you take care of each other.   The new expectation is that customers expect retailers to look after them.  This can be by providing deals for returning customers or by adding services or features without charging more.  Turn your employees loose and they will help you find ways to maintain this relationship.
5. Promotion.  You should promote to existing customers differently than you do to potential customers.  Why?  Because you should know them.  Target promotions to your customers based on their likes and needs.
6. Processes.  This is where the new technology comes in.  Where the old corner store owner new his customer by chatting with them when they came in, today’s businesses should use social media, customer surveys and other tools to engage and understand their customers.
7. Positioning.  Wirth says “If you want to retain your customers, you have to know who you are and communicate that clearly and repeatedly to them so they know who you are as well. Foremost, however, is this: Your actions must communicate your positioning. Those actions are showcased in the people you hire, the product you ship or service you deliver, the price you charge and the discounts you provide, the place and promotions you choose, and the processes you put in place.  Combined, your words and actions say "This is who we are and what you can expect of us."”
   
   

Bottom line: If you want to succeed with today’s customers, put on your great grandpa’s store apron, and adopt his attitude of treating his customers like friends and neighbors, rather than number and profit centers.  I think you’ll find your customers respond.  

What are you doing to retain customers in today's world?

 

The Economic Census – Vital Data for Business

During November and December over 4 million US business and around 11 thousand Wyoming businesses will receive 2012 Economic Census forms from the U.S. Census Bureau.    This means that while many businesses will take part in the Census, not all will be asked to participate.

If your business receives a form, you will be asked for basic operating data for your business, data that is tailored to your specific industry and company size.  Information includes number of employees, payroll and value of goods or services produced in 2012.  You will be able to respond either in paper or online.  Responses are due no later than February 12, 2013.  It is important to note that all information is confidential and your compliance is required by law.

The Census is the basis for the economic indicators that are used every day in the US, like the Gross Domestic Product, monthly retail sales and producer price index.  The statistics from the Economic Census are used by businesses, local governments and investors to make smart decisions. 

Without the Economic Census and the data it provides about our US economy, businesses and governments of all sizes would be working in the dark in trying to solve the numerous challenges that our country and economy faces in the years to come.  Filling out the Economic Census form is not only a legal requirement, it’s a smart investment in growing our local, state and national economy.

If you’d like to see the type of information that the Census provides, you can go online to www.census.gov/econ/census/.  This site gives more in-depth information about what the Census is and why it is so important for all Americans.  It also gives you a look at the type of economic statistics that come out of the Census, with ideas on how you can use them in your business or community.

The Economic Census isn’t new, in fact the concept dates back to the 1810 Census, when questions were asked about manufacturing along with questions about population.  The Economic Census provides detailed statistics that are important for industries and communities.  Trade associations, chambers of commerce, and businesses rely on this information for economic development, business decisions, and strategic planning.

As the manager of the Wyoming Market Research Center, every single day I use information that is based on the Economic Census to help Wyoming businesses find out about their industry, their community and their markets.   Accurate and believable data from the Census is vital to creating sensible business plans, loan applications and for simply running day-to-day business.