What are small businesses?
Small businesses are businesses with less staff. The staff limit is different for different areas. These businesses are generally owned by individuals or are started in partnerships. Other criterion to decide small businesses are the turnover and profit. The less is the turnover or the profit, the smaller is the business. The smallest businesses are called as 'micro businesses' and those managed by families are called as 'mom's and pop's business'. These smaller businesses generally have employees in number from 0 to 10. Many a times, the owners are the workers in these businesses.
Advantages in small business:
The basic advantage of starting a small business is that you need less capital and money to start the business. Also, one can start a small business on part time basis. The basics of a successful business are the regular modifications that one does to it. In small businesses these modifications can be easily done as one does not need to follow any trend or face any compulsions in small business unlike in big businesses. Also, a small business can give much more to its customers than a big one as they have the power to provide each and every customer the required personal attention and take into account all the suggestions and even implement some of them. Small businesses provide daily bread to many a people and thus are very important.
Marketing small businesses:
The most common methods of marketing small businesses are customer referrals, mouth publicity, radios, newspapers, internet, directories, boards, etc. Television ads can be a bit expensive for advertising small businesses. Internet marketing is considered the most cost effective and result oriented method of marketing small businesses. The ads can be placed on websites or even search engine web pages. The costs are decided on the size of the ad and thus can be easily moderated.
Small business ideas:
- Franchisee business: this is one of the extremely profitable ideas of a small business. The only things that you need to start this business are a place and some capital. The best part of this business is that the things that you sell are already quite famous in the market and thus you need to do very little expenses on the marketing.
- Event planner: if you know the knack of organizing things perfectly, then you can become an event planner. You need to plan out meetings, parties, weddings and other such get-together for your customers in the given budget. The best part of this job is that it is extremely interesting and your work does the marketing for you.
- Computer repair: if you have done any hardware or software course or have learned any computer language then you can start the work of computer repairing. You just need to sort out simple problems in computers. The best part of this job is that you get to learn a lot more than you have about computers. But, you should do only the work that you can manage and avoid doing any guess work.
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Small businesses are these days preferred by many individuals rather than jobs. They need to work for about 6 to 8 hours per day and get limited salaries. They can plan their own time and work towards gaining substantial profits if they start their own business. You can start a business even if you just have any small business idea but you don't have any ready capital. It is so because many banks offer you loans to start your businesses.
You can take a personal loan or a business loan or a mortgage loan too. The banks review your business and idea and do their own research and evaluate the feasibility of the idea. If they think your business proposal can work, they provide you a business loan on the basis of certain terms and conditions. Therefore, you can put your small business ideas to use very easily. Given below are some small business ideas.
1. Business planner:
It is one of the most exciting jobs that one ever can do. You have to actually plan out the business strategies for your client and help him or her gain maximum profits. To start this business though, you need some expert knowledge about start up businesses. You should know all about the financial transactions and other important aspects.
2. Event organizer:
If you have the skill to organize things, you can definitely go for event organizing as your business. People need event organizers to organize marriages, receptions, meetings, trips and all other things that need planning. You can act as the planner and plan out the things foe them considering their financial capacity. This can be the most exciting job that one can ever get. Along with the knack of organizing things, one needs to be creative in mind to organize events in the most elegant way.
3. Public relations:
If you are good at pursuing people, you can start your own business as a public relations official. In this job you need to organize press releases or press conferences. You need to be the link between the media and the public on one side and the events on the other side. As a public relations official you act as a perfect link between the company and its customers. A public relations career is extremely respected everywhere and there is a lot of money in this business.
4. Computer repair:
You can start computer repairing business if you have taken a hardware course. You can also hire experienced computer repairmen and build a team of them. Computer repairing is as easy as any household repairing work. But you should definitely see to it that you have a degree that goes with your business or you can get caught into scandals even if you are perfect at your work.
Thus, one can easily start a small business instead of doing a job. It is not necessary that one should follow ideas already used by people but, one can also innovate and develop new ideas to start a small business.
Small businesses become insignificant in the ever-growing competition of the big business dealers and the dreams of these small entrepreneurs, which may be of good potential, are mixed to dust. These businesses need a helping hand to reach their targets, which can be provided in many ways like granting sanctions, tax reductions and giving new opportunities to the upcoming entrepreneurs.
Sometimes many groups or organizations desire to start a small business at home so as to have an extra part time income. The necessary support can come from personal loans, brokers etc. also, people work on the Internet, starting new businesses online. The answers to their countless doubts and queries are given by the Internet itself and also by many support groups.
The most important criterion for attracting support is to prepare a good business plan and explain it properly to the segments of the marketing industry that may help you in one way or the other. The investors and shareholders should be able to see your commitment to your business and the way you wish to satisfy your goals.
Small business support in the form of capital-
The biggest hindrance to growth is the lack of capital in small businesses, which can be overcome by-
- Asking for loans from banks.
- Trying for the grants sanctioned by the government and other grant bodies.
- Taking your business public and asking local investors and common people to invest in your business.
But for all these, one has to be ready with a proper plan and the necessary strategies. Banks agree with loans only if they are convinced with your methods of repayment and investors invest only if they know you are confident about your own business i.e. how much you have invested from your own purse.
Small business support in the form of solving technical problems-
There are many technical doubts, which the small business entrepreneurs face from time to time. They can use the Internet to solve them or express their doubts in various business magazines. Experts and experienced executives from big industries try to solve them efficiently thus helping these small businesses.
Small business support in form of tax benefits-
The government provides many tax benefit offers to support these small businesses. In this, the government cuts taxes and gives good returns to the small businesses.
There are credit reference agencies and co-partners, who will want to help you in the business. But one needs to satisfy their meager demands of good credit history. Equity websites are present which contains the list of equity shareholders who may be interested in investing in you business.
Small businesses have tremendous potential due to innovative and new ideas, which these enterprises possess. The only need is to help them rise and realize. We have many examples of organizations who grew into huge industries due to the support they got like women's self help group, Reliance industries etc. the support these businesses get is enough for them to climb the success ladder.
We all know that if your business grows large enough that someday you will have to expand past the borders of your city, state or country. If you run a business online you know your customers can come from anywhere. When you enter the World Market you compete with other entrepreneurs all over the planet, and this can be quite humbling, as competitors pop-up all over the net. The world is connected and everything affects everything else.
Now then, I would like to introduce a universal truth about the reality of pollution. You see, when businesses pollute that pollution, just like your online competition does not stop just because there is a man-made borderline drawn in the sand or an ocean separating the land. Your world-wide competition may have an advantage over you; such as cheaper labor or perhaps lax environmental regulations. Still, you are affected no matter where they are.
Currently, California has set limits to the part-per-million (ppm) of pollution particulate in the air. When it increases California will increase the regulations on transportation items, business facilities, and even BBQs in the local park (no kidding). But did you know that the pollution from China is blowing across the Pacific Ocean into California increasing the ppm in the air, thus, even if California curbs all their pollution, China's pollution is growing and the California Air cannot get any cleaner, even if some day in the future they stop all commerce.
California has warned their Chinese counterparts that this pollution is unacceptable and if it continues China may not be able to unload Chinese products at California Ports, much to the chagrin of the Longshoremen's Union and the railroad workers unions. You can see how international business relationships with our preferred trade nations are tested to the limits and why folks have discussed a world-wide carbon credit trading scheme to solve this dilemma, without more political impasse at the WTO?
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Join the fastest growing industry in the United States...Housecleaning! The initial investment to start a Molly Maid Franchise is about $100,000. That sounds like a lot of money, but wait till you see what you get for your investment.
As a Molly Maid owner, you'll get the satisfaction of being a part of one of the most recognizable cleaning services in America and you will be able to use a wealth of marketing tools set down by the parent company. One of those marketing tools are: Co-op Advertising, ad slicks for newspaper ads and national media.
With its first franchise being sold in 1979, Molly Maid has been helping hundreds of entrepreneurs annually obtain their goals of being a small business owner.
The investment required to start a Molly Maid franchise begins with a $14,900 franchise fee. If you want an exclusive territory, and believe me you do, that will cost you between $35,000 and $40,000 depending on the size or the territory.
You will need supplies so you can do your job and that initial fee is $8,500.
You will also need to show the Molly Maid folks that you have between $35,000 and $50,000 in working capital, bringing your total investment to right around $100,000.
The franchise is a ten-year term and as the owner you will be charged a 6.5 percent royalty fee annually that actually goes down to as low as 3.5 percent as your sales go up. This is a wonderful feature of this franchise because the more money you make the more you get to keep.
In addition, you'll need to have a net worth of $250,000 or more and liquid capital of $30,000.
Training and Support
So what do you get for your money?
Molly Maid offers an extensive training program that will teach you how to hire the right people for your business. You'll need about 14 on staff to start. You'll also learn marketing, legal and financial and even human resources.
In addition, as a Molly Maid franchisee you'll get a business management software that will help you spend more time at home instead of more time on your computer.
Molly Maid currently has over 300 owners and was recently rated the 81st best franchise award by Franchise 500 magazine.
Of course the primary reason for opening a business is to make money and with a Molly Maid franchise you will make money. Many Molly Maid franchisees obtain their income goal within the first year. More importantly is the time you'll be able to spend with the one's you love. You set your own schedule as well as your employee's schedules.
You will be providing a service to your clients while helping your employees have a fulfilling, secure job. 39 Molly Maid franchise owners have achieved the million-dollar circle award, meaning they have earned at least one million dollars. You too can be a successful business owner without ever pushing a broom or a mop. After the initial investment required to start a Molly Maid franchise is achieved, you'll be making money and living well.
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Franchise ownership might be considered as symbolic of living the American dream. What could also be considered as an American dream is actually being a franchise owner of a Hooters establishment. This could be an interesting prospect to say the least. Interestingly, the word Franchise comes from old French meaning privilege or freedom, and Hooters seems to hone in on this meaning with development of its interesting business plan.
Hooters are a privately held company, a hospitality business, originating in 1983 in Clearwater, Florida, whose slogan could be "Food and Fun." Hooters restaurants serve food and alcohol, characterize themselves as neighborhood restaurants, and take pride in their customer service. They do not advertise as a family restaurant, however, ten percent of the parties served have children, so there is a children's menu.
Hooters is best known for the Hooters Girl (there have been 250,000 employed since 1983) whose uniform consists of orange shorts, a white tank top, or a short-sleeve or long-sleeve T-shirt. Pantyhose and bras are also a requirement of the uniform. The Hooters Girl concept exudes sex appeal and sixty-eight percent of the clientele tend to be male. There has been speculation that "Hooters" is a slang term for a portion of the female anatomy. Hooters do display an owl in its logo, and the chain reaps the benefits from the speculation. Finding success in small-town America and major metropolitan areas in 42 states, Hooters has branched out internationally to include 24 countries, and sales figures are ever increasing.
It's easy to acquire information on Hooters franchise potential-simply use the Google search engine to obtain information on "Hooters Franchise" or visit the Hooters official website, click on the "Company" link, and go to the "Franchising" section for information. Hooters' website gives succinct criteria for qualifying you as a potential Hooters franchise investor:
• Territory-the location must be approved and 3-5 restaurants must be opened within your territory
• Regional Population-there is a minimum requirement of 100,000 people is within a five-mile radius of restaurant
• Monetary Investment-there is a requirement of $2 million in liquid assets per restaurant
• Experience-there is a requirement of at least five years of multi-restaurant ownership or operation experience
If the criteria are met, it is suggested to send a written proposal to Hooters of America, Inc. (e-mail and mailing address also available on website). Make sure your proposal is written and presented to fit the qualifications criteria.
Research is paramount to investing in a business, so also visit various restaurants and talk to managers about each establishment, interview other restaurant employees, and speak to the corporate franchise department. After thorough research efforts and considerations, a Hooters franchise just might fulfill your American dream-or not.
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Working with banks on short term business loans can be easy or difficult, it just depends on how prepared you are. A consistent financial back-up is an essential constituent to run a business successfully. You feel an external financial help in case of your financial failure. So, here, you can meet your small business demands easily with short term business loans.
Basically, short term business loans are both secured and unsecured in nature. But for the short-term usages, unsecured lending option is preferred since there is no collateral placing. This implies that you do not have to put any collateral as a security for the loan amount. In this way, sometime, it saves your home and any other assets from repossession in the event that you fail to make the loan repayment in time.
You can invest the raised amount, with the loan, on several heads like buying machinery and plants, raw materials, acquisition of land an office premises, generating stocks, paying wages and salary, etc.
The borrower's good credit always helps get better term, but it never means that your bad credit will create problem regularly. You can avail this facility even when you have experienced issues like CCJs, arrears, defaults, IVAs, and bankruptcy.
All that you need to do is to bring a financial statement for your business. You will need to show financial health of your business. This implies that how much it is of worth and how much money you are moving. It gives projection about what your business will be worth going forward.
Be sure you have an updated business plan. Now, it is time to walk in and ask for the money. Quarters of lending sources are out there in the money market. You can get it from any high street lenders. They know your history and financial behaviour, and they are more likely to give short term business loans to those who have demonstrated financial responsibility. You can do this through online also.
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It takes brains to conceive the idea behind a business. It takes skill to convince others to invest in it. It takes nerves to battle it out in a world where competition is the name of the game. But it takes money (and a whole lot of it) to make your foray into that world and maintain your position in it. Running into a shortage of cash in this world is different from that which the average man experiences; you can't just call up your parents or friends and ask for it. The capital involved in business is huge and you will be able to get it only with professional lenders. They provide specialized loan schemes under the name of business loans.
Business loans are loans which may be taken to add monetary fuel to your business. It is extended to industries of all sizes- large, medium or small in scale. They may be taken for many business-related purposes, including the following:
* Starting a new venture
* Expanding an existing business
* Buying plants, machinery and equipments
* Upgrading current technological appliances
* Funding payroll of employees
* Renovating office and purchasing furniture
* Paying of debts
* Advertising and promotional activities.
It is important to have a detailed lay-out of your proposal before stating your demands to a business loan lender. You should be prepared to provide them knowledge of the estimated costs and your requirements. Such a presentation shows the seriousness of your plans and gives them good reasons to trust you as a reliable client. You may carry documents like proof of ownership, tax returns, financial statements, credit references and letters of reference with you.
Business loans are generally borrowed for an amount up to £1000000, though it is possible to avail more. How much you can get depends upon your credit record, repayment capability, requirements and whether you are providing security or not. Depending upon the amount loaned to you, the repayment tenure could lasts for a period up to 30 years.
Business loans are available with a variety of lending institutions. You can check out their offers and select affordable ones through a comparison of loan quotes.
Trying to find a legitimate work at home opportunity is akin to finding that elusive needle in a haystack. Most of us have wondered endlessly about those survey sites and can you really make a living by mystery shopping? The truth is that there are several real small businesses you can do from home. One that is making people a tidy income from home is an unclaimed money business. If you have grand ambitions of becoming rich overnight, this isn't for you. However, if you'd like to invest some time and effort into a real business, you'll enjoy this tremendously.
One of the best aspects of starting your own unclaimed money business is that it's fascinating. You get to become an amateur detective of sorts. Your job is to match unclaimed money with its rightful owner. If you enjoy research work you'll find this to be a perfect fit. You can focus on whatever claims you want and once you understand the laws governing the fees you are permitted to charge, you can find as many or as few as you like, depending on your income needs.
Everyday is different when you have an unclaimed money business. Some days you may find yourself scouring the Internet trying to find someone with a large claim, other days you'll be checking your mail to find payment from claims that have been processed. One of the most satisfying aspects of this type of opportunity is that you get to make people incredibly happy. Just imagine how thrilled you would be if you got a letter or call telling you that you had thousands of dollars of unclaimed money?
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When you are pursuing a business-critical project, how do you learn? If you are like most of us, you start off the project relying on what you already know, you may or may not pick up new insights as you work through each milestone, and you look back when things are wrapped up to see how you did. If you are particularly conscientious, you might do a post-project autopsy to figure out what did and didn't work and how you should do things differently the next time around.
What if I told you that spending a little time before, during, and after your project will put you in an impressive lead over your competition?
A few years ago, I had the good fortune to be trained as a knowledge management (KM) consultant by Kent Greenes, a leading light in the corporate KM space. In addition to providing KM consulting services to large companies, I taught hundreds of people how to "do it themselves." The primary focus of their training was in the learning processes that are one part of Kent's KM methodology-and you can put these processes into play in your own company. The investment in time and money is small relative to the return you will see from getting in the "learning process habit."
The three processes, in the order they occur, are:
* Peer Assist, before the project starts
* After Action Review (AAR), during project implementation
* Retrospect, after the project is complete
Peer Assists and Retrospects are formally facilitated sessions that can take place virtually (via GoToMeeting or WebEx) if the participants are not co-located.
* A Peer Assist is attended by the key project team members and several people who have participated in the same or similar projects. The focus of the session is to give the project team a leg up by obtaining insights and learning from those who have gone before. The session is recorded and then transcribed so that key learning can be extracted and made available to current and future project teams.
* A Retrospect is comprised of the key team members who have completed the project. Again, this session is formally facilitated and recorded, with learnings harvested and made available to future project teams.
While both of these processes may sound involved logistically, they can be conducted efficiently when using the right tools and working with an experienced facilitator. On the other hand, to get the most learning harvested with the least amount of time and money expended, the AAR is the way to go.
The power of the AAR is in its simplicity. All you need in the way of tools is a flipchart, or at least a pen and paper, 20 to 30 minutes, and commitment to open and honest dialog. In a self-facilitated session, each AAR participant answers four questions:
* What was supposed to happen?
* What actually happened?
* What were the differences and why?
* What can we learn?
In the beginning, there will likely be a lot of discussion about the first question; this is a learning in itself (make sure everyone understands what is supposed to happen beforehand). Identifying the differences and the reasons for them may also create sometimes heated discussion. As you do more AARs, you will find that the sessions will take less time and involve less heat in the dialog.
Focus the last question on uncovering no more than three items that can be put into play right away or in the very near future, while memories are still fresh.
Consider creating a learning journal where AAR results can be collected. Over time, you will end up with a robust knowledge asset that will help you move smarter and faster than the competition-every time.
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Are you looking for ways that you can give your small business a boost without increasing your costs? Most small business owners are always looking for ways to get ahead that won't cost a fortune. The biggest advantage that a small business has over a large business is the ability to run with few employees. So why not play up that advantage using the new Verizon FiOS network? The innovative fiber optic network that Verizon has created can streamline you business and help you operate more efficiently. Here's how:
1. Verizon FiOS can help you operate with lower overhead
Using the power of the Verizon FiOS Internet and digital phone service, you can maintain your office with fewer support staff which will help keep your costs down. You can use the digital phone service to route calls so that you don't need a receptionist. You can use the Internet to route email the same way. You can even have some of your employees work from home and log into the office network each day, which will reduce the cost of running your office and make your employees a lot happier.
2. Verizon FiOS phone service eliminates the need for an expensive phone system
Business phone systems can cost in excess of ten thousand dollars. Most small businesses don't really have that kind of money to spend. You can use Verizon FiOS digital phone service and get excellent clarity and reliability for a lot less. You also get access to the features that you need like voicemail and caller ID for free.
3. Verizon FiOS can help you harness the power of the Web
With the cutting edge Verizon FiOS Internet service and digital phone service you can conference with your clients using the power of the Web. You can hold online training sessions, have meetings with clients all over the world, outsource small jobs to workers in other countries for less money and do it all using the reliability and innovative technology of the Verizon FiOS network.
4. Verizon FiOS can help you boost your client base
Your website is one of the best marketing tools that you have, and using the Verizon FiOS High Speed Internet service will give you the support and the speed that you need to make your Website attractive to new clients. Getting new clients will be a lot easier when you have a great website that will make clients want to hire you or buy your products.
5. Verizon FiOS can give you the reliability you need
When customers and clients have a problem the last thing they want to hear are excuses. So it's important that you have an Internet service that won't go down at a crucial time when you are trying to solve a problem for a client. When you use the Verizon FiOS Internet service you won't have to worry about losing your Internet connection at a critical time so you can continue to serve your customers and clients and surpass their customer service expectations without interruption.
Verizon has created an innovative fiber optic network that will streamline your business, allow it to thrive and help your business become more efficient.
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Recruiting good employees is a small business owner's worst nightmare. It sometimes seems that you are stuck on a never ending merry go round. You just seem to go through one employee after another. So what kind of professional options do you have? Here are four ways that you can approach the problem besides placing another classified ad in the paper or resorting to a help wanted sign on your door.
The first method that you can try is a recruitment agency or professional employment agency. We're not talking about a temporary labor firm but an actual staffing firm. These companies actually have a pool of potential candidates for you to choose from. People that are seeking permanent positions. The agency receives a resume from them and conducts a brief interview. Then they try to match the candidate to an employer. The employer has already stated what kind of position needs to be filled and what kind of applicant they are looking for. Once potential candidates are identified they are then sent to the employer's jobsite for an interview. Then both the candidate and the potential employer can determine whether they think this would be a good match for them.
The next method and also the newest way to recruit help is to use an online service. Usually such websites will feature a job board where employers for a fee can post openings within their businesses. Also candidates can upload their resumes in the hopes of attracting a potential employer. The employers also for a fee are able to search through these resumes to find qualified candidates for their job opening.
Now we have the headhunters. If you are a small business owner this resource should only be used as a last resort as it can often be extremely expensive. So what do headhunters do? Well they hunt down the talent that your business is looking for. Usually they find that talent working for another company. Once they identify candidates that could be right for your business then they work to recruit them for you. Headhunters also work with your candidates to prepare them for your interview and negotiating their salary. But headhunter fees can be very high often up to 30% of the candidate's annual compensation.
The final method usually only applies to larger companies that are trying to recruit new employees. They can use in-house recruiting. This method consists of using their own human resources departments to coordinate multiple efforts such as employment agencies, online services and running their own classified ad campaigns.
Not every method is going to be appropriate for your company. Many factors will determine what route you will need to follow. But these are some of the choices your business has available to it. If you do use an outside agency of some sort you need to research them carefully. Some will specialize in certain types of workers and the fees will vary. But if you have had trouble in the past finding qualified candidates for the jobs you have available then these options might help in your search.
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Topics:
1. Careful Policy Drafting
2. Sex Discrimination
3. Race and Disability Discrimination
4. Religious Discrimination
5. NLRA
6. Tattoos and Body Piercings
7. Commonsense Tips for Drafting and Enforcing Your Dress Code
If you are like many employers, you may mistakenly believe that discrimination laws restrict your right to determine appropriate workplace dress. In fact, you actually have a lot of discretion in what you can require your employees to wear to work. Generally, a carefully drafted dress code that is applied consistently should not violate discrimination laws. However, this fact will not stop employees from questioning your policy. This article, from our HR Matters E-Tips free electronic newsletter, examines common legal challenges to dress codes and suggests ways you can avoid problems.
Careful Policy Drafting
You probably have been faced with an employee who complains that a dress code "violates my rights." Some employees will even go so far as to allege discrimination on the basis of sex, religion, or race under Title VII of the Civil Rights Act. However, if a dress code is based on business needs and applied uniformly, it generally will not violate employee civil rights.
Sex Discrimination Claims.
Sex discrimination claims typically are not successful unless the dress policy has no basis in social customs, differentiates significantly between men and women, or imposes a greater burden on women. Thus, a policy that requires female managers to wear uniforms while male managers are allowed to wear "professional dress" may be discriminatory. However, dress requirements that reflect current social norms generally are upheld, even when they affect only one sex. For example, in a decision by the Eleventh Circuit Court of Appeals in Harper v. Blockbuster Entertainment Corp., 139 F.3d 1385 (11th Cir. 1998), the court upheld an employer's policy that required only male employees to cut their long hair.
Be aware, though, that at least one state, California, prohibits employers from implementing a dress code that does not allow women to wear pants in the workplace. According to Section 12947.5 of the California Government Code, it is an unlawful employment practice for an employer to prohibit an employee from wearing pants because of the sex of the employee. The California law does make exceptions so employees in certain occupations can be required to wear uniforms.
Race and Disability Discrimination Claims.
Race discrimination claims can be even more difficult to prove since the employee must show that the employer's dress code has a disparate impact on a protected class of employees. One limited area where race claims have had some success is in challenges to "no beard" policies. A few courts have determined that a policy that requires all male employees to be clean-shaven may discriminate if it does not accommodate individuals with pseudofolliculitis barbae (PFB), a skin condition aggravated by shaving that occurs almost exclusively among African-American males.
No-beard rules also may violate disability discrimination laws. A few courts have ruled that PFB is a disabling condition and thus requires reasonable accommodation under state disability laws and the federal Rehabilitation Act (which prohibits federal contractors from discriminating in employment based on disability).
Religious Discrimination Claims.
Employees have had more success claiming dress codes violate religious discrimination laws. These claims are likely if an employer is unwilling to allow an employee's religious dress or appearance. For example, a policy may be discriminatory if it does not accommodate an employee's religious need to cover his head or wear a beard. However, if an employer can show that the accommodation would be an undue hardship, such as if the employee's dress created a safety concern, it probably does not have to allow the exception to its policy.
NLRA Claims.
Dress code claims also may be filed under the National Labor Relations Act (NLRA). To comply with the NLRA, employers, even in nonunion workplaces, may not universally ban the wearing of union insignia. An employer may set neutral policies that, when uniformly enforced, prohibit employees from wearing certain items of clothing that also have union insignias on them, such as T-shirts with union logos if the policy prohibits all T-shirts. However, several courts have determined that employees have the right to wear union buttons and pins to work, unless the wearing of these items creates a safety hazard or, in the case of workers with public contact, the employees consistently are required to wear uniforms without buttons and pins.
Tattoos and Body Piercings.
Many employees also mistakenly believe that they have a right to show tattoos and body piercings in the workplace. While tattoos and piercings may be examples of employee self-expression, they generally are not recognized as indications of religious or racial expression and, therefore, are not protected under federal discrimination laws. Accordingly, as with most personal appearance and grooming standards, you have wide latitude to set policy regarding tattoos and body piercings.
Common Sense Tips for Drafting and Enforcing Your Dress Code
Here are some ideas for ensuring that your policy complies with the legal restrictions described above:
1. Base the policy on business-related reasons. Explain your reasons in the policy so employees understand the rationale behind the restrictions. Common business-related reasons include maintaining the organization's public image, promoting a productive work environment, or complying with health and safety standards.
2. Require employees to have an appropriate, well-groomed appearance. Even casual dress policies should specify what clothing is inappropriate (such as sweatsuits, shorts, and jeans) and any special requirements for employees who deal with the public.
3. Communicate the policy. Use employee handbooks or memos to alert employees to the new policy, any revisions, and the penalties for noncompliance. In addition, explain the policy to job candidates.
4. Apply the dress code policy uniformly to all employees. This can prevent claims that the policy adversely affects women or minorities. However, you may have to make exceptions if required by law. (See next suggestion.)
5. Make reasonable accommodation when the situation requires an exception. Be prepared to accommodate requests for religious practices and disabilities, such as head coverings and facial hair.
6. Apply consistent discipline for dress code violations. When disciplining violators, point out why their attire does not comply with the code and what they can do to comply.
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Employees are the backbone of any organization, accomplishing the day-to-day functions as well as driving growth and new initiatives for a business. However, it should be considered that if they can yield benefits for a company, they can also incur losses if not managed properly. In order to put all HR related activities in line, companies have started exploring the benefits of HR employee management systems. The primary goal of employee management software is to increase the quality of the employee base.
Employees are the most important determinants of a company's success, therefore investing in a well framed employee management system will prove to be valuable. Employee time tracking is one of the features of employee management software. It saves on time and money, and is especially useful in cases of project performance evaluation. This software manages employee time sheets, as well as the record of each employee having a role in the project development. It provides in-depth information like time devoted by each employee to a project, work output, their performance, and their management skills. The promotion of employees is dependant on their work performance and output. This can be calculated effectively with employee management software.
The HR employee management system plays a vital role in terms of performance appraisals, promotional activities, and forming a fair rewards program. Right from lower levels of management to higher executive management positions, this system is needed for keeping track of each person's professional contribution to the organization. Each level needs separate criteria designed for performance evaluations. Particularly in the case of reward systems and bonus payments, it helps senior management's fair decision making.
The reports on the assessment of employees' performance decide their competency level. Capabilities of employees are well exposed by employee management service systems. In order to establish clear communication, HR is the main link between the employer and the employee. A well formulated HR employee management system helps in crafting communication guidelines and issues relevant notices to the employees. Performance appraisals are dependant on the feedback of the employee given by the HR department.
The evaluation of employees' performance on a fair basis can be achieved by making use of employee management system. Managing human resources is a much more difficult task than handling materialistic aspects of an organization. Many unseen emotions and circumstances affect the workings of the people. Therefore a proper systematic system is required to evaluate their contribution to the company's profit and growth. It helps in employing the right person for the right designation, and helps determine appropriate salary and promotion levels as well.
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For the majority of sales people getting into large Fortune 500 companies can be a very frustrating experience. You know you have the right solution for them, but how do you get everyone on board? Specifically their management team and their IT department.
Well you have yourself a huge task in front of you. There is no easy answer to your dilemma, because the two departments have two very different agenda's, but I can give you some good solid advice as to what to do.
Instead of writing a sales proposal - write a white paper. A white paper is a very deep comprehensive review of emerging technologies, trends, and where their market is heading and how your solution fits in.
1) Realize the differences between selling people in management and people in IT departments. Management generally thinks short term profitability and shareholder returns while IT thinks in terms of long term systems and processes.
2) Meet someone from the management department and figure out what it is that they are trying to accomplish and the best way you can help them reach their goals with your solutions. Then get their approval to meet someone in the IT department.
Make sure you have the IT people on board before going back to management with your "solution".
3) Try to arrange a meeting where you can present your "white paper" (your findings) to the department heads of IT and management.
Focus on the naysayers - get the naysayers on board - or else they will kill your proposal.
You will need a white knight in the IT department or the management team that will help you sell your "idea's" and/or "proposal" to the other department.
It is a technique I use all of the time to great effect.
Essentially you are "educating" your clients on "what to look for" and "what to look out for" when they are trying to make a business decision about which way they need/want to go.
Generally I will ask my prospect; "Have you ever used a sales trainer before? What was your experience like? How many people on your sales team are still not meeting their sales targets?
Does your success depend on your sales skills? Then click here for a very powerful package on how to significantly improve your sales results!
Kevin Boyle is an expert sales coach/trainer and the author of "The Secrets to Sales Mastery"
Sales reps and agencies have a daunting task in needing to sell multiple product lines from multiple manufacturers. A big headache for these reps is managing all their different product catalogs from multiple manufacturers, including constant price and model changes. Some reps may even say it's the most tedious and difficult part of their job.
What if there was a more straightforward system to manage all this information? What would it look like, what should it be able to do and what benefits would it provide?
What would a sales catalog management system look like?
* It would be a fully computer based product catalog system that could be effectively managed and automatically updated for price and model changes. With the ease of creating .pdf files of any printed material, virtually every bit of product information created can be converted to an electronic file and added to such a system
* It would be online and available at all times
* It would be under the complete control of the rep or sales agency
* It would be completely secure, but updates would be easy to perform either manually or through data imports
What should it be able to do?
* Provide item numbers and descriptions
* Deliver different prices depending on the customer, the product or the quantity purchased.
* Allow for viewing images of products
* Have links to other information about products, such as information on a manufacturer's website
* Information in the online catalog should be able to be updated automatically. Also, updating should be able to done to an individual item or on a mass basis by allowing for complete replacement of all data for a group of products.
* Allow for the grouping of products into categories and sub-categories. Also, it should allow for products to be grouped into more than one category or sub-category.
* Ideally, it would be linked to a sales quote to order management system
What would the benefits be?
* The rep would have all products for all the companies he represents in one place
* Errors would be reduced as updates to information would be managed much more efficiently and effectively. The following errors would be greatly reduced:
o Basic pricing errors
o Price breaks at specific quantities would be not be missed
o Items on sale would be clearly visible and therefore, more easily promoted by the sales force
o Obsolete or inactive Items would no longer appear in the online catalog
* Dramatically less time spent juggling catalog information. Products would be easy to find.
* It would be much easier for manufacturers and reps to have their product information match exactly
Software tools are available now (or soon will be) that can do all of these things. It will develop rapidly and it's because the technology to easily store data, link to data and simply leave information in an available area on the internet where others can find it, is so prevalent. All that is needed is an internet connection. Another big development is the rise in use of hosted software, where users can just rent specialty software on a monthly basis and use it right over the internet, instead of having to buy and maintain the software themselves. Intelligent tools are there for those who recognize their value. That is how I see this arena developing and it's going to lead to a dynamic and fast moving future as even the little guy will be able to have the same software horsepower as his much more established big company rivals.
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For many entrepreneurs the creation of a business plan is the biggest hurdle in the development process of their fledgling enterprise. There is a mystery, almost a dread in many people when discussion of a business plan requirement is first broached. They conceptualize a boring, dry, painful experience and many would like to avoid this step if at all possible.
What is a Business Plan?
A business plan is a document that qualifies, quantifies and narrates a commercial opportunity. It is that simple to state, more difficult to execute, but anyone can customize a business plan that gets results. The plan must have an exciting Executive Summary. Like the opening scenes of a movie, or the first chapter of a book, the writer must set a hook.
Typically, active investors, angels, venture capital groups and investment bankers are deluged with business plans. Screeners typically read the document before passing along to decision-makers within the firm. However, very few move a business plan along the decision making food chain precisely because the Executive Summary lacks excitement, punch or sets a high level of anticipation about what is inside the document.
Having written hundreds of business plans for clients I can attest that creating a plan that works is, well, work. No two plans are alike. The plan must be customized, well researched, structured and direct. I receive more than 500 business plan submissions annually in my consulting firm. Less than 1% have commercial potential as written. Many describe products, services, retail or new business development ideas that otherwise might be exciting. However, the plan does not convey that potential.
One of the worst things to evolve from the arrival of the internet is the ability to download a business plan template and write the document by filling in the blanks. The template itself is not problematic, I use a self-developed template when I customize plans. The problem is that many entrepreneurs do not have the writing skills, the research in hand, know the keys that turn on investors and thus, take shortcuts. Filling in the blanks without sweating the details and doing comprehensive research results in a document that will not be read and an opportunity that will never launch.
Rule number one in the development of any commercial opportunity: shortcuts equal failure!
I am a self-taught business plan writer. If I can do it, anyone can. In reality, however, most people just want to expose their opportunity to investors, licensees or potential partners. They don’t have writing skills, do not know the types of research necessary to support the plans sales model, need help in creating the marketing strategy, and will never be able to narrate financials. Where can they go to create and exciting business plan document?
The following are resources readily available in most communities. Many are free.
Many colleges, community colleges and universities have developed small business incubators. They attract additional state funding, as small business growth and development are keys to job creation and an increased tax base. Take advantage of this community asset. Students, graduate students and professors are often available to direct your efforts. Ten years ago there were only a handful such programs. Today, over 1000 schools have some version of an entrepreneurial program.
Many states, regional and local governments offer business development programs. They have retired business people and mentors on hand to support, guide and train prospective entrepreneurs and guide business plan creation. There is no charge for utilizing this service, after all, your tax dollar supports these programs.
SCORE, the Service Core of Retired Executives is a Federal Government sponsored initiative. Thousands of retired, experienced business people make themselves available to evaluate commercial opportunities and direct the development and launch of those deemed to have potential. They are often intimately involved in creating business plans.
The Ewing Kauffman Foundation in Kansas City, MO is devoted solely to the development of entrepreneurial development. Mr. Kauffman started, nurtured and developed Marion Labs from a tiny drug local company into a multinational, multi-billion dollar powerhouse. He also owned the Kansas City Royals baseball team. His devotion to developing and promoting the entrepreneurial base of the United States resulted in creation of the foundation that bears his name.
Seek out a consultant. Typically consultants charge a fee, just like lawyers, accountants or plumbers. The advantage of an experienced consultant is that they write business plans for a living, will be strong writers, able to properly direct or perform research, narrate financials and differentiate a commercial opportunity by creating an exciting word picture. Always seek references and talk to several before deciding on a consultant.
Why Do I Need a Business Plan?
You might not. You might not need a deeply customized business plan if you are seeking to license or sell an invention, a patent or a prototype product. In this situation, the potential licensee would take your work product and develop a plan that fits their internal organizational needs.
However, if you are attempting to fund a start-up business, self-market a product or buy a small business you will absolutely need to create a road map. That road map is your business plan. The map is not linear, there will be curves and setbacks, but by quantifying, qualifying and narrating a well- researched, customized business plan you are much closer to success.
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It can be frightening to start your own business. You need capital, inventory and a storefront. You need to choose a name for your business that customers will recognize as well as sell your product. Why not take the guess work out of opening your business by purchasing a franchise. The name has already been chosen for you and by simply writing a check, you'll be able to open the doors and begin doing business as soon as you want to.
But what franchises are the best to own?
The first thing you must do is ask yourself what kind of business you want to own and operate. Start with what you're good at. Maybe you are an amateur photographer? So buy a mobile photography business. Or perhaps you've planned weddings for all of your friends, and they thought you were pretty good at it. Buy a wedding/event planning franchise.
The possibilities are endless. Of course, you could buy a fast food franchise, the big three are always for sale, and McDonald's, Wendy's and Burger King have web sites that you can find prices and preferred locations. A fast food franchise will tell you exactly what to do, where to do it and how. For the right price, you can be a restaurant owner in no time.
If you don't like the idea of flipping burgers for a living, that's okay because there are lots of other opportunities available for purchase.
Some of the more popular franchise opportunities are: Cellular Phone, Health and fitness, Hotels/lodging and online auction franchises.
Although these are considered some of the more popular franchises, you can also turn to the more creative. Gift basket franchises have grown exponentially over the last five years and are very popular in college towns. Mom and dad want to send their little one a birthday cake or a congratulations basket for passing a test. You get the idea! In addition, tanning salons, day spas and even personal staffing franchises have become must haves for many potential business owners.
Do you like dogs and cats? Why not open a pet services franchise or a dog daycare or a pet grooming franchise. They are all available.
Speaking of day care, if pets aren't your bag, maybe you'd prefer working with the elderly? Because of the aging population in the United States, there has become a huge need for elderly day care. Children are now taking care of their parents. Those that require adult day care are the folks that either can't afford to go to a home or aren't bad off enough to go to a home. They just need someone to be with them to make sure they get a bite to eat during the day and don't burn down the house while doing it.
What other franchises are best to own? Cleaning/janitorial franchises, tax services, hardware stores, convenience stores, hair salons, mail box stores, health care franchises, printing shops, pet waste removal and flower shops.
Most franchises start around $10,000 and can increase to as much as $100,000.
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Are you interested in starting your own business, but do not have a lot of money to invest? Would you like to experience the satisfaction of being your own boss? Here are 5 of the best small franchises that can get you started for under 10K while also providing training and support.
1. The Back Rubber
With today's stressful lifestyle, many people would love to relax for a few minutes in a message chair. The Back Rubber franchise is great for any high traffic areas like shopping malls, airports or hospitals. It is a very easy franchise to maintain and provides a nice income. This franchise can be started for as little as $1800 with financing available. VIP packages start at $7495 and some owners are reporting incomes as much as $350 - $400 per chair/per month.
2. Vendstar
Vending routes have become very lucrative and Vendstar is a leader in the vending industry. It has become one of the best small franchises to own and you can get started for as little as $5,000 with financing available. Vendstars profit margins usually average about 75% to 80%. You can easily work from home and set your own hours. Vendstar routes can be operated full time or part time as your schedule demands and require no employees or rent.
3. Rotobrush
How would you like a franchise opportunity that will provide you a great income while helping people? A Rotobrush franchise can help to prevent fires, cut down on energy bills and even prevent death or injury. Clothes dryers account for almost 16,000 fires per year. As a Rotobrush franchise owner, you can help to provide a safe environment and make about $125 on a typical job. You can get started for about $5,000 with financing available. Rotobrush has been in business over 20 years and has a great reputation and marketing program.
4. Von Schrader Carpet Cleaning.
One of the best small franchises in the world with a well known and respected name, Von Schrader has been providing small business opportunities since 1935. The Von Schrader Company was the pioneers of onsite carpet cleaning systems. As a Von Schrader representative, you can build your own business as large or small as you desire and the best part is you are in an industry which generates repeat business. As your clients come to know your reputation, they will call you back again and again. You can get started in your new business for as little as $600 to $4000.
5. Fresh Coat Paint Systems.
If you would like to start your own painting business, then you need to check out a Fresh Coat business franchise. Fresh Coat offers training and support on how to organize and run your own business. Better yet, they show you how to get the business with their unique marketing program. You can get started in this lucrative business for $10,000.
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In the UK there are many franchising opportunities being offered for sale. For people who would like to manage their own business franchising can be an attractive option. People buying a franchise will obviously want to be sure that they are investing in a profitable business. Although buyers can never know exact figures, with work they can make accurate estimates on the likely profitability of the business. Evaluating a franchise to see if it will be profitable enough to make a viable business can be done through a number of stages.
Purchase Price
Every franchise will require its franchisees to pay an initial fee. This fee is the starting point for the franchise agreement. The size of the fee will vary substantially from franchise to franchise. All potential buyers of a franchise first need to calculate how much they are able to invest and rule out franchises that are too expensive.
It is not just the size of the investment that should be considered here. Also to be taken into account are other expenses needed to begin the business. These costs will include the purchase of any relevant stock, equipment, property, transport and IT systems. Totalled together these costs will give the purchase price of the franchise. It is important that franchisees also look at exactly what is included in the investment i.e. is training and support provided or will this be an additional cost.
Estimating Income
Franchisees should ask to see profit and loss accounts of existing branches of the franchise. Ideally to be of maximum use these accounts will be from a branch of a similar size and location to the branch that they are proposing to open. If taking over an existing branch of the franchise estimates will clearly to easier to make although they should be adjusted to account for the new owner's level of expertise and experience. Franchisors will usually provide financial forecasts which again can be useful when estimating likely income.
Borrowing & Interest Payments
It is likely that anybody investing in a franchise agreement will commit to a certain amount of borrowing. When calculating profitability the repayments on this lending will need to be taken into account. People interested in entering into a franchise agreement may find that lenders are prepared to provide up to 60-70 percent of the initial investment amount. Generally the less the franchisee has to borrow the better. Franchisees should look to see how much they have to invest and then calculate how much they will need to borrow.
Franchise Profitability
By deducting the size of the initial investment, running costs and loan repayments from estimated income potential franchisees can calculate how profitable the business is likely to be. With this calculation franchisees can then decide if the franchise will make a good investment.
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It is an essential requirement for almost every company to be able to meet customers' requested service levels with a minimum amount of inventory. This means having the right products in stock and virtually nothing else. Excess stock means excess capital outlay, which has a massive impact on bottom line profitability. However, this aim has to be balanced against the potential damage of having insufficient stock leading to lost sales, lost customers and a negative impact on bottom line profitability.
In theory, it all sounds rather simple, but in reality of course, it is rather trickier. With the diversity of products held in many inventories and across different industries, each with different needs and potential, allied to changing market conditions and customer demand, inventory management is a complex and potentially expensive function. At the same time, there are also internal challenges - even differing priorities - within the organisation. CEOs want to improve customer service, sales want more products to sell, and CFOs want to reduce inventory. Surprisingly, while this is the area where most ERP software implementations normally get their highest and fastest return on investment, it is also true that many companies that have implemented ERP have not yet added a dedicated inventory optimisation module. There is huge potential for companies to maximize the value of their IT investment for a relatively small incremental expense. The benefits of inventory optimisation are felt throughout the organisation - in the warehouse, in sales and marketing and in the finance office:
* Enhanced customer service through increased competitiveness, improved fill rates, fewer shortages, and on-time deliveries;
* Reduced working capital requirements through reduced amount of stock and less obsolete stock;
* Lower transaction costs through more efficient processes.
To optimise inventory - to have the right item at the right time - is a constant balancing act that consists of five different steps:
* Analyse the current situation, see what items are selling and assess delivery performance;
* Classify items into different categories that can be handled with ease, and define the strategy per product segment that prioritises to maximum effectiveness and efficiency;
* Calculate as good a forecast as possible, adopting different but relevant policies on different segments;
* Control costs by optimising replenishment, adopting different replenishment policies on different item segments; and
* Replenish with the best possible collaboration with suppliers.
Inventory optimisation is no longer optional but an economic and logistics necessity. It offers the potential to save on space, time and costs, as well as freeing up working capital that could be more effectively used for other projects and activities. The objective of any inventory management system is to provide the best possible customer service within the restraint of the lowest practical inventory costs. Inventory optimisation offers the tools to help you achieve those aims. This is the Executive Summary of a 5-part series of "How To" guides on Inventory Optimisation.
Step 1: The case for inventory optimisation - How to balance your inventory levels and maintain costs
* Meeting your customers' service level expectations
* Minimising stock holdings
Step 2: How to analyse your inventory performance
* Measuring your sales, volumes and delivery performance
* Measuring your supplier performance, fill rates and times
Step 3: How to classify your products and define your strategy
* Segmenting products according to value, movement and lead times
* Strategising each product segment for optimal service levels
* Applying different rules for different segments
Step 4: How to calculate your product forecast
* Detecting repeatable demand patterns for accurate statistical forecasting
* Demand planning to meet sales and marketing initiatives
Step 5: How to optimise your product replenishment
* Streamlining collaboration with suppliers
* Increasing supply chain efficiencies
IBS Australia develops ERP solutions and business management supply chain software for inventory management systems, manufacturing ERP software, business intelligence systems and integration ERP software. The IBS ERP system is fully integrated and includes collaborative sales, procurement, customer service, order management, demand-driven manufacturing, inventory management, business performance measurement and financial control.
Many organisations role out marketing, CRM, and loyalty programmes without establishing what is important to the customers they are about to inflict their ideals and offers upon with reckless abandon with little thought as to why.
You can encourage your staff to deliver excellent customer service until the cows come home, and you can buy a top-of-the-line CRM system. But if your organisation isn't clear on its values - on what it stands for - you'll very likely undermine your efforts.
For employees to be fully empowered to consistently create customer experiences that foster loyalty, they must understand and live the organisation's values - what they are, and how they show up in employee behaviours. Values provide a valuable framework for the day-to-day choices employees make and actions they take toward organisational goals.
Unifying values are the blueprints that drive an organisation's culture. If employees know that 'excellence' is an organisational value, they will make more choices toward that end. If 'teamwork' is a corporate value, they're more likely to make choices and take actions with the team's best interests in mind. In addition, values:
* Make it easier for employees to figure out how to 'do the right thing'
* Foster strong feelings of personal effectiveness and pride * Facilitate consensus about goals and understanding about job expectations
* Reduce levels of job stress and tension
* Provide a sense of order without imposing 'rules'
* Promote high levels of company loyalty
One of the biggest mistakes companies make is believing that they're already living the values they feature in public relations and marketing materials. There's often a huge gap between the values organisations say they have, and the values they'd like to have or are actually living.
To close that gap, the following steps are for defining, refining and reinforcing organisational values:
1) Brainstorm, explore and clarify organisational values. Give everyone a clear, common everyday understanding of how you define your values and what they look like in daily behaviour. Just using words like 'integrity' or 'balance' is not enough since everyone has their own definition of what words mean. The time it takes to zero in on what your organisation is really about is well worth it.
2) To achieve or maintain your competitive edge, make sure your values are 'customer-focused.' This means you've taken the time to look at what your customer's value, and usually requires an 'outside-in' view of your organisation. Spend some time truly understanding what the customer expects from you, what their goals and dreams are and how they feel about doing business with you.
3) Give each and every employee the opportunity to uncover his or her personal values. Why? Research shows that even if personal values are not in sync with corporate values, employees who are clear on what their own personal values are tend to be more engaged in and committed to their work.
4) Reinforce values. Make sure they're an integral part of your hiring, orientation and ongoing training programs. Management should consciously model organisational values, and encourage and praise staff members when they exhibit behaviours that support them.
5) Revisit values regularly to determine if they still make sense, or if changes may be necessary.
The bottom line companies that live by their values and keep customers more easily create profits. Today's more cynical, demanding customers are looking for companies that are driven by their values - not just their profit motives. Organisations that know and live their values tend to create great places to work for and to do business with. They enjoy healthy profits as a result of their customers returning to buy more, with their like minded associates in tow.
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An "exit strategy" is one's plan for closing or, preferably, selling a medical practice or more traditional business when one retires, becomes ill, dies, or, for any number of other reasons, decides to sell one's business to someone else or simply close it down. It can also be a plan to ultimately find a new job, switch careers, or retire from one's current occupation.
Business owners always think about starting a business, but generally give little or no thought to exiting a business until they are ready (or forced) to do so. Similarly, people entering new careers seldom give any thought, early on, to ending or transitioning out of their career. Neglecting this important element can result in a person entering the wrong career or business to begin with, leaving them (or their partners and heirs) unprepared when the business ultimately (or suddenly) closes or changes hands, or leaving them in a potentially unhappy mental and financial state at the end of their career.
Before a physician starts a new career, or starts a traditional business, an optimal exit strategy should always be considered long before the actual exit. In fact, an exit strategy should be considered before the new career or business ever gets started. Careers and business ownership never continue indefinitely, never. Unending ownership of a business by the same individual or individuals, or an unending career, is simply impossible.
Given this unbending law of nature, individuals should plan for this inevitability-sooner rather than later. Planning an exit strategy before starting a business or career is optimal, because it helps the person better understand the ultimate lifestyle and financial implications of starting and running a potential business, or starting a new career.
When I decided to enter family practice, and later psychiatry, I gave no thought to how much money I would make over my respective careers. I did not give much thought to lifestyle considerations, and gave no thought to an ultimate exit strategy when selecting my career. Now, after many years in practice, the financial and lifestyle implications of my decisions have become more important-but it's too late to reconsider those decisions.
Physicians contemplating a new clinical career, a non-clinical career, or starting a traditional business, should think about their exit strategy before taking action. If still in medical school, which career path you take will have very significant implications for what type of lifestyle you lead, and your lifetime income. Think about these issues carefully before making any decision. What are your financial, professional, and lifestyle goals? What is your timeframe?
For those contemplating a non-clinical career, what are the risks and rewards of obtaining additional training? What about getting an MBA or other advanced degree?
For those going into medicine or starting a small business, do you want to be an employee, an entrepreneur (physicians owning their own practices fall into this category), or a partner? What business decisions along the way will optimize your ultimate situation? For example, should you rent or lease equipment? What are the financial and tax implications of renting versus buying real estate? What about employees and the associated workers' comp, health insurance, and other potential expenses?
What are the implications of partnership? Most often, entrepreneurs form partnerships with family members or close friends. Needless to say, there are numerous potential risks and benefits in doing so. Given the unnerving fact that more than half of businesses fail (or change ownership) within five years of starting, forming a partnership with a close friend or loved one can cause a great deal of strain in the relationship.
A partner (or you) may become disabled, incarcerated, or even die. Because of this, individuals forming any type of partnership (including corporations) should also agree to, and sign, what is called a "buy-sell" agreement (this is described in more detail in our book, Mega Options for Physicians). This should be considered prior to starting a new medical practice or small business.
The ultimate sale of a business is obviously better than simply closing its doors. Business valuation can be simple or complex, depending upon many factors. For medical practices, basic valuation depends upon assets and liabilities, as well as current and potential cash flow.
For larger and more complex businesses, the most basic elements of valuation include the current and depreciating (rarely appreciating) value of assets; liabilities; current and potential cash flow; intellectual property as well as innovation history and potential; alliances and partnerships; current and potential market share; board membership and governance; strength of the management team; barriers to entry for new competitors and relative strength of current competitors; brand value; distribution and logistics capability; customer base; sales force; company and industry technology; and, position in the industry business cycle (growth potential).
In summary, don't just think about starting a business or new career-think about how it's going to end, because some day it will (for you). While we want to enjoy our work life and have a great lifestyle, fundamentally, we are "in business" to make money. The relative priority we place on money and lifestyle varies from person to person. Thinking about retiring, selling our business, or changing jobs, early on will make the transition easier and potentially more satisfying, for us and-if we have them-our partners and/or spouses as well. Don't just think about the beginning; think about the end (and beyond).
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Catering is a tricky business. What if you just opened a gourmet catering service and everything went wrong! This will definitely hamper future progress and ruin your already fledgling finances. Do a test drive before you open. This is called a soft opening.
Before you start advertising your services, hold back and only spread the word in your immediate family and friends. Weeks before opening, arrange a small function for them and see if everything works out as planned. The only problem with any soft opening is that you not only have to spend from your pocket but also pay your staff.
The solution to the problem lies in hiring staff from an outsourcing company that specialize in providing a professional catering staff. While the function goes on, this strategy will allow you to focus on the needs and demand of the customers. You and your full time staff stay aside and visualize the entire environment to view it from a customer's perspective. Remember! If something goes wrong, you cannot change things around. It will be a ripe opportunity for you and your staff to note down the short-comings.
Experts even recommend that soft openings should be outsourced entirely. It means that everything in the function from cutlery to table clothes and furniture is provided by the catering company. This also means that the owner doesn't have to worry about minor incidents. They just focus on assessment.
If you really want to outsource a soft opening, get it done by the best in the business. Also make sure that only your friends and close family members participate. That is if something goes wrong, they can provide a cover-up. On the other hand, a successful function will mean that everyone present will be a potential marketer. You don't really have to tell them that the successful function was actually outsourced to a professional outfit. The end result! Your guests get great service and free food. You get the much needed publicity.
These days fast seem to be the norm in our society. We want something and we want it the simple, fastest way possible. However, when starting up a business, the process can take longer than some of us would like.
There is so much that goes into creating a business but some of us lack the knowledge, patience, or persistent to get it completed. There are licenses, loans, location problems, business plans, hiring policies, benefits, and much more to consider. With that said, don't get discouraged, if you seek to start a business but don't want to begin from scratch, why not look into a franchise?
The master franchise has already done the lead work. They have researched and created a successful company. They have the proven trademark and formula of operating. The master franchise offers a well-run business that provides assistance with site selection, lease negation, training, mentoring, as well as support.
The master franchise also provides the statutory requirements and troubleshooting needed to create, maintain, and operate a franchise. Secondly, master franchise offers a well thought and well designed formula for a franchise. This specially created proven formula that each master franchise has used provides individually operated franchises the opportunity to greatly increase in the local, state, national, and even global markets.
This master formula provides an already proven method of earning income that is equal or above and beyond their contribution to the communities in which they are located. All the experience of the master franchise offers each individual franchisee the chance to take their companies to a higher level than they ever planned with great guidance and experience.
Lastly, a master franchise offers adequate and intense training to each franchise. This training provides each franchise an opportunity to learn various aspects of business. If this training were purchased, or attended in a formal setting could cost the business owner upwards of thousands of dollars and countess hours. Hours that would keep from the production, creation, and success of the company.
In conclusion, owning and operating your own franchise can be a great financial reward as well as a great personal achievement, only without the "work" involved in developing a startup business. The master franchise has already done all the work and then passed it on to individual franchise owners. Allowing them the opportunity to be business owners and succeed in reaching their goals and the American Dream. Furthermore, the master franchise provides training, guidance, and support to each franchise owner, support staff, and employee.
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Today, as we Restaurant Owners struggle to keep our business afloat, we consider changes that must be made and how they will affect our customers, our staff, and our net income. Many of us believe the uncommon inflationary issues facing us today to be temporary, in fact impermanence is almost certain although no one can predict where prices will land when these unfortunate increases settle down. Consider the unsettling facts.
Last month US inflation rose an astonishing 5.6%, this is the first time it's risen that fast in 17 years. Along with a huge increase in inflation, came a 0.8% rise in the Consumer Price Index (CPI). The CPI is the measurement used to indicate the rise in level consumers feel the effects of increased cost for food, energy, clothing, and other consumer goods and services.
Though imports have become cheaper, the economy still shows weakness that continues to lead to inflation, possibly due to high commodity prices and trouble with the U.S. dollar on the international scene.
Although average weekly wages for workers fell by 0.8%, that's hardly enough to off-set the increased costs of owning and operating a successful restaurant (remember that 5.6% inflationary increase last month). And decreasing our employee's wages is not how we want to stabilize our bottom line.
As Franchise Restaurant Owners, this steep inflationary period brings us face-to-face with many issues that affect our bottom line. Some of these include:
* Consumers are tightening their belts, which means they aren't going out to eat as often as they did in more lucrative times.
* Consumers are looking for consistent, or reduced, prices when they do make purchases (or dine out).
* Energy costs are steeply rising.
* Commodities prices have risen due to increased fuel prices.
* Development costs for new restaurants have increased significantly due to literally everything in that process being affected by high fuel costs.
* Immigration is tightening at U.S. borders which may be affecting labor costs in the restaurant industry as well as labor availability.
One way we may off-set some of our rising costs is to support locally grown and produced food resources. It just may be time to go local! Almost every community has Farmers Markets and Food Co-ops. Some Restaurant Owners have formed Food Co-ops with other Owners in their area! Though this doesn't remedy all the problems we face, it certainly may be the first in a list of possible solutions that will help us avoid large increases in our menu prices, as the shorter the distance our food travels, the lower its cost to us.
Are Restaurant Owners facing the old adage "Desperate Times Call For Desperate Measures", or do we simply increase our prices while our costs are high, and bring them back down in less lean times?
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With the economy being what it is, your job in accounts receivable is more difficult than ever. It is even more difficult if you happen to be a Credit Manger or Controller and are saddled with the task of granting credit in this very volatile market. History shows that one of the many keys to that process and to successful collection efforts when that account does not pay, is a solid credit application.
Here are some key points to remember when it comes to credit applications:
Have a good solid credit application, not just customer information statement.
Do not beat around the bush in fear of not gaining a customer. You are looking at your customer's ability to repay this and future debts. You are going to extend your company's resources on the hope that they will pay you when the terms dictate. If they want to do business with you, and they are an upstanding company, they will understand. Chances are they have a credit application from their customer.
Do not be afraid to go back and ask for complete information.
Sometimes a prospective customer will rush through the application and omit information that is not in front of them at that moment. Get that information. Sometimes it is lazy omission, and sometimes it is omitted on purpose. You need all of the answers to make an informed lending decision.
Get the Personal Guarantee (PG).
Someone needs to be able to be held personally responsible should the company default. You need that person's name, address, and phone number at the very least. It is even more to your benefit if you can get their social security number, driver's license number, date of birth, etc. The more information you have, the easier it will be to collect down the road.
Set a limit, and stick to it.
A large percentage of accounts that end up in collection are over the agreed upon credit limit. If you set a credit limit, stick to it until you are comfortable with the way the customer is paying. If they have not paid for prior orders, what makes you think they will pay for future orders? Salespeople will accuse you of turning away business, but it is bad business.
Sales are not the key to your success, paid invoices are.
It is not a sale until it is paid for.
Accounts receivable are not assets - they are liabilities.
You can quote me on that!
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Every small business owner wants to keep careful track of revenues and expenses. The days of the green journal ledgers and hand-written receipts are over with the advent of accounting software and the personal computer. But which package is right for you? Do you need extremely customized software or will a program like Quickbooks work for you? Do you need help with the Quickbooks you have already chosen and installed?
For most businesses, Quickbooks is a capable and efficient program, but not for all. It would do me no good to try to persuade you that QB is for you when it isn't. If you are using FIFO or LIFO to keep track of your inventory, QB is not for you. If you don't know what FIFO or LIFO is, you aren't using either. If your business involves a floor plan financing agreement such as a furniture store or a used car lot, even Intuit admits that Quickbooks cannot help with that. There are simply too many variables that don't fit into the software without 'forcing' some 'creative' accounting.
Choosing the Right Software Package
Intuit, Inc, makers of Quickbooks software have several different packages in their software line. You have your choice from Quickbooks Simple Start (cheapest) to Enterprise Solutions (most expensive) before you make that investment you may want to consider a consultation with your local Certified Quickbooks Pro Advisor. It can be just as big a mistake starting out with the most expensive version as it is starting out with the cheapest. Starting out with the cheapest software package the Simple Start allows you to 'grow' into needing a more flexible version. But there are limitations on the Simple Start, those businesses with inventory or fixed assets may find working with the Simple Start program very difficult. Yes it allows you to do both, but there are no sub-accounts in the Simple Start package. You cannot send a copy of your books to an accountant and you don't have a complete range of reports you can generate either.
Quickbooks Basic
The Quickbooks Basic package is a little more than the Simple Start and will help keep track of revenues, expenses, and be able to create some reports based on that information. But if you are keeping track of inventory, payroll, or any other more complicated accounting then you will need to consider Quickbooks Pro or Premier.
Quickbooks Online Edition
The latest addition to the Quickbooks family is the online version. It has the same capabilities as the Pro version below, with the added benefits of additional users and convenient online access from multiple locations. There is a monthly service fee ranging from $6 to $20 a month. This version will do payroll, revenues, expenses but will not do inventory. As of 2008, this version still cannot do inventory. The major disadvantage to this package is the continued cost every month which I believe is more than offset by the major advantage which is that you will never have to upgrade your version of Quickbooks, you will always have the latest version.
Pro Vs. Premier Vs. Enterprise Solutions
Most businesses can use the Pro version, which is about 30% less than the Premier. If you are not using inventory, sales orders or purchase orders, the Pro version would be perfect. Almost any service industry can use the Pro package and benefit from it with no problems. The Premier version is on the higher end and allows you to track inventory, sales orders, back orders, purchase orders, etc. Rarely if ever will a business need to use the Enterprise Solutions which is capable of keeping track of 100,000 customers and 100,000 vendors with up to 20 users. Enterprise Solutions is a great package, but there are many multi-million dollar businesses that are doing just fine with Premier.
Point of Sale Package
The Quickbooks POS package is for businesses that want to keep close track of inventory and be able to have the all-in-one capabilities of being able to print bar codes to help save time and effort on reordering inventory, sales, and cashier training. There are so many variables in choosing a QB package that it would be hard to list them all but you need to ask yourself a few questions.
• Do I want to be able to store my accounting information online in case of computer crash?
• How many people will be using my QB at the same time?
• Will it be on a network, or on individual computers with different users?
• Do I anticipate steady growth in my business or will the demand outpace my software?
Calling a professional in your area for a QB Consultation will save you money! Most QB mistakes occur during initial setup, and these mistakes can be costly to correct, find an expert to help you! Most companies do not make full use of the QB software they already own, simply because they haven't been shown how to use it.
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The definition of accounting is the study of how businesses track their income and expenses. Accounting practices are essential in a business for two major reasons:
- To determine whether or not a business is making a profit and how much profit is being made.
- To collect financial information for filing tax returns.
In order to understand accounting systems, knowledge of some basic accounting concepts is necessary. The accounting process is comprised of three parts, which include the journal, general ledger, and subsidiary ledgers. Each of these parts provide valuable information to a business owner.
Journal - Each individual transaction entry is entered and recorded in a journal. There are often several different types of journals in a business. Each type of journal records a different type of transaction. For example, a transaction may be classified as a sale, purchase, cash receipt, or cash disbursement. After these transactions are entered and organized in the journal, they are transferred to the general ledger.
General Ledger - After being transferred from the journals to the general ledger, the financial data is organized into three main categories: Assets, Liabilities, and Capital. The account balance is then calculated and a financial report is obtained.
Subsidiary Ledger - The subsidiary ledger provides more specific information that is not able to be provided in the General Ledger, such as the name and demographics of each customer and the customer's balance. This information is obviously important for billing purposes.
Understanding of debits and credits is the foundation of understanding accounting systems. Because every business transaction affects at least two accounts, each transaction is recorded using a double-entry system of debits and credits. Debits are entered on the left side of the balance sheet. Credits are entered on the right side. Costs and Expenses are recorded as debits. Income is recorded as credits. Assets are recorded as debits. Liabilities are recorded as credit. Debits and credits must be equal for all entries.
The following is referred to as the General Accounting Equation:
Assets = Liabilities + Owner's Equity
Assets are things of value that the company owns. Liabilities are what the company owes. Owner's equity (or capital) is the net worth of a business and includes any debt owed to business owners.
For example, say I am buying a car for $10,000. If I borrow $5500 and have saved $4500, my assets are worth $10,000, my liabilities are $5500, and my equity is $4500. If we plug these numbers into the General Accounting Equation, we come up with $10,000 = $5500 + $4500. Note how the equation is balanced.
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Putting emotional intelligence to work is an emerging trend, not only in the corporate leadership but also in entrepreneurship. As an entrepreneur, you cannot rely solely upon your intellectual knowledge. Aside from your IQ, there are a lot of other skills and competencies needed to take your company from a startup to a thriving enterprise. "Entrepreneurs are those that shine and excel in the workplace beyond the norm," according to the study made by Cross and Travaglione of The University of Newcastle, Australia. But really, what sets entrepreneurs apart from the other members of the workforce? Are these characteristics innate, or are they something that can be learned?
Entrepreneurs are not afraid to express their emotions. Entrepreneurs are the kind of people who are expressive and do not withhold information, even their own emotions. This is not only a trait of emotionally intelligent entrepreneurs, but it's also more of a strategy to resolve issues and conflicts.
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Entrepreneurs know how to regulate their emotions. Being an entrepreneur means you're exposing yourself to a lot of risks and stress. But have you ever wondered why successful entrepreneurs just don't stop despite these negative conditions? It's because they know how to control their emotions. As a result, they "create inspiration and commitment, motivate skills, maintain harmony, and manipulate trust" (Cross & Travaliogne, 2003).
Entrepreneurs use their emotions to solve problems. Starting an enterprise and keeping it alive not only involves risks and stress but also a whole lot of criticism and rejection. According to studies, entrepreneurs have the tendency to transform negative feelings such as criticism and rejection into a motive for improvement. These highly self-motivated individuals use their feelings as a source of determination and relentlessness to avoid a repeat of such rejection and criticism.
Emotionally intelligent entrepreneurs have a high level of self-awareness. These individuals are well-grounded yet confident. They know what they want and what they can do. Their knowledge of their self-efficacy helps them decide on matters that could affect the business, no matter how big or small the impact is. Being an excellent decision-maker sets these breed of individuals apart from the regular members of the workforce.
Entrepreneurs are socially adept. In an entrepreneurship, an entrepreneur is often faced with situations that require persuasion and negotiation skills. They have the tendency to use their social skills to their advantage, like getting people to agree with them or do business with them. This talent starts from their smart ways of building a network of people they know, trust, and like before they even need anything from them. No wonder they often get what they want!
EI SMART entrepreneurs know how to effectively empathize. In the past, researchers define entrepreneurs as opportunists and creators of opportunities that they can exploit (Littunen, 2000). But really, entrepreneurs are more than that. In fact, they are not only good at creating opportunities, but they are also good in showing empathy to others, especially the people they work with. They know how to build, cultivate, and promote rapport among employees and clients.
Now, who says that emotions are unimportant in the business? Of course, they are! Your emotions, whether positive or negative, can influence your judgment, memory recall, ability to show appreciation, creativity, and reasoning skills. It's important as well to take note that entrepreneurs were not born with these traits. These characteristics were developed over time, thanks to experience. Also, it's good to know that these strategies can be learned. Nobody expects you to have all six characteristics mentioned above. Now, ask yourself, "Am I ready to learn about EI and be an emotionally intelligent entrepreneur?"
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