"People Don't Plan To Fail in Business ... They Just Fail to Plan"®
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"People Don't Plan To Fail in Business ... They Just Fail to Plan"® |
Joyce Arbic is a successful business woman and respected entrepreneur who has owned many businesses in her lifetime. After years of learning the strategies to build and operate a successful business, she has chosen to share her knowledge with you. She has experienced the peaks of success as well as the harsh realities lurking in the "business jungle." Joyce presents her methods for building and sustaining a profitable business in a straightforward and no-nonsense fashion. She is direct, honest and open about what it takes to enter, improve or exit a business.
The Business School of Hard Knocks video course tackles the toughest issues that face today's business owners. Whether you are thinking of starting or purchasing a business, or you want to accelerate profits in an existing business, this "pull no punches" course will give you practical methods to succeed. From surviving an audit to revealing essential business formulas to strategies to balance your personal life and your business life -- this course delivers real answers.
This course is designed specifically to be an easy-to-follow, comprehensive video course to help you get the inside view of what business ownership is all about. It teaches the skills and gives you the tools to operate a successful business. Joyce shares with you how to tackles business challenges before they become hurdles to your success. From taxes to insurance, building maintenance, employee hiring and firing, product promotion and marketing ... if you don't know how to react fast, you'll be out of business.
As Joyce is fond of saying, "People don't plan to fail in business, they just fail to plan.®" So, at the very beginning of her video seminar, she discusses whether or not owning a business is right for you. Owning your business can mean long hours, often at the cost of personal relationships. The lifestyle of a small business owner is one that is not suited for everyone, so before you take on such a large responsibility, make sure your business is something you really love. The key to success is remembering that true success is a continuing journey not a destination.
Success comes from hard work and organization. The Task Lists will be the best friend of every small business owner. Make sure to have goals written down so that you can refer back to them. Inevitably, emergencies will arise that need to be dealt with immediately, so task lists and written goals become mandatory to the success of business venture. A successful business also comes from very careful planning and that takes time. Business owners need to keep their hands on the pulse of their business, find the weaknesses to get rid of them, and grow the strengths of the business.
It is vital for a business owner to stay on top of things because the consequences of when a business fails can last for years. Unfortunately, sometimes even all the hard work can lead to factors beyond the control of the business owner. However, there is a lot that can be done to stack the odds in the favor of the business owner. Base business deals on facts and concrete information, not on gut instinct, or "good feelings." Carefully research the financial standing of everyone with whom you do business. Be aware of the emotional costs that are involved, both to you and others, when a business is in trouble. Make sure you always have enough money to pay your bills. Know when to close a business and cut your losses and have an exit strategy if you are in trouble.
Being a successful owner is also about knowing yourself as well as making smart business decisions. You need to be able to recognize your limitations, delegate responsibility when possible, strive to be as organized and efficient as possible, and have positive mental outlook on life. If you are someone who gets easily stressed out, then business ownership may not be right for you. If you are thinking of entering into business with a spouse or family member, be sure that relationship is one that can withstand the rigors and demands of a business relationship. When it comes time to set your goals, create your own standards. Look at how other comparable businesses are doing in your area, and incorporate that research with your personal needs for happiness and financial success. Write down your projections and how long you think it will take to get there. Remember that every business situation is different, and you have to devise a plan that will best suit your needs.
Financial freedom, it has a nice ring to it. How do you determine the price for your goods? Should you base it on what the prices the previous owner had? Absolutely not. How are you determining you sale prices? Are you just trying to beat the prices of your competitors? Think again. How are you getting paid? Joyce gives you helpful financial formulas for each of these situations and much more. Of course a key to a successful business is knowing how to maximize your profit and not undersell your services. Researching your competitors pricing, setting your own prices while making sure that you have enough to cover your own costs is a delicate balance. It is easy to make mistakes, so take your time and if someone else does the books for you, do not assume that they will be doing things correctly, stay in touch with the situation, you are ultimately responsible.
Owning a business is not simply about covering costs, you also want to make money, so you have to know how to calculate your profit margin. In practical terms, you will need to know what your best seller is. You need to know how much the average customer will purchase when they come to your store. Once you have a beginning knowledge of your inventory and your industry you can create an accurate budget. The key to a successful business is knowing about every part of the business. Joyce will review each and every step of the way with you, carefully explaining how to avoid the common pitfalls of small business ownership.
Having a comprehensive knowledge of your financial background is crucial to the success of your small business. You need to know your breakeven point, and then in more detail your goal for sales per day, week, month or year. Know how long it will take you to reach your projected goals so that when unexpected events arise, you can figure those costs into your budget. Allow for an extra financial cushion in case of emergencies. What are start up and set up costs going to be for larger projects? Include money in your budget for advertising. The public needs to hear about your product in order to come and buy it! Finally, and perhaps most importantly, your budget will also need to include your salary.
Joyce takes you through all the steps of buying an existing business, from avoiding common errors and knowing the pitfalls to even recognizing opportunities. Becoming a business owner is time consuming enterprise and as such not something to be done lightly. Make sure that you have done proper research on the location before purchase. Do you have an established customer base? What is the real estate history been in the last few years? Talk to other neighbors and look at the surrounding properties.
When dealing with the seller, there will be a lot of information to collect. Ask to look at the accounts receivable, profit and loss statements, the seller's tax returns, vendors purchase histories, an employee handbook where applicable, and examine all existing equipment and assets. Full disclosure in a sale is a good indication of how a business is run. A seller who has nothing to hide will most likely tell you all want to know. Scrutinize how the business was run, from advertising, promotion, and average income; then decide where you can make improvements.
Buying a business means that you get to choose a name for your business. Take the time to trademark your name and do the research to make sure no one else has already used that name either in your state or nationally. Then you need to choose a structure and organization that is good for you, whether it be sole proprietorship, partnership, corporation, or LLC. Fully investigate each type of business before you purchase a business to see which type of structure best suits your needs and which will have the least amount of tax implications for you. Remember you are in going in to business to make money and to protect your personal assets.
Once you have taken over as the business owner it is important to help guide and motivate your employees. Remember to refer back to your written goals as a way to make sure that you are heading in the right direction. Referring to your goals will also be a way to measure the performance of the business. Written training manuals will safeguard both you and your employees from disputes. Should a crisis arise, have a backup plan, so that you do not lose your life savings.
Unfortunately, there are emergencies-fire, floods, and even the scary IRS audit. Joyce walks you through, step by step on how to be prepared, how to survive each scenario. You will learn how to stay organized so that your bookkeeping will be prepared should an audit arise. You can recover from a fire and rebuild better than before. Should a physical disaster occur to the building, you will need to get written estimates when you improve the premises. Be aware of all codes before you make any improvements. Meet with all health officials and environmental officials to review plans. As for financial crisis, you will learn what sorts of things attract the attention of auditors. Proper identification, articles of incorporation, and proper licensing will all toward smoother operation of your business.
A simple key to success is organization. Life for a business owner gets very full of paper very fast, so make it easy. Staying in control of the paper will be critical to your success. Organization is not only vital for the success of your business but also should someone need to step in and help you run the business in case of illness, or if you are away on vacation. It is always good to have someone else who knows how to run your business. Within your filing system, there will be two kinds of files, static files and dynamic files. Keep copies of all leases, agreements, proof of insurance, and certificate of occupancy on file. Static files are things that don't change very often, and dynamic files are in a constant state of flux. Keep everything inbound papers and documents in one area, and outgoing papers in another area. Anything having to do with money should go in a third area. This category will later get divided into checking credit card and cash receipts. All receipts should be kept for several years in a protective bin, in a clearly marked envelope.
As a new business owner, you will need to make your customers and vendors aware of your billing cycle. Make sure you have enough cash flow to cover your costs until all payments have been made. Have a policy ready to extend credit to regular customers and vendors. Familiarize yourself with the process of going to small claims court should the need arise.
Logs need to be kept for payroll and workers compensation. Keep emergency contact numbers for all employees, copies of W4 forms, drug and alcohol policies, and a current employee handbook. Employees should fill out a contact information form at the time of employment and a statement acknowledging that they have read the employee handbook.