bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

How to Overcome Small Business Frustrations

Running a small business is never easy. Many an entrepreneur has succumbed to various frustrations that arise while operating their business.

Here are some tips on how to prevent this from happening to you.

• Delegate. Instead of trying to solve every small or large problem by yourself, delegate some work to your employees so that you can concentrate on solving fewer problems.
  
  You will also find out if some of your employees have good leadership or problem-solving qualities.

• Keep Problems Small. Instead of trying to brush problems under the carpet, try to solve them while they are manageable.
  
  It will be less expensive and painful to attend to them immediately than to forget about them and get a rude shock in the future.

• Take A Break. However hard you might try, you may still find that frustrations will creep into your daily life and bog you down.
  
  Try to take a small break from your business and spend some quality time with your family and friends in order to reduce your stress and recharge.

• Build A Good Business Network. Maintain contacts with other businesses and hire efficient tax consultants and accountants that can solve these problems in a professional manner.
  
  Sharing your frustrations with your business friends can help you find a quick solution to a particular problem if they have been in a similar situation in the past.

• Be Ready. Accept the fact that small businesses get bombarded with small and large problems and that you have to be ready to face them.
  
  Once you are ready to solve any problem that comes your way, you will not be caught off-guard and will be better equipped to handle any frustrations that might crop up from time to time.

By sharing, delegating and solving problems while they are still small, you can easily overcome your frustrations and ensure that they do not hamper the smooth running of your business.

How to Obtain Small Business Grants

The U.S. Government has recently recognized the positive role that small businesses play in increasing economic growth.

If your small business needs funding to start up or to expand, then you could try to obtain a small business grant. A grant can help you to turn your vision into reality.

Who Offers These Grants?

While the federal government generally does not give out grants except to small scientific ventures or non-profit organizations, there are various state development agencies that provide such grants to entrepreneurs and small businesses in order to start or expand.

You will need to check if your state has such agencies in place. You can check your local government website for details on agencies that offer small business grants.

What Role Does The Small Business Administration [SBA] Play?

While the SBA does not provide business grants, it does offer loans at very attractive rates of interest.

While the SBA itself does not make the loan, it acts as a guarantor for loans taken out from banks or lenders that it is associated with.

The SBA also offers invaluable advice in starting, expanding and even selling your small business.

Who Can Qualify For A Business Grant?

If you are over 18 years old and need money to start or expand a business, then you can qualify for a small business grant.

Grants do not require any collateral, deposits or credit checks and you can get a business grant from $500 to $50,000 from state agencies.

If your state has an agency that provides small business grants, then you should prepare a professional proposal and submit it to them.

If you qualify for a business grant, then this could be your best opportunity to start or expand your small business.

Financing Tips For Small Businesses

For small businesses, especially start-ups, it is very difficult to qualify for business loans since traditional lenders such as banks require adequate security.

Here are some alternative means of arranging financing for your new small business.

Venture Capitalists

These financiers will provide funding once they are convinced that your business has strong potential.

The downside is that you might have to include them as partners in your business - and this could pose a problem if disputes arise.

Business-To-Business Finance

These are companies that are run by financial and marketing experts. They will not only offer you money for your business, but will also help you in marketing your business to a larger audience.

They can also help you in increasing your online presence by helping you to start and maintain a marketing campaign over the Internet.

Angel Investors

These are normally wealthy entrepreneurs who wish to help fledgling companies stand on their feet.

They provide financing quickly, and their interest rates are also lower compared to venture capitalists.

Family & Friends

You can put your business proposal in front of your family and friends with the hope of arranging this form of informal financing.

However, make sure that you pay off these loans on time, as any delay could have serious social consequences.

Small Business Grants

These grants are currently not given by the government except in some states. However, small business loans are given by the Small Business Administration [SBA] at reasonable interest rates.

What to Look For in a Business Tax Attorney

There is no point in running your small business with the IRS hot on your tail on a regular basis. You need to employ a business tax attorney that will not only file your taxes on time and every time, but can also help to save you money at the end of each year.

Here are some things to look for in a business tax attorney.

Look at the Attorney’s Qualifications

Your attorney should have received specific training in tax law. He or she should have current updates in mind when filing your taxes or advising you on legal methods to save money.

Experience Matters

Your tax attorney should have the requisite experience in handling tax matters for similar-sized businesses.

He or she should not be too busy in handling small clients, and should not leave you at the mercy of an inexperienced assistant.

Check Out Those References

Ask your prospective tax attorney for references - and make it a point to cross-check them. Ask those references if they are happy with the attorney’s level of service.

Cross-check companies that are similar in size and nature to your own in order to make a reliable assessment.

Your Attorney Must Be Efficient

Your tax attorney should be able to work with your best interests in mind. He or she should be very efficient in filing your tax returns and in solving any other tax-related problems.

Your attorney should become familiar with your accounting history in short order, since this will save a lot of your time as well as theirs.

Make sure that any fees you pay to the attorney also cover assisting you in case of an audit.

Tips for Competing in a Cost-Conscious Market

Due to intense competition and a down economy, businesses need to price their products very aggressively in order to win over the hearts - and wallets - of their customers.

While lowering prices is possible only to a certain extent, there are various other methods to attract new clients as well as earn a decent profit.

Here are some tips for competing successfully in a cost-conscious market.

• Emphasize Your Extraordinary Service. You will need to provide extraordinary service along with your products. But good service is only good if people know about it.
  
  Thus, you should implement an advertising campaign that concentrates on your high level of service to impress your target audience.
  
  Clients will not mind paying a little more if they are assured of better after-sales service.

• Build A Better Mousetrap. Instead of offering average products at rock bottom prices, try to offer your clients better quality products at slightly higher prices.
  
  Once you convince your clients of your product’s superior quality and longer life span, it will become quite easy to make a sale.

• Offer Guarantees. A guarantee will offer your clients peace of mind, especially in a tight economy.
  
  Their trust level will increase if you can offer them products with extended guarantee periods.

• Offer Free Services. Instead of lowering prices, you could offer free shipping or free servicing within a particular time frame. If you do this, your clients will be reassured that you do not plan to bolt away after selling them the product.
  
  Your response time to any inquiry, order or after-sales problem should be much faster than the rest of your industry if you want to stand out from the crowd.

By using the above tips, you can carve out a niche where price pressures will be much less; and your competitors will find it difficult to emulate your business’ strategies.

Lowering your prices will only work in the short run - but by following these tips, you will stay financially healthy over time.

Points To Consider Before Expanding Your Product Line

Once your business has managed to find its footing, then you may find it necessary to expand your product line in order to stay ahead of the competition.

While the thought is logical for the growth of your business, here are some points to consider before expanding your product line.

Keep It Related To Your Current Line of Business

This is especially true if you plan to introduce the new product in your current business premises.

If you introduce a new product just because you were lured by the high profit potential, then it could result in a lot of client confusion if the product is totally different from what your business currently offers.

Ensure That You Have the Necessary Infrastructure in Place

If your product requires a high level of technical knowledge, then ensure that you put the necessary infrastructure in place before introducing it.

Your business’ reputation depends not only on new products that you can introduce, but also how well you can take care of your clients if problems arise with that product.

Arrange the Required Financing

You should arrange for the additional money that might be needed to launch the product and financially support it for some time.

This will help you to properly establish the product until it is well-established in the marketplace.

Let Customers Know That You Have a New Product

You should make sure that your current and potential customers know that you have expanded your product line.

If you do not have a large marketing budget, at least print flyers or brochures to announce the new arrival.

Expansion is necessary for growth. By following the above steps, you will ensure that your new products get off to a smooth start and quickly establish themselves in the market.

How Good Etiquette Can Help Your Business

The difference between people who want to do business with you as opposed to people who have to do business with you could be determined by your business etiquette - or lack of it.

While the former will ensure that your business keeps growing, the latter will sink your business once your clients find a better business to deal with.

Here are some points on how good business etiquette can help your business grow.

Building Lasting Relationships

By talking politely and tactfully to your clients and employees, you will build a level of comfort and trust that will last for a long time.

Your clients will be very reluctant to do business with you if you are arrogant or too blunt in communicating with them. Likewise, your employees will not want to work for you.

Good Etiquette is Contagious

Once your employees observe that you are polite and sweet in handling clients, they will follow suit.

This will spread to your entire business, and your clients will appreciate the pleasant atmosphere that you have managed to create. As a result, they will keep coming back.

Reducing Stress

Pleasant and fun working conditions will ensure that the stress levels of everyone working for your small business will come down drastically.

This will lead to an improvement in the productivity levels of your employees and even yourself, resulting in increased sales and profits.

By following good business etiquette, you will not only have small business filled with enthusiastic and eager people, but will also get increased sales that will truly help your business.

How a Training Program Can Improve Employee Efficiency

Implementing an employee training program on a regular basis is necessary in order to remain up-to-date with the current trends of your industry – and also to improve your employees’ efficiency.

• A Training Program Can Help New Employees. A training program can help your new employees to settle in quickly, meet your other employees and understand certain business processes and procedures.
  
  Your new employees will get into a groove more quickly, and contribute to your business sooner.

• Raise Your Employees’ Knowledge. Your employees’ technical knowledge can be upgraded with a good training program, and they will be better equipped to deal with clients.
  
  By having a training program, you will help them solve problems on their own faster, and thus improve their efficiency.
  
  Your employee’s skill range will also improve and they will be able to tackle a wider variety of complex problems at a faster rate.

• Raise Employee Morale. Because they will be well-trained to do their jobs, they will experience a higher level of on-the-job success.
  
  This will raise their morale and inspire them to work even harder. Your employees will also learn their role in your business – and this will make them more responsible.

• A Training Program Encourages Bonding. A training program will enable your employees to find their strong and weak points, and help them bond together and work as a team.
  
  This will convert individual employees into a formidable force that will make them more efficient and result in improved business.

Implementing a training program is a must, especially if you have a small business. It will definitely improve your employees’ efficiency, reflecting positively on your business in the form of increased sales and quicker problem resolution.

Know the Cost Before Becoming the Boss

Just as grass always seems greener on the other side, the prospect of freedom and a high level of income will always lure employees to make the leap towards becoming an employer.

Here are some costs that you should calculate before you make that move to become the boss.

You Will Need To Invest Money to Start Your Business

You will need to put up some money before you can even start your business.

You will need to buy or rent your business premises, install the required equipment and even invest money to build up your inventory.

You Will Need To Take Care of All Expenses

Once you become an employer, then you will need to pay for all expenses related to your business.

This includes your employees’ salaries, electricity and other utility bills, insurance, and many more. There will also be some unexpected expenses - such as your computers going on the blink or your delivery van breaking down - which will need to be taken care of immediately.

All of this costs money – sometimes a lot of it.

You Will Need To Pay Various Taxes

Once you start your own business, there will be various taxes that need to be paid based on your income.

You will need to hire a certified accountant or a tax consultant to help you organize tax payments and year-end returns.

You Will Need To Hire and Fire Employees

You will need to hire employees for your business, train them and maybe even fire them if they are dishonest or incapable in performing their duties.

All this costs money and adds to your expenses.

No doubt about it – running a small business costs money. Being aware means being prepared when you finally make the transition.

How to Let an Employee Go With Grace

When you run a business, you may need to fire an employee at some time or the other, often at short notice.

This could be an emotionally taxing task for everyone involved, especially if you aren’t prepared. Here are some helpful tips to follow when you need to let an employee go.

Give Your Employees Sufficient Time

If possible, give the employee some time to improve their performance.

Inform them in advance that you are not happy with their performance and that they have a fixed time limit to prove themselves.

Be Clear On Your Needs

Explain in clear terms what you expect of them. Then, observe them to determine if they are willing or able to mold themselves according to your needs.

Have a Standby Employee Ready

If you have made up your mind to fire a particular employee, then have a substitute employee ready to take the dismissed employee’s place as soon as you let him or her go.

Make sure you don’t badmouth the employee in any way.

Get Your Paperwork in Place

You will need to ensure that any employee termination documents are compiled by and signed by the exiting employee.

You need to do this in order to safeguard yourself in case of any future legal trouble.

Be Compassionate

Don’t get personal while letting an employee go. Explain in a calm and composed manner the reason why you cannot let them stay on. Offer a severance package if you can.

Keep it brief and without any histrionics. Ensure that the employee leaves the business premises immediately. A preferable time to do this could be late in the evening or early in the morning.

Choose your words carefully - they could come back to haunt you if the employee is disgruntled and decides to go to court.

Firing an employee is never a pleasant task, but if you pay heed to these tips, then you will ensure that the entire process proceeds smoothly and ends swiftly – and that your business’ reputation remains intact.