How David(s) take on Goliath - Taking on i'm-possible challenges, competitors and causes
Taking on i'm-possible challenges, competitors and causes 

Slow and Steady

Entrepreneurs know when to go slow and steady

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Have fun when the going gets tough

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5 tips to choose the right vision statement for your business

“Give us clear vision that we may know where to stand and what to stand for- because unless we stand for something we shall fall for anything” - Peter Marshall

This is so true for business. But the most important thing which entrepreneurs don't realise is that having a vision statement by itself doesnot suffice.
The vision has to be something you commit to on a daily basis. The strategies you come up with should support the businesses vision. 

So why do you need a vision statement ? 

A vision statement is a tool that can guide your organization as market conditions, technologies, and buyer behaviors change and evolve. It summarizes what an organization wants to become within a specified time frame and should resonate with management and staff. Not only does a vision give shape and direction to the organization’s future, it helps set priorities and criteria for product development plans and strategies. A well-crafted vision will help employees feel proud, excited, and part of something much bigger than themselves.

Here are 5 tips to choose the right "vision statement" ? 
  • When you pitch your vision to prospective investors, prospective partners and possible employees, you need to gauge their reaction. You will need to find out if there was anything in your pitch which interested or excited them. If there was no interest, you will need to make it interesting.
  • You will need to understand how "far fetched" it is. If your vision is too "far fetched", the people around you will just tune out. They will feel that this is an impossible task and it not worth taking an effort. You will need to move away from complete hallucination to a little more reality.
  • If you have not included the "human factor", then your vision statement is not ready yet. Any organization you build will need to interact with people (consumers, employees etc) and including human values in your vision statement connects with people who read your vision statement 
  • If your vision statement has not stretched the organization's capabilities and image, it is not the right vision statement. It has to give shape and "direction" to the organization's future. If the "direction" is not present, then redo your vision statement.
  • If your vision statement is more than a page long, It is blurry. Make it more clearer by making it short and fit in less than a page.

Filed under  //   entrepreneurs   vision  

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Creative Financing for Small Businesses

In today’s economic climate, finding suitable lending options for small businesses can be a challenge. While some consider debt to be a negative, successful small businesses understand that it can provide much needed leverage for organizational growth. But, what types of lending are available to small businesses?

First, let’s take a look at a real life business example. A manufacturing company based in Dallas, Texas is looking for funding in order to expand their overall production level. The company is currently profitable and able to produce a regular volume of products for their current customer base. But, the leadership team is thinking big- they are in search of the big retail accounts; Walmart, Walgreens, and other major retailers. In order to produce the level of volume these major organizations need, the manufacturing company must seek capital.

The capital is needed for a variety of reasons, including inventory purchases to produce the products as well as bridge capital to cover the accounts payable delay that many of these bigger companies enforce. When working with smaller vendors, the manufacturing company could expect to be paid for their products within 30 days, but with bigger companies like Walmart, their invoice period may be 90 days. This delay can present a significant problem for a small company with little cash reserves on hand.

So, the manufacturing company began to look at options including bank lines of credit, credit cards, SBA loans, equipment financing and factoring. One of the most appealing options, even though there is a fee to utilize it, was factoring. Invoice factoring would allow the manufacturing company to receive a portion of the initial invoice order from a company of Walmart upfront. These funds could be used to purchase the much needed product to produce the final orders. Without these funds, the small business would have been at a standstill.

So, when working to secure funding, be sure to consider both traditional and non-traditional channels. One of the companies who do this in Canada is BPF Solutions.

Filed under  //   financing  

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They make it look easy

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Tips to build a referral system

 

Any business owner will confirm that referrals are the best source for new business. Not only are referrals cost effective, but they often convert at the highest rate. So, why do so many business owners fail to implement or leverage this client acquisition tool?

While many of us like to help others, most of us don’t like to ask for it. Here lies the problem with referral marketing. Many business owners don’t leverage the opportunities present within their current client base as they hesitate to ask those that have done business with them for referrals.

Here are some ideas implemented by a financial advisor in Toronto for building a referral system:

1.       Build an Email Signature- As email is predominantly the form of communication used within most businesses, email signatures are seen by prospects and clients daily. Include a short tag line at the bottom of your email such as, “Thank you for the Continued Referrals.” You could even add a short referral incentive program for a given month.

2.       Send out Referral Letters- Sending out referral request letters twice per year will put the concept into the minds of your best clients. Include a self addressed stamped envelope, provide prompters for names and possibly offer an incentive for your clients for providing names.

3.       Office Signage- If you want to receive regular referrals, you must build a referral culture. Place signage in your front office and in your meeting areas thanking your clients for referrals, or “The best complement you can pay me is to refer your friends and family.”

By using these simple techniques, the Toronto financial advisor was able to move from 4-6 referral clients per year to 12 within 12 months. All it takes is focus, simple steps implemented with your business and a focus on building the proper culture to gain qualified referrals regularly from your valuable client base.

 

Filed under  //   business   tips  

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They find the next big wave

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Formulating a Buy-Sell Arrangement

When Amber and Sandy formed their childcare business together two years ago, they executed the proper incorporation documents, secured lending and built their facility. What neither of them considered at the time, was how they would protect each other against the ‘what if’s in life.’

While none of us likes to consider the negative possibilities of life, it is essential when we own a business and when we want to protect those in our lives against unforeseen events. The most common life events that business owners fail to contemplate include disability, premature death and divorce.

In the event of a disability of one or both of the business partners, who will run the business? If one partner is disabled, how will it impact the business financially? How will this business partner continue to manage their household expenditures? Where will their ongoing income be derived from?

What about premature death? If a business partner dies prematurely, how will their percentage ownership in the business be treated? In most cases, the partner’s ownership will pass to their heirs. If they are married, their percentage ownership will pass to the surviving spouse. Or, in some instances, their percentage ownership will pass to their surviving children. Is this distribution of assets what is best for the business or the remaining business partner?

Yet another scenario to consider involves divorce. With nearly 50% of all marriages ending in divorce, this life event is something in which business owners should develop a plan of attack for in the event that it occurs. In community property states, unless a prenuptial agreement was executed, the business owner’s percentage shares in the business will be split with their spouse, leaving now three business partners rather than the original two.

A proven solution to proactively address each of these scenarios is to develop a written buy-sell agreement between the two partners. After educating themselves on their available options, Sandy and Amber worked with their estate planning attorney to draw up the necessary paperwork. Today, in the event that any of these unforeseen instances occur, their pre-determined plan of action will ensure that their business has the best opportunity for long term survival and that their family’s interests are protected.

Filed under  //   business  

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Hard choices

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They go to places where others don't

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