Archive for December, 2009

5 Keys To Small Business Success

December 31st, 2009

You’ve been to business school and learned it all, right? Not so fast. Sometimes, the most important lessons come to us via mistakes we’ve made. Here are the top five keys to small business success that you never learned in school. 1. Don’t Be Such a Control Freak. One of the hardest things any small business owner has to do is learn when to delegate. Of course you want to do it all yourself because that’s the only way it’s going to be done right. But that only results in burnout and a bunch of employees who never learn anything. You’re only doing yourself and your business a favor when you learn to relinquish some control. The more hands you have helping you out, the more successful you will be. 2. Baby Steps. You might be of the mind that your business should be everything you’ve dreamed it would be right out of the gate. But consider the “baby steps” approach. Start out small. Spend as little as possible at the very beginning. Score some successes early on and then build on them. Get rid of the stuff that doesn’t work immediately. If you follow the “baby steps” approach, you have less to lose if you start off down the wrong path or have to scrap your whole plan and start over. Plus, it gives you a chance to research along the way by getting customer feedback as you go. 3. End Your Day Thinking About Your Business. Once you’ve left the office and finally spent some time with the family, your business is the last thing you want to think about. But spend just one more minute, right before you go to bed, thinking about one problem you’re facing in your business. The beauty of our brains is that our subconscious minds work while we sleep. If you spend a few minutes thinking about a problem right before you go to sleep, you’re essentially enlisting the aid of your subconscious to help you solve the problem. It’s the easiest work you’ll ever do. 4. Respect Your Computer Systems. Most small businesses take their computer systems for granted. They don’t back up their data, they don’t maintain their computers regularly, and they don’t enlist the aid of professionals to care for their computers. In fact, we don’t pay any attention to our computers until something goes wrong and we find ourselves in a crisis. If we treated our computer systems like factories treat their equipment, by regularly shutting down the whole works to perform routine maintenance, we’d get better performance and fewer problems from them. 5. Study the Numbers. It is a rare small business owner who actually likes to look at financial statements, at least when the business is just starting. Why? Because the numbers can be depressing. No one wants to look at the numbers when all they bring is bad news. But the truth is that you can’t improve those numbers until you have the courage to look at them and analyze them. Looking at bad numbers can bring about feelings of failure or despondence. So try this trick: Once every week, pretend you’re the accountant for your business. You have no emotional ties to the company. You’re only job is to crunch the numbers. When you separate yourself emotionally from the message that the numbers give you, you’re more likely to look at them objectively, without becoming despondent over or depressed about the news they bring. You’ll find that looking at the numbers is actually a very liberating experience. It can help you eliminate activities that don’t add value to your business and focus on the activities that help you profit. Use these five keys to help you find success in your small business. You’ll be glad you did!

5 Pitfalls to Avoid in Your Small Business Marketing

December 31st, 2009

If you have a brand new business sprouting as we speak, you need to pay attention here. Or may be you already own a small business in its nascent nervy stage. In either scenario you require a solid plan to reach your target customer. And you need it fast. Well, this article is not about giving you a marketing plan. This is to tell you what 5 mistakes to avoid. As a small business you can’t afford to loose a million dollar in market research or focus groups to find out what might work for you. But I can tell you right away what will not work. Lets find out what to avoid in your initial marketing and advertising. 1. Acting Small- ‘One man Band show’ A cardinal sin that you can commit in this time and age is to act small. Of course, you really might be a humble start-up but internet gives you a level playing field with the big guys. So why not go out, get a neat website, find some multiple-id corporate email ids, get a toll-free no. and open the shutter to public. Dn’t make it blatantly obvious that you are a one-man/woman band. Find ways of being bigger- not small. 2. Underselling- ‘Pay Us Whatever You Want’ Yes, you are just starting out. Every penny matters and you might have rising bills. Granted. Undercutting a competitor by reducing prices can be a smart business strategy, but simply trying to survive by taking whatever you get- is a disaster signal. Remember, price is an important element of your marketing-mix, please do not abuse it. ‘Better-value’ is a unique proposition; ‘cheap-product’ is not. 3. Boasting- ‘We are The Best’ Do you have honest references and genuine testimonials to prove your credibility? Do you make it visible straightaway on your home page or company leaflet? If not, then whatever you will say in support of your product and services will sound like an over-hyped sales pitch. So please be careful. Your sales page might be boasting beyond your customer’s logic. 4. Blabbering Online- ‘Bill Gates Sucks’ If you have a business to run, you have a reputation to guard. Blabbering on online forums, passing sleazy chain-emails, or, commenting rudely on blogs will find its way to your Google resume. Watch what you do online. Big brother is indeed watching you. 5. Freeby-Mania- ‘Free Web Design By’ Its commonplace for new small business owners to be on the lookout for free stuff. Not bad. As long as, it reduces the cost and provides added productivity. Beware of too many free links in your website, or, email newsletters. Maybe that presentation you prepared with free software (which left a ’sample’ watermark)can find its way to your clients. I hope these tips will help you guard against small pitfalls you can make in a bid to quickly promote your business. These are all common-sense issues. Make a habit of avoiding them once will help you throughout your entrepreneurial career.

Understanding Small Business Loans For Women

December 31st, 2009

Business, once the exclusive domain of men, has seen many women business owners coming onto the scene in recent years. Between 1992 and 1997 the growth of women-owned businesses was nearly three times the percentage of the increase of all other business enterprises. In 1997, the number of women-owned firms stood at a figure of 5. 4 million. In another ten years when people are analyzing the first decade of the twenty-first century, this figure will most likely have grown.
Why Loans Are Needed
Home-based businesses run by women continue to increase, since many women prefer the convenience of looking after their children and homes in addition to running a business. Loans for running such businesses are essential as essential for women as for men. Many women have also proven they are adept at buying existing businesses and running them successfully. This necessitates loans for a variety of purposes, including buying and running a business, expansions, buying special equipment, maintaining sufficient inventory, and maintaining retail trade.
How Small Business Administration Helps
If women are unsuccessful in obtaining loans from conventional sources, the US Small Business Administration (SBA) guarantees small business loans on reasonable and convenient terms to women entrepreneurs. These loans can be used for any of the purposes mentioned above. If a lending institution does not feel confident about granting a small business loan to a particular applicant, the applicant can approach SBA for a loan guarantee, which means that if the loan recipient falters in repaying the loan the SBA will reimburse the lender.
The Criteria For Getting An SBA Loan Guarantee
Provide historical financial statements and projections to prove that the business can repay the loan. The ability to incur more debt should be exhibited. Some form of collateral should be provided, although it need not cover the full extent of the loan. A good personal credit report is essential and if it is tainted, there should be enough evidence that determined efforts were made to rectify the problem. The small business and its owner should fulfill all their tax obligations. There must be no attempt to get any loan from other sources at the same time. The loan request must demonstrate that the loan could not be obtained elsewhere and that the loan will benefit the business substantially. The business owners must prove that their personal resources are not adequate to cover the loan amount needed.
The tremendous growth of female owned firms is evident from the 1997 Economic Census, which stated that such firms constituted 26% of the nation’s 20. 8 million non-farm businesses and employed 7% of the 103 million workers. The growth rate has increased considerably since then and it is expected to go up even further over the years to come. Keeping in view the high economic and employment potential, it is apparent that business loans for female small business owners are a necessity.
Additional Help
There is software that can help in the starting and the running of a business. This software is reasonably priced for small business owners and much of it is geared toward the operations of small business.