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The Honolulu Advertiser

Posted on: Wednesday, September 8, 2004

Free advice on giving stuff away

By Rhonda Abrams

Warning: This column is not about making money.

That's right, in a business column, I'm going to discuss why some things you do should not bring you income — at least not immediately. It's time to think about ways to give your products or services away — free.

Anyone still with me? Now I have a pleasant surprise. This isn't just about doing good for others — although that's definitely a prime motive. The fact is, donating or giving away your products or services is also a very good way to build your business. When you involve your employees, it's a very effective method of building company morale and loyalty.

Surprisingly, few of us know how to give. Most of us are uncomfortable when we're approached for a donation or help. Often, we don't know what we should be giving, especially when we're in a service business.

For the owner of a retail sporting-goods shop, it's relatively easy to donate equipment to a Little League team.

But if you're an accountant, and a stranger pumps you for free tax advice at a baseball game, you're going to get heartburn from more than just the hot dogs.

So spending a few moments thinking about how and when you want to give your services or products away can help you feel better and achieve more.

Consider:

• Donating products or services to worthy causes. You may not know this, but attorneys are generally required (by bar associations) to provide some legal services free, or "pro bono publico," which means "for the good of the public." But all of us can — and should — help our communities by donating some of our time or products to help others. My publishing company, for instance, regularly donates books to youth entrepreneurship conferences.

If you don't have products, you can donate your services, perhaps by directly serving some needy individuals or nonprofit groups. You can get involved with community organizations, helping them by providing your expertise. You also can donate your services in the form of gift certificates to be auctioned off for local charities.

One company adopted a local school, donated money to the school and encouraged employees to donate books to the school library. The company also allowed employees paid time off to tutor students. Employees are more committed to their employers when they share broader values than just increasing the bottom line.

But be careful. Many scam artists prey on small businesses by posing as charitable organizations. Be sure you check out the validity of any charity. You can check out charities at the Better Business Bureau Web site at www.bbb.org. And never give a credit card number over the phone to even well-known causes.

• Lower your prices. Sometimes you don't have to give everything away absolutely free, you can just lower your prices. There are a few instances when you might choose to do this — to serve a nonprofit or community group, to serve lower-income customers, or, for strictly business purposes — to attract or keep a desired customer.

Help others succeed. While building my business, I've been fortunate to have many people who have helped me. They have introduced me to key contacts, provided free expert advice, shared resources and provided technical assistance. It's amazing what a gift this assistance has been to me. Now, I try to do the same for others. I don't ask, 'What's in it for me?' Rather, I realize it's part of what it takes to build a community of successful entrepreneurs. And it's my way of repaying all those people who helped me along the way.

You, too, can give by providing assistance to other entrepreneurs. Introduce an acquaintance to a potential customer, or show a novice in your business how to get something done. These informal "donations" don't seem like charity, but they help give back to others and strengthen our entrepreneurial and civic communities.

Rhonda Abrams is president of The Planning Shop, publisher of books and other tools for business planning. She writes this column for Gannett News Service.