Opportunity knocking? When you should NOT answer
The recession can be a challenging time for many businesses but it can also present you with many opportunities that wouldn't otherwise cross your path. You might be able to buy your competitor's business for a song, you could snap up inventory for a lot less than what you expected to pay or you may come across ideal premises that you've been seeking for so long.
When opportunity knocks, it can be tempting to welcome it with open arms. Whether you think it's a bargain or a once-in-a-lifetime chance at a business venture, it's also important to ensure you're not committing yourself to something you may end up regretting. more
- Posted by Valerie Khoo at 11:04 PM
5 mistakes you may be making online
Doing business online has made it so much easier to communicate with customers and enable them to transact with you. However, it can be easy to forget the little things that can make a big difference. Some business owners are making mistakes online that could be losing them sales. So what do you need to watch out for? more
- Posted by Valerie Khoo at 2:02 PM
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Blood, sweat and tears
If you are considering starting a small business, the first couple of years of your business are characterised by a lot of blood, sweat and tears. It's simple, there's a lot of hard work involved. That might seem like I'm stating the obvious but I'm seeing so many "get rich quick" promotions around these days. Typically, they are the domain of internet marketers who are offering a magic solution that you can buy in a box which will allow you to work only a few hours a week while raking in your first million.
Don't get me wrong. Some of these internet marketers actually have good products. But the fantasy of working a few hours week while filling your coffers with cash is something that happens way down the track. And you need to work damn hard to get yourself to that point.
So if you are just starting out in a business, what do you need to consider? more
- Posted by Valerie Khoo at 12:32 PM
Are the opportunities right under your nose?
In a challenging economic climate, you need to pull out all stops when it comes to your business. But instead of re-inventing the wheel, thinking that you have to come up with flashy new ideas, perhaps there are some simple answers right under your nose.
Where is your hungry crowd?
Instead of spending big bucks on venturing forth to try and reach your target, think about where they already spend their time. And follow suit. I once knew a small business owner - we'll call him Simon - who had a gorgeous gift store in the beachside suburb of Manly in Sydney. It was the sort of store where you would go browsing when you had some free time and walk away with something quirky or unique. However, I could never fathom his decision to stay closed on Sundays when the beachside area was heaving with shoppers, beachgoers and tourists. more
- Posted by Valerie Khoo at 9:54 AM
Now what?
It's a busy period for small business owners to keep up with issues that impact their business. The Federal Budget has hit small business owners on a variety of levels, depending on how you derive you income and what bracket you fall in.
One bit of good news is the increase in the tax break from 30 per cent to 50 per cent for assets purchased before the end of 2009.
A word of warning on this
I've seen some entrepreneurs get a bit enthusiastic about this break - I know one who is purchasing a new car in order to take advantage it, and another has gone silly with his purchase of computers this month.
Even though it's a good break, remember not to get carried away with expenses that you would not have otherwise incurred. You're denting your cashflow. Spending on large items just for the sake of getting a tax break is unwise. Always check with accountant on the net effect of your purchase before going ahead
Private health rebate cuts
The not so good news is for high income business owners who have private health insurance who will find their rebates cut. This applies to individuals earning more than $75,001 or couples earning more than $150,001. Depending on your income level, the 30% rebate will drop to either 20% or be eliminated completely.
Budget analyses abound from economists, industry groups and analysts. My advice is to take the time to speak to your accountant on your optimal strategy to take advantage of the changes. In the lead up to the end of the financial year on 30 June, this is a key period where you should be tax planning with a professional.
Don't just hope for the best - ask the professionals
Too many small business owners just fill in the paperwork, cross their fingers and hope they are not hit with a huge tax bill. But when you have good tax and cashflow planning, nothing should be unexpected. And, hopefully, any surprises will be good ones.
If your accountant simply lodges your return and does very little to help you plan your tax or cashflow, it's quite simple: get another one. You need to be able to share your long-term goals with your accountant so that you are working as a team to achieve what you want.
Navigating tax legislation is a minefield - trust me, I've read the Tax Act from cover to cover and it's so not fun. You need to spend your time doing what you do best - building you business, innovating and marketing - and let get a trusted tax professional to advise you on the smartest way forward.
- Posted by Valerie Khoo at 11:29 AM
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"I'll have what she's having."
"I have what she's having." To steal the famous line from the movie When Harry Met Sally, that's what people think when they see someone else take pleasure and get enjoyment out of what they are doing. That same goes for business. When you see a business that's making money and is operating like a well-oiled machine, you want to know the secrets of their success. How do they do it? What systems do they have in place? What's are the 11 secret herbs and spices they use in their recipe?
After all, if you can get the inside goss, you'll be able to replicate the same success.
It's this desire that smart business people play on when they decide to franchise. If they have a system that works, they can sell their ideas, processes and systems to another business owner for a fee. Some do this so successfully that their original business becomes secondary to the business of franchising. more
- Posted by Valerie Khoo at 12:35 PM
Are you suffering from an entrepreneurial seizure?
Call the ambulance. Alert the police. And get the defibrillators working overtime. Are you suffering from an entrepreneurial seizure? This is what business guru and author of The E-Myth series Michael Gerber refers to when you are inspired to start your own business - thinking that all you need is the technical expertise of your chosen area.
In a period when we are seeing some layoffs and redundancies, there are smart people re-entering the market who are very capable and experienced at what they do. Some will continue to look for a job. Some will take the opportunity to take a sabbatical or go travelling. Some will suffer from an entrepreneurial seizure.
After all, the conditions are ripe. When you are good at what you do - but are no longer shackled by a corporate job - the idea of running your own business can appear liberating. While it might be scary for some, others will grab the opportunity with both hands. The hours seem flexible, you already have industry contacts, and you love the idea of boosting your own bottom line instead of someone else's.
However, reality might be very different. Typically, when you run your own business, you work very long hours, your industry contacts may or may not be able to help you and it can take months - sometimes even years - before you see some semblance of a healthy bottom line.
Before you take the plunge, it's very important to consider a number of factors. more
- Posted by Valerie Khoo at 10:14 AM
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Are you over-spending or "investing"?
In this belt-tightening climate, when most people are looking carefully at their expenses, it's important to make the difference between over-spending and "investing". While adopting an attitude of frugality may be prudent, it may also be stopping you from important opportunities that can help your business grow. But you also need to ensure your expenses don't impact your cashflow to the point where you can't pay your bills. So how do you get the right balance?
Ask yourself some questions to help you determine whether this expense is a true investment in your business. more
- Posted by Valerie Khoo at 9:51 AM
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Instant cashflow - 5 factors you need to know
When it comes to "instant cashflow", there are five factors that you need to keep your eye on. Because a change (no matter how small) in any or all of these can make a huge difference in your business. This concept has been concisely spelt out in Bradley Sugar's book "Instant Cashflow".
Yes, the book is a great marketing tool for his business coaching organisation ActionCOACH, but it also contains useful information and gives you an insight into how these five factors can impact your business. So what are they? more
- Posted by Valerie Khoo at 1:26 AM
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Record revenues in a recession?
Is it possible to have record revenues during a recession? I was eavesdropping on a conversation with a couple of entrepreneurs this week and it appears that's exactly what they are experiencing. But when so many businesses are tightening their belts experiencing a decline in sales, how can they be going so strong in such a challenging economy?
I began talking to several entrepreneurs about this when eventually a few of them confessed the same thing. "We've not only had the best month for the last 12 months, we've had our best month ever," said one. "And we think next month is going to be even bigger." All of these entrepreneurs spoke about this as if they were going to confession with their local priest. They seemed almost guilty about their success.
These business owners were not specifically in recession-proof industries. They provide services such as a website company, a hospitality training organisation, a creative brand agency and a small publishing group. In fact, while some of their competitors are doing it tough, they are making great strides.
"I'm proud of my success", said one entrepreneur, who asked not to be named. "But I don't want to rub other people's noses in it. When they are talking about losing lots of clients, I don't want to walk around telling them I've had the best month ever."
So what are these entrepreneur doing to buck the trend? more
- Posted by Valerie Khoo at 12:08 PM
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Can Twitter really result in more sales? The proof.
All the world is a Twitter - but does it really lead to more sales in your business? In case you've been living under a rock lately, an increasing number of entrepreneurs are embracing Twitter. This is the micro-blogging platform where you post 140-character messages to people who have chosen to follow you. Those who are already on Twitter understand the concept while those who have yet to sign up typically scratch their heads and wonder why in the world anyone would care to update the world on the minutiae of their lives.
However, this post isn't about how to use Twitter. There are hundreds of articles on this topic easily findable on the internet. But for the uninitiated, these 140-characters messages can range from banal ("I had fruit salad for lunch today"), to informative "I found great web resource for entrepreneurs. here's the link ...", to self-promoting "Special offer on our new shipment of widgets ...") - and everything in between. more
- Posted by Valerie Khoo at 12:52 AM
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Delegating tasks versus ownership in your team
To be a truly effective small business entrepreneur, you need to master the art of delegating. After all, you need to concentrate on what you're good at - building the business - and let your team run your operations for you. However, even if you are more than ready to delegate, you need to make sure that you are approaching this in the right way.
I was speaking to a small business entrepreneur last week (we'll call him Michael) who was tearing his hair out about some members of his team. "I know they're smart people," he says. "And yet things slip through the cracks. Major things."
It's a gripe that's heard from many business owners. "It's not their business or their money - so my staff don't care." "They just don't seem to understand the impact of their actions." Business owners want their staff to have more responsibility and to up the "care factor" in the business.
It boils down to ownership. And that's why it's important to move away from delegating tasks to delegating ownership. What does this mean? more
- Posted by Valerie Khoo at 11:26 AM
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Are you a business owner or an entrepreneur?
Are you a business owner or an entrepreneur? While these terms are often used interchangeably, I'm hearing an increasing number of people who are making a clear distinction between the two. This is particularly relevant at the moment - when there is talk of a challenging economy - because the business owners will react very differently to entrepreneurs in such an environment. So what's the difference?
Seth Godin expressed it succinctly:
"The distinction ... is that an entrepreneur is trying to make money while she sleeps, and does it with someone else's money! That she builds a business bigger than herself, that scales for a long time, that is about processes and markets.
"A small businessperson, on the other hand, is largely a freelancer with support, someone who understands the natural size of her business and wants to enjoy the craft of doing it every day."
I say that the distinction is especially relevant right now because, depending on which camp you fall in, you're going to react to challenges very differently. How so? more
- Posted by Valerie Khoo at 12:55 AM
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The what, why and how of business
Making big leaps in your business requires a fair dose of courage, a clear vision and a huge amount of faith. That's the message the audience got at the Small Business Book Club this week. The book in question was The Invisible Entrepreneur, written by co-authors and business consultants Louise Woodbury and Williams De Ora.
The Small Business Book Club, run by the Department of State and Regional Development (NSW) and the City of Sydney is being held at various venues around Sydney, focusing on a different book each month. Already featured have been: Lara Solomon, founder of Mocks and her book Brand New Day: Robert Gerrish, small business coach and co-author of Flying Solo and Carolyn Stafford, marketing expert and author of Small Business, Big Brand. more
- Posted by Valerie Khoo at 11:40 AM
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