Category: SME
The Exit Strategies for Businesses
Many investors are only interested in investing money into an enterprise for a limited amount of time. They want to know when they will get their money back and what sort of return they will be receiving at that time. Both issues are closely linked. Therefore, when preparing your business plan, to pitch to potential investors, you will need to make sure that you have outlined your long term plans and a sound <b>exit strategy</b>.
In order to do this properly you will have to ask yourself a few questions about your own personal plans regarding the business. Do you wish to stay involved in this business in the long run, or are you more interested in getting it off the ground and letting someone else take over then? These are the kinds of questions you should deal with in your exit strategy.
You will also want to know a little about the <b>investors</b> you are pitching to and what their expectations are regarding the future of the investment:
<ul><li>If you are dealing with <b>venture capitalists</b> you have to be aware that they are looking for a <b>high return</b>. They will generally be expecting the business to go public at the end of the period or make some other high profit move. The period they are willing to invest is about three to seven years so you will need some sort of high return exit strategy at the end of that period. However, you should not opt for going public unless you are confident that it is a realistic goal for your company. Public offerings are very rare for small businesses and the investors you are speaking to will be all too aware of that fact.</li><li>If you are considering an <b>angel investor</b> then again they will be looking for a high return but will not be overly concerned with the type of exit strategy under consideration, as long as it seems sound. They will be less sophisticated than the venture capitalists or institutional investors you may deal with and are more likely to be involved because of a <b>personal relationship</b> to you or the business.</li></ul>
There are a number of exit strategies you can consider:
<ul><li>The most basic exit strategy would be to simply <b>bleed the business dry</b>. This can be done by giving yourself a huge salary or other remuneration, regardless of the performance of the business. While it is not appropriate in most cases, there is no doubt that it can get a lot of your investment back out of the company in a short time.</li><li>Another simple option is <b>liquidation</b>. Simply close the doors and wait for the company to be wound up. All debts will be paid off, and then whatever is left over will be clear to the shareholders.</li></ul>
While these two options above are quite practical and effective, they are professionally frowned upon and you may wish to propose a more sophisticated exit strategy if you wish to impress potential investors.
<ul><li>Another option could be <b>selling to a friendly buyer</b>. While you may have come to the end of your relationship with the business, there may be many people who would be saddened to see it end and may well be willing to step in to take over. This might include passing it on to another member of the family, or selling it to employees or customers. There are many businesses where this will be a realistic option, however it is difficult to predict it at the beginning of the venture.</li><li>Another option is <b>acquisition</b>. This is when a rival firm, usually one wishing to expand, agrees to buy you out. You can negotiate the price and terms with the buyer and there is a good chance that both of you can come up with a very <b>attractive price</b>. You will get a good price because together with your assets, the buyer will be willing to pay for good will, market share, client contacts etc. This means you can get a very good price for the business.</li><li>The <b>IPOs</b> that we previously talked about are the final option. These are potentially the most lucrative of all, but when reality kicks in, they might not seem like the dream you thought they were. In reality, a minuscule percent of companies manage to make it through an IPO. The process costs millions, includes lawyers, analysts, publicity agents and a lot of other costly professionals. The odds are against you ever making it. And if you do, you will probably be left with only a fraction share of the company you used to own.</li></ul>
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Every Thing You Must Know to Have a Successful Home Business and Maximize your Profits
‘Don’t Get Tricked: Thinking You Have a Home Business if you do all your work in some one else’s house is foolish. Stop running around all over town plastering up flyers. Having parties in your friend’s houses or yours is not why you do this. It does not work. ”
Choose a Home Business that Makes Sense: You must have products that sell even if there was no business opportunity. Products every body uses every where. Staple products needed and used everyday forever. Promote patented products with advantages.
Don’t Choose a Home Business that: Limits you to only luxury items or targeted items, only half the population use once and that’s it. To truly be free you will want to get paid over and over on work you do just once. Repeat sales and retention is gold, got to have it.’
Consider Networking: You only have 2 hands, how much more can you do with 400 or 4000? The best way is to multiply your income is to teach others. Earn more than you ever dreamed with your Home Business. Start multiplying your income while helping others.
Don’t Limit your Income: Recruiting or selling friends and family does not work for your Business. It helps your up-line they have 100’s doing this. So you get 5-10 from your center of influence make a couple sales. Your up-line makes a 100 times that, you get stuck.’
Take Advantage of Internet Marketing: The internet is a Home Business miracle. How else could you reach people all over the country, the world for that matter? Be affiliated with a company that has a presence in several countries and is expanding world wide.
Don’t Pay for Leads and Advertising: There is no need to pay a fortune promoting your Home Business. Losers buy questionable leads that never pay off. Calling Strangers is a waste of time and money. Your better than that, funded sponsoring can do this and advertise for you too.
Make money online: Learn from successful Home Business builders making millions. The internet is an unlimited resource. Do not over look the most powerful tool in your arsenal. It’s easy once you know how. Fortunes are being made every day online. It’s your turn.’
Don’t spend a fortune: It’s not necessary to break the bank advertising your Home Business online. There are a ton of free online methods to generate streams of cash flow. Develop never ending residual income. The internet works for you 24/7, put it to work and cash in.’
Use a website: The right site is a virtual sales force that never sleeps. It sells and/or recruits for you. There are many great sites viewed by millions that can be yours Free. People will pay you with out you ever speaking to them. No salesman can do that for your Home Business.
Don’t spend money driving traffic: Learn all the tips, tricks and secrets to drive the right people to your sites for free. Discover 100’s of fast easy ways to over load your site with your target market. If you are spending boat loads trying to do build your Home Business STOP! ‘
If your Home Business is not a Cash Flow Generating Monster Growing Out Control every day then do something Now! Find how to do what is discussed in this article. If you want to reach your goals live the life you dream then learn to Do the Do’s and avoid the Don’ts.’
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Employers – 10 Questions to ask a Recruitment Agency
If you are an Employer looking for permanent staff, using agencies can be an efficient and cost effective method of recruitment. Do your homework carefully and you can concentrate on what you do best, running your business.
Here are some example questions to ask
How will they charge? – Most agencies these days supply permanent staff on a contingency basis. This is where, you only pay the agency if you select and recruit one of their candidates. The popular term for this is ìNo placement no feeî.
What will they charge? – You need to make sure you understand how much using an agency will cost you. This is normally expressed as a percentage of first year salary. This will depend on a number of factors such as industry, location, level of role etc, but fees can often be between 10% and 30%. You might at first consider this to be rather a lot of money but just think how much its worth to you getting the right candidate with the minimum of fuss.
Is there a rebate structure? – Make sure that you agree to some form of rebate structure. Like it or not, some candidates will start a job and decide that its not for them and leave after a short time. You need to make sure that if this happens you can reclaim some of the fees paid to Recruitment Agency. This is normally done via a rebate structure. A typical example of this would be
If they leave within 4 weeks 80% of fees paid are refunded
If they leave within 8 weeks 50% of fees paid are refunded
If they leave within 12 weeks 20% of fees paid are refunded
However these scales vary between agencies. It is also becoming more common in competitive areas to see 100% refunds if the candidate leaves within 12 weeks.
What is their CV policy? – You need to make sure that they are going to make things easier for you and not just send through dozens of CVís that they have on their books, just on the off chance. Most reputable agencies will have a definite policy on this and be able to give you an idea of the number and quality of CVís in advance.
Any Client testimonials? – This is to help you ensure that you are dealing with the right agency. You donít want to have to spend a lot of time explaining to them what your company does or how they do it etc etc. The best way to avoid this is make sure that they have satisfied clients in similar business to your own. This will also give you an idea of how experienced the agencies and their consultants are in your business area.
How many agencies should I appoint? – It is a good idea to have a small number of agencies working for you as long as they are all on a contingency basis. This way you maximise your exposure to potential candidates while not spending all your working day dealing with agencies. A good idea is to start with 3 to 5 of them & see how it works out. You can always add more if you need to later.
What about a specialist agency? – Where possible you should consider industry specific agencies this if possible. Although they may charge more in fees this may be offset by the fact that they will probably be able to advise you more knowledgably about the type of candidates available, market salary rates etc.
Are there any trade bodies? – A number of agencies are members of the REC (Recruitment and Employment Confederation), which represents the industry within the UK. You should try to confirm that they are members and that they conform to their code of conduct.
Will they do Candidate referencing? – You should check to confirm that the agency you plan to use both will confirm the identity of the candidates they send you but also if required can take up their references on your behalf.
And finally
Any other useful facilities?
Do you have an interview suite? – very useful facility as it means that you can interview prospective candidates at their offices.
Do you offer Psychometric testing / ability testing?
Can you provide salary survey information? – This enables you to offer the candidates a realistic salary
Remember, recruitment agencies can charge you quite a lot of money so make sure that they are working for you!
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Guerilla Versus Gorilla – Small Companies Can Win
We make our living as guerillas – not the bad kind, but more of a freedom fighter. By using the term ëguerillaí I mean EMJ (now a division of SYNNEX) fights for business against big gorillas (other distributors) in the field. Our competitors are almost 100 times our size; EMJ is a Canadian-based, $165 million per year distributor. We have made an operating profit for the past 80 consecutive quarters. So even though we are up against the big gorillas as a distributor, we must be doing something right.
If you are in a business where some of the competitors are much larger, you may be able to benefit from using guerilla tactics. The principles of running a guerrilla organization differ from running a gorilla organization. As a guerrilla, we hide from our competitor; we do not try to crush them. I even go so far as to examine what they do well and let them do it. At the same time, I look for under-serviced markets and get to these markets fast.
A gorilla takes all competitors head on, trying to crush the competition. Sometimes this takes the form of a price war. Sometimes it takes major prolonged, drawn-out investment. This works as long as you are the same size, or larger than the competition. Even then, such a long battle can sap power and ultimately profits.
Companies that die often believe they were gorillas. It is certain death for a business to fight gorillas unless they can withstand the siege. Any time we hire someone with a gorilla-company background, we watch and coach that person to make sure they are indoctrinated with the appropriate tactics. We have to make sure they understand out business model.
My 8 favourite guerilla tactics are:
1 – Act fast. I use my companyís size for my advantage. I can act lightning fast. In the computer business, this is a huge asset. Things change so rapidly that moving fast and being first to market is a huge advantage. Larger companies do not react quickly. Develop a reputation for being first – it gets the attention of customers.
2 – Welcome smaller opportunities. Gorillas tend to say ënoí to manufacturers who donít think they can do significant volume with. But a small opportunity rejected by a gorilla can be a very profitable opportunity for a guerilla. For EMJ, a million dollar per product line is an opportunity big enough to get the attention of my first string. In your business, look for the right-sized opportunity for you. Frequently, it is the smaller opportunity that has the best promise. The gorillas will leave you alone. There is always a right-sized opportunity for a company of any size. Knowing your rightful place in the market can help you to thrive.
3 – Get focussed. Higher focus means we know more, stock more, and sell more product of fewer manufacturers. The smaller our product listing, the more powerful we become. We know a lot about a little. That means we know the products we sell better than a gorilla, and we become a sales tool for the reseller, not just an order-taker. Could you become more focused and specialized in a business area by giving up on a part of your business?
4 – Be more flexible. We can adapt more easily to our customers and suppliers. We try not to be ruled by policy. The bigger a company gets, the more likely they are to have policy and some of it is required. As a small distributor, we can be more flexible. Are there areas that your competition is ignoring that by being more entrepreneurial, you can capitalize on?
5 – Be smarter. This sounds too simple, almost embarrassing to write. Since we are smaller, we can look at the business we do more carefully and make sure it makes good business sense. We donít pick up another manufacturer just to increase the size of our line card. Thatís just not good business sense for us. Thatís the way we have to think – and so should you.
6 – Lower your overhead. For some reason, most companies seem to choose more expensive offices and furnishings as they grow. This expectation tends to increase costs in all areas of the company that distribution, at current margin levels, can ill afford. At EMJ, we buy quality used furniture. We are on the outskirts of Guelph where the cost of land and taxes is less. Our capital base is even high enough that our cost of capital is less than some of the gorillas. Are there areas that you can be lower overhead than the gorillas in your field? Costs always add up on the bottom line.
7 – Foster staff loyalty – one major advantage guerillas have over gorillas is the ability to attract, motivate, and keep good people. Primarily this is because guerillas can be more flexible, easier to work for and give people more of a sense of accomplishment because what they do contributes more directly the companyís bottom line. I have always found there to be great power by being smaller and treating my people with respect and not just as numbers. Gorillas can try to do this but it is tough for them to copy you.
8 – Just BE a gorilla. We like to enter market areas that we can dominate and specialize in. We may not be the biggest but in certain specific niches, we dominate. As long as we are the biggest in an area, we can act the part. We can under-price and over-service the competition forever. Anyone who enters our markets learns that it is expensive and often impossible to unseat us.
9 – Be personal. One thing a smaller organization can do is to be more personal. People buy from people. You can foster relationships that will help you sell. Part of the way we are personal is by showing our customers what markets and products ARE profitable. There is nothing that cements a customer relationship better than making them money, because youíll be making money for them AND for you!
10 – Be opportunistic – to sum up guerilla strategy is simply to be opportunistic. Take advantage of opportunities that the gorillas cannot do. There are many companies that remain profitable by being opportunistic.
In summary, unless you are huge – think guerilla. Appropriate guerilla tactics for your size will win any battle.
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Guidelines for Online Small Business Owners.
you are contemplating setting up a small online business you should realise it is simply to down to a numbers game.
The difference between businesses that succeeded and ones that do not is down to their conversion ratios, meaning the ratio of visitors who actually become paying customers.
If one in 50 of your visitors become a paying customer, then you will have a conversion ration of 2%. All businesses should aim to increase this ratio, simple things like using enticing tactics such as a sale can help.
The trouble is nowadays people seem desperate for visitors, they panic and pay for batches of visitors. Unfortunately these systems rarely increase your conversation ratio at all; in fact all they do is give you a false perception of your business.
A lot of online small business owners make 3 mistakes:
1. They put Google Adsense/affiliates everywhere, in my opinion these are good systems but they do detract from your core business.
2. They make their websites too complicated, when marketing to a worldwide audience; keep your website simple and easy to follow.
3. They get greedy, their prices are too high.
These points may seem obvious but it is often the most obvious things that people miss.
Here are some general guidelines for small business owners.
1. Spend time researching your website development.
2. Have an understanding of ëKeywordsí and how they benefit your site.
3. List with the main search engines and directories.
4. Have patience, especially in the first year.
5. Be imaginative
6. Donít be greedy, donít scare potential customers away.
Remember do not get carried away by the amount of visitors to your site, simply work on improving your conversation ratio, by doing this year on year you will be well on your way to running a successful business.
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Factoring Financing For Canadian Companies
Running a business in Canada has always had its particular set of challenges. One of the biggest challenges has always been finding the right business financing. The market has been dominated by banks and institutions, which have very tough and strict lending criteria. Obtaining a business loan or almost any other type of business financing in Canada in pretty difficult. However, that is changing. Quickly.
Recently, Canada has seen an increase in the number of independent financing companies that specialize in business financing. Some offer business loans, but the majority have focused on offering invoice discounting (also know as invoice factoring). Although a relatively young industry, the Canadian factoring industry is growing quickly. But, what is invoice discounting?
One of the biggest problems for small and mid sized businesses is waiting up to 60 days to get invoices paid by their commercial clients. This can affect their ability to pay rent, suppliers or salaries on time. This problem is common for many businesses, such as trucking companies, staffing agencies, manufacturers, consultants and others. Invoice discounting is a financial product that eliminates slow paying invoices by financing them.
The factoring process is very simple. Once you invoice an approved client, you send a copy of the invoice to the financing company (also known as the factoring company). The factoring company advances you a significant portion of the invoice while they wait to get paid by your customer. The transaction is settled once the customer pays the invoice. The factoring company offers this service for a small fee or discount.
An invoice discounting arrangement provides you with the necessary funding to pay expenses such as rent, suppliers and employee salaries. This enables you to operate your business efficiently, without worrying about when your clients will pay. Furthermore, invoice discounting can help you win bigger clients, because it eliminates the worries of having to wait for them to pay.
As opposed to bank financing, invoice factoring is relatively easy to obtain. The biggest requirement is that you do business with established clients who pay their invoices regularly. Invoice discounting is truly a flexible product that is within easy reach of small and mid sized businesses.
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Entrepreneurs Don't Have Average Credit Scores
Fair Isaac, the company that develops the formula to determine credit scores looks at the average statistics of consumers and factors that into your score, called a (FICO). According to Fair Isaac the average consumer will have:
– One inquiry on their personal credit report in a given year
– 54% of credit holders carry a balance of less then $5,000 on all debts other then a mortgage
– Have access to $12,190 on all credit cards combined
”’ìNow are entrepreneurs, like you, the typical consumer?’ I asked one of my clients (J.G.). ìNo.î, said J.G.. ìYou will see that as an entrepreneur, we have several more credit needs then the average consumer. So when the personal credit bureaus compare us to the average consumer, our credit consumption is not normal. Which is why your credit score lowered since starting your business.î ìThat’s not fairî said J.G. My reply, ìIf you don’t understand how the system works, you’re right.î’
Let’s look at J.G.’s situation. He has applied several times with suppliers for various credit lines over the last year. Each inquiry will likely drop his credit score approximately 5-10 points. The credit bureaus as suppose to lump three together and only drop 5-10 for the three, we’ll see if it happens. He also has a $60,000 line of credit available and carries a balance of $42,000. Both the amount of credit and balance are more then the consumer average which can hurt his score as well. This is without looking at anything else in the business or his personal life.
If J.G. had just taken the time to develop a business credit profile and start establishing basic lines of credit in the business name and then slowly build the businesses credit over time, he may never have ended up without the ability to buy the home he and his family wanted.
This is why I have written books and developed products and services with our company, Business Credit Services, to provide an education to the entrepreneur on how to ìbecome the typical consumer again’ and ìseparate your personal and business life.
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Entrepreneurial Myths: The Truth Behind Them
If you are about to start off in business you will have no doubt heard these comments:
ìSo many businesses fail. Why are you doing this?î
ìI hear that you need a large amount of money to get a business off the ground these days.î
ìWhy are you throwing away the security of your job?î
These, and more of the same, are typical of the barriers that so called friends and advisors, put in your way if you are thinking of starting a business. These barriers are built on the back of myths about the pitfalls and challenges which surround running your own business.
In this article, we’ll take a look at some of these myths and reveal them to be exactly that just myths! Don’t get me wrong, being an entrepreneur can be tough and there are hurdles to cross, but let’s bring some common sense into the debate!
<b>You Don’t Have a Personal Life</b>
Yes you will! It can be hard juggling the responsibilities of running your own business and spending time with the family, but at the end of the day, you are going to have far more flexibility with your personal life, than any employee will ever have. The real issue is, do you have the time management and planning skills to get things done, thereby allowing you time to spend with your family.
<b>You Have To Be Cunning and Ruthless To Be a Successful Entrepreneur</b>
Ok, it may help you in the short term but this is not a sound, long term strategy. To be a successful entrepreneur you need to build relationships with both customers and suppliers who will stick by you during the rough times. Being ruthless over pricing may get you one or two good deals but you are unlikely to build a lasting and profitable relationship. Your aim should be to strike a balance between what you want and what your customer or supplier wants.
<b>You Won’t Have To Work As Hard</b>
Your current job may be stressful and subject you to long hours. The idea of running your own business is appealing because you can slow down and take life at your own pace. To a degree this is true but there’s no getting away from the fact that it will be hard work. Most small businesses don’t achieve profitability until year 3 and so it’s a long slog. Remember, if was easy, everyone would be doing it!
What does make the difference though, is that you are finally doing something you love and so the hours and the struggles don’t seem like hard work at all. So perhaps this myth may be true after all!
<b>You Have To Have an Original Idea</b>
No you don’t. Most businesses are built around a central idea. The difference is usually how it’s delivered. The core products of all fast food places are the same, as are clothes shops, newsagents etc. You can make a decent living effectively copying someone else’s idea but done in a slightly different way. Don’t be put off by the doomsayers who will gleefully point out that ìit’s been done beforeî. Your response should be, ëGreat! That shows the idea works!î
<b>You Will Be Your Own Boss</b>
No way! There’s only one boss in your new business the customer. They are essential to your success. When you were working for that large, faceless Corporation, the loss of the odd client wasn’t that big a deal – plenty more where they came from.
In your new world you have to do whatever it takes to keep your customers and keep them happy. The customer is the one who calls the tunes. You have to listen and take note, before someone else does. However, at the end of the day, when all their demands are met, then perhaps you can have some time to yourself and enjoy the pleasures of being your own boss after all!
<b>You Need A lot Of Money To Get a Business Off The Ground</b>
Some businesses do need a fair bit of cash to get moving but there are many areas you can go into without the need to invest in a large amount of stock, machinery or equipment. The low-capital businesses involve the use of three very cheap commodities – your brain power, your knowledge and your time.
A business where you sell your expertise, not actual goods, to other people can be cheaply set up and carry high profit margins. All you may need is a PC, a desk and a telephone line. What’s stopping you?
<b>You Only Have To Do What You Want To Do</b>
Unfortunately this myth is wrong. We all have areas or skills in which we excel and it’s this expertise which usually forms the basis of your business. Your dedication to paperwork, bank statements and the VAT man may not be that high, but branching out on your own doesn’t mean you have the choice to avoid these terrible tasks.
Whilst you were able to do this when you were sitting in the big corporate office, you can no longer hide. These tasks have to be done otherwise the deck of cards can start to collapse.
If you do have serious misgivings on certain areas, marketing for example, then consider taking a course to improve your skills. If it’s something you seriously can’t do, then go and find someone to do it for you – don’t hope it will go away because it won’t.
You will have seen that some of the myths not being true is good news and others not so good news! Be sensible in considering the myths which are thrown at you. See it for what they are – comments from people who don’t know what they are talking about! In the next issue I’ll have some more myth-busting ideas for you.
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Exit Strategies for Businesses
Many investors are only interested in investing money into an enterprise for a limited amount of time. They want to know when they will get their money back and what sort of return they will be receiving at that time. Both issues are closely linked. Therefore, when preparing your business plan, to pitch to potential investors, you will need to make sure that you have outlined your long term plans and a sound <b>exit strategy</b>.
In order to do this properly you will have to ask yourself a few questions about your own personal plans regarding the business. Do you wish to stay involved in this business in the long run, or are you more interested in getting it off the ground and letting someone else take over then? These are the kinds of questions you should deal with in your exit strategy.
You will also want to know a little about the <b>investors</b> you are pitching to and what their expectations are regarding the future of the investment:
<ul><li>If you are dealing with <b>venture capitalists</b> you have to be aware that they are looking for a <b>high return</b>. They will generally be expecting the business to go public at the end of the period or make some other high profit move. The period they are willing to invest is about three to seven years so you will need some sort of high return exit strategy at the end of that period. However, you should not opt for going public unless you are confident that it is a realistic goal for your company. Public offerings are very rare for small businesses and the investors you are speaking to will be all too aware of that fact.</li><li>If you are considering an <b>angel investor</b> then again they will be looking for a high return but will not be overly concerned with the type of exit strategy under consideration, as long as it seems sound. They will be less sophisticated than the venture capitalists or institutional investors you may deal with and are more likely to be involved because of a <b>personal relationship</b> to you or the business.</li></ul>
There are a number of exit strategies you can consider:
<ul><li>The most basic exit strategy would be to simply <b>bleed the business dry</b>. This can be done by giving yourself a huge salary or other remuneration, regardless of the performance of the business. While it is not appropriate in most cases, there is no doubt that it can get a lot of your investment back out of the company in a short time.</li><li>Another simple option is <b>liquidation</b>. Simply close the doors and wait for the company to be wound up. All debts will be paid off, and then whatever is left over will be clear to the shareholders.</li></ul>
While these two options above are quite practical and effective, they are professionally frowned upon and you may wish to propose a more sophisticated exit strategy if you wish to impress potential investors.
<ul><li>Another option could be <b>selling to a friendly buyer</b>. While you may have come to the end of your relationship with the business, there may be many people who would be saddened to see it end and may well be willing to step in to take over. This might include passing it on to another member of the family, or selling it to employees or customers. There are many businesses where this will be a realistic option, however it is difficult to predict it at the beginning of the venture.</li><li>Another option is <b>acquisition</b>. This is when a rival firm, usually one wishing to expand, agrees to buy you out. You can negotiate the price and terms with the buyer and there is a good chance that both of you can come up with a very <b>attractive price</b>. You will get a good price because together with your assets, the buyer will be willing to pay for good will, market share, client contacts etc. This means you can get a very good price for the business.</li><li>The <b>IPOs</b> that we previously talked about are the final option. These are potentially the most lucrative of all, but when reality kicks in, they might not seem like the dream you thought they were. In reality, a minuscule percent of companies manage to make it through an IPO. The process costs millions, includes lawyers, analysts, publicity agents and a lot of other costly professionals. The odds are against you ever making it. And if you do, you will probably be left with only a fraction share of the company you used to own.</li></ul>
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Find the Right Clients
Computer consulting business owners need to latch on to the right clients in order to get their computer consulting business profitable. Make sure you are not running a charitable computer consulting business.
If you really want to make a decent living and want to have a good, successful, viable computer consulting business, sooner or later you have to narrow down your focus and develop a keen intuition. Additionally, you have to become good at spotting the best small businesses accounts.
The Small Business Myriad
There are millions of small businesses in the U.S. and there are millions of small businesses abroad. There’s a pretty good chance that there are thousands, if not tens of thousands, of companies that would qualify as small businesses in your local area.
The sad fact is, if you latch onto the wrong ones, you’re not going to have a very good computer consulting business.
Finding the Best Accounts
You need to know where to find these best accounts. In the computer consulting business you also need to know how to say “no,” and when to say “no.”
It’s extremely important that you know where to look, and how to verify that a small business is going to be a gratifying client for your computer consulting business.
You obviously want to feel a certain sense of career satisfaction. That’s probably one of the reasons you’re looking at starting your own computer consulting business as opposed to sticking with a traditional corporate IT career.
Keep the Financial Aspects in Mind
Your computer consulting business also has to be lucrative financially because you need to have a profitable business. You want it to be a stable source of recurring revenue.
Remember, all small businesses are not created equal. Your job is not to be the Mother Teresa of PC support. You are not starting a computer consulting business as a charitable organization.
The Bottom Line about the Computer Consulting Business
Of course, you want to have empathy for the people you support and you want to do a great job for them. At the same time, you have to look out for your own interests to make sure you’re going to be there for them six months to a year down the road.
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