PublishMyself.net » Small Business

Should You Start a New Business in 2010?

Mike Daley — Thu, 03 Dec 2009 18:10:32 +0000

If you have ever wanted to open a new business then 2010 might just be your year.
Many people have taken career paths where self employment is a natural progression. You can have a great idea such as the Frisbee, a talent such as an artist, or a skill like a physician. Whatever the situation, you want to be your own boss. This is a good thing. Small business drives the economy; every business whether the local dry cleaner or Dell was started by someone like you.
Before you quit your day job and take the plunge into entrepreneurship here are 10 thoughts to consider.
1. Do you have a passion for what you are going to do? You will need to bounce out of bed each day, self motivating yourself to accomplish a daily work plan to achieve daily goals. You will have to take action solely on your own volition. There are hundreds of things that won’t get done unless you do them. As your own boss, that zone out hour to work on your fantasy football team will be a thing of the past.
2. Can you delegate and accept advice? Running a business requires the performance of dozens of simultaneous tasks, and it’s foolish to try to handle them all yourself. You must surround yourself with partners and employees whom you can trust to perform these tasks as you would yourself. You will need to be able dish out responsibility without worrying over the result. You will need advice and counsel from experienced business people to guide you as the business grows.
3. Are you ready to work harder than ever? Starting a business is easy, right? Wrong! If you think working for someone else is hard work, try starting your own business. You will be required to give every ounce of blood, sweat and tears you can muster. You will have to work long hours and be on call 24/7, at least in the beginning. You think you can take a sick day or a vacation? Who is going to run the business?
4. Are you customer focused? You are the customer satisfaction department and problem solver. As an entrepreneur, you will understand the cliché “The customer is King or Queen!” Can you figure out how to appease your customer when the shipment from Chicago gets delayed three days because of a snowstorm? Be polite to people and living by another cliché “Treat people as you want to be treated” will make being customer focused the center of your business model.
5. Can you sell? Every business needs to sell a product or service. Without a sale, there is no way to make money. Even though customers are the lifeblood of every business, you’d be surprised at how many entrepreneurs hate this aspect of doing business. Do you cringe at the thought of cold-calling (walking into a business and asking to speak to the owner)? Can you pick up the phone, call a prospect and ask for an appointment without breaking into a cold sweat? If you are not comfortable selling, you should keep your job or look for one.
6. Are you a forward thinker and detailed? According to the Small Business Administration, two-thirds of new businesses survive for at least two years, and only 44 percent survive at least four years. They fail because they do not plan. You will need to write a business plan and do financial forecasts even if you do not need funding.
7. Can you handle rejection? If your feelings are easily hurt, work for someone else. Many days in business, rejection waits around every corner, and you must be able to handle rejection without letting it beat you down. You will experience rejection from customers, business partners, bankers and investors, just to name a few.
8. Do you interact well with others? Being a business owner means that you will have daily interaction with a variety of folks, from your own employees to vendors to customers to investors. You must have the ability to manage people effectively without offending them; the ability to accept good advice from mentors and politely discount the bad; the ability to overlook mistakes or quietly rectify them; and one of the most difficult: the ability to tolerate incompetence without losing your cool.
9. Do you have financial backing? You have a great idea or service. Your business plan is perfect. You might feel there is no way a lender can turn you down. The reality is that most lenders want a proven concept and during these times the lender will want you to answer this question: “Should your company go under, how to I get my loan back?” Before you start your business, you should have enough capital to see you through the first year or until the business can sustain itself. So be prepared to sell the boat, your jewelry, or ask Aunty Anne for a loan (and get the terms in writing).
10. Do you have experience in the type of business you plan to start? If you can’t locate your car’s engine, you have no business buying a Lube-N-Go franchise. The most successful business owners have prior experience in the industry in which they have set up shop.
And here’s one extra tip to consider- As mentioned earlier, you are the customer service department, but also, the marketing planner, the accountant, the inventory control specialist, the head of HR, the chief copywriter, and the sales strategist. If you need help in any area consider a business advisor to walk you through the maze.
At the end of the day, if you have what it takes to start your own business in 2010, then I strongly urge you to jump into the entrepreneur pool with both feet.

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Setting up a credit card merchant account and online merchant account for your business

RichardCooper — Mon, 30 Nov 2009 14:30:35 +0000

It is a fully understood fact that those who have a business must also have the facility to accept credit cards. If a business owner tries to manage without a credit card payment facility, his clientele is likely to be restricted to some senior citizens who still prefer to use cash because they are uncomfortable with any new fangled conduit of transaction. The four connecting dots of the credit card financial transaction are the banks where the card users money remains, the clearing-houses, the credit card providing companies, and the credit card merchant account providers. The credit card merchant account providers are those who provide the traders with all the facilities for processing credit cards.

The things that are required for owning and running a credit card merchant account are a swiping machine, the magnetic strip on which has the ability to absorb the credit card information and relay it to the clearing houses, and the requisite software for connecting with the credit card merchant account providers. These are the requisites when the business is physical, when it is restricted to a specific location like a wholesale or retail store.

Because as much of business is online these days as it is offline, a credit card merchant account should include online merchant account facilities as well. With online transactions, the account holder cannot get a signed copy of the bill from the customer as happens in the case of physical selling. So a different type of gateway is used in online merchant account to ensure right payment.

For online selling, the seller should have specialized software installed in his machine which would connect his online merchant account provider and the clearing house to which the credit card information of the buyer should go. No swiping can be done while accepting and forwarding online payment details. Card details have to be manually typed and this has to be carefully done. Data entry errors are bugs that could lead to protracted wrangling between the seller and clearing-houses and online merchant account providers. Lots of time is lost in such confusions. Besides, online merchant account holders are charged by the online merchant account providers for the extra work and time that such mistakes entail.

However, nowadays there are several online payment gateways that validate the process immediately, even as the customer types in the card details. Of course, this does not ensure complete freedom from errors because the customer himself can make data entry errors. But the online merchant account holder is in no way responsible for such errors. Since the validation takes place immediately, when the buyer is still online, the mistakes are rectified easily. So extra charges does not accrue to the credit card merchant account of the trader because of the mistakes the buyer makes.

For more information and details for a credit card merchant account and applying for an online merchant account for your business, please do visit our site or contact us

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Encash your dreams with merchantmoneyweb.com

cathy123 — Thu, 04 Jun 2009 13:12:24 +0000

Accepting credit, debit or cash cards is becoming a must for tiny and medium-sized businesses conducting businesses anywhere in the world. Traders are progressively whirling to plastic when they unbolt their wallets. Now you can take advantage of a Small business cash advance against your plastic money i.e Credit card’s transactions.

Business cash advance is the best way to get speedy money for your business expansion needs. After receiving rapid cash advance, your business is free to use the amount for any purpose. You decide how to spend the money, whether it is for renovation, marketing/advertising, emergency costs or for growth and expansion.

Merchantmoneyweb.com is the Payment processing company that provides its customers an instant cash advance for their businesses. Most of the business owners might first turn to banks for their Merchant cash advance requirements. However, obtaining an instant Cash advance through a bank or other lender is a dream that can never be fulfilled. Banks and other lenders will have many restrictions for approving the applications.

But, obtaining capital through Payment processing company is not so easy. To get Small Business Funding, it is very important to have good credit scores. Then only a business can qualify for this. Hence it can be difficult for many businesses as their application is likely to be rejected if they have bad credit score.

A Small business cash advance and Merchant cash advance can be a best therapy for your cash flow headaches and can help in the intensification of your business too. In this type of Payment processing services, there is no requirement for tax returns, business plans or any collateral.

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Make use of free Canadian government grants in kick-starting your dream project!

Jhoana_Cooper — Mon, 01 Jun 2009 14:14:19 +0000

Every year, the Canadian government gives out millions of dollars as grants money to develop businesses of all sizes and sectors in the hope of strengthening the local economies, creating employment, and bringing about economic development in Canada. Free Canadian government grants can be obtained by presenting a comprehensive proposal to the department concerned. Once the eligibility criteria are checked, your project will be assessed to measure its feasibility, sustainability, and how it benefits the community on the whole, depending on which the grants money will be given.

Free Canadian government grants have been used by many companies, organizations and individuals to start, improve, or expand their businesses and it is something everyone must consider. Grants money is awarded each year in millions to small, medium, and large enterprises and that is why the competition to get these free Canadian government grants is high. Firstly, one needs to know the various kinds of grants available and their very specific details. Only by knowing the eligibility criteria in details can you decide which free Canadian government grant you should apply for.

After deciding which grant you are eligible for, you need to formulate your proposal by understanding the assessment criteria. Grants money will not be given to you unless you convince the government of your projects overall developmental and beneficial role. Your proposal will be assessed based on mainly these points:

•    Adverse effects on existing businesses
•    Net economic gain in the locality
•    Economic feasibility
•    Sustainable employment
•    If your project is in a priority sector

Based on the above and many additional criteria, your proposal is assessed and offers to give you certain amount of grants money are made. The amount of assistance you will get depends on many other factors like your economic status, benefit of the project, etc. There are many free Canadian government grants available for business like the Cooperative Promotion Board which seeks to promote cooperative organization which can bring about community development, Feasibility Study Program which bears up to 75% of the costs of hiring a consultancy for carrying out a detailed feasibility report of the project, and the Young Entrepreneurs Program which lends support to youth between 18 to 29 years of ages to start their own full-time business. Grants money ranging from $1000 to a maximum of $10 million may be given per project.

Canadian women can acquire assistance up to $100,000 for starting or expanding businesses. Canadians of aboriginal heritage are eligible for many grants related to starting of business, housing, student employment, and even education. All First Nation, Inuit, and Métis individuals or organizations are eligible for these free Canadian government grants.

A lot of grants money is allotted for research and development of improved technologies which help in bringing about improved processes and products. Art and culture related projects undertaken by individual artists or artistic guilds can avail the many free Canadian government grants designed for their specific needs. Special attention is given to environment friendly projects related to waste reduction and pollution control like the Waste Reduction and Pollution Prevention Fund (WRPPF). Programs to increase the tourist value of a place are also eligible for grants money.
There are number of free Canadian government grants available for those seeking financial assistance in starting or expanding business in Canada. Grants money are available for projects related to art, culture, tourism, environment, assistance programs for minorities, and even individual purposes.

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How to avail a government of Canada grant?

Jhoana_Cooper — Sat, 30 May 2009 13:00:46 +0000

The government of Canada grants is a source of capital for small business funding in Canada. These Canada grants are not very common and unless you look into it deeply you might never know if your business would qualify for one of those actual government of Canada grants. Some intense searching is necessary to find out the details about all the different types of government of Canada grants. These Canada grants are mainly given for small business establishments which cater to specific fields of the industry and in specific locations of the country. There are several tips which might be useful for all you wannabe businesspersons to make your search for Canada grants more meaningful and effective.

Generally the term “small business grants” is not very common in the various Canadian websites owned by the government. Instead there are Canada grants or government of Canada grants which are common terminologies used for various grants which are offered by the government of Canada. Moreover, every small business financing is associated with contributions, shared costs, rebates, tax rebates, subsidies, and even non-repayable loans. Almost all of these terms may refer to a type of funding which does not involve any pay back.

To avail any of the grants one must know how their business is to be categorized. Different businesses fall in different industrial sectors. For example, some businesses fall in a grant-rich industry while some businesses comply well with various government objectives and are targeted for funding. There are still others which don’t fall in any of the sectors and are not eligible for any funding. For instance, you may not find many small business Canada grants for different retail businesses. Furthermore, there are many more government of Canada grants assistance programs for small businesses in regions of Northern Ontario compared to those in Southern Ontario. On the whole if you search carefully you may find some grants that are offered by your local governments.

One of the foremost things for a business establishment is to search for some Canada grants that are offered for businesses in their segment. They can position their business in such a way so that they can take advantage of the various government of Canada grants for small business or programs that exist. There is one program called SR&ED Tax Credit Program which is one of the best ways to avail some free grants involving government of Canada grants.

Apart from these it is advisable that new enterprises eying for Canada grants must find out about the other areas of business development which the government of Canada grants is focusing on. To name a few would be exporting of various products, alternative energy resource, publishing of books related to Canadian culture, arts and crafts, music recording, and agriculture and fishery science. By getting involved in such business activities one can greatly increase their chances of availing government of Canada grants for establishing a business in the relevant fields.

Therefore, to avail a Canada grant the best option would be to delve deep and search for programs which are eligible for government of Canada grants. Once you can identify them well you can proceed with the formalities of availing it.
It is quite difficult to avail a government of Canada grants . For any information on Canada grants one must look into the websites properly.

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Effective way to Manage your Time

William King — Tue, 19 May 2009 01:50:17 +0000

The number of goals that any individual accomplishes depends solely on the way in which one chooses to utilize one’s time. The concept of how to use time differs for different people. According to their priorities, they choose to do certain things over others. That is not to say that everyone prioritizes their life’s duties in the right manner. This is why so many people find themselves unable to complete tasks that they have been striving to complete for long periods of time.

Time management requires proper planning. There are several areas that need work. There are several duties that one needs to perform on a day to day basis. To accurately prioritize these duties and then to allot them time spans requires some organization. The following are some of the things you may want to consider before drawing up a time table of a schedule:

• Aims and Objectives: It is important to determine what the activities that need to be done are and the amount of time you have. But it is more important to determine your objective and rationale for doing those things. There are several activities we continue to do out of habit, which do not bear any fruitful results, but waste a lot of time. These need to be identified and eliminated.

• Time Management Tools: A proper idea of your goals needs to be clear in your head. External tools can only help to enhance that focus. Get hold of diaries, planers and reminders to help you keep a track of the activities that you had planned. This helps you to follow the schedule better.

• Consistency: Be consistent with your work. Once you let lethargy creep into your daily schedule, it will be difficult to get rid of it. Do your day to day job on time. Don’t let jobs spill into other time slot. Clear backlog regularly.

• Energy: This aspect has a lot to do with your biological needs. Some people are inherently energetic and feel fresh with a short nap because they get a deep and peaceful sleep. Others are light sleepers so short hours of sleep do not help rejuvenate them. It is important to identify the kind of rest you need. Determine the energy patter cycle. Also find out the time of the day when your concentration is at maximum. Work around that time, and take adequate rest. Try not to feel stressed. And find out ways to relax.

• Organization: This involves both mental and physical organization. Be clear in your head about what jobs you have to finish and be mentally prepared for them. Also keep your work space and living area clutter free. Clutter and mess have adverse impact on concentration. Simple things like putting things back from where you pulled them out will save you from the trouble of clearing the mess later. It will also help you find those things again easily.

William King is the director of Wholesale Pages UK Mobile Phone Wholesalers

:http://www.wholesalepages.co.uk/ukwholesalers/Mobile_Phones-119-0.html, Daily Trader: http://www.dailytrader.com and Aid and Trade Wholesale Dropshippers Directory: http://www.aidandtrade.com . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

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Leadership matters in managing change effectively

William King — Fri, 10 Apr 2009 13:43:12 +0000

Organizations need to change their functioning and way in which they conduct their business and services. The reason behind these changes might be external forces in economy, needs of customer or marketplace. These changes would affect whole organization and it can be known from level of opposition of leadership and employees.

For any organization, if change takes place then it’s essential for all employees to understand three preliminary steps in the process. These three steps are as under:

What is needed to change?
What needs to happen to make it a reality?
How can we make it happen?

The fact is, not every employee of the organization follows these principles in same way. But, understanding these concepts has really helped many organizations to successfully bring an effective change.

Why individual opposes change?

People are insecure about loss of control by change
Lots of insecurities are being created due to change affecting the status quo
People are used to working in a particular laid down manner since long
Change requires hard work
There had been bad experience in past due to change.
Changes are forced upon people without any valid explanations.

Reduce the conflict and build loyalty to change

Reduce the resistance by providing obvious picture of change. Change should be step by step, planned and estimated. Engage people in this process and do inform them regularly. All you need to do is to reduce disruption through efficient planning. Leadership at every level should express people’s dedication to the change. Appreciate them for their involvement in change process and also give award to earlier pioneers.

Key to effective change

As a leader, one important thing is to study present culture of the organization and to know where you are. It is also necessary for a leader to identify employees who want change and those who are not happy with change. Take example from existing model that has effectively implemented change and also communicate with them regarding their experience with change. Don’t completely change existing culture immediately, but take advice from people about ways to implement the change and methods to solve the problems while implementation. Vision may help you in change, but this is not the only way.

Steps leading to successful change

Find out, what is taking place in areas, where changes have taken place by involving persons who will be in charge of results. Analyze the conditions with the representatives. Make strategic planning that leads towards success after change in organization. Continue activities with involvement of employees that will help in solving problems and also in improvement of change process. Finally measure, examine and estimate the change.

Involvement of Critical Factors

Collaboration and good communication is essential and plays important role in process. All processes, practices and functionalities give more values to customer, goals and performance for achievement of goals. There should be internal solutions. Horizontal, Vertical and multi directional interaction must be carried out before change in organization.

William King is the director of Wholesale Pages UK: http://www.wholesalepages.co.uk , Wholesale Canada – Canadian Wholesalers & Dropshippers Directory: http://www.wholesale-canada.com , Australia Wholesalers – Australian Wholesale Dropshippers & Suppliers Directory: http://www.australiawholesalers.com and France Wholesalers – French Wholesale Dropshippers & Suppliers Directory: http://www.francewholesalers.com . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

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Valuation: How to Value

Bruce Kaufmann — Wed, 01 Apr 2009 05:42:30 +0000

Use A Technique Appropriate to Your Objective

You know that you should obtain a valuation of your company when you decide to sell your business. However, proper financial management dictates that you obtain a valuation of your company at other times as well. For example, you want to get a value when you set up an equity sharing plan, transfer stock, execute a buy-sell agreement, and meet with investors to raise capital.

There are several methods for valuing a company. The purpose of the valuation often dictates the method used. For example, you may want a different value for tax purposes than you will if you are selling the company. Here are the various methods commonly used:

Book Value — This is a relatively simple process, where you take the sum of all assets and subtract the value of all liabilities. The result is the book value. The drawback to using this method is that assets will typically be undervalued because accounting rules require that values be recorded at historical cost.
Replacement Value — A variation on the book value method, this formula uses replacement value instead of book value for each asset. The result is a typically a higher valuation than would be obtained from the book value approach.
Negotiated Price — Commonly used when stockholders are executing a buy-sell agreement, in this method the parties involved simply agree on a value, such as a multiple of earnings or the net book value.
Return on Investment — In its simplest form, the return is calculated by dividing the net profit by investment costs. This method recognizes that earnings are an important element of a company’s value. The drawback is that it also requires a projection of future earnings, which means the calculated value is based more on educated guesses than actual, verifiable data.
Market Value — To obtain a valuation using the market value approach, the appraiser looks at similar companies that have sold recently, and uses their sales price to determine a price for your company. While this may provide a more accurate assessment of value, in practice this method can be difficult to apply because it may be difficult to find a similar company, or to find one that has recently been sold.
Cash Flow — There are two variations on this approach. The free cash flow method bases a company’s value on the future projected amount of available cash, net of noncash items and capital expenditures. A discounted cash flow approach takes applies a discount rate to future net cash flows to calculate a present value of the company.
Multiple of Earnings — This method applies a multiple to the earnings before interest, taxes, depreciation and amortization. The appropriate multiple to apply is usually based on a standard multiple for the industry, adjusted for factors that add to or detract from the value of the company.

Remember that each method will yield a different result, so the best approach is to pick more than one method, then compare results or apply a weighted average to determine the most likely current value for your company.

Originally published in Kaufmann’s Capital Comments.
Practical Information. Process Improvement. Profit Enhancement.

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Analytical Tools and Debt Structure

Bruce Kaufmann — Sat, 28 Mar 2009 03:26:43 +0000

Keep Tabs on Your Business Using Three Basic Documents

Over the years, many companies have asked me to help them obtain financing for their company. Often, a shortage of cash to pay vendors or meet payroll was the first indicator that they needed to borrow. Sadly, by the time some companies realize they need a line of credit, their financial condition makes them ineligible for one. So, just when they need credit the most, they are least likely to get it.

In many cases, this scenario can be avoided through a regular review of the company’s financial statements. This assumes, of course, that the financial statements are accurate, so if you don’t have a CPA firm that reviews your financial information periodically, hiring one should be one of your highest priorities.

You can obtain the information you need for a periodic review by reviewing three documents-Balance Sheet, Income Statement and Statement of Cash Flows-and performing basic ratio analysis. It is essential that you use all of these tools in conjunction with each other to gain a complete picture of your financial situation.

The Balance Sheet is a list of the items owned by the business (assets), and where the money came from to pay for those items: the owners (equity) or third parties (liabilities). This document shows how quickly a company can raise cash (liquidity), and whether the business has too much debt (leverage).

The Income Statement shows how much money the company earns from selling its product and the expenses incurred to earn that money. This document is used to determine overall profitability, or how well the company covers its basic expenses, and whether sufficient funds are available for such things as research and development, debt payments, and increasing the cash reserve.

The Statement of Cash Flows shows the company’s true cash position. It is a necessary document because most companies use an accrual accounting system, which only tracks income and expenses, but not cash.

Finally, Ratio Analysis makes it possible for you to compare financial results from one period to the next, so you can measure your progress and determine what areas of your operations require your attention.

Your financial review will help you determine how much you have to borrow, and whether you have a short term or long term financial need. Always match the term of the debt with the term of the need. Receivable and inventory purchases are short term needs. Capital asset purchases, such as machinery, building or land, are long term needs.

Originally published in Kaufmann’s Capital Comments.
Practical Information. Process Improvement. Profit Enhancement.

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The True Cost of Bad Debt

Bruce Kaufmann — Fri, 27 Mar 2009 03:49:19 +0000

Uncollectable Accounts Cost More Than You Think

When you finally decide to write off an uncollectible receivable, what is the total cost to you? If you think it’s just the amount of the invoice, you’d be wrong. To calculate the true impact on your business, you must add in the cost of other important factors that are often overlooked by management:

Less Credit / Lower Sales
Accounts receivable are typically used as collateral for a bank line of credit. A bad debt, therefore, means a reduction in the bank line of credit. Insufficient financing prevents you from accepting larger orders and inhibits your ability to grow.
Loss on Obsolete or Customized Products
When your customer doesn’t pay, you have to find another buyer for your product. When you do, you are likely to incur a loss on the sale. If you produce a customized product, your loss will be even greater since there will be a limited market for the item.
Marketing Expense of Finding New Customers
A bad debt means no more sales to the delinquent account. The lost revenue must be offset by increased sales to your other customers, if this is possible. If sales to existing customers are not enough to compensate for the lost revenue, you must make a concerted marketing effort to find a replacement. Don’t forget the old adage: “It costs more to get a new customer than it does to keep one.”

Most receivables can be collected if you are diligent, persistent and produce accurate invoices. Don’t let a collectible debt become a write-off—the cost is just too high.

After the Bad Debt is Gone, What Do You Do?

Whenever you write-off a bad debt, it’s a good idea to review your credit policy and consider whether it needs to be revised. For example:

Should you become more aggressive in your collection efforts? If you do, how will you avoid alienating your customers?
What level of slow-paying accounts is acceptable? Some customers will always pay late. How many slow payers can you afford to carry?
Should you tighten your credit standards? Many business owners are afraid to do this because they fear losing sales to customers that will object to the new credit terms. Don’t make this mistake. Do you really want customers who cannot meet reasonable credit terms?

Think carefully about any planned revisions. Focus on distinguishing non-payers from slow-payers, when to cancel credit privileges and protecting your lien position.

Originally published in Kaufmann’s Capital Comments.
Practical Information. Process Improvement. Profit Enhancement.

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