Tag: business
You are not running a business. You are copying grandma's hobby of making pies.
Like all grandmas, she had the hobby of making pies and we receive lots of them to make her happy. Like it or not, as grandkids, we are told to thank our grandma for the pie and tell her how wonderful is the pie, how we cannot resist finishing the last pie, which was the best. Then we ends up having more pies, although we did not like the pies till today.
Grandma is a very senior, (and I hate to say “old”) with very limited mobility and almost no eyesight. She will challenge her ability to make more pies and send them to her grandkids because she believes she makes them happier.
I was invited to the introduction of a new product with the business owner, and I was told that it is better product that best serve my health and my life.
I was given a bottle to try and I am just curious. I was told that it is a new product that is better than anything else for my health. I was intrigued and as I start to ask simple questions to find a reason to try the sample.
After asking few questions, I found a very strong resistance to answer these simple questions. Then, I was framed as a consultant who is looking for new clients. Then, I was told to not impose my service. The fact is I am not a consultant and I am not shopping for new clients. I wonder, if I should ask the business owner to simply search my name on google “Wael Badawy” to know who I am and what I do.
The product is introduced, as a combination of ingredients that I know, ingredients that I do not know, and ingredient that I may not heard about it.
This introduction triggered a flag, because I do not generally eat or drink what I do not know, in the absence of a strong motive, such as being ill.
THEN, the ingredients are very healthy and it has better fruits and vegetables that I do not know but I should consume for their valuable impact.
I am not sure what is missing here? But, my understanding is the consumers of organic products like to know everything about their food. They do not like the unknown chemicals that may impact their health. At this point, I saw the second flag, because I was judged again.
For me, rightly or wrongly, “organic” is good enough to justify its high price, but “organic” or natural ingredients that I do not know to be better for my health, is not true. Pure marijuana and marijuana’s leaves are organic and natural but they are dangerous and even though we need to know more details to understand its medicinal effect. If I consume it, I will be addicted and most likely, I will end up in Jail but I am consuming an organic natural plant!!!
THEN, the product’s presentation explained the principle of consuming the full fruit/vegetable in a juice, against extracts. In my mind, this principle is questionable with diverse arguments. As a matter of fact, having a full lime as a juice will change its flavor and texture with time because of oxidation, and it can turn to be poisoning or has a higher level of toxic. On the other hand, I cannot consume the whole orange or the whole banana. I have to peal it first!!!
– Anyway, I will pass on this argument because I am not the expert in food but I know what I eat.
At this point, I started to ask questions to better understand who is the business owner, what is the value of the product and what is the quality of the product in order to have a level of confidence to try the product.
I asked about the size of the business, to feel comfort that there are others who trust this product and buy it. I was looking for the customers’ WHY to compare it to mine, i.e. what are the reasons to buy this over-priced product. Oh, this product will cost 25x – 35x the price of a high quality 100% natural juice.
I asked about the plan to grow the business in the next three or five years. I asked about the vision of the owner to confirm the quality of the product, and there is someone stands behind the product. All what I received is “3 and 5 years are very long time”. In the absence of an answer, it demonstrates that there is no continuity and no guarantee to a quality control process. i.e. two samples of the product with the same ingredient, will have different taste.
I asked about the value of the product? The question aimed to help me to find my WHY, and I can try the sample. The articulated value is “You drink good natural stuff, so your body will perform better”. There is no confirmation or reference other than the business owner has issues and it was solved by personally drinking this combination. There was no testimonial and no confirmation of the business owner story. So, I attempted to clarify and I asked, does it help with a diet plan? or release weight? or having high energy? etc. The value was articulated as you eat better ingredients, you will be healthier and you feel good, with a proof.
I do not eat pizza and burger everyday and I eat apple and banana everyday. As it was said “One apple a day, keeps the doctor away!!!”
The articulated value is very general and I can have a blinder. I will use a mix of fruits and vegetables. AND, WOW, the juice will have the same value.
The answer continues to be “the ingredients used are planted by the owner in business owner’s garden and then picked and prepared to make the product!!!”
I asked about the science or the research behind this drink. The answer is that the business owner has researched each of the known and unknown ingredients. But, the business owner has two degrees (none of them are related to food, or health or technology or medicine). Yes, everyone may be impressed of these two degrees that have no relation to the business.
Moreover, the business owner has no passion to either degree and do not work with these degrees but the business owner offers this product to serve and help others.
The product looks professional with an expiry date to expire in two days!!! The product comes in a quantity of 1, 4 and 8 bottles. I do not know the reason that of the expiry date given that there is no research or science behind the product to determine the impact of the three days instead of two. I wonder If someone orders a pack of eight bottles, will he/her consome them all in two days. What about the logistics of producing, distributing and consuming a product that has to be kept cold (I assume) in two days?
It translates to a very limited number of customers with limited quantity orders, within a very small geographical area. So, the production, distribution and consumption in two days!!!.
I have to say that this is not a business, this is a grandma hobby to make pies, as:
1- The pies are initially FREE, till she asks for a favor in return, which will be fairly pricy.
2- The ingredients are from grandma apple tree in the backyard – Oh, by the way, the apple tree is very natural and very organic, because grandma is a senior and can not take care of the apple tree and no one fertilizes the tree.
3- Grandma believes that she makes her family happier by offering more pies. She consumes her effort, while her grandkids do not prefer to eat the pies, or do not eat them at all.
4- Grandma’s pies have to be eaten hot, and within one or two days.
5- No one knows the secret ingredient of the pies, even grandma herself does not.
6- Grandma pies taste differs from time to time. It is a function of the mood and the time in the oven, but grandma does not read the time.
7- Grandma serves only her family and close friends, which is a very limited consumer base.
The whole time, I was simply looking for a reason to try a sample of a new product. I may feel lucky to put my hand on a free sample of this product. I was trying to find a reason for myself. I know grandma, but I do not know the business owner. So please stop copying grandma hobby making pies and focus on building a business.
Note from the author:
This is a true story and I held the name of the product and business confidential because I have the care and passion to every small business and entrepreneur in our community. I strongly believe that the message within this post will help everyone in their business, So please let me know your thoughts below.
I declare that I owe the business owner the price of the sample because I did not feel comfort to drink it, which is my fault AND now the sample expired!!!
Originally posted 2018-05-16 20:54:00.
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 ‘guerilla’ 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 company’s 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 ‘no’ to manufacturers who don’t 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 don’t pick up another manufacturer just to increase the size of our line card. That’s just not good business sense for us. That’s 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 company’s 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 you’ll 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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Originally posted 2018-05-16 18:57:00.
Your Small Business May Be At Risk Unless You Have A Security and Recovery Plan
Taking the time now to at least put together an informal security and business recovery plan will go a long way in the event of a real disaster or other loss. Learn what your small business should think about before the unexpected happens.
Donít think your small business is at risk? Think again. Whether you realize it or not, your business has valuable information and assets that probably are not protected right now. Your business likely has confidential client information, proprietary business knowledge or just internal knowledge that you wouldnít want to be exposed to criminals or competitors. The loss of this information could have a devastating impact to your business. While business insurance is an important part of your protection, it cannot protect clients from identity theft or your business from unscrupulous employees or competitors.
No matter how big or small, your business needs to have a security and recovery plan in place that determines what risks you have, helps protect against those risks and sets plans in place to handle the most likely types of losses you may experience. Your plan should also look at the both the ëphysicalí and the ëvirtualí aspects of your business.
Start by considering the types of risks to which your business may be vulnerable. What if your business information was lost or stolen? Do you have customer files or records, tax receipts, bank statements, business plans, customer work products?
Next, consider the physical aspects of your business that may be vulnerable. Do you have unique office equipment, inventory, computers or trade specific tools?
Finally, look at how you do business. Do you rely on technology, the internet or employees with unique skills? Does your business model depend on repeatable processes that are unique to your business?
Now, consider what would happen to your business if these parts of your business were lost, destroyed or stolen. Could you continue operating if you lost your client files? Could you be sued by customers if their personal information was exposed? Could you be the target of negative publicity? Could your competitors benefit if they gained access to the information? What if you lost email access for a day? What if that key employee suddenly left for another job? What if your office space caught fire or was flooded?
Your security and recovery plan should put in place the safeguards and policies and procedures to prevent some of these risks and the potential to negatively impact your business. Physical access to buildings is relatively easy to control although most small business have little more than a lock on the front door. Should you consider locking file drawers? Is inventory controlled? Does every employee have access, even to things that are not part of his or her job? Could a disgruntled or fired employee return to the workspace after hours with an extra key copy?
Your plan should consider how to protect the ëvirtualí parts of your business also. Do you have backups of any important files? Do you have passwords, account numbers and other ëkeysí securely guarded? Do your computers have virus and firewall protection and is it up-to-date? Do you have internet and email usage policies in place to protect your employees form harassment charges?
What about remote employees or workers who ëtake work home?í In todayís highly mobile environment vital business information can now be easily accessed outside of your physical controls? Do your employees know how to safeguard laptops, cell phones, flash drives or even print outs of business information once they leave your workspace? What if a laptop is stolen from a workerís car or home or hotel room? Do you have a backup of the data that was on the laptop? What if your employees are accessing your information from a coffee shop Wi-Fi? How do you know if your clients and business are protected?
Lastly, your security and recovery plan should consider how you would handle the most likely losses. For instance, if the computer that holds all your sales information crashes, you should probably have a plan to immediately restore that information from a backup. Where is the backup tape or disk kept? Who has access to it and most importantly, who knows how to restore a backup? If you office is flooded, how quickly can you relocate? Can some employees work from home or other remote locations temporarily? If client information is stolen, do you have a way to contact them?
Most small business owners likely have taken first steps like purchasing insurance and putting locks on the front door. Unfortunately, few have taken the time to really understand the potential risks to their business.
Taking the time now to at least put together an informal plan will go a long way in the event of a real disaster or other loss. Even the best planning obviously wonít protect against all disasters but it can certainly lessen the impact to your business once one occurs.
Aubrey Jones is President and founder of Riverbank Consulting, Inc. Since 1996 he has worked to protect internet banking clients for one of the top US financial institutions including serving as a Risk Manager.
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Originally posted 2018-05-15 10:41:00.
Action Priority Matrix
An Action Priority Matrix (or Time Management Matrix) is a tool for prioritizing daily activities. There are 4 quadrants to the matrix as shown below:
1 – Important and Urgent
These are the tasks that must be done now. These tasks should be cleared away as soon as possible, as they are often not relevant to the actual work that is most important to us.
- Pressing issues that arise
- Emergencies and crises
- Deadlines
- Scheduled appointments and meetings
2 – Important but not urgent
These are the most important tasks of all. They are the activities that allow us to reach our goals and objectives. They should be scheduled and worked on every day.
- Working on specific projects or goal tasks
- Planning and scheduling
- Personal development
- Crises prevention
3 – Urgent but not important
These activities can take up a large proportion of our time if we let them. They are often avoidable by delegating the job to others, or by ignoring them altogether.
- Daily unscheduled tasks
- Interruptions
- Maintenance work
- General fill-in jobs
- Regular correspondence
4 – Not urgent and not important
These are the activities that we let creep into our day. They are often tasks we shouldn’t be doing at all, but we often use them as an excuse to escape the drudgery of other tasks.
- Time wasting – idle chatting, long breaks
- Irrelevant distractions – internet surfing, socializing online, texting friends, personal phone calls
- Trivial work – busy work, , pushing paper, other procrastination tasks
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Originally posted 2018-05-15 05:51:00.
Your Small Business Web Site
A web site is a crucial ingredient of your marketing strategy because it can widen your target market to include anyone who has access to a computer and the internet. Almost 60% of Canadians had access to the internet at home in 2003, and around 8 million had regular access to the internet from somewhere, either at home, at work or at school.
And thatís just in Canada. Ecommerce sales from Canada were $7.2 billion, and we only captured 4% of the global ecommerce market! So, how can you reach some of those internet surfers, and how can you capture some of that $7.2 billion spent in ecommerce?
First, you build it
The first step is designing your website. If your company already has business cards and letterhead, itís best to design your website around them. A matching corporate identity and website helps with branding.
I like uncomplicated websites, with a simple layout and easy navigation. A nice, simple layout, with good graphics, balanced look and good color combinations is my #1 goal when designing a small business web site. Remember to use graphics sparingly and to optimize them for your website because internet surfers are impatient. If your page loads too slowly, theyíll leave.
Navigation should be easy to find and to use, and it should be consistent from page to page. Iíve left more than one site frustrated because I couldnít easily find their navigation.
Small business web sites arenít static. They evolve. You need to start somewhere, and starting with an introductory web site is probably easiest. All you really need to start is five pages. You can always add pages later. The important thing is to just do itótake the plunge and get it out there.
Your five pages could include an index, or home page, about us, services, contact and a sitemap. The index page is your landing page. Typically its design is a little more detailed than the others, but it doesnít have to be that way.
I like to use CSS (cascading style sheets) for designing because itís simply easier to build a web site and to edit its layout with CSS rather than just HTML (hypertext markup language) alone. A change on a CSS sheet changes all the pages on your site at once.
Content is king
Once your site is designed, youíll want to start thinking about content. Design is very important, but it does little good to have a beautiful site without high-quality content.
Your small business home page introduces you and your companyówho you are and what you do. The about us page is usually used to give more detail than the home page about who you are, and your services page gives more detail about what you do. You might wonder why youíd ìwasteî a page on a sitemap since you only have 5 pages, but sitemaps help search engines find all the pages in your site.
As far as content goes, more is better, up to a point. Your pages should be content rich and informative, but they also need to be relevant to your small business. If your visitor canít figure out what your web site is about in just a few seconds, they may leave.
The internet was at first strictly informational, and thatís how it remains today. Several times people have tried experiments using copywriting similar to direct mail sales letters, but theyíve all failed. It seems as if people surf the internet more for information than anything else. Knowing this will help you write pages people will want to read.
Attracting visitors
You could follow your instinct and just start writing, but wait. Thereís research you must do first, or your web site simply wonít be high enough in searches to be found. Search engine optimization is far too big a subject to cover in this short article, but among other things, search engines find your pages based on keywords.
So, pretend for a moment that youíre on the other side of the desk. If you were a customer of your own business, what words or phrases would you use to search for your product or service? Ask friends and neighbors how theyíd search for your product or services.
When youíve come up with a few, check them out on a keyword suggestions tool. You can also use that tool to suggest similar words and phrases. Then find out how many results there would be if you searched for that term. What you want to do next is narrow down your choices to the words or phrases that are searched for the most, but have the fewest results.
Remember that people generally donít look beyond the first three pages for any search term, so if youíre not in the top three pages, your business is not likely to be found at all. If there are millions of results for your phrase, you might simply need to make it more specific.
For example, letís say you have a small business consulting company that specializes in communication for small business. Using ìcommunicationî as a search term is nearly pointless because there are almost 2 billion results for that word. But, there are only 974 results for ìsmall business communicationî.
Much better, but how often is that searched for? According to WordTracker, itís searched for 10 times a day. Not bad, but I think we can do better. How about ìsmall business consultingî? Thatís searched for 261 times a day, and there are 373,000 results. That could be the best primary phrase for a small business communication consulting company.
What you want to do, is write your content around those words and phrases. You donít want or need very manyóthree or four are plenty.
Getting them to come back again and again
Getting visitors to come back to your site again and again is relatively simple. Keep your content fresh and lively, make sure itís informative, and add to it often.
I hope you decide your small business needs a web site. Itís the best way I know how to reach a wider target audience with a relatively small investment.
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Originally posted 2018-05-15 04:17:00.
Forms Of Organizations
When writing a business plan, you need to decide what type of organization you are going to have. There are many types. Marquez discusses what they are.
There are many types of organizations. We can separate them into two major divisions: organizations existing to create profits (profit organizations. Includes business entities) and organizations that exist primarily for another purpose (non-profit organizations. E.g: charity organizations).
3 Types of Business Entities and their common characteristics:
1. Sole Proprietorships.
Sole proprietorships are business that are owned and operated by one person: the sole proprietor. The owner and the business, is then the same. For tax purposes, a sole proprietorship is not a taxable entity, and any profits earned by the business are taxed on the return of the individual. The proprietor must develop an accounting system that distinguishes between his/her personal affairs and that of the business.
2. Partnerships.
Partnerships are businesses that are owned by two or more individuals. For small partnerships, the agreement is often an oral agreement between the partners but it is highly recommended that the agreement be formalized as is done in bigger partnerships like public accounting firms and most law firms. In partnering up with individuals in the past, I felt it was important to outline the division of profits and expenses, as well as the expected responsibilities of the partners in a written agreement.
3. Corporations.
A corporation is an entity organized under the laws of a particular state. That means that it can get into contractual agreements into its own name. They are identifiable by the existence of shares.
There are advantages and disadvantages of each of the above types of business entities. And each is suited to the same business under different stages of its growth. For most, arts and entertainment independent contractors, it is probably Sole Proprietorships and Partnerships that are most common for their use.
Non-Business Entities
Most non-business entities are organized to serve the needs of various segments of society. Examples of these non-business entities are public hospitals, public schools, the police and the army. All of these entities are distinguished by the lack of an identifiable owner. Because of this and the non-profit motive to these organizations, their accounting systems are modified to fit their activities. The type of accounting they use are referred to as fund accounting.
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This article was written for OrangesAndLime.com, to help creative individuals ó artists, musicians, designers, illustrators and entertainers ó build their own freelance businesses. Please note that this article serves as a guideline only. You should still seek professional advice regarding the matter because laws and practices change over time and they differ from country to country.
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Originally posted 2018-05-14 20:48:00.
You May Have A Successful Small Business Idea
You surely know that a small idea can lead to a great business success. The first movement is to think of an idea that would be suitable for the business market. After coming up with the idea, the next step is to put that idea into action. Of course, this is a very difficult step and having the idea is only the start of the journey. After that you will have to face many obstacles before being able to carry on with your business project. This is just the beginning of this process and there is a lot of questions you will have to answer before even start.
Some of the main aspects you have to concentrate on when you have business ideas are the abilities and gifts you can pour into the business. It is very important for you to be identified with your business project. Those ideas should be based on activities and actions you take pleasure in doing. For example, if we suppose that you dislike working in the open, landscaping business would not suit you. On the other hand, if you like working with children, setting up baby-sitting or tutoring business would be an excellent idea. In this case, without any doubt you business will be more successful because you will have put your mind, effort and also your heart on it.
Another vital step is to analyze the needs of a specific product or service in your region before setting up your business. Do people of your area need your product? Are there other business like the one you are planning to start? You should ask yourself whether or not you are the only one offering that service or product. If you are not, you will have to analyze the competence you will have to face. You have to think whether the service you are offering is one that customer would repeat, or if it is a one-time specialized service. Obviously, the former are more likely to succeed than the latter.
There are other aspects you have to take into account. These aspects are described below:
– One of them is that if the idea is unique, you will reign the market. But if there is much competition, it will be difficult to enter into the market.
– A second point would be if you can offer quality from the very beginning, otherwise, you won’t succeed.
– Finally, you have to think about your capital to start your own business. There are many business ideas that require little investment and bring great profit. Some demand research, such as daycare service, and others need a large amount of money to begin the business. So take this recommendation into account before investing all your money in a small business idea.
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Originally posted 2018-05-14 10:14:00.
How To Get Working Capital For Your Company
Do you own a business? If you are like most business owners, you probably have a lot of responsibilities. First and foremost, you have to meet payroll. Every time. You also need to pay rent and suppliers – on time. All this requires working capital.
However, if you are selling products or services to commercial clients or to the government, you are probably painfully aware that they can take as many as 60 days to pay their invoices. Why? Because if you want their business you have to conform to their terms. There is no other way around it.
But this also leads to an impossible situation. You have bills that need to be paid quickly but customers that want to pay slowly. Unless you have a lot of money in the bank, it’s not a sustainable situation. Sooner or later you’ll miss payroll, delay a supplier payment, or turn a large opportunity away.
The solution is simple. You just need working capital. One way to get working capital is to get a business loan. However, business loans are hard to get and can prove to be inflexible. A better solution is to factor your invoices.
Factoring, or invoice factoring as it is most commonly known, is a type of business financing that is ideal for owners who cannot wait up to 60 days to get their invoices paid. It provides you with the necessary working capital to pay rent, suppliers and meet payroll. And, as opposed to a business loan, factoring is easy to get.
Invoice factoring eliminates the usual 60 day wait to get paid by your customers. The factoring company provides you with an advance on your soon to be paid invoices. In effect, it accelerates your invoices. By accelerating your invoices, you get the working capital you need to run and grow your business. And, unlike a business loan, there are no arbitrary limits. The amount of financing you get is only limited by your sales. If your sales increase, so does your financing.
If you are running a business that is growing ñ and you can’t afford to wait up to 60 days to get your invoices paid, consider invoice factoring.
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Originally posted 2018-05-13 22:45:00.
Joining The Conversation
Brand marketing is all about enhancing the mindshare of one’s products or services. The aim is for your brand name to be at the top of the consumer’s mind at the mere mention of generic terms relating to your company’s services. Arguably the best way of keeping that mindshare is by having a constant presence where your customers are. In this day and age of electronic commerce, there’s no better place to turn to than the World Wide Web.
Markets are conversations, so it is said. And the Web is perhaps the biggest conversation taking place, with exchanges of information going about the world in lightning speed, as people please-whether they be in email messages, forums, chats, or blogs. How people talk about your brand on the Web can make or break your reputation as a company, or your brand’s reputation as a product or service.
This is where blogs come in handy. The advent of the so-called Web 2.0 ushered in a concept previously unheard of in media and related industries-the massive democratization of content. Web 2.0, among other things, basically lets the consumers of information become the creators of content themselves. The Web is moving away from content with central editorial control, such as newspapers and magazines. Today’s most popular websites are not those controlled by one central group, but include mostly community- and enduser-managed sites, such as Wikipedia and DIGG.com.
Blogs let any individual or group join in on the big conversation. You write about anything online, and someone will eventually read your posts. That person can choose to talk back, and if so, a conversation is started. What’s great is that this conversation is open to the public, and anyone can join in or at least read what’s been going on.
In starting a blog, you can talk about your company’s services, or about the industry you are presently in. It would be fantastic for people to read what you write, and to respond by writing on their own blogs, or commenting on yours. You now have a direct line to your consumer-base. Isn’t that great? You are now able to get a feel of what the consumer wants. What’s more, your presence on the Web boosts recognition of your brand.
Consider adding more people to your army of bloggers-employees, partners, clients (or even hired freelancers), and the effect is multiplied. Your company is no longer represented by a stone-cold establishment. Your brand is represented by names, by faces-that of bloggers!
One notable success story in a “brand” blogging endeavor is Microsoft, the software giant considered by many people to be the “evil empire.” For so long, Microsoft has been the epitome of the stone-cold establishment. It had no human face, save for key persons like Bill Gates and Steve Ballmer-executives and officers whom people don’t really know. Microsoft’s brand name had also been suffering because of anti-trust lawsuits being filed here and there. Something had to be done, or Microsoft’s brand might be further associated with “evil.”
In its desire to shift away from all this, Microsoft, in 2004, decided to let employees blog publicly-about their work, about technology trends, about anything under the sun. One mid-level manager by the name of Robert Scoble, stood out, with his profound views and innovative ideas on technology. He was able to successfully communicate with the rest of the world about the inner workings of his company, and along the way dispelling myths about the company. He is now considered to be the persona of Microsoft in the blogosphere. Blogging has now become part of his job description. He is also one of the world’s most popular blogging personalities.
Any business enterprise-no matter how big or small-can use blogs to the advantage of their brand. Whether you’re a startup needing exposure, or you’re an established company that wants to better relate to shed its stone-cold faÁade in favor of a more human approach to doing business, blogging will definitely help your brand go a long way.
More info’s and free registrations (restricted to pros), please join our live seminar
Originally posted 2018-05-13 00:01:00.
How to Finance Your Small Business Start Up
It all starts with a great idea, an idea that has probably been in your mind for a long time. You have the product sorted out, how you are going to deliver your service, where you are going to set up your office and how you are going to market your new business. But the stumbling block always seems to be the finance to get you going.
Finding the finance to get a small business off the ground is a major issue for any potential small business. Some new businesses lend themselves to very little start up capital because the main selling point is the ownerís skills and knowledge, for example consultants, web designers, PR specialists. Businesses which require stock holding, plant and equipment and other investment, face the real challenge of getting their start up finance together.
So what sources can you tap into to ensure your business gets off to a solid start?
<b>Your Savings</b>
The first port of call! If you have been in employment for some time then before going it alone you should hopefully have some spare cash behind you. Whether this be in the form of cash in a savings account or shares and unit trusts, this is a good start to your fund raising exercise.
You can be more focused in saving cash if you have had the goal of setting up your own business for awhile. Knowing you need to save to get your business off the ground will make sure you donít spend your future nest egg on unnecessary items. Whilst a new Plasma TV or the latest DVD Recorder may seem to be an essential purchase, knowing that you have a business to set up in the future will be sufficient a deterrent to keep the cheque book firmly locked away!
<b>Keep Your Job</b>
Some business owners are lucky enough that during the early days of the business they can keep the day job while working on the business during the evenings and weekends. This has two benefits. Firstly, they are still earning thereby allowing more time to build up a cash reserve. Secondly, itís an opportunity to test out the business to make sure there is a market.
Make sure that you can realistically keep both balls in the air at the same time otherwise you will end up doing justice to neither your job or your new business. The support of your family is also essential if you are to follow this strategy. They have to accept that what used to be ëfamily timeí may have to take a back seat until you decide to concentrate on the business full time.
<b>Family and Friends</b>
These can be a useful source of finance for any start up. If you have harboured ambitions to run your business for some time, then many of your family and friends are already likely to know about your idea. You should therefore have an indication who is for it and who is against it.
If you havenít shared your secret desire then itís time to be slightly devious! If you are in the early planning stages start drip feeding your ideas to key people whom you think are likely to support you. Tell them your ideas, share your ambitions and goals and on a regular basis update them with your progress. The plan is to get them sold on you and your future business at an early stage.
Once you get to the point where you are ready to start asking for contributions hold an Investor Evening. Prepare a presentation outlining your plans, the business, the market etc. Show the potential investors what their return will be in recognition for supporting you.
Invite as many people as you can and promise an interesting and fun evening, Be bold at the very start; tell them exactly why they are there, so there are no misunderstandings. After you have done your presentation gather all the names of the people who may want more information or even a one-to-one with you.
Whilst this group are people who know you and so are more likely to trust you, donít forget that you are developing a very different relationship which can quickly turn sour. Be prepared for rocky times!
<b>Bank Line of Credit or Loan</b>
Now youíre getting into the serious stuff! Getting support from a Bank for a new business is tough, as many entrepreneurs will testify. One sneaky way is to apply for an unsecured loan while you are still in employment. If you have planned things right you will know when you are starting up, so a few months before you pack your job in, apply for a loan based on your salary. However, make sure that you can comfortably meet the repayments. There is no grace period; you will be expected to pay back immediately, so your business will have to start earning very quickly.
The alternative is a business line of credit facility. There is no fixed repayment date, although they will be for periods from 6 to 12 months, and all you have to do is ensure that you keep within the overdraft limit. You will have to write a business plan to present to the Bank which outlines your idea and the business.
<b>Mortgage or Equity Release</b>
With the way house prices have been increasing over the last few years, the vast majority of people now have substantial equity in their homes. The cheaper alternative to a Bank overdraft or loan is a mortgage. The interest rate is lower and, as the repayments are spread over a longer period, the monthly repayment is less (although you will end up paying more interest in the long run).
The disadvantage of raising cash this way is that your home is potentially at risk. If meeting the monthly repayments is dependent on what the business can generate then a slow start could cause cash problems. So be very sure you can meet the repayments even during a lean period.
<b>Credit Cards</b>
If you havenít got any savings, canít get support from family or friends, or a Bank loan or mortgage, then there are your credit cards! However, whilst itís easy to draw down on your card, be wary! Credit cards are the most expensive form of debt.
They are ideal because all you may have to do is pay the minimum amount but card debt, as most people have found out, can be a long term burden. But, if you need a cash lump sum to kick start the business and you know you can pay it off within a few months, then itís an alternative source of finance worth considering, if somewhat unorthodox!
<b>Business Grants</b>
Business grants are available for specific industries, sectors and reasons. Grant providers will usually only give a portion of your requirement, so they cannot be used to totally finance a start up. However, they can be useful in filling a funding gap.
<b>Business Angels</b>
A popular way to fund a business are Business Angels. These are people, usually retired or successful business people in their own right, who are looking for opportunities to invest in new businesses.
In exchange for an investment they will typically look for a shareholding in the business and some hands-on involvement. They will have a vast business experience and so are useful people to have on board. However, you will have to accept an element of loss of control but that needs to be balanced against your desire for funding.
Getting finance for your new business can be a challenge but there are a number of avenues to explore and so with dedication and focus you could soon be on your way to launching your own small business.
More info’s and free registrations (restricted to pros), please join our live seminar
Originally posted 2018-05-12 08:19:00.
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