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.

SBDC 2011 Top 10 Tips PDF

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.

Before:

Stella Shirman earned her MBA and worked in corporate marketing for 10 years, but she always knew that she wanted to get into the fashion industry one day. “I love fashion, clothes and design,” she says. In 2009 Shirman began doing market research and writing a business plan for a boutique to sell unique, elegant women’s apparel and handbags designed and manufactured in Europe. While researchingSmall Business Administration loans in the fall of 2009, she was introduced to Sharon Peterson, Senior Business Advisor at the El Camino SBDC.

Best Advice:

Shirman wanted to make sure her new business had adequate funding to cover its startup costs. Peterson helped her fine-tune her business plan and obtain a $10,000 unsecured SBA loan.

Lessons Learned:

• Know where to go:Shirman had researched business loansextensively online, but Peterson’s expertise helped her take the next step. “Sharon knew exactly which loans I could apply for and suggested different organizations I could approach,” Shirman explains.
• Make it perfect: “I had written a pretty strong business plan with a strong financial model, calculating how much cash I needed to make [the business] work,” Shirman recalls. Peterson helped Shirman polish the plan until it was perfectly tailored to obtain the types of loans she was seeking.
• Get guidance: Peterson was invaluable as a guide throughout the loan application process. “She looked over [my] applications and knew the best way to answer all the questions the banks asked,” Shirman says. “When I didn’t hear back from a bank, she’d call [the banker] and follow up.”

After:

Using the $10,000 loan proceeds to pay for inventory and her first month’s expenses. Shirman opened Estell Boutique in March 2010. The boutique on Santa Monica’s upscale Montana Avenue quickly earned a loyal clientele,breaking even in just three months. Revenues for the first 12 months in business were just under $90,000, and Shirman expects sales to grow even more in 2011.

Shirman is in the process of applying for a second loan; if she obtains financing, she plans to hire employees. She’s also looking into expanding into wholesaling and, eventually, hopes to add more locations.

While her extensive business education was a big help in launching Estell Boutique, Shirman says the assistanceshe obtained at the SBDC was vital, too. “Sharon is very knowledgeable, and the staff is very pleasant,” she says. “I enjoy working with them, and I know I can always go back there.”

Before:

Sergei Sychev was working in business development for a consulting firm when he noticed a co-worker coming to work every Monday with bruises on his hands. The man told Sychev he worked delivering inflatable jumpers and bounce houses to children’s parties every weekend—and business was booming. Intrigued, Sychev began investigating the industry, and bought three inflatables to start his own weekend business, Planet Bouncy. When the recession hit and Sychev was laid off in 2008, he knew his business could become more than just a sideline.

Best Advice:

Inflatables are capital-intensive, so Sychev began exploring financing options—a search that led to the El Camino SBDC. One-on-one counseling with Senior Business Advisor Sharon Peterson helped him obtain an SBA-guaranteed Community Express Loan of $25,000, increase sales by $100,000, add new employees and hone his business strategy.

Lessons Learned:

• Do the math: “Sharon walked me through my loan options and helped me put together a business plan,” Sychev says. “She also helped me put together projections, financials and cash flow that I probably wouldn’t have done on my own.” As a result, not only did he get a loan to finance equipment purchases, but he’s been able to make better business decisions.
• Target the most profitable customers: Peterson helped Sychev understand how amortization and depreciation affected his business. “Our equipment has a limited life, so depreciation is a huge issue,” he explains. Bigger customers (parks, organizations and events) require more inflatables, trucks and staff, while putting more wear and tear on inventory. Instead, Sychev is focusing on residential customers and working to increase the per-rental average by adding extras such as balloon services, tables and chairs, and popcorn machines.
• Help is out there: For an entrepreneur on a budget, finding a free source of business expertise was invaluable. “I don’t have to hire expensive advisors to help me manage my business,” Sychev says. “The [SBDC] has everything I could ever need.”

After:

“Every month has been bigger and better than the previous month,” says Sychev, who projects sales of $250,000 this year. Planet Bouncy made Los Angeles Magazine’s “Best of L.A. 2010” list, and recently added balloon services. Immediate growth plans include renting warehouse space (he currently uses commercial storage units for the inflatables) and hiring additional delivery workers and administrative help.

Sychev is working with the SBDC to get additional financing and plans to seek advice on legal issues such as independent contractor compliance and workers’ compensation insurance.

Planet Bouncy’s long-term goal: expansion to three warehouses in the South Bay/West Los Angeles, Orange County and San Fernando Valley. “With three centers, this could be a $10 million to $20 million business,” says Sychev, who sees franchising in his future.

Stimulus Opportunities invite

Strauss, who previously owned a high-end, retail clothing business in Frankfurt, credits the Small
Business Development Center (SBDC) hosted by El Camino College for providing basic, essential
knowledge to open and run a business in the United States.

“I knew how to open a business, but in a new country regulations are totally different,” Strauss said.

“I really took almost every class the SBDC offered and I had one-to-one meetings with several different
Business Advisors.”

Strauss attended classes on choosing a company structure, creating a business plan, marketing on
a shoestring budget, accounting, human resources and even a class on running a restaurant. She
also used the services of an SBDC Business Advisor who is an attorney for leasing advice and SBDC
Business Advisor Dr. Barbara A. Sweet for employee rules and regulations.

“It’s quite a learning curve for someone not from this country or familiar with the culture to start
a business here,” Sweet said. “But I was impressed with Melanie’s ability to stay on track and be
business minded.”

From Sweet, Strauss received an overall view of labor regulations here that differ greatly from Germany.
Information on hiring, appropriate interview questions, overtime and holidays, how to reward and retain
employees, good management practices and hiring due diligence were also covered by Sweet.
Strauss herself returned to Germany to work in a delicatessen and a patisserie, learning more about
artisan cheeses and how to bake German cakes, and took further professional cooking and baking
classes in Los Angeles. Her restaurant opened in June 2008 as a combination European delicatessen
and bistro. With 30 tables and eight employees, Strauss provides fresh sandwiches and salads, sells
artisan cheeses and charcuterie and makes European and German cakes and desserts from scratch.
She also caters to individuals and businesses, plus international airlines and travel agencies.

She has earned rave reviews through word of mouth, articles in local papers and the announcements
she emails to about 400 customers. Business has been steady for her, thanks, in part to the
basics provided by the SBDC, she said.
“I thought the SBDC training was such a great thing,” she says, “nothing to lose and I can get as much
information as possible.”

1. Join the club. Industry trade associations, niche organizations such as groups for minority or women business owners, groups your key clients belong to and your local chamber of commerce are all great places to make new contacts.
2. Set goals. Know what you are hoping to achieve from a particular organization. Do you want to meet prospective clients, potential partners, job candidates or suppliers? Setting goals will help you assess whether an organization is right for you.
3. Be prepared. In any situation where you’re meeting new people, bring an open mind and a friendly attitude. Also bring business cards and be ready to describe what your business does in simple terms (“We help small businesses save money by preparing their taxes”). Greet everyone with a smile, eye contact and a handshake.
4. Mingle. Never spend all your time at an event talking to one person or group. Think of several ways to politely end a conversation and move on. (But first, get contact information from those you’ve been talking to so you can follow up later).
5. Follow up. When you meet someone you’d like to get to know, follow up. Use social networking tools to link up on LinkedIn, become friends on Facebook or follow each other on Twitter, and you’ll also be exposed to the person’s network of contacts.
6. Take it offline. Connecting on social media is a good start, but to truly foster a business relationship, you need to spend time face-to-face. Suggest getting together for coffee or a meal to share more about your businesses and how you might work together.
7. Keep in touch. Business relationships are like flowers-without nurturing, they wither and die. Make it a point to regularly connect with your key relationships, whether it’s retweeting their tweets, mailing a card or meeting for lunch.
8. Harness technology. Contact management software can help you track information about your contacts so you don’t have to remember birthdays, children’s ages or hobbies. The software does it for you and sets up reminders for actions like emailing or sending birthday cards.
9. Be patient. Business relationships take time to pay off. It may take years of talking and planning with someone before you actually end up working together or seeing any results from one of their ideas, referrals or suggestions.
10. Aim to give, not just get. Of course, you want to benefit from business relationships-but that’s more likely to happen if you have a generous attitude. Focus on how you can help your contacts, and you’ll find that you get more than you give.

Rieva Lesonsky is founder and President of GrowBiz Media, a content and consulting 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 and visit SmallBizDaily.com.to sign up for her free TrendCast reports.

1. Assess their needs. What do your employees need to learn-both for their current jobs, and to move up in your company? Equally important, what do they want to learn? Employees will be more motivated if they have a say in the training they receive.
2. Join the group. Industry associations and trade organizations offer a variety of training options, including conferences, seminars, certifications and more. Take advantage of these learning opportunities.
3. Cross-train. Have employees train each other in how to do their jobs. Not only will your staff learn new skills, but you’ll benefit by having backup when one employee is out sick or on vacation.
4. Go online. A simple online search will reveal a wide range of online webinars and training courses, many of them free or low-cost. This can be a great way for employees to learn at their own pace and when it’s convenient for their schedules.
5. Brown-bag it. Host weekly brown-bag lunches at your business where you or other employees talk about a topic of interest. For instance, the person who handles marketing at your business could explain how your company uses social media and how employees can participate.
6. Send them back to school. Community colleges and adult education programs offer lots of courses relevant to your employees, from how to use specific software to accounting and marketing classes.
7. Read all about it. Have everyone on staff read a business book on a topic that will help your business. At the end of the month, lead a lunch meeting where everyone discusses the book and what they learned from it.
8. Start a mentorship program. Having experienced employees mentor younger ones is not only a good way for novices to learn, but also a great way to ensure the knowledge and experience of older workers is passed on.
9. Spread the wealth. Can’t afford to send an entire department to a particular training program or conference? Choose one employee who’s a good presenter. Have that person attend the program, then come back and train the others in what he or she learned.
10. Visit the SBDC. Talk to your local SBDC’s Business Advisors to find out about training programs and solutions offered in your area.

Rieva Lesonsky is founder and President of GrowBiz Media, a content and consulting 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 and visit SmallBizDaily.com.to sign up for her free TrendCast reports.

1. Get professional help. Maybe you can do your taxes yourself—but is it worth your time? By keeping up-to-date on tax law and knowing how to use it to your advantage, a good accountant saves you more than he or she costs.
2. Start early. Whether you use an accountant or do it yourself, don’t wait until April 10 to get started—give yourself plenty of time in case last-minute problems arise.
3. Get organized. Don’t show up at your accountant’s door with a shoebox full of receipts. Gathering the necessary documentation and organizing it ahead of time makes everyone’s job easier, saving time and money.
4. Go to the source. Visit the IRS Tax Season 2010 portal for tips and information on maximizing your tax credits. For changes to state tax laws, find your state Web site here.
5. Go ahead, deduct that home office. In the past, many entrepreneurs were afraid a home office deduction would spur an audit. But the IRS has relaxed eligibility rules for this deduction, and if you legitimately qualify, you can take it without fear.
6. Fund your retirement account. If you have a traditional or Roth IRA, there’s still time to lessen your taxable 2009 income by contributing to the account before April 15, 2010.
7. Don’t forget startup expenses. The costs of launching a business are considered capital expenses, and you can deduct up to $5,000 of them your first year in business—but not until your business is actually open.
8. Understand audit risk. The IRS is stepping up enforcement activity, and those who file a Schedule C are particularly at risk. That’s all the more reason to use a professional tax preparer.
9. File electronically. The IRS encourages small businesses to e-file. If you expect a refund, e-filing lets you get your money faster. And when you e-file, the IRS checks your return for completeness, minimizing your chance of errors.
10. Plan ahead. Proposed federal stimulus actions could mean many more tax breaks for small businesses in 2010. Talk to your accountant about what you can do now to lower next year’s tax bill.

Rieva Lesonsky is founder and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva on Twitter@Rieva and read more of her insights on SmallBizDaily.com.

1. Educate yourself. The federal government is vast, and every agency is different. Do your homework to understand each agency, its goals, and whether your business can help achieve those goals. You can find a list of agencies at USA.gov
2. Be realistic. Can your business handle the requirements involved in fulfilling a government contract? You’ll need to manage lots of paperwork, maintain certifications, institute quality control procedures and comply with regulations. Know what’s expected–and make sure you can deliver.
3. Be patient. The government sales cycle can last years. You need to find and get to know decision-makers, search for opportunities, submit proposals and wait for results and funding. If you need to make money now, contracting may not be the way to go.
4. Get registered. To begin, get a DUNS (Data Universal Number System) number from D&B. You need this to register with the Central Contractor Registration (CCR) system, which you must do in order to get contracts and obtain payment.
5. Get certified. When you register in CCR, you can self-certify your business as small, disadvantaged, or women-, minority- or veteran-owned. These certifications can give you an edge in competing for contracts, as most agencies “set aside” a certain percentage of spending for these kinds of businesses.
6. Learn the basics. The Federal Acquisition Regulation explains all the rules regulating government buyers and sellers. The General Services Administration is the biggest federal purchaser of goods and services. Being listed on the GSA Schedule opens your business to contracting opportunities.
7. Get experience. Don’t even think about government contracting unless your business has a track record of success. Past performance is key to landing a federal contract, so you must have a history of customers who will give you excellent references.
8. Market your business. Getting listed on a government schedule doesn’t guarantee sales. You still have to market to decision-makers. Use social media tools, networking organizations, and events like those sponsored by the SBDC to network with government buyers in person.
9. Think small. The federal government isn’t the only game in town. Contracts with local or state governments are a good way to learn the ropes. Visit Business.gov for information and resources on doing business with state governments.
10. Partner up. Subcontracting to a federal government prime contractor is another good way to break into government business even if you have limited capital, resources or experience. You can find prime contractors seeking subcontractors at the GSA website.

Rieva Lesonsky is founder CEO of GrowBiz Media, a content and consulting 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 and visit SmallBizDaily.com.to sign up for her free TrendCast reports.