Is Starting a Business For Me

Entrepreneurs start businesses at any time, regardless of the state of the economy or opinions of others. They are driven by a dream and desire to bring something of value to the market and society. And, are not afraid to experiment and fail along the way.

We are fascinated with people who make something out of nothing, invent products and show us new ways to use well-known stuff. There are individuals who are driven by grand ideas and have vision to do great things. Others are modest in their undertakings and have a simple desire to provide for their families.

Most of us have entrepreneurial qualities but for different reasons do not find ways to utilize them. The first question that comes to mind of any aspiring entrepreneur is "Is starting a business for me?"

This is a great question and deserves an honest answer. Most individuals can own and successfully operate a full-time or part-time business. Being a business owner is rewarding but a challenging endeavor.

The aspiring entrepreneur would like to know what it takes to start a business from the ground up and be a business owner. Business ownership offers many benefits such as being able to full fill a dream, seeing the fruits of your labor and directly benefiting from it, not being dependent on capricious bosses and the latest corporate restructuring. You have more control of you destiny by owning a business than working for someone else.

However, business is like a living thing and needs constant attention. In a start up stage it requires a lot of creativity, dedication and total commitment. It requires significant amount of energy to take off the ground and face the challenge and ambiguity. Even though people often are aware about the difficulties they may encounter still, tens of thousands of business are started every year in the US alone.

It is helpful to introduce some streetwise wisdom: It takes three to six months to test a business idea to find out if it is worth pursuing it and make it a business. After you successfully test your idea, it takes about three years to find out if you have a truly good business concept. And takes over ten years to become truly profitable.

Most start ups require full-time commitment. However, in many occasions a part-time business may be a better route to follow. Often family, career or civic commitments limit the time available for entrepreneurial ventures. In this situation individuals can embark in a start up as time permits. Part-time businesses it still require regular effort. For example, a hobby is suited become a part-time businesses. It requires minimum learning and can quickly produce results. However, usually would have limited market and is difficult to grow.

Another way to enter business ownership is to buy an existing business. It allows instant access to established operation, owner expertise, customers and income. However, you are buying someone's dream. Each business reflects owner personality, desires and values. Buying an established business is less risky but, does not diminish the need for commitment, effort and dedication. There is no guarantee that you will enjoy higher rate return on investment than staring your own.

Only, one that absolutely loves to work for large organizations or for others and always avoids any form of risk should not try to start or own a business. Such individual may not be able to condition his mind to small business dynamics. It is better to look for a new job, not wasting time and resources starting or buying a business.

Starting a business from the ground up needs considerable effort and resources but, is exciting and potentially very rewarding endeavor. It attracts young and old, people who want to fulfill life long dreams and ones that are looking for income to support their families. Most start ups and small businesses fail but they always allow us to gain valuable experience and help us learn a great deal about ourselves. It is worth starting a business before you are restructures out of a job or being old and never tried to fulfill a dream.

Record Keeping For a Home Based Business

To introduce this topic "Record Keeping for A Home Business", I must repeat a statement you have seen many times before in this series - "a home businesses is just that, a Business." New statement - YOU CAN'T RUN A BUSINESS WITHOUT KEEPING RECORDS! Many people planning to start a small business from their home are surprised to find that keeping records of the business is one of the requirements. It is. I can't help you there, but I can give you a few tips to make it easier.

Why do you have to keep records?:

Taxes - the most obvious reason is to prepare your tax returns. For more information about taxes I would go to the Internal Revenue Service website (irs.gov) and check three items under "Business" - "Starting a Business" - "A-Z Index For Businesses" - and, "Small Business Forms and Publications."

To monitor progress and prepare financial statements - good records help you monitor the progress of your business. What products or services are selling and returning the most profit? Did you realize positive results from your last marketing campaign? Which sales letters or landing pages are making the best conversions? Are you really making any money? We could go on and fill this page with questions, but the bottom line is that without accurate and adequate records you don't have a clue.

Customer service - there will be numerous times you will have to go back to your records to resolve a customer inquiry or provide information.

Managing cash flow - even a small home business can benefit from managing cash flow. Cash coming into the business never equals outflow. Good records let you anticipate these differences and prepare for them by making wise purchases to minimize outflow, or offering sales or new promotions to increase inflow when it is needed most.

Marketing - anyone who has been in business (any kind of business) for any length of time has heard "the money is in the list (of customers, prospects, leads)" and "test everything to see what works and what doesn't." That is excellent advice, but can't be done without keeping records.

What Records do you have to keep?

The very simple answer is all records having to do with money flow into and out of your business. A far more precise answer (having to do with tax records) will be found in the Internal Revenue Service website (irs.gov) under "Small Business" - "Starting A Business" - Record Keeping." There are, as we've seen, reasons other than taxes to keep records, so let's get back to the statement "all records having to do with money flow into and out of your business.

Money flowing into your business might be:

Money from selling your own goods or services
Commissions from selling goods or services for others
Bonuses for recruiting or special sales (Network / Internet Marketing)
Money you (or a partner) contribute into the business
Money from other sources such as borrowed from a lender or investor
Money you make from sale of all, or part of, your business

Money flowing out of your business might be:

Home expenses for that portion of your home used as an office
Payments for product to be re-sold
Payments for all services and expenses, such as marketing, advertising, supplies, accounting, education, etc. required to run your business
Payments to buy or replace business assets, such as computers etc.
Payments to yourself (or partners) in the form of a draw against equity

What is the best way to keep these records?

My experience in small business leads me to say - without hesitation - QuickBooks. I don't have space in this Article to tell you all the reasons why, but QuickBooks is a good system that eliminates repetitive record entry, is accepted by all Accountants, and is quick and so easy that even I can do the books.

One thing I can tell you about small business record keeping is this - if you don't organize your records from the start, and stay on top of your record keeping chores daily, I can almost guarantee that you will come to grief - probably sooner than later.

I'd like to leave you with eight tips CRITICAL to business record keeping success and sanity:

Never mix business and personal paperwork. For instance, by using one checkbook or credit card for business and personal use.
Make sure your records can be understood by anyone, not just yourself. I strongly suggest you use one of the widely accepted automated software record keeping systems. My personal recommendation is QuickBooks Pro.
Always use the memo section of your checks to record the specifics of the expense.
Record transactions as they occur, or at least on a daily basis. Reconcile bank statements the day you receive them. Retain all bank statements.
Get help before things get out of control. Your Accountant, or Business Counselor should be able to help, or at least point you in the right direction when help is needed.
Develop and maintain a good back up system. If you are using computer software back up daily onto disk or jump drive (my preference) and store the disk or drive in a fire resistant cabinet or other safe place. All permanent records of the business like licenses, contracts, organization filing papers, etc. which are paper documents, should be copied or scanned electronically, and stored the same way.
Unless you have a tax accounting background, plan to have your taxes prepared by an Accountant (at least the first year). Check with the Accountant to make sure you understand what records will be required, and that you will be able to supply them.
Prepare and carefully review a Profit and Loss Statement and a Balance Sheet monthly. Flaws in your record keeping system (or mistakes) will show up there, and can be corrected in a timely manner before they get overwhelming.

10 Tips For Choosing a Home Based Business

Work from home

Choosing the right type of business is a difficult process for your new start to become entrepreneurs. A lot of dreams when to start a business, but still frozen, especially because you do not know what is the appropriate business when those ideas come to mind.

Here are ten tips on choosing a home business that may be suitable for you.

1. Instead of choosing the first business that comes to your mind, try to take some time to explore various options. Select another business idea! Read books that might provide ideas home business or small business, and magazine articles or more entrepreneurial and marketing of existing trends and market demand. With the phenomenal growth of the Internet, the information you need now easy for your search.

2. Find out what kind of business that interests you. Define your goals, interests, desires and abilities. What is important is that you should enjoy your business is. Entrepreneurs who succeed are those who feel most passionate about what they are doing. You can not feel excited if you do not like!

3. Choose a business that is personally satisfying and profitable. Although you may have a passion in a hobby or craft, try to consider the potential business. Do you think there is a demand for it? Was going to take you on recurring income? How is the market potential, whether already saturated? Are there barriers to entry? Do you have economies of scale?

Start a business that you think has the potential benefit. You will need to do a lot of calculation to determine the financial viability of your business. Obviously this will require market analysis and an analysis of BEP, the initial financial projections show that the amount of income you should be able to cover your expenses. All this requires extra energy, especially if you are not a financial expert, but this is one important step in assessing whether the business you choose can make money.

4. Think about whether you can and want to manage every aspect of business. When you start a new small business, you may not have the luxury of staff to help complete in some aspect of your business is. Instead of just focusing on the strategic direction of your business, you may be asked to collect the receivables, track expenses, receive customer calls, and do thousands of other tasks. Snap will be other tasks that you must do in your business.

5. Area. Draw a layout of your workplace. Remember, you start business at home to save on overhead costs, so take advantage of every nook and cranny possible that you can use in your home. If you want to start a cake decorating business, you must have a large kitchen. Forget about starting a dance instruction class if you live in a studio apartment!

6. Make sure your business meets the high safety standards, especially if you have children at home. This is important if your business is associated or using chemicals and other hazardous substances. For example, store all chemicals used for cleaning carpets or upholstery. Move these materials in a safe place for example in the garage out of reach of children.

7. Check with your insurance agent to determine the types of business insurance coverage you need. This is good planning to determine what insurance is needed to minimize risk and protect your business. General categories of insurance including property, licensing, liability, health, disability, workers' compensation, and life insurance.

8. Ensure compliance with laws and regulations in your area. Visit your local government office to view the regulations or other business licenses will be able to prevent you from selecting a particular location. Be careful, pay attention to the rules that regulate business signs and business types that are allowed at different locations. You do not want the government to come knocking at your door asking you to stop the surgery after you spent thousands of decorating and equipping your business!

9. Family. Choose a business that has the organizational characteristics that are compatible with yourself or choose a business that fits with your family schedule. If you have a newborn at home and your husband work full time, you should look for a business that will allow you to take care of your baby. Business that will force you to actively seek out clients such as real estate may not be suitable for you at this time.

10. Create your family members involved in business and work together for success! Every dream of combining home and office, career and family became a symbiotic blend of harmonious bliss. Not easy, but it is one way to involve your family in your home business. For example ask your teenager to help design your web site. Your partner can help in negotiating with your clients. The most important is that each person in your family to enjoy the job and help the success of your business.

Accounting Consequences of Legal Business Organization

If you are starting a business, one of the first decisions to make is the legal structure of the business. This decision will impact your taxes, liability, and control over the business over its life. Considerations to take into consideration are:

How large do you expect the business be?
What level of personal liability are you comfortable with?
Do you anticipate much liability in the daily operations of the business?
How much revenue do you

project?
How comfortable are you with strict organizational structures?
How do the owner(s) plan to take profits out of the business?

But this decision should not be made in a vacuum. Consult your accountant and attorney for advice before making a final decision. They can help guide you through the implications of how you organize your business. They are also the experts in any relevant state and federal laws.

There are three major categories of legal business structures with variations on each. Here are some of the most common legal structures with the pluses and minuses of each.

Sole Proprietorships

Most small businesses start out as a sole proprietorship. This is when there is only one owner who is also responsible for the day-to-day operation of the business. The owner controls all the assets of the business and takes on all the liability of the business operations. Profits and losses are reported directly on the owner's personal income taxes. In effect, the business and the owner are the same entity legally.

Pluses of Sole Proprietorships

Easiest form of business to set up and dissolve.
Single owner has complete control over the business.
All profits and can be re-invested in the business or it can be used by the owner.

Minuses of Sole Proprietorships

Owner has full liability for business operations. This includes all debts or lawsuits against the business. The owner's entire personal assets are at risk.
It is harder to raise capital from commercial sources with a management team of one.
Employee benefits can not be deducted from the business' income. This includes the owners health insurance.

Variation of Sole Proprietorships

There is only one type of sole proprietorship.

Partnerships

Similar to a sole proprietorship except that this entity includes two or more people who share ownership of the business. The day-to-day management of the business may or may not be divided among the partners. Once again the law looks on the owners and the business as a single entity. An operating agreement should be drawn up by a lawyer and signed by all partners governing how the ownership is divided, profits will be distributed, new partners added, and the business dissolved. The cost for a lawyer to write up a good operating agreement is far less than the litigation that invariable will arise over the life a business. It is the same issues as with a divorce over the property.

Pluses of Partnerships

They are still easy to establish but you should have a professionally done operating agreement.
Liability is spread over several owners.
All profits can be re-invested or flow directly to the owners.
It is easier to get capital from traditional sources including banks.

Minuses of Partnerships

All the partners are liable for the debt and lawsuits of the business. The partners' personal assets are at risk.
Profits and decision making is shared if conflict arises.
Employee benefits can not be deducted from the businesses income. This includes health insurance.

Variations of Partnerships

General Partners -- Members of the ownership team responsible for day-to-day management, associated liability, and share of profits. Sometimes called an active partners.
Limited Partners (LLP) -- Members of the ownership team that only have liability up to their investment and generally have limited input into the day-to-day operations of the business. Sometimes called a silent partner.

Corporations

A corporation is registered with the state where the company resides. Legally it is a unique entity from the owners. The taxes are paid by the corporation and it can be sued or enter into contractual agreements. A corporation is owned by shareholders who elect a board of directors to manage the day-to-day business decisions. A lawyer should draw up the ownership agreements.

Pluses of Corporations

Shareholders have limited liability for the corporation's debts and liabilities.
Shareholders can only be held accountable for their investment in the stock of the business.
Easier to raise capital through the sale of stock or through commercial means.
Employee benefits can be deducted from the corporation's profits for taxes.

Starting Home Business

Notice all the "Starting Home Business" posts you have been receiving? Are you interested in starting a business from home? You should be! Why? Because big business has failed us. Not only have they failed us, they don't seem to "Get" that they failed us. We hear that the worst is over, then a friend calls that they have just been laid-off or we see the sign"Starting Home Business."

Don't get me wrong, I love business. However, I love small home based businesses not BIG bureaucratic businesses. In business school these days they seem to be teaching students more about how to manipulate the system rather than why business exists or what makes a business last. The education system in the United States has produced a whole new breed of Business School trained executives, whose loyalty is to finance and the manipulation of investments; who feel no obligation to be familiar with a company's employees, product, manufacturing process or customers. There are exceptions, however, normally BIG equals bureaucracy and bureaucracy equals mediocrity.

Why do I bring all this negative "stuff" up? Because I want you to understand that you can put up your sign "Starting Home Business" and succeed when you care about your customers, community, family and friends. Caring is one of the building blocks to your success.

So how do you start your home business?

Go get a hand held mirror.

Bring it back with you to this computer screen, look into and say:

"As of this moment forward I am an independent home business owner.

My business is helping others find financial security and freedom.

I am starting part-time while I continue with my current position."

Congratulations, you have taken the hardest step in starting a business from home.

You will note that I am suggesting that your business "is helping others find financial security and freedom." I'm not suggesting that you start a business that requires a substantial investment like purchasing a franchise or producing products. In fact, I'm suggesting your home business be a people to people business. I believe that this is the type of business that provides you with the greatest opportunity for success with the least amount of risk.

Today, due to technical advances and the online revolution, doing business person-to-person is not in vogue. You hear about the thousands of dollars to be made by becoming an online affiliate. There are people making a lot of money online, however, affiliate marketing is very difficult for the novice or newbie as you will be called. A great deal of the money being made online is being made by experienced online marketers, sometimes called super-affiliates, selling their secrets to new affiliates and newbies. Much of the advice is good, however, I personally believe that the best home business to start is a person-to-person networking business.

What do you do next? Let everyone know by posting your "Starting Home Business" sign. Be flexible, open to change, aware of the opportunities that the universe presents to you - every day. Its scary! I know most likely you were not taught anything about business in high school or college. What I do know is that once you change, that is change your attitude about your home business, you will never turn back. Decide what type of people to people business you want to become involved with.

Also, it is very important that you understand that business can be fun? That's right, FUN! Ever thought that it would be fun to be in business with your friends and people you enjoyed rather than strangers that you are thrown together with because of a paycheck? When you leverage your income with the income of your friends, family and associates, it's fun. That's what networking home based businesses are all about. And you can start a home based business with very little up front capital. When I say very little, I mean less than $50.

Have you considered starting a networking business? What questions do you feel people would like answered about opening a networking business? Post your questions to me.

Sometimes people take a short term view of their home based business. At times, on the Internet and in network marketing, I see people who view selling as taking advantage of others for a short term gain. Don't do that! Don't prey on each other, help each other. Find yourself a good company and build your business with it. Help others while you help yourself.

Tips For Starting a Home Business in Today's Economy

We all agree that it is not easy to start a new business. Instead of directly doing business activities, beginners are usually stuck with their bustle which distanced themselves to start the actual business activities. They are busy making business cards, choosing fonts or company logo, or thinking about the valuable business concept. This condition sometimes happens until weeks or months without doing the real business.

It is true that to start a business need good preparations. According to Robert Spiegel, author of The Shoestring Entrepreneur's Guide to the Best Home-Based Businesses, prepare a business is like sharpen a pencil. Your business activities are not only about how sharp your pencil, but how you use the sharp pencil for your business success.

If you are experiencing such conditions, there are 10 tips from Robert Spiegel that you need to remember and do:

Make Working List - Put it in a place where you can always see it at anytime. Give it signs and colors that attract attention. The list is a compass that guides you to start your business and run it successfully.

Take Action Quickly - You must imitate how an infant is learning to walk. When he falls, he will always wake-up to try walking again; he is never surrender; he learns to walk with his small steps. You must have those attitudes when you are starting a business. You must immediately take action, although you just do a little, short, and small step. You have to realize your working list. You must be focus, because it will reduce the fear and strangeness that you are facing. The doubt can only be lost by the action.

Get Customers or Clients - If you do not have customers or clients, it means you do not have a business. So, get your first customer or client to start your new business. Serve, care, and satisfy your first customer.

Forget Perfection - You are impossible expecting everything to be perfect when you are running your new business. There are always some problems and obstacles. You do not to worry, because it is usual and reasonable. In this situation, realistic and patience are needed.

Choose Hard Worker Employee - It is very important, in the beginning running your new business, you are surrounded by hard worker people. It will create a passionate environment, so that it will add your spirit and energy to make your business running well.

Talk about Business - You are a businessman and in the business environment. Change your choice of words and language in your life. Talk your company as a business; do not talk it about a business. You must convince yourself that you are running a business. If you do not believe in your business, how you can expect others to believe it. You do not say the words that show you are not serious in business, for example, "I'm trying to start a business"; you must say "This is my business".

Appreciate Yourself - We all like appreciation. It's time to be honest with yourself, every week ask yourself whether you have done something worthy to be appreciated, which is significant effects on the progress of your business. Feel free to celebrate it.

Make All Accountable - You should find business partners, organizations or other business owners who could supervise your new business, directly or indirectly. This step is important, so that you are always motivated to do serious steps in the right track. This step also keeps you on the path of your business goals.

Up to date - Ensure that your business is not obsolete. This is why you are advised do not spend your much time to sharpen your pencil. The more important thing is to do something for your business. In this step, you must be sensitive to the change.

Remember Your Dreams - When your business has started to run, you do not be afraid to come out from your comfort zone. Tell yourself, "Now, I have got my own business. It is time to make my business getting bigger." You can change the goals and create new dreams to refresh your spirit like in the beginning running a new business.

10 Reasons To Start A Business

People are hesitant when it comes to taking the leap from employee to entrepreneur but to ease that transaction here are 10 reasons to start a business this year. These reasons are in no particular order but they are all valid reasons.

Never again will you have to worry about being laid off, unemployed or fired for the rest of your life. This struck a cord with me because after graduating from a prestigious college, young and ready to prove myself, it all amounted to nothing. If the economy ever takes a turn for the worse (just like it has done these past two years) there is no such thing as job security, unless you are a prison guard.

Never again will you have to ask your boss about a raise. With the cost of living increasing quicker than the rate of pay, people are in need of more money, but they are too afraid to ask their boss for a raise. With your own business you control how much you are paid and when business picks up, your salary increases with it. The only limitations to the income you create is what your business generates.

You can write off a lot of business expenses on your taxes. Discussing tax write offs is not the most interesting subject, but these are ways to save money that can be used towards increasing your business output and therefore, your business revenue. Consult with a business CPA (Certified Public Accountant) before you declare an expense for your business.

You can work from anywhere in the world, especially if you have an online business. I've met successful business people who decided they no longer wanted to live where their business is. With a cell phone, fax machine and laptop, they ran their business in Dayton, Ohio while they beached in Jamaica.

Right now is the cheapest time to start a business. Banks are being more loose and lenient with business loans. You still have to fill out the proper paperwork that you had to before but banks want to finance small businesses. Small businesses employ more than 60 million people in the United States and help keep small communities alive and growing.

There are many business professionals out there without employment due to the recession. These people have extensive experience in the field of their professional and they are willing to accept any kind of employment. If decide to open a store business and you are in need of a personal accountant, skilled technician or personal assistant, these people are available to work for you and prove their worth.

The money is still out there. This was evident during the Christmas season when it was reported 3.5% more money was spent this year than last year. People have returned to their spending habits and if you provide a great product or service of value then people will purchase it.

There are business owners who are willing to work with you and even finance your business. For some business owners, the work has become too much for them to be both management and employee. You can speak with the owner and construct a deal where you take over as management, pay them a low monthly business mortgage or franchise fee and they can continue to work there as a valued employee. That's a win-win-win!

The winter months: December, January, February, are the best months to begin a business because that is when people spend more time indoors than any other time of the year, which includes more time in front of the computer. Whether they are simply looking for ways to make extra income, start their own business or live a different lifestyle than the one they have now. Strike while the weather is cold!

Your imagination, your creativity, is your only limitation. I remember reading a story about a high school student who couldn't afford a college tuition. Instead of getting a job, she decided to make, market and sell beds for hamster. This may sounds like a very unsound business venture but over the course of high school she sold enough hamster beds to pay for all four years of college. That's what I call having a business mindset!

Those are the 10 reasons to start a business and if one or more of these reasons have interested you in starting your own business, allow me to help you achieve your business needs. Simply click my business website link below and I will work with you personally to show you how to achieve the business success you want.

Planning to Insure Your Business? - Know What to Consider

Every business, regardless of its size and industry, needs insurance to protect itself from various financial losses that can arise due to unfortunate events such as natural disasters liability, theft or litigation. Business owners today know the importance of insurance, but many of them fail to plan properly while insuring their business.

Business owners should make sure that their business is covered for all the possible events that can lead to financial loss. Here are some key things every business owner should consider while purchasing insurance policy.

Risks associated with your business type

Almost every business faces risks. Depending on the industry and size of the business, risks can vary. In order to provide full security to your business from financial losses, you need to purchase insurance policy that covers all risks related to your business. But for that, you should identify and evaluate risks specific to your business. It is not an easy task to find out the risks associated with a business. Hence, it is better to take experienced and professional help.

Assets which require protection

Identify your business assets that might face risk and require an appropriate protection. Your business assets may include your company's building, vehicles, business equipment like PCs, important files or documents, patents, copyrights, business products, and the most important assets of your business - your employees.

Types of business insurance

Some of the important insurance policies that may be required by a business are:

Property insurance - Physical properties such as building, furniture, machinery, electronic devices, involve a lot of investment. Mishaps such as fire accidents, earthquakes, floods, etc. can damage your property and may lead to huge financial losses. Hence, insuring these things is very important for any business.

Public liability insurance - This insurance is very important for businesses, where their customers or general public visit their premises. If any customer or any person gets injured or dies at your business premises, you will have to pay for their claims. Public liability insurance protects you against the legal suits and claims resulted from the third-party.

Product liability insurance - If your business involves in manufacturing or selling any physical products, then you must consider taking product liability insurance. Since they are your products, you are legally responsible for any damage or injury they cause. If any person claims for the damage, you have to pay for it.

Employer's liability insurance - If you have employees, you should have employer's liability insurance. This insurance offers financial support when your employees fall sick or die in course of the employment.

These are the general insurance policies you need to include in your business insurance policy, so that you can protect your business from various types of financial losses.

Choose comprehensive policy from a reliable insurance broker

Now that you are aware of the common types of insurance policies, it is the time to choose a policy that covers all your business' requirements. As discussed earlier, it is better to take professional (reputed broker or agent) help when choosing an insurance policy for your business.

Advantages of buying insurance through a reputed brokerage firm:

•Insurance brokers provide reliable, fast and professional service

•They understand your business and the specific type of risks associated with your business. So after getting clear idea about your business' needs, they tailor your business insurance policy to exactly match your business requirements

•They offer sound advice. They estimate the amount of coverage required for your business

•They not only offer you a competitive price, but also provide you with the wide cover

•In case of liabilities, they also deal with the legal issues, without having the need for the owner to interfere

The essential characteristic of an effective insurance is to cover the business against unforeseen hurdles that might occur. So, depending on your business requirements get a right and complete cover by considering all the above mentioned factors.

Business Success or Failure Is 100% Your Fault

Nobody starts a business with failure in mind. Yet small business owners by themselves rarely do what needs to be done to avoid failure. Small business failure statistics are all you need to look at to realize most small business owners don't do the right things when it comes to starting and running their business. Many fail in the first 5 years and even those that are able to survive the first 5 years are likely to fail before they reach 10 years.

With each small business failure, there are devastating consequences for the small business owner and his/her family. Most small business owners put every penny they have and can get their hands on into their business not to mention the time, energy, and personal sacrifices they make. The devastation caused by their business failure goes far beyond just them. It extends to their community, their state, and the country. A staggering amount of resources and opportunities are lost due to the vast number of small business failures. Sadly, business failure can be avoided by understanding why it happens and doing the things necessary to elude it.

Why It Happens

Michael Geber author of The E-Myth Revisited states in the forward of his book what he believes to be the primary reason:

"The problem with most failing businesses I've encountered is not that their owners don't know enough about finance, marketing, management, and operations - they don't, but those things are easy enough to learn - but that they spend their time and energy defending what they think they know."

In other words, Mr. Geber believes small business failure happens because the small business owner thinks they know more than they do about business.

During my professional career as a business executive and consultant covering 30+ years and more than 120 consulting engagements with small business owners, I have seen this be true time and time again - the owner is 100% the reason for the struggle and failure of his/her small business. Small business owners like to practice insanity which is defined as continuing to do the same things over and over expecting a different result. There are three bad traits common to small business owners causing their habitual "insanity":

Bad Trait #1 - Think they know what they don't know.

Here's an example of this from one of my past consulting clients James who is the owner of a residential and commercial contract painting company. James made the following statement when I asked him about his method for pricing work: "My father started this business back in 1956 and taught me everything I needed to know about it. I was 15 years old when I began working here. The way I price is the way my dad taught me. It has always worked and it is the only way it can be done for this business!"

At least 5 years before this conversation James's company began losing profitability and every year the losses had increased. James believed his dad had taught him everything he needed to know and he would never need to know or do anything different. He was wrong yet he practiced insanity by continuing to do things just like his dad taught him somehow thinking he would get a better result. He only got a better result once he changed and learned that there was a different and more effective method.

Bad Trait #2 - Suffers from the Field of Dreams Syndrome:

The Field of Dreams syndrome is based on the movie by the same name. It is the belief that customers will come just because you have a business.Mike, the owner of a limousine service company, made this statement when I asked about how he marketed and advertised his company's services: "I am listed in the yellow pages and I rely upon word-of-mouth from past customers. I've never had to do anything else to get business. The phone use to ring all of the time. I don't understand why the phone isn't ringing like it did. I have the nicest, newest, and cleanest vehicles out there."

Mike believed people would call his company just because it existed and had (in his opinion) superior equipment. Not the case as he was experiencing with a continual decline in sales every month.

Bad Trait #3 - Belief that outside forces cause most if not all of their business problems.

George owns a residential roofing company. Here is what George said to me during our initial discussion concerning the problems experienced by his business: "I don't know how you can help me, Carroll. My company does roofs and nobody is getting their roof done. And those that are getting their roof done are hiring the jack-leg running around in his pickup truck charging less than what my material and labor cost. I can't compete against that guy. I'll be glad when the economy picks back up so things will be back to normal."

George believed there was nothing he could do to improve the condition of his business. It was all the jack-leg's fault and what the outside world was doing it to him and his company. George didn't think there was anything he could do to gain control over any of it. Not true! George in time learned that he was the only one who had the power to change his company's condition and make it better.

There are other "bad traits" held by small business owners but they all are due to the small business owner and his/her erroneous beliefs.

How It Can Be Avoided

The reality of being a small business owner is you are the sole reason for your business's failure or success! To correct the most common problem of small business you must be willing to do what Michael Jackson's "Man in the Mirror" song says - stand in front of the mirror and commit to the person you see there to do what is necessary for your business's success. If you don't, you, you family, community, state, and country will certainly experience the devastation of your business failure.

It does not matter where your small business is in its life cycle you must do the following to ensure your business's success.

1. Bury Your Ego and Be Open Minded.

Ego makes you close minded and erects a brick wall that keeps you from receiving and using available and valuable assistance such as advice, knowledge, information, and help. No one is perfect and knows everything there is to know. If you allow your ego to make you believe you "know it all " and are right when in fact you are not, you will miss out on important opportunities to improve. Removing your ego will allow you to learn and discover what you lack and need for improvement to take place. You will also find people more willing to help and provide you with things that will be of benefit to you.

2. Create a Passionate Vision.

The majority of small business owners I have worked with have a business which provides them with nothing more than a job. They have from the beginning structured their business to do nothing more than that. Now, they hate their business and are extremely unhappy. Their business is boring, takes all of their time, and provides them with little satisfaction, sense of accomplishment or fulfillment. If you want to be successful and happy you must do something you can be passionate about. This passion needs to be focused on accomplishing something specific not just for you but for others as well. Think about people who have been wildly successful such Steve Jobs, Bill Gates, Oprah, and Dr. Phil. The one thing they have in common is their overpowering drive (i.e. passion) to change the world in a positive way. You can do the same once you create a passionate vision for your business.

3. Learn to Learn.

Never have I worked with a business owner who had a business without competitors. The typical business owner I work with has problems and their competition is doing better than they are. When asked why they think they aren't performing as well as their competition they say something like "the competition is much bigger and can afford things I can't such as newer equipment, more advertising, or better location". These are all superficial reasons and represent nothing more than excuses by the business owner. The reality is their competition is succeeding because they have figured out how to be more successful. You must learn to do the same. If you don't believe you can do it on your own then get help and get it now before it is too late.

The business world is a highly competitive place. Changes are taking place in all fields and industries worldwide at an increasing the rate of change. To survive and succeed as a business owner you must continue to learn, do things in new and innovative ways, and be passionate about what and how your business serves its customers. If you overcome the bad traits of most small business owners you will be not only have a successful business you will also be happy and enjoy your business more than you ever thought possible.

One of the easiest and fastest ways to overcome any bad traits you might have as a small business owner is to get help from a professional who trains small business owners to be successful. You can receive such help in a unique, fun, fast, easy and affordable way by taking my 12 session practical "Master of Business" owner training program.

The New Trend in Small Business - The Family Business Council

The days of casually-operated family businesses have come to an end. In order for a small business to compete with large, commercial corporations, successful family businesses have turned from a casually run operation to a small empire run by a board of directors. Some of these savvy businesses have now also jumped into a new trend: creating a Family Business Council.

Keep in mind however a board of directors and a Family Business Council are two entirely different things.

The Difference

A Family Business Council is structured more like an open forum and is used to directly resolve issues within the family that are critical in terms of the success of the business. Since often the line between family and business gets blurred in a family-run operation, the Family Business Council provides an open setting where members of the business and family can resolve issues that if left unresolved can lead to confusion, stress and even a business's downfall.

Structure Your Business

If you structure a Family Business Council for your small business, it is important to create a foundation of policies that will resolve potential issues that may arise later. Some common policies that need to be created include:

Authority and Responsibility - Create a clear definition of who holds what authority and who is responsible for what positions in the company as well as in the family council. Each individual should have a set list of expectations, responsibilities and a clear definition of what their authority entails. In the end, everyone involved in the business should be clear on who they report to and what they do for the company.

Work Hours and Vacation - A set number of work hours/days as well as vacation provisions per family employee should be created as part of the business policy manual.

Office Life - Members of the company should have a clear definition of where their office or workspace is, what work items they will provide on their own and what items belong to the company - family or not.

Compensation and Benefits - A detailed pay structure must be created that outlines each member of the company and how much he or she receives in terms of compensation as well as healthcare or retirement benefits.

The Family Business Council should create all of these policies using an "open forum" technique so that no family member or non-family member of the company feels favoritism comes into play in terms of company policy.

Getting Started In Your Small Business

You can grow your business using both a board of directors and a Family Business Council. Businesses that do not operate with a board of directors should still use a Family Business Council in order to create a fair operating structure for their family-run operation. The initial meeting should be hosted by a business consultant who is not related to the business owners or directly associated with the business in any way. Ensure that the business advisor uses the first meeting to:

Create an environment based upon mutual agreement and trust amongst all family members involved in the business.

Give all members of the family council a chance to share opinions about business operations and bring up any underlying business issues they have.

Give the key family members within the business a chance to define goals for the company overall, listen to issues and reconcile any family disputes that ma be directly effecting the company.

Provide assistance to family members when it comes to defining authoritative roles, relationships and the responsibilities of all company employees.

The Bottom Line

A Family Business Council is a fear-free environment - meaning anyone who attends has the right to speak their opinions without fear of backlash, disagreement or future punishment. It is important for each family member to speak his or her mind in regards to the business operations until the entire group comes to a consensus. By doing so you will grow your business, but also grow your family trust and structure within the company.

Hiring a Business Coach That Facilitates Substantial Growth

Running any business alone can be self-fulfilling for every entrepreneur but equally as tough and impossible to successfully manage. With this in mind, hiring a business coach is always a smart move because the opinion of an expert enables and facilitates businesses to reach their full potential. The business coaching industry in the US has grown in recent decades to a worth of over $12 billion highlighting its impact and the need to find the best business coach for your business so as to unlock maximum potential.

Even the best business coaches require the services of other business coaches to effectively understand, explore and take advantage of the many specifics in their individual business set ups.

Hiring a qualified coach can improve leadership and facilitate expansion in domains of fundraising and project management. However, there exist many important considerations in finding the best or ideal coach for your business. These considerations include;

Cost

Cost is a very important consideration in the selection of an ideal business coach and it most often depends on factors like specialty, of expertise and location. Although experts are usually very expensive, it's possible to find affordable cost effective coaches. For and other social businesses, investing time and effort could easily find low pay experts who could offer coaching services as support of causes. Before even setting out in search of a coach, it's necessary to study your budget and clearly allocate what can be used for coaching services so as to prevent over-extension into debt.

Best Business Fit

When sampling potential coaches for any business, key to make sure those with the best fit for your business are the target. For example, hiring an ideal non-profit coach would entail narrowing to affordable coaches in the social business domain with proven track records of success. This can be assisted by personal and social feedback recommendations in combination with actual discussions with these potential coaches.

Possible Time Engagement with Coach

This is a slightly complicated consideration when looking at getting a business coach because the dedicated time engagements are usually very much dependent on expertise, and location. However, ensuring the arrangement of quality and long enough time with your coach increases the effectiveness of the relationship. Furthermore, time for meetings and follow up work must be set aside to make the best out of the coaching.

Preparedness for Change

In order to set up for maximum benefits from engagement with a business coach, it is essential to be prepared for significant changes. This is the productivity of the relationship doesn't only depend on the quality of advice from the coach but also on the preparedness of the management to listen and make changes with respect to this.

Hiring a social business coach can give and other social entrepreneurs the extra edge required for substantial growth, but their services would have to be cost effective, best fitting, and available.Their advice will also need to be and implemented for results to be eminent.

The many benefits associated with hiring the ideal business coach can be summarized under the following points;

Extra, Required Motivation

The one great quality almost every business coach will offer is relentless motivation and getting business owners unstuck when stepping into their own way. No matter the self-motivation possessed by the owner of any business, moments arrive when it's almost impossible to apply this self-motivation. In times like this, an all-important push to recovery from a professional is required even if it's simply in the form of confirming something already in your mind and plans.

Unafraid with Unbiased Opinion

A very important asset carried by business coaches is the ability to always provide unbiased opinions that are often absent in the management setting of many businesses. Furthermore, not being afraid to offer correction and confrontation to founders is very beneficial to every business as it often leads to solutions that others close to the business would have missed.

Stepping Outside Comfort Zones

In the absence of a business coach, it is very easy for business introvert managements to become overly comfortable and engulfed in their own ideas and goals limiting for expansion. Seasoned business coaches will encourage adventure and the trying out of new things that could be of help for your business and also curb over eagerness for extrovert entrepreneurs that could end up with being caught ruts. Moving out of your comfort zones with encouragement from your business coach breeds confidence which is usually translated to the achievement of very big goals.

Support in the Identification of Strengths and Weaknesses

An experienced business coach offers the capability of identifying patterns that assist in the discovery and exploitation of your strengths while taking note and addressing weaknesses. The outside perspective of a business coach goes far beyond sorting likes and dislikes but to the extent of uncovering useful hidden talents, and potential.

Increased Focus on Ideas and Business Needs

Hiring enhance creativity as they present increased opportunities to brainstorm ideas together fine tuning them with almost never leaving the business. Also, they ensure focus isn't lost from the business goals employees, clients or family. Business coaches ensure priority remains on the business without sacrifice of other parts of life such as health which are important to successfully integrate for guaranteed success.

Goals Management and Accountability

Audacious goals are always well understood by coaches and they collaborate to enable realization. Managing business goals though isn't a quality possessed by many entrepreneurs. With the help of coaches, there is understanding of how classification and follow up can be set up to monitor progress with respect to goals.

Get Business Cash Advance Loans Immediately

Getting a business cash advance is simple and easy for most small businesses, and even those who have poor credit scores. While this does not apply to bank loans, these are the requirements of private lenders, and private lenders are amongst the leading funders at this time.

Most business owners who are looking for funding and are unaware of the current requirements and developments of the financial sector, visit their local bank. This is the way people believe a loan is to be obtained, via the bank. However, banks are not very enthusiastic about funding small business, and as a result a whole new industry has cropped up to meet the demand.

Private lenders often fill the gap between businesses and banks. There is the very large segment of small businesses that are stuck in the middle, who don't qualify for bank loans and yet require financing. Private lenders fill this gap providing many of them with the much required business cash advance in the USA.

The services provided by private lenders

The funding that private lenders provide is typically known as MCA or merchant cash advance loans. These kinds of loans are short term loans that are for a maximum duration of 12 months. The repayment options are easy and flexible, and small business owners can work with the funder to set the method that most suits their requirements.

The application process to apply for a business cash advance is simple and quick, with the private funder generally requiring basic information, and a lot less than those of banks. The basic information required by private lenders to provide an MCA are as mentioned here.

1. How old the business is

2. The gross monthly sale of the business

3. How much they require

4. Purpose of the funds i.e. working capital, business expansion, purchasing inventory, purchasing equipment etc.

5. If the business owner has other loans and if he or she is in bankruptcy.

These are some of the basic types of questions that a small business owner who is applying for an MCA would need to answer. The outstanding difference between an application for an MCA and bank loans is the fact that banks require detailed information related to financial statements. Private lenders basically need a broad picture of the ground realities of the business applying for the loan. Unlike banks all decisions are not based on the statements of the small business.

While banks and private lenders may have a different way of looking at things, private lenders do take care to ensure the ground realities of the small business are as they should be. Banks rely heavily on financial statements when reaching a conclusion related to funding a business.

Features of the MCA loan application process

While it is possible that you will be asked about your credit score even when you are going to apply for private funding. The credit score is not a determining factor for an MCA. These loans are unsecured loans and as a result collateral and security are not required as well.

When credit scores, collateral and securities are not holding back small businesses, the possibility of getting funded is a lot higher. These are the basic weak areas of most small businesses, which hamper their ability to get funded by in large. When these weak areas are removed from between a small business owner and the funding they seek, the process becomes a lot smoother for them.

Collateral is something that most small business owners find difficult to show. Typically, only with a private lender can a small business owner expect to receive a business cash advance with bad credit.

Another great feature is the fact that small business owners can receive the funding they require very quickly as well. The quickest a business owner can receive the money in their business account is 48 to 72 hours, from the time they submit a complete application. At the latest this time frame would be a week or two. Banks on the other hand are in no particular hurry to provide business funding, and a realistic time frame would be a couple of months to receive the money.

How Can Business Consulting Help Struggling Companies

Business consulting has come a long way. From small companies to major ones, these firms are looking at ways on how they can prop up their business through outside help. The competition is tough and this is the reason these businesses are looking for ways to get ahead of the competition. With the wish to get ahead, consultant services are getting popular as they help offer insights to business owners and managers. So don't be surprised to find different sites and companies offering this kind of service.

Right now, companies and organizations can turn to providers of business consulting for a number of reasons. For example, a business may need some boost in terms of advertisement and popularity. This is true for many fledging businesses where their business management practices are no longer in tune with the demands of the market. When the business is no longer considered as a serious contender on the industry, then business consulting can be considered.

In business, it's all about getting noticed thus this kind of service can help. And advertising is something that can prop up the business, and firms providing consulting can help. There are some ways on how advertising can transform a so-so business into a best business. The simplest approach to advertising and spreading the word is the handing out of fliers, or going big by designing television commercials. Advertising should come in at the first launch of the business.

If the business owner is still a newbie in the business and doesn't know what to do and where to start, a business consulting firm can help shape up the marketing plan for the company. The consulting firm can help customizing the advertising message of the business. The firm is staffed with professionals that knows the business of the advertising and can suggest ways on how to place the business. The consultant also knows every outlet that can be used to spread the word about the business.

A business that is slowly losing traction and customer support in the market can also count on a consulting firm. Businesses that are having trouble attracting new customers can also tap into the services of this firm. The consulting firm can talk with the present customers of the company and learn how the company can improve. The consulting firm can also research why the business is not getting new customers and clients.

Perhaps customers are not doing business with the company because it does not carry a certain product or service that they are looking for. If this is the case, the consultant can make the proper recommendations and work with the owner to find out if it would be a good move to market and carry the product or service that the customers are looking for. The firm can also use different tools to come up with the recommendations for the business. A popular tool used is a survey, and this can be used to test how a product is being received by the client base. For example, the firm can commission a survey to test how the customers will respond to the new product offered. The survey will focus on the acceptability, profitability and customer satisfaction. Whatever the results may be, the consultants will report these to the business owners so that the proper tweaking of business management practices can be made.

This is the good thing about the services of a business consulting firm- they know what to do and how to do it. Whatever the needs and requirements of the business, they can offer the business solutions required by the business. They are the professionals that are trained in this field, and this is the reason why many businesses depend on consulting firms for advices and directions.

The consulting firm can also help a business owner come up with a reliable and updated business plan in tune with the times. The business consulting company can study the business and the market movements in order to come up with the best business plan for the organization.

Consulting firms can help struggling firms in many ways. Whether the company wants to reclaim a lost market or wants help in crafting a business plan backed by best business and business management strategies, a consulting firm can definitely help.

Dany Cooper

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Review of Franchise Websites

Those who want a home based business opportunity can take out a franchise website as a means to make money online. Obtaining a franchise of a particular business is convenient because you do not have to build the business from the ground up. All you have to do is follow the business model of the franchising company. HomeIncomePortal.com appears to offer a turnkey ecommerce website for the franchise of your choice.

In giving HomeIncomePortal a review, we must first have an understanding of franchise websites. Obtaining a franchise website is similar to getting a franchise for any business enterprise such as a fast food company. However, instead of having a brick and mortar store, you get a website.

If you check out the Home Income Portal website, one thing you will notice is that they will provide you with a fully functional website where you can start selling right away. Home Income Portal seems to offer a franchise or affiliate website where they provide administrative services and hosting in five independent domains. According to their site, they also provide technical support 24/7 and your website is fully automated.

According to the information they provide, you are required to pay a one-time fee of $60 plus a recurring $60 monthly subscription. If you have concerns that Home Income Portal may be a scam, the company's website states that all income from your franchise website goes directly to you.

HomeIncomePortal.com also claims that they are not involved in paying you commissions or affiliation fees. Earnings from the sales of products and services make up your income in this home based business opportunity. Several payment options are said to be available, including PayPal.

Franchise websites appear to be practical and affordable business opportunities. Perhaps their biggest appeal is due to the fact that you can run the business from your own home. Many people may find it daunting to set up and maintain a website, and this is where companies like Home Income Portal come in. Because they offer a fully configured turnkey website, it becomes easier for people to get their home business started.

What things should you watch out for in this kind of business opportunity? Obviously, you must know what kind of products and services you will be selling. While it is true that everything is automated and optimized, you have to choose your products wisely. Make sure they are marketable products that people want to buy. You have to know what products you will be selling and promoting so you can determine if you are interested in this opportunity and whether or not you have the marketing experience to succeed in the business.

Providing Outstanding Care For Its Customers

Chase credit card customer service, well-known for providing great quality service to their customers throughout the years. It has become an important part in the business. It is considered as an example of one of the great services that a credit card company can give to its customers.

Customer service for business centers has been trying its very best to attend to their customers concern and provide satisfaction. There are two divisions of Chase's customer service that attend to the two different cards that customers use: Personal and Business.

Personal - refer to cards that are for personal credit. Chase attends to concerns in regards to management of their customer's accounts online.

Business - refer to cards that are given to businessmen and owners to separate personal expenses from business ones. Chase assists customers that have problems regarding their credits in business transactions.

There is a provided toll-free number that you can call for any assistance that you need. At the same time, it attends as well to customers experiencing other problems with their credits even to customers who are not living in the U.S.

What makes Chase Credit Card Customer Service known?

It believes that customers are very important because they are the ones that makes the business alive, thus making them satisfied is their main goal. Their success is based on the excellent relationship they create with their customers. Customers can feel assured that they will be able to get the professional assistance that they need because of the existence of Chase customer service.

Chase Credit Card Customer Service contact information

For you to be assisted in your concerns, you can contact Chase Credit card customer service in many ways. To speak to a live representative, you can reach them by calling them through their toll free number. Do not hesitate to call and lay down your concerns regarding your card or any issue about it because Chase will be there to help you. You can also mail your concerns at their postal address or email them and get a reply in just a matter of four hours.

For a business to survive, it is very important to make your customers feel that you value them. Chase credit card customer service already proved that keeping customers satisfied will make the business grow and last for a long time.

Outsource Data Entry Jobs

With the advent of computer and data, data entry is a major part of almost every business. Businesses of almost every size have entry sections. The main purpose of these sections is to create and maintain all the data of the business. The greater the business is, the larger would be its entry section. Though these entry sections were popular seen in large offices a decade ago, but now trends have changed a little bit. Businesses prefer to cut their employees hence reducing their overall costs and expenses. Though it seems an unethical approach, but this unethical approach give rise to several small and large home based business.

Those people who were employed as data entry clerks and professionals in some large businesses, now own their own home based data entry businesses. Large businesses which seek for entry operators not only save their office space by cutting this section from their business, but can get same services at cheaper rates. Businesses prefer outsourcing entry work to these small home based businesses where the quality of work is never compromised. But the quality is same as it is found in professional offices.

When it comes to outsourcing data entry work to other small and home based businesses, there are a number of things to consider. Besides noticing the reputation and work portfolio of the home business, you need to be careful about various other things too. Since most of the clerks, operators and professionals are interviewed and hired over freelance networks, a business should understand that different freelancers are proficient in different types of work.

Popular data entry work is just typing, copying, cutting, and pasting data from one Microsoft Excel file to other. This copying and pasting is done in order to make an unorganized data an organized one. Similarly, some data entry tasks require printing and scanning jobs and everyone is not eligible or enough qualified for these types of jobs. Furthermore, if your business is related to legal document processing, then you should be very careful in outsourcing your work.

Expansion Pitfalls All Small Businesses Must Avoid

A great number of small business owners have a constant urge to expand. Of course, the mere idea of expanding and becoming a "big" business known to thousands and millions of people is fascinating. However, expansion is not all about finding a new office space and hiring new employees to fill the vacant seats.

There is much more to expansion than most small business owners realize. It is unfortunate that a larger population of these business owners is only focused on the benefits of expanding while completely omitting the challenges that entail business expansion. Let's take a look at some of the most common challenges, concerns and considerations before you expand your small business.

Major Pitfalls to Avoid before Expanding a Small Business

Outdated Information of Market Conditions

Too often, the decision to expand taken by most small business owners is based on information that is many months old. The important thing to consider here is continuous market research. An idea that seemed like it will lead the market a few months ago might be an average offering today.

For example, you might have landed in the market with a unique product, and its sudden popularity might make you think you should expand as soon as possible. What you don't realize is that the acceptance and popularity rate of your product can diminish with time. The big reason behind that is the competitors who can imitate anything that you have created.

It does not matter if you have patented the technology, method or the product itself before launching it. Your competitors will always find some way to imitate and emulate your products. A great example of this is Apple, the tech giant that patented the touchscreen technology. You can see there are more non-Apple touchscreen smartphones in the world today than Apple's own iPhone.

Regional Limitations

When you are expanding your business into new territories, you must know them well. You cannot expect people to react to your offerings, marketing methods, advertising tactics in the same way everywhere. In fact, cultural considerations are an extremely important consideration when businesses are expanding.

You don't have to be expanding to a completely new country to consider culture. There are many things that people in one state might love and people in another state completely hate.

These considerations have to be made based on the type of business you have. If your business has some cultural dependencies, you have to be very careful with where you are thinking of expanding your business operations.

Cash Flow Challenges

You need to be on top of your cash flow before you expand. Cash flow is important for any business, but it is essential when it comes time for expansion. It does not matter how much money you are expecting to come into the business after making the expansion move; it is going to require a lot of money upfront too.

This is the time when you have to stop thinking about the revenue and start focusing on your income. Your revenue does not tell you how feasible it is for you to expand your business. It is the money that you can use without affecting your current operations that matter in the expansion.

Look at your profits and see how big they are. If your profits are small, don't just assume that things will be fine and you should just make a move. You don't want to create a situation where not only you fail with expansion but affect your existing operations as well.

Technological Issues

The way modern businesses operate, technology goes wherever your business goes. Many small business owners think of expansion only regarding new office space, furniture, and new employees, but that's not the case. Today's businesses rely heavily on technologies, both hardware, and software. When your business expands, you have to support it with better hardware but what's more important is the software side.

Unless you are using a cloud solution for your database and other internal tasks and activities, you will have to spend a lot of time in arranging the right system. Syncing information across multiple locations and managing bigger databases with more accounts and information can be a challenge in the beginning.

Overestimating Business Popularity

Some businesses that start with a unique idea and get attention from media fast are able to reap great benefits from sudden demand spikes. This situation often makes business owners feel that they should expand as soon as possible. What they don't realize is that this is only the "trial" period for customers in their minds.

Even if they like your product, in the beginning, it does not mean they have put full trust in your offerings. A onetime purchase does not translate to loyal customers and repetitive purchases. You might have received a great response from customers when you started the business but wait for some time to know if your customers have started to repeat.

It is only the number of repeat customers that can tell you if your product/service has been a success. It could be a nightmare for you if you start getting negative reviews from your first customers as soon as you expand into new markets and locations. You could end up creating too much inventory that no one is willing to buy.

Underestimating Growth of Employees

While a lot of things get overestimated by new business owners before expansion, there are some things that they underestimate. Sometimes, business owners are not able to fully foresee their growth regarding employees.

They arrange new space to continue business operations in a new location without realizing that the growing number of employees will force them to expand their office space again. Not only is it inefficient but it could lead to a lot of hassle for the working employees if the expansion of office space takes place while they are working there.

Final Words

The most important thing to keep in mind when you have your own business, and you are considering expansion regarding business operations or product/service offerings, is patience. Always take your time before making a move because when you are a small business, you don't have a lot of support to recover from huge financial losses like large enterprises do.