Are You Opening A Small Business For Erroneous Reasons?

So you’re thinking about opening a small business. Why?

Many people consider opening a small business for all the wrong reasons. Then they are surprised to learn that their own small business doesn’t provide what they wanted.

If your reason is one of the following erroneous ones, think again before proceeding with opening a small business.

Opening A Small Business: Erroneous Reason 1 – You Want To Quit Your Job

Not liking your job is not a good reason for opening a small business. It’s much easier and less expensive to just find another job more to your liking.

There will be parts of operating your business that you may hate. However, most small business owners have to perform those jobs because they can’t afford to hire them done. Even if you can, you still have to do each job enough to know how to supervise your employees who do them.

You need a better reason for opening a small business than hating your present job.

Opening A Small Business: Erroneous Reason 2 – You Don’t Want Anyone Bossing You

You’ll have people bossing you even in your own business.

The people that loan you money will demand certain procedures to assure return on investment. Your clients or customers will require specific accommodations or quit doing business with you. You personnel will want considerations.

So if it’s complete autonomy that you’re wanting, you should consider a hobby rather than a business.

Opening A Small Business: Bad Reason 3 – You Want More Free Time

Forget it! To build a successful business, you have to work far more hours than you do to earn a salary from a job.

Unless you are prepared to give 50 to 60 hours per week to your business, you’re wasting your time opening a small business.

Opening A Small Business: Bad Reason 4 – You Want To Make More Money

Your business is not going to start providing you money immediately. Rather it is going to eat up everything you’ve got for a long time before you can start taking money out of it for personal income.

To build a business, you have to put everything the business makes back into the business for at least the first few years. So you need to expect less personal income through those years.

So if you have an immediate need to make more money, get a second job instead of opening a small business.

Opening A Small Business: Bad Reason 5 – You Have A Good Idea For A Product

Having a good idea for a product is not reason enough for opening a small business. You have to know that there is a market for the product already established. Having to take time to educate people about their need for a product can take more time than your business can survive without sales.

There has to be an unmet need for your product and potential customers willing to pay you a profitable price for it. Then you need some assurance that a competitor won’t copy your idea and get your potential customers.

You need more than just a good product to justify opening a small business

Opening A Small Business: Erroneous Reason 6 – Grandma Left You Money

Why do you think that opening a small business is the best investment for your money?

You can invest your funds in the stock market and have better odds of getting a good return than you can by opening your own business. For one thing, the businesses in the stock market are operated by people with far more business experience than you probably have.

Having some money to invest is not a good enough reason for opening a small business

Opening A Small Business: Erroneous Reason 7 – People Tell You That It’s Easy

Don’t believe everything you read and hear. Many people will tell you that opening a small business and making it successful is easy, but most of them are just wanting to make money off you. Running a successful business is lots of work. Anyone who tells you differently is telling you a lie.

People lie about how hard it is to start and build a strong, successful business because they have something to gain by it. Usually they have products or services that they want to sell you and that you will be willing to buy once you figure out how hard business is.

If you aren’t willing to work hard on your business, don’t bother even starting it

Conclusion

If you are considering opening a small business for one of these wrong reasons, be smart and don’t.

But there are good reasons for opening a small business. One is that you have a product or service that is needed and wanted by a target market whose members will pay you a fair price for it. But even then, you have to know how to market effectively to them.

To learn more about Marketing Your Small Business, get my free get my free DVD. To discover the secret to selecting the right target market for your business, see Market Segmentation

Small Business Opportunities. Big Rewards.

Many people considering a new business opportunity may equate small businesses to small profits. Well it may surprise you to find out that, according to the US Small Business Administration, “small businesses create two of every three new jobs, produce 39% of the gross national product, and invent more than half the nation’s technological innovation.” With such a high representation statistically, small businesses play a huge roll in today’s economy. Whether you’re interested in starting a home based business, retail franchise or one of the many internet based businesses, there are plenty of advantages that extend far beyond mere profits. So for anyone interested taking a break from climbing the corporate ladder and stepping up into the fastest growing section of the economy, the small business market is the right choice.

Be your own boss. This phase has made it into our everyday vocabulary and is usually placed alongside 2.4 children, picket fences, a chicken in every pot and everything else that makes up the American dream. What is it about being your own boss that is so appealing to the working American? It’s the same principal that our constitution is framed around; freedom, and with a small business, freedom is the name of the game. In addition to being your own boss, a small business allows you to choose your own path for your business. This can be expressed in your businesses core values or mission statement, and small businesses are much more conducive to carrying out personal or even political views since your small size will allow you to have your hand on the pulse of your customers. In a small business you set your own hours, work as much or as little as you want. You can lease retail or commercial space for your business or, as with many home based businesses and work at home franchises, you can choose to work from the comfort of your own home, saving money on operation costs and providing big tax breaks for your home office. Small businesses are also given more freedom from the government with less regulation than large firms, low-interest government loans and a slough of national and state sponsored government business grants available.

Noted business author James H. Gilmore in his book, “Authenticity” writes about consumers, “(they) choose to buy or not buy based on how real they perceive an offering to be. Business today, therefore, is all about being real. Original. Genuine. Sincere. Authentic.” Gilmore has written several acclaimed business books about the rise of the new experience-based economy and how today’s consumer is looking for more than just goods and services, they crave genuine people providing uniquely personal, lasting experiences. The small business owner has the greatest opportunity to capitalize on this emerging economy. With large corporations sending more and more work overseas, and relying more heavily on mass production, the small business owner can provide a truly customized experience to their customers that just isn’t possible for large conglomerates. By providing more personal attention to customers, the small business owner is able to cater to their every need, and learn what their individual customers want and need. This creates the ‘real’ and lasting experience that will keep customers coming back over and over again. Couple this experiential advantage with the ability to move fluidly from one idea, business model or demographic to the next, the small business has the flexibility and mobility keep up with the high demand and ever-changing needs of today’s consumer.

The big question on the minds of investors and entrepreneurs alike is profits. Sure, a small business is fun and exiting, but is it financially viable for the average person? Typical small businesses can rely on their personal interaction, higher standard of service and niche-type markets to afford them a higher profit margin that even big businesses. By making more money per sale or service, a small business can generate huge profits. Furthermore, a small business franchise can capitalize on all of the advantages of a small business, but can also save a great deal of money on research and development, marketing and branding and advertising. A small business or franchise may not be for everyone, but if you are looking for an exciting, personal and profitable alternative to the corporate world, a small business or franchise is definitely the best choice.

Find small businesses, home based franchise opportunities and information for entrepreneurs at Franchise Gator.

Small Business Loans are a Big Deal – It Will Make the Difference

Getting a small business loan is a big deal to a small business. It can mean the difference between being able to continue operations or have to shut down, or it can provide the necessary funding for a successful small business to grow or expand to the next level. A small business loan can also help a business overcome temporary market conditions and help it weather the storm until calmer conditions come back again.

A few important things that every small business owner should know about a small business loan. First of all it is not normally possible to get a small business loan from a bank or credit union in the first two years of operation. That’s because the failure rate for small businesses is greatest during this period and unless a business can provide security guarantees in the form of cash or property a small business loan may not be the best place to seek financing for the blossoming enterprise.

Secondly the bank or lending institution is much more vigilant about granting a small business loan than it is with other forms of credit like car loans or mortgages. That’s because they have little to seize if there is a default on a small business loan since almost all of its capital resources have already been allocated to make the business survive. They have a double set of criteria that a small business must meet in order to get a small loan, the ability to pay or repay and the creditworthiness of the business itself.

Thirdly, the bank wants to not only know that the business is or can be successful before they hand over a small business loan. They also examine the personal financial situation of the principals or owners of the enterprise to ensure that their credit record is both established and free from any unfortunate circumstances like previous bankruptcies or defaults on previous loans, personal or professional.

Once theses hurdles have been overcome, the banks, credit unions and other financial institutions are more than happy to offer assistance to their small business neighbors in the form of a small business loan or business line of credit. They also realize that successful businesses generate revenues and they want to ensure that the small business continue to take advantage of their services as their businesses grow and prosper.

Applying for a small business loan can be a nerve racking experience for even the best small business owner, but if you do your homework and make a solid business case then there’s nothing really to be afraid of. You simply do your best and follow the process and then like a hundred of other aspects of small business life you wait and hope for a positive solution to just another small business problem.

David Gass is President of Business Credit Services, Inc. His company publishes afree weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com

More Small Business Articles

Choice of genuine loan lender is crucial in small business financing.

Everyone knows now that there are options for financing .They know the types also but what is they lack is the information required by them to apply for which type that may best suit their situations. Over the years many global organizations have worked to standardize and integrate their businesses. With the help of such integration the end users would be able to access any financial information from any desired location, enhancing the organizations’ decision-making processes.

Internet is playing very crucial role in making people aware of different aspects of finance and loans. One can browse and locate members of these private sector associations who provide debt and financing to businesses. While exploring one can get to see many finance providing company’s websites that deals with this but one should be particularly diligent in researching loan lenders and only use reputable companies and trusted advisors.

Loan lenders are the one who decide whether to provide your business with financing based on an assessment of the risks and potential reward in doing business with you. The way assessment of the risk and reward of providing you with financing depends on their business model and the type of financing that they offer.

Some companies deal in a line of credit or operating loan. This is usually attached to your main chequing account and can be used to pay operational expenses, when there is not enough money in the business bank account. This type of financing is ideal when there are ebbs and flows in a business’ cash flow or one is looking for small business financing. It can allow you to continue operating normally, when you are waiting on payment from clients or during a temporary slowdown in revenues.

Line of credit can be of secured credit and of unsecured credit form. There are also some which deals in both. Entrepreneurs may also be able to secure their line of credit with personal assets. For example, many banks now allow individuals to have a home owner’s line of credit related to the equity in their home and this line of credit can sometimes be split into personal and business categories.

Choosing from them needs an analysis on company’s profile, their processing time, their credit terms, their interest rates and yes along with this one also has to assess their own funding requirements too. As sometimes to get financing, you need to demonstrate that you can pay back the money and that your venture will be profitable.

One has to be clear on the following points such as:
Is your business a start up one?
Are you developing a new product?
If you are taking to expansion of your business to new locations
If You are approaching new markets
whether you are purchasing new equipment
Since unsecured business credit line is relatively easier to procure as they do not usually require collateral, they have played an important role in the business development of smaller business houses. With the growth in credit sector there are many financial institutions working to help business owners with such credit lines. They also give a money back guarantee if they could not process the loan of min limit within specified time.

Macro business capital provides the business owners a perfect financial solution for small business financing with which they can fulfill all their business oriented financial needs with an unsecured business credit line. For more information visit at https://www.macrobusinesscapital.com/

Find More Small Business Articles

Why every small business must read this!

Whenever people are venturing into a new business, they give a thought to everything right from stationary expenses to major disbursals for their raw material. However, if you’ve noticed, people never even consider setting aside a part of their budget for installing telephone systems. In today’s times, the importance of communication cannot be underrated. It’s one of the most vital aspects of keeping a business healthy and strong.

The presence of strong technology has enabled even small businesses to flourish due to availability of easy communication channels. All you need today to communicate with people is an internet connection and a few phone systems for small business. Once you open channels of communication for your customers, they will find it better to do business with you. All customers need is someone to listen to them in case of grievances or suggestions. What companies generally do is provide a feedback form on their websites. However, filling a feedback form seems as good as talking to a wall to the customers!

Small business firms can get a simple office phone at cheap costs. There won’t be any need to take special connections from your phone service provider. You can contact a VoIP (Voice over internet protocol) service provider to install VoIP business phone system at your office. Using VoIP, calling becomes extremely reasonable. Even international calls cost a few cents, which is definitely cheaper than the local call rates levied by your local phone provider. Also, the kind of facilities you can enjoy at such reduced costs serves as an icing on the cake. Here are some of the most beneficial features:

* Simple interface: You can call a technician from your VoIP service provider for a demo. He will install a simple interface and instruct you how to use its different functionalities. The interface is really simple to operate and is designed in a very neat manner.

* Automated response system: The phones can be fed with an automatic response system. Till the time your phone is busy, the automated voice can inform the caller about your latest offerings, new developments in the company and even thank them for choosing your company as their first preference. It’s always good to keep the callers entertained while your phone operators are busy.

* Call forwarding/barring: You can avail call forwarding and barring facilities. When one of your employees is busy, the call can be diverted to the immediate next employee who’s free. Call barring facilities allows one to cut calls even without picking, just by looking at the caller’s number that flashes on the screen.

Calls can also be monitored to see if the employees are not making any personal calls! Just as a tip, you can buy an avaya phone, as it supports multiple functionalities.

Command Business communication is Australia’s Leading provider Office Telephone Systems and Business Phones.

Find More Small Business Articles

Common Hazards To Avoid With a Small Business For Sale

If you are planning to sell your business on your own, there are numerous pitfalls along the way that you need to avoid. The problem is when you don’t even know how to spot these dangers even if they are staring you in the face. There are two ways to go about the sale of your business: either you market your business for sale online on your own or hire a credible and experienced business broker to assume that responsibility. The first route is more stressful and labour intensive, particularly when you have no prior expertise in the field. The second way is obviously more ideal if you want to sell your business at the highest price in a shorter time frame at little extra effort on your part whilst you continue to concentrate on running your business.

Mistake 1: Lack of planning

Whether you are looking to sell or buy a business in Australia, it’s all about the timing. You will miss an opportunity to obtain the best price if you wait too long or act too soon. Perfect timing takes careful planning. The important thing is to never be impatient. On average in the current market it takes 6 months to a year to sell a small business. Even putting your business in the hands of a really good broker doesn’t guarantee a quick sales because there are too many external factors to consider.

For example, you should have a good record-keeping system so when it’s actually the time to sell, you won’t have to go back through a mountain of paperwork or incomplete data just to show the status of your business at the time of the sale.

Mistake 2: Trying to take on too much

Just consider the task involved. You will have to carefully prepare the listing of your business, design an advert or some brochures, come up with proactive measures to aggressively market your business, available be always when the prospective buyer comes to call, contact a tax professional or legal counsel to handle the paperwork, and spruce up the place to add value to the property. Even then, there’s no guarantee you are going to get the maximum possible price for your business. These days most marketing takes place through sophisticated and professional websites most of which are not available to the general public, which means you will often miss the opportunity to reach the target market.

If you can’t make heads and tails about the business for sale market, taking on too much can be very dangerous indeed. Do notget too caught up about the broker’s fees because a professional broker can often obtain a higher price in the market which will more than pay for these costs when you put up your small business for sale. It’s the classic case of failing to see the forest for the trees.

Mistake 3: Jumping the gun

Jumping the gun is an idiomatic expression to denote over-eagerness. Just because somebody makes an offer does not mean you should immediately accept it. This is the most common mistakes by first-time sellers who did not hire the services of professionals.Knowing how to negotiate to obtain the best deal is very important when you sell one of the largest assets that you own, your small business for sale.

Victor John is an expert author and has years of experience in small business for sale, Online Business For Sale & buy business in australia

Find More Small Business Articles

How to get the most out of small business phone system?

Opening up a new business and establishing it in the world so crowded with entrepreneurs is not as easy as it might look. It is important to go for something easy and cost effective for the development of communication systems within an organisation and this might be getting on with the small business phone system. This is a new way of getting the communication done in your offices especially if you are a startup company. Small office phone systems are a huge hit even among the big organisation because they save you a lot of money and come with great deals and discounts.

Phone systems for small business are easy to install and help you get through the problem of free flow of communication easily. This is because even the government connections provide huge benefits over the installation of such devices. There are many examples like the VoIP system of communication also known as the IP telephony where long distance video calls can be made at cheaper rates.

With the help of VoIP technology you can share faxes and video files while talking on the phone simultaneously so that the communication process becomes easier and more understandable and reliable. The phone office systems include huge challenges of making the data getting transferred at the right times and also in the right ways so that the person at the other end is able to understand the entire communication easily and interpret it in a way in which you really wanted.

There are many communication system providers available in the market, but the main concern is the cost effectiveness of these available connections. Since government is also helping the medium and small businesses to venture out on their own, this is why the government organisations also have provisions of making it easier for the small and mid-size business to come up on their own. Thus, government also provides cheaper telephone connections for medium sized and small businesses so that they can stand on their own and make something for themselves and the people they employ.

If you want to make good in your business then ensure one thing that you cannot cut the ways in which communication happens at all levels and if you do that then only you will be at loos. Cutting down on the communication system will create misunderstanding, misinterpretations and a complete chaos in your organisation because wherever the communication will stop flowing the misunderstanding will start growing and it will further create deeps holes in the entire work flow of our organisation. So for the best of everyone and everything in your organisation make sure that you go for small business phone system and turn a small organisation into a big one.

Command Business communication is Australia’s Leading provider ip phone and data cabling and business voip.

Related Small Business Articles