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Common Start Up Mistakes

June 11, 2012 By Leave a Comment

When it comes to starting a small business, many people make huge mistakes that doom the operation from the beginning. This is obviously affected by the type of business that you are running, but many of the general mistakes can be applied to a wide variety of industries.

If you are deciding to go into business for yourself, you probably have a good deal of confidence in the industry or market in which you are operating. This is a definite factor and a big plus for your company. If you are trying to start a business doing something that you have no clue about running, the learning curve is harsh and unforgiving. Don’t get me wrong, taking chances is usually the way to get ahead; just don’t get in over your head in a trade that you know little about.

On hand cash is a major downfall for many startup businesses; the lack thereof is the problem. In general, you should not plan on making a profit for at least six to twelve months into your operation. This is dependent on your type of business, but is a good rule to follow. You must make sure that you have the capital to operate for this period of time without having any positive cash flow. Paying your employees, rent, purchasing inventory and buying or leasing necessary equipment is a major consumer of the company’s cash flow in the early stages.

These expenditures never disappear, but in time your company should be bringing in the cash to maintain these costs, with money left over to grow. The key factor is realizing that the positive cash flow will take some time to generate. Buy having the reserves for at least six to twelve months can be the difference between getting off the ground and closing your doors.

Growing too fast is another major downfall for the upstart business. Of course, everybody wants their business and profits to grow. The key to pulling off proper growth is patience. I have personally witnessed many businesses going out of business because of this fact. You are in the position to grow because you are doing something right to start with.

When a company grows too fast it can cause the quality of your services to decline by not having a true grasp on the growth of your company. The details are missed, the proper personnel are not up to par as your core group was, you start cutting corners to maintain deadlines, ect. This can be easily avoided by planning your growth in a detailed and maintainable fashion. Be sure that you have a grasp on where you are going and how you will obtain that objective in the same manner that your success was accomplished in the first place.

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Things to Remember When Starting a Home Business

April 30, 2012 By Leave a Comment

A lot of small business owners will start their companies from in comfort of their own homes. It allows them to save money while establishing the necessary contacts and client base they need to expand into a successful business. During this time it allows the business owner to scale his business at a rate that matches the demand of his business. It is a great way to get your feet wet and learn what things you are going to need to expand, and gives the owner the skills to run his own business. The owner will be able to do every task in the daily operations and once the company is ready to hire additional employees, the owner will be able to supervise the daily operations in confidence.

Often times, small business owners are unsure about the types of services or products the company will need in order to protect itself and remain successful. A home based business owners may not consider looking into a business insurance policy to cover any products, services or contact they have with other professionals. While it is true that your home owners insurance policy may cover a vast majority of the items within your home, there are some aspects that it will not cover. If you have clients over to your home for business purposes or have something delivery for your business by FedEx or UPS and someone gets hurt or injured, your home owners insurance will not cover those costs or expenses. Those injury claims will fall directly on the business and ultimately, the owner.

You can find several insurance policies to cover the needs of a home based business, most of which are fairly inexpensive. Some of these policies will only cost the home business owner, about a hundred dollars per year for a bare bones basic policy. You can also get several advanced policy options that will cover a great range of services for your home business, such as any additional employees that you may hire or equipment. It is really a matter of what kind of coverage you want and are able to afford. The best thing to do is to contact a local insurance agent and see what kind of coverage options are available in your area and find something that is going to work well for you. An injury claim can bankrupt an uninsured business quickly, and a hundred dollar a year invest to protect your business is well worth its weight in gold.

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Running an Efficient Small Business from Home

April 25, 2012 By Leave a Comment

If you are looking to start your own home based business there are several things you should focus on to ensure positive productivity. Finding a way to manage your time and projects to ensure maximum efficiency is one of the more critical aspects that any small home based business owner should concentrate on. If you can not dedicate an adequate amount of time to your business you will not be seeing positive results anytime in the near future.

The first thing you should do when considering starting your own small business from home, is to make sure that you have the needed privacy to work. A lot of small business owners who work from their own home try to manage the responsibilities of the household while trying to juggle work at the same time. This will often times lead to a lapse in concentration and double the amount of time it takes to complete routine tasks. Finding ways to make sure that your family and friends know that you are to be left alone during set blocks of time can help eliminate this lapse in efficiency.

You should also make sure that you have all of the proper equipment and tools you will need to do the projects and tasks you have to do. You will likely need a computer and some basic office supplies. You may also need a print and or scanner, as well as any related software you would need to perform your duties. One of the biggest downfalls small startup businesses have in today’s market, is not having all of the equipment or knowledge to do the required jobs properly. You can eliminate this situation by taking the time to learn all of your software and equipment to make sure you can use it quickly. This will also make sure that you know how to use all of your tools, to their fullest advantage.

Remember that even though you are working from home and may feel as though you have a lot of freedom, that you are still working. If you were working for someone else, you would be expected to put in a full day of work, five days a week. You would always expect this from any of your employees, so you should expect this from yourself as well. You have put a lot of time and effort into starting your own business and it is going to require even more time to get it up and running. The more effort you put into your business the more of a return you are going to see from it.

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Numerous Small Business Resources Available Online

April 17, 2012 By Leave a Comment

If you are considering starting your own small business, or you are already established in your community but could still use the occasional pointer, then you should definitely be using the internet to find some of the available resources. There are ways for business owners to ask free questions, order information, find funding, learn about their responsibilities, and learn what expectations to have for their employees. It does not matter what type of business you have, there are resources available to help you get the information that you need.

One of the best resources that all small business owners should take full advantage of would be the Small Business Administration. If you go to their website, you can find some really great information. You can locate loans and grants that would cover the needs of your small business, and you can find resources that are there for answering your everyday questions. You can locate resources in your area by putting in your zip code, or you can find training that will help you learn and understand the in’s and out’s of any small business.

Another small business resource is Business USA. This is a government website that offers very similar resource opportunities to the Small Business Administration, but there are answers here that some small business owners cannot find anywhere else. This is a website that was started as a conglomeration of information from nearly all government agencies, and has steadily grown since its inception. If you need to find information from a government source, there is a way to link up with that information through this newly renovated website.

If people started using the opportunities at their fingertips, more people would come to realize they could start their own business. Current small business owners may even be missing out on some incredible resources they did not even know existed, especially in today’s harsh economy. If you have the time to look up ways of helping your small business, or if you have an idea to begin a small business, then please use the resources available to you. This country thrives off of small business, and if you strive to accomplish success, then you are helping the overall picture of America at the same time that you are helping yourself.

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How to Keep Your Business Moving Forward

April 15, 2012 By Leave a Comment

It can be difficult to find ways to keep moving forward when financial or economic troubles strike. A lot of small business owners take the brunt of these types of hits initially as this hardship travels up the ladder to larger businesses. Do not lose hope or confidence in yourself or your business, there are things you can do to keep moving ahead and weather the storm.

One of the easiest things you can do it is make sure you frequently update and monitor your social media outlets. If gives you a chance to stay in touch with customers and find out what types of things may help attract more customers to your business. It will also give you the ability to see what types of promotional offers you may be able to use to attract more business. These outlets have been very important to small businesses, and learning to use them properly can make a huge difference when faces with financial hardships.

You can also look into finding another local business to partner with. You would want something that compliments what you do. For example if your business is centered around home remodeling, it may be beneficial to look into partnering with a painting company or an interior design company. You would be able to take advantage of any work that can be thrown your way from these partnerships, as well as forward work onto them. This would give both businesses a more well rounded and complete package type of feel to prospective clients.

Do not lose your companies identity. It takes a very long time to build your reputation and establish your own identity in the business world. It is important not to lose that during an economic struggle. If you change who you are or what you do, it could hurt you more in the long run. If you change your image and style to conform to the current situation, the reputation you have built can be lost. This can affect your business after the economic situation has passed. You may not get the same style of clients and may have gotten a reputation as a cheap solution to the quality services people are looking for.

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Building Relationships to Expand Your Small Business

April 8, 2012 By Leave a Comment

A lot more small business owners need to begin utilizing the potential of the Chamber of Commerce. If a small business joins forces with a local Chamber of Commerce an entirely new world of opportunity can open up for the business. The Chamber of Commerce sets goals for itself, which are designed to help find customers for local small business owners and increase their odds of success. The Chamber of Commerce is a very good place for small business owners and potential business owners to collect information on running or starting a business. Depending on your local Chamber of Commerce, it may also offer programs that will share invaluable business tips and the commonly forgotten steps to success.

You can become a member of your local Chamber of Commerce and request to sponsor a mixer at your location. This will benefit you in a multitude of ways. You will be able to put on a demonstration of your products and services for other members of the Chamber of Commerce to see and experience. This is going to be a great way to get your name and product out to other small businesses that may be able to utilize the talents and products your company has to offer. It also allows you to see what other options are available for you in the area. You could in theory also scout the competition if you wanted, during this event.

The mixer will also allow you and any employees that you have invited to the event, to do some networking. Networking is a great way for a company to expand its resource base. It is always beneficial to have additional contacts that would be willing to help or offer advice if you are ever in need. That is one of the aspects of the Chamber of Commerce that make it such a power resource for any small business owner. Giving you and your employees other people to contact and learn from while your business starts to grow is nothing short of life saving at times. You are also going to be able to bounce around ideas between some of your contacts and find out what is going to work for your business and what will not.

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Starting Your Own Business

March 7, 2012 By Leave a Comment

So you have decided that you are tired of working for someone else and that it is time to take control of your destiny. You are not alone; more and more people want to start their own small businesses but are not sure where to start. They have several good ideas but the fear of the economy prevents most from taking the steps to get it started. I have known several people who have felt this way and I myself started my own business awhile back and want to share what I have learned over the years. The best piece of advice I could give to anyone is to take the time to do it right.

I would first recommend you figure out what kind of business you want to run. You can decide to run an online business, retail business, or home-based company. The choices are endless but those are just a few to give you a basic idea. One of the biggest problems people face is making sure that the product or services they wish to provide are desired in the area they are going to be located at. You would not go to Alaska to try and sell shaved ice to tourists, the same idea holds true throughout the world. Make sure that whatever it is you are going to offer, is something that is going to be embraced but also needed by the public. You can always find various ways to market your product to increase your sales but if the product does not fit in the area it will not do you any good.

Get to know your competitors before you do any long term planning. See how many other companies or small businesses are going to be offering the same products or services you do, and if you are going to be able to compete. A little bit of research can help you from losing your financial investment and much more. If you have a better product and feel that you can compete then move ahead and get some feedback from people. I would suggest asking friends or family members about your idea, and see what kind of things they have to say. It may be best to say you know someone who is going to be looking into starting a business, and then ask for the feedback. Sometimes our loved ones will tell us what we want to hear, instead of what we need to hear.

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7 ways to start a business without it taking over your life

July 5, 2011 By Leave a Comment

Owning a business and balancing your career at the same time isn’t the easiest thing, but it can be done. The co-author of You Can Start Your Own Business, Arnold Sanow, suggests these seven tips to help you along the way to making your side business successful..

  1. Have your family help you.
    Have members of your family help you out by answering phones, filling orders, or stuff envelopes. With your family helping, you’ll be able to accomplish more in a shorter amount of time, and they’ll also feel like they’re an important part of your business.
  2. Get ready to sacrifice your personal time.
    With juggling both your job and business, you won’t really have the time to watch television, read books, or do any of the hobbies you enjoy doing. Make sure that giving it all up is really worth it, or your business and your job both are going to be affected.
  3. Focus on whatever task that you’re currently doing.
    When you are at work, focus only on your work. Don’t get distracted by thinking of your business.
  4. Use all of your time wisely.
    Make any calls needed early in the morning or during your lunch hour. Do any unfinished paperwork during your train or bus commute.
  5. Capitalize on technology and any time-zone differences.
    Use e-mail and faxes to communicate with your clients at any given time. If you have clients that are in other countries or states, use the time-zone difference to your advantage by calling in the morning or after you get off work.
  6. Don’t exceed your limits.
    Making personal business calls while at your job or using your boss’ equipment or supplies for the benefit of your own business is unacceptable.
  7. Be upfront and honest.
    Only you know your situation, but it’s usually a good idea to tell your boss the truth about your part-time business. As long as it doesn’t conflict with your job, most employers won’t really mind. You will also benefit from being honest instead of making them feel like you’re hiding something.
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Common Tax Benefits For Home Based Businesses

May 19, 2011 By Leave a Comment

Home OfficeIf you’re running a business from home, you already know that it has plenty of advantages.. My personal favorites are the commute and the dress code.  Another big advantage is the savings in overhead costs as compared to a typical “brick and mortar” business.  But did you know that running your business out of your home can land you some nice tax breaks as well?

It’s true.  While we suggest you check with your own accountant on these (Read: We are not accountants, don’t pretend to be, don’t play one on TV, etc) here are a few of the ones we’re aware of:

  • You can deduct some of your housing costs as a business Expense
    There are a couple of “tests” you have to meet in the tax law, but as long as you meet the criteria, you can write-off a portion of your rent or mortgage, real estate taxes, utilities, insurance, repairs and some other costs.  To get this credit, your home generally needs to be either your primary business location or you need to do a substantial amount of there and you need to have a section of your home that’s sole purpose is dedicated to your business – no kitchen tables or living-room recliner, sorry. :)
  • You can deduct certain travel costs from the moment you leave your driveway
    So let’s say you need to go visit a customer or client.  The mileage you put on your car or truck from your home (after all, this IS your primary business location, right?) can be deducted.  As long as the purpose of your trip is a valid business purpose (Visiting clients or vendors, going to the bank or office supply store, etc) Keep in mind though, you need to keep good records that include the data, purpose of the trip and your starting and ending mileage for anything you deduct.
  • You can write off the cost of your computer and office equipment
    For most people, if you use a computer for both personal and business purposes, you need to keep a log of its use, kind of like with vehicle mileage.  For those of us working from home, since we use the computer and/or equipment at our primary business location, it is not considered “listed property” and can be deducted in full.
  • You can write off the cost of your cell phone and service plan
    If you’re like most of us, your cellular phone is your primary link to your clients.  If you put the billing of your cell phone in your company’s name, it automatically becomes a deductible expense.

As you can see, even Uncle Sam think’s it’s a great idea to work from home.  Actually, when you think about it, our President works from home too.. :)

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