Small Home-Based Businesses -- Five Simple Steps to Success

Did you know that, in Australia, 60% of small businesses fail in the first twelve months? For those of us who would like to start a small business -- maybe even work from home -- that's a very discouraging statistic.

Does that mean that your business idea is doomed to failure? Far from it! There are steps you can take that greatly increase your chances of success. With a little time and some serious research you can hit the ground running. Let's start from the beginning

The bright idea

First, of course, you need to come up with an idea. Typically, business opportunities can be divided into four groups:

1. Offering an existing product/service in an existing market.
2. Introducing an existing product/service to a new market.
3. Offering a new product/service in an existing market
4. Introducing a new product/service to a new market.

At this stage of the game the only limit is your imagination. Inspiration can come from anywhere -- maybe you have a hobby that you'd like to turn into a full-time job; you may be on the receiving end of bad service one day and decide to try doing it better yourself; or you may have a talent that you'd like to capitalise on.

Once you've come across something that you'd like to do, it's time to take a look at the market and see what's on offer.

Passing the test

So you've had a great idea and you're keen to roll with it; now it's time to put it through its paces. For the purpose of the exercise, let's say that you have a passion for healthy living, and that you want to distribute a range of lifestyle accessories that promote healthy living with a do-it-yourself approach.

Ask around: Is there a market for products that promote healthy living? What sorts of products are available? Who would you be competing with and what do your competitors offer? Do you have the necessary skills to run such a business and -- more to the point -- what would those skills be? Where would your business be located?

Once you've answered those questions you should have a fairly clear picture of what your business will look like.

You source some products and decide to do some further research into the range of lifestyle products offered by a company called Vitality 4 Life. Your own life experience plus some work you've done as a dietician has given you the necessary skill sets, and you think that you'll be able to work from home, giving you more time for family. There is an existing market, but there's room for expansion. Now it's time to take a closer look.

To be or not to be?

It's time to get down to the nuts and bolts. You don't want to jump into something feet first and find out the hard way that the budget just doesn't work.

To get started, sit down and work out if you need to hire staff, which means paying wages.

If you lease a premises you'll need to be able to pay the rent, and your location will have to be suitable for your business and target market (which also means that you'll have to think carefully about just what that target market is). You'll also need to work out the likely demand for your product/service.

Ok you've worked out that there is enough demand for good quality juicers, sprouters, water filters and other high end accessories to take a shot at a distributorship as a home-based business opportunity. Now you need to make some marketing decisions.

Look at me! Look at me!

Advertising can be costly so you'll want to be sure that your advertising budget is spent wisely. That means more market research, this time one-on-one. Profile your customer groups so you can aim your marketing at the right group/s of people.

Draw up a questionnaire (a short questionnaire -- people run out patience if you ramble for too long) and hang around outside a few of the local gyms (for our particular example). Come up with a mixture of open questions (What do you think of..?) and closed questions (Do you have a gym membership? Yes/No.); sliding scales can be useful too.

For our health accessories business, a good question might be ‘How did you hear about this gym? Radio, tv, newspaper, word of mouth etc' Such a question would then give you an indication of the types of media that your target group responds best to.

Choose a business name, print up some business cards, buy some stock and get ready to trade!

Measure it, manage it!

A teacher of mine made the point that, in business, if you can't measure it you can't manage it.

You need to be able to plan ahead, and to do that you need to know -- or to be able to accurately predict -- your total sales. The equation is simple: number of customers x average sale x frequency of visits per customer per year = total sales. Remember it, revise it often, measure your business and you'll be able to manage it!

Keep an eye on your bottom line and, most importantly, always be aware of your cash flow -- the cold, hard cash that you have in the bank. Allow for invoice periods (14 days, 30 days etc) when you're planning your budget.

The market place has a life of its own, and no one can prepare for every contingency. Put some thought into your idea; make sure that there's a market for what you're offering; research, research, research; promote your business effectively; always know what's going on in your bank account and don't forget about cash flow!

It's not perfect but, if you follow these few simple steps, you'll be miles ahead of many new small business ventures. If you've heard of a great home-based business opportunity, or have a product or service of your own to market, you're off to a great start!

Exit Strategies for Businesses

Many investors are only interested in investing money into an enterprise for a limited amount of time. They want to know when they will get their money back and what sort of return they will be receiving at that time. Both issues are closely linked. Therefore, when preparing your business plan, to pitch to potential investors, you will need to make sure that you have outlined your long term plans and a sound exit strategy.

In order to do this properly you will have to ask yourself a few questions about your own personal plans regarding the business. Do you wish to stay involved in this business in the long run, or are you more interested in getting it off the ground and letting someone else take over then? These are the kinds of questions you should deal with in your exit strategy.

You will also want to know a little about the investors you are pitching to and what their expectations are regarding the future of the investment:

If you are dealing with venture capitalists you have to be aware that they are looking for a high return. They will generally be expecting the business to go public at the end of the period or make some other high profit move. The period they are willing to invest is about three to seven years so you will need some sort of high return exit strategy at the end of that period. However, you should not opt for going public unless you are confident that it is a realistic goal for your company. Public offerings are very rare for small businesses and the investors you are speaking to will be all too aware of that fact.If you are considering an angel investor then again they will be looking for a high return but will not be overly concerned with the type of exit strategy under consideration, as long as it seems sound. They will be less sophisticated than the venture capitalists or institutional investors you may deal with and are more likely to be involved because of a personal relationship to you or the business.

There are a number of exit strategies you can consider:

The most basic exit strategy would be to simply bleed the business dry. This can be done by giving yourself a huge salary or other remuneration, regardless of the performance of the business. While it is not appropriate in most cases, there is no doubt that it can get a lot of your investment back out of the company in a short time.Another simple option is liquidation. Simply close the doors and wait for the company to be wound up. All debts will be paid off, and then whatever is left over will be clear to the shareholders.

While these two options above are quite practical and effective, they are professionally frowned upon and you may wish to propose a more sophisticated exit strategy if you wish to impress potential investors.

Another option could be selling to a friendly buyer. While you may have come to the end of your relationship with the business, there may be many people who would be saddened to see it end and may well be willing to step in to take over. This might include passing it on to another member of the family, or selling it to employees or customers. There are many businesses where this will be a realistic option, however it is difficult to predict it at the beginning of the venture.Another option is acquisition. This is when a rival firm, usually one wishing to expand, agrees to buy you out. You can negotiate the price and terms with the buyer and there is a good chance that both of you can come up with a very attractive price. You will get a good price because together with your assets, the buyer will be willing to pay for good will, market share, client contacts etc. This means you can get a very good price for the business.The IPOs that we previously talked about are the final option. These are potentially the most lucrative of all, but when reality kicks in, they might not seem like the dream you thought they were. In reality, a minuscule percent of companies manage to make it through an IPO. The process costs millions, includes lawyers, analysts, publicity agents and a lot of other costly professionals. The odds are against you ever making it. And if you do, you will probably be left with only a fraction share of the company you used to own.

Every Thing You Must Know to Have a Successful Home Business and Maximize your Profits

Don't Get Tricked: Thinking You Have a Home Business if you do all your work in some one else's house is foolish. Stop running around all over town plastering up flyers. Having parties in your friend's houses or yours is not why you do this. It does not work.

Choose a Home Business that Makes Sense: You must have products that sell even if there was no business opportunity. Products every body uses every where. Staple products needed and used everyday forever. Promote patented products with advantages.

Don't Choose a Home Business that: Limits you to only luxury items or targeted items, only half the population use once and that's it. To truly be free you will want to get paid over and over on work you do just once. Repeat sales and retention is gold, got to have it.

Consider Networking: You only have 2 hands, how much more can you do with 400 or 4000? The best way is to multiply your income is to teach others. Earn more than you ever dreamed with your Home Business. Start multiplying your income while helping others.

Don't Limit your Income: Recruiting or selling friends and family does not work for your Business. It helps your up-line they have 100's doing this. So you get 5-10 from your center of influence make a couple sales. Your up-line makes a 100 times that, you get stuck.

Take Advantage of Internet Marketing: The internet is a Home Business miracle. How else could you reach people all over the country, the world for that matter? Be affiliated with a company that has a presence in several countries and is expanding world wide.

Don't Pay for Leads and Advertising: There is no need to pay a fortune promoting your Home Business. Losers buy questionable leads that never pay off. Calling Strangers is a waste of time and money. Your better than that, funded sponsoring can do this and advertise for you too.

Make money online: Learn from successful Home Business builders making millions. The internet is an unlimited resource. Do not over look the most powerful tool in your arsenal. It's easy once you know how. Fortunes are being made every day online. It's your turn.

Don't spend a fortune: It's not necessary to break the bank advertising your Home Business online. There are a ton of free online methods to generate streams of cash flow. Develop never ending residual income. The internet works for you 24/7, put it to work and cash in.

Use a website: The right site is a virtual sales force that never sleeps. It sells and/or recruits for you. There are many great sites viewed by millions that can be yours Free. People will pay you with out you ever speaking to them. No salesman can do that for your Home Business.

Don't spend money driving traffic: Learn all the tips, tricks and secrets to drive the right people to your sites for free. Discover 100's of fast easy ways to over load your site with your target market. If you are spending boat loads trying to do build your Home Business STOP!

If your Home Business is not a Cash Flow Generating Monster Growing Out Control every day then do something Now! Find how to do what is discussed in this article. If you want to reach your goals live the life you dream then learn to Do the Do's and avoid the Don'ts.

Do Small Businesses need websites?

Should Small Businesses have a web presence?

In one word, yes! The internet is the most effective marketing tools in existance nowadays, have the capability of reaching far more people than any leaflet drop or advertisement in the local paper ever will.
Should you produce your own website?

It all depends on your skills, if you have the ability to produce a site that looks good, then go ahead, it will save you money and will work wonders as a marketing tool. However if your skills are limited or non-existant then we'd say no. Why? No, not because we want your money (although we don't mind if you want to give it to us...), because if your site doesn't have a professional look to it, then it is going to reflect badly on your company's image.

Do you need to spend lots of money?

It really depends on the size of your website, if you're looking simply get a presence on the internet, then you can easily get something for around Ј250 if you take the time to look, if you're really getting into the idea of being online and effectively having your shop exist in cyberspace you're going to be looking at more money, however even then, there are many self-build options such as Ekmpowershop.

What content do you need?

This all depends on what you want from being online, if you want to sell online, have your products online is going to be very useful! If you're just looking to get your company online, then there are TWO elements that we believe are imperative:


Information about your company
How to contact you

Without these two no-one is going to know who or what you are, with the former being your chance to sell yourself. Remember when people look at websites, if its well designed they won't know if they're dealing with a multi-national company or a one person organisation, this is your chance to play alongside the big boys!!

What to do now?

So you're convinced a website is the way to go? Excellent, this can only be of benefit to you! Now you've got to find a designer (there's one right here!!!), things to keep in mind when looking is what kind of style are you looking for, find some websites that you like then find some designers and see if they can produce something along that line! If they can, you're on the way to bringing into being what can be one of your best employees!!

Don't Go Cheap When Installing New Business Phones

I recently replaced my business phone system to accommodate an increase in the volume of calls I was receiving. I own a car rental franchise and needed to have new lines and new phones installed to go along with the new customer service representative I needed to hire. By taking care of my customers and keeping my vehicles clean and available, I was able to build my business and force the closure of one of my two nearby competitors. The resulting influx of customers meant I needed to act fast in order to capitalize on my good fortune. Like most people would, I gave little thought to my phone system and just decided to go with the cheapest solution I could find.

I purchased a new system that I was told would handle my volume. At first, I was more than satisfied as everything was working great and I had no problems. Shortly after I put the new phone system in place, I reduced our rental rates in order to try and get as many customers to switch over to my company from my now defunct competition instead of to my one remaining competitor. Even though I was operating at a loss for two months, my strategy was successful and my business increased yet again. The problem was that the phone system I purchased was designed to only handle a small amount of lines, and I was already at full capacity. While it was an improvement over my first system, it had limitations that I hadn't considered. I ended up having to replace it all over again, but this time I had the sense to go with a system that could grow with my business. Luckily, I was able to get some credit for returning the second phone system, which went toward the newest system.

Still, I lost money, and had I only been less concerned with the bottom line and more concerned with getting what I really needed, I would have been better off. When buying a phone system for your company, make sure you purchase one that you won't outgrow if business starts booming. I wish someone had told me that before I made the mistake of trying to save a few bucks.

Does Your Small Business Need A Web Site? (Part 1)

You are a small business owner. You use the internet both in your business and personally. Obviously you know there are many, many web sites out there. More then likely, you've even made purchases through someone else's web site. Perhaps it is apparent that you could be doing the same thing with your own business. Certainly, extra e-commerce sales could only help your bottom line. But does your business really need a web site?

In deciding that, consider what a web site really is to a business. A well designed site can give your business exposure to a much larger group of potential customers. That makes it a powerful tool in your marketing arsenal.

In today's hyper-competitive business environment, marketing experts tell us that having a successful marketing strategy is essential to the growth of your business. Effective use of a web site can draw in new leads and turn leads into conversions. Now these new customers (your best market) can be further wooed through follow up online newsletters, automatic appreciation e-mails (auto-responders), special offers or any number of tactics. All the while building a mailing list which is like gold to anyone's marketing efforts. With this almost limitless and relatively inexpensive marketing tool in the form of your web site, your profits have an even greater ability to soar.

A web site does need to be well designed. Also, in addition to targeted, effective content, your site needs to be regularly maintained and updated. Using its full potential requires someone in your company continually coming up with new online marketing strategies. But these efforts, if thought of as marketing investments, can mean big rewards in the form of increased profits for your business.

In this information age, the internet is key to making innovative marketing decisions that build a successful business. Your competition knows this and he/she probably has a web site. If they are savvy enough to realize its marketing potential, then they have a competitive edge. But you can make up ground and pass them up with a well designed web site of your own.

Does My Small Business Really Need a Press Kit?

When the "experts" tell you you're going to need a press kit for your small business I'll bet you're wondering why on earth you'd need one. At least, I think you'd wonder why if you think a press kit is just for the press. But the term ‘press kit' is misleading if you ask me because press kits aren't just what their name implies.

I prefer to call them small business information kits or information packages instead because that's what they really are. They are meant to inform everyone, not just the press about you and your business.

Once you have a small business information kit, you'll find you're often giving them when someone asks for information about your company--who you are, what you do, how you can benefit them. In fact, you'll probably find you'll give out almost as many of your information kits as your business cards.

Sometimes it's more appropriate to simply hand out just your card, but other times, you might like to give someone more information than what's on your business card.

Say you're at a party and someone asks what you do. You'd probably just give them your business card. But your business card gives this business contact only the briefest information about your company. 

So, you might also ask for their name and address, and send them an information kit the next day. Sending your information kit the next day also works as an important reminder of the evening's discussion.

On the other hand, if you're a plumbing company, you might want to contact construction companies in your area to see if they're interested in subcontracting your company from time to time, or better yet all the time!

Sending them just a business card probably won't get you very far. Even sending a well-written letter introducing your company together with your business card probably wouldn't be as effective as a complete information kit.

You could think of your business card as the "who and the where, and a little bit of the what" of the 6 interview questions—who, what, where, when, why and how. Your card probably has your business name, contact information and possibly a slogan, motto or some saying suggesting what you do.

Your information kit on the other hand, answers all the questions. It tells people who and where you are, just like your business card does. But instead of one little line suggesting what you do, your information kit tells people exactly what you do. How well it tells them what you do depends on how good your copywriting is.

And it tells them how to buy, (with your convenient order form for example, or by phone or fax, with cash, check or credit card) and when to buy (today, right now, before the special offer expires).

Your business card doesn't have the room to tell people why they should buy from you, but your information package does. And not just by telling them you're the biggest, the best, and of course the most innovative either.

The real secret is convincing people they can't do without your product or service, remembering that along with a great description of your product or service, to consider your information kit from your clients' perspective. Everyone wants to know how what you do can benefit them. How you can save them time or how you can save them money, or how you can make their life just a little bit easier.

One last word on presentation of your small business identity package. It's almost as important as what you say. A professional image can go a long way in assuring potential clients your small business is the one they want to do business with.

You cannot compete with big companies without one, and you'll be miles ahead of the small businesses that don't have one.  And while we're talking about professional image, imagine how your small business will be perceived when you have the ultimate in professional image-- a matching corporate identity package, information kit and small business web site.

Disaster Preparedness For Your Small Business: How To "Weather" Any Storm

In the event of a potential disaster, do you have a business continuity plan for your employees and your business? Are you backing up files on a routine basis, and could you recover them in an emergency?

On average, nearly 60 percent of businesses damaged in a disaster close after a year, according to the Association of Small Business Development Centers.

Last year's devastating hurricanes heightened awareness of the importance of disaster planning for businesses, large and small. But destruction of your company's infrastructure is not limited to natural disasters-it can happen anytime. Daily misfortunes like computer crashes, network breakdowns, and power outages threaten your business each and every day.

Having weathered four major hurricanes last year alone at its corporate headquarters in South Florida and across nearly 100 stores in the Gulf region, Office Depot has real-world experience in disaster planning and recovery. To help businesses be more prepared, the retailer has compiled "Disaster Preparedness: Advice You Can Depend on to Weather Any Storm."

"A sound contingency plan can enable your small business to respond effectively to a crisis, and prevent that crisis from becoming a full-fledged disaster," said Tom Serio, Director of Business Continuity Management for Office Depot.

According to Serio, the overarching principle in disaster planning and recovery is to protect your most valuable and irreplaceable assets: your people and your data. Among the guide's other recommendations:

• Keep contact information for employees and local emergency services, as well as key vendor and supplier information, updated and easily accessible. Establish a clear process for communications and plan how you will contact one another in different scenarios.

• Protect your business from faltering after a disaster by backing up key data at least once a week. Copy data to removable media, including DVD-R or CD-R discs, or to removable drives such as the Ativa McAfee Flash Memory Drive with anti-virus software.

• Move back-up software to a secure off-site location. Store copies and documents you use in day-to-day operations in a secure and fire-proof location like the Sentry Fire-Safe Electronic safe.

• Periodically review the data being stored on any back-up systems to ensure that the right data is being copied and that it can be restored.

Customer Service for Business Phone Systems

Working in a law office often means long hours and late nights, especially doing probate work. Getting in before seven A.M. and staying until well past business hours, I assumed that I would always be available for whoever might call me. Recently, my office switched our business phone system and I started to notice a drop in the number of calls I was receiving each day. It was such a change, in fact, that I was able to get my work finished much earlier than usual. I never considered that it could be our phone system and simply chalked it up to good luck. Little did I know that I was missing several calls from important clients who had almost all left voicemail messages that I hadn't been receiving. A couple of weeks after he new phone system was installed, I ran into one of these clients while in court, who kidded me about being too busy to get back to her. It was then that I realized there must have been a problem.

The next day when I returned to the office, I asked my associates if they had experienced similar problems. They hadn't, but they suggested I call the company who sold us our phones and equipment to see what could be done. I called, and within twenty minutes, the problem was fixed. Apparently, my voicemail was being sent to another place. The service representative explained in detail how to do a simple diagnostic to see if my messages were going where they were supposed to. When I found that they weren't, he explained how to change the settings to solve the problem. While I now have a lot of calls to catch up on, I am grateful that the company we went with for our new phone system provides such competent customer service. I think that in the phone business, as in any business, it is paramount to success.

Cost-Reducing Tips for the Small-Business Owner

One of the keys to running a successful small business or home office is learning to control costs. Even the smallest expenses can quickly add up and cut into profits, leaving you with a business that won't move forward.

Many small-business owners know where their money comes from, but are not as clear on where it goes. This can have a significant impact on their businesses' cash flow.

It's important to review your expenses regularly - every quarter if possible - so you can accurately manage your outgoing expenditures and look for ways to save.

Demos Parneros, president of U.S. stores at Staples Inc., provides the following suggestions to save your business money.

* Buy last year's model. Furniture, computers, PDAs - there is always something new. This also means that there is always something old. If you wait until the end of the year or for sales throughout the year, you can save on your office needs.

* Buy in bulk and buy ahead. By buying commonly used items in large quantities, you can save a lot. Replenish your supplies before you run out. Thinking ahead, and thus buying ahead, gives you a chance to comparison shop and take advantage of sales.

* Buy products that save money. Consider quality alternatives to national brands. Staples ink and toner products, for example, offer consumers quality products at a 15 percent to 20 percent cost-savings per cartridge.

* Take advantage of discounts. Professional and trade associations often offer their members discounts on insurance, travel, shipping and other common expenses. Similarly, some credit cards, like the American Express Corporate Card for Small Business, may get you discounts as well.

* Save on mail costs. Mail costs for your business can add up fast. To save money, use postcards or consolidate shipping. You also can buy or lease a postage meter or get a mail scale to eliminate overpaying.

Cost-Cutting Tips for the Small-Business Owner

One of the keys to running a successful small business or home office is learning to control costs. Even the smallest expenses can quickly add up and cut into profits, leaving you with a business that won't move forward.

Many small-business owners know where their money comes from, but are not as clear on where it goes. This can have a significant impact on their businesses' cash flow.

It's important to review your expenses regularly - every quarter if possible - so you can accurately manage your outgoing expenditures and look for ways to save.

Demos Parneros, president of U.S. stores at Staples Inc., provides the following suggestions to save your business money.

* Buy last year's model. Furniture, computers, PDAs - there is always something new. This also means that there is always something old. If you wait until the end of the year or for sales throughout the year, you can save on your office needs.

* Buy in bulk and buy ahead. By buying commonly used items in large quantities, you can save a lot. Replenish your supplies before you run out. Thinking ahead, and thus buying ahead, gives you a chance to comparison shop and take advantage of sales.

* Buy products that save money. Consider quality alternatives to national brands. Staples ink and toner products, for example, offer consumers quality products at a 15 percent to 20 percent cost-savings per cartridge.

* Take advantage of discounts. Professional and trade associations often offer their members discounts on insurance, travel, shipping and other common expenses. Similarly, some credit cards, like the American Express Corporate Card for Small Business, may get you discounts as well.

* Save on mail costs. Mail costs for your business can add up fast. To save money, use postcards or consolidate shipping. You also can buy or lease a postage meter or get a mail scale to eliminate overpaying.

Common Mistakes Small Businesses Make and How to Avoid Them

Unfortunately very few start up businesses make it beyond their 3rd year. Failure is usually down to a number of clearly identifiable mistakes, which if small business owners are aware of, can increase their chances of survival.

Here are the top 10 common mistakes which small businesses tend to make.

Lack of Market Research

When a budding entrepreneur comes up with an idea for a new business he assumes that because he would buy such a product or service then everyone else will. This may be the case for day-to-day necessities but for other items this is usually not so.

It's important that when you start up you carefully research the market to check that:

•    There is demand at a level which would lead to a sustainable business

•    People are prepared to pay the price required for you to make a decent profit

Undertaking market research may appear time consuming but the effort will pay off.

Poor Record Keeping

Some business people are not born administrators; they feel more comfortable getting out there and ‘doing the business'. Paperwork is too easy to ignore but can never be put off indefinitely.

Sales, purchases and other expenditure must be carefully documented, so you know whether you are making a profit or not. Invoices must be issued on time and chased up promptly if there is a delay in payment. It's all very well having the sales but poor record keeping can hold you back.

Having your paperwork in order will also save you time when it comes to your accountant doing your year-end books!

Insufficient Capital

When starting off it's easy to decide what capital is required for fixtures and fittings, machinery and stock. What many new business owners forget about is the cash needed to fund day-to-day requirements, i.e. cash to pay expenses before your customers pay you. This is known as your working capital requirement.

Small businesses can fail because they have insufficient cash to start off to meet these immediate expenses. If you wish to survive make sure you set aside enough cash to meet all your needs for the first few months.

Ineffective Marketing Or None At All

You cannot afford to treat the cost of marketing as an unnecessary expense. A business with no marketing is like waving in the dark – you know you are doing it but no one else does!

There are many ways to promote your business on a small budget; it's just a case of being inventive and creative. What ever you do, don't assume that people will quickly know you are in business – they won't, unless you tell them.

Ingoring Changes In The Market Place

As a small business owner it's very easy to get immersed in your business and not see what is happening around you in the market place. Always keep your eyes and ears open to what the competition is doing and what your customers want. Don't get left behind.

Owner's Attitude

Attitude is everything in business. Don't forget that the real boss in your business is the customer. Running a business may make you feel important but don't let this develop into an ‘I am better than you' attitude. Do this and you will quickly chase your customers away.

Spending On The Wrong Things

Being in business can be exciting, especially as the cash starts to roll in! However, don't be tempted to spend it on a new car, a house or just a good time. If you are to own a successful business then you have to keep some cash back to fund future growth. A business cannot grow without cash, so commit to spending business money on the business.

Dependent On A Small Number Of Customers

Don't fall into the trap of setting up a business just because one person says they will buy from you every week or month. Setting up and running a business, which is dependent on one customer, is not a recipe for success. What happens if, one month after you have spent all your cash to set up your business, that customer says he has changed his mind and has decided to buy elsewhere? Unless you can find other customers very quickly you are faced with closure.

Before embarking on a new venture make sure you have a sufficient number of customers such that if a few go elsewhere you can still continue trading.

Growing Too Quickly

Surprisingly, growing too quickly can be a problem. You have to be disciplined enough to only take on work you can handle. If you are tempted to accept too much you could end up disappointing not only the new client but also your existing ones.

Also, don't under-estimate the impact rapid growth can have your administrative burden. As I mentioned earlier, getting behind on the paperwork can have an equally damaging effect on your business.

Trying To Do Everything

Finally, the problem most small business owners have is the fact that everything falls on their plate. Inevitably this is how it's likely to be in the beginning, when the limited budget means that staff are a luxury, but as the business grows be aware that you cannot continue to do all tasks. There will come a point when you become inefficient and not have enough time to complete everything in sufficient detail. Taking on an extra pair of hands will increase your costs but you will be surprised at how much time will be saved, allowing you to do what you do best – getting the business in.

Take a look at each of the mistakes and make sure that you don't fall into these traps.

Coffee Vending Machine – The Foundation Of the Vending Machine Business

A coffee vending machine is a common sight in most locations where there are plenty of people. Whether you are in an airport, a hospital or an office building, the chances of being able to get a cup of coffee, a snack or a soda from a vending machine is very good. However, the number of specialty coffee shops is proving to be competition for these vending machines. This is why many of the coin-operated coffee vending machines now offer customers the opportunity to enjoy specialty coffee.

When it comes to vending machines, soda, snack, or coffee, customers want freshness. Therefore, if you have a coin operated vending machine that dispenses coffee or snacks, you do have to make sure that the quality of the product is always fresh. If you have coffee vending machines placed in locations where they are not doing well, the best thing is for you to find a location where the product will sell better, After a while the coffee in the machine goes stale and customers will not buy any at all.

Most business owners and managers will be very receptive if you approach them with your idea for coin-operated coffee vending machines. Since most employees do slip out to the nearest coffee shop for a refill, being able to offer specialty coffee at the business location does a lot for company morale. A small store near an office building will also like to have a coffee vending machine because the workers that come in for coffee will also purchase something else. In a vending machine, soda, snacks and fruit are really cold which goes over well on a hot summer day.

If you are fortunate enough to be able to place your coffee vending machines in the staff room of a school or business, you will do well with your vending machine business. All you have to do is set up a schedule for visiting the coin-operated vending machines to replenish the supply of coffee. You also need to provide a telephone number so that if the vending machine, soda, snacks or coffee runs out, someone from that location can call you to let you know. Being able to keep the vending machines fully stocked is one thing you need to do to succeed in this business.

The coffee vending machines of today offer larger cups of coffee than the older models. There are also better thermal and brewing systems in these coin-operated vending machines, which translates into offering your customers a better cup of coffee for their money. You do need to offer the same quality of coffee from your coffee vending machines as the customers can get at Starbucks or Tim Horton's.

Choosing a Web Site Developer for Small and Medium Size Businesses

You need a website, but how can you tell the professional business web site developers from the college kid in his basement? The answer is fairly simple if you know what kinds of questions to ask. Professional web site developers are just that - professionals. They have college degrees and/or experience related to web site development. They understand small and medium size businesses for it is likely they are one too. Most importantly, they speak to you in your language, not theirs.

Purchasing a web site is a form of advertisement for your business. Would you pay for the development of a radio or television commercial if you were not sure you would get a return on your investment? Why risk your professional reputation by trying to get the cheapest site possible just so you can put the yourbusinessname.com on your business card? If you have seen the work of a web site developer and the pages look great, do they contain keywords, titles, and descriptions to help search engines like Google and Yahoo find them?

These are some of the basic questions a professional business web site developer should be able to answer:

1. How will you measure my ROI (Return on Investment)?

2. What information will be included in my monthly web site analytical reports? The reports should answer these questions at a minimum:

..a. What time of the day do most people visit?

..b. What search engines are they using to go to my site?

..c. How long does someone stay on my site?

..d. Which pages do they visit?

..e. Where do they go when they leave?

..f. What are the demographics of my typical online customer?

..g. Has my search engine ranking changed?

3. Will my site be monitored 24/7 with guaranteed 99.8% reliability?

..a. Are all links checked every day?

..b. Are broken links corrected?

4. What is my conversion rate (how many potential online customers have turned into actual customers)? Also,

..a. Why did they visit my business online?

..b. Were they happy with their purchasing experience?

..c. What would they change about my site?

5. How will you help me increase my business over time?

If you are having trouble finding a web site designer, visit the sites of your competitors or other local businesses. Most reputable web site developers list themselves and include a link in the small print at the bottom of the sites they have created. Call the businesses whose sites you like and ask the owners if they are satisfied with their Internet presence. Consider using a web site developer who is not local. They should be able to gather the information they need over the phone or through a web conference. Finally, ask for proposals with price quotes from more than one web site developer. The quality of the proposal will be a good indicator of the professionalism of the business.

Check Out A Vending Machine Sale – Start Your Own Home Based Business

A vending machine sale will give you a clear picture of the wide range of vending machines with which you can start your own profitable home based business. There are many distributors of vending machines and bulk vending products that will supply you with all the information you need regarding prices of machines and the bulk products you need to restock them. While candy and food service vending machines are the most common, there are many more types of vending machines you can use to turn a profit. It is only when you attend a vending machine sale that you get the overall picture of how this business works.

You don't have to spend time searching the classifieds to find a vending machine sale near you. A simple online search will net you thousands of results for distributors of bulk vending products and the machines that sell them. The distributors have all kinds of vending machines, both new and used, so you can search for the cheapest machines in the line of products that you want to sell. Getting the machines for a sale price along with the bulk products means that it won't take you very long to get back your initial investment in sales.

The main factor in making money with a vending machine business is to choose a location where there is lots of traffic. Traffic translates into sales when your vending machines are visible. Bus stations, airports, office buildings, hotels – all of these are prime money making locations for vending machines of all types. A vending machine sale will let you see right away the machines you think could work for you. When you get a price list from distributors of bulk vending products, you can easily do the math to see how you can make money.

With a vending machine sale, you have the opportunity to have a business where you do not have to worry about credit card fraud, bounced checks or credit. The vending machine business is a cashless industry in that you do not have to even deal with the customers. You get permission from business owners to place your machines in their location and purchase the products from distributors of bulk vending products. Since you buy in bulk, you will only need to make purchases occasionally. The more bulk products you buy, the more money you can save.

Even with a vending machine sale, you should not expect to become rich over night. Like any other business, the vending machine business requires work. If you start small and learn the ropes, you can easily develop this home based business into your main source of income. You will need to have space in your home to store the bulk products that you buy from distributors of bulk vending products, especially if you have a lot of vending machines. You also need to keep good records of your purchases of bulk products and the results of the money you make from sales in each machine. This is how you can really get a good picture of which machines are the best and what you need to look for at the next vending machine sale.

Can Your Small Business Afford Not to Have a Web Site?

I've been accused of being opinionated by more than one person in my life, but try as I might to work on that part of my personality, it remains pretty much the same. So, in this article, I'm going to discuss my "opinion" on one reason why, even if your target market is strictly local, your small business can't afford not to have a web site.

A few statistics from Statistics Canada to start us on our way-. In 2003, there were about 12 million households in Canada, and of those 8 million had regular access to the internet from work, home and/or school. Around 60% of the total households had a computer and internet access at home.

Ok, so now we know how many households had access to the internet, but what were they using it for? Almost 90% used the internet for browsing, but more importantly for our discussion- 34% used the internet for purchasing goods and services, and by the way, that's almost double 1999 figures for purchasing goods and services on the internet.

Industry Canada reports that in 2000, Canadian ecommerce sales were $7.2 billion, a whopping 73% increase over 1999 numbers. And no, it's not a typo, it really is $7.2 BILLION! I'd say there's a pattern brewing—internet usage and sales are increasing rapidly.

And, according to Industry Canada, Canada captured only about 4% of global e-commerce in 2000. Now, numbers may not be my strong suit, so feel free to correct me if I'm wrong, but doesn't that mean there was 180 billion dollars spent globally in ecommerce?

Let's look for a moment to the United States. tamingthebeast reports statistics and forecasts collected during December 2001—157million online users forecast to spend $47.8 billion in online retail revenue in 2002. By 2006, the forecast is 210 million users spending $130 billion in retail revenue.

The numbers alone will probably convince many people to invest in a small business web site, particularly if they're in an industry where their target market isn't restricted to a purely local one.

But, you say, my business is just a little local shop. Why should I get a web site for my small business? What good will the internet do me?  I've heard that one before. In fact, the guy I've heard it from most is David.

He's the guy with the auto shop in my article "I Don't Need a Business Plan—Do I?" Long story short, his mother in law finally convinced him to write a business plan and his business is making some money, but in my opinion, it could do better with some marketing. I'd really like to convince him to spend some marketing dollars (he's a little cheap sometimes), but so far, no dice. Anyway I digress.

Let's use David's business as an example. So, his business is in Saskatoon, a city with a population of just over 200,000 over five years of age and almost 90,000 households in 2001, according to Statistics Canada. Nearly every household has at least one vehicle in Saskatoon, so that means there are around 90,000 potential vehicle problems for David's shop.

Of course, not every vehicle is going to break down in a year, and David isn't going to get all of them to use his shop, but you get the idea. And mind you, some of them will break down more than once. A certain 1988 Jeep YJ comes to mind

In Saskatoon, 72.5% of households had access to the internet in 2003, so around 65,000 households had internet access. And that's not including the rural population surrounding Saskatoon who also have vehicles that need a mechanic from time to time. Now, let's say David goes marketing-crazy and spends $2500 for his web site (which in my opinion is way too much money for a static small business web site).

But it does no good to have a web site if it isn't found. Statistically, when people enter a word or phrase into a search engine, they'll stop looking after the third page. That means, that in order for your web site to be positioned so people will actually click on it, it needs to be in the top 30 web sites for your particular key words or phrases.

So, lets assume that the $2500 David spent includes some good search engine optimization. His web site copywriter makes sure to research and find relevant keywords, and uses them well in his site.

She adds his site to small business directories, and does more of her seo magic, and low and behold, three months in, David's site comes up #2 in a Google search for "auto repair Saskatoon".  Now there are a potential 65,000 clients for David's business because they'll find it in a search engine.

If he only reaches .1% of those 65,000 (not 1%, but point 1%), he could have 65 new clients, and you know your bill is going to be more than 100 bucks every time you take your car to the shop, but assuming just $100 for an average bill, he'll gross $6500, making that $2500 web site money well spent. I'd be willing to bet he'd make that much on maintenance alone, never mind repairs.

Now that I think about it, I've never approached David about a web site from this angle. I think I might show him this article. He's a logical sort of guy, and it just might convince him to get one.

Can accounts receivable factoring help your business grow?

Are you stuck with great but slow paying clients? It is interesting how your biggest asset (great clients) can also be your biggest liability. But that is how business is. And as an owner you must adapt.

Whether you like it or not, slow paying customers are here to stay. As a rule of thumb, commercial clients pay their bills in 30 to 60 days. And lately, the trend has been deteriorating. So, what do you do if you have slow paying receivables.

Many owners try to go to the bank to get a business loan. Not surprisingly, few business owners get business loans. As a rule, banks will only finance companies that have long and established histories. This is not your case if your company is new or emerging from tough times.

If your biggest challenge is that you cannot afford to wait up to 60 days to get paid by your customers, then the solution is accounts receivable factoring. Most commonly known as factoring, this type of financing eliminates the usual wait to get paid. It provides you with the necessary funds to pay suppliers, meet payroll and take on new business opportunities.

And how does factoring work? Simple:

1. You finish the work and send an invoice to your client. You also send a copy to the accounts receivable factoring company.
2. The financing company advances you 70% to 90% of the invoice (a small reserve is held to handle disputes, etc.)
3. You get the funds in 24 hours
4. As soon the customer pays the invoice to the financing company, they rebate the reserve (less a small fee)

As you can see, accounts receivable factoring can easily be integrated into your business, providing you with prompt invoice payments. Usually, funds are advanced within 24 hours of submitting invoices.

Accounts receivable factoring is easy to qualify for. Accounts can be set up in as little as 4 business days. As opposed to business loans, the main requirement for factoring is to do business with strong credit worthy customers. So if you do business with good commercial clients (or the government), be sure to add factoring to your business tool chest.

Buy a Small Business in the United States

If you are looking for a business opportunity, the Small Business Administration (SBA) has an excellent website, including a search option for small businesses for sale in the United States. They also have financial options for those who are looking for a business opportunity to consider.

Small businesses consistently employ fifty percent of the workforce in the United States. Fifty-three percent of all small businesses are home-based, while three percent are franchises. You can always find a business opportunity that has to do with franchises. Franchises are a worthwhile consideration, simply because in most cases, the name and products are well known. If you take advantage of this type of business opportunity and buy a successful franchise, you usually don't have to worry about it folding in the first year. Franchise.com has a list of franchises offered for sale in the United States, as well as in other countries. You can look at a list of franchises and decide on the one you are interested in, and then learn more about it. The website also lists the franchise fees and investment required.

According to the SBA, there were 24.7 million small businesses in the United States in 2004, the last year for which figures are available. 580,000 new small businesses opened in 2004 and 576,000 closed in the same year. The competition for any small business to succeed is ferocious, but with more than 24 million in existence, it's clear that they do succeed.

If you are going to be working in the business yourself, it's important that you buy a business that you truly care about. If however, this business opportunity is purely an investment for you, then certainly the best business deal financially would make sense. Some people who open new businesses work 14, 16 or even more hours per day until the business really gets off the ground. This would be almost impossible to do if you didn't like what you were doing.

Home business opportunities are as far and wide as your imagination. You can start your own business or buy an existing one. You could have an online business, or a more conventional store or office. If you select a business opportunity that will have you doing something that you love, the money will likely follow.

It's not difficult to find a business for sale. There are listings all over the Internet, as well as in almost every newspaper in the country. What matters, obviously, is finding the right business - one that will meet all of your needs, not just your financial ones. How much time do you have to devote to this business? Will this be your only business or one of many? Will you run it yourself or will you hire people to do that for you?

You can do, or you can hire others to do, some sophisticated market research to ensure that your product or service will sell in certain areas. Of course, if it's an online business opportunity, you can do plenty of your own research quite easily. You can look at what other websites are selling, whether it is a product or a service, and to a degree, you can see how popular they are.

If you need to get a loan for your business opportunity, you have several options. The SBA can direct you to several loan options, although they don't lend money themselves. The SBA is a great place to start anyway, simply because they do have so many resources. They have a lot of statistical information that you might find helpful in your market research, and they have several free publications to help you along in your small business journey.

Probably the most important thing you can do before buying a small business is your homework. Investigate more than one business before settling on a specific business opportunity, and above all, make sure it is something that you enjoy!

Buy a Small Business in the UK

Looking for a serious investment opportunity? You may want to consider buying a small business in the United Kingdom. There are several ways to turn a good profit in small business, but there are some important things to keep in mind if you are looking for an investment opportunity, especially if you are an investor from the United States, Canada, and elsewhere.

Any investment opportunity naturally comes with some risk. Foreign investors will need to calculate an additional variable when figuring up the possible amount of profit margin, loss ,and potential for both, as well as the exchange rate. How well is your currency doing against the British Pound? Be sure to include some "wiggle room" in your budgeting for fluctuations in the exchange rate.

For those already living in the UK, concerns such as taxation and local regulation are familiar topics. To those in overseas locations, it's important to look up the laws of the land pertaining to your type of business, the taxes for which you will be liable, and how to properly account for them. This may seem elementary to those with experience in putting money into an overseas investment opportunity, but for the first-time investor in a UK small business, there are many laws and policies that might surprise you. The key is to do your homework, get the advice of a good UK legal expert, and be prepared for a new and different way of doing business.

If you want to buy a small business in the UK, it's good to do a bit of research into the type of business you want to use as an investment opportunity. Are there ways that you can expand the business onto the Internet? Can the Internet be a help to you in increasing sales, market visibility, or media awareness? All of these factors are important to keep in mind. The most successful small businesses are the ones whose owners know how to take advantage of the Internet, while still meeting local needs and demands with speed and precision. It's not so different than doing business anywhere else in the Western world. It's important to understand how the buyers in your area of the UK respond to and utilize the Internet when it comes to commerce.

You'll also want to give your competing businesses a good hard look to see how they are using the Internet. Are you thinking of investing in an already crowded market? If so, you'll need some fresh ideas to give your version of the business a new approach so that you can set it apart from the competition.

A UK investment opportunity in small business may bring some unexpected surprises if you are considering investing in a "rising star" business. For example, twenty years ago, nobody had ever heard of a "cyber cafй". Today, cities are full of places that offer Internet services, games, coffee, and more for a price. This concept has become a very important part of many communities. Those who took the initial risk a few years ago, putting money in what they saw as a good investment opportunity, are reaping their rewards today.

Those who buy a small business in the UK often find that the investment opportunity is well worth the risks. With some research, a bit of financial planning, and the expert advice of a UK legal advisor, you can turn a potential opportunity into a major success. If you are living in America, Canada, or elsewhere, you owe it to yourself to pay a visit to the United Kingdom to see for yourself just what kinds of investment opportunities await you there.

Business Tools to Help You Run a Successful Business

When setting up a business, even the best prepared among us will struggle to do everything and remember everything. It is very unlikely that we will understand all of the financial and legal ramifications of a new business, especially when we need to concentrate on getting that elusive first sale or completing the first contract. It isn't always feasible to employ an accountant and a solicitor as well as a secretary, a salesperson and any other workers needed in the daily running of the business. So, we need to be able to diversify when setting up a new business and the best piece of advice anyone can give you to help is to make the most of the widely available business tools on the market.

Financial Documents and Tools

An accountant is a very expensive commodity that many new businesses can afford full-time. It is down to us to undertake as much of the financial side of things as possible; a daunting task indeed. There is help at hand in the form of business tools.

Spreadsheets have become immensely powerful and can do much of the financial work that any business needs, even invoicing. The Internet is awash with free standard documents for almost any occasions; if you aren't proficient at doing this yourself, you can find balance sheets, daily cash sheets and almost anything you could need.

The Legal Minefield

Mention legal documents to a new business owner and most will curse you. Again, paying for a lawyer to create all your contracts and other legal documents is a cost that new businesses may not be able to afford. Look at other contracts, get ideas off the internet and take a look at the standard contract and terms and conditions guidelines and when you're ready, book a session with an affordable attorney and let them look over everything. This way you will only pay once and get all the information you need for an affordable price.

It is important that you get any legal documents checked at least once. A poorly written contract can cost you a lot more than the lawyer's fees.

Human Resources

Human Resources, or personnel as it was once known, will become very important when you start to employ staff. There are a lot of rules and regulations to abide by as well as a lot of extra information to store that is both important and
confidential.

You can get time and attendance software, standard contracts, standard terms and conditions and software to look after your payroll details.

These are just a few tools available to new business owners. To do a job right requires the right tools. It is better to spend time researching your options first to find the right tools, than to get yourself into a real bind attempting to do the job with the wrong (or no) tools. You will find that the time it takes to get the right tools will pay off time and time again.

Business Strategy – Year End Considerations

As we enter the final weeks of 2005, you are undoubtedly hunting for gifts. While these are obvious year end considerations, you should also be reviewing your business strategy for 2006.

Business Strategy – 2005

Whether your fiscal year ends in December or doesn't, the end of the month is a good time to take stock of how things went in 2005. While the old saying is "time flies", it is particularly true for businesses. Business owners tend to be fixated on two to three month time periods. As a result, they can fail to see developments over longer periods of time.

After you've taken care of all your holiday gift purchases, you should have some down time in the last two weeks of the month. Business tends to slow down as people deal with the holidays, travel to see family and so on. This is the perfect time to go back and consider the business year. Specifically, you should focus on where your business was in January 2005. What were your goals at that time? Did you meet them during the year? If not, why? You will almost always be surprised when you realize how the business developed over the last year. This global view can give you a better perspective and evaluation of how things are going.

Business Strategy – 2006

After contemplating 2005, you should give consideration to what you want to accomplish and where you want to be by the end of 2006. Ask yourself the following:

1. What is a reasonable revenue increase for 2006 compared to 2005?

2. Are their products or services you should pursue?

3. Are their products or services you should drop?

4. If a strategy is underperforming, does it make objective sense to continue pursuing it or cut your losses?

5. What are your biggest frustrations and how can you deal with them?

6. Who are your most valued employees and have you taken a moment to thank them?

7. Who are your least valued employees and what should you do about it?

8. Which vendors or suppliers do great work for you and which don't?

Many other questions will run through your mind. There are no wrong ones. What is important, however, is you write the goals and thoughts down and keep them somewhere private. Next December, you should pull them out and see how things are going.

Business Selling Process (Simple)

Business Selling Process (Simple)

1. Determining the fair market value of the business
2. Set Preparing all books and records for prospective buyers
3. Putting the business on the market
4. Dealing with the potential buyer
5. Recieving an offer
6. Negociation - Price, Terms, and Condition
7. Accepting an offer
8. Provide all necessary books and records to the buyer
9. Work with the buyer to remove all contingencies of the contract
10. Signing the closing statement (1~3 days before the closing date at the escrow)
11. The night before the closing date
12. The closing date

Business Phone Blues

I work for a specialty after market auto parts retailer. We have no showroom, so around twenty percent of our business comes from the Internet while eighty percent comes from the telephone. We send out catalogs to those who request them or anyone who has placed an order in the last year. We also advertise in the back of automotive magazines. Needless to say, telephone sales are truly the lifeblood of our business. As of late, however, I've been wishing that weren't the case.

My company's business phone system has what I would call, the absolute most annoying hold message ever produced. My boss, the owner of the company, is a really nice guy. Unfortunately, he is a really nice guy with a very pronounced speech impediment. One day he decided that instead of the traditional hold music, he would play a repeating digital loop of him announcing our weekly specials. We are a very busy company. In fact, most days find our sales reps on the phone from the time we get in until the time we leave. As you might guess, with such a high volume of calls, many people are left on hold.

When our customers finally reach a sales rep, I would estimate that about thirty to forty percent of them do an impersonation of my boss... no kidding. The other sixty or seventy percent usually compliment us on the "funny voice" doing our ads. I've had a few who were offended by it, thinking we were trying to make fun of those with speech impediments. The thing is, almost everybody has something to say about the hold ads. I even had one customer complete an extensive order while doing his version of "the voice". Since our boss is a really great guy, my coworkers and I are less than amused on one hand, yet highly entertained on the other. My only problem is that while most of my colleagues are spread out over a huge office, my cubical is right next to the boss'. I have to keep a straight face during some fairly good impressions.

I miss the hold music.

Business Financing Guide (Simple)

This business financing guide shows the items that you will need to prepare if you are planning to get loan from financial institution when you buy  busimarket.com business for sale . Getting financing can be easier with knowledge about the financing and with complete preparation of documents and statements in process of buying  busimarket.com business for sale .

Step 1. Find a Business for sale at BusiMarket.com site for businesses for sale and commercial property for sale on the market. As soon as a property is found, make any necessary contacts to sellers.

Step 2. Get Purchase and Sale AgreementGet the sale agreement from Brokers, attorneys, or Escrow companies.

Step 3. Find a LenderFind a Loan Officer that will take care of your financing needs.

Step 4. Prepare Required Documents  - Purchase and Sale Agreement for the Business or Commercial Property,
  - Personal Financial Statement provided by the lender,
  - Income tax returns from both buyer and seller from the last three years
  - an up-to-date income statement,
  - Resume from the buyer,
  - Lease Agreement(if applies),
  - Assignment for Lease (if applies),
 
Step 5. Finally, wait for the loan approval (usually takes 2-4 weeks)

Since the financing process can be different on type of business, location, and buyer's situation. The information above is for information only and BusiMarket.com does not guarantee accuracy of information.

Business Cost Savings Through Safety

Business Cost Savings Through Safety

Setting a health and safety program in place will reduce costs. Having a program will reduce accidents and will lead to lower company worker's comp premiums; further business insurance companies prefer their customers to have health and safety programs. These insurance companies might even discount the premium if a program can be proved to exist. The average cost of an accident is $68,000. Direct costs in accidents such as worker's comp and fines levied can close a business. Indirect costs such as low morale of employees, legal fees, and retraining can be as costly if not more.

A working program will:
    1) Improve employee morale – Shows care in their well being
    2) Reduce revenue loses – Fewer accidents keeps all employees at work
    3) Give a boost to the customer – Makes sure business is operating     optimally


Small businesses that have a voluntary health and safety program in place have fifty percent less accidents and reported insurance claims than that of their counterparts according to OHSA stats. Most small businesses fall below the legal requirements for having a formal health and safety program in place due to number of employees on staff. Sixty eight percent of reported accidents are in the service industry which shows even businesses such as retail establishments are not free of accidents.


A health and safety program can be started by writing a health and safety policy; this is simply values that a company wishes to convey in its work processes. Secondly, is how communication between all employees and owners will function. And lastly, put procedures in place to ensure safe practices.

To find unseen hazards and unsafe practices, an audit needs to take place. Take a hard look at the workplace and record all factors that may lead to injury. These hazards might be dangerous chemicals or as simple as a letter opener. Identifying these hazards will lead to procedures to controlling them. Controls such as "Don't run with scissors in your hands" are effective. Write all procedures in a manual.

Implementing these health and safety procedures will be done with behavioral change. Some programs become weak and non effective because of:
1)    No definition of safety practices – No written processes
2)    No teamwork – Safety is communication from the top to bottom and vice versa. A well written plan will describe what roles everyone plays in safety policies.
3)    No effective goals – The "accident free days" poster will come as a result of sound safety processes.
4)    Wrong incentives – Money as a reward does not work well. Health and safety should be fun and worth employees effort. The right incentive plan can be cost effective and have obtainable goals. Incentive plans can include movie passes or simply "free coffee on the boss." The insurance industry reports for a dollar spent on health and safety yields four to six dollars in savings.

Once all of the hard work of developing and implementing the health and safety program is done, set aside some time each month to review the workplace. Record what is found; this is a good practice to see dangerous trends that might occur such as a fire exit constantly being blocked. On the quarters of the year post a meeting with employees. These meetings are a great way to get vital feed-back from employees and keep them involved. At least once a year, do an audit to make sure your health and safety program is current with present business operations.

Business Buying Guide - Detail

Business Buying Process

First, You have to determining your investment. Usually minimum down payment made by the buyer is 30% of the purchase price. For example, if the business purchase price is $100,000 and loan amount is $70,000 (70%), then the buyer's down payment needs to be $30,000 (30%). Other possible expenses are inventories, supplies, escrow fee, license and permit fees, franchise transfer fee (if applies), etc.

And then you have to set criteria of desired business. Which includes location of business, type of business, price range of business, desired income of business.

After you decide your investment amount and criteria of business, you will need to find a right business that fit your needs. You can search business through online business listing service site like www.BusiMarket.com  busimarket.com Business For Sale , local newspapers, or through local business brokers or real estate agents.

If you find a business that you want to purchase, you will need to evaluate the business through current owner's income information and your projected income for short term and long term.
And then you need to make decision to purchase business or not. If the business is right for you, you need to write a very descriptive and detailed contract (Purchase and Sale Agreement).

When you are writing an offer, you have to make sure the contract includes the followings: Your offering price, Initial deposit amount, financing terms, closing date.  Other terms and conditions that can be added to the contract is buyer's loan approval, lease and lease approval from landlord, buyer to obtain all necessary licenses and permits, franchisor's approval of ownership transfer, the buyer's Satisfaction of books and records, closing cost allocation, buyer training session, business equipment and fixtures in good working condition, inventories and supplies amount, seller's agreement not to compete, etc.

After you finish writing an offer, you need to present your offer to seller. Negotiate the price, terms, and conditions and settle with final price and terms and condition.

Now you will need to allocate the purchase price of business that you are buying. After you done purchase price allocation, you will need to apply for loan, license and permits.

and then you will need to obtain a lease or sublease. You will need to make sure you obtain the lease or get an approval of lease assignment before close of escrow no matter what happened.

And then on or the day before the closing date, you will need to review the equipment list that is provided at the time of the acceptance of the Purchase and Sale agreement and buy inventories and supplies. And then you can do the closing on the closing date.

Business Basics for Catalog Retailers

Catalog retail is a world all it's own. Many considerations that other retailers don't have to deal with are of utmost importance to a catalog retailer. To name a few, the ordering process, warehousing and shipping must be streamlined for maximum efficiency. Maintaining a top notch inventory control and receiving department is also very crucial to business success. Above all, however, a catalog retailer must have a quality business phone system.

Considering the fact that the majority of customers will reach you over the phone, it is paramount to be able to not only handle call volume during peak times, but also to provide your customers service representatives with the features they need to do their job well. Business phone systems should be capable of not only putting your customers in touch with you, but also offer routing flexibility, voicemail and forwarding options for the administrative side of your company. Often, the difference maker for catalog retailers is not the products they sell, but the service behind those products. People who want to buy will have questions regarding an item that a simple picture and brief description will not answer. Most companies have service reps who take orders and product specialists who are familiar with the inventory.

It is essential for the product specialists to have access to a phone system that will accurately and easily allow them to receive and transfer calls between departments. After the initial contact by the sales representatives, the most common transfer of waiting customers will be to product specialists and hopefully back to the sales reps. A customer who is dropped accidentally during this transfer is likely to not call back. Additionally, customers who are made to hold for extended periods of time without an automated message thanking them for their patience are a primary example of lost revenue that could be curtailed by the proper business phone system. All in all, a well thought out business phone system is an integral necessity for any company, but it is especially important for catalog retailers.

Boomers Have Big Hopes For Small Businesses

As they approach retirement age, many baby boomers are considering alternatives to retirement.

A growing number of them plan to forgo golf, travel and other pursuits to continue working through what have long been considered the retirement years. According to a report by AARP, 80 percent of those born from 1946 to 1964 plan to work after retirement.

Some are taking this time of their lives to start a small business. In fact, AARP also reported that 40 percent of U.S. entrepreneurs are over 50.

For those thinking to take advantage of this trend, Paul and Sarah Edwards, self-employment lifestyle experts and authors of "The Best Home Businesses for People 50+," offer some advice. "Starting a small business out of the home at any age can be very challenging but rewarding," says Edwards. "However, Sarah and I have developed a few tips for our fellow boomers to keep in mind when embarking on this exciting new phase of their life."

• Do it Your Way. A home- based career allows you to decide everything from how much time you want to dedicate to your business to where you want to be located.

• No More Office. Many experts believe that taking a business online is the easiest way to accomplish your goal of working while maintaining freedom. If your small business is located online, you have low overhead costs and can be found by customers around the globe without regard to where you are located.

• Have an Online Presence. Virtually every business can be helped with a presence on the Web. This is easier than it seems if you work with a reputable Web solutions partner.

For example, Network Solutions focuses on small businesses by offering products and services such as Do-It-For-Me Web sites (DIFM), easy-to-use templates and 24/7 customer consultants. Such services provide you with a Web partner that will enhance your business.

• Do What You Enjoy. "Becoming your own boss is an opportunity to do something you want to do," says Sarah Edwards. "For example, you can spend as much time as you want on a hobby because you're making money in the process, or helping other people or working with the kind of customers you choose to work with."

Blend Your Strengths with Small Business Needs

If you are looking to start a small business of your own, there is a proven process that is necessary to start off with. Many creative people have great business ideas, but their approach to planning is ineffective and eventually flops. First and foremost, you have to find a market that is a good size. Now what does this mean exactly? Finding a niche market that is a reasonable size entails pinpointing one that is big enough to make a profit but small enough for the resources of a small business and one that does not compete with large corporations.

Two main mistakes that entrepreneurs make in finding small markets are targeting a market that is too broad and targeting a niche that is already heavily exploited. What you decide to sell must connect product to target audience or you will not be successful.

To start off with, choose your own unique area of expertise. What are you good at? What do you have experience in? Use your education, your skills and the people you know who could help you transform your idea into reality. If you have many areas of interest and are not sure which one would be the most profitable, a little more research will be needed. Consider how it will be possible to convert your education and skills into money-making opportunities. Research your surrounding marketplace to see what is needed in your area.

Now if you are trying to find small markets online, be forewarned that this can be tedious and time-consuming. You will first have to think of a list of possible target audiences, then take your first idea and research an exhaustive list of keywords and keyword phrases that people in that target audience are using for information on their desired product. Next, one must research all keywords and phrases for relevancy and then study which keywords on your list might lead to other niches that will need future researching. Then, you need to compare all your keywords to web pages to evaluate the present competition. You will use all your information to narrow down your list to keywords and phrases that have the most online traffic and those that are the least exploited. If your small market does not appear to be profitable, you must start the entire research process over. If you do find one that seems to be a money maker, you then must focus on finding ideas to profit from.

Best Small Business Idea - Overwhelm - Get It Out of Your Head

If you are like most businesses owners, you've experienced overwhelm in your business at one time or another. Maybe you experience it regularly and for good reason. Hundreds of things are pulling at you at one time. You've got marketing going, production to oversee, calls to return, employees that need your advice. It's never ending right? How do you possibly handle it all?

Most of the small business owners that I talk to keep almost all of these things in their head. I ask them where their business plan is. It's in their head. I ask where their employee training manual is. It's in their head. About the only thing that's written down is their calendar of appointments. Even a lot of their to-dos are in their head. Here's one simple and powerful way to get out of overwhelm—write it all down.

Your overwhelm is in your head because most of how you run your business is in your head. Start writing it down and you will start having less overwhelm. Start taking a little time each day to document your business processes. Make a list today of the processes that you haven't recorded. Cover marketing, production, training, accounting, etc.

Then take one of these areas and document it in detail this week. Each week, for the next few weeks document another area. Within a fairly short period of time, you should have at least the basics of marketing procedures, production procedures, client follow up procedures, and employee training procedures in place. In other words, you've now got business processes. Processes that you can rely on. Processes you don't have to think about. Processes that you will use to grow your business without all that overwhelm now that it's not all in your head.

Best Small Business Idea -- It's All About You

Getting More Focused -- It's All About You

Jeanna Pool from Catalyst Creative writes a great ezine on marketing each month. In January she shared 5 Great Marketing Tips for 2006. Number 1 was "Stop Focusing on You". She declares 2006 the year of the client and exhorts you to focus totally on your clients and their needs. I think she's right on. And I think she's completely wrong. Why right and wrong?

Because if you've been in business for awhile and have great products and great services and aren't getting the results you want, you may be too focused on your clients and not focused enough on yourself. Last week, I encouraged your to revisit your vision of your business and ask yourself why you started your business in the first place. Now I want you to focus even more on what you want. What exactly do you want out of your business? Do you want more money? If so, how much? Write down a number. Do you want more flexible hours? If so, write out exactly the schedule you'd like. Do you want to change the world? If so, write out specifically how that would look.

Why all this focus on you? Because if you aren't absolutely clear on what you want, how are you going to know if you are successful? How are you going help your clients if you aren't taking care of yourself as well. Maybe you need to be making $150,000 a year to provide your family with the life that you wanted. You want to send your kids to college. You want to retire while you are still in active and in good health. Or maybe you want to just make an extra $20,000 a year working part-time while you take care of your children until they are in school. Or perhaps your goal is to make a million dollars a year and live a really incredible life. Defining this is very important. Why?

Because what you want will shape your business. It will determine who your customers are and how you will help them. If you want $5,000,000 in sales, your products and methods are going to be a whole lot different than if you want $50,000 in sales. If you want to work only afternoons, that is going to shape your business as well. If you want to sell your business and retire in five years, that's going to affect your decisions as well. So right now, get out a paper and pen and get ready to write.

Did you get your pen and paper out? Answer the question, "What do I want out of my business?"  Write in as much detail exactly what you want your business to give you. Be as specific as possible. Write as much as you can. Think income, lifestyle, schedule, partners, travel, location, employees. What exactly do you want? Throughout the week, add to this and revise it. Compare where you are right now to what you really want. How large is the gap? Next week, I'll help you create a plan to narrow the gap with: Why Business Plans Don't Work -- How to Create an Effective Action Plan.

Best Small Business Idea -- Get Focused And Get Going

I used to give a talk titled, "10 Ways to Overcome Overwhelm in Business and In Life". It was an excellent resource for getting into action and taking charge of your business. If you'd like a copy, just email me and I'll send it to you. After I'd given this talk for awhile, I realized that getting out of overwhelm was even simpler. You don't need 10 ideas. That's overwhelming in itself. You just need one essential key. If you can master this one key, you can pretty much get whatever you want out of your business and your life. Here it is. Don't blink or you'll miss it. Focus.

That's right, focus. When you are entirely focused on what you are doing in the moment, you don't have any attention left for being in overwhelm. Focus and overwhelm are opposites. Think about it. You are overwhelmed because you are thinking about all the things you've got to get done today, tomorrow, and the day after. You aren't solidly focused in the present moment doing what's in front of you. But when you are stuck in overwhelm, it's really hard to get focused. So what can you do?

It's actually very simple. Get back to basics. Go back to your core values, your mission statement, your vision. Stop right now and think about the vision you had for your business when you first started it. What did you want to accomplish? Why did you want to do it? Were you looking for freedom? Did you have a better way of helping people? Completely let yourself be absorbed in the dream you had. Feel how it was when you started. Now you are focused. Take this vision and write it down again. Go into detail about what you really want to do with your business.

Now from this focused state, get into action. It should be much more clear to you now what the most important tasks are. Focus your energy on those and get going. Any time you start feeling overwhelmed, stop and go back to your dream, your vision. Ask yourself why you are doing what you are doing. Really feel it and then start again. I guarantee you this will get you focused and get you out of overwhelm. Now you can get what you really wanted out of your business.

A small Small Business summary

Small business is a term that is used day-to-day. That is because in the past decade the rise of small business has been larger than in any other decade prior. This is largely due to the increasing number of services that are available to small business owners, to enable them to keep their business running.

There really isn't any guidelines for when the term small business is used, however it is simply defined as a business which has a small number of employees. How few employees is debatable, and the definition of when a business changes from a small business to a larger corporation varies both by country and industry. This number is generally less then 100 employees.

As mentioned before small businesses due to their nature, are in most times sole proprietorships, partnerships, or privately owned. Common in may countries, small businesses, are most oftenly related to: accountants, restaurants, guest houses, photographers, small shops, hairdressers, tradesmen, solicitors, lawyers, small-scale manufacturing etc.

Small businesses in often cases are located in private homes, for two main reasons. The first is because it is economical and in most cases convenient. The second reason is that there are several benifits with tax,etc for having your business in your home.

Running a small business is an exciting venture, and a great way to introduce yourself into the business world, and to gain business sense. If you are interested in starting your own small business, I would recommend having a talk with a local lawyer or accountant, who will be able to answer questions that are specific to your local area. Good luck with your new venture!

Awareness And Mastery – Two Essential Keys To A Successful Small Business

At the heart of it, mastery is practice. Mastery is staying on the path."
~ George Leonard
US pioneer in human potential

We often hear managers complaining that their employees aren't productive, don't listen and just can't consistently get the job done. As a youth sports coach, I hear coaches with similar complaints—the kids don't listen, don't know where to go and don't try very hard. I can't relate. The boys on my team are usually focused, do what I ask of them, and work hard. As a business owner, my employees are focused, do what I ask of them and work hard. What am I doing that is different from the rest? And what can this teach you about running a successful small business?

As a coach, I make my boys' jobs very simple. I ask only two things of them. I ask them to master one shot and I ask them to be aware of what is going on around them. Of course we work on defensive and offensive strategy, but both of those revolve around the two keys that I gave them for success—awareness and mastery.

I teach awareness by constantly asking them to be aware of where the ball is and at the same time to be aware of their teammates are and where their opponents are. I teach them how to see the ball and their opponent when he doesn't have the ball. Sounds simple, but for ten year olds this is work.

I teach mastery by assigning homework to each boy. The second week of practice, they have to show me a spot on the court from which they can make a shot every time. I don't care if it is from just two feet under the basket. I want them to know they can make it every single time. As the season progresses, they may gradually move their spot further and further out, but I still ask that they be able to make their shot every time unguarded in practice.

These two simple concepts have a tremendous effect on the boys during their games. They have incredible confidence in their ability to make shots because they "know" that they will always make it. I don't need to yell at them like other coaches about where they should be on the court because they have developed awareness of what they are doing and seeing. Now let's see how you can use this in your successful small business.

As a business owner, I put these two key principles to work in training my employees. From the first day on the job, I work with them to be aware of what tasks are needed, what I expect of them, how I want customers treated, etc. And I ask them to master tasks and customer scripts. Once they are mastered, I open it up for them to adlib just like with my players. When correction is needed, it is usually in one of these two areas. They are either unaware of what is needed or they haven't mastered the task at hand.

Not only does following these two concepts make it easy for me to get results with my players and employees, it also brings incredible results. My first team lost only one game all season and my employees rarely lose a sale. My businesses and products win awards earned by my employees. And, as a bonus, everyone enjoys themselves with this simple structure. I knew I was doing it right when the father of one of my boys told me that his boy enjoyed practice so much that he chose to come to practice instead of going to see our professional basketball team play one night. And I know it works with my employees because they show up on time happy, focused and ready to work. Remember, awareness and mastery are two essential keys to a successful small business.

Awareness and Mastery -Two Essential Keys To a Successful Small Business

At the heart of it, mastery is practice. Mastery is staying on the path."
~ George Leonard
US pioneer in human potential


We often hear managers complaining that their employees aren't productive, don't listen and just can't consistently get the job done. As a youth sports coach, I hear coaches with similar complaints—the kids don't listen, don't know where to go and don't try very hard. I can't relate. The boys on my team are usually focused, do what I ask of them, and work hard. As a business owner, my employees are focused, do what I ask of them and work hard. What am I doing that is different from the rest? And what can this teach you about running a successful small business?

As a coach, I make my boys' jobs very simple. I ask only two things of them. I ask them to master one shot and I ask them to be aware of what is going on around them. Of course we work on defensive and offensive strategy, but both of those revolve around the two keys that I gave them for success—awareness and mastery.

I teach awareness by constantly asking them to be aware of where the ball is and at the same time to be aware of their teammates are and where their opponents are. I teach them how to see the ball and their opponent when he doesn't have the ball. Sounds simple, but for ten year olds this is work.

I teach mastery by assigning homework to each boy. The second week of practice, they have to show me a spot on the court from which they can make a shot every time. I don't care if it is from just two feet under the basket. I want them to know they can make it every single time. As the season progresses, they may gradually move their spot further and further out, but I still ask that they be able to make their shot every time unguarded in practice.

These two simple concepts have a tremendous effect on the boys during their games. They have incredible confidence in their ability to make shots because they "know" that they will always make it. I don't need to yell at them like other coaches about where they should be on the court because they have developed awareness of what they are doing and seeing. Now let's see how you can use this in your successful small business.

As a business owner, I put these two key principles to work in training my employees. From the first day on the job, I work with them to be aware of what tasks are needed, what I expect of them, how I want customers treated, etc. And I ask them to master tasks and customer scripts. Once they are mastered, I open it up for them to adlib just like with my players. When correction is needed, it is usually in one of these two areas. They are either unaware of what is needed or they haven't mastered the task at hand.

Not only does following these two concepts make it easy for me to get results with my players and employees, it also brings incredible results. My first team lost only one game all season and my employees rarely lose a sale. My businesses and products win awards earned by my employees. And, as a bonus, everyone enjoys themselves with this simple structure. I knew I was doing it right when the father of one of my boys told me that his boy enjoyed practice so much that he chose to come to practice instead of going to see our professional basketball team play one night. And I know it works with my employees because they show up on time happy, focused and ready to work. Remember, awareness and mastery are two essential keys to a successful small business.