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Small Business Connections June 2011 |
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Welcome to Small Business Connections!
The Illinois Small Business Development Center at Waubonsee Community College is here to serve your small business needs. We offer free business counseling to entrepreneurs and business owners, as well as a variety of small business workshops.
Call us today at (630) 906-4143 to learn how we can help you start or grow your business. |
| Small Business Spotlight |
Simonetti Studio s
Sherry Simonetti describes herself as a boutique photographer and a storyteller. If you browse her web site, you can easily see why. Simonetti Studio's updated style, pricing and service are what initially bring clients in. The experience and relationship Sherry develops, brings them back.
After apprenticing with a Master Photographer and running her own studio out of her home for four years, Sherry decided the time was right to move into a store front studio. She worked with the City of Batavia and rented the space formerly occupied by the Batavia Main Street organization. Under her agreement with the city, Sherry originally planned to move out after a year in the space.
After her first year, Sherry's high school senior portrait business was growing rapidly, as was her other portrait clientele. Because her business is seasonal, she felt that she needed more time in the same location to solidify her senior portrait business, further develop her year round clientele, and stabilize her cash flow before she moved to a new location.
The city referred Sherry to the IL SBDC at Waubonsee to update her business plan and create a financial forecast that they could review to evaluate her request to extend the lease. Working with the SBDC, Sherry prepared a packet of materials for the city, and was approved for the extension. Sherry now feels she has the breathing room she needs to make her business a success.
Sherry commented on the assistance she received: "Working with IL Small Business Development Center helped me get a handle on my growth. With Harriet Parker's knowledge and guidance I feel that I have a strong business plan which is allowing me to establish a solid infrastructure from which I can achieve long term stability and growth. In addition, Harriet's assistance was instrumental in my lease negotiations with the city."
Sherry is a big hit with her clients, especially her teen clients. She makes liberal use of social media and texting to make sure she is connecting with students. Referrals from one student to another are her best marketing resource.
Simonetti Studios is located at 2 E. Wilson St. in Batavia. For more information, visit www.simonettistudios.com or call or text Sherry at 630-202-8931.
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| IL SBDC News and Events |
The Entrepreneurship Connection: The Breakthrough!
The IL SBDC at WCC will be breaking in the NEW Aurora campus with our next Entrepreneurship Connection event where we will be announcing news about the status of planning for the Fox Valley Entrepreneurship Center (FVEC). Seeds for the FVEC concept were sown and germinated by the many participants at the 2010 Entrepreneurship Connection events. You will have a chance to see how your ideas are taking shape, as well as provide input! View the event flyer.
Waubonsee Community College NEW Aurora Campus, Room 160AC Thursday, June 16th, 8 - 11 a.m. |
| Biz Buzz | |
Pricing Tips - How To Charge For What You Sell
One of the most common questions asked by SBDC clients (after "How do I get money?") is "What should I charge for my product or service?" There are many factors that influence pricing, but you should start by answering three basic questions:
1. What are your competitors charging for similar products (services)?
Take into account how your product compares in quality, convenience, service, and other value added characteristics.
2. What do you need to charge to make a profit?
This requires knowing your costs - both variable and fixed. For example, if you are selling jewelry online, you need to know what it costs to purchase from the manufacturer, or to purchase the materials to make the product (variable costs.) Your fixed costs might include internet hosting, e-commerce fees, and marketing costs. Selling an item for $10 that costs $5 may or may not be profitable depending on sales volume and overhead costs.
3. What are customers willing to pay for your product (service)?
This requires you to know and understand your customers. Demographic information will tell you things like income levels, age, gender, etc. But just as important are the psychographics that include buying habits, likes and dislikes, and other behavioral aspects. And don't forget the best way to get customer data - talk to them!
Finally, beware of the common pricing pitfall of being the lowest price provider. Why?
Customer psychology - customers perceive that the lowest price means the lowest quality product, no matter how much you do to convince them otherwise.
Customer quality - the cheapest provider typically attracts the most needy customers. You may eat up profits dealing with returns, complaints, and demands for additional services.
Scalability - If you are a new business, you may have lower overhead, leading to the rationale that you can charge less. However, if your business is successful, you will want to grow. Growth requires additional expenses for increases in space, equipment, employees or inventory. If your price structure is too low, it won't support growth.
For help determining the best pricing for your business, call the IL SBDC at Waubonsee at (630) 906-4143.
For more tips on pricing, read this article on pricing strategies, or watch this excellent video on 9 best practices for pricing. (patience, this take a little while to load).
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Biz Bitz | |
Money, Money, Money
Money is always foremost on entrepreneurial minds. SBDC clients want to know how to find it, how to save it, and how to manage it.
Let's start with finding money. Crowd-funding sites such as IndieGoGo, ProFounder, and Kickstarter are becoming more and more popular, to the point that the SEC is taking notice and reviewing rules. Check out this article on crowd-funding in WSJ.
For something a little more mainstream, look into Microloans. The IL SBDC at Waubonsee works with Accion Chicago, a great source of smaller dollar financing for both start-ups and established small businesses.
Beyond financing, here are some more money tips:
51 Ways to Reward Employees without Money
5 Common Start-up Money Mistakes
How to Waste Money | |
Call the IL SBDC at Waubonsee for answers to all you money questions, from financing to forecasting. |
| Get Smart: Small Business Workshops at Waubonsee | |
The Entrepreneurship Connection: The Breakthrough!
Thursday, June 16, 8 - 11 a.m., $10 (NEW Aurora)
Starting Your Business in Illinois
Thursday, June 9, 6 - 9 p.m., $30 (NEW Aurora)
Wednesday, June 29, 6 - 9 p.m., $30 (Plano)
Tuesday, July 12, 6 - 9 p.m., $30 (NEW Aurora)
Is Franchising Right for You?
Wednesday, July 27, 6:30 - 8:30 p.m., $30 (NEW Aurora)
Marketing for Small Business
Tuesday, June 14, 6 - 9 p.m., $30 (NEW Aurora)
Social Media Marketing for Business
Thursday, July 21, 6 - 8:30 p.m., $30 (NEW Aurora)
Google for Small Business- Back by Popular Demand!
Thursday, June 23, 6 - 9 p.m., $30 (NEW Aurora)
Check seminar details for the full list, class descriptions, locations, ticket numbers, and pricing. To sign up, complete and submit the registration form. For additional information call the Illinois SBDC office at (630) 906-4143.
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A variety of QuickBooks and Excel classes are available to meet your small business accounting needs. Click here for complete class descriptions, locations, dates, times and costs. |
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Illinois SBDC at Waubonsee Community College
Funded in part through a cooperative agreement with the U.S. Small Business Administration and Department of Commerce and Economic Opportunity. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA or DCEO.
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