Are There Benefits to Government Regulations?

June 25, 2011 by Leave a Comment

Some business owners love to complain about the negative effects that government regulations have on their industries. Those that are completely honest and insightful, though, often see the advantages of strict regulations. When you understand these advantages, it becomes easier to see how regulations can actually benefit small businesses.

The Race to the Bottom

Pollution

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In a world without any regulations, companies cannot behave ethically. It isn’t even a possibility. Consider, for instance, a car manufacturer that wants to pay employees a fair wage that allows them to live well and support their families. When this company faces a manufacturer that doesn’t care about employee happiness, it simply cannot compete. The company that pays its employees paltry wages can charge less for its products. If the ethical company doesn’t cut its wages, then it will cease to exist because consumers will buy the cheaper product.

Large Companies and Small Companies

Small companies are at a particular disadvantage when it comes to unregulated industries. It’s often easier for large companies to participate in questionable behaviors for the sake of higher profits because no one within the organization bears the ultimate responsibility for those actions. Small business owners, however, often live in the communities that they work in. They interact with their employees; their kids play in the same parks; and they drive on the same roads as everyone else in the community. This forces them to accept responsibility for their business’s actions. Small businesses don’t necessarily need regulation, but they do need protection from larger companies that would squash them out of existence.

How have regulations helped or hurt your small business?

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Use Your Business Plan to Find Funding

June 23, 2011 by Leave a Comment

If you plan to borrow startup capital from a bank or other lender, then you will probably need a solid business plan that shows how you plan to turn your idea into a successful company. There are several features that you should include in your proposal. Including them should help you find a lender that is willing to take a chance on you and your idea.

Start with an Executive Summary

Business Plan Presentation at FSG 2009

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Your business plan should lead with a strong executive summary that provides all of the pertinent information that the lender needs to make a decision.

Market Analyses

After the executive summary, include a detailed market analysis that describes your target market and how you plan to meet consumer need in a way that differs from other business in your industry. If you have any marketing ideas, include them here.

Description of Your Company

Your company description should show lenders how you plan to structure your business.

Describe Management Structure

You will also need to include a description of how you plan to manage your business. Include essential job titles and explain their roles in the organization. If you already have candidates for some positions, you might want to include information about them.

Funding Request

This is where you ask the lender for a specific amount of money. If you don’t ask, chances are you won’t get what you want.

Business Financials

Your business financials should justify your funding needs, establish a plan for creating profit, and set specific goals for your business.

When you use a professional business plan, you have a much better chance of finding a lender willing to take a chance on you.

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Can Internet Phone Systems Benefit Your Business?

June 22, 2011 by Leave a Comment

 

Polycom

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You want to make sure that you present your professional side to potential clients, but that doesn’t mean that you want to spend a ton of money on a professional phone answering system or secretary. Internet technology might allow you to save money without compromising your professionalism.

Call Management

Many Internet phone systems make it easier for small businesses to manage incoming and outgoing calls without spending a lot of money on hardware. For instance, if you operate a call center with 20 employees, the phone management system might maintain a queue of upcoming calls. The next available employee is then assigned that number to call. This takes a lot of guesswork out of the calling process and helps ensure that your employees work efficiently.

On Hold Messages

An Internet phone system might also allow you to set up an on hold message that will come on when all of your lives are busy. The on hold message could be something as simple as a song that lets customers know they are connected to you. Of course, you could also program the message to deliver important messages about your company’s services and products. That way, you get to squeeze in some additional advertising while customers wait for the next available service representative.

If you have used an Internet phone system before, what were the biggest advantages and disadvantages for your business? Do you think that they work as well as traditional phone systems that rely on hardware rather than Internet-based software?

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How Can the SBA Help Your Small Business?

June 21, 2011 by Leave a Comment

 

Image representing U.S. Small Business Adminis...

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Starting your first small business requires a lot of steps that you might not fully understand. The US Small Business Association, however, offers numerous tools that can help you create and manage your small business successfully. Before you try to start a business on your own, you should learn more about how the SBA can help you.

Small Business Loans and Grants

Starting a business requires capital. It isn’t easy to find low-interest capital that meets the specific needs of small business owners. That is why the SBA has several loan programs that are designed to meet long-term and short-term lending needs. The SBA can also help you research grant opportunities that are right for your business.

Writing a Business Plan

Before you can get funding from an outside source such as bank or investment capital firm, you will need a professionally written business plan that shows how you can turn your ideas into a successful business. The SBA offers advice on how to write your own business plan. That way, you can save money without compromising your investment opportunities.

Finding a Mentor

If you don’t have any business management experience or you are unsure whether you should try to start your own business, then use the SBA to help you find a mentor that can help you make important decisions. A mentor can help you avoid common mistakes so that you can profit sooner than other people starting their first businesses.

Have you used the SBA to make your business more successful? What tools worked best for you?

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Dos and Don’ts of Business Finance

June 16, 2011 by Leave a Comment

The most challenging thing about running a business is dealing with the finances. Many small businesses do not have the money to hire an accountant and have to manage the money themselves. Business financing is difficult because you have to plan ahead for unforeseeable costs, cover your current expenses, and find a balance between profits and costs. Here are some Dos and Don’ts of business finance.

Dos and Don’ts

  • Don’t rent a building or office space that is too large. This is a waste of space and energy cost. Find one that meets your needs, but has minimal costs.
  • Do hire talented individuals who will help your business succeed, but don’t pay them a higher wage than is reasonably acceptable.
  • Don’t buy the most expensive products if it is not necessary.
  • Do think twice before making decisions that affect your finances.
  • Don’t take out a larger loan than you can afford to pay. The interest will come back to haunt you. Do look for reasonable installment loans that are privately funded.
  • Do treat your employees fairly and with respect so that they feel valued and will be the most productive while at work.
  • Do spend the necessary time to train your employees so that you reduce the amount of mistakes that cost your business money.

There are plenty of other dos and don’ts of business finance, but this list will help your business get on the right track to success. Make sure you understand all of these tips before making financial decisions that can make your business go broke. Business finances really are possible to manage, if you take the time and care they require.

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How to Build a Mobile App for Your Customers

June 5, 2011 by Leave a Comment
This is a simple diagram known as a Business O...

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Mobile applications are the lynchpin of a successful business strategy. Whether your business model involves selling your apps or giving them away for free as part of a larger plan, you can generate a lot of interest for what you are intending to sell through well made, properly distributed apps. Of course, making the app can be a challenge worth overcoming. Let’s talk about some of the most important parts of creating a solid app.

First off, you need to know your customers. While a lot of people have tablets, not everybody uses them for the same purposes. While some people are gamers and entertainment seekers by nature, other people are all about finding the best ways to make their businesses work better. Sometimes this involves budgeting, while other times it’s more about finding the right kinds of partners for your business. While partnerships require more human interaction than most apps can provide, they can filter out what you don’t want and move you toward what you do. When you create your app, keep your focus squared on the kind of user your customer actually is.

After you have your customers firmly pegged, the actual coding needs to come about. While this isn’t a coding tutorial, it is important to keep your code flexible enough that you can update it later without having to scrap most of the app. If you can find a solid formula, you can use this system to create future apps with similar integrated functions. After all, the best thing about the up sell is how your customers will consider you thoughtful for satisfying more of their needs.

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