Small Business Score – Are You Doing it Right?

A small business can be a good source of income for many people. Since the business is able to pay its bills and still make a profit, then it will have a good credit standing. Unfortunately in the business world, there are times when business can be good and other times when there is no money coming in. You have to be ready for this kind of situation.

If you have been in business for a while, you should have at least mastered the money making months and those that are not. When you do this you will be able to survive through the bad months using the profits of the good ones. You have to be organized and know how your business inside out. If you have no structure in your business, you may be caught unaware and find yourself in a difficult situation. This could stem from debts, or a certain need to expand your business.

Whatever the case may be if you have no savings, you may be forced to borrow money. When you approach lending institutions there are specific requirements they look for before they can give you funds. Your credit score is a very important aspect that is assessed by these institutions. If you have gone through a rough patch recently and you need funding, fear not. There are ways to improve and build your small business score. Ensure that you pay your bills on time. It will be evident to the lenders that the business is operating as it should.

Another way for you to build your small business score is to keep good financial records with a solid accounting structure in place. This way you will be able to keep track of money coming in and that going out. You will also be in a position to project any financial problems before they arise. This can cushion you from future financial disaster. This will reflect on your business score and lenders will be more inclined to give you money.

Laws Involved Around Small Businesses

Many people think because they have a small business they can’t benefit from the counsel and advice of an experienced business attorney. An experienced lawyer can easily help a small business owner avoid unnecessary litigation and if necessary have the best outcome for the case.

A business should always do things to protect themselves from lawsuits and its personal from business and personal liability. To avoid those kinds of situations the business should have a complete business liability policy available in place, and as well a company procedures and policies, like an employee book. Most  lawyers should be able to provide assistance with developing procedures, policies, and handbooks.

A small Business Attorney Can Help Resolve Your Dispute

A small business is an enterprise generally with less than 100 employees. It is usually a closely held corporation, partnership, or sole proprietorship acting under small business law regulated by the government. In terms of ownership, only a few stockholders own or hold the shares of a closely held corporation. In contrast, partnerships involve two or more persons who agree to go into business together as co-owners. And a sole proprietorship is a business operated by a single owner with no separate legal entity for holding or operating the business, including the liability of the owner for the debts.

Most business law firms has the type of strategic, aggressive, and experienced business lawyers you need to best represent your business law matter. The entrepreneurial spirit translates into willingness and ability to craft attorney-client relationships that better suit the clients’ needs and make economic sense.

If you have a small business don’t hesitate in hiring an experienced law firm to protect you and your business. There are people out there ready to file a lawsuit against you or your business for the minimum issue they can find. For example, in the year 1994 the  famous chain food restaurant McDonald’s lost a lawsuit against a 79 years-old that claimed had spilled hot coffee on her lap. McDonald’s ended up paying a ridiculous sum of $2.86 million regarding this lawsuit.

Business Insider,a famous website that write about news related to legal issues, create an article entitled “Ten Ridiculous Lawsuits Against Big Business”. Click here to read it.

How to Implement a Business Strategy in Your Organization

Ask any successful business owner and they will tell you their success was not based on luck. The success – and failure – of a business is dependent upon the strength of their business strategy. A successful strategic plan employs cost reduction, development, and sustainability techniques to ensure a bright future. You need to know your business inside and out in order to create a comprehensive and realistic plan.

Your strategy should help you achieve the objectives of your business. A business strategy is the driving force behind any organization, and takes the form of an official report. Businesses are self-sustainable systems, when you change one thing in the system; it has a positive or negative chain reaction. Like an organism, businesses learn how to adapt to the change if it is positive, and rectify the situation if it is negative.

Organizations have several phases of development, including creativity, direction, delegation, and consolidation. A company may start out with lenient rules and regulations, but as time progresses management adopts more efficient policies that hinder creative thinking. Companies mature and lose sight of their goals and mission statements, with more of an emphasis placed on individual projects or initiatives. As a business enters maturity processes, departments, and policies are refined to reunite the organization.

Ways to Conduct Business Strategy

Historically there are two ways to develop a business strategy, using the “bottom up” and “top down” models. The bottom up method is when employees generate ideas on the floor and the best results are passed onto management. The top down strategy is when business owners create the strategy and implement the changes without seeking employee feedback. Unfortunately, both models fail to include all of the employee feedback.

The new method of developing a business strategy uses a collaborative process, which is when managers and employees exchange information and work together to create a sustainable solution. It is a team-oriented process that bridges the gap that exists between managers and workers. Before you create a business strategy ensure you have the additional resources to carry out the task without interfering with normal operation. Assign tasks and delegate responsibilities while keeping to a defined chain of command.

Functional versus Operational Business Strategies

There are two types of business strategies: functional and operational. The functional strategy focuses on general ideas and a variety of tasks for different departments. The generality is a major disadvantage, however; areas of concentration include marketing, new product launches, human resources, financial assets, and legal issues. Functional strategies provide a nice overview of the business but do not tackle the important issues employees encounter day-to-day.

Operational strategies are ideal for businesses that want to reduce costs and streamline processes because it is much narrower in scope and requires accountability on all levels. The detail oriented plan encompasses everyone and everything, from the number of cashiers on duty to how much inventory is carried at a given time. A strategy is unique to each business and reflects the needs and requirements of the company’s management.

Implementing a Business Plan

A business plan is the textual version of a strategy, as it includes pertinent information regarding the company, including: vision and mission statements, measurable objectives supporting the vision, actionable tactics meeting the objective, resources, milestones and timeframes, accountability and role designations, as well as internal and external risks. The business strategy is not evergreen and should be evaluated routinely to ensure the company still has the competitive edge.

A business plan includes the primary and secondary objectives of your organization, an analysis of current policies and procedures, and the development of new policies or procedures to correct weaknesses within the organization. Before beginning a strategy, it is helpful to conduct a SWOT analysis, which helps identify weaknesses and loopholes within the organization. Your competition capitalizes on your weaknesses, thus it is essential to continuously evaluate your business.

Developing a Competitive Strategy

Brainstorming and collaboration are essential to the development of a successful business strategy. Begin the process by identifying the strengths and weaknesses of the organization. Without erasing responses, continue to identify current opportunities that help your business succeed. Finish the SWOT analysis by identifying threats or risks that place your business in danger. Identify how your company beats the competition, outlining the various strategies already in place.

Identify your current target audience and list potential audiences in the form of demographics. Assess current market conditions and how your company can defeat the competition. Reevaluate how you are reaching current and potential customers and consider your overall marketing plan. Think positively and develop solutions to overcome any weaknesses that you have discovered thus far. Admitting your weaknesses is the hardest part of drafting a business plan, as most companies want to appear strong and mighty. Research why you have these weaknesses and find realistic solutions to the problems.

Business owners often become so caught up with their work that they fail to concentrate on their business strategy, which is a significant source of cost reduction. Achieve your goals by dedicating time each month or week to address issues surrounding the operation of your business. Make the process a tradition, ensuring operations are aligned with current goals and future forecasts. Make your business stand out from the competition by utilizing different techniques to attract the most people.

A successful strategy overcomes organizational hurdles by understanding customer needs and predicting the unpredictable. The formation of a business strategy is a science that combines current circumstances with a variety of internal and external variables, addressing immediate and long-term goals of the organization. The implementation of the strategy is rolled out slowly, starting with management. The plan encompasses everyone; however, customers are indicative of the final result.

How to Grow Your Business Using Trade Shows

Anybody that has ever been to a trade show can tell you the same thing; it can do wonders for your business.  It is a great way to reach new customers, unload some existing merchandise, not to mention a place to meet great contacts  But if you want your business to succeed at the next trade show, the first thing you will need is a strategy.  You will have to develop a plan on how to set up your area, what promotional items you’ll pass out, and consider the overall presentation and image that you’ll be promoting.  If you follow these basic concepts, not only will you make more money promoting your brand at a trade show, but you will rapidly increase your business in the process.

The first thing you’ll want to do is to figure out your presentation.  How will you be promoting your business visually?  If you don’t have the right look, and some cool promotional items to pass out, your trade show experience could be a massive failure.  But with the right set up, your business could have a solid presence.  You’ll first want to secure a few nice tables, and put them together, and find a nice cloth or covering to put over them.  You’ll want to have some signs of your business, or even a nicely embroidered logo will do the trick.  You’ll want something that catches the eye, but is not too gaudy; you want your business to look classy, but approachable.

It is also important to have a trained staff there, representing your business and ready to sell.  When you are flooded with new customers, new clients, and new contacts, it can be pretty overwhelming, that is why you will need a trained staff there to help you manage the booth.  You’ll want to move quickly, but be thorough with your conservations and dealings.  Also, have a note taker or a secretary nearby writing down different people’s numbers and names to keep track of all the information.  Train your employees accordingly so that they can deal quickly with customers, yet be able to explain your business inside and out. 

At a trade show, whether you are there promoting your business, or looking to sell off some merchandise, make sure you don’t underestimate the importance of free handouts.  If you have the right promotional item or gift, it can do wonders for your trade show presence.  There are so many different products to grab people’s attention that something free, but interesting, might just be what it takes to put your booth over the top, and give your business great success at the next trade show to come.