Business

Business Tips & Info

Business Tips

The wonderful thing about business is that almost everyone can be a business owner.

You don't need any special education, talent or some other special skills. You just have to know what you want, be persistent and passionate about it in order to make it work. When you are fully committed, you will do the training, the practicing and everything else needed to make your business work. Make sure you know all this before you jump into the business pool so you don't drown unprepared.

Entrepreneurs should also know that they don't need to know everything, they should learn to use other experts and people with experiences.

Don't try to do it all, delegate and ask for help.

Here are some basic business tips:
1. "Experience is the best teacher". It is important to keep this saying in mind, especially when starting a new business. You'll learn something valuable from every single experience you have as you begin to grow your business. Try to learn from other people's experience too. Remember, wherever you are in the business, you can be sure someone, somewhere has had a similar experience. The more experiences you have, the better business person you'll become.
2. Treat others as you would want to be treated: with respect, helpfulness and courtesy. Win people's trust and they will continue doing business with you.
3. Many new business owners especially at the early development stages, tend to under-utilize professionals like; accountant, lawyer, banker, management consultant etc. Many new entrepreneurs are concerned about the cost of the service rather than the potential benefits. The cost of professional help is a legitimate business expense and a beneficial investment in future business.
4. It's okay to feel afraid. Talk about your fears and discuss them, you will conquer them and become stronger, both personally and professionally.
5. Many businesses begin as sole proprietorships because of the low start-up costs and the ease of formation. As a business grows, however incorporation is sometimes a better form of business ownership. Before you decide on the legal form of ownership that best suits your business. it's wise to consult a lawyer for a more detailed look at the costs associated with each and for advice on how best to go about the process. You should consider the advantages and disadvantages of each form of business organization.
6. One of the most critical elements in making your new business succeed is good customer service. Prompt delivery is absolutely essential to show people you're reliable and they can count on you.
7. Failure to arrange an adequate cash flow is the most common problem. The initial start-up costs of most businesses are very high and the return on investment small during the first few years. If there is not enough cash to pay bills falling due, suppliers will be reluctant to expend further credit and the business will be forced to close its doors.
8. It is important to build a new business around something you enjoy, or already have experience with. You'll need to live and breathe the business during the first year or so in order to get it of the ground, so you'd better enjoy the work and know something about it.
9. Poor bookkeeping practices will result in inaccurate financial records and a false reading of the company's performance. Since many key management decisions are based on financial records the direction taken may be totally inappropriate and ultimately may cause firm to declare bankruptcy.
10. Don't try to do every aspect of the business at once because it's too much to handle. Business is a gradual process and it needs to be accomplished in little steps.

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Cash Flow Forecast

It is very important to calculate your cash flow. Take time to anticipate when cash will be short, because sales and revenues of business are rarely constant. Some businesses are seasonal, others extend credit to customers etc. Cash flow planning help you to have enough cash to cover all your... Learn more...



Establish credit policy
Tighten credit terms
Check out potential customers
Before issuing credit
Manage your receivables
Don't ignore collections - CALL

Did You Know?

Ratio analysis may help you put things in proper business perspective. Financial ratios quantify many aspects of a business and are categorized according to the financial aspect of the business which the ratio measures. They are an integral part of the financial statement analysis.

Quick Ratio or Acid Test Ratio, measures how quickly your company can raise cash by selling off its most liquid assets to meet its liabilities. To calculate, subtract inventories from current assets (cash, accounts receivable or any other quick assets) and divide by current liabilities.

Age of Receivables Ratio shows the efficiency of business's collection capatibilities. For example if firm's payment terms are 30 days, and ratio is 55, that long period may show a business's credit policies and collection procedures need attention. However, ratio must be compared with previous years and... Find out more...