Steps on How to Develop a Business Properly

So you want to develop a business, huh? Well, you're just in luck. This article will help you whether you are planning to start up new or have an existing business that you would like to expand. This is a step by step guide on how to start, improve, and expand a business while minimizing loss on your part. If you are starting new, please read this article carefully from the very beginning. For those, who already have an existing business and would like to improve or expand, the latter part of the article will be more useful.

Every business starts with an idea. You will find that throughout the article, I have emphasized the mental aspects of people rather than physical or financial aspects. Call me philosophical, but the mind is where everything happens. I have seen and experienced it time and time. When your mind is fully committed, there is literally nothing that you cannot do. Let's begin.

Find Your Passion

To start a business, you need to find out what it is that you are truly passionate about. "Why is that important", you say? The answer is simple. You really do not want to get yourself stuck into a kind of work that you hate. There are plenty of planning and executing involved in a brand new business and if you are passionate about it, they would not feel like work at all compared to a kind of business you do not care for. After all, happiness is the end result of anything that we do in life. Why not choose a business that would make you happy while doing it?

"When your vacation becomes your vocation, you have succeeded in life".

How to Sell It

Now that you have found your passion, let us figure out how to use it to bill people who are in need of the kind of service you can provide. Even though yours is the most ridiculous passion ever, believe me, there are millions of people who would be glad to have your services. As a matter of fact the stranger and more unique your passion is, the more likely you are to succeed simply because that type of business doesn't exist yet. That also doesn't mean that if your passion is something common or usual, you shouldn't do it. Even if it is something common, if you really love it, you will always find ways to do things differently than the others and that itself is the winner.

Let's say that you are passionate about cars. You are more likely to succeed in an auto shop, auto parts shop, or a repair and modification shop. Sure, there are plenty of those out there, but if you love it, it is going to be one of a kind. Maybe your shop has a nice waiting area where your customers can have a seat and a free beverage when they come to drop off or pick up a car, or you may have free stickers complementary to having their breaks fixed. Once you're in the business, you'll figure that out.

The Planning

Write down your unique ideas and prepare a presentation. Take some time to do it. You should not rush this part. If a new idea comes while you are in the middle of the planning stage, do not hesitate to change. Edit and modify until you are fully satisfied and you can see a clear mental picture of your business. I cannot emphasize how important this is. You have to be absolutely clear and certain. If there are parts that are hazy, leave for a while, do something else, and come back to the planning table again when your mind is clear. You will see later how we will reuse this step over and over again.

A thing to remember here is that I am not talking about the "Hows". At this point, you're not thinking how you will start the business. That will come later. Your focus at this stage is the "Whats". If you start thinking about the "Hows", you will ruin your plan because you will start to think about things such as "How do I get the capital", "How am I going to find an ideal place" etc. The "Hows" will show up later when you are clear about the "Whats".

Visualize Your Success

Now that you have had the clear picture of your business, visualize how it would look and feel when it is fully operational and successful. You must be able to taste the success. This again is another important stage. Why-you ask? There will be obstacles on your way to success. This is the picture that will keep you going. It will also help keep your team motivated in the future should you need to inspire them in times of hardship. You, the leader, must have that picture of success handy at all times.

The Needs

You are clear about what your business will be and you have a clear picture of success. By now, you are mentally ready, so let's get physical. The physical needs of the business include 3 things: infrastructure, personnel, and finance.

Infrastructure: If your business is local such as an auto repair shop, you will need a space, an office, a storage area, and some furniture. If your business is virtual, you will need a website or other computer based applications. In any case, you have the clear picture (Step 03), so you can create a list of infrastructural needs.

Personnel: If it is a kind of business that you can do totally on your own, then you are it. If not, you are going to need assistance. Use Step 03, and find out how many people you will need and what their jobs and qualifications should be. You may also look among your friends, relatives and acquaintances that may have those qualifications and would be happy to help you in the beginning. Having a good friend or partner at this stage is very helpful. If you have a friend who shares almost the same vision as you, you have hit the jackpot. Things are a lot easier with a good friend beside.

Finance: This part is slightly uncomfortable for a lot of people. For this reason, a lot of great ideas never see the light of the day. Many would give up at this sector because they believe there is no money. If you feel that, please remember that the financial industry was built on great ideas. It is their purpose to invest. How else do you think the Empire State Building was built? One person didn't put all his money into it. The idea was great and was simply backed by several financial institutions. The truth is there are numerous banks, lending agencies, and investors who are looking for a great idea to invest in.

Alternative Internet Business Opportunities to Try Out

The web is full of opportunities for people wanting to do business and earn money from home. This is the reason thousands of people are flocking online to discover the thousands of opportunities online. The main reason for its popularity is the flexibility and the luxury of time as offered by top business opportunities. Can you really earn hundreds of dollars on a 10-hour a week schedule? Yes there are some entrepreneurs who earn under this kind of arrangement thanks to their well-chosen internet business but for those just starting with their online business keep in mind that this is far from the truth.

If you are just starting out, you will start your first few weeks with a heavy workload. Instead of loving the 10-hour work week, your calendar will be packed with a 40-50-hour per week schedule! This happens, and if you are really interested in tapping a business opportunity then you need to be ready for this. When you want to consider an online business opportunity, you also need to widen your outlook. Of course, the usual options for making money online include setting an e-commerce site where you can sell products or services or you can join an affiliate program to sell products and earn commission for every sale. These are classic opportunities online that you can try, but keep in mind that all these popular options are already packed with people. What you can do instead is to take a look at the alternative business opportunities that are still flourishing online. Listed below are some of these business opportunities that you can try.

You can start an online coaching business. You can be life coach or stress coach online and make money from it. There are a number of people into this kind of business where they help the clients and customers live a healthier life by overcoming life and business' obstacles and problems. In order to do well in this business, you need to have good listening and questioning skills to probe into the problems and concerns of the clients.

You can also start a business consulting business. If you are into business and have a vast experience in handling business problems, then this online business opportunity is right for you. For this business, you can offer your services to business and companies and you can offer suggestions and recommendations on how they can better run their organizations. The common approach in business consulting is to learn about the business, and from there make the necessary analysis and checks so you can make competent recommendations.

You can also set up a membership site where you can host an e-learning environment which can be accessed by paying members. The site can be a resource site when it comes to arts and crafts or focused on children books and stories. The choice is yours when you design an e-learning environment.

Another good idea that you can try out is the setting up of a tutoring website. If you have the knack for teaching and you want to impart knowledge, you can try this business opportunity. Instead of inviting students into your home so that you can tutor them, you can simply tutor the students using the web. You can use a number of online tools in this trade including YM, Skype and webcam. When you engage in this kind of internet business, just make sure that you have the right academic and teaching skills. Of course, you need to have the patience as well in order to do well. Another similar service that you can provide is an essay or thesis writing service online. This is an internet business where you can provide your writing service to students who are struggling with their papers and dissertations. Students and parents will pay for these papers if the papers are expertly written and of course they will get this kind of service is deadline is already looming.

Keep in mind that a number of options available online just waiting to be tapped. Just be creative in searching for your own business opportunity and for sure you find what you want!

Dany Cooper

I live in a tiny village in Ontario Canada, thanks to the internet it has allowed me to work from home just like millions of others. This wonder tool of the 20th century the internet has given all of us the power to connect it does not matter were we are or where we live. It's an amazing device with a growth rate that increases daily, as more and more people discover what and how the internet can help them. Whether it's for business or pleasure it does the job that we ask it to do.

I have a successful online business, I enjoy learning and passing it on in my coaching. If you are looking for a online business I have one here that you can genuinely trust and you will make money. It has all the necessary components that it takes to make a successful home business.

Business Accounting Services that Can Make Your Company More Profitable

In order to manage your business profitably it is necessary to have access to the appropriate financial data, advice and services. For small business in a very competitive market you are faced with the challenge of constantly improving profitability, the need to decrease taxes, eliminate tax surprises and free up time for other competing interests. Using business accounting services will make your company more profitable by reducing staffing cost and attaining cost savings based on expert advice.

Business Accounting Defined

Business accounting is the process in a business that tracks and communicates financial information. This consists of three basic activities: identifying, recording and communicating the economic events, such as transactions and investments of a company. Bookkeeping techniques are utilized to record these economic events. A key business practice for profitable small businesses is outsourcing business accounting.

Interpreting Business Accounting Reports: Internal Users

Data collected from bookkeeping is used by accountants to generate financial statements that are then presented to the internal and external users. Accountants can also analyse and interpret these financial statements and explain the meaning of reported data. Internal users, such as marketers and supervisors, of small businesses would need the expertise of a managerial accountant to interpret these financial statements. If such staffing is not a part of your small business it is then pertinent to gain the services of business accounting professionals with the requisite qualifications and experience who will assist small businesses in understanding the economic status of their company, and, by extension, run the company profitably. Without the expertise of accounting professionals your business could run the risk of failing to meet legal and regulatory standards, this mistake could potential eat away at your profits.

Interpreting Business Accounting Reports: External Users

The external users vary. Investors who are seeking to expand his/her investment portfolio would need financial information on an organisation as well as creditors and government agencies. Government agencies typically seek out tax accountancy information of an organisation. Small business that seek profession tax accounting services ensure that they are advised on using the most tax effective strategies so that they pay the correct amount of taxes, and are compliant according to government standards. Financial accountancy services are required to manage and produce the reports needed by the various external users. Accurate data drives profitable business decisions, and that's why small businesses must ensure their books are in the hands of experts.

Financial Reports Produced

Business accounts are usually kept in the form of financial statements that show all of the financial resources within the organisation and how these resources are being allocated. Accounting records typically filed are balance sheets that give a snapshot of a business's financial information from the period of the snapshot through the end of a specified accounting period. Additionally, profit and loss statements, and cash flow statement are produced along with an analysis of the business's performance by applying ratios, benchmarks in their reports so as to enable their performance to be improved.

Reasons For Selling A Business

A business sale is not a "one size fits" all situation. The details that apply in a specific situation will not all be the same. Before proceeding further, it's important to step back a bit and look at the big picture for business sales in a variety of circumstances. Not all business sales are for the same reasons, and the circumstances of the sale can have a big impact on how a sale should proceed.

What KIND of Buyer is it?

Before considering the various sale situations, it helps to consider the KIND of buyer. In almost all cases the buyer will be either another company or an individual.

If the buyer is another company then it is likely the buyer will be able to run the business successfully. The buyer's ability to pay may be fairly secure. Training the buyer may not be critical, but assistance with customer retention after the sale may be critical. The buyer may be more sophisticated, or at least have more sophisticated advisors. Consideration for the sale may include some form of performance based incentives (i.e., an "earn-out").

If the buyer is an individual, training the buyer may be even more important than assisting with customer retention. Since the buyer's ability to run the business successfully may not be as certain as it would be if the buyer were another company with a proven track record, the cash and/or collateral the buyer brings to the table may be a major factor in the sale.

The Most Common Sales Situations

These are the most common sales situations. Whether you are a buyer or a seller, one of these situations most likely fits you. Additional details applicable to each are covered later in subsequent articles.

Very Small Business - This is the most common business sale situation

Sometimes referred to as "Mom & Pops", "Main Street Businesses", etc.
Most of these businesses do not actually sell.
This is usually a sale to an outside individual (an "External Sale").
Sometimes (although rarely) the sale will be to an insider (an "Internal Sale").
It is rare to have an employee with both the interest and the ability.
The person needed can sometimes be recruited.
Can often be creatively structured as a win/win, even if the buyer has little money.

Somewhat Larger Small Business - External Sale

More likely to sell than a Mom & Pop, but many never do.
Internal Sale
Easier to structure than for a Mom & Pop, but still difficult to find the right successor.
Family Sale
The IRS has insanely complex rules designed to make sure they get all the tax revenue they think they are entitled to. Which is A LOT.
Will most likely need an appraisal to support the price.

Divorce

Often VERY contentious, with expensive appraisal and attorney fees, and the eventual price and terms set by a judge.
Can sometimes be greatly simplified with advance legal planning (such as Shareholders Agreements).

Partner Buyout

Can also be contentious.
Can sometimes be greatly simplified with advance legal planning (such as Shareholders Agreements).

Sale for Health Reasons

If the seller is in ill health but not clearly dying
Time is not as critical as for a dead or dying seller.
Potential buyers may try to take advantage of the situation.
The seller's help with the post-sale transition may be affected.
If the seller is still alive but clearly dying
A sale planned to occur upon death can sometimes be arranged.
This has the potential to save a LOT of tax.

Seller (business owners) has passed away

The company may be in turmoil.
Can be VERY difficult to find a buyer.
Tax issues can be VERY complex.

Financially Distressed Sale

If the business is in trouble, the buyer will need to see a way to fix the problem, or a sale will not happen.
Often involves simply liquidating the assets and walking away.
May be forced by the company's lenders.

Sale to a Large Buyer

Likely to be fairly sophisticated buyers.
Likely to include an "earn-out" as part of the "price".
Publicly traded buyers
May involve tax-advantaged strategies involving the buyer's stock.
Large, closely held buyers
May be easier to attract than a publicly held buyer.

Start-ups

Often done with personal funds.
If funding is from family and friends, then their ownership must be decided.
If Venture Capital is involved, then complexity goes way up.
Usually only available if the upside potential is very high.
Initial Public Offerings ("IPO's")
Basically, this is selling part of the company to the public in the form of company stock.
Often involves venture capital at an earlier stage.
VERY complex.

Employee Stock Option Plan (ESOP)

Very complex and expensive.
Can have significant tax advantages.
Might have motivational effect on employees.
Not as popular as initially expected when these were created.

Very Small Businesses

These businesses are sometimes referred to as "Mom & Pops", "Main Street Businesses", etc. Although each company is small with only a few employees, they represent a huge part of the goods and services available in our economy, and are the embodiment of the American Dream for many people.

Attempted sale of these businesses is the most common business sale situation. Unfortunately, most of the time they never actually sell. Some estimates are that only one in seven of these businesses will actually sell once they are listed for sale. Many more simply shut down once the owner decides to move on to something else.

Unrealistic expectations on the part of the seller, particularly the value of the company, are one of the reasons blocking sale of many of these companies.

The value of these companies is NOT the value of the company to the seller, which may be quite high. Instead, the maximum value is limited by the cost a potential buyer would incur to start a similar business instead. That means the value may be determined by the value of the equipment, plus something extra for the "running start" available to the buyer from buying the existing business instead of starting a similar operation from scratch.

How A Business Loan Helps Business People

Becoming a self-employed businessman is a great reputation in the society but the problems faced by the entrepreneurs from the day one of their business is enormous. It is a great challenge for a person to overcome all obstacles to become a successful businessman. The numerous problem faced by all is finance. Even great entrepreneurs of various industries have struggled a lot of financial crisis for setting up their business and to run their daily business operations. Thus finance plays a major role in the life of business people. Great ideas require the necessary financial support to bloom into a successful business.

Introduction:

There are various sources for business people to raise capital for their business. The most trusted source is from banks. There are various reasons why people choose banks as the best source for raising capital for their business. Banks provide a lower cost of funds in the form of Business Loans. There are various types of business loans at differential interest rates to facilitate business people to solve their financial crises.

Types of Business Loans:

Businesses are of different types and need finance at different stages of their business operations. The need also being different, banks help them in providing different types of business loans helping various small and medium enterprises to raise capital.

New Project Loan - Banks are interested in funding for new businesses and also for new projects of existing business. There are various criteria for getting new project loan and differs from bank to bank. Project loans are approved against the collateral of the person like residential property, commercial property or empty land.

Top-up on Existing Loans - These loans are issued for expansion, replacement, diversification of an existing business. These loans are approved for short term or long term basis to buy goods, machinery or any fixed assets for the company.

Working Capital Loans -These loans are provided for the business to solve sudden financial crises and repaid within short durations. Banks are more interested in providing working capital loans against their inventories, stocks or receivable bills of the company.

Secured Business Loan - Business loans in which companies raise their capital against any security for the bank. It may include plot, residential or commercial places, gold, shares, bills, insurance as collateral to get funds for their business. The interest rate is preferably less.

Unsecured Business Loan - Every businessman cannot afford to pledge a security in getting the business loan, so bankers help them with loans without any security based on bank transactions and income tax returns. These loans are charged with more interest rates when compared to secured business loans.

Requirements of the Banks:

There are various steps and procedures followed by banks to provide funds. The procedure and documents to be submitted to the banks as follows

Identity and address proof of the company - Address proof and identity proof of partnership or proprietor business.

Statutory legal registration of the company - Whether the company is legally registered under government norms and have followed all procedures legally in setting business.

Financial statement of the company - Every bank is interested in seeing the recent 1-year business transaction of the company.

Income tax returns - ITR helps the bankers to check the business performance, efficiency level, assets and liabilities of the company and also tax that company pays from their current earnings. This also plays a major role in deciding the loan amount for the business people.

Financial Security - It includes the fixed and movable assets of the company which helps the banker to consider providing business loans based on the asset value along with the business transactions. This also safeguards banks from the failure of businessmen that fail to repay the loan amount.

5 Secrets That Will Thrust Your Small Business Into the Big League

There are 28 million small businesses in the US. The sad reality is that most of them fail within the first few years of operation. The small percentage that survive stay small forever. A select few manage to grow into huge businesses. But why them and not the others? What are the factors that enable unknowns to become household brands? One thing for sure that it takes much more than hard work, luck, and timing. Read on to see if your small business has what it takes to make the leap into the big league?

Systems

Many small business owners' lives are chaotic due to lack of systems. Systems are hard, but they enable small businesses to scale. Systems are not glorious like sales, marketing, or research and development. Some say that systems are boring, after all, it is a back office function. Systems separate struggling small businesses from those that grow by leaps and bounds. Creating systems can be a daunting task, and for many, the prospect of taking on yet another project is out of the question. For some, it is a catch-22 situation. You may say "How do I carve out extra time from my already hectic schedule." The correct way to think of systems is that creating them is an investment in your business.

One of the greatest challenges that small business owners face is that the they are perpetual decision makers. The owner is involved in everything from sales, customer service, research and development, bookkeeping, so an and so forth. Creating systems is the first step toward a business where not every decision is dependent on the entrepreneur. Systems allow people to plug in and go. Systems include operating procedures and manuals that can bring a new team member up to speed in no time. It is what takes small out of small business.

Franchise businesses are often more successful than independently operated ones simply because they are built on systems. The franchisee may be paying a premium in upstart costs compared to an independent business, but it makes sense for many because they don't have to worry about developing systems. Someone already went ahead and created the necessary systems for success. When you buy a franchise you are taking a system that has been proved to work. Does it mean that you have to buy a franchise to succeed? Absolutely not, but you have to think of your own independent business as a franchise. Create procedures for everything. Don't leave anything to guesswork.

Most small businesses do without systems, but it doesn't mean that it's a good idea. While you might get away with it in the beginning the lack of systems will create huge bottle necks down the road. The lack of systems will reduce your profits. Why? Because you and your employees will have to reinvent the wheel day in and day out. systems minimize the element of surprise. With systems in place your team is able to deliver consistent service. Businesses with consistently good service will outperform those with fluctuating quality service.

In addition to making your life easier, systems also increase the value of your business. Buyers want to buy businesses that are built on systems. The presence of systems tell buyers that the business doesn't entirely rely on you. Creating systems help you create a turnkey operation, appealing to buyers. Business systems are assets that enable your company to run without you.

Scalability

Investors love highly scalable companies because they have the potential to multiply revenue with minimal incremental cost. You simply can't substantially grow a business without cracking the scaling code. Some business are built to scale while others are forever destined for small business status. Unfortunately, many professional service providers are not scalable because they rely on personal output. So, if your goal is to build a big company avoid consulting types of businesses. A software company, on the other hand, is a highly scalable business model. Once the software product has been completed it can be sold millions of times with minimal costs. In other words, their increased revenues cost less to deliver than current revenues. What this means is that a scalable business will be able to increase the operating margin as revenue grows.

A highly scalable business requires small variable costs that the company can control. Variable cost changes with the volume of business. Fixed costs do not vary with sales. For example, for a software company fixed costs include the cost of the office location, computers, and furniture. These cannot be quickly added or liquidated. Salaries on the other hand are a variable cost since workers can be hired and fired relatively fast.

Most consulting businesses like marketing agencies are not scalable because they are unable to substantially increase their revenue without greatly increasing their variable costs. Such businesses are considered poor investments.

To build a scalable business you should start with a scalable idea. Scalable businesses have high margins. They require low support and staff expenses. Scalable businesses allow you to work on your business as opposed to working in your business. If you find yourself constantly working in your business your business is either not scalable or not yet ready to scale.

Truly scalable businesses are highly automated. Automation helps you reduce variable costs such as labor. It is at this point when scaling and systems begin to work together. If you truly want to become a market leader or dominate your industry, scalability is the only way to do it without a miracle.

Board of advisors

If your goal is rapid growth, you must have a board that you can rely on for your big audacious goals. The life of an entrepreneur can be a lonely one. Often you feel like you are all alone with all the decisions you have to make. Your board will share some of the burdens of making key decisions and it will tell the outside world that you are systematic about your business, and that you understand that you need to surround yourself with people that are smarter than you. Your board will help you with large strategic goals. It can help with your overall business plan, policy issues, financial questions, strategic partnerships, and more.

Your board shouldn't be utilized to deal with routine tactical challenges. Don't waste the boards time on daily employee issues or what color the chose for your new office. Rather, let your board help you with strategic advice, or by helping you with making introductions to strategic partners and recruiting talent.

Fellow entrepreneurs and business leaders make excellent board members. Before you build your board you should have a clear understanding of what areas you need help with. Ask yourself what skills do you currently lack that you need to take your business to the next level? Is it marketing, intellectual property, or finance? Whatever it is you need help with should influence the ultimate makeup of your board. You could hire a recruiter, but they are expensive. It is best if you perform the search yourself.

Your board is not a group of your closest friends. It is a group of professionals, each with a respective specialty. One might be an IP attorney while another a retired CEO. You are not looking for a group of yes men. If you build a great board, each member will have more experience than you and each will know much more than you. If you feel like the dumbest person in the room, you are on the right track.

Your board of advisors will not join you for the money, but there are costs involved. It is a good idea to compensate your advisors. At least, you should cover their expenses. Do they need to travel to your board meetings? Are there hotel and other expenses? It is also advisable to pay a per meeting fee that might be a few hundreds or a few thousand dollars. In addition to monetary compensation, you could chose to offer stock as payment.

IP (Intellectual Property)

Most small business owners care most about time and money. Some understand that IP is as good as money in the bank. It is considered one of the most important assets of some of the most valuable companies in the world. Even though IP is an intangible asset, it's almost impossible to build a hugely successful business without it. If you are going to dominate your industry or at least be one of its key players, IP is a must. You can often read about huge business acquisition deals structured around IP. Often, IP is the reason companies are bought and sold for huge multiples.

Simply put, IP makes your company more competitive. Without IP you end up competing on price and efficiency, a tough way to build your business. When you compete through IP you often set your own price, a luxury most businesses never experience. Since innovation is the main driver in business, developing IP should be a key objective for all companies that want to enter the big league.

Facebook Business Page, Not Your Facebook Profile - Every Time

Business No-Brainers: Why You Should Use A Facebook Business Page Not Your Facebook Profile!

I was compelled to write this three-part article after meeting so many business owners who have not yet realised the benefits of a Business Page for their brand, products or services and are, in my opinion, really missing a trick. And then there are those who either misunderstand the separate entity concept of a Facebook Business Page or mistakenly think that it gives people a portal to their private lives online. I have even met business owners who to my dismay have set up multiple Facebook accounts with separate log-ins - so much unnecessary work for them.

1. Personal vs. Private

A Facebook Profile and Business Page are (nearly) mutually exclusive and lead very separate lives providing you always remember to post updates as your Page. Whilst there is a limit to what is 'public' on your Facebook Profile unless somebody is friends with you, if you are still concerned about the distinction, it doesn't do any harm to lock down the settings even further if you wish to - Facebook gives you the flexibility and control to do this.

On the flip side, putting yourself in the shoes of your family and friends, they probably don't want to see an update on your business every time they log in to Facebook same as you wouldn't want to read about a friend's job every time you did. Of course, if they have chosen to Like your Business Page then it's a different story but keeping the two separate in the first place gives everybody the option and upholds an individual's preferences.

Thereafter you have one universal log-in and there is no limit to the number of Pages you can create and administer.

2. It's Not About You!

There is nothing more frustrating than clicking on a Facebook icon on a website for it to then take you to somebody's Facebook Profile. This looks amateurish and as if you don't have a handle on how to use Facebook for business. I have lost count of the number of times this has happened to me and when it does, rather than taking the time to find out if there is in fact a separate Page, I simply turn off and close the webpage.

I am not personally in the habit of sending friend requests to people I don't know, but say in this instance I did? So, I've landed on a Facebook Profile by clicking on the Facebook follow button on a website and sent a friend request. This has now been accepted. BUT I still don't receive business updates, but rather the photos, comments, friend updates, etc. of not only the person in question but their friends as well who I equally don't know from Adam. Have I made my point?

3. Brand Newsfeed

A Page Newsfeed or Timeline is the equivalent of your Email Marketing on Facebook and underpins your success in reaching and engaging with people. Think of it as a person's inbox to which you deliver your entire Business Page related news, i.e. a Newsletter to which Fans have subscribed to. With the added bonus of a far lower unsubscribe rate, no reliance on subscribers forwarding it to their friends (albeit with an incentive for doing so built in), it is far less time-consuming to keep up to date and a sentence or two is all it takes for you to potentially obtain new Fans and increased exposure.

But let's also not forget the reverse, because what you read from others in your own Page Newsfeed will not only provide a wealth of inspiration and material for your own content ideas but also provide further opportunities for you to comment on the posts of others and be seen by their Fan/Friends.

The bottom line is that without your Page Newsfeed, you wouldn't be seen or noticed on Facebook - it really does embody the Domino Effect!

In essence, your Page Newsfeed equals increased exposure for your business/brand, invaluable insights into what you are saying most resonates with people but also provides ample opportunities for conversations with new audiences.

Just make sure that you are using Facebook as your Business Page in order to comment/post on the Business Pages of others.

4. Tagging & Commenting As Your Page

Isn't it great when your friends and family Tag you in photos you didn't know you were in or at a location you were both at? All well and good but imagine if your Facebook Business Page name could only be Tagged or commented on by them - it would be a very limited audience, right?

Well it's a good job that this isn't the case - another highly advantageous feature of Pages is that in addition to those who Like your Page, any Business Page owner can Tag/comment on your Business Page which opens it right out to a viral audience. And of course, each time they do this, you are maximising the number of Newsfeeds your Business Page name appears in and ultimately not how many Fans see it but also their own Fans too which offers rich pickings in terms of engagement and new fans.

5. The Sky's The Limit!

Did you know that a Facebook Profile is limited to 5,000 friends? Not that I know anybody with that number and if I did, I'm pretty sure they'd be too thinly spread to ever spend any time with yours truly!

A Facebook Business Page is a different story with no limit to the number of Likes it can receive. Whilst 5,000 friends on a Facebook Profile might be met with scorns of derision about its authenticity, if you've got 5,000 or more Likes on your Business Page you're going to be held in pretty high regard. But why stop there?!

6. Google Search Results

Whilst it is key that your online activity focuses on driving traffic back to your website, Social Media is the lifeblood of your overall online presence. Facebook Pages are indexed by Google which means that they are optimised for search engines. So the more active you are the more visible your business will be in a search resulting in an increased online presence and active and prolific impression on Social Media.

7. And The Winner Is...

Who doesn't love a freebie?! Contests/Competitions are a great way to build engagement with your followers/Fans and also incentivise other people to Like your Business Page and share your content, making them an instant ambassador for your Brand or business.

They are, in my humble opinion, one of the most fun and creative Facebook Business Page features and something else that a Facebook Profile cannot offer. The main reason for this is that they are generally only available via Apps or Advertising which Profiles do not offer the software for and, in the case of Apps, generally only installable to Facebook Tabs (see 12.), another exclusive Business Page feature.

Contests are a really effective way of incentivising people to share your Business Page or content and grow your Likes. Enough said?

8. Featured Likes

This enables you to showcase the pages of other brands/businesses that you Like - providing not only an insight into your brand/business and its interests but also to showcase the Pages of those businesses you have Liked which should also encourage reciprocity by those businesses.

Simply clicking on the 'Like Pages' link on the left-hand side of your screen allows you to choose from a list of Pages under various categories, including Brands & Products and Companies & Organisations. Of course, businesses similar to you or those whom you have an affiliation or association with, such as complementary services, trusted suppliers and so on, are always going to have maximum impact.

9. Business Page Owners

As with the content management system of a website, an Administrator of a Business Page can delegate administration rights to other Facebook account holders with a tier of different permission levels, which as well as allowing you to work smarter and free up your own time to focus on other areas of your business, provides an additional level of security because you don't have to give them the username/password for your own Facebook account.

10. Featured Business Page Owners

You can also make anybody who is already an Administrator of your Business Page a Featured Administrator/Business Page Owner. This will simply associate them with the Business Page by displaying their Facebook Profile Picture in the About section of your Business Page and also state that they are a Business Page Owner on their Facebook Profile. For my own business, the benefit of this is to allow people to see who the people in the business are, in the same way as the About Business Page of a website does.

11. Business Showcase

A Facebook Business Page allows you to display such information as your business's opening times, location map, telephone number, email address(es) and website address(es), etc. without compromising any of your personal contact details, such as a mobile number, Gmail address, etc.

In the website section you can also add up to three addresses of your choosing in addition to your business site - some suggestions are a link to your Twitter profile, LinkedIn Profile/Company Business Page, Google+ Page, Blog address, etc.

You can further showcase your business by providing a Company Overview, Description, Mission, Founded, Awards, Products (a call to action with a website link is recommended here), etc.

12. Tabs & Apps

Newsletter sign up, Twitter feed, e-Shop, website link or iFrame - these are just a few examples of how you can utilise your Business Page Tabs through the use of Third Party Apps, another feature exclusive to Facebook Pages. Not only that, but the majority of these Apps are completely FREE to download and use and, in many instances, customisable to your own business' needs. You can even set up an Amazon or eBay!

One of the many advantages of these Tabs is that followers can sign up to your Newsletter, view your Twitter feed, purchase your products/services, etc. without ever leaving Facebook. And, since Facebook's M.O is naturally to encourage traffic to stay within its own walls, you're in good hands. I have chosen to utilise one of these Tabs for my Blog (in addition to the website area where it can also be displayed).

13. Advertising & Promotions

Okay, so they're not free but Facebook Adverts still wipe the floor with many other (free) and organic techniques for growing your fan base. I'm not saying other methods aren't as powerful, far from it, but there's a reason you pay for Adverts - they REALLY WORK!

Facebook Adverts appear in a sidebar on the right-hand side of your Timeline (Newsfeed) right before your status bar of friends who are/aren't online. Whilst an Advert can only be set up by a Page, the beauty of them is that their audience is not restricted to Page fans; they can be used to target your friends too.

Whilst Facebook Adverts are a paid entity and can prove expense if not managed properly, you can control your spend with a budget, start and end date and maximum price per click (if you are going down that route), etc. Facebook offers you the choice of several tiers of advertising to suit your budget and objectives. You can also manage the Adverts from your Pages' Admin Panel to track their effectiveness in the same way as Facebook Insights (see 19.).

Promotions are also a paid entity but work slightly differently to Facebook Adverts in that they appear within your Page Newsfeed so appear more natural and less aggressive or targeted. And, whilst most of us know that by clicking on an advert the person who posted it is paying, this isn't so obvious or widely known with Promotions.

14. I'm just Checking in!

The Check-In Tool is another fantastic feature you can utilise to encourage people to engage and interact. It's also an easy way to provide the social proof that your Business Page is resonating with people and useful to them. In other words, those people who have Liked your Business Page have effectively endorsed your business to their friends. And this kind of social proof is an integral driver of a consumer's buying decisions.

Of course, this does rely on you having a physical location so if you are a work from home digital marketer it may not be the most useful feature but still worth knowing about and something else that is not available on a Facebook Profile!

15. Notes

This vastly under- utilised and valued yet fully interactive Facebook Tool can be used almost like a Blog and as another platform through which to further expand on your Products, Services or Brand. Notes are similar to Blog posts in that you can add or edit content and also avoid the 420 character restriction of a status update.

Fans can even Like and comment on your Notes and equally any Notes within which your Business Page has been tagged or commented on is accessible by you. They can even interact with other Fans about your Business Page which not only increases your Page's exposure but also provides you with the opportunity to increase traffic to your Blog and your industry authority and credibility.

You can add comments, photos and images, tag other Fanpages, and even format the style and layout of Notes, i.e. use bold, italics, or underline, numbering, bullet points and quote blocks.

Why are they important? Well, Google will index your Notes if you have properly optimised them and increase the probability of them appearing in a Google search, which of course means an additional stream of traffic for your Business or Brand.

Several years ago you could also use the Notes feature as a bonafide blogging platform but this seems to have been buried by the updated Newsfeed. There are rumours however that Facebook will revive the blogging functionality of Notes so watch this space for developments!

Do you use the Facebook Notes tool - if so, what for?

16. Import Contacts/Invitations

As long as you are using Facebook as your Page, you can invite a whole host of people to Like it and increase your number of Fans exponentially. This is absolutely my recommended port of call when you first set up a Business Page because they are already your captive audience and therefore incredibly influential in growing your Likes through their own Newsfeed. As I said in point 14., the people who have Liked your Business Page have effectively endorsed your business to their friends. And this kind of social proof is an integral driver of a consumer's buying decisions and which also helps non-profits to garner support. After all, word of mouth is the oldest form of marketing in the world but arguably still the most powerful, right?

There is nothing wrong with periodically re-inviting contacts to Like your Page and your lists will no doubt have grown since you last did this anyway. Facebook does also allow you to select which people you would like to invite to Like your Page so you can make it more targeted if you so wish.

17. Link Your Business Page To Twitter

If you sync your Facebook Page with your Twitter account, whenever you create a post in Facebook, both Social Media channels will be updated simultaneously. Not only is this a quick win but you are working smarter as you don't have to update both channels with the same content. Be mindful however if you use the HootSuite Social Media Dashboard that you don't post to both Social Media channels otherwise even the most diehard Fans will quickly turn off if they are seeing double every time!

18. Unique Username

A unique username or Vanity URL, such as Facebook.com/example will also assist with your search ranking and make your company name synonymous with Facebook, especially valuable if this is also your brand/product/service.

Much as you would add your current job to your Facebook Profile if you were an employee, you also have the facility to add your Business Name to your Profile with a link to your Business Page (please note that this will not link your Facebook Profile and Page, merely show where you work).

19. Analyse Your Page's Activity

Once you have 30 Likes, you will be able to view Facebook Insights, which provide in-depth analysis on every one of your Business Page posts to see how many people your post reached how many engaged with it and how many talked about it with their Friends. You can also compare your different posts by showing the percentage of people who talked about your post to their Friends after seeing it. You can also export a report of your Facebook Insights to a spreadsheet and email it.

As defined by Facebook, "Insights provides Facebook Business Page owners... with metrics around their content. By understanding and analysing trends within user growth and demographics, consumption of content, and creation of content, Business Page owners... are better equipped to improve their business with Facebook."

Entrepreneurs: How Strong Is Your Business Foundation?

A Business Lesson from the Three Little Pigs

One of the most important business moves an entrepreneur can do is make sure that their business is grounded upon a solid foundation. Just like a house, a business cannot survive in an unstable environment or on shaky ground. If for some reason an entrepreneur ignores this concept and moves forward to build their business on uncertainty they are definitely setting themselves up for failure and loss. Trust me when I tell you that successful entrepreneurs know the value of beginning your business venture on the grounds of stability.

Interesting enough, when I think of a business's foundation I think of the story of the Three Little Pigs. I know this concept may seem a bit odd at first; however, after further analysis it makes perfect sense. As many of you already know each of the pigs built their houses in three distinct ways using three distinct types of materials. In the story, Pig number 1 built his house out of straw. Pig number 2 built his house out of sticks. Pig number 3 built his house out of bricks. In an effort to show the relevance between this story and an entrepreneur's business foundation I will explain how a foundation built upon straw, sticks and bricks is relevant to entrepreneurial success.

A Business Foundation Built Upon Straw

Straw is the material that is left over after grain is separated from cereal plants. Typically, when you think of straw the thought of animal feed comes to mind versus house building. In the Three Little Pigs story pig number 1 used straw to build his house as a protective measure against the big bad wolf. However, the straw was not a strong enough material and the wolf was able to blow it down making the pig's house irrelevant.

In the business arena the same fate would occur to an entrepreneur that decided to build their business on a foundation made of straw. Straw, without a strengthening agent is a very weak material. The slightest amount of pressure added to it and it will crumble to the ground. The best analogy to a straw foundation would be a business built upon fabrications. Fabrications could be anything from falsified financial statements, defective products, and other deceitful business practices. An entrepreneur that builds their business based on lies will eventually find themselves at the wrong end of the law; which could not only cost the entrepreneur their overall business but their reputation as well. Bottom line, building a business upon a straw foundation will more than likely have a detrimental outcome.

A Business Foundation Built Upon Sticks

Now, if you are anything like me, you are wondering if a straw house did not work for pig number 1 in the Three Little Pigs Story, then why would pig number 2 build his house of sticks. Well, it's due to the same reasons entrepreneurs that have had failed businesses in the past repeat the same mistake in their current business. Neither party seemed to have learned their lesson despite the losses. Now unlike straw, sticks have a bit more stability but will still have the same outcome despite this fact. Sticks in the business sector are entities such as non-existent business strategies, irrelevant mission and vision statements, and other overlooked business foundational principles. If an entrepreneur fails to have these key entities in place within their business then the business is bound to fail just as quickly as a business built upon lies and deceit. The result of building a business on a foundation of sticks means that the entrepreneur failed to plan and as a result they subsequently planned to fail.

A Business Foundation Built Upon Bricks

Now pig number 3 understood the value of building his house on a solid foundation. He even accounted for the fact that the other pigs built their house out of mediocre materials and would need a place to stay once it all came tumbling down. As an entrepreneur this is the mindset that is needed to build a business on a foundation of bricks. Bricks can be categorized as investments, information technology, key stakeholders, strong organizational structure, and other business functions that lead to maintaining the competitive advantage. In order to succeed an entrepreneur must build their business on these solid foundational principles. Just like in the story of the Three Little Pigs a house build upon bricks can withstand the harshest of elements and will not fail in the face of uncertainty.

Benefits of Leasing Equipment For Small Business Owners

Many small businesses or those which are starting up prefer leasing equipment rather than buying the equipment outright. Banks have also recognized this trend and they are now giving loans to small businesses. Today, leasing equipment is a common trend for business owners. We have been proving leasing services for many years to small business owners and those businesses which are starting up to ensure that they are able to use business equipment which they cannot afford to buy. There are many benefits which a business owner gets by leasing equipment at any stage of development as illustrated below:

There is minimal cash outlay for equipment leasing!

When your business requires many computers, buying them requires you to have large capital outlay and reduces your cash flow. In addition, the cost of maintenance & repairing them will be high. By leasing our equipment you will be able to conserve cash from your business and improve your cash flow capital. Equipment leasing services does not include servicing the leased equipment in case they fail therefore you will save both maintenance and purchasing equipment at the end of equipment lease.

Overcoming budgetary limitations!

If you have a small budget that is not enough for buying new business equipment especially if you are starting up a business, leasing can be the best option for your business start-up. Operating budgets tend to be more flexible than a capital budget and we can ensure that our leasing terms are flexible as required by law and also negotiable depending on your business needs. Moreover, our leasing terms are better than standard bank loans thus making payment even more better and flexible.

Avoidance of obsolescence!

Obsolescence is among the major problem which many businesses face because the technology changes from year to year. However leasing equipment allows your businesses to develop since our lease terms can be structured in a way that can handle these changes. Therefore, your business will have a solution to the equipment which depreciates quickly. Plus our leasing terms makes it easier to add or upgrade technology in order to meet the ever changing needs of your business.

Speed!

Sometime buying some equipment may involve a lot of documentation thus making the whole process to take long period of time before it is completed. However, this is not the case with equipment leasing. Leasing allows you to respond quickly to new opportunities with little documentation & red tape. Equipment leasing companies can approve applications within a few hours.

Flexible in terms of options!

When you lease equipment for your business, you will have three options at the end of the term: you can opt to return the equipment, extend the lease for an additional period of time or can purchase the equipment from the leasing company at the end of lease term. These options are not available when you buy your own business equipment.

Tax benefits!

Equipment lease rental payments might be fully tax deductible and can come out of your business funds before they're taxed. If you buy new machines from your working capital, it means that you are using money that you have already paid taxes on. Therefore, this means that by leasing equipment, the total cost of ownership can be lowered for your business.

How Much to Pay For a Business

The methodology outlined below is a simplified approach and as purchasing a business is a very significant step and every individual's circumstances are different, I strongly recommend that you speak with a professional advisor familiar with your personal situation and needs before entering into any binding contract.

VALUING A BUSINESS: CRITICAL POINTS

There is no right or wrong amount - There is only what you are prepared to pay and what the seller is prepared to accept - nothing else is relevant.

How much to pay is based on what CASH you can realistically expect to generate from the business in future years - (There are many valuation methods available from complicated mathematical formulas to a simple percentage of sales. These methods make a good cross-check to the method suggested below).

HOW MUCH TO PAY - THE METHODOLOGY

STEP 1: NORMALISED PROFIT

Calculate a "normalised" annual cash profit (before tax) the business is likely to earn next year based on its past history. This is usually done by beginning with Last Year's annual profit and making adjustments for items

incurred last year but won't be incurred next year

to be incurred next year but weren't incurred last year

Non-cash items

Examples of items you could adjust for

INCREASE PROFIT BY

Any wages or benefits paid to the business owner (or people related to the business owner) who will not be continuing when you own the business. This is not just wages but superannuation, medical benefits, motor vehicles, non-business (or slightly business) travel etc.

Interest Paid and any Other Finance Costs (that you will not be responsible for)

Depreciation and any other Non-Cash Items

Any Non-recurring expenses that occurred in the prior year (e.g. legal fees on a case which is now resolved)

The expected annual profit of any new (major) customers not included in the past year's sales

DECREASE PROFIT BY

The market wage & benefits payable to you and any partner/relation that will work in the business (the amount is what you would be paid if the business was owned by a 3rd party and not necessarily what you will actually be paid)

Any expenses that will be incurred in future years, which are not included in last years' profit (e.g. the business moved premises 3 months ago into a more expensive site - decrease the profit to reflect the new rental for the next 12 months less what was paid last year)

Any revenue earned last year that would be considered abnormal or not likely to occur next year (e.g. a large client was lost to a competitor, a "special" job which won't occur again)

If there is likely to be significant capital expenditure (new equipment) over the next 3 to 4 years then an adjustment should be made (usually the cost of the equipment divided by the estimated years it will be used in the business)

At the completion of this stage we will have a value which represents the NORMALISED CASH PROFIT. This is the amount of profit before income tax that the business is expected to earn next year if it continued to run as it has done in the past.

STEP 2: SELECT AN APPROPRIATE MULTIPLE

There have been books written on what multiple to select and why, but here's a RULE OF THUMB which has served me well through many purchases. There are 2 ranges

Smaller Business (Profit less than $100,000) 2 to 3

Medium Business (Profit $100,000 to $500,000) 3 to 4

(This methodology is not suitable for larger businesses)

STEP 3: CALCULATE THE VALUATION RANGE

Multiply the NORMALISED PROFIT calculated in Step 1 with the MULTIPLES in Step 2.

E.g. If you had a normalised profit of $150,000, the valuation range would be $450,000 to $600,000

STEP 4: NARROW THE VALUATION RANGE

To narrow the range further compile a list of factors which either improve or detract from the certainty that you will earn the normalised profit amount calculated in Step 1. Each factor that improves the certainty will support paying a higher amount in the range, each factor that detracts from the certainty supports paying a lower amount in the range. Based upon the number and importance of the factors in each category will allow you to tighten the range to either the lower, middle or upper portion of the range calculated above.

Examples of factors include

1. Age of Business

A business that has existed for 20 years is likely to have more certain earnings and be more established in a market than a business that has existed for 2 years

2. Size of Business

Generally the larger the business the more likely the business would survive any negative events

3. Certainty of Revenue Stream

There are many items that might improve or detract from revenue including