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How To Start A Small Business

Are you aspiring to someday owning your own business? Do you dream of becoming your own boss and achieving whatever it is that you want most? Then the time to do that is now! Don’t just sit there and wait for a miracle to happen because doing so will get you nowhere. Just stand up now and take action for the destiny that you really want.

When starting a business of your own, you need to make some preparations first. This will be the start of everything you dream for your business and by executing it well, you will surely create a good future for it. So let’s get to the inception of your very own business.

1. Have an idea – Of course, when you dream of having a business then it must mean you have an idea of what to create. But if you don’t have one yet, then that would still be okay just as long as you do your best to make it work for long term. If you want to start a business then it must be a product or service that you always wanted and something that people really need. It can also be something fresh that people haven’t encountered yet. You can always think of ways that will be new to the public and could become a trend for a very long time. It is ideal to have creative people around you so that they can help you out with the brainstorming and fill in some ideas on what can be good for a business.

2. Define your goals – You need to pre-determine what kind of future you want your business to have. Do you want to sell your business to the highest bidder or continue doing it so that you can have a steady income? Well, it’s all up to you just as long as you have a goal for it and you will benefit from it in a very big way.

3. Formulate a business plan – A business plan is very important because it helps in defining what you should do when you launch your business. This will serve as a summary for your business’ entire operation. You can use this as your guide so that you will know where your business is heading and that you can monitor its progress every step of the way. To make this even better, you can always bring a notepad along with you wherever you may go so that you can write down any idea/inspiration that comes into your mind. After that, you can include those ideas that you have in your business plan and see how it can benefit you.

These are the basic steps when it comes to starting your very own business. The important thing is that you are determined and have set your mind to do the business. Therefore, you will spend then necessary time required to building a successful business.

Family Run Business – Some Tips On How To Keep It Just A Business

Family businesses are still an integral part of commerce. Often found as small and local they can be more sizeable and reaching out across national and global. Major global firms such as Ford Motor Inc, Walmart, all started as family run businesses with successive generations coming into the organization.

When the business is small and developing it makes sense to keep it in the family. You know what’s happening and there is a common purpose.

But there are difficulties in families, and “personality clashes” can spill over from the family into the business. To assist in avoiding potential problems here are seven key tips on keeping the business pure.

1. Never forget: it’s a business

Establish a level of professionalism standards typical of what would be expected in any company. Then ensure adherence to those standards by all participating family members in the business.

2. Non-family employees have a right to know their prospects

Non-family members employed in the business may have career ambitions. This is especially true of those who hold key management roles or those with expertise essential to the business. If succession to senior roles is always “family only” then make that clear. If you create a false impression then the business runs the risk of alienating its staff. And a disgruntled employee will leave, possibly at a time which could be disruptive to the business

3. Even family members should have formal written contracts

This is important on several counts. In the first place it lets family know what their position is within the company hierarchy. As we all know hierarchy is important especially where it defines decision-making and identifies responsibility. Secondly, it is important for equity allocation and overall control of the business. The vested interest of a family member is important for incentive and what their stake is worth should they decide to leave.

4. Avoid killing employee morale by showing favoritism

Family employees in a business still have to be capable If overt favoritism is shown, or poor performance ignored, or even rewarded, then employees may see no opportunity for themselves. The result would be potentially fatal for the company as good employees will leave.

5. Keep family members incentivized and trained.

Whereas point 4 avoids unnecessary favoritism it does not mean that any family employee should miss out on incentives. They need a fair wage and benefits to reward them for the good work they do. It would be wrong to treat family as “lucky to have a job” and then treat them unfairly. Relying on their loyalty alone to ignore such treatment would lead to future trouble.

6. Do not have one family member reporting directly to another.

This is best avoided as objective decision-making could prove awkward. Sometimes the size of the company might make this difficult. Or there is a natural hierarchy within the business where the senior members of the family have key positions. But if possible keep separate.

7. Non-employed family should be kept away from the business.

Non-employed family may see the business premises as somewhere to hang out. Idle people have the potential to damage morale. What tends to happen is they end up wasting people’s time. And they have a habit of asking employees to do things for them. Moreover employees often feel they are under scrutiny. It may be a little paranoid but employees will often have the sensation of “being watched”.

Benefits of Leasing Business Equipment

Equipment leasing is one of the most reliable ways of acquiring business equipment today. Recent surveys in the United States found that about 80% of new businesses obtain some of their equipment through leasing. New businesses are always faced with the problem of finances because their flow of income is still low. Leasing is a better alternative to buying equipment because it enables your business to utilize the capital available for cash flow.

However, there are several questions you need to answer before settling on a particular leasing decision. Some of them are:

1. Do you think you will require the equipment for a long time? If the answer to this is YES, it is advisable that you negotiate a purchase alternative that will ensure that some of the lease payments go to the acquisition account.

2. What are the terms and conditions or legal repercussions associated with leasing? It is a better idea to flick through the lease before placing your signature in it to prevent adverse repercussions.

Advantages of Leasing Business Equipment over Buying!

Low monthly payments

Monthly lease payments are usually lower than the expense of acquiring the equipment through other means. Borrowing to purchase equipment is far more expensive than leasing because of the high interest rates charged by most financial institutions.

Your capital does not get tied up!

Leasing helps you to keep your business money for other requirements. Unexpected expenses are not unusual in the business world and this money also can come in handy as working capital when your revenues are low.

Immediate use of equipment!

Most financial lending sources require up to 25% down payments. Leasing, on the other hand, provides you with the equipment at a nominal up-front cost. Most leases will only require at least one or two advance payments to allow the use of the equipment.

No obsolescence!

Technological advancement is happening at a dangerously rapid pace and a piece of equipment you are using today could be so out-of-date two years down the road. Leasing offers you the chance to enjoy the best of today’s technology while it lasts and upgrading when it becomes obsolete. Therefore, you are able to stay competitive and flexible.

Fixed terms of payments!

Banks and other financial institutions have variable rates of credit depending on the market dynamics. Lease payments are usually fixed regardless of what is happening in the market. It is a better alternative because it protects you from possible skyrocketing interest rates. For instance, there was a rise in rates from about 9 percent to over 20 percent in the same year in the 1980s. Such a financial inconveniency cannot happen with equipment leasing.

Tax advantage!

Leasing has a tax advantage compared to other financing options. Unlike loan payments, equipment lease payment can be a pre-tax business expenditure that can significantly reduce your taxes. Taxes are usually paid on profits and can add up to 40% to the cost of the equipment when paying cash for it.

In a nutshell, equipment leasing is the way to go to save on time and hassle of finding a guarantor for money to buy business equipment. It guarantees a speedy takeoff for your business venture.