tag:blogger.com,1999:blog-14023972522258805142024-03-13T16:02:57.732+02:00Small Business TopicsSeries of some smart and chosen articles about small business and its resources, ideas, problems and solutions.Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.comBlogger71125tag:blogger.com,1999:blog-1402397252225880514.post-57628351435296590742009-11-11T02:17:00.004+02:002009-11-30T01:19:13.801+02:00Making Your Small Business Look Big<TABLE BORDER=0 WIDTH=400 height=100 >
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<TD ALIGN=left> As a small business, your budget is tight and your time is even tighter. But you still have to compete with larger organizations that have big budgets and even bigger staff. Let’s face it image is everything and if you can’t look big, prospective customers will go elsewhere.
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</p><p style="text-align: justify;">How can you make your small business look big without breaking the bank? Start with these five time and budget friendly ideas. In no time you’ll be competing head-to-head with the larger organizations in your market.</p> <p style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">1. Powerful Logo</span> – the logo of your company is often the first thing that someone sees. It doesn’t have to be expensive, but don’t take it for granted. It should communicate the values of your company – strong, dedicated, customer focused, etc – and be on all of your marketing materials</p> <p style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">2. Business Cards</span> - Don’t underestimate the power of the business card. It’s often the first thing someone sees when you meet them for the first time and they are you when you aren’t there. Make sure your business cards are high-quality, full-color and make an immediate impact. Distribute them freely to ensure that your name gets out there often. Give a stack of cards to colleagues who will pass them along to potential customers. </p> <p style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">3. Professional Materials</span>—Produce high-quality, professional materials for all of your branding and marketing initiatives. All of your collateral materials - business cards, letterhead, brochures, note cards, post cards, giveaways and even return address labels - should all match and make a strong impression. And don’t forget note cards for hand written thank you notes. Because prospects and customers like to review information from home, clear and easy-to-read brochures with product or service information are important. Skip photo-copied fliers on colored paper and shoot for full color glossy materials. Hand them out when you meet with clients or prospects at shows and conferences.</p> <p style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">4. Reinforce Your Bransd With Great Giveaway</span>—Stay in front of your customers every day. Look for cost-effective options that have staying power. If it makes sense for your business, items like calendar magnets with seasonal professional sports calendars are a great way to ensure your customers will place your business and contact information in a frequently viewed location like the refrigerator or file cabinet. Also consider holiday cards and holiday promotional giveaways with your name and messaging.</p> <p style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">5. High Impact, High Frequency Mailings</span>—Promotional mailings are one of the most cost-effective ways to keep you top of mind with your customers. Look for high-impact, full-color postcards that inform customers of your latest successes or upcoming sales. The frequency of the communication is almost as important as what you say. Mail your customer base twice a month for the best response. If you can segment your database, send smaller print runs of mailings to targeted audiences. You’d be surprised how appropriate mailings can impact the bottom line.</p> <p>No matter your budget, these simple tips will enable you to look professional and will keep your company’s name in front of your customers. </p><p>The Article Source: <a href="http://www.fastcompany.com/blog/trynka-shineman/marking-your-territory/making-your-small-business-look-big"><span style="font-weight: bold;">http://www.fastcompany.com</span></a>
</p>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com17tag:blogger.com,1999:blog-1402397252225880514.post-5264229765053208902009-07-30T20:57:00.001+03:002009-11-30T01:10:49.557+02:00Small Business Guerrilla Guide to Six Sigma<span style="text-decoration: underline;">The Source Is: http://www.scribd.com/doc/17436831/The-Small-Business-Guerrilla-Guide-to-Six-Sigma</span> <object codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,0,0" id="doc_379065003225353" name="doc_379065003225353" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="100%" align="middle" height="500"><param name="movie" value="http://d.scribd.com/ScribdViewer.swf?document_id=17436831&access_key=key-2goj3g940rl31mky7q70&page=1&version=1&viewMode="> <param name="quality" value="high"> <param name="play" value="true"> <param name="loop" value="true"> <param name="scale" value="showall"> <param name="wmode" value="opaque"> <param name="devicefont" value="false"> <param name="bgcolor" value="#ffffff"> <param name="menu" value="true"> <param name="allowFullScreen" value="true"> <param name="allowScriptAccess" value="always"> <param name="salign" value=""> <embed src="http://d.scribd.com/ScribdViewer.swf?document_id=17436831&access_key=key-2goj3g940rl31mky7q70&page=1&version=1&viewMode=" quality="high" pluginspage="http://www.macromedia.com/go/getflashplayer" play="true" loop="true" scale="showall" wmode="opaque" devicefont="false" bgcolor="#ffffff" name="doc_379065003225353_object" menu="true" allowfullscreen="true" allowscriptaccess="always" salign="" type="application/x-shockwave-flash" width="100%" align="middle" height="500"></embed> </object>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com1tag:blogger.com,1999:blog-1402397252225880514.post-3774445665406975102009-07-30T20:05:00.006+03:002009-11-30T01:10:49.558+02:00Why Six Sigma is an All-Or-None Proposition<p><em><span style="color: rgb(255, 0, 0);">A “toe in the water” approach won’t always tell you if six sigma will work.</span></em></p> <p style="text-align: justify;"><span style="font-size:180%;"><span style="font-size:medium;"><strong></strong></span></span>
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<td style="text-align: justify;"> <span style="font-size:180%;"><span style="font-weight: bold;">R</span></span>ecently some prospective clients asked me for a demonstration project to help them determine if six sigma would be a good idea at their company. I advised them against it. Such a demonstration only shows management’s lack of commitment to the success of six sigma.
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</p><p style="text-align: justify;">Although philosophical issues are important, there are more concrete problems with such “toe in the water” projects. In particular, major quality improvements can sometimes yield little or no bottom-line cost impact. The result of such projects is to convince management that <span style="color: rgb(255, 102, 0); font-weight: bold;">six sigma</span> adds cost without adding value. This belief is, of course, totally wrong. But it’s also a logical result of the demonstration approach itself.</p> <p style="text-align: justify;">For example, Sam was a <span style="color: rgb(255, 102, 0);font-size:100%;" ><span style="font-weight: bold;">six sigma</span></span> enthusiast. He’d studied its use at several major companies and was convinced that it would save his company, which we’ll call Acme, millions of dollars. The hype had also caught the attention of the senior leadership at Sam’s company. But before diving headlong into <span style="font-weight: bold; color: rgb(255, 102, 0);">six sigma</span>, they wanted Sam to conduct a demonstration project to see if the savings reported by the press could actually be obtained at Acme.</p> <p style="text-align: justify;">The company’s main product was a complex assembly, which Acme sold to a large aerospace customer. The assembly- manufacturing process was in statistical control and producing an average of 10 defects per assembly. With management’s support, Sam documented the cost of noncompliance to be about $1,000 per assembly. After months of diligent effort, Sam’s <span style="font-weight: bold; color: rgb(255, 102, 0);">six sigma </span>team was able to redesign the process. To their delight, they were able to reduce the number of defects per assembly by a full 50 percent, from 10 defects per assembly to five.</p> <p style="text-align: justify;">Management was also interested in the project. But the accounting department had carefully monitored the costs for the assemblies, and to everyone’s surprise, accounting found only a minuscule 0.7-percent cost savings.</p> <p style="text-align: justify;">Based on these results, leadership’s conclusion was simple: Quality doesn’t pay. The company won’t pursue<span style="color: rgb(255, 102, 0);"> </span><span style="color: rgb(255, 102, 0); font-weight: bold;">six sigma</span> any further.</p> <p style="text-align: justify;">Did accounting make a mistake? In a word, no. The problem arose because Sam measured quality as defects. The truth is that most costs are incurred because of <em>defectives</em> rather than because of <em>defects</em>. (Thanks to Mikel Harry of the <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> Academy for this insight.) A defective is a unit of product or service that contains one or more defects. Whether a unit contains one defect or several is irrelevant. Customers generally react to defective units by returning them for warranty repair, refunds or other options. Internally, defective units must be identified through costly inspection and then routed through equally costly rework processes, or else scrapped entirely. A unit with one defect costs nearly as much as one with several.</p> <p style="text-align: justify;">Mathematically, the Poisson distribution describes the relationship between defects and defectives. The equation for the Poisson distribution is</p> <p align="left"><img id="Picture149" src="http://www.qualitydigest.com/oct99/assets/images/Equation1.gif" alt="" vspace="0" width="77" align="top" border="0" height="39" hspace="0" /></p> <p style="text-align: justify;">In the equation, <em>x</em> represents the number of defects in the sample, and <em>P</em>(<em>x</em>) means the probability of finding <em>x</em> defects. For example, <em>P</em>(1) is the probability of finding one defect. The symbol μ is the average number of defects per unit of product or service. For Sam’s project, the average assembly had 10 defects before six sigma was applied, so μ = 10. The efforts of the <span style="font-weight: bold; color: rgb(255, 102, 0);">six sigma</span> team reduced the average number of defects per assembly to 5, for a 50 percent improvement in quality.</p> <p style="text-align: justify;">Let’s plug these numbers into the equation and see what happens. Because we are interested in the probability of an assembly being defect-free, we want to know <em>P</em>(0) for each of the two quality levels. Before <span style="font-weight: bold; color: rgb(255, 102, 0);">six sigma</span>, with μ = 10 we get</p> <p align="left"><img id="Picture150" src="http://www.qualitydigest.com/oct99/assets/images/Equation2.gif" alt="" vspace="0" width="77" align="top" border="0" height="22" hspace="0" /></p> <p style="text-align: justify;">In other words, there were virtually no defect-free circuit assemblies before applying six sigma methodologies. After applying <span style="color: rgb(255, 102, 0); font-weight: bold;">six sigma</span>, the probability of getting a defect-free assembly at Acme was</p> <p align="left"><img id="Picture151" src="http://www.qualitydigest.com/oct99/assets/images/Equation3.gif" alt="" vspace="0" width="132" align="top" border="0" height="22" hspace="0" /></p> <p style="text-align: justify;">Thus, a 50-percent improvement in the quality level as measured in <em>defects</em> produces only a 0.7-percent improvement in the number of defect-free circuit assemblies. A complete graph of this relationship is shown in Figure 1.</p> <div id="attachment_1840" class="wp-caption aligncenter" style="width: 423px;"><a href="http://www.sixsigmatraining.org/2009/07/PyzdekFigure1.gif"><img class="size-full wp-image-1840" title="Reducing Defects Has Little Cost Impact" src="http://www.sixsigmatraining.org/2009/07/PyzdekFigure1.gif" alt="" width="413" height="244" /></a><p class="wp-caption-text">Figure 1-Quality Improvement vs. Cost Savings</p></div> <p align="left"> </p><p style="text-align: justify;">The real cost-reduction benefits only start to appear when quality reaches very high levels. This relationship explains the commonly observed phenomenon of quality programs not paying off in the short term. Only when companies stick with it long enough to begin to approach <span style="color: rgb(255, 102, 0); font-weight: bold;">six sigma </span>quality levels do they get the desired results. Too often, “toe in the water” projects scare companies out of the pool before they even start to swim.</p><p style="text-align: justify;"><span style="font-weight: bold;">The Article Source Is:</span> <a style="font-weight: bold; font-style: italic;" href="http://www.sixsigmatraining.org/six-sigma-projects/why-six-sigma-is-an-all-or-none-proposition.html">http://www.sixsigmatraining.org</a>
</p> <div style="display: none;">VN:F [1.5.5_825]</div>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com4tag:blogger.com,1999:blog-1402397252225880514.post-29700501542503351652009-06-09T16:49:00.007+03:002009-11-30T01:10:49.559+02:00How To Implement a six sigma program<table width="400" border="0" height="100">
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<td style="text-align: justify;"> The biggest misconception small-business owners have about <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> may be to assume the process-improvement program is useful only for large manufacturers.Nothing could be further from the truth.
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<div style="text-align: justify;">“<span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> is a collection of tools to improve processes and is applicable to any kind of business,” says Bob Olson, a Six Sigma instructor at Central Piedmont Community College.
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<div style="text-align: justify;">“<span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> can benefit service and production companies of all sizes who have identified change as a critical business need,” says Charlotte business coach Cathy Critz, owner of Solutions FYS Inc.
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<div style="text-align: justify;">She adds: “A good <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> candidate company is typically customer-driven with defined processes, is comfortable with data and fact-driven management, is open to exploring options and is tolerant of failure. Every option is not successful.
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<div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> systematically guides companies to define, measure, analyze, improve and control improvement projects and processes. Companies that use it report lower costs, less waste, improved process capability and significantly improved customer satisfaction.
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<div style="text-align: justify;">Once you decide <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> can benefit your company, the next step is to decide on the infrastructure you will use to implement it. Will you hire an outside consultant to advise you? Will you hire a black-belt Six Sigma expert (the highest level certification possible) to come to your site and lead the effort?
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<div style="text-align: justify;">You may choose to seek training for individual staff members to be certified in <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> techniques. Then you need to decide how many employees need training and at what level.
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<div style="text-align: justify;">Programs range from a three-hour executive workshop to familiarize management with the program to 60 hours of classroom and online instruction that also includes direct project experience.
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<div style="text-align: justify;">“Don’t over-train your people — keep focused on your goals,” advises Gary Klipp, who developed training software for <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> when he was at The Quality Group. He is now retired from the Charlotte firm.
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<div style="text-align: justify;">Critz says many companies choose to bring in a black-belt consultant to oversee the <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> process and to help train personnel who are seeking certification.
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<div style="text-align: justify;">If your company is very small, or if you have budget concerns, see if you can team with other small firms for joint training and consulting.
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<div style="text-align: justify;">There are other steps to take to ensure your company’s <span style="font-weight: bold; color: rgb(204, 0, 0);">Six Sigma</span> program is effective. Management support is vital, Olson says. “Without management commitment, you’ll only see pockets of improvement. You need to empower your change agents.”
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<div style="text-align: justify;">If you don’t, you’ll fail, Klipp says. “You need to free in-house leaders from other tasks and give them authority, as well as a title. If they don’t have authority, they will butt heads with other managers. Teams are usually cross-functional and cross departments, so people from several departments need to be involved.”
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<div style="text-align: justify;">Process improvement should be continual, and it needs to become part of the way you do business. But keep in mind that specific projects related to <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> need to have specific beginning and end dates. They may last two weeks to several months.
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<div style="text-align: justify;">“The <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> team develops solutions, which are then turned over to an implementation or operations team,” Klipp says.
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<div style="text-align: justify;">Never forget the big picture, he says. “Sustainability is the biggest tissue. If improvement is not maintained, you’ll come back three years later to the same problem.”
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It’s also important to determine the specific return on investment for each project.
“It can be frustrating if you don’t know your ROI,” Klipp says. “You need to accurately figure out what you expect cost savings to be and then correctly compute and track them.”
<span style="font-weight: bold; color: rgb(255, 102, 0);">TOPTIPS</span>
•Recognize <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> can be effectively utilized by small firms in any industry.
•Be open to change, committed to an ongoing process and comfortable with <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma’s</span> measurement techniques and data analysis.
<div style="text-align: justify;">•Get the advice, support and staff training necessary, but don’t pay for more than you really need.
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•Give your staff the authority it needs to get the job done.
<span style="font-weight: bold; color: rgb(255, 102, 0); font-style: italic;">Bea Quirk</span> is a Charlotte-based free-lance writer who can be reached at <span style="font-weight: bold; color: rgb(255, 102, 0); font-style: italic;">beawrites@aol.com.</span>
The Article Source : <a href="http://www.bizjournals.com/charlotte/stories/2008/08/04/smallb4.html">http://www.bizjournals.com/charlotte/stories/2008/08/04/smallb4.html</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com1tag:blogger.com,1999:blog-1402397252225880514.post-33495893898652621502009-06-09T16:45:00.009+03:002009-11-30T01:10:49.559+02:00Advanced Six Sigma in Small Business<table width="400" border="0" height="100">
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<td style="text-align: justify;"> <span style="font-weight: bold;"><span style="color: rgb(255, 102, 0);">Six Sigma</span> </span>is a business management strategy that can be effectively used in many ways by small businesses to improve the overall quality of business operations to achieve faster growth.
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<div style="text-align: justify;">For people who may be less familiar, <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> may be simplistically defined as a form of business management strategy, or more appropriately, a type of business improvement methodology. This methodology was first successfully tried by Motorola during the penultimate decade of the previous century and today has become immensely popular and finds widespread application across many types of industries – not excluding small businesses. Six Sigma Methodology for Small Businesses
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> attempts to identify all areas of inefficiency and removes all possible causes of failures aimed at improving the overall quality of business operations. Apart from introducing a set of quality control methods, Sigma goes beyond to develop a special team of people within the organization, branded as Black Belts - who are trained to become experts in these methods.
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<div style="text-align: justify;">Several well-established organizations including Dupont, Federal Express, General Electric, Johnson and Johnson, Kodak, Sony and Toshiba have implemented <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> steps and achieved remarkable progress within a short span of time.
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<div style="text-align: justify;">Although there is a popular misconception that Six Sigma is meant only for major corporate houses, many management professionals opine that on the contrary, it is much easier for small businesses to introduce and successfully implement Six Sigma than larger corporations. Experts further suggest that the basic Six Sigma principles called <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> MAIC (measure, analyze, improve, and control) has no relevance to the size of the business or the number of employees working.
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<div style="text-align: justify;">Of course, it has to be conceded that there are a few limiting factors when implementing <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> in small business houses - like resource constraints and lack of capable manpower. But as a compensating advantage, small businesses enjoy flexible process flows, less procedural delays, no cumbersome decision-making chain and transparency of senior management.
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<div style="text-align: justify;">Small businesses generally can ill-afford to permanently have full-time Master Black Belts on payroll or hire people with the skills and expertise to step into the role of Black Belts without extensive training. As a start, small businesses can avail the services of a certified <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> consultant to act as the company’s Black Belt till the business expands to generate adequate revenue for training its own staff.
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<div style="text-align: justify;">An experienced Black Belt consultant coming from outside will straightaway provide a head-start by immediately implementing <span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span>. The heartening fact is the financial savings realized after introducing Six Sigma will amply pay for the entire cost of the Six Sigma training.
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<div style="text-align: justify;">After initially training some employees of the small business as Green Belts, Six Sigma projects can proceed unhindered with Green Belts executing the Six Sigma processes. Gradually these Green Belts may be trained into Black Belts by the external Black Belt consultant. This type of slow training approach will help many smaller companies to implement <span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma</span> at a pace it can more comfortably manage. Small business owners can also draw comfort from the fact that because of the size of a small business, the benefits of Six Sigma will be realized faster.
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<div style="text-align: justify;">As a concluding comment, it may be stated that the term "<span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span>" is a trademark registered and owned by Motorola and Motorola, proudly proclaims that Six Sigma has helped the company saving billions of dollars.
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</div>The Article Source : <a href="http://www.brighthub.com/office/project-management/articles/38134.aspx">http://www.brighthub.com/office/project-management/articles/38134.aspx</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com5tag:blogger.com,1999:blog-1402397252225880514.post-26997765298079797752009-06-09T16:40:00.036+03:002009-11-30T01:10:49.560+02:00Small Business can benefit from Six Sigma improvements faster than larger corporations<table width="450" border="0" height="80">
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<td style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);"> Did you know that smaller businesses</span> can benefit from Six Sigma improvements faster than larger corporations? Obtain a greater understanding of the advantages of the Six Sigma methodology for your small business requirements. We invite you to explore the possibilities in improving your productivity. See why Six Sigma can work for small businesses like yours.
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<div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">It is not surprising that</span> some people may perceive Six Sigma as being only for large corporations. Major corporations such as Allied Signal, Black & Decker, Dow Chemical, Dupont, Federal Express, General Electric, Johnson and Johnson, Kodak, Motorola, Sony, and Toshiba have all rolled out Six Sigma efforts and achieved outstanding results. Yet, it is incorrect to think that Six Sigma process improvement results can only be achieved by huge organizations. Small businesses can also succeed in implementing Six Sigma and reap the process improvement benefits that Six Sigma provides.
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<div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">Certainly, there are factors that can</span> be disadvantageous for implementing Six Sigma in a small business rather than a large business, such as lack of resources and expertise in change initiatives. However, there are also characteristics inherent in small businesses that can speed up the effective implementation of Six Sigma more than in large businesses, such as flexible process flows, a shorter decision-making chain, and higher visibility of senior management.
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<div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">Six Sigma can work in any size business</span> because the nature of Six Sigma is dependent upon characteristics inherent to any business, not on the size of a business. Six Sigma MAIC (measure, analyze, improve, and control) disciplines work no matter the size of the organization or even the size of the Six Sigma project.
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<div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">Small businesses do have constraints</span> that limit their ability to initiate a large scale Six Sigma implementation. However, there are ways to overcome these limitations. Small businesses don't have large reserves of excess cash to earmark for the massive training programs employed by the large corporations in implementing their Six Sigma programs. Small businesses generally can’t afford to have full-time Master Black Belts on staff and may not have the personnel with the skills and expertise to step into the role of Black Belts without extensive training. A certified Six Sigma consultant can act as your Black Belt for the initial projects until you have generated sufficient savings to be able to provide some of those savings for training your own people. Training happens at a slower scale for smaller companies but it still happens. Financially, savings realized from the first set of projects usually justifies the entire cost of the Six Sigma training.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Once some members of the organization</span> have been trained as Green Belts, Six Sigma projects proceed with Green Belts executing Six Sigma processes. Incrementally, Green Belts are developed into Black Belts and new Green Belts are trained. Using a more gradual training approach addresses many of the constraints of smaller companies and allows them to implement Six Sigma at a pace a small business can more easily manage.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">There is a benefit to implementing Six Sigma</span> in a smaller business. Because of the size of a small business, the financial results and cultural transformation that stem from Six Sigma will propagate more quickly through a smaller organization. Focusing the Six Sigma tools at virtually any properly scoped project will drive savings to your bottom line and achieve breakthrough change in your organization.
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<span style="font-weight: bold;">About The Writer:</span>
<div style="text-align: justify;">Peter Peterka is the Principal Six Sigma Consultant in practice areas of DMAIC and DFSS. Peter has over 15 years experience in including implementation of Six Sigma for small business with a variety of organizations. For additional information please contact Peter Peterka at Six Sigma us.
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<span style="font-weight: bold;">By Peter Peterka</span>
<span style="font-weight: bold;">The Article Source : </span><a style="font-weight: bold;" href="http://www.buzzle.com/editorials/8-12-2005-74754.asp">http://www.buzzle.com/editorials/8-12-2005-74754.asp</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-1890717445754240312009-06-03T15:29:00.029+03:002009-11-30T01:10:49.561+02:00The Complete Guide To Six Sigma For Small Business: What is Six Sigma?<div style="text-align: justify;">In This Article and all The Future Articles, We Will Walk About <span style="font-weight: bold;">Six Sigma</span> <span style="font-weight: bold;">Technique For Small Business</span>, We Will discover the power of This that based on Reduce Fails , and Maximize performance. Do you think its easy?, <span style="font-weight: bold;">Read The Full Articles And Find The Answer.</span>
</div><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> is defined as a type of business improvement methodology. Its main objective is to implement a vigorous process to systematically eliminate defects and inefficiency. It was originally developed by Motorola in the early 1980's and because of its proficiency has become extremely popular in many corporate and small business environments around the world.
<span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma's</span> main purpose or objective is to deliver high performance, value and reliability to the customer. It is regarded and used around the world as one of the major themes for TQM (Total Quality Management).
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</div><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Six Sigma</span> was developed by Bill Smith at Motorola in the early 1980's. It was originally designed for a way to measure defects and to improve overall quality. A major position of Six Sigma is that by using the methodology, it can lower defects to a level of 3.4 DPMO (defects per million opportunities). 3.4 DPMO can also be written as plus or minus six sigma when the centerline spans 12 sigma positions. (Six Sigma comes from a technical term used in statistics)
</div><p><span style="font-weight: bold; color: rgb(255, 102, 0);">While originally developed</span> for quality control, Six Sigma is used in many different ways, such as improving communications with customers, employees and shareholders and improving the total process of interaction, communication and product design.</p><blockquote></blockquote>
<span style="font-weight: bold; color: rgb(255, 102, 0);">It should be noted that</span> the term "Six Sigma" is a registered trademark, owned by Motorola. According to Motorola, this methodology has saved the company over 17 billion dollars from its inception to 2006.
<p></p> <div style="text-align: center; color: rgb(255, 102, 0);"><span style="font-size:130%;"><span style="font-weight: bold; font-style: italic;">The Six Sigma Methodology</span></span>
</div><p><span style="font-weight: bold; color: rgb(255, 102, 0);">The Six Sigma includes</span> two key methodologies; DMAIC and DMADV. DMAIC is used for an existing process. DMADV is used when creating a new product or process. Using DMADV for new projects can usually result in a more predictable process and ultimately higher quality product.</p><div style="text-align: center;"><span style="color: rgb(255, 102, 0); font-style: italic; font-weight: bold;font-size:130%;" >DMAIC</span>
</div><p><span style="font-weight: bold; color: rgb(255, 102, 0);">There are 5 important steps included in DMAIC. They are:</span>
</p><div style="text-align: justify;"> * <span style="font-weight: bold; color: rgb(255, 102, 0);">D - Define </span><span style="color: rgb(255, 102, 0);"><span style="color: rgb(0, 0, 0);">goals</span></span><span style="font-weight: bold; color: rgb(0, 0, 0);"> </span>to improve the overall process between your company strategy and your customer's demands (can also refer to your group and the groups or individuals that you support).<blockquote></blockquote>
* <span style="color: rgb(255, 102, 0); font-weight: bold;">M - Measure</span> your current processes. Collect relevant data on your current processes and then use this data as a baseline for future comparisons.<blockquote></blockquote>
* <span style="font-weight: bold; color: rgb(255, 102, 0);">A - Analyze</span> your relationship within the process. It is important to understand the relationship to determine factors that can ensure you keep your companies strategy in line with your customers demands.<blockquote></blockquote>
* <span style="font-weight: bold; color: rgb(255, 102, 0);">I - Improve</span> the process. It is important to constantly improve and optimize the process, using analysis and other techniques. One technique that is often used is Design of Experiments. (This is a technique that can help to test a hypothesis, using acceptable experimental design).<blockquote></blockquote>
* <span style="font-weight: bold; color: rgb(255, 102, 0);">C - Control</span>. It is important ensure that you can control and correct any variances avoiding possibly costly defects and loss of quality. Many times pilot runs are set up to study process capability and production transition. These pilot runs can help fine tune or add additional control mechanisms.
</div><p style="text-align: center;"><span style="color: rgb(255, 102, 0); font-style: italic; font-weight: bold;font-size:130%;" >DMADV</span>
</p><p><span style="color: rgb(255, 102, 0); font-weight: bold;">There are 5 important steps included in DMADV. They are:</span>
</p><div style="text-align: justify;"> * <span style="font-weight: bold; color: rgb(255, 102, 0);">D - Define</span> goals that are consistent between your business strategy and customer demands.<blockquote></blockquote>
* <span style="font-weight: bold; color: rgb(255, 102, 0);">M - Measure</span> CTOs (critical to qualities) CTOs consist of production process, capabilities producing a product, the capability of a product and any risk assessments.<blockquote></blockquote>
* <span style="font-weight: bold; color: rgb(255, 102, 0);">A - Analyze</span> and evaluate many different designs, choosing the best design for its overall qualities.<blockquote></blockquote>
* <span style="color: rgb(255, 102, 0); font-weight: bold;">D - Design</span> details. It is important not only to design a product, but optimize the design features. In order to fully optimize a design feature, you may be required to create multiple designs or simulations.<blockquote></blockquote>
* <span style="font-weight: bold; color: rgb(255, 102, 0);">V - Verify</span> the design. Important steps to verifying a design include setting up pilot runs and running a short production. This step also requires you to handover the design to process owners.
</div><div style="text-align: center;"><span style="color: rgb(255, 102, 0); font-weight: bold; font-style: italic;font-size:130%;" >Statistics</span>
</div><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Statistics is</span> at the core of the Six Sigma methodology. Six Sigma focuses on using data to problem solve and create systematic approaches to lowering deficiencies. Because data is at the core of the Six Sigma methodology, statistical analysis and tools are commonly used. It is important to note that while the Six Sigma methodology is data driven at its core, rudimentary statistical tools and analysis are usually proficient.
<div style="text-align: center; font-style: italic;"><span style="font-weight: bold; color: rgb(255, 102, 0);font-size:130%;" >Implementation of Roles in Six Sigma Methodology</span><span style="font-size:130%;">
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</div><div style="text-align: justify;"><span style="color: rgb(0, 0, 0);">There are many roles</span> that that are used in the Six Sigma Methodology. While most of the roles below are used in many organizations Six Sigma implementation, it should be noted that they are not universal. The roles include:<blockquote></blockquote></div><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">1- Executive Leadership</span> - Top level executives are responsible for vision and ultimately implementation of the Six Sigma Methodology. They also empower others to take initiative and ownership of the Six Sigma principles.<blockquote></blockquote></div><p><span style="font-weight: bold; color: rgb(255, 102, 0);">2- Champions </span>- Champions are usually upper management that is responsible for the implementation of Six Sigma throughout their organization.</p><blockquote></blockquote><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">3- Master Black Belts</span> - are usually hand picked by Champions to coach others within the organization on the Six Sigma methodologies. They allocate either all or most of their time to the Six Sigma methodologies. It should also be noted, that they usually have mentoring responsibilities to coach and train lower roles including Black Belts and Green Belts (see below)
</div><blockquote></blockquote><blockquote></blockquote><blockquote></blockquote><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">4- Experts </span>- while this role is not in every organization, it can play a huge role in major engineering or manufacturing sectors. They improve overall services, products, and processes for their end customers.</div><blockquote></blockquote><blockquote></blockquote><span style="font-weight: bold; color: rgb(255, 102, 0);">5- Black Belts</span> - Black Belts focus on six sigma execution. They are usually middle managers.
<p></p><p><span style="font-weight: bold; color: rgb(255, 102, 0);">6- Green Belts</span> - These roles are usually taken on by employees who help Black belts execute specific projects, as well as other job responsibilities.</p><blockquote></blockquote><blockquote></blockquote><p></p><div style="text-align: center; font-style: italic; font-weight: bold; color: rgb(255, 102, 0);"><span style="font-size:130%;">Downsides of the Six Sigma Methodology</span></div><blockquote></blockquote><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">For the vast majority</span> of organizations, the Six Sigma methodology has helped them be competitive and reduce costs; however it should be noted that there are some downsides that do exist.<blockquote></blockquote></div><blockquote></blockquote><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">In order to</span> implement the Six Sigma methodology in an organization, it is extremely important to have buy- in from employees on all levels. If associates, middle managers or high level executives are not enthusiastic about using the Six Sigma Methodology, it can ultimately lead to failure.<blockquote></blockquote></div><blockquote></blockquote><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Another downside</span> of using Six Sigma is that in some instances, Six Sigma's effectiveness has never been measured or is unable to be measured. Due to the inability of measurements, it is unclear if Six Sigma is actually helpful.</div><blockquote></blockquote>
<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Finally</span>, many organizations use the Six Sigma methodology as a way of protecting themselves from liability. For instance, if a company produces a product that is low in quality or can harm its user, the organization can use the defense that quality is at the forefront in order to be viewed positively. In this respect, it is unclear if an organization has implemented Six Sigma for its methodology or to cover its liability.</div><blockquote></blockquote>
<p></p><p>The Article Source: <a style="font-weight: bold; color: rgb(51, 51, 255);" href="http://www.tech-faq.com/six-sigma.shtml">http://www.tech-faq.com</a>
</p>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com2tag:blogger.com,1999:blog-1402397252225880514.post-41373614171449478902009-05-22T10:06:00.012+03:002009-11-30T01:00:56.890+02:00Would anyone even think about starting a Small business today<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJKVFDs3nz4XTLIAw93N56Bw4YxL5SDRekwbWJQwDfytcsuuIBW_RP5jt0Gxmyt7sfS1LrbrfBE2FNK9jhF9TcgGkMTswDNoZgeQudWL_e2VHPsC3IPEI1MLDTuavIneUY7nj33wkhc12k/s1600-h/image_8280585.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 200px; height: 134px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJKVFDs3nz4XTLIAw93N56Bw4YxL5SDRekwbWJQwDfytcsuuIBW_RP5jt0Gxmyt7sfS1LrbrfBE2FNK9jhF9TcgGkMTswDNoZgeQudWL_e2VHPsC3IPEI1MLDTuavIneUY7nj33wkhc12k/s200/image_8280585.jpg" alt="" id="BLOGGER_PHOTO_ID_5338542998232587954" border="0" /></a><span style="font-style: italic; color: rgb(255, 102, 0);">By Laura Raines</span> <span style="font-style: italic; color: rgb(255, 102, 0);">For the AJC</span> <span style="font-style: italic; color: rgb(255, 102, 0);">Sunday, January 25, 2009</span>
The economic headlines are all doom and gloom — bank failures, store closings, bankruptcies, unemployment. Would anyone even think about starting a business today?
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Yes</span>... And some people should, said Lydia Jones, director of the Kennesaw State University Small Business Development Center. “We’re seeing markets and industries contract. Many small businesses are hurting. Those that aren’t strong enough won’t survive. Others will make it but won’t grow. In times when the economy is booming or tanking, we are covered up with people seeking our advice and assistance,” Jones said.
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">Despite the negative news</span>, Jones is a firm believer in small business. “I’ve seen small businesses turn on a dime when big business couldn’t or wouldn’t change. Small-business owners are so open to new ideas and ways of doing things — they’re like sponges — and we need them right now.”
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">For all the belt-tightening and small-business pain</span>, she’s also seeing owners innovating and grabbing for opportunity amid the chaos. “People start businesses in all economies,” Jones said. She’s seeing new enterprises succeed in the bio-tech, green/energy-saving, training and service sectors. So when she sees someone come in “with blinders on,” meaning that the person has such passion for his business idea that he is willing to take huge risks, she encourages him to go forward — with caution.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">“I advise entrepreneurs</span> to plan more thoroughly than ever before, because there are more challenges facing them in this economy,” Jones said. “They can’t leave any questions unanswered when lending communities are still so cautious and customers less willing to spend money. You have to have a very strong package to present to lenders or investors.” You also need more contingency plans than usual.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Courses </span>(such as the Entrepreneur Success Series) and counseling available through Georgia’s 17 small-business development centers help people strengthen their business plans. Small-business owners can also find help through local chambers of commerce, city and county economic development departments, SCORE: Counselors to America’s Small Business, the Edge Connection, and many Internet sites.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">The Terry College of Business</span> entrepreneurship program at the University of Georgia is hosting a monthly series of seminars called “UGA Startups” for would-be business owners in Atlanta. The first seminar, on franchising, will be at the Terry Executive Education Center in Buckhead on Thursday.
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">“We’ve been overwhelmed</span> by phone calls from people who have been laid off and wonder what to do next, since jobs aren’t plentiful. We wanted to create a safe atmosphere [no solicitations] where people could bring their concerns and fears and receive coaching about how to start a business or purchase a franchise,” said Chris Hanks, Terry College of Business entrepreneurship program director. Hanks’ program plans to offer participants help beyond lectures and panel discussions; including a network of experts and contacts, opportunities for coaching and mentoring, and even practical advice on financing. “If people are really interested in starting a new venture and will do the things they need to do, I won’t quit until that business is launched,” Hanks said.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">“The beauty of a business plan</span> is that you start with a blank sheet of paper and you get to choose what types of things you’ll be doing in the future, the kind of life you want to live. The business is simply the vehicle to get you there.”
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">In a recession</span>, entrepreneurs face more challenges and have less room for error. “They have to be more creative about financing,” Hanks said. “Venture capitalists are still lending, but they are being a lot more careful.” Home equity and bank credit options are contracting as well.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Hanks has seen a tanning-bed</span> facility get started by pre-selling subscriptions, a restaurant launch through selling VIP memberships, and people trade and barter for services. With baby boomers retiring, there are more opportunities to buy an existing business, and franchising is more attractive in a down economy.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">“In 2000-01</span>, we had a recession and then 9/11 happened and things got bad,” said Jim Raubolt, a consultant with Axxiom Franchise Advisors, who has owned franchises in the telecom, automotive and medical sectors. “In the next five years, franchising grew by 18 percent. Buying a franchise makes sense for a vertical worker in a declining industry or an older worker who has been laid off,” Raubolt said.
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">“You could spend</span> a year trying to replace the high-paying job you lost, or you could buy a franchise and start creating a revenue stream.”
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">Franchises offer people an opportunity</span> to run their own business with backup. “New business owners often wonder where to turn for direction and guidance. Those systems are built into a franchise,” Raubolt said.
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">“Now is a good time to buy because</span> franchising companies are bending over backward to cut fees, and as the economy rebounds, so will businesses. Now is a good time to get in.”
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Raubolt advises people</span> to do as much due diligence as possible, including visiting and talking with existing franchise-holders or volunteering with a similar company. Funding will be more difficult, but there are legal ways to tap into retirement plans for franchising, he said.
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">“Atlanta is a remarkable market</span>. More franchising companies are headquartered here than any other city,” Raubolt said. “It’s also a phenomenal city for supporting entrepreneurs. There are great opportunities for networking at all levels.”
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">In 2005</span>, two business members of the Georgia Coach Association, Debby Stone and Michelle Goss, founded GROWE to provide education, mentoring and support to women entrepreneurs and executives.
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</p><div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">“For many people</span>, this could be the best time to start a business, especially if they can do it with the lowest overhead possible. It takes awhile to get one off the ground anyway, so why not start now?” said Goss, owner of the Leader’s Edge.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">With sales way down</span> in his company, one sales colleague found he had more free time, so he is using his nights and weekends to craft a strategy to start the business he wants to be in.
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Goss suggests that</span> clients and GROWE members first define what success means to them before deciding to be an entrepreneur. It’s not for everyone, and anyone coming from a corporate background will find the challenges very different. “One of the biggest challenges is attitude. There is so much negativity out there in the workplace. Be aware of today’s fear factor and what triggers fear in yourself,” Goss said. “One way to combat fear is to surround yourself with positive people or find a supportive environment where you can bounce ideas off others. A support network can help you plan, point out your blind spots and help you access your own creativity to find solutions for your venture.”
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">GROWE organizes</span> members in small groups so there can be dynamic and in-depth discussion, facilitated by a professional coach. They meet monthly, and the cross-pollination of ideas from new and experienced business owners creates synergy. “The members help each other,” Goss said. “They often find that new ideas and approaches come from the group to make their jobs easier.”
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</p><div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Hanks believes that</span> there may be more businesses launched because people are seeing fewer opportunities in the jobs market. “This is the time to learn from the success of others. We still have a vibrant entrepreneurial community here,” he said.
</div><p></p> <p>
<span style="font-weight: bold;">The Article Source Is: </span><a style="font-weight: bold;" href="http://www.ajc.com/hotjobs/content/hotjobs/careercenter/articles/2009/01/25/small_business.html">http://www.ajc.com</a></p>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-55314153638728242482009-05-22T06:26:00.007+03:002009-11-30T01:14:08.456+02:00Do You Believe That Recession Can Be a chance To Small Business?<div style="text-align: justify;"><div style="text-align: left;"><span style="font-weight: bold;">The Recession </span>is a general<span style="font-weight: bold;"> </span>situation now affects all the sectors of business around the world. it affect lots of factors like: <span style="font-weight: bold;">Investment</span>, <span style="font-weight: bold;">Interest Rates</span>, <span style="font-weight: bold;">stock market</span>, and <span style="font-weight: bold;">Economic Growth</span> as the hole. Here we will explain how "<span style="font-weight: bold;">The Recession</span>" being a chance to the Small Business not to only grow, but also thrive during and after it.
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<div style="text-align: justify;">You've probably heard or read some of the nerve-wracking headlines that have been leading the financial news. The gloom and doom includes "Caterpillar, Inc. Joins Other Large Corps Warning of Recession." "Broad Profit Woes Spark Stock Plunge On Recession Fears." "Shares Tumble as Fears of Recession Cap Gloomy Week." "CEOs, Wall Street Warn of Recession." If these were warnings about an impending blizzard, milk and bread would be flying off the shelves.
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<div style="text-align: justify;">Is a recession indeed on its way? If so, will it be a mild one as some are predicting, or will it be a doozie as others suggest? In either case, how will it affect your business? When it comes to answering that last question, you have more say than you may think.
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<span style="font-weight: bold; color: rgb(255, 102, 0);">Time to get a bigger boat</span><span style="color: rgb(255, 102, 0);">:</span>
<div style="text-align: justify;">Referring to the metaphor about a rising tide lifting all boats, a recession generally lowers all boats. But that doesn't mean that your business is going to sink. In fact, a recession can prove to be an excellent time to work on getting a bigger boat.
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<div style="text-align: justify;">Many businesses decide to cease most or all of its marketing activities when times get tough. However, you may discover that, as your competition reins in its marketing, you have the opportunity to take a greater share of your target market. Then, when the economy rebounds and the tide rises, you and your competitors all rise. The difference is that you have a bigger boat than you did before, i.e. a greater market share.
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<span style="color: rgb(255, 102, 0); font-weight: bold;">Profitability is more important than ever:</span>
<div style="text-align: justify;">Profitability should always be a concern. But when a recession hits, you have to be extremely aware of your profit margins. When they are too low, you find yourself struggling to a greater degree. But when they are at a healthy level -- even with lower revenue -- you have the means to promote your company in an effective manner. Your competition, however, is forced to market less ... wondering how you continue to push forward.
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<span style="font-weight: bold; color: rgb(255, 102, 0);">Start low-cost, high-return marketing now:</span>
<div style="text-align: justify;">There are a number of marketing tactics that cost little more than time, so they are perfect for businesses to employ during the good times and the slow ones ... as long they meet two criteria -- one is that they fit your overall strategy, and the other is that you can implement them consistently.
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<div style="text-align: justify;">Several of these tactics are web-based, such as beginning a blog, consistently adding to your current one, and keeping your site fresh by frequently posting news. Another opportunity is adding an autoresponder to your site. Then give visitors something of value in exchange for their names and e-mail addresses. When your visitors submit their information, the autoresponder goes to work behind the scenes, periodically sending valuable information to your visitors. The idea is that the visitors who sign up have identified themselves as prospects. By staying top-of-mind and showing that you offer them value, these prospects are going to contact you when they have the need that you can fill.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Yes</span>, if the pundits are correct, there is going to be a recession. But, by managing the effect a recession has on your business, as opposed to just reacting to it, you give yourself the opportunity to not only survive a recession, but thrive during and after it.
<span style="font-weight: bold;">The Article Source Is: </span><a style="font-weight: bold;" href="http://www.streetdirectory.com/travel_guide/161537/money_management/how_a_small_business_can_flourish_in_a_recession.html">http://www.streetdirectory.com</a>
</div>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com1tag:blogger.com,1999:blog-1402397252225880514.post-24110009986181256622009-05-21T03:51:00.005+03:002009-11-30T00:52:56.850+02:00Top Secrets to Keep Your Budget on Track In Small Business<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Keeping track</span><span style="color: rgb(255, 102, 0);"> </span>of our hard earned money is something that a great majority of us have trouble with. It's as if we spend it faster then we make it and by the end of each pay period we are left wondering where it all went. Learning to efficiently manage money is something everyone needs to know, but unfortunately most people are never taught this most valuable of skills.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">This is where a budget is most valuable</span>. It gives a starting point in which we can all learn to properly manage our money. Let's look at it this way. Most businesses and corporation have a budget, even the United States government has a "budget" (okay, bad example), but individuals and families seldom follow any sort of budget. In this day of overwhelming debt this is not good.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">The first thing you need to do when starting a budget is</span> to set a goal. What do you want your money to do for you? Do you want to get the spending under control? Get out of debt? Save up for a big purchase? Put money into retirement accounts? If you have a specific goal or goals it is much easier to build a budget around that.
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<div style="text-align: justify;"><span style="font-weight: bold;"><span style="color: rgb(255, 102, 0);">Most people who start a budget just want to find out where their money is going</span>.</span> As you list out your expenditures you will begin to see patterns. Some expenses you just have to live with like a mortgage or utility bills. It's when you start looking at all the little expenses and how they add up they don't seem so little anymore.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">If you start cutting out some of these smaller daily expenses</span>, like the daily morning coffee for 4$ a pop, you may begin to see that you do indeed have extra money at the end of the month. The point is that it is the small items that add up over time and this is what causes the most financial problems for many people. If you buy that cup of coffee on the way to work everyday that turns out to be $80 a month or $960 a year. Add a few more small regular purchases into that equation and before you know it you are spending thousands of dollars a year on coffee, sodas and other things.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Here's another secret to keeping your budget going</span>. If you are using your budget to help pay off credit card and other debt then list out your debts from smallest to largest. Once you pay all your minimums on all your debts take any extra money that is left over and send it to your smallest debt. Yes, that's right, the smallest one. You'll be amazed at how quickly you pay that one off and it will give you motivation to move to the next one.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">Staying motivated</span> is best way to keep using a budget to find that financial freedom you always wanted. After all, it is our behavior with money that causes most of our financial problems in the first place.
</div><span style="font-weight: bold;">The Article Source is: </span><a style="font-weight: bold;" href="http://www.streetdirectory.com/travel_guide/161482/money_management/secrets_to_keep_your_budget_on_track.html">http://www.streetdirectory.com</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-20477707705335234012009-05-19T00:52:00.010+03:002009-11-30T00:52:56.851+02:00Eight ways to make a budget work ... If you build it, stay with itPut another way: If you've put in the work and created a business budget, follow it! If you don't, you'll lose the benefits that you planned for when you built the little monster.
<div style="text-align: justify;">Get started by reminding yourself that your business budget is not a monster. It's nothing more than a set, of guidelines for your spending and saving habits. Below, I've laid out some common problems that pop up with many established budgets, along with some solutions that can help you stay within budgetary guidelines <span style="color: rgb(0, 0, 153);">(Article Starting Below)</span>:
<p></p>
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<span style="color: rgb(255, 102, 0); font-weight: bold;">
<p></p>
1. Accept the learning curve:</p></span>
Living with a budget is an education. Trimming your expenses, knowing how long a paycheck is going to last or how much of a cash reserve to keep around . . .
working these skillfully will take some time. But you can learn to adjust a budget as you go, and what was once a shot in the dark gradually will become a more predictable and useful practice.
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<p></p> <p>
2. Be prepared to miss your budget estimates and act accordingly:</p></span>
<div style="text-align: justify;">This was rule No. 1 in setting up a budget: knowing that your budget projections are a best guess and nothing more. Notes Mark Weaver, associate professor of management.
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<div style="text-align: justify;">at the University of Alabama: "You're going to miss your estimates. That doesn't make you unintelligent or a bad businessperson. Instead, try to miss them intelligently and in ways you can correct."For example, if you budgeted $200 a month for long-distance phone service and your bill consistently tops $250 — say, for at least three months running — adjust your phone allocation up $50. By the same token, if the bill is only running an average of $150, you can trim your phone share. To keep things in line as much as possible, try to reallocate some other area of your overall budget to account for the adjustment.
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<span style="font-weight: bold; color: rgb(255, 102, 0);">
<p></p> <p>
3. Work flexibly:</p></span>
<div style="text-align: justify;">As with setting up a small-business budget, sticking by one often boils down to a willingness to be flexible. For instance, if your revenue doesn't match what you expected, — and there's a good chance that might be the case — trim back your expenses to compensate. By the same token, if you're taking in more than you anticipated, it might be time to invest in better equipment.
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<span style="font-weight: bold; color: rgb(255, 102, 0);">
<p></p> <p>
4. Watch your cash flow:</p></span>
<div style="text-align: justify;">If you want to stick to a budget, make sure that your inflow more than compensates for your outflow. Monitor your income closely to make certain that you'll have adequate funds to pay your bills, particularly if your business is prone to long lapses between paychecks. Notes Weaver: "Even if it's just from the left pocket to the right pocket, cash-flow problems are what kill most small businesses. Keep checking to make certain that your revenues match your expenses."
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<span style="font-weight: bold; color: rgb(255, 102, 0);">
<p></p> <p>
5. Err on the side of conservative:</p></span>
<div style="text-align: justify;">When setting up your budget, it's a good idea to overstate your expenses and low ball your expected revenue. That approach is also a solid strategy when making sure your cash flow is going to hold up. Look into budget savers such as telephone calling plans, less expensive office furniture and other ways to lessen the burden on your income. "People always feel they have to have the best computer," says Weaver, "but money you don't spend is money you don't have to earn."
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<span style="font-weight: bold; color: rgb(255, 102, 0);">
<p></p> <p>
6. Nurture a cash cushion:</p></span>
<div style="text-align: justify;">The uncertainty of budgeting — both in terms of income as well as expenses — stands as one of the biggest threats to the survival and success of any small business. While trimming expenses to the absolute bone is always a good idea, it's also prudent to set aside income whenever possible. If you can afford it, earmark a portion of every paycheck you get and sock those funds away in a money market account. Not only can that money come in handy for predictable expenses such as year-end taxes, it also can prove an absolute lifesaver should an unexpectedly high bill suddenly crop up.By contrast, if you're thinking about starting a business sometime in the future, start saving — the money you set aside now ultimately may bail you out in ways you can hardly imagine.
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<span style="color: rgb(255, 102, 0); font-weight: bold;">
<p></p> <p>
7. Check your budget every month:</p></span>
<div style="text-align: justify;">This is a point that I cannot stress enough. Go over your budget every month and examine your cash flow to make certain your available funds are sufficient to meet your liabilities. If you're following point No. 2, above, and adjusting your budget as you go, you'll have some sort of emergency fund to take care of monthly overruns. Use it when things cost more than you thought and put money into the contingency fund if you come in under your expected numbers.
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<span style="font-weight: bold; color: rgb(255, 102, 0);">
<p></p> <p>
8. Use your budget as a form of restraint, not constraint!:</p></span>
<div style="text-align: justify;">Setting up and sticking to a solid budget is the most effective teacher of fiscal discipline there is. But don't be shy about busting your budget on occasion should something truly warrant it. It's often impossible to budget for a valuable last-minute seminar or a trip to a trade show to make valuable contacts. If you are too rigid with your budget, you'll refuse to spend when you really should.
</div>
<div style="text-align: justify;">"Don't be afraid to go beyond your budget to spend money that's a valuable investment in your business," Weaver says. "A good budget is great, but don't let it dictate your business."
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</p><div id="divAuthorBio" class="hidden"> <p> Jeff Wuorio is a veteran freelance writer and author based in southern Maine. He writes about small-business management, marketing and technology issues. Send Jeff an <a href="mailto:jwuorio@adelphia.net"> e-mail </a> . </p></div> <img src="http://www.microsoft.com/smallbusiness/images/pho_wuorio_mug.jpg" />
By <a href="http://www.microsoft.com/smallbusiness/resources/startups/budgeting-expenses/8-ways-to-make-a-budget-work.aspx#"> Jeff Wuorio </a>
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<p></p> <p>
<span style="font-weight: bold;">The Article Source Is</span> :<a style="font-weight: bold;" href="http://www.microsoft.com/smallbusiness/resources/startups/budgeting-expenses/8-ways-to-make-a-budget-work.aspx">http://www.microsoft.com/smallbusiness</a>
</p>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-23173008905754405722009-05-17T02:08:00.009+03:002009-11-30T00:52:56.851+02:00Building a Small Business Budget from the Bottom To The Top - Part 4<span style="color: rgb(0, 0, 0); font-weight: bold;font-size:78%;" ><span style="color: rgb(0, 0, 0);" class="articletext"><h2 style="font-weight: bold;"><span style="font-weight: normal;">Here is the final part of</span> <span style="font-weight: normal;"><a style="font-weight: bold;" href="http://afreeopinion.blogspot.com/2009/05/building-small-business-budget-from.html">How To Building The Budget</a>, Remember that we already discussed the Budget elements like: </span><span style="color: rgb(255, 102, 0); font-weight: bold;">budgeting cost of sales, </span><span style="color: rgb(255, 102, 0); font-weight: bold;"><span>Budgeting revenues</span></span><span style="font-weight: normal;"><span style="font-weight: bold;">, </span><span style="color: rgb(255, 102, 0); font-weight: bold;">and Budget Types</span><span style="font-weight: bold;"> </span>at <a style="font-weight: bold;" href="http://afreeopinion.blogspot.com/2009/05/building-small-business-budget-from.html">Part1</a><span style="font-weight: bold;">, </span><a style="font-weight: bold;" href="http://afreeopinion.blogspot.com/2009/05/building-small-business-budget-from_10.html">part2</a><span style="font-weight: bold;">, </span><a style="font-weight: bold;" href="http://afreeopinion.blogspot.com/2009/05/building-small-business-budget-from_14.html">part3.</a></span></h2></span></span><span class="articletext"><h2 style="color: rgb(255, 102, 0);"> </h2><h2 style="color: rgb(255, 102, 0);"><span style="font-size:85%;">7- Start-up Requirements:</span></h2></span><div style="text-align: justify;"><span class="articletext"><p>Budgets are not all the same, and there is no standard format. Different types of budgets can be prepared for different purposes. One way to start, especially for a new business, is to prepare two separate budgets – one for start-up costs and capital expenditures, and another for the initial operating phase.</p></span></div><span class="articletext" style="font-size:85%;"><h2 style="color: rgb(255, 102, 0);">8- Organization costs:</h2></span><div style="text-align: justify;"><span class="articletext"><p>Part of a small business's start-up costs are organization costs to get the business set up. Organization costs may include legal fees and expenses, notary fees, licenses and registrations, tax consulting and others. These costs will depend on the legal structure you select for your business, and your line of business. For example, setting up a sole proprietorship will probably not involve significant legal costs, since it is not necessary to set up a separate legal entity. But legal costs may be more significant for a partnership, and even more so if the business is set up as a corporation. Attorneys should be able to estimate the cost of setting up a partnership or corporation.</p></span></div><div style="text-align: justify;"><span class="articletext"><p>If your business requires a commercial license or other type of operating permit, information about the cost should be available from the municipality or other legal jurisdiction in which the business will operate.</p></span></div><span class="articletext" style="font-size:85%;"><h2 style="color: rgb(255, 102, 0);">9- Capital expenditures:</h2></span><div style="text-align: justify;"><span class="articletext"><p>In preparing a budget for capital expenditures, you may want to start by making a list of all the property, plant and equipment you will need to get the business started. These items could include real property, machinery, equipment, vehicles, furniture, fixtures, and installations. Once you identify the items you need to acquire, you can start putting together cost information from catalogs, price lists, auctions, want ads, quotes, bids, offers, and appraisals. If the business involves building or remodeling a facility, a budget for the work could be prepared based on bids for the job.</p></span></div><div style="text-align: justify;"><span class="articletext"><p>The documentation you collect in putting together a capital expenditures budget will serve as good, solid support, and you may want to keep it together with your budget and business plan to present to potential lenders and investors, and for your own reference purposes.</p><p><span style="font-weight: bold;">The Article Source Is: </span><a style="font-weight: bold;" href="http://www.googobits.com/articles/p0-690-building-a-small-business-budget-from-the-bottom-up.html">http://www.googobits.com</a>
</p></span></div>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com1tag:blogger.com,1999:blog-1402397252225880514.post-42687449137081732202009-05-14T21:05:00.007+03:002009-11-30T00:52:56.851+02:00Building a Small Business Budget from the Bottom To The Top - Part 3<span class="articletext"><h3 style="color: rgb(255, 102, 0);"><span style="color: rgb(0, 0, 0); font-weight: normal;">Again, we continue our subject about <a style="font-weight: bold; color: rgb(0, 0, 0);" href="http://afreeopinion.blogspot.com/2009/05/building-small-business-budget-from_10.html">How To Building The Budget</a> by the 3rd part as the following: </span>
</h3><h3 style="color: rgb(255, 102, 0);">4- 2- Services:</h3></span><div style="text-align: justify;"><span class="articletext"> <p>If you are in the service business, your inventory is your time. The building blocks for budgeting rervenue in this case are the number of billable hours available, and the rate to be charged per hour. Hours and rates should be broken down by person, if the business involves different persons performing different functions.
</p> </span></div><div style="text-align: justify;"><span class="articletext"><p>Billable rates may vary, depending on the person’s qualifications and experience. And billable hours may vary depending on the person’s functions. A person dedicated almost entirely to customer service will have a different number of billable hours than a person who primarily performs administrative and support functions. The nonbillable hours may be factored into the billable hours, by incrementing the billing rate to be charged. Or the nonbillable hours may be left out and absorbed as overhead within the operating expenses.</p></span></div><span class="articletext"><p>Here again, market dynamics will need to be taken into consideration. But you can reasonably estimate your revenue by determining your billable hours per month times the rate you expect to charge. </p><h3 style="color: rgb(255, 102, 0);">5- Jobs or projects:</h3></span><div style="text-align: justify;"><span class="articletext"><p>If your business involves jobs or projects, budgeting will probably include aspects of both product and service revenue budgeting. Based on your line of business, you will know what is involved in completing the job or project. The work may involve materials and supplies, direct and indirect labor, use of equipment, and maybe subcontractors. Budgeting for jobs or projects may go hand-in-hand with submitting job estimates or bids. The terms and conditions of the work will play an important role in how the work is quoted or budgeted. A lump sum contract for a particular job is different from a fixed rate contract, for instance.</p></span></div><div style="text-align: justify;"><span class="articletext"><p>Breaking down the job into its component parts will be a key factor in submitting a good quote or bid, and budgeting job costs and revenues. You will want to make sure you have all your bases covered, in the sense that you include all your costs, both direct and indirect, and allow yourself a sufficient margin. You may need to make out a materials list, a job schedule for direct labor, and an allocation calculation to include indirect expenses. If you are going to use subcontractors, you should get bids from them, hopefully before committing yourself to the job.</p><p>If your business involves jobs that extend over a longer period of time, first you will want to make sure the amount you are charging for the job is sufficient to cover all your expenses and leave you with a margin that gives you an adequate monthly income during the period you are working on the job. You can budget monthly revenue and cost by spreading the total job over the months of work.</p><p>If you are working on several jobs at a time, you can use your timelines for each job, and then allocate the total revenues and costs for all the jobs over the applicable periods in order to come up a monthly budget.</p></span></div><span class="articletext"><h3 style="color: rgb(255, 102, 0);">6- Expenses:</h3></span><span class="articletext"><p style="text-align: justify;">xpenses can also be broken down into components such as quantities, prices, and rates. Some expenses are basically incurred as a function of usage, for example materials and supplies. Other expenses are correlated with time periods, such as rent and insurance. The types of expenses your business incurs will depend on your line of business, and the following are just some general examples of how you may be able to budget, by breaking down the expenses into their component parts.</p><p style="text-align: justify;">Employee compensation can be budgeted based on the hourly wages or monthly or annual salary contracted with each person. You will need to budget for employer payroll taxes, which can be calculated using the applicable rates for Social Security, Medicare and unemployment taxes. You will also need to provide for any benefit plans you have agreed upon with your employees, such as health insurance, pension plans and others. If you have actual data on the cost of these plans, all the better. If not, you may want to budget based on a payroll burden, which is a percentage of employee base compensation.</p></span>
<div style="text-align: justify;"><span class="articletext"><p>You may have other employee-related expenses such as bonuses and awards, that are tied to the completion of objectives or goals. It may be possible to correlate these expenses with a related item in the budget, such as sales.</p><p>If you plan to pay sales commissions to either your own employees or outside salespersons, the budgeted commissions expense will be a function of budgeted sales. If you use an advertising agency, you should budget based on the contractual terms. Advertising in telephone guides or on-line services can be budgeted based on their quoted rates, according to the type of ad you want to place.</p><p>Rent of property or equipment can be budgeted according to the monthly lease or rental amount. Insurance is generally prepaid, and you can do some accounting to spread the quoted insurance premium month-by-month over the policy period.</p><p>If you have a periodic preventive maintenance contract on equipment, you can budget based on the monthly cost of your contract. If you have purchased an extended warranty, you can spread the cost over the expected useful life of the related equipment, or the duration of the contract. Repairs are generally an unforeseen expense and are more difficult to predict and budget, but they should not be overlooked. You should probably estimate repair expenses based on your own knowledge and experience, and based on the age and general working condition of your equipment and facilities.</p><p>Utilities, such as electricity and gas, can be calculated as usage times rate, if you have an idea of how much you will use. You may be able to estimate usage based on a reference point, such as a similar business or facility, and multiply by the going rates in your area for electricity and gas.</p><p>Budgeted telephone expense can be based on the plan you have for your cell phone, for example. The base monthly rate and installation cost for a new land-based line can be obtained from your local telephone company. The expense for long-distance calls will depend on the nature of your business, and here you will have to estimate based on your judgment and personal experience.</p><p>If you use your vehicle in your business, you can estimate the average number of miles or kilometers you expect to drive each day or month. Then take this and multiply by the appropriate factor based on how many miles or kilometers your vehicle gets per gallon or liter, and the expected price of fuel. You may be able to budget travel expenses by estimating how many trips you plan to take to what places, and find out the going airfares and hotel rates. </p><p>You probably know what types of insurance coverage your business will need, and you may be able to get quotes on-line. Or you could go to an insurance agent and inquire.</p><p>Depreciation expense is based on the cost or basis of your appreciable property and equipment, and the depreciation method you use. This may be straight-line depreciation over the useful life of your property. Or you may elect to use another method, such as the accelerated recovery system used for income tax purposes. Your budgeted depreciation should coincide with the depreciation method you intend to use for book purposes.</p><p>Finally, interest expense will depend on the loans your business carries. At the outset, you may not yet know what these will be, since this will depend on the financing you are able to obtain. Your initial budget for interest expense could be based on the amount of financing you need, times the applicable interest rate for each particular type of financing. For example, financing with your credit card will generally carry a higher interest rate than a mortgage loan, secured by real property.</p><p>As mentioned above, these are just some examples and ideas, and you will need to adapt them to your own particular circumstances. The important thing is to analyze your expenses, and break them down into pieces of data that can be identified.</p></span></div><div style="text-align: center; font-style: italic;"><span style="color: rgb(102, 0, 204); font-weight: bold;">to be continuing at part four</span>
</div><span class="articletext"><p><span class="articletext"><p><span style="font-weight: bold;">The Article Source: </span><a style="font-weight: bold;" href="http://www.googobits.com/articles/690-building-a-small-business-budget-from-the-bottom-up.html">http://www.googobits.com</a>
</p></span></p></span>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com3tag:blogger.com,1999:blog-1402397252225880514.post-7094682807246819532009-05-10T18:59:00.006+03:002009-11-30T00:52:56.852+02:00Building a Small Business Budget from the Bottom To The Top - Part TwoNow we will Continue the second part of who to <a style="font-weight: bold;" href="http://afreeopinion.blogspot.com/2009/05/building-small-business-budget-from.html">"Build a Small Business Budget from the Bottom To The Top"</a><span style="font-weight: bold;"> as shown below: </span>
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<span style="font-weight: bold; color: rgb(255, 102, 0);font-size:130%;" >
3-Product recipes for budgeting cost of sales:</span>
<p> </p>
<div style="text-align: justify;">If your business involves selling a product, you may start by determining what it will take to make the product, in terms of materials and supplies, labor, and overhead. If you can prepare a"recipe" for a product, and identify the ingredients, you can do some calculations based on quanitities and prices to figure how much it will cost to make each unit of product. The ingredients include direct costs of raw materials, supplies, and labor. If you want to determine an "all-in" cost, you will need to add in the indirect costs or overhead expenses, such as indirect labor (administrative and management, for example), utilities, maintenance, depreciation, insurance, and any other general expenses.
<span style="font-weight: bold;">Based on availability</span> of time and materials, and your production capacity, you can determine how many units you are able to produce each month. If
you know what your average monthly overhead expenses are, you can allocate the overhead over the number of units to determine how much should be added to the cost of each unit. If you are making more than one product, you may want to assign a weighting factor in allocating overhead expenses. For example, products with a higher direct cost would absorb more of the indirect costs.
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<p> </p>
<span style="color: rgb(255, 102, 0);font-size:130%;" ><span style="font-weight: bold;">4- Budgeting revenues
<p> </p>
</span><span style="font-weight: bold;">4- 1- Products:</span></span>
<p> </p>
<div style="text-align: justify;">One way to budget revenues is to take the budgeted cost of sales and add a profit margin. The unit cost of each product plus your expected profit margin would give you a budgeted sales price. In this case, you should use the "all-in" cost, to ensure that your selling price is sufficient to cover all your costs and still leave you with a margin. Budgeted revenue would then be the quantity of units times the budgeted selling prices. But there are market forces that should also be taken into consideration, that may affect the price you can reasonably expect to charge in order to be competitive in the marketplace. In preparing the budget for revenue, you may want to collect information on competitors’ prices.
<p> </p>
<span style="font-weight: bold;">Since you are most likely starting a business</span> in which you already have knowledge and expertise, you may be well aware of these market factors. The important aspect in budgeting is to try to quantify these aspects and incorporate them into budgeted selling prices, and budgeted revenue. If you are introducing a new product, you may be able to budget revenue based on prices for similar products, adding an incremental amount based on the expected added value of your product. If you have done a market study, this information will be valuable in building the budget.
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</div>The Article Source Is: <a href="http://www.googobits.com/articles/690-building-a-small-business-budget-from-the-bottom-up.html">http://www.googobits.com</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-6455786077720724072009-05-09T01:40:00.013+03:002009-11-30T00:52:56.852+02:00Building a Small Business Budget from the Bottom To The Top - Part OneWhen you start a small business, preparing a budget, without any history on which to base your estimates, is a daunting task. You may have some idea of what you hope to earn and how much it will cost you to earn it. You can make broad estimates of income and expenses and may get your budget done quickly, but this won’t give you a tool to guage your performance and manage your business. It is better to start at the bottom and build up, The Article continued below:
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<span style="color: rgb(255, 102, 0); font-weight: bold;">1- First of all, do I really need a budget?</span>
</p><p>In short, yes. A well-run household operates on a budget, even though it may not be written down. You are in business to make money - all the more reason to have a budget showing how you will do just that. A budget is an extension of your business plan and strategy, put into practice. It serves to quantify the plan in financial terms, and lends a sense of reality to conceptual ideas, transforming them into a feasible business endeavor. A well-prepared budget will serve as a baseline and an important reference point to guide your business in the right direction by providing an essential framework for the start-up and initial operating stages. In this sense, it is a very important tool in managing the business, provided the budget is based on realistic data that can be used to gauge actual performance.
Having a detailed budget will also be a distinct advantage when dealing with potential lenders and investors. It will give them a clear idea of what your business is about; how you intend to carry out the business plan, in concrete, financial terms; what the loan or investment is needed for; and how the money will be spent. A good budget will show a lender how the loan will be repaid, and will show an investor what type of return can be expected on the investment. In both cases, the budget will significantly improve your chances of getting the financing you need for the business. And if you have sufficient depth and detail built into your budget, it will be much more credible to lenders and investors.
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<span style="color: rgb(255, 102, 0); font-weight: bold;">
2- Building blocks</span>
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Even though a budget is an estimate, or a projection of future events, it should be based as much as possible on actual data obtained by doing research, getting quotes, and assembling and organizing documentation and information. The idea behind building a budget from the bottom up is to start with what you know, or what you can find out. Starting at the bottom means going to the lowest level of detail, where you have building blocks – concrete pieces of information that can be put together to construct the various different line items such as revenues, cost of sales, advertising, rent, maintenance, utilities, and other overhead expenses. These building blocks are basically quantities, hours, prices and rates. Rather than budgeting total income and expenses as a certain amount per month, for example, you can break these figures down into their component parts.
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<span style="color: rgb(255, 102, 0); font-weight: bold;">
3- Operating budget:</span>
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The operating budget should be structured based on the way the business operates. Revenues and expenses should be budgeted at the same level of detail as they will be recorded for actual operations. This provides you with a tool for managing your business. A sufficiently detailed budget will enable you to compare actual results with budgeted amounts and perform quantity and price variance analysis.
</p><div style="text-align: center;">To Be Continuing In <strong><em>Part 2</em></strong>
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The Source Is: <a href="http://www.googobits.com/articles/690-building-a-small-business-budget-from-the-bottom-up.html">http://www.googobits.com</a></p>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com1tag:blogger.com,1999:blog-1402397252225880514.post-10893366967810564502009-05-07T03:50:00.005+03:002009-11-30T01:14:08.456+02:00Is There Life After Bankruptcy? Sure - Part Two<span style="color: rgb(0, 0, 0);">Today we will</span><span style="color: rgb(255, 102, 0); font-weight: bold;"> </span>continuing with the part two of our Article about <a style="font-weight: bold;" href="http://afreeopinion.blogspot.com/2009/04/is-there-life-after-bankruptcy-sure.html">the life after bankruptcy</a>, I hope you can find answers for all the questions that I received as the following:
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<span style="color: rgb(255, 102, 0); font-weight: bold;">3- Check Your Credit Report</span>:
</p><div style="text-align: justify;">Just because the bankruptcy court cleared your debts doesn't necessarily mean that they have been expunged from your credit report. According to a recent article in BusinessWeek, in a number of cases some financial institutions failed to report debts that had been discharged by bankruptcy courts to the credit rating firms, even though they are legally required to do so. If the debt is not reported as cancelled by the lending institution, it will remain delinquent on your credit report, potentially sabotaging your efforts to build new credit or obtain life insurance or even employment.
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<div style="text-align: justify;">In order to make sure that the bankruptcy court's orders have been accurately carried out, you should examine your credit report on at least an annual basis. You can obtain a copy of your credit report without charge once every twelve months from each of the three nationwide consumer credit reporting firms (TransUnion, Equifax and Experian). Copies of your credit report can also be requested online (at annualcreditreport.com) or by contacting the credit reporting firms directly.
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<div style="text-align: justify;">Credit information (late or missed payments, delinquencies, etc.) remains on your credit report for seven years; a bankruptcy will linger there for ten. Note that the three major firms do not always compare information, meaning that the information on one report may differ from that compiled by a different firm. In order to ensure that all the information in your reports is accurate, you should obtain a report from each of the three firms.
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<div style="text-align: justify;">Of course, making sure that bankruptcy debts have been discharged isn't the only good reason to look at your credit report. Errors in reporting by financial institutions can lead to inaccurate and potentially damaging inaccuracies that can drag your credit down. Taken with the threat of identity theft, checking your credit report periodically is a good idea, regardless of your credit status.
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<span style="color: rgb(255, 102, 0); font-weight: bold;">4- Landing a Loan:</span>
<div style="text-align: justify;">Once, a bankruptcy was a nearly insurmountable obstacle to obtaining a loan. Many banks would not even consider lending money to someone until the bankruptcy had cleared from their credit report a ten year wait. "That's not true anymore," says Jim Shea. "Banks are much more eager to lend money today and more willing to work around difficulties." Also, she notes, bankruptcy simply isn't the damning black mark it once was. "That said, most lenders will want to wait at least a year after the bankruptcy and see some evidence that you've put your financial house in order before they even consider a loan," Shea says. Hence, rebuilding a credit history using secured credit cards will go a long way to helping you get a bank loan.
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<div style="text-align: justify;">Even if banks are willing to lend you money after your bankruptcy, those loans will likely come with higher interest rates and fees a reflection of your damaged credit rating. Many banks may request the loan be secured either by collateral a physical asset you own or by a co-signer, someone with good credit who will agree to pay off the loan in the event you default. "Many people find it embarrassing to ask a friend or relative to co-sign a loan for them and it's a big thing to ask anyone to do but for a lot of people who've gone through a bankruptcy, and don't have many assets left it's the only way they are going to get a loan," Shea says.
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<span style="font-weight: bold; color: rgb(255, 102, 0);">5- Building On Success:</span>
<div style="text-align: justify;">Once you have begun rebuilding your credit, the best course of action is to stick to it. "It's really pretty simple," says Detweiler. "If you have a couple of credit cards and pay them on time along with all your other bills then your credit will recover in time." Detweiler notes that paying bills early has no effect on credit since only late or missing payments get reported to the credit bureaus. She also recommends keeping purchases small and avoiding carrying balances on the cards while rebuilding credit. "High balances lower your overall credit rating. The goal is to keep the cards active and create a history of on time payment," she advises. "Just make sure the payment arrives by the due date."
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<div style="text-align: justify;">Massachusetts contractor Mike Palladino followed this advice. He obtained a secured credit card and convinced his brother to co-sign for several loans. "It wasn't easy and money was really tight for awhile, but within two years, I had my business back up and running," he says.
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<span style="font-weight: bold;">Morin Bishop is editor -in- chief of Priority magazine</span>
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<span style="font-weight: bold;">
The Source is: </span><a style="font-weight: bold;" href="http://smallbusinessonlinecommunity.bankofamerica.com/blogs/LoansAndLinesOfCredit/2007/11/19/is-there-life-after-bankruptcy">http://smallbusinessonlinecommunity.bankofamerica.com</a>
=====================================Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com4tag:blogger.com,1999:blog-1402397252225880514.post-54089895336903146962009-05-05T14:16:00.003+03:002009-05-05T15:51:21.682+03:005 key tax code changes affecting small businesses<div style="text-align: justify;"><span style="font-weight: bold;">Small Business Tax</span> is an important to know, like <span style="font-weight: bold;">Sales Tax</span> form specially when it changed, here in this article we'll see that affect and is it good or bad as it show below:
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</p><div style="text-align: justify;">The tax bill signed into law by President Bush in late October 2004 was widely derided by editorial writers as a special-interest giveaway, an early "corporate" Christmas tree. Indeed, many provisions of this bill apply to larger companies or specific industries. But there's also a lot in this tax bill — formally known. as the American Jobs Creation Act of 2004 — that applies to small businesses. While some of the changes simplify tax issues for small businesses, many of the new rules could complicate tax planning and preparation, even if they cut your tax burden.
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<div style="text-align: justify;">Here are five major features that small-business owners should be aware of — and should be ready to consult with their tax advisers about.
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<div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">1. Of the bad news out upfront:</span> It used to be that you could buy a sport utility vehicle (SUV) with a gross weight of more than 6,000 pounds and write off the full cost of it in one year, unlike the rules for other, smaller passenger vehicles. Let's just say that this tax break didn't hurt sales of larger SUVs any, for business or pleasure. But the loophole has been tightened as of the date the tax bill was signed. You now, under Section 179, can deduct no more than $25,000 of the cost of a large SUV.
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<div style="text-align: justify;"><span style="color: rgb(255, 102, 0); font-weight: bold;">2. Section 179 expensing is extended:</span> The closing of the SUV loophole has gotten a lot of attention, but the ability to immediately write off large amounts of equipment is more relevant for most small businesses. The tax bill extends through 2007 your ability to deduct at least $100,000 in qualifying equipment purchases annually. That amount is reduced only if you put into service any one year. The deduction amount is adjusted each year for inflation, making it worth $102,000 for 2004 and likely $104,000 for 2005.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">3. A change in leasehold depreciation rules:</span> Any business making qualified leasehold improvements can depreciate those costs over 15 years instead of the previous 39-year standard. This change also applies to qualified restaurant property improvements. The more favorable schedule is good for improvements made through the end of 2005.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">4. A significant, but complicated, cut in taxes on manufacturers:</span> There's now going to be a tax deduction for business income for domestic manufacturers. This tax cut will be phased in, starting in 2005 with a 3% exclusion of manufacturing income from taxes. One of the interesting gray areas will be figuring out what qualifies as law, it appears that manufacturers now include at least some businesses involved in filmmaking, architecture, electricity and gas production, computer software, and engineering, among other enterprises. This "corporate" tax break is going to be available to C corporations, but also to S corporations, limited liability companies, and even sole proprietorships. (For information on the differences and pros and cons of forming business entities such as these, see this article.) While excluding a 3% income slice from taxes may not look like a significant amount now, this break is going to increase over time. Eventually, it will be ramped up to a 9% exclusion — that's currently scheduled to happen in 2010. A 9% income exclusion translates roughly to a cut of three percentage points in the tax rate for an individual or business in the 35% tax bracket. This new deduction is businesses and their tax pros. First off, you're going to have to determine whether part of your business actually qualifies as domestic manufacturing. (This isn't as cut-and-dried as it may seem: At one point, fast-food companies were going to be included in this definition; the final bill excludes the retail sale of food or beverages.) Then, you'll have to reduce your payments for domestic production by several items, including applicable costs of goods Sold, allocable expenses and deductions, and other costs. It's possible that businesses will in essence be computing their taxes on two platforms: "manufacturing" income and expenses, and "non-manufacturing" income and expenses. Bookkeeping programs likely will be modified to help companies and individual taxpayers cope with these new complexities; you'll also want to update your software to accommodate these changes. Have to reflect ways of reporting these new changes and complications.
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<div style="text-align: justify;"><span style="font-weight: bold; color: rgb(255, 102, 0);">5. Changes in rules governing S corporations:</span> Let's close with something easy: The number of shareholders allowed in a Scarp is increased from 75 to 100, beginning in 2005. Also, the definition of a shareholder is changing, so that all members of a family, including spouses, children, and grandchildren, can be treated as one Shareholder for the purposes of determining the number of shareholders in a Scarp.
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<span style="font-weight: bold;">The article Source: </span><a href="http://www.microsoft.com/smallbusiness/resources/finance/tax-advice/5-key-tax-code-changes-affecting-small-businesses.aspx#keytaxcodechangesaffectingsmallbusinesses"><span style="font-weight: bold;">http://www.microsoft.com/smallbusiness</span></a>
================Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-80376094061847496302009-04-18T17:16:00.009+02:002009-04-28T17:45:19.192+03:0010 Secrets of Successful Entrepreneurs<span class="mainbodyfont"><i><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" ><span style="color: rgb(51, 51, 51);font-family:Arial;font-size:10;" > </span></span></i> <p><span class="mainbodyfont"><span style=";font-family:arial,helvetica;font-size:85%;" ><span style="font-size:130%;">Running a one-person business is a creative, flexible and challenging way to become your own boss and chart your own future. It is about creating a life, as it is about making a living. It takes courage, determination and foresight to decide to become an entrepreneur. From the relatively safe cocoon of the corporate world, where paychecks arrive regularly, you will be venturing into the unchartered territories of business.</span><span class="mainbodyfont"><span style="color: rgb(0, 0, 204);font-family:verdana;font-size:78%;" ><span style="font-size:130%;"> (article continued below ...)</span>
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</p></span><p></p><p><span class="mainbodyfont"><span style=";font-family:arial,helvetica;font-size:85%;" ><span class="mainbodyfont"><span style="color: rgb(0, 0, 204);font-family:verdana;font-size:78%;" >
</span></span></span></span></p><p><span class="mainbodyfont" style="font-size:130%;"><span style="font-family:arial,helvetica;">Is there a way to determine whether you can be a successful entrepreneur, or you are better off to work for somebody else? Alas, there is no formula for success. However, most successful entrepreneurs share these ten characteristics. Check if you possess any one of them:</span></span></p><span class="mainbodyfont"><p><span class="mainbodyfont"><span style=";font-family:arial,helvetica;font-size:85%;" ><p><span style="font-weight: bold;font-size:130%;" ><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;" >1. Think success.</span></span> <span style="font-size:100%;"> </span><span style=";font-family:arial,helvetica;font-size:100%;" ><b> <span style="color: rgb(0, 0, 255);"> </span> </b><span style="font-size:130%;">To attain the kind of success that you want, you need to dream big. Every success story starts with big dreams. You need to have big dreams for yourself - which you want to be somebody rich, famous or fulfilled. You need to have a clear vision of what you want to achieve. But it doesn't stop in dreaming alone. You should actively visualize success in your mind that you can almost feel it, touch it or it is within your reach. Play this image back at every opportunity. What does it feel to triple your current income? How will your life change? What will your business look like if you achieved the million-dollar mark?</span></span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span><p><span style=";font-family:arial,helvetica;font-size:130%;" >Successful entrepreneurs possess an attitude of openness and faith that you can have what you want if you can simply envision it as the first step on the path of action to acquiring it. Management gurus have taught us the power of visualization - seeing yourself in your mind as having accomplished your dreams. If you want to be a successful writer, envision yourself signing books for a throng of people who have lined up to have your autograph. If you want to be rich, picture yourself in luxurious surroundings holding a fat bank account. And the process of envisioning success for you should be a constant activity! You need to think that you are successful (or will be one) every single waking hour. A personal development coach shared me her secret to help her continuously visualize her goals for the moment: when climbing stairs, recite your goal with every step you take. So if you want more money, say "I will have money" in every step of the stairs. This technique will reinforce your goal and keep it fresh in your consciousness.</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;font-size:100%;" ><b><span style="font-size:130%;">2. Be passionate with what you do. </span> </b></span> <span style=";font-family:arial,helvetica;font-size:130%;" > You start a business to change any or all part of your life. To attain this change, you need to develop or uncover an intense, personal passion to change the way things are and to live life to the fullest. Success comes easily if you love what you do. Why? Because we are more relentless in our pursuit of goals about things that we love. If you hate your job right now, do you think you will ever be successful at it? Not in a million years! You may plod along, even become competent at the tasks, but you will never be a great success at it. You will achieve peak performance and do what you have to do to succeed only if you are doing something that interests you or something that you care about. Entrepreneurs who succeed do not mind the fact that they are putting in 15 or 18 hours a day to their business because they absolutely love what they do. Success in business is all about patience and hard work, which can only be attained if you are passionate and crazy with your tasks and activities.</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;font-size:130%;" ><b>3. Focus on your strengths.</b></span> <span style="font-size:100%;"> </span><span style=";font-family:arial,helvetica;font-size:100%;" > <span style="font-size:130%;">Let's face it; you cannot be everything to everybody. Each of us has our own strengths and weaknesses. To be effective, you need to identify your strengths and concentrate on it. You will become more successful if you are able to channel your efforts to areas that you do best. In business, for example, if you know you have good marketing instincts, then harness this strength and make full use of it. Seek help or assistance in areas that you may be poor at, such as accounting or bookkeeping. To transform your weakness to strength, consider taking hands-on learning or formal training.</span></span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="font-size:130%;"><b><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;" >4. Never consider the possibility of failure.</span></b></span><span style="font-size:130%;"> </span><span style=";font-family:arial,helvetica;font-size:130%;" > Ayn Rand, in her novel The Fountainhead, wrote, "It is not in the nature of man - nor of any living entity, to start out by giving up." As an entrepreneur, you need to fully believe in your goals, and that you can do it. Think that what you are doing will contribute to the betterment of your environment and your personal self. You should have a strong faith in your idea, your capabilities and yourself. You must believe beyond a shadow of a doubt that you have the ability to recognize and fulfill them. The more you can develop faith in your ability to achieve your goals, the more rapidly you can attain it. However, your confidence should be balanced with calculated risks that you need to take to achieve greater rewards. Successful entrepreneurs are those who analyze and minimize risk in the pursuit of profit. As they always say, "no guts, no glory."</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><b><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;font-size:100%;" ><span style="font-size:130%;">5. Plan accordingly. </span> </span></b> <span style=";font-family:arial,helvetica;font-size:130%;" > You have a vision, and you have enough faith in yourself to believe that you can achieve your vision. But do you know how to get to your vision? To achieve your vision, you need to have concrete goals that will provide the stepping-stone towards your ultimate vision. Put your goals in writing; not doing so just makes them as intangible fantasies. You need to plan each day in such a way that your every action contributes to the attainment of your vision. Do you foresee yourself as the next Martha Stewart of hand-made home furnishings? Perhaps today, you need to see an artist to help you conceptualize the new line of hand-made linens that you hope to launch. Intense goal orientation is the characteristic of every successful entrepreneur. They have a vision, and they know how to get there. Your ability to set goals and make plans for your accomplishment is the skill required to succeed. Plan, plan and plan - because without which failure is guaranteed.</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;font-size:130%;" ><b>6. Work hard!</b></span><b> <span style="color: rgb(0, 0, 255);"> </span> </b> <span style=";font-family:arial,helvetica;font-size:130%;" >Every successful entrepreneur works hard, hard and hard. No one achieves success just by sitting and staring at the wall every single day. Brian Tracy puts it out this way, "You work eight hours per day for survival; everything over eight hours per day is for success." Ask any successful businessperson and they will tell you immediately that they had to work more than 60 hours per week at the start of their businesses. Be prepared to say goodbye to after-office drinks every day, or a regular weekend get-away trip. If you are in a start-up phase, you will have to breathe, eat and drink your business until it can stand on its own. Working hard will be easy if you have a vision, clear goals, and are passionate with what you do.</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="font-size:130%;"><b><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;" >7. Constantly Look for Ways to Network.</span></b></span> <span style="font-size:130%;"> </span><span style=";font-family:arial,helvetica;font-size:130%;" > In business, you are judged by the company you keep - from your management team, board of directors, and strategic partners. Businesses always need assistance, more so small businesses. Maybe the lady you met in a trade association meeting can help you secure funding, or the gentleman at a conference can provide you with management advise. It is important to form alliances with people who can help you, and whom you can help in return. To succeed in business, you need to possess good networking skills and always be alert to opportunities to expand your contacts.</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;font-size:100%;" ><b><span style="font-size:130%;">8. Willingness to Learn.</span> </b></span> <span style=";font-family:arial,helvetica;font-size:130%;" > You do not need to be a MBA degree holder or PhD graduate to succeed in your own business. In fact, there are a lot of entrepreneurs who did not even finish secondary education. Studies show that most self-made millionaires have average intelligence. Nonetheless, these people reached their full potentials achieved their financial and personal goals in business because they are willing to learn. To succeed, you must be willing to ask questions, remain curious, interested and open to new knowledge. This willingness to learn becomes more crucial given the rapid changes in technologies and ways of doing business.</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;font-size:100%;" ><b><span style="font-size:130%;">9. Persevere and have faith</span>.</b></span><b> <span style="color: rgb(0, 0, 255);"> </span> </b> <span style=";font-family:arial,helvetica;font-size:130%;" >No one said that the road to success is easy. Despite your good intentions and hard work, sometimes you will fail. Some successful entrepreneurs suffered setbacks and resounding defeats, even bankruptcy, yet managed to quickly stand up to make it big in their fields. Your courage to persist in the face of adversity and ability to bounce back after a temporary disappointment will assure your success. You must learn to pick yourself up and start all over again. Your persistence is the measure of the belief in yourself. Remember, if you persevere, nothing can stop you.</span></p> <span style=";font-family:arial,helvetica;font-size:85%;" > </span> <p><span style="font-size:130%;"><b><span style="color: rgb(255, 51, 0);font-family:arial,helvetica;" >10. Discipline yourself.</span></b> </span><span style=";font-family:arial,helvetica;font-size:85%;" ><span style="font-size:130%;"><b> <span style="color: rgb(0, 0, 255);"> </span> </b></span><span style="font-size:130%;">Thomas Huxley once said, "Do what you should do, when you should do it, whether you like it or not." Self-discipline is the key to success. The strength of will to force yourself to pay the price of success - doing what others don't like to do, going the extra mile, fighting and winning the lonely battle with yourself.</span></span></p><p style="font-style: italic;"><span class="mainbodyfont" style="font-size:130%;"><p><span class="mainbodyfont"><span style=";font-family:Arial,Helvetica,sans-serif;" ><span style="font-weight: bold;">by Isabel M. Isidro</span>
<span style="font-weight: bold;"> Managing Editor</span></span></span></p></span></p><p><span style=";font-family:arial,helvetica;font-size:85%;" ><span style="font-weight: bold;font-size:100%;" >The Article Resource Is: <a href="http://www.powerhomebiz.com/vol19/secrets.htm">http://www.powerhomebiz.com</a></span>
</span> </p></span></span></p></span><span class="mainbodyfont"><p></p></span>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-53615852235288394972009-04-18T00:32:00.010+02:002009-04-18T01:24:26.412+02:00Small Business Accounting Software - 7 Points to Know<img alt="Small Business Accounting Software - 7 Points to Know" src="http://ringgithit.com/images/best.gif" title="Small Business Accounting Software - 7 Points to Know" />
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<span style="font-weight: bold;font-size:180%;" >I</span>n this article we will discuss the small business accounting software like bookkeeping software and business software applications as a general, And we will divided the Article as the following :
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</p><div style="text-align: justify;">Picking small business accounting software is likely to be one of those things you don’t give any thought to until about five minutes before you need it. Hey, wait a minute, there’s different kinds? Well, how do I know which one to pick? I’ve never done this before. Fortunately, following these seven points of consideration will reliably lead to the right choice. </div><p style="text-align: justify;">(1) <strong>Scalability</strong> - Of course, you are hoping that your business is ever-growing and expanding, so you want your software to grow with you. It’s worth the time to “think big”, here - you want a software infrastructure that will have been built with expansion in mind. You might be confused when you’re first learning a new program that is built a size bigger than what you currently need, but the capability to expand will serve you better in the long run. For this reason, many businesses choose open source software running on Unix-type systems such as Linux or BSD, because it can be freely modified and improved by third parties at any time.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">(2) <strong>Support</strong> - Just about any accounting software package offer technical support when things go wrong, but you may want to consider the difference between a voice on the phone from a call center and support from someone who lives in your home town. It is often much easier to have someone locally who can come in and do things you need done. Here, the importance of an open, non-proprietary platform cannot be overstated: you don’t want to tie yourself to some company that’s going to quit supporting your software version the minute you have it installed. A local consultant who is qualified will be your best option here.</p><div style="text-align: justify;"> </div><p style="text-align: justify;"><em>Here are some extra <a target="_blank" href="http://small-business-answers.com/2006/05/21/small-business-software-sourcing-tips/">software sourcing tips</a>.</em></p><div style="text-align: justify;"> </div><p style="text-align: justify;">(3) <strong>Stability and Security</strong> - The number one target for hackers penetrating a business is the accounting software - there’s the credit card numbers, payroll, bank information, and more. For this reason, consult with the top security experts to find out which platform is the most secure. At the very least, I’d recommend Department of Defense security rating CAPP/EAL3+ or above - easily attainable by such platforms as those offered by IBM or Novell.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">(4) <strong>Best Value For Money</strong> - Well, of course you wanted to spend as little money as possible. Remember that the shelf price of software is only the beginning - if it fails, breaks, or can’t keep up with your business, the damage will far outweigh the cost. So, even though open source software is inexpensive, you should consider that it will also be more stable, expandable, and secure in the long run.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">(5) <strong>Liberty</strong> - The worst thing that can happen is to have a server full of data encoded in a patented, proprietary format by a company that now wants to squeeze some extra money out of you. You should look for the least restrictive format, end-user license agreement, per-unit licensing, and greatest overall permissiveness. In addition, you want portability. For instance, if you were to move from an AIX platform to a Solaris platform, you’d want software and a data stack that can move with you. Don’t be lulled into a sense of false security by what looks good enough for this week - you want to be in business 20 years from now, and look how computers have developed in the last twenty years.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">(6) <strong>Administration</strong> - The importance of an open platform is that it can easily cooperate with other programs and platforms. This is because no accounting program is an island - it has to talk to the printer to print reports and the server to handle the online transactions and the file system to print logs and even be integrated with your Palm Pilot or Bluetooth - remember, the global market is fast-paced, so “think mobile”.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">(7) <strong>Training</strong> - Of course, you will need employees to run this stuff, and it’s going to be easier if you find people who already know it. Doubtless, you will find more accountants are familiar with the Unix platform and its Linux, Solaris, and BSD derivatives, due to its solid penetration on related systems such as servers and point-of-sale systems, and also because IBM (International Business Machines) has a long history of being favorable to Linux.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">Here’s some software that I’ve used in the past and feel comfortable in recommending, it’s called <strong><a rel="nofollow" target="_blank" href="http://quicken.intuit.com/small-business-finance/home-business.jhtml?img=116&kbid=10104&sub=&priorityCode=3969702399">quicken</a></strong> and is highly reliable.</p>
The Article Resource Is: <a href="http://small-business-answers.com/2006/05/21/7-points-to-know-before-buying-small-business-accounting-software/">http://small-business-answers.com</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com8tag:blogger.com,1999:blog-1402397252225880514.post-62533430949682256812009-04-16T18:28:00.009+02:002009-04-18T00:35:38.830+02:00Writing Business Plans - Most Important Step for Successful Business<div style="text-align: left;" class="article_text"><div style="text-align: justify;"><span style="font-weight: bold;font-size:180%;" >I</span> would like to discuss something that every business owner needs. This is a business plan. I cannot stress enough the importance of a clear, concise, <span style="font-weight: bold;">Business Plan to :</span>
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<div style="text-align: justify;">One of the most important things to consider when <b>writing a business plan</b> is the purpose of your specific plan. There are many existing models for how to write business plans that will help you successfully compose your own. Each business requires a plan. Why? Try sailing a ship without knowing where you are going, then ask me that again. If you say a general destination, Europe, try docking that ship. You need a specific destination and a route to get there to have a successful business.</div><p style="text-align: justify;"> Many entrepreneurs write research reports instead of strategic business plans. Yet, many entrepreneurs skip these all together, which is why their plans never get implemented. If you're writing a business plan, there's nothing better than seeing examples of plans to help you work through yours. It is not difficult to write a business plan or executive summary that looks good enough to get an initial investor meeting, but many business plans do not have the depth and rigor of real business planning and so do not get funded. </p><p style="text-align: justify;"> Generally speaking, business plans have the following sections: executive summary and mission statement, your goals, your marketing proposal, how you plan to achieve your goals, your company structure, your financial statements, and your growth timeline. Before you sit down to actually <b>write a business plan</b> for your company, make an outline of exactly what you want to cover. It's some of the most valuable work you can do when starting up a business, which is why everyone from banks to venture capital companies request detailed business plans before they will even consider your business. Recall the ship metaphor, why would someone invest in a ship or cargo that the captain didn't know where he was going.</p><p style="text-align: justify;"> Business plans are detailed documents that present a strategic approach to a business operation. It is a proven fact that <i>people who create and write business plans are more successful.</i> Discuss advertising, public relations communications, trade shows, telemarketing, direct mail or any other market and sales plans you intend to employ in promoting and selling your product. Develop a detailed set of financial forecasts to demonstrate to your investors that you have thought out the financial implications of your company's growth plans. This process allows you to plan, assign, report and track tasks, manage personnel, keep everyone informed, manage appointments, company workflow, projects and so on. Although business plans vary from each other depending on the nature, products and local factors, the general outline is same. Each plan includes these main components like Executive Summary, Description of Company, Description of Products or the Services offered, Market Analysis, forecasts and future planning, Business Strategy and its Implementation, information regarding Management staff and sustainable Financial Plan. There are plenty of books and e-courses and business plan software that have forms and outlines, others include sample business plans to review.</p><p style="text-align: justify;"> The process of writing the business plan is often just as valuable as the plan itself. <b>Writing a business plan</b> should be one of the first things you do once you've decided to start a business. Since, writing a business plan is the road map of a business's future, it is necessary to create it to finance and support the business. Prepare the business plan outline before researching and writing a business plan. Spend plenty of time talking with friends and associates convincing them about the competitive advantage of your business. Listen to their feedback. Take mental notes on what areas are fuzzy in your idea and look into those. This will make it easier for you to work through your outline step by step. You don't want to get so overwhelmed writing your plan that you end up hating the whole project. </p><p style="text-align: justify;"> <b>Writing a business plan</b> is significantly different from other types of writing. The hardest part about writing a business plan is getting the energy to get started. Business plan writing forms may vary, because there is no fixed content for a business plan. As I've said before, outline your business plan first, then write it after consulting widely with all players involved and firming up your vision. While simplicity enhances your communication with others, specific writing can help you to lay stress on particular areas that are important to your business plan. Whether you're planning a small business, or a large venture, one of these is to put your ideas into writing and write a business plan. The process of researching and writing it may even challenge your existing beliefs about the business and where it is going. </p><p style="text-align: justify;"> Here are some important things to include, if I have not mentioned them before. Include in the management section the names and backgrounds of management team members. Include activities targeted to current clients, your target market, and new business outside your target market. Include management responsibilities with deadlines and specific budgets. Next, try to include as much as information about the company, customers market, competition, potential threats, and products or services. All <b>good business plans</b> include a section that lays out the benchmarks you'll use in deciding to call it quits. Highlight the key points and include the return on investment or loan payback requirements. Although you'll want to include lots of detail, keep it simple and easy to understand. Every business plan should include a description of how the business will operate. You need to include details of who your target audience is, where your business will fit in the existing market and who your main competitors are. It also includes details of how you'll go about selling your product or service and how you'll structure the pricing.</p><p style="text-align: justify;"> Business planning is not easy but by following these critical steps to <b>writing a business plan,</b> you will ensure your business has a chance at funding and success in the future. It is not difficult to write a business plan or executive summary. Create your outline then go through each item step by step. When you don't know an answer, mark that area in bold and move on so you can keep up the flow. Then, go out and find the answers, ask questions, make determinations when you have written your first draft. This will help you stay focused and move forward. Get clear answers or information about each piece of your plan, then rewrite. Remember, business planning is the process of <b>planning ahead</b> for success and then <b>executing the plan.</b> Whether you're planning a small business, or a large venture, the way to succeed is to put your ideas into writing and write a business plan. Then follow your plan. Don't just put it on the shelf and forget about it. Keep it working as your business grows. </p><p>===================================
</p><p>The Article Source Is: <a href="http://www.goarticles.com/cgi-bin/showa.cgi?C=1542309">http://www.goarticles.com</a>
</p></div>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-50518945781625728582009-04-02T23:36:00.021+02:002009-11-30T01:14:08.457+02:00Is There Life After Bankruptcy? Sure<span style="font-weight: bold;font-size:100%;" ><strong>H</strong></span><span style="font-weight: bold;">ow to rebuild business credit and get loans after declaring bankruptcy.</span>
<strong><em>By Morin Bishop</em></strong>
<div align="justify">Declaring bankruptcy is no picnic, and recovering your credit rating after bankruptcy isn't easy either. But it can be done. Just ask Mike Palladino. The 35 year-old electrician from Quincy, Massachusetts, filed for Chapter 7 bankruptcy in 2002, well before the 2005 bankruptcy law kicked in making it harder for people to discharge debts. Palladino, who ran his own business as a general contractor, was injured when a power tool mangled his hand. Several surgeries and months of recuperation saved the hand, but his business went south, and he ended up maxing out his credit cards to pay for living expenses. "I didn't want to declare bankruptcy," he says, "but I really had no choice. There was a long period when just I wasn't making any money and was up to my neck in bills."The bankruptcy discharged Palladino's credit card balances and many of the debts that he'd run up trying to keep his struggling business afloat, though he still had to pay the IRS for taxes he'd been unable to pay during his illness. But his credit was in tatters and his prospects for rebuilding his contracting business looked bleak. "A contractor works on credit," he explains. "You need it to buy materials and pay workers and subcontractors it's hard to do that when no one is willing to let you borrow from them." Palladino's problem was one familiar to anyone who has declared bankruptcy. In a time when one's credit rating is almost a public validation and the gateway to coveted possessions like credit cards, car loans and mortgages a bankruptcy can be like a ghost haunting your credit history and depriving you of the financial means to improve your life.But even a bankruptcy the ultimate black mark on your credit isn't an insurmountable obstacle to financial recovery. With apologies to F. Scott Fitzgerald, there are second acts in American life, and most definitely in credit ratings. </div>
<strong style="color: rgb(255, 102, 0);"><em>Small Steps First:</em></strong>
<div align="justify"><strong></strong>Pay Every Bill On Time"You really don't have any leeway here," says Jim Shea, a Baltimore based CPA and financial planner. "You are trying to show that your prior financial missteps are firmly behind you and the best way to do that is to meet every obligation utility, cable, cell phone, rent bill, etc. on time." Not every utility or cable company reports late payments to credit reporting companies, Shea notes, but some do. So there's no reason to risk anything negative ending up on your credit report.
Shea says that by paying your bills on time you demonstrate a renewed image of responsibility and trustworthiness. Letting bills slide, on the other hand, tells potential lenders that you aren't serious about financial responsibility or that you may still have financial problems you haven't addressed. "If you are trying to rebuild your credit, anything that makes you seem still unreliable works against you," Shea says. "And nothing works harder against you than repeated late payments on your credit report, especially in the wake of a bankruptcy."</div><div align="justify"> </div><strong style="color: rgb(255, 102, 0);"><em>1- Obtain a Secured Credit Card:</em></strong>
<div align="justify">You might think that after a bankruptcy particularly one caused by credit debts it would be a good idea to avoid credit altogether. But that would be exactly wrong. In fact, to repair a damaged credit history, you need to replace it with a good credit history. Of course, lenders are naturally wary of extending credit to someone whose credit history suggests the possibility that they won't be repaid. In order to rebuild your credit, you may have to convince lenders that you can be trusted, and that may require handing over a deposit before credit will be granted.
A secured credit card is a credit account whose limit is backed up by a deposit. That is, you deposit, say $500, at your bank and they provide you with a credit card with a spending limit of $500. In almost all other respects, a secured credit card functions like a normal, unsecured credit card; you can make charges on the card up to the maximum spending limit (usually the amount of the deposit) and you repay the balance, which is subject to interest charges, with periodic (usually monthly) payments. The deposit protects the bank in the event you cannot repay the money charged on the card. In many cases, a secured credit card may be the only line of credit obtainable in the wake of bankruptcy, but if used wisely keeping spending in check and making payments on the card's balance on time it can help generate a new track record of financial responsibility.
<span style="font-weight: bold; color: rgb(255, 102, 0); font-style: italic;">2- Why it is good:</span>
Secured credit cards are good way of creating a new, post bankruptcy history of good creditworthiness, says Gerri Detweiler, author of The Ultimate Credit Handbook, but they often come with strings. "Even though the line of credit is secured by a deposit, you're still a bad risk in the eyes of the bank, and so secured cards usually come with higher interest rates," she explains. "So you have to be careful about not incurring penalties like late payments, because the fees and interest payments can eat up a portion of the available credit."
Detweiler advises shopping around to get the lowest fees and rates on secured cards. It's also important to make certain that the bank reports the secured credit card's usage to the major credit reporting bureaus. "Using the card is useless if it doesn't reflect positively on your credit score," she says. Since not every bank reports secured card usage, it's worth asking.
A secured line of credit can be a major step on your path back to creditworthiness. "Generally, people who have a secured credit card say that within seven or eight months they start receiving new offers for unsecured credit cards," Detweiler says.</div><div align="center">to be continuing in <strong><em>part 2</em></strong></div><span style="font-weight: bold;">The Source is: </span><a style="font-weight: bold;" href="http://smallbusinessonlinecommunity.bankofamerica.com/blogs/LoansAndLinesOfCredit/2007/11/19/is-there-life-after-bankruptcy">http://smallbusinessonlinecommunity.bankofamerica.com</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-79460617454426214982009-01-24T14:27:00.002+02:002009-01-24T14:32:19.240+02:00Small Business Factoring - Build Your Future Today !<div style="text-align: justify;" id="body"><p><span style="font-size:100%;"><span style="font-weight: bold;font-size:180%;" >T</span>he one thing every small business needs to protect itself, and further its growth as a company is, small business factoring. If you want to ensure that your company will get off the ground in a hurry, then you have to include this product in your day to day operations.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">You might be wondering what is factoring?</span> How is it going to help me? Factoring is an instant access to the accounts receivable. It is a source of credit line from working capital that allows your personal assets to not be compromised.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">The benefits</span> of small business factoring is simple. You are not sitting around waiting to get paid. This also means that you can take on new business because you will have the cash available to do so.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">Type of business's</span> that will benefit from small business factoring are industries like, transportation companies. Business like this that are supporting drivers, taking care of vehicles, and waiting on invoice payments to be brought back.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">Other business's would</span> include the logging industry, medical fields, construction, and marketing. Any type of an industry where you are paid upon the finished product. That is where factoring would be the most beneficial for you.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">Most small business factoring</span> companies allow for special reports so that you can view the progress being made. They can show you the outstanding accounts. Those that have and have not been paid. Also, the money that is available to you for use. As your business grows so will the funding for your small business.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">Some small business's might be</span> put off by the idea of having to spend more money on a factoring program. There are factoring companies out there right for you.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">Many offer no start up fee</span>, low rates, and an easy application fee. The very basics you need to get yourself moving in the right direction. This can be crucial when every dollar counts in a new business. As your business will grow, then you might take on additional features that factoring can offer, like cash for expansion, or payroll.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">Let small business factoring</span> put you in the competitive market. Don't miss out on a customer, because you don't have the money to support them. This could be just what your company needs to take off.</span></p><p><span style="font-size:100%;"><span style="font-weight: bold;">Get on-line</span> and start searching for your small business factoring needs. You will be on your way to a successful thriving business.</span></p><p><span style="font-size:100%;"><span style="font-size:130%;"><span style="font-weight: bold;">Article <span style="font-weight: bold;"><span style="font-weight: bold;">Source is : <a href="http://ezinearticles.com/?Small-Business-Factoring---Build-Your-Future-Today%21&id=1772288">http://ezinearticles.com</a></span></span></span></span><span style="font-family: Arial,Helvetica; font-size: 130%;"><span style="font-weight: bold;"></span></span></span></p></div>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com1tag:blogger.com,1999:blog-1402397252225880514.post-31665060964402306452009-01-24T14:03:00.004+02:002009-01-24T14:25:21.898+02:00What's The Next Move To Your Small Business ?<p style="text-align: justify;"><span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">O</span>k, your business has finally reached a point where the basement is no longer an adequate office and family room an acceptable conference facility. <span style="font-weight: bold;">What's your next move?</span></span></p><div style="text-align: justify;"> <!--webbot bot="Include" U-Include="../includes/telephone-ringcentral-center.htm" TAG="BODY" startspan --> <!-- Begin - Site: Default Site Zone: Telephone Articles - above fold --> <script language="javascript" type="text/javascript"> <!-- var browName = navigator.appName; var SiteID = 1; var ZoneID = 181; var browDateTime = (new Date()).getTime(); if (browName=='Netscape') { document.write('<s'+'cript uage="jav' + 'ascript" src="http://www.businessknowhow.com/banman/a.aspx?ZoneID=' + ZoneID + '&Task=Get&IFR=False&Browser=NETSCAPE4&PageID=32852&SiteID=' + SiteID + '&Random=' + browDateTime + '">'); document.write('</'+'scr'+'ipt>'); } if (browName!='Netscape') { document.write('<s'+'cript uage="jav' + 'ascript" src="http://www.businessknowhow.com/banman/a.aspx?ZoneID=' + ZoneID + '&Task=Get&IFR=False&PageID=32852&SiteID=' + SiteID + '&Random=' + browDateTime + '">'); document.write('</'+'scr'+'ipt>'); } // --> </script><script language="javascript" src="http://www.businessknowhow.com/banman/a.aspx?ZoneID=181&Task=Get&IFR=False&Browser=NETSCAPE4&PageID=32852&SiteID=1&Random=1232761303933"></script><noscript></noscript> <!-- End - Site: Default Site Zone: Telephone Articles - above fold --> <!--webbot bot="Include" i-checksum="55470" endspan --></div><p style="text-align: justify;"> <span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">Many small business start-ups</span> begin just like this. At some point it's time to move out of the house and grow up just like the others. </span></p><div style="text-align: justify;"> </div><p style="text-align: justify;"><span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">Finding office space</span> can be a tedious and frustrating task especially if you don't have a well thought out plan of options. Location is a factor that should be high on your list. If you have customers coming to your place of business, a convenient, professional location, with ample parking is crucial. The location should also be convenient for you as well. You certainly don't want to locate so far away where it becomes a hassle getting to your own place of business.</span></p><div style="text-align: justify;"> <span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">The next thing is</span> to determine how much square footage you need. If your business has grown considerably within the last year or you plan to add staff, you may want to double your square footage to allow for additional growth. Decide how to divide the space. Do you need several offices, conference room, storage, manufacturing, and computer equipment areas? Other issues to consider in renting space are who pays the utilities, real estate taxes (some landlords tack taxes onto rental fees), and maintenance. Some landlords will offer build-to-suit options, constructing your design space within their building. The cost of construction is typically included in the monthly rent over the lease period. And, before you sign on the dotted line, ask whether you'll be able to get high speed Internet access in your preferred location. Don't ask the landlord. Call the providers and find out. Lower cost cable and DSL aren't available in parts of the country yet, for instance.</span><span style="font-size:130%;">
</span></div><p style="text-align: justify;"><span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">If you are</span> don't expect aren't sure renting space will work out, or if you need other support services, you may want to consider relocating to an executive suite. Executive suites are typically housed in an office complex, and comprised of many small businesses using the same resources. Executive suites are private offices, but share conference facilities, receptionists, and provide personalized telephone answering. Many executive suites provide administrative services, accounting, faxing, postal services, and libraries for an additional fee. If you don't want to hassle with hiring and training secretarial and administrative personnel, an executive suite may be your answer.</span></p><div style="text-align: justify;"> </div><p style="text-align: justify;"><span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">If fast expecting</span> rapid growth, however, you may want to consult with a qualified commercial real estate associate about space requirements, and a space planner to give you assistance with office design specifications.</span></p><div style="text-align: justify;"> </div><p style="text-align: justify;"><span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">Another avenue to explore</span> in your office relocation, is to look into the business incubator concept. A business incubator is similar to an executive suite, however the incubator has a vested interest in the success of your business. The incubator helps start-ups when they're in real need of expertise by offering management assistance, financing, and marketing and technical support. The National Business Incubator Association (www.nbia.org) promotes the importance of incubating successful businesses, and new technologies. Leases are generally flexible, and space expandable to meet a growing concern. Typically, two to three years after going through incubation, the business is freestanding and financially stable. The NBIA also has a link to Member Incubators on their site if you think this may be a suitable option. One caveat: some incubators take a piece of your business in exchange for providing low cost rent and other help in your startup phase. In those cases you need to consider whether it's worth giving up a percent of your company in exchange for their help.</span></p><div style="text-align: justify;"> </div><p style="text-align: justify;"><span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">Whichever option you take</span> in relocating your office, research and plan your move carefully. Consult with commercial real estate professionals, your business associates, and seek advice from your local Chamber of Commerce. Taking your business to this next step can be nerve-racking, but fun and exciting.
</span></p><p><span style=";font-family:Arial,Helvetica;font-size:130%;" ><span style="font-weight: bold;">The Source is</span> : <a href="http://www.businessknowhow.com/manage/officespace.htm">http://www.businessknowhow.com/manage/officespace.htm</a>
</span></p>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-71860342766391750472008-11-12T11:50:00.000+02:002009-11-30T01:08:46.849+02:00Can You Be Your Own Boss?<div style="text-align: justify;"><span class="cb_style"> <b><span id="cbArticle_lblByLine"></span></b><span id="cbArticle_lblContent"><span style="font-weight: bold;font-size:180%;" >M</span>any of us fantasize about owning our own companies. Nearly one million new businesses are launched each year, but more than 85 percent will close within five years. There are some key indicators of who will be most effective as owners. Take this quiz to help you determine if you have the burning desire, discipline and resources to become your own boss.</span></span>
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<b>Are you a self-starter?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">It will be up to you, not someone else, to develop the business, organize the projects, manage your time and follow through on details.</span></span>
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<b>Can you handle the uncertain financial risk?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">Businesses all have cycles, the ebbs and flows in profitability. Once it's started you'll have overhead and operational expenses that must be met before you get paid.</span></span>
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<b>Do you have good business skills?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">You must attract customers. New and repeat customers are the lifeblood of your business. You must possess or learn these skills -- accounting, business planning, operations, sales, marketing and customer service -- to survive and succeed.</span></span>
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<b>Do you have the stamina needed to run a business?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">Business ownership is a lot of work. Can you face 12-hour work days, six or seven days a week, every week?</span></span>
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<b>Are you motivated by achievement?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">Many entrepreneurs get great joy out of the daily "wins" they get from doing business. They find it's a competitive game and satisfying way to fulfill their instinct to achieve. They have fun doing it. These people have a passion and driving desire to come in first. They are doers and want to derive benefits from their efforts and labor. They are unlikely to get "burned out" or worn down by carrying all the responsibilities of the business on their shoulders.</span></span>
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<b>Are you a good decision-maker? </b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">Business owners are required to make decisions constantly, quickly, under pressure and independently. Do you research and examine all options on important decisions to minimize your risk, but then decide and go forward?</span></span>
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<b>How well do you handle different personalities?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers and professionals such as lawyers, accountants or graphic artists. Your ability to successfully deal with demanding clients, unreliable vendors or cranky staff people in order to benefit your business will directly impact your success.</span></span>
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<b>How will the business affect your family?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">It's hard to balance work and family demands during the first few years after starting a new business. There may also be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk. Can your family deal with the challenges business ownership requires? Although many entrepreneurs go on to make large incomes, the "lean years" are a necessary part of the evolution and business growth cycle. Equally important to consider are the many job perks -- paid vacations, sick days, medical and dental insurance, stock options, cars, health club memberships -- that disappear when you own the company. Think about the extra costs you will now incur.</span></span>
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<b>How will you deal with the isolation?</b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">Once you go off on your own, you'll be just that -- alone. Can you deal with being isolated? Will you miss the status, respect and collegial connections that you had while working for an employer other than yourself? Don't underestimate this -- it's the reason many consultants and service business owners close their own operations and re-enter the corporate world. </span></span>
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<b>Can you go two or three years without an income? </b>
</span></span><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">List start-up resources to buy/start and run your business. Note sales and break even points as well as profit projections. Be conservative in your estimates on how fast you'll be able to turn a profit. Develop family and business budgets that support you and your family while your business is beginning to grow. </span></span>
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<span class="cb_style"><span id="cbArticle_lblContent"></span></span></div><div style="text-align: justify;"><span class="cb_style"><span id="cbArticle_lblContent">Robin Ryan has appeared on the Dr. Phil Show, Oprah, NBC Nightly News with Tom Brokaw, CNN, CNBC and is considered America's top career coach. She is the best-selling author of: "60 Seconds and You're Hired!;" "Winning Resumes;" "Winning Cover Letters" and "What to Do with the Rest of Your Life." She's the creator of the highly acclaimed audio training program Interview Advantage and The DreamMaker. To purchase her books and audio training programs go to </span></span><span class="cb_style"><span id="cbArticle_lblContent">www.robinryan.com. <a href="http://www.robinryan.com/newsletter.htm">Sign up here for Robin Ryan's eNewsletter</a>.</span></span>
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Article Source: <a href="http://www.careerbuilder.com/Article/CB-715-Changing-Jobs-Can-You-Be-Your-Own-Boss/?ArticleID=715&cbRecursionCnt=1&cbsid=520d03317c1a4c1bba4f51ca21fe88d9-279780236-VH-4&ns_siteid=ns_us_g_%22be_your_own_boss%22">http://www.careerbuilder.com</a>
</span> </span>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0tag:blogger.com,1999:blog-1402397252225880514.post-73111202332705704252008-11-11T11:17:00.000+02:002008-11-11T11:33:12.699+02:00How to Perform SWOT Analysis: The Simple Way<p><span style="font-weight: bold;font-size:180%;" > A</span> valuable step in your situational analysis is assessing your firm’s strengths, weaknesses, market opportunities, and threats through a SWOT analysis. This is a very simple process that can offer powerful insight into the potential and critical issues affecting a venture.</p> <p><img src="http://www.bplans.co.uk/common/gifs/swot.gif" alt="SWOT Chart" border="0" height="243" width="350" /></p> <p>The SWOT analysis begins by conducting a review of internal strengths and weaknesses in your organisation. You will then note the external opportunities and threats that may affect the organisation based on your market and the overall environment. Don’t be concerned about elaborating on these topics at this stage; bullet points may be the best way to begin. Capture the factors you believe are relevant in each of the four areas. You will want to review what you have noted here as you work through your marketing plan.</p> <p>The primary purpose of the SWOT analysis is to identify and assign each significant factor, positive and negative, to one of the four categories, allowing you to take an objective look at your business. The SWOT analysis will be a useful tool in developing and confirming your goals and your marketing strategy.</p> <p>Some experts suggest that you first consider outlining the external opportunities and threats before the strengths and weaknesses. Marketing Plan Pro’s EasyPlan Wizard will allow you to complete your SWOT analysis in whatever order works best for you. In either situation, you will want to review all four areas in detail.</p> <p><strong>Strengths</strong></p> <p>Strengths describe the positive attributes,tangible and intangible attributes, internal to your organisation. They are within your control. What do you do well? What resources do you have? What advantages do you have over your competition?</p> <p>You may want to evaluate your strengths by area, such as marketing, finance, manufacturing, and organisational structure. Strengths include the positive attributes of the people involved in the business, including their knowledge, backgrounds, education, credentials, contacts, reputations, or the skills they bring. Strengths also include tangible assets such as available capital, equipment, credit, established customers, existing channels of distribution, copyrighted materials, patents, information and processing systems, and other valuable resources within the business.</p> <p>Strengths capture the positive aspects internal to your business that add value or offer you a competitive advantage. This is your opportunity to remind yourself of the value existing within your business.</p> <p><strong>Weaknesses</strong></p> <p>Note the weaknesses within your business. Weaknesses are factors that are within your control that detract from your ability to obtain or maintain a competitive edge. Which areas might you improve?</p> <p>Weaknesses might include lack of expertise, limited resources, lack of access to skills or technology, inferior service offerings, or the poor location of your business. These are factors that are under your control, but for a variety of reasons, are in need of improvement to effectively accomplish your marketing objectives.</p> <p>Weaknesses capture the negative aspects internal to your business that detract from the value you offer, or place you at a competitive disadvantage. These are areas you need to enhance in order to compete with your best competitor. The more accurately you identify your weaknesses, the more valuable the SWOT will be for your assessment.</p> <p><strong>Opportunities</strong></p> <p>Opportunities assess the external attractive factors that represent the reason for your business to exist and prosper. These are external to your business. What opportunities exist in your market, or in the environment, from which you hope to benefit?</p> <p>These opportunities reflect the potential you can realise through implementing your marketing strategies. Opportunities may be the result of market growth, lifestyle changes, resolution of problems associated with current situations, positive market perceptions about your business, or the ability to offer greater value that will create a demand for your services. If it is relevant, place timeframes around the opportunities. Does it represent an ongoing opportunity, or is it a window of opportunity? How critical is your timing?</p> <p>Opportunities are external to your business. If you have identified “opportunities” that are internal to the organisation and within your control, you will want to classify them as strengths.</p> <p><strong>Threats</strong></p> <p>What factors are potential threats to your business? Threats include factors beyond your control that could place your marketing strategy, or the business itself, at risk. These are also external –you have no control over them, but you may benefit by having contingency plans to address them if they should occur.</p><p>A threat is a challenge created by an unfavourable trend or development that may lead to deteriorating revenues or profits. Competition – existing or potential – is always a threat. Other threats may include intolerable price increases by suppliers, governmental regulation, economic downturns, devastating media or press coverage, a shift in consumer behaviour that reduces your sales, or the introduction of a “leap-frog” technology that may make your products, equipment, or services obsolete. What situations might threaten your marketing efforts? Get your worst fears on the table. Part of this list may be speculative in nature, and still add value to your SWOT analysis.</p> <p>It may be valuable to classify your threats according to their “seriousness” and “probability of occurrence.”</p> <p>The better you are at identifying potential threats, the more likely you can position yourself to proactively plan for and respond to them. You will be looking back at these threats when you consider your contingency plans.</p> <p><strong>The implications</strong></p> <p>The internal strengths and weaknesses, compared to the external opportunities and threats, can offer additional insight into the condition and potential of the business. How can you use the strengths to better take advantage of the opportunities ahead and minimize the harm that threats may introduce if they become a reality? How can weaknesses be minimised or eliminated? The true value of the SWOT analysis is in bringing this information together, to assess the most promising opportunities, and the most crucial issues.</p> <p><strong>An example</strong></p> <p>AMT is a computer store in a medium-sized market. Lately it has suffered through a steady business decline, caused mainly by increasing competition from larger office products stores with national brand names. The following is the SWOT analysis included in its marketing plan.</p> <p><img src="http://www.bplans.co.uk/common/gifs/swot.gif" alt="SWOT Chart" border="0" height="243" width="350" /></p> <p><strong>Strengths</strong></p> <ol><li> Knowledge. Our competitors are retailers, pushing boxes. We know systems, networks, connectivity, programming, all the Value Added Resellers (VARs), and data management.</li><li> Relationship selling. We get to know our customers, one by one. Our direct sales force maintains a relationship.</li><li> History. We’ve been in our town forever. We have the loyalty of customers and vendors. We are local.</li></ol> <p><strong>Weaknesses</strong></p> <ol><li> Costs. The chain stores have better economics. Their per-unit costs of selling are quite low. They aren’t offering what we offer in terms of knowledgeable selling, but their cost per square foot and per pound of sales are much lower.</li><li> Price and volume. The major stores pushing boxes can afford to sell for less. Their component costs are less and they benefit from volume buying with the main vendors.</li><li> Brand power. Take one look at their full-page advertising, in colour in the Sunday paper. We can’t match that. We don’t have the national name that flows into national advertising.</li></ol> <p><strong>Opportunities</strong></p> <ol><li> Local area networks. LANs are becoming commonplace in small businesses, and even in home offices. Businesses today assume LANs are part of normal office work. This is an opportunity for us because LANs are much more knowledge and service intensive than the standard off-the-shelf PC.</li><li> The Internet. The increasing opportunities of the Internet offer us another area of strength in comparison to the box-on-the-shelf major chain stores. Our customers want more help with the Internet and we are in a better position to give it to them.</li><li> Training. The major stores don’t provide training, but as systems become more complicated with LAN and Internet usage, training is more in demand. This is particularly true of our main target markets.</li><li> Service. As our target market needs more service, our competitors are less likely than ever to provide it. Their business model doesn’t include service, just selling the boxes.</li></ol> <p><strong>Threats</strong></p> <ol><li> The computer as appliance. Volume buying and selling of computers as products in boxes, supposedly not needing support, training, connectivity services, etc. As people think of the computer in those terms, they think they need our service orientation less.</li><li> The larger price-oriented store. When they have huge advertisements of low prices in the newspaper, our customers think we are not giving them good value.</li></ol>Article Source: <a href="http://articles.bplans.co.uk/index.php/business-articles/marketing-a-business/how-to-perform-swot-analysis/">http://articles.bplans.co.uk</a>Accountanthttp://www.blogger.com/profile/11148337159390578550noreply@blogger.com0