How to Start a Referral Business

A referral business is a great choice for starting a small business. You can run it from home, and there are franchise opportunities. There are always businesses seeking advertising, and this is a great way for them to spread the word. Individuals need referrals in many cases, and this is an excellent way to obtain them.

If you're a sole proprietor, you will not need to register your business. But you will need to build a list of businesses to refer to. This article details the best way to go about starting a referral business.

Most of the time this venture requires little investment. The upshot is that you own much of the equipment needed to begin a referral business. You will probably know of many establishments in your area that you can refer people to. Whether you realize it or not, this is a wealth of knowledge.

Difficulty: Moderate

Instructions

Things You'll Need:

• Telephone All-in-one printer Computer Broadband Internet access Business cards, fliers, envelopes Website 1 business mailing list 1 residential mailing list Local Yellow Pages Office supplies such as paper, staplers, index cards

1. Figure out a name for your business and design your business's logo. Before you submit an order to a printer get an honest opinion if it is appealing or not. Once you reach a final draft of your logo, take your concept to a printer and produce envelopes, letterheads and business cards.
   
   In the meantime, set up your home office. Make sure to put things in order where you can find them easily. Order is a key factor when owning a business. Keeping things neat and organized helps you find information easily. Organization affects your profits.

2. Put those mailing lists to work for you. Begin with the business mailing list. You can build a list by using the Yellow Pages and online databases to find businesses that exist in your area. The second list you will want is a residential list so that you can market your service to individuals in your area. This will be a longer list because you will want to tell as many people as possible about what you are doing. This can be timely but will save you money. Another option is to find someone willing to volunteer his time or work for a minimum. Add these lists to two databases, one for businesses and one for residents. This will save you time in the long run.

3. Make your fliers and brochures to market your services. You may hire a professional, but if you are creative and have a grasp of a program like Microsoft Word you can make these yourself. Be as professional as possible and use your newly created logo.
   
   The content and wording is up to you. You can get feedback from friends and family. These individuals represent your market, so consider them your focus group, and use them to get honest critiques on your ideas.
   
   Once you have reached a final draft head over to a copy center and run off a few thousand copies. If you have enough of a budget print both color and black & white copies. It may be cheaper at first to print only black and white copies, at least until you begin to see more of a profit, and response from your ads.

4. Draft an introduction letter to let other local businesses know who you are and what you do. Be clear and concise. Print a copy on your company's letterhead. This is a master copy for future printings.

5. Print envelopes, using the database to automate the address labels. Use the mailing lists you compiled in Step 2. Stuff the envelopes and apply the labels. Another way of addressing the envelopes is running them through a printer. You can achieve this by using Microsoft Word's mail-merge feature.

6. Head to grocery stores and shopping centers in your area and hang up fliers. Leave brochures and business cards in places like restaurants and stores. This is a great opportunity to interact with owners of these businesses. They may be interested in using your services themselves. You can even use bus stops to get your message out to the local area. Take out an ad in the local paper if you can afford it to reach a larger audience.