What is the Best Way to Sell My Business Online

Marketing a business for sale by owner or through a broker on the Business Broker Journal Network offers several distinct advantages for you, the seller. Let's take a look at the benefits of each approach.

How can business brokerages help me to sell my business?

If you are not comfortable tackling the task of selling yourself, a broker could be worth the fees you will pay. The sale of a business should be approached with much more formality than the sale of residence. Using a broker gives you an expert who can help you prepare your business for sale, find a buyer who will pay top dollar, and negotiate the details.

1.) Shouldering the load: Selling your business requires a great deal of time and attention, two things that you may not be able to spare while continuing the daily operational requirements of running your business. Passing selling, negotiating and closing responsibilities on to a business broker will allow you to focus on your business and keep you from being spread too thin.

2.) Confidentiality: When listing a business for sale by owner, the owner reveals that his enterprise is for sale, therefore affecting the relationship with the public and prospective buyers, employees, suppliers and other associates. A good business broker can market a company for sale in such a way that protects the owner's identity and effectively screen potential buyers to ensure that they are qualified and serious about purchasing.

3.) Close Quicker: With a business broker working full-time on the sale, chances are the transaction will be completed much sooner and for a higher price. To find a business broker in your area, click on Find a Broker.

4.) Buyer Interaction: When business brokerages sell businesses, the owners involved are very rarely able to speak to potential buyers. Being able to speak directly with someone will give you an idea of how badly he wants the business and how he might run it so keep in touch with your broker regularly for updates on all prospect-related conversations.

Should I sell my business myself or work with a Business Broker?

Listing your business for sale by owner is one of the simplest ways to approach a very important business transaction. You've invested so much time, sweat and money into your business, and it can be difficult to entrust your entire future to a third party even if trust is very high. Can I really sell my business myself?" you ask. The answer is absolutely! Let's examine more closely the benefits of selling a business independently.

1.) Cost savings: This is nearly always the primary concern for business owners who decide to sell their own business. The commission on the sale of a large business can be very lucrative for a broker, and take a large chunk of profit away from you. This can be especially dangerous if you are attempting to sell a troubled business. Managing the sale of your own business can keep much-needed money in your pocket.

Posting your business online is an easy and cost efficient way to advertise, and will reach infinitely more interested parties than advertising in print. At Business Broker Journal.com, you can list your business for sale by owner for only $49.95 per month. In addition, premier placement is available for a reasonable fee, giving your business additional exposure on the site. The average business takes between five and eight months to sell, and a online listing can dramatically shorten that statistic.

Whether you sell your business independently or use business brokerages, marketing on the Business Broker Journal network can help you gather the largest number of lucrative offers in the shortest amount of time, ensuring a win-win situation for both you and your buyer.

Small Business Plan Online and Resources

Small business plan online generally refers to resources a business can use to write an effective, persuasive business plan. When looking for funding, potential lenders and investors use a business's plan to determine the risk of a business based on its ability to profit. The more thought out a plan is, the greater a business's chances are of obtaining financing for start-up and operating expenses.

Several companies offer business plan online software that helps businesses with every step of the writing process. They provide step-by-step guides and samples of well-written business plans. Owners may also be able to find a professional writer to compile the business's information into a successful plan.

Other companies, including lending institutions and the Small Business Administration, offer similar services that do not require the purchase or installation of software. These small business plan online websites give business owners access to a wealth of information regarding detailed explanations of each section of a business plan. Websites with help forums allow owners to get their problems resolved quickly and easily by fellow business owners or professional financial consultants. One service offered by the Small Business Administration is a free business planning workshop that not only gives advice on writing business plans, but also advice on how to follow through on those plans.

There are many small business plan online options available to business owners who want to increase their chances of attracting potential investors and lenders. Using a combination of one or more of these services can lead to increased profitability.

A small business resource is information provided by financial companies to help business owners with common business problems. Most lenders, including commercial banks, credit unions, the Small Business Administration (SBA), and non-traditional loan providers, allow entrepreneurs to access information regarding loans and financing. However, there are other companies that offer more extensive resources, such as stock reports, current news, and management advice. Most resources allow free access, while others may require fees.

A lender's small business resource is usually limited to the finances of a business. Most lenders now provide websites for easier access to their resources. Businesses can find information on the different loan programs provided, such as requirements, loan amounts, interest rates, and repayment options. Entrepreneurs may also be able to apply for a loan online via a secure electronic application. Some financial companies offer debt counseling and financial management workshops to businesses having financial difficulties.

Another small business resource is general-purpose business websites designed to aid small businesses. In addition to providing information on funding options, these sites also offer up-to-date stock reports and business news. Businesses in need of advice can find a multitude of articles on how to manage finances and business operations. Some resources also offer forums to let entrepreneurs to connect to one another and share opinions and experiences.

5 Fatal Errors to Avoid When Starting a Business

It never ceases to amaze business owners how some seemingly simple decisions, made during the early years of their business startup, can become fatal errors down the road. After meeting with many business owners across a broad spectrum of industries it's common to find them enduring the consequences of the same, or similar, errors over and over again. In most cases these early errors become very costly. In some cases they are fatal. Below are the 5 most common errors to avoid when starting a business.

1. The most common error to avoid is not doing the math.

While successful business owners need not have a PhD in Mathematics, they do need to know how to use the basic functions of a calculator. Every fourth grade student has learned the basic math skills of addition, subtraction, multiplication and division. It's surprising to see how infrequently they are applied. Not doing the math can be the root cause of long term financial difficulties for business owners. Here are a few of the many ways:

* Offering an employee a salary without considering all of the associated costs of employment. Such costs include employer federal, state and local taxes, unemployment taxes, worker's compensation insurance, healthcare and other insurance premiums, retirement and incentive compensation, vacation and other forms of paid leave and benefits.

* Signing a lease for retail or office space without considering all of the associated costs of the lease and/or understanding what the relative market price per square foot is in the community. It is somewhat difficult to compare commercial rental space unless you break it down to the cost per square foot "fully loaded." This analysis requires addition, multiplication and division. However, it's important to understand that it is necessary to add up all of the costs associated with the rental space on a monthly basis (not just monthly rent), multiplying that figure by twelve and then dividing it by the number of square feet to obtain the "fully loaded cost per square foot." Armed with this information, the entrepreneur is able to compare apples-to-apples.

* Ignoring the total costs required to deliver the product or services offered by the business. If all the costs are not considered, the likelihood of a business being able to set the price for its product or services at a level that permits the business to earn a profit is a gamble at best. Pencil, paper, and the addition function on the calculator are what the entrepreneur needs to avoid this fatal error. It's really simple. Just do the math!

2. The second fatal error is offering equity without risk to friends and family members in an effort to entice them to become the business owner's partner.

While many friends and family may have proven to be loyal and responsible people, not all of them prove to be great entrepreneurs. And most of them make lousy partners. Not really nice to say, but true in most cases, nonetheless.

When starting out, many entrepreneurs find the journey frightening and feel that they "need" a partner to pull it off. In some cases, this is true. They recognize their own talents but understand they need the skills and talents of others to succeed in the long term. Where the business owner runs into trouble is when they find it comforting to search for that complementary talent among their lifelong friends, college roommates, or sister or brother-in-law.

And it creates an even more complicated situation when a business owner offers their friends and family the promise of equity without requiring them to assume risk. Risk comes in many forms. Risk may include cash to start and/or sustain the business, bank or lease personal guarantees, cash for payroll, working more than the typical 40 hours, and in some cases contributing sweat equity without compensation in any amount whatsoever until the company makes a profit.

If one partner is assuming such risks and other "partners" are not willing to do the same, then the unwilling partners are not partners at all. By offering them rights to company ownership, you are giving them equity without risk. If such an arrangement does not bother the entrepreneur initially, it will some day in the future. When it does, the feelings of frustration, disappointment, anger and betrayal will become a problem. It is better not to form partner relationships with others unwilling to share your risk.

3. The third fatal error is ignoring the Exit.

Most entrepreneurs learn and understand that when they start a business, it is in their best interest to protect their non-business assets such as their home, other real estate, and investments from potential creditors of their business. In the early days of forming a new business, it is typical for the business owner to meet with their attorney and form some type of entity to shelter this risk.

It is an exciting time for the entrepreneur. The days go by quickly as many hours are devoted mentally to the development of the business plan, name, logo, new relationships, etc. Much like the honeymoon for many newlyweds, the entrepreneur doesn't see how the exit should be carefully planned now. Not later.

If a "partner" has been brought into the business in the form of a shareholder in the case of a corporation, a partner in the case of a limited or general partnership, or a member in the case of a Limited Liability Company (LLC), now is the time to plan for the departure of the "partner." If the plan is to wait to negotiate the terms of departure until the time when it is needed, the experience will prove to be difficult, stressful, very expensive, and in some cases impossible to accomplish.

It is not unusual to find businesses operating with partners who have not spoken to one another for several decades. Often, the reason is rooted in the fact that they skipped the exit planning process when they formed the company. No thoughts were given to the possibility that one or more of the partners may not want to continue in the role as an owner or may become ill or incapacitated. Over time, life circumstances change for each individual partner and the perspective of each partner may shift. Partners who were in agreement in the beginning do not always see eye-to-eye over time. This is where trouble begins and is often very difficult to resolve.

4. The fourth fatal error is not practicing your ABC's.

Once again, applying what was learned in elementary school proves to be helpful when starting a business. The ABC acronym is useful to entrepreneurs whether they are seasoned veterans or in the start-up stages of their business.

A-B-C means: Always Be Counseled. When you are considering a legal agreement, written or oral, find competent legal and financial help. Don't skip this important step and wing it. If you take shortcuts, you will likely find yourself spending more time, money, and precious resources down the road to resolve problems. What initially may appear to be a simple contract may have serious, complicated consequences that the unsuspecting entrepreneur does not understand and/or anticipate. If you do not have an Attorney and CPA, ask other successful entrepreneurs to make a recommendation. Such professionals should be familiar and experienced in working with businesses like yours. Ask about the typical client for whom they work and be certain that the professional fits with who you are and what your business does.

A-B-C also means: Always have an A, B, and C plan. The sooner an entrepreneur begins to think in terms of planning in multiple scenarios, the better. But, before the business owner goes through the trouble of planning for the best outcome (the A plan), a good outcome (the B plan), and a workable outcome (the C plan), they should start at Disaster (the D plan). One may wonder, "why don't we call it the ABCD plan?" That is because, no one likes to think or talk about the "Disaster." The truth is, successful entrepreneurs think in those terms. Because if they do think about the absolutely worse-case scenario in the beginning (of a business venture or any other business challenge), then the rest is simple. A-B-and C just falls into place. If an entrepreneur is going to make it successfully to the end of the lifecycle in their business venture, they will face many obstacles. Obstacles become a way of life. The skills an entrepreneur needs to overcome the obstacles are borne from practicing the A-B-C plan. But remember, start at plan D.

5. The fifth fatal error is making promises you can't keep.

Most people do not know that a verbal promise is a valid contract. It's true and it can get the enthusiastic entrepreneur, particularly during the start-up stage in their business, into big trouble.

Most typically, business owners find themselves stepping on this landmine when they deal with employees. Promises made during the recruitment and/or employment term are carved in stone in the mind of that recruit or employee. Somehow, they never forget what was said to them. They may embellish it a bit, too. If stock or other form of ownership is mentioned to a recruit or an employee, and the business owner does not deliver on the promise, the likelihood of litigation increases dramatically. It won't happen immediately. Instead, it happens either when the employee hits bottom or when the entrepreneur succeeds.

There is an expression familiar to business owners who have dealt with the employee promises. And it goes, "what you have given, you can never take away." If the business owner does, they are the goat. Typical employee benefits offered to employees in addition to their salary are often invisible to the employees until they are taken away. Benefits such as health, disability and life insurance coverage, automobile access, vacation and/or paid time off, continuing education, and child care are very costly to the business owner. In some cases, the business owner adds employee benefits as the company stabilizes and begins to make a profit. These additions to an employee's compensation package may not have been initially included in the employee's Employment Agreement. It is the addition of the benefits that becomes one of those employee promises. As a business owner starts to hire employees and add benefits to their compensation packages, they should be very mindful of both the written and verbal promises made to avoid a fatal ending.

Ten Things to Think About Before You Start a New Business

The tux fits perfectly. The boutonniere is jauntily pinned to your lapel. All of your friends and family are patiently watching and waiting for you... and then you see her, waiting at the other end of the aisle - it's your new business.

Much like expectations of wedded bliss upon getting married, high hopes and expectations abound when you are starting a business. But, like so many others in life, starting your very own business is a lifelong commitment. Before making the plunge, here are 10 questions to consider:

1. Is it a viable business? This is the big one... that's why I put it first. So many people rush into a business just because it sounds like a good idea or it's something they really want to do. The question to ask yourself is "Do I really want to risk hundreds of thousands of dollars on a hunch or a feeling?" The answer will come from your due diligence.

• The idea

First, is it a workable business? For example, you can't mine for diamonds on Pluto. No one even knows if there are diamonds there, and unless you have a spaceship handy, you can't get there. Similarly, you can't grow oranges in Alaska. As much as you may want to, they just won't grow there. Go to Florida or California instead.

Your business has to be based in reality. It has to be doable, and it has to have a large enough market willing to pay the price for your product or service.

• The market

For example, take a store filled with fancy dog collars. Yes, dogs wear collars. But will you really find 10,000 people a year willing to spend $100 for a bling-ed out dog collar in a town of 1,000 people? Doesn't sound like a good bet to me!

As I stated above, you need a target market that is large enough to sustain you-plus the ability to convert enough of that market into customers on a continual basis.

• Profit Potential

OK, so if the idea is workable and there's a market, that's great. Next you have to see if it will be profitable. It's not enough to open the doors. The only thing that's going to keep those doors open is customers-lots of them.

This is going to require a little more work to figure out. You need to estimate as accurately as possible every single expense involved in this business-from the rent to the inventory to the marketing to the payroll, even the licensing fees.

Usually, you'll have start-up and operating costs. As in, it takes $1.5 million to open the doors of a typical McDonald's. What it takes to run it every month-that's additional. And so you'll have to make enough money every month to not only cover those monthly expenses but also to recoup your investment plus turn a profit. It can be a tall order! So that leads me to the other side of the equation-projected sales or revenue (the money you will be bringing in). Since there are so many hands in your pocket as a business owner (the employees, the taxman, the utility companies, your inventory suppliers... you name it), you get to keep only a fraction of every dollar you make. That's why it's critical to find out what that profit margin will be. Thirty percent? Twenty percent? Ten? The answer is: It depends on the business.

Let's take a look at the latest information available as of this writing. Of course, it only includes publicly traded companies, as private companies tend to keep their information, well, private!

First, if you take the information all together, the median profit margin across all industries in the United States is currently about 4.6%. The average is a little lower, at 4.4%. That's right, less than 5 %! Meaning that the average business makes about 4 cents profit out of every dollar in sales. That's not so great, is it? You'd have to do a huge volume of sales-or have an extremely high-priced product (4% of $1 million isn't too bad) to get by on that profit margin.

Now, obviously, some businesses are more profitable than others. Near the top of the list are Internet Information Providers with an average profit margin of 22.7%. Hmmm... very interesting! Could it be because of the low overhead required for that sort of business? Most likely-with lower expenses, you get to keep more of the money that you make.

How about your McDonalds? While I'm not sure what your individual store would do, overall the restaurant category had a 9.1% average profit margin. It beat the 4.4% average profit margin!

This-and any other general information you may find-can give you a rough idea of your profit margin.

But it's no guarantee.

I should know. I had a home-improvement store (I call it a hardware store, but whatever). According to the latest numbers, the average home-improvement store has about a 4% profit margin. Well, I didn't. In fact, in my last full year (2009), I lost $100K... which put my profit margin in negative territory. Because of where my store was located and what was going on in my area's economy, I lost money in a big way. I was not alone. Other industries that are in negative territory right now include music and video stores, residential construction, radio broadcasting, surety and title insurance, recreational goods, and resorts and casinos. And that's just the short list!

• Do Your Due Diligence

So as you can see, there is A LOT that goes into determining whether your business will be viable or not! But it's important to take the time to find out nonetheless. And better now than later when you're struggling to pay the bills. When you've spend your life savings. When you're in debt up to your eyeballs!

Obviously if the business is already running, this whole process is much easier. Still, don't make assumptions based on what you see and hear. Do your due diligence on any business you are interested in buying. That basically means that you need to find out everything about it:

A complete financial picture-You need to know about everything. Gross sales, expenses, profit margin history... going as far back as you can get. Don't take someone's word for it. Get the tax returns and actual financial records of the business (this will also ensure that they've been honest with the government-you don't want to get sacked with a huge, delinquent-tax bill). This also includes any debts the business owes, the insurance they carry, the licenses they must hold, etc.

Legal Matters-Is the business involved in any lawsuits? Has it received any "cease and desist" letters? Does it have a checkered past? Check it out yourself.

Labor Issues-You need full disclosure on the employees' salaries, benefits, contracts (even verbal promises made), history, etc.

Property-Do they own the property or rent? How long is the lease for? This expense can mean the difference between profitability and poverty, so make sure you can afford it. Beware of a lease that may be expiring soon. You'll need to negotiate a reasonable new contract in writing so that you don't get whacked with an increase that you cannot afford.

You just can't be too thorough when you're determining a business's viability. So take your time and get it right. Remember, don't wait until you are up and running to find out what is wrong. It's better to walk away than to make a mistake that has lifelong ramifications. Don't rush it!

2. Is it recession proof?

You may be thinking that there is no such thing as a recession-proof business. I suppose if the world economy were to permanently collapse and there were no recourse, it would be true. But somehow, somewhere across the globe I think we'd find a way to get through it.

The point is that there are some businesses that are more recession proof than others. It's really a continuum. One extreme would be a business that is highly susceptible to economic conditions, for example, construction. It seems that one of the first things people do is stop unnecessary projects. The other extreme would be food... as in a grocery store or a restaurant. People have to eat. And the way our society is right now, most people can't grow or catch or raise enough to feed themselves. Therefore, they have to buy their food.

So where would your business fall on that continuum?

One note here: Just because the business you are considering is not completely recession proof doesn't mean that you have to toss out the idea. You just need to be aware of that vulnerability. And when the good times come, stash away a hearty reserve so that you can make it through the bad times.

3. What about the competition?

How competitive is the marketplace you are going into? Once again, there's a continuum between a completely open market (you'll be the only one) to overcrowded (it's difficult for the consumer to even be aware of, much less distinguish between, all the companies out there).

Obviously, with a completely open market, you will have a larger share of customers. You will have to work hard, however, to get the word out about what you do. It may take some time and marketing dollars to gain traction in the marketplace. Once you do though, it can be a quick rise to success! With a crowded marketplace, you'll need to do a careful analysis of the competition. See who is doing well and who is flailing. Then you'll need to try to find out why. And you'll need to look for a way to compete-can you do it better/faster/cheaper?

Or maybe you can find a new use for an old product and tap into an entirely new market. Either way, being able to state your competitive advantage is key to your ultimate success.

4. What about the target market?

Who are your most likely customers? Find out who they are, what they think, and what they like. Solicit their opinions on your business idea. You can use a focus group or simply run it by people you know (or people they know) who fit the demographic bill.

It's essential to get a read on whether the target market will actually like and buy your products and services. Don't skip this step... it's important!

5. Will technology make this obsolete in 10 years?

Here you need to employ foresight.

Imagine being the long-time owner of a camera and film-developing establishment. People have digital cameras now, which they can pick up at WalMart for under $80. Then they transfer their photos directly to their computers and print them out on their own printers. The quality? It can be amazing! This is how a store that was profitable for decades can seemingly suddenly become obsolete in a matter of a few years (sometimes less). Travel agents are another example. Customers cut them out of the loop when they went online to book directly. It's a dying industry now.

And that's not all. Thanks to NetFlix and video on demand, video rental stores are biting the dust. Newspapers, yellow pages... they are in the painful throes of death, too. They just can't compete with the Internet. Even the post office is feeling the pain with online bill paying!

Whatever business you ultimately choose, make sure it's of enduring interest to your target market-and that, as far as you can see, it will stay relevant no matter what technological advances come our way in the next 10 years.

The next 5 questions to ask before you start a business zero in on you. A business can be viable and recession proof. It can be the only one in the marketplace or have an unbelievable competitive advantage. It can have a large target market that loves its products and is willing to pay the price for them, and it can be immune to technological advances.

But all of that means nothing unless you are ready, willing, and able to do what it takes to make that business successful, unless you have the right mindset and support.

So take a few moments to ask yourself the next 5 questions to see whether you and this business are meant to be... or if you should keep looking for the right one.

6. Can you see yourself doing it for the next 20 years? You need to love what you are doing every day. You will work harder owning your own business than you ever would working for someone else. Being passionate about your business will help carry you through the tough times.

7. What kind of commitment will it take to make the business successful?

There are 2 types of commitment: time and financial.

How many hours and days of the week will this new business require of you? 40? 50? 80? 100? Are you willing to give it that?

Also consider the location. If it's a retail business, you'll need to be away from your family or significant other for those hours and days of the week. Think about the impact it will have on your personal life. You need to be willing to make the sacrifice if you have any hope of having your business succeed.

Seven Keys to a Recession-Proof Business

How a Former Retailer Transformed His Business-and His Life-with an Internet Business...and How You Can, Too

The charming, homey, mom-and-pop business on the corner with the sweet couple who provide personal service. The multibillion-dollar corporation with hefty CEO bonus packages and an army of well dressed executives. What do these two businesses have in common? Not much, you may be thinking. But you'd be wrong. No matter what business you are in or how large it is, you have to be concerned with the economy. That means making sure you take steps to recession proof your business. Companies large and small have fallen victim to the recession. When Microsoft lays off employees, you know it's a bad economy! It's more of an issue for some businesses than for others, of course. People will sacrifice a night out on the town, a new pair of shoes, or seeing the latest movie... but they still need toilet paper. And soap. And food! But there are things you can do to ensure that you are at least somewhat immune to the inevitable dips in your customers' finances.

1. Build up a reserve
From the day you open your business-or starting right now-you need to put money aside in a cash reserve. You don't want to be looking for loans to make a payroll or to keep the doors open another month. It's cruel, but true: Those who need credit the least are the most likely to get it. If you wait until you are desperate, you will probably not find what you are looking for. When you find yourself needing money the most-like when I was trying to get a loan to keep my hardware business open-you will have the hardest time finding it. Banks want a guaranteed return on their money. They couldn't care less about whether you actually need it or not... in fact, even those with good credit can get denied. So when should you stop putting money aside? Never! You can never have too much cash. So if you don't have a cash reserve, start making it a priority... today! Cut back on non-essentials. Analyze your inventory to make sure you are not overstocking. Cut employee hours by getting by with less staffing during the slow times. Find out the bare minimum you need to survive on, and put any excess revenue into savings. In extreme cases, you may want to try renegotiating the terms of your lease. You can even threaten to break it, if necessary. In these times, it's a renter's market. Most likely, there's a better deal somewhere else... so find it, and use it as a negotiation tool.

2. Continue-or Step Up-Your Marketing Don't stop marketing yourself... ever.
Unless you want to ensure that you go out of business, that is! Let's take a look at a few case studies of this in action. MarketSense did a study analyzing the performance of over 100 brand-name household products during the 1989 to 1991 recession. This study came to some very eye-opening conclusions about the importance of advertising:

• Kraft Food's Jell-O brand, Frito-Lay's Doritos brand, and J. M. Smucker Company's Crisco brand had their advertising cut... and sales of each dropped by 26 to 64% from previous levels.
• J. M. Smucker Company increased the amount they spent advertising Jiff peanut butter... and their sales increased by a whopping 57% in a recession.
• In general, consumers bought less beer during that recession-witness the fact that the entire category was down by 1%. But 2 brands -Bud Light and Coors Light-pumped up their advertising, and their sales, too... by 15% and 16%.
• People still have to eat, right? Yes, but they still have choices. McDonald's cut their advertising budget and watched sales drop 28%. Taco Bell and Pizza Hut increased their spending on advertising... and their sales rose 40% and 61%. Part of that has to do with the fact that the first thing business owners cut in an economic downturn is their advertising and marketing budget.

So those who keep the spending at the same level-or even increase it-end up grabbing a larger share of the market by default. In fact, a McGraw Hill study of the 1981-1982 economic slowdown demonstrated this. They found that businesses that maintained or increased their advertising levels averaged "significantly higher sales growth" than their competitors who cut or ceased advertising-during the slowdown and for the 3 years following it! And don't think these are isolated studies. There have been studies on this subject dating back to 1923-and each and every one has shown similar results. Those who advertised the most had the most sales. Those who cut or eliminated advertising hurt their sales.

3. Pay Attention
Many business owners are so absorbed in the day-to-day running of their businesses that they don't look up to see what is happening in the world. That is a big mistake. Things change, and we have to change with them (or risk getting left behind). If you stay on top of developments in your industry and in the world in general, you can anticipate trends, changes, and new consumer tastes. For instance, you can discontinue carrying some items that aren't selling. You can identify the next big thing and position yourself to take advantage of it. Remember, too, that you never know where inspiration can come from. Sometimes an innovation in another industry can be applied to yours. Sometimes a seemingly random news story or occurrence can spark a million-dollar idea. Sometimes a customer's comments can lead the way to greater profitability. In fact, it's a good idea to solicit your customers' feedback on a regular basis. You can do this in the form of surveys, one-on-one interviews, and focus groups. In addition, your front-line employees can see things that you can't. Reward them for suggestions that actually increase sales. The more you do it, the more good suggestions you will get in return. It just takes a few minutes here and there every day to stay in touch with the world around you. Invest the time it takes... stay open to what is going on and don't be in so much of a rush you can't get feedback from others or read the news!

4. Embrace Technology
There is no excuse for not taking full advantage of all the technology that is available to us. Yes, you may need to take time to learn it. But everything we do in life, we had to learn at some point (even walking, dressing, and eating!). Think about all you have to gain from embracing technology: greater profitability, a larger marketplace, and less time spent on menial tasks. That alone should be motivation enough to carry you through your dislike of any device. Take the Internet, for instance. There are 1.5 billion people using it every day. Even if you are a local retailer, you might be able to find a way to tap into that. And even though your local economy may be in the toilet, somewhere else it probably isn't. You might just end up transforming your business by fully using the Internet's potential. For example, let's say you are in the Pacific Northwestern and you are able to catch fresh salmon; why just have a local restaurant and/or fish market? Smoke it, freeze it, and sell it over the Internet. You can find someone to handle the fulfillment-outsourcing can be a beautiful thing-and you adjust your prices accordingly. If the U.S. is still hurting economically, perhaps Canada is a good market for you or Brazil. Or even China. You never know what's going to work, but with the Internet, there's no reason you can't reach out to any part of the globe. Costs more to ship? Have to worry about customs? Well, charge more for international shipping and let your fulfillment company tell you how they will handle customs for you. Look, if you have an existing business, you have already overcome all sorts of barriers to entry-large and small-just to open your doors in the first place. If you did that, there is no doubt that you can also do the same with the Internet. There will be different barriers, yes-but they can still be overcome! Thousands of others have done it. And so can you.

5. Strategic Partnering
Consumers like dealing with the fewest number of people possible for a project. Think about building a swimming pool. There's the pool contractor. Then the screening or fencing contractors. And then there are usually child fences needed in addition to that-and a pool service, too, for those who are too busy to do it on their own. If your company fits somewhere in that span of services, partner with other companies who do the other work... and offer a package of services to the customer at a discount.

Let's say you are a general contractor. Partner up with an air conditioning and heating company, a pest control service, a lawn service, a home inspector, and a plumber. Co-market their services with your own, refer customers to your partners (as they will to you), and let the referral fees start rolling in. You can take it one step further by presenting yourself as a unified front-an "end to end" solution for homeowners-with one toll free number. Market yourselves that way (splitting the cost of course). Just make sure the parameters of revenue sharing are well defined and agreed to in advance in writing to avoid problems down the road. A good example of strategic partnerships is found on any PC you buy. Whether you buy a Dell, an HP, or a Compaq, Microsoft's operating system software comes preloaded-it's part of the package. They also usually also have an icon for Microsoft's Office suite (Word, Excel, Power Point programs)-and all you have to do is purchase it in order to use it. How Microsoft and computer manufacturers work this out financially, I'm not exactly sure... but it obviously works for both of them. It's one of the reasons Microsoft is so successful and also why people once screamed that they had a monopoly. Yes, it takes more work to put together a strategic partnership. But when it works, you'll get twice, three times, even four times the amount back that you put into it. Strategic partnerships put the power of leveraging to work for you, as other entities become invested in your success as well.

6. Adding Services and/or Product Lines
This is a variation on the strategic partnership method. In this case though, instead of partnering with another company, you actually add those services and products to your existing ones. You can start with natural extensions of your current product and service line. For example, grocery stores typically have a low profit margin on the food they sell. So what did they do? They added higher-margin products like pots, pans, cooking utensils, coffee mugs, child plates... all of which are related to cooking and food. But they didn't stop there. Now you can pick up flower arrangements, cards, gift cards, and more. It's just a matter of time before they find even more ways to get an increasing share of consumer spending.

Or let's say you have a lawn service. How about partnering with a pest control company? If you're in a cold climate, add in firewood delivery. If you're in a warm climate, you can add on that pool service! You already have a built-in base of customers, so you can afford to discount your add on services. Think a recession is a bad time to expand? Think again. "With soaring oil and food prices, falling home values, and the credit crunch beginning to take their toll on the U.S. economy, it's a terrible time to try to expand businesses or innovate, right? Not necessarily. By some accounts, the worst of economic times-the Great Depression-was actually a rich period of management invention... a number of enterprises outperformed competitors and actually grew during that tumultuous era by excelling in understanding and satisfying customers' changing needs. The Standard Oil companies built a lasting advantage by aggressively expanding their networks of service stations. DuPont increased its dominance by introducing nylon and other new products for consumer markets. Sears prospered-while Montgomery Ward languished-by coming out with innovations like low-cost refrigerators and mail-order automobile insurance and by doubling the number of its stores. And at a time when Wall Street was despised, Merrill Lynch recognized there was an opportunity for honest brokers." - "Recession: The Mother of Invention?" Steve Prokesch, Harvard Business Review, June 17, 2008 Giving people what they want is the best way to create new opportunities for your business, Great Depression, Great Recession, or boom times alike!

7. Hit "Restart" Listen, sometimes the best-laid plans go awry. If you have exhausted all avenues in your existing business, it may be time to consider the possibility of ceasing operations and restarting another, more profitable venture. I know firsthand what this is like. After 2 years of decent profitability, my hardware store was in the red to the tune of $100K in its third year. Believe, me I tried everything I could-steps 1 through 6 and more-but it just wasn't enough.

The town I was in had only 600 people. I made my money off the few months per year that tourists swelled our ranks to 3 times their normal level. But when the recession hit-and did not retreat-the number of months of good business fell from 8 to 4. I'm sure you can appreciate how hard it is to run a business on only 4 months of profitability. With only 2 good years prior to the recession hitting us, I hadn't built up a significant enough cash reserve to float me for yet another year after taking that kind of loss. So I would have had to borrow money to continue. And think about it-I was entirely dependent on the local economy! What happened in that 600-person town decided my fate. I had expanded my product line-I had a tool rental business, I had pumped up our paint department-but when you have a business that is so tied to one sector (construction/home improvement) in such a limited market, you are vulnerable. And I did the numbers. I could see that I couldn't survive for another year without returning to pre-recession profitability immediately. And that wasn't happening. I could see that! But I didn't give up on business altogether. I KNEW there had to be a better way. I did my due diligence. I did my research. And I found that an Internet business-with its low start-up costs, access to a global marketplace, and limited operating expense-was the way to go for me. And I was right! Our local economy hasn't come close to turning around. But now, it doesn't matter. I own the business of my dreams, and I can do business with anyone, anywhere. I get to spend quality time with my family. And I am making good money, without all of the headaches of employees, taxes, huge fixed expenses, and swings of fortune in the local economy. All of this is to say... I'm not someone from the outside, flippantly telling you to let go of your business. I know what it's like, and I know how difficult it can be. I had thought I found the business that would sustain my family and me forever... but I was wrong. It was hard-very hard-to let it go. But you know what? It got better, and it got better fast. Some part of me actually felt relief. And I was free to go on to a more profitable situation, a better one for my family and me. Of course, you want to take the time to make the right decision for yourself. You don't want to rush into anything. Take whatever time is necessary to figure it out. Just be open to the possibility that maybe the time for your current business has come to a end. Or maybe it's just not right for you anymore. Run the numbers, talk to your spouse, and make the best decision for you. I'm here to tell you that if you have built a successful business at one time, you can do it again. Many times things happen that are just beyond our control. Sometimes, through no fault of our own, we lose something that was a part of our life for a long time. But then we end up better off when the next thing comes along. Above all else, remember that your greatest asset sits between your ears. Creativity and innovation start there-and have built fortunes for millions since the world began. The economy will always go up and down. By using your mind and your creativity, though, you can always find a way to prosper. Failure is only temporary, unless you choose it to be otherwise!

Using Awards For Better Publicity

Does your business strategy includes using awards for better publicity? Do you use the process of applying awards to check and refine your business strategy?

In terms of publicity, being nominated for an award can be just as helpful as winning the award.

Industry specific awards are a gauge of your company performance to your customers and the business community in general. Your business will benefit from finding the right awards and making an effort to include these in your plans for growth.

Using the Nomination

Small businesses who are nominated for an award can most definitely benefit from the award process. The award organizers may list the nominees - and a small business should take full advantage of this. Even if the nominees aren't listed by the organizers, a small business should promote the nomination themselves.

Use the businesses newsletters and websites, to link to the award site and publicize the nomination. This will aid increasing the company's name recognition and credibility. Let your clients know that others have confidence in your business.

Many awards will have a set of criteria and it's a great idea to list the standards when you announce the nomination. You will increase your customer's knowledge about 'what' your business does and the quality of your work.

If the nominees are listed publicly, take a look at who is in the top group with you. It's a great opportunity to take note and identify what separates you from the other competitors, and being associated with the other nominees is incredibly powerful.

Awards Publicity for Better Business

The publicity from winning an award can boost traffic to your website, win you additional awards and lead to business growth. Customers often use awards to help make their buying decisions - dealing with an 'award winning business' is part of the 'proof' aspect of a sale.

Make sure that you display awards and nominations prominently on your website or in your shopfront - these serve as a quick reference for customers that you are a recognized leader in your industry. Customers note awards as a seal of approval on your company by a knowledgeable outside group. These awards act as recommendations from people who should know.

Displaying your awards can help develop pride in your company by current employees or even attract skilled new employees to your rising star. Employees with a sense of pride contribute strongly to the performance of your company and add value to your business.

Seeking Funding?

Awards may help your business if you are seeking funding from Banking Institutions or Venture Capitalists. Banks and investors often use awards to identify the strongest performing companies within an industry.

New Business Partners?

Many companies use awards to identify potential business partners. Press releases or articles in industry magazines bring your company to the attention of a great supplier. These industry connections build your company's overall performance.

Business Development...

Without a doubt, applying for an award forces a business owner to review their business plan and future directions. From my own experience, I know that having to answer questions, quantify results and describe my vision is an incredibly powerful tool.

I have recently been nominated for Telstra Business Woman of the Year, and was a shortlisted candidate. I didn't make the finals, but the process certainly helped my business management process.

Most recently I have been nominated for a MCEI Marketing Award - and I found that completing the application was just like completing my marketing plan - an incredibly rewarding experience. Winning the Women In Business category was a boost to my self confidence and the confidence in my business.

Where do you find awards to apply for?

The best place to find awards to apply for would be your local Chamber of Commerce or Business Association.

Check out your industry associations and professional bodies.

The Importance of a Simple Business Plan

A simple business plan is still something that requires plenty of work to get it done accurately and properly. Calling it one of the least important parts of starting a small business would be a gross understatement because it has the most importance of all, aside from actually running the business that is. A lot of people who already own their own business will tell you that the first thing that they had to come up with was a business plan to help them get start-up finance. When you have to get a small business loan to start your business you must prove to the lender that your business has a great chance for success by showing them a solid business plan, among other things. Simple telling a potential lender that you have some terrific top business ideas just won't cut it.

Other items in your business plan will need to cover your business feasibility study which many lenders find to be very informative towards their decision-making process. And even if you don't need start-up finance, creating a good business plan and using it as a blueprint for running your business will help you stay on track and grow your business operations to the level that you want it to be.

Fortunately, you can make all of this much easier by taking a small business course to ensure that you are much better prepared to take on the responsibilities associated with owning your own business. The importance of having a business plan is too real to ignore and if you can't afford to have someone draw one up for you then you must do it yourself instead. Here are some notes on what needs to be covered as a minimum even in a simple business plan

First things first, you will need an official name for your business. Make sure the name is catchy but easy to remember. Steer clear of things that are hard to spell because it can make things more difficult for your customers and so on.

You must integrate a vision that you have for your business i.e. what will your business be like in 10 years into the future? Do you have plans to expand your business if it becomes successful?

Next, a business plan will call for your business's mission statement. The mission statement is a crucial part to the business plan and you must make sure to include everything about your business, what it does, its uniqueness, and other positive characteristics it has to offer.

You will also need to describe your business's objectives and goals i.e. what you expect from your business and what you know it to be capable of. And then you must include a very specific set of details called SWOT. SWOT stands for strengths, weaknesses, opportunities and threats, which are to be explained in fine detail throughout your plan.

Finally, you will need an action plan and a financial plan for your business plan to be complete.

These sections should make up the bulk of your entire business plan as they are the most important. You are probably thinking about how difficult owning your own business is starting to sound not to mention how hard it could be to get a small business loan if you don't know how to write at least a simple business plan. Save yourself the frustration of it all, especially if you have no business experience whatsoever and take a small business course where all your questions are answered.

A small business course is more than just useful towards the future of you running your own business the best way possible. You can find valuable insider information as well as other tips and tricks from people with much more business experience. Being an entrepreneur can be a daunting challenge but if you have a good handle on all the start-up steps, including things such as how to write a clear and accurate but simple business plan, you are well on the way to go about owning and successfully growing your own business.

What Is Preventing Growth for Small Businesses

As a small business owner or manager you will be faced with a great number of things to do to grow your business! It is likely that you will neglect some while focusing on others that perhaps you may be more comfortable with performing.

Did you know that more often it is the things that you may not be doing that will have a much greater impact on your business growth than those that you do? What are these? - read on!

Understanding your Customer Market

Adequate Planning

Managing Cash Flow

Operating a Marketing and Sales Development Process

Targeted Marketing Campaigns and Programs

Understanding your Customer Market

Every business must make a priority effort to truly understand their customers and what drives them to purchase your products or services. Without an 'intimate' understanding of your target customers you will be undermining ALL your efforts to grow your business.

Dispose of any shot-gun approaches you may have to marketing and advertising and use your smarts to achieve Better Marketing Results. Get started by developing your own ideal customer profile.

Make sure your ideal customer profile includes a description of the attributes of your target customers and the buying criteria that your ideal customer will use in selecting your product or service. This is a very crucial point, it is not your criteria that you consider important - it is what your potential customers considers important.

Find out what is involved in their buying cycle, what risks if any are perceived in their buying cycle and where your potential customers go to research and engage within their buying cycle.

Adequate Planning

"Businesses that fails to plan, plans to fail" It is a simple truth - you need to know where you are going to get there!

Marketing planning is crucial for small business owners and managers to maximise their company's ability to succeed in the marketplace. The marketing plan does not have to be a large voluminous document that gathers dusk after it was developed. Be practical and prepare a condensed version of between two to three pages that you can frequently refer to in a highly visible location within your work area. This way your marketing document becomes a useful plan and guide to growing your business.

Marketing planning has several key benefits for your business:

Gives real focus that drives ownership and motivation to achieve success

It provides a firm foundation to evaluate priorities

It defines your market and matches the communications needed for your prospective customers

It is a definition of your business success

Managing Cash Flow

Many a small business owner will neglect this critical aspect of managing their cash flow. Small businesses that do not have positive cash flows will encounter significant challenges with insufficient funds to pay creditors severely limiting their business growth potential. Lack of cash flow management in small business is evident in "feast and famine" situations.

You must make cash flow planning a central element of your management priorities. As a business owner you must be able to identify your cash flow status on a daily, weekly, monthly and yearly basis in order to make sound decisions for your business. Keeping your finances in order and your cash flow healthy is essential to growing your business.

Cash flow is the lifeblood of your business. Successful business owners always maintain a firm grasp on their cash flow and are able to describe and predict their cash flow situation for the week, month and year.

Operating a Marketing and Sales Development Process

Better marketing results are qualified potential customers or sales leads for your business. Sales development takes those qualified leads and works to convert them into paying customers.

Unfortunately, many small businesses do not have a structured process or procedure to manage these sales leads into customers. There is nothing more painful for an interested customer to be ignored because of a lack of prompt and professional follow through. All 'hot' prospects need your immediate attention before they grow 'cold' or purchase from your competitors. It is absolutely essential to formulate a process for follow-up and conversion of your sales leads into customers. For example, you could set-up a defined day of the week for all your sales development activities. For those prospects that are not yet ready to buy you must make them become part of your on-going nurturing engagement marketing until they are ready to buy.

Unlike traditional approaches to marketing where you specifically target prospects with direct response offers, engagement marketing allows your audience and potential customers to interact with you and shape how they would like to communicate with you.

Targeted Marketing Campaigns and Programs

In today's business environment the customer will control when and how they would like to receive your marketing messages. Your marketing message must be highly relevant and compelling for your target audience. Your message must resonate with the 'conversation' that is happening in the minds of your potential customers.

Marketing is business development and must take place for your business to grow! Integrated marketing that makes use of the Internet with your web presence and social media is the approach that small business must implement for your marketing campaigns and programs.

Essentially, an integrated multimedia campaign allows a one to one personalised engagement with the recipient. It has the ability for the recipient to immediately accept the offer or secure additional information with readily available technology such as their mobile phone or access to the Internet.

Why Start Your Own Business At Home

These days with some corporations sending their products overseas for manufacturing, or just being forced to downsize their workforce, many people are becoming unexpectedly unemployed and finding it difficult to regain the security they once felt in a new job. Some of these people who have been laid off are choosing to take control of their future rather than counting on another employer again. Many are asking themselves whether or not they should start their own business. So why start your own business? When working for an employer, the employer is responsible for paying you a constant salary as long as you perform your daily duties. On the other hand, with your own business, this responsibility becomes your own and with the added responsibility also comes an increase in some nice benefits.

Why start your own business? Well, having your own business from home is an exciting prospect. You have the freedom to decide on the hours you want to work. The more time that gets invested productively in building and maintaining the business will ultimately translate into a greater financial turn-over for the business and increased personal profits for you.

Why start your own business; to take better care of your children. Many parents have also begun considering the work from home option. This is especially advantageous when there are still small children to be cared for. Parents have a dual role, one of caring for their family, and the other to ensure a secure income to their homes. By working from home and having the ability to manage time effectively, both roles can be managed without any lack of attention to their children. Parents that work from home not only save money from the high cost of day care but also have the peace of mind knowing their children are being cared for in the best way they know how to. So, this option to work from home is a winning scenario for both parents and their children.

Why start your own business from home? Well, because the internet has changed the business world in an immense way. Traditional successful business is associated with huge overhead costs; employee payroll and benefits, inventory, rent on the building, your time and energy 24/7. With an internet or online business all that is required is a small office space, a computer with an internet connection and a phone. With this innovation a home business does not need to invade the living space of your home, but can be maintained in a small area which can easily be separated from the rest of your home. You can run your business and still be a part of your family's activities rather than being away at the office all day.

Having a marketing education and skills are attributes your home business will use for online marketing. Traditionally marketing and getting a marketing education can be expensive. However there are ways to affordably learn from others that have already been through the learning curve of running successful marketing campaigns. Successful marketing is a learned skill and the best way to learn is from business owners that already know how to run and manage successful businesses and have a great product for your marketing adventure. If you think that you could never possibly run your own online business successfully, think again. It's simpler than you think when you find the teachers willing to show you how. Online marketing campaigns may be run without leaving the comfort of your home or spending years completing a bachelor's degree in marketing.

Any legitimate home based business can also have the dual role of potentially saving your household some money in the form of tax benefits. Many of the household business associated expenses can be paid for from the business. This is usually based on the percentage of your home's square footage used for business purposes. Whatever that percentage is, gets paid for by the business and does not affect the general household budget. These deductions are useful for your home's utility services and even the internet connection and phone services in cases where they are used for general household use as well. Ask your tax consultant about other potential benefits that can be taken care of through your business.

So I ask you once again, why start your own business from home? Another great reason is to save money. Most traditional jobs require commuting to and from work. It doesn't matter if you use your own vehicle or utilize public transportation, at the end of the day it's another expense that gets added to your daily life. This is eliminated entirely in some cases by running a home based business. Not to mention the money you could save on office casual clothing and lunch money or that daily stop for a vente latte every morning.

Home based business does have a learning curve. But be trainable, coachable and have a desire to take control of your life and you can do it. It also comes with associated risks the business owner must become acquainted with. Just like any business venture would. However a home based business will save you money you won't have to spend in overhead and headaches. Complete your research, get your questions answered, find a successful group of entrepreneurs willing to show you how to get started and go for it. With the necessary perseverance, this can be the rewarding solution you've been looking for.

Buying Or Selling A Business Is Unlike Anything Else

Not everyone will agree but I am sure it's closer to the truth than one might think: buying or selling a business is unlike anything else of value. To support my argument there are a number of reasons. Let's look at some of them.

The price of a business is determined by a valuation. The rules of a valuation come from the law and then legal cases as well as the Internal Revenue Code and custom. The price for most other items of value are determined by market comparables (for example, when valuing a house), looking up a book or some online site such as Kelly Blue Book (for cars) or results from eBay or some other online service (for any item you can think of). That is, there is no legal interference with the value of any these items except a business.

When advertising to find a buyer of these items, with the exception of a business there are no rules. To be clearer, when selling any other item the owner wants the world to know it's for sale. Regular and established advertising channels are used including online web sites, newspaper or magazine advertising, family, friends and anything else to find a buyer. Conversely, with a business, advertising is done using less familiar methods and in most cases, the advertising is obscure so family, friends, customers, employees, suppliers, landlords, lenders and others are not aware the business is for sale.

When a buyer and a seller enter into negotiations for anything except the business, it's generally very simplistic and does not need the involvement of third parties. In contrast, negotiating a business often involves complex negotiations with sophisticated parties. These parties can include lenders, landlords, attorneys, accountants, business intermediaries or business brokers as well as hidden support for buyers and sellers such as family and friends.

When selling a business, to get the maximum price possible, normally involves a lot of work for an extended period of time. The steps the seller takes includes trying to increase revenue, recasting the financial statements to arrive at an accurate and supportable discretionary earnings of the business and repairs and upgrades to make sure the business looks the best. Items being sold other than a business can similarly be polished but there is a limit on what can be done and the amount of time to do it.

When the buyer and seller reach an agreeable point in the negotiations of a business transaction, all items must be converted to paper. One of the first items it defines is whether the business is being sold as an asset or stock sale with this single decision has many tax and legal implications. Additionally, this one decision in itself, can set off a series of negotiations or at least, in-depth discussion and analysis by both parties.

In some business transactions, the negotiations can trigger a set of different valuations to support each parties position and whether or not the transaction ultimately closes. For example, if the purchase includes real estate or a large number of physical assets or intangibles such as trademarks or copyrights or the business itself then there could be four valuations. The first is a valuation of the commercial property, the second is a machinery and equipment appraisal, the third is an intellectual property appraisal and the fourth a business valuation.

Buying and selling a business is unquestionably complex. The complexity can include the business and its different assets but added to this is the complexity of the emotions each party brings to the transaction plus the fact that it can sometimes take many months to finalize the matter adding an additional layer of complexity due to life situations happening such as health, legal, family, finance and many other items affecting the process. For a willing buyer and willing seller to eventually close the transaction, it will require patience and clear communication and normally, the help of a good business broker.

Home Based Business Principles That Can Guarantee Your Success

Home Based Business

There are many reasons why people want to build a top home based business. Personal freedom, flexibility with work schedules or escaping from a particular boss are all reasons we choose to be self employed. If you are just getting started, keep reading and I'll share the three principles for your success.

Internet Marketing

Almost all top home based business owners utilize internet marketing to generate more leads or potential customers. But the sheer volume of network marketing systems, methods and products can be quite overwhelming.

There are other pitfalls as well. Building your own business and being your own boss means that you are only accountable to yourself. Be prepared from the start to accept this responsibility and to do what you need to succeed. Following these three principles can help you stay on track.

Three Principles

Self Discipline - First and foremost is the development of self discipline. If you have been an employee for years, it can be a bit of a shock to the system to no longer have a boss holding you accountable. Use whatever means are necessary to have the discipline required. Approach your new internet marketing business with as much commitment as you approached any other job.

Personal Development - Very few people come into the internet marketing business possessing all the skills and knowledge required. Be prepared to research, learn and work on any aspect of personal development you are lacking. Understand that this is a process. There is no cause for becoming overwhelmed. Which leads me to the third principle...

Focus - In order to succeed you will need to focus on one thing at a time. Master whatever skill or method you are using before moving on to something new. Not only will this prevent your from becoming frustrated, it will streamline your efforts and greatly improve your chances for success.

Asking for Help

Help is available if you need it. There are tons of discussion forums, blogs and free ebooks that can help you learn what is needed for your top home based business success. We were all new to the business at one time and many of us are more than happy to assist newcomers as they grow their business.

How Accounting Software Can Ensure Small Business Owners

For many people the Christmas period is fun filled and relaxing with good food, drink and most of all great company. But unfortunately for some it can be one of the toughest times of the year. The festive season is a period of celebration and for many it acts as the perfect time of year to reflect on the year gone by. Over the backdrop of endless annual top 100 countdowns on TV we reflect on personal and professional achievements and regrets whilst planning our infamous New Year resolutions. This period of reflection is a source of happy memories for most but it can also be a real source of sadness for some people. Suicide rates are believed to increase throughout the holiday season and with the harshness of the current economic climate there are genuine concerns about the mental welfare of small business owners as we head into this years this festive season.

The combination of pressures derived from the accountability of owning business in today's tough trading condition and people's natural inclination to reflect over the Christmas period makes the festive season prime for an increase in anxiety across the SME community. Research has suggested that the SME community has experienced a 47% increase in suicide rates since the economic downturn of 2008. There are 2 intrinsically linked contributing factors to mental anxiety within the small business community over Christmas. Investing in good accounting software and practising disciplined financial management can help keep both factors at bay.

1) Money and the financial health of the business

The main cause of distress and anxiety for a small business owner over the festive season is money. Unfortunately there are still too many small business owners that are not into the detail of their company financials. For many Christmas time represents the time of year for the annual review of the company financials. The combination of compulsory requirements to prepare yearend accounts and the natural desire to reflect over the Christmas period makes it completely understandable why many owners get their head in the books over the festive season.

Practicing financial discipline once a year rarely results in a sound set of company financials. It is all too common for owners to find financial problems in their business just at the time when everyone else is relaxing and celebrating. The lack of detailed financial understanding often results in longstanding disparities between expenditure and income left unchecked throughout the year. It is also common for business owners that haven't maintained a detailed view of the financials to find missing payments from customers. These findings ultimately leave business owners learning about nasty cash flow problems in their business that have accumulated over time which can be devastating for the short term future of the business. The emotional extreme between the relaxed PAYE employees enjoying their pre-booked off time and the anxious self-employed small business owner that can't leave their business is already vast over this period. Finding out about a stark cash flow problem in addition to the existing frustrations of running a small business over the Christmas period can be enough to tip existing anxiety into full blown depression.

The key to a happy and relaxing Christmas period is sound financial discipline throughout the year and a good accounting software package can be central to achieving this. Accounting software allows small business owners to stay close to their business financials in a quick and easy to understand way. A simple, cost effective accounting software package means that company financials are done and managed consistently throughout the year. This ensures that if any problems occur with expenditure management or if a client hasn't paid an invoice on time it can be rectified quickly and easily. Small business owners that are close to their financials do not have the emotional drain of a big annual review of their company accounts. Most importantly of all they don't have the shock and subsequent unhappiness of finding nasty surprises in the books over the festive season!

2) Relationships

One of the main reasons that make Christmas so special is having the chance to spend time with your loved ones. The problem for the small business owner is that they don't feel like they can simply leave the business for a couple of weeks. "The business doesn't run itself!" This is in stark contrast to PAYE friends who have no responsibilities in their booked off time other than enjoying time with their loved ones. This contrast in fortunes puts an almighty strain on the relationships of small business owners as their loved ones have to cope without them for long periods over Christmas. This can be especially difficult for the loved ones of small business owners when it seems that everyone else is surrounded by their family and friends.

It can be incredibly challenging to take time off when you're running a small business but time off is essential to keep and enjoy important relationships healthy. Time off during this year's festive season will be even more strained for many small business owners as they not only need to complete the usual year end admin but they are also operating in some of the toughest economic conditions known for many years. BBC news have recently stated that the total number of divorces have increased 4.9% in England and Wales in the past year as a result of the tough economic conditions.

Whilst these pressures are very real they do not exist for every small business. There are SME's that do not worry about year end accounting because it happens to be a 5 min exercise due to their on-going management of the company financials throughout the year. Small businesses that have sound financial discipline are also more likely to have enough working capital to see out the current economic pressures. These businesses have impressive working capital due to their complete detailed focus on expenditure and income and well managed time allocation reducing non-value adding administration tasks in favour of business optimisation planning. Small business owners of these types of companies are more likely to be able to relax over the Christmas period and spend time with loved ones as their businesses are sustainably healthy.

The secret to these healthy businesses is their sound financial discipline and well-structured time management. Accounting software is a critical tool that makes sure that small business owners reallocate time away from doing lengthy manual quarterly and annual accounts to free up more time to be spent on value adding business planning. This additional planning gives the business a greater chance of directing themselves successfully through hard times. In addition but equally as important accounting software makes sure that a small business has a tight grip on their cash flow position. By having a clear vision on the direction of the business and a healthy cash flow position a business owner can ultimately be more relaxed over the Christmas period focussing on what's important - their relationships.

Small business owners that face the prospect of finding out about money problems and living through the happy festive season working all hours to keep the business afloat are in real danger of unsustainable anxiety and depression this Christmas time. The answer is to work on embedding financial discipline and well-structured time management throughout the business. The only way a small business owner will be able to relax with their loved ones this Christmas is if their business is financially sound. Having a well embedded accounting software solution is a key step towards achieving this.

Tips On How To Start A Home Based Business

Sufficient help is important in any business, especially a home-based daycare. You will need help to keep the children doing what they are supposed to be doing.

Keeping careful track of each and every one of your business expenses is a vital way to protect your pocketbook. Internet service and car mileage related to your business are a couple examples of business expenses. When you run a business, a lot of your expenses are tax deductible. Small amounts add up quickly, and there is no point in lining the governments pockets with your hard earned cash.

Make sure the website of your home business is equipped to sell. Taking order by mail or over the phone is simply not enough. There are many websites that provide ready-made storefronts.

When you have a home business, it is very helpful to have a supportive peer group. Search out other business owners and think about starting your own group. These people may come from completely different industries, but they, too, will be striving to run a profitable home business.

You should set aside a percentage of all income earned towards your taxes. A typical tax rate for businesses is around 15-20%. It's better to put that money aside as you make it rather than trying to come up with the money when it's due.

It is important to dress for success, even if you are just working out of your home. You might feel the need to work in pajamas in your home office. Getting dressed for work, just like in a normal business, can benefit you in the long run. Wearing real clothes affects not only your appearance, but your motivation to get down to business.

Set aside an area in your residence that serves as your work area. Make sure you have the space in your house to keep all things organized. This helps keep your business better organized so that you can be successful.

If you have a location outside of the home for your business, post your business address instead of a PO box. Potential customers place more trust in businesses that list their actual location. This makes your business appear trustworthy, earnest and more likely to respond to their inquiries in a timely fashion.

A home business is a real business, so don't go charging in without a business plan. You might change it as time passes, or it may redevelop completely based off your client needs. This plan will act like a to-do list so that you can see your business goals and a path to meeting them. Your business plan should be consistently evolving.

Membership fees are one method of turning a profit. Your site could probably set up a membership subscription to increase your profits.

By obtaining a checking account for your business, you will be able to see all of the outgoing expenses and also keep track of how much money is coming in. Use the account for all of your company's financial transactions, including sales profits and expenses. It is the best way to record the money going in and out of the business. The credit card you use to make business purchases should be separate as well.

You will find forums online which are dedicated to people like yourself, people running a home business. This will allow you to interact with others in the same position. Many home business owners have the same problems and it is good to have people to share concerns with.

Ensure that your home business is safe and secure. You might have to pay for the security equipment, especially if you have children. Having a separate office space or area that is secured to store your product in will keep people from going in, and keep your family and business safe from unforeseen accidents. Inspections can occur, even for home businesses.

Build a home business while you're still employed. Getting your business to become profitable does not happen overnight, so if possible, you should stay at your current job. Having a source of income while waiting to build up profits from your new business is a good thing to do.