One of the most common oversights why countless businesses fail
Anyone who has ever tried to set up their own business understands it’s an extremely hard challenge that they embark on. I am certain you’re familiar with the fact that over 50% of small businesses go out of business in the first year & that 95% go out of business within the first 5 years. However, that number doesn’t alter much each year. Let’s explore this.
Most businesses are launched because its owners have what they believe is a good concept. But successful business ventures remain so because those who have the vision also understand how to implement it, have a reliable business background and are not afraid to engage experts who also have a solid business experience.
Unfortunately, several awesome industry ideas fall short as their owners fail to understand the difficulties of running a new business and decline to seek timely assistance in areas that they may be weak in.
So many small business owners are exceedingly confident and often overestimate anticipated revenues and miscalculate what needs to be carried out in order to be successful.
One common mistake that new business owners make is to never “let go” of several jobs that they are plainly not skilled to undertake and they assume that they will save money by refusing to ask for assistance.
Don’t assume you would do it all.
It is okay-and even smart to ask for help – whether that purely means getting a second opinion, or entirely outsourcing a function or activity that isn’t one of your core skills or processes.
Form filling and piles and piles of paperwork is becoming essential in today’s business world. There are accounting and tax records to retain & sort; invoices to prepare and debts to collect; invoices to settle and so much more. Unsurprisingly, all you want to do is concentrate on why you began your business in the first place – doing what you enjoy most and being compensated well for it.
I know…all of this added effort is not your favourite aspect of running a business and may be be boring and tiresome. However you must appreciate that it has to be performed eventually.
You have two choices, you can bite the bullet and make sure you allot sufficient time to keep up with all of the ancillary paperwork, regulations, and accounting or you should hire professionals who make that their business to handle those mundane, however crucial, tasks for you.
Then you can focus on the bits that you do best. As a newbie, you’ll need to ensure you meet the obligations imposed on you by government tax departments, health and safety law, customer service and much more.
As you begin to reflect on how you run your company, you will probably come across new things about it. Varying how you view your company should shed new light and repeatedly provide you the help and answers you’ve been searching for.
You’ve already taken a huge plunge and began on the route to a totally new approach of carrying out business. Don’t end your quest now!
I challenge you to look closely at your company and employ the changes you need to see it succeed. Extend the boundaries and limites of your imagination and don’t be afraid to try something new.
4 Tips to Cut Your Next Tax Bill
You can cut your next tax bill if you are focused on certain key elements.
Was your last tax bill exorbitant? Now is the time to cut your next tax bill. Small business owners have had quite a rough financial year. Many will not return to the world of entrepreneurs next year because of the great losses they have undergone. Imagine how it would be if you were able to cut your next bill.
Here is some very valuable information that will help both you and your business to grow. Below are 4 usable tips which should enable you to cut your next tax bill.
1. Purchase business goods
The fact that you are in business for yourself means that you are responsible for acquiring your own business supplies. The items which you use in your company daily are items that can be written off on your taxes. It makes sense to get money back on your next tax returns while buying things that you need for your enterprise.
2. Use your car wisely to slash taxes
As a business owner you use your car to travel to meetings, company events, training sessions, and a number of other places. Keep a careful record of all mileage that you have accumulated each year. When it is time to do your taxes, simply give your accountant your mileage book and they will do the rest.
3. Employ your family
Another vital method to save money on your next tax bill is to hire your wife or children. Hiring family to cut the lawn outside your company or clean the office can result in having more money in your own bank account at the end of the year. Since they may be in a different tax bracket, this will help the entire family to reap the rewards that come when you slash taxes.
4. Pay yourself less
Many small business entrepreneurs love the idea of paying themselves. This is in sharp contrast to having to work for an actual company as their employee. You now work for yourself and pay your own salary. However, it is wise to pay yourself a smaller salary, because a smaller salary means paying a lower tax rate. The lower tax rate you pay could translate into more money in your own pocket come tax time.
If you implement these 4 tips, you may be able to lower your next tax bill by a large margin next year.
3 Tips For a New Start Up Business
There are some incredible tips for a new start up business that anyone can follow to ensure that their business does well.
Fortunately, there is no need to reinvent the business wheel. Simply implement the proven steps that other small business owners have already taken and you increase your chances to soar. This article will go over 3 simple tips for a new start up business that any newbie business owner can try immediately.
These 3 tips for a new start up business are just a few of the many ideas that will skyrocket your profits when properly utilized.
Network your way to profitability
People come in all shapes, sizes and colors, and all of them have the potential to be your customers. One area that many new small businesses often neglect is networking. It is not about what you know many times, but the actual people that you know. It is imperative that owners of small companies develop people skills, if they want to create lifetime relationships with their clientele.
Knowing where things are is a fantastic tip for a new start up business
Sometimes the simplest things can cause the most trouble. Knowing where the business items you need are located can save you a great deal of time, and all smart business owners realize that wasting time means wasting money. If you are naturally disorganized, you should consider hiring someone whose strength is organization. This can be your partner, a new hire or someone who is already on staff.
Always have an alternate plan
One final tip for a new start up business should be to always have an alternate plan of action. Since everything does not always turn out the way that we would hope, small business entrepreneurs must learn how to transform a bad situation into a good one. The only way that you can surely fail is when you stop trying and throw in the towel. Train your mind to think of another solution, if the first solution does not work.
In conclusion, if you are a novice small business owner, you do not have to walk around aimlessly searching for the keys that will unlock the doors of wealth for your company. Make a choice to follow the time tested principals of other company chiefs whose mistakes have paved the road to your success. Networking, being orderly, and being solution minded are just 3 tips for a new start up business that may give you just what you need to jump start your organisation today.
Six Ideas That New Business Start – Ups Could Last the Current Economic Recession
It’s a demanding economic environment at the moment for new and developing business ventures. But by cutting overheads and becoming firmer with service providers, new small businesses may flourish.
This commentary highlights half-a-dozen “tactics” for surviving in a downturn.
1. Accept that cash is crucial
Look after your money – if you’re out of cash and cannot access more credit, you’re probably theoretically broke and heading for ruin. The lack of money is what the majority of accountants recognise as being the primary killer in most business start ups which fail. I propose to my clients that they need a detailed 3 monthly cash forecast which isn’t taken from the income statement but from a thorough understanding of cash received and disbursements. Monitor trends in your cash position to be on top of any tough situations.
2. Collect the cash with obsession
Deal with accounts receivables routinely. Companies are hanging on to money longer than ever, resulting in overdue settlement. Those tardy settlements cause a knock-on consequence throughout the wider community. Money due will trend up, and several of your clients may turn out to be victims as well. Don’t continue giving credit.
3. Don’t depend on anyone
Keep a close eye on your service providers, and maintain other options. In a slump, a number of your suppliers may become in difficulty too, and you should think about other suppliers for your essential raw materials.
4. Assess your operating costs regularly
You might estimate expenses, you cannot project income. Search for ways to slash expenses. When economic times are good, businesses have a tendency to increase the number of employees and incur outgoings that are nice to have, but aren’t essential. It’s time to perform a clean peek at them.
Maintain a focus on core markets and expend money exclusively in those areas. Keep away from spending capital as well as time in areas which have been confirmed as less worthwhile. Many businesses start by slashing promotion & marketing expenses. This may be an error.
Instead of slashing these budgets, assess the processes you are using. Are there other cost effective ways to promote? Does your existing strategy deliver the proper outcomes? If not, revise the way you work to generate the greatest feasible outcomes.
5. Don’t ignore your lenders – talk!
If you have borrowed cash, stay in contact with the people you owe. Do not delay until it’s too late before talking to your lender. When you are already in a crisis and haven’t given them any notice, your position could become more complicated. Keep up frequent dialogue. It will aid you if you ever need to amend terms.
I work with several entrepreneurs who feel an enormous amount of strain lifted when we arrange improved terms with their lenders.
6. Returns – business ventures survive on the surpluses they generate
Don’t worry about increasing sales. Worry about growing surpluses. Make sure you comprehend what influences surpluses in the business. To stimulate demand, you may have to become imaginative with your product range, and you don’t want to put something out there that is actually unprofitable.
Consider branching out to seize the most of possible opportunities. Other people’s vulnerability and insecurity could work to your benefit. Who knows – you may identify another lucrative market.
3 habits of successful business owners
The habits of successful business owners are a topic worthy of much discussion. Have you often wondered why some company heads earn significantly more than other successful business chiefs?
In this article, we will discuss 3 habits most highly successful business entrepreneurs employ on a daily basis.
1. Learn your business
One of the key elements present in the character of prosperous business heads is expertise. They are extremely knowledgeable about their business. While they may not do everything themselves, they know exactly what needs to be done in each component of their enterprise. This is essential because your employees will know that they can’t present you with inferior work and expect your satisfaction. If you are a new business entrepreneur, learn from reading books about your industry, going to seminars, and other business owners in your field.
2. Staff your shortcomings
As a small business owner, it is imperative that you staff your weaknesses. It is OK to be weak in certain areas. The danger arises when those weak parts of our business are left alone. These areas must be handled by someone. Employing individuals who are strong where we are not is a great way to deal with our inferiority. It is when we work together as a team that our businesses succeed and we can become a successful business entrepreneur in our own right.
3. Keep track of your marketing to become a successful business entrepreneur
Smart business owners will always know which marketing pieces are producing the best results. Knowing how much money your marketing is producing for your company is crucial. If a specific campaign is unproductive, you must be prepared to replace it or simply stop it entirely. If you are spending more on marketing than you are making in profits, your business will not be around for long.
To sum things up, the habits of small business owners who are successful are very similar. If you imitate the 3 characteristics above, you will begin to develop these character traits in your own life. You can be the next successful business owner in the nation by following the methods of others.
Nick Vujicic is an inspiration
Who else wants to make an excuse today for not achieving what ever they want in life?
Nick Vujicic has no arms or legs but has come to terms with his lot in life and in this short video he delivers an inspirational speech to a heap of school kids that they will probably never forget. I know that I won’t.
http://www.youtube.com/watch?v=3QbgOGnbxDo
Look before for you leap – why do people judge others so quickly?
Why do so many people jump to conclusions and judge others so quickly?
The following questions might make some people think more carefully:
Question 1:
If you knew a woman who was pregnant and already had 8 children (3 of whom were deaf; 2 were blind, 1 was mentally retarded) and she also had Syphilis, would you recommend that she have an abortion?
Please read the next question before looking at the response for this one.
Question 2:
It is time to elect a new world leader, and only your vote counts.
Here are the facts about the three candidates. Who would you vote for? Read more
Choose a Good Web Hosting Company and Give Impetus to Your Online Business
Can a web hosting company really help in boosting your online business?
If yes, then how? To begin with, hosting companies propel your business by providing you adequate space on their privately owned server to host your website on the World Wide Web. These companies not only serve established business entrepreneurs but novices as well who have just set up their online business.
There is a multitude of hosting companies operating over the Internet. Choosing a good web hosting company is indeed challenging. The biggest problem is that each web hosting company claims to offer you the best of benefits from the point of view of business. In such a scenario, an average man is bound to get confused contemplating over the best web hosting services.
When there are so many entrepreneurs to dominate your mind and fascinate you, you have to be very cautious because it is likely you might fall prey to the tactics of some fraudulent company. You need to be very smart while dealing with web hosting company. There are a couple of things you need to bear in mind while exercising choice from the several web hosting services available.
This is the first time you are dealing with a web hosting company, so obviously there will be lot of confusion in your mind whether you’ve chosen the right hosting company or not. Considering this aspect, it is better to choose a web hosting company that offers money back guarantee if you are not satisfied with its web hosting services and there are myriad web hosts that do provide such kind of an assurance. In the initial phase, such hosting companies are perceived to be a better choice, as the risk factor is highly minimised.
Newly set up online business do not have that much expertise to deal with technicalities, so it is better to go for a web hosting company that offers technical support in regard to web hosting services 24X7. It is necessary to check whether there is a centralised control panel system or not. Control panel helps you exercise control over varied aspects such as configuring auto responders and maintaining email accounts. Also, pay attention to its ease of use. If the system is too complicated, it can pose problems for the managers.
To promote your online business and take it to towering heights, it is essential to keep track of your site visitors and the overall rate of traffic. Choose a web hosting company that gives you complete information as regards to website statistics. If you get to know which segment of population is your frequent visitor and what do they look for in your site, you will be better able to cater to their needs and give them what is desired.
The modern day bank manager
Over the last few weeks, many of our clients have expressed their deepening concern over their bank’s attitude to helping them through difficult times.
During the recent good times, many of them were “courted” by their bankers to take out bigger loans; given credit cards with high limits and nothing seemed to much to ask. Money was rolling in for the banks. How different it is now.
It appears that now the “going” is getting tough, many small business owners face a much different attitude from their bank manager.
I used to work for the Barclays Group in the UK before moving to New Zealand, so understand that the banks are commercial enterprises that need to charge for their services.
But how many of you feel that the balance has shifted too much and when you need help from the banks, they simply turn their backs on you?
I recently experienced my bank manager ”kindly” opening a current account for me (without my permission); charged me account opening and monthly fees and then hounded me when I refused to pay them! She was shocked when I asked her who I should send my bill to for the time I had wasted contacting them to sort their error out!
Whilst not trying to undermine the affect the current economy is having on many small businesses, I thought that a little light relief was in order. The following video from the Monty Python team offers a few practical tips on raising finance in testing times! Click here for 4 minutes of tips
How to survive the downturn
The current world wide economic downturn has, again, highlighted why small business owners must actively scrutinise their finances. Many small business owners still rely on old and/or out of date information.
Last week, I recently met with a new client who had experienced a 25% decline in their sales. When I asked them about their cost structure, they admitted that they had no idea and hadn’t had any financial statements prepared since 2006!!
Not only had they ignored the tax man for 3 years, but it’s also poor business practice.
Recessions often provide a “wake-up call” for many business owners as it forces them to evaluate what they are doing. In the current uncertain climate there is very little excuse for ignoring your key financial indicators.
One efficient way to understand your business’ financial performance is to prepare a simple cash book. For as little as $100 per month, you can generally get a book-keeper or accountant to do this for you.
Understanding your current profitability, cash flow and break-even points will help you to review your spending and help you to set budgets. This may include putting money aside for tax liabilities and owners’ drawings/salaries.
I have seen far too many small businesses suffer because their owners failed to meet their tax obligations or pay themselves.
Talk with your accountant. They should be able to advise you how much to set aside for tax – I accept that this may reduce cash flow in the short term but it may avoid unnecessary surprises later. Consider setting a regular amount aside in an interest bearing deposit account or use your credit card for some expenses to take advantage of the interest free periods that many credit card companies now offer.
Also examine your expenditure as there may be ways to easily reduce costs too. I have put a complete stop to anyone purchasing anything in my businesses without my express approval.
This had an immediate positive impact on our stationery, printing and postage expenses. Remember it’s your money that your employees are spending…not theirs!
I am currently consulting with a client who “shouted” their staff morning tea twice a week. On my advice, she now buys the ingredients and asks her daughter to bake home-made muffins and she also now provides on-site coffee facilities. She is delighted that she now saves over $700 per month from just this one simple change. What small changes could you make?
But be careful…many small business owners cut back on the wrong expenses. Marketing and sales remains an important area for many of them. However, I have lost count of the number of clients who blatantly waste money on marketing and advertising campaigns that simply do not work. They simply throw more money at it, hoping that the ‘phone will ring. For more marketing tips, visit www.themarketingdude.com
Is it time that you reviewed your business finances? Who knows…a few hours of your time may result in some pleasant surprises.
