Business Information for Entrepreneurs by an Entrepreneur

Implement Your Business Idea in 4 Simple Steps

For your business idea to be successful, you will need to take some concrete steps to take it from the drawing board to the market.

Here are 4 simple steps to implement your business idea.

1. Conduct Thorough Market Research
   
   Even though your idea might be technically perfect, you will still need to evaluate if there is a need for your idea.
   
   Consult your friends, relatives, and any mentor to find out their reaction to your idea. Also, compile a sample list of your target market and get their views.
   
   Find out if there are any competitors that are already in the market and their mode of business.
2. Calculate the Time Factor
   
   Some ideas have a limited shelf life before they become obsolete or are overtaken by newer ideas.
   
   Calculate the time required for you to introduce your idea in the market and the approximate period that your product or service will take to flourish.
   
   Also, calculate the time required for you to come up with any new ideas to keep the show going.
3. Calculate the Cost Factor
   
   You will also need to arrange for financing to convert your dream idea into reality. If you do not have ready funds, then you will also need to explore the option of taking out a loan.
   
   Calculating the interest payable on that loan is crucial to your business’ long-term viability. A proper technical and financial plan is also necessary if you do not want to run out of funds after a couple of months.
4. Determine Your Skills
   
   You will need to determine your technical and selling skills in order to successfully sell your idea.
   
   Your products or services should also have something more to offer than the competition does.
   

   Bringing a new product or service to market isn’t easy. By following the 4 steps above, you can give your new small business a fighting chance.

How to Negotiate a Business Deal over a Business Meal

Negotiating a business deal over a business meal is not only a good way to save precious time, but it can also create a personal bond with your client.

In addition to your selling skills, it is essential to polish up your social skills too, as illustrated by the following tips.

Plan in Detail

If you can obtain details of the likes and dislikes of your client, then book your table in a restaurant that you know your client would love.

Ensure that your table is well away from the hustle-and-bustle of the kitchen or aisle so that you can talk and eat in privacy.

The restaurant should have a peaceful atmosphere and comfortable seating arrangements along with excellent food.

Re-Confirm Your Booking

You should re-confirm your booking on the day of your appointment with the restaurant and your client.

You should also reach the location before your client to make sure that everything is in order. You can also confirm with the server that you will be paying the bill.

Do Not Jump Into Negotiations

Engage in some small talk to make your client feel relaxed before you get down to business.

Depending on the nature of your business and the expected length of your negotiations, you can either start your business discussion during the main course or wait until you order dessert.

Stay Away From Alcohol

Even if your client drinks alcohol, you should stay away from it, or consume a minimum quantity in order to concentrate at the task on hand.

Negotiating business deals over business meals is a very old tradition. If planned and handled correctly, then you can ensure that you have a client for life.

How to Handle Merchandise Returns

If you are running a small retail business, then you are aware that store returns are a part of life.

However, the manner in which you handle these returns can determine the future of your relationship with your customers.

Here are some tips on how to handle returns.

Make Your Return Policy Clear

Ensure that your store return policy is clearly mentioned on your invoices and also posted prominently.

Instruct your employees to explain the policy to your customers, in case they are not able to fully comprehend any aspects of your return policy.

If you will not accept any returns during a sale, then mention it in clearly so there are no misunderstandings later.

Keep the Return Procedure Smooth

Keep your cool when dealing with angry customers that might have a complaint about one of your products.

Don’t allow yourself to get drawn into arguments. Rather, handle each issue on a priority basis to defuse the situation as soon as possible.

Your employees should be familiar with the return process so that it can be handled as quickly as possible.

Take Swift Action

If a product needs to be replaced, then make sure that the customer receives a replacement within the shortest possible time.

If a refund has to be made, then do so immediately so that the process isn’t stretched out over a long period of time. If this happens, it will only agitate your customer even further and affect your business reputation negatively.

If you want the relationship with your customers to prosper over the long term, it is essential that you have a clear return policy in place and that you execute all returns quickly.

Essential Small Business Leadership Qualities

If you want your employees to convert all your orders into action, then you need some essential leadership qualities. Your staff won’t just happily and efficiently follow your orders – unless they feel compelled to.

Here are some essential leadership qualities that are necessary for your small business to succeed.

Clarity of Thought

Whenever you give instructions to your employees, make sure that they can clearly interpret them.

You should teach your employees to report back to you in a precise way to avoid any confusion or misunderstandings.

Tact and Decisiveness

If there are some areas where your employees are reluctant to take orders, you need to be tact, but remain firm in your decision.

This will get the message across that you are serious about getting the job done -your way.

Problem Solving

Your employees may have genuine problems in executing some of their duties.

Understand what their problems are – hear them out. If you find they have merit, then try and solve their problems quickly.

This will reassure your employees that you are sensitive to their needs and are ready to help them when necessary.

Overall Leadership

Instead of trying to please your employees in order to become friends, realize the fact that they need a strong leader to make your business successful and also instill pride in their work.

If you are only on friendly terms with them, then it will become very difficult if you need to discipline or even fire them if the need arises.

These qualities will help you earn the respect of your employees and project you are an able and strong leader, ensuring the success of your small business in the long run.

5 Tips for Staving Off Workplace Stress

Experts agree that having a small business is often more stressful than working for someone else.

After all, if you have a regular 9 to 5, you can usually leave office problems at the office – but the same can’t be said for small business owners, whose business problems are with them all the time.

Here are some tips on how to relieve stress related to your small business.

1. Watch What You Eat.
   
   Networking often involves unlimited buffets and oily food. Stay in control by having more soups, salads and green vegetables to reduce your intake of fattening and oily foods, which will only leave you tired and sluggish.
2. Maintain Your Exercise Routine.
   
   Even if your schedule is busy, you need to make time for exercise.
   
   Make sure that you maintain any exercise routine, be it jogging, cycling or walking. This will take care of any digestion problems and will also lower your stress levels.
3. Catch Up On Your Sleep.
   
   When you take a break from your business, make a point to catch up on lost sleep and use that time to relax.
   
   If possible, switch off your mobile device.
4. Get A Massage.
   
   If you travel a lot for your business, then try to check into a hotel with a spa and have a massage in order to relieve the tension from your body and mind.
   
   If that is not possible, then at least go to a swimming pool/sauna/jacuzzi on a regular basis to get adequate exercise and relaxation at the same time.
5. Get Back With A Bang.
   
   Once you have refreshed your body and mind, then come back to your business with renewed zest and motivation. If you have any new ideas, then implement them as soon as you come back, since your energy levels will be high.

How to Identify the Ideal Business Partner

If you are unable (or unwilling) to run your small business alone, you need to scout around for a partner. However, you should pay heed to the following tips before you team up with anyone.

Make Sure They Share the Same Vision

Your partner should have the same goals and should be motivated enough to achieve them.

He or she should be in harmony with you, and should have the ability to quickly settle into their role to effectively contribute to the business.

Your Partner Should Bring In Additional Skills

Adding a partner to your business will result in increased costs.

The additional skills that your partner brings in should offset these additional costs, provided he or she utilizes those skills wisely to garner extra business and profits.

Will They Go Above and Beyond?

In addition to just bringing in capital, your partner should be willing to work long hours and to go that extra mile to ensure that the business succeeds.

Do They Complement Your Skills?

Your partner should be able to cover your weaknesses as you will also cover theirs.

They should be able to take up the slack when required without complaining or making excuses.

Your Partner Should Be Warm and Friendly

Human relationships are essential to partnerships – and your partner should be warm and friendly.

You will be spending long hours working with him or her and you should be able to enjoy their company along with the work.

An ideal partner should share the same passion and should strive equally hard to achieve the goals that you have envisioned for your business. Choose wisely.

Signs That Your Small Business is Moving in the Right Direction

Very often, small business owners get uncertain after some time because they are not sure whether their business is moving in the right direction or not.

If you are in this position, then these hints will help you to determine the direction of your business.

Getting New Business through References

If an increasing number of your existing clients are referring your name to their family, friends, and acquaintances, then this is a sure sign that your business is moving in the right direction.

Customers only give references when they are happy with your level of service and when they start to trust you.

Your Name Spreads in Your Market

When other companies, supplies and competitors start acknowledging your presence in the market and perceive you as a worthy competitor, then this is another sign that indicates that you are moving ahead in your market.

Your Business Translates into a Healthy Bank Account

When you are doing well in your business, then it often translates into a healthy bank account.

Your bank might also start treating you with greater respect, and may offer you various financial products – such as loans – to expand your company and increase the bank’s business with you.

When Your Competitor’s Employees Approach You

If your competitor’s key employees approach you and ask for a job, then they obviously have seen your potential.

This could indicate that you are moving up.

When Your Clients Wait For You

Once you have developed a good rapport with most of your clients, you might find that they are willing to wait for particular items not presently in your inventory, just for a chance to continue doing business with you.

This indicates their high level of trust in you.

Use the above hints as reassurance that your business is moving in the right direction – but remember that you will need to maintain and increase your efforts to keep up the momentum.

As I’ve mentioned in previous blog posts, I’m a member of Vistage, the largest CEO membership organization. I learn a lot in my group’s monthly meetings, but it’s not always during our working sessions or speaker presentations.

After a one or two hour structured dialog, people get up to stretch, move around, maybe grab a drink or a snack. This simple change of position and activity does something to your brain. We need change to stimulate and re-energize us and periodic breaks provide that opportunity.

So what goes on next? Someone will start a casual dialog, I’ll chime in, and then it happens. What seems like a innocuous comment, something that was said in passing conversation, becomes that golden nugget of information that we all strive to get – the reason that we show up at conferences, seminars, and group meetings like this.

Here’s how this scenario played out earlier this year. I was trying to figure out how to guide our marketing team on publicity strategy for our bi-annual email marketing metrics report (by the way, our latest report is coming out next month – new trends are surfacing!).

At lunch, one of my group members asked how we were planning our publicity. I responded with a typical strategy: as soon as the report was finished, we would draft a press release and contact some of the media outlets with whom we have relationships.

That’s when it happened. As the waiter poured the coffee, out came my colleague’s casual comment: “Sometimes we write the press release first. It gives everyone who is working on the project a clearer definition of the end goal.” It hit me like a bolt of lightening. It made so much sense.

Now, once we have the general statistics on what we will include in our metrics report but before the final draft is completed, we write the press announcement so everyone knows the main message points of the final report. It helps the graphic designers focus on the key points during layout and keeps the marketing and support teams ready with tidbits of teaser information for those who contact us about it prior to release. Of course, we’re careful not to write the report’s conclusions before we have analyzed the data.

That insight, which took all of 2 seconds to hear, was my golden nugget that day. It was worth the entire day’s meeting. We now apply the concept to other small projects that warrant press announcements.

Tell me about a situation in which you learned more during a break than the actual learning event.

All of us have multiple accounts for various services on the web. Keeping track of the account IDs and passwords can be cumbersome so many people use very simple, easy to remember words as their passwords.

However, poorly chosen passwords can be easily cracked using software tools that are widely available. These tools utilize lists of words (in English or any one of dozens of other languages), given names, the names of characters in books, movies, television shows, and games. Most passwords consisting of plain, lower-case dictionary words or names can be identified in seconds.

Just this month there were over 40,000 searches for terms like “password hacker” or “stealing passwords.” In other words, there are a lot of hackers out there and they don’t need to be very technically knowledgeable to get in to your account.

Example of a good password: 2Hotpeet$a$

This password sounds like “2 hot pizzas” but changes the spelling to be phonetic, uses $ instead of s and mixes numbers with upper and lower case characters. If a system allows it, include spaces in your passwords to make it even harder to guess.

A good password can go a long way, but unfortunately it is not the only security measure you have to worry about. Take the case of Republican Vice Presidential Nominee, Sarah Palin. Earlier this week, it was reported that her private Yahoo email account was hacked. How? The perpetrator went to Yahoo’s “Forgot My Password” link and answered the security questions she had set up, like “Where did you meet your spouse?” The answers to Yahoo’s questions were easily found online so it was very simple to reset the password. The more personal information anyone can find about you online, the less secure your passwords are. Think about that the next time you post a Facebook or Twitter status update.

To protect yourself, use very difficult passwords (like the example shown above), change your passwords frequently, and do the best you can to keep private information about yourself private.

Side note: Yesterday, Tennessee State Rep. Mike Kernell confirmed that his son David, 20, is the subject of Internet and blog discussions related to Palin’s hacked account.

How to Negotiate Without Making Enemies

You can increase the profits for your small business if you effectively negotiate with your suppliers as well as your customers.

However, how do you negotiate a better deal without making bitter enemies? Here are some helpful hints to negotiate effectively, while keeping everyone involved satisfied.

Offer Options

Instead of trying to back your client or supplier into a corner from where they can only react in a hostile manner, offer them various options that they can think over before making a choice.

This gives an impression that you are being fair with them.

Keep Alternate Plans Ready

Try to anticipate the reaction to your offer and formulate alternate plans in case your main strategy fails.

If the opposite party comes up with an offer that you have not thought of, then ask for some additional time to think it over.

Keep an Eye on the Ultimate Goal

The ultimate goal of both parties involved is be to seal the deal. Remind yourself – and your client or supplier – that you are interested in the deal.

Having the foresight to visualize the sealed deal by all parties involved will provide the motivation to compromise and finalize it.

Keep Personal Feelings Out

Do not let personal feelings interfere in your negotiation process. Treat the entire process as a part of business.

Do not bear grudges against anyone and keep your word when you negotiate.

A good negotiator is one who can convince everyone that the deal is the best bargain. If you can negotiate hard and manage to keep everyone happy, then your small business will definitely benefit.