International Small Business Articles
international small business articles
When the Going Gets Tough…small Businesses Fail: 10 Common Mistakes
small business administration (SBA) statistics show that 1/3 of all new businesses fail after two years, and 56% fail after 4 years. While there are many reasons for a small business to fail, there are 10 mistakes which are common to most of them. This article briefly examines, and proposes solutions to, each of them so you won’t be next.
1. Not Enough Cash. Most businesses fail because they lack enough cash at first and, as a result, take on excessive debt. Before you set off on your adventure, make sure that you have sufficient cash to operate for the next 12 months, using your worst case scenario. Then, pay careful and daily attention to your finances; carefully record cash inflow and outflow. Make sure you are familiar with accounting principles. No need to become a CPA or even take an accounting class. Widely available and very affordable software packages, such as Quicken, make it easy to be your own bookkeeper. Of course, if you can afford it, the services of an accountant who has extensive small business expertise is the still best solution.
2. Spending Too Much, Too Early. Cash on hand is King! This needs to be the Golden Rule for start-ups and small businesses. Many entrepreneurs and small business owners have a fundamental misconception of how business operates. As a result, many spend their seed money, or start-up capital, before revenues start rolling in. Best is to seek the advice of veterans who can act as your conscience, without the emotional involvement, before making a big financial commitment. Seek out people within and outside your network who have been there. SCORE and SBA are probably the best, and free, available resources. Of course, if you are using an expert you can expect to pay a fee.
3. No Rainy Day Cash. When the going gets tough…small businesses fail! In part, that’s because most start-ups and small businesses fail to set aside cash reserves which can be tapped when the market sours; there are unexpected (and impossible to anticipate…do your homework) cost increases; raw material price increases, if you are a producer, etc. Make sure you set aside enough cash (again, cash is King!) to stay in business when sales slow down due to market and/or seasonal trends.
4. Growing Too Big, Too Fast. Ah, the sweet taste of success! Let’s get more!!! Too many owners grow too quickly without really determining whether they should, or even whether they can afford it. They want to add a location and/or add employees, or buy more equipment (often the latest gadget with all the bells and whistles, not necessarily simply what is functional). Business owners get into trouble when they fail to perform a financial and market analysis. To avoid this fate, start with realistic goals (often your worst case scenario) and allow yourself to grow as needs, analysis and financial ability, not gut instinct, dictate. Let your present level of revenue, not the most optimistic financial projections dictate when and whom you hire; when and where to expand; and when to purchase or lease new equipment.
5. Location, Location, Location. Too many retail owners are not savvy negotiators and sign what they think are “cheap” leases. Consider all factors before signing on the dotted line. For example: how many businesses like yours are located close by? Can cars easily move in and outof your parking lot? Are there enough parking spaces? Are you visible from the street? Is there sufficient foot traffic? And many, many more. Make sure you speak to an attorney who is experienced in reviewing/negotiating leases for small businesses, as “hidden” clauses can, and will, hurt you.
6. Inexistent Internal Controls or Poor Execution of Existing Controls. Number 1 on my list is poor financial controls. However, too many times I have experienced start-ups and small businesses with lack any type of work process necessary to ensure that things are done consistently. Furthermore, small business owners and entrepreneurs generally lack the experience and skills to hire the right people, monitor their performances and deal with them when they don’t work out. Training is another area which is generally and largely neglected. Finally, customer service is inconsistent or non-existent. As a result, generally business owners end up working for the company, rather than the company working for them. This makes it very difficult to succeed. So make sure to establish protocols for how each task is to be accomplished, train yourself and your employees to follow them, and make sure they are revised and updated frequentlyu (see #10).
7. Poor or No business plan. If you fail to plan, you’re planning to fail! A well drafted business plan is your road map to success. If nothing else, having to write a business plan forces you to think about the what, when, where, how and why (yes, why) of your business. More importantly, it forces you to think about, and consider, your financial needs and resources. There are a number of well-written books and software packages that can help you write a business plan. There are also a number of companies and individuals, myself included, who can help you. However, in the end, it would be best if you did it yourself. If you do end outsourcing it, make sure you do the homework (i.e., market research, financial projections) or at least be deeply involved in the research. At the very least, make sure you understand what someone else has done for you. Don’t be afraid to ask questions and challenge assumptions (remember what happens when we assume!).
8. Ineffective Marketing and Self-Promotion. People can’t buy what you have to offer if they don’t know it is available! Sounds logical? Yet, many small businesses fail to develop an effective marketing strategy, or set aside enough money to implement it. While you can, and should, still use “old-time” media such as direct mail, ads in local newspapers, radio and TV (much cheaper than you might think if done locally), you should not forget electronic media such as websites, blogs, etc. Of course, each of these medium has its proper place and which one(s) you use, when and how, should be carefully examined before committing. A good source of information for those selling products is a book titled “The 4-hour Workweek” by Tim Ferriss (I get no residuals or fees to plug the book). which has a trove of ideas on how to test your marketing campaign inexpensively. The number of advertising and promotional ideas is limitless, or rather limited by your own creativity and that of those around you. Speak to as many successful small business owners as you can and ask what methods they used and then … think! Don’t do it just because they did. Think whether you can afford it, and whether their ideas have a high probability of increasing your revenues.
9. What Competition? Loyalty is earned not bought. An existing customer who is willing to purchase your product or service again is your best customer. Don’t lose him/her. Make sure that your customer has a reason, or better yet multiple reasons, to continue doing business with you instead of your competition. The best way to do is to establish a relationship with your customer. People buy from people they like and trust. Again, there are many excellent books on how to best do this. Better yet, go to your competition and see what they do, how they act, etc. You may learn what to do, and most likely will learn what not to do. Then go to your favorite store and think about what makes it special. Why you go there and not next door.
10. Failure to Accept, Nay Encourage, Change. My personal favorite. “Nothing changes if nothing changes”, my grandmother used to say. “Everything always changes”, my grandfather used to say. They were both right. And, if evolution has taught us anything, it is that those who don’t adapt … die. Stay alert. Recognize opportunities and remain flexible to adapt to changing times. Better yet, drive the changes. This holds especially true for your work processes. Constantly ask yourself and your employees, if you have any, what is working and what is not. Always question how things are done and wonder how they could be improved,made cheaper, faster, more durable, more exciting, etc.
11. Bonus…Being Penny Wise and Pound Foolish. How many people do you know who refuse to spend money to make money? They rather spend $10 to make $1,000, then spend $1,000 to make $10),000. Same rate of return, but very different results. Too often small business owners refuse to seek and pay for the professional help they need because they fool themselves into believing they either know how to do it, or will figure it out. Know where you lack experience and/or expertise and consider hring someone who does.
Best luck to all!
About the Author
Mr. Ruiz is the managing principal of EcoStar Consulting, LLC, an international business contracting firm.
Is it true you have to pay a special tax to escape the tyranny of the Obama regime?
At least, that’s what the HR 6081 seems to say.
http://www.irs.gov/businesses/small/international/article/0,,id=97245,00.html
http://www.jct.gov/x-44-08.pdf
How long before they shoot people trying to cross the border without authorization?
They are going to tax you to death no matter what you do. You don’t have to go anywhere…in California you end up paying 1 dollar per meal if you go out…and it states IT IS FOR HR REFORM!
When are you forced for a SURCHARGE FOR A PRODUCT THE GOVERNMENT FORCES YOU TO BUY?
there will be other taxes…a value tax…20 percent of everything you buy…from gum to guns!
|
|
Daily Paragraph Editing, Grade 6 $11.00 Daily Paragraph Editing, Grade 6+ covers grade-level skills in these areas: capitalization language usage punctuation: apostrophes punctuation: commas punctuation: periods punctuation: quotation marks other types of punctuation spelling Daily Paragraph Editing extras include: a reproducible student language handbook that provides simple, clear rules and examples of their application to guide stude… |
|
|
The Communicators: Leadership in the Age of Crisis $20.00 The Communicators: Leadership in the Age of Crisis redefines the professional strategies and personal qualities that this current age of incessant crisis demands of leaders in corporate C-suites, boardrooms, courtrooms, and in the corridors of political power. Drawing on dozens of extensive interviews with prominent leaders who describe and reflect on their most significant experiences, Richard Le… |
|
|
Hotel Management and Operations, 3rd Edition $27.99 A real-world look at every major aspect of hotel management and operationsHotel Management and Operations, Third Edition, helps readers to develop the wide-ranging knowledge and analytical skills they need to succeed in today’s burgeoning and dynamic hotel industry. Featuring contributions from 60 leading industry professionals and academics, this comprehensive presentation encourages critical thi… |
|
|
CBD Qianyuan International Business Hotel $80.98 CBD Qianyuan International Business Hotel is located in Beijing’s Middle Chaoyang neighborhood, close to Workers Stadium, Forbidden City, and Lama Temple. Nearby points of interest also include Olympic Park and Dong Yue Miao. Hotel Features. Dining options at CBD Qianyuan International Business Hotel include a restaurant and a coffee shop/caf?. A bar/lounge is open for drinks. Room service is available 24 hours a day. The hotel serves Buffet breakfasts (surcharges apply). Spa amenities include beauty services and a hair salon. This 3.5 star property has a business center and offers small meeting rooms. Wireless Internet access (surcharge) is available in public areas. Guest parking is available for a surcharge. Additional property amenities include an arcade/game room and a porter/bellhop. Guestrooms. Air conditioned guestrooms at CBD Qianyuan International Business Hotel feature minibars and coffee/tea makers. High speed Internet access is available. In addition to desks and safes, guestrooms offer direct dial phones. Housekeeping is offered daily and guests may request wake up calls. Notifications and Fees:A resort fee is included in the total price displayed The following fees and deposits are charged by the property at time of service, check in, or check out. Deposit: CNY 200 per stayBuffet breakfast fee: CNY 48 per person (approximate amount)Rollaway bed fee: CNY 150 per night The above list may not be comprehensive. Fees and deposits may not include tax and are subject to change. Notifications and Fees:A resort fee is included in the total price displayed The following fees and deposits are charged by the property at time of service, check in, or check out. Deposit: CNY 200 per stayBuffet breakfast fee: CNY 48 per person (approximate amount)Rollaway bed fee: CNY 150 per night The above list may not be comprehensive. Fees and deposits may not include tax and are subject to change. |
|
|
The Economics and Management of Small Business: An International Perspective $68.2 No Synopsis Available |
|
|
The Economics And Management Of Small Business: An International Perspective $185.25 No Synopsis Available |
|
|
Managing Small Business: An Entrepreneurial Emphasis, International Edition $246.02 No Synopsis Available |
|
|
International Handbook Of Women And Small Business Entrepreneurship $195 No Synopsis Available |
|
|
MARKETING & SMALL BUSINESS ADVANTAGE $29.99 MARKETING & SMALL BUSINESS ADVANTAGE |
|
|
International Bibliography of Books and Articles, 1973 $219.38 No Synopsis Available |
|
|
Effective Small Business Management, by Scarborough, 8th INTERNATIONAL EDITION $79.57 This book is in New – Excellent condition |
|
|
GoVenture: Small Business $495 GoVenture Small Business simulates day-to-day experiences typical in starting and running a small business. Students experience all aspects of running a small business from hiring, inventory, sales marketing to evaluating customer satisfaction. |
|
|
FORTUNE GOLD 10.0 FOR SMALL BUSINESS $99.99 FORTUNE GOLD 10.0 FOR SMALL BUSINESS |
|
|
Lulu International $112.64 Lulu International is located in Thrissur, close to Shakthan Thampuran Palace and Vadakkumnathan Temple. Regional points of interest also include Guruvayur Temple and Punnathur Kotta Elephant Camp. Hotel Features. Lulu International features a restaurant. The hotel serves a complimentary breakfast. Recreational amenities include a fitness facility. This 4 star property has a business center and offers small meeting rooms and audio visual equipment. High speed (wired) Internet access (surcharge) is available in public areas. The property offers a roundtrip airport shuttle (surcharge). Additional property amenities include multilingual staff and laundry facilities. This is a smoke free property. Guestrooms. Air conditioned guestrooms at Lulu International feature minibars and complimentary newspapers. All accommodations have balconies. Bathrooms feature slippers, complimentary toiletries, and hair dryers. Wired high speed Internet access is available for a surcharge. Housekeeping is offered daily and guests may request irons/ironing boards. |
|
|
International Business $151.8 No Synopsis Available |
|
|
Raunak International $86.25 Raunak International is located in New Delhi’s Karol Bagh neighborhood, close to Karol Bagh Shopping Market, Birla Mandir Temple, and Connaught Place. Nearby points of interest also include Jantar Mantar and Presidential Palace. Hotel Features. Raunak International’s restaurant serves breakfast, lunch, and dinner. Room service is available 24 hours a day. The hotel serves a complimentary continental breakfast. This hotel has a business center and offers small meeting rooms, audio visual equipment, and business services. Complimentary wireless Internet access is available in public areas. The property has a train station pick up service, which is complimentary. Guest parking is complimentary. Additional property amenities include laundry facilities. Guestrooms. 35 air conditioned guestrooms at Raunak International feature minibars and coffee/tea makers. Bathrooms feature shower/tub combinations with handheld showerheads. They also offer makeup/shaving mirrors, bathrobes, and slippers. Wireless Internet access is complimentary. In addition to complimentary newspapers, guestrooms offer direct dial phones as well as free local calls (restrictions may apply). 32 inch LCD televisions have cable channels. Also included are complimentary bottled water and ceiling fans. Guests may request in room massages, irons/ironing boards, and hair dryers. Housekeeping is available daily. |
