Foursquare, the mobile-phone, geolocation-based social networking app that allows users to “check in” when they arrive at businesses and attractions to win virtual badges, meet people and take advantage of special offers, is rapidly growing in popularity.

With currently 725k users and 22m checkins, including a couple headed for the North Pole, Foursquare is expected to keep growing. There’s even been talk that Yahoo might buy the company for $100m.

So, what does this mean for business owners like you?

First of all, if you’re still completely befuddled (and that’s OK, this stuff is pretty crazy), check out Business Insider’s master class on how Foursquare works.

Why should you care about this stuff? Foursquare is definitely growing in and around cities like Kansas City. Businesses who take advantage now by offering their Foursquare-using customers discounts, free stuff — incentives to check in — stand to grab an instant community of customers who are hooked on Foursquare and are out there just waiting for businesses to connect with them. In turn, these customers will promote your business to their friends for FREE through viral word-of-mouth.

Also, Foursquare will soon be rolling out analytic tools to make it more worthwhile for business owners to monitor their customers’ use of the platform.

It’s your time to be an early adopter.

So how do you do it?

1. Verify Your Location

I’ve been checking in to local spots for several months now, and I still find myself occasionally adding an unlisted venue to the system. Foursquare’s database of venues is user-generated and monitered for accuracy by users and people inside the company.

If your venue isn’t in the system, a user can choose to add it. Or, they can check in without adding it, which is what most of them will do — but it won’t do you any good. So, you need to make sure you’re in the system and that your info is correct.

To make sure your info is right, got to Foursquare.com and search for your business name via the box in the top-right corner of the screen.

If you are not in the system, you may add your business by going here.

If your business does appear, but the address or name is wrong, go to this forum and post a correction. It looks rather hap-hazard, but I know it’s official because in the time I’ve been writing this, a few of the corrections that users had posted when I began writing have already been made by the folks at Foursquare.

So, once you’re in the system, it’s time to get customers’ attention.

Continue reading after the jump…

2. Create a Special Offer

Start here to get some ideas for how to conceive of a special offer for Foursquare customers.

The most obvious way to take advantage of Foursquare’s built-in promotional properties is to post a special offer for the mayor of your establishment. The person listed as mayor of your venue is the one who has checked in the most times — don’t you want to know who that person is anyway? By targeting that person and rewarding them for their loyalty, you can pretty much guarantee that your mayor will go forth to the Interwebs and brag to his or her friends, some of whom may begin competing to oust the mayor by checking in more times. For you, this means more people in your business, more conversation online and, ultimately, more sales.

To upload your special offer into Foursquare so that users will see it on their phone when they check in at your venue or somewhere nearby, fill out this online form.

Some ideas (translate to your specific offerings, services, menu items, etc.):

• Free, all-you-can-drink coffee for the mayor.
• Two-for-one lunches for the mayor on Tuesdays, up to parties of six.
• Free cookie every odd-numbered checkin after the first.
• Or you can partner up. Say you own a gym that’s affiliated with a massage service. Award customers who checkin 15 times with a free 15-minute rubdown.

Note, however, that disclaimer at the top of the screen: Foursquare is currently only adding specials to places “where people meet, socialize and linger. Think: cafes, bars, restaurants, coffee shops, museums, theaters, etc.”

If you are the owner of a nail salon, hardware store, boutique, auto repair shop, grocery store, 7-11, etc., you can still take advantage of Foursquare. Check out Step 3 below and apply the ideas to your business model.

3. Create Your Own DIY Offer

Though people will find your special offer more easily if you add it into the Foursquare system, you can also go the do-it-yourself route and publicize a Foursquare offer on other platforms such as Facebook and Twitter, or even via old-school methods like your email list or a physical sign.

Most of these ideas will require users to bring their mobile phones to the front counter (or equivalent thereof) to prove that they’ve checked in, become the mayor, etc.

Some ideas that don’t require Foursquare’s official participation:

• Announce on your business’ Facebook page that the first ten people to check in on Foursquare every morning next week get 30% off their orders.
• Tweet from your business Twitter account something like: “For a limited time, every @Foursquare mayor gets a free large pizza and pitcher of @Boulevard_Beer” and then provide the Foursquare link to your business, i.e. http://foursquare.com/venue/133322
• Make a “Foursquare Leader Board” at your business by printing out profile images of everyone who’s checked in and tacking them to a bulletin board, with the mayor at the top. Give a free latte to people who checkin and 1/2 off the order to people who agree to tweet a picture of the leader board to their friends on Twitter.

Just remember: get creative and provide incentive. Especially in a town like KC, there are thousands of people looking to connect with businesses via social media, but there are still very few business owners who are taking advantage of the open channels that exist.

You could be among the first.

And did we mention it’s all free? You don’t have to pay Foursquare a cent. At least, not yet.

And if you have any questions at all, feel free to email me at jason@lockerpartner.com, hit us up on Twitter, @lockerpartner, or call us at 816-979-1738.