I would love to hear from the rest of the “posse”.

Regarding differentiation…
The simple idea that separates me from my competitors is that I specialize in the unique needs of online-only physical product sellers. I am therefore positioned as the first in this category and will become a specialist for ecommerce retailers.

Is the market real?
It has become common knowledge that the ecommerce industry is growing by leaps and bounds. Many of these new companies are sole proprietors who are starting up in their garages. I want to find them at the exact point when they are successful enough to move from part-time garage to full-time business. How will I do this? I don’t know yet, but I do know that I’ll begin my own marketing by simply telling everyone I know that I can do bookkeeping for Internet businesses.

I would prefer to begin servicing customers I can meet with locally (Dallas, TX area), but the only geographic limitation I will have is inside the United States.

I love the idea of focusing on the problem of cash flow. It’s a major concern of mine right now! Part of my crash course in bookkeeping includes learning how to analyze the financial statements I will create from the basic record keeping. The only functional difference between a bookkeeper and a CPA is that a CPA can conduct an independent audit. Everything else between those two roles is a matter of education. I have narrowed my focus to online retail, and I plan on learning everything I can regarding this special niche. Of course, I will not begin advertising myself as an expert, but I can identify myself as a specialist, and learn as I go. By joining the American Institute for Professional Bookkeepers I will have access to the Member AnswerLine, which can help me anytime I need with a quick phone call.

On to the name, logo and tagline…
“ebundance”
It’s unique. Maybe the e- prefix is not so fresh anymore, but it sure hits my niche market right on.
It’s short at one world.
I’m not sure it is memorable. How do I test this? “Abundance” is a real word, and the e- is a common prefix, so it’s not a stretch to think people will recognize the company name without becoming confused.

It’s not perfect, so I’ll need a tagline. Here are my favorites. What do you think?
*helping e-tailers plan and manage cash flow
*helping e-tailers boost their power over profits
*improving the e-tailer’s power over profits
*maximizing the e-tailer’s power over profits
*optimizing the e-tailer’s power over profits
*extending the e-tailer’s power beyond profits
*increasing the e-tailer’s power beyond profits
*extending the e-tailer’s control over cash flow
*improving the e-tailer’s control over cash flow
*increasing the e-tailer’s control over cash flow
*supporting the e-tailer’s control over cash flow

Questions about these taglines: Should I be “helping” or doing an action (like optimizing) for the e-tailer?
I can give them power over their profits or control over their cash flow, but power just sounds more, well, powerful.

I really appreciate your criticism. You are making me think.

Like many – or should I say most – entrepreneurs, our bookkeeper friend has jumped the gun. He immediately wants a name, logo and tagline but has given no thought to how he will differentiate his business from his competition.

Ask yourself, is the market real?

I see no indication that our friend has determined whether there’s a real market for this type of service. He has not specified the geography of his business, but I assume he’s offering this service over the Internet to e-retailers no matter their location within the U.S.. Alternatively, he may be attempting to establish relationships with e-retailers he can service face-to-face locally.

I would be surprised if even the most dedicated e-commerce retailer would look to the web for accounting/bookkeeping help. Just like legal counsel, I suspect a trusted accountant is one with whom you want a personal and local relationship. (There were no web searches for “e-commerce accounting” or “e-commerce accountant” according to Word Tracker).

But let’s assume there is a market, and it’s one that a sharp person with a “crash course” education in bookkeeping can serve.

How do you differentiate that business?

You start by finding something potential clients want that competitors aren’t providing. At least competitors aren’t promoting and making their differentiating strategy. That’s why I suggested concentrating on the one thing that worries every entrepreneur: cash flow.

If your business can establish and promote systems and procedures that enable a small business to weather the storms of poor months, if you can offer solutions and advice that will help them become more financially stable, you will certainly differentiate your service from ordinary bookkeepers. If this is beyond your area of expertise, then find another way to make your service unique and valuable while also being different from your competitors. (Use the search box in the upper right for “differentiation” to see suggestions about this important subject.). But before using any differentiating concept in your promotions, be sure you can deliver.

So what about a name, logo and tagline?

They should evolve from the differentiation (positioning) strategy. The name is particularly important in this branding approach. It should be based on these criteria:

Allude to the differentiating concept without being descriptive or business-defining.
Be unique and fresh.
Be short.
Be memorable.

With the perfect name, a tagline shouldn’t be needed, but that’s seldom the case. The tagline, if needed, should also arise from the positioning strategy and should re-enforce the name.

A logo needn’t be a big deal for a small service provider. The name rendered in a unique but legible typeface, perhaps with some unique kerning or letter combinations, should do the trick. You may wish to “box” or reverse the type into a solid background as well. Choose a color you like and then use it consistently. If you decide on an icon to accompany the signature treatment, be sure it’s not just another accounting cliché because that’s the way your competitors think.

So, best of luck entering a business where the basic service is identical to you competitors, where most new business comes from referrals, and you’ll find many not believing they require the services you offer.

For a name I’d suggest “Numbers”. It’d different and easy to remember. It drives from the fact that I and many others are not “Numbers” people – but I admire those that are.

I’d wait on a tagline, to see where this discussion goes and see from there. But, essentially I’d say don’t get too clever and just state what you do.

That’s my early morning thoughts for now.

Ed