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Elearning - Small Business Management Articles

Dream Job

Many people dream of owning their own business. Some make theirdreams come true and some still dream of the ultimate – owning their ownbusiness. No matter what it is that fuels your dreams, it is up to you tobring them to life.

Owning your own business has incredible rewards but they do come at a price.The price can include overcoming your fears, working harder than ever, learningnew skills, and working with integrity and tenacity. Is this a price you are willingto pay for the freedom of being your own boss?

Many people succeed as small business owners so there is no reason why youcannot join them.

What helps your Success?

There are many keys to small business success but the following will help youachieve the business goals and financial freedom you want:

research your ideawrite a business planlook at marketing strategiesresearch your audiencecreate a budget

Even more so today, many small businesses start at the very grass roots level inour homes. And many small businesses start as a hobby that turns into dreamsof becoming a profitable business. Becoming a small business owner can be theway to take control of your working life. Consider starting out part-time and worktowards phasing out working for a boss.

When you reach the point where you realise you are surviving and not worryingtoo much about paying the rent, you can start looking at the benefits of yourachievements. So, what are the benefits of working for yourself?

Control your Life/Work Balance

More and more we seek life/work balance. The popular catchphrase is ‘workersmarter not harder’. Being in control of your business life gives you control ofyour entire life – flexibility and independence is totally yours to control. In the firstfew years this may not be as apparent as you build a reputation and client base.If you use persistence and hard work, balancing your life will become easier themore successful your business is.

Personal Empowerment

Have you ever looked around your workplace and seen things you wish youcould just walk away from? Maybe a culture that promotes fear or just a job youdo not really like. Creating or going into business for yourself is the opportunity tocreate a work environment that suits what you want to achieve and can reflectyour personal philosophies.

Sure there are times you will find yourself in a situation you do not like or takingjobs you may not really want to grow your business. This is about building solidfoundations and is the basis of any small business success. Lay the foundationsand reap the rewards later on.

Then there is the knowledge you gain – maybe you further your education to armyourself with the knowledge to turn your ideas into a successful business. Inbusiness you are always learning and smart small business owners keepupgrading their skills to stay on top of a changing market place. Knowledgepersonally empowers you with the confidence to make sound decisions and seebeyond the obvious.

Personal Satisfaction

The personal satisfaction you get from achieving your goals will drive you forwardand motivate you to set new goals. It gives you personal confidence and a beliefin your integrity as the demand for your services and good grows.

A sense of security within yourself will make you want to achieve more. A goodphilosophy for small business owners to consider is not ‘how much can I makeout of a potential client’ but ‘how can I best service a potential client to meet theirneeds’. You’ll be surprised how this type of attitude attracts good clients whichbrings plenty of rewards along the way.

Whatever level of achievement you want to reach, the small business basicrequirements are the same:

business skillsindustry knowledgemarketingbusiness planningknowing your market

Financial Rewards

Of course there are the financial rewards. Sure, it may be tough for a few yearsbut once you stabilise and have solid business growth you start to enjoy therewards of financial success. Whatever these may be you have the personalempowerment to use them to help you achieve other goals in your life. Onceagain there is the personal satisfaction in being in control of your life; thefreedom to make choices whatever they may be.

Being a small business owner takes stamina, vision, compromise and,sometimes, sheer tenacity. But, there is nothing more satisfying than achievingyour dreams and being totally independent and responsible for your own destiny.

If being a small business owner is one of your dreams the first step to achieving itis research and knowledge. Take a look at what skills you lack and take somecourses to bring you closer to achieving financial freedom. And join the growingranks of people working for themselves.

Franchise Businesses

Are you thinking about putting up your own business franchise but aren’tso sure what to do or how to start it? In reality, there are a few things youmight want to consider before venturing into franchise businesses. Thisarticle will guide you on how franchise business works and will help youdetermine whether or not it is right for you.

Franchising – What Is It?

Famous fast food chains like that of McDonald’s is one of the wide arrays offranchise businesses you can choose from. Franchising involves carrying afamous brand’s name as well as using their unique sense of business,marketing, and operation strategy as your overall business agenda.

The popularity of the existing brand franchise business you chose makes a fasterreturn of investment because you do not need to build up on public awareness.You will not have any problems on how to work your way around the franchise aswell because you are using a proven business system that reels in huge profits.

Franchise Business Vs. Ordinary Business

RiskAccording to study, franchise businesses are far less risky as compared toordinary businesses regarding investment. The main reason for this is theproven management strategies being implemented in a franchise business. Mostsmall businesses go into bankruptcy because of poor management. Themanagerial knowledge is just one of the aspects imparted to the business owneras he leases a franchise.

Better Deals and SavingsWhen you carry the name of a famous brand, you will get better deals fromsuppliers. In some cases, the franchise company purchases supplies in bulkfrom their suppliers and distribute it to their franchisees with the same savingsthey get. As compared to small business owners, some suppliers will tend to givethem higher prices even when they buy bulks of supplies, simply because theyare not famous enough.

Public AwarenessLet’s face it, as customers, we are bound to choose the well-known brands andoften disregard the not-so-famous brands. This actually applies to everyone. Sayfor example you are traveling to a new place and you came across two foodchains, one is named Barnyard Joe’s Burgers and the other one is Burger King,which one would you choose? The answer is obvious, right?

What Do You Need In Starting A Franchise Business?

Initial FeeThe most obvious part of franchising is the payment of fees to the franchisecompany. Often called the up-front entry fee, this is the initial amount of money tobe paid as the business owner signs the franchise agreement contract. This feeincludes the right to carry the franchise business name, the franchise businessknow-how, and the length of lease time which is usually stated in years. Whenthe contract is nearing its expiry date, the business owner will have the right torenew it.

Ongoing FeesAside from the up-front initial fee, the business owner is also required to payroyalty fees on an ongoing basis as stated on the contract. These fees arecalculated either from percentage of total sales or from a permanent fixedamount. The royalty fees depends on the franchise company’s governing rules ofcontract. As long as the business owner is under the contract, the franchisecompany is entitled to extend their services and support to his franchise

business.

Advertising FeesAs a franchise business owner, you need not worry about advertising becausethe franchise company takes care of national and regional promotions. As a partof their franchise business community, you can totally benefit from theseadvertisements. All you have to do is pay for periodic advertising fees required bythe franchise company.

Location Of the BusinessThe above mentioned fees are just 50% of the overall expenses you are going tomake. The other 50% involves looking for a perfect location for your businessand furnishings. The franchise company can help you look for a suitable locationfor your franchise business as part of their extended services. Often times, thecontract states that you should consume your personal money for the 40% of thetotal expenses on the location and furnishings, the other 60% can be from bankloans you acquire.

Restrictions

Trade SecretsAs a franchisee, you are entrusted with the franchise company’s trade secretsand business strategies. You are bound not to redistribute this knowledge in anyform or kind. This is one of the agreements stated in the contract you signed.

Restrictive CovenantsAs a business owner, you are also restricted to gain another franchise name thatis directly competitive to your already existing business franchise. Say forexample you are already leasing a burger food chain franchise; you cannot getanother franchise business with similar business nature.

We have already explored the ins and outs of a franchise business and by nowyou have learned so much from it. We also found out that it has moreadvantages than disadvantages. So, do you think franchise business is right foryou?

How to Keep Business Costs Down

It is important for every business to minimize costs and maximize profits inorder to remain successful. In order to do this, it is important to implementa budget and this tool should be the principal mechanism for controllingthe business costs.

A budget will allow you to understand exactly where you currently stand from afiscal point of view, will allow you to anticipate the needs for the future and willhelp you track actual expenses in order to adjust as necessary. A budget iscomprised of several components and each one needs to be analyzed, trackedand reported accurately in order to stay on task and maximize earning potential.There are two basic sections to a budget, the forecasted budget and the actualexpenditures.

Planning a Budget

The first part of creating a budget is to look at the company as a whole and breakup the financial picture into separate categories starting off with the broadcategories of income and expenses and breaking each of those down into moredetailed categories. Each section is a financial forecast using anticipatedrevenues and expenses to come up with a complete financial picture. It isimportant to use a strategic plan as well as an operational plan to come up with

the various categories needed.

A strategic plan will consider the overall goals and activities in a company forlong term results. An operational plan breaks down the strategic plan into shorterterm goals. Using those two as a basis will allow you to determine the resourceneeds of the company. It will also allow you to use the anticipated results todetermine the potential revenues in the company. These factors will be thestarting point of the budget.

There should be an overall company budget that looks at the big picture but thisbudget can also be broken down into departmental budgets as well as projectbudgets. The more minute the details are, the better able the company will be tostay on track within each category. For example, if there is a company budgetforecasting $1M in revenue that may be broken into $100K for the salesdepartment and further broken down to $10K for a particular project. During thecourse of the project, you can gauge the effectiveness of the budget bycomparing the actual revenues against the forecast. This process works for bothincome and expenses.

Tracking the Effectiveness of a Budget

The second part of a budget includes the actual finances in the companycompared to the forecasted finances. It is important for each department to trackand report accurately the income and expenses as it pertains to each project.This can then be compared to the forecast to analyze the budget’s effectiveness.If the actual expenses and income are in line with the budget then you did agood job in the planning stages. However, there are always unexpected costs orproblems that may come up within a particular area. If this occurs, the budget isimportant to help adjust where needed to maintain the overall financial goals.

For example, a project is anticipated to cost $1,000.00 and bring in revenues of$2,000.00 for a gross profit of $1,000.00. But because of problems that mayhave occurred or additional resources needed to complete the project, the actualcosts increased. It may be necessary to adjust the budget in other areas toaccount for the loss of profit. Non critical areas of the budget can be reduced inorder to maintain the overall finances of the company. The bottom line will not beaffected but an individual line item in the budget will need to be modified. Or, theprocesses that comprise the project can be analyzed for creative solutions tomitigate any loss.

Using a Budget to Reduce Business Costs

Regular and continual analysis of the budget will help keep a company on trackto meet their financial objectives. There are various methods that can beemployed to do this. If a significant discrepancy occurs between forecasted andactual expenses, the processes within the project can be examined. There maybe ways to streamline processes or make it more efficient. There may be ways tocut costs on equipment or other resources. Or, if there is no way to manage thecost on a particular project, it may be necessary to adjust the budget accordingly.However, if caught early enough the overall financial objectives can still be metby cutting in other areas.

At the end of the fiscal year, analysis of the budget versus the actual expenseswill give management an idea of how well they are able to anticipate theirbusiness climate. The prior year budget can then be used to create the nextyear’s budget, taking into consideration any adjustments that were neededduring the course of the prior year as well as future goals. Overages in particularline items can be analyzed to come up with an effective strategy to reduce costs.

If, for example, the amount used in advertising exceeded the anticipated amount,

this can be an area of concentration for improvement. Ideas can be sought,analyzed and implemented to find more effective advertising means or lessexpensive advertising. Brainstorming with department experts in this area canresult in a decreased cost for the item with an increased effectiveness.

Using a budget successfully can help reduce business costs. It will allowbusiness executives to see where the company is as a whole, on a departmentallevel and a project level to gauge how sound the financial forecast is. If aparticular project is out of line with the budget it can be caught early enough toaffect change. It is a tool that should be used as a primary source of controlwithin a company to anticipate and track the fiscal goals.

Is Business planning Important?

One of the most common reasons a new business fails is due to lack ofresearch and planning. It is imperative for all businesses to have a solid,well thought out business plan. A business plan is the map to the overallgoals of the company with detailed processes on how those goals will beaccomplished. Those who have a great idea for a business may have thepotential for a solid business strategy but may not have the skills tocomplete a thorough business plan. This can be highly detrimental to astart up company. So, it is important to learn the skills needed to completethe research and documentation of a business plan before embarking onyour new endeavor. But, how do you get the skills needed?

One of the best ways to learn how to complete a business plan is to take acourse in small business management. Not only will this give you the skillsneeded to create a business plan but will also allow you the opportunity to put topractical use additional skills to put your plan into action. This will give you theadvantage of taking your business to the next level and ensuring you have all thetools to make it a profitable and successful venture.

A small business management course taken online at an accredited trainingfacility is the ideal way to learn valuable skills without sacrificing any time awayfrom building your business. You can work at your own pace and study asneeded. The course is inexpensive and will not take a lot of time to complete.You can learn in tandem with building your company and put to immediate usethe skills you are learning. This method will give you the tools needed to createan effective strategy to map out your business plan and out it into action.

An online training course in business management will teach you how toresearch business opportunities to determine the feasibility of making yourbusiness a success. It will also give you the necessary knowledge to comply withthe legal and administrative requirements of owning a business and how tocreate a safe working environment. You will be able to effectively come up with abusiness plan that will give you a strategy to deal with the daily operations ofyour business that will allow you to make a success of it.

Additional skills that will be learned include how to effectively promote yourbusiness and how to monitor marketing strategies. You will learn how topmanage daily operations and finances to ensure the efficiency and soundness ofthe company. Learning management skills to motivate and monitor employeeproductivity will allow you to get the most from your human resources.Developing skills to help you assess work priorities will give you a good plan toaddress daily operations. Constructing customer service policies will allow you toensure you have positive customer relations, retain existing clients and expandyour customer base.

Without a sound business plan, many start ups and expansion businesses fail. A

business plan gives you the necessary road map to grow your businesseffectively. Having the skills to implement the plan will further advance yourenterprise. An online small business management course will give you thenecessary tools and techniques to develop and implement a business strategywhile continuing to allow you to work on the day to day operations of yourbusiness. You can get the necessary skill set to enhance your business and putyour newly found knowledge into immediate practice.

Is Your Workplace Safe? Occupational Health & Safety InAustralia

Everyday employees head off to work, never thinking that they could gethurt there. Yet according to the Australian government, each day thenumber of workplace deaths and accidents will exceed those that occur onthe roadways. In fact, every year workplace deaths will exceed dying froma disease. That’s a little alarming isn’t it? So is your workplace safe?

Workplace safety is critical for the employees, but it’s also critical for a successfulbusiness of any size. Understanding the Australian OH&S laws and the riskswithin your workplace will ultimately lead to a safer workplace. And a safeworkplace is a win-win for everyone. It will reduce the risk of employees sufferingan injury or disease, and it will save the business money.

An employer is required by law to provide a safe place to work. That safeworkplace includes

Machinery that is safe to operateSafety measures when dealing with substanceInformation and training that is fine tuned to the workplace.MSDS stationsWorkplace inspections

It takes little time and it costs very little compared to the alternative of anemployee that is injured or killed on the job. Business that chooses not to complywith OH&S law can be prosecuted and fined, never mind the devastation ofknowing that proper training would likely have avoided the accident in the firstplace.

The OH&S Act and the codes and regulations contained in that act are in-depth,and vary from one situation to another. Therefore there’s no way that we canincorporate the entire act in one short article. In Australia each state and territoryis responsible for creating their own laws pertaining to occupational health andsafety, and it is also up to them to ensure that business abides by these laws.

An employee does not want to get hurt at work, and for the most part employersdon’t want to see their employees injured. The trouble is without the right traininga potential unsafe situation can occur. Without training an employee may noteven realize they are at risk. For example, let’s use the office worker who typesall day long. For many years no one recognized the potential for injury. After allhow can you get hurt just sitting at a desk? Then suddenly carpel tunnel injuryrates began to escalate and suddenly office work was recognized as having thepotential to cause injury.

The OH&S Code of Practice attempts to be proactive and eliminate the riskbefore an injury or disease occurs. The regulations and codes detail the dutiesand responsibilities of the company to control the risks associated with a hazardso as to reduce the risk of injury or illness.

These regulations are legal and enforceable but the hope is that a businesswon’t comply simply because they must legally, but instead will comply becausethey value their employees and want to ensure that they are safe from a humancompassion perspective. The inspectors can come to any jobsite or place ofemployment any time they want. They are allowed to record infractions and issuewarnings or fines. They will also arrive on site if there has been an injury orfatality. Inspectors are much more likely to work with you to create a safe workenvironment than fine a business unless the business continuously hasinfractions.

There is plenty of material available to aid your business, and online is packedwith resources that can help you assess your business and make necessarychanges. Some businesses have specific needs, but using a general checklistcan assess the health and safety of your workplace. Whether you are the ownerof a business, or an employee of that business, making sure the workplace issafe is a group effort that everyone should take to heart. There are manychecklists readily available online.

It is important that business owners communicate directly with their employeesand enlist their services in making a work environment safe. This includesallowing employees to participate in the planning, purchasing, andimplementation process.

If there is not already someone onsite that is trained in health and safety, it’s timeyou changed that. Large companies will have an OH&S Coordinator thatoversees the implementation of safe work practices. They also do training, andhandle workplace accident claims. It’s also common to have an OH&S committeethat regularly examines the workplace looking for hazards and suggesting waysto correct the hazard. Smaller companies may have a manager or staff memberthat deal with occupational health and safety issues.

Regardless of how a business handles safety issues, it’s very important thateach and every employee know the health and safety risks in their workplaceand report any hazards they see to the appropriate person.

When a business is buying equipment it’s important to find out if it meets orexceed the safety requirements for your workplace. If you are purchasing usedequipment this is especially important. You should obtain all manuals and copiesof all maintenance records. You should also make sure all the guards andprotective equipment is still in place on the equipment.

MSDS or Material Safety Data Sheets should be found in every workplace, eventhose that are strictly offices. You might be surprised to learn that products suchas white out are actually hazardous when not used correctly and therefore havean MSDS sheet. Of course companies that use a variety of materials will haveseveral MSDS sheets.

For those of you that don’t know what a Material Safety Data Sheet is, this is asheet of paper that outlines all the information about a specific chemicalincluding its composition, how to handle it safely, at what levels it becomes toxic,and how to handle an emergency with the specific chemical. Every workplaceshould have one or more MSDS stations and every employee should knowwhere these stations are. As well anytime a new chemical is brought into aworkplace each employee should review the MSDS sheet.

Every employee that will use a new piece of equipment should be properlytrained on that equipment. A business should not assume that from oneemployee to the next will provide adequate training. Always have a single persondo all the training on a specific piece of equipment.

It is important that the workplace provide the necessary training for a particulartask or piece of equipment. Don’t allow those that are not proper qualified tooperate the equipment or do the task at hand. As well, it is important to havesomeone designated to oversee the jobsite and make sure that the work is beingconducted safely at all times. Don’t assume a supervisor has the necessary skillsto do this. Instead if the supervisor is going to be the person responsible foroverseeing workplace safety on the jobsite, make sure they are properly trained.

Looking after your employees is very important. If health and safety is not takenseriously in the workplace, employees are much more at risk of injury or disease,or worse death. While injury shows almost instantly as a result of an accident,disease can take years. For example, workers that developed mesothelimia wereactually exposed to asbestos 20 to 25 years prior.

Employees working in a healthy, safe environment are going to be much moreproductive so not only will the business win with increased production, they willalso win with reduced injuries and/or disease within their organization. A safe andhealthy work environment is good for everyone!

Promoting Your Small Business

Promoting and marketing your small business is one of the first importantsteps to increase revenue especially when your company is struggling tocompete against others in the field. There are many opportunities online tohelp advertise to potential customers. The Internet allows you to promoteto millions of people with generally low cost techniques.

NewslettersNewsletters are a great way to distribute information about your company topotential customers while providing them with helpful information in regards toyour industry. If your niche is in the healthcare industry, you can provide greatmedical advice and tips to users straight to their email. Within the newsletter, youcan provide your company’s information and link to suggestively give thecustomer a reason to browse your web site for services.

Web ArticlesAs most people know, being at the top of search engines especially Google willbring in plenty of potential sales. Google’s search engine spiders the Internet forthe most relevant information in regards to a keyword search. Web articles canbe submitted to various depositories where Google’s engine will find thedocument. An article with keyword rich information that describes a product orservice you provide along with a link to your site will push your site up the searchengine rankings. Most submissions sites are free, so it is little cost to thebusiness owner.

Paid AdvertisementsCertain companies like Google offer paid advertising to create a small, keywordad when a user’s search matches your ad. If your company is just beginning,search engines like Google or Yahoo will allow you to pay per clicks on the ads.When the user searches a product, depending on the amount of money you arewilling to pay, your ad can show at the top of their results page.Another type of paid advertising is having your logo displayed on sites throughmonthly payments. Many web sites have page real estate devoted to onlineadvertisements to paid subscribers.

BlogsIf you’re passionate about your business, a blog is a great way to discuss yourproduct, issues, and advice while promoting your business. Potential customerssearch for relevant information about products and services, and your blog can

have the answers they are searching. Providing great advice and answers is thenew way to provide initial customer service. By advising the customer throughyour blog, you can win the trust with the user by just communicating through yourblog.

Press ReleasesPress releases are a similar article submission strategy, however, instead ofdiscussing your product it directly advises users about your business and itssuperior new services and unique products. They are a great way to increasesearch engine ranking and to get the word out about your business and products.When promoting your business, the online community is a wealth of simpleadvertisement advantages for small businesses at affordable costs. The Internethas become a major resource for potential customers to search for products, sotake the time to make sure your business is competitive in rankings.

Small Business bankruptcy

The consequences of small business failure are usually bankruptcy. Thesad part of this is that bankruptcy is usually avoidable and most failuresare due to poor management skills and a lack of understanding of thefundamentals of setting up a small business.

Defining Small Business Failure

The definition of small business failure is when a business:

declares bankruptcy because it can no longer meet its financialcommitments, orcloses down because it is insolvent and cannot trade profitably.

Closing a business for medical and personal reasons is not considered businessfailure as long as it is not associated with financial problems.

What are the Consequences of Small Business Failure?

Not all small business failures end up in bankruptcy. Many negotiate deals withtheir creditors, e.g. 80 cents in the dollar. Then the company and, in some casespersonal, assets are sold off to cover the company’s debt. The type of debtsettlement plans you put in place will dictate whether you need to declarebankruptcy or not.

It is when creditors are not willing to accept a deal or have lost faith in your abilityto pay they may sue and force you into bankruptcy.

The biggest small business failure, apart from the financial side, is the failure ofyour dreams.

How do Small Businesses go Bankrupt?

Business management is thought to be the most common reason businessesfail, and more than 50% of new businesses fail within the first 5 years. Thiscombined with external influences makes it difficult to survive unless you havegood business planning behind you.

It is not just bad debts, stock that sells slowly, poor planning and lack of profitsthat will send a small business bankrupt. These factors may contribute, butwithout building the essential foundations of your business from the beginning,you can doom yourself to small business bankruptcy.

The small businesses that survive have several basic things in common:

good business plansgood financial structures and record keepinggood marketing strategiesgood managerial skillsgood understanding of their marketare flexible

Often we are so focused on sacking our bosses we do not look at the fulllogistics of going into business. It is a mistake to go into business without a clearunderstanding of what or how to achieve your goals.

Avoid Small Business Bankruptcy

Did you know it was possible for most small businesses to avoid failure? Stepsyou can take include plugging any gaps in your knowledge – completemanagement training, learn basic accounting skills and software packages; learnsmall business basics like how to plan your business and marketing strategies.Give yourself the best chance to start your business off the right way.

Most people work for themselves to achieve lifestyle balance and, if you are notcareful, you will find yourself working harder than ever. While in the first fewyears the reality is you will work harder and longer hours, but with good strategicplans and marketing you will find yourself spending less time in your business.For example, if you a web designer, your prices will be very competitive in thefirst few years. This gives you the opportunity to prove yourself and to earn areputation and build a portfolio. The more popular you become the moreselective you become about your clients and your prices can rise to reflect thedemand for your work.

Here are some tips to create a stable small business that can help to avoidbankruptcy:

Do your planning. Do not neglect to continually revisit your business planto ensure you maximise the opportunities that arise in a changingmarketplace. To avoid small business bankruptcy you need a flexibleattitude so that means flexible planning.Be systematic. Put systems into place that makes running your businesseasy and less time consuming. Systems will make it easy for you to keeptrack of what happens in your business. It also makes it easier forsomeone to step in and run it if ever needs be.Keep records. Document everything to do with your business. It couldbecome marketable intellectual property one day and it saves you a lot oftime at the end of the financial year.Hire good people. Having excellent people in a happy, well-adjustedworkplace can be the difference between failure and success. Investing inthe right people can help your small business avoid bankruptcy and buildbetter relationships with your customers.Stand out from the rest . What can you do that makes you stand out fromyour competitors? How good is your customer service? Why shouldpeople choose your business? What makes you better?

This is a simplistic view, but these are the basic principles behind any newbusiness. Arm yourself with knowledge and take on the business world withoutfear of failure or bankruptcy.

Small Businesses Provide Unique Advantages

In our society, we’re often told that bigger is better. From sport utilityvehicles to huge housing developments to getting a job at a “large andreliable??? firm to secure our financial footing, it’s really ingrained into partof what we do. In the business world however, there are a number ofdistinct advantages derived from being small. Today, more than ever, nichemarkets and specialized small business can provide competitiveadvantages the “big boys??? could never achieve.

To properly quantify what makes a small business, it’s often a sole proprietor witha company that has five or fewer employees, although slightly larger businesseswith 20-50 employees are often lumped into this category as well. Despite it’ssmall physical size, many small businesses cater to big clients that outsource aparticular aspect of their operations. Small businesses can often provide aspecialized service or products and command a wealth of knowledge andexperience when it comes to what they do. In this way they maintain anadvantage over their larger counterparts. Small businesses can provide servicesat a lower cost and equal or better quality compared with in-house staff whocould have other responsibilities as well.

In terms of management, small businesses can also provide distinct benefits. Asmall business can operate with a flat management structure, so that customerscan contact project managers and have key business decisions made withoutunnecessary delays. Larger firms often have multiple levels of management andapproval must be received from each particular level before being able to moveforward, which bogs down the process.

This also provides a small business with a much greater sense of versatility.Many times business environment changes demand a rapid response andadjustment. Many employees of small businesses have a broad range of skillsand experience rather than specialists in one particular area. So, if a databaseprogrammer needs to do some computer repair, he’s equipped with those skillsas well, and someone else at the firm can take over his other duties temporarily.This allows a small business to operate much more efficiently and has more of acapacity to respond to change then a larger firm.

With a proper business plan and implementation, anyone can start their ownsmall business and be successful. If you think you might not be able to competewith larger establishments, find a niche that you can call your own and considerhow to make the many advantages of being small work for you.

Why People Start Their Own Small Business

Why people do anything can be a mystery and why they do difficult thingsis certainly hard to fathom. I mean let’s face it, the vast majority of smallbusiness operations fail. They go bust. Yet every year along comes anotherline of hopeful, would-be entrepreneurs. The odds are against themsucceeding but that doesn’t stop them.

So why do they do it? Why do people start their own small business? Well thereare a number of reasons which include a desire to be independent, to be yourown boss, to escape a lousy job, to make a fortune and to tackle a challenge.Let’s examine those reasons in detail.

I Want Freedom

Then there are those people who want freedom when it comes to their job. Theywant to work their own hours. There are a lot of people in this situation. Theyhate being tied down, being restricted. They don’t want to clock-on and off exactlywhen told. They hate having to ask permission before they can do anything andthey are not afraid of working long hours. With their own small business, they canmake the decisions. They may be the wrong decisions but at least they get tomake them. They are not answerable to anyone. They become their own boss.

I Want More Money

Making large amounts of money is a strong incentive for people starting theirown small business. In a company job there may be bonuses if things go well butmost people are stuck on their set salary. What if they have a good idea formaking the company more efficient? Will they get rewarded for this? Will thecompany do very well out of their idea but not the worker who helped thecompany? In your own small business, there need not be any fixed wage. If youwork harder or longer or smarter you can reap the rewards. You get paidaccording to your skill and dedication.

Now surveys show that many people running their own small business make lessthan they did working for someone else. But in theory at least, you can increaseyour income. All you have to do is work harder or longer and as you are not afraidof hard work, you will have to make more money. So naturally some people starttheir own small business.

I Like a Challenge

When people who want to climb a towering mountain are asked why, some reply,“Because it’s there.??? In other words, some people simply like a challenge. Thefact that the task is difficult doesn’t put them off but rather fires them up. They likethey job of achieving something, of winning against the odds. Starting your ownsmall business is a challenge. Making something out of nothing can be tough.That’s the situation which appeals to some people.

I Want Job Satisfaction

You can’t put a price on that inner glow you get when you achieve somethingworthwhile. Some people start their own business because they want that innerglow. They want to start a small business from scratch and watch it grow. Theywant to tackle the problems and obstacles – and usually there are many of these– and come out a winner. Being able to look back over time and see how thatsmall acorn you planted all those years ago has grown into a mighty treeappeals to many people. Your business has grown. This gives a lot of personalsatisfaction and is the driving force behind some people starting their own smallbusiness.

And it’s not just one glowing feeling after many years. Every day as sales aremade or jobs completed or new projects won, you can experience that sameinner glow.

No Restrictions

Many jobs require qualifications and experience. Starting your own smallbusiness may need neither. You need an idea and a burning ambition tosucceed. Of course you may need training and possibly start-up capital but thereare no limits as you might usually find in working for a company. If you want tostart your own business, lack of qualifications and lack of experience need notstop you from having a go.

Do Something Worthwhile

Not everyone in the world is out for themselves. There are some people whoenjoy helping others. They may wish to put back into society after having beenrewarded during their life. This is what motivates some people to start their ownsmall business. They can offer employment to others and they can run abusiness which does some good for the planet.

Inventors

Some people invent things – a new way of doing an everyday chore, a device tomake a task more efficient or safer or maybe just a game or software package.Some of these inventors want to maximize their profit. They have a brilliant ideaand they start their own small business to promote and sell their idea.

Summary

Wanting to be your own boss is probably the main reason why people start theirown small business. But whatever the reason and whatever the type of smallbusiness, there will always be people who want to make a start on their ownventure, their very own small business.

ends

The Pitfalls of Micro and Small Businesses

Owning a business is a dream of many people. There are certainadvantages that, on the surface, seem ideal. You get to be your own bossand directly affect the course of the business. You get to set your ownhours and work at your own pace. You get to see the results of your effortsand enjoy the tangible benefits of financial success. However, some peopleunderestimate what it takes to make a small business successful and seeonly the positive benefits. They may not be aware of or be prepared forsome of the common pitfalls associated with small businesses.

You do get to affect the course of the business. However, without the properplanning and research this path may not be lucrative and add stress to someonetrying to start a business. You are your own boss and can set your own hours.But if you do not put enough time and effort into the business it will fail. You get toenjoy the tangible benefits of financial success but that is only if there is asuccess. Likewise, you may have to suffer the setbacks of financial failures thatmay affect your personal finances.

Contributing Factors to Small Business Failure

Running a business is hard work and often those who successfully run a smallbusiness will tell you they put in longer and harder hours than they ever did whenworking for someone else. The fruits of your labor can be highly rewarding but donot make the mistake of thinking it will come without sacrifice and effort. One ofthe primary contributing factors of small business failure is lack of planning. Abusiness plan is an essential tool to ensure that the objectives of the companyare clearly stated and all aspects are thoroughly researched. Creating abusiness plan that addresses all aspects of the business plan is a starting pointto mapping out how the business will be run.

To promote your business you have to have an advertising and marketingstrategy. If people are unaware of your business, they can not utilize it.Therefore, researching possible marketing means and their associated costs isessential. You will need to explore various methods and assess its usefulness forthe most cost effective way to let others know of your company and to entice theconsumer to use your company. Lacking a solid advertising and marketing

strategy can reduce potential customers and affect your success significantly.The marketing and advertising plan is one component of a business plan thatshould be thoroughly researched and implemented.

Customer service policies and procedures are also necessary to ensure positivecustomer relations. Repeat business and word of mouth are highly effective toolsto help grow a company so it is imperative you come up with a way to ensureyour customers are satisfied. Look at competitors and see what tools are used toensure customers have a good experience when dealing with your company.This plan should include initial consultation, daily business practices and problemresolution. Without a thorough customer service procedure in place, customersmay not have the confidence in your company for repeat business and thesuccess of the company will suffer.

A business is only as strong as its employees and you must have personnel whoare qualified and dedicated to reach your goals. In addition, you must be able toskillfully manage the employees to ensure they are properly motivated, know thecompany objectives and productively work toward them. Lack of managementskills is a common pitfall small business owners come across that can adverselyaffect the outcome of the business goals.

Probably the most common of the pitfalls small or micro businesses face is thelack of or mismanagement of financial procedures. A company’s financialstructure should be determined at start up and proper reporting and managementprocedures should be in place. This includes creating budgets and analyzingdata. It also includes ensuring finances are dealt with correctly. Without a solidfinancial plan a business will fail. So, if these skills are lacking it is important toresearch it or hire someone qualified to ensure the daily financial operations areproperly addressed.

To combat the pitfalls of small and micro businesses a proper business planshould address:

The goals of the companyA marketing strategyCustomer service policies and proceduresDaily operation proceduresHuman resource policies and requirementsFinancial planning

Lack of qualifications and lack of planning are the two biggest mistakes smallbusiness owners make that affect the outcome of the business. Therefore, it isimperative to research and implement a proper business plan that includesoperational strategies. If a solid business plan is thoroughly researched andused to implement the daily operations of the company, chances of success aremuch greater. Without one, it is common to fall into the problems that areassociated with small and micro businesses. Owning a business can be a highlyrewarding experience for many reasons. However, often the lack of planning maycause the business to fail instead of being the success you dream of.

Getting Your Work Priorities In Order

Starting or running a business is a huge task that demands many personalqualities in addition to knowledge of business practices and the industryyou happen to be in. However, here is one element that combines bothyour personal qualities and your knowledge of business practices. Gettingyour work priorities in order is essential if you want to develop strong

workplace relationships and take your business forward.

Work priorities are effectively the elements of the workplace that define yourfocus. This is both within your business and related to your employees. It isincredibly important to set up a work priorities structure within each departmentand then interrelate them to apply to the business as a whole in order to ensurethat every single person working towards them knows his or her place and cankeep an eye on the ultimate goals.

The importance of communication cannot be stressed enough where gettingyour work priorities in order are concerned because many companies have failedin the past as a result of poorly organised work priorities or separate goals andfocuses for each department. Everyone needs to pull together to ensure thatwork priorities are ultimately met and the following common ways in which youcan ensure this happens are outlined below:

Planning Work Schedules – Work schedules are extremely important inprocessing and establishing your work priorities. After all, priorities arebased on the basic functions the workplace hosts every day. Schedulescan keep your production or output at a steady level and ensure that alltargets and deadlines are met 100% of the time if implemented carefully.Work Performance Feedback – Work performance feedback works to fulfilseveral essential areas within every business. It makes sure that you aregetting the best from your staff via regular assessments and it also putsthe need for communication between all levels of your business in place.As such, it will ensure that there is a bond between the management andstaff if carried out correctly. If your staff are not working to the best of theirability then you can also identify weak links and put measures in place tohelp them.Development – Development is an ongoing work priority in itself becauseevery good business will continually offer their staff opportunities todevelop. Many people apply for jobs actually look for that now so they nowthat they have the opportunity to better themselves.Team Building – Team building exercises should also enable you to getyour priorities in order because it is at safe forums like that at whichemployees feel safe and supported enough to speak their minds and offersuggestions as to how the business could improve. As such, it can helpyou identify work priorities as your business evolves and grows, as well asencouraging strong relationships at all levels of your business.

As you can see, communication is of the utmost importance in all of the above,but they also have an overriding advantage that can help to pull your workpriorities together – strong workplace relationships. Implementing work prioritiescan indeed help to develop strong workplace relationships and can ultimatelybenefit from them. After all, having a management hierarchy in place is all welland good but if management and staff are pulling in opposite directions then thevery basis of your ability to function as a business is under threat.

Strong workplace relationships encourage people to pull together and worktowards common goals and work priorities. As a result, getting your workpriorities in order is a lot simpler a task with a strong workforce to implementthem.