Posts Tagged ‘Small Business Owner’

How Small Businesses Waste Money

Tuesday, July 1st, 2008
small business management
Kevin Sinclair asked:


Most business owners subscribe to the thought that you “must spend money to make money”. This can be true, but you also must know exactly where that money is going and the results it brings. A small business owner never has any money to waste.

Some ways that your business might waste money includes the following:

1. Manage your credit cards - If you have several cards, develop a computer program that will show you the exact balances, due dates, and the interest rate you are paying. Always be aware of other solicitations that save you money and possibly change your balances over to a new company. If you have any employee cards, see if you can set a limit on them. If not with the credit card company, make sure that the employees know their limits. Manage your credit cards wisely and never, ever miss a due date.

2. Develop an annual plan so you know where you will spend money. This helps you in several ways. The business person will be aware of what portion of the profits are going to advertising, towards incentives, towards accounting and other internal expenses, etc.

3. Do not over-purchase any products or services for a business. If you buy in bulk, the money is tied up and a place must be provided to keep the extras and that might be costing money not needed to be spent.

4. Developing an advertising budget and knowing just what resources to use is key to keeping money under control in a small business. You must advertise, but you also must get value for your money or you will soon be out of business. Keep a record of how much is spent, can you get payment terms, when is the most efficient time to advertise your particular product or service to get the most value for the dollar. Every dollar must be accounted for in advertising because the lifeline of your business depends on new and paying customers. Advertising is the way to get the word out to the community or the internet.

5. A small business owner will sometimes be under self-induced stress to manage all aspects of the business. Sometimes, leaving the control and decisions to others that are qualified is the best way to manage the business. Releasing control may be hard to do sometimes, but in a lot of businesses, money can be wasted because the owner cannot possibly be as efficient as the person who has studied or is knowledgeable about a particular field. For instance, if a business owner does not know accounting, many mistakes in reporting income and taxes can be made. A qualified accountant can possibly save more than the cost of their services in reduced taxes.

Take a hard look around your business and do not let anything be set in stone if saving money is the goal. Challenge everything that will cost money and see what can be done to change the situation. Any money that is saved, is money that can be put back into the business either in profits or in growth.

A business owner wants their business to be successful and will work hard to sustain growth. A business owner wants a way to continue making and growing money from a product or service that is interesting to them. After growing a business and being smart with cash flow, many business owners will sell their businesses only to start another business.

The reason is that business owners are independent types and challenges are rewarding when met and faced. Saving money through every day operations will help the business owner to meet their financial and emotional goals.



Colleen

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Small Business Credit Card Benefits

Friday, May 30th, 2008
small business management
Debbie Dragon asked:


Many new small business owners do not have a credit card account specific to their business. They might use a personal credit card to make business related purchases every now and then, but the majority of new business owners overlook the value a business credit card may provide to their business.

There are many reasons why a small business owner would benefit from having a credit card account specifically reserved for their business use. First, though, let’s discuss the typical reasons why a small business owner would avoid a credit card!

Top 6 Reasons Small Businesses DON’T Have Credit Cards

1) Business owner is afraid that they will overspend if they have access to a credit card.

2) Business owner thinks it’s complicated to apply for and receive a credit card under the business name, or feel they don’t have strong enough credit to get one.

3) Business owner thinks finance charges and interest rates will be expensive and cost more money than the convenience of having a credit card is worth.

4) Small businesses don’t make enough purchases to require a credit card.

5) Business owner likes the control over spending by employees when a check or cash has to be issued for purchases.

6) Business owner applied for one and was denied.

Is the reason your small business doesn’t have a credit card found on this list? If so, you might be surprised how the benefits of having a credit card for your business can help propel your business forward.

Credit Card Benefits for the Small Business Owner

While many of the reasons small business owners decide not to get a credit card for their businesses are valid, there are many advantages to the businesses that do decide to get a credit card.

When you make all of your business purchases and pay for each expense related to the company on a single credit card, you have an easier time with your bookkeeping. You can simply refer to your credit card statement each month, or on a quarterly or annual basis in order to see your purchases and expenses at a glance. You can cut one check each month to pay for all of the purchases, making it much easier to manage your business checking account, also.

Having a company credit card allows you to get additional cards in key employee names. If your office manager handles the office supply purchases, you can give her a card to make those purchases with, for example. There is less time required of you to approve or deny his or her orders and no need to cut a check when the manager is ready to place the order. Simply give the employees with cards a spending allowance and you can quickly monitor the spending of each employee by glancing at the card statements.

If you select a credit card for your business that offers a rewards program, you will benefit further by achieving the rewards under that benefit. As a business owner, you would decide if you have reason to purchase airline tickets, or if you would benefit better from a card with cash back or special merchandise purchases with the points you’ve earned.

Having a business credit card opens the door to many opportunities for your business that you wouldn’t have if you avoided having a card. Be sure to take these benefits and advantages in consideration when deciding whether or not to apply for a business credit card. If you fear your business credit isn’t strong enough for a card at this time, you can opt for a prepaid card or a secured credit card to build your company credit history. You’ll still receive all of the benefits and conveniences of a credit card, you’ll just need to take the extra step of funding a prepaid card before you can use it.



Carolyn

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Posted in Finance | No Comments »

Small Business Spoiler - Procrastination

Wednesday, January 2nd, 2008
small business management
Lorraine Cohen asked:


One of the most common issues that comes up for business owners is procrastination -wasting time, putting obstacles in the way of taking action towards goals, making excuses for delays, creating confusion/ ‘busyness’ etc. Procrastination is a self-defeating behavior.

As human beings, we are adept at creating convincing language that allows us to rationalize taking specific action or not taking action. We become masterful in presenting a logical sounding viewpoint that successfully defends our position to procrastinate. In this way, we give ourselves permission to step into avoidance, despite the results we say we want!

Having a game plan with action steps can foster procrastination. Over time we develop an automatic patterned response to change, convinced that what we are doing is moving us forward. In reality, we’re just playing the same old game, creating the illusion of moving forward. Bottom line – get real by getting honest with yourself.

As a small business owner do you:

1. Keep saying you’re going to do something and don’t follow through? Saying one thing and doing something else? The intended action continues to exist in the future as a goal, always out of reach without being fully actualized. The dangling carrot.

2. Prioritize other things first before you can get to what you say you really want? Somehow the starting time keeps getting pushed back. Are you a yesbutter? Yes, I want this but.. Yes I’m excited to get going on this, but… yes but…, yes but

3. Overextend (over commit) so much of your time you never quite get to some things because you’re too busy? Some people think scheduling is just a time management problem. In actuality, it’s about making better decisions in how you allocate your time. What do you always manage to fit in despite all the busyness?

I could go on citing examples.

Working with more than 1500 people over the last 17 years, I have often found fear at the root of procrastination. Fear of failure/success, change, unknown, can be power-full drivers to avoid taking action. The first hurdle to address may be in recognizing patterns of procrastination. People can become so proficient in rationalizing avoidance they lack the clarity to see the creative forms of this behavior. Furthermore; self-defeating behavior is caused by self-defeating attitudes. Identifying internal attitudes and assumptions is a key element in fully dismantling self-defeating behavior.

Common objections to justify procrastination:

1. I can’t! I’m too fearful! I’m not strong enough! Is that really true? (Or is this your drama?) Can’t??? Try won’t – life is about making choices.

2. I can’t afford to! How often do you use money as an excuse to deny having something you need? Is there a cost to you to NOT take action? If there is a cost, at what point is the cost too high a price to pay? Consider short/long term value for a questionable investment.

3. I don’t have time! How much time is needed to take one step? What changes can you make to open up some time?

4. Now is not a good time! It’s not the right time! When is? What would the right time look like?

5. I’m not ready! What needs to change for you to become ready? What does being ready look like?

6. It’s too hard/too big! What smaller steps or ways of looking at it will make it more manageable/attainable? What support/help is available?

Procrastination means you never have to commit to an action make a mistake, fail/succeed, take a stand on reaching a goal (take responsibility to make things happen) change your life or yourself. You may make some progress, but continue to hold yourself back. Progress occurs at a controlled, manageable pace, enough to keep you interested and wanting more - but always short of reaching your heart’s full desire.

Are you a procrastinator? How is procrastination impacting your business success?

Consider the following questions:

• What are the mechanisms/reasons/excuses you use to block your success? – i.e. over-promising and under-delivering, time management, poor marketing, negative self-talk?

• What do you tell yourself (and others) to make your procrastinating behavior, okay?

• Have you really made the decision to be successful?

• What beliefs do you have about success? Are they true?

• How will your life change if you change this behavior?

• Who will you become if you change this behavior?

In the book, Get Out Of Your Own Way, the authors, Mark Goulston, MD., and Philip Goldberg say “ There are, of course, many reasons why people procrastinate: self-doubt, boredom, fear of failure, the feeling of being unready or unprepared and so on. But these feelings by themselves don’t necessarily lead to procrastination. Often, what tips the scales is going through them alone, with no one to help you, bolster you, or cheer you on.”

How to stop procrastinating?

1. The first step is to make a decision to have the success you want. Say “yes!”

2. Then create the vision you want in detail – paint a picture that excites you to move towards achieving that result. You must have a good marketing/business plan!!!! This is your road map to success.

3. Begin identifying your action steps and break them down into small steps with timelines.

4. Design a defensive strategy to deal with your procrastination. Define concrete actions. ie. You have warm business leads but don’t make the calls. One suggestion – make it a game so that making calls might be fun. Be creative.

5. If you’re a solo-entrepreneur being a part of a network is critical so you don’t become isolated.

6. Join a mastermind group or form one.

7. Need more help to stay motivated and on track? HIRE A COACH!

One thing I’ve come to know is that people put time and energy into what they love - what’s most important to them. I’ve watched people move mountains, jump over hurdles for something they love – total buy-in. I know when I’m working with a procrastinator or with someone who really wants to move by what they are willing to do and unwilling to accept to get what they want. People who are ready to take action are too excited to wait and are willing to commit to whatever action is needed to reach their goals. If you keep pushing your dreams away by continuing your love affair with procrastination…..it’s your life, it’s your choice.

Copyright © 2005 Lorraine Cohen. All Rights Reserved

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Lorraine Cohen, Business Consultant and Life Strategist brings more than 25 years experience in personal coaching, business development, psychological counseling, and sales to over 2000 business owners, entrepreneurs, and executives from a wide range of industries. Focusing on the whole person, Lorraine coaches people from the inside out; to implement innovative strategies that integrate their heart, integrity, and spirituality. An expert in breaking through fear and roadblocks to success, she empowers people to take linear leaps that reshape their world. To learn more about Lorraine Cohen’s services, products, and programs, visit: www.powerfull-living.biz



Larry

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