When it comes to the business of buying and selling there are a few things to look at. Let’s take a look at buying first….

BUYING:

Do you have a plan for finding out what your customers want? How will you keep track of your invetory? Where will you buy your supplies? Will you have multiple suppliers or only one? Where will you find growth, and how will you budget for your buying expenses?

When it comes to selling, there are different question you need to be asking yourself.

SELLING:
What price point will you sell at? Is there room for movement? How will you encourage customers to buy? Will it be a self-service type of environment, or will you need sales staff?

Looking at small details like these BEFORE you are in business will help you take a realistic look at your business, and know what to expect. Often times people are busy picking out their business name and what other small details, and overlook these important details! HAVE A PLAN in place— this will guide you to success.

Running a small business- record keeping is an essential responsiblity. I’ll be honest, I suck at it…thankfully my husband is great at this task, which saves me. What if I didn’t have him to rely on? Well, then it would be my responsibility— or I’d have to hire someone to help me. Not being good at it IS NOT a good enough excuse when it comes to running a business…GOOD RECORDS are vital.

* Have you planned a system of records that will keep track of your income and expenses, what you owe other people, and what other people owe you?

* Have you worked out a way to keep track of your inventory so that you will always have enough on hand for your customers but not more than you can sell?

* Have you figured out how to keep your payroll records and take care of tax reports and payments?

* Do you know what financial statements you should prepare? * Do you know an accountant who will help you with your records and financial statements?

You also need to make sure you’re up on any laws you’ll need when it comes to your business:

* Do you know what licenses and permits you need?

* Do you know what business laws you have to obey?

* Do you know a lawyer you can go to for advice and for help with legal papers?

If this is an area that isn’t a strength for you, consider hiring somebody help you set up an organizational system to make the process easier.

Starting a small business and have money on the brain? Who can blame you…here are a few things you may want to consider:

* Do you know how much money you will need to get your business started?
* Have you counted up how much money of your own you can put into the business?
* Do you know how much credit you can get from your suppliers–the people you will buy from?
* Do you know where you can borrow the rest of the money you need to start your business?
* Have you figured out what net income per year you expect to get from the business?
* Can you live on less than this so that you can use some of it to help your business grow?
* Have you talked to a lender about your plans?
* Have you considered taking on a partner?

This are just a few things to think about…phew…there are a lot more details to this small business venture!

If you’re thinking about starting your own small business there are a few things you’ll want to consider before jumping in:

✔ Are you the kind of person who can get a business started and make it go? (Before you answer this question, use the worksheet below).

✔ Think about why you want to own your own business. Do you want to badly enough to keep you working long hours without knowing how much money you’ll end up with?

✔ Have you worked in a business like the one you want to start?

✔ Have you worked for someone else as a foreman or manager?

✔ Have you had any business training in school?

✔ Have you saved any money?

These are just a few questions to get you started before jumping in.

The important thing about running a small business is to know the direction in which you’re heading…do you know what your short term and long term goals are? Do you have a day-to-day plan which leads you to your goals?

Be aware of what your competitors are doing and practice good money management at all times. All this will prepare you to recognize potential problems before they arise. In order to survive with a small business, regardless of the economic climate, it is essential to surround yourself with smart people, and practice sound business management at all times.

Another important aspect that many people overlook is not just looking at your short term goals, but also your long term goals. How do you plan to grow your business? What comes next? Where do you see your business in 3 years, 5 years or 10 years?

Do you have a small business credit line? You may want to build a small business credit line with your local bank. One thing worth considering when we’re talking about small business and a cash flow, think about borrowing $100 to $1,000 from your banks every 90 days or so. Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month or so before it’s due.

By doing this, you will increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice. This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable.

How’s your small business cash flow? Long before the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a “tight ship.” Some of the things you can and should do include protecting yourself from expenditures made on sudden impulse.

We’ve all bought merchandise or services we really didn’t need simply because we were in the mood, or perhaps in response to the attraction getting devices of the advertising or the persuasiveness of the salesperson.

Then we sort of “wake up” a couple of days later and find that we’ve committed hundreds of dollars of business funds for something that’s not essential to the success of our own business, when really pressing items had been eagerly waiting for those dollars.

If you are incorporated, you can eliminate these “impulse purchases” by including in your by-laws a clause that states: “All purchasing decisions over (a certain amount) are contingent upon approval by the board of directors.”

This will force you to consider any “impulse purchases” of serious cost, and may even be a reminder in the case of smaller purchases.

If your business is a partnership, you can state, when faced with a buying decision, that all purchases are contingent upon the approval of a third party. In reality, the third party can be your partner, one of your department heads, or even one of your suppliers.

If your business is a sole proprietorship, you don’t have much to worry about really, because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you don’t really need it or can’t afford it.

While you may think you cannot afford it, be sure that you don’t “short-change” yourself on professional services. This would apply especially during a time of emergency.

Anytime you commit yourself and move ahead without completely investigating all the angles, and preparing yourself for all the contingencies that may arise, you’re skating on thin ice.

Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan that could ruin you.

When it comes to small business cash flow, do you have a plan?

When looking at ethics in marketing, let’s take this to a very basic level…would you be comfortable explaining what you’re doing to your mother and grandmother? Seriously…if you need to ask, you probably know the answer.

I was on a popular marketing message board, and somebody said they had a question and weren’t sure if what they were thinking about was ethical….right here, this is your clue. IF YOU HAVE TO ASK, there’s a problem. The reason we may ask someone is we’re trying to justify the behavior or action we want to take. In this instance the person wanted to be deceptive with a family member so they could benefit from their sibling’s success. Ouch!

In this case it was quite obvious, but what if it’s right on the edge of what may or may not be ethical. It’s a fine line at times, but all you really need to do is this…”Would I feel comfortable explaining what I’m doing and WHY I’m doing it to my mom?”

If you have to ask if it’s ethical….generally you all ready know that answer. There are better ways to take your business forward. Opt to be a better person and let go of the greed.