Should You Buy a Business Instead of Starting Your Own?

buy a business or start your own?Starting a business is definitely not easy. However, many potential business owners take the much more secure choice of getting a well established business as this option can minimize the risk, the stresses and the challenges.

Buying an established business can also make obtaining finance less complicated. Having said that, buying a business is also a tough task and needs proper consideration.

Are you personally up to running a business?

When you operate a business your credibility is at stake along with your capability to run a business. When you operate your own business, its success and your well-being depends totally upon you.

You should not only have the technical knowledge but also the maturity to run the business successfully. Running your own company requires you to manage difficult customers as well as difficult staff. Business can be unpredictable and when cash flow is tight, your stress levels will be up.

Finding the right business

Use experts to help you find the right business. There are specialist agents who look after the sale of businesses and they can help you discover the best business available for you. These agents specialize into different categories based on the type or size of a business. For example, some brokers deal with a businesses that have sales turnover under $5 million while others specialize in larger companies.

Doing the background check

You have to carry out a full background check of any business that you intend to buy. Does it have a great capital? What are the sales like? How is the cash flow or are sales often tied up in accounts payable. What is the inventory and how is it valued? Valuing a business is a part of this background check. A company appraisal analyst will help you determine its real worth.

Preparing to takeover the business

Having a thorough strategic plan in place will certainly allow you to complete the whole purchase deal in no time and give you focus for moving forward. So spend time laying out the strategy and then execute it in proper order.

Small Business: Why Good Management is Key

small business management is key

A typical Portuguese cafe

 

Managing a small business enterprise is conceptually straightforward yet practically difficult.

It is essential for the owner or manager to know the best ways to oversee their organization, especially if your aim is to grow your business. Time, money, marketing and employees have to be administered efficiently and effectively for the business venture to prosper.

The Best Ways to Manage a Small Business

1. Business Plan

The first thing you should have, but is missing in most small and local businesses, is a ‘Business Plan’. An effectively drafted and meticulously formulated business plan of action helps a good deal in the proper leadership of any business, large or small.

The business plan helps people to appreciate all of the parts of that particular business and actions associated with their operations. It gives you goals and objectives and key measurements.

2. Financial Management

Financial management profoundly influences the outcomes of your endeavour. Consequently, it is vital to administer the financial resources wisely.

Cash flow estimates are beneficial when executed effectively, to ascertain the amount of cash needed at a specific moment and make sure that extra funds are obtainable on any occasion they are required.

Excellent management is going to make sure that borrowings requested can also be repaid quickly.

Proper accounting and bookkeeping records of all transactions are also vital to help improve fiscal management. Using the best small business accounting software application also decreases the time and energy invested in balancing and accounting for the business organization finances.

Reinvesting revenues generated in business investments is also an excellent indicator of good supervision. Not doing this has been the downfall of many otherwise successful businesses.

Make sure that all the tax returns are filed on time and opt for a sound insurance plan for the enterprise so the business is protected against adversity.

3. Human Resource Management

Managing employees in a business is often a difficult, yet essential task. You must ensure that they perform the responsibilities and duties given to them and at the same time, do your best to keep them motivated, happy and satisfied with job conditions.

Periodical reviews must be conducted to check their performance together with being sure that they are suitably behaved and that the perception and image they provide to clients represents the business well.

4. Sales and Marketing Management

Marketing strategy and sales are facets of a company that require proper control and management.

A business that does not consistently meet its sales targets is destined for failure. If the income goals and sales targets are not realized, make sure you have a ready strategy for an alternative course of action.

There are many promotional opportunities such as utilizing internet and email campaigns in addition to alternative marketing ideas such as print advertising, trade shows, public speaking and more.

 

To conclude, these are just a few ideas to manage a small business enterprise. When all facets of a firm are well coordinated and efficiently administered, the company has a much better chance of success.

Why using small business accounting software makes sense

small business accounting software makes senseLet’s face it. For the average small business owner, accounting can be fairly boring and time consuming. Good accounting software can make things a lot easier, as well as a lot less boring. Here are some of the advantages that you could obtain by utilizing a software program:

  1. Become more efficient
  2. Conserve cash
  3. Reduce errors
  4. Be more flexible
  5. Indentify more opportunities

Let’s look at these in more detail.

Become more efficient

Utilizing accounting software removes the need for documents that are distracting and often unnecessary. Staff can discover a new skill and be motivated to deliver far better outcomes when processes are simplified using software.

Conserve cash

Accounting software can provide the information needed to manage cash flow properly without the extra expense of employing a specialist financial advisor. With this, a business owner can check cash flow, profits and losses, debtors and more in a logical fashion. Another benefit is in identifying potential creditors’ discounts and managing inventory.

Reduce errors

Errors are more likely when accounting processes are done by hand and these errors can result in lost money or lost opportunities for a company along with other adverse problems. Accuracy is quite vital for any kind of business, and the right software application ensures they are avoided.

Be more flexible

A business owner may not need to be at the business location to review or process the accounting. These days there are cloud accounting options, but even using cloud file saving options can provide the flexibility needed to gain remote access to bank information, process receipts and payments, invoice clients, as well as examine the monetary condition of business at anytime or anywhere.

Identify new opportunities

The right accounting software program will certainly aid tracking all the transactions such as receipts, payments bank reconciliation, cash expenses, invoices for customers, invoices from vendors and also trends that are occurring. Identifying trends can help you identify opportunities either in increased sales of a product, or diversification or more such as new ways of earning money that may have been previously overlooked.

Conclusion

Studies have shown businesses that keep good to excellent bookkeeping records have a greater likelihood of success. There is no doubt that an easy accounting software program that meets your business needs is a great benefit.

Done regularly, all the accounts can be kept up to date easily and all the work is done quickly and effectively. Stressing over intricate accounting details is a thing of the past with this type of software application.

Starting a Business in the Hospitality Industry

start a business in hospitalityThe hospitality industry is one of the world’s major and fastest-growing sectors. Today, it ranks as the greatest employer on earth (after the government) offering a wide variety of jobs in different sectors within the hospitality, travel, and leisure industry such as hotels, resorts, and restaurants.

Starting a business in the hospitality industry

Listed below are key success factors in starting a business in the hospitality industry:

1. Determine the Best Location

Location has been the most crucial critical success factor traditionally. In the right location, where competition isn’t fulfilling all customer needs, a hotel can thrive. However, in an area that has heavy competition from existing hotels, success might not be so forthcoming.

2. Plan for Capital

Whether the business owner has a hotel, builds one from the scrape, or refurbishes a building into a hotel, an enormous amount of money is needed. Where capital is not available, it can be borrowed from Commercial or Investment Banks.

3. Have a Business Plan

A straightforward, clear, and realistic business plan is necessary. As a sound entrepreneur, not only should you think about your own concern, but you might have to also convince any lender or investor why it is a viable business opportunity.

4. Provide Exceptional Service

Hotels can achieve high levels of success if the staff is knowledgeable, courteous, and capable of resolving any issues that arise. Providing quality service also includes remembering the names and preferences of repeat visitors and giving advice about attractions and surroundings.

5. Structure a Smart Pricing Strategy

Set a smart costing strategy that raises hotel occupancy. Determine room rates predicated on market and costs research. Pricing factors include:

  • Staffing costs
  • Room category
  • Time and amount of stay
  • Maintenance costs
  • Competition pricing

6. Be Flexible

Customers can have different expectations of a hotel, so your staff needs to be given the power to make decisions to support them when possible.

An administrator with the expertise in critical decision-making can turn a predicament into a workable situation.

7. Focus on Quality Management

Quality management includes staff satisfaction and involvement.

By concentrating on staff satisfaction as well as customer service, the likelihood of employees being happy can be increased and, subsequently, they will provide excellent customer service.

8. Employ a Strategic Marketing Plan

The goal of a good marketing plan is to ensure long-term success. Employ a strategy that will reach the target market segments. Use marketing, public relations, advertising and sales efforts to gain brand recognition and ultimately drive revenue.

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