How to stand out in a crowded field without spending loads of money on advertising.

Jenny, Deer Park, N.Y.
I own a small beauty shop in a mid-sized town on Long Island, New York. The problem for me is the competition: In the past five years, three more beauty shops opened around the five-mile area, and my business started to sink two years ago. How do I stand out from a crowded field without spending tons of money on advertising?

By Lenora Chu, CNNMoney.com contributor
Start off by giving some serious thought to what really differentiates you from the competition.

Develop an “elevator speech,” says Willis Turner of the Richmond, Va.-based marketing consulting firm Huntsinger & Jeffer. That’s a 30-second answer to the question, “Why should I come to your shop instead of your competitors?”

Do you have highly trained stylists with more experience? Do you specialize in certain types of service? Are you better on service details like remembering names and birthdays?

Once you’ve identified a few key points, Turner says, focus on them again and again with your customers.

“Repetition is the key to success,” Turner says. “Remember, just when you start to get tired of your message, that’s when your customers and prospects are really beginning to notice it.”

The goal is to jumpstart a word-of-mouth campaign. No form of advertising is more effective, so make sure every client leaves your shop with a reason to tell her friends how great you are, Turner says.

Then give your customers an incentive to keep coming back — and to refer their friends.

For example, you could offer a referral program and print special discount cards for clients to give to acquaintances. Both the new customer and the referring client would be eligible for the discount.
You could also borrow tried-and-true methods of inspiring customer loyalty from other service industries, suggests Steve Winston, a South Florida marketing and communications consultant.

Start a frequent-visitor rewards system, much like the airlines’ frequent flyer programs, suggests Winston. Customers can earn a set number of points for each treatment, then win free services when they reach a certain threshold.

Like restaurants, you could post daily or weekly specials on a blackboard in the window to draw in traffic.

Or you could distribute discount coupons in your local area, like many home furnishings stores or take-out restaurants do. Try hand-delivering coupons to a targeted group of people, Winston says, such as teachers at a nearby school.

Lastly, make sure you have a brochure that lists your services and your strong points relative to your competitors.

It may cost a little money to produce, Winston says, but if done right, it will stand as a record of what makes you different in a crowded field.

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Tech advice for a mobile chiropractor who wants to take his business to his clients.

Edgar Facuseh, Miami, Fla.
I have a mobile chiropractor business. Recently, I came across an electronic medical records program that does everything I need, from notetaking to billing to patient scheduling. Best of all, it’s Web-based. I have a list of all the portable equipment I need for the chiropractic part. The only equipment I’m not sure of is the technical communications equipment required: What do I need to be able to carry around my laptop and be able to get online from any location, be it a patient’s home, an office or at an athletic event? Also, what cell phone brand and service can I purchase that can work alongside my laptop?

By Shara Rutberg, Fortune Small Business contributor
Dear Edgar: First, you’ll need to decide what type of smart phone or PDA will best serve you and your chiropractic business, says Javier Barbeite, information resources manager for the South Florida office of the Small Business Association.

“The fork in the road for phones comes down to a few basic choices: a Microsoft (MSFT) Windows-based phone, a Palm-based phone or a RIM Blackberry,” he says. Windows-based phones (or, if you’re a Mac user, Apple's iPhone) have less of a learning curve, as they look similar to your desktop. Palm products, like a Treo, “are usually something a computer geek will go for, it’s far more customizable, with over 10,000 different software programs you can add,” Barbeite says. A Blackberry is really geared toward heavy e-mail users; it's for “people who need to see every e-mail as it arrives and be able to respond immediately.”

Most likely your phone will be operating separately from your laptop. “Only in very, very specialized cases do you need to really link into a laptop, we don’t see a lot of people out there doing that,” says Barbeite. To access the Internet, the most reliable and efficient method he’s seen in your area is the Verizon (VZ) broadband Internet access card.

“Think of it as a cellular phone modem, a card that slides into your laptop,” he says. You buy a card, along with a contract, the same way you do a cell phone. Customers who already have a cell phone contract with Verizon get a significant discount, so you might want to consider switching if you currently use another carrier.

Communication is key, says Dr. Jeffery Solomon from Mobile Chiropractic. While working as the chiropractor on the set of the movie Miami Vice, Solomon was inspired by the portability of the movie industry: crews are able to bring, lights, camera and meals for 300 to wherever they shoot. He has since designed four high-tech RVs customized for use as mobile chiropractic offices. His book Guide to Mobile Chiropractic, available through his Web site, outlines the specifics.

Solomon  uses his mobile communications network to send out e-mails as he arrives at corporate parks or other large clients. “I can send out a message saying ‘hey, we’re arriving, if anybody needs us,'” says Solomon. “It increases the volume and really keeps the flow going.” For client records and notes for insurance companies, “my voice dictation program has been a spectacular aide.”

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Anonymous, Alburn, Ala.
My wife is a registered dietician, which is a professional degree. Does this make her exempt from overtime per Section 13(a)(1) of the federal Fair Labor Standards Act? I ask this because her boss recently put her on mandatory nine-hour days for five days a week. I don't feel this is right, but after reading your September 24, 2007, article by Anne Fisher ("Do salaried workers get overtime?"), I fear she may be exempt by the FLSA exemption of employees "employed in a bona fide executive, administrative, or professional capacity." She isn't an administrative figure (i.e. anybody's boss), but her professional degree makes her fall into the same category as a doctor or pharmacist. I feel her boss is wrong in doing this, but I'm not sure enough to say anything. Can you please help clarify the situation for me?

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

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To rent out empty rooms, turn to local media and Craigslist.

Sherri Birdsall, Gensis Medical Education Consultants, Orange, Calif.
I work for a business that teaches continuing-education courses for nurses in Orange, Calif. Most of our classes are conducted on weekends, which means two beautiful classrooms sit completely unused most of the week. I’d like to rent them out to bring in extra money. Any suggestions on where to start?

By Kathleen Ryan O’Connor, Fortune Small Business contributor
Dear Sherri: If you’re planning on playing the role of part-time landlord, you might be tempted to contact a professional for help. But Adam Brett, a realtor with RE/MAX NOC in Fullerton, Calif., says that if the space you’re renting is small, you’re best off doing it on your own.

Instead of trying to discern who might need an empty classroom during the week, put the word out and let renters find you. Posting the opportunity in local media outlets and community forums will help you cast a wide net for tenants. You should also consider putting up fliers at gathering places such as the public library.

If you decide to go the newspaper route, contact the Foothills Sentry, a biweekly newspaper that publishes exclusively in your area and sells space for advertisements. A good-sized display ad costs just $17, while a straight classified posting costs $5 per line. The publication goes out to about 45,000 single-family homes.

Another option is the Orange County Register, a large daily newspaper. The Register has a much greater reach than the Foothills Sentry – the average weekday circulation is about 250,000 copies – but all those extra eyeballs will cost you. A five-line classified ad that runs once on Sunday and online all week goes for $119, or $160 for two days.

Newspapers and libraries are good forums for advertising rental space, but your best option, says Brett, could be Craigslist. Posting an ad in the “office/commercial” section of the site, which is listed under “housing,” is completely free. Brett also advises you to look for other posters on the site who are trying to rent similar properties (you can enter terms such as “classroom” in the search space to find these ads). E-mail them to see if they’ve had to turn away any interested parties, and ask them to pass along your contact information. Many Craigslisters would be happy to help.

While California real estate is still taking a hit, “the lease market remains very strong,” says Brett. With a small amount of effort, you stand a good chance of finding a tenant who’s looking for a classroom of his or her own.

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Ask FSB's expert tips for publicizing your products to the national media.

Andrew, Agel Enterprises, Provo, Utah
We’re a young company with distribution in more than 40 countries. We are winning numerous national and local awards and feel our innovative gel nutritional supplements tell a great story. However, we’re having a difficult time getting our message placed in the media. How do companies utilize national media? We have everything in place for a great story – innovative products, hyper-growth, overcoming the impossible, redefining an industry – but do not necessarily know the best way to get national publications interested. What can we do better?

By Shara Rutberg , Fortune Small Business contributor
Dear Andrew: Review your communications effort, top to bottom: Make sure your public relations programs are as cutting edge as your nutritional supplement gels.

“The age of media is changing; just blasting out info on a product – even if it’s the most innovative, coolest thing ever created for the human race – won’t work because there is just so much information out there,” says Michael Grass, owner of The Intrepid Group, a Salt Lake City-based public relations agency.

Today, you must target your audience and target the media you use to reach them.

“You need to sit down and understand exactly who your target audience is and what influences them,” he says. “Then, build relationships with members of the media. Actually try to meet with journalists and show them the product, don’t just send words. If you really want to reach your audience you need to build those personal relationships one at a time, rather than blasting out press releases to 500 people.”

Make sure journalists understand your product. Use marketing and public relations professionals to communicate your message. Don’t try to do it all yourself.

“With a product like yours, one of your challenges will be selling a new item that consumers might not grasp,” says Michael Cherenson, chairman-elect of the Public Relations Society of America and partner at Success Communications Group in Parsippany, New Jersey. You have to appeal to the audience – and the journalist – on terms they can relate to, he says.

“For example, I don’t wake up in the morning thinking about new nutraceutical products, but I do think about how I can get healthier,” he says.

Put your pitch in more human terms, play on emotions. “Tug at the heartstrings,” he suggests. Cherenson advises focusing on real people the product is helping, and on third-party endorsements.

“The bottom line is that you’ve got to give the media something new, interesting and emotional that resonates with the end user,” he says.

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Forming a corporate entity can be financially and legally advantageous, but check out tax and insurance considerations first, the experts advise.

Jennifer, Flagler Beach, Fla.
I am a licensed professional (a mental-health counselor) doing contract work paid under a 1099, for tax purposes. Can I remain self-employed, or do I need to set up as a professional association, an LLC or a corporation? Are the tax rates different?

By Herman Wong, Fortune Small Business contributor
Dear Jennifer: Nothing beats being your own boss. However, there are myriad legal and tax issues to consider when going it alone, and a more sophisticated business structure can be advantageous for several reasons.

For example, there’s the question of liability. Counselors must carry liability insurance for healthcare providers in the event of a claim by a client, says George Drobinski, president of the Florida Mental Health Counselors Association. But “designating yourself a [professional association] or a limited-liability corporation is wise, as it will provide a buffer of protection to her personally from the actions and debts of the corporation,” he says. Such an entity absorbs some, though not all, of the litigation risks.

On the tax side, self-employment tax is the same as Social Security and Medicare, so no matter what business form you choose you will pay the equivalent of 15.3%, says Gene Fairbrother, lead small-business advisor for the National Association of the Self-Employed. A corporation could help distribute business profits that are less taxing, but there are numerous factors to work out. Complex tax issues with professional associations probably make them a less attractive option, Fairbrother says. You will need professional counsel before choosing.

The cost of maintaining a separate corporation or LLC is not insignificant, says Grafton ‘Cap’ Willey of accounting and consulting firm Tofias PC. Corporations must file a separate corporate tax and payroll returns and W-2s. Some states have minimum taxes and filing fees for corporations of LLCs that run as much as $1,000.

Consult with a legal and tax expert to crunch the numbers and find the most suitable vehicle.

“The key is that before anyone decides on their legal structure, they need to closely evaluate their tax positioning,” Fairbrother says.

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Gala Ufim, Bergenfield, N.J.
Our dental lab is a small family business. We try not to increase our customers’ fees because of the weak economy, but our minimal annual fee increase does not cover the rising cost of production. How can a small dental laboratory face increasing costs of materials and labor while keeping the customers happy at the same time?

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

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Ibiam, Nigeria
How can I create an attractive package for my soap and deodorant product?

By Kathleen Ryan O’Connor, Fortune Small Business Contributor
Dear Ibiam: It may sound like you’ve already done the hard part – creating a product you feel is ready to hit store shelves. That’s an accomplishment to be sure, but it’s only the beginning.

Packaging a product correctly and attractively without breaking the bank is harder than it looks, says Karen Proctor, a professor of packaging science at the Rochester Institute of Technology – and it’s something 99% of small-business owners fail to consider properly.

Take the woman who came to her to help find the right package to ship her locally famous cheesecakes. Poor packaging was turning the eager entrepreneur’s dreams of becoming the next Mrs. Fields into a nightmare. Half of the cheesecakes she shipped arrived damaged.

“Customers just sent them back,” Proctor says. “It was really sad.”

Where to start? First, do your homework. Especially for personal-hygiene products, there will be certain regulations you must follow. The last thing you want to do is order a huge lot of packaging only to find you haven’t followed legal disclosure requirements for ingredients. Another consideration: Your packaging needs to be sturdy enough to get the products safely to vendors.

“What I recommend is to always survey the market and see what the competition is doing,” says JoAnn Hines, also known as the "Packaging Diva."

“The biggest issue you’ll face is finding a vendor who can supply in small quantities,” Hines says. Custom-designed packaging runs anywhere from a minimum order of between 10,000 and 100,000, which is not at all where a small-business owner should start.

Next step: Once you’ve figured the type of packaging you need, find out what it’s called in the industry and start a Web search for vendors. Both Hines and Proctor note that the Internet is the best source for finding vendors who can specialize in small quantities. Hines recommends starting with as little as 25 units.

“I always encourage people to do their research and do their homework and come up with something they are happy with, but don’t go overboard tweaking every final detail. It’s probably going to change,” Hines says.

And cash-strapped upstarts shouldn’t be afraid to use their creativity, says Hines, who recently gave a speech to a group of soap-making entrepreneurs in Vermont titled, “Got Soap? How to package it simply, effectively and within budget.”

Are you selling something that everyone else is packaging in a typical glass jar? Go with a beautiful tin. A rudimentary search found one promising packager, Brambleberry, selling plain plastic soap pumps for as small a quantity as 1 bottle for a $1.10 or a case of 315 for $141.75.

Proctor stresses the benefits of plain packaging combined with customized labels. “That’s one of the big things to keep your cost down,” she says. The label itself can be expensive upfront, but you apply it as needed and it can be changed far more easily than, say, 500 preprinted corrugated boxes with a logo that just isn’t working.

And speaking of secondary packaging, Proctor warns this is another area that can get tricky. Most small-business owners will be using UPS or FedEx-type carriers to get their product out, so they must spend time and attention on make sure it arrives in pristine condition.

“Product damage is serious,” Proctor says. “No one wants a dented carton of bar soap.”

And the product must be able to travel inside the packaging: Proctor cites a Boston woman making natural lip balms. The product was great, Proctor says, but its softness couldn’t hold up to the varied temperatures it faced as it went through retail shipping chains. In short, a lot of lip balm melted and the woman had to go back to the lab to make her product more solid.

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