Business Information for Entrepreneurs by an Entrepreneur

If you are running a small business or considering running one, you will directly help with creative and productive output, and economic growth in your community and employment. That is reason enough to consider joining the ranks of small business owners.

It is a proven fact that small businesses employ a large segment of the U.S. population. If it weren't for small business owners, the GDP of the U.S. would be much lower and unemployment would be much higher.

What Is A Small Business?

A small business is any business that produces annual revenues of $2 million dollars or less. Broken down into simple terms, small businesses account for fewer than 25% percent in services or sales, and can earn as much as 27% or more in annual gross profits.

Why Run A Small Business?

Small businesses are also beneficial to those who start them. There are many people with incredible talents, gifts for invention or creativity that would otherwise be left untapped. They would not realize their true potential by working as an employer of another company or larger corporation.

People who run a small business work the hours they want and need to, while achieving their business goals, giving them the benefits of being entrepreneurs.

Other benefits to running a small business, especially from home, are:

• Lower overhead if just using a home office
• Lower costs for equipment, stationary, business attire and furniture
• More support through government grants, programs, seminars and loans
• Choosing your own health insurance package with discounts as a small business
• Flexibility in working hours
• The freedom to create and invent while making a living

What Are The Disadvantages Of Running A Small Business?

Usually, if planned right from the early stages, most small business will have only a few aspects that make running them a challenge.

However, there are some disadvantages to running a small business that are not necessarily bad, though they can be time consuming. These include:

• A single person small business - one person holds the responsibility for everything
• There are legal limitations to financial assistance amounts allowed for small businesses
• Competing with larger or more established businesses for a part of your chosen market
• Government laws and regulations can be restrictive
• Paperwork is no different for any business, but small business owners may have fewer hands to cope with this and it can sometimes be overwhelming
• Insufficient capital to grow and take on hired help or keep skilled workers

Inflation can affect the growth and profits of the company as expenses grow, while incoming business may remain the same or not grow enough to accommodate the changes

Just like anything, negatives are unfortunately a necessary part of running a small business. But by planning well, you can ensure that your small business is not only successful, but thrives in today's competitive business environment.

1. Get a Professional Evaluation Done

To get an idea about the right asking price for your business, you will need to get it evaluated. There are many accounting firms that can evaluate your business by using your financial statements and comparing them with available national data and current market conditions. The accounting firm that you choose should have prior experience in evaluating and selling similar-sized firms.

You will also need to ensure that all your accounts are maintained in a proper and legal way. You must be able to produce your tax returns from the last five years. Your previous years' balance sheet and profit & loss statements will also need to be made available for scrutiny by any potential buyers.

Have all legal records regarding your business ready for review. A proper file with all the relevant records will make it easy for potential buyers to study the details of your business and make an informed decision.

2. Use the Media

In order to get proposals from a wider variety of buyers, it is essential that more people know about your intent to sell your business.

You should advertise in select newspapers or even in related association and trade publications. This might prompt some of your competitors to consider buying your business - and since they are already in the same industry, it would be easy for you to communicate with them on the same wavelength.

You can also use the Internet as an advertising medium; it is cheap and its reach is limitless. You can also post your decision to sell your company on your own Website if you already have one running.

3. Use That Vacuum Cleaner

In order to create a favorable impression to any potential buyer that may drop in for a peek at your business, clean up your workplace.

Spruce up your premises, and apply a fresh coat of paint if necessary. File all your papers in their respective cabinets so that the tables in your office or store do not look cluttered or untidy. Creating a favorable first impression is crucial if you want a good offer.

4. Scrutinize All Potential Buyers

Once you do start getting offers from various buyers, then you will need to read the fine print regarding the terms and conditions that they present.

Any buyer who is not willing to pay the entire amount upfront should be scrutinized thoroughly. A buyer that not only offers you a good price for your business but also shows great potential in taking your business forward should be given preference, if you are mentally attached to your business.

Potential buyers will also ask you the reason for selling your business. Therefore, it is essential that you answer truthfully and tactfully.

When running a small business, there is no escaping from the fact that you will face angry clients at some point or another.

Knowing how to handle angry clients can ensure that the harm done to you and your business is limited to a minimum. It will also help ensure that your day is not spoiled by the words or actions of an angry client.

Below are some tips to help you in handling angry clients in your business.

Apologize

Whether you like it or not, the client is always king - so in order to take the steam out of the client's anger, the first thing that you should do is to apologize and promise to look into the matter.

Do not answer back in an angry tone without understanding the situation first, since it might only egg the client on to launch an angrier tirade against you or your employees.

By apologizing to your client, you will be sending the message that you are ready to collaborate with your client, hear out the problem, and take corrective action.

Do Not Take It Personally

Often, a small issue may be blown out of proportion because the client is too worked up and not thinking clearly.

Other times it could be because they are unloading anger that has been generated somewhere else. Your employees also could have contributed to or generated the anger by neglecting the client in some way.

You should understand that this anger is not personally directed towards you. The customer might be simply protesting the system that your business follows.

Diffuse Volatile Situations

Do not aggravate the situation further, instead try to diffuse it as soon as possible. Hear and understand the reason that the customer is upset and then take the appropriate steps.

If the customer is angry with a particular employee, then come up with an excuse to send the employee outside or into another section of your office or store. Then, either handle the customer yourself, or direct an experienced employee to handle the situation.

Make Amends If You Are At Fault

If it is your fault that a customer is angry, then try to make amends in any way you can. You can offer a special discount on the product that they are buying, or you can include freebies with their purchase.

Make sure that you explain to the customer that you would like to make up for your mistake. Once your client feels that you have accepted your mistake and are ready to act on it, then they will probably be more forgiving.

Learn From Your Experience

You should learn from every angry customer interaction, so that in future you can learn to identify the signs correctly before eruptions take place. By doing this, you can successfully defuse situations before they get out of hand.