Sales don't just wander in your front door. Here's how to cultivate up a steady stream of shoppers.

Sanjay, Huntington, N.Y.
We have a retail shop of clothing and jewelry. I sit all day waiting for the customers. How can I utilize that time on my computer, and do something that will generate extra cash for my business?

By Dinah Eng, CNNMoney.com contributing writer
If you're not selling your products online, now is the time to start — and if you've already taken the e-commerce dive, you can use your down time to build sales-boosting buzz.

If you don’t already have a Web site for your store, you can ease in by selling on established sites like Amazon.com or eBay. If you have handmade items, try Etsy.com or ArtFire.com.

Whether you're selling on your own site or an outside one, a good next step is to compile an e-mail database of your customers. Realize, though, that technology alone is not going to sell your inventory.

Paul Schneider, owner of Twist

“Retail is all about relationships,” says Paul Schneider, owner of Twist, which started as an artists’ coop and now sells jewelry and art pieces through two stores in Portland and one in Seattle. “If you compile an e-mail database and use it to establish a line of communication, you’re three-quarters of the way to making a sale.”

If you have six customers a day, you could compile 36 names a week. The trick, of course, is getting people to give you their e-mail addresses.

“I try to make it fairly personal,” Schneider says. “'Would you mind if I got in touch with you when we have a special promotion for our e-mail friends only?' Make it a private, exclusive club. Don’t send more than one mass e-mail a month. To a small retail business, this is gold.”

Schneider says he uses his Web site for personalized pitches, sending customers links to pages with items that may interest them.

To attract new customers, he suggests finding the blogs and discussion groups online that deal with what you sell, and becoming a part of the discussion.

“Talk about your products, even if you don’t have your own Web site,” he says. “If you sell wedding rings, get on the bridal blogs. We’re starting to work with social networking, and have a fan page on Facebook now. There are search engine optimization consultants who can help you craft online ads.”

Richard Eiseman, Jr., owner of Eiseman Jewels in Dallas, a high-end boutique, is now in the process of inputting a mailing list compiled over 40-plus years into a database. To entice people to register online, he sent out direct mail pieces offering a free valet parking pass at the mall and a chance to win a $5,000 store gift card.

“Find ways to get exposure by doing something unique," Eiseman suggests. "Host a charity event in your store. Have the local school sell something at your store. You have to get foot traffic in based on some expectation other than buying.”

Utilize that time in between walk-ins by reaching out to customers on the phone.

“Keep a card on every person you’ve sold to,” advises Scott Marshall, a Los Angeles consultant who specializes in retail management and e-commerce. “Write down what they like, their family information, anything you can think of. Then think of how to help them with the products you carry. If you’ve got trendy teen clothing coming in, and their card says they have teenage nieces, call and tell them, but do it in a way that shows you’re interested in them, and not just the sale.”

Marshall says men, in particular, always need help with finding the right gift for women. Have their spouse or girlfriend fill out a store “wish list,” then offer to send the guys an e-mail reminder when a birthday, anniversary, or holiday is coming up — and suggest items that the women in their lives might enjoy.

“You have to decide to be in the game,” he says. “Too many people think 'I’m a small store, my customers don’t have a lot of money.' Everybody wants to find a deal without searching high and low for it. To somebody, your things are expensive, and to somebody else, the items are cheap. If you’re ready to just sit at the computer and do work for someone else, you’ve given up on your own store.”

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Pay for the marketing that works

Even bad reviews boost sales

HR by Twitter

Finding new clients requires new skills. Here's how to expand beyond your comfort zones.

From OLG
We have a small business with a number of federal government contracts. We would like to expand to the commercial arena, but have not been able to find a service or method that would provide market differentiation (other than offering lower costs than our bigger and better-known competitors). Would acquiring a firm offering a compatible "niche" be the best move for expansion? In terms of growing federal and perhaps state government sales, would hiring a "consultant" be wise? I am interested in hearing from business owners who have tried both methods. Thanks!

By Maya Payne Smart, CNNMoney.com contributing writer
With federal stimulus dollars gushing down the pipeline, some government contractors are looking no further for their next catch. That’s a mistake, because the government contracting boom of 2009 is unlikely to continue in future years.

Bob Venero grew his IT company from zero to $100 million in sales.

It’s important to diversify into the private sector, says Eric Dobyne, a regional director for the U.S. Department of Commerce Minority Business Development Agency. “If your sales force is really focused on government and federal work, you may have to hire from outside,” Dobyne says. “I wouldn’t say you need a consultant, but dedicate staff to that market. It needs to be a part of your business strategy and you need to have resources dedicated to make the transition.”

But be prepared to wait for results. The corporate sales cycle is generally shorter than government ones, but it still takes time to build relationships with clients. Bob Venero, president and CEO of Future Tech Enterprise, Inc., grew his Holbrook, N.Y., IT company from zero to $100 million in revenue organically. “In 12 years of business, we’ve looked at acquiring nine companies but never did,” he says. “They were overpriced, because someone wanted to retire or the wheels were falling off the bus. It wasn’t worth the debt or risk to acquire them.”

Venero says consultants can help you win government contracts, but you need to beef up your own sales force to thrive in the commercial arena. “Understand that corporate America is more political than government America,” he says. “Relationships with individuals become the most important component to success. With government contracts, you start to collect orders. There’s no real relationship built, because it’s a piece of paper versus a person.”

Robert Wallace, the president and CEO of Bith Group Technologies Inc., a Baltimore, Md., technology company, also says an insider offers the fastest route from point A to point B. For example, if you want to do more business with a specific government agency, recruit from within. “Find somebody who was in the space or who is in there now and will be leaving soon, and have that person join your team in marketing or business development to go back into that market and sell," he advises.

Marcus Carey expanded his company beyond the government sector through persistent networking and outreach.

If staffing up isn’t in the budget, you’ll need to take the lead. Marcus Carey is the owner of Saecur, a Hanover, Md., information security firm that subcontracts for the U.S. Department of Health and Human Services. He decided to be the front man for his company’s move into the commercial sector. “You have to hit the conference circuit, put on podcasts and just generally give the industry or community good content, good information, stuff that they can use,” Carey says. “It lifts your profile. If you give people what they want, you end up getting what you want.”

His information security “community service” includes a blog, monthly briefings at Capitol College, and participation at DojoCon, an information security conference. The outreach helps his company build brand recognition among prospects. Carey relies on virtual assistants in the U.S. and India help keep his costs down: They identify speaking opportunities, draft proposals and even court sponsors for his community events.

Carey is confident he’s expanding in the right direction. “The government contracting market is the most stable, but your margins are really tight because there’s so much competition and people are lowballing each other,” Carey says. “The commercial profit margin is way, way better.”

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The government's fuzzy small biz math

Small business ARC loans pick up, but frustrations remain

Entrepreneurs create their own recovery

How to get capital when you are your partner disagree on the risks.

C. Miranda, Urban Revitalizers, Boston

I am a partner in a small, certified minority business, and have been managing it for the past 10 years. My firm has just won a statewide contract to conduct assessments of real estate throughout the state. It is our first large contract, and it requires some start-up capital. I have applied for several business loans to carry us through until our first pay-down. The problem is that my business partner of 10 years is not willing to sign, saying that she wants to be able to continue to pay the bills if everything fails. I have used all of my credit cards to get us part of the way there, but still need more capital. My credit score is high. Can someone tell me how I can get over this hurdle?

By Emily Maltby, CNNMoney.com writer

You've got two things that many businesses are wishing they had right now: An ironclad government contract and loan options.

"In a way, that makes this a no-brainer," says small business coach Marian Banker of Prime Strategies. "I think you'd benefit from a discussion about your visions and goals for the company, because you and your partner may not be on the same page."

While business partners' personal goals for what they want to get out of the business can differ, your aims for the business itself should be the same. "If you can identify where the disconnects are in your mindsets about the business – which is probably where the problem lies – the rest of your issues will be solvable," Baker says.

When you sit down with your partner, talk about measurable goals. Your partner may think that the business can't afford certain risks , while you think that it can. Or you may have different ideas about what counts as a "calculated" risk, Banker says. Ask your partner what her growth plan is for the business, as an alternative to this contract. If she has a good idea, make sure you're open enough to entertain it.

But let's face it. Partnership issues aren't always that civil. You will each make put forward your best case, but sometimes disputes can't be resolved through negotiation.

There are some remaining options that might satisfy you both. The first is for you to ask your bank for a short-term loan without her signature.

"For the bank to consider that appeal, you would have to produce the signed contract, plus a separate business plan for just that project, which includes the projections of revenues and income after expenses that would be generated from the project," says Porus Sagar, an Orlando accountant and current SCORE counselor. "The underwriting standards of the bank will determine whether her signature is necessary, and you might be able to negotiate the extent of your liability with the bank."

There is a strong chance that the bank won't accept this option. If you both own exactly equal stakes in the company, the bank will usually want both of you to sign for the loan. One option is for your partner to give up a percentage of her ownership and give you the majority stake in the business. That will both compensate you for the additional risk you're assuming, and give the bank one managing partner to work with.

Sagar and Banker say that giving up ownership can be a sticky situation – emotions can hinder progress. Sagar has seen many partnerships dissolve in ownership disputes. He suggests asking an objective, independent attorney to help adjust the capital ratios.

"The lawyer will also help decide if the ownership arrangement is best as a permanent change or just for this project," says Sagar. "To create less friction, you could opt to take on additional liability for the moment; then when the job is complete, you could keep all the profits from it but rework the capital interest back to her. Take advantage of different levels of compromise that may be available."

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How to ditch bad business partners

Divorcing your business partner

What's a fair split when partnering up?

A good distributor can make or break your product line. Here's how to find the right one.

Deziree Williams, Sugar Free Baby, Los Angeles
I have a children's eco-friendly clothing line. We are taking it slow because we are branding our line and are in some ways picky about who we sell to. I have recently been approached by a distributor, but I'm not sure if this is the best way to launch into the market. Any advice?

By Emily Maltby, CNNMoney.com writer

By the look of your Web site, SugarFreeBaby.com, it seems you are off to a great start. You've evidently taken the right steps to approach the smaller retailers already, as your line is already in a number of stores.

You are wise to be conservative about which storefronts represent your line. But as you expand, part of your decision about working with a distributor will depend on whether you want to stick to the small stores or get to the national chains. You can continue to go it alone if you stick to the smaller outlets, but a distributor is essential if you want to reach out to the big guys.

"Large retailers want to see someone in the buyer's office that they already has a relationship with – someone who knows the system," says Gordon Cundell, a former assistant buyer with Sears Canada and current president of the Canadian Sporting Goods Association, an information service for sports equipment and apparel buyers and sellers.

Working with a distributor could be a smart move even if you want to indie shops. "Suppliers often have the passion needed for a successful product, but no business sense to get the product in to the right places," Cundell says. "Chances are the average clothing designer doesn't even know all the distribution channels that are available."

And of course, even if you have the knowledge to do the job, you may be stretching yourself too thin by taking on the daily activities of a distributor.

"One benefit of using a distributor is that ideally you have one place to ship your goods to. They break it out and do all the individual shipping and selling for you," says Rob Reger, president of Cosmic Debris and creator of the gothic Emily the Strange product line, which is sold internationally, in 200 independent boutique stores, and in large chains such as Hot Topic and Borders. "This leaves you with designing and manufacturing, keeping the quality control in your hands."

If you decide to work with a distributor, picking the right one is critical. What should you be looking for?

Both Reger and Cundell say your distributor's vision is crucial to a successful relationship. You need a partner who fully understands what type of customer you're targeting, and who has ties to retailers that serve your market.

"Taking it slow and building your brand with a specific core customer in mind is wise," Reger advises.

"Find out what they already distribute," Cundell says. The other lines they represent should be similar but not exactly the same as yours.

You'll want to find children's clothing distributors who don't currently have green attire in their lineup – if the distributor already has eco-friendly offerings, "you risk the lines competing with each other," Cundell says.

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How fashion designers break in

Get your clothing line into gift shops

We asked the experts and created a step-by-step guide to getting noticed on the fashion scenes.

Samantha Risto, Risto Designs, New York, NY
I recently launched a small women’s clothing business in New York out of my apartment. I would like to know how I can sell to small retailers and boutiques. Do I just show up at their store with samples in hand or is there an "established" way of doing this?

By Emily Maltby and Shara Rutberg, CNNMoney.com
The answers are yes and yes: You can show up at a store, but there is an established way of doing so.

"A scattershot approach won’t work," says Ira Davidson, director of Pace University’s Small Business Development Center and a former buyer for Abraham & Strauss, a famed New York City store that later became part of the Macy’s chain. "You have to have some discipline."

The best way to establish yourself is to start small. Boutique retailers should be your training wheels for the department stores.

"The boutiques will help you learn the process of how to run a business and show you how quickly you can manufacture the goods, and how to structure the orders," says Bliss Lau, an accessories designer who now has her line in more than 40 stores worldwide, including department stores in Japan. "The smaller retailers will be more flexible. If you manage to get into a large department store off the bat and the goods miss the deadline, you'll lose the order."

So how do you get your foot in the door at a small boutique? First, carefully identify your target stores. Then, reach out to them by visiting or making appointments. To increase your chances, find out what time the owner or the buyer is in the store, make a business card, and wear your line when you drop by, Lau suggests.

This method takes a thick skin, so you can't be afraid of rejection. Lau once took a train from New York to Washington, D.C., getting off at each stop to pop into stores. "I got flat-out rejected by half of them and had a great time at only one of them. But the way I saw it, I scored a new client, which was great," she recalls.

Many retailers don't think the drop-ins are effective.

"It happens frequently in my store, but it's usually not a good time to engage in conversation because the customers have to come first," says Candice Waldron, owner of boutique store Jumelle in Brooklyn. "Making an appointment for before-store hours is better."

Yvonne Yip, head buyer at Big Drop, also in New York City, thinks that the most effective way to get exposure is to mail in a Look Book. "About 10 pieces, photographed from different angles and put together in a professional way, will speak for itself," she says. "Also make sure the book includes a line sheet describing the items and listing the prices of each."

Your sample line is critical, says Linda Carter, president of The Retail Management Advisors, a Dallas-based retail consulting firm.

"Do not go with 50 samples," Davidson says. Six to 12 of your best styles is enough. And don’t forget to bring a color swatch book, showing off small squares of the fabrics for your line.

But buyers don't simply wait for designers to come to them. Yip finds most of Big Drop's products in fashion showrooms.

"Sales reps at the showrooms have connections to us. They know how to best present the lines and they know how business is done," she says. "Nine times out of 10, it's easier for us to work with a rep than with the designer." Most showrooms will have multiple lines, so when Yip goes to see one line that has piqued her interest, she often gets to see four or five others as well that she wasn't expecting.

Showrooms charge designers for the space, and often for commission as well. Before you sign on with one, research the reputation of the showroom. Notice what other lines it showcases – if the showroom carries denim and you also have a denim line, they may compete with each other. Pick a showroom that has lines that will complement yours.

And be wary if the turnover is quick. "If the showroom features the same designer for a few years, it speaks very highly of the relationship," Yip says.

In addition to a sending out a book and displaying your work in a showroom, you should hop online and see what trade shows cater to your type of customer, Carter says. There are many run all throughout the year, especially in New York City. "It can be costly right off the bat to rent space, but may be less expensive in the long run as far as letting people know who you are and what you offer," she says.

"When I first started my company five years ago, I went to every trade show and conference I could find and would chase down all the big name sales reps," Lau says. "I'd show them any piece of press that was written about me and ask them for suggestions about my line."

If you do pursue trade shows, don't forget to focus on also getting your designs into local stores. "Big stores send buyers to trade shows, but then they continue their research at the boutique shops," says Jumelle's Waldron. "Buyers from Anthropologie and Harvey Nichols come to my store because they know the smaller stores are more willing to take risks with the designers."

If you're looking to break into the big leagues, make sure you have your manufacturing operations in order and are ready to expand your business to handle the demands of department stores.

"You have only one chance with the big players," Yip says. "You can't go from zero to 500 units, so put your designs in the boutiques to work out the kinks."

For more advice, Bliss Lau recommends The Fashion Designer Survival Guide by Mary Gehlhar.

"From having a fashion show to a company to pitch, it is a wonderful book for the creative mind," Lau says.

Give us your advice: Check out recent “Ask & Answer” questions.

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Get your clothing line into gift shops

Startup skills for a t-shirt company

Working around the vendor fee

A father-son company seeks advice on formalizing roles and building a sustainable structure for growth.

James, Miami, Fl.
I am part of a small family-owned drywall contracting company, with previous experience in estimating potential projects. My father is the other half of the company, as he has experience in field work. We have experienced some success already, but I'm looking to create structure in our company and lack the experience to do so. What are the steps that I need to take to create clear-cut roles that I should follow? Do my dad and I need to assign responsibilities that we each stick to?

By Emily Maltby, CNNMoney.com staff writer
Defining roles is always difficult, and is even more challenging when the other party is a family member. Your general goal should be to establish clear spheres of responsibility – and then stay out of each other's area of expertise.

Gary Naumann, lecturer in entrepreneurship at the Carey School of Business Arizona State University, recommends sorting the critical tasks of the company into functional areas, such as operations, sales, office administration, finance and accounting. Then decide which of you is best suited to overseeing each area.

He suggests dividing and conquering so that you don't double-dip on every little issue. "In a small but growing business, there is no time for you to confer with each other about all the details of your respective areas of responsibility," he says. "My experience is that most of what each of you does in those areas should be done independently, thereby reserving the discussion time for those critical issues that require consultation."

This will become even more essential as you add employees – those who work for you will want to know what is going on and who to consult about various tasks. One tactic Naumann suggests is a "Who Does What" outline that you can hand out to your associates.

"This should not be limited to just the two of you," he says. "Rather, it should encompass all the key areas of your company so you are able to comfortably delegate certain tasks and everyone in the company knows who the 'go to' person is." This will also help you and your father concentrate on your key tasks.

Of course, with the division of responsibilities will come the challenge of remuneration. Formalizing pay arrangements is a key part of creating an official business structure.

"Compensation of family members is much less likely to be based on any objective criteria," says Allen Fishman, author of 9 Elements of Family Business Success. "The sooner the family business leader takes control of creating objective standards for dealing with compensation issues, the more likely it is the businesses will survive and flourish into succeeding generations of leadership."

Fishman recommends putting your policy into writing. "A clearly stated compensation policy often prevents conflict and is the best way to break through the emotional barriers that commonly come into play when discussing compensation," he says in his book. "It would be best if the family business developed its employee compensation policies to approximate the industry levels to some degree. It's not at all uncommon for family businesses to employ family members for more than the going rate."

If your company doesn't pay salaries and instead splits profits, compensation is generally based on ownership stakes. "From a tax standpoint, you can't start a business without a document that shows ownership," Fishman says. "If, for instance, one person runs a warehouse while another runs office operations, the payouts may be the same if they each own 50% of the company – even though their skill sets have different market value."

Fishman warns that in a very small business, such as a father-son operation, the issue of formalizing ownership stakes often isn't discussed unless there is a problem – when it's too late.

"Don't wait for a feeling of unfairness to arise before you sit down and talk," he recommends. "Documenting your visions for the company and how it should be run will help to ensure the company doesn't break apart in the future."

Rising above higher commodity costs is challenging, but savvy owners can stay strong by adjusting to changing conditions.

Ahmad bin Saripan
I manage a food-processing business, and our sales are declining as costs and the price of raw materials escalate. How can I improve and grow the business?

By Herman Wong, Fortune Small Business contributor
Dear Ahmad: Making and selling a simple cookie isn’t as easy as it used to be. The rising costs of energy and ingredients challenge the recipe for success in the food industry – just as consumers cut back on their spending. Fighting against this inflationary tide takes smart cost-cutting.

“What you don’t want do is to start willy-nilly cutting costs. Be strategic about it,” says Bob Goldin, executive vice president of Technomic, a food industry consulting firm.

Fat to trim can come from the traditional places like headcount and company inefficiencies, but sourcing presents another good opportunity. Take a hard look at your production process. Can you replace any expensive ingredients with cheaper options that won’t affect the product? Outsource your manufacturing if possible and prudent, and do some research to see if you can find new suppliers with better prices. Also consider amending your contracts with suppliers: for example, offer to extend the contract length in exchange for lower prices.

But a business can’t cut its way to prosperity. It must also enhance revenue. Goldin suggests optimizing the price you charge (possibly by passing higher costs along to consumers) while also attempting to increase sales volume. Promotional activities can be a good investment: A sales slump can be a catalyst for more effective marketing.

Seek out new niches or channels to pump up sales. For a retailer, this could mean looking into specialty food stores or food services. Companies dealing in fresh foods could research expanding into the frozen arena. “You really have to explore the gamut,” Goldin says.

Looking deeper

Reacting to price increases may only be addressing surface symptoms, however, says Eric Flamholtz, professor of management at UCLA's Anderson School of Management.

“It’s not just the question of 'Costs are going up, how do I handle this? Do I negotiate a little better?' That’s only going to be a transactional perspective, as opposed to a management perspective,” Flamholtz says.

He suggests looking at the big picture – the current environment, your competition and industry trends – and then figuring out something unique about your business to build on. For example, Bell Carter Olive Company became a dominant player in the black olive industry by focusing on being a low-cost producer, which required a reassessment of both its business operations and its raw material purchases.

Once you've decided on a course, evaluate all aspects of your operations and determine how well they meet your company goals. That means taking a hard look at your market position, the services you offer, your operational and management systems, and even your company culture.

“What he really has to do is to step back from the immediate problem, take a more fundamental look at his business, and do a strategic assessment,” Flamholtz says.

Adjusting your business model

Judith Moore of Charleston Cookie Company has been battling cost increases all year. Her five-year old South Carolina company, which does around $1 million in annual sales, has seen the price of a 50-pound sack of brown sugar rise from $19.95 before Christmas 2007 to $26.95. Flour is up 25%, as is the European chocolate that gets folded into Moore’s double-fudge chip brownies and white-chocolate pistachio cookies. The falling dollar made importing from Europe a pricey proposition, so Moore is looking for a less expensive domestic chocolate producer that can provide the same level of quality.

She is also taking advantage of her growing wholesale business, which accounted for 40% of total sales in the past but will reach 50% by the end of 2008. Moore is leveraging her larger volume of purchases to negotiate better rates for ingredients.

But she’s not content to sit still. The company recently attended the recent Fancy Food Show in New York and came away with leads at four major wholesalers.

Moore is also sinking money into upgrading her company's Web site, an initiative aimed at increasing online sales. A new, monthly e-mail promotional campaign will cultivate existing customers.

Web sales currently make up 20% of revenue, but Moore plans to double that in 2009. She's hoping changing consumer habits will play into her online growth strategy: “It’s entirely possible given the price of gas that people may shop more online now than they are shopping in person," she says. "So that could be timely as well.”

Hone in on your ideal customer and practice cost-effective marketing.

Tom Dunlap, La Verne, Calif.
I own a five-year-old Internet business that sells about $100,000 worth of printer toner a year. Our clients stick around due to the savings we provide – they typically cut 30% to 50% in costs – and our customer service. We’d like to stay small, but we also want to attract more customers. How can we accomplish this without spending much money? Advertising doesn’t seem to be cost-effective, and hiring salespeople hasn’t worked in the past.

By Leonora Chu, Fortune Small Business contributor
Dear Tom: Let’s try a visualization exercise. Before you attempt to attract more clients, write a description of your ideal customer. Spencer Tyler, co-owner of the Los Angeles branch of OneCoach, a small business growth consultancy, says it’s probably the person who spends the most, complains the least and sends you referrals.

Next, hone in on exactly what that client wants. It could be guaranteed product in stock, or hassle-free returns and free shipping. Once you’ve scribbled down these ideas, look at your list – that’s your marketing message.

Completing this strategic exercise will help you to maximize your marketing dollars and initiate higher response rates from new customers, says Tyler. Rather than casting a wide net for any customers, you’ll craft a pitch that’s directed towards the ones you want. “You’ll end up spending less and making more,” he says.

Now that you’ve got your message, what do you do with it? Tyler advises you to launch an e-mail campaign to attract new customers and reengage past clients. If you’re looking to expand your list of contacts, consider purchasing a targeted email list of potential customers from a broker.

Another way to expand your customer database is to form partnerships. Get in touch with complementary service providers such as printer manufacturers, paper suppliers or telecom equipment providers. This way, you can split marketing costs and offer multiple products at once.

Doug Williams, a Vancouver, Wash.-based market consultant, advises you to register for pay-per-click advertising with major search engines. Because you pay only when someone visits your website, pay-per-click offers a cost-effective marketing tool.

You should also focus on search engine optimization, he says. Improving your placement on search results will drive traffic to your business. You can hire a consultant to analyze your site and make suggestions, but there are cheaper ways to work on your SEO.

Start by making sure your home page contains plenty of keywords that characterize your business. The text should appear in the upper quartile of the home page. “Keywords at the bottom of the page won’t come up high on search engine rankings,” Williams says. “You can hit the sweet spot by using just 400 to 600 words of text.”

Another inexpensive way to get noticed is through social media. Set up a blog to share your expertise with potential customers. Williams’ ideas: Write about what to look for in a toner supplier, the differences between different types of toner cartridges, and the pros and cons of buying versus leasing copiers. “People use blogs when they’re looking for information, so it’s about branding yourself as the authority or expert,” Williams says. “Everyone likes to buy from the authority or expert.”

You should maintain a consistent theme and schedule with your posts, says David Jaeger, the president of About Results Marketing in Los Angeles. Blogs are search-engine friendly, so posting frequently will help you pop up higher on results. “If you invest 10 to 15 hours a month blogging, you should start seeing an increase in your rankings and an increased readership within two to three months,” he says. Considering the low cost of blogging, that’s time well spent.

How to create an enticing job posting and weed out the weak candidates.

Scott Zimmer, Owner and President, AAA Labor Minneapolis
Where can I find a top-notch sales manager (who would also be the sole salesperson, for now) to help me expand the clientele for my temporary-staffing firm? I'm willing to offer a very competitive pay package, but it's difficult to find skilled, experienced candidates.

By Anne Fisher, Fortune Small Business contributor
Dear Scott: As sluggish as the overall job market has turned, demand for the best salespeople is holding strong, so they have plenty of opportunities to choose from.

Kathleen Steffey, owner of a Tampa-based sales-recruiting firm called Naviga Business Services, wonders if your job postings contain enough information to entice a top sales pro. The ads should "mention your sales quota if you have one," she says. "That will scare off the ones who can't meet it. You should also describe exactly what business you're in, your company's culture, and how much experience your ideal candidate should have. For a salesperson who can take the reins and grow revenues, that would be about seven years minimum." If you're willing to let the person telecommute occasionally, she adds, say so: "That's important to a lot of good salespeople."

As you assess candidates, Steffey says, look for "someone whose references say they met or exceeded their targets. Don't believe anyone who makes excuses, blaming the tough economy or some other factor for not meeting their goals." Before you sit down with applicants for the job, Steffey urges you to read Topgrading for Sales: World-Class Methods to Interview, Hire, and Coach Top Sales Representatives, by Bradford D. Smart and Greg Alexander. Its compact 113 pages will tell you, Steffey says, "everything you need to know to make a great sales hire."

Henry Glickel, owner of Sales Recruiters in Salem, N.H., offers one more tip: Once you find a strong candidate, don't hesitate. "Lots of companies are reluctant to hire with only one or two good candidates, so they leave them hanging for weeks while they interview more and more people. But if you take too long to decide, the best people will go elsewhere."

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Suresh, Duarte, Calif.
I have an offshore call center in India. I am currently serving four clients with exceptional service. They have been outsourcing their orders and customer-service operations to us for the past three years. I expanded my operation but I don't know how to increase my client base. I purchase potential client leads from different vendor sites, but the leads are not that effective. Any idea on how we can increase our client base?

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Before courting investors, make sure you prepare your pitch

Dan Henderson, Houston, Texas
Our company is growing very rapidly – sales should exceed $40 million in 2008, up from $11 million in 2005. Though we’ve had the funds to acquire smaller companies, our latest acquisition required some creative financing, and it’s becoming clear that the next phase of growth will require additional capital. What is the best way to draw interest from private-equity firms?

By Myrlande Davermann, Fortune Small Business contributor
Dear Dan: Sometimes a business can grow so quickly, its owners forget they’re no longer running a startup. Jeff Henningsen, president of ACG Houston, an organization for professionals involved in corporate growth, says your company is on the verge of entering a new arena – so it’s time to play big.

“In order to grow the next level, you can’t do things the same way you did before,” he says. Henningsen advises you to hire an investment banker, who can help you raise capital and guide you through sales and acquisitions. “A banker will expose your company to the world of private equity in a way that no owner can,” he says. “It will also allow you to remain focused on growing your business.”

Financial advice can be expensive, but it’s a necessary cost.

Whether or not you hire a banker, you’ll need to take steps on your own to prepare your pitch to investors. Emily Mendell, vice president of strategic affairs at the National Venture Capital Association (NVCA) in Arlington, Va., says you must have a comprehensive business plan in hand. The write-up should include an industry and market analysis, financial projections, and a thorough competitive analysis and global strategy.

Once your plan is complete, you’ll be ready to begin the search for investors. Mendell suggests starting with word of mouth. Ask around to find out who’s investing in what sectors. John Taylor, a research and financial-affairs executive at the NVCA, says you should look for keynote speakers and panelists at industry conferences. Active firms who are looking to invest in companies such as yours will send representatives. You can also purchase an NCVA directory, which lists firms by their investment concentration.

Taylor and Mendell advise you to make sure that venture-capital firms are interested in your field of business before you approach them.

“The due diligence process can take several months,” Mendell says. “But it’s very important – both the company and venture capital firm need to be confident that they’ve made the right match.” She suggests looking for a firm that has a similar culture and vision to yours. Venture capital and private equity firms will become highly involved in managing your company, so it’s important to ensure that you click before hooking up.

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Michael Stewart, Clinton, Mo.
I am creating an Internet cafe/ISP/IT consulting company called CyberNation USA. I have been trying to find a business partner that I can really trust to help me expand my business. I can't seem to find people with as much drive and determination as I have. I want to start offering stock as capital, but I'm afraid it will grow faster than I can handle. I really do need some advice. Am I way too pushy, or not aggressive enough? What am I doing wrong?

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Ricky, Orlando, Fla.
I am looking to buy an out-of-state business. The company currently handles hotels and transportation bookings for airline crews and a few corporations. I would like to open an office in my hometown and focus on the film industry and engineering companies who have extended stays in many cities. How can I expand the category of business? What should I expect with this challenge?

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A step-by-step guide to finding government contracts and going for them.

Brian Hall, Westerville, Ohio
I’m a veteran and a minority small-business owner. How do I get more information on bidding for government contracts?

By Blake Ellis, Fortune Small Business contributor
Dear Brian: While potentially very rewarding, procuring government contracts can be a complicated, confusing process. Fortunately, there's a wealth of resources available to help you compete.

Your first option is to seek help from intermediary companies, which are specifically designed to help small-business owners like yourself enter the wide, often intimidating world of contracting – for a fee.

Here’s how it works: you register, and they assess your company to see what you have to offer, how your company differs from others, and how you can best match your strengths with the government’s needs. They'll help you target upcoming contracts for you to bid on. They will also help you with the daunting task of determining a price to bid on a given project.

While these for-profit companies may claim to have the best success at finding jobs for contractors, Chris Isleib, the Pentagon's spokesman for small-business programs, warns that such Web sites are prone to scams, so go only with a reputable agency, and beware of big, vague promises.

Tiffani Clements, a public affairs specialist for the Small Business Administration, agrees, explaining that the SBA provides the same services as intermediary agencies, but for free. On the SBA Web site there are links that will guide you through the process and help you find opportunities, price jobs, and place bids.

Partnering up

If you decide against paying an agency to help you through the contract bidding process but are hesitant to go it alone, pairing with another company could be beneficial. That way, you'll have the experience and skills of two companies to propel you along. Even if you think you can handle contracting without an intermediary’s assistance, partnering may still be a good option for you. Winning government contracts is competitive, so the companies with the best, most relevant references and experience are most likely to be chosen.

Isleib recommends participating in the DoD’s Mentor-Protégé Program, which helps small businesses find larger companies to pair with. You can also search within the Central Contractor Registration database and find contact information for any larger company you may be interested in joining with.

Another way of getting your foot in the door of government contracting is to start out as a subcontractor. This way, you build experience and get your name out in your industry.

Who needs your help?

After you have identified your strengths and areas of interest, you can begin searching for clients. The Small Business Administration'sWeb site is a good place to do this, as it lists local agencies and their current needs. Clements says you should also be checking www.fedbizops.com and the U.S. General Services Administration schedules, which each provide different types of opportunities for federal contracting.

Make contact

Once you find agency opportunities you are interested in, contact the agency to find out what paperwork is required to bid for the contract and what else you need to do to proceed with the application process. Before approaching agencies, devise a plan of attack – prepare questions that will allow you to find out what each agency needs from a contractor, what they are having trouble with, and what, specifically, their goals are.

Try to build personal relationships with people in the agency by providing helpful, organized information about your services. Offering free demos or trials can help prove to the agency that you are capable of undertaking the job. Also, keep in mind that the people at this agency are not the only ones you want to impress. A good reputation is key to procuring contracts, and the more you talk to people in your industry, the more they will talk about you.

Register your company, get certified

After finding the jobs your company is best suited to bid for, you will want to register with the Central Contractor Registration. Since you stated in your question that you are a veteran and a minority small-business owner, Clements says that it would be advantageous for you to become certified as such, which can be done by visiting the Small Business Development Center website’s “SDVOSB Opportunities in Contracting” page. Isleib says that the DoD also has a very successful program for veteran-owned and service-disabled-veteran-owned small businesses; the agency has set aside around 3% of its $330 billion annual contracting budget for these companies. The DoD and the SBA both provide resources for other minorities and women who desire to become certified as well.

One worry many small-business owners have when getting started with government contracting is the potential for being audited or investigated. However, this is a rare event for small businesses, as the government is usually only concerned enough to audit or investigate a vendor on very expensive jobs.

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A staffing agency turns to Ask FSB for growth resources.

Scott Zimmer, AAA Labor, Minneapolis, Minn.
I purchased a 52-year-old industrial staffing agency. Where can I find affordable assistance to help structure the company for growth? There is very little help available for staffing agencies.

By Paul Roberts, Fortune Small Business contributor
Dear Scott: The experts we spoke with said that your best bet for finding help is the American Staffing Association (ASA). The ASA was founded in 1966;  its members account for 15,000 offices nationwide and 85% of the total staffing revenues in the US, according to Richard Wahlquist, who is president and CEO of the ASA.

The ASA represents a broad range of staffing companies – from those offering day laborers to firms that place high paid executives. Industrial staffing is one of the largest segments within the ASA's membership.

Your comment about finding someone to help you “structure the company for growth” suggests that you are looking for the help of a management consultant. A good place to start looking is ASA's supplier index. It's a free, online resource that provides contact information and links to service providers catering to many aspects of the staffing industry. Joining a local chapter of the ASA gives you access to more data, including weekly publications, industry trends, and online educational tools, as well as the ASA's annual conference, which provides networking opportunities, Wahlquist said.

More locally, consider the Minnesota Recruiting and Staffing Association, which provides a wealth of information and training opportunities for its members on issues affecting the staffing industry, including contacts with local vendors and updates on legislative initiatives at the state and federal level. Joining one or more of these professional associations should enable you to find the help you need to start building your business.

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Help, my business is growing!

Should this owner seek out international investors to grow his business?

Jean Luc Gaudry, Los Angeles
I have a unique music Web site on which one can find listings of shows, bands on tour, clubs and venues. I have two questions. I am looking for some investors – what are the biggest mistakes entrepreneurs make when they decide to add an investor to their company? Also, I want to set up a company in Europe and eventually have my Web site branch out all over the world. Is it better to have different investors on each continent?

By Myrlande Davermann, Fortune Small Business contributor
Dear Jean Luc: “Having investors in multiple continents is the last thing you want to do,” says Jim Beach, director of InternationalEntrepreneurship.com.

He cautions that as an entrepreneur you will lose some control of your business – and , potentially, some of your creative freedoms – if you relinquish partial control to investors. Beach, a former entrepreneur himself, says the biggest mistake he has seen entrepreneurs make is giving up too much control.

“Sometimes, it is better to grow small and slow,” he says.

To help you strategize for breaking through to international markets, Beach recommends hiring a college student whose task is research the international potential of your Web site. “Why have expensive talent, when you can have passionate talent?” he says. He also suggests going on Facebook and Craigslist to scout out young talent eager for music-industry opportunities.

“Investors are looking for a proven business model,” Beach says.

His advice: “Make the U.S. profitable before you branch out internationally.”

Raj Khera, co-founder and CEO of More Business.com adds: “Investors will want to know how your company meets a demand and how their investment will grow. Regardless of their location, you should seek 'smart' money."

Smart money, as he defines it, is an investment from people who know your space and can open connections and channels to help you grow.

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Get the right marketing tools to send your business through the roof.

Rosie, Saint Cloud, Fla.
I need a professional presentation booklet for my roofing company for sales expansion. How can I go about getting this done?

By Myrlande Davermann, Fortune Small Business contributor
Dear Rosie: The best way to approach getting the right marketing materials is to find an advertising and marketing writer who specializes in working with small businesses. Get an expert with a track record in your particular industry, too, says Robert Middleton, owner of Action Plan Marketing. He stresses that the person you employ should have specific details on your company and your goals, so that they can give you a focused marketing message.

“Have a presentation that shows all the benefits of using your company. Include testimonial quotes, before and after pictures and then a little bit about your company.”

Middleton says business owners often hire only a designer for their promotional materials. That’s the wrong way to go about it. Create the content first, recommends the marketing coach: “Designers will make it look nice, but since they often know little about marketing, your presentation will not have the information and ideas that it needs to do the job.”

Allison Nazarian, founder and president of Get It in Writing, a professional copywriting service, agrees.

“You always have to remember that you are trying to sell something," she says. "The book can look beautiful, and the writing can be great, but always keep in mind that you are in the business to sell your services.”

Nazarian says you should have a professional photographer take eye-catching photos of work that you have done, and use a copywriter to produce straightforward text explaining your business and why you are better than your competitors. You should also try to differentiate yourself from other businesses like yours.

Decide who you want to talk to

Before you commission marketing materials, Nazarian says, be clear who your intended audience is.:“If you are marketing to a general audience as well as to those in the roofing industry then you might want to create two different manuals.”

To find professional marketing writers, go to your local chamber of commerce or chapter of SCORE, or online, try contacting a group such as Elance, a clearinghouse for marketing professional services such as Web development, creative design and business consulting. Companies with service needs post their requirements to Elance and service providers submit proposals in the form of bids for the work.

Also, Nazarian suggests asking around for referrals: find out who did a job for your competitors and contact that person directly. Finally, you can also check out a professional association such as The American Marketing Association.

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William, Denver, Colo.
This question is a follow-up to "Who gets the name in a business custody battle?"

What happens when the majority shareholder wants to franchise the business, but the minority partner is against it? The minority partner is not willing to expand with her current partner. Instead, she'd like to go it alone. Does this trigger a buyout? Is that the best and only solution?

What do you recommend? Leave a comment with your answer.

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Tips for switching from contract workers to full time help

Rebecca Fountain, Las Vegas
I have a small business I’m starting in Nevada called Slurry Recycle Solutions that specializes in the development of cost-effective and safe solutions for the construction industry. I’ve been using independent contractors and would like to hire a full-time staff because our business is growing. How should I approach the hiring process?

By Julie Freese, Fortune Small Business contributor
Dear Rebecca: Any manager who has hired the wrong employees knows the high cost of a bad decision. The first step to building the right team for your business is to assess what types of workers and skills you need to be successful.

Every expert we consulted agreed that rushing the hiring process is one of the biggest mistakes managers make. Whether your business succeeds or fails depends more on the quality of employees you hire and less on the product you’re selling or the service you’re providing, says Paul Gibson, vice president of human resources at Mattamy Homes.

Before you begin the hiring process, carry a notepad with you as your perform your daily tasks and record what you do, no matter how small or mundane, says Bill Bartmann of Bartmann Enterprises, an entrepreneur and business coach. This allows you to create a complete list of duties that need to be performed by a future employee and help you draft job descriptions.

Then gather the necessary paperwork (applications and tax documents), research background checks, and brainstorm about what type of work needs to be done and the skills required, says Jo Prabhu, CEO and president of 1800 Job Quest.

To cover your bases, hire a lawyer that specializes in employment law. The lawyer can help you draft a letter of employment outlining expectations as well as salary, which will protect you from potential lawsuits, says Gibson. A lawyer will also make sure that your hiring process is following both national and state laws. Also hire an independent contractor to set up your employee payroll.

Take time to find or create your company’s hiring "wow" factor, says Tom Darrow, principal of Talent Connections. You need to advertise your company and the positions you want to fill in a unique manner in order to stand out on the job boards. Mention unique incentives that will attract potential employees, like free lunches once a month or a casual dress code, he says.

Once you are ready to format and post job descriptions and conduct interviews, talk to the independent contractors you’ve worked with in the past. Ask them to write a description of the job they completed, says Prabhu. It will help you identify particular tasks and skills that need to be highlighted in the job description. Don’t forget to address your expectations in terms of computer skills, education and years of experience, she says.

Employee referrals are the best way to find new candidates, says Darrow. Post job listings on your company website and on any industry specific sites that will attract the right potential employees. Ask the contractors to sit in on interviews, says Gibson. They can help you identify whether or not that particular candidate is the right fit.

The interview process can be confusing – potential employees may tailor their resume or their answers to the position, not their skill set. “Resumes aren’t always authentic. You need to read between the lines," says Praghu. Ask yourself if this person needs a job or wants a job. “The employer has to look for what an employer needs, not an employee.”

Since you’re creating a team of employees that need to work well together in order for your business to succeed, conduct a second group interview with potential employees you want to hire. This will allow you to see what the group dynamics are, says Gibson, and how they respond to each other.

Conduct background checks and check references. It is an important investment, so hire a professional to do it, says Gibson. Understand that checks take two to three days to process and will cost anywhere from $100 to $200 per employee, says Prabhu.

To determine that the salary that you are offering is fair, research your competitors, says Darrow. Ask the independent contractors you’ve been working with if they felt their pay was fair.  And if you decide to reject an application, create and send a standardized regret letter, says Prabhu. This will send across a professional message and maintain your company’s integrity.

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A pressure-washing business owner checks with Ask FSB for advice on setting prices for a new line of services.

Sylvia Suter, Brookfield, Wis.
I own a pressure-washing company in the Milwaukee area. I'm interested in expanding my business to pressure wash outdoor business signs. I think signs would be a great niche for my business. The problem is: I have no idea what to charge per sign. Would the charge per sign be according to size? Thank you for any information.

By Paul Roberts, Fortune Small Business contributor
Dear Sylvia: We called around to some of your competition there in the Milwaukee area and, indeed, you would be one of the few power washing outfits – and possibly the only one – to branch out into sign washing.

In general, power-washing companies, which use high pressure water hoses, are focused on the residential market, in which homeowners pay them to clean off roofs or siding that has accumulated dirt, moss and so on. Business signs are new territory, and it seems that few of your direct competitors are contemplating a move into the sign-washing business.

That said, there are some important differences between signs and houses that are worth noting. For one, many signs have electrical components inside as well as lights on the exterior that could break or become wet during power washing. Also, business signs may be elevated, or located in places that are hard to reach, or require special equipment – such as a lift – to clean.

Joe McCafferty, who is president of Exterior Specialists LLC, a power-washing company in Fort Atkins, Wis., said that power-washing signs should be safe, as long as they have a tight seal on them to protect any electronics inside. He hadn't considered sign washing, and is sticking to residential homes for now, where he typically charges customers by the job, unless he is being asked to wash asphalt roof shingles or cedar shingle siding, in which case he charges by the square foot.

Look before you leap

Before you plunge into sign washing, you might want to assess the demand for this new product you're planning on introducing. Are storeowners concerned about the appearance of their business signs? What's the business value to them of a clean sign, and how much are they willing to pay someone else to doing it for them? A simple phone survey of likely customers may answer any questions you have about the demand for such services, before you invest in advertising to promote it, or in new equipment and staff.

The question of how much to charge customers is one that every business owner runs into when launching a new product or service. Your existing power-washing business should give you a good idea of the transportation, equipment and hourly labor costs are for any job you do. Your market research might give you an idea of what business owners would be willing to pay to have their signs cleaned. You can also try calling competitors and seeing how much they'd charge for such a service, if they don't offer one already.

Because most business signs would fall in a pretty tight range of sizes, McCafferty of Exterior Specialists said you'd be better off charging a per-job fee for each: maybe $50. Jobs that required a lift or other equipment, or that couldn't tolerate a power wash, would be priced accordingly, he said.

Assuming you plan for those eventualities, sign washing could provide a welcome new form of income for your business. And, because, signs are much smaller than houses, you may be in a position to do more jobs in a single day, which will increase your take-home pay, provided you price your services right. Good luck!

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