Successful Blog

Should I Follow My Dreams and Open a Small Business?

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The dream never dies for many individuals who envision the thought of starting up their own business and realizing part of the American dream.

With the present state of the economy, however, there are many who fear that the timing for opening a business is not good presently and may not be good for some time to come.

The present timing, however, may actually be good for starting up a business, especially given the fact that the job market continues to remain sluggish at best.

If you’re contemplating thinking about opening a business, here are some things to consider:

  • Compile a professional business plan – Never go into battle without a solid plan, especially when opening your own business. The most important aspect of the plan should be the financial angle, detailing how you will see a return on investment (ROI) sooner rather than later. Unfortunately, too many individuals fail to put together a winning plan or even a plan in general, leaving them ripe for failure;
  • Employees or all on my own? – One of the big questions for individuals is deciding if they will go it alone or have staff on board to help them with their business. On the plus side of going it alone, you are saving on salaries and possible health benefits, along with not having to look after others, whose decision making can impact your business at times in a negative manner. On the down side of going it alone, you are tasked with much more work and effort, leaving you little time for anything else;
  • Don’t be afraid to seek advice – For too many people starting out on their first small business venture, they’re afraid to get advice from other like professionals, including possible competitors. While you don’t have to ask 100 questions, do not be afraid to have some discussions with others who have successfully turned their dreams of owning a small business into a reality. Owning a small business is a continuous learning process, so be prepared to learn seven days a week;
  • Have a Plan ‘B’ in place – While you have to have a clear and positive attitude when opening up your new small business, don’t forget to have other options should things not work out. How will you cope financially if the business does not take off or even has to close? Do you have enough financial resources in place to support you and/or your family if things fail? What timetable do you have in place if things are not working out to pull the plug on it? These are just some of the things you need to be able to answer sooner rather than later;
  • Stay positive – This is likely the most important but less thought of matter. It is very easy to turn negative when the bills start piling up, you hit a lull in customer sales, and the outlook is bleak. Throwing in the towel on your lifelong dream should only happen when you have exhausted every alternative and then some.

As you can see, opening your own small business, especially in today’s up-and-down economy, is challenging at best.

Then again, don’t you like challenges?

Photo credit: yourpassionatebusiness.com

Dave Thomas writes extensively for B2b lead generation online resource Resource Nation that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs. He is an expert writer on items like factoring services and is based in San Diego, California.

Is There Light at the End of the Tunnel for U.S. Businesses?

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According to a report released Oct. 5, from Automatic Data Processing Inc. (ADP), U.S. companies brought on more workers in September than the previous month, however the number was not enough to put a dent in the large unemployment numbers nationwide.

While the ADP report brought some encouraging news, two separate reports unveiled the same day noted that layoffs increased rather dramatically last month, while service companies are not hiring additional employees despite the sector’s relatively stable growth.

Looking back at the brighter report, ADP and Macroeconomic Advisers LLC report that private-sector employers added 91,000 positions in September, an increase of some 2,000 jobs from the previous month. The government’s official jobs report is slated to be released on Oct. 7.

Is Minimal Growth Better than None at All?

While the news is somewhat encouraging in that the country appears at this point to be dodging another recession, the recent report also demonstrates that growth is coming in very minimal numbers at best, providing us with weak growth at best.

While everyone is looking for any signs of growth, we shouldn’t be deceived by the numbers.

Much like when gas prices are inflated to high levels, drivers think they’re getting a deal when they pay less for gas, the bottom line being it is still $1 or $2 above what they paid the year before. Improvement, but much better is possible.

As for expanding on the down side, a report from Challenger, Gray & Christmas points out there were sharp increases in layoff announcements for September, with businesses planning to cut some 116,000 jobs, more than double the August report and the worst in more than two years. The biggest cuts came among the government and financial sectors.

What is Your Business Doing to Grow?

With the recent numbers showing a mixed bag, has your company been impacted either positively or negatively when it comes to job growth lately?

For many companies, especially smaller businesses, growth has been hard when you throw in the added costs for health care that many employers have been dealing with. While the government has tried to throw some incentives in the direction of small business owners, a fair number of them have either stood pat on hiring or even laid off where they felt it necessary.

If your small business is contemplating hiring, do you plan on? –

  • Waiting until after the holidays?
  • Waiting until you see better jobs numbers and additional incentives from Washington?
  • Waiting until next year’s presidential election is over?
  • Waiting to see if health care costs come down?

Lots of questions still remain for many small businesses, many of whom are playing the waiting game.

Photo credit: gaebler.com

Dave Thomas, who has authored a number of articles regarding business phone service writes extensively for www.business.com an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Don’t Get Distracted When Your Workplace is Called Home

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You have the comforts of your living room to call your workplace, yet you find yourself more stressed out than if you were in an office space filled with varying personalities.

So, how can you better the situation so that you’re both productive and happy at the same time?

For many people who work from home, their days are littered with distractions – computer, Blackberry’s, phones, children, clutter, annoying family members and/or friends who think that your time is their time too.

Before you begin that new job from home, follow some of these guidelines to make for a better and more prosperous situation:

  • Set up strategy – Lay down the ground rules for all those who you will or may come in contact with during the hours you’re supposed to be working. If you have a significant other and/or children, set aside the necessary time daily for them, but make sure they know that your 9 to 5 hours are for work, not play. It is very easy to get distracted in such an environment and fall behind on the work that needs to get done.
  • Make the environment – If you’re working from your home in pajamas, are you really working or pretending to work? Many people who go from an office environment to a home working environment will note that they keep a similar routine. They get up at the same time five days a week, they tend to work the same hours each day, they get dressed as if they would be in a public workplace, etc. While lounging in your PJ’s and slippers may seem like a relaxing way to do work, it doesn’t always lead to productivity.
  • Have the look of a productive office – When you are working from home, you want the “office” to look and feel just like an office. That means buying the necessary equipment like a computer, printer, fax machine (if needed), etc. It is also good if you’re going to have clients coming by that you entertain them in a professional setting and make it so they feel like they’re actually in an office environment.
  • Record your equipment needs for tax purposes – While working at home may work for some and not others, there are some financial benefits to such an arrangement. First, you do not have to worry about commuting expenses and wear and tear on your vehicle. Secondly, you can deduct a number of items when it comes to doing your taxes. Many of the purchases you make for your business can be written off as expenses the next time around when doing taxes.
  • Understand working from home comes at an expense – While there are a number of advantages to working from home, some find such an arrangement to be a lonely experience. Even though you may enjoy the lack of stress that often comes with working from home, it can come at the expense of feeling isolated.
  • Take needed breaks – Given today’s world of instant communication, it is very easy to get distracted while working at home, especially in the arena of social media. Clients, co-workers, friends and family can be tweeting, texting, sharing and more, leaving you feeling like there is no end. If social media is an important part of your job requirements, know when to take a break and turn off the cell phone, Blackberry’s, computers etc.

Working from home can be a very positive experience; making it work is oftentimes the job in itself.

Dave Thomas, who has authored a number of articles regarding digital copiers writes extensively for www.business.com an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Did You See the Netflix Movie that Bombed?

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As a business owner, you oftentimes have to put things out there and see what sticks.

What does stick can prove profitable, while other attempts can fall on deaf ears. Anyone remember the new Coke?

For business owners, effectively communicating with your customers and potential customers can mean the difference between turning a profit, breaking even and even going under.

Upset Customers are bad for Business

As many of you know, Netflix alerted subscribers a few months back that it was going to employ separate prices for its DVDs-by-mail and streaming video plans.

The end result would be a significant price increase for its customers, with the least expensive bill for customers who sought both services going from $10 to $16 a month. While $6 a month doesn’t sound like much, that is $72 a year that could go for other indulgences.

With the price increase kicking in this month, many Netflix subscribers indicated they would be turning elsewhere for their DVD and streaming video needs. Upset customers bombarded the Netflix site with countless comments, along with a barrage of tweets via the hashtag #DearNetflix.

According to the most recent data, it appears a significant number of those subscribers are holding true to their word.

Netflix recently trimmed its subscriber forecast for the present quarter, reporting it now expects to conclude the period with 24 million customers, some one million less than it had forecast just a few weeks back. When Netflix ended its second quarter at the end of June, it reported having 25.6 million global subscribers.

So, how did Netflix respond to this issue in hopes of righting the ship?

In yet another public relations nightmare, the company said it was separating its DVD mail rental and video streaming services, renaming the new DVD service Qwikster (the streaming service will remain under the Netflix name). Individuals who choose to both rent and stream videos will be required to log in to a pair of different sites and get two different credit card charges.

Research Ahead of Time Potential Fallout Issues

Not only have many subscribers expressed their dismay with the price increase, but they also were probably left scratching their heads as to the new name for the service.

As it turns out, Netflix apparently did not do enough research on the name Qwikster ahead of time, or officials would have known that the Qwikster name on social media venue Twitter is currently held by a male whose avatar is that of Elmo displaying a joint. Oops!

So not only now do you have a company upsetting many of its subscribers by hiking the costs for its popular service, but now you leave them confused with the name change, not even apparently taking the time to check and see who might hold that label on one of the most popular social media sites. Again, oops!

Due to the company’s recent gaffes, Netflix CEO Reed Hastings issued a statement to customers upset with the price increase for the service in recent weeks. “I messed up,” he remarked on the company blog and in an e-mail to subscribers. “I owe everyone an explanation.”

Running a successful business takes time and effort, but above all, the ability to always be one step ahead of the game.

In this instance, it appears Netflix and the changes it enacted, are getting tuned out by a large percentage of customers.

Photo credit: benzinga.com

Dave Thomas writes extensively for business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses. Among the topics he writes about is business cash advance.



Is There a Vote of Confidence for Small Businesses?

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If you ask a lot of small business owners, they’re worried right now.

Whether it is higher costs for health insurance, higher taxes or the inability to hire more workers to meet demand, many small businesses are going through rough times. If that doesn’t already paint a dreary picture, a recent survey from the National Federation of Independent Business (NFIB) won’t help matters.

According to the recent survey, small business confidence dropped for a sixth straight month in August, as the NFIB’s Small Business Optimism Index dropped to 88.1, the lowest level going back to March 2010. Data shows that the index has steadily declined since February, when it hit a high of 94.5.

Noting that these results are the first to be unveiled since the debate in Washington regarding the debt ceiling, small businesses are not exactly brimming with confidence over the deal struck by lawmakers.

According to NFIB Chief Economist Bill Dunkelberg in a statement, “The tumultuous debate over the nation’s debt ceiling and a dramatic 11th hour ‘rescue’ by lawmakers did nothing to improve the outlook of job-makers. In fact, hope for improvement in the economy faded even further throughout the month, proving that short-term fixes will not help.”

Numbers Paint a Grim Picture

As the U.S. Small Business Administration points out, companies with less than 50 employees accounted for 65 percent of all positions created during the last 17 years. Up a point from July, 12 percent of small business owners believe they will decrease their payrolls over the next three months, while just 11 percent say they are likely to increase employment over the same time frame.

Data mined from the recent survey of nearly 1,000 small businesses indicates that the drop in small business confidence in the last month was highly focused on decreased expectations for real sales gains and business factors. Small business owners tabbed sales figures as their biggest concern.

According to the survey, small business owners were also less optimistic regarding business conditions down the road, with the net percentage of owners believing they would see improved conditions down 36 points since a January 2011 survey.

In order to stimulate hiring, President Obama went to Congress with a $447 billion job growth package, including granting businesses a 3.1-point decrease on taxes they must pay on the first $5 million of their payroll. The plan was presented to Congress as the national unemployment rates holds at 9.1 percent.

Should You Hire Now or Hold the Line?

As a small business owner, have you been toiling with the idea of hiring employees heading into the final quarter of 2011?

In the event you are considering hiring, take several factors into consideration:

  • Can the current workload be handled by present staff or do you need extra bodies in the office?
  • What will the implications be financially if you bring on extra people in terms of added health care costs, workers’ compensation etc.?
  • If considering laying off some workers to bring your finances better into line, would you consider rehiring these individuals down the road when times are better?
  • What are your long-term goals for your company?

Being a small business owner comes with a myriad of responsibilities, not least of which is deciding when is the right time to add and subtract employees.

Photo credit: londrescallando.com

Dave Thomas writes extensively for B2b lead generation online resource Resource Nation that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs. He is an expert writer on items like business cash advance and is based in San Diego, California.

What is the Proper Way to Let an Employee Go?

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If you’ve ever gotten a layoff or fired notice, you know the range of emotions that overtake you.

Unless this was a forgone conclusion, you are likely feeling surprise, anger, bewilderment and more. One of the first questions you likely ask is why did I lose my job when things seemed to be going well at work?

With the economy still trying to take flight, losing a job in 2011 takes on even more significance, especially with no end in sight to when things will get better.

How Did You Learn of Your Dismissal?

I can speak from experience to being laid off, quite frankly to my surprise.

Working as an online editor for Insurance Journal magazine in San Diego beginning in 2001, I had been there just under five years when it all unraveled.

Working from home on a Friday, I had received an email from my manager about doing a conference call with her and the CEO that morning, no details provided. As fate would have it, the reporter curiosity in me came out that morning for several reasons:

  • I had just been in the office working the day before and everything was fine;
  • We never did conference calls on a Friday and if we did, it involved all of the team;
  • I had not received any complaints, concerns, etc. leading up to this call.

So, I emailed the manager back and asked her what we would be discussing that day. The next communication from her was that I was being laid off as a result of my position being eliminated, no more, no less. Given that the position was an important one for a company looking to increase its online presence, the shock of the layoff hit home even more.

Being realistic, I know that layoffs happen every day in this country and around the world. What caught me by surprise, however, was the way this company chose to handle this matter.

Rather than the publisher being man enough to tell me face-to-face the previous day when I was in the office and even briefly spoke with him, he let his daughter-in-law do the dirty work behind the comfort of a computer.

Employers and Employees

Needless to say, I lost a lot of respect for this publisher who I thought liked the work I was doing, not to mention who would have brought me aside if there were an issue we needed to hash out.

While employers are not bound to give the real reason of why someone is let go, it is the honorable thing to do, especially when their decision has a number of ramifications for the employee. Yes, knowing the real reason may not make things better, but it at least prepares you for the next job and what to do and not to do.

Even though I have worked other jobs since that day six years ago, my trust level of employers will never be the same.

Yes, the company paid me for five years, but I gave a lot to that company in return and then some. A simple man-to-man explanation for the dismissal would have been better than taking the easy way out and having someone lower down on the totem pool do it.

So, have you ever been laid off or fired and felt the way it was handled was inappropriate?

Photo credit: 247wallst.com

Dave Thomas writes extensively for B2b lead generation online resource Resource Nation that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs. He is an expert writer on items like direct mail companies and is based in San Diego, California.