The goal is for you to achieve financial freedom

  Just as you need to have an individual or family plan for how to manage in an emergency, so too should your business. The better prepared you are to navigate through any situation that might arise, the easier it will be to get back into the usual operation. Unexpected disruptions to business operations can be prevented with a well-thought-out emergency management plan and recovery plan to help protect your business before, during and after an emergency. Natural disasters, such as floods, fires and earthquakes can strike without warning, and throw a spanner into the general running of your business. Your primary aim with an emergency plan is to ensure that your business is able to act and continue to be operational. To do so, you need to have in place specific plans for your business to manage operations in the event of an emergency prior to, during and after its occurrence.  You will want to ensure that you have the following plans developed for your business: The continuity plan ,  

 Setting realistic sales targets is a key factor in improving performance and maximising profits. Realistic sales targets can help improve cash flow, increase motivation of sales staff and meet your overall business goals. Sales targets can be used for products and services, regions or even for particular types of customers. For a business to continually grow, business owners must set sales targets in areas that will boost growth and development. When setting sales targets, here are three things to keep in mind: Tailor for your business Every business is different and sales goals will vary depending on the stage of the business cycle it is in, i.e start-up or an established business. Sales targets will vary according to seasonal factors, marketing, production and supply costs.   A good way to work out a sales target for your business is to calculate the minimum sales requirement. This is the point at which both your fixed costs and your profit goal are covered by your gross profit (the

  Sometimes it can pay off in the long-run to play it safe rather than take risks in small business. Many talk about the importance of risk-taking in small business. But for all the successful entrepreneurs out there, there are just as many, if not more, who have taken too high of a risk only to fade away, never to be heard of again. There will be times when a small business must take leaps of faith. However, it is worth remembering that, at times, there’s value to being conservative. Here are some aspects small business owners should keep an eye on to ensure they grow a healthy and sustainable business: Marketing Many entrepreneurs mistakenly believe that simply marketing their products or services will guarantee success. However, successful marketing requires time, strategic thinking and a ton of experience to master. Therefore, small businesses should focus first on simple marketing practices that guarantee a more tangible return on investment. Cash It is a sad fact of business life

 The sale of a business is a complex process; there are often unforeseeable issues that may arise between buyers and sellers, along with financial and tax implications to take into account. Here are a few things to keep in mind when preparing for the sale of your business: Timing The timing of the transaction is one of the most crucial considerations. Establish a closing date or range of dates and plan the rest of the sale process accordingly. Consider the settlement period, any handover training that may be required for the buyer and arrangements for your existing staff. As a seller you may have different priorities to the buyer, for example, you may want to sell quickly; therefore you need to be willing to compromise for the best outcome. Due diligence Sellers must have a well-organised, comprehensive and efficient due diligence program to reduce transaction risk and costs for all parties. Having un-organised records may be met with skepticism; a skeptical buyer may require stricter

 Once your business is up and running, you need to identify and understand what works and what doesn't. Owners need to take a step back and be strategic about how and when they should grow their business. Opportunities for business growth can be exciting, but turning an idea into a practical reality takes careful research, planning and investment. Here is a short checklist owners can use: Review your cash flow Growing a business starts with reviewing your cash flow. Work out how much money comes in and goes out, and use this information to plan the year ahead. Identify how much money is needed to invest in the business's growth and what it will be used for e.g. hiring employees or buying equipment. Review your daily processes Could your staff be more efficient in the way they do things? Check your business practices and policies and review day-to-day processes to identify what can be improved. Prepare your team Having a team of skilled and committed employees is key to business

  Over the last couple of decades, few things have changed the landscape for small businesses as much as the advent of huge megastores. Small businesses now need to get consumers to understand the importance and benefit of buying local; to recognise the ripple effect on the entire community that local purchases and local businesses have on the economy and what happens when those close. Small, local businesses also need to get smarter. It is not just enough to complain about supersized stores, you have to beat them. While it's difficult to survive in today's retail environment, it's not hopeless, and many small companies are managing to thrive. Here's what the survivors are doing: Specialise Big stores aim at big markets; they can't afford to market to and serve niche markets. You can. Identify a segment of the market with special needs and tailor your offerings and service for them. Compete on your terms, not theirs You won't be the low-price leader; they will.

  With everyone jumping on the social media bandwagon, there is no surprise that businesses are using the continually evolving digital platform as a valuable marketing tool. For those who are yet to be swept up in the hype of our radically changing cyber space, the question is not whether they will join the masses, but when. With around 1.59 billion Facebook users alone and hundreds of social media sites worldwide, it is impossible to deny its prevalence, and increasing dominance and influence in society. Because of the internet’s immediacy and anonymity, businesses are able to gain a virtually accurate reading of how customers perceive the business. Social media allows businesses to gain a real understanding of your customers.  It is also a great platform to throw out new ideas and see how customers respond. What would they like to see from the company, what would they like to be improved, or abandoned altogether. LinkedIn is a great business networking site for both communicating wit

  Businesses are becoming more concerned with having an online presence; however they should also be concerned about the security issues that this can cause. There is always a risk of malicious campaigns or viruses occurring online in an attempt to infiltrate business systems. Even if the business is not directly active online, its employees most certainly are. This can prevent a risk if the employees are discussing the business online, or if they are accessing their social media accounts on the businesses computers. The best way to approach the businesses security online is through a frequently reviewed set of procedures and policies. However, there are a number of ways to secure the business's online presence: Create a policy and procedures document on social media activity within the business. Ensure that all employees are familiar with it, and what they can and cannot do concerning their personal online presence. Double check when opening a link from a social media page on busi

  As all productive workers know, the end of a working day is just as important as the beginning. While the lead up to finishing time in the late afternoon usually sees the majority of workers counting down the minutes until they can clock off, productive workers that engage in a few simple rituals at the end of the day can help them get off to a fast start in the morning. Closing rituals can help you pinpoint exactly what you have to do the next day as soon as you walk into the office, increasing the likelihood of getting more things done, and not having to take your work home with you. Here is a three-step routine to help you to make sure you start every day on track. Triage your to-do list Evaluate what you can realistically complete today, and what could be pushed back to the next day. Adjust your to-do list based on this. Any task that is non-essential can be moved further back, delegated to someone else, or removed entirely. Review tomorrow’s calendar While it is natural to focus

  Having a clear definition of the exact type of customer your business is trying to reach can make the most of limited marketing dollars and have the biggest impact on your bottom line. Narrowing the type of customers you'd most like to reach (and the kind that are most likely to be willing, eager and able to buy from you) is a key building block to success. Defining your target market gives focus to all your marketing and sales activities, helps you craft your advertising messages and images, choose where and when to advertise and influences which distribution channels you use. When defining your target market, keep the image of an actual target in mind. The outermost ring of the target is the universe of potential customers — everyone who might ever possibly be interested in your product or service. As you get closer to the centre of the target, focus on customers who are more likely to actually make a purchase. The group at the centre should be those you would most like to hav

  Whether your business is experiencing sudden growth or financially struggling, it is crucial to manage your cash flow effectively. Cash flow gaps or being unable to access extra funds can put a real strain on a business. However, there are lending options available to businesses that can help with different cash flow needs. Before considering lending options, businesses should draft a cash-flow projection to predict their sales and expenses such as cash in, monthly loan repayments, stock levels, set-up costs, and fixed and variable expenses. Cash flow forecasts can help to prepare for best and worst-case scenarios while allocating what times of the year extra cash are needed. To best meet your cash flow requirements, lending might be necessary. The lending option chosen should meet your business’s needs. For example, a business credit card may be appropriate for immediate purchases and paying off smaller bills. Alternatively, a business overdraft is more suitable for larger, more fre

 Good credit management is an important business strategy to maintain cash flow and stable finances. A cornerstone of managing credit is not only making sure an invoice gets paid, but gets paid on time. Before a debt recovery process commences, which may delay payment and damage a relationship with a customer, it is worthwhile for businesses to use processes to avoid customer debt in the first place. Prepare customers Making sure the customers understand their payment terms from the start is the first step in training them to keep track of outstanding invoices and payment due dates. Keep detailed records Businesses should keep all customer records such as payment term agreements, customer limits and outstanding sales. Follow up regularly Starting a ‘follow up’ procedure once a payment becomes overdue can help speed up the process. It is also very important to know exactly who to speak to about payment matters. Implement payment-in-full Most businesses adopt this policy in regards to pa

  For many entrepreneurs, their business is their most valuable asset. Yet they’ve done little to make sure its value is sustained if they’re out of commission. Even if you’re unavailable for a relatively short period of time, can your business keep going without you? On the most basic level, you want to make certain your business can continue if you’re merely indisposed. You don’t want to lose money just because no one has the authority to pay a bill or has the password to access your email. Ideally, it would be best if you don’t lose customers while you’re out of pocket, and there are ways to find back-ups even if you work alone. Here are some of the things you can address to handle short-term difficulties: Minor expenses To make it easy to handle day-to-day purchases, get a credit card (with a low credit limit) for the person who’s going to handle your administrative matters. Passwords Can anyone else access the information in your email, computer documents, bank accounts, or manage

  Without profits and positive cash flow, a business is going to struggle to survive. This is why cash flow strategies should be taken seriously. Aim for long term financial stability When setting finance and cash flow goals for the business it is important to aim for long term stability.  Businesses should realistically assess how and when it wants to reach its long term goals. Don’t forget to consider customers who allow purchases on credit as it will help in forecasting how much cash is coming into the business and whether it will be enough to cover expenses. Profit first and growth later Businesses should aim to increase profits in the present and use them to grow the business in the future. Approaching it the other way around isn’t always a good idea, especially for start-up companies. Be aware of timing Businesses need to be aware of exactly when money is coming in and when it is going out. Although owners may not be directly responsible for the accounting side of the business, t

  Starting and running a business can be a lot more fun when you're working with someone you like and respect. With a partner, you have someone to share the excitement and risks of running a company; someone to bounce ideas off of; to help shoulder the financial and work-load burden. But partnerships have perils. Over time, partners are likely to have disagreements, resentments, changing goals and lifestyle choices. Partners may also have conflicts about how to spend money, who to hire, which direction to take the company. When partners don't get along, the business inevitably suffers. Before you get into a partnership, be sure to: Have an in-depth conversation with your partner Some issues you should thoroughly discuss include: What is the ownership division and who owns what percent? What jobs/responsibilities does each partner have? How will serious disputes be resolved? Draw up written partnership agreement Once you've discussed all the key issues, approach an attorney

An elevator pitch is the short description you can give about your business in the time it takes to ride an elevator. Your elevator pitch must be brief. It must say enough about what you do so people can easily understand and remember you. And, ideally, you want your elevator pitch to make a positive impression. It is not easy to develop an elevator pitch. It takes quite a bit of thinking to decide which aspects of your business to mention. Even more frustrating, you have to decide which parts of your company to leave out. Often these can be the things you're most excited about - a new technology, a great location, the fact you get to go to Europe on buying trips. But if they're not central to the core of your business, then they don't belong in an elevator pitch. Your elevator pitch must not only be short, it must be clear. Unless you're in a highly technical field, your neighbor or grandmother should be able to understand your business well enough to be able to descri

  If you’re the kind of business owner whose average working day consists of feeling anxious, exhausted, helpless or stressed, then you may be teetering on the very brink of burnout. Burnouts are a state of physical, emotional and mental exhaustion caused by excessive and prolonged stress. They usually occur when owners feel overwhelmed or unable to meet the constant demands of running and managing a business. In addition to negatively impacting on a business owner’s individual work performance, burnouts can also create secondhand stress for the owner’s employees or coworkers. While running a business can take up much of an owner's time, it is important for owners not to neglect their responsibility of staying physically and mentally healthy. To avoid burnout from happening to you, here are five tips to creating a happy, thriving workplace: Realise that you can control your emotions A person's thoughts ultimately determines their feelings. We have 100% control over what we thin

  If the three most important things in real estate are "location, location, location," the first three rules of business are "cash, cash, cash." It is necessary to be profitable, but "profit" is a number that shows up on your accounts at the end of the year; cash is the money you have in the bank. In a small business, it is cash that determines whether you can pay your bills. Businesses can't get money in unless they get their invoices out. However, many business people delay sending out their bills. This may be because they feel uncomfortable asking someone for money, afraid of being challenged on how much they’ve billed, or just too busy working to bill for it. The longer you wait to send out your invoices, the greater the chance you won't get paid.   No matter what business you're in, you're going to have a lag between outgo and income. If you're a consultant, you have to pay for your phone, stationery, marketing materials, and rent

  Small teams provide many benefits to both employees and employers. In comparison to larger teams, small teams are shown to have higher levels of productivity and effective communication. However, a vital component to the success of these teams relates to the support and coordination provided by management. Ways to maximise your small team’s efforts can include: Cross-functional communication If your employees understand how the other functions of your business work and how their work will directly impact all aspects of the business, it can provide them with more responsibility. It allows for all staff to work towards a common goal. The key is to provide staff with holistic training and education that fosters greater understanding. Delegate with descriptive job roles Delegation can provide employees with guidance on what needs to be achieved to reach the end goal. It can provide clear direction for staff while employers can oversee budget and timing schedules. It also allows the emplo

  It is important for businesses to maintain a good relationship with their bank in order to safeguard their future access to funds. Prepare a strong business plan This is one of the first steps to ensure that the bank will identify it as a low risk business and therefore someone they are willing to give funds to. A solid business plan highlights the viability of the business, information about the experience and success of the owners and managers, expenses which the loan will cover,as well as detailed sales expectations. Establishing a personal relationship Over time, an owner establishes key contacts within their bank that are familiar with their business and financial needs. Keeping these contacts informed of any changes to the business or cash flow projections before it comes as a surprise will build trust between the bank and the business. Knowing your business inside out By keeping themselves updated of their own financial status, by obtaining credit reports and public records, b