Failing to Spot Trends
You can easily get caught up in the routine operations of your enterprise —
after all, they’re what move you along toward your goals. However, if you
keep your head down too much and ignore the broader trends and social
context affecting your enterprise, you’re likely setting yourself up for failure.
In Chapter 5, we examine some of today’s important trends, including wom-
en’s issues, multiculturalism, and corporate social responsibility.
Important demographic changes may also be at work — for example, changes
in age, sex, education, and ethnicity of your target population. You have to
stay abreast of these changes and their effects on your enterprise.
Being Unrealistic about Funding
Research has shown that nonprofit groups are often unrealistic about fund-
ing. They’re inclined to think that finding money to support their enterprise
and its mission is easier than it really is. So, when you’re seeking government
or foundation grants, for example, go into it with a positive attitude, but don’t
count on success.
Competition for funding is typically fierce, and granting programs may be
fickle — they may change their requirements on short notice. By all means
apply for funding, but have alternatives in mind in case you get rejected,
because you often will be. Even raffles, auctions, bake sales, and so forth can
have disappointing results.
To avoid facing impossible financial commitments, be realistic about the out-
come of any funding ventures.Here are a few strategies for setting up a merchant account and finding the
best deals available from banks or merchant account providers:
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Before shopping around, estimate your anticipated number of
monthly transactions and sales volume. If you have a small number of
high volume sales (to booksellers or distributors, for example), your
ideal fee structure may be different than if you’re processing many
smaller transactions and selling individual copies of your book.
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Compare prices and beware of hidden fees. The majority of merchant
accounts charge a percentage of the volume processed. This term is
called the discount rate.
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Ask about rate review policies. After you establish a working relation-
ship with a merchant bank, request a reduction in your discount rate
after several months. Even a small reduction in your discount rate saves
you money in the long run.
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Read all the contracts and agreements carefully! Make sure that you
understand the terms of the contract, including how long the contract is
in effect and what all the fees are. You can even hire a lawyer to review
the contracts before you sign them.
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Make sure that the merchant account you sign up for allows you to
accept orders online but also make in-person sales, if those are your
plans. The merchant account should be able to work seamlessly with
your eCommerce Web site.
