The Cart Blog

5 ideas on running a successful side business

Nervous about your day job? Want some income security? Starting a small business on the Internet is one way to diversify your income. Let me share with you my five best ideas on how to be successful running a small business.

1. Don’t be greedy! I have had a number of clients ask me to disable PayPal once they installed a payment gateway because they didn’t want to incur PayPal’s higher fees. What they’re forgetting is that some people will only deal with PayPal (or Google Checkout) because they don’t trust payment gateways on small websites. So instead of saving 1% they’re losing 100%. Provide as many payment options as possible and don’t sweat an extra percentage point. If your business is so marginal that 1% will break you, find another business.
2. Don’t be greedy! Another developer approached me a while ago asking me if I wanted to subcontract some work to him. I said I’d be glad to, and that my standard referral fee was 15%. “Oh that’s much too high,” he said, “I’ll give you 8%.” Not surprisingly, I didn’t give him any work. When someone in my network sends me work, my response is, “Thank you! Here’s your 15% referral fee.” 85% of something beats100% of nothing.
3. Don’t be greedy! The great Joe Girard once said he never sold a car at retail. Even the biggest rube would get a discount. Why? Because Joe knew word would get around if he took advantage of people - and word would get around if he didn’t.
4. Don’t be greedy! One of the people I work with does great work, but consistently accepts too many clients in order to make more money. As a result, phone calls and emails go unanswered and work comes in late. This is not sustainable. Be mindful of your backlog when you accept new projects.
5. Don’t be greedy! Give a little and take a little on price. Try to give freebies if you can. Don’t nickel and dime your clients. Negotiation is not war, it’s relationship management and creative problem solving. Yes, it will cost you a little, but the benefits in karma and repeat business will greatly outweigh the costs.

There is no such thing as a transaction anymore. Even the smallest exchange is a relationship and even the smallest customer has friends, relatives and neighbors… and access to the Internet where they can complain to the world about you if you behave badly.