Why Size Doesn't Matter

The immense Advantages of Small Business

The exact meaning for small business is not so understandable, but what is clear is that most businesses are small by that elusive definition. We have all heard it said that small business is the stamina of the economy, and we all seem to know that is true.

The idea of comparing the size of a business, to the power and size of a boat provides an excellent analogy. These comparisons are no surprise. Most people seem to comprehend these differences, but contemplating them well enough to seize their potential is what separates the weak from the strong.

There are big companies teetering on the border of bankruptcy. Some of them are so steeped in outdated business performs that they cannot adapt quickly enough to avoid beating the iceberg. For small business owners, to settle in the same thinking as big business can easily bring disaster. You have the advantage if you think differently. Business models are changing quickly and a small supple company can adapt more quickly.

While big companies may have an advantage in buying power and marketing budget, small businesses are usually better at having substance. They can focus and flourish in a smaller place market that would be unrealistic for a bigger company. They can take action to their clients and offer more personalized service.

Small businesses can easily execute techniques to increase their efficiency. Advances in areas such as lean communication, automation, manufacturing, modular tooling and work cells, and information technology help level the playing field for small business.

There is frequently a single point of contact presented by a small business to its customers and this person is able to service the client better for it. The individual is more likely to know the client’s history with the company, better able to make a judgment call and well versed with each section within the small business. This is generally due to the flatter organization formation of the small business.

The small business is more equipped towards change due to its smaller size. Less training is needed and the change has better achieve all through the organization. A big company entails a lot of time, effort and money to make even the smallest change due to its absolute size and compound organization structure. The small business therefore, has more future-readiness.

Say it with Me - Banruptcy is a Dirty Word

Every time you hear the word bankruptcy, what do you think of? Do you think about a big time business running out of money? The truth of the matter is, bankruptcy can come up on you very fast. It's not just something that you can look out for. After all, it seems like when one thing goes awful, it just starts to increase and everything goes bad.


The fact is, bankruptcy can spoil your credit, and that is why you have to live without filing bankruptcy. First of all, you have to have a job. Yes, it sounds like something that we must all know, but a lot of people do not know this for several reason. The next thing that you must think about is saving up money. Make sure that you have lots of money saved up, and that manner you will not have to file bankruptcy.


A lot of times, people can keep away from bankruptcy just by having a little extra money come their way. However, if you do not have good tribute, then you can not get a big loan. Keep this in mind. If you have good credit and you see things starting to mount on you, you will be able to get some money from a payday loan place and stop the bad things from happening.


The bankruptcy procedure is methodical and cold, as forbidden by law. There is no need for pleasantries. You will need to distribute suitable financial information to let others make an enlightened decision. Creditors generally want to see a snapshot of benefits and liabilities, and particulars of what is planned, in order for your firm to stay in business and be retained as a paying customer.


A workout in itself will not ensure your future success. But it offers breathing space to analyze what went wrong and establish how to return to solvency. If nothing else, you get the opportunity to stay alive. Considering the option, what could be better than that?


Filing bankruptcy should be your last option, not just “another option” to consider solving your financial problems. Even if bankruptcy may be your only resort, you owe it to yourself to check out all your options, and to be aware that there are negatives that accompany bankruptcy.

How to Pick the Best Employees

There are many techniques to hiring workers, and you are going to think very carefully about the employees that you are hiring before you actually start the work. Your employees are the people who stand for you and your company so carefully considers the type of people who want to put in that position.


Getting excellent people into your company from the very beginning will set the tone and get things moving in the right direction, which is why the hiring process deserves time, effort and most importantly, careful consideration. In order for you to be able to employ quality people, however, quality people need to apply.


The next thing you have to work out is how you are going to get through the entire job applications that you find in order to choose the right employee. You are going to get lots of different applications that you are going to make sure that you go through them cautiously and only focus on the ones that really seem worth it. Be sure that you are looking for numerous things in the applications. Don't choose the ones that are deficient, or that have questionable aspects to them.


The next thing is to run a background check. Administering a background check can shed some light on unforeseeable issues. You might discover that an applicant has information on his or her resume is false or that has a problematic criminal record. You can search the Web for companies that execute background checks.


One thing to consider when making your final assessment is that the most competent candidate is not always the right choice. You’re going to spend lots of time with this person, possibly very stressful time, so make sure you choose someone who isn’t going to drive you crazy. Apparently the person has to be a good fit for the position, but he or she also has to fit well with you and be able to grow with the company. If an applicant is eager and open-minded, intelligent, the training will be easy and the skills will develop on their own.

The M Word

What is basic marketing?


Basic Marketing will study both the importance and character of the marketing process, its essential functions and the institutions performing them in a thorough and balanced manner. Knowing necessary marketing terms can help you reach your potential in any industry. Marketing is an essential part of any business. It does not matter whether or not you have a sole proprietorship, or a limited liability corporation.


Knowing basic marketing terms and definitions can appear in usable for anyone in the business field. Whether or not you work in the ground of marketing, you will find that understanding the public relations, advertising, and communications section of your business can increase your career and simplify your work.


Tips on how to promote your business:


Business promotion is to run a successful business as working scales is to playing the guitar well; it may not be a thrilling activity in itself, but you just have to do it. You should give at least 1 hour a day on business promotion or planning how to promote your business.


You promote your business by getting the word out. The first aphorism of business promotion is that you have to do this consciously. You can't rely on other individual to do it for you, no matter how great your product or service is.


1. Give out freebies as business promotion.

2. Use your vehicle to promote your business.

3. Use buddy marketing to promote your business.

4. Promote your business through your leisure activities.

5. Use every outgoing piece of paper as business promotion.

6. Promote your business by giving a presentation or seminar.

7. If you're an Internet addict, spend some of your online time on business promotion.

8. Sending out press releases is another immense way to get some free business promotion.

9. Writing articles on subjects related to your business knowledge is an excellent business promotion technique.



These nine promotion ideas are just some of the ways you can promote your small business without spending a small fortune. With a bit time and experimentation, you'll find out which of these ideas work best for you and best get the word out about your small business.

How to Get Capital

Once you've completed the important factors of starting a business, like your business plan, you may need to obtain financing or get investors to share your enthusiasm and passion. The following are five major sources of funds.


Family and Friends
Friends and family are a clear option of funding, but this strategy certainly doesn't come without risks. Unfriendly as it sounds, you must lay the details in writing, so that both you and your family can keep things straight with the IRS. Of course, your connection with them shouldn't be the only one on your mind. Laying the terms of your loan in writing can help reduce misunderstandings, resentments and hostilities down the line.



Bank Loans

Most private banks aren't intolerably interested in lending to small businesses, which are often viewed as high-risk propositions. Unless it is a community bank that offers loans and grants through a state or city's business-development office, entrepreneurs should view a bank loan as a last resort for lending. Of course, most banks are more than glad to give straight home-equity loans or home-equity lines of credit. In such cases, banks don't think about what the money is going to be used for, since the borrowers' homes supply as collateral.



Venture Capitalists

If your company profit from a hot new technological drift or is selling a new drug or health-related invention, you might consider approaching venture capitalists for funds. However, making a small business eye-catching to skeptical professional investors takes a great deal of financial ability and some luck and thus isn't compatible for beginners.



The Government

The government has always had a charming spot for small-business holders. Some in fact enterprising individuals might be clever to score money at the state, federal and local levels. Angel InvestorsAngel investors are rich persons who empower in private business ventures. An angel investor uses his own personal funds. Some of these angels invest in establishing for the excitement of entrepreneurship, to stay current on the latest developments in a particular field, or are interested in an innovative idea.

How Big Do You Want Your Business to Be?

Types of small businesses
There are three most important structures: the sole trader; partnerships and limited companies.
The sole trader means one person has total control over the way the company is run. Traditionally they are small in size with only a small number of employees. The main advantage of being a sole trader is you make all the decisions and get all the profits. The disadvantage is you don't have anyone to share the trouble, which means it can be a very lonely existence.
You also have limitless responsibility which means any business obligation can be met from your own personal wealth if the venture fails. The proceeds will then be scattered proportionately connecting your creditors per the ratio stated in the court order.

Partnerships are the next type of business structure. The advantages are having someone to share the problems which mean you can give each other mutual support. You will also be able to tap into each other's occurrence and knowledge. However, it is not always rosy. There is less independence and more potential for friction if partners do not agree on an issue. Decision-making can frequently be slower with more people to ask and more to share the profits. Partnerships can also be formed between two business individuals as well as between an individual and a business enterprise. The obvious profit of partnerships is the shared accountability.

Limited company, there are two forms of limited company - those whose shares are publicly traded on the stock market and the privately owned. The term limited refers to limited responsibility, which means the business is its own legal entity and the owners are only liable for the amounts they invested. Their personal wealth cannot be touched. To form a limited corporation you need to register it at Companies House, have a company name and a UK address which will be your registered office.

When it comes to organizing your small business, you can decide any of these legal business entities; but if you really want to succeed, you should speak with your accountant to properly assess the pros and cons of each one.

How to Promote your Business with Affiliate Marketing

Competition is hard and there will always be bigger, more established companies out there. So, how can a new business get the acknowledgment it needs to be a success? One technique is to market your business online with affiliate marketing.

Affiliate marketing is one of the farthest reaching, yet slightest expensive methods to promote your business. In fact, you don’t have to spend a cent for your advertising until you actually make a sale. Affiliate marketing is effective because the opportunity for accomplishment is unlimited.

Affiliate marketing basically involves having known as affiliates, website owners, and post advertisements for your website on their own website. Affiliate advertisements encourage guests to click on the link and visit your website. Affiliate advertisement can work on a pay per click, pay per impression, pay per sale basis or pay per lead. Pay per impression means the affiliate receives an income each time the affiliate advertisement is served.

Affiliate marketing does not always work. When in search of affiliates it is vital to look for a number of different factors. An affiliate with a great deal of understanding, a website with high traffic and a proven track record for producing positive results will likely be a good choice for an affiliate marketing program. These affiliates rely on their advertising familiarity to promote the businesses and do not necessarily have to understand the business they are promoting.

Affiliate marketing, when done right, can capitulate a huge deal of positive results for your business. In addition, even when affiliate marketing is not done right, it will not likely be financially detrimental to the business. This is because affiliate marketing is fundamentally an advertising program in which you merely pay the affiliates when their marketing efforts yield financial results for your business.

Another brilliant option for affiliate marketing is to choose another business that is closely related to your own business but does not compete with your business. Deciding whether or not to apply an affiliate marketing promotion is easy. A more important choice to make is how you plan to balance your affiliates. The compensation for pay per notion programs is usually attractive low because your business is not necessarily generating a sale from each impression.

Things You Should Know About Internet Marketing

Old school internet marketing usually consisted of banner ads or affiliate links on other websites. Today, it is evolving into a wider mix of factors a company can use as a means of increasing sales - even if your business operates offline. Web marketing can be part of a company's overall marketing strategy. Nevertheless, it is becoming an increasingly important part of nearly every company's promotional activities. For some online businesses, it is the only type of marketing being practiced.

Internet marketing enables you to see campaign results faster, which lets determine which elements are effective or not. 

It is important for you to know and understand the important secrets to internet marketing. These can assist your success by helping you find the right audience, express your message correctly, and lead your target audience to buy the product. Here are effective internet marketing secrets revealed:

Getting customer testimonials - Posting customer testimonials in your marketing pages is a magnetic tool to enhance a product or a service's marketability.

Generating traffic - This will help you negotiate reasonable ad rates for your marketing pages. You need to find strategies to generate traffic to the sites you are marketing.

Offering a guarantee - Offering a money back guarantee sets the potential buyer at ease, making him an easier sell. 

Developing a good reputation - When transacting business with you, consumers should not have to worry about the security of their personal information, email, credit card information, or other details they may submit.

Marketing your pages - Avoid taking your target consumers to a generic website, because when they get there, they won't know the next step and you would have lost a potential buyer. Make it easy for your target consumer to take advantage of your offer.

 

Essentials for a Successful Online Business

What does it take to get a great online business running? Barring the usual factors: 

- finding funds
- huge time commitments
- organization and focus
- and a huge training ground to cover

These are the building blocks of any successful startup;

A Profitable Niche

Finding a popular but partly filled niche is the first step to making serious money off the net. Even a small specialized niche has the potential to reach millions of people on the web - as long as it has the capacity to deliver its product or service across great distances.

Come up with your own niche by starting with your hobbies and skills. A field where you have enough expertise to offer something unique. Look at existing businesses and see where you have an edge over the competition.

An In-Demand Product

A "perfect" product is the holy grail of marketing. It offers big margins with exlusive sales rights and can be delivered digitally. Making your product invaluable (regularly purchased) guarantees earnings even in your sleep.

Reliable Hosting Services

A good hosting service is a vital resource for making your operations run smoothly. Plan your website features first before approaching any service company. Choose a host that has a great track record among similar businesses in your target  niche.

Excellent Traffic Generation

Traffic geneneration is an essential tool that can gurantee profits from month to month. Online businesses need a mixture of offline and web marketing strategies to reach customers effectively. Search engine optimization, linking, email and web content marketing can boost your profile with great results, but you have to be consistent with your efforts. You can also rely on pre-selling techniques and affiliates to market your product to a wider audience.

 

Will Your Business Become a Statistic?

There's no doubt about it - starting your own enterprise is the biggest risk you can take next to jumping off a burning building.

While some treat business building as a romantic dream of quitting day jobs and rolling in unlimited income, the hard reality sinks in sooner or later. The U.S. Small Business Administration reports that although two thirds of startups survive the 2 year mark, only 44 percent actually make it past that. 

Show Me the Money

The only time you can start calling your entrerprise successful is when you earn your first real income or return on expenses (ROI). For an average small business, it can take a year or more. Getting started requires extensive funding which can become volatile. Chasing opportunites to make your business better to attract your initial customers takes a lot of hard work. 

Factors for Failure

The most common reasons for failure are:

1. Poor planning
    Most entrepreneurs go into business thinking that they will be the boss, but eventually, they find that working for themselves might mean doing everything else. The first months of operation requires setting up a system and doing everything yourself - which can get pretty exhausting.

2. Lack of funds
    Yes, its true. Money really DOES change everything. Although you may be brimming with creativity, you will need a lot of resources and capital to test drive every business technique to get your small business off the ground. Unless you have the right contacts or angel investors, finding money will always be a problem.

3. Weak promotion
    Did you know that the Marx Toy Company (one of the biggest toy companies in the world in the '50s) was said to have folded because of lack of advertising? Finding customers in a cynical world is a challenge and you have to have the guts to put yourself out there to succeed.

Here's a humorous look at the whole situation, with a Theoretical Model included.

Common Startup Problems and How to Avoid them

Starting a business involves a lot more than just capital. Sometimes, the business is doomed even before it has begun - because of a problem or two. Owners can actually ensure stability by identifying common hiccups and fixing them early in the game.

Here are common problems and how to avoid them:

Lack of a cash flow plan. Many entrepreneurs fail to realize that the success of their business depends on the income flow versus total expenditures. Big expenditures are one of the leading causes of bankruptcy. Business owners should always monitor expenses and keep them to a minimum.

Wrong Audience. Before you set-up a business, you should identify your market first - know what their needs and demands. Targeting the wrong market or having no potential market in mind would render your business useless. Be flexible and reflect current trends to maximize profit.

Hiring the wrong people. When choosing employees, value their work-attitude as much as their experience. Look for people with genuine interest in the growth of your business and who share the same ideals. In the long run, their passion for their work will be invaluable.

Having a Single Founder. A partner can help you brainstorm, explore ideas, management plans and concepts.  One  person can't do it alone.  Having a partner can  give  you better leverage for bigger opportunities with double the efforts.

Lack of a Business Plan. Always make sure that you have two sets of plans: long term and short term. Short term plans should deal with issues that can easily be solved. Long term plans, on the other hand tackle bigger, more complex issues or your over all vision for your enterprise in the years to come.

Popular Picks for an Online Business

Setting-up a business today doesn’t have to be a hassle anymore. In fact, many people have noticed that online businesses, compared to traditional ones, are preferred nowadays because of several reasons: high marketability, low maintenance, low capital and ease of use.  

If you’re thinking about creating your own business, here are ideas that do not necessarily require much capital but would surely add to your income:
  
1. Blogging
Blogs are available for free almost everywhere, but known hosts include Blogspot or Wordpress. The good thing about blogs is that you can write about almost anything of interest and if you’re blog receives alot of visitors, you can welcome advertising for websites or big companies. The price of advertising can range from a $50 to $1,000 per month, depending on the amount of visitors you have per month.

If you’ve just created your blog, Google Adsense would be a good starter. Google puts advertisements related to your blog posts and you get paid for every click that a user makes. This would help you earn extra for the mean time, while you build a stable fan base.

2. Affiliate Marketing
In affiliate marketing, a user signs-up with an affiliate program and is given commission for every successful transaction entered in his name. Affiliate programs are abound in the internet and some give up to 50% referral commission for every product sold. The good thing about it is that you only have to sell products and do not have to provide capital nor produce original products. If affiliate programs interest you, you could check out websites like Affiliate Scout for a directory of affiliate programs you can try out.

3. Online Retailing
Selling stuff that you might find lying around useless, might just be the same thing someone’s looking for from the other part of the world. Online retailing has become a hit because capital is barely needed and products are mostly stuff that you don’t need anymore. Instead of throwing them away, products can be advertised for free in websites like Ebay and Craiglist, where prospective buyers are always on the lookout for something.
   
4. Sell your Skills
Many people around the world actually gain extra income by selling their services online. Be it writing content for online magazines to creating an online portfolio and selling your advice on a per hour basis, selling your skills is easy because you could always think of something you do best and offer it for a fee. If you’re interested in article writing, check out websites like Associated Content, Suite 101 and Odesk. And if building a portfolio or website appeals to you, head to Free Web Hosts for a list of free website providers. 

How to Find a Business Mentor

Source: Small Business Transitions

If you’re planning to start your own business or you’ve already started one and need some advice on how to move on, asking for the help of a business mentor is one good way to ensure success in the long run. However, looking for a business mentor is a daunting task but with patience, some trial- and-error, and a few great tips, you’re sure you could take your enterprise to a whole new level. 

What do you need?

One thing to consider before you pack your bags and go looking for a potential mentor, is to define what kind of advice you need and from whom. A business has a lot of areas to work on: promotions, staff management, financial management and so on. You should make sure that you’re looking for advice from the right person because there’s no such thing as an ‘over-all’ mentor to work with.

Who do you need?

There’s a clear line between mentors and advisers. Mentors are people who try to help you monitor everything and constantly give you feedback. Advisers, however, are there only to give you advice on a certain matter, hence the name. Do you want someone to keep track of your progress and then give advice or just someone to run to whenever you need one? This is something to think about.

Your budget should also be taken into consideration. Mentors are mostly costly at around a hundred dollars, but that doesn’t mean it’s the end of the line. In fact, several governments like New Zealand and Ontario, Canada have programs that offer mentoring.
Online websites like Score, offer business mentorship for free. Just remember to send thank you cards to your mentors, or treat them out to lunch for the help they give. A little something goes a long way.

Build a connection.

If you’ve already found your mentor, build a connection with him. This maybe hard at first since you don’t want to drop a pile of files of proposals or project plans for him to sort through in your first meeting. Try out something easier, like a question about your business that goes like “What do you think of …” or “What if I do…”. This would certainly keep things running and would lead you to diverse topics to talk about. Once you’ve established rapport, things will certainly follow through.

Last but not least is to enjoy.

Building a connection takes time but time spent is all worth-it. In fact, you could even ask your mentor for some support groups in your area which you think could help you build more connections. Bear in mind that your mentor has connections of his own, if he’s been on the field for quite sometime now. Having you introduced to his associates would bring up a lot of opportunities.  

Affiliate Marketing as Your First Business Venture

Sample Affiliate Program (Source)

Affiliate marketing is a popular business practice where a merchant or retailer will ask “affiliates” (individuals or groups) to help promote their business. Customers who use an affiliate link to buy products or services will be directed to the original merchant’s site to complete their purchase. Affiliates then earn commissions based on the number of leads or sales they turn in. This marketing program is a simple way to boost merchant profits and a good way for individuals to get started with a small online venture.

 
Find the BEST fit for you. 
Research and compare different programs through existing reviews. Not all programs are equal so be sure to read the fine print. Reputable affiliate programs offer the best training methods and will walk you through to your final sale.

Stay away from ‘Get Rich Quick’ programs.
If it sounds too good to be true, it’s probably not. Keep in mind that it takes hard work and patience to make your affiliate business succeed. There’s no guaranteed, fool-proof, auto-pilot system for your online business. Constantly check and recheck your merchant’s background and reputation. 
 
Be consistent.
Be prepared to wait (awhile) to have a stable income. Build your reputation through traditional and innovative marketing techniques to promote your affiliate business. It will take a lot of discipline to meet your goals and grow your profits from month to month, year after year. 

Don’t spend too much on training.
Seek out free resources and expert advice to generate traffic and maintain your online business. Internet marketing is actually one big community where success is based on good networking. If you have the right connections you can enjoy a lot of free resources to help you earn and run your business right. 

Business Ideas: Where to Find Them

Source: The University of Maryland - Robert H. Smith School of Business

"Lack of money is no obstacle. Lack of an idea is an obstacle."
-- Ken Hakuta

Getting that great business idea is the first step to being an entrepreneur; and it can take some time if you don't know where to look. It’s a good thing that starting a business now is easier than in times past. You can take advantage of many free resources to help you find that brilliant business idea. Here are some great ways to kick start your dreams and turn them into reality.

Look Into Your Skill Set
The first place to look is your own skills, profession and interests. Here’s a checklist:

1. What special training do I have?
2. What’s my personal history and background?
3. What’s my educational background?
4. What are my meaningful work experiences?
5. What am I good at, what do I enjoy doing in my free time?
6. What volunteer work have I done?

If you’re thinking about turning your hobby into a profitable business, do this with a healthy dose of reality. Doing what you love and turning it into a full fledged enterprise can come as shock to most people because it takes a certain amount of honesty to follow through. Ask friends and family what they really think of your skills and once you get past your inner circle, you can seriously think about making money off your own talents. 


Explore Opportunities in Current Events
Being an entrepreneur means having an eye for opportunity. If you’re interested in finding out what sells, take in the local shopping scenery. Observe which groups of people buy what kind of products and services. 

Come up with Something Completely New 
The first rule of business is to find a need and answer it. Finding your target market is the whole point of a business idea. Profile your market with as much detail as possible and ultimately solve a problem in that area – and keep them coming back for more.

Improve on Something that Already Exists
One of the greatest myths of starting a business is that you have to have an original idea to become successful. The fact is - a lot of great products today were built on existing ones. You can look at what you already patronize and see what you would like to improve on if you were making that kind of commodity. Find your own angle and think of how you can have an edge over the competition. 

Examples: faster delivery, friendly customer support, better prices, newer materials.

Explore Different Markets
Another myth that discourages new startups is saturation. Once you’ve already entered a “saturated” market, you’re the underdog. The trick is to find another demographic or location that your business can appeal to. You can offer the exact same service and product elsewhere where the market is still growing.

Finding a good business idea is critical to any successful venture. Catch little nuggets of inspiration in your environment or observe opportunities in current trends and other localities to start your own business. Good luck and happy hunting!  

From Employee to Entrepreneur: How Do I Do It?

Everybody’s getting into the action these days. People are starting to look for ways to become more financially independent – a 9 to 5 job just isn’t enough anymore. If you’re one of those people, you may start wondering about a small home business as a way to make more money. You either do it for more income or if you want to pursue a hobby seriously and make money from your interests.

If you are scared to start out fresh, you may still tinker with your business ideas while keeping your day job. But eventually there will come a time when you will decide to work on your own small business full time. How do you make that transition from employee to entrepreneur?

First things first, you must be ready for anything and answer the following questions.

Source: Startup USA . biz 

1. Do I know what I’m getting into?

This means two things: understanding the nature of the business and knowing the necessary skills and work that needs to be done to understand your target market. Doing enough research and market testing is crucial. This will help you get a good ‘feel’ of what really sells and what the market needs right now.
 
2. Do I have a clear and sound business plan?

After you’ve done your research you will have to make a plan about your direction 
and vision for your business. Start planning details for the initial year. Where will the business be in 6 months? What should it accomplish in a year? Setting goals and milestones is good for tracking your results and progress.
  
3. Do I have the resources to make my business work?

Opportunities appear at every turn and you need to have the proper leverage to make them work for you. The next thing you need is capital. After you’ve done your market research, calculate how much you will spend on materials, equipment and labor. Make a checklist of all the things you will need and scope out the best deal. Have a file on potential investors and advisers to help you get through what you need to know. Starting out can be scary but if you’ve covered all your bases, you can get your business up and running in no time.