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Tag: Owners

  • The Real Reason Why Small Businesses Can’t Get Approved for a Loan

    The Real Reason Why Small Businesses Can’t Get Approved for a Loan

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    Oh no, not again. Yes, that’s right, I’m not going to go there… at least not for today. There’s no shortage of excuses and reasons why small businesses can’t get approved for business loans. It never fails to amaze me the coverage this topic gets especially when the national economy goes into recession or when major political races are at stake. Yes, I agree that small business growth and success is the economic back bone of the US and also, that more than 60% of the US workforce are employed by small businesses. But where I get off the group think is when it comes to the lack of financing for a small business with a business loan. In this article, let’s explore the REAL REASON that small business don’t qualify for loans and the truth may even surprise you.

    It’s Deeper Than Statistics

    I love numbers and even better, I love reading financial statements and the notes. The love for numbers did not become a passion for me in the world of small business lending until I came to understand that the financial statements tell the story of a business. Similar to the story behind the financial statements, there’s a story behind the statistics stating that small business owners can’t get approved for loans especially if they’re of a certain ethnic group, gender, and / or industry. I’m not completely washing away the reality that there’s a shred of discrimination in our world… hey, we live in a broken society with broken people. However, a large part of this thinking (small business owners can’t get a loan because of skin color, gender, etc) is just simply untrue. I’ve been on both sides of the fence so to speak in the world of small business lending. I’ve worked for a big bank, and I’ve worked for a not for profit community development financial institution and it’s always the same. The number one reason why small business can’t (and don’t) get approved for loans is due to the considerably large operating risk that exists in these businesses.

    Operating Risk: It All Starts with You

    What does operating risk mean? Well, here’s a question to bring some clarity. What speaks more to sustainability: a business that’s been operating for at least one year or a business that’s still in the owner(s) mind? I’d go with the first option. Operating risk means that you have and continue to execute on your business plan(s) and that the business is cash flow positive (i.e. returning a sustainable profit margin to cover costs and make you money). Here’s the sad truth: not many small businesses get to this point. Most if any, within two years are still trying to figure things out. OK, granted, there are levels to this particularly when you observe the diversity of businesses. However, I’m speaking to the ones that endeavor to obtain a business loan.

    In closing, I offer a couple of ways to minimize your operating risk and increase your chances of getting approved for a loan. (1) Grow tough skin and learn to survive. The game of business is one of survival. Most days, things will not go your way and you just have to stay the course, be adaptable, and stay true to the business mission. (2) Never forget the 3 P’s – Production, Processes, and Personnel. Become efficient in the production of what you offer for sale, create and put in place processes to enhance production efficiency and ultimately the customer experience, and finally, hire, train, and invest in people who share your vision for the business.

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    Source by Pierre Pinkerton

    Views: 1

  • Latest Metrics for Small Business Owners to Measure Their SEO Success

    Latest Metrics for Small Business Owners to Measure Their SEO Success

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    Let's face it – SEO is not easy for any business. It becomes even more complicated when you've limited money, time and resources. According to the latest Cluth Survey "More than 36% of small businesses have already an SEO strategy and rest 23% are planning to develop one."

    In order to maintain and develop a long-term SEO strategy, it is important for small business owners to understand the best way to measure their SEO success. As a small business owner if you are looking for ways if your SEO strategy is working, then here are the three SEO success metrics that can be helpful.

    1. Traffic Retention

    2. Backlink quality

    3. Conversion rate

    Let's have a look below how these three metrics can help you measuring SEO success.

    • Traffic Retention for measuring quality search audiences

    Every business wants to draw the attention of quality traffic to their website. Here Google Analytics play a crucial role. It is one of the effective measures to know what type of audience you want to target and what type of audience is visiting your website. There are two metrics in particular that can help small business owners to decide the quality of your search traffic. These are – Scroll depth and Bounce Rate.

    • While Scroll depth determines how far your visitors scroll down specific web pages. If they scroll down the entire page, it means your audience is keen to read the topic.

    • Bounce Rate refers to those searchers who visited a single page of your website but then left your site without browsing other pages.

    • Backlink Quality defines the impact of Inbound Links

    The quality of a backlink is measured by the total number of links from sites with high Domain Authority. To know the quality of the backlinks used in your site, you need to make sure that these are relevant and endorsed from new domains that can have more impact.

    Although you can't control all links coming to your website, you can target the quality of those links via outreach to guest posting. Make sure your targets should include websites that offer domain authority, a new audience, and website relevancy.

    3. Conversion Rate Offers Insight about SEO strategy Effectiveness

    Conversion rates play a major role to measure small business performance metrics.

    It enables you to know how well you are achieving SEO goals, along with the scope of success.

    SEO success largely depends on generating many leads as possible. The conversion rate is the total number of website visitors who are becoming your potential clients. By tracking this, small businesses can easily measure the impact of their SEO on their revenue.

    Wrapping the post

    Every business needs context and time to measure and earn SEO success. By understanding the right metrics for measuring SEO success, you will surely lead the race and become a winner.

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    p.western {"Liberation Serif", serif; font-size: 12pt; so-language: en-IN}
    p.cjk {"Noto Sans CJK SC Regular"; font-size: 12pt; so-language: zh-CN}
    p.ctl {"FreeSans"; font-size: 12pt; so-language: hi-IN}
    a: link {so-language: zxx}

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    Source by Triveni Thakur

    Views: 0

  • Why Do We Love Cats So Much?

    Why Do We Love Cats So Much?

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    Kittens are immeasurably cute. If you’re having a bad day and you walk up to a kitten, I know they will be able to make you feel better. You will catch yourself smiling every now and then, because who can resist their charm? No one.

    Each cat has its own distinguishing characters and personalities. They feel like tiny humans to us who own one or two cats, and we treat them as such.

    When cats just want their own “me-time”, as their owner, those are the times you find yourself craving for their attention.

    And you get extra excited when they do want your attention. They probably just want to use you to rub their belly or pet them, but it makes you feel good nonetheless.

    Cats are natural activists, although they prefer indoors. When they’re not plainly ignoring you, or sleeping, they could just decide to knock a few things off your tables because they know they can. They would move around the house knocking things over, trying to fit through tiny spaces or even visit your laundry room for a quick “let me sit on this clothes and scare my human” activity. Whatever it is they do, we always love them for it.

    There are numerous reasons as to why lots of people love having dogs around – they would always greet their owners at the door upon their return, they enjoy having their owners love and attention, and they are always happy having their owners around – which are almost similar to that of cats too. Many people think that cats don’t like hanging around with their owners in the house, but us with cats know them best. We know that they’re not as anti-social as their reputation precedes them to be.

    To those of us, myself included, who own one or more cats at home, we can boldly say that we rarely ever truly feel alone. Those fluffy little things are godsend. I have gotten so attached to mine that I don’t think I could ever live without cats anymore.

    Even when my cat prefers to stay on his own and refuse to engage with me – since cats don’t share physical contact with humans as much as dogs – do, just knowing that my cat is with me is enough comfort to get me through the day.

    There would be times when my cat would behave in an annoying manner, and even though what he did was wrong and he deserved to be punished for it, I would still forgive him from the bottom of my heart. How could I not? Cats are the cutest when angry.

    Just like any other pets, cats also feel very much like a child – even when they are older. To people who love taking care of their children, or any children, cats also feel quite similar to them in certain ways:

    • They need you constantly;
    • They need your attention and affection always and;
    • They are always happy when you care for them.

    Bottom line, having a cat is a great bonus for those who love being needed and appreciated.

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    Source by Karina Popa

    Views: 0

  • Words Can Help Heal – Sending a Pet Loss Card

    Words Can Help Heal – Sending a Pet Loss Card

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    Anyone that has ever owned a pet knows that no matter how small an animal is, they each have their very own personality. Pets appreciate you. They look forward to seeing you daily. They make you feel wanted and needed. They can get you out of a funk. It is no wonder that we get attached to our pets.

    Losing a pet is one of the hardest things that a pet owner will ever have to face. When someone loses a husband, a parent, or a child, we automatically think to send a card. We sometimes underestimate the importance of sending a pet loss card to a loved one. It is equally important to show you care by sending a heartfelt message. Simple words can mean so much to someone. It is comforting to a person who has lost a pet to know that their loved ones recognize their loss and respect their feelings of grief. The support of close friends and family during any loss can make the process a little easier to go through.

    There are many way to express sympathy in a pet loss card. Here are some tips when writing words of comfort in a pet loss card:

    1. Make sure to use your loved one’s pet name. Instead of saying “sorry about your dog”, say “sorry to hear about Max”.

    2. If you have a specific story that your loved one ever talked about, mention it. It shows that you cared about the life of the animal and that not only were you listening, you were thoughtful enough to remember it.

    3. Depending on your friend’s beliefs, mentioning the pet being in heaven can be comforting.

    4. A lot of the time, pet owners feel some sort of guilt for having to euthanize a pet. It is important to let them know what good pet owners they were. Remind your loved one how awesome they were to their pet, and all the special little things they did to make their pet feel loved and special.

    5. Offer your time. Mention that you are available any time to get a bite to eat, go out for coffee, or just listen. It helps not to be alone when you’re grieving. Although a lot of things probably aren’t exactly fun right away, doing things to keep your loved one’s mind off of the loss of her pet can help with the healing process.

    No matter what you choose to say, make it personal. Remember that this pet played a huge role in your loved one’s life, and that your words mean more than you might know.

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    Source by Lisa Falsetti

    Views: 0

  • Problems Encountered by Nigerian Entrepreneur and Possible Solutions

    Problems Encountered by Nigerian Entrepreneur and Possible Solutions

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    The success enjoyed by most industrialized countries can be attributed to the role played by technological innovation and entrepreneurship, both of which continue to drive their economies today. These two factors are seen as key components for the industrialization and development of African countries. The Nigerian government has recognized this fact and has taken measures aimed at promoting and cultivating the entrepreneurial culture in our country. Through the Nigerian Investing Commission (NIC), our government has in the past introduced a policy that required university students regardless of their area of study to take courses in entrepreneurship. While our government is putting extra effort in promoting entrepreneurship in Nigeria, there are still a number of problems that a Nigerian Entrepreneur faces. Below are some of the problems encountered and possible solutions.

    * Diversifying the Economy

    Though our country’s economy has over the last couple of decades relied heavily on its oil production, we must find ways to diversify our economy and avoid the over reliance on oil. Like other developing countries, Nigeria is facing an increase in its unemployment rate that is now at 6 % and is on the increase, with many graduates finding it hard to get jobs while most of those who get jobs are underemployed. This coupled with the global financial crisis in which massive numbers of employees are being laid off; entrepreneurship is seen as an essential key if we want our country to achieve its ambition of being an industrialized nation by the year 2020.

    * Unfriendly Business Climate

    Being an entrepreneur in Nigeria requires great determination as practicing and potential business owners are faced with countless challenges. Nigerian’s business climate should be made welcoming to those in the Micro, Small and Medium Enterprises (MSMEs). The role played by these MSMEs should not be underestimated since majority of the thriving businesses fall in this category and for us to achieve our goals, adequate attention and support must be directed towards these institutions. To be able to help and protect entrepreneurs, we must first have a clear idea of the challenges facing our entrepreneurs in their pursuit of making Nigeria a prosperous country.

    * Lack of Credit Facilities

    Potential Nigeria entrepreneurs go through many hardships when trying to access credit for their businesses. Though there is a wide range of financial institutions that offer business loans, they usually charge high interest rates deterring aspiring entrepreneurs. For instance, major banks have pegged their lending rates to as much a 28% deterring potential entrepreneurs who are mostly low income earners. Other obstacles faced by our entrepreneurs include severe collateral conditions set by banks and other lending institutions. Though our government through the Central Bank and the Banker’s Committee came up with guidelines requiring banks to set aside 10% of their profits for funding MSMEs, majority of these banks have been reluctant to do so. This has led to the emergence of micro-finance institutions which though helpful are not sufficient for meeting the financial requirements.

    * Multiple Taxation

    One other sensitive challenge that is encountered by majority of Nigerian entrepreneurs is multiple taxation. Although we have a responsibility of funding the government through paying taxes, most of the taxes charged on entrepreneurs are not lawful and have the effect of increasing the cost of doing business. Although Nigeria’s Companies Income Tax Act (CITA) has approved only 39 taxes and levies, there are over 500 various levies and taxes that are imposed by state and local government agents. These taxes are questionable and in the case where they are genuine, they are mostly duplicated and this has the effect of increasing the cost of doing business.

    * Poor State of the Country’s Infrastructure

    The state of our infrastructure can be deemed to be a nightmare to both entrepreneurs and the rest of the country’s population. With the existing infrastructure deteriorating and in some places it is non-existent; the cost of doing business has tremendously gone up. The state of the country’s road network makes it hard for entrepreneurs in the agricultural sector to transport harvested produce from farms to processing factories. According to a report released by the World Bank, Nigeria’s pace of socioeconomic development and growth is way below what we can achieve. This is mostly because of the erratic supply of electricity which has negatively affected many businesses. The outcome of power problems has prompted entrepreneurs to generate power through expensive ways that have in turn increased their production costs and made their products uncompetitive due to high prices. Our government should put policies in place to perk up Nigeria’s infrastructure so as to promote successful entrepreneurship.

    * Failure to Adapt to the Changing Business Environment

    Majority of those who venture into MSMEs (Micro, Small and Medium Enterprises) do so because of their need to make money and in almost all cases, such entrepreneurs lack relevant and adequate information about the businesses they engage in. In the event where problems arise, most of these business owners lack sufficient problem solving skills and in the end they find it hard to survive. With the telecommunications sector having grown by about 206.5 % between 2002 and 2004 and is continually expanding, Nigeria has become one of the fastest growing ICT market not only in Africa but also worldwide. This presents a challenge to entrepreneurs who have not embraced technology, and who are now finding it hard to remain relevant in the competitive business environment. For existing and potential MSMEs to survive and be relevant, we must adapt to the changing business environment and embrace technology.

    * Addressing the Challenges

    Solving the problems encountered requires a combined effort by both the entrepreneur and all concerned stakeholders. As Small and medium business owners, we need to increase our knowledge and skills of the market by acquiring relevant and up to date education particularly in your area of business. Our entrepreneurs need to collect information about their target market by seeking help from consultants and professionals who have experience in the particular market.

    One strategy that can be used by our small and medium entrepreneurs to remain relevant and competitive in today’s market is to come up with fresh and creative ideas of doing business. Due to the increase in technology, business is fast changing, thus our MSMEs need to constantly re-invent the way they do business.

    There is a great need of creating a strong link between MSMEs and supporting institutions if Nigeria is to fully benefit from such businesses. Though some financial institutions are still reluctant to provide financial assistance to MSMEs, there are some that give out loans at reasonable rates provided the business sounds viable. The key challenge is for our entrepreneurs to prepare sound business proposals. For our country to achieve its goals and stop relying on oil alone, we need to focus much attention needs on the private sector and our government must create a conducive atmosphere for such businesses to thrive and drive the country towards economic prosperity.

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    Source by Peter O Osalor

    Views: 0

  • Successful Entrepreneurship – Cracking the Code

    Successful Entrepreneurship – Cracking the Code

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    We've heard stories of penniless immigrants who came to Canada with nothing but a dream, but within a single generation accumulate a lot of wealth. How do they do it?

    This is a mystery to the typical person who graduates with a post-secondary education and goes on to work in the labor force as an employee (ie, most people!). This is because our educational system specifically trains its students to become employees rather than entrepreneurs.

    So when we hear about these rags to riches stories, we ask ourselves – "how did they do it?" As someone who grew up in an entrepreneurial household, here is my take on Cracking the Code to Successful Entrepreneurship:

    1. In most cases, one will never become truly financially independent working as an employee. Whether you are an entry-level bookkeeper or the CEO of a large organization, you can be unexpectedly fired at a whim by whoever you report to. You are therefore susceptible to financial catastrophe.

    2. Therefore, the only way to achieve financial independence is to build and maintain a successful business.

    3. There is a "magic formula" that will allow to evaluate a businesses' odds of success:

    [( Sale price of product – Variable cost of product) x Units sold] – Fixed Overhead Costs = Profit

    This formula will be very familiar to accountants – it's called the Contribution Margin Ratio.

    Let's demonstrate this formula using a Bubble Tea business. Wonder why there are so many Bubble Tea shops in Toronto? Because they make a heck of a lot of money with little risk:

    Price per bubble tea drink – $ 4.00

    Cost to make per drink (water, powder, sugar) – $ 0.50

    Drink sales per month assuming 100 sold per day – 3,000

    Monthly rent for shop – $ 3,000

    · Assume no labor costs – in the early years, the owners will work the shop themselves

    · [($ 4.00 – $ 0.50) x 3,000] = $ 10,500 in sales

    · Profit after paying rent: $ 10,500 – $ 3,000 = $ 7,500

    Once you apply this formula to the multinational soft drink companies to analyze their beverage businesses, you can begin to understand why soft-drinks companies have grown from humble beginnings to global companies they are today.

    You can also use this formula to evaluate almost any small business you might be thinking of getting into: restaurant, nail salon, hair salon. You should quickly realize that it's best to choose businesses with a high profit margin (ie, high selling price for produce / service and low cost of supplying the product / service) and high customer traffic (ie, units sold, people serviced).

    Seeing the Future – Cash Flow Projection

    You want to know if you'll be making a profit before going any further. If you skip this step, your chances of failing increase significantly.

    Investigate your costs to start up and run your business. The most common are:

    · Rent – how much will it cost to rent at the location where you want to set up?

    · Wages and payroll tax – will you need employees or can your run the business yourself? How much do you need to pay yourself to meet your personal living costs?

    · Advertising costs – what types of advertising will you use – TV, radio, internet – and what is their cost versus their potential return on investment?

    · Cost of inventory or raw materials – will these be imported? If yes, you'll need to factor in the impact of exchange rates on your profitability.

    · Purchase of equipment – general office equipment like a phone system, computers and IT network, and furniture, as well as specialized equipment for your specific line of business like restaurant equipment (if you're opening up a restaurant).

    · Business liability insurance – to protect yourself from liability if someone is inadvertently harmed by your product or service, or if someone is injured on your premises.

    · Pricing – how much will you be able to sell your product or service so that's it's competitive with others in your line of business

    Once you've figured out your monthly costs (ie, your overhead) and pricing, you're now in the position to determine how many unit sales you need to make to breakeven – remember the Contribution Margin Ratio that we looked at. Use a spreadsheet to build a cash-flow projection model.

    Protecting Yourself – Creditor Proofing

    If things don't work out for your business you could be financially ruined. Therefore, consider the following techniques to protect your personal assets from your business creditors.

    1. Incorporate the business. This will provide you with a level of creditor protection – most of a corporation's obligations are limited to its assets so this structure can provide protection for personal assets. This structure also has income tax benefits, which will not be discussed here.

    2. Always pay statutory debt on time, specifically:

    · Payroll source deductions;

    · Federal and provincial sales tax collected; and

    · Employee wages and vacation payable.

    Corporate directors can be personally responsible for these debts, notwithstanding that the business is incorporated. In many incorporated small businesses, the shareholder (ie, the business owner) and director are the same person.

    3. If you can, avoid giving personal guarantees of your corporation's business obligations (eg, landlord, suppliers) unless it is absolutely necessary.

    You will need a financial expert on your team to deal with the issues raised in this article. Therefore, I would strongly advise that you contact a CPA who can help you further.

    For all you aspiring entrepreneurs out there, I hope that I've helped take out some of the "mystery" behind successful entrepreneurship. Use this tool wisely and never stop dreaming!

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    Source by Victor Fong

    Views: 0

  • How to Overcome MLM Challenges – Multi Level Marketing Tips For Success

    How to Overcome MLM Challenges – Multi Level Marketing Tips For Success

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    There are plenty of helpful tips available to help you overcome your MLM challenges. In my opinion most of the challenges we face in MLM are avoidable but only if you start off on the right path. When I am faced with a challenge in my primary opportunity its usually around developing new techniques for marketing, lack of customers, or lack of money. As business owners in the field of MLM we are faced with difficult challenges but they aren’t unlike those that any other business owner faces. We do face different challenges because of the nature of our business but if you plan for the unexpected and have a vision for the day-to-day operations of your company you’ll be able to thrive in your business.

    Every day businesses are birthed around the world within a dynamic and formidable marketplace where only the toughest survive. If you are in the network marketing industry you know that our environment is particularly fickle and can be a tough training ground for the almost 25,000 people that join Multi-level marketing business everyday in the U.S. and the 95% that fail within their first year.

    Most people join network marketing companies not recognizing the importance of having a vision for how their business will grow and function in its infancy. There is concept that many large corporations use to lead their work on a daily basis and I think that it can be particularly effective for network marketers. Its called Strategic Planning. Planning is not a new concept to business corporations but it might be to those that don’t know about its extreme effectiveness for providing a roadmap for any business for periods of 6-months, to 3 years, to 20 years.

    By understanding the importance of this process and the questions that go into taking you through it, you can gain a better sense of preparedness for your company’s growth. As someone new to this industry you need as much structure in the beginning as possible to understand how to plan and set and meet your goals. By taking the first step in this process you will exhibit your commitment to your business and your leadership for your organization.

    You have to believe in something yourself first, before you can get others to believe.– Ashraf Seddeck, Oracle Corporation.

    What does your company do?

    What product or service do you provide?

    What is your mission statement?

    What are your company’s values?

    What is your plan for your first 30 days, 6 months, 1 year?

    What are your weaknesses/strengths?

    How will you market your business?

    Who is your competition?

    What might be challenges that prevent you from reaching your goal?

    What is your plan to grow your business over the next 12 months?

    What is your plan for recruiting for your business?

    What resources do you have to build your business?

    What is your budget for your business?

    What does your organization look like and what types of people are your recruiting?

    What actions are you taking on a daily basis to build your business?

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    Source by Inger L McDowell

    Views: 0

  • Direct Sales Team Vs Distributor – Which is Better For an International Market?

    Direct Sales Team Vs Distributor – Which is Better For an International Market?

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    If you’re looking to expand your sales to new markets, then there’s one big question you must ask: do I build a direct sales presence or use a distributor? Each method has its benefits and drawbacks, but we’re going to make a strong case to use one method over the other in almost every instance.

    What’s the difference between direct sales and distributors?

    A direct sales presence means that your company establishes, manages, and pays a sales team of one or more people in the target market.

    An outside agent is any entity that will sell your product in exchange for a service fee. One example is a sales rep, who sells your product in exchange for a percent of the sale. A distributor is similar to a rep, except they would buy product from your company and sell it directly to the end customer.

    Is Direct Sales Better?

    For most businesses expanding into new markets, especially international markets, hiring a distributor is a better decision-at least until there is enough return from the market to justify building a direct sales presence.

    Sure, there is one major advantage to having a direct sales presence-control. Control over the day to day activities of your sales personnel is appealing to most business owners. But this control comes at a heavy price. To start, you’ll need to spend the time to hire someone in that market, then train them, then equip them with sales material and management, if not office space and equipment. These costs are prohibitive for most small businesses looking to expand internationally.

    And there are even more costs that we haven’t mentioned yet. Each market has it’s own unique laws, cultures and customs that are essential to master if your company wants to establish a successful sales presence. Japan is a classic example of a marketplace with unique legal structures and business customs that, if not followed, guarantee the failure of any sales efforts. It’s hard to pin down an exact monetary value to this learning, but ask yourself this: Can you afford to establish, manage, and pay a sales force in a foreign country for at least a year while they learn the ropes and generate no revenue?

    What about a Distributor? Is a Distributor better for new markets?

    Distributors are a cost effective means to enter a new marketplace successfully. Here are just a few of the reasons:

    • No Overhead:
      Unlike running your own sales team, a distributor will take care of the hiring, managing, payment, and optimization of its channel. You’re just borrowing their distribution, while they handle the maintenance.
    • Established Channel with Local Knowledge:
      A good distributor will already know all the laws and customs of the market you’re entering. You don’t need to reinvent the wheel-you can use someone who already has valuable local knowledge.
    • Understand Pricing and Purchasing Power of Market:
      Along with knowledge of the laws and customs comes knowledge about the most successful ways to price and market your product locally.
    • Cost Effective:
      Since you won’t be paying for the above items, distributor relationships are much more within reach of a small business trying to enter a new market.

    Using a distributor has some downsides as well, but they can be minimized by building a good relationship with a distributor.

    • Not your own people:
      You won’t be able to directly manage every step of the process. While it may make you nervous to lose some control over the sales process, you can manage the risk by building a transparent relationship with your distributor with constant updates and feedback from both ends.
    • Distributor has many products to represent:
      You may not be the distributor’s top priority at any given time, and you want to be sure your product is not getting shuffled to the back of the line. Once again, a well-established relationship with constant contact will ensure that your product is getting the attention it deserves.
    • Not a “turn key” solution:
      You can’t just give the distributor your products and expect success. You’ll have to manage the relationship. This takes time, but it’s still less costly than trying to install a direct sales team from scratch.

    So what do I do next?

    If you aren’t convinced that a distributor would be better for your organization than establishing a direct sales team, seek help from a consultant who has experience establishing a presence in new markets. A consultant can use his or her experience to analyze your opportunity and recommend the best course of action.

    Before you choose a distributor, you need to know….

    Choosing the wrong distributor will set you up for failure. The wrong distributor simply won’t generate sales, and you’ll have wasted at least a year finding and setting up an unprofitable relationship.

    There are certain things to look for in a distributor, and they are different for every market. The best thing to do is to find a professional, one with experience in distributor relationships, and hire that professional to help you search for and identify the right distributor.

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    Source by J. P. Williams

    Views: 0

  • The Importance of Business Systems

    The Importance of Business Systems

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    “If you can’t describe what you are doing as a process, you don’t know what you’re doing” – W. Edwards Deming (1900-1993)

    What are business systems?

    Business systems are documented procedures setting out how your organisation operates. They are processes, usually combining actions taken by people and some form of automated application, organised in such a way so as to meet a given set of business objectives. Such systems can generally take place without the business founder / owner’s direct action, over and over again, as efficiently as possible.

    Examples of processes may include how your staff should answer the telephone, how they take and pass on messages; the procedure for raising, approving, placing and receiving orders; the process for generating, checking and sending out client invoices, as well as receiving payments and following up on outstanding bills etc.

    Regardless of the size or type of your business, it is likely that you already have set procedures in place covering many functions within your organisation, which employees follow out of habit or as directed by their supervisor / manager.

    Business systems are the manual for your business; the “know-how” of any business that many business founders / owners usually hold in their head, and have not got round to putting onto paper.

    Why implement business systems?

    There are many reasons and just as many benefits for having established and documented systems in your business, some of which include the following:

    1. They provide a framework for your operations and an effective structure to support your business.

    2. They improve consistency: production, delivery, customer service, after-sales care etc.

    3. They improve results and/or productivity, because you and your employees don’t have to re-invent the wheel every time.

    4. They provide a better work environment for your employees, as an effective system will contribute to clarifying roles and responsibilities as well as providing staff with some guidelines to refer to.

    5. They ensure compliance with legislation, safety regulations or any other legal requirement specific to your type of business operations.

    6. They give your business the ability to expand and they facilitate business growth, as they will make your business more attractive to any potential investor or buyer.

    What system works best?

    Although there are similarities across many functions, such as Accounts, Human Resources, Sales, Stores, Logistics etc., unfortunately there is no one perfect, one size fits all system that works for all companies. Any system will need to integrate the company’s business objectives, its people and the way it provides its products or services.

    It is important to have a well-designed system, customised to your type of operation, and thought out by people at all levels within the organisation.

    Such a system will be more likely to be followed by all employees, because they have been involved in its design, and they understand the value that having a system in place brings to the quality of their work and the service they provide to customers.

    One point to keep in mind is that having great people working with poorly designed systems – or no systems – is likely to lead to an under-performing business. On the other hand, great systems without good people won’t work either, hence the additional benefit of involving employees in designing a system, or simply in documenting the processes they are following.

    Equally so, employees who have been trained in your business systems should also feel empowered enough so that they don’t feel they just have to follow a given script without using their head.

    For this reason, it is important to encourage feedback not just from your customers, but also from your employees and to use such comments to review and to continuously improve and develop your business systems.

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    Source by Cecile Scaros

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