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The Key to Small Business Success: Creating Something That People Want

Many people dream of becoming their own boss; indeed, the idea of being in charge and calling the shots is very appealing. However, only a small percentage of those with an idea and a desire to start their own small business do so – and the unfortunate reality is that an even smaller percentage actually succeeds. The fact is, slightly more than half of small businesses fail within their first 5 years. And if you are a first time entrepreneur, the odds are further stacked against you.

The reasons that a small business might not survive are many and commonly include a lack of sufficient capital, poor management or no idea how to effectively market. But one of the biggest mistakes that an aspiring small business owner can make is made at the formative stage: Deciding to start a business that nobody else cares about.

The idea of starting a new business is undeniably exciting, but just because the person with the idea thinks it’s brilliant and will change the face of industry, there’s no guarantee that anyone else will be interested in whatever’s being offered. This is why it is critical that a diligent amount of market research be conducted. Is there actual demand? Can it be proven that customers will be willing and able to pay for the product or service being offered? Are similar companies thriving?

Unless these questions can be answered in the affirmative, it might not be the right time to start a small business.

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Things to Consider When Making International Hiring Decisions

The world is getting smaller with each passing day. You can now collaborate with and hire people on the other side of the globe. This is an exciting possibility for business owners. It can result in financial savings as well as collaboration with people from various cultures and innovative ways of doing things. When you’re in the position of hiring people outside of your country, you’ll want to think through a few issues.

Saving Money and Handling Financial Contracts

One of the larger advantages of hiring people in another country is the amount of money that your business can potentially save. You might find that you can cut business expenses by half or more through hiring employees from other countries. If you need a programmer, for example, you might very well find a skilled coder who lives on another continent. His costs of living may be lower and he can afford to do the work you need for a fraction of the cost in your own country. You will just want to clarify the method and amount of compensation in writing so that there are no misunderstandings. Some services also act as intermediaries when hiring freelancers from other countries. Taking advantage of these services can often save you hassles because they handle the legal and monetary aspects of the contract.

Managing Communication Issues

The most challenging aspect of hiring an employee in another country is the potential miscommunication that can result from not speaking the same language. In some work environments, this is not as much of an issue. Translators can be brought in to discuss the most important information. In other situations, however, miscommunication can present a large cost to your bottom line. You will want to be sure that there are no significant language barriers before hiring.

With some careful investigation and thoughtful decision-making, hiring international workers can give your business an edge.

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Getting Started With a Small Business

Starting a small business can be an exciting adventure, but it can also be overwhelming, stressful, and confusing, especially if you’re relatively new to business and have no idea where to begin. If you’ve decided to start your own business, you’ve already made one important decision: Taking control of your own career.

When starting any type of business, there are some fundamental steps you’ll need to take in order to make sure the process goes smoothly. Your goals should include long-term success, loyal customers, and the ability to stay afloat among competition. Below is a brief list of points that will get you started in the small business world.

  • When deciding on a business idea, stick with something you’re good at or something you know a lot about. Hobbies have been proven success stories in the small business arena. If you love baking, open a bakery. If you’re a sports nut, open a sporting goods store. Loving what you do is important.
  • Establish a sound business plan. Know what your goals are and explain how you plan to reach them. The business plan is basically the blueprint for your business. Make it detailed, easy to follow, and make sure it is well written. Without a business plan, your business has no guide.
  • Secure the right amount of financing. There are plenty of resources available on the Internet to help you understand more about this. Make sure your business plan explains your funding plan. Banks are hesitant to loan large amounts of money to start-ups, so growing your business slowly may be a good idea.
  • Be sure you have the required licenses/paperwork in order for your business to operate. You can get this information easily by contacting the municipality where your business will be located. Having the right paperwork will ensure smooth business operations.
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Choosing the Right Name for Your Business

Choosing a name for your business involves more thought than you may think. Once a name is chosen and registered, it’s very difficult to change. Your business publications, business cards, and the items you produce all revolve around the name of the business.  When choosing a name, it’s important to keep your core business values in mind and make sure the name fits the business.

Many people employ professional naming firms when attempting to develop a name that fits the business as a whole. These firms can also address any issues that could arise with trademark copyrights and violations. The fees they charge can sometimes be quite high, but with all of the information they possess and the help they offer, it’s worth it in most cases.

The name of a business should convey more than just what the business does or offers. A message should be conveyed as well. You’ll need to decide what that message should be. It could be that the company is specialized or knowledgeable, or that discounts are offered. Always develop a list of names.

Ask others for input—friends, family, fellow business owners—and then narrow the original list even further. When doing this, be sure the name carries no misinterpretations and that it conveys a positive message about your business. Be sure the name works well within your marketing plan and keep future expansion in mind as well. Some names based on the location of the company don’t work as well if you plan to expand.

When you’ve chosen a name, make sure you go about registering it correctly and be sure you can use it legally. Registration of business names varies by state, so be sure to check on the rules for your state. It’s recommended that, to avoid trademark infringements, you search in the Thomas Register.

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What Do I Need to Know to Start a Home-Based Business?

Many people manage their own careers through home-based businesses every year. These businesses range from freelance writing to website design to small daycare centers. If you’ve found that you need more freedom in your workday or have troubles working the normal 9-to-5 grind because of family or other obligations, then a home-based business may be just what you’re looking for.

If you already have an idea in mind for your own home-based business, remember that it is still a business and should operate like one. As such, there are certain points that you should keep in mind in order to ensure your knew business is successful.

  • As with any other type of business, it’s important to develop a sound business plan. This will help you further narrow the list of services you’re going to offer and will also outline your marketing strategies. Occasionally, clients will ask to see your business plan when deciding whether or not to work with you.
  • Because no business is the same as the next, it’s very important for you to determine where your target market lies. Once that is done, you can identify potential clients and get in touch with them regarding the services you offer.
  • Your home office is very important and should be treated as regular office space would be. Keep things organized and easily retrievable. Home office space should be separate from the rest of your house, preferably somewhere quiet so your work isn’t disturbed. A home-based business is still a job and will have deadlines that must be kept.
  • Creating a website for your home-based business is highly recommended. As with any other kind of business, a well-developed, easily navigable website will “put you on the map.” An Internet presence further markets your services and can even bring in international customers in addition to adding more local clients.
  • Keep all appointments and deadlines, be punctual and courteous, and be willing to work with clients.
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Why Reliable Export Partners Are Important

When you decide to take your business into international markets via exports, there are many important factors to consider—target markets, business plans, and pricing strategies among others—but perhaps the most significant item is that you have reliable export partners in the foreign markets.

There are numerous candidates available to partner with and choosing from them probably isn’t easy. However, there are steps to follow in order to be sure the person you’re trading with will be reliable throughout your relationship. Those steps are as follows:

  • Before beginning any type of business, be sure you have all relevant contact information for potential partners, including telephone numbers, business addresses, and email addresses. Confirm that all of the information belongs to the same business.
  • When you have telephone numbers for potential partners, always call them before conducting any sort of business or exchange of goods. Be sure the contact actually works for the company and make sure the number you’re calling is a fixed number, rather than a cell phone number.
  • In many foreign markets, you can research the backgrounds and credit information on almost any company within that country. If possible, do so. While credit reports are sometimes a matter of public record in other countries, you can also further your knowledge on the company by ordering a credit report.
  • Always make sure the foreign company is registered as such within its country. Asking for a Certificate of Good Standing from a foreign partner is always a good idea as well. This way, you’ll know the company is what it says it is and that it operates as it should.

By following these steps, you will learn more about potential business partners in foreign markets, thus making your final choice much easier. A strong and lasting export relationship is key to the success of any export business.

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Starting an Export Business

You’ve gotten your business off the ground and have a steady cash flow and a great base of loyal customers, but you’re looking to expand a bit. Exporting your goods and/or services seems like the logical next step, right? It’s not a bad idea, but be aware of the fact that it takes quite a bit of work and can be very time-consuming. As with your original business plan, the success of an export business depends on a solid business plan and business management.

The steps below will help you get started on the road to taking your business and its products to international markets:

  • After identifying your target foreign markets, you can acquire helpful items such as business contacts, manufacturing lists, and other types of industry directories by contacting the consulates/embassies in those countries.
  • Always stay in contact with the consulates in those countries and contact the tax departments to acquire a registration number for all of your exports.
  • Make sure to find out if the government requires any special licensing to operate an export business. If so, acquire a license as quickly as possible so you can begin exporting goods to your foreign markets.
  • Always check and make sure your goods/services are okay to be exported. There are “high risk” and “low risk” items, and if you’re a first time exporter, sticking to low risk items is always a good idea until you get your footing in the foreign markets.
  • Beware of trade embargoes or barriers. Check with your government and ask if any exist with the countries you want to export to. Check with the foreign governments as well to make sure no restrictions on goods/services exist.
  • Get a letter of credit from your bank. This will allow you to trade in foreign markets and will help lower any risks while trading. Banks will always ensure goods and services are delivered.
Filed Under: Business, Import/Export Tagged With: , , ,

First-Year Success in Business

The first year of business operation is the most crucial. Your performance over those first twelve months will ultimately show whether your business is set to fail or grow exponentially and operate smoothly. The first year of business operation is important for numerous reasons. Typically, those months are when your business will spend the most money. After all, it takes time to build your product, as well as a loyal customer base for it.

Because the first year will determine whether your business will succeed or fail, there are many important tips to follow to ensure success and a loyal customer base. The following is a brief list of points to consider during your first year of business operations:

  • Keep an eye on taxes. Many new business owners forget about payroll taxes and thus fall behind in payments. Once behind, it’s hard to get back on track with limited funds. Budgeting taxes into your business plan is the best way to combat this.
  • Beware of high expectations the first year. Many new businesses won’t bring in a ton of money in the first twelve months. Having modest expectations/projections for your business is a great way to keep from seeing your operation as a failure when it’s anything but.
  • Take the time to learn about your product and your target markets. The first year of a business is the best time for this. Start as soon as possible. It takes time to learn a product inside and out, and the more you know about your target market, the better your marketing and sales strategies will be.
  • Always remember that failure isn’t bad in every case. If, for some reason, you find your business heading south, keep in mind that closing a business is better than hemorrhaging money. It only leads to more bills. Yes, sometimes failure is okay.
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How to Buy and Sell Internationally

Whether your business is importing or exporting goods to foreign countries, you will need some kind of business agreement with the person you are buying or selling from. This can be difficult as you may have different languages and different legal requirements to follow. It is important to reach some kind of agreement with the party, so that if something were to occur in or after transit to the products, you are both covered.

The business agreement should provide a clear description of the product that you are providing. You will want it’s exact specifications, including size, weight and dimension. This is so if anything is damaged in transit between countries, you know what you did or did not get. Also, was shipping covered by you or the person that you are doing business with? These are important items to discuss so that you are both clear in your expectations.

This product should have distinct pricing guidelines, with a receipt. After the price is set you will need to agree on how the product will be paid for. Will it be paid for by credit, open account, consignment or some kind of bartering arrangement. If there is damage to the product, how will this be dealt with and who will lose their money in the arrangement-one or both of you? Written contracts made before the items are shipped are the best way to ensure that if an item does arrived damaged, there is a solution that will make everyone satisfied.

Finally, you should know all the legal regulations in importing and exporting goods to other countries. Your products may be taxed in the United States and the other country, there may difficulties in resolving any disputes over products damaged or not received. Also, one must know that monetary exchange rates may make it difficult to conduct business.

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Setting Up Your Own Coffee Shop Business

Starbucks logo
Image via Wikipedia

Starting your business requires a lot of forethought and planning, especially when it involves the food industry.  Whether you are starting a business on your own or through a franchise, there are business plans, licences, venues and start up costs to think about, not to mention the funding required.

A coffee shop is a good business to get into in North America as we have a culture of having coffee on the run and franchises like Starbucks and Tim Hortons have paved the way for us.  When you decide to open a coffee shop, you need to research the business plan thoroughly.  Make sure that the venue you have chosen is suitable to the type of business you plan to open and that there is market out there for your coffee shop.

Funding is a key factor and you will need restaurant supplies.  Everything from equipment to  brew the coffee to the glassware you intend to serve it on.  These things can quickly add up and it is best to keep your operating costs as low as possible until you are confident and up and running. You can get these supplies at a discounted rate from internet supplies who specialize in this type of business.

It can be alarming how quickly available funds are eaten up, so make sure you do your homework and account for every tiny detail in your business plan. This is a case where success will be in the minute details so don’t hurry this process along.  Take your time and consult professionals to help you in your new business venture.

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