Items tagged with SBDC Business Tips Articles
It is a new year and now is time for tax planning for your small business. I recently attended a seminar on tax planning. The CPA who taught the course did a great job of explaining the elements of good planning for the tax year.
She highlighted the importance of good bookkeeping. In order to do their job properly, accountants need a current and reliable set of books. In addition, they like to see reconciled bank statements, credit card statements, and note balances either in manual or software form. Completeness is necessary for your accountant to assist you.
Too many small businesses decide to write a business plan only when they have to. Unless you need to seek assistance from a lender or investor, there is no plan. Don’t wait to write a business plan until you think you’ll have enough time. The advisers at the Angelo State University Small Business Development Center hear small business owners say, “I can’t plan. I am too busy getting things done.” If you are indeed that busy, it is imperative to plan.
Writing a business plan is not the easiest thing to do and mistakes can and will be made. Let’s take a look at some of the common mistakes that are made when writing a plan and try and make this easier and more understandable.
I watched as my six year old granddaughter wiped the flour off the table. With a dish towel in hand, she approached the spill from the back side and worked it towards the table’s edge. She then took her other hand, placed it below the edge and swept the flour off the table into the waiting hand.
I was surprised at her efficiency and her accuracy. I asked, “Hannah, how did you learn to do that so well?” With a smile and an inquisitive look she answered, “Boppi, don’t you remember? You taught me!” Talk about giving me the right answer! It may have not been me, but the point is simply that she had been taught.
It could be said the ability to learn how to do a job is contingent on the ability of someone to teach how to do the job. Getting a seasoned employee to train a new employee is usually a good arrangement.
The Angelo State University - Small Business Development Center will celebrate its 25th anniversary on January 15th. As we celebrate this milestone, I thought it appropriate to reflect and give thanks to the many small businesses and organizations that have made the program a success.
First and foremost, I believe the economic progress and health of our area is greatly due to the dedication, drive and determination of our small businesses and the people that own and manage them. I am always humbled by their tenacity and resourcefulness, as well as their willingness to take risks to make their dreams happen. Where would our economy be without them? I applaud their accomplishments and feel honored they allow us to serve them. They are true champions in our eyes and they are the reason we exist. I want to thank them for what they do for the economic health and quality of life in our area. As many have said before, small businesses are the backbone of our local economy.
As one year ends and a new one begins, it is a time to visit with some key people that influence your business decisions. Someone has said that success is a journey and not a destination, and I believe that to be true. Every day that you are able to open your doors is a success. To help insure success, it is important to visit certain individuals on a routine basis.
We are all aware of the leaps and bounds technology has made over the years. There are so many great tools out there today, and I wonder why more small businesses do not take advantage of the countless opportunities.
When it comes to technology, I feel sometimes we let our fear get the best of us. I hear all the time that software is too expensive and not worth it. This is true; some software can be extremely pricey. However, I have found that my time is very valuable to me, and if I can spend a little extra on a product that will help me be more efficient, then I consider it money well spent. There are also many different products on the market that are reasonably priced, as well as some open- source software that you can download for free.
These amazing productivity tools can help you run your business more efficiently using technology. I have listed some of my favorites below.
A few weeks ago I wrote about the connection between good customer service and the reduction of shoplifting in a retail store setting. Today I want to continue the discussion of customer service with tips any business can use, especially as we enter the time when many renew commitment to their business through New Year’s resolutions.
Make your customers feel welcome. It sounds simple and it should be routine to make your customers feel welcome, but some businesses have challenges with this. Making your customers feel welcome fulfills a basic human need and it is important at every point of contact, whether it is in person, on the phone, or with email and other electronic communication. It sets the stage for everything to come with the customer relationship. This needs to be in place in order to be perceived as having good customer service. Hiring good employees who are naturally friendly and helpful at every point is a good start at insuring this is in place. In addition, reinforce to employees on a regular basis how important it is to make every customer always feel welcome. Remember to model the behavior you want your employees to imitate. When we as customers encounter a business that makes us feel welcome, we cannot help but walk away with a good feeling.
To many small business owners, this is a crazy time of year. You are pushing projects across the finish line. Completing performance reviews with employees. Finalizing plans and budgets for next year. Oh, and the holidays are coming to bring even more chaos onto your over-scheduled calendar. Some companies are not running what is called a “lifestyle business.” They are running businesses that are being milked by owners, partners or a few leaders in order to take lots of cash and cool perks for the few.
Most small business owners are committed to growing their businesses. They want to create jobs for lots of people. They are working on leaving a legacy of significance and pouring everything they have into making their business a success. The big mistake successful small business owners must avoid is working so hard there is little time or energy to enjoy what they have achieved. This risk is amplified during the holidays when the pressure of business can be greater than at any other time of the year. There are opportunities outside of business hours that are more plentiful than ever and time seems to be in shorter supply than usual. Let’s look at ways in which to make your holiday season a little less stressful and more enjoyable.
SAN ANGELO, Texas - The holiday retail selling season is here, an important time of year for most retailers. A significant portion of their annual sales and profits will occur during this time.
So how do retailers ensure they are making the most profits?
For one, they can review two aspects of retail business that might seem unrelated: shoplifting and customer service.
Actually the two go hand in hand to create a profitable holiday selling season.
For retailers, shoplifting increases during the holiday selling season because shoplifters sense there is plenty of merchandise and plenty of customers, which makes it difficult for store employees to properly monitor the merchandise.
Shoplifting is a part of overall inventory shrinkage, which is the amount of inventory lost due to shoplifting, employee theft and paperwork errors.
Small Business Saturday is THIS Saturday, November 29th. Started as an effort to focus on locally owned businesses, this day falls between Black Friday and Cyber Monday. First observed on November 27, 2010, Small Business Saturday was conceived and promoted by American Express. AMEX supported the initial launch by purchasing advertising inventory on Facebook and then passing the opportunity to advertise on to their small merchant account holders.
Now in its fourth year, the event has taken on a grass roots demeanor and encourages shoppers to patronize brick and mortar businesses which are small and local. Even marketing firms have jumped on board to promote this Saturday event.
Rhonda Abrams, USA Today columnist and best-selling small business author, uses the word “localism” to define not only this particular day, but a shopping culture. “Localism – a movement that encourages citizens to shop at local, independent small businesses.”
Crowdfunding seems to be a new and unknown term in the world of business today. In reality, crowdfunding dates back to 1885 when Joseph Pulitzer launched a campaign in the newspaper, The New York World, to raise funds to build a base for the Statue of Liberty. By collecting mere pocket change from various individuals in all walks of life, they were able to fund the project with the support of the masses.
Crowdfunding has come a long way since the initial project. There are now two types of crowdfunding campaigns: The first is crowdfunding for equity, which just recently became approved in the state of Texas and allows participation for most Texans, not just accredited investors. The other is crowdfunding for rewards, which is the most popular because anyone can participate in rewards-based crowdfunding. Below is a brief discussion of crowdfunding for rewards.
Market research is one of the most important activities that someone wanting to open a small business can do. A lot can be learned about a given market and when analysis of the research is properly done, the prospective business owner can make that go or no-go decision.
There are two overall types of a market: the total market and the target market. The total market is everyone in the market area that has a dollar to spend. Not everyone with a dollar to spend is a potential customer, though. The target market is that portion of the total market with a need or a desire for your product or service.
October 1st began a new program year for the ASU Small Business Development Center since we operate on a federal term. For us it is a time of recommitment to those we serve, the small business owner. As a team we will get together and revisit our values of integrity, excellence, service, and innovation to make sure our team is still aligned with these important values, which are the guiding lights for us. We will recommit to each other as teammates and then recommit to those we serve and make sure we are still aligned with their needs as our customers.
The advisors here at the Angelo State University · Small Business Development Center have discussed how important cash is to a small business. We have written articles on the need to analyze and manage cash flows. Today we are going to take a look at building a budget for your small business. For many business owners the process of budgeting is limited to figuring out where to get the cash to meet payroll this week.
Business budgeting is a very powerful financial tool available for any small business owner. Maintaining a good short and long range financial plan enables you to control your cash flow instead of having it control you.
The most effective financial budget includes a short range month to month plan for at least one calendar year. The long range plan should consist of a quarter to quarter plan and cover a period of at least three years.
As a small business owner, have you been asked lately, “What do YOU need?” If not, then let me say that there is a Texas group who wants to know. The Texas Small Business Needs Assessment Poll is a partnership between the Federal Reserve Bank of Dallas’ Community Development Department and the Texas Small Business Development Center Network. They are looking for your input!
In reviewing the 2013 results of the Poll, 66% of business owners expected overall business conditions to improve. The percentage of business expecting sales and revenue to increase was 71%. Most of the businesses responding were small businesses with one to five employees.
With millions of emails sent each day we sometimes forget the major role it plays in our daily business communication. According to the McKinsey Global Institute report the average interactive worker spends approximately 28 percent of the work week managing email. Knowing that email already has 28 percent of your potential client’s attention on a weekly basis, wouldn’t you like to make the most of it?
One key component of email that seems to go by the wayside is the email signature. In the world of online communication, it is key to take advantage of the many tools available to help you better communicate your company’s message and enhance your small businesses brand. Use your email to the best of its ability by always including the company’s email signature in every outgoing email to insure that your information is always available to contacts and potential clients.
Many entrepreneurs make the leap to business ownership without a clue about what is involved in opening a business.
For some, it is an easy process requiring little effort. For others, it is an arduous journey through governmental red tape, financial land mines and logistical roadblocks. And when these entrepreneurs get their business open, sometimes the first word they utter is “Finally!”
Their intent is: Finally, we are open! Or, finally, the hard part is over. Either way, the implication is that something was completed and a goal achieved. However, the word finally is wrought with danger for the new entrepreneur.
When people achieve certain goals, they are inclined to relax and enjoy the laurels of their hard work. So what is wrong with that? In general, nothing. However, we must examine our definition of success. Is it just to get our business open? Is it to achieve a certain revenue or income level? Alternatively, is it to operate a growing business for an extended period of time so that at the end of that time we can sell it for a profit or retirement?
Last week I had the opportunity to attend the annual America’s SBDC conference in Grapevine, Texas. There were three full days of intense learning about different industries and how advisors can use best practices to serve such industries. One of the workshops I attended was given by Rhonda Abrams, a successful entrepreneur that presented the topic “The Leap: The Next Level for Business.” Rhonda Abrams has conducted in-depth research with entrepreneurs in many industries throughout the country to identify the key factors contributing to their ability to turn small businesses into mid-sized companies. During the presentation Abrams talked about the importance of having a strategy in place to grow your business and leaving aside the fear of having to personally control everything to get this accomplished. In summary, these are the main points discussed during her presentation:
Are you thinking of starting a small business? You are already on the right track. There is a lot of thinking to be done before starting your own small business. Starting a small business can be a life altering event. Think of it as a marriage. Running a successful small business takes the same type of commitment and desire. You will be living your business 24 hours a day, 365 days a year. As with a relationship, if you want to be successful, you are going to have to work at it. It will have its ups and downs and surprises.
On the positive side, if you have the right temperament and a solid plan, starting a small business of your own can be extremely satisfying and exhilarating. Let’s take a look at a few aspects of starting a small business so you can make an informed decision about whether it is right for you.
Yes, it is true; your small business can sell to the government. The only thing standing in your way is learning how to “talk the talk.” The Angelo State University Small Business Development Center can help you understand the needs of federal, state and local purchasers.
Learn all about it Tuesday by attending “How to do Business with the Government.” The training session is from 9:30 a.m. to noon at the Business Resource Center, 69 N. Chadbourne St. Check-in will be at 9 a.m., and the fee is $15. Selling to the government is open to all businesses!
Small business owners will learn about requests for proposals, how to search for contracts specific to their products and services, and the value of forming team relationships.
September 1Many of us have heard about lean production or processes, which is the practice of driving out unnecessary costs not adding value to the customer. What is meant by adding value? It simply means adding value in a way the customer cares about. If customers do not see the benefit to themselves from certain costs incurred in your production or process, then it does not add value, in their eyes. You should try to eliminate or reduce the costs if possible. For example, using a well maintained older piece of equipment may be more cost effective than buying and using the latest expensive piece of equipment. Does the customer really care you are using older equipment? Most likely they do not and you are saving costs in the process.
Search engine optimization is a hot topic in the small business world today. We all want to know how to get the best rankings on search engines so our customers can find our websites and other resources with ease.
Unfortunately it is not as easy as 1-2-3 to improve your rank on different search engines. Do not fear — there are ways to improve your site to make it more readily available online.
According to Google’s Search Engine Optimization Guide, the key to improved SEO is to focus on the content of your site rather than gaining on different rankings. The guide says, “Search engine optimization is about putting your site’s best foot forward when it comes to visibility in search engines, but your ultimate consumers are your users, not search engines.” By improving various areas of information on your Web pages, search engines will be able to better categorize your content and make it easier to find in common searches; therefore, your rankings will improve naturally.
I spent some time last week driving the Texas Hill Country. The winding roads through the valleys and hills offered some spectacular vistas and views of wildlife. The problem with such a drive is that while you are driving, you have to pay particular attention to the road, so you wind up only getting snippets of the beauty and can’t really appreciate it in full. Appreciating the vistas too long will put you in danger of wrecking.
During this trip, I began to realize this particular road was much like one the entrepreneur travels as he or she builds and attempts to grow a business. The road has inclines, sharp turns, down slopes, and other dangers. Fortunately, the road through the Hill Country has warning signs for dangerous curves and inclines accompanied with instruction to decrease speed.
Are you significant?
Recently I heard the word, significant, used in conjunction with employees. The motivational speaker asked, “Do your employees feel significant?” The combination of the words “employees and significant” combined into one thought was an unusual combination and it took me a minute to wrap my thoughts around it.
Employees are commonly referred to as being valued, irreplaceable, important, empowered, happy, productive and a variety of other adjectives, but the single word, significant, carries its own unique connotation.
While one of our interns was doing some file compilation, he brought to my attention that I had a high influx of clients in May compared with other months.
He asked me, “What is the reason?” After trying to think of different reasons, my conclusion was that around midyear people have thought about starting a business long enough and maybe have received some extra money from their tax return to start the new journey.
But the million-dollar question becomes, “How much money do I need to start my business?”
Banks and other non-bank lenders are always willing to lend money on business loan deals that meet or exceed their lending requirements which are mostly built on the 5 C’s of credit analysis.
The 5 C’s include collateral pledged, capacity to repay, character and experience of the borrowers, conditions in the industry and economy, and lastly capital or the amount the borrower intends to inject in the business. Besides your personal funds and funds from friends and family, banks are your best source for start-up loans and we recommend approaching them first for the lending needs of a small business. It is also important to establish a banking relationship, even if you do not initially have a bank loan to start your business.
My dad grew up on a cotton farm learning to drive and maintain farm machinery. When his dad retired from farming during my dad’s high school years, he moved the family into town. Dad went to work in an automotive repair shop across the alley from his home. It was from his farm experience and his work in the repair shop that he learned the importance of properly maintaining engines. It was something that he worked to instill in his children.
Before I ever received my driver’s license, I knew how to check the oil and other fluids in our family car. I learned how to change a flat too. After getting my license and taking possession of a family car as “my” car, dad would periodically ask me if I had checked the oil. He knew and taught me that an engine needs oil and it needs new oil and filters periodically or the engine will be ruined. Even after I bought my first car and started college, he would ask, “Have you checked the oil?” He was especially inquisitive of this if I was about to leave town to return to college or take trip with friends. Naturally, this eventually became irritating to a teenager and eventual young man.
As an owner of a small business sometimes little time is given to the “formalities” of managing a business and certain areas tend to be overlooked.
Performance reviews are a good example. Often, business owners work under the everyday evaluation policy without ever having a formal evaluation period; therefore, important information is missed causing potential larger problems in the business.
It is well-known that employers who hold some sort of evaluation to review employees performance yearly gain tremendous benefits. Unfortunately, the word “evaluation” usually has a bad connotation because most people will think of an evaluation as the time to bring up failures or shortcomings.
There comes a time as a small-business owner that you can’t seem to do anything right for your company.
This can be quite frustrating. Maybe you are waiting for a call or for a customer to get back into town. Perhaps it is a product you are waiting for or a service that needs to be provided. There are many reasons why we get stuck and are unable to go anywhere.
Don’t panic or do something rash. Sit down and reflect on the situation. Try to calm down and make sense of what should be done next.
A rushed and panicked mind leads to mistakes. If possible take a step back, take a deep breath and gather yourself before making decisions when in the wrong frame of mind. You don’t want to do something that you will regret.
I watched as the manager leaned in to speak with his employee who was answering the telephone. As the employee began to respond to the caller, the manager spoke softly, “Manage expectations.”
As the phone call progressed, it was evident the manager was coaching the employee how to be successful in providing all the information the caller would need prior to their arrival — managing expectations.
Managing expectations helps to maintain smooth transactions. As a former furniture store owner, we held true to the statement, “Under-promise and over-deliver.”