Under the Federal Trade Commission Act, businesses are responsible for claims they make about their products and services. Fiona Mensah, Fiducial's corporate attorney, encourages small business owners to make use of the FTC's Truth in Advertising Laws when it comes to promoting their business.

"It is important to bear in mind that different business sectors have industry-specific regulations to comply with, so it pays to check with the FTC to ensure full compliance," said Mensah. "The age-old adage 'always tell the truth' remains useful under this realm."

For entrepreneurs wanting to stand out in a sea of competition, they often need a niche or gimmick that causes them to get noticed, according to Michael Greasley, manager of sales and national accounts for Fiducial.

"That can be through customer service and building value," said Greasley. "It's showing what kind of value you can provide to the client that the competition can't."

Educate clients -- don't sell them

One example he cited was the branding efforts of Geeks On Call, who are gaining recognition as being experts in on-site computer and network repair due to their imaginative advertising campaigns.

"You've got to bring to your clients that you are an expert in whatever industry you're involved in through educating them -- not selling them," he said. "If you educate them on how you can help them you've got them sold."

On a local level, Greasley noted that this tactic is being used at chamber of commerce meetings where most of the speakers are trying to sell their services while they are educating possible clients on a certain subject.

"They're trying to educate the community on a topic and the community then views them as an expert in their field," he added.

Honesty still the best policy

Tom Schnaidt, a New York-based Fiducial business advisor, has close to 30 years experience working in all facets of franchising, including the operations side and management. When he presents the franchise opportunity to interested candidates, he says honesty is always the best policy.

"My approach is really to tell them exactly how the business is so that they know the good and the bad," said Schnaidt. "Usually that's the best approach in franchising. You can't really paint a rosy picture because we don't know how a prospect is going to operate and at what rate they're going to build their business."

Playing an integral part in the decision-making process is the reason why candidates want to own a franchise. It has to be big enough to carry them through the start-up period. Being up front with candidates through the entire process helps reassure them that it's a viable opportunity.

"Clients are not naïve," he said. "If they feel they've been told a tall tale then they have a choice and won't come back and patronize the firm."

Schnaidt wishes the approach to truth-in-advertising could be applied to the automotive repair industry where just about any driver can relate to having experienced some problems from less-than-forthcoming repair facilities after being involved in an auto accident.

"That's an industry where you've had to get your car repaired and are sorely disappointed," he said. "[Drivers are] never satisfied. We're somehow led down the primrose path. It's a significantly sized industry that needs more scrutiny."

Experience provides an edge

Fiducial business development specialist Terry Smith is another sales veteran with three decades of experience. When making a presentation to potential clients he tells them, "Why would we work this hard to get new clients and not promise what we're going to do?"

Perhaps the strongest selling point for small business owners wanting to capture more of their respective market, Smith said, is playing up the fact that they've been in operation for decades.

"They wouldn't be in business after 20 or 30 years if they didn't do good work," he said.

As Gene Polley, a senior business advisor in Fiducial's San Diego office observed, you don't have to be dishonest when making your sales pitch but you certainly want to come off enthusiastically.

"If you can't trumpet your own business, whose can you?" asked Polley. "On the other hand, if you're putting out an advertisement you don't want to be lying."

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STEPHEN PAREZO is the Media Manager for Fiducial.