Using Online Payment Services

Online payment services allow business and consumers to exchange money electronically over the Internet. With an online payment service, your business can receive payment from virtually any customer with an email account.
     Advantages: Online payment services can either replace or supplement your decision to accept credit and debit cards. Opening an online payment account is often faster and easier than setting up a Merchant Account (which is required to accept credit and debit card payments). Online payment accounts typically incur smaller fees than a traditional Merchant Account, which can have a big impact on businesses with many small transactions. From a customer-service perspective, it's beneficial to have multiple payment options available. Online payment services are also quite user-friendly and can simplify the payment process by storing customer card information or billing customers at a later date.
     Disadvantages:   As with all payment methods, online payment services have their drawbacks. Most of these services redirect customers to a payment service website to complete a transaction. Being forced to leave your business's website can be confusing for customers - especially those new to online shopping - and could make them abandon a purchase they may have otherwise made.  Your business may not get enough value out of offering both an online payment service and accepting card payments. On the other hand, limited payment options may turn some customers away. Finding the right balance of payment options is something that is unique for every business.
     There are also security concerns.  Major providers of online payment services (for example, PayPal or Bill Me Later) have developed features like two-factor authentication to help businesses enhance e-commerce security. Two-factor authentication requires businesses to enter a six-digit code in addition to their password, making third-party scams rare. As e-commerce becomes more popular, security features will continue to evolve. Be sure to research service provider plans for the most current security technology.
     For the most part, online payment services require a “virtual shopping cart” which allows businesses to accept orders on multiple products from their website. A shopping cart can calculate the total, tax, and shipping costs of an order, in addition to collecting customer account and shipping information.
Some online payment service providers offer free shopping cart services to businesses. If your online payment service does not provide a free, secure shopping cart option, third-party shopping cart services can be used.  I will suggest a couple of the more popular options for example as follows.
     PayPal is an online service that enables businesses to accept payments from any customer with an email address and credit card or checking account. PayPal is a popular option for businesses with many small transactions and businesses that do not directly process card payments.
     When a customer decides to make a purchase on your business's website via PayPal, they simply click the button that will redirect them to the PayPal website. New PayPal customers will complete a one-time, free registration to receive an account number. 
Bill Me Later is an online payment service that allows consumers to "buy now, pay later." Customers are billed for the purchase after several weeks and can then choose to pay either online or through the mail.  When a customer decides to make a purchase using a "Bill Me Later" option, they are prompted for their birth date and the last four digits of their Social Security number. With this information, the customer is quickly approved or denied through a credit check. If approved, the transaction is completed through a process similar to a credit card transaction. 
     Planning and managing your business strategies can be complex.  If you need help with this or other aspects of your business, contact:

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JWB Interest, LLC  2012 All Rights Reserve

Make Your Home Office Professional

Any special advice on how to do this "professionally"?

     The "Golden Rule" –treat others as you would want them to treat you – is a must for small businesses. You want to provide the highest quality service and responsiveness because that’s what you expect when you buy a product or service.
     The largely casual setting of a home office is no exception. Even if you work out of a spare bedroom and wear shorts while you work, you want clients to perceive you as a first-class operation. That means making sure you have the resources and approach to your business as good as your competitors in that shiny office downtown.
Here are some ways to make your home office as professional as possible:
     Get connected. Make sure your computer has the processing speed and capacity to meet your business needs. You cannot be efficient or provide fast answers if your system is slow and constantly crashing. The same goes for your Internet access. Faster modems and phone lines may cost a little more, but the added expense will be more than offset by the time saved waiting for web pages and long documents to download.
     Open the lines of communication. Consider having three separate phone lines – home, office and fax. Also install voice mail. Clients should never experience the frustration of getting a busy signal when trying to reach you or send a fax. If you receive another call while speaking on the business line, the caller can still leave a message. If you have call waiting, make sure you disable it if you expect the call to be lengthy. That persistent double click will be disrupting to you, the person you’re speaking with, and the third party trying to reach you.
     Create a "real" office. Set up your home office professionally. Make it quite, comfortable and organized. Place what you use most close to you. Use bright colors or dark colors, face away from the window or toward the window – in short, whatever works best for you and helps you to concentrate.
     Send it in style. Design your company’s letterhead either yourself or with the assistance of a professional designer. Use it for all business correspondence. It may be worthwhile to rent a Post Office Box for your incoming mail. Home street addresses don’t always convey the look of a professional organization.
     Stay informed. Keep on top of all the latest trends in your business, as well as in your client’s fields. Join your trade association and subscribe to all the key magazines that cover your industry. These resources offer advice and information as well as discounts on business expenses. Also, join the local Chamber of Commerce and attend their monthly breakfast/networking sessions – a good way to stay in touch with the business world in general.
     Self control. Now that you are on your own, it is easy to fall into a poor work pattern. Working from your home takes a lot of discipline. First, separate work time from personal time. Set hours for your workday and stick to them. After hours don’t sneak into the office to get work done unless you are up against a deadline. Likewise don’t sneak out to run errands during business hours. Think of time away from the office during the workday as money lost.

Contact JWB Interest Today

Management Advisor   Marketing Advisor   Business Communications

JWB Interest, LLC  2012 All Rights Reserve

Cash Management – The Nickels and Dimes Add Up

I have been advised that one of the most critical skills I need to develop as a business owner is that of "cash management". While I think I have some understanding of what this means, I am not absolutely sure. Just what is involved in good "cash management"?
 A. Cash is the engine that runs every business. The successful business owner should view the assets on the Balance Sheet as potential sources of cash: remembering that some accounts are a near term source, others may be longer term sources. 
     Great care must be taken to ensure that all cash receipts are properly accounted for and deposited in the bank. No cash should be held out to handle small expense items. This procedure opens the door to possible misuse of cash. Small cash disbursements may be handled through a "petty cash" account controlled by you or a trusted employee. At the same time, controls must be placed on all disbursements to be sure they are properly documented by vendors invoices, receiving reports, etc. Also, disbursements should be scheduled within the same time frame as budgeted in the cash flow projections, if possible. An unexpected cash shortfall may be caused by payments being processed earlier than planned.
     A reconciliation of the cash balance shown on the monthly statement received from the bank and the cash account on the books of your business must be made monthly, preferably by you, the business owner. All necessary corrections must be made on a timely basis so that errors do not lead to larger problems with your bank in the days or weeks ahead.
     If sales are made to customers on a credit basis, great care must be taken to be sure accounts are collected on time. Each credit customer must have a special ledger card showing the invoices charged to the account, cash received and the balance still owing. All the various ledger cards combined are referred to as the accounts receivable ledger. The sum of all the accounts in the accounts receivable ledger must agree with the account entitled Accounts Receivable in the Current Asset section of the Balance Sheet. If a customer is a slow payer, a different credit arrangement should be made with him. Some businesses offer cash discounts to customers who pay their accounts within 10 days or some other specified period of time. You must take the responsibility for contacting past due customers so that firm payment commitments are received without alienating the customer.
     Inventory levels on the Balance Sheet should be of great concern to you. In most cases cash is used to purchase inventory to be sold to customers in a relatively short period of time. The annual expense of holding inventory can run as high as 30 cents of each dollar of inventory cost when the expense of interest, property taxes, insurance, obsolescence and mysterious disappearance are considered. Special inventory ledger sheets should be maintained for each item in inventory to track movement in and out of the shop. The statistics developed from each ledger card will help you reorder inventory on the most economical basis. The various inventory ledger cards are kept in a book called the inventory control ledger. The sum of all the ledger cards in the inventory control ledger must agree with the Inventory account in the Current Asset section of the Balance Sheet. Cash should not be tied up in inventories for a long period of time. In an effort to conserve cash you may consider asking suppliers to provide extended payment terms on purchases.
     It is very important to practice cash planning or forecasting on a continuing basis. You should regularly prepare budgeted Income Statements and accompanying Balance Sheets. With these two statements as a source of information, you can then prepare cash flow budgets by month for at least the year ahead. The cash flow budget will demonstrate to you whether you have the cash resources to fund the business as planned. If projected cash balances are not adequate, you might consider approaching your banker or financial backer to ask for additional short term credit or a delay in making scheduled loan repayments. You may also look at any scheduled purchases of assets and equipment that are in your forecast to determine if they can be delayed until cash balances are healthier. The point of the budget or forecasting process is to provide you with sufficient data far enough in advance for corrective action to be put in place.

Contact JWB Interest Today

Management Advisor   Marketing Advisor   Business Communications

JWB Interest, LLC  2012 All Rights Reserve

Make Your Home Office Professional

Any special advice on how to do this "professionally"?
     The "Golden Rule" –treat others as you would want them to treat you – is a must for small businesses. You want to provide the highest quality service and responsiveness because that’s what you expect when you buy a product or service.
     The largely casual setting of a home office is no exception. Even if you work out of a spare bedroom and wear shorts while you work, you want clients to perceive you as a first-class operation. That means making sure you have the resources and approach to your business as good as your competitors in that shiny office downtown.
Here are some ways to make your home office as professional as possible:
     Get connected. Make sure your computer has the processing speed and capacity to meet your business needs. You cannot be efficient or provide fast answers if your system is slow and constantly crashing. The same goes for your Internet access. Faster modems and phone lines may cost a little more, but the added expense will be more than offset by the time saved waiting for web pages and long documents to download.
     Open the lines of communication. Consider having three separate phone lines – home, office and fax. Also install voice mail. Clients should never experience the frustration of getting a busy signal when trying to reach you or send a fax. If you receive another call while speaking on the business line, the caller can still leave a message. If you have call waiting, make sure you disable it if you expect the call to be lengthy. That persistent double click will be disrupting to you, the person you’re speaking with, and the third party trying to reach you.
     Create a "real" office. Set up your home office professionally. Make it quite, comfortable and organized. Place what you use most close to you. Use bright colors or dark colors, face away from the window or toward the window – in short, whatever works best for you and helps you to concentrate.
     Send it in style. Design your company’s letterhead either yourself or with the assistance of a professional designer. Use it for all business correspondence. It may be worthwhile to rent a Post Office Box for your incoming mail. Home street addresses don’t always convey the look of a professional organization.
     Stay informed. Keep on top of all the latest trends in your business, as well as in your client’s fields. Join your trade association and subscribe to all the key magazines that cover your industry. These resources offer advice and information as well as discounts on business expenses. Also, join the local Chamber of Commerce and attend their monthly breakfast/networking sessions – a good way to stay in touch with the business world in general.
     Self control. Now that you are on your own, it is easy to fall into a poor work pattern. Working from your home takes a lot of discipline. First, separate work time from personal time. Set hours for your workday and stick to them. After hours don’t sneak into the office to get work done unless you are up against a deadline. Likewise don’t sneak out to run errands during business hours. Think of time away from the office during the workday as money lost.

Contact JWB Interest Today

Management Advisor   Marketing Advisor   Business Communications

JWB Interest, LLC  2012 All Rights Reserve

Get Trademark Savvy and Protect Your Creativity

Will my patent keep others from using my product name?

No, but you may need a trademark which is not the same as a patent.  While there are similarities, they serve different purposes. 

According to the U.S. Patent and Trademark Office (USPTO), a trademark is a word, phrase, symbol or design used in business to indicate a source of the goods, i.e. your business, and to distinguish those goods from others. A service mark is the same as a trademark, except that it identifies and distinguishes the source of a service rather than a product. 

A patent for an invention grants a specific legal property right to the inventor—“the right to exclude others from making, using, offering for sale or selling” the same invention.
A word or phrase that is commonly used or already connected with another product or service in the same industry cannot be trademarked.  For example, a generic term like "search engine" can’t be trademarked, but a unique name, like Google, can be. If your name, however, is generic but used in an industry not typically related to the meaning of the term, you may be able to trademark it - an example is Apple Computer.
As a general rule, you can trademark your business name if you use it when advertising directly to your customers. If you don't use your business name in direct communication with your customers, you probably can't, because you're not connecting your name to your brand and its attributes. If your business name is a large part of your marketing, you should consider trademarking it.
If your company is the first to use a unique mark to identify your products or services, you don't need to register your mark to gain rights to it. You must, however, add the trademark symbol, TM, to the mark you're claiming rights to. It's not quite a substitute to registering a mark through the USPTO, which establishes ownership beyond a doubt.  

Everything you need to research and apply for a federal trademark is at the USPTO Web site, www.uspto.gov. The application process requires that you identify goods or services under specific categories. But misunderstanding these categories and filing too broadly or too narrowly can ruin your trademark and cause problems later on. A qualified trademark attorney will help prevent such problems.  
Also, trademarks can be registered at the state level which is simple, fairly quick and inexpensive. That only protects your trademark in your state but that may be all that you need.

Contact JWB Interest Today

Management Advisor   Marketing Advisor   Business Communications

JWB Interest, LLC  2012 All Rights Reserve