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Want a business loan? If you want a business loan and do not want to pay much through the rate of interest then the low rate business loans will be the good choice for you. By its name only these loans assure you of charging lower interest rate and therefore, there is no loss in going for it. Moreover, financial assistance while starting or running a business is essential. So, why not taking these loans up and earn good?
For paying very low as rate of interest you can go for the secured loans. As the business loans are being divided into secured and unsecured, you can go for any. But for the lowest interest rates, the secured loans are the perfect. The offered amount in it is big and therefore, these are ideal for big businesses. Through it you can start a new business or can bring change to your old and running business. But for getting such facilities you would have to provide a valuable asset as collateral. Then only you will be able to get these loans.
Unsecured loans are not like the secured loans and for getting it you will not have to place collateral. Without placing security you will get money for your business. The offered amount in it is small but will be good for small businesses. You will find the rate of interest of these loans to be high. So, if you want then you can avoid it by adopting other appropriate loans.
In fact, all kind of people are allowed to get money in it. The bad credit holders too are eligible who can get it with records like late payment, CCJs, defaults, bankruptcy or arrears. In spite of having such records the low rate business loans will help you in buying the loan or property for business, in buying machines and raw materials and in hiring man power.
However, in a new twist of events, consumers are no longer the only people affected by identity thieves, as businesses have now become prone to the development in the criminal enterprise of business identity theft with quite a number of businesses losing a lot of revenue in the process. What usually happen is that, a criminal will hijack the identity of a particular business and use it to establish a string of credit with banks and other lenders.
This in turn leads to a damage that can be very devastating to the victim’s business. A business could risk having a spoilt credit history therefore raising the chances of being denied credit, a move that will definitely paralyze your operations. Anyone looking to protect their businesses from identity thieves should ensure they have good privacy protection system.
After a number of businesses reported huge losses due to this, many business owners have turned to seeking help on how to keep their businesses safe from the business identity thieves. Some effective guides have been put in place to ensure consumers and the businesses are thoroughly combating the menace to avoid and reduce the threats businesses face from identity theft. Below are ways which businesses use to prevent identity theft.
Protecting Business Records and Data.
As much as business identity theft is a high-tech crime that affects those shopping, communicating and doing business online, most business identity thefts takes place offline. Some of the common tactics used by these frauds includes stealing wallets and ladies’ purses, interrupting or rerouting mail and going through garbage so as to obtain sensitive information.
To counter this and ensure privacy protection, most businesses today maintain records that are important to run their operations and totally shredding all the unnecessary documents or records. However, while doing this it is advisable to put any document that you must keep in a very secure location. This guarantees businesses their privacy protection and ensures smooth running free from identity thieves.
Protecting Their Businesses Online.
Technology has eased life with the introduction of a couple of online services that makes our lives much easier and better. Many people do a lot of their transactions online today. However, caution is advised for businesses which strive to secure their identities. Most of them have resorted to not sharing their financial documents, sensitive personal information or account numbers via platforms like e-mails or any other web-based services.
This has proved to be helpful for many business owners as their financial privacy protection is sorted, therefore running smoothly without having to worry about business identity thieves.
Actually, this goes without saying, anything that you do not keep your eye on, will definitely face some external disturbance. Therefore, the best method to detect possible identity theft is to be aware and monitor activities around your business. Most businesses do this by monitoring their credit reports more often. Some businesses have gone a step further and registered, rather signed up for credit monitoring service. Among ways to ensure your privacy protection, this is among the most effective.
When thinking about protecting yourself from identity theft, a business should also consider doing the same for the personal and sensitive information of its clients. By protecting their customers, businesses today have experienced less identity theft because, by protecting their customer’s privacy, it keeps them safe as there are no loopholes. Customers can at times be the targets of the identity theft putting both them and the business at risk.
Watching out For Phishing Scams.
Many people have fallen prey to scams and lost quite a lot of money to fraudsters who trick people into divulging their confidential personal and business account information e. g. account number, passwords and user names. Businesses have therefore become alert on such and are avoiding any persuasions to click or open up any attachment in emails as doing so could connect them to fraudulent websites or causing a spyware to be installed in their computer therefore putting their privacy protection at risk.
Subscription to Email Alerts.
There are many genuine online platforms that offer free email alert services that can notify one when business registration information has been changed or updated. Many businesses have embraced the idea and have enrolled for such services because it provides them with early warnings of potential fraud. Using email alert has improved business operations since business owners are notified of any fishy transactions on the go and can therefore quickly act on them, saving their business great deal of money and reputation.
Filling Annual Reports and Renewals on time.
On top of the administrative risk of dissolution of a business for failure to file, business identity thieves are on the lookout for businesses that are classified as suspended, inactive or in default. These crooks believe that if a business fails to keep up with normal annual business filling, then they will not realize when information has been changed until it is too late. Businesses are countering this by ensuring they file their returns well in advance to ensure their privacy protection.
Many businesses have counted major losses following attacks by business identity thieves who give them sleepless nights. In a bit to recover from the losses, most of them hike prices so as to cover for the cost of ensuring smooth operations, in terms of both the business and consumer’s privacy protection. This has led to incessant cases of hiking that has instead turned consumers into victims of high product prices. The cost of business identity theft costs businesses across the world an estimated $221 billion in a year therefore becoming the newest threat to both small and big businesses around the globe. However, following the few ways we have listed above, business owners are able to dramatically reduce the chances of experiencing business identity theft.
You can easily find a small-business owner that will tell you “I don’t need a website. ”
And they’re right– businesses that don’t want to be successful certainly shouldn’t spend the time and capital to build a website for their company.
Honestly, it’s tough for me to admit that every company doesn’t necessarily need a website. But any company that plans to compete in the ever-changing market and become successful in the future will absolutely need a website. A crappy one might do better than none at all.
Half of all small businesses don’t have a website to market their business online. This is not an inflated number. According to a 2013 survey of more than 3, 800 small businesses conducted by Google and research company Ipsos, 55% of small businesses don’t have websites representing their company.
These numbers are outrageous when you look at how much the world has changed in the last 10 to 15 years. Consider the growth of smartphones, tablets, Facebook, Google, Amazon, and anything that has to do with the internet.
The world is forever changing. So why the hesitation?
I believe that the problem lies in lack of education and perceived complexity. Here are some of the objections that I’ve come across.
An Incomplete Understanding of the benefits of a Business Website
As professionals in web development, we have failed to educate the older generation in the benefits of the internet and how it can be used to improve business. 76% of small business owners are over 45 and Facebook has only been around since 2004!
The digital age has only become common in the last 10 to 15 years. Our small-business owners did not grow up in a world of internet technology, they’re only adapting to what is most convenient to them and what is the easiest to understand. Since the average small business owner doesn’t have a dependency on the internet, it would be difficult for them to understand why their business would.
They also don’t understand how a website could help their customers.
Their lack of dependency on the internet, blinds them from the fact that the newer generation would be crippled without the aid and resources of the internet and that their business would be able to reach these customers more effectively online.
“Nearly all consumers (97 percent) now use online media when researching products or services in their local area, according to BIA/Kelsey’s (http://www.bia.com and http://www.kelseygroup.com) Among consumers surveyed, 90 percent use search engines, 48 percent use Internet Yellow Pages, 24 percent use vertical sites, and 42 percent use comparison shopping sites.”
At the very least, small business owners should have their address or contact information on Google so when people are looking for them, they at least have a point on Google Maps. A business card or yellow page ad simply won’t cut it anymore.
By now it will sound like I’m beating a dead horse– I get it. Just to be clear, I am an advocate of figuratively beating dead horses if it means I prove my point. My point may seem obvious to those in the industry, yet it is still foreign to those who haven’t found a use for their business on the internet. It is only natural to have the idea that websites are complex, time-consuming, and not worth their time.
The truth is, anyone can build a website. Trust me, this article was written by a monkey on a laptop. It’s one thing to create a beautiful, functional, and fluid website, it’s another to optimize it so that people can find it and find use in it. Because of this reason there are companies like us that strive to making it easier and simpler for businesses to create a website and run their business online.
But what if my business is doing fine without a website?
Just because things seem OK now doesn’t mean everything is fine. That’s like jumping off a building and halfway down saying, “So far, so good! ”
It may be true that these businesses are doing “fine” with word-of-mouth advertising and their current customer base, but this does not account for changes in the market or guarantee that they will have continued business. The longer it takes for us to realize the need for a website the more we give other companies the time to adapt and eventually replace us completely. Ignoring this concept is a recipe for entrepreneurial disaster.
So how do we fix this?
Simplification, Education, and Affordability.
First we make it easier for anyone and any business to get up and running online.
We then teach them how to take advantage of their online business, reach their customers online, and promote their website.
In order for these to be possible, we have to find a way to make it affordable and accessible to all business owners and entrepreneurs.
Having a website for business shouldn’t just be another business investment, this should be an absolute necessity for every small business. Period. Non-negotiable.
Writing a business plan or even thinking about doing it drums up feelings of dread. It is a bit tedious and takes some dedicated time. You may even think it isn’t really needed for your small business. But, you are wrong!
Your business will not reach its full potential if you don’t know where you are headed. You need to have your business goals written down so you can see how far you have come. It is so satisfying to look at your business plan (or goals) one year later and say, “WOW, I surpassed all of my goals! ” If that is the case, it’s time to write a new business plan with bigger goals. It is an evolving thing.
Most of the time, the only reason small businesses prepare a business plan is out of necessity. They need to show it to their banker or investor to raise funds for their small business. That is fine, but this report should be a priority when starting your business. You have to AIM for something and make a plan on how to make it happen. That is what all successful entrepreneurs do.
This applies to all small businesses. You can be a blogger, an independent home consultant for one of the many companies out there selling essential oils or beauty products, an auto repair shop, or a professional attorney or accountant. It doesn’t matter which business you create, you need to have a plan in place for your growth.
What is a business plan? It is simply a list of answers to questions that people might have about your small business. It is also a forecast of where you hope to be financially within the next year, two years, and five years from now. Your business plan should include a description of your service or what products you will offer. Once you know what your business will do, the next thing you need to know is whom you are going to be doing it for. What makes your business different? You need to explain what makes your business different from other businesses in your market. How do you plan to make the business succeed? You will need to forecast expected income and expenses. This will be a bit easier if you have solid financial numbers and have been in business for a while already. It is a lot harder if your business is brand new.
This has been a brief overview. If you need more help with your business plan, doing a quick search on the internet will bring up several ideas and templates to use. The Small business Administration has this great tool to use. Remember, if you are truly determined to build a successful business then you must have a business plan written and in place to help you measure that success.
Choosing a packer and mover can be a very tough task for someone who is moving out of Bangalore. For it usually involves over hundreds of calls and numerous drives across the length and breadth of the city and still there are very slim chances that you will find a packers and movers according to your requirements and the one that fits into your budget. There are over hundreds of Movers and Packers in Bangalore but it is a herculean task to find the best one for your invaluable articles. All you need is a service to let you find the most trusted and suitable of movers and packers and here we are to help you with that.
We have a very well organised and curated list of the best and most trusted movers and packers in Bangalore and we will be very happy to assist you choosing the best suited service that suits your pocket. You will have to provide us with few details like the date you want to move, your destination and your present address, using these inputs we will suggest the best rated movers and packers in Bangalore. You can also browse through or list and categorize service providers on the basis of your requirements, their services and also go through the reviews and ratings of their previous customers.
Once you choose a service provider we assign mover coordinator who will exclusively look after your chosen packer and mover to ensure proper transportation of your articles and furniture to your destination. Often Movers and Packers Bangalore often have hidden charges and start arguing later, our service will make sure that you have to pay what you see and there are no hidden charges. Leaving all your moving and packing related worries to your dedicated packer and mover coordinator will give you the time to look after things you need to arrange before moving out to a new city.
This way you can trust on our research and our esteemed user’s ratings that the mover and packer you are choosing is trustworthy and reliable. Instead of choosing packers and movers individually you may take our assistance for we will do the same thing in a more efficient manner and will also maintain your privacy and confidentiality so the service providers won’t harass you. Since we are a third party so unbiased reviews and honest quotations so you could choose the most suitable packer and mover to help you with your shifting without worrying about negotiating or being overpriced.
Now that you have a dedicated packing and moving coordinator who looks after your articles shifting and deals with the best Movers and Packers Bangalore, then you can take some fresh breath and enjoy the pleasures of shifting to a new city with your friends and family. Choose the best of packers and movers service with us and we know you would suggest our platform to all your friends and family living in Bangalore for we do know that we will make you’re shifting a memorable one.
Have you ever wondered if you could think of a marketing idea that can propel your business to sky. Like, Wendy’s commercial in the 1980’s ‘Where’s the beef’, Coke ad about it being the ‘The Real Thing’ and Nike selling tennis shoes by spreading the word of ‘Just Do It’. How ingenuous of those companies.
When people think of marketing they tend to think of advertising which can be expensive, ineffective image-based advertising. There are many ways to position yourself as an expert and build a personal connection to attract new clients, customers and patients.
Effective marketing is not cheap; however, there are strategies you can implement for little or no cost. Low cost strategy is a pricing strategy in which a company offers a relatively low price to stimulate demand and gain market share (increase the number of customers), it is usually employed where the product has few or no competitive advantage. This leaves many small business owners wondering how can i compete, with razor thin margins.
Ideally, a small business owner should spend around 35 – 50% of their time marketing their product. If you have a marketing department to support your business make sure it looks like the customers you are serving. The power of hiring people from many different cultures, products and industries to come together and create products for your consumers is powerful. The depth of ideas, understandings, insights, creativity and the blending of cultures can bring out the best solutions for your business to make more money is awesome.
Below is a list of 10 low cost strategies that can help you improve your profits.
1- Join your areas Chamber of Commerce and participate in community service events. Get involved in your community by volunteering, donating to and/or sponsor local events. It gives you the opportunity to network with other business owners and maybe cross promote with other local. These monthly meetings let you know what going on economically in your area.
2- Social media: the ability to provide information about your products all over the web.
Share what you do and what merchants you love. Completed a new project, offering a new product, and have a customer testimonial.
Write about it on twitter, website, Facebook, LinkedIn or on a industry blog. Photos and videos helps others to understand who you are, what you do and how it can help them solve a problem.
3- Tell your story in 90 seconds.
a. Develop an elevator pitch story to inform others about your business. Your story should contain the following elements.
Who you are
What you do
Why your different from your competitors
Why should they care about your products or service (what’s in it for them)
Does your message create an emotional response from your target audience demographics. Hint, use plain English in creating your message
Example: We help to make your life easier by (explain your product or service).
Note: People are unlikely to want to use your product unless they understand what it does and how it helps them. Using simple language is the best way to get them there.
Selecting a business name that sells for your business doesn’t cost a penny. Your name should tell prospective customers exactly what you do and why they should do business with you.
Remember, the product that you are offering serves a need or satisfies a want. Use customer testimonials to persuade your customers to purchase from you. Ask for them from satisfied customers and use them, make sure they are genuine and go into a little detail with real names.
4- Develop a simple marketing plan for your business
There are (4) secrets to marketing commitment, investment, communicate, consistency. It’s difficult to maintain all (4) four without some basic plan.
Make sure your plan describes how well the product or service meet the customers need or problem?
Make sure your logo and marketing message use words that paint a picture of an experience using your product that creates an imagination in the customer that generate a profit (that makes them want to buy your product or service).
It could consist of ordering business cards, attending networking opportunities, book speaking engagements and submit press releases about your product offerings.
Create an email signature, with web links to your business website and twitter link. Also, include your company name, most current achievement, telephone number and email address and tag line if your company has one.
Exit strategy, what will happen if the customers don’t buy the product.
5- Put together a list of previous customers and send them new information and promotional offers to reactivate some of them.
Reward loyal customers with discounts. It will keep them coming back and help generate referrals. Good referrals from satisfied customers is often more effective than expensive advertising.
Use social media, to offer SMS marketing (texting) to provide existing customers with new information about ‘must have’ discounted or liquidating items.
Improve Customer service
Customer Service is a form of advertising. You’re advertising that you care, that gets noticed
Use your vehicle
Vehicle Graphics are seen by thousands of people each day. Turn your vehicle into a mobile billboard.
6- Offer free public seminars or workshops to general public to come and find out how you can solve a problem for them and show them how approachable and helpful you are.
Expensive and exposure does not necessarily translate to increased sales
Rule of thumb:
Your target customers need to hear your marketing messages at least 7 times to influence buying decisions. Example, you can craft your message a public service radio announcement to get it played for free on the radio stations and small internet radio stations
Get a Piggy Back
Hitching a ride on the marketing of another company can save your small business time and money.
Example: Locating near a Wal-Mart to be near price conscious consumers on a low budget
Low attendance at seminars, charge $5 bucks
Always charge a fee for all you marketing events. Fee-paid seminars and workshops almost always generate more participants than free events. The fee implies (2) things (1) there’s something of value and the get more than what they will pay for, (2) it shows customer commitment to show up
7- Stimulate Customer Senses
Talk to your customers about how they feel about your product and store experience, why they buy from you versus other stores, they will be honest with you.
Continually educate your customers about the benefits of buying your products from you.
The more comfortable we keep our customers, the longer they’ll stay, the more memorable experience they’ll have and the more they’ll spend or pass on positive word-of-mouth.
Do you think the smell of fresh baking bread flowing throughout the grocery store or music is playing by choice? (duh)
Retail businesses have been going out of their way for years to stimulate shoppers and keep them browsing scented bathroom spray works better than disinfectant.
Did you know that Disney, which is known for its films, animation and theme parks, is very well known for its cleanliness, order and friendliness from employees.
8- Make yourself Newsworthy
Get a mention of your company in the right media
For doing a good deed in the community or a humorous tie-in with a sports event
Develop a relationship with your industry trade publications (magazines) they are always looking for ‘free relevant content’, write and article for them. It can help you to appear as an ‘expert’ to others in your industry.
9- Form a joint venture
Forging an alliance with a group of small companies or big company, give you ‘biggest bang for the buck’. Lowering your costs to enter new markets and create new distribution opportunities.
Make offers to other businesses that serve people in your target markets to pay them for referrals or sharing their list with you
Donating your products or services to select charitable events is a great way to get your name out into the community. Be sure your target market will be attending and that your brand will be well represented.
10- Under Your Nose
Are your vendors doing business with you? No, call them and everyone you do business with. If your product is not a current match to there needs, he or she probably knows someone who should be doing business with you. At minimum, ask to display your business cards and flyers at their office. Oops, I forgot, take a moment and make sure people in your immediate personal circle understand what you are selling.
Get out and walk
1. Look for underutilized store front windows in high foot traffic areas. Approach the owner and offer to pay a small fee to advertise your business in their window or reverse it, and do the some for a fellow business owner.
2. Scan your friends social media sites Facebook, Pinterest, etc. Ask them to send out a advertisement on the friends page about your business. Ask a friend if you can place an ad on his business website.
Marketing can be really creative and fun to implement to get the message out about how great your product is and how it will help other people lives to be better.
It can take a lifetime to build a business reputation, but 20 seconds to tear it down with the wrong message in your marketing campaign or an employee doing that reflects badly on your business. You, small business owner are the ‘gatekeeper’ of the image of the company you are trying to build. Monitor all communications that is released to the press about your business, you and someone else review all media coverage and commercials about your business image, to make sure it is consistent with what your business is all about. Most importantly, be honest in all communications, dishonesty can boomerang on you in a nightmarish way.
Now, when we talk about small business loans, we mean just that – small business loans. We are not talking about a $1 million loan to purchase some commercial real estate or $500, 000 to buy some investment property. We are not talking about a $3 million credit line just to show capital on a balance sheet. And, we are not talking about a $250, 000 equipment loan for a regional construction company.
We are talking about true small business credit – loans under $150, 000. Capital amounts that the 22 million small businesses in this country could use at some point in time for working capital, to renovate their location, purchase inventory, marketing, meeting payroll, developing new products or to simply have the capital on hand to acquire and satisfy customers (what business is really about).
But, we have heard ad nauseam that banks are just not lending to small businesses – claiming there is too much risk in smaller firms. So, many small companies are not even applying for credit anymore out of fear of being turned down. And, as a result, we are seeing small businesses not reach for or obtaining their full potential – essentially letting profitable opportunities slip by.
However, just because banks don’t see the true value of small companies, that does not mean that others don’t – others who are willing to do what they can to fund your business.
The Benefits of Small Business
There are some 22 million small businesses in the U. S. and they are quite the power house.
According to the Small Business and Entrepreneurship Council, small businesses;
Provide two-thirds of all new jobs in the nation.
Contribute almost 50% to our Gross Domestic Product.
Account for 97. 8% of all exports. And,
Create 16. 5% more innovation than larger firms.
All items that help make America the country that it is.
But, if banks think these firms are too risky, that is OK, because given the entrepreneurial spirit in this country, other financing firms (lenders) are stepping up to cover the small business loans that banks and traditional lenders will not. So now, you don’t have to be afraid of being turned down anymore.
3 Sources That will Fund Your small business
1) SBA Loans: Sure, SBA loans have to go through banks – which are not lending. However, banks might not be lending for their own loan portfolios but they are lending under the SBA’s programs.
Did you know that over the last three years, the SBA has been growing the number and dollar amount of the under $150, 000 loans they back – even given that banks (who originate these products) are not approving them?
From the latest SBA data;
In 2012, the SBA guaranteed 14, 520 under $150, 000 loans for a total loan amount of over $802 million. In 2014 (two years later), the SBA increase the number of these loans to 16, 043 with a total volume of $955 million – with a down year in 2013.
Part of this increase is the fact that the SBA has reduced or waived its fees on these smaller loans. From the SBA’s website:
“The SBA determined to eliminate the fees on loans of $150, 000 or less after conducting a review of the 7(a) Loan Program. As a result, a small business owner obtaining a $150, 000 loan will save more than $2, 500. ”
Bottom line – the SBA is actually doing what it can to fund small businesses in this country – including yours.
Programs to look for:
The 7(a) program offers nearly any business loan under the sun from working capital to commercial real estate.
The CDC/504 program only focuses on real estate and equipment lending. But, if your business needs either one of these under the $150, 000 amount – including renovating your location – then by all means as this is a great program.
And, the express program – which is capped at $350, 000 – is a great program. Quick and easy access to needed capital.
Now, for some quick benefits of SBA loans. The SBA’s guarantee does several things:
By capping interest rates and fees, these products tend to be cheaper in the long-run for the borrower.
Lower down payment requirements – meaning that you can keep more of your own money in your own business.
Long loan terms also allow payments on these facilities to be more affordable. Just image which loan payment would be easier to make on a $100, 000 loan at 10% interest. A bank may require the loan to be repaid in 36 months – making the monthly payment $3, 227. While the SBA could extend the term to 6 years (72 months) making their monthly payment $1, 853. The lower the payment amount, the easier it is to cover with current cash flow, making the overall loan less risky and easier to get approved.
Express programs can significantly speed up funding as some traditional business loans can take months to close while those under the express programs can be funded in the matter of weeks.
If you have been fearful of applying for a SBA loan, knock it off and go apply!
2) Alternative Lending: Alternative loans (non-bank loans) from factoring and business cash advances to revenue based loans have really picked up steam over the last 5 plus years.
These lenders are focused solely on small businesses and as such have created products that allow them to approve more loans to companies that traditional lenders will not touch – by not using old and outdated underwriting standards but by focusing more on technology.
Most alternative lenders – especially the leaders in this space – have seen their loan volumes (thus their approval rates) – increase by 150% or more year after year.
A couple of examples: According to the SBA, their largest lender – Wells Fargo – approved and funded just over $266 million in small business financing last year. However, OnDeck Capital, a leading revenue based lender, nearly doubled that amount over the same period. Further, CAN Capital claims to have funded over $800 million in 2013 – far out pacing even the top 100 SBA lenders combined.
While these loans are high-cost loans, they offer several benefits like approvals when other lenders say “no” as well as quick (in the matter of days) funding.
3) New Players: Peer-to-peer lending is know for its ability to match regular people who have extra money to lend with regular people who need to borrow. These loans are typically personal loans that can be used for nearly any purpose – like starting or growing a small business.
However, just this year, Lending Club – the leader in P2P lending – has begun to offer a true small business loan product where businesses can borrower anywhere from $15, 000 to $100, 000 at low rates. And, their approval and funding is not based on some standard cookie cutter formula that most businesses just do not meet but comes from regular people who listen to your story and decide for themselves the merit of your financing request.
If you are the owner of a plumbing company, then you are probably like many other business owners.
You realize that you can’t work forever. In fact, it may be that you do not WANT to work forever despite enjoying what you do.
Even the most successful plumbers eventually get to the place where they are ready to hang up the wrench and do something different.
They may be burned out from the daily stresses of running a business, have physical or family issues that demand more of their time, or they simply want to move on to a new challenge.
However, for many owners, it’s difficult to find the time to sit down and map out a strategy for exiting the business. If you own a successful plumbing company, you probably don’t have a plan in place that will facilitate your goals of selling your business quickly, without a lot of hassles, while creating a lifetime stream of income from the proceeds.
A significant portion of your retirement planning is likely predicated on a successful sale of your business. Exiting a business is truly one of life’s most important transitions; a transition whose outcome can make or break your retirement future.
That’s why it is so important to create an action strategy that will help you avoid making mistakes that can result in you running out of money in retirement.
But, do you know exactly what it will take to create such a sale? When the time comes to leave will you become so frustrated, overwhelmed and desperate that you make poor decisions that will cost you lots of money?
Knowing the answers to these questions is important, especially if you are nearing retirement and more than ready to start the process of selling your business. You must seek solutions that promise a better, more financially lucrative and less stressful way of achieving your selling goals.
Plumbing company owners who want to sell in the 21st Century must seek alternative systems for selling a business that address some of the common mistakes owners make when they try to sell their companies.
I say “try” because more often than not, sellers wind up either not selling at all or having their businesses sit on the market for months, even years, before they find a qualified buyer. Even if they do manage to find a good buying prospect, there are currently so many businesses on the market that they may wind up getting a lot less money than anticipated.
9 of the most common business exit planning mistakes plumbers make and how to avoid them:
It is not uncommon for plumbing company owners to have no exit blueprint at all. They usually either haven’t given it much thought or they make assumptions about the future that may not be true.
1. Not planning at all
As the old saying goes, “it isn’t a plan until it’s written down. ” For a succession plan to be effective and implementable, it Must be written down and reviewed by all parties involved. A plan must be clear, concise, and free of ambiguities that could cause problems later.
A business exit plan, while being distinctly different than your estate plan, should nevertheless complement the estate plan and ensure that your overall retirement goals are being met.
That’s why it’s a good idea to have your CPA and/or estate planner review the blueprint and make suggestions that align with your goals and aspirations.
2. Making too many assumptions
In talking with business owners who are thinking about selling, it’s interesting to see how many of them are making assumptions about both the process of selling and the outcome of the sale. The skies in their world are a different color than reality when it comes to the futures of their businesses.
For example, some plumbing company owners take for granted that a son, daughter, granddaughter, grandson, or other relative will take over the business. They may have the idea that in the event their heirs don’t want it; a group of key employees will step in to buy out the company. Or, some savvy investment group will recognize how great the business really is and snap it up.
Another common assumption made by sellers is that the selling process is easy and quick -a handshake, a check and it’s done. They take it for granted that there will always be someone looking to buy at exactly the time they decide to sell, and that the price they are asking is correct and reasonable.
Unfortunately, none of these assumptions may wind up being true. Selling in the 21st century, with its economic flux and massively shifting demographics, is anything but simple. You can’t afford to predicate your plan on assumptions based in the past.
3. Not including your family in the planning process
“Stan” was the owner of an extremely successful commercial plumbing business.
His oldest son had worked alongside him for several years, proving himself especially adroit at bidding for large jobs, handling customer issues, and managing employees. Stan assumed, without ever really discussing it, that his son would take over from him when he decided to retire.
When he finally made that decision and approached his son, he was stunned to learn that Stan, Jr. had applied to a local business college and had no interest in taking over his dad’s company. Neither did the other kids, for that matter.
It’s easy to avoid this situation (and many others) by keeping your family apprised of your intentions from the very beginning in an honest, transparent manner.
You should work to achieve consensus on all important issues, including discovering whether or not a family member or spouse wants to take over, which family members will stay on as employees or move into management.
Business succession planning is definitely NOT something you want to keep secret from your loved ones.
Meet regularly with the family all during the planning process. Explain to them what your vision of the future looks like and what must occur in order for you to achieve this. By doing these things, you will go a long way toward avoiding the kinds of family feuds that can derail the sale of a business.
4. Poor organization and record keeping
The day before you decide to sell is not the time to discover that your records are a mess and that key documents are missing. If you intend to sell, or even if you want to keep the business in the family, organized records are essential.
Buyers will want to see your financial records for at least the past five years, perhaps even for the last ten years. They will want to know where to locate your marketing pieces, customer lists, employee records, leases, and everything else pertaining to the business that should be filed and easy to locate.
To ensure less stress when selling, start organizing your records right now.
Note: To get a free exit planning checklist detailing exactly what kinds of documents buyers will want to see when valuating your business visit the website listed at the end of this article.
5. Forgetting to give the business “curb appeal. ”
A temptation for all business owners who realize they want to sell the business and retire is to stop putting any more money into the company that is necessary to keep the daily operations going.
They might stop repairing or replacing tools and machinery, not wash their fleet vehicles as much, or allow their building and landscaping to become shabby.
Owners might postpone doing things such as buying new uniforms and badges for employees or upgrading safety equipment and signage.
Just as a home that has had some basic TLC before going on the market usually sells for more money, it’s the same for a business that wants to attract more qualified buyers.
Buyers of businesses are in short supply and they know it. They can afford to be very picky when it comes to which businesses they decide to purchase.
A savvy plumbing company owner who wants to sell more quickly and for more money will invest a bit of time and money in ensuring that their company looks appealing and professional.
6. Not sustaining your succession planning focus
Many times plumbing company owners who, coming to terms with their need to plan their exits, throw themselves into succession planning with a vengeance.
They hold formal planning review meetings, talk to their families and seek out the counsel of their trusted advisors and mentors,
Then, for whatever reason, the succession planning process just dies on the vine. It goes nowhere, frustrating the owner as well as all his key employees and advisors.
Why does this happen? I believe it is because business owners tend to see succession planning as a “one of” event, rather than a vital part of the company’s business planning cycle.
Exit strategies risk gathering dust unless they are integrated into the overall plans of any business long before the time comes to leave
7. Failure to integrate your plan into your company culture
It’s absolutely true: Long-term business objectives can’t be reached without an effective succession plan. That plan has to be as integrated into your company culture as your mission statement or guarantees.
Having an exit plan in place will allow you to retain your best and brightest employees by allowing them to know that when ready to sell, they will still have a future with the company.
A company built around the idea that there will be an orderly succession that keeps the business intact and thriving is a company whose managers and key employees are not inclined to abandon.
8. Not understanding that selling takes time
In the same way you take time to plan before performing a complex plumbing project, you must allow an adequate amount of preparation when you get ready to sell your company. In fact, your success is directly related to how much quality time you put into the process.
You need to sit down and write down what your idea of a successful sale looks like. How do you want the sales process to play out? Walk through everything thing has to happen to make this a reality.
You need to be able to articulate what success in exiting your business looks like to you and share this vision with your key players, employees, and family members.
Yes, this will take a lot of time and thought. But it is definitely NOT something you want to rush through just to “get it over with. ” After all, if you are like most people, you are only going to get one chance to sell your business and retire successfully. Take the time to do it the right way and avoid any mistakes that could wind up significantly impacting your lifestyle in retirement.
9. Not staying on top of the plan
Exiting your plumbing business, in many ways, is a lot more work than when you first started it. There are many moving parts and complex tasks that must be executed successfully in order to avoid failure.
You need to be sure that all of your employees and family members have bought into your vision and are performing their tasks as assigned.
You are going to need the support of all key players if you are going to break past the lousy 3% success rate for selling a business in the united states.
Check in often with those entrusted to help you exit, and hold each one accountable for completing their assigned tasks within a stated time frame.
Business takeovers are typical in the commercial world exactly where one company buys an additional business with regard to increasing their own competitive marketplace and success. Large companies show the very best interest within these takeovers because they are a lot affordable as well as deep-rooted in the market. There tend to be several factors to get a business buying which might include the next:
Competitive within its site – E-commerce may be the only among its kind that has the dominion within its world of industry and business.
Quality — The available business might have the greatest traits as well as quality along with manufacturing, submission and product sales.
Profitability – The company has a stable income as well as profit ratios without any shortfalls.
Revenue era – Big businesses manage business takeovers to enhance up their own revenue regardless of they incur much more expenses throughout the purchase without having yielding any kind of profits.
Kinds of business takeovers
The obtaining business may choose the kind of purchase made within the acquirable business depending on company’s standing, profile from the target organization, company’s business, profitability along with other such requirements.
The range of business takeovers tend to be:
Hostile takeover happens when the actual acquiring organization purchases the prospective company with no full consent from the management within the latter 1. The buying company reaches risk because significant information on the focus on company will stay concealed throughout the purchase. This kind of takeover happens throughout a public offering for example tenders or having a proxy battle.
Friendly takeover is created with the prospective company that gladly accepts the company offering following a successful bet. In this sort, the shareholders from the target organization may obtain shares or even cash in the acquiring organization. It happens in case where just about all members from the acquired business will follow oneness as well as sometimes this particular deal risk turning hostile when there is difference associated with opinion using the board people.
Reverse takeover may be the buying of the public company with a private 1 or the actual purchase of the large company with a smaller 1. The personal company at first buys shares in the publicly exchanged company. Then within the due program the shareholders from the private organization exchange their own shares using the public organization which assists the personal concern in order to upgrade and setup into the public exchanged company afterwards.
How to handle a company acquisition
A company offering when it comes to takeovers as well as sales might involve much more procedures put through regulations. Hence you have to consult a company attorney who provides the right guidance to handle a prosperous business takeover whether you buy or sell the company. It allows you to understand the company laws concerning the takeover and therefore makes you to definitely negotiate as well as make the very best deal for the business.
Probably the most essential required for starting a brand new business is actually finance. Because banks along with other conventional financing sources tend to be apprehensive regarding giving loans to begin up companies, it is definitely an important job for these business people to request appropriate funding sources. While there is a massive difference between small company start upward loans as well as loans with regard to established companies, it is very important to look for a suitable financing source based on the requirements from the business. Start upward loans tend to be more dependent upon loans for all their financial requirements than set up businesses, and must be financed for nearly everything required to setup the company. So before you begin a start up business, it is actually overly important to create a detailed research from the market to obtain the most suitable lending supply and mortgage deals for the business.
Let’s talk of some from the important options that come with small business launch loans:
These financial loans are mostly supplied by the Small company Administration (SBA), the industry United Says government company providing monetary support to smaller businesses and striving at accumulating the effectiveness of the nation’s economy through supporting the actual establishment of smaller businesses. SBA doesn’t provide these types of loans straight to borrowers, but via private-sector lenders which are guaranteed through the SBA.
Since launch business owners don’t have enough funds, these financial loans are mainly obtained from lower rates of interest.
SBA functions as your own guarantor, and can help you in obtaining business launch loans in the event you do not really possess qualities for home loan purposes.
Small business launch loans can be acquired very quick. You have them once you apply on their behalf. This is very helpful for start up business owners who’re mostly determined by loans for those their company requirements.
These loans could be secured actually by people having bad credit histories, such as arrears, personal bankruptcy, late or even missed obligations, insolvency, IVA and so on. Small loans provide a chance to the borrowers to enhance their credit rating.
These loans may also be used for re-financing an currently existing company.
Business launch loans could be available in a amount, which range from a couple of thousand to a lot more than $100, 000. It is best for borrowers to create a meticulous research available on the market and an in depth comparison between your conditions and terms offered through various lenders to obtain the most appropriate one for the business.
These loans are for sale to anyone getting plans to begin a start up business.
Starting a company involves numerous details. Here are a few of the key purposes a company start upward loan may be used:
Purchasing work space.
Buying essential machineries, furniture along with other office gear.
Purchasing required electronic equipment just like a computer, fax device, printer and so on.
Hiring personnel and spending money on their wages.