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Posts Tagged ‘Guide’

Due to the increasing failure of banks to provide an adequate level of commercial funding, the strategies described in this article should be considered by most business borrowers in the initial stages of their commercial financing efforts rather than as a last resort. This article is designed to provide a practical starting point for a commercial finance survival guide, and finding effective guidance for obtaining small business finance help is likely to be a high priority for most business owners.

The necessity for small business owners to adopt aggressive tactics has been created by an ongoing failure of banks to provide adequate business financing options. An important goal for any small business owner is clearly surviving the current business finance crisis. This article will illustrate the importance for small business owners doing whatever it takes to survive in a tough commercial lending climate.

For many commercial borrowers, the option of firing their lender has not yet become apparent. In adopting an aggressive business loan approach that is increasingly essential for business owners impacted by widespread banking chaos, it is unlikely that their banker is up to the task anymore and therefore commercial borrowers should be prepared to look out for their own financial interests. One of the most predictive signs that a commercial borrower might need to fire their lender is when their commercial banker is unable to finalize the business financing which was initially discussed or offered.

The use of innovative financing tactics means that some small business loan options which borrowers previously ruled out because they were too costly or complicated might deserve another look to survive in an erratic lending climate. A key example of a commercial financing strategy which has probably been a Plan B for many small businesses but not their eventual choice for acquiring more working capital is a merchant cash advance program (also referred to as merchant financing and business credit card advances). With a sudden reduction in business lines of credit and an increased requirement for collateral by many commercial lenders, the use of credit card processing to obtain working capital now has more practical appeal for the typical small business owner who needs more cash for their daily operations.

A high priority for any commercial borrower is distinguishing the good banks from the bad banks. An ability to provide required commercial financing options is perhaps the most practical gauge for a small business owner to define whether a bank is good or bad. There are multiple reports confirming that most banks are no longer offering a normal level of business funding. It is reasonable to conclude that if a bank is not providing commercial loans as usual, it certainly might be because they do not have sufficient financial resources for small business lending. On the only scorecard that matters to most business owners, the few good banks will gradually become obvious based on their documented small business lending activities. In the meantime, business owners should expect to need some professional help in finding these few remaining good banks.

A lack of sufficient information can lead to devastating consequences as is often the case in many activities which are guided by technical aspects. Using a a business consultant who is a small business loan expert is a practical way for business owners to overcome a substantial information gap. The current business lending climate is likely to be discouraging for inexperienced borrowers when evaluating banks which are not functioning normally or are providing only complicated (and expensive) small business financing programs. Finding pragmatic solutions can be facilitated by business consultant experienced in the ways of overcoming commercial lending problems.

In all probability locating new and reliable business lending sources will be an essential element in surviving the commercial financing crisis. But in addition to considering new lending sources, new small business finance strategies should be reviewed. There are several other business finance choices which should be evaluated by business borrowers before arranging their commercial loans (in addition to the aggressive financing strategies already discussed). Receivables factoring is a key example. Difficulty in matching the timing of income with expenses is routinely experienced by many successful businesses. Arranging a business line of credit with a bank was previously how many businesses handled this kind of situation. Receivables financing has emerged as a primary commercial finance tool for many businesses because commercial lines of credit are rapidly disappearing as a realistic alternative. Like most of the promising business financing options which can effectively replace current bank financing, small business owners will need to take the initiative to explore and analyze such choices.

From the start, a new business owner gets to know that having a business plan is important when dealing with banking personnel or potential investors. A business plan is also used by business owners and employees to make business decisions and to measure your company’s success. This document, at the least, should outline your company’s goals, and projected expenses, as well as marketing plans and exit strategy. Perhaps with these objectives in mind, many business owners want to know the easier way how to write business plan.

Here are some techniques.

a. Use a business plan template which has blank areas in which you can fill in the relevant information regarding your own business. Although a “fill in the blanks” approach is not a really a serious way to write a business plan and will not help in securing financing or ensure the business’ success, think of templates as a good point to start writing your business plan.

b. Business plan outlines are also a good place to start. Generic business plan outlines can be found in books or on the Internet, but the outline or the business plan’s basic structure should be changed to suit the type of your business.

c. Some beginning business owners use business plan software like Business Plan Pro. It has sample business plans and templates which can be used to help in writing your own business plan.

Here are some guidelines on how to write business plan. It should have:

1. An executive summary that outlines the company’s goals and objectives – Lending institutions always look for a business plan’s executive summary, which should always come at the beginning of a business plan. It is important to emphasize the viability of your proposed business to persuade institutions to give you a loan. The executive summary can also be used as a way to communicate your ideas to employees and potential customers to get their support.

2. A short account of the company’s beginnings – Give a clear explanation on how the company was created and how the idea to start the business came about.

3. The proposed product or service you will offer – It is important that you discuss how the service or product is different from those already available in the market. Emphasize the market potential of your offering to convince employees and potential investors. Knowing the market potential usually requires research to know market demand but you can usually get basic information on this in the Internet.

4. A clear marketing strategy – If the business owner already has a good reputation, he or she could rely on word-of-mouth but most beginners should think of a plan to market or advertise on television, in print, or on the Internet. You need to include in this section your projected marketing expenses.

5. An exit strategy – List the benchmarks that will make you decide when to stop the company’s operations. These benchmarks could be based on revenue growth or the consensus among top management officers.

Knowing how to write business plan should not add to the pressures of starting a business. Good thing there are many resources beginning business owners can use for this.

Buying a new business phone system is one of the most important
purchases any business will ever make. The selection of a phone
system can either bring a business closer to its customers and
clients or, cause confusion and chaos amongst all that use or
interact with it.

It is therefore essential that you choose the right phone system
for your business needs. The telephone is quite often the
fastest and easiest way to reach customers and clients. It
should also be the fastest and easiest way for them to reach
you. It should be flexible enough to be able to cover all of
your company’s needs and handle all calls appropriately. The
last thing any business wants is for its important business
callers and customers to be routed incorrectly, disconnected, or
faced with a long list of confusing automated options.

There are lots of factors that need to be taken into
consideration when choosing a new business telephone system.
Below are a few of the main ones:

1. You need enough capacity to fulfil your current business
needs.

2. Assess your potential future growth and select a compatible
phone system accordingly.

3. Ensure compatibility with any equipment you already own
(headsets, handsets, conferencing equipment, cabling etc).

4. What features does your business phone system need to
incorporate?

Fulfilling all the factors above and any more you can think of
can be an expensive challenge for any business. The aim of this
guide is to help you understand what decisions you need to make
in order to choose the right phone system for your business.

Types of business phone system

There are three major types of phone system available: KSU- Less
phones, Key systems and Private Branch Exchange (PBX) systems.
Which type of phone system you choose will depend on the amount
of extensions you require and the features your telephone system
needs to have installed.

KSU-Less systems

KSU-Less systems are usually more suited to companies that
typically have less than ten employees, or require less than ten
extensions. That isn’t to say that all companies requiring less
than ten phone extensions can make do with a KSU-Less system. It
may be that you require more features which are only available
through either a PBX or Key phone system.

Requiring a far lower initial investment than the other types of
business phone systems, KSU-Less phones are specifically
designed to include many of the features usually only available
through the implementation of a full small business phone system.

KSU-Less systems can be easily unplugged and relocated, because
they are not permanently wired into your office. This
portability allows you to treat a KSU-Less phone system, much
the same as any business machine, rather than a lost permanent
investment.

You will need to ensure that any KSU-Less system you choose is
compatible not only with the type of wiring you have in your
office, but also with any accessories you may already have, such
as: headsets, answering & fax machines and modems. Because
KSU-Less phone systems are relatively inexpensive, they are not
usually sold, installed, or maintained by telecoms vendors.

All of this means, you have to go out there and do not only the
shopping yourself but, also the installation and support. This
is one of the two major drawbacks of KSU-Less systems. The last
thing any business needs is to be concerned with the reliability
and maintenance of its phone system. Another drawback of
KSU-Less systems is that they are more prone to something known
as crosstalk. This is where separate conversations may blend
into each other. With PBX, Key systems and Hybrid systems
falling in price, it sometimes makes more sense to invest in a
full business phone system, rather than become susceptible to
the risks of a KSU-Less system.

Private Branch Exchange (PBX) systems

If your business typically requires more than forty extensions,
or your needs dictate you need advanced functions from your
business phone system, then PBX systems are often the solution.
PBX systems used to be extremely expensive and only affordable
by huge corporations with hundreds of extensions. Though this is
still the case for larger installations, the development of the
technology required has progressed to the point where a
powerful, fully functional PBX office phone system for a small
business is able to fit on the top of a desk.

Nearly all these compact PBX phone systems come with all the
features you might want as standard. You pay a premium for the
programmability and flexibility that a PBX offers, but in most
cases the price difference is not as much as you may imagine
between that of a less flexible phone system.

Key Systems

Key phone systems are more typical in businesses that require
five to forty extensions. This type of phone system uses a
central control unit called the Key System Unit (KSU) to provide
features and functions that are not available using ordinary
phones. An example of this is: key systems using a KSU allow one
extension to call another in house extension, and prevents any
other users from picking up a line that is already in use. Key
systems usually come as standard with most features any business
would expect, but in some cases they are often less flexible
than a PBX phone system.

PBX & Key Systems (hybrids)

Though Key and PBX systems have some different technical
features, these differences have become somewhat blurred over
the past couple of years. Many Key systems now offer features
that were once only available to those who chose to install a
full PBX phone system. Some systems also operate internally as
either a PBX or Key system depending on the software installed.
Sometime these systems are often referred to as “Hybrid” phone
systems.

Installation & maintenance of PBX and Key phone systems

PBX and Key phone systems require installation by fully trained
and qualified telecoms engineers. All outside and inside lines
must connect to the PBX or KSU cabinet. The installation and
maintenance of one of these types of phone system can be just as
expensive as the phone system itself. In many cases you may be
able to use the existing phone lines available in your office,
but unless the phones you have been using are relatively new,
they may not be compatible with your new system, requiring you
to purchase new handsets as well as the system itself.

The Right Size System

It is important that when buying a new business telephone
system, that you know your requirements in advance. Knowing what
features need to be included with your new telephone system will
stand you in good stead when it comes to negotiating with
potential suppliers. When considering buying a new telephone
system for your business, there are two major factors that
determine the size of the system you require:

Lines. These are sometimes called trunks. The number of lines a
system has denotes the number of outside lines being used by a
company.

Extensions. Most extensions will be made up of handsets. Though
any equipment that requires a phone line is classed as an
extension. This includes fax machines, modems, and credit card
equipment etc.

It is important that you make a list of all the extensions and
lines you may need for your new phone system. Not forgetting
some users may need more than one line and multiple extensions.

With key systems, the size of a phone system is indicated as a
combination of both lines and extensions. For example a system
that has 10 lines and 30 extensions will be shown as a 10 x 30
system.

With PBX phone systems, size is defined as a combination of
lines and extensions, called “Ports”. The number of “Ports” is
the maximum number of connections that can be made to the phone
system. These include outside lines and inside extensions, as
well as any other telephone system accessories.

When planning for a new business phone system, you should take
into account the future expansion of your company, by foreseeing
any extra needs at an early stage. Even if your current
telephone system is handling calls well for the time being, this
may not be the case when any future expansion or improvements
are fully implemented. A good business phone system should be
able to handle expansion easily and in a cost effective manor.
PBX phone systems allow you to expand their capabilities, by
adding new expansion cards, thus increasing the number of ports
available for use. A few key systems can be expanded by the
addition of another cabinet that is identical to the first.

When planning your new system it is important that you enquire
about the potential cost for the addition of more extensions or
ports. It is important that when choosing a new business phone
system, you ensure expansion will come not only easily but as
affordable as possible for your company.

Telephone System Dealers and Installers

Finding a good reliable dealer is the most important part of
buying a new business phone system. A good reputable dealer will
not only be able to sell you the system you require, but will
offer excellent, guaranteed installation and service as well as
always be on hand to answer any questions you have when problems
arise. To put it simply they will be there to hold your hand and
guide you through the process, from the planning and selection
of a suitable system, to the implementation of you new system
and training of staff. Any potential supplier will be more than
happy to talk to you about any aspect of a new business phone
system, and offer testimonials as to the quality of their
systems and installation service.

It is not uncommon for buyers to require a demonstration of
potential new phone systems. Any reputable dealer will be more
than happy to offer a full demonstration of any phone system
they supply. It is better for the dealer to visit your site,
that way they can get a proper view of your existing system and
evaluate your future communication requirements and cabling
needs.

Service Level Agreements (SLA’s) specify how quickly a dealer
responds to a problem with your phone system. A good dealer will
offer a range of SLA’s to cater for most business needs and
budgets. Expect to pay more if your business requires 24/7
support or response times shorter than normal.

Below are some questions that you could ask a dealer when
looking for a supplier of a business phone system:

1. Can I have a system demonstration?

2. Who will install the system and cabling?

3. What range of Service Level Agreements (SLA’s) do they offer?

4. Who will provide system training and what are the costs?

5. Can the dealer provide remote maintenance facilities?

6. What guarantees and warranties do they offer?

Check List

1. Decide which type of phone system best suits your businesses
needs.

2. Plan the size of your new system by evaluating the amount of
lines and extensions you require. Don’t forget to plan for any
future expansion.

3. Decide what extra features you might require from you new
business phone system (voicemail, door phones, etc).

4. Contact a few reputable dealers.

5. Arrange for a demonstration of suitable phone systems.

6. Work with your chosen dealer to select and purchase the
correct system for your business.

7. Don’t forget to sort suitable training and an adequate
service level agreement.

Final

The purchase and installation of the correct telephone system
for your business is a very important decision. It is imperative
that you get it right first time, as the functionality and
prosperity of you business could heavily depend upon it.
Remember to follow the few simple guide lines outlined in this
report, and you will be more prepared than most.

Thanks for reading my article

Jason Morri

A business plan guide is a great place to start when you are getting ready to write your first business plan. Perhaps you have found a book about writing business plans, or are following a template, but chances are, these materials will only focus on the steps necessary to create your business plan and will fail to point out the critical mistakes that most new business owners make. So let’s ignore the step-by-step tutorial for a moment and focus on the real world mistakes you need to avoid.

1. Don’t Put it Off.

Yes, writing a business plan can be a monumental chore. It’s easy to procrastinate while you focus on the more exciting processes of your business. Many new business owners will wait until the day before their scheduled meeting with the bank — and then frantically try to write a plan overnight. You can imagine the results.

Don’t wait until you have more time. There will never be more time. You need to clear your calendar for a week and make your business plan a top priority. Or if that isn’t feasible, schedule a certain period of time each day to work specifically on planning. No doubt you have heard the old saying: “If you fail to plan, you are planning to fail”.

2. Don’t Confuse Profit With Cash Flow.

Unless you have an accounting background, you are very likely to define the success of your business in terms of profits. A simple definition of Profit would be Sales minus Expenses equals Profit. But in the business world, profits do not equate to cash. Your profit formula does not take into account the amount of cash you have tied up in production costs for products that have not yet sold, or the customers who still owe you money for sales that have already been made. Your business can look quite “profitable” while your bank account is over-drawn.

Make sure your business plan includes a table that addresses cash flow. Ideally, you should detail the monthly cash flow for the first two years of the business and annually thereafter.

3. Don’t Fall in Love With Your Idea.
Too many business plans blabber on for pages about the “newness” and “uniqueness” of the idea. But the truth is, investors want to invest in people, not ideas. It is only the people who can execute the systems necessary to bring the idea to life.

Instead of waxing poetically about your business idea, focus your energy, and your reader’s eyes, on the ways you plan to implement this great business idea.

4. Don’t Succumb to Fear and Dread.

If you have never written a business plan, the process may loom like Mount Everest. But, like most new challenges, writing a business plan isn’t as hard as you have imagined it to be. You aren’t writing a doctoral thesis or the next great novel. If you have invested in a business plan guide, use it. You can easily find helpful resources such as books, software programs and templates. Remember, you eat an elephant one bite at a time, so start chewing.

5. Don’t Over Sell.

Skip the vague and meaningless business phrases such as “best ever”, “highest quality” and “unsurpassed customer service”. You will lose your reader’s interest and respect if you engage in hyperbole that isn’t supported by measurable facts. Remember that the objective of a plan is its results, which require tracking and follow up. Focus your goals on specific dates, management responsibilities, budgets, and measurable milestones. Think fewer words and more numbers.

6. Don’t Engage in One-Size-Fits-All

Business plans can have many different purposes and they should be written to reflect the specific purpose at hand. You may be using your plan to start a business, or just run a business better. Your purpose may be simply to sell an idea for a new business to one particular business partner. Your plan may be intended to secure a small business loan, or it may be needed to secure millions of dollars of venture capital. Each of these purposes would require different information, presented in different ways to meet the needs of different readers. Keep a picture of your intended reader firmly in your mind and your business plan will stay focused as well.

7. Take Off the Rose Colored Glasses
Optimism is a wonderful resource. Without it, a business owner would find it difficult to summon the energy necessary to launch a new venture.  However, this is not the time to engage in unbridled projections. If your company’s growth chart is based on an “industry average” of 15% annual growth, you should certainly be prepared to prove that assumption. When in doubt, be less optimistic.

By using a good business plan guide, and avoiding these common mistakes, you can prepare a plan that almost guarantees your business success. Good luck!

Small business management software is a type of software application that is exclusively designed to help the owners and managers of small businesses improve the functioning of their business. It can bring about so many improvements to the day to day running of a business that its benefits can be seen almost instantly. So here is a rough guide to small business management software that could really help you.
Firstly, small business management software is software that can be accessed via the internet which gives employees and managers greater flexibility. Many businesses now are allowing employees to work from home for part of their working week or exclusively, so this is very helpful. In addition to this anyone who wants to complete a project after working hours or who regularly takes work home will find this useful.
Secondly, using small business management software means that many other software applications can be done away with. This will come as good news to anyone who is looking to make internal savings within a business and feels as though every application that the business uses is essential. By being able to create invoices, quotes, documents and more via one application a business could stand to save a substantial amount of money in a matter of months.
Thirdly, small business management software can help managers and owners to track customer contacts, employee productivity and ensure that all projects are up to date. Previously, this could be very tricky to do as most employees would hold their project work on their own PC which was password protected.
Fourth, small business management software is very easy to for anyone to use within a business. Every function that the application has can be learnt in a matter of minutes by owners, managers and employees alike. This means that there is no need for day long sessions where people within the business have to learn to use the software. As the majority of small businesses cannot afford to lose this amount of working hours it makes sound financial senses to use software like this.
Fifth, anyone who runs into difficulty when using small business management software can get the help that they need via the online helpdesk. By being able to get help from a helpdesk anyone can be responsible for their own issues that they might encounter. However this type of software is so easy to use that the helpdesk facility is often never used by many of the people who are granted access to the application.
In other words any business owner who wants to raise the productivity of their employees through the correct use of a single application will find that small business management software helps them to do just that. It is easy to use, simple to set up and can provide some very healthy savings within a business, which is very encouraging for any business owner. So if you think that this could be something that your business needs why not try such a software application for a week or so and see the difference that it will make to your business.

Cash register? Check. Employees? Check. Zip Ties? Wait a second. Zip ties were not on the small business checklist. Until now.

Many small business owners are already using zip ties to bundle cords and cables in their stores or home offices. But zip ties have a myriad of uses, offering convenience and affordability in the pursuit of the American dream.

Dry Cleaners

Multiple pieces from the same customer can be secured with a simple zip tie. Cleaners can keep their racks organized and customers can avoid misplacing an item. An extra dose of customer service will keep a store a cut above the rest.

Jewelers

Necklaces, rings, and other accessories are easily fastened to their tags through the use of a zip tie. Lock the tie on the back of the tag. Then cut the excess tie to help display the product with a crisp, sharp presentation.

Florists and Vineyards

Some plants need a little help while they grow. Orchids, grapevines, and the like can be attached to sturdy apparatuses with zip ties. Effective yet inconspicuous, zip ties allow the plant be the main event.

Retail Store Owners

Zip ties make excellent fasteners to hang signs announcing a sale or other announcement. The marvelously robust zip ties aren’t going anywhere soon and neither will store signs.

Farmers

Connecting stall mats, constructing wire chicken cages, bundling tools – the possibilities are endless for the working farm. Zip ties can be used to temporarily replace broken lock on a gate or while preparing loads for the farmers market.

Zip Ties, while humble in appearance and simple in function, are remarkable gizmos that can save small business owners time and money.