Small Business Info

How to manage your small business finances

Managing your small business finances is just like anything else. You must have a plan as to what you want to accomplish. Many small business owners overlook the need to carefully have a plan on how to manage their finances. The bottom line is that failing to have a plan, in regards to any aspect of your business can be serious, failing to have a plan on how to manage your business finances, can literally bring about its downfall. In today's economy it has become crucial, for small businesses to have a tight hold over their finances. The finances problems of years past, that could just be ignored must now be dealt with immediately, to avoid serious ramifications. It is important to understand that your small business' finances are the underpinnings of your business's strength; as they go, so goes the business. There are several important steps you can take to manage your business finances. Here are a few of them-

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Take the time to prepare a complete business budget-Many small business owners have the mistaken assumption that business budgets are not needed or are simply a waste of time. But the bottom line about budgets is that they work. It is important to take the time to develop a working financial budget for your business. Then you will need to follow through by, looking at it every day, consulting it, following it, and making adjustments. Keep in mind that if you are unsure of where to start when writing a business budget, there is plenty of help online, or you can ask your accountant.

Always keep your personal and business finances separate-It is crucial to understand that a business bank account is absolutely necessary, for good business record management. You need to get a separate business bank account, and make sure you use it only for business purposes. It is important to understand that the cost of a business bank account is nothing, compared to the time and trouble you might end up spending, trying to untangle your books, or figure out a paper trail, if you were ever audited. Most importantly, this has the added effect of showing everyone, from your customers, to the IRS that your business is a serious concern.

Look for problems and then solve them quickly-There are three common small business problems that even a quick analysis can reveal are. Once the problem or problems, have been identified then a solution needs to put in place immediately to help the business' finances. These problems are-

1. The business is carrying too much debt-If this is the problem then you must determine where, why and how the debt is being carried. Steps to solve this can include: refinancing current debt, paying off debt and looking for ways to streamline the use of debt. 2. The business is carrying too much inventory-This becomes a problem since inventory is just cash setting in your warehouse or office. You must take steps to free up the cash you need. Whether this means discounting inventory or even donating it (remember that it costs to store it as well), you must resolve your inventory problem in order to successfully manage your small business finances. 3. There are problems collecting accounts receivable-If this is a problem within your small business, then a dedicated effort to collect accounts receivables must be put into place. In addition, a new credit policy should be considered that limits credit to late payers.

Recognize that you may need professional help-It is important to realize that an accountant's main job is not doing the books, but providing you with the business and tax advice, that you need to manage and grow your business. If you are unsure of where to find one, ask family, friends or other business owners about recommendations.

How to make teamwork a part of your small business

One of the key components to making your small business work will be teamwork. A small business has a much better chance of success, if it operates with a strong foundation based on teamwork. This is because teamwork provides you with a chance to rely on your employees, and to harbor an environment of trust.

]]> However, it is crucial to realize that an attitude of teamwork comes from the top. Teamwork must start within the management, and then can be sent throughout the company. You must understand that management must set the tone for the business. You will need to be the person that will organize the business, and convey the teamwork attitude you need in order to make the business success. Here is what you need to know about how to make teamwork a part of your small business-

Teamwork builds unity-This is a crucial component of making your business work since, teamwork takes away the single person "its all about me" approach that a lot of people feel with small businesses. When everyone feels they are working together for a united cause, everyone on staff will all get along better and the company will flow better. Unity gives everyone a purpose to work towards and makes everything run much smoother.

Teamwork reduces stress levels-This happens when you introduce teamwork into the company, you will be able to divide up the workload, among your entire staff. This is a productive way to reduce the stress that all of your employees may be feeling. When you can divide out the workload, each employee will have their own responsibilities, and can execute them as they see fit. One of the major benefits is that dividing out the work, provides you with a chance to make sure the work is done on time, as every employee will have their own deadlines.

Teamwork reduces risk-There is an inherent amount of risk in every business. When employees work together, that risk will then go down. Work is done more efficiently and more productively, because every staff member is looking out for problems. Studies have shown that teamwork promotes an attitude of safety since the burden of work falls upon the shoulders of everyone, not just on one person.

Teamwork helps with focus- When the entire company is working as a team; everyone is able to stay focused. The team can all encourage one another and push each other. As the owner you will have to set a deadline, and then make your employees stay focused, by encouraging one another to work hard and meet the deadlines.

Teamwork promotes better ideas-It is important to keep in mind that a team works best when everyone is involved. As the manager of your business, you need to make sure you are working with your employees, to come up with better ideas, for the company. This is best done by having your staff come to staff meetings and allow them all to brainstorm together. This is a great way to come up with new ideas for the business.

Teamwork fosters sincerity-When there is teamwork within your company it allows your customers to see how sincere your staff is. When you have a unified working environment, this will be relayed to your customers, and they will feel the vibe of unity and teamwork. It is important to watch, for the way staff members treat one another, to make sure everyone it can convey clearly to your customers. Teamwork makes the customers happy, as they see how well everyone works together, and they leave feeling satisfied with the experience they have.

How to keep your small business up and running

Once you have started your small business, you may think that you are through the worst of the challenges. The reality is that while it can be a big challenge to get your business up and running, once you establish your business (and you have a steady customer base), you are always subject to having challenges. Just running your small business on a day-to-day basis, can mean you will be faced with an assortment of challenges. You may be wondering how you can make sure your small business is going to last through the years. The good news is that despite the fact that there are no "sure things" in business, there are steps you can take that will help insure the long-term survival of your small business. Here is what you need to know about how to keep your small business up and running-

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Know the reasons that small businesses fail-Studies have shown that the large majority of small businesses that fail, do so because they overextend themselves. Rapid expansion is a common problem, for small business owners as they often feel that they have the customer base and the financing to expand rapidly. You should be weary of rapid expansion, as it could bring about the downfall of your business. Another reason that many small businesses fail is the lack of experience, by their owners. This happens because so many small business owners are in charge of setting their own hours, and owning accountability to their business, it can be hard for some people to stick to the dedication and time, it takes to run a small business. It seems as though anyone can start up a small business, and they do. However, it is crucial that you understand that demands, pitfalls and commitment it will take, for you to start your own small business, before you actually do. The most successful small business owners have taken the time to do extensive research and study, before they even write a business plan. Finally one of the biggest problems, for many small businesses is a lack of marketing. To many small business owners feel that they cannot afford marketing, when the reality is if you are not working hard to get attention, and to get your small business noticed, people will not be able to even know your business exists and it won't be long before you find yourself out of business.

Tackle the hurdles-Now that you know the reasons that many small businesses fail, it is important to tackle the challenges that will prevent these problems. If you have your finances under control, know your market and the demands of your business, then it is time to put together a marketing plan. Again, this is another area where careful research and planning, will pay off. A lot of small businesses do not know how to market their business, or they spend money incorrectly, it can leave you with a mound of debt without the customer-base to pay it off. It is crucial to find the leads on how to market your company. You must be able to place your marketing where your potential customers are, or it is just a waste of both time and money. Here are some places to start-

1. Social media sites. Social media sites can provide you with a chance to gain information about the buying patterns of your customers. You will be able to learn about the type of products they want to purchase and what you can do to improve your services. The great part about social media is that it is free; it just takes time to set up a strong social media marketing campaign. 2. Newsletters-These are especially effective when they are sent via email. Newsletters provide you with a chance to strengthen your relationships with your customers. 3. Open houses-A free seminar or demonstration can give your potential customers a chance to come into your store and see what you are all about. Just make sure that you are able to get the word out, via email, flyer or direct mail.

How to keep customers coming back to your small business

Great customer service is the lifeblood of many small businesses. It is important to realize that repeat business is the way, that the most successful businesses keep their doors open. Customers are the most essential part of business (without them there would be not business), and most businesses are built on the philosophy that that repeat customers provide a significant portion of the income at any given moment. In fact, studies have shown that nearly 80% of business, comes from 20% of customers. Here is what you need to know about how to keep customers coming back to your small business-

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Know your customers-It is important to understand that this goes far beyond knowing who your customers are. It is critical to pay attention their behavior. Customers will often give you signs of loyalty, or let you know that their attraction to your business is fading, before they actually make any final decisions on what they will do. You need to pay attention to these signs, and have a plan of what you can and will do, if someone is looking like they may not be coming to you anymore. This means that if someone who comes in regularly, stops coming in at the same intervals, then you may need to check with them, and see how they are doing. While this is not always a sign that they have left your business, it may be a signal of some other kind of problem that you can help with, and show how important they are to you.

Involve your customers-It is important to ask your customers what they think. This is crucial since it is very difficult to make changes if you don't believe or even know, that they are necessary. You need to make yourself accountable by asking your customers what they think of the product and service, that you are offering them and they will tell you. Customer satisfaction surveys can be an excellent tool, for you to learn what you need to work on, and what will really help your customers keep coming back. Offering something that feels a need for them, (even if they never choose to use it), can really help boost your image in their eyes, and keep them coming back to you.

Show your customers that you are worth it-You need to prove to your customers that you are worth their time, and more importantly their hard-earned money. It is important to remember that customers look for value when they are looking for new products or services, but they also keep their eye out for it, when they are doing continual business. You should be reminding them on a regular basis, that there are lots of reasons why they keep coming back to you. This means doing more then just asking them about how their product is working for them. You need to develop a relationship with them. You can do this by paying attention to their family and other interests, and remember them when opportunity presents itself to discuss them.

Make the most of every encounter-In order to further develop a relationship with your customers, you need to take advantage of every time they come into your store or interact with you online. They already know that you appreciate their business, but you must remember they also like it when you say you appreciate them. In order to win your customers loyalty you will need to make it very clear, through your actions that you want them to keep coming back. An apathetic approach will almost guarantee that you will quickly lose loyalty. It is crucial that everyone in your business makes customer service their number one priority.

How to build a customer base for your small business

Customer service is the foundation of any successful business. This is especially true for small businesses, who can often survive tough economic times, by providing better customer service then their larger competitors. Savvy small business owners understand that without customers you have no business! It is important to realize that if you can find a group of people who will buy your product you are well on your way to being a business success, but building a customer base can definitely be a different kind of challenge. In addition, building a customer base is part of cultivating return business. You need to focus on running your business in such a way, that the customers that you do have keep coming back for more!

]]> However, you should understand that before you can hope to attract a large number of customers, you have to know who your customers are. Do not make the mistake of many small business owners, who do not bother to get to know who their customer is, and instead rely solely on their product to carry them through. The first step is to clearly identify who your target market really is. Then, in order to advertise effectively, you need to keep close tabs on your target market, and be sure that whatever you do, you are providing them with a product that solves a problem that is specific to them.

The first step in determining who your target market will be, is understanding that your target market will have certain common characteristics. These similarities are often the motivation behind buying your product or service. Once you have a better understanding of your customers, you can start building a wider customer base by appealing to the wants and needs of this group of people.

Basic information you should know about your customer base, when determining your target market is:

The average age of your customers or age range that most of your customers fall into

What are the common traits of your customers? Is there any common factor that they all seem to share?

The gender of your target customers

You should know what makes your customers happy, what they do when they have free time, and what activities they find enjoyable.

You should know what sorts of things would upset your customer or what they might fear or be apprehensive about, as it pertains to their consumer behaviors.

You should have some idea of the level of income of your potential customers

Their education level

What customer problem can you solve?

The last factor on the list is particularly pressing, in that if you know how, you can solve a problem that exists within your customer base, you can then form your business around how to solve that one problem. Best of all you can then present that solution to your customers.

It is important to be patient when trying to build a customer base. This is a process that will take time. Remember that through this process you are finding ways to reach your potential customers, and then sell them a product or service, that they will return for, over and over again. Make it a priority to cater to the needs of your customer, and continue providing them with solutions, they will come back to your business for. If you take care of your customers, they will take care of you through referring their friends to your business, and doing your marketing for you through word-of-mouth. It is crucial to remember that although acquisition of new customers is vital to the long-term growth of your business, you should never forget those loyal customers who provide you with valuable target market information, constructive criticism and hopefully compliments.

How to avoid small business mistakes

There are many people who have the dream of starting their own business, managing their time and hopefully making millions. However, few people clearly understand that the road to success can be pitted with problems and mistakes. The reality is that small business' have a high rate of failure. Savvy business owners take the time to analyze possible mistakes, and do everything they can to avoid them. If you are considering opening your own small business, or have already done so, here is what you need to know about how to avoid small business mistakes-

]]> The first thing to understand is that many business people who have great business planning skills, a marketable product and a customer base, fail in the business world because they cannot take control of their spending. The bottom line is that savvy business owners only spend money on the necessary things, and then they make sure to spend only what they have to for those items. The majority of small business mistakes come from the area of spending. Spending to much money or spending money on the wrong things can actually bring about the downfall of your business.

Prepare for unexpected costs-It is important to understand that a big part of running a business, is being able to handle the problems that you are faced with. Most of the time those problems take on a monetary component. Keep in mind that handling your finances under stressful situations can be hard to do, but planning for the unexpected can help. There are always going to be unexpected costs somewhere along the line. Planning for them ahead of time can help to reduce the stress, and keep you, from making a rash financial decision when do they do crop up.

Put off the costs whenever you can-This does not mean that you should miss payments or pay more interest then you have to, but you should understand that the first few years of your business are generally not the time, when you want to pay more than you have to for anything. For example-if you can buy your office supplies on a deferred interest plan, do it. If you can pay for a service monthly instead of up-front to cover the year, it is probably a safer thing to do. Keep in mind that you never know how quickly or slowly your business will grow. If the worst should happen and you need to take a step back from your business, at least you won't be stuck with things that have already paid off and now can't use.

Work to be frugal, but not cheap-It is important to keep in mind that spending less is not just about choosing the cheapest option. You must use your problem solving skills to find a solution to problems that arise, in a way that what you get for your money has a high value, not necessarily a high cost. Savvy business owners understand that many times some planning and creative thinking, are enough to get you what you need, and a fair amount of what you want. You should know the difference between what you want and what you need. The bottom line is that throwing money at a problem, is not always the best or even the right solution.

Have a plan for your profits-Finally, one of the worst things that many small business owners don't do-is plan for their success. If your business is lucky enough to have fast success you can be lulled into a false sense of security. It is important to remember that just because you are doing well now, does not mean that you will be doing well a year from now, or even a month from now. Have a plan on what you will do with your profits that helps you avoid the pitfalls and ultimate failing of your small business.

Effective bookkeeping for small businesses

Bookkeeping is one of the most essential tasks to make your business run successfully. Basic bookkeeping consists of keeping track of your cash transactions, purchases, and your sales. Yet many small business owners fail to realize the importance of effective bookkeeping. Failing to keep on track with your small business' finances, has lead to the downfall of many companies. There are many different aspects that you should be aware of when setting up bookkeeping. Here is what you need to know about effective bookkeeping for small businesses-

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Bookkeeping software is where it is at-Regardless of whether you can or cannot hire a professional bookkeeper to help you properly manage your books, you need to find a good software program to use. There are many great software programs to use, that provide you with the invoicing, sales tracking, and other things you need to manage your books effectively. Keep in mind that the software you use must be simple to understand, and it must have the ability to easily generate reports for your marketing department to use. Depending upon the software needs you have, quality software will cost you anywhere from $100 on up. You should also look for a program that also includes payroll, if you do not plan to outsource payroll.

Know your business size-It is important to pick a software solution that is designed around your business size. This is important since there are many software programs that are designed for large businesses and they will include far too much information and unnecessary things that can waste your time and money. Once your business starts to grow, it's a good idea to hire a bookkeeper to mange your books, or to outsource your books to another company to manage them.

Manage your income and expenditures-One of the main functions of bookkeeping is to create a summary of income and expenditures. This is essential to your business since, keeping your incomes and expenditures up to date, will allow you to see how much money you have coming in, and hoe much money you have going out of your organization. Keep in mind that electronic ledgers are your best option, as they can be changed easily to fix any needs that suddenly arise. You should also keep a file of your receipts, as you may need to access them, in the event that you are audited. You should keep the receipts organized so you can find them in a timely manner, if you are audited and you need to reference them.

Don't overlook bank reconciliations-You should keep in mind that in order to make sure your books are being kept up properly, you need to reconcile it with the bank once and awhile. Some bookkeepers like to reconcile daily, while others prefer weekly or monthly reconciliations. The timing isn't as important as making sure you are watching your books, and your bank account to prevent overdrafts and mistakes, within your bookkeeping method. As a manager you need to do bank reconciliations to keep your bookkeeper honest. This is the best way to prevent fraudulent activity from occurring.

List your inventory-You may be surprised to learn that part of bookkeeping lies in your ability, to watch your inventory and your assets. You need to know exactly what you have and what it is worth. You should keep an eye on the inventory levels, and so you know what is going in and coming out of your office and warehouse. Some bookkeeping software has an inventory tracking program, you can use which will help you keep an eye on your inventory.

All about different styles of managing a small business

There are different styles of managing your small business. It is important to understand that every business has its own management style, and you must be able to work out a style that fits your needs, and the business needs, simultaneously. The success of your small business depends on the business management style that you will use running it. While there are several business management styles out there, there are 3 that are quite popular with most small business owners. Here is what you need to know about different styles of managing a small business-

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Democratic Management-This style of management consists of trusting in your employees and their abilities. Many business management experts feel that this is a great way to manage your business as you will hand over a lot of the responsibilities to your employees. This will then give them a chance to work hard, and achieve results that you and they both see fit. Trusting in your staff can be huge for their motivation, and job satisfaction. This type of management is great for small businesses, since you cannot do it all on your own. However, you will need to be able to delegate a lot of the job responsibilities to other people. This means that you must have a staff of highly motivated individuals. This will be essential to the success of your business. The bottom line is that in order for this type of management to work, you will need to have employees that have strong job skills and the motivation to work hard. In addition, you must be able to trust them to work effectively, when you are not around in order for this type of management to work.

Autocratic Management-Using this management style means that you are the boss, and you are in charge of the business and how it's going to run. Your employees will be expected to listen to you , and to report to you in a timely manner. A lot of small business owners operate in this style, because this business is their livelihood, and they need to rely on it in order to provide for their families. The problem with this is that the boss is often taking on too many jobs, and having a hard time trusting employees with key roles and responsibilities, within the business. In addition, this type of management style can be difficult to work for, as you can step on people's toes and stifle their creativity. Autocratic management is now considered an old-school way of running a business, as most new businesses operate with a relaxed method. You should be careful about this type of management, as it can leave your employees with low job satisfaction and motivation levels.

"Come What May" Management-There are some managers out there that really do not want to have a lot of involvement with the business. They will take a backseat to the hard work, and allow their employees to control and run the company. It is important to realize that employees having such power and free-rein over their own jobs can be dangerous. This is because not everyone has the same work ethic, and drive, that you do and this can cause things to take a long time to get done. Keep in mind that when you aren't managing your employees, its' going to be hard for your employees to know what to do. They won't have a clear sense of direction and this will lead to problems within the organization. Keep in mind that this can work depending upon your personality. If you are the type of manager that likes to oversee your employees without needing to micromanage them, this can work for you.

All about creating a small business image

One of the most important things you will need when establishing your small business, it to create an image. This image will be a key to your success, in getting the message out about what your company can offer. The reality of the business world is that if people don't know about you or don't think much of you, then you won't do much business. It is important to understand that your business image is something that must be developed, and nurtured, for you to find the success that you are looking for. Here is all about creating a small business image:

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Your business' name really is important-It all starts with a name. The name of your business is a very important aspect, of how you will be perceived. Many small business names just take the name of the person, and what service they provide. They don't go much further then that, and it might be a crucial mistake. Experts agree that this is not the right way to draw good attention to you. While you may be justifiably proud of your business, you need to understand that your target market, just wants a reliable "whatever it is" you do. A good place to start with a name is to get to the heart of the issue that your customers deal with everyday. You might want to try something that describes what you do, instead of just who you are. Naming your business for what you do instantly gives you more credibility, and tells your customer what you have to offer.

You must get online-There is no arguing with the fact that if you don't have a website or an online presence, then you are missing a huge piece of the puzzle, for promoting your business. Studies show that people do more research on products and services online, these days than they ever have before. Keep in mind that they will probably have already made their decision on whether you are a good choice, before they drive by your store or office, based on what they see and read online. Because of this you need to capture their attention, and make sure that you are giving them good information on your website. Keep in mind that cutting corners can really cost you here, and it's a good idea to spend some money on your site. Remember that you want the site to look as professional as possible, because it is the only image they will have of your business, before actually meeting you. Put only important information on your site. In addition, if you sell products and services then you can also offer them online. Price is very important to most consumers so it can sometimes be a good idea to put pricing on your site.

Know what your message is-It is important to understand that your target market may not instantly care about why you do what you do, in your business when they first learn about you. However, it will show if you care what you are all about. You need to show that you are in business, because you have a goal and really have a passion, for what you do each and every day. If you like what you do and are trying to help other people with your skills and talents, then they will pick up on the vibe, and loyal customers are often the result. Most importantly you don't have to tell people that you care about what you do, because you can show them by the service you provide. The bottom line is that if you make sure that you communicate your message to your clients in everything you do, you will have a much better public image.

How to choose the right small business credit card

If you are looking, for additional financing, for your small business, you may be considering using a small business credit card. However, it is important that before you simply just choose the first one that is available to you, that you understand the intricacies of business credit cards. Small business credit cards provide you with a wonderful opportunity to meet unexpected expenses and keep your business afloat. However, there are certain things that you should be aware of, before you sign on the dotted line. Here is what you need to know about how to choose the right small business credit card.

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Understand what the card is all about-This means that you should be aware of the three major components of small business credit cards. These are-

1. What is the interest rate?-Obviously the lower the interest rate, the better. This is where shopping around really can pay off. In addition, if you are planning to transfer balances or purchase along with the credit cards, you need to make sure you are getting a lower interest rate. 2. Are there any annual fees? - It is important to understand that a lot of business credit cards have annual fees attached to them. You should be careful with the annual fees, as they can be charged to your account every quarter. Keep in mind that while you may think you are getting a credit card that has some free rewards, you could be signing a contract that says you will pay annual fees for those rewards. 3. What will be your credit limit?-You should know exactly what your credit limit, and if there is a fee if you go over. Small business owners should understand, however, that if their business credit card limit is to low, it may be of little use to them, to high and you are opening yourself up to temptation.

Here are some other things you need to search for when you are shopping for small business credit cards:

1. Annual Percentage Rate (APR)-It is important to keep in mind that your APR can have a huge impact on your small business cash flow. You should look for a lower APR in order to save money when you borrow, for your small business. 2. Introductory offers-Keep in mind that when it comes to acquiring small business credit cards, for your business you need to take a look at the introductory offers. If you need to access a lot of money up front, you should look for the credit cards that have introductory offers with a 0% interest rate for at least a year. These low introductory offers can be a great opportunity to gain the money you need in a hurry, without needing to pay a high amount of interest on the loan. 3. Grace period-You should know exactly what your grace period is. You need to work with credit card lenders that have flexible terms. You should try to find a credit card lender that can offer you a few months to repay the money if you have cash flow challenges that suddenly arise. Keep in mind that most grace periods are 30 days, but there are some companies that will offer you a grace period of 60 days or more if you need it. As a final note, be sure to shop around with multiple lenders, when you are trying to find the best business credit cards. It may not be easy to find a decent credit card, for your business so it's always a good idea to check online lenders, as well as traditional lenders.

What you need to know about getting a small business loan

At some point most small businesses, need a loan. This could be to get the operating capital for business startup, or to finance an expansion. It is important to keep in mind that whether you're approaching a bank, or a friend for a small business loan, the lender will have the same expectations. You will need to be able to satisfy these expectations, if you are looking to get that loan. In preparing for your business presentation, it can be helpful to put yourself on the other side of the desk for a moment. Remember that if you were being asked for a loan, you would want to know exactly why he or she, wanted the money, and what the chances were that he or she, would repay the loan in full and on time. Make your preparation from that point of view. The first step is to gather together the documents that will help persuade the lender that a small business loan is necessary and that you are a good risk. You will need the following documents:

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Your business plan-Having a business plan will show your lender, not only why you want a small business loan but what you plan to do with the money. Make sure that yours is well-thought and well-written.

Your cash flow projections-The first priority your lender will focus on is your ability to repay the loan. Your business's cash flow projections should give a lender concrete financial data that they can use to assess this risk. This can be a part of your business plan, or a separate document.

A statement of your personal financial status-Your lender will want to know what risk you are willing to assume in the repayment of this loan. In addition, your lender may judge your ability to handle money, as a reflection of what you will do this with this loan. A list of your personal assets and debts may be required to give the lender a fuller financial picture.

The following documents may or may not, be required-

Past business tax returns-If your business is established and you have past business tax returns, it can be a good idea to take them with you. This will give the lender a better idea of how your business is doing financially.

A credit rating report-Your credit rating report will most likely be "pulled" to give the lender an idea of how you handle money. Keep in mind that while your loan repayment history, plays a big part in establishing your credit rating, all your "credit" dealings make up the history that's used to determine your credit rating. It's usually not necessary that you include a credit report with your small business loan application; since most potential lenders check your credit rating. But if you don't know what your credit rating is or suspect your credit rating is tarnished, you may want to get one, before applying for a small business loan.

Now that you have all the documents you need to get a small business loan in order, you will need to work on a presentation that will persuade the lender to give you a small business loan. To get a small business loan, you should be prepared to tell your potential lender:

What collateral you can offer-Collateral refers to the tangible assets that you are willing to put up to secure the loan. These assets might be equipment, a house, cars, anything of value that you own. Keep in mind though, that if you fail to repay the loan, then the proceeds from the sale of the assets is used for repayment.

How much money you're personally willing to put into the business-You should understand that being willing to risk your own money shows the lender that you're committed to the business.

Your expertise and/or experience in your chosen field-You should be prepared to talk about yourself when you apply for a small business loan, including: your background, your expertise, and even your goals.

What is small business market segmentation?

Small business owners, who are trying to define who they can sell their product or service to, will need to understand their market segment. Market segmentation is defined one of the steps that goes into defining and targeting, specific markets. It is the process of dividing a market into a distinct group of buyers and understanding, that each group will require different products or marketing mixes. The way to stay competitive in today's market is the ability of any business to find the subtle differences to give a business the marketing edge. Businesses that target specialty markets will promote its products and services, more effectively than a business that is only aiming at the "average" customer. This is especially true for a small business that may possess limited marketing resources.

]]> The bottom line is that opportunities in marketing will dramatically increase when segmented groups of clients and potential customers, with varying needs and wants, are recognized. It should be noted that markets can be segmented or targeted, using a variety of factors. The factors that are most commonly used for segmenting marketing include-

Demographical bases-This is really the basis of who your customer is. This can include but is not limited to: age, family size, life cycle, occupation or any other personal factor.

Geographical bases-Where does your potential customer live? This can be defined by: states, regions, and/or countries.

Behavior bases-This will let you know how much your targeted customer knows about your product or service. This can include: product knowledge, usage, attitudes, and responses to the use of the product or service.

Psychographic bases-This will include the lifestyle choices, values, and personality of your targeted customer.

A small business must analyze the needs and wants, of different market segments, before determining their own niche. To simply choose to market to a targeted segment, without doing the research, is just a waste of time and marketing dollars. In order to be effective in market segmentation, small business owners should keep the following things in mind:

Segments or target markets should be accessible to the business-There be instances that you find that perfect customer, however, if they are not accessible to your business, you won't be making money from selling to them.

Each segmented group must be large enough to provide a solid customer base-If your customer base is to small to significantly affect your bottom line, your marketing efforts are best put elsewhere.

You must remember that each segmented group requires a separate marketing plan-Marketing is not a one-size-fits-all proposition. Just because a marketing strategy worked for one target market, does not mean that it will work for another.

Many small businesses feel that they are unable to compete since; many larger companies segment their markets by conducting extensive market research projects. This research is often too expensive for small businesses to invest in, but the good news is that there are alternative ways, for to a small business to segment their markets.

A small business can do the following to gain knowledge and information on how to segment their markets:

Let someone else do the work for you-You can use secondary date resources and qualitative research. There are many different types of resources that can be used for external secondary data. This type of research can be done using: trade and association publications and experts, basic research publications, and external measurement services.

Take a good look around-You can conduct informal factor and cluster analysis by using several different methods. Some of these methods include: watching key competitors marketing efforts and copying them, talking to key trade buyers about new product introductions and conducting needs analysis from qualitative research, with individuals and groups.

Using small business management software

Running a small business is not an easy task. It requires a lot of time, money, and patience on your part. Technology has been able to help many small business owners effectively run their business without dealing with the hassles of the past. There are a number of small business management software tools which will organize your business and make everything flow together smoothly. Here are some of the small business management software solutions you need to consider when you are running a small business:

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E-commerce software

Timecard software

Accounting software

Reporting and order processing software

Customer support software

You can contact a software design firm to create software for your business that will manage all of these different needs or you can purchase them individually. It is important to make sure the software you choose can easily integrate with your other software or will at least dump reports into Excel and Word where you can create documents and spreadsheets that will organize them.

E-commerce software
To make your website friendly and usable for your customers you need to purchase some type of e-commerce software. This software will be used to allow your customers to buy your products in just a click or two versus mailing or faxing in an invoice or calling you to order the products. Online solutions are the rage and they provide a higher value to your company over having a fax line. E-commerce software must easily integrate with your website and must be easy to use and understand in order to walk your customer though the process. Paypal is a great way to accept payments online and it's free to use. Several small businesses use Paypal to accept payments as they find it's very easy to use and much easier than trying to set up your own payment program.

Timecard software
If you do not have salaried employees you will need to find a good timecard software program to track your employees hours. You can purchase a complete timecard system that clocks in your employees when they use a key fob or log into their computer. If this isn't an option for your business because it is expensive, consider using Timecard Manager 8 by Econsoft.com. This is a wonderful program for small business owners. You simply need to install the software on a central computer where each employee will clock in and clock out each day. Then it will help you calculate their pay, taxes, benefits, etc. It's a great solution for small business owners and much easier to use than the old paper and punch timecard programs.

Accounting software
Every small business needs accounting software to manage their cash flow and handle the needs of the small business. QuickBooks continues to lead the list of accounting software programs for small businesses as it handles all of your accounts receivables, accounts payables, inventory, marketing reports, and many other things. You can purchase the online version if you need access to your books besides just on the company computer system.

Reporting and processing software
QuickBooks can handle all of your reporting and processing and it will send you reminders when your inventory status is getting low or when your invoices need to be mailed out. It is valuable to have a good reporting method for your business so you can predict future sales and growth for your small business.

Customer support software
Do you have software that you sell to your clients or do you offer some type of service to them that may need support from your business? Customer support software is one of the best programs to have as it allows you to have real-time chats with your customers to make sure they are getting the help they need. Kayako.com offers a great help desk customer support software solution for every small business type.

Using business networking to build relationships

To gain the attention of prospective clients and customers, you need to focus on business networking. This will allow you to rely on other companies to help expand and grow your business. Quite often you can use your network to release word-of-mouth marketing campaigns and generate a high amount of "buzz" without needing to pay a lot of money on your marketing campaign.

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Take your business card with you everywhere you go. This way you can pass them out wherever you are. The easiest place to meet new people that can help your company will be at conferences and industry events, but you will be surprised to see how many other events can be turned into a networking opportunity. At social events you need to try and be friendly and outgoing so you can catch the attention of possible clients and customers that you can build relationships with. Randomly strike up conversations with people you don't know and try to start discussing information about your company along with their company.

Interact with the right group
In order to begin business networking, you need to find the right group of people to network with. How can their business benefit your business in some way? Perhaps you have products that can benefit one another and you would like to combine them in some way to expand your target audience and generate more income for your business. When you started your small business, think about some of the places where you used to work. Did you work in the same industry? Can some of your former contacts help your business now? How about interacting with your customers online? Start up a blog and join the discussion boards where you will be able to interact with your customers and discuss things about your products and services. Many times some of your customers will provide you with great insights and can even help you promote your products over time.

Conferences
If you want to meet customers and clients that are specifically related to your industry, attend conferences. This is the best way to show your competition, potential clients, and customers why you are leading the industry or why you will be leading the industry soon. Conferences allow you to share your small business skills and talents with others and they provide a wonderful opportunity to start networking. Although attending these business events may not be your favorite, they do provide numerous benefits to the business so you need to do your best to try and attend as many conferences as possible if you want to get your name out there in the industry.

Hold discussions and forums
Once you gather a nice following online you should start holding discussion groups and attending forums. This provides you with a great opportunity to interact with people that are interested in your business and you will be able to start forming relationships with them. Discussions and forums provide a great opportunity to gather valuable market research information you can use when you are designing new products and services. You must be active in the discussion groups and forums in order to attract the type of attention you are seeking.

Possessing a network for your small business is important to the success of your business. If you really want to earn money and gain new customers, you need to focus on helping your network when they need it. This way they will be able to help you out when you need it as well. Finding potential customers without paying for them is extremely valuable especially when you are unable to figure out where to find new customers.

Tips to Improve Your Small Business

Every business owner, no matter the size of their company, is always looking for ways to improve. However, for small businesses, improvement can mean the difference between being competitive for the long haul, or quickly dying out. The reality is that no business is static and your business is either on an upward track, or on its way down. Making improvements to make your business better is a very conscious choice. Small business owners must understand that not only must they balance their time, but choose the right area of business, that will make the biggest impact. Here are some tips on how to improve your small business-

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Always be setting goals-It is important to have a plan that will focus your business efforts. Business experts across the board, stress that setting goals and objectives is an essential part of business success.

Know what's happening financially within your business-This is not an area that you want to leave to someone else. Surprisingly many small business owners have no idea of the daily, weekly, and monthly, numbers and financial trends, in their own company organization. You need to spend the necessary time keeping current on cash flow, and if you lack the financial skills then hire an accountant. However, every small business owner should have enough knowledge to understand the fundamentals of their financial situation.

Stay on top of trend-Remember that your small business is not operating in a vacuum. You need to know that events and changes that could have an effect on your business. You should stay current on trends, issues and have an idea of what the global business landscape actually looks like.

Focus on using high impact marketing-It can be very easy to waste a lot of time and money, on ineffective marketing. One of the best ways to improve your small business is to learn how to use low budget, high impact marketing, to improve your profitability.

Sharpen everyone's selling skills-Everyone who works for you is involved in sales in some way. From the front end person, to the backroom stock boy, every employee should be aware of how to sell. It is important not to become distracted by the details of running a business, from day to day. Remember that sales is why you are in business. Whether you are selling to a single customer or a large corporation, you should never forget to focus on sales improvement.

Master how to make business presentations-The bottom line is that a well delivered business presentation, can help improve your small business dramatically. Take the time to learn the essentials of a knockout business presentation, and you will find that it really pays off.

Find the best practices within your industry-Every industry has its own best practices or ways, of doing things that are tried and true. Try to avoid wasting money and time, by reinventing the industry. Generally the best approach is to follow what is being done within your market.

Motivate everyone who works for you-Savvy small business owners understand that their employees are their most valuable asset. If you have talented and motivated staff, they can bring on big improvements in business. You need to take the time to learn what motivates your employees to higher levels of performance, and then put it into action. Having the right people, in the right jobs, who are dedicated to your company, means that there are no limits on what you can achieve.

Know your limits and don't be afraid to take break-Successful business owners (no matter the size of the company), understand their limitations. Whether that means hiring, delegating or simply taking a vacation, if you understand what you can and can't do, it will improve your small business.