3 Different Ways to Ensure Your Business is Financially Secure

September 11, 2011 Leave a Comment

Struggling economies cause anxiety for business owners of all types and financial rankings. In an interdependent global market, prevalent economic challenges may seem insurmountable. With little control over the ups and downs of the stock market, consumer spending or government-driven economic policies, it is important that you search for high paying CD rates and consider cutting expenses wherever possible.

Curb Spending

Evaluate all aspects of your business for ways to cut expenses. Here are a few examples:

  • Reduce overhead expenses. Move to a smaller facility or office to reduce your monthly rent.
  • Search for less expensive services, such as a better deal on utilities or your company’s Internet connection.
  • Find better deals on commonly used products. Buy in bulk to pay less for office supplies. Find discounted items online or negotiate for a better price with existing suppliers.
  • Consolidate tasks and possibly reduce headcount. Pay close attention to inefficiencies in business processes to determine whether the same work can be accomplished in fewer hours.

Choose Safe Investments

To secure your business financially, invest wisely. High paying CD rates are within reach. While you might invest a small portion of your capital in riskier markets, the majority of your capital will be safer in less volatile investments.

Innovate

Fear of financial insecurity leads some business owners to creative paralysis. In reality, many innovative ideas are sparked during economic recessions. Allow yourself to think creatively and assess the present need of your target audience. Your product or service may already be meeting a need, or it may benefit from adjustments that will increase consumer interest.

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Improving Your Small Business

September 5, 2011 Leave a Comment

It seems that some in the government aim to increase the tax burden on small businesses. Additionally, a rough economy and D.C.’s tendency toward over-regulation have somewhat of a negative impact on profitability. If you own a small business, you are likely aware of all this. However, you might not know about the things you can do to improve your business and save money, even in this climate.

Look for tax breaks

There are many deductions or breaks your business might be eligible for. IRS.gov and the Small Business Association both have lists of common business expenses that are deductible. Expenses associated with equipment, software, professional or legal fees, startup fees, and even some taxes themselves are deductible. Some tax breaks are available for businesses that use certain green technologies.

Limit expenses and cut costs

Excessive expenditures and high costs can really drain a business’s finances. Avoid excessive spending by cutting back on company retreats, overpaying for supplies or energy, and unnecessary spending. A prepaid card is a good way to limit expenses.

There are many ways to reduce costs. Buying used office equipment instead of new, buying refurbished electronics, replacing airline travel with teleconferencing, watching energy usage, and even keeping track of paper and ink usage are all good ways to cut costs. If you give health care to your employees, look for less expensive group rates.

Unfortunately, America isn’t likely to bounce out of the current recession any time soon. Improving your business at a time like this may seem daunting, but with some effort, you can do just that and keep your company in the black.

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To Outsource HR or Not – That Is The Question

August 28, 2011 Leave a Comment

In many ways, technology and the Internet has made the world much smaller. Once, companies took great pride in managing every aspect of their work force, but today, more and more companies are outsourcing a good deal of their management and work to save money and is more cost-effective. Human resources has become a favorite department to outsource. Doing so has both benefits and negatives and anyone who is considering moving their human resources department to a third-party provider should carefully consider both sides of the issue.

A few issues of SHRM's monthly publication HR ...

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One of the best reasons to consider outsourcing your human resource management is the extra time it will allow you. Instead of focusing on HR issues, you will be able to devote your energy towards developing your core products or services. Outsourcing can also help give you more qualified employees, as your HR provider will typically test and interview potential applicants before sending them on to you for a final decision.

One the con side, you must consider the financial burden of hiring an outside firm. If you company is relatively small, it is more inexpensive to hire an HR professional to work in your office. Larger firms may find that outsourcing HR tasks is less expensive than hiring an in-house team. You may also feel a lack of control over your employees and employee relations if you hand over your HR department to an outside firm.
While each business is different, everyone needs a human resource department – deciding whether to outsource it is entirely up to you.

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Write Your Own Policy

August 19, 2011 Leave a Comment
Policies and procedures

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Whether you are just starting up a new business or are running a major corporation, policies and rules play a large role in how effective your business is. They can also take up a lot of your time as research, write, and start them. In some cases, business owners use a sample policy as a basis for their own policy. There are tons of samples available on the Internet and, in theory, using one can save you a lot of time. The reality is far different; in fact, it is downright dangerous to use a sample as a basis for new company policies and rules.

One of the primary reasons that policies fail is that the end users are not involved in the development of the rules. Management may think they have covered all the bases, but unless the people who will be most affected by a policy have a say in its development, chances are it will fail. Choosing to use a sample as the basis of a new policy inherently means your end users are not involved.

Instead of relying on a sample, you may find it more helpful to read several related policy and procedure samples. This is an excellent way to brainstorm or develop new ideas. They can also be used to help develop the structure and flow of the policy.

Remember, writing a policy or a procedure in your own language will help create consistency throughout your company or brand. They will be more effective as well.

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Considering Online Trading for Your Small Business

August 12, 2011 Leave a Comment

There are many reasons a person may want to create a small business — the biggest generally being a desire to create financial independence. In addition, one way to increase your personal wealth is to learn how to make online trading your small business decision.

Before beginning this type of enterprise, it is best to begin with significant resources. Like any business you might start, it will require research, planning and preparation. With that in mind, you should consider the following steps:

First, pay off as much personal debt as you can. With debt over your head, you could be influenced to make unwise trading decisions. You will be setting trading parameters and you don’t want debt pressures weighing against your resolve to stay within the limits you’ve set.

Second, you should create a separate bank account for your trading. Keep your business funds separate from your family funds, savings and expenses. This is the only way to truly protect your family finances and those of your new business as well.

Third, commit to writing a trading strategy — many of which can be found on the market — but you should research this and choose the best ideas, as you create your own. This should include how you will choose your stocks or trading options; whether to trade in foreign currencies like the UFX Markets or if you will stay primarily with domestic markets.

Find an online discount trading account that you can link to your business bank account. This way you can take advantage of the low-cost transaction fees that many of the online brokerage firms offer.

Finally, read all the financial journals you can; publications such as Barron’s and the Wall Street Journal are a must. They provide information on a daily basis of the basic factors you should be instructing yourself about.

Filed Under: Business

Top Three Strategies in Marketing Your Small Business

August 11, 2011 Leave a Comment
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For small businesses, finding effective ways to market themselves is important. With the increasing popularity of the Internet, using the web to bring in business is easier than ever. However, finding ways to drive traffic is the first challenge for many small businesses.

Submit Your Business Listing To Directories

Various online directories such as canada 411 allow you to submit your business information to be included in their directory. This allows those seeking specific services that are tailored to your personal business to find you. This should almost automatically increase the number of people contacting you about your service.

Utilize Social Media Networking

In today’s times, most people use social media in either their personal or professional lives. The first feat is getting the attention of potential buyers or customers. A small business can buy ads from Google that will be placed along the sides of social media networks. They can also create pages for their business that offer deals, coupons or other promotions for those that “like” the page and participate. Other social networking sites such as Twitter and Myspace can also be used to market one’s business.

Host A Charity Event

A simple way to get in the face of the media is to host a charity function. Choose the charity you would like to help and then create an event that would work for your specific business. For example, a salon can promote Locks of Love and give some of one day’s sales to the charity.

Ultimately, finding effective marketing strategies that work will decide the success of your small business.

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Crafting Good Policy

August 7, 2011 Leave a Comment

As a business owner, one of the most difficult responsibilities is developing effective policies. Almost every aspect of your business is governed by policy to some degree and as such, they are clearly written, easily understood, and present a measurable outcome. The best policies join a number of the same characteristics and by creating your own policies following these guidelines, you can help make sure your policies will be successful.

The 12 characteristics of good policies are:

  1. The policy is appropriately funded with both money and resources
  2. The policy outcomes and goals are clearly stated
  3. The policy includes measurement tools.
  4. Any assumptions made within the policy are explicit and clear.
  5. The policy is effective and efficient.
  6. The policy meets the organizational expectations of the company.
  7. The policy agrees with the current direction of the company.
  8. The policy is based on solid research and proper due diligence.
  9. The policy was created with advice from stakeholders.
  10. The policy includes a testing phase
  11. The policy is easily enforceable.
  12. The policy adheres to all local, state, and federal laws.

These characteristics may seem like common sense, but in reality, they are often overlooked. Most often, policy makers assume that steps within the policy will be work. Instead, by following these simple guidelines, all policies will have solid foundations, sufficient testing, and controlled accountability. It is only by creating policies which adhere to these characteristics can you hope to have a successful policy. While it may take a bit longer to craft policies utilizing these guidelines, the result will be far more cost-effective and efficient.

 

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