The Australian Small Business Guide to the Festive Season

Poor trading conditions have seen an increase in the number of businesses collapsing, especially small businesses. Strained cash flow has meant that small businesses are feeling the pressure, but with the festive season up ahead, companies do have a chance to develop a competitive advantage if they plan efficiently. Evaluating your expenses, cutting back on running costs and choosing to rent office space for shorter spans of time can all make the difference to your bottom line. And, importantly, as we head closer to the end of the year, planning effectively for the festive season could see your business start the new year in a stronger position.

The Current Climate For The Local Small Business

The Australian Securities and Investment Commission (ASIC) has released figures showing that 81% of businesses that filed for insolvency in 2012/2013 had been small businesses with less than 20 employees. The construction industry fared the worst of all, accounting for 24% of the total number of insolvencies. It was followed by the retail sector, which contributed to 10% of collapsed business endeavours.

And, the experts say, when large companies go under, smaller companies are likely to follow in their footsteps. Because of the complex nature of business relationships, smaller companies that rely on the business of their larger counterparts will suffer a loss in revenue when that channel is closed. By way of example, the collapse in the construction industry has had a ripple effect and affected transport companies, excavation and building as well. And, as things become tougher, profit margins are also shrinking back.

The ASIC says that 42% of collapsed businesses cited poor strategic business management as the biggest reason for failure. 41% blamed high cash use or poor cash flow for their demise, while 32% said they were running at a loss. The tightening of regulations by the Australian Taxation Office has also been identified as one of the factors that has turned the pressure up on small businesses.

Using The Festive Season To Create Opportunities And Influence People

The festive season is the biggest spending period in the local consumer buying calendar. And this year the experts say that consumers are looking for great deals as well as exemplary customer service when they are doing their shopping. Businesses that want to turn things around should be planning their Christmas campaigns and getting ready to create more sales opportunities.

November: Getting Your Shop In Order

The next few weeks will be invaluable for businesses as we approach the Christmas season. Businesses are encouraged to maintain good communication channels with their clients in the lead up to December. A loyalty program is an effective way to create targeted campaigns that result in more sales. Early bird promotions and offers are also best suited a few months ahead of a big spending period, as they allow you to extend it. You can do this by promoting your offers on social media channels, app messages, text and email marketing to your client base. Do some work for your customers too- tell them what makes a special gift and let them know which of your items could sell out ahead of the festive season, as an incentive for them to get their shopping done earlier.

So, why is it important to get it all done now? Research shows that together November and December are responsible for between 20 and 40% of annual sales. By the end of November you can start introducing festive season graphic elements to your correspondence. For businesses offering customized gifts, an early start is important so you can have the goods ready on time. Also think about offering value-added services like gift wrapping, or free shipping, if you operate online, for people who order before November.

Putting The Finishes Touches On For December

December is equally important, as it is at this time that people have their extra cash in hand and are looking for wise ways to spend it. Gift vouchers are good to have, as they provide the universal solution for the person who has everything. As you get closer to December be more specific and provide more guidance on gift selection and product detail.

Starting A New Business During Economic Hardship

The current economic downturn has made life difficult for many businesses. This may make you think that it would be a bad time to consider setting up a new business but this may not be the case. Careful planning and the use of existing facilities can help reduce start-up costs. It is useful to consider the following points.

Simple Is Best

The usual advice when starting a new business is to ensure that you have found a niche market and this has worked very well for many successful businessmen including Tunde Folawiyo. In times of economic hardships it is also better to look for a business idea that is simple. Many businessmen have started a business because they themselves had a need for that product or service. This can make it easier to devise your business plan as you will have personally experienced the gap in the market. This will make you perfectly qualified to devise a product or service that will fill that gap and meet customer needs.

Use Existing Resources

Initial costs to start a business can be very high and it can be difficult to find financing when the economy is struggling. It makes sense to try and reduce start-up costs wherever possible and using existing resources can help. Laptops and smart phones are extremely common and most will have the necessary business technology. Existing laptops can be used for video conferencing to reduce phone costs and can be utilized for internet marketing to spread the word about your new business. This would reduce the need to pay for marketing.

Inventive Financing

It can be difficult to get a bank loan for a business start-up in times of economic hardship. Successful businessmen such as Tunde Folawiyo know that sometimes you have to be inventive to be successful in business and financing a new business is no exception to this rule. It may be possible to meet most start-up costs through credit cards. Asking customers to pay in advance can also generate enough of a cash flow to cover some of the costs. One of the main benefits of financing your new business in this way rather than seeking financing from investors is that you will retain complete control over your business and will not have to answer to anyone else.

Sell Yourself

As the owner and creator of the business, you will be its recognisable face. It is vital that you can sell your ideas and your vision for the business. This applies whether you are talking to customers, potential investors or new customers. It is important that you can demonstrate a strong sense of self belief particularly when the economy is struggling. If you don't believe in yourself then neither will others.

It Will Get Better

Starting a business in times of economic hardship may not seem like the right time but the economy will improve. So even if things are difficult at the start you can console yourself with the thought that you are dealing with the worse times immediately and things will improve as hopefully your business will grow along with the economy.

9 Good Reasons Why 50+ Entrepreneurship is in the Cards For You

If you're in your 50s or even older, you may think that you don't have what it takes to start a business. This isn't the case at all. In fact, in some instances you may be in a better position to be an entrepreneur. Whether you succeed or not is never guaranteed, of course, but there's a good chance that you're going to be able to reach all your goals. Keep reading for some specific ways you will have an easier time of starting a new company.

50+ Entrepreneurship Makes Sense

Here's a look at nine different ways that entrepreneurship makes sense for those who are 50 years of age or older.

1. More Experience - Because you've lived longer, you're going to have more life experience, which is really worth something in the modern world. Your 50s are one of the best times to start a business if you want to avoid mistakes. 
2. More Resources - Being in your 50s or older, there's also a good chance you're going to have more financial resources available to you. Whether this is through savings or some other means, this can make or break a new company. 
3. Bigger Network - Let's not forget a large network of people - which is really useful as well. This can really be useful in a lot of different ways if you're thinking of starting a company. 
4. Personal Support - You're also likely to have more family support if you're in your 50s. If you have children there's a good chance they're going to be grown and in college, which means you have less responsibilities and can concentrate on a business. 
5. Help Available - Additionally, the current job market should be taken into consideration. For example, a lot of recent graduates are trying hard to get a job and looking for good work. Now is a great time to hire fresh faces out of college. 
6. Government Assistance - You may also be eligible to get assistance from the government because of your age. You'll have to check local and state places for this information, but it's not hard to do. 
7. Internet Expansion - The Internet is growing all the time. Now's a great time for people of any age group to start their own business, but people in their 50s have an even better chance to tap into this evolving market. 
8. More Courage - This isn't going to be true for everyone, but there's a good chance that if you've made it to your 50s, you have quite a bit of courage that you can use to overcome obstacles. 
9. More Time - Last but not least, in your 50s there's a good chance you're going to have a lot more time to start a business.

Do you have any other tips for starting a business in your 50s? If so, leave a comment below and let us know. We love to hear from our "slightly older" readers!

Written by: Sara Xiang likes to purchase frozen rabbits online because it's easiest to feed her reptiles that way. When not working on other things, she likes to write articles to market with content online.

3 Tips to Simplifying Your Business's Payroll

Managing a business is never simple, especially when you begin to employ other individuals who work for you. When you want to run your business properly, having a clear grasp on your financial situation is essential at all times. Knowing how to simplify your company's payroll can help rid the stress of worrying about taxes and fees you may owe in the future. The more actively involved you become with your company's financial status, the easier it is to achieve success in any industry.

Work With a Professional

Working together with a professional CPA (Certified Public Accountant) or a business accountant is ideal whether you have just recently launched a startup company or if you want to manage a larger corporation responsibly. Professional accountants are capable of gaining insight into your financial picture quickly, giving you different options and routes to take to ensure you continue to profit and maintain stability. Utilizing the services of an online payroll provider provides many advantages, such as:

Use Software Regularly

Installing your own software to track payroll expenses as well as other financial investments or expenses can help you to stay in control of your business in all areas, including finances. There are many different programs that allow you to easily keep track of your investments as well as taxes that are due based on your employees' earnings or salaries. Using software regularly on a daily basis not only allows you to monitor sales and profit, but it also gives you more knowledge of the financial overview of all areas of your business. Just be sure to invest in software that provides quick input of required information (such as employee address, salary, deductions, marital status, etc.) and automatically totals taxes and withholding. 

Research the Affordable Care Act

You can also research the affordable care act to compare all of the options you have when it comes to your employees and their healthcare. By choosing a new healthcare plan to help cover your employees, you may need to re-configure the amount of payroll taxes you owe quarterly or annually, depending on the size of your business and the number of employees you have hired. To learn more about the affordable care act and how it can influence you personally and your business, click here.

Learning how to simplify your business's payroll can ultimately help to relieve you from stress and worry while ensuring all taxes and fees are always paid on time. The more engaged and involved you are with handling the finances of your company, the easier it is to build a successful business regardless of whether you are trying to launch an online eCommerce store or if you have a local business you plan to open.

Following these tips will result in significantly less stress as you prepare to tackle your businesses’ payroll.

Author Bio
Karleia is a freelance blogger. Away from the office and doing business she enjoys spending time with her two young daughters and husband.

Business Economics 101 - How To Balance A Business Budget

Business economics deals with the strategies, organization, and management of a business. Budgets are extremely important to any business and are difficult to manage even at the best of times. It’s best to expect the unexpected; as the business is most likely never static, neither will the budget be.

Budgeting Benefits

Simply put, budgeting helps establishments manage their costs. It can aid with knowing whether or not the profit goals can be met, and if applicable, what they should even be. They help set a certain kind of control for a business to run with. Planning during business peaks can help determine the best times to add additional inventory or labor, or when to decrease labor and plan vacations for employees, plan meetings, etc. It’s always important to keep the budget updated as well, on a monthly basis. Make cuts in labor or inventory where necessary, or add. One of any business’ priorities should be to try to manage the budget well.

Adjusting And Stabilizing Budgets

It is recommended to adjust the budget of any business to see if there is any room for improvement. Adjusting budgets can be quite the risk, but they can end up being well worth it. Wait to see what the results of the income will be, and if it’s positive, then it may be plausible to keep going with the new set budget. It’s also critical to be able to effectively respond to unexpected budget cuts. If an important customer decides that their own budget cannot support purchasing the business’s goods or services, notice how long it affects the amount of money lost. Within that range of time, a business could look for a new, reliable client to at least have some sort of stability with budget.

Strategies For Businesses

An effective strategy to maintain a balanced budget and to keep the profits sort of ‘locked’ is to introduce employee performance bonuses. Employees will have an incentive to work extra hard to sell the brand product or service in order to meet the company’s ideal quota, and to receive the bonus. A business must know how to trim their expenses when needed, and know how long a set amount of money (from profit) can last them, and what it can be used for in benefit for the company. Lowering expectations for revenue and upping the cost of everything (while planning out the budget for the month) can aid in maintaining it. That however requires becoming more conservative as an owner or employee in charge. Less expensive equipment may be purchased or borrowed—not all offices need the top of the line computer brand.

Being conservative about everything in a business however could be a downfall. It’s important to know when it would be okay to reach for certain investments. And although adjusting a budget is okay in order to see how it plays out, it is wise to stick to the most efficient budget in any month throughout the year. Of course, revenues for businesses always depend given the time of the year. Everything should be taken account for when financing is involved.

Author Bio
Loren is a financial consultant working with a Mortgage Firm. She is a frequent Pinterest user. Recently she found about rapid advance reviews on Pinterest and how they help business grow when they are stuck financially.

Becoming Your Own Boss: It’s Never Too Late

Some people look forward to retirement for most of their working lives and can’t wait to stop the daily grind. However, for others the prospect of giving up a career isn’t so appealing. 

If you’re in this position, you may want to consider launching your own business. After all, there are lots of benefits associated with entrepreneurship. Being the boss of yourself might sound good but is not so easy. 

There is a lot of stress and you might find yourself working too many hours. Since this is your own job, you have to make sure everything works fine. You can start as a professional individual or start a company. That depends on your personal goals and ambitions.

By starting a company, you will become your own boss, meaning you can focus on issues that really interest you. In addition, while starting a firm certainly involves plenty of hard work, it also enables you to function according to your own schedule. 

This extra flexibility can be ideal as you get older. Furthermore, there are the financial plus points to consider. The cost of living is on the rise and many pensioners now find it tough to make ends meet. By starting a small business, you stand to boost your bank balance.

To increase your chances of success, it’s important to bear some fundamental principles in mind. For example, before committing money to projects, it’s vital that you do plenty of research. 

Thanks to the web, it’s now easier than ever to set about getting the information you require. You’ll need to determine the potential market for your goods or services and size up the competition out there. 

Achieving success in the world of enterprise hinges on being able to exploit workable gaps in the market. By spending some time and effort on establishing the facts, you can help to minimise the risks you face.

Meanwhile, you’ll also need to decide what sort of business you want to set up. Becoming a sole trader is the simplest option. 

However, it’s worth bearing in mind that if you register as a limited company instead, your personal assets will be protected if your venture runs into financial problems. Another option is to set up in partnership with other people.

Then there is insurance to think about. If you’re operating from your own property, you may need to change your existing home insurance to reflect this. Also, if you employ at least one member of staff you’ll need employers’ liability insurance. Depending on the nature of your organisation, you may need various other forms of financial protection too.

To help you get your company off the ground, it’s a good idea to seek out local support. Networking will help you build contacts and you can also get some top tips from fellow entrepreneurs. In addition, there may be groups in your area that offer mentoring services to fledgling companies, as well as funding opportunities.

As long as you are methodical when setting up your business, you stand to achieve potentially impressive results.

Retirement Offers you the Opportunity to Pursue Things Closest to Heart

All your life you worked hard. Now you are retiring with a significant amount as savings, pensions, and returns from investments. With plenty of time at hand, now you can engage in things that you always postponed for the lack of time. For many retirees, this translates to the opportunity of starting their own businesses. The availability of a lump-sum amount of spare money also supports the idea. Besides, sitting idle in retired life is undesirable. One of the best uses of time is to start your own business venture. However, you need to proceed systematically. If you are already sure about your business idea, then it is well and good. If you are unsure, you can consult am expert. 

Here are a few basic aspects that you need to consider when you are planning to start your business. 

Find an idea that involves calculated risk

All your life, you saved for the future after retirement. Now that the future is already here, you can partly let go the idea of saving for the ‘future’. That means, as a retiree, you have sufficient spare money to take more risks than when you were young. So, if a business involves risks, do not purview it from the cautious perspective you used when you were at a job. Instead, adopt a more carefree attitude than before on analyzing the plan. If you have to take some risks, so be it! Now, you can afford it. 

Analyze ideas close to your heart

Maybe, you always wanted to get into the movie production business. Now that you have the opportunity, check the different aspects of entering into the field. Do your research about the various ways you can enter into the field. Besides the major producers, many filmmakers also look for new producers to support their films. You have to be sure about the profitability of the film where you would be investing. Inquire about the required registrations and other aspects of getting into film production. You can act on any idea that has been always your unfulfilled ambition. You have but one life. Now is the time to fulfill your aspirations.

Leveraging past experiences

If you have been in the financial field, you can work as senior consultants. This applies to any field. You can always use your professional experience and monetize it after you retire. However, you need to check the relevance of your experience though. Also, you need to be confident of providing a fresh perspective on a field where you have worked throughout life. 

Participating in social causes

Many retirees also feel that after years of working for others, now is the time to give back to the society. So, you can set up a business surrounding a social cause. So many social issues can benefit from the profits of your new business. Homelessness, senior support, cannabis legalization and veterans support are just some of the burning issues that can benefit from your involvement. Besides, there is always scope for expanding your business in these fields. Take the legalization initiative for example. With two states (Washington and Colorado) legalizing recreational use, and talks ripe in many other states, this presents a huge business opportunity for the interested.

Author Bio: Marie is one of the leading consultants at best-binaryoptionsbroker.com. She frequently helps retirees on the fine details of how to set up a new business. Her acumen for evaluating the financial situations of her clients and suggesting customized solutions can be highly helpful to you.

Making it Work: How a Small Business Can Become Bigger

Most small business owners dream of expanding their business and turning their small business into a big one. However, dreams alone won’t transform your company. Business owners need to take action to continue to grow their business and to be ready when an opportunity presents itself to expand. Here are some tips to try when creating more growth in your business. 

Organic Growth

Most businesses will grow naturally over time due to marketing and advertising efforts reaching new customers and existing customers, and by spreading the word about the business. This organic growth is important, as some existing customers will leave over time for a variety of reasons. This means that a business that is not expanding its customer base continually, will not only fail to expand, but it will actually contract. Business owners need to carefully balance their time between maintaining existing customers, and reaching new ones in order to allow a business to grow over time. 

Financial Stability

For a business to grow, it must be financially stable. Though this can be a difficult task in the first few years that a business is in operation, even the youngest business can begin to build financial strength. A small cash reserve is a great place for a small business to start. This reserve can start small, and grow over time to meet any emergency expenses that a business may face. In addition, a business should foster relationships with financial institutions and other lenders. By having both cash and credit available, a business can confidently grow through the expansion of operations and the acquisition of competitors. 

Modern Technology

In many ways, modern technology has revolutionized small business. While a business can still benefit from the services of professionals, many tasks that business owners had to hire out in the past can be performed in-house. For example, business owners may choose to design and operate their own website to conduct business online. Products such as Domo BI dashbaords can help a business owner and other key employees to have fast access to important business measurements. This will aid in efficiently running the business. By using current technology, a business can work more efficiently and with a higher level of profitability. Find out more about new technologies and try to use each one to the company's advantage. Find out who common customers are and what type of advertising they will respond to. Where the ads are online will matter in how well the are received. Creating more customers through advertising is an age old method and will guarantee business growth.

While there is more to growing a business than fostering organic growth, building financial stability and using the best technology, these are three important areas for a business owner to focus. By working to grow a business, and being prepared for expansion, a business owner can position his or her small business for big things in the future. This ways you can be sure your company will grow in the right ways and become bigger than ever.

Expanding Your Business: 5 Necessary Positions to Fill to Ensure Future Growth

A business owner must look to the future and make plans accordingly. This will allow an entrepreneur to succeed without as many growing pains. To do so, a company must fill positions when anticipating growth. With that being said, here are five necessary positions to fill to ensure future growth.

Electrical engineers

When making plans for the future, many companies will need plenty of electrical engineers as they can help the organization save money and implement new strategies. Without a doubt, when a potential employee has an OU Masters Degree in Electrical Engineering, the company will have a good employee on its hands. Engineering career possibilities are huge, and a company must fill this void ahead of time.

Online marketing

It is no secret that Internet marketing has exploded in popularity in the past few years. This will continue as companies use SEO, Facebook and PPC to get more website visitors. Ideally, a business should support its marketing campaigns by hiring qualified and educated online marketing experts.

Accountant

At first, some entrepreneurs do their own taxes and bookkeeping. While this is a great way to save money, a company should hire a qualified professional. With an accountant, the organization can avoid problems with tax authorities. At the same time, when using an accountant and CPA together, the business will rarely have problems with the books and should save money on taxes.

Human resources

Most small business owners cannot justify the hiring of a full-time human resources worker. As time goes on, one will need to rethink this as an HR rep can help a business avoid breaking laws and can also foster employee relations. Remember, any serious company will have a qualified HR representative that work with the business and employees to make it better for everyone.

IT specialists

When running a small office, some opt to outsource the IT tasks such as server and computer maintenance. This will work to a point. However, when a company grows, it will need a comprehensive solution and will require multiple employees to manage the tasks. Luckily, when hiring qualified IT staff members, a company can have a smooth transition and will not suffer from any serious and irrecoverable errors.

When building a business, one must realize that it is crucial to look to the future. When anticipating problems and needs, an entrepreneur can make more money, and the business will grow faster and with fewer growing pains.

4 Tips for Managing Your Cash Flow

Learning to effectively manage your cash flow is the first lesson most entrepreneurs learn after they put their business plan in place and open the doors to their business. In the article, “How to Better Manage Your Cash Flow”, written for Entrepreneur.com, you learn that, “the lag time between the time you have to pay your suppliers and employees and the time you collect from your customers is the problem, and the solution is cash flow management.” If you follow some basic, common sense tips, you'll find that you can better manage your cash flow and meet your financial obligations in a timely fashion.


By considering recruitment factoring as a solution to your cash flow problems your business can continue to operate on a normal basis.

Tip #1-Try to measure your cash flow to prepare for the upcoming period. You’ll need to consider a variety of factors that contribute to your company’s income. Think about what you have on hand, your client’s payment history, any upcoming costs that you know you’ll have, and the amount of outlays that are coming up in your budget. This includes rent, payroll, benefits, any equipment that you need to buy, utility and fuel bills, and any loans that you have to make payment on. This is not an easy task and requires careful thought and planning but it must be done to run a successful business.

Tip #2-Try to create a plan to improve your receivables. This can include offering a discount to clients who meet their financial obligations to you quickly, asking for a deposit on orders made, and developing a cash-on-delivery plan for customers who don’t pay in a timely fashion. You’ll want your staff to issue invoices promptly and note on the documentation that payment is expected upon receipt of this bill. Another way to avoid problems with your account receivable clients is to do a credit check on them before merchandise is exchanged.

Tip #3-You need to effectively manage your payables. Don’t allow your expenses to expand faster than your sales; you must watch your expenses so that you don’t mismanage the funds that you have coming into your company. Use a variety of means to work with your vendors so that you can take advantage of discounts, flexible terms, and electronic payments that can be made on the final day that they are due.

Tip #4-You must manage your shortfalls quickly and efficiently. The wise entrepreneur will be aware of the shortfall early and take steps to remedy the situation. Whether you approach a bank, your suppliers, or a recruitment factoring programme for assistance, you will have a plan in place to help meet your financial obligations and preserve your company’s good credit rating and reputation. If you have experienced this shortfall in funds because of poor planning, you should obtain help with managing your cash flow so that you won’t have this experience in the future.

Keeping your business reputation and honouring your financial obligations are two of the most important aspects of running a successful company.

   

How to Turn a Nest Egg into a Windfall - The Groundwork

Is launching a small business or a start-up the recurring character in your dreams for a brighter future... except you don’t know the first thing about casting the part? Even in this economy, however you slice it, there’s money to be made by taking the entrepreneurial big leaps - the news bulletins are awash in success stories, rags-to-riches tips and even the odd oh-no-he-didn’t gasps. What’s to say yours won’t be the next business venture that carries the day on Wall Street? 

If you don’t have money to burn - and who does, these days? - but you’re considering putting your savings on the line for the chance of striking it big, take every precaution before plunging in head-first. Remember that some failure is predictable from the get-go and so, you should consider hedging your bets as best you can before putting your head on the block. 

1. Use online tools by way of planning ahead - the gung ho and the gunshy alike stand to profit from not going into a potentially costly affair on a wing and a prayer. Sorting out your finances beforehand, accounting for the initial expenses and tallying all the risks involved in founding a company are all necessary steps. A painless, free option is resorting to the Internet as your personal go-to financial adviser, which you can learn more about through just a couple of clicks. Playing it safe (being cost-conscious) and smart (getting customized financial advice) will save you money in the future.

2. Don’t discount the helping hands - even if this might not be the best time to play the market, there are still investors out there willing to gamble on start-ups. As for your presumably scanty knowledge about the investment game, you just need to keep in mind that thinking opportunistically about any venture, however dear to your heart, is all it takes, even if you’re not used to framing decisions in an economics-centric manner. If your business objectively needs more cash than you can provide, an angel investor or a venture capitalist can certainly be approached to shore it up. Even a friend or relative might be willing to pony up, just as long as you both agree to separate your professional relationship from the personal one.

3. Look out for new developments - take the trouble to scope out what other are doing and how the industry you’ve chosen to enter is faring. If you’re not yet sure about what area to go into, the Internet will provide you with more than one good idea and if you’re tech-savvy, all the better, as there are tens of avenues to choose from (of which mobile communication is the hottest right now). Regardless how advanced the industry of your choice already is - and you can look that kind of info up online, via business data aggregators, as well as putting in the legwork and the research work needed to get a read on all the players - think outside the box on ways to improve it.

It’s only at this point that you can start fine-tuning your concept, drawing up a business model and picking a catchy name for your new company. Once you get your ducks in a row, and the financing in the bag, there’s nothing preventing you from going after your dream full speed ahead.

Five Helpful Tips for Starting a New Business Start Up

Starting a new business is a long process that involves a large amount of work. It is also incredibly rewarding when successful. Startups need to make smart decisions and plans even before the business is officially running. Good planning can avoid many common mistakes made by startups. Five tips will help anyone to start a new business successfully.

Create a Strategy

The first step when starting a new business is to develop a strategy and overall vision. This is normally condensed into a business plan that can be used to raise capital. The strategy should cover the first five years of operations. It should include capital expenditures, estimated income, overhead and labor costs as well as product marketing strategies. This business plan becomes the roadmap for the new company.

Define the Legal Structure

The next step should be to define the legal structure of the startup. Many options are available from sole proprietorships and partnerships to limited liability companies and private corporations. This step requires some paperwork especially if other people are included in the structure. You should consider hiring a lawyer in order to expedite the filing process and minimize any complications. According to a prominent Mullins lawyer, a lawyer can also help to clarify which legal structure is best for the startup.

Hire a Good Staff

Most startups will need some type of staff. This could mean an information technology specialist to run an ecommerce website or a salesperson to work in a storefront. It is important to hire only qualified and experienced people who can help the business. Individuals should not be hired based on friendships or the idea that a position will appear later. It is important to consider who will handle the finances of the startup, the payroll, distribution and customer service. Hiring experienced and talented staff will help to make the business successful.

Identify Potential Customers

It is important to identify potential customer segments in the market as early as possible. This involves looking at the type of people who should be interested in a product or service. Identifying target customer segments will help to drive marketing and advertising efforts. It also helps with brand development over time. Identifying customers can be done through testing, small online campaigns or even through analysis of competitors.

Outsource When Necessary

The final tip for a new business is to outsource different jobs when necessary. A startup is not likely to have the assets or the expertise to handle every single area effectively. Outsourcing elements like payroll, order fulfillment or customer service will reduce costs and provide superior results.

How to Form a Marketing Plan for a Successful Business

To become a successful business, you need to have a feasible marketing plan that will attract potential customers. Without it, you are stuck with whatever it is you are doing, with the hopes that it will continue to work. But if you are looking to take your business by the reigns and get as much attention as your business deserves, you can create a marketing plan that will attract many more customers and potential clients. Here are some tips on how to form a marketing plan for a successful business. 

Set Your Goals

If you have no destination in mind, then you’ll never know where to set your sails. When you begin a marketing plan, it is important to set attainable goals that will give your business an idea of where you want to be, and also keep you motivated during the process. With your marketing plan goals, you should specifically state exactly what it is that you are trying to market, and who you should market it to. Defining these few elements can help form a marketing plan much easier than not having any idea of where it is you want to be. Make sure everyone you work with understands the goals and is as motivated as you are in achieving them.

Budget Your Plan

Marketing should be a valuable part of your business. That said, it deserves money to be spent on it and should be considered just as valuable as other elements that make up your business. However, its important not to throw money into marketing that won’t work. If you put all of your money into marketing that no one will hear or see, your money would be spent better elsewhere. Make sure that you know how much money to spend, and where to spend it when marketing. Come up with a variety of ideas and choose the one best for your company.

Innovative Marketing Techniques

With the advancement of technology, there is always something new and exciting that a business can implement to set themselves apart from other companies. This includes social media integration, SEO services, pay-per-click marketing and more. There are ways to get images for your company and present a marketing plan with resources like infographic world. A well-created image will be able to generate interest and provide detailed information that other marketing techniques cannot comply with. Being aware of technology and the possible elements around you will certainly help with a marketing plan.

Accountable Actions

When you make a marketing plan, be sure that everyone in your business is aware of what their responsibilities are and how they can help. Your team must be accountable for the things that they do, the time line in place, and the results that are expected. Having this accountability for your team will organize everything much more clearly, which will have long-lasting results for your marketing plan.

Marketing is one of the most valuable parts of any business. But in order to maximize your efforts, it has to be done right. Keep in mind the tips on this list on how to form a marketing plan for a successful business and you will stay on the right path to attract your customers.

Guard Your Small Business: Get Legal Protection!

Operating a small business involves risks and different issues. Some of them would be manageable, but there are few that can only be resolved through legal actions. When you are starting a small enterprise, you need to work hard and make decisions mostly on your own. This means that your excellent training and comprehensive knowledge about business, finance and other significant areas do not guarantee absolute business success. 

First times are always the hardest, where crucial decisions have to be made and expect that some of them wouldn’t work and may lead to failure. But according to author Robert H. Schuller, “Tough times never last, but tough people do!” So be strong and be positive that you can achieve your business goals. 

Before you started your operation, you have definitely studied your market extensively. Careful consideration of your capital requirements and other essential matters was done. If you had laid out your business plan perfectly and have made a remarkable start, then all you need to do is focus on your goal, keep on studying, always check on business weather forecast, prepare for the storm, get your business well protected, and let it grow for a much bigger success!

But before you imagine success, you have to know some of the common legal issues that could affect your business. 

Hiring. A budding enterprise usually cannot afford the luxuries of maintaining an in-house legal counsel and human resource department that could flawlessly implement the legal rules on hiring employees. So, it is important that you know fundamental guidelines, especially on the issues of discrimination, respect to applicant’s rights, wage, benefits, and related rules. From the interview to background checking to job offer and to outlining and signing of contract, you have to be careful; otherwise, you will be stepping on a landmine that could explode and damage your business. 

Firing. In firing an employee, diplomacy is very important. There are existing termination guidelines to be observed, policies to be followed consistently, proper documents to be prepared, and legal ways to be done. Know the legalities and avoid the explosive problems when it comes to employee termination. 

Intellectual Property. In various circumstances, to have a license for intellectual property rights will effectively help in achieving your business goals, especially when you are starting a new business, expanding it or upgrading the quality of your goods or services. In order to avoid losing your intellectual property rights, you should know the legal ways to protect it. You can do a research, visit online sites like LegalShield wordpress site, or consult a business lawyer, to ensure that you are far from the risks.

Small Claims. When a debt involves only a comparatively small amount, small claim rules is seemed to be a practical solution than suing the debtor. Of course, litigation expenses plus the inconvenience of filing a case to court are quite overwhelming and impractical. Again, there are proper legal procedures on how this matter works and is done so it is better to be informed. 

Workers Compensation. Statutory compensation law protects and secures the employees in case of emergency that happened on duty. The law ensures that they are subsidized when they are injured, ill or become disabled caused by situations while they were at work. The law does not protect the employees only, but also the employers. The financial demands or assistance required to be provided to the affected employees will depend on some factors specified by law. Thus, you have to do some homework to fully understand this subject.

The aforementioned items are just few of the many legal issues that could possibly affect your budding enterprise. Issues like customer complaints, incorporation, identity theft, government compliance, verbal contracts, city zoning, bad check recovery, and many others are best explained by lawyers who really have extensive knowledge on the field of business law. 

If you would want your small business enterprise to boom and to succeed at first try, get it legally protected. Consult your business attorney for guidance and legalities on how to run your business without worrying on different legal issues that may arise. 

Brandon Peters is an entrepreneur, writer and gadgets and outdoor enthusiast. He loves to travel, collect hi-tech gadgets and write just about anything under the sun. 

How the Affordable Care Act Could Affect Small-Business Taxes

Small-business taxes are about to become significantly more complicated thanks to the Patient Protection and Affordable Care Act (PPACA). Understanding and planning for these changes now instead of later will give your small business a competitive edge in the coming tax years. 

Because of PPACA, small-business owners need qualified accountants more than ever before. If a career in accounting interests you, then now is a good time to find out more about available online graduate tax programs. The IRS has a good resource center for more in-depth exploration, but it's no replacement for a qualified accountant.

The PPACA Contains No Mandate for Small Businesses

All small businesses with fewer than 50 employees are exempt from any employer responsibility requirements. They can take advantage of tax credits and health insurance exchanges if they want to offer coverage.

Starting in 2015, businesses with over 50 employees that either do not offer coverage or do not offer “affordable” coverage will have to pay a fine.

· In businesses with more than 50 workers, the employee's share of the premium for his or her own policy should cost no more than 9.5 percent of his or her wages. If the employee's share of premiums exceeds 9.5 percent of wages, then the coverage is not considered “affordable.” Businesses can offer insurance for family members, but employee contributions toward those policies are not subject to the 9.5 percent premium cap.

· Businesses with more than 50 employees that offer no health insurance will pay a $2,000 fine for each employee after the first 30. For example, if you have 53 employees, you will pay $2,000 x 23, or $46,000, if one of your employees receives a tax credit for buying insurance through an exchange.

· Businesses with more than 50 employees that do not meet the 9.5 percent requirement will also pay a penalty. These companies will pay $3,000 for every employee that purchases individual coverage through a health insurance exchange and receives either a premium tax credit or a cost-sharing reduction.

Tax Credits Small Businesses Can Get for Offering Health Insurance

Small businesses meeting the following requirements are eligible for a tax credit to offset the cost of purchasing health insurance for employees:

• Employ fewer than 25 full-time employees. Workers count as full-time if they work 30 or more hours per week. Two part-time workers is the equivalent of one full-time worker under the law. Seasonal employees can work no more than 120 days per year or else they will count as part-time workers.
• Pay average annual wages of $50,000 or less
• Contribute 50 percent of total premium cost for employees

Currently, small businesses are eligible for a tax credit of up to 35 percent of their contributions toward employee premiums. In 2014, the credit rises to 50 percent of contributions as long as insurance is purchased through state insurance exchanges. The 50 percent credit is offered for two years.

Tax Planning Issues to Talk Over With Your Accountant

When you're deciding what you want to do about offering health insurance, these are some questions that you should address with your accountant:

• How many employees should I hire? If you're near the 50-employee cutoff, then you may want to make sure that you have no more than 50 employees to avoid penalties. Also, you may want to be careful to limit your seasonal employees to 120 days. 
• Will I benefit from purchasing employee coverage from state health insurance exchanges? Combining the tax credit with potentially lower premiums from the state health insurance exchange may lower your overall costs. Alternatively, a private insurance option may be more affordable. 
• Should I offer coverage if I have more than 50 employees? Your accountant can calculate whether coverage would cost more than the penalty for not having it. You'll also need to weigh whether insurance is an important benefit for hiring and retaining employees.
• What procedures should I change? Work with your accountant to adjust your HR and payroll procedures to meet the new reporting requirements.

Finally, tell your accountant that you expect to be kept informed about changes in the health care laws. In all likelihood, the law will undergo changes and modifications as it rolls out. Working closely with your accountant to navigate the changes could save your small business a significant amount of money.

About the Author: Gary Robertson, M.A., C.P.A., provides tax planning services for small businesses.

Small-Scale Outsourcing: Lucrative?

Early on in his first term, President Obama’s administration made some claims that they will be bringing the jobs back home and putting some pressure on outsourcing by ending tax breaks to US companies that engage in heavy outsourcing operations.

A lot of companies didn’t agree with clamping down on outsourcing as a means to get our people back to work once again; if anything it could even work against the small entrepreneurs and startups by making the financial barriers to profitability that much harder to scale.

Further examination of this issue doesn’t make it any more sensible. We all belong to a wholly global economy now, and utilizing manpower and resources overseas to accomplish business goals on your home country is a practice that isn’t going away.

Inevitable and Profitable

One way or the other, we have to outsource, and the solution to getting people employed here once again is not to prevent outsourcing, but to create new ways to do business that take advantage of the rich availability of offshore manpower and resources.

For the small entrepreneur such as myself, I have had some moderate success in farming out tasks and even entire projects to contractors outside the country. It has gotten to a point that I have decided to expedite forming an LLC that offers outsourced services to my fellow small entrepreneurs.

For as long as they have stable internet connectivity and have a solid command of the English language (either that, or you yourself know how to speak their native tongue), this could be the way to grow your business without getting mired in overhead costs. Below are some distinct points that highlight the advantages and dispel some negative myths on small-scale outsourcing.

Competent Professionals are Available

Just as there are incompetent people in just about every nook and cranny all over the civilized (and even uncivilized) world, there are those who exhibit excellence in their work. You, as a business owner, would like to be able to get the best talent you can afford. To compromise on that by getting a higher paid, less-qualified individual because he/she just happens to be from the same country isn’t good business sense.

No doubt, you’ve heard of some horror stories of outsourced projects going awry thanks to people who don’t know what they’re doing, but the reason for these failures aren’t mainly due to the fact that the work or tasks were outsourced, but because they were outsourced to the wrong people, or ill-managed by the project managers that were in charge of monitoring their progress.

Not Everything Has to be Outsourced

This is something most alarmists aren’t considering when they proclaim the evils of outsourcing and how it takes food away from the American family’s dinner table and provides some terrorist the funds to buy their bombs. You’d think this is an overly gross exaggeration of some people’s sentiments, but look around the internet for a bit and you’ll see this kind of thinking being propagated.

As I mentioned, the key is to utilize the offshore resources to create even better jobs for the local professionals. It takes some out-of-the-box thinking and a broad perspective on what is possible, and that’s something that makes a pioneering entrepreneur stand out amongst his/her peers.
With these insights, I enjoin all the aspiring entrepreneurs out there to partake of the best of what the world has to offer, and grow their dream businesses using the power of outsourcing!

About the Author

Stacey Thompson is a professional writer, marketer, entrepreneur, and a lover of weird little animals. She is based in San Diego, California, and maintains a blog with her gal pals, Word Baristas.

4 Common Money Mistakes That New Businesses Make

So you've started a new business venture and you're no doubt feeling on top of the world. After all, nothing is more exciting that quitting your nine to five and becoming your own boss. However, it means that you now have responsibility for handling your own money matters, and although there's plenty of advice available from professionals, the ultimate decisions are up to you. Here are a few common mistakes that new business owners make in the early years, and how you can avoid them.

1. Being too optimistic

You may be keen to turn a profit in just a few months, and you may have the projections to back up your plans, but projections are just an estimate. There's no guarantee that they will come to fruition, so you can't base all your financial decisions on these goals. 
When writing projections, you need to take into account:

• How your expenses will grow as the business does 
• That some clients may not pay on time 
• There may be a lull in activities 
• Other products could make yours obsolete 
• Some staff and resource problems are beyond your control 

It's not all doom and gloom, but it's important to think about the kind of issues that might come up, and to build a safety net into your projections to soften the blow. 

2. Growing too fast

When the orders start pouring in, it's no doubt tempting to hire extra staff, upgrade your machines, or even open a second branch. However, it's important that you think through major decisions, and don't be swept up in the momentum of your success.
If you feel that it's time to grow, make sure you get solid financial and business development advice before you proceed. This can help you sort out the business finance you need, as well as helping you draw up a strategy for the short and long term success of your company. 

3. Hiring permanent staff straight away

Staff loyalty is important, but hiring people on permanent contracts is expensive, and it can be restrictive for new firms. It's also very hard to get rid of people if they aren't performing well, and you may discover you don't need them a few months down the line.
Whether it's industry specialists, or people to answer the phones, consider options such as using a temp agency or outsourcing work in the early days. This may seem pricier, but it can save you money as you don't need to shell out for holiday or sick pay. The best idea is to draw up a comparison of the two costs, or to get specialist HR advice. 

4. Spending too much

It may seem like an obvious one, but it's amazing how much small businesses owners can pour into their idea in the early days. Many businesses can be setup with minimal expenditure, and you often don't need top of the line tools and equipment, second hand will sometimes suffice until you have money coming in. Some business owners choose to buy a business lock and stock from someone who is moving or retiring, and this can be a great way to get everything you need for one price.
Making mistakes is all part of the process of building a business. However, it's wise to take advice from those who have come across obstacles in the past, as they will be able to tell you they overcame them. This will allow you to avoid those common mistakes, and take risks with more confidence, knowing that you've had the best advice around.

Getting a Business Loan - Is it a Good Idea?

In this day and age, where money is almost everything, one should always know how to spend it wisely. But try as you may, today's economy is at an unstable position. With people losing their jobs because of the recession, it is sometimes a wise investment to try your hand in business. Whether it's a big restaurant or a small kiosk that sells t-shirts, what's important is that you know how to handle it.

This is especially true for people who are on the ready to retire from work. While there is pension, it's usually a good move to invest in business once retirement is very near.

The trick into handling a business is to make decisions quickly and wisely. Oftentimes, people don't like to face a decision because they end up wasting too much time thinking about it. More often than not, people usually make the wrong move when they decide quickly.

One of the things that needs a quick yet wise decision is whether you need to get a business loan or not. A business loan can help you fix any financial issues that you might have with your current business. Business loans are usually in favor of people who are starting or already have a small business. Of course, a business loan is all but free; there are things that you need to think about before you decide to get a business loan.

First, the basics. A business loan can mean two things; it's either a small business loan or a business expansion loan. A small business loan, as the name suggests, is meant for small businesses while a business expansion is for people who are planning on expanding their services or products. Both business loans are meant to help people with certain financial issues, like debt financing, surety bonding and equity financing.

I know, the terms are too complicated so we'll avoid those for now and just focus entirely on business loans.

So, should you get a business loan then? That entirely depends on your situation. If your company has financial obligations that needs to be settled as soon as possible, then a business loan is feasible. Unless if you have any other options, then you may as well get a loan. However, you need to ask yourself if you have a good plan on how to spend the money. List your financial priorities down and only use your money for things that are very important for your business. Doing this will help in maintaining the financial integrity of your business. Remember that even borrowed money, if well-invested, can actually help you gain profit and the money you need to pay off your business loan.

Also, keep in mind that different loan companies have different methods. For example, All Business Loans, an online business loan company, allow tax deductible loans and that a good credit is not required. Opportunity Fund has no application fees, but requires a good credit history. This means that you should not have any current delinquencies, tax liens or open bankruptcies. There are hundreds of loan companies out there or in the Internet, so if ever you do need to get one, then get in line or get online.

So, is getting a business loan a good idea? It will be, if you use the money wisely.

About the Author:

Jessica Greenberg is an avid blogger from San Diego, California. When she's not busy writing blog posts for Wordbaristas.com, she's usually in her bedroom, reading a novel or two.