With the recession digging deep into the pockets of families throughout the United States, many individuals have begun researching the possibility of starting a home based business. The idea is made even more attractive because individuals can continue to work their normal job during the day, [...]]]>

Accept credit cards using your home or cell phone

With the recession digging deep into the pockets of families throughout the United States, many individuals have begun researching the possibility of starting a home based business. The idea is made even more attractive because individuals can continue to work their normal job during the day, while investing time in their home business in the evening hours.

With any home based business, the ability to accept credit card payments is very important. I am providing information regarding some of the most popular credit card processing options to help you decide which system is best for you and your budget.

Wireless credit card machines (sometimes referred to as a handheld credit card machine)

If you are involved in a business that moves from location to location, i.e., a landscaper, limousine driver, flea market vendor, crafter, carpet cleaner, or promoting your product at tradeshows, a wireless credit card machine may be the solution for you.

Similar to a cell phone, a wireless credit card machine provides you with the ability to accept credit cards even when no phone line or Internet connection is available.

Two of the most popular wireless terminals made by Nurit™ (the fourth largest POS terminal manufacturer in the world) are the Nurit 8000 and Nurit 3010. Both models are small enough to hold in your hand, yet known for their flexibility, reliability and secure transactions. Merchant Services offer a free Nurit 8000 wireless terminal to new retail customers!

Dialpay

Dialpay is a service that allows merchants to process credit cards using any telephone or cell phone. This is a unique mobile credit card processing solution that allows merchants to obtain credit card approvals and authorization numbers by dialing a toll free number. This solution is very economical and good for small businesses with a low volume of sales. It also works well for mobile businesses that need to obtain credit card approvals on the spot.

Online Merchant Accounts (sometimes referred to as internet merchant accounts)

When setting up an online business, it is necessary to obtain a merchant account as well as a gateway to process online payments. A gateway is used to transfer payment information securely between your eCommerce website and your processing bank. Merchant Services uses the most prominent and reliable gateway service in the industry, Authorize.net.

No matter which system works best for you, it is clear that the ability to accept credit cards is no longer an option for any business, large or small. Accepting credit cards allows your customers the flexibility they are accustom to in today’s culture and without that option, you will find your sales to be limited.

The Recovery Act recently passed by the Obama Administration contains key provisions geared towards assisting small business by increasing the amount of SBA loan guarantees to 90%, waiving application fees, and offering various tax breaks. What does the Recovery Act mean for you as a current [...]]]>

Is the time right to start a new business?

The Recovery Act recently passed by the Obama Administration contains key provisions geared towards assisting small business by increasing the amount of SBA loan guarantees to 90%, waiving application fees, and offering various tax breaks. What does the Recovery Act mean for you as a current small business owner or someone considering opening a new retail business?

The topic of the new small business incentives and its effect on the economy received mixed reviews recently at the Small Business Ideas Forum. Some business owners believed that the incentives would spur growth and development, while others believed the strategy was geared towards long-term economic growth and would be of little help to the average business person struggling financially right now. Most everyone took a “we’ll see” attitude and were obviously wary of taking on any more debt, including SBA guaranteed loans, given the present economy.

Kim Taylor of KimiWeb, a web design and graphics company, wondered if now was the time to take advantage of the new small business incentives to upgrade business equipment and software. She documented her experience as she walked through the application process on her My2Cents blog. Kim’s conclusion:

“In reality, if you are attempting to finance the purchase of real estate or launch a new business in a low income or rural area… maybe. If you are looking for assistance in troubling economic times… probably not.”

While the Recovery Act may not be a godsend for current business owners looking for financial assistance – especially those whose credit scores have been injured in the recession, it may help those persons looking to purchase retail property or start/develop businesses in low income or rural areas.

If you are an entrepreneur looking to start, expand or purchase a small business, now may be a good time for you to look closer at an SBA loan. The SBA has raised its guarantee and eliminated the fees for borrowers on certain of its 7(a) loans. 7(a) loans are issued by a bank to a small business to support its operations. While the incentives were included to motivate banks to increase small business lending, be aware that little has been done to accommodate small business owners who have less than good credit.

In addition to new 7(a) loan incentives, for a limited time the SBA has also eliminated fees for borrowers and third party lenders on its 504 Certified Development Company Loans. These loans are geared towards the growing small business and tout fixed-rate financing for MAJOR fixed assets, such as land and building purchases, and capital machinery and equipment. These loans focus on community development, creating new jobs and implementing modern technologies.

In 2008, of the $18 billion in SBA backed loans, 35% went to start-up businesses, nearly 32% ($5.7 billion) went to minority owned businesses, and nearly 23% went to women owned businesses. The most frequently financed industries in 2008 were services, retail trade, accommodation/ food service, construction firms, and manufacturing.

SBA-backed loans are three to five times more likely to be made to minority and women owned businesses than conventional small business loans made by banks, according to a recent study by the Urban Institute.

It is obvious that the recession is effecting everyone from large retail business to the small home-based business. While businesses that sell goods that are perceived as “extras” have seen their profits drop, many businesses – especially those centered around marketing and promotion – [...]]]>

Will the heat cause your business to grow or wither away?

It is obvious that the recession is effecting everyone from large retail business to the small home-based business. While businesses that sell goods that are perceived as “extras” have seen their profits drop, many businesses – especially those centered around marketing and promotion – have actually seen an increase in business since the first of the year.

At the Small Business Ideas Forum, the thread Your Business and the Recession reflects an optimism that hasn’t been around for awhile. Small business owners in marketing and web design services ARE seeing their profits grow again, even if it is taking awhile.

Some reasons for the uphill swing in marketing sales have been contributed to:

1. People who have been laid off or seen their income flow dwindle are now trying to go into business for themselves.

2. The hope instilled by the election of President Obama.

3. New Years adrenaline.

4. Clients determined to revitalize and rejuvenate their dwindling businesses by pouring into their websites and marketing again.

5. Personal effort on the part of marketers that are pursuing new opportunities as the down economy generates more need for their services.

6. Many companies that were operating in the red when the recession hit have since closed their doors. As new businesses spring up, the need for marketing increases as well.

It appears that no matter what type of business you are in, attitude means everything. Businesses that are sitting back waiting for things “to turn around” may end up out of business. Will things ever “be the same” again? Not likely. Not with years of debt on the backs of Americans and a new administration trying to get their feet under them. Not while millions of Americans are going through foreclosure and bankruptcy and will not have their credit restored for years to come.

However, businesses that look for creative ways to tap into the new market spurred by the poor economy, and business owners who are willing to invest in the marketing of their business, stand a much better chance at success. Businesses that invest in their companies now in spite of the hard times show their customers that their business is still alive and will be around when the dust settles. This may require branching out into new directions, including new services, or focusing on certain areas of a business that have not been developed to their full potential. Now is the time!

One thing is for sure. The American attitude as a whole is the one thing that can positively affect our economy and cause it to grow again. The individual business owner’s attitude is the one thing that will determine whether his business fails or succeeds. Are you giving into fear or looking for creative opportunities?

Any consumer in the United States can request a  “chargeback” –  a reversal of a charge to their credit card account after discovering a fraudulent or improper charge to the account. U.S. credit card holders and debit card users are guaranteed this right under several acts/laws including: Federal Reserve Regulation Z, Truth [...]]]>

Tired of chargebacks?

Any consumer in the United States can request a  “chargeback” –  a reversal of a charge to their credit card account after discovering a fraudulent or improper charge to the account. U.S. credit card holders and debit card users are guaranteed this right under several acts/laws including: Federal Reserve Regulation Z, Truth in Lending Act, Federal Reserve Regulation E and the Electronic Funds Transfer Act. The laws are enforced by credit card company’s rules and regulations.

The chargeback procedure begins with the filing of a “dispute” by a consumer with their bank or credit/debit card company. The bank that issued the credit/debit card will then charge the disputed amount back from the merchant and give the consumer a provisional credit. Next an investigation will begin in an attempt to determine if the dispute is valid and also to recover the chargeback amount from the merchant. A merchant is held responsible for the chargeback unless they can prove that the transaction was legitimate, and is also responsible for any processing fees incurred by the bank.

Sounds fair, but what happens in the case where a consumer’s dispute is not valid and is denied by the bank? Not only does the merchant lose the time involved in proving the charge was valid, but many times the merchant is still held responsible for the processing fees as well.

So what can a merchant do to help prevent chargebacks?

1. When signing up for a merchant account, make sure that your DBA is the prominent company name that you want people to recognize. This helps to avoid confusion when a consumer’s credit card statement arrives and they do not recognize your company’s name. If for some reason this is not possible, make sure that you add a note to your company’s receipts.

2. If operating an online store, always use an Address Verification System (AVS) and Creditcard Validation System (CVV). This will greatly diminish if not stop fraudulent transactions.

3. If you notice that a charge has been declined several times, do not process the order.

4. When possible, take the customer’s card and examine it to verify the expiration date and compare the signature on the card to the signature on the receipt.

5. Settle your transactions in a timely fashion to avoid consumer’s seeing a charge on their statement that cleared long after the purchase was actually made.

Preventing scope creep may save you hundreds, even thousands of dollars

As the recession digs deeper and deeper into the pockets of small business owners, many have begun to question whether they should raise prices for their products and services to help cover losses, [...]]]> Does time become more valuable in a recession?
Sometimes change begins at home

Preventing scope creep may save you hundreds, even thousands of dollars

As the recession digs deeper and deeper into the pockets of small business owners, many have begun to question whether they should raise prices for their products and services to help cover losses, or reduce prices in attempt to attract more business.

A recent thread at the Small Business Ideas Forum [ Recession Survival Strategies ] shows how heavily the question is weighing on the minds of small business owners.

While there is no clear-cut answer to whether your pricing structure should change (since the economy is effecting individual industries differently), before passing losses onto your clients you may want to take a closer look at your business practices first.  Ask yourself,  “How much time am I giving away”, and put measures in place to begin investing that time in new clients, new ideas, and possibly a second venture.

Mitch Thrower, author of  ”The Attention Deficit Workplace” states: “If you’re wasting your time or your attention, then start investing it wisely.”

Now is a great time to take stock and re-evaluate what you are doing with your time… your most valuable asset!

For some people that may mean sacrificing t.v. time to start a second business venture from home that can be developed and grown in the evenings. It is easier then ever to start an online business. There is a plethora of software available that is geared towards people who are not necessarily “computer savvy”. Time will definitely need to be spent promoting the online business, however, and that’s where the t.v. time comes in.

For others, especially those in project oriented and service related industries, you may be able to recover some of your losses by simply doing a check-up to determine whether you have fallen victim to “scope creep”.

Scope creep (also known as “kitchen sink syndrom”) refers to projects wherein the scope of the project grows in increments due to lack of planning, definition, and straying from the original purpose of the project. Giving away 15 minutes here and ½ hour there adds up!

Projects and tasks that have “drifted” or become overly time consuming can result in business losses. If you have problems with projects overrunning their allotted time frames, or consistently being drawn “off target”, then your business can definitely benefit from taking stock of those areas and putting measures in place to avoid creep.

Keep the creep away by:

1.  Honoring your budget. Do the best job you can within the budget you and your client have agreed upon. If you simply cannot stop yourself from giving away extra services or extra time, then raise your prices and market yourself as someone who does provide those extras.

2. Take great care when defining the scope of a project. Spell out, in writing, that any changes to the scope of the project WILL result in additional charges and potentially a delay in the completion date. Then, stick to your guns!

3. Use a timeline with “landmarks” to make sure you are staying on task and not overspending your time.

4. Work on your communication skills. Make sure that, as much as possible, you and your clients are on the same page.

To quote M. Scott Peck,  “Until you value yourself you will not value your time. Until you value your time, you will not do anything with it.”

About the author:

Perry Silverberg is the owner of cardpay.net and a registered agent of Money Tree Merchant Services. With years of experience in the merchant account industry, Mr. Silverberg enjoys helping others succeed in their business ventures, as well as providing one-stop payments solutions including credit card machines, merchant accounts, and credit card processing software.