Should every small business owner have big ambitions? Certainly almost anyone who enters into the world of the entrepreneur or starts up their own, whether based at home, the high street or the web, has dreams of becoming a future success. After all, every large high street store, every national or international chain and every top name on the web started out as a small, fairly obscure business once. However, how can any small businesses manage to succeed in a world that seems dominated by big brands, big names and colossal empires?
It can certainly frighten off many people who see the world of business like the ocean, with sharks round every coral reef, and danger lurking in the dark depths. Add to this the current economical climate with many seemingly secure names crumbling, and even entire nations finding themselves crippled, and many would be business owners may well consider that now is not the time to start up a new venture, or aim to develop an existing one.
However, this is a terribly defeatist attitude, and brings to the table so many assumptions and myths that those who believe them to be true may well never make it in business, whatever the climate and conditions, and whatever the competition. Let’s look at the truth, and see why these assertions are untrue, and why not only is the ocean not full of sharks, but the current economical climate makes it perfect for the small business entrepreneur to jump in and try the water for themselves.
To stretch out our metaphor just a little longer, so many people suggest that small businesses are almost doomed to failure because of the great sharks out there which dominate the waters of business. If this were true in the world of the sea, then there would be no fish and chips, no marine life, nothing except sharks. But if you swam the entire ocean you may very well never even come across one. The ocean is a big place, and the truth is that whilst sharks may be at the top of the chain, the ocean is still vast, the potential massive, and clearly there are ways to survive. The trick is, like the many fish that enjoy the waters, to stay alert, to keep your eyes open, to be able to adapt if necessary, and to manoeuvre more quickly and effectively.
How does this translate to the world of business then? Quite simply, small business owners have an advantage which the larger retail industries don’t have. Size may be good in some instances, but it can also be a handicap, and can reduce flexibility, manoeuvrability and adaptability. Small businesses can change, adapt and take advantage of current trends, new developments and niche markets in ways which the bigger businesses can’t.
An entrepreneur might see a possible niche market opening up as a result of search engine trends, a news story or forthcoming weather warnings, and instantly flood the market with content, links, pay per click adverts and search engine optimized content to take advantage of the possible market interest. Larger stores don’t always seem to have their online ear to the ground as it were in the same way, and can often find that reacting to changing markets may involve several boardroom meetings and management discussions before the action starts to happen.
Small businesses which can make full use of this adaptability and flexibility, reacting to developing opportunities as and when they happen can mean that they appear higher up the search engine results than many of the international corporations. However, what about the current economical situation? Surely the bigger businesses have a bigger buffer against such strains and pressures, making them dominate the market where smaller businesses may easily crumble?
Certainly, the world of finance isn’t being especially kind to many industries at the moment, but perhaps the aspect which has surprised most people is just how many of the leading brands, bigger companies and established businesses have begun to crumble. Many have gone into administration or left the playing field altogether, whilst others have sought rescue packages from the government. What of the pressures facing the small business then? Surely this isn’t any less significant?
Just as certain is the fact that the same pressures will be facing small business owners, but there are significant differences. The flexibility and adaptability comes into play again, with smaller businesses able to identify problems as well as opportunities that much quicker, steering out of the way of danger and moving into niche markets or promotion fields which may prove to be safer or more successful. Often the larger businesses only manage to stay competitive because of the huge financial risks and gambles which they take. That’s why many of the chief executives earn such vast sums of money – they are the ones whose heads roll if the decisions they make turn bad.
Starting up or developing a small business today means being perceptive enough to understand what markets work well at a time like this, and which don’t, what promotion strategies work well, and which don’t. Thinking from the point of view of the consumer can be easier for small business owners, and it is this which allows them to be more in touch with the emerging needs, markets and opportunities becoming available, leaving the international behemoths to plough forever onwards in an almost immovable path towards whatever lies ahead.
The rapid growth of the internet commerce in recent years presents established small businesses with a serious dilemma. On the one hand, they can stick with the business model that has worked for them for the last number of years. On the other hand, they can make the shift to serious eBusiness.
Choosing to stand pat is usually much easier in the short term. But in the longer term this almost certainly means they will be left behind by technology, and lose many of their most important clients to more aggressive competitors.
But shifting to eBusiness may involve committing substantial resources to developing a new game plan. That usually means refining product lines to make them easier to sell online, upgrading computer systems and websites, and training personnel at all levels to be more web savvy. It also means developing or hiring staff to handle the administration of new marketing, sales, and delivery systems, and working with outside consultants and service providers to handle the technical aspects of the new program that cannot be handled by your own people.
Is adopting an eBusiness Solution worth the effort?
Are the short term difficulties involved in making the transition to eBusiness worth the effort?
In virtually all cases, Yes.
It is like any other investment in your business. Some businesses look at the cost of upgrading production equipment or of renovating their office or retail space and decide it is simply not worth the cost. They decide the future is too uncertain to risk moving ahead, so they opt to tread water until either circumstances change, or they simply cannot continue any longer in business.
In this sense, choosing to stay abreast of technological changes is a business necessity. And these days, deciding to get involved with eBusiness is the most important technological decision many current businesses will ever make.
Advantages of eBusiness
Here are some of the more important advantages of moving to eBusiness.
You can develop a more cost-effective Communication and Marketing Strategy – The most obvious advantage of “upgrading” to eBusiness is that it gives you a vital web presence. In an upgraded “eBusiness environment” your company web site becomes the focal point of your communications and marketing strategy. And in an era when an increasingly large number of people are using the web as their first source of product and service information, “being there” 24/7 is extremely important.
You can reach New Markets World Wide – The internet offers exciting ways of reaching new markets that could only be dreamed of in the past. There are methods of promoting your products online that allow you to precisely target the customers you are after whether they are in your town or on the other side of the world.
You can reach Local Customers and Prospects more effectively – Until recently, companies offering a product or service to local customers could not see the benefits of having an online presence. But as more and more people become comfortable with using the internet instead of traditional advertising sources like classified ads or yellow pages, having an aggressive web presence makes better business sense even for local companies. This may also offer a springboard to developing new markets further afield.
You can cut Advertising and Marketing Costs – Online advertising is not only more efficient, but it is often less expensive than traditional advertising. After sales training expenses can also be reduced by utilizing online seminars, training videos and tutorials.
You can streamline the Ordering Process by taking orders online – Implementing an online ordering system allows you to eliminate manual paper work or telephone order taking. It also offers the possibility of integrating your sales order system with order fullfillment and delivery so customers can be up to speed on the progress of their orders at all times.
You can cut Communications and Telephone Costs – While the costs of voice communications using long distance telephone services have been coming down rapidly over the last few years, switching to an eBusiness model offers the possibility of totally eliminating many of these costs. Of course there is traditional email. But beyond that, there are systems like “Live Help” where customers can chat live with support or sales staff. And the most recent development is VoIP (Voice Over Internet) which promises to completely revolutionize telephone service.
Finding the right eBusiness Solution
Every business is unique, so every business will require a unique eBusiness solution. Chances are most small businesses will not have the resources in-house to make the move. In that case they should find an eBusiness solution provider that takes a comprehensive approach to each situation. Rather than offering a pre-packaged program, they should be able to look carefully at a business and make recommendations based on its specific needs. That includes the ability to provide staff training and ongoing support long after the initial system is put in place.
There are many small business owners who started their venture without any funds. To run your own business is an attractive prospect, but it is a sad fact that only a few businesses make it through the first few years of operation.
Provided that the owner developed a comprehensive business plan with a solid projected cash flow, next step would be to raise finance either by attracting investors or securing a bank loan. Depending on the needed amount, there are a few financing options available to new business start ups.
Business Credit Cards
Opening a business credit card account is probably the easiest way to gain access to a working capital. There are many banks that offer unsecured credit card account with up to $20 thousand available credit. Any larger credit amounts will need to be secured against the directors’ personal assets. Many of these cards come with an attached reward system, so spending and repaying a sizable amount every month will accumulate reward points that may prove to be useful for travel or exchange for other goods.
Business Loans
Applying for a business loan with a bank or a financial broker requires the business owner to produce a well developed business plan that includes a five year cash flow projection. The bank will assess the application and will make a value judgment whether they think the business can survive and whether the owner has what it takes to make the business work. There is nothing the owner can do apart from hoping that the business idea will work and the bank manager will see it that way too. Normally the bank will require security from the borrower – usually the owner’s personal assets. In many cases the bank will establish a “lenders covenant” and monitor the business finance making sure that the borrowed amount is never lower than an agreed percentage of the business value.
Finance Lease
Finance lease if often use to fund business capital purchases such as computer equipment and cars. In this case the financing company purchases equipment on the owner’s behalf and lets the owner use it for an agreed monthly fee. There are many types of different leasing options, so it’s best to discuss available options with hardware and equipment vendors.
Low Doc Loans
Australian financial institutions offer, what is called, a low doc loan facility to businesses that are not able to provide sufficient information to support their income. It is often useful for new business start-ups as a new business would not have enough data to produce audited financials that are required for normal business loans.
Whatever the choice may be, business finance provider must be chosen very carefully. For people who are new to running a business it is suggested to discuss the business funding with an experienced friend or a financial advisor.
Raising finance for a small business involves striking a balance between the various forms of funding to ensure that they are suitable for the business. There are several funding opportunities available for small businesses, ranging from a straight business loan secured against some form of collateral, to a business angel, or dragon if you like, willing to invest in your business in return for a share in it.
You have a number of options to choose from, and whether you choose one or a combination of alternatives depends on how much you need and what each source is willing to offer. Although it is possible to use a number of different sources, it is important that you are crystal clear with each exactly what you want from the investment or loan, and also the repayments terms involved or the equity share required by the investor.
When determining the form of business finance that is most suitable for you, you should take into consideration not only the sources of finance, and how much you want to secure, but also what you intend to do with it.
Prior to seeking money it is important that you have a proper business plan prepared in order that that you can clearly communicate your ideas for the business: your objectives and how you intend to achieve them. A business plan is also useful in showing you where your weaknesses lie, and enables you to address these before requesting finance.
Try and maintain a good share capital, if relevant, without exposing yourself to excessive debt. Here are some possible options to consider if you need money for your business.
Friends and Family
Some people have sufficient interest in their business from friends and family to borrow all the money needed from them in return for an interest in the company or even under a straight repayment with interest. This is generally a good option if the sum required is not large, although failure could be disastrous for your relationship with them. It is a good idea to put your agreement with them in writing.
Loans
There are several different types of loan available for small businesses, secured over medium and longer terms on assets and under various terms of interest. Security can involve the asset being purchased, or another asset owned by you or the business under a chattel mortgage deal. With these the money is secured either on the equipment being purchased, or another asset owned by the company.
Venture Capital
Venture capital is a means of financing a business by offering shares in return for capital, and largely intended for fast growing businesses with large profit potential in the future. There are a number of venture capital funds to choose from in the UK, but only go for this type of finance if you are prepared to offer a large share in the business.
Angels and Dragons
Why not try to find an angel – or even a dragon? These are investors that are offering risk capital without security, usually in return for a share in the company. The British Business Angels Association offer further information, although you could try Messrs. Bannatyn, Caan and company on Dragon’s Den. An angel will typically help you to promote the business and secure customers for your product.
Grants
There may be government or local authority grants available, or even grants from the European Union and development agencies for setting up your business in specific development areas. Grants are available for acquiring equipment and other assets or for offering jobs and training. There are a large number of Trade and Industry initiatives you could also check out.
Other Funding Sources
Other sources include a straight bank overdraft secured on assets, available for short-term use, or mezzanine debt, offered where you have very little security left. The rate of interest available is from 4% – 8% higher than the base rate. Your loan might be partially secured on any equity you have left. This is advised only as a last resort, and should not be your first port of call.
Leasing Options
There are also various lease arrangements possible for vehicles and plant, and many enable you to keep the asset at the end of the agreement, or to do so after making a small payment.
The two fundamental ways of raising finance for a small business involve either debt or equity. Unlike debt, where interest payments will be required and capital repayments made, offering equity or shares to investors involves a higher degree of risk-taking, and the investors only benefit when the business does well. It is therefore in their interests to help the business.
Accountants will likely be called in to check out your business plan, so be sure to have this professionally prepared. You should be fully aware of your repayment terms and the terms of agreement of any stocks or shares that are offered for the finance. As long as you take the advice of a professional accountant and financier you should be successful in securing finance for your small business under terms that are acceptable to you.
Dennis Nazelli, President of Grow Small Business was asked recently how his company can provide all of the above-named services for such an affordable price. “I can understand the initial skepticism of most of my clients,” admitted Nazelli. “To have legal representation alone would cost thousands of dollars per year for our provider law firm here in Troy, Michigan: Powers, Chapman, DeAgostino, Meyers and Milia.”
Since 2005, Nazelli has been affiliated with three, 35-year old, top international risk management enterprises. They are traded on the New York Stock Exchange and NASDAQ. And, their track records for doing what they say they can do are unsurpassed. “I’ve done my homework. These companies are the best at providing legal representation, complete identity theft protection and restoration, and professional business consultation.”
Legal Protection for you, your family, your business
The three companies that Nazelli just described are Pre-Paid Legal Services, Kroll Background and GoSmallBiz.com. As a certified, independent representative, Dennis administers his clients’ membership applications for the services. But, he does a lot more after the paper work is turned in.
Identity Theft Protection for you, your spouse, your business
The legal work is done by the attorney law firm in each state through their Pre-Paid Legal provider law firm network. His client’s identity monitoring and theft restoration is done by the world’s foremost risk-management company, Kroll. But the third service provided by Grow Small Business is announced in his company’s name. Nazelli completes the promise to help small businesses grow with his ability to put their enterprises at the top of the internet search engines.
Business Consultation for you and your business
“The first item of business for my clients is to create a website. It’s part of the membership package.” Then, together with the client/business owner, Nazelli begins to form a strategy to “brand” the products or services by writing press releases, articles and classifieds for the dozens of search engine websites on the internet. There’s more. For the unlimited business consultations, the services of GoSmallBiz.com, founded by Fran Tarkenton, are provided by a team of top business leaders.
Grow Your Business with the Internet
To sustain any kind of success in today’s market economic, a company must have an internet presence. Grow Small Business has many clients who give testimonies about its service record. “I can get anyone to say anything good about me and my services,” confessed Nazelli. “So, may I suggest you “google” a few examples of my promises to take clients’ businesses to the top of the search engines.” Google the following:
- 1-Man Legend Show
- X-Man Wolverine Impersonator
- Video w/o Camera Workshop
- Grow Small Business “Bailout” Workshop
How Much Does It Cost?
Here would be a good time to give the cost figures. The levels of cost for Grow Small Business’ services depend on the size of the company and the number of employees.
The Small Business Legal Plan for companies with 50 or less employees is $75.00 per month; and, the Small Business Legal Plan for companies with 51 to 99 employees is $125.00 per month. The requirements for the SBLPs are:
- The number of employees is critical to monthly fee
- The Business must be a “for-profit” enterprise and not publicly traded
For the Home-Based Business Rider the monthly fee is $50.45. The HBBR requirements for this service are:
- The Business and Residence addresses must be identical
- The Business must have three or fewer employees (not including the owner & spouse
- The Business must be a “for-profit” enterprise and not publicly traded
The Legal Plan for Self-Employed monthly fee is $49.00. The LPSE requirements for this service are:
- The business must have 8 or fewer employees
- The Business must be a “for-profit” enterprise and not publicly traded
There are two noteworthy items of importance that must be conveyed about the fees every client will be happy to hear: A) The fee in every phase of service is Rate Stable; and, B) There is No Time Contract.
Time to Take Action
To set up an appointment contact me by telephone at 248/766-4970 or by email at growsmallbusiness@gmail.com
Please visit the Grow Small Business website at http://www.growsmallbiz.biz
Building a small business website is fine, but unless the design is catchy, you can be rest assured that it will not attract clients. Thanks to the economical crunch being faced worldwide, more and more people are hopping on to the internet bandwagon to increase their income and this has created a huge competition out there on the net. As people search for any products that are generally hosted by small business websites, they find countless hits for their search results. People also come across these pages via links from other sites. Nowadays people just do not have the time to browse fully through countless websites and they spend a maximum of 10 to 15 seconds per website.
If they find that the website is appealing at first glance, they spend more time into studying it in details. It is in such situations that a perfect small business website design helps secure the client’s attention and also ensures that they stick around for some time to browse. If your website has got good offers on sale, people are sure to purchase. But, for that to happen, you need to attract their attention first and this is precisely what a well designed site can achieve. There are many software packages that have made website designing child’s play and using these programs virtually anybody with some knowledge of computers and software can design a web page.
If you are one such person, it is strongly recommended that you do not try this option since it will kill the future scope of your business. If you want your website to be successful, you should get it designed by a professional. They know how to design a website that attracts at first glance at that is the prime criteria. There is no doubt that the content of the website along with the stuff you are offering should be worth their value but to know that people first have to check your website and for that it needs to be eye catching. There are many professional website designers and whose services are quite affordable. It is recommended that you search the web for such designers and use their services for designing your website.
Some people believe that just filling up their website with images and flash graphics is more than enough, but it is a wrong conception. Nobody is interested in a graphic intensive website, unless and until that website is selling or supporting something whose images need to be displayed. Check out the interface of some of the popular search engines and you will understand that graphics are not important to build the perfect small business website. Remember content is king and that should be your prime target. Apart from that keeping the site interesting enough so that visitors hang around for some time is also important. Remember one more thing… the first impression is the last impression, so ensure that the first impression is the perfect one.
The nationwide small business consultant company, Grow Small Business, held its first Small Business workshop last month at the Southfield Westin Hotel.
The workshop’s theme, Small Business “Bailout,” attracted attendees from all parts of the tri-county region. The audience of small business owners and entrepreneurs was delighted and encouraged to learn that there are legal and financial resources available to them.
The “Bailout” workshop planners, Dennis Nazelli and Emily Holt, arranged for experts in the fields of legal and financial affairs. The Program Manager for Women’s Business Center, Kathi Boyle, represented the Center for Empowerment & Economic Development (CEED). Director Earl Carruthers represented his company, Graceful Financial Solutions; and, Business Loan Officer, Derek Thornton, spoke on behalf of CharterOne Bank, the largest lender of business loans in the state of Michigan.
Emily Holt, a successful owner of her own insurance agency for 20 years, used all of her time slot to explain the many benefits of the Pre-Paid Legal Services program that protects entire families from law suits, IRS issues, Identity Theft restoration services, writing a will, contract review, foreclosures, speeding tickets, landlord/tenant issues, owning a small business, and many more issues that would normally cost a fortune if handled by an attorney from the “yellow pages.” Ms. Holt received a resounding applause when she announced that the Pre-Paid Legal membership program only cost $1.17 a day.
The second presentation of legal resources was given by Dennis Nazelli and it centered on the explanation of the business legal plans offered by GoSmallBiz.com. Mr. Nazelli illuminated the unique and reasonably-priced coverage of the GoSmallBiz.com plan. It covers legal and business consultation, legal and business correspondence, legal forms, debt collection, IRS tax issues representation, contract and document review, trial defense representation, internet marketing, construction of your business website to name just the plan’s major elements.
The incredulous audience was amazed to learn that their cost for these two resources combined for under $2.00 a day. Nazelli reminded the audience that together these two legal plans will protect you, your family and your business.
For more information about Grow Small Business and its services go to:
http://www.growsmallbiz.biz