Category: Visitors
Business Selling Process (Simple)
Business Selling Process (Simple)
Simple Business selling guide will provide easy simple direction to business seller what to do on business selling process.
1. Determining the fair market value of the business
2. Set Preparing all books and records for prospective buyers
3. Putting the business on the market
4. Dealing with the potential buyer
5. Recieving an offer
6. Negociation – Price, Terms, and Condition
7. Accepting an offer
8. Provide all necessary books and records to the buyer
9. Work with the buyer to remove all contingencies of the contract
10. Signing the closing statement (1~3 days before the closing date at the escrow)
11. The night before the closing date
12. The closing date
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A Call to Action
Because of a recent boom in business, my company needed to update our office phone system. We had a very nice system in place already, but our business had tripled within a matter of months. Since we rely on phone orders for the vast majority of our sales, we needed to upgrade in order to handle the increase in call volume. We were lucky to have a great relationship with our telephone equipment provider, as within days we were able to have a new system ready to put in place. It’s not often that businesses find themselves in situations like this, but when they do come up, it’s important to know that the companies you have chosen to do business with are capable of meeting your needs in a timely manner.
Prior to this happening, we had a trunk study performed, after which we were told that we were losing business as a result of not having a new phone system in place. Anyone who has ever run a business knows that losing money because you are ill equipped to handle your customer’s needs is the worst way to lose money. Being able to make a phone call and knowing it would be taken care of quickly and efficiently was a great relief to me. I knew that with every passing day, thousands of dollars were being lost and that’s something I couldn’t afford to let happen. The whole situation made me think about the importance of knowing qualified vendors who can get you the products you need, when you need them.
I soon began looking into other areas where we were dependent upon other companies for goods and services to see if we were utilizing vendors who could facilitate the changes our growing business was experiencing. After a long, hard look, we decided to switch shipping companies and to switch to a new overnight call center operator. It’s not that our needs weren’t being met at the time, but that if things continued to grow, we would likely outpace our current vendor’s ability to provide service. Being proactive in your business relationships is just as important as being proactive about your business. After all, most companies depend on other companies to make their operations run smoothly. I encourage all business owners to seek out the service providers and vendors that can handle your needs both now and in the future. When your business grows, you’ll be happy you did.
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Awareness And Mastery – Two Essential Keys To A Successful Small Business
At the heart of it, mastery is practice. Mastery is staying on the path.”
~ George Leonard
US pioneer in human potential
””’We often hear managers complaining that their employees aren’t productive, donít listen and just canít consistently get the job done. As a youth sports coach, I hear coaches with similar complaintsóthe kids donít listen, donít know where to go and donít try very hard. I canít relate. The boys on my team are usually focused, do what I ask of them, and work hard. As a business owner, my employees are focused, do what I ask of them and work hard. What am I doing that is different from the rest? And what can this teach you about running a successful small business?’
As a coach, I make my boys’ jobs very simple. I ask only two things of them. I ask them to master one shot and I ask them to be aware of what is going on around them. Of course we work on defensive and offensive strategy, but both of those revolve around the two keys that I gave them for successóawareness and mastery.
I teach awareness by constantly asking them to be aware of where the ball is and at the same time to be aware of their teammates are and where their opponents are. I teach them how to see the ball and their opponent when he doesn’t have the ball. Sounds simple, but for ten year olds this is work.
I teach mastery by assigning homework to each boy. The second week of practice, they have to show me a spot on the court from which they can make a shot every time. I don’t care if it is from just two feet under the basket. I want them to know they can make it every single time. As the season progresses, they may gradually move their spot further and further out, but I still ask that they be able to make their shot every time unguarded in practice.
These two simple concepts have a tremendous effect on the boys during their games. They have incredible confidence in their ability to make shots because they ìknowî that they will always make it. I don’t need to yell at them like other coaches about where they should be on the court because they have developed awareness of what they are doing and seeing. Now letís see how you can use this in your successful small business.’
As a business owner, I put these two key principles to work in training my employees. From the first day on the job, I work with them to be aware of what tasks are needed, what I expect of them, how I want customers treated, etc. And I ask them to master tasks and customer scripts. Once they are mastered, I open it up for them to adlib just like with my players. When correction is needed, it is usually in one of these two areas. They are either unaware of what is needed or they haven’t mastered the task at hand.
Not only does following these two concepts make it easy for me to get results with my players and employees, it also brings incredible results. My first team lost only one game all season and my employees rarely lose a sale. My businesses and products win awards earned by my employees. And, as a bonus, everyone enjoys themselves with this simple structure. I knew I was doing it right when the father of one of my boys told me that his boy enjoyed practice so much that he chose to come to practice instead of going to see our professional basketball team play one night. And I know it works with my employees because they show up on time happy, focused and ready to work. Remember, awareness and mastery are two essential keys to a successful small business.
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Best Small Business Idea — Get Focused And Get Going
I used to give a talk titled, ’10 Ways to Overcome Overwhelm in Business and In Life’. It was an excellent resource for getting into action and taking charge of your business. If youíd like a copy, just email me and Iíll send it to you. After Iíd given this talk for awhile, I realized that getting out of overwhelm was even simpler. You donít need 10 ideas. Thatís overwhelming in itself. You just need one essential key. If you can master this one key, you can pretty much get whatever you want out of your business and your life. Here it is. Donít blink or youíll miss it. Focus.
Thatís right, focus. When you are entirely focused on what you are doing in the moment, you donít have any attention left for being in overwhelm. Focus and overwhelm are opposites. Think about it. You are overwhelmed because you are thinking about all the things youíve got to get done today, tomorrow, and the day after. You arenít solidly focused in the present moment doing whatís in front of you. But when you are stuck in overwhelm, itís really hard to get focused. So what can you do?
Itís actually very simple. Get back to basics. Go back to your core values, your mission statement, your vision. Stop right now and think about the vision you had for your business when you first started it. What did you want to accomplish? Why did you want to do it? Were you looking for freedom? Did you have a better way of helping people? Completely let yourself be absorbed in the dream you had. Feel how it was when you started. Now you are focused. Take this vision and write it down again. Go into detail about what you really want to do with your business.
Now from this focused state, get into action. It should be much more clear to you now what the most important tasks are. Focus your energy on those and get going. Any time you start feeling overwhelmed, stop and go back to your dream, your vision. Ask yourself why you are doing what you are doing. Really feel it and then start again. I guarantee you this will get you focused and get you out of overwhelm. Now you can get what you really wanted out of your business.
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Common Mistakes Small Businesses Make and How to Avoid Them
Unfortunately very few start up businesses make it beyond their 3rd year. Failure is usually down to a number of clearly identifiable mistakes, which if small business owners are aware of, can increase their chances of survival.
Here are the top 10 common mistakes which small businesses tend to make.
<b>Lack of Market Research</b>
When a budding entrepreneur comes up with an idea for a new business he assumes that because he would buy such a product or service then everyone else will. This may be the case for day-to-day necessities but for other items this is usually not so.
It’s important that when you start up you carefully research the market to check that:
– There is demand at a level which would lead to a sustainable business
– People are prepared to pay the price required for you to make a decent profit
Undertaking market research may appear time consuming but the effort will pay off.
<b>Poor Record Keeping</b>
Some business people are not born administrators; they feel more comfortable getting out there and ëdoing the business’. Paperwork is too easy to ignore but can never be put off indefinitely.
Sales, purchases and other expenditure must be carefully documented, so you know whether you are making a profit or not. Invoices must be issued on time and chased up promptly if there is a delay in payment. It’s all very well having the sales but poor record keeping can hold you back.
Having your paperwork in order will also save you time when it comes to your accountant doing your year-end books!
<b>Insufficient Capital</b>
When starting off it’s easy to decide what capital is required for fixtures and fittings, machinery and stock. What many new business owners forget about is the cash needed to fund day-to-day requirements, i.e. cash to pay expenses before your customers pay you. This is known as your working capital requirement.
Small businesses can fail because they have insufficient cash to start off to meet these immediate expenses. If you wish to survive make sure you set aside enough cash to meet all your needs for the first few months.
<b>Ineffective Marketing Or None At All</b>
You cannot afford to treat the cost of marketing as an unnecessary expense. A business with no marketing is like waving in the dark ñ you know you are doing it but no one else does!
There are many ways to promote your business on a small budget; it’s just a case of being inventive and creative. What ever you do, don’t assume that people will quickly know you are in business ñ they won’t, unless you tell them.
<b>Ingoring Changes In The Market Place</b>
As a small business owner it’s very easy to get immersed in your business and not see what is happening around you in the market place. Always keep your eyes and ears open to what the competition is doing and what your customers want. Don’t get left behind.
<b>Owner’s Attitude</b>
Attitude is everything in business. Don’t forget that the real boss in your business is the customer. Running a business may make you feel important but don’t let this develop into an ëI am better than you’ attitude. Do this and you will quickly chase your customers away.
<b>Spending On The Wrong Things</b>
Being in business can be exciting, especially as the cash starts to roll in! However, don’t be tempted to spend it on a new car, a house or just a good time. If you are to own a successful business then you have to keep some cash back to fund future growth. A business cannot grow without cash, so commit to spending business money on the business.
<b>Dependent On A Small Number Of Customers</b>
Don’t fall into the trap of setting up a business just because one person says they will buy from you every week or month. Setting up and running a business, which is dependent on one customer, is not a recipe for success. What happens if, one month after you have spent all your cash to set up your business, that customer says he has changed his mind and has decided to buy elsewhere? Unless you can find other customers very quickly you are faced with closure.
Before embarking on a new venture make sure you have a sufficient number of customers such that if a few go elsewhere you can still continue trading.
<b>Growing Too Quickly</b>
Surprisingly, growing too quickly can be a problem. You have to be disciplined enough to only take on work you can handle. If you are tempted to accept too much you could end up disappointing not only the new client but also your existing ones.
Also, don’t under-estimate the impact rapid growth can have your administrative burden. As I mentioned earlier, getting behind on the paperwork can have an equally damaging effect on your business.
<b>Trying To Do Everything</b>
Finally, the problem most small business owners have is the fact that everything falls on their plate. Inevitably this is how it’s likely to be in the beginning, when the limited budget means that staff are a luxury, but as the business grows be aware that you cannot continue to do all tasks. There will come a point when you become inefficient and not have enough time to complete everything in sufficient detail. Taking on an extra pair of hands will increase your costs but you will be surprised at how much time will be saved, allowing you to do what you do best ñ getting the business in.
Take a look at each of the mistakes and make sure that you don’t fall into these traps.
More info’s and free registrations (restricted to pros), please join our live seminar
15 Easy Steps to Starting Your Small Business
Yeah, sure it’s easy, and of course, that title is a little tongue in cheek. It takes a lot of hard work to get a business off the ground. But, it’s worth every hour I’ve spent getting to where I am now.
When I decided to start my communication and image consulting business, I tried hard to find a good startup guide. I couldn’t find any that had all the steps. So, I decided to write one. So far, it’s mostly just the bare-bones outline (which is long enough as it is) you see in this article.
I’ll be adding to it every week or two, and writing more detailed articles on all the steps, so try to stop by and check it out from time to time. Let me know how I’m doing. Shoot off an email to me if I’ve forgotten something or you have questions.
Before you spend so much as a dollar, talk to a few experts. Go to the library or get on the internet and research, research, research. Take a little time to make sure entrepreneurship is right for you.
Make a pro and con list of business ownership, and evaluate yourself honestly. How many characteristics do you have in common with successful entrepreneurs? Is your financial position strong enough? Do you have the necessary technical and management skills?
Youíre not going to be the perfect entrepreneur. Nobody is. But in order to make yourself the best entrepreneur you can be, consider ways to compensate for any weaknesses you might have.
Iím from Canada, so the government agencies Iíve mentioned in this guide are Canadian, but really, it can be used by anyone. All you have to do, if youíre from somewhere other than Canada, is find out where you need to find some of the things Iíll talk about. Some of the steps might be slightly different, and you may not have to worry about things like GST for example, but Iím sure youíll find this discussion helpful all the same.
These steps to starting a business are in reasonably good order, but you might find yourself varying from it under your particular circumstances. That really isnít a big deal, as long as you get most of it done. There are some steps youíll be able to skip as well, but please donít skip any of the ìbig onesî, which Iím sure youíll pretty much figure out from taking a look at the list.
So, assuming youíve done your evaluation and you still want to start a business, take a deep breath, and let’s get started.
1. Conduct a feasibility study of your business. Describe your typical customer, your product and your competitors. Who will your suppliers be? What will you charge for your product? How will you market your product? These are just a few of the questions you need to answer.
2. Write a complete business plan for your company, using the information you gathered from your feasibility study. This vitally important, often overlooked step needs to include a description of your company, its goals, competitors, market, financial information, and of course, how you intend to meet your goals.
3. Get your financing in place. There are many ways to finance your business, from your own savings to personal credit cards to bank loans. If you need credit, know your business plan from front to back and maybe even sideways.
4. Decide what kind of structure your company will have. From a legal standpoint, there are three basic choices, sole proprietorship, partnership and incorporation, each with advantages and disadvantages.
5. Choose a name for your company and check on name availability. Naming your company is highly individual, but itís the first thing associated with your business, so choose your name carefully. Youíll need to do a NUANS (Newly Upgraded Automated Name Search) report, which checks your name choices for uniqueness against a database of other business names. A reserved name is valid for 90 days.
6. Decide whether you want to register federally or provincially and register your company. If you register federally, youíll also have to register provincially, which almost doubles the cost. You donít have to have a lawyer process them for you, but it might be a good idea to at least consult with one. You can get the forms from your local government office, have them faxed to you or download them. You can fax or email printed copies, or complete the forms online
7. Contact Canada Revenue Agency Business Window for your business number, and to register for GST/HST, payroll, corporate income tax and import/export (if applicable). You can also contact the CRA if you need general information about business expenses. Chances are youíll have to collect GST, but you may want to register for a GST number even if you donít have to collect it because of input tax credits.
8. Decide whether you need to collect PST. If you do, you need to submit ìRegistration as a Vendorî documents with your province.
9. Determine whether there are special permits or licenses in your municipality. Itís highly unlikely that your municipality does not have special permits or licenses.
10. Develop the marketing materials you decided on in your business plan. They should include at least a company identity package, press kit and website. Your identity package is your logo, business card and letterhead. A press kit can include letters of introduction, biography sheets, press releases, articles and a brochure. In todayís electronic age, printed materials arenít enough. You need a website that looks professional, matches your printed material and has great copy. Youíll also want to make sure itís optimized for search engines.
11. Set up your business bank account and record-keeping system. Your banker will need to see your incorporation documents, and you should probably set up more than one account so you can keep track of your finances better. Record-keeping is required, and can be done manually or with a computer program.
12. Purchase insurance. There are many different types of insurance, but most probably your company will need at least one. For example, if youíre going to have employees, you need to contact the Workerís Compensation Board. Depending on your type of business, you might want to contact them even if you donít have employees to insure yourself.
13. Contact potential creditors and set up credit terms. You should have researched suppliers when you were doing your feasibility study. Now is the time to contact them.
14. Decide where your business will be located. Lease your businessí space. Alternatively, you could choose to start your business from home if itís feasible. There are advantages and disadvantages to starting your business from home. You have tax write-offs for example, but sometimes your image suffers.
15. Purchase supplies and office equipment. Youíll need too many things to list here, and of course, each business has different needs. You might need a fax machine and printer. Youíll probably need a computer. Youíll definitely need paper, pens, pencils and a calculator.
Congratulations! Go out, buy yourself a bottle of champagne and celebrate. You’re about to embark on a most exciting journey. And may I be the first to wish you good luck and prosperous times in your business venture.
As promised, hereís my email address so you can ask questions, make comments or add steps to my list. Or, if you want, you could just drop me a line to let me know how your small business is doing. Iíd really like to know.
More info’s and free registrations (restricted to pros), please join our live seminar
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