Most people think the only way to establish credit is to get and use credit cards. But these convenience cards can be deadly if not managed. For businesses, a line of credit may be a better consideration. The bank will stop you when you reach your limit. Credit card companies just smile and raise your spending limit.
For new small businesses, consider the alternatives to establishing credit without using a credit card. While this is a slower process, there are real advantages.
You cannot spend more than you make.
You have to budget your money.
You will have a better relationship with your bank.
You will learn to adjust your markup to reflect the costs, and cover your debt.
Your business can benefit from this. As it grows, you will have a solid, clean credit history when it matters. You will have learned the difference between want and need. Yes, even business owners get caught up in this cycle.
For example, you may not need a laptop on every desk, and a slick server. You could get by with cheaper desktops, and a tower with server software and enough memory. You could learn that not all employees need Internet access daily to do their jobs. Email access is sufficient.
This is a term known as 'bootstrapping'. Once a popular buzzword, and a term of honor, in some business circles, it is unpopular. We concentrate so much on employee satisfaction, we forget that a simple 'thank you', or 'good job' does more for a person than Internet and laptops.
Say "Thank You" more to your employees, and spend less.
Management and accounting for small businesses. Find real solutions to manage an on-line business, address the challenges of running a small business, save money and turn a profit. There is an easier way to run your business, do what you love, and still keep track of expenses.
Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
How to Hire the Best Person
Businesses have the pick of the market right now when it comes to hiring an employee. The unemployment rate is high, and submissions for job applications provide a mountain of material to go through.
How do you decide whom to hire, when the qualifications are so similar? Your eyes begin to blur, and the task of interviewing is daunting.
These are some ideas to narrow the field.
Look at the job history of the applicant. Job seekers who have a history of frequent job change are a poor risk. Most applicants will submit the past 10 years. How long have they been at any one job? Everyone can have a “bad luck” job, but there should be one or two jobs that lasted more than 5 years.
Prepare of list of the 10 most desired qualifications for the open position. Use a highlighter and find those resumes that contain all 10. Your list may be larger, but look for those applicants will all the traits.
Read the cover letter again of the applicants chosen. Is it well written? Does it highlight and add value to the position you are trying to fill? If not, put those applicants to the side.
Again, review the resume for the experience of the applicant. How deep is the experience? Can the person “hit the job running”, or will they need to grow with the position? Since you are a busy professional, and your organization needs immediate direction, put aside those resumes with a less proven history of experience.
Review the salary history, if you have requested this. Compare these to the budget salary you have for the position. Ask yourself if you are willing to pay more to have a seasoned professional? Based on the value the candidate offers, will this offset the cost to your business?
Ignore enclosed letters of recommendations. These are easily obtained. Always perform your own verbal verification or email verification of the potential applicants experience.
Prepare a list of questions that directly relate to the position. Conduct a screening interview by phone. Use the answers to eliminate more of the applicants.
For example:
In analyzing the Income Statement, what issues have you come across that affected the organization.
Suggested answer: I found that the revenues for the month did not match what I expected based on the inventory levels. I investigated, and found that several sales had not been recorded.
Instead of: Well, I have never done an actual Income Statement analysis, but I am will to learn.
You get the picture. Structure your questions directly for the qualifications of the job. Personality assessments can be done at the face interview.
As a business professional, I know that it costs money to hire and train a new person. It takes time to build trust. Look for applicants the bring value and experience to the position. A seasoned person brings more than technical knowledge to the workplace. They bring wisdom. There are decisions and actions in daily business that more experienced workers have already plowed through. They have already learned to overcome business obstacles. They have dealt with all levels of employees, and all types of personalities. They actually are more productive in the sense that they have already been around the learning curve. They have a basis for their decisions, and they have already experienced the outcome.
How do you decide whom to hire, when the qualifications are so similar? Your eyes begin to blur, and the task of interviewing is daunting.
These are some ideas to narrow the field.
Look at the job history of the applicant. Job seekers who have a history of frequent job change are a poor risk. Most applicants will submit the past 10 years. How long have they been at any one job? Everyone can have a “bad luck” job, but there should be one or two jobs that lasted more than 5 years.
Prepare of list of the 10 most desired qualifications for the open position. Use a highlighter and find those resumes that contain all 10. Your list may be larger, but look for those applicants will all the traits.
Read the cover letter again of the applicants chosen. Is it well written? Does it highlight and add value to the position you are trying to fill? If not, put those applicants to the side.
Again, review the resume for the experience of the applicant. How deep is the experience? Can the person “hit the job running”, or will they need to grow with the position? Since you are a busy professional, and your organization needs immediate direction, put aside those resumes with a less proven history of experience.
Review the salary history, if you have requested this. Compare these to the budget salary you have for the position. Ask yourself if you are willing to pay more to have a seasoned professional? Based on the value the candidate offers, will this offset the cost to your business?
Ignore enclosed letters of recommendations. These are easily obtained. Always perform your own verbal verification or email verification of the potential applicants experience.
Prepare a list of questions that directly relate to the position. Conduct a screening interview by phone. Use the answers to eliminate more of the applicants.
For example:
In analyzing the Income Statement, what issues have you come across that affected the organization.
Suggested answer: I found that the revenues for the month did not match what I expected based on the inventory levels. I investigated, and found that several sales had not been recorded.
Instead of: Well, I have never done an actual Income Statement analysis, but I am will to learn.
You get the picture. Structure your questions directly for the qualifications of the job. Personality assessments can be done at the face interview.
As a business professional, I know that it costs money to hire and train a new person. It takes time to build trust. Look for applicants the bring value and experience to the position. A seasoned person brings more than technical knowledge to the workplace. They bring wisdom. There are decisions and actions in daily business that more experienced workers have already plowed through. They have already learned to overcome business obstacles. They have dealt with all levels of employees, and all types of personalities. They actually are more productive in the sense that they have already been around the learning curve. They have a basis for their decisions, and they have already experienced the outcome.
Getting Credit without Using Credit Cards
Are you a small business just starting out? Are you trying to rebuild you credit, or trying to establish credit? Credit Cards are convienent, and sometimes too easy. You can run up your credit limit with just a few purchases for your business, like a computer, phone system, or copier.
There are ways to establish a credit score while avoiding credit card traps. Using this method, you can qualify for a small business loan or an automobile loan, and know that you will be able to manage your finances and your debt without surpizes.
Read Pros and Cons of Establishing Credit without Using Credit Cards for an in-depth analysis of the pros and cons of an alternate way to establish credit.
There are ways to establish a credit score while avoiding credit card traps. Using this method, you can qualify for a small business loan or an automobile loan, and know that you will be able to manage your finances and your debt without surpizes.
Read Pros and Cons of Establishing Credit without Using Credit Cards for an in-depth analysis of the pros and cons of an alternate way to establish credit.
Increase Your Business with a Business Blog
Running a small business is like running a marathon. You need to make sure your customers have great service, your employees are happy and productive, and you’re generating new leads and contacts.
Have you thought about maintaining a business blog? Just creating a blog post, short or long, will keep your customers, and potential customers, up to date on the newest services and innovations offered by your business.
While there are many blog services out there, Google Blogger is free, and easy to use. 1&1 offers domain name registration for about $24.00 every 6 months, and comes with a website builder, and a blog.
As a business owner, you are always looking for ways to improve and increase your business. Blogs are a good way to let customers know you have the services they need
Have you thought about maintaining a business blog? Just creating a blog post, short or long, will keep your customers, and potential customers, up to date on the newest services and innovations offered by your business.
While there are many blog services out there, Google Blogger is free, and easy to use. 1&1 offers domain name registration for about $24.00 every 6 months, and comes with a website builder, and a blog.
As a business owner, you are always looking for ways to improve and increase your business. Blogs are a good way to let customers know you have the services they need
Insurance for Non Profit Business
Operating a Not for Profit business requires many of the same insurance requirements as a For Profit Business. While directors and managers may believe that a non profit business, set up for family assistance, education or development of the Arts is perceived as an organization designed to help the general public, and therefore immune from frivolous lawsuits and claims, this is not the truth.
In my article, Nonprofits: Types of Liability Insurance, I have outlined the important business liability insurance that all nonprofit organizations should carry.
In my article, Nonprofits: Types of Liability Insurance, I have outlined the important business liability insurance that all nonprofit organizations should carry.
Google Checkout-Big Help for Small Business
Do you want to set up an on-line store for your products, but don’t think you understand the web techniques. Google has introduced Google Checkout, a gadget you can add to your website or blog that will allow your followers and customers to purchase directly from your site.
Customers Shop, Begin the checkout process, Sign into Google Checkout, Buy, and Receive a Confirmation. Sellers receive Fraud Protection, Have the Potential to Increase Sales, and offer Google Convenience to their Customers.
There are minimal transaction fees, based upon sales volume.
If you are looking for ways to expand your business, Google Checkout can be an excellent assistant.
Customers Shop, Begin the checkout process, Sign into Google Checkout, Buy, and Receive a Confirmation. Sellers receive Fraud Protection, Have the Potential to Increase Sales, and offer Google Convenience to their Customers.
There are minimal transaction fees, based upon sales volume.
If you are looking for ways to expand your business, Google Checkout can be an excellent assistant.
Small Business Consultants
Last night, a group of friends got together to celebrate the fact that they are “survivors” of the current shrinking employment economy. With all the talk of anti-discrimination, we, the older but not unemployable of the nation, have found it very difficult to get interviews. And even more difficult to land the job.
Employers have downsized to cut costs in the current recession. If they do need replacements, they are looking at younger workers to fill the positions. Today’s employers, watching costs so closely, know that it is more expensive to employ experienced older workers.
Employers state “salary commensurate with experience”, but want to shy away from the higher salaries paid for the actual experience. And, not only do older workers have experience that is worth the higher salary, the payroll taxes on this salary are higher. Consider FICA 7.65% of 40,000 is $3,060, compared to 65,000, which is $4,972.
Health insurance premiums are much higher for employees over 50. The older employee is contributing more to the 401K plans, so, if the employer matches, this amount is higher.
What you have is an aging unemployed force of valuable collective experience. More older people, still bright and ready to work, are forming alliances with each other, and selling their services to small business. As small business consultants, the professional can provide excellent technical and business tools for a reasonable price.
Small businesses that hire the professionals benefit from the knowledge and experience once employed at larger firms. This enables small business to compete with confidence, and can enable them to outshine their larger competitors, who have chosen lower salaries over experience.
Employers have downsized to cut costs in the current recession. If they do need replacements, they are looking at younger workers to fill the positions. Today’s employers, watching costs so closely, know that it is more expensive to employ experienced older workers.
Employers state “salary commensurate with experience”, but want to shy away from the higher salaries paid for the actual experience. And, not only do older workers have experience that is worth the higher salary, the payroll taxes on this salary are higher. Consider FICA 7.65% of 40,000 is $3,060, compared to 65,000, which is $4,972.
Health insurance premiums are much higher for employees over 50. The older employee is contributing more to the 401K plans, so, if the employer matches, this amount is higher.
What you have is an aging unemployed force of valuable collective experience. More older people, still bright and ready to work, are forming alliances with each other, and selling their services to small business. As small business consultants, the professional can provide excellent technical and business tools for a reasonable price.
Small businesses that hire the professionals benefit from the knowledge and experience once employed at larger firms. This enables small business to compete with confidence, and can enable them to outshine their larger competitors, who have chosen lower salaries over experience.
Sales Tax made Easy-er
If your business sells product in several states, keeping up with the sales tax tables is always a challenge. And selling in a new state just adds to the burden. To make finding tax rates simpler, The FTA Links page presents a map of all 50 states.
When you click on the state in question, you will be taken directly to the states Department of Revenue. Here you can link directly to the sales tax rates and tables by county, if applicable.
Calculating sales tax for a home based business, such as Arts & Crafts, can be done using a spreadsheet, if you do not have a software package for inventories. My article How to Track Sales Tax in Your Arts & Crafts Business will give you step by step instructions on how to create a spreadsheet and set it up to calculate your sales tax.
When you click on the state in question, you will be taken directly to the states Department of Revenue. Here you can link directly to the sales tax rates and tables by county, if applicable.
Calculating sales tax for a home based business, such as Arts & Crafts, can be done using a spreadsheet, if you do not have a software package for inventories. My article How to Track Sales Tax in Your Arts & Crafts Business will give you step by step instructions on how to create a spreadsheet and set it up to calculate your sales tax.
Managing Difficult Customers
As a business owner, how do you deal with difficult customers? These customers may be the “hard to please”, they may be dissatisfied with the level of service or product, or they may simply be difficult people.
Each situation will need the same set of skills.
Listen.
If you are face to face, keep a neutral face and make eye contact. Nod, and look sympathetic. If you are on the phone, keep you voice calm. Actively listen to what the customer has to say. This will diffuse the customers anger, make the situation easier to reach a solving point, and give you time to think.
Act, don’t react.
After the customer has finished, let them know that you understand their frustration. Ask them what you can do to remedy the situation. Would they like the work re-done, or is there a simple repair? Would they like to return the product? Based on their answer, focus on a plan of action that will satisfy this customer, retain their business, and control your costs.
Offer an apology and don’t explain blame.
Apologizing to the customer for their inconvenience will let them know you understand their frustration. Remember, you may offer solutions, but not blame. If someone in the company is to blame, that is your problem as the owner. Always present a pleasant front to the customer, and let them know you are in control. Accessing blame to a process or an employee may give them the impression you don’t know what goes on in your business.
When you make a promise to deliver a solution, keep the promise.
Customers hear promises, they believe actions. As you are growing your business, one of your goals is to maintain the integrity of your company. Maybe the product was less than promised, but your company will not be.
Exceed your promise.
If you have agreed to replace the product, send the replacement and something extra. If you are replacing a printer, send an ink cartridge. If you are re-doing a service, offer an additional service for free.
Additional resources:
Managing Difficult Customers
Difficult Customers-Restaurant Managers
Small Business Success-Difficult Customers
Each situation will need the same set of skills.
Listen.
If you are face to face, keep a neutral face and make eye contact. Nod, and look sympathetic. If you are on the phone, keep you voice calm. Actively listen to what the customer has to say. This will diffuse the customers anger, make the situation easier to reach a solving point, and give you time to think.
Act, don’t react.
After the customer has finished, let them know that you understand their frustration. Ask them what you can do to remedy the situation. Would they like the work re-done, or is there a simple repair? Would they like to return the product? Based on their answer, focus on a plan of action that will satisfy this customer, retain their business, and control your costs.
Offer an apology and don’t explain blame.
Apologizing to the customer for their inconvenience will let them know you understand their frustration. Remember, you may offer solutions, but not blame. If someone in the company is to blame, that is your problem as the owner. Always present a pleasant front to the customer, and let them know you are in control. Accessing blame to a process or an employee may give them the impression you don’t know what goes on in your business.
When you make a promise to deliver a solution, keep the promise.
Customers hear promises, they believe actions. As you are growing your business, one of your goals is to maintain the integrity of your company. Maybe the product was less than promised, but your company will not be.
Exceed your promise.
If you have agreed to replace the product, send the replacement and something extra. If you are replacing a printer, send an ink cartridge. If you are re-doing a service, offer an additional service for free.
Additional resources:
Managing Difficult Customers
Difficult Customers-Restaurant Managers
Small Business Success-Difficult Customers
Tips for Managing a Small Business
Face it; we get really busy just trying to get the business off the ground. In addition to performing the work, supervising a construction crew, managing properties, blogging, writing and maintaining records, small and home business owners want the business to grow.
Take some time to stretch yourself and think outside the box.
Step back and imagine yourself as the customer of your business. What would be the main thing you would be looking for?
Networking means more than face-to-face, cold calls and reliance on referrals. Look for assistance on the Internet, to help you meet other business owners and solve your daily problems. We don’t need to re-invent the wheel.
Starting a business and facing common challenges
Get a lot of information in one spot, from tax tips to building a web site
Instead of plowing through oceans of links, business tax, sales tax and employee tax by state can be found on one site.
The Kiplinger Letter is has calculators, interesting articles, personal and business investment advice, and a special section for small business.
Home and Small businesses don’t need go it alone. They don’t have to pay big bucks for sound advice. There are networks of small businesses and useful advice for free.
Take some time to stretch yourself and think outside the box.
Step back and imagine yourself as the customer of your business. What would be the main thing you would be looking for?
Networking means more than face-to-face, cold calls and reliance on referrals. Look for assistance on the Internet, to help you meet other business owners and solve your daily problems. We don’t need to re-invent the wheel.
Starting a business and facing common challenges
Get a lot of information in one spot, from tax tips to building a web site
Instead of plowing through oceans of links, business tax, sales tax and employee tax by state can be found on one site.
The Kiplinger Letter is has calculators, interesting articles, personal and business investment advice, and a special section for small business.
Home and Small businesses don’t need go it alone. They don’t have to pay big bucks for sound advice. There are networks of small businesses and useful advice for free.
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