Location Based Mobile Presence Smart for Business

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I recently investigated Foursquare, Google Latitude, Zhiing, Yowza, UberTwitter, and others. I’m not a game guy and definitely don’t use coupons but this mobile presence idea is intriguing to me and should be to you.

In the movie Minority Report Tom Cruise walks by displays that identify him, present a product, and customize the ad with his name. With location-based services what would stop a business from doing this on your smart phone? “Hey Chris, Tony Pizzeria has a new pizza that we think you would like just around the corner from where you are right now.” Also, “Bill with XYZ company is already there eating. Isn’t that a Linkedin Contact you wanted to connect with?”

It doesn’t take a business genius to see that getting relevant information to you as quickly as possible is pure marketing gold.

Location-Based Services Defined

For those like me that had no idea what this technology was, wikipedia defines location-based service (LBS) as information and entertainment service, accessible with mobile devices through the mobile network and utilizing the ability to make use of the geographical position of the mobile.

LBS services can be used in a variety of contexts, such as health, work, personal life, etc.

LBS services include services to identify a location of a person or object, such as discovering the nearest banking cash machine or the whereabouts of a friend or employee.

LBS services include parcel tracking and vehicle tracking services.

LBS can include mobile commerce when taking the form of coupons or advertising directed at customers based on their current location. They include personalized weather services and even location-based games. They are an example of telecommunication convergence. The key result of convergence at a macro-business level is the merger of the telecommunications and media / entertainment industries.

What’s the Potential?

According to Mashable numbers earlier this week from research firm Gartner: the number of users of location-based services is set to double to 95.7 million this year, up from 41 million a year ago, which should result in over $2 billion in revenue.

Tie this with WiMAX 4G and you can easily see that your mobile device will have a capability never seen before in any ecommerce environment including the World Wide Web.

About the Author

Chris is a proven Sales Veteran that currently holds the positions of VP of Sales at DataTel Communications and President of Lottspace.com. Web Designer and established Sales Success Author. Dad

Can you have too much business?

I started a business with a forty thousand dollar loan from a friend of mine. The business meteorically grew to over one million in sales per month within a year. I had nothing to complain about, right? Except… I was rotating my inventory 4-6 times a month. Cash flow issues were the order of the day. I went through three “bookkeepers” and as many accounting programs. Within a year and half I had over 50 employees and 4 locations. We tried to slow things down to only find that there is no “slow” with business. You’re either climbing or you’re declining. Within 4 years this same business failed due to bad accounting advice and practices, poorly designed loans, theft, and lack of a solid core business direction. We grew too fast. I should have planned to fail… let me explain. Banking is a critical piece to the planning to fail approach. You should always have separate accounts for payroll, taxes collected, and any monies pre-collected for future services/product. Failure to do so can be construed as using monies inappropriately. Separate accounts that are clearly defined to what their purpose is (audit trail) leaves no discussion of fraud. A single account leaves you wide open to possible fraud and usage. It would have also made it easier for me to see where my monetary issues were. Business Loans Collateral: This can be confusing. I eventually attained a couple of different type of loans: A business line of credit and company expansion SBA loan. The business line of credit was to help with our account receivables. We would present P.O.s against the line. The SBA loan was for cash infusion to solve store inventory issues. Even though we used these loans for entirely different purposes both had dual collateralized my business. A major screw up to say the least. The SBA loan contract was at least 100+ pages. We were walked through by the processor. We missed the collateral part. This became a “powder keg” later. Personal guarantee consequences:I had personally guaranteed all these loans as we were a fledgling business. My company was incorporated which did not protect me from this liability. I had to personally file for bankruptcy to protect myself and my family. Business loans (SBA) and who you are “really” dealing with: We settled with the banks during our bankruptcy proceedings. My incompetent attorney did not settle with the SBA however. While I knew that there were two parties to the loan I didn’t realize I needed to settle with each individually. Nine years later the FBI shows up and serves papers for my demanded appearance in superior court. They were attempting to collect their part of the loan. Scary times. I would personally never get a SBA loan again. Factoring – Good or bad for business: This is actually one of the better moves I made. I was told to never use this type of financing. As it turns out if I had early on I would probably still be in business today. They would take my P.O.’s, pay me fifty percent up front, collect from customer, and then payout the rest upon delivery minus their fees. For a start-up that was being asked to stretch their cash flow past reason this would have been heaven sent. Taxes Pay your taxes: At the end of our demise we were behind on everything including our taxes. Understand that there is no tax redemption/protection for your business even if you’re incorporated, even in bankruptcy. I personally had to take on this serious burden. Mentors Your business posse: A strong business relationship with a CPA, Business Attorney, Banker, Landlord, and optionally a business mentor is crucial to success. I know a business, especially a start-up business, is focused on designing, marketing, and selling their product/services. This group is just as important to your success. You should have a business posse day one. If I had been on top of this I would have known my accounting practices were flawed, my dual collateralized loans would not have been made, and I would have managed things differently. I did eventually bring in a mentor and a third party accountant later. Unfortunately it was already too late to save a very popular, growing business. What a waste. Life-Business Lesson This life-business lesson was learned years ago. I have had many successes since. I am now being asked to be part of the posse (mentor) ironically. Interestingly this “advice” still applies in today’s market maybe more so. I see advertisements to go get incorporated now, get a quick loan, “don’t think about it, do it now” strategies – “advice”. There are so many repercussions to these actions that need to be carefully thought through. In picking an attorney it can be helpful that they have a strong CPA background as well. Not all CPA’s are a match to your type business. On-staff accountant-bookkeeper doesn’t have to be a CPA but should be hired carefully, preferably graduated from a good business-accounting college, and be able to work well with off staff CPA. Accounting software, initial books setup are so critical as well. And the list goes on. Take my advice, plan like you’re going to fail.

Location Based Mobile Presence Smart for Business

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Can you have too much business?