Shubhomita Bose is a Staff Writer for Small Business Trends. She covers key studies and surveys about the small business market, along with general small business news. She draws on 8 years of experience in copywriting, marketing and communications, having worked extensively on creating content for small and medium sized enterprises.
Require payment. Don’t let people take advantage of you. Require payment within a specific window of time (whatever is appropriate for what you do). Invoice people as soon as you possibly can. If someone is late in a payment, talk to them. If you ignore these problems hoping that they go away, you will find yourself working for free and your business in the tank.
Choose a business structure that makes sense for your ownership arrangement, such as a partnership, if you’re starting your business with one friend. Consult a lawyer about the best structure for your particular circumstances.
Leadership skills are critical to the success of a new venture. Do you have them? Whether or not you think you’re a gifted leader, you should consider putting management theories aside and focus on common sense as you build your business.
If it does not exist, create it. If you have an idea-ideas or skills, think of how to use your ideas or skills to create a business and to put it out there to see what it can attract and what you can create. Many successful businesses started with an idea and that idea has become a success “from one person business to global corporations”. Failure is an attempt at success, if you don’t give up and modify each attempt, then each attempt can become a success.
What do some entrepreneurs do differently that enables them to achieve almost mythical business success? This month we look at the characteristics that separate successful entrepreneurs from their peers.
And lastly, you should keep a cash flow statement, which highlights how much money has moved in and out of your business in a given period of time. It, too, is made up of three sections: cash flow from operations, investing, and financing.
When hiring, make sure you have an in depth review and interview of the worker. Make sure you get their real information, passports, ID, former work, license and many others that they are truly honest and they are dependable.
It can also be useful to include questions in drafts of your business plan. Identifying what you don’t know is as helpful as listing things you are sure about. You do not want to present a business plan with unanswered questions to potential investors, but laying out relevant questions in your initial drafts will help you identify questions that require answering in your final business plan.
You’ve decided to run a credit check on a potential client to ensure that you’ll get paid for your services. Once the report arrives what are you really looking at and how can you use the information to make the best decision? This article can help.
Don’t think you need bankers and investors at the outset. The vast majority of small-business start-ups are bootstrapped (self-financed). Consider your own savings, investments, and salable assets and then talk to your friends and family before you look to outside sources.
Advertise in a way that catches customers attention at a minimum and hopefully goes beyond to capture their imagination. Be creative and appeal to the right aspects of the customers you want to use your business.
As a would-be small-business owner, you might be eligible for an influx of funding from various government grants. Do your homework. Don’t just look for “grants,” by the way, but also awards, rebates, tax credits, industry-specific incentives, or non-repayable loans. You won’t want to overlook any potential source of funding.
The second is a balance sheet, which provides a snapshot of your business’s financial position at any point in time. This report also has three sections: assets, liabilities, and equity. The value of assets should equal the combined value of liabilities and equity.
It is helpful to think of promotions and marketing relative to the capacity of your business. Paying to run a commercial on a national network does you little good if your business is only designed to operate at the local level.
Don’t go it alone. Tap into resources, such as small-business peers, mentors, and trade associations, that can help take some of the energy-draining trial and error out of starting and running your business.
Start by setting up the main accounts to monitor. Separate your assets, liabilities, expenses, and equity. Assets are your cash on hand, inventory, accounts receivable, checking account, and savings account. Liabilities are your credit card and accounts payable (what you owe), then there are your general business expenses.
It’s totally normal. Each day my inbox is filled with people telling me why they haven’t started a business yet. And each day I offer solutions so they can adopt the mindsets and systems needed to reach their goals. That’s why we’re going to smash the common roadblocks and show you how to get past it all so you can get right to living a Rich Life.
Organizing weekly, bi-weekly or monthly meetings between you and your staff can help ensure that everyone is on the same page and will help you avoid wasted time or overlap in the various responsibilities of your team members. Meetings can also help you analyze who is and who is not adequately performing the duties assigned to them.
1. Find 1 person — JUST ONE! — who might be interested in your idea. You can do this via email or in person. If you’re not sure, ask ANYONE that’s close to you, even your parents. We’re not aiming for perfection right now, just people.
How will your product or service generate money? How much money will it generate? How much does it cost to produce your product or service? How do you intend to pay operational costs and employees? These, and others, are critical question you need to answer in planning your small business’ financial future.
The best place to begin is with the stuff that’s low cost. Start with the community—oftentimes, organic, word-of-mouth marketing is the most effective. Make an effort to be visible in your neighborhood. That includes things like introducing yourself to fellow business owners, participating in any local events, and asking to put up flyers at places where potential customers might be hanging out. If you have positive relationships with the people in your neighborhood, they’re more likely to recommend your business to others.
Want to be sure if your business idea is indeed unique? Run a test and find out. A pilot will give you the confidence you need to take your idea to the next level and mitigate risk. You can start on a small scale by giving away some freebies to a few people in your target audience group to see how they respond.
A sounding board, a trusted resource. Someone who can listen – and challenge you to new levels. Mentors offer untold value to new entrepreneurs; in this article Reg Pirie explains why you need them, and how to find them.
Communicate clearly with your loved ones about how your business will affect your home life. Understand their level of tolerance and understanding, and enlist extra help, if necessary, such as child care for your family, or additional employees for your business.
Meet with your local Small Business Development Center. SBDC’s provide help during all stages of the business life cycle. They can help you create a stellar business plan to approach a lender with and their counseling is always free.
Sorry, but yes, there’s more paperwork. Figure out whether you want to incorporate federally, which costs $200 for online filing or $250 for paper filing. Then, determine which permits and licences are legally required for you to get started by using a tool like BizPal.
Certify employees. Employ individuals with certification in your business’ field, like certified public accounting or electrical repair technician. Having certifications for all employees will ensure that your employees are skilled at the highest level and will increase your client’s confidence in your business.
Who am I? I’m New York Times bestselling author Ramit Sethi, and I’ve created more than 15 products that generate tens of millions of dollars a year. I’ve helped tens of thousands of students build businesses so profitable they can leave their full time job.
Discover the reason for the employee’s laziness. Sometimes a shift in management style or communication with an employee will help you yield more positive results. Making sure your employees are both heard and properly incentivized will help make a productive work environment. The employee may simply have a lazy work ethic, or abuse a workplace when he/she doesn’t have the right consequences or supervision. Make sure your employees know the expectations, and the consequences of not fulfilling said expectations (whether it be a warning, a demotion, or possibly termination). There has to be a reward for if they surpass expectations as well (whether it be a bonus, commission, praise, promotion, time off, or simply increasing your trust in the employee).
Project growth. All successful small businesses need to grow their customer base and production capabilities over the first few years of operating. Make sure you have identified how your business can and will respond to growth potential.
I need funds for state filing and office equipment. I am also a paraplegic so my mobility is very limited but a home-based business would be ideal for me. Does anyone have any specific suggestions for me to raise funds for this. I need about $3500.
Pay attention to all small-business-related regulatory issues. Federal, state, and local government agencies require an array of licenses, registrations, and permits. Obey them or face stiff penalties, including possible closure of your business.
When starting a business, there are important differences between starting from scratch, buying a privately owned business and buying a franchise. To know what steps you need to take be sure to read these articles:
In addition to a secure payments processor, you can streamline your operations using a variety of software. There are affordable tools to help you manage inventory, employee schedules, payroll, email marketing, and invoicing.
Consider if it is possible. Before going too far, think about how plausible your idea is. Is it something that people would actually pay for? Will it turn enough of a profit to be worth spending your time to do it? You will also need to be sure that it is possible to put into action. While it would be great to have a computer which makes food magically appear out of thin air, this is simply impossible (unless you’re Patrick Stewart.)
Approach friends and relatives. People who know you for a long time are most likely to have faith in your ability and intentions. These are also the people who are likely to stand by you if the going gets tough in the initial stages of your venture or you need to raise more money. However, make it clear the money is intended as risk capital and they might lose it completely or may not be returned in the short term.
You will want to be sure that you are using marketing which is appropriate to the type of people you expect to be interested in your product or services. There is little point in using social media to, for example, advertise a 55+ only cruise line. Meanwhile, if you’re advertising for your new dance club, a printed newspaper is probably not going to be your best bet. There is also no point in advertising a business only available in Chicago to people in Seattle, so consider physical location as well.
But most importantly, it helps you start to contextualize your ideas by how they will play in the real world. Not how you HOPE they will work out or not by what you’re the most excited about — but by what has the best chance of working.
Put profitability first and rewards second. Beware of the small business that treats itself to hefty salaries, high-priced consultants, and waterfalls in the lobby. In small business, profitability must come first. To understand profitability, you must first measure your cash flow and understand your key financial ratios.
It should be as easy as possible for you and your staff to ring up customers. That means you should be accepting credit cards. Why? For starters, statistics show that people are using cash less and less. So sending people to the nearest ATM if they don’t have enough cash on hand is not the best customer experience. Plus, accepting credit cards can help you make more sales and improve your cash flow.
Leaving customer feedback strictly in the hands of your employees is a dangerous managerial tactic. Employees may benefit from presenting you with skewed information about customer satisfaction or product usefulness, which, in turn, will lead you to make bad managerial decisions for the company as a whole. As such, do not simply accept what your employees tell you about your business without seeing evidence of their claims. It is your company and you have put yourself in a position of risk, so be proactive in overseeing business results.
Hi, I am really trying to start my own trucking company doing hot shot services. I know plenty companies that would let me handle their needs but with the cost of living being so high in the city it makes it so difficult to save money to get started with bills and child support. If anyone knows anybody that could help me get a small business loan I would gladly appreciate it.
Is your business idea really unique? What value will it generate? Is it something your target audience really wants? Or is it something you think they’d want? Getting answers to these questions is important to determine whether or not your idea works.
Consider hiring a financial professional. It may be fiscally worthwhile for you to hire a dedicated staff member who can control the financial affairs of your small business. Accountants can help you identify areas of your business that are not running efficiently from a fiscal standpoint, allowing you to maximize your profits.
Expenses. These are the costs for operations that occur during the start-up phase. They include tax-deductible costs such as travel, payroll, rent, office supplies, marketing materials, etc. They also include initial organizational costs like legal fees and state incorporation fees. Many (but not all) of these costs are tax deductible, up to $5,000 in the first year of doing business. You can deduct the remaining costs in equal instalments over a period of 180 months (starting with the month in which your business opens).