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How to Excel and Reach Success in Your Business

Chandrasoma Perera asked:

To be able to climb the steep ladder of success, it is necessary to fine tune your business. Irrespective of the nature, type or size of your business you need to prepare and nurture it in a specific way to be ready for success.

Abraham Lincoln once stated ‘while others were enjoying their sleep I was busily climbing the ladder of success’. He was referring to his phenomenal success ‘from a log cabin to white house’. Like Lincoln you too can prepare, ahead of others, to take your business to the pinnacle of success. And the top of the ladder of success being never crowded on reaching the top it is easy to stay there and excel.

The groundwork to reach business excellence starts with finding answers to a few questions. The important questions are;

A. Where my business is now?

B. Where I want it to be?

C. And how I am going to get it there?

To probe what stage your business is now compare your business with the competing businesses. What is your business’s market niche, the popularity, the size of customer base, current performance, turnover and profits are some of the comparable indicators. These indicators will help to indentify the current position of your business. For example if yours is a website business you can use indicators such as its search engine position, Google page rank, traffic status, incoming links etc to ascertain where your business is now.

Next step will be to evaluate the weaknesses and strengths of your business to understand it better. Then you can determine ways and means to convert the weaknesses to strengths. Business strengths will lead to opportunities.

This analysis will also reveal to you the threats to you business as well. A plan of action will help to deal with threats. Threats are challenges that test your strengths to the fullest.

On identifying weaknesses too work out a plan on how to convert weaknesses to strengths. More strength and fewer weaknesses will provide you with more opportunities.

As a useful step of this exercise you can benchmark your business with the best practices of businesses that excel. The factors such as customer loyalty and retention, product/service features and quality, business image, on time delivery, after sale service, marketing capability etc., can be benchmarked. It is useful to compare your current performance in each operational activity with the best practices and try to narrow the gaps.

The top businesses excel because of their best practices. Some of your business practices may be above or below theirs. Learn what others do better in business and make improvements to your business practices. Accordingly, make plans and implement what you need to improve to excel. It benefits you to follow those who have already reached the top.

Next your focus should be to find answer to the question ‘where I want my business to be? It refers to the Vision of your business that states where you want the business to be. Your business needs a carefully thought out Vision. ‘To reach the number one position in its line of business in five years time’ is an example of a Vision. Decide on a Vision to aim at for business excellence. A Vision has a definite time deadline. The Vision is really a ‘Dream with a Deadline’. And you need to make and follow a strategic plan to reach it.

Our final question ‘how you are going to get there’ relates to the Mission of your business. A business needs a Mission to take it towards its Vision. A Mission Statement should reflect your business purpose. For example a successful apparel company had as its mission ‘Clothing the world in style’. Your business too can have such a rhythmic Mission Statement to constantly remind, motivate and push you and your staff toward business excellence.

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Tags: Abraham Lincoln, Business Excellence, Business Strengths, Climbing The Ladder, Current Position, Fine Tune, Google, Ladder Of Success, Log Cabin, Market Niche, Page Rank, Performance Turnover, Phenomenal Success, S Market, Search Engine Position, Steep Ladder, Top Of The Ladder, Traffic Status, Ways And Means, Website Business

The Unplanned Business Exit

We Buy Your Business asked:

We Buy Your Business

For some, planning a business exit can be a predictable, methodical process. We know the competition; we understand market demands, know when we want to sell and might even know the actual date. But for far too many business owners, the business exit comes as a harsh reality and often unplanned event.

Protecting your business and assets against the dreaded six D’s of an unplanned business exit can give whole new meaning to the term “Disaster Management”. While every business may experience unexpected pitfalls, careful planning to ensure risk exposure is minimized can assist in keeping you in the driver’s seat when it comes to managing your company. Familiarize yourself with the six D’s of an unplanned business exit: debt, death, disability, divorce, departure and disaster. Know the enemy and look to address all six D’s in your operating and buy / sell agreements.

The Six D’s of an Unplanned Business Exit

Debt:No one goes into business and plans on it not succeeding, but 40,000 businesses fail every month in the United States. When debt exceeds revenue, it is critical to exit timely in order to minimize loses. Understanding limitations and protecting critical assets are key to successful divesture.

Death:Many businesses are solely dependant on their owner’s abilities, relationships, and passion to drive success, and when there is a death of an owner or partner of a business, it can have significant impact to a business almost immediately. While no one wants to consider their own demise, the strength and longevity of a business relies on being able to plan for such a critical loss even if it means downsizing or reorganization. The survival of a business in relation to key individuals needs to be evaluated and exit strategies planned accordingly.

Disability:Unbelievably, death is not as likely to end the business as a disability. A disability to a business partner can put a significant drain on cash flow, daily workloads, and excess down time, all of which can be devastating. Insurance and financial planning towards alleviating such an impact needs to be carefully evaluated especially when dealing with small business start ups where funding and resources are limited.

Divorce:No one wants to plan for a business or personal divorce, yet while Pre-nuptial agreements may be gaining in popularity many people never look to manage such impact to their businesses. What happens when the partners cannot get along? Or worse, you inherit another partner due to a personal divorce settlement? Exiting the business might be the only alternative you are provided.

Departure:It does not sound as bad as death, but it can wreak the same results. A partner, key employees, or other resources decide to go to the competition, retire, burn out, or win the lotto. When they leave, how does this impact your business going forward?

Disaster:If the five D’s above where not enough to impact your business, there are no limit to the other disasters that may occur that were never planned on: robbery, sickness, employee theft, employee turnover, natural devastating events, etc. In today’s post Katrina, 911 world the impact of the chaos theory is enough to keep even the best business minds awake at night. Plan for the worst; strive for the best and know when to get out if need be.

For the typical business owner, each one of the six D’s has special demands on the family, income, taxes, and control of assets. An agreement, commonly called buy/sell agreements, can be used to plan for the impact associated with the dreaded six D’s. A successful sustaining business exists as a separate entity from personal concerns and risk can be reduced by developing mutually fair and equitable agreements prior to these events occurring.

Business is an evolution and travels a diverse path. While some may look on an unplanned exit as a failure others may see an opportunity for growth and freedom.

www.WeBuyYourBusiness.com

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Tags: Business Owners, Business Partner, Cash Flow, Critical Assets, Demise, Disability, Disaster Management, Divorce, Downsizing, Exit Strategies, Harsh Reality, Longevity, Market Demands, Passion, Protecting Your Business, Reorganization, Risk Exposure, Significant Impact, Unexpected Pitfalls, Unplanned Event

Financing a Small Business - What are the Financial Responsibilities Involved in Running a Business?

David S. Stratton asked:

Almost every potential business owner is faced with the trouble of seeking for ways in which finance can be acquired to run the business. However, it should be noted that such troubles are not only identified with potential entrepreneurs. Research has shown that even experienced business owners also faced such difficulties. Keep in mind that in seeking solutions to such difficulties, there will be accuracies as well as inaccuracies and these will all determine the success or failure of the business. The above is an indication that starting a business and running the business should not be an end in itself. You must seek for means through which the business will be able to stand the test of survival often posed by its competitors. The following lines are aimed at identifying ways through which a business can be financed, be it incorporated or unincorporated:

Unincorporated Business

This type of business will refer to those that have unlimited liabilities. In most cases, such businesses have not been properly documented and the status of legal personality is absent. There is no distinction between what the business owns from those of its owners. Keep in mind that in the event of any problem, the owners are personally liable for the debts of the company.

Any source of finance on this type of business organization will weigh on the owner. Keep in mind that there is no legal personality in the business and this will deter any lending institutions from providing capital to the business. What is normally open to owners of such businesses is finance through the use of credit cards or some other forms of personal savings. But the problem with using credit cards is great. Remember that you may sometimes make use of these cards out of intuition. It is simple to ‘charge it’.

For this reason, there are lots and lots of lending institutions which will be afraid or unwilling to lend to unincorporated associations. They will not want to place their finances in ventures in which they are uncertain about their future. A good number of such businesses have been known to disregard certain essentials in running the business or even in repaying back their loans.

Incorporated Businesses

These are businesses that have fulfilled all the essentials of setting up a business and that have adequate cover in the event of any crises. Such types of businesses will include limited liability companies or partnerships. In most cases, the records of these businesses are open for appraisal and the administration of such businesses will conform to the required business standards.

It is very easy for these types of businesses to receive the required finances. Keep in mind that lending institutions are more confident of their ability and willingness to pay back. Financing with such businesses will be easily obtained at any phase of the business. Remember that there are lots of individuals as well as groups who will be willing to come in with finance that the business needs. This is however possible only when the appropriate individuals or groups have been identified. This type of situation is known as angel financing. Remember that when a business is properly administered and it has a sound reputation, it will attract more investors. Investors will also find it appropriate to be part and parcel of the current affairs of the business.

Besides the above type of financing, there are also many financiers who are willing and able to invest in high risk ventures, but with an expectation of equally taking home more profits. The business can also make open its shares for acquisition by the general public. In some cases, banks and other finance institutions will be willing to finance these businesses if they see a convincing business plan. However, if you are in search of any means to finance your business, it is necessary to carry out proper research ahead of resorting to any source of finance.

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Tags: Business Organization, Business Owner, Business Owners, Debts, Distinction, Failure, Financial Responsibilities, Financing A Small Business, Inaccuracies, Intuition, Legal Personality, Lending Institutions, Liabilities, Personal Savings, Running A Business, Seeking Solutions, Stratton, Survival, Unincorporated Business, Using Credit Cards

Every Small Business Owner Will Need to Know How to Get a Business Loan

William Acosta asked:

Every small business owner, at one point or another, will need a little financial help in order to pay employees, finance expansion, or purchase inventory; therefore, every owner will need to know how to get a business loan. Successfully applying for a small business loan consists of several steps and necessitates a lot of paperwork. These consist of a sound and feasible business plan, strong personal and/or business credit history, business experience, and the education of the business owner. While a bank or financial institution’s acceptance of a loan application is highly subjective, completion of these steps will increase the likelihood of success.

The most important aspect of attaining a small business loan that a business owner can have the greatest effect upon is the formulation of a strong, confident, and financially feasible business plan. A business plan is, in essence, a written presentation of your business idea. It should include a clear and concise delineation of your business model. State what your business will provide (goods or services), how it will provide this, and why customers would want to purchase such goods or services. It should also include a realistic profit analysis.

A profit analysis lists the predicted costs of business (labor costs, inventory, controllable costs, and uncontrollable costs) versus the expected earnings brought into the business through sales. A business plan should also include details about the location of the business, expected amount of employees, and average monthly cost to maintain the upkeep of the storefront.

As with any loan, and small business loan is largely dependent upon the credit history of the individual or the business. A business credit history is the same thing as a personal credit history. The only difference is that a personal credit history is associated with an individual and a business credit history is associated with a business entity. If you are a first time business owner, then this may be the same history. Banks or lending institutions use this history to help them determine a risky loan from a solid loan.

Banks or lending institutions also take into account your previous business experience. Highlight any previous successful business ventures. Even unsuccessful ventures can prove your business savvy. Any experience can illustrate that you have experience in learning how to get a business loan. Banks or lending institutions also place a lot of weight on education. They do this because of the correlation between education and success. Those who do not graduate high school earn about fifteen thousand dollars per year. If you graduate high school the average person earns thirty thousand per year. College graduates earn almost double that on average.  Therefore, banks or other lending institutions emphasize the importance of education. Especially education related to business. Make sure to highlight any business degrees from technical or traditional colleges.

Small business loans are not easy to get. However, it a business owner approaches a loaning institution with a sound business plan, a strong credit history, a convincing education, and extensive business experience can help improve the possibility of a successful business loan application.

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Tags: Small Business Owner

Lebanon: Many Businesses Plan to Expand, Despite Unrest

business news asked:

Copyright 2008 IPS - Inter Press Service/Global Information Network

BEIRUT, Lebanon, Feb 6 2008

The year 2008 has already been grim for most Lebanese businesses: Struggles with the nation’s permanent protest movement, security problems, a brief war in a Palestinian refugee camp and sporadic bombings have brought the nation to its knees.

Most recently a bomb tore through the bustling Chevrolet area on the outskirts of Beirut on Jan. 25, killing Captain Wissam Eid from the Internal Security Forces.

As the political situation tips further in the direction of widespread insecurity, however, Lebanese businesses around the country are clinging to the motto, "the show must go on." Expansion seems to be the word on the street in Beirut, no matter what the uncertain future may hold.

ABC, a major department store and mall with seven outlets, two main flagship stores and a staff of more than 1,000 is currently revamping one of its main branches in Dbayeh.

"In March, we are also launching a new section extending over an entire floor of 8,000 square meters dedicated to children, dubbed Kidsville. It will also include a 500 square meter playground, an array of kids’ accessories and a coffee shop, La Mie Doree," said Robert Fadel, ABC’s general manager. A second big store in the Ashrafieh suburb of Beirut is adding an extension for a playground that will fill an expanse of 800 square meters.

The Johnny R. Saade group is also jumping on the expansion bandwagon. Its travel and tourism arm, Wild Discovery, will be setting up shop in Kaslik in northeast Lebanon in a few months.

"We decided to push forward with the opening of new branches in Lebanon despite the prevailing situation, following the simple strategy that one has to invest and position oneself in times of relative crisis to prepare for the inevitable economic and political recovery that can be foreseen," said Sandro Saade, one of company’s owners.

"This opening is also justified by a strategic objective to cover the northern Beirut area, where there is a demand for high-quality travel services."

The company’s real estate arm boasts a $30 million residential project sprawling over 18,000 square meters in one of Beirut’s posh suburbs. In addition, the group is developing a winery in Bekaa Valley, near the villages of Kefraya and Tell-Denoub, covering a 50-hectare swath of land. The project is estimated at $25 million and will employ 50 people, excluding seasonal workers.

"The Lebanon venture will also integrate two other complementary projects, namely a wine museum and a boutique hotel, or ‘h"tel de charme’" with 30 to 35 rooms, said Karim Saade, another company owner.

It is not just big names that are taking a leap of faith into the murky Lebanese waters.

Nehme Lebbos, founder of Iloubnan, a news portal for Lebanon, left his home country in 1991 and worked as an IT consultant for 12 years in France before coming back.

"I wanted to come back ever since I left. I started IIoubnan in March 2005 with the help of my wife, a French journalist," Lebbos said. "It is a Web magazine dovetailed with an e-commerce wing."

The young entrepreneur has poured all his savings into this venture, relying on a bank loan, as well. The company’s recent success has allowed for an increase in operations, with four journalists employed on a full-time basis and a network of 20 freelance journalists around the world.

A shared vision of Lebanon seems to cement together the diverse business figures. "Lebanon is our homeland and we believe in our country," Fadel said. On the other hand, Lebbos is conscious of the risks he might incur but is nonetheless determined to promote change in his home country.

Although most companies are investing in Lebanon, many have also looked to taking their business abroad. ABC will be opening in Jordan in March. "The company will bring to the Jordanian market a spirit of Lebanon, and aims at becoming a leading and trendy shopping destination," Fadel said.

Similarly, the Saade brothers are relying on an international network of agencies for their tourism activity as well as launching a new winery in neighboring Syria. The group is trying to counter the negative business environment by highlighting the quality of its services. And so Wild Discovery is investing in an in-house sales training program expected to enhance its team’s knowledge and technical skills.

For most entrepreneurs, the essential rationale linking their projects is endorsing Lebanon as a brand in the region. Lebbos believes that this cannot be done without the help of young Lebanese people. "They need to travel, study abroad, graduate and experience foreign countries," he said, and "then come back and invest in Lebanon."

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Tags: Political Situation