It is interesting to see how many forms of financing can bring a major change in the economy. Talking about these financing methods at play in markets, there are a couple of them that are worth mentioning. For instance, the technique of direct financing is on a rise ostensibly due to an ease in getting finances. Under this method, a borrower normally goes directly to an interested investor to borrow necessary funds. Similarly, there is another method of indirect financing where a middleman or an intermediary plays crucial role.
It is a middleman or the so-called intermediary which plays the vital role of providing necessary funds. They ensure safe flow of the savings of small-time savers to numerous financial institutions. These institutions then route this fund to borrowers.
The role played by financial markets in macroeconomics is significant. It is no wonder that operation and health of an economy is generally affected by numerous components. These are the components that have a bearing in price exchange rate sand distribution of income and wealth. Experts of this field are of the view that it is these components that can have both, adverse as well as favorable, affects in the economic growth.
They contend that, in order to witness an economic system function appropriately, the chain of this flow of money is very important. In other words, it must be ensured that individuals who have large amount of savings with them (the savers) must properly be directed towards those who are in need of this savings ( the borrowers).
Today, globalization of different types of markets can easily be characterized by applying many scales and dynamics. This is especially true with financial markets that are often seen reeling under huge stimulation cause by massive movement of capital that is effectively being transferred worldwide. The increase in number of intermediary institutions namely investment funds is testimony to this fact.
Now that technology has started to play a bigger role in such transfer, many new types of financial instruments and electronic money has come into the picture. On most occasions, these operations are being played fairly autonomic way.
As a result, they are mostly independent from their real sphere. Inter-relatedness coupled with relatively independent nature of these transactions has caused a ‘domino’ effect in worldwide financial system. High sensitiveness of local market factors often goes to contribute to this risk of ‘domino’ effective.
Taken From (http://www.articlesxpert.com/business/financial-markets-are-backbone-economy.htm)
Tuesday, 31 May 2011
Leadership - The Link Between Planning & Doing
If you have read the preceding articles in this section on strategic planning, YOU will have a sense that strategic planning involves more than getting together for one day a yearto develop a strategic planning document. Strategic planning is both a logical, rational process, and a process that involves people. It takes more than developing a plan for that plan to be implemented. In this article, we consider that the critical link between planning and doing is leadership.
Traditional Planning Methods
The traditional way for government organizations to plan is for a group of people, usually executives/management, but sometimes including employees, to get together for some period of time each year. Generally, inadequate time is allocated to the exercise, but if it is completed, it results in a document that contains a mission statement, broad organizational goals, and other elements as is deemed appropriate. Then, the plan is usually hidden away somewhere, never to be seen again. Traditional methods yield traditional results. As a wise man once said "If you keep doing what you have been doing, you will get what you have always got".
It needn't be this way.
Reconceptualizing Strategic Planning
Planning should be considered as a blueprint for change. The plan should be the basis for introducing controlled change into an organization so it can adapt to changing times. By anticipating shifting demands, the plan serves the purpose of allowing the organization to control its own direction, rather than waiting until political forces demand change (and demand change NOW). In addition, the plan allows for consistent monitor in~of success,~nd re-examination of the degree to which organizational resources should be structured and allocated to achieve future goals.
But, if we look at strategic planning in this light, as a blueprint for change, we also need to consider that any organization has built-in inertia.. the tendency to keep on doing what one has been doing. On its own, the strategic planning process, as traditionally undertaken, is insufficient to overcome this inertia. Other forces need to come into play if the plan, and proposed changes get implemented.
Leadership - The Key Force
In the context of strategic planning, leadership means a number of things. We can outline the role of leadership in the following ways, keeping in mind that leadership may come from appointed leaders (management and executive) and from the ranks
. 1.Those in leadership roles ensure that as many members of the organization as possible buy into the values, mission, and broad organizational goals. There are two components to this function. First, leaders manage the perceptions of staff with respect to the planning process. Remember that most people have experienced the "plan-in-the-drawer" syndrome, where effort expended in planning is seen as wasted when the plan is ignored. Prior to the planning process, leaders must emphasize that THIS TIME, things will be different.
Second, leaders manage the planning process so that staff feel that they have adequate input into the process, that they are heard, and their values and visions are incorporated into the final plan and its implementation. Specifically, leaders arrange things so that the process is open, and conforms to accepted rules of communication. That may mean hiring an external consultant to orchestrate the planning sessions. It will certainly mean that rules get established to guide participation. Everyone who wants to participate should have the opportunity, and even reticent staff should be gently encouraged to involve themselves.
2. While managing perceptions of the planning process is important, the critical role of leadership occurs after the plan has been completed. Leaders must treat the planning results as the "organizational signposts that guide behaviour and decision making". After all, nobody is going to take a plan seriously if the formal leaders ignore it, or never refer to it again.
If you are serious about using strategic planning as a tool for organizational success, consider some of the following actions. A. When working with staff to set individual objectives, be sure to mention how the individual objectives will contribute to the achievement of the mission and organizational goals as outlined in the strategic plan. Make sure that the employee is familiar with the plan when individual objectives are set.
In addition, at each meeting with each employee, work with the employee to help him/her determine how the values outlined in the strategic plan apply to them. In other words, given the particular values, strategic goals and mission statement how is the employee to behave or make decisions.
B. Once the strategic plan has been completed, the formal leader of the organization (and perhaps others) should present and discuss the plan with the up-line manager or executive. It is NOT sufficient to send a copy. Because you will need up-line support to implement the plan, you will need their commitment, and commitment will only come from discussion and explanation of the plan.
C. At staff meetings, when decisions are required, explain how the strategic plan is used, or is to be used to make decisions. If you are the manager communicating a decision you have made, explain your rationale in light of the mission, values and goals expressed in the plan. If you are using a participative decision making process, help staff refocus on these components of the plan, so that they can be used to guide decision making
D. When doing performance reviews with staff, ask the individual to explain how his or her actions are consistent with the elements of the plan. How has their action contributed to organizational goals? Has their behavior been consistent with organizational values? What needs to change so that the individual can further contribute to implementing the plan? Consider recognizing contributions to achievement of the plan, even if the individual did not have specific responsibility as outlined in their individual objectives. And, when setting future objectives, consider writing an objective that refers to the values expressed in the plan. For example: "Will act in accordance with the organizational values expressed in the strategic plan". If you go this route, make sure -that~the implications of these values are clear to the employee in terms of his or her behavior.
3. A final role of leadership is to create more leaders. One goal that formal leaders (executives, managers) can set for themselves is to encourage down-line employees to take on some of the leadership roles outlined above. This can be particularly effective in decision making. The ideal situation is for staff to internalize the plan to the extent that some take on the role of reminding people of the plan, and its relevance to any given decision-making process. Cultivate leaders in your organization by giving increased responsibility, and encouraging this kind of leadership behavior.
Conclusion
Leadership, regardless of when it comes from formally appointed leaders, or Informal leaders, provides the link between planning and doing. Leadership, regardless of when it comes from formally appointed leaders, or informal leaders, provides the link between planning and doing. Effective leadership helps alter perceptions about strategic planning, and the organization itself, helping to overcome inertia, the tendency to keep things the same.
Without leadership, most strategic plans will end up as dead pieces of paper. Most importantly, when planning occurs without leadership, cynicism increases when staff see that the plan is being ignored, or even violated. The outcome of this is that formal leaders suffer a loss of credibility.
Taken From(http://work911.com/articles/leadchange.htm)
Traditional Planning Methods
The traditional way for government organizations to plan is for a group of people, usually executives/management, but sometimes including employees, to get together for some period of time each year. Generally, inadequate time is allocated to the exercise, but if it is completed, it results in a document that contains a mission statement, broad organizational goals, and other elements as is deemed appropriate. Then, the plan is usually hidden away somewhere, never to be seen again. Traditional methods yield traditional results. As a wise man once said "If you keep doing what you have been doing, you will get what you have always got".
It needn't be this way.
Reconceptualizing Strategic Planning
Planning should be considered as a blueprint for change. The plan should be the basis for introducing controlled change into an organization so it can adapt to changing times. By anticipating shifting demands, the plan serves the purpose of allowing the organization to control its own direction, rather than waiting until political forces demand change (and demand change NOW). In addition, the plan allows for consistent monitor in~of success,~nd re-examination of the degree to which organizational resources should be structured and allocated to achieve future goals.
But, if we look at strategic planning in this light, as a blueprint for change, we also need to consider that any organization has built-in inertia.. the tendency to keep on doing what one has been doing. On its own, the strategic planning process, as traditionally undertaken, is insufficient to overcome this inertia. Other forces need to come into play if the plan, and proposed changes get implemented.
Leadership - The Key Force
In the context of strategic planning, leadership means a number of things. We can outline the role of leadership in the following ways, keeping in mind that leadership may come from appointed leaders (management and executive) and from the ranks
. 1.Those in leadership roles ensure that as many members of the organization as possible buy into the values, mission, and broad organizational goals. There are two components to this function. First, leaders manage the perceptions of staff with respect to the planning process. Remember that most people have experienced the "plan-in-the-drawer" syndrome, where effort expended in planning is seen as wasted when the plan is ignored. Prior to the planning process, leaders must emphasize that THIS TIME, things will be different.
Second, leaders manage the planning process so that staff feel that they have adequate input into the process, that they are heard, and their values and visions are incorporated into the final plan and its implementation. Specifically, leaders arrange things so that the process is open, and conforms to accepted rules of communication. That may mean hiring an external consultant to orchestrate the planning sessions. It will certainly mean that rules get established to guide participation. Everyone who wants to participate should have the opportunity, and even reticent staff should be gently encouraged to involve themselves.
2. While managing perceptions of the planning process is important, the critical role of leadership occurs after the plan has been completed. Leaders must treat the planning results as the "organizational signposts that guide behaviour and decision making". After all, nobody is going to take a plan seriously if the formal leaders ignore it, or never refer to it again.
If you are serious about using strategic planning as a tool for organizational success, consider some of the following actions. A. When working with staff to set individual objectives, be sure to mention how the individual objectives will contribute to the achievement of the mission and organizational goals as outlined in the strategic plan. Make sure that the employee is familiar with the plan when individual objectives are set.
In addition, at each meeting with each employee, work with the employee to help him/her determine how the values outlined in the strategic plan apply to them. In other words, given the particular values, strategic goals and mission statement how is the employee to behave or make decisions.
B. Once the strategic plan has been completed, the formal leader of the organization (and perhaps others) should present and discuss the plan with the up-line manager or executive. It is NOT sufficient to send a copy. Because you will need up-line support to implement the plan, you will need their commitment, and commitment will only come from discussion and explanation of the plan.
C. At staff meetings, when decisions are required, explain how the strategic plan is used, or is to be used to make decisions. If you are the manager communicating a decision you have made, explain your rationale in light of the mission, values and goals expressed in the plan. If you are using a participative decision making process, help staff refocus on these components of the plan, so that they can be used to guide decision making
D. When doing performance reviews with staff, ask the individual to explain how his or her actions are consistent with the elements of the plan. How has their action contributed to organizational goals? Has their behavior been consistent with organizational values? What needs to change so that the individual can further contribute to implementing the plan? Consider recognizing contributions to achievement of the plan, even if the individual did not have specific responsibility as outlined in their individual objectives. And, when setting future objectives, consider writing an objective that refers to the values expressed in the plan. For example: "Will act in accordance with the organizational values expressed in the strategic plan". If you go this route, make sure -that~the implications of these values are clear to the employee in terms of his or her behavior.
3. A final role of leadership is to create more leaders. One goal that formal leaders (executives, managers) can set for themselves is to encourage down-line employees to take on some of the leadership roles outlined above. This can be particularly effective in decision making. The ideal situation is for staff to internalize the plan to the extent that some take on the role of reminding people of the plan, and its relevance to any given decision-making process. Cultivate leaders in your organization by giving increased responsibility, and encouraging this kind of leadership behavior.
Conclusion
Leadership, regardless of when it comes from formally appointed leaders, or Informal leaders, provides the link between planning and doing. Leadership, regardless of when it comes from formally appointed leaders, or informal leaders, provides the link between planning and doing. Effective leadership helps alter perceptions about strategic planning, and the organization itself, helping to overcome inertia, the tendency to keep things the same.
Without leadership, most strategic plans will end up as dead pieces of paper. Most importantly, when planning occurs without leadership, cynicism increases when staff see that the plan is being ignored, or even violated. The outcome of this is that formal leaders suffer a loss of credibility.
Taken From(http://work911.com/articles/leadchange.htm)
Sunday, 29 May 2011
Business Financing Mistakes
If you want your small business to survive and prosper, you need to ensure you avoid these 7 common business financing mistakes:
(1) - No Monthly Book Keeping.
Regardless of the size of your business, inaccurate record keeping creates all sorts of issues relating to cash flow, planning, and business decision making.
While everything has a cost, bookkeeping services are dirt cheap compared to most other costs a business will incur.
And once a bookkeeping process gets established, the cost usually goes down or becomes more cost effective as there is no wasted effort in recording all the business activity.
By itself, this one mistake tends to lead to all the others in one way or another and should be avoided at all costs.
(2) - No Projected Cash Flow.
No meaningful bookkeeping creates a lack of knowing where you've been. No projected cash flow creates a lack of knowing where you're going.
Without keeping score, businesses tend to stray further and further away from their targets and wait for a crisis that forces a change in monthly spending habits.
Even if you have a projected cash flow, it needs to be realistic.
A certain level of conservatism needs to be present, or it will become meaningless in very short orde
(3) - Inadequate Working Capital
No amount of record keeping will help you if you don't have enough working capital to properly operate the business.
That's why its important to accurately create a cash flow forecast before you even start up, acquire, or expand a business.
Too often the working capital component is completely ignored with the primary focus going towards capital asset investments.
When this happens, the cash flow crunch is usually felt quickly as there is insufficient funds to properly manage through the normal sales cycle.
(4) - Poor Payment Management.
Unless you have meaningful working capital, forecasting, and bookkeeping in place, you're likely going to have cash management problems.
The result is the need to stretch out and defer payments that have come due.
This can be the very edge of the slippery slope.
I mean, if you don't find out what's causing the cash flow problem in the first place, stretching out payments may only help you dig a deeper hole.
The primary targets are government remittances, trade payables, and credit card payments.
(5) - Poor Credit Management
There can be severe credit consequences to deferring payments for both short periods of time and indefinite periods of time.
First, late payments of credit cards are probably the most common ways in which both businesses and individuals destroy their credit.
Second, NSF checks are also recorded through business credit reports and are another form of black mark.
Third, if you put off a payment too long, a creditor could file a judgement against you further damaging your credit.
Fourth, when you apply for future credit, being behind with government payments can result in an automatic turndown by many lenders.
It gets worse.
Each time you apply for credit, credit inquiries are listed on your credit report.
This can cause two additional problems.
First, multiple inquiries can reduce you overall credit rating or score.
Second, lenders tend to be less willing to grant credit to a business that has a multitude of inquiries on its credit report.
If you do get into situations where you're short cash for a finite period of time, make sure you proactively discuss the situation with your creditors and negotiate repayment arrangements that you can both live with and that won't jeopardize your credit.
(6) - No Recorded Profitability
For startups, the most important thing you can do from a financing point of view is get profitable as fast as possible.
Most lenders must see at least one year of profitable financial statements before they will consider lending funds based on the strength of the business.
Before short term profitability is demonstrated, business financing is based primary on personal credit and net worth.
For existing businesses, historical results need to show profitability to acquire additional capital.
The measurement of this ability to repay is based on the net income recorded for the business by a third party accredited accountant.
In many cases, businesses work with their accountants to reduce business tax as much as possible but also destroy or restrict their ability to borrow in the process when the business net income is insufficient to service any additional debt.
(7) - No Financing Strategy
A proper financing strategy creates 1) the financing required to support the present and future cash flows of the business, 2) the debt repayment schedule that the cash flow can service, and 3) the contingency funding necessary to address unplanned or unique business needs.
This sounds good in principle, but does not tend to be well practiced.
Why?
Because financing is largely an unplanned and after the fact event.
It seems once everything else is figured out, then a business will try to locate financing.
There are many reasons for this including: entrepreneurs are more marketing oriented, people believe financing is easy to secure when they need it, the short term impact of putting off financial issues are not as immediate as other things, and so on.
Regardless of the reason, the lack of a workable financing strategy is indeed a mistake.
However, a meaningful financing strategy is not likely to exist if one or more of the other 6 mistakes are present.
The seven small business financing mistakes really are all too common, to a lot of would be entrepreneurs they're not the sexy bits of managment ... but make no mistake, they are the most important areas of management. Financial management and cash flow forecasting and control are essentials to small business success.
Taken from (http://www.incorporate-my-business.com/Business-Financing-Mistakes.html)
(1) - No Monthly Book Keeping.
Regardless of the size of your business, inaccurate record keeping creates all sorts of issues relating to cash flow, planning, and business decision making.
While everything has a cost, bookkeeping services are dirt cheap compared to most other costs a business will incur.
And once a bookkeeping process gets established, the cost usually goes down or becomes more cost effective as there is no wasted effort in recording all the business activity.
By itself, this one mistake tends to lead to all the others in one way or another and should be avoided at all costs.
(2) - No Projected Cash Flow.
No meaningful bookkeeping creates a lack of knowing where you've been. No projected cash flow creates a lack of knowing where you're going.
Without keeping score, businesses tend to stray further and further away from their targets and wait for a crisis that forces a change in monthly spending habits.
Even if you have a projected cash flow, it needs to be realistic.
A certain level of conservatism needs to be present, or it will become meaningless in very short orde
(3) - Inadequate Working Capital
No amount of record keeping will help you if you don't have enough working capital to properly operate the business.
That's why its important to accurately create a cash flow forecast before you even start up, acquire, or expand a business.
Too often the working capital component is completely ignored with the primary focus going towards capital asset investments.
When this happens, the cash flow crunch is usually felt quickly as there is insufficient funds to properly manage through the normal sales cycle.
(4) - Poor Payment Management.
Unless you have meaningful working capital, forecasting, and bookkeeping in place, you're likely going to have cash management problems.
The result is the need to stretch out and defer payments that have come due.
This can be the very edge of the slippery slope.
I mean, if you don't find out what's causing the cash flow problem in the first place, stretching out payments may only help you dig a deeper hole.
The primary targets are government remittances, trade payables, and credit card payments.
(5) - Poor Credit Management
There can be severe credit consequences to deferring payments for both short periods of time and indefinite periods of time.
First, late payments of credit cards are probably the most common ways in which both businesses and individuals destroy their credit.
Second, NSF checks are also recorded through business credit reports and are another form of black mark.
Third, if you put off a payment too long, a creditor could file a judgement against you further damaging your credit.
Fourth, when you apply for future credit, being behind with government payments can result in an automatic turndown by many lenders.
It gets worse.
Each time you apply for credit, credit inquiries are listed on your credit report.
This can cause two additional problems.
First, multiple inquiries can reduce you overall credit rating or score.
Second, lenders tend to be less willing to grant credit to a business that has a multitude of inquiries on its credit report.
If you do get into situations where you're short cash for a finite period of time, make sure you proactively discuss the situation with your creditors and negotiate repayment arrangements that you can both live with and that won't jeopardize your credit.
(6) - No Recorded Profitability
For startups, the most important thing you can do from a financing point of view is get profitable as fast as possible.
Most lenders must see at least one year of profitable financial statements before they will consider lending funds based on the strength of the business.
Before short term profitability is demonstrated, business financing is based primary on personal credit and net worth.
For existing businesses, historical results need to show profitability to acquire additional capital.
The measurement of this ability to repay is based on the net income recorded for the business by a third party accredited accountant.
In many cases, businesses work with their accountants to reduce business tax as much as possible but also destroy or restrict their ability to borrow in the process when the business net income is insufficient to service any additional debt.
(7) - No Financing Strategy
A proper financing strategy creates 1) the financing required to support the present and future cash flows of the business, 2) the debt repayment schedule that the cash flow can service, and 3) the contingency funding necessary to address unplanned or unique business needs.
This sounds good in principle, but does not tend to be well practiced.
Why?
Because financing is largely an unplanned and after the fact event.
It seems once everything else is figured out, then a business will try to locate financing.
There are many reasons for this including: entrepreneurs are more marketing oriented, people believe financing is easy to secure when they need it, the short term impact of putting off financial issues are not as immediate as other things, and so on.
Regardless of the reason, the lack of a workable financing strategy is indeed a mistake.
However, a meaningful financing strategy is not likely to exist if one or more of the other 6 mistakes are present.
The seven small business financing mistakes really are all too common, to a lot of would be entrepreneurs they're not the sexy bits of managment ... but make no mistake, they are the most important areas of management. Financial management and cash flow forecasting and control are essentials to small business success.
Taken from (http://www.incorporate-my-business.com/Business-Financing-Mistakes.html)
Protect Your Business From Criminal Investigations – The Worst Legal Disaster Imaginable
Most business owners and executives think that because they are good people who do their best to follow all laws and rules, they are immune from worrying about criminal business investigations and issues. However, nothing could be further from the truth. Everyday conduct and occurrences can be construed as criminal like the following:
- Forgetting to include income on a tax return
- Misstating your income or expenses on a financial statement when applying for a bank loans
- Using loan proceeds for a purpose other than that for which you applied
- Bouncing a check
- Talking to competitors
- Making a mistake on an application for a federal grant, funding or certification
Without exception, the most serious legal disaster that could befall your business is a federal criminal investigation or indictment of you, or any other manager, officer or the company itself. Individuals or the operating business entity, together or separately, can be named as a witness, suspect, or target in an investigation. Enron and Arthur Anderson are famous of such business crime cases which resulted in the collapse of the businesses themselves and imprisonment of the executives. Many national business and legal experts have concluded that the demise of those two giant companies was not caused by the illegal activity of which they were accused, but the damage to their reputations that immediately drove their investors, lenders, and customers away in a panic.
The following business practices can help protect you and your company from being wrongfully accused or convicted of a federal or state crime:
1. Adopt a Government Investigation Policy
This policy should state unequivocally that your company and its employees will cooperate with any government investigation, but only with the assistance of a qualified lawyer. This policy should be adopted at a time when there is no threat of an investigation or hint of any problem. Write the policy down and include it in all company documents, employee handbooks and materials.
2. Hold a Government Investigation Seminar
Conduct an annual, required in-house seminar on business criminal issues, just like safety seminars and courses, for your employees. The seminar should be conducted by a criminal lawyer to instruct employees on individual constitutional rights and how to protect those rights, to explain the workings of a government investigation, and to suggest ways to handle government investigators and law enforcement officers in the context of an accident, a worksite death, a search warrant, and other investigations.
3. Understand and Utilize Your Constitutional Rights
You, your business and your employees have a constitutional right to a lawyer's counsel before answering or cooperating in any investigation. It is known as the Sixth Amendment. You also have the right to remain silent when questioned by investigators or prosecutors to protect against self incrimination. This is the Fifth Amendment guarantee. It means that you have the right to decline to answer questions that might tend to incriminate you. Use these rights aggressively whenever the circumstance warrants them.
4. Understand that Lying to a Federal Agent or Officer is a Federal Crime
Lies to officials are generally referred to as "false statements." To be a crime, the lie does not have to be given under oath and can be oral or written. Nor does it have to be made in the context of a formal or court setting. Any statement given to a federal officer that can be said to be false, even if mistaken, meets the very low bar of the offense. Most often, the only evidence of the statement is notes or testimony of the federal agent. It is not a requirement of the offense that the government or officer be misled, deceived, or persuaded by the false statement. All that is required for the crime is that the statement have some connection, even though tenuous, to some matter within the jurisdiction of the United States. Today, in America, lying is a federal crime in just about any business context and every business person or executive must be aware of this state of affairs.
5. Contact your Criminal Business Lawyer Immediately
If your company receives a business records subpoena from a grand jury, receives a call from a government investigator or gets raided by a government law enforcement team, call an experienced expert criminal defense lawyer before you answer a single question or do any other thing.
These simple actions can go a long way toward protecting you and your company from criminal business investigations. They are incredibly smart business practices.
Taken from(http://www.smallbusinessbrief.com/articles/legal/010412.html)
- Forgetting to include income on a tax return
- Misstating your income or expenses on a financial statement when applying for a bank loans
- Using loan proceeds for a purpose other than that for which you applied
- Bouncing a check
- Talking to competitors
- Making a mistake on an application for a federal grant, funding or certification
Without exception, the most serious legal disaster that could befall your business is a federal criminal investigation or indictment of you, or any other manager, officer or the company itself. Individuals or the operating business entity, together or separately, can be named as a witness, suspect, or target in an investigation. Enron and Arthur Anderson are famous of such business crime cases which resulted in the collapse of the businesses themselves and imprisonment of the executives. Many national business and legal experts have concluded that the demise of those two giant companies was not caused by the illegal activity of which they were accused, but the damage to their reputations that immediately drove their investors, lenders, and customers away in a panic.
The following business practices can help protect you and your company from being wrongfully accused or convicted of a federal or state crime:
1. Adopt a Government Investigation Policy
This policy should state unequivocally that your company and its employees will cooperate with any government investigation, but only with the assistance of a qualified lawyer. This policy should be adopted at a time when there is no threat of an investigation or hint of any problem. Write the policy down and include it in all company documents, employee handbooks and materials.
2. Hold a Government Investigation Seminar
Conduct an annual, required in-house seminar on business criminal issues, just like safety seminars and courses, for your employees. The seminar should be conducted by a criminal lawyer to instruct employees on individual constitutional rights and how to protect those rights, to explain the workings of a government investigation, and to suggest ways to handle government investigators and law enforcement officers in the context of an accident, a worksite death, a search warrant, and other investigations.
3. Understand and Utilize Your Constitutional Rights
You, your business and your employees have a constitutional right to a lawyer's counsel before answering or cooperating in any investigation. It is known as the Sixth Amendment. You also have the right to remain silent when questioned by investigators or prosecutors to protect against self incrimination. This is the Fifth Amendment guarantee. It means that you have the right to decline to answer questions that might tend to incriminate you. Use these rights aggressively whenever the circumstance warrants them.
4. Understand that Lying to a Federal Agent or Officer is a Federal Crime
Lies to officials are generally referred to as "false statements." To be a crime, the lie does not have to be given under oath and can be oral or written. Nor does it have to be made in the context of a formal or court setting. Any statement given to a federal officer that can be said to be false, even if mistaken, meets the very low bar of the offense. Most often, the only evidence of the statement is notes or testimony of the federal agent. It is not a requirement of the offense that the government or officer be misled, deceived, or persuaded by the false statement. All that is required for the crime is that the statement have some connection, even though tenuous, to some matter within the jurisdiction of the United States. Today, in America, lying is a federal crime in just about any business context and every business person or executive must be aware of this state of affairs.
5. Contact your Criminal Business Lawyer Immediately
If your company receives a business records subpoena from a grand jury, receives a call from a government investigator or gets raided by a government law enforcement team, call an experienced expert criminal defense lawyer before you answer a single question or do any other thing.
These simple actions can go a long way toward protecting you and your company from criminal business investigations. They are incredibly smart business practices.
Taken from(http://www.smallbusinessbrief.com/articles/legal/010412.html)
7 Tax Tips for Small Business
Small businesses have an especially hard time when it comes to taxes. Here are seven tips that will help keep you focused and could help save you money.
1. Deductions – Make the Most of Them
While reviewing your expenditures, remember that ‘ordinary and necessary’ business expenses aren’t just equipment and rent. Business losses can be deducted from the business owner’s personal income taxes. In addition, if you are on a business and pleasure trip, the transportation costs are deductible if you spend more than 50% of your time doing business. Check with your accountant to find out if you are making the most of your deductions.
2. Check out Tax Credits
There are a variety of valuable tax credits available that can reduce your tax liability. These tax credits include Employer Social Security Credit, Disabled Access Credit, Work Opportunity Credit, Research Credit, Investment Credit, and more. Ask your accountant what credits are available for your business.
3. Quarterly Estimated Tax
If your business has a tax bill of more than $500, you should be paying quarterly estimated taxes or you may be hit with IRS penalties which can severely impact your business’s cash flow.
4. Don’t Forget to Give
Charitable contributions can be claimed as deductions!
5. Meet Your Deadlines
Annual returns are due on April 15 for unincorporated companies and S corporations.
C corporations must file within 2 ½ months from the end of their fiscal year.
Estimated Taxes are due 4 times a year: Jan. 15th, April 15th, June 15th & Sept. 15th.
Sales Tax is due quarterly or monthly, depending on what state your business is located in.
Employee taxes are due either weekly, monthly or quarterly, depending on the size of your payroll.
6. Update Your Accounting
Spend time each year reviewing your accounting practices to ensure that your books are up-to-date and accurate. Speak with your accountant about your procedures and ask if your current computer accounting system is the right system for your business.
7. Always Keep Your Tax Documentation for Seven Years
Although no one is looking for an audit, it is better to have your documentation ready if it happens.
Taken From(http://www.smartbiz.com/article/articleview/2518/2/41/)
1. Deductions – Make the Most of Them
While reviewing your expenditures, remember that ‘ordinary and necessary’ business expenses aren’t just equipment and rent. Business losses can be deducted from the business owner’s personal income taxes. In addition, if you are on a business and pleasure trip, the transportation costs are deductible if you spend more than 50% of your time doing business. Check with your accountant to find out if you are making the most of your deductions.
2. Check out Tax Credits
There are a variety of valuable tax credits available that can reduce your tax liability. These tax credits include Employer Social Security Credit, Disabled Access Credit, Work Opportunity Credit, Research Credit, Investment Credit, and more. Ask your accountant what credits are available for your business.
3. Quarterly Estimated Tax
If your business has a tax bill of more than $500, you should be paying quarterly estimated taxes or you may be hit with IRS penalties which can severely impact your business’s cash flow.
4. Don’t Forget to Give
Charitable contributions can be claimed as deductions!
5. Meet Your Deadlines
Annual returns are due on April 15 for unincorporated companies and S corporations.
C corporations must file within 2 ½ months from the end of their fiscal year.
Estimated Taxes are due 4 times a year: Jan. 15th, April 15th, June 15th & Sept. 15th.
Sales Tax is due quarterly or monthly, depending on what state your business is located in.
Employee taxes are due either weekly, monthly or quarterly, depending on the size of your payroll.
6. Update Your Accounting
Spend time each year reviewing your accounting practices to ensure that your books are up-to-date and accurate. Speak with your accountant about your procedures and ask if your current computer accounting system is the right system for your business.
7. Always Keep Your Tax Documentation for Seven Years
Although no one is looking for an audit, it is better to have your documentation ready if it happens.
Taken From(http://www.smartbiz.com/article/articleview/2518/2/41/)
Choosing the Best Name for Your Small Business
What's in a name? For business owners, the answer is: a great deal. Prospective customers will look to your business' name to get a sense of who you are and what you represent. They will also include this element as part of their decision-making process when choosing between your firm and a competitor.
Names have the power to inspire strong feelings, attract or repel customers and generate marketing buzz. A good name can lead to more sales to be recorded with your financial software. For these reasons, small business owners are advised to give due attention to choosing the name of their enterprise.
How to choose a name?
There is no one sure-fire way to ensure you are selecting the best name for your business. Some firms choose to hire professionals to do so, but their services can be costly. If your financial software indicates you don't have the extra money in your start-up budget to pay naming consultants, you can test out a variety of options with friends, family or colleagues.
During your brainstorming session, try to think of between 10 and 20 potential names for your company. There are a number of factors to consider. What qualities do you want people to think of when they hear your name? Would you like a name that is fairly broad - in case you expand into other areas in the future - or specific? What types of names are already being used by competitors in your industry?
Here are some qualities that experts say may reflect a good business name:
Descriptive
For small businesses in particular, choosing a name that is descriptive of what your firm does can be a smart move. If you are new on the scene and no one has heard of you, how will people know what you do?
By choosing a descriptive name, customers who are looking for a particular product or service will instantly be able to know what you offer. If you are keen to be known by something more colorful, a descriptive phrase such as "window cleaning" or "web design" can be tacked onto the end of a more unique name.
Simple
Aim to select a name that is easily spelled and pronounced. The idea is to make it as easy as possible for people to find you online, in the phone book and in business listings. Many owners choose to incorporate their last name, but first make sure yours is not too difficult to spell. You don't want potential customers to mistype and accidentally stumble on someone else's website.
Memorable
Choosing a simple name may be one aspect of choosing a memorable name, but you don't want it to be so straightforward it's forgettable. A unique name can help create a strong brand and distinguish you from your competitors. Your name should be easily passed on via word of mouth and should stick in people's minds when they see it advertised. A demonstrably unique name may also be qualified for trademark protection, whereas a more generic name is not.
Positive
People are more likely to place trust in a business whose name has a strong, positive association. You may want to test out a number of different words and phrases with a group of friends or colleagues to judge which is best. Sometimes the right name evokes what the customer imagines a business represents, rather than its actual function. For example, would you rather hire "Shovel and Hoe Landscaping" or "Green Growth Landscaping" to design your garden?
Promotional
One of your main objectives when naming your firm is to stand out from competitors. Therefore, when choosing a name, consider whether your unique selling point can be included. For example, if you are offering lower prices on bicycle tours than your competitors, how about "Thrifty Cycle Tours"? Or, if you plan to provide the fastest janitorial service in town, what about "Super-speedy Cleaners"?
Customer-focused
Small business names are sometimes based on puns - but do these clever jokes really help draw customers in? The answer depends on your audience. Go back to your marketing plan and consider who you are trying to attract. Would it help to have a serious gets-the-job-done type of name, a more playful approach or one that cause people to think? A used bookstore may hit the mark by calling itself "Shakespeare Books" but "Epicurean Pet Foods" may come off as pretentious unless it is catering to a certain customer base who would appreciate the reference.
taken from(http://smallbusiness.intuit.com/news/Acquiring-customers/19092753/Choosing-the-Best-Name-for-Your-Small-Business.jsp)
Names have the power to inspire strong feelings, attract or repel customers and generate marketing buzz. A good name can lead to more sales to be recorded with your financial software. For these reasons, small business owners are advised to give due attention to choosing the name of their enterprise.
How to choose a name?
There is no one sure-fire way to ensure you are selecting the best name for your business. Some firms choose to hire professionals to do so, but their services can be costly. If your financial software indicates you don't have the extra money in your start-up budget to pay naming consultants, you can test out a variety of options with friends, family or colleagues.
During your brainstorming session, try to think of between 10 and 20 potential names for your company. There are a number of factors to consider. What qualities do you want people to think of when they hear your name? Would you like a name that is fairly broad - in case you expand into other areas in the future - or specific? What types of names are already being used by competitors in your industry?
Here are some qualities that experts say may reflect a good business name:
Descriptive
For small businesses in particular, choosing a name that is descriptive of what your firm does can be a smart move. If you are new on the scene and no one has heard of you, how will people know what you do?
By choosing a descriptive name, customers who are looking for a particular product or service will instantly be able to know what you offer. If you are keen to be known by something more colorful, a descriptive phrase such as "window cleaning" or "web design" can be tacked onto the end of a more unique name.
Simple
Aim to select a name that is easily spelled and pronounced. The idea is to make it as easy as possible for people to find you online, in the phone book and in business listings. Many owners choose to incorporate their last name, but first make sure yours is not too difficult to spell. You don't want potential customers to mistype and accidentally stumble on someone else's website.
Memorable
Choosing a simple name may be one aspect of choosing a memorable name, but you don't want it to be so straightforward it's forgettable. A unique name can help create a strong brand and distinguish you from your competitors. Your name should be easily passed on via word of mouth and should stick in people's minds when they see it advertised. A demonstrably unique name may also be qualified for trademark protection, whereas a more generic name is not.
Positive
People are more likely to place trust in a business whose name has a strong, positive association. You may want to test out a number of different words and phrases with a group of friends or colleagues to judge which is best. Sometimes the right name evokes what the customer imagines a business represents, rather than its actual function. For example, would you rather hire "Shovel and Hoe Landscaping" or "Green Growth Landscaping" to design your garden?
Promotional
One of your main objectives when naming your firm is to stand out from competitors. Therefore, when choosing a name, consider whether your unique selling point can be included. For example, if you are offering lower prices on bicycle tours than your competitors, how about "Thrifty Cycle Tours"? Or, if you plan to provide the fastest janitorial service in town, what about "Super-speedy Cleaners"?
Customer-focused
Small business names are sometimes based on puns - but do these clever jokes really help draw customers in? The answer depends on your audience. Go back to your marketing plan and consider who you are trying to attract. Would it help to have a serious gets-the-job-done type of name, a more playful approach or one that cause people to think? A used bookstore may hit the mark by calling itself "Shakespeare Books" but "Epicurean Pet Foods" may come off as pretentious unless it is catering to a certain customer base who would appreciate the reference.
taken from(http://smallbusiness.intuit.com/news/Acquiring-customers/19092753/Choosing-the-Best-Name-for-Your-Small-Business.jsp)
Friday, 27 May 2011
10 Business Success Secrets in a Bad Economy
The jury is still out about our current economy. Some say the economy has stalled. Others say we are in a slight economic decline. Many are calling this a full blown recession. It doesn’t matter where you fall in the debate, one thing is certain, financial growth is not as easy as it once was.
If you read have been reading the news headlines many CEO’s are focused on cutting costs and laying off employees. These actions are precisely the wrong strategy to take if you want to dramatically grow your company in good times or bad.
The following is a list of 10 recommendations that turn average companies into successful growth companies during a bad economy.
1. Value Before Brand
Focusing your time and money on your “Brand” may increase name recognition however it doesn’t generate revenue. Showing customers what value your product or service provides will generate revenue.
2. Stop Scaring Customers Away
Most corporate websites scare customers away. Your website wasn’t cheap and most likely was developed to attract new customers. If you are not converting 10% of your visitors into leads, then you need to revise your website content.
3. Catch Amnesia
Forget how great you and your business performed last year. The past is the past. This year it’s a new game. The rules have changed and the players are different. What worked last year, will not return the same results. Constantly re-evaluate your industry, competition and economic conditions. From this research, modify your strategy to improve sales and profitability.
4. Walk Away
When times are tough it’s easy to say yes to new business so you can achieve your sales goals. However, not all new business is good business. If the new business does not meet your minimum profit expectations, say no and walk away. Don’t waste your time and resources on non-profitable business.
5. Keep Score
Measure and monitor your key business indicators at least weekly. How do you know where to improve if you don’t know how you’re performing. Do you measure your Customer Conversion Ratio, Tradeshow ROI, Closing Ratio, Marketing ROI, Advertising ROI, Sales Cycle Times, Calls to close a Deal, deal size, etc.
6. Refresh Your Herd
Stop milking your old customers over and over again. Like a dairy farmer, you need to refresh your herd to increase production. To grow your business you need to start focusing on new customers. One of the best ways to refresh your herd is to pick up the phone and start calling new prospects.
7. Work On It, Not In It
Business owners and executives need to pull themselves out of the day to day issues. When times get tough, they spend more time in the details. By doing this they lose sight of what is most important, focusing on how to improve the business performance in a changing competitive environment.
8. Hire Slow, Fire Fast
Most business owners and executives do just the opposite and pay the price. Spend more time hiring the best person for the job. Let go of your non-performers quickly. If you don’t, your costs per sale dramatically increases while revenue decreases.
9. Don’t Generalize, Specialize
Customers will buy more and at a higher price from someone who is a specialist, rather than a generalist. If you are having heart trouble, would you go to a $500 per hour cardiologist or a $100 per hour family doctor. Transform your company, products and service into a specialty.
10. Hunt Now Or Be Eaten Later
To grow your business you need to be a Hunter. Think and act like a hunter in your business. If not, you are the prey. Eventually, you will be eaten and out of business.
Teken from(http://www.executivebusinessadvisers.com/Articles/10_Business_Success_Secrets_in_Bad_Economy.htm)
If you read have been reading the news headlines many CEO’s are focused on cutting costs and laying off employees. These actions are precisely the wrong strategy to take if you want to dramatically grow your company in good times or bad.
The following is a list of 10 recommendations that turn average companies into successful growth companies during a bad economy.
1. Value Before Brand
Focusing your time and money on your “Brand” may increase name recognition however it doesn’t generate revenue. Showing customers what value your product or service provides will generate revenue.
2. Stop Scaring Customers Away
Most corporate websites scare customers away. Your website wasn’t cheap and most likely was developed to attract new customers. If you are not converting 10% of your visitors into leads, then you need to revise your website content.
3. Catch Amnesia
Forget how great you and your business performed last year. The past is the past. This year it’s a new game. The rules have changed and the players are different. What worked last year, will not return the same results. Constantly re-evaluate your industry, competition and economic conditions. From this research, modify your strategy to improve sales and profitability.
4. Walk Away
When times are tough it’s easy to say yes to new business so you can achieve your sales goals. However, not all new business is good business. If the new business does not meet your minimum profit expectations, say no and walk away. Don’t waste your time and resources on non-profitable business.
5. Keep Score
Measure and monitor your key business indicators at least weekly. How do you know where to improve if you don’t know how you’re performing. Do you measure your Customer Conversion Ratio, Tradeshow ROI, Closing Ratio, Marketing ROI, Advertising ROI, Sales Cycle Times, Calls to close a Deal, deal size, etc.
6. Refresh Your Herd
Stop milking your old customers over and over again. Like a dairy farmer, you need to refresh your herd to increase production. To grow your business you need to start focusing on new customers. One of the best ways to refresh your herd is to pick up the phone and start calling new prospects.
7. Work On It, Not In It
Business owners and executives need to pull themselves out of the day to day issues. When times get tough, they spend more time in the details. By doing this they lose sight of what is most important, focusing on how to improve the business performance in a changing competitive environment.
8. Hire Slow, Fire Fast
Most business owners and executives do just the opposite and pay the price. Spend more time hiring the best person for the job. Let go of your non-performers quickly. If you don’t, your costs per sale dramatically increases while revenue decreases.
9. Don’t Generalize, Specialize
Customers will buy more and at a higher price from someone who is a specialist, rather than a generalist. If you are having heart trouble, would you go to a $500 per hour cardiologist or a $100 per hour family doctor. Transform your company, products and service into a specialty.
10. Hunt Now Or Be Eaten Later
To grow your business you need to be a Hunter. Think and act like a hunter in your business. If not, you are the prey. Eventually, you will be eaten and out of business.
Teken from(http://www.executivebusinessadvisers.com/Articles/10_Business_Success_Secrets_in_Bad_Economy.htm)
Thursday, 26 May 2011
Making Your Home Business More Professional
Starting a home business can be tough, but is ultimately very rewarding, especially if you can establish a very professional foundation to get you started. Come clients may initially look down on a home business or not see it as a valid competitive option, but you can work to change their minds.
If you establish yourself as a professional, reputable business in as many ways as you can, you will much more successful with clients. You will be saving lots of money on an office, and you will not have to have other employees, at least to begin with.
Use this saved money to work on your internet marketing, and other ways in which you can establish yourself in the business world. You can be just as competitive as those in your field who work in executive offices.
After all, more and more people are choosing to work from home-if there were not a way to be very successful in this venture, there would be fewer people making the change.
If you market yourself well enough, no one even has to know that your business is established in your home. There will be no difference in quality between you and your competitors.
The key is to know where adjustments need to be made. There is nothing worse than being on a phone call with an important client or potential lead, only to be interrupted by noise, your children, or your pet wanting to go for a walk.
A virtual office will take your calls and route them to your home office phone. The professional receptionist provided by the virtual office service will give your potential customers a good first impression, and you can have them either forward the call or put the call in voicemail.
With a virtual office, you can also safely receive faxes and have a professional address for your business with a virtual office set up. That way you can have complete privacy, and you will know when a client is calling, versus someone just trying to reach your family.
On this note, make sure that you business space remains separate from your personal space. It is hard to focus on your work if you are trying to work in the middle of your kitchen or living room.
Establishing a clear area of your home where you can devote your attention to your work will help you establish a professional attitude that will carry out in your communications with your customer. If you feel like you are in an office, you are more likely to work as if you are in an office.
At the very least, it will keep you focused and organized. Your work area does not need to be very involved, just make sure it is quiet, private, and has everything you need.
Next, be sure to set aside specific times of the day for business related activities. There are times you will want to be with your family, want to exercise, and want to relax and read a book-this can end up filling up your whole day if you do not set aside special times where you work.
If you do not, time can slip away from you too quickly. Decide now how much you want to work, and create a schedule for yourself, that you can stick to.
You will work harder if you do, and you will find more success. Next, do not print business cards on your own computer at home-this is a dead giveaway that you are not as professional as your competitors.
Make sure that you get professional cards made-they are not very expensive, and the quality makes a huge difference. The same goes for any kind of paper advertising you are going to do-do it yourself equals cheap looking.
Last but not least, make sure that you work on your internet marketing, and search engine optimization. Here is where hiring a professional internet marketing solutions company can work wonders in your online presence.
Even if you are doing business exclusively in a local setting, you need to have a professional looking website. A professional company can design you a killer website, and help you to rank high on all the search engines where people may search for your services or product.
Follow these steps, and you will be a fierce competitor, even from your home. Today is the perfect day to set goals, and begin...
This is taken from(http://home-based-business.bestmanagementarticles.com/a-43253-making-your-home-business-more-professional.aspx)
If you establish yourself as a professional, reputable business in as many ways as you can, you will much more successful with clients. You will be saving lots of money on an office, and you will not have to have other employees, at least to begin with.
Use this saved money to work on your internet marketing, and other ways in which you can establish yourself in the business world. You can be just as competitive as those in your field who work in executive offices.
After all, more and more people are choosing to work from home-if there were not a way to be very successful in this venture, there would be fewer people making the change.
If you market yourself well enough, no one even has to know that your business is established in your home. There will be no difference in quality between you and your competitors.
The key is to know where adjustments need to be made. There is nothing worse than being on a phone call with an important client or potential lead, only to be interrupted by noise, your children, or your pet wanting to go for a walk.
A virtual office will take your calls and route them to your home office phone. The professional receptionist provided by the virtual office service will give your potential customers a good first impression, and you can have them either forward the call or put the call in voicemail.
With a virtual office, you can also safely receive faxes and have a professional address for your business with a virtual office set up. That way you can have complete privacy, and you will know when a client is calling, versus someone just trying to reach your family.
On this note, make sure that you business space remains separate from your personal space. It is hard to focus on your work if you are trying to work in the middle of your kitchen or living room.
Establishing a clear area of your home where you can devote your attention to your work will help you establish a professional attitude that will carry out in your communications with your customer. If you feel like you are in an office, you are more likely to work as if you are in an office.
At the very least, it will keep you focused and organized. Your work area does not need to be very involved, just make sure it is quiet, private, and has everything you need.
Next, be sure to set aside specific times of the day for business related activities. There are times you will want to be with your family, want to exercise, and want to relax and read a book-this can end up filling up your whole day if you do not set aside special times where you work.
If you do not, time can slip away from you too quickly. Decide now how much you want to work, and create a schedule for yourself, that you can stick to.
You will work harder if you do, and you will find more success. Next, do not print business cards on your own computer at home-this is a dead giveaway that you are not as professional as your competitors.
Make sure that you get professional cards made-they are not very expensive, and the quality makes a huge difference. The same goes for any kind of paper advertising you are going to do-do it yourself equals cheap looking.
Last but not least, make sure that you work on your internet marketing, and search engine optimization. Here is where hiring a professional internet marketing solutions company can work wonders in your online presence.
Even if you are doing business exclusively in a local setting, you need to have a professional looking website. A professional company can design you a killer website, and help you to rank high on all the search engines where people may search for your services or product.
Follow these steps, and you will be a fierce competitor, even from your home. Today is the perfect day to set goals, and begin...
This is taken from(http://home-based-business.bestmanagementarticles.com/a-43253-making-your-home-business-more-professional.aspx)
Tuesday, 24 May 2011
Home Business Resource - What You Will Need To Start A Successful Business
Starting a home business is a very important decision, and there are some typical home business resources you will need to have in order for you to succeed. Home business resources are assets, services and systems you will need to make your home business run smoothly; and also other steps you will need to take to make sure that you will succeed with your business.
So, to start a successful home business, what resources and steps do you need to take?
? A clearly laid out business plan. Without a business plan and goals to achieve, then you can not get anywhere. A business plan will map out what you need to succeed and how you will achieve your goals.
? Good research. Whatever your business will need, you will need to be well informed about it. So you will need to do me research so that you become an expert on the niche, product or service. Knowledge about the business is an important home business resource, so you must do the necessary research to be well-informed about the industry or product/service.
? A well set-up office. Your office is another important home business resource. You will need to be productive while working from home. You will therefore need an office that has all you will need to run a smooth business; a computer, printer, internet access, fax, telephone, business cards and a conducive work environment. A suitable desk and appropriate lighting in your office is also an important resource that is often underestimated in its importance. You will sometimes work for many hours in a day, and your work space needs to be comfortable. Allocate some money towards setting up a working environment you will enjoy working from everyday!
? Some money to cover capital outlay and running costs is an important home business resource which you will need. Any business requires some form of investment, and you will need to know how much you have, and how much investments and ongoing marketing your business will need for it to succeed. It is therefore recommended that you start your business while you are still employed, so that you have some income to live on while you are still building your business.
? Support system. This can be a mentor; someone who has succeeded with a similar business, or simply your family and friends. You need to have people close to you who will encourage you and give you any support you need. You can also join a forum of people with the same business like yours. A good support network is a very important home business resource.
? Business leads and clients are a crucial home business resource. Making and creating contacts and networking is very important - you need to start building your potential clients base before you launch your business. Start marketing your business by giving away some products and services. By creating a relationship with your potential customers, you build trust with them, and when you launch your business, it will be easy for them to buy from you.
? Be professional! The way you run your business and relate to your customers is very important. Be prepared to 'go the extra mile' with your customers. Care about your customers, and provide all the information they may need.
? Hire any professional help you may need. Treat your business professionally, and if you need the services of a lawyer or accountant, hire/outsource it. It is more productive and effective to get experts to do what you can not do, leaving you time to focus on your business. You will want to do the best for your business; so if there are any home business resources you do not have, outsource them.
If you have the home business resources outlined above, then your business will succeed. Although your home business may only be a small venture, treat it like a real business, and get all the home business resources any business will need in order to be successful.
Taken from(http://www.articlecircle.com/business/tools-and-resources/home-business-resource-what-you-will-need-to-start-a-successful-business.html)
So, to start a successful home business, what resources and steps do you need to take?
? A clearly laid out business plan. Without a business plan and goals to achieve, then you can not get anywhere. A business plan will map out what you need to succeed and how you will achieve your goals.
? Good research. Whatever your business will need, you will need to be well informed about it. So you will need to do me research so that you become an expert on the niche, product or service. Knowledge about the business is an important home business resource, so you must do the necessary research to be well-informed about the industry or product/service.
? A well set-up office. Your office is another important home business resource. You will need to be productive while working from home. You will therefore need an office that has all you will need to run a smooth business; a computer, printer, internet access, fax, telephone, business cards and a conducive work environment. A suitable desk and appropriate lighting in your office is also an important resource that is often underestimated in its importance. You will sometimes work for many hours in a day, and your work space needs to be comfortable. Allocate some money towards setting up a working environment you will enjoy working from everyday!
? Some money to cover capital outlay and running costs is an important home business resource which you will need. Any business requires some form of investment, and you will need to know how much you have, and how much investments and ongoing marketing your business will need for it to succeed. It is therefore recommended that you start your business while you are still employed, so that you have some income to live on while you are still building your business.
? Support system. This can be a mentor; someone who has succeeded with a similar business, or simply your family and friends. You need to have people close to you who will encourage you and give you any support you need. You can also join a forum of people with the same business like yours. A good support network is a very important home business resource.
? Business leads and clients are a crucial home business resource. Making and creating contacts and networking is very important - you need to start building your potential clients base before you launch your business. Start marketing your business by giving away some products and services. By creating a relationship with your potential customers, you build trust with them, and when you launch your business, it will be easy for them to buy from you.
? Be professional! The way you run your business and relate to your customers is very important. Be prepared to 'go the extra mile' with your customers. Care about your customers, and provide all the information they may need.
? Hire any professional help you may need. Treat your business professionally, and if you need the services of a lawyer or accountant, hire/outsource it. It is more productive and effective to get experts to do what you can not do, leaving you time to focus on your business. You will want to do the best for your business; so if there are any home business resources you do not have, outsource them.
If you have the home business resources outlined above, then your business will succeed. Although your home business may only be a small venture, treat it like a real business, and get all the home business resources any business will need in order to be successful.
Taken from(http://www.articlecircle.com/business/tools-and-resources/home-business-resource-what-you-will-need-to-start-a-successful-business.html)
Monday, 23 May 2011
Business Networking without the Work
For the first half of my entrepreneurial life, I had such an allergy to “schmooze” that the idea of business networking was just unbearable. But, I have learned a lot, since, about how to make it work and in doing so, I’ve impacted my business in a myriad of ways. So I would like to share my perspective on it, in hopes that it might spur some of you to leave your SOHO hiding spot, too.
Simply put, the best way to approach networking is as a way to build relationships. My approach is slightly unorthodox, but it works – today, the vast majority of my business comes from networking and referrals.
Before you enter the business networking fray, think about the types of relationships you would like to build for your business network. This could mean determining a type of person or industries that would be a natural fit with yours, or a source for referral business. Sometimes the best places to network are not obvious – it might be a place where no one else does what you do, but many attendees know someone who needs what you do.
You should also consider networking with people you want to be like, or you respect. This can be important for referral business, as well as for developing a mentoring relationship with people who have gone before you. So don’t waste your time at events that can’t possibly introduce you to people you would like or ever do business with!
Once you get out there, simply be yourself, be friendly, and positive. Go out there expecting to make new acquaintances, not hunting for business. I’m often surprised at how tense and desperate people seem at networking events, making me want to grab them by the corners of their suits and say “Relax! It’s not that important!”
Let your enthusiasm for your business bubble out of you in such a way that people cannot help but wonder about you. Be genuine and ask sincere questions of the people you meet, and learn about them. Try not to talk about yourself too much – if you do this right, they will ask you questions, but keep it short and return to what they do. People just love it when you are interested in them, and they remember that! I don’t mean be fake about it - if you really don’t care about other people and what they do, then it will come across in networking and you might better off stay home, after all.
Learn to listen and pay attention to what people say, without your mind racing ahead on what you will say next. This is one of my challenges – my brain is usually whirling a mile ahead of my mouth, so if I can do it, anyone can! It really just amounts to acknowledging that networking is not about YOU, it is about the people you are meeting. You want to learn about them, be curious and interested, and offer information freely and generously that will help THEM.
To do that, come mentally prepared. If you are entering a networking event for a group in a particular industry, do some research before hand on how you could help people in that group. Find out what their particular needs or worries or “pain” is, and have some good information or data stored away in your head for conversation material. You might not use it, but knowing it can’t hurt!
Keep in mind that the quality of the connection is much more important than the quantity. I know that many people will disagree with me on this, but I would rather spend the entire evening talking to one person with whom I ‘click’ than collect a pocket full of cards that I can’t match up to faces.
Networking is very often a long term proposition – I usually have to cross paths with the same folks 2-3 times before they start calling about if I can help them or someone in their network.
Networking never ends when you leave the event. In fact, it just begins and that is what many people don’t realize. I rarely hear from the people I meet at events, and often wonder why they bothered to come? Always follow up with the people you met. If it was just a casual connection, without a clear direction on future relationships, send an email that says it was a pleasure to meet them at the event, and you look forward to crossing paths in the future. Put your contact information in the email – who knows, they might still want to see what it is you do, even if you did only have a brief exchange.
If the potential for future relationship is greater, an email or even a phone call is in order. If it is appropriate, set up a time to get together with that person for coffee or lunch, to talk more without the din of the crowd. Offer to send more information on what you do and ask that they do the same, so you can flesh out your understanding of their business. The best way to develop networking relationships is by reciprocity – telling someone that you would like to keep information stored away on them, so that you can refer business is usually met with an offer to do the same.
Make sure you also have a good relationship management process in place, too. Save the information on the people you meet, that you think there might be future potential for, and categorize them so you can find the information later.
I met a female lawyer at a recent event. We chatted for some time, had some good laughs, found a couple of common denominators, and exchanged business cards. I loved her energy and attitude, and she was interested enough in my business for my natural enthusiasm to bubble forth. I knew this was someone to weave into my relationship-network. So, shortly after, I wrote her an email, and set up lunch to discuss how we might help each other. As it happens, she works with many small business start ups, which would benefit from my services. And I frequently run across business owners who need an attorney. Going forward, my relationship-management systems will nudge me to follow up with her and perhaps do lunch occasionally, and I will periodically send her tidbits of information that might help her business.
The truth is she is the only person I really talked to at that event filled with 100+ business people, and it was worth every minute. Networking really isn’t so bad when you relax and focus the objective on just building one new relationship with someone you might sincerely like, respect and want to do business with.
Simply put, the best way to approach networking is as a way to build relationships. My approach is slightly unorthodox, but it works – today, the vast majority of my business comes from networking and referrals.
Before you enter the business networking fray, think about the types of relationships you would like to build for your business network. This could mean determining a type of person or industries that would be a natural fit with yours, or a source for referral business. Sometimes the best places to network are not obvious – it might be a place where no one else does what you do, but many attendees know someone who needs what you do.
You should also consider networking with people you want to be like, or you respect. This can be important for referral business, as well as for developing a mentoring relationship with people who have gone before you. So don’t waste your time at events that can’t possibly introduce you to people you would like or ever do business with!
Once you get out there, simply be yourself, be friendly, and positive. Go out there expecting to make new acquaintances, not hunting for business. I’m often surprised at how tense and desperate people seem at networking events, making me want to grab them by the corners of their suits and say “Relax! It’s not that important!”
Let your enthusiasm for your business bubble out of you in such a way that people cannot help but wonder about you. Be genuine and ask sincere questions of the people you meet, and learn about them. Try not to talk about yourself too much – if you do this right, they will ask you questions, but keep it short and return to what they do. People just love it when you are interested in them, and they remember that! I don’t mean be fake about it - if you really don’t care about other people and what they do, then it will come across in networking and you might better off stay home, after all.
Learn to listen and pay attention to what people say, without your mind racing ahead on what you will say next. This is one of my challenges – my brain is usually whirling a mile ahead of my mouth, so if I can do it, anyone can! It really just amounts to acknowledging that networking is not about YOU, it is about the people you are meeting. You want to learn about them, be curious and interested, and offer information freely and generously that will help THEM.
To do that, come mentally prepared. If you are entering a networking event for a group in a particular industry, do some research before hand on how you could help people in that group. Find out what their particular needs or worries or “pain” is, and have some good information or data stored away in your head for conversation material. You might not use it, but knowing it can’t hurt!
Keep in mind that the quality of the connection is much more important than the quantity. I know that many people will disagree with me on this, but I would rather spend the entire evening talking to one person with whom I ‘click’ than collect a pocket full of cards that I can’t match up to faces.
Networking is very often a long term proposition – I usually have to cross paths with the same folks 2-3 times before they start calling about if I can help them or someone in their network.
Networking never ends when you leave the event. In fact, it just begins and that is what many people don’t realize. I rarely hear from the people I meet at events, and often wonder why they bothered to come? Always follow up with the people you met. If it was just a casual connection, without a clear direction on future relationships, send an email that says it was a pleasure to meet them at the event, and you look forward to crossing paths in the future. Put your contact information in the email – who knows, they might still want to see what it is you do, even if you did only have a brief exchange.
If the potential for future relationship is greater, an email or even a phone call is in order. If it is appropriate, set up a time to get together with that person for coffee or lunch, to talk more without the din of the crowd. Offer to send more information on what you do and ask that they do the same, so you can flesh out your understanding of their business. The best way to develop networking relationships is by reciprocity – telling someone that you would like to keep information stored away on them, so that you can refer business is usually met with an offer to do the same.
Make sure you also have a good relationship management process in place, too. Save the information on the people you meet, that you think there might be future potential for, and categorize them so you can find the information later.
I met a female lawyer at a recent event. We chatted for some time, had some good laughs, found a couple of common denominators, and exchanged business cards. I loved her energy and attitude, and she was interested enough in my business for my natural enthusiasm to bubble forth. I knew this was someone to weave into my relationship-network. So, shortly after, I wrote her an email, and set up lunch to discuss how we might help each other. As it happens, she works with many small business start ups, which would benefit from my services. And I frequently run across business owners who need an attorney. Going forward, my relationship-management systems will nudge me to follow up with her and perhaps do lunch occasionally, and I will periodically send her tidbits of information that might help her business.
The truth is she is the only person I really talked to at that event filled with 100+ business people, and it was worth every minute. Networking really isn’t so bad when you relax and focus the objective on just building one new relationship with someone you might sincerely like, respect and want to do business with.
7 Secrets to Business Startup Success
There are seven essential principles that you must practice as an entrepreneur throughout your business life if you are to achieve maximum success. They have been taught and repeated in thousands of books and articles over the years, and here they are.
1. Clarity: You must be absolutely clear on who you are and what you want. You need written goals and plans for every part of your life.
Begin with your values. What do you believe in and stand for? What is most important to you in life? What would you pay for, fight for, suffer for and die for? What do you really care about? Someone once wrote, "Until you know exactly what you would do if you only had one hour left to live, you are not prepared to live."
What is your vision for yourself and your future? What is your vision for your family and your finances? What is your vision for your career and your company? Even if you are starting your business on a kitchen table, you must have a vision of becoming a world leader in your field, or you will probably never be successful.
What is your mission for your business? What is it that you want to accomplish for your customers? What is it that you want to do to improve the lives and work of the people you intend to serve with your products and services? You need a clear vision and an inspiring mission to motivate yourself and others to do the hard work necessary to achieve business success.
What is your purpose for your life and your business? Why do you get up in the morning? What is your reason for being? And here's a great question: What do you really want to do with your life?
Finally, what are your goals? What do you want to accomplish in your financial life? What are your family goals? What are your health goals? What difference do you want to make in the lives of others? And here is the best question: What would you dare to dream if you knew you could not fail?
The greater clarity you have regarding each of these issues--values, vision, mission, purpose and goals--the greater the probability that you will accomplish something wonderful with your life.
2. Competence: To be truly successful and happy, you must be very good at what you do. You must resolve to join the top 10 percent in your field. You must make excellent performance of the business task your primary goal and then dedicate all your energies to doing quality work and offering quality products and services.
To be successful in business, you must find a field that satisfies three requirements. First, it must be something for which you have a passion-something you really believe in and love to do. Second, it must be an area where you have the potential to be the best, to be better than 90 percent of the people in that field. Third, it must involve a product or service that can be profitable and enable you to achieve all your financial goals.
According to the Harvard Business School, the most valuable asset a company can develop is its reputation. Your reputation is defined as "how you are known to your customers." And the most important reputation you can have revolves around the quality of the products and services you offer and the quality of the people who deliver those services and interact with those customers.
3. Constraints: Between you and your goal, whatever it is, there will always be a constraint or limiting factor. Your ability to identify the most important factor that determines the speed at which you achieve your business goals is essential to your success.
The 80/20 rule applies to constraints in your business. Fully 80 percent of the reasons that you are not achieving your goals as quickly as you want will be within yourself. Only 20 percent will be contained in external circumstances or people.
What are your constraints? What holds you back? What sets the speed at which you achieve your goals? And what one thing could you do immedi-ately to begin alleviating your main constraint? This is often the key to rapid progress.
4. Creativity: The essence of successful business is innovation. This is the ability to find faster, better, cheaper, easier ways to produce and deliver your products and services.
Fortunately, almost everyone is a "potential genius." You have more intelligence and ability than you could ever use. Your job is to unleash this creativity and focus it, like a laser beam, on removing obstacles, solving problems and achieving your goals.
The essence of creativity is contained in your ability to solve the inevitable problems and difficulties of business life. Colin Powell said, "Leadership is the ability to solve problems." Success is the ability to solve problems. And remember: A goal unachieved is merely a problem unsolved.
The way of the successful entrepreneur is to focus on the solution rather than the problem. Focus on what is to be done rather than what has happened or who is to blame. Concentrate all your attention on finding a solution to any obstacle that is holding you back from the sales and profitability you desire. And the more you think about solutions, the more solutions you will think of. You will actually feel yourself getting smarter by focusing all your energies on what you can do to continually improve your situation.
5. Concentration: Your ability to concentrate single-mindedly on the most important thing and stay at it until it is complete is an essential prerequisite for success. No success is possible without the ability to practice sustained concentration on a single goal or task, in a single direction.
The simplest way to learn to concentrate is to make a list for each day before you begin. Then prioritize the list by putting the numbers 1 through 10 next to each item. Once you have determined your most important task, immediately begin to work on that task. Discipline yourself to continue working until that top task is 100 percent complete. When you make a habit of doing this--starting and completing your most important tasks each day--you will double or triple your productivity and put yourself solidly on the way to wealth.
6. Courage: Winston Churchill once wrote, "Courage is rightly considered the foremost of the virtues, for upon it, all others depend." It takes tremendous courage to take the entrepreneurial risks necessary to become wealthy. In study after study, experts have concluded it is the courage to take the "first step" that makes all the difference. This is the courage to launch in the direction of your goals, with no guarantee of success. Most people lack this.
Once you have begun your entrepreneurial journey, you also need the courage to persist. As Ralph Waldo Emerson once said, "All great successes are the triumph of persistence."
The word entrepreneur means "one who undertakes the risks of a new ven-ture in pursuit of profit." Fully 90 percent of the population will never have sufficient courage to launch a new venture, to start a new business, to boldly go where no one has gone before. You need, first of all, the courage to begin, to move out of your comfort zone in the direction of your goals and dreams, even though you know you will experience many problems, difficulties and temporary failures along the way.
Second, you need the courage to endure, to hang in there, to persist in the face of all adversity until you finally win. When you develop these twin qualities--the ability to step out in faith and then to persist resolutely in the face of all difficulties--your success is guaranteed.
7. Continuous Action: Perhaps the most outwardly identifiable quality of a successful person is that he or she is in continuous motion. The entrepreneur is always trying new things and, if they don't work, trying something else. It turns out that most entrepreneurs achieve their success in an area completely different from what they had initially expected. But because they continually reacted and responded constructively to change, trying new methods, abandoning activities that didn't work, picking themselves up after every defeat and trying once more, they eventually won out.
Top people, especially entrepreneurs, seem to have these three qualities. First, they learn more things. Second, they try more things. Third, they persist longer than anyone else. The good news is that, because of the law of probabilities, if you learn more things, try more things and persist longer, you dramatically increase the probability that you will succeed greatly. If you launch toward your goal and resolve in advance to never give up, your success is virtually guaranteed.
The Ultimate Reward
The greatest reward in becoming a millionaire is not the amount of money that you earn. It is the kind of person that you have to become to become a millionaire in the first place.
The greatest reward in becoming a millionaire is not the amount of money that you earn. It is the kind of person that you have to become to become a millionaire in the first place.
To have more, you must first be more. For you to set out on the way to wealth and become a self-made entrepreneurial millionaire, you will have to develop many qualities at a higher level than you ever have before. You will have to become an exceptional person. You will have to become more than you ever imagined possible for you.
To realize your full potential and achieve all your financial goals in your own business, you must develop the virtues of integrity, courage and persistence to a much higher level than you have up to now. You will have to practice the qualities of clarity, competence, creativity, concentration and continuous action until they are as natural to you as breathing. You will have to accept complete responsibility for your life and everything that happens to you, and especially for the way you think in every area.
When you develop these qualities and become a completely different person, you will eventually achieve all your goals in life, including financial success. The best part of becoming an extraordinary person is that, if something happens and you lose it all, it won't really matter. Because you have become a different person, you will be able to make it all back again and more, far faster than the first time.
Welcome to The Way to Wealth. You are about to embark on a grand adventure that may last for the rest of your working lifetime. But if you have the courage to begin and the persistence to endure, nothing can hold you back from achieving all your goals and dreams. If you decide that, no matter what, you will never give up, you will eventually become unstoppable.
Action Plan
Take these steps to get going on your business goals.
Take these steps to get going on your business goals.
- Decide exactly what you want in life in each area, and write it down. Make your goals clear, specific and measurable.
- Specify the most important skill you could develop to move you into the top 10 percent of people in your field. Then do something immediately to begin developing that skill.
- Identify the major constraint or limiting factor inside yourself or in your world that is setting the speed at which you achieve your most important goal, and begin working on removing that constraint today.
- Determine your single biggest problem or obstacle in your business or personal life. Then focus all your time and attention on the possible solutions.
- Make a list of what you would want to be, do and have if you had no limitations and you were absolutely guaranteed success.
- Accept complete responsibility for your life. From this day forward, refuse to make excuses or blame anyone for anything. Instead, take action to make your goals a reality.
- Reaffirm and visualize your goals of financial success, excellent health and personal happiness as a reality. Remember, the person you see is the person you will be.
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