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Getting Big: For Small Businesses

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There’s no fixed technique when it comes to being wealthy and there are no hacks either. Money can come fast or slow, in bulk or in pennies, but it’s not about how the money gets to you – it’s about how you ask it to come over and let it stay for long. Honestly, there are easy money-making schemes out there, but the ‘making’ part isn’t really what you have to focus on but the gray area of ‘saving’.

Cutting to the chase, small business owners often are skeptical when it comes to their business size, thanks to tons of misconceptions out there about high-flying industries and classy professions being the only ones who get bigger by already being big from the start. Honestly and simply speaking, getting rich is an internal process that starts with financial discipline and management.  To learn that, here are some helpful tips:

Make Your 24 Hours Count

Make time by getting up early. This way, you’d have several uninterrupted hours for planning ahead, going through your business’ necessary assessments, and preparing for the day’s duties. Contrary to clocking in on time and rapidly facing the storm of responsibilities, slow mornings can help you fine-tune how you’re going to deal with your upcoming circumstances. If you’re a night owl, boost your creativity and productivity by working while others are not. It just comes down to giving yourself the right headspace to better outsmart your workload, not to be stressed by it.

Get Rich By Living Like You’re Poor

Live below your means to save up for the important stuff. Many rich people spend less than they are earning to make the most out of their money. Don’t be ashamed to get yourself a bargain. Before spending on something, ask yourself if it’s something you really need or just something you fancy for the short-term. Remember that the trends of today can fleet in value anytime and you don’t want to be splurging your hard-earned money on something that would sell for half its price in a couple months’ time.

Accumulate enough earnings, invest, and let it grow. It’s this concept of letting your money work for you that will get you a head start in the pathway to wealth. Get rich before spending like you are one and by the time your savings reach your desired threshold, spend wisely to reward yourself.

Take Calculated Risks

In the business, it’s okay to settle if it’s the safest bet, but make sure you’re not letting huge opportunities slip by. When presented with possibilities accompanied by the paranoia of the unknown, it’s not always necessary to say yes, but it would do a whole lot of change to study the prospect.

PODS founder Pete Warhurst used to be a man of the traditional storage business when the idea of portable storage units popped in his mind. He shared, “You’ve come up with an idea, and your gut and instincts tell you it’s a good idea, be willing to take the risk. But monitor the decisions you make and be willing to admit when you made a bad one and change it and fix it.” Selling his company meant making a billion-dollar business out of it. Venture out but keep your eyes wide open.

Learn Taxes & Investments

Expounding the notion of letting your money work for you, learn to legally take advantage of tax reduction strategies and invest in the right programs. Tax-deferred investments, such as Individual Retirement Accounts or 401(K) plans are claimed by wealthy people as ideal instruments. As a business owner, you can also take on a Simplified Employee Pension (SEP) or Savings Incentive Match Plan for Employees (SIMPLE) plans.

Educate yourself on the power of compound annual growth rates to grow even the most modest 401(K).

Trust The Slow Process

Getting rich doesn’t happen overnight, and the arguments of inheritance and lottery winnings aren’t valid here as quick money isn’t an indicator of lifetime wealth. As early as you can, learn the magic of investment (and patience). Set a financial goal and stick to it – whether it’s saving a certain amount every week or investing a rate yearly. It’s never too late as long as you work well with time. One study by Ramsey Solutions claimed that nearly three-fourths of millionaires took 28 years to attain a 7-figure net worth, making them rich at the age of 55 or older.

Don’t Splurge On The First Step

In picking a business, go for those in the industry with low operating costs but emit a great profit potential. Unless you have an outside investment for those with high operating costs, choose humble beginnings with hopeful futures. Although you’d want a business to profit from as instantaneously as possible, you wouldn’t want to boast a name with empty pockets. Ease it out by picking a simple business and planning everyday on growing it.

Firmly Effectuate Your Business Culture

Albeit considered a ‘small’ business, it’s inevitable for it to be costly in the long run. When equipment starts operating inefficiently due to missed checkups and premises drop in the list of priorities, profit, too, could go down the drain. To prevent this, always keep an eye on your business’ details. This doesn’t only apply to the concrete details but also to the unseen customer impressions, product and service duplications, product reputation, and the dependability of your suppliers.

As the leader, make a great mentor out of yourself by letting your employees take pride in your well-run business. Practice what your business preaches and regularly check on the culture’s effectuation.

Mind Your Employees

As salaries are part of your business budget, make sure you’re allotting enough to give justice to your employees’ workload. Remember that the business isn’t going to help you if the people that manage it aren’t happy.  Foresee hidden expenses from employee turnover and customer dissatisfaction caused by poor employee morale by letting your team know they are the company’s assets. When they take pride in the job, they can lead the business, themselves, and yourself to wealth.

Give Frugality A Spot In Your Business Culture

One study says that 93% of rich people stick to their business’ set budgets, and this has shown significant impacts to their net incomes.  Before taking on any business expenditure, consider its recurrence. A $10/month bill would seem harmless at present but if it charges for years, the collective amount can present how much of your earnings the bill eats up. If it’s something you’re certain you’d be using in the long run, like external services or software tools, snatch the annual commitment instead. Most times, it’s those annual charges that hold the most discounts – just make sure you’re always scoring a great deal by weighing your options. Additionally, if you have software subscriptions that charge monthly but don’t necessarily do much in the business, cancel them. Periodically review your credit card statements and financial accounts to see which charges should be gotten rid of.

Establish frugality in your business culture to let everyone involved scrutinize every single minute expense and to educate them on how to smartly cover those expenditures.

Regularly Collect Receivables

You can be too hardwired to the job but still end up with insufficient profits. One of your biggest barricades to getting rich is your failure to collect money owed to you. Design an organized system that monitors the invoices sent out to clients. When waiting for months before getting paid becomes a habit, slashing your personal finances to shoulder charges will soon take a toll on the business.

Track your Days Sales Outstanding (DSO) to determine the time it takes to collect invoices. Well-run companies have a DSO average collection time of under 30 days. If it reaches 60 days or longer, expect poorer performance (industry-variable). 

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Running The Family Business: How To Avoid A Sequel Fallacy

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Running a business is hard. But running a family business poses a few more challenges. Several family-run establishments crumble because they fail to see that change must be done and what kind of changes are needed. 

The next generation is so focused on getting the position they forget what it means to manage the business. They never go tangent to what they saw growing up. In their minds, what worked before will work now. So why change? Both the predecessor and the successor gloss over the facts that they are different from one another, they possess different traits from one another. They grew under different circumstances with different experiences. They also miss the idea that times are changing.

When the enterprise collapses because both parties presume that the family business sequels don’t need to understand the business environment and the position he/she is getting into, that is called a “Sequel Fallacy.” To secure a successful succession plan and avoid a Sequel Fallacy, there are some things to consider.

How To Avoid A Sequel Fallacy

A failed family business means more than just losing an establishment. Relationships are lost, and names are sullied. What needs to be understood that running it is not a one-person job. Connections and open-minds are vital when running a family business.

Understand The Change

Things change and become more complicated when more people are involved. Families are always getting bigger, which means more effort must be exerted to keep the business afloat. Efforts must also then be used to understand the differences among members. When that is done, you can have a conversation with the members to see how diversity will contribute to the future.

Consider Outside Help

You can learn from other businesses who went through a similar situation and remained unbeaten. Getting insights from them will help you to understand what to do and what not to do. Even those who do not go through what you did can give some advice as to how to handle the situation.

Open Your Mind

Although past actions lead to the establishment’s success, being open to change will significantly benefit the current business, as well. You can learn from tradition and let it guide you, but do not let it strictly dictate what you should do. There is a difference between disrespecting tradition and taking a new path to benefit the business.

Take Time To Make Succession Decisions

Most of the time, the older generation have a set person in mind to take over, usually the eldest of the children. But this brings some problems. It can put pressure on both parties. It can also ignore the potential of other family members. Create a plan that can develop over time. This will make sure that the successor is ready and deserving.

Talk About The Future

It takes time to create a good succession plan. Everyone, both the old and new generation, should openly talk about their views, procedures, and problems. Talk about what about the past should be repeated and avoided. Doing this will not only create a healthy atmosphere but will also give the next generation a guide to what to do.

The Bottom Line

Create a succession plan that acknowledges the differences between each individual. Be prepared for and open to change. Understanding these will benefit your business and make it stronger and better.

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What It Takes To Start A Business & Be A Successful Entrepreneur

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More and more Americans want to be entrepreneurs and be their own bosses. About 24 million individuals aim to achieve this goal by 2021. However, a majority of these people are not fully aware of what they are getting themselves into. It seems that budding entrepreneurs have expectations that are too high and quite unrealistic. 

A recent study revealed that people who want to be entrepreneurs think they’re going to achieve a better work-life balance when they become business owners. The assumption is that running a business is less stressful. They also expect that they’ll be earning more money and will be more stable financially. 

While such things may happen to some, it’s not going to be easy for many. If you’re planning to start a business, it’s important to be cautious because there are going to be a lot of challenges along the way. The reality could be that you’re going to need to work much harder and you may not be able to get what you want from it immediately. 

Having a business means you’re your own boss. That alone makes being an entrepreneur really enticing for many. But now that you’re not going to answer to any boss, be prepared to satisfy something bigger than your superior: your customers. Starting a business is a lot of hard work. You need to show up every day and do your best to provide the best products or services to your clientele. 

If you’re also expecting to earn more once you start your business, the reality is going to hit you quite hard. It will take a few years for a business to become stable and to really start earning well. You have to be prepared for this so manage your financial expectations while you’re building your business from scratch. Be sure that you think about your resources carefully. 

There are going to be many changes once you start a business on your own. You’re not going to be reporting to an office anymore. You’re not going to stay there for at least 8 hours working on tasks given to you by your boss. But if you think you’re going to have more time not working, you’re wrong. 

Your business is going to demand your time, energy, and commitment. You may no longer have to stay in an office for 8 hours but you’re going to think about your business at all hours. It’s true, you can work anywhere you want: at home, a cafe, or a coworking space. You can work on your business while being around your family. That’s a great advantage of being an entrepreneur. 

But also know that it may become lonely for you at times. You won’t have any officemates anymore to talk to. Nevertheless, you will have time for your friends and family. It’s just a matter of managing your time well. 

To be a successful entrepreneur, prepare for a tough couple of years. You need to survive the challenges that you’ll encounter during the early years of your business. In the long run, it’s going to pay off. Stay positive, passionate, and driven. 

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The Three Factors Unsuccessful Small Businesses Have In Common

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Starting a business is never easy and has more than meets the eye. According to statistical data, 20% of small businesses fail in their first year and 30% in their second year, 50% in their fifth year, and 70% beyond their tenth year.

The rate of failure of these small businesses is because they face a unique challenge where they need to produce a profit in a limited time without sacrificing the quality of their services or products.

Having said that, knowing the areas where these small business owners went wrong may help others execute it correctly. Here are the three most common factors unsuccessful small businesses have in common:

The Service Or Product Was Not Clear

If your service or product sends a poor message to your prospective consumers, then it is likely that your business will fall apart. Your target audience must quickly understand what your business do and has to offer.

In most cases, small businesses tend to implement scattered ideas and overgeneralize; this makes them lose their competitive edge and mass appeal.

Your product or service should send a clear, specific, and direct message. It does not only need to stand out, but you must evoke action and address a need or a problem that your target consumers must solve.

If you can accurately define your business in a sentence, then you are ready!

The Lack Of Structure

A good structure means having a stable foundation for your business to stand upon. Without proper structure, then your day-to-day operations can be a mess.

If your business lacks the technical aspects such as payroll, ordering, shipping, weekly expectations, then your business won’t reach its maximum potential. The structure is what binds your company to be time-efficient and professional. Plus, according to Jennifer Dawn, a serial entrepreneur and renowned business coach said that structure is a reflection of the owner’s maturity.

“If their daily habits are unstructured, disorganized, and they tend to make rash decisions, be lazy in sales, or drop the ball on important financial matters, the business will suffer. The character strength of the owner is vitally important to the success or failure of a business,” she explains.

The Business Owner Is Not Ready 

An ineffective leader often causes a business to fail. Some business owners are not prepared to take upon a considerable deal of responsibility and are not prepared to step up into a significant leadership position. In small businesses, the founder plays a vital role as he or she is the person in charge of running the entire show.

If a business owner is not ready to run a full-blown business, then that factor will reflect on many different levels and ways. Based on Kate Bagoy, a business coach who helps self-employed entrepreneurs says that a company demonstrates the owner’s desires and is also rooted in the lack of clarity, structure, and “founder mindset.”

“In my opinion, the #1 reason businesses fail is due to founder mindset. We always find another reason — the market wasn’t ready, we ran out of funding, we hired the wrong people — but at the end of the day, successful business owners find a way to move forward. They pivot, they learn, they grow, and they develop resilience to stay in the game until they find success.” Kate explains. Metadata: Nuts are small but healthy foods. They not only taste good but bring many benefits when eaten right. Here are some common nuts and the health benefits they carry.

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