Small Business Blog

Posts Tagged ‘Business’

In order to see if your business is indeed bringing in your wanted profits, you need to monitor your business. However, it is quite daunting for you to constantly check everything yourself. Thus, you need to set up your own business management system.

Setting up such a system can be very easy. However, depending on the size of your business, the actual system may range from simple pen and paper record keeping to whole computer networks keeping track of every branch of your business. Also, you will find yourself changing from one system to another to cope with your demands.

The first step in setting up a management system is determining the individual sections that you need to include. Note that, although you need to monitor every part of your business, not all need to be put under a management system. This is to make the set-up simpler, since some tasks can be handled easily even if not part of your management plan.

The most important parts of the business that you need to focus on are accounting, personnel management and financial matters. These are the ones that play a big part in business operations. You need to determine the size and scope of each area before you can set up an efficient system. Hiring business consultants can help you in identifying these more correctly.

Once you have identified this, you then need to devise the actual management system. This includes deciding on what method to use, implementing it and checking its progress . As have been said before, your decision will be determined by the actual scope of the areas that needed to be covered.

However, you also need to consider if you have the resources to implement such a system. For example, if you don’t have that much money to buy a computer, you will have to stick with pen and paper spreadsheets to do your accounting work. On the other hand, if your business is quite large or has several branches, it would be a good idea invest in a computer system.

Once implemented, you need to maintain the system in order for it to work. Again, with a small business, you can take this task to yourselves. In a larger one however, you will need to hire additional personnel to take over these duties. Remember that you also need to take this into account when planning beforehand to avoid running into problems during implementation.

The last thing that you need to do is assessing the performance of the system. You need to keep a regular report of the business’ progress in order to determine if the management system is indeed working. If you find that something is not going according to your plans, remedy them immediately to avoid the larger problems that they might bring.

Are you ready for the recession? Here’s how you can turn it into an opportunity to survive and thrive: set up your own online business and create an extra stream of income.

Starting a new online business does not mean that you have to give up your current job. You can set it up doing extra work in your evenings and weekends and keep your income from your current job while the income from your new business grows.

So what do you need to do to maximise the chances of success of your new business?

Find something that you’re either good at or passionate about. Then you need to research and plan properly.

Here are 8 questions – answer them in full for your situation and you’ll have the basis of a sound plan for your business:

1. What are your skills?

Can you teach? Can you write? Can you sell? Are you technically proficient?

2. What do people want to buy? In a recession.

Luxuries and frivolous things are not going to be at the top of people’s shopping lists if they are struggling with the effects of recession. Necessities are.

3. Is there a market?

Is there a demand for it? How much would people be prepared to pay for it? What will affect demand for it (e.g. weather, strikes, competition) and how? How much competition is there? How much is your competition charging?

4. What will the process be?

How are you going to make it? How are you going to market and sell it? How are you going to deliver it? How are you going to get people to pay you for it?

5. What are the dependencies?

What type of premises do you need? Do you need outside suppliers – if so for which parts? Do you need licences – if so what licences? Do you need special equipment? Do you need staff?

6. What are the costs?

Premises, raw materials, suppliers, marketing, delivery, license costs, staff costs, lawyers and accountants, day-to-day operational expenses.

7. How much money can you make?

How much can you sell it for? How many can you sell in a week/month/year? What sales channels will you use? How will you promote it?

8. Do you have sufficient funds?

What are the start-up costs? What are your marketing and promotion costs? How long before you can break even? Where is the funding going to come from?

It doesn’t matter what type of business you’re thinking of, going through that checklist is a good way to make sure you’ve got most things covered.

Use the answers to those questions to create your business plan.

And here’s some good news: if you start an online business many of the items above won’t apply.

With an online, affiliate marketing business, for example, your start up costs would be negligible, your delivery and logistics costs zero, you would have no need for special equipment or premises and no need for separate outside suppliers.

But you still need to develop a plan!

It’s important to remember that, whether your business is online or off-line, it’s still a business.

Don’t be taken in by all the promises of easy money online. It simply isn’t the case – if it was everyone would be doing it!

But, as long as you treat it like a real business, you can make a lot of money online.

There are lots of resources available to help you with developing and promoting your online business – just make sure you pick top quality ones.

And beware (and avoid) the snake oil salesmen: those who promise huge monthly incomes for doing just a few hours work a month.

Power Business Cards in the Modern Setting

Modern day businesses seek new and exciting ways to strike an impact to their prospects. So in every possible way, creativity and innovation is a must. And your business card should be first on your list.

The business card is who you are, your business in the outside world. And it is important that every inch of it defines your purpose, your identity. Business cards are very powerful tools. It is what connects you to clients and prospects, for you to be remembered. If you’re wondering why your name, your business isn’t quite remembered in every business encounter, perhaps a short checklist would help in smartening up your business card to something more powerful and up-to-date.

· It serves its purpose: It’s good to recheck every now and then the overall impact of your business card. Try to think of it as a promotion of you and your company too. Check in on your logo, design, color, and material if they all fit perfectly to who you are and where you stand. Also, it pays to go a little overboard to add emphasis. You can choose to emboss or engrave, or even have unconventional shapes and sizes to make it define you better.

· Keeping it Professional: Although people can go crazy with their design and shape, you still have to give your card some dignity. You would want the receivers to call and inquire about you and not just admire an attractive card in their hands. Try to find a balance in keeping it polished but at the same time, with an out of this world appeal.

· Make it easy to understand despite its creative appeal: Try not to forget that although it serves to promote you, it still is meant for the people who receive it. Keeping it simple in captions would put more weight in making people remember and understand you.

· Use power words: Make your words speak to people. Keep them short and simple but persuasive at the same time. Use words that people want to hear and what they can relate to. For example, ‘inexpensive’ or ‘great investment’ would give them reasons to rethink their dealings with their current agent. And eventually, inquire about what better thing your business can offer.

Making the perfect business card requires a little bit of your time and effort, but it is also fun in the process. It is also important to choose a printer that could understand and accomplish your exact, desired output. Nowadays, online printing companies provide full support in helping put your visions into prints. The right printing company can give you an edge from your competitors by creating your sophisticated and impressive yet cheap business cards.

We are all listening attentively about lenders on the radio, television, newspapers, and the Internet of promises to be “small business friendly”, “small business oriented”, wanting to be your “personal small business advisor” and a panoply of packages taking care of all your business needs. What small businesses really need is money, not personal hand caring services. So is there anyone out there really making small business loans? Yes. If you know where to look you can find one.

You can generally categorize banks into: 1) 10% that are actually making small business loans now and are serious about doing so, 2) 70% who will talk to you directly and indicate they are not making small business loans at this time because of the economy, and 3) 20% that slap you on the back, invite you in, and readily take your application. It is the latter group that gives us the most heartburn. It is not unusual after the initial review of your application papers for a bank represented to signal you have a good chance. Overjoyed, you begin to make plans, including executing contracts and receiving quotes for inventory, raw materials, or merchandise. Two months later, after the fourth loan committee review, you get a call that they have decided not to make the loan. The reason has little if anything to do with credit. It is typically something that was never been mentioned before and after reflection, it seems like an excuse not to make the loan in the first place.

Loan brokers such as myself are victims of the same misleading behavior. I cannot tell you how many banks have looked me in the eye and said: “Sure, we are making lots of loans. For unsecured loans of $75,000 to $150,000, we just need a credit score above 680, in business for over a year and a half, and decent financials. Real estate security is not required. We would love to entertain your applications.” Right.

What they really do is pour over the applications and pick 1 out of 100 that has the following fantasy credentials: a platinum credit score that Bill Gates would be proud of and which could support a small country, gushing positive cash flow, little competition, executed contracts stacked high on your desk, then a booming market niche. In other words, someone who doesn’t need the loan in the first place. You know the old adage: banks only give money to people who don’t need it.

It is simply psychology 101. Banks are filled up with loan officers and they have to show they are busy. If their boss walks into their office and sees nothing on their desk, they might be laid off. They have to show they are busy earning their salaries, which means receiving applications and going through the review process. It’s gotten so bad that the other day we had a client whose grandfather helped found the bank, whose father was best friends with the president, and who had received two successful loans before. Even he was turned down. Nor do they tell you the large SBA commercial loan department job layoffs of employees throughout the nation.

To prevent being too caught in this trap, look your banker in the eye and ask these questions:

1) “Tell me honestly. I don’t want to waste your time or mine. I know the credit crunch is quite depressing and there is really no secondary market. Are you actually entertaining small business loans at this time or should I wait.”

2) “How many small business loans have you personally made in the last 30 days?”

3) “What are the loan terms of the last three loans you made, including interest rate and monthly payments, for the amount of loan I am seeking?”

4) “How long will it take before I get a definitive answer?”

5) “Can you briefly describe to me the process I have to go through to get the final approval? Will you be the one making the final decision? What other people superior to you or committees will make that decision?”

But do not despair. There actually are real live prime lenders out there making small business loans. They just need to know where to look. In the next article I will discuss if such loans are available to startups.

It is a great idea that you have decided to start your home based Internet business. To give you the upper edge to stand a few steps ahead of your competition use this checklist to ensure that all of your ducks are in a row and that you get a successful beginning to your new endeavor. First, you have to make sure that you have ample Internet access. As a matter of fact a broadband connection would be beneficial. This will save you a lot of time. Select a business that you are passionate about which will give you the drive and conviction that you need to be a success. Come up with a business name. Some simple brainstorming will help you out with this. Narrow down a few choices and go from there. Look for a name that stands out. Think about some commercials that you have seen on TV lately think about why you remember it and it is likely because they stood out above the rest. This is effective marketing!

Decide on your budget in terms of how much time are you willing to invest and how much money you have to get started? More money is only important for time saving that makes things more effortless. Those things you can do without at first because you need to learn the ropes and make a presence before you send your business on autopilot. When making your budget be sure that you do not include any monies that are needed for everyday life or to manage the household. Choose a domain name and when you do this stick with a name that is relevant to your business. For example if you sell cookies you would want a name like cookiesbyme rather than entrepreneur. There are lots and lots of registries available and some are free while others can cost some big bucks. Start out with the freebies so you can invest any money somewhere else.

Next, you need to set up some email accounts. These are free too, so do not worry. Try to make at least four separate accounts so that you can keep your projects separated easily. Get yourself an auto-responder. There are lots to choose from but just choose the one that best meets your budget. This is actually a very important tool that can either make or break your business. Marketing research indicates that most people will not make a purchase on their first visit to your website. Auto-responders do the follow up with not much effort on your end. It is really important that you make sure that you put some effort forth in developing a follow up message that is of quality.

You should also have a home based business phone. This might not be needed immediately but in time you will need one. Mixing your home phone with a business phone is not a very good idea because you risk the chance of your kids picking up the call; you may tie up your home phone line or even miss a call.

Why do 70% of all businesses fail to survive after one year? Why do 65% of small businesses never survive the 2nd generation? Are you unable to retain great staff? Why it need not cost a bomb for branding your business?

Before embarking upon any business, a good entrepreneur will need to “blue-print” win-win-win business & marketing strategies to ensure business continuity and growth.

This is the most crucial component of your business … even before you start. It provides the fundamental framework & blue print of your business in 6 sections, mapping out your business goals, marketing strategies, operations framework, organization structure, financial viability & business expansion or exit strategies.

There are many complex Business Planning Software sold in the market, which you will need depending on the scale of your business. A simple checklist as below is a good start for you to build upon. One major benefit for crafting your own business plan be it using Business Planning Software templates or developing your own, is that it helps to tune your thought process in exploring the essence of your business.

BusinessFast4ward Business Plan Template

1) Goals with a Timeline – Measurable, reasonable and achievable over a set time period

2) Your Marketing Plan with a Timeline

* Viability studies – Porter’s 5 factors, P.E.S.T. analysis, S.W.O.T. analysis, Target Segment analysis, Product Life Cycle analysis, Value Proposition of products, Competitive Advantage Model, Product Growth Directions, BCG Matrix

* Market Planning – Marketing Mix (4Ps) strategy, Internet Marketing, Integrated Marketing Communications, Marketing Implementation plan, Marketing Budget plan

* Monitor & Review plan

3) Your Operations Plan with a Timeline

* Business Structure, Scope, Regulatory Issues, Plant & Equipment, Production Arrangement, Distribution & Warehousing Arrangements, Credit Terms, Quality Control, Location, Business opening hrs, Commencement Date

* Stand Operation Procedures (S.O.P.) for each business function

* Monitor & Review Plan

4) The Organisation Plan with a Timeline

* Organisation Structure, Skills required, Talent management strategy, Business Succession plan

* Monitor & Review Plan

5) The Financial Viability Plan with a Timeline

* Financial Statement Forecast, Breakeven Analysis, Capital Spending plan, Required investments and spending, Ways to raise $, Additional $ source

* Financial Contingency Plan

* Monitor & Review Plan

6) Business Strategies

• Business Succession planning

• Business Exit strategies

It is important to note that a well crafted smart Business Plan is the first step to solicit funds from Bankers or Venture Capitalists should the need arise.

Your new or existing business must be planned adopting the broad basis in consideration of sustainability, scalability and contingency. Sustainability implies consideration of realistic sustainable longevity of the business. You should also plan well ahead for your business growth, ensuring that the business is expandable via scalability, like the famous “LEGO” blocks. Contingency is the most ignored part of most businesses, be it in unforeseen man-made emergencies like terrorism, or natural disasters and calamities like hurricanes, earthquakes and floods, or simply, unexpected financial crisis.

Hence, the rule of thumb to drafting a good business plan is to adopt a conservative approach both in planning financial and manpower resources. However, also learn to strike a balance and permeate that innovative and curious mindset when drafting your business plan.