Is your staff drowning in resumes? Are you finding it difficult to streamline the hiring process to meet the demands of your client? Have you given a thought to cloud-computing recruitment solutions that will help you identify the best and top candidates within seconds? There exists several recruitment management software that will make the entire process of hiring a little easier and free up paperwork. Online human resource/staffing software have numerous benefits, unlike the conventional methods of recruitment. We have put together a few points on why job placement agencies/staffing firms should adopt online human resource software.

Benefits of Using Online Human Resource Software for Your Business

• Increases the chances of finding the best candidate for the job – Online HR software streamlines the entire process of recruitment. When your job placement company releases an ad on behalf of your clients, whether the candidate applies from the career section of your website, replies to the ad in the local paper or the ones posted in various social media, his application will not be overlooked.

• Online HR software allows posting ads on various mediums - Ensure that you use the service of quality online recruitment software which will allow you to use multiple mediums such as social media, Internet ads and email. Another benefit of using online human resource software is that you will receive messages as soon as there is a vacancy that needs to be filled.

• Saves time and makes the recruitment process cost effective – Unlike the conventional and traditional methods of application screening and recruitment, online HR software will allow you to screen the applications quickly. This can be then moved to the applicant pool without further delay and the process of interviews can be initiated at the earliest. It is cost effective because you do not have to spend much on recruiting campaigns.

• Paperless documentation and better organization of documents – Paper documents can either be misplaced or accidentally discarded. When it comes to online HR software, they store all applications and information regarding the applicant. Data can be easily pulled up through the database. Most software will have the ability to set access privileges to the database if there is any confidential information that you do not want to fall into the wrong hands.

• Can be accessed from multiple devices – One of the benefits of online HR software is the accessibility to access anytime anywhere. In addition, it is developed in such a way that it can be accessed from devices such as your laptop, mobile phone, PDA and more. Therefore, whether you are traveling, in office or want to kill time during your morning commute, online human resource software is an ideal choice. It will ensure that you won’t miss an opportunity to find the perfect candidate.

What are you waiting for? Get hold of an ideal online human resource software that will allow you to customize the various modules as per your requirements.

In recent years, we have seen a lot of advancement in Internet technologies. Though cloud computing and online software are fast becoming popular, there are many businesses that are still reluctant to accept the change and take advantage of online software. Most online software’s are free or they charge a very nominal fee.

One of the most important online software tools any upcoming or established small business could use is project management. An efficient project manager would understand the purpose of project management software is to make the project more cost effective, coordinate the team and keep the project on track through the life cycle, avoiding missed deadlines. Therefore, you should not hesitate when it comes to using online software that has many added benefits than desktop based project management software.

Why your Project Manager Should Use Online Project Management Software

• Online software reduces administrative workload – Online software streamlines data gathering, task tracking and communication, thereby saving a lot of time. Instead of consolidating spreadsheets and spending time checking the status of each update, the project manager can focus on more important issues.

• Reduced risk of error from outdated information – Today, businesses hire remote workers along with in-house employees. Online software allows on-the-go access, anytime anywhere. Regardless of the geographical location, online software system is designed to facilitate communication among the team members. Team members can access them anytime; therefore, they are equipped with timely project management decisions.

• Priorities and resources can be adjusted – Tracking, a key feature of project management software, helps the project manager track the progress, milestones and deadlines of the various members involved on a project. He can also keep track of the cost of the project to make it cost effective.

• Accountability among team members – Online software makes the team members more accountable because their progress can be tracked and viewed by not only the project manager, but also by the entire group. Therefore, if one of the members fails to meet a deadline due to some unforeseen reason, the void can be filled by another member.

Keeping these benefits in mind, the small and medium businesses should incorporate online project management software in their firm. This will make work easier and more cost effective, not only the business owners but also for the project managers and the members of the project.

Flickr image by VFS Digital Design.

Your small business is similar to a ship. If it has to move forward quickly as smoothly as possible, it needs an efficient captain. Similarly, if your enterprise has to grow quickly and steadily, you need to be a good business leader. As a leader, you need to make things happen to set a good example, motivating and guiding your employees during the good and bad times. You cannot simply give instructions and passively wait for others to accomplish tasks. When such things occur, you are no more of a leader but a director or a boss. Your actions and decision making techniques should instill trust and confidence in your employees. This would motivate them to start performing better which will increase their productivity and your business graph will start showing an upward curve.

Effective Tips to Improve your Business Leadership Skills

As your employee’s employer, you do not want to appear incompetent before your employees. Leadership skills are not inborn or accidental traits; it can be learned and consciously put into practice in our daily routine. There is always room for some improvement in the way we lead others. Here are a few pointers that will be useful to sharpen your leadership skills.

• Do a reality check – Every small business owner should use a 360 degree survey tool to get the feedback from your employees (full time, part time, contract, remote employees and freelancers). You can simply let your employees know that you want their honest opinion about you and also ensure them that you will not use their feedback against them. Create a safe and neutral environment for them if you want them to be open and honest with you.

• Talk to your employees about your mission – From time to time, you need to talk with your employees about your mission and the plans for the future of the business. When you communicate your goals with your employees, they will know about the changes that you’re planning to make in the upcoming coming months/years. This will better let them know what their roles and contributions to the growth of the business are.

• Always maintain a positive attitude – Positive attitude has power in more ways than one. As a business leader, you should exude optimism which will help your staff avoid patterns of negativity. When the economic climate is unstable, businesses will face continual challenges. If you are not optimistic about your ways of conducting business, it can negatively affect the mindset and productivity of those who work for you.

• Be approachable and listen to your staff – Leaders are approachable. Your business will neither grow nor become successful if you have a bunch of people who are unhappy or disgruntled. Your leadership style should be such that people should be able to talk to you freely about their work issues. Inculcating good listening skills is mandatory to becoming a good leader. A good listener will convey empathy and show they are genuinely interested. Leaders will want to find out what’s behind the conversation.

• Appreciate and compliment good work – Recognize and encourage talent. Take time out to compliment and praise your team and staff if they have achieved something remarkable. More than incentives and certificates, these things matter. They will be motivated to have a higher level of performance. It will also cultivate a positive mindset and work culture.

• Share Responsibility – Hold yourself accountable – When your staff or team fall short of their performance, ask yourself a few questions such as “Where have I gone wrong?” “What could I have done differently to deliver a positive outcome?” and so on. When you are passionate and enthusiastic about what you do, you would be willing to take the responsibility of failure. If your employees love and respect you, they will be more than willing to share your sorrows and failures.

Even while making tough decisions, a good business leader will keep in mind the welfare of his team and all the people who work for him. Apart from motivating people and being a good business leader, it’s important to have charted out a good business plan to make your venture a success. Leaders will be quick to notice talents and create more leaders.

Become a great leader by using a Project Management App that will keep your tasks on schedule and completed on time.

If you are planning to start a business, you should have a realistic business plan. It is a document which describes your business, its objectives, strategies, target audience and financial forecast. It also contains your vision and mission for your business. You should have a rock solid business plan if are applying for business loans, grants, attracting external investors, potential partners and also anyone who is interested in buying your business in the future. Above all, when you have a good business plan in place, you will know what your goals are, the growth process of your business and the milestones.

Primary Parts of Business Plan

If you have a good business plan in place, it will do wonders for your business. However, it has to follow certain guidelines. A good business plan has mainly three parts:

1. Your business concept- Talk about the industry in which your business falls in, define your business structure, and discuss your products/services. You can also describe how you will make your business a success.
2. Your target market – This is the segment of your business plan where you mention who you are; who and where your audiences are; and why they should they buy your products/services. Describe how you will tackle your competitors, your unique selling proposition and how you wish to position yourself in the competitive market.
3. Financial section – This is the last segment of your business plan. This part of the document contains your income and cash flow statement along with the balance sheet and break-even analyses. Hire a reputed accountant to help you make this part of your plan.

Key Components of a Business Plan

The primary segments of the business plan can be further divided into key components. They are:

• Executive summary – This passage is vital because it contains the overview of your business. Potential investors and lenders make their judgment based on this section.

• Business description – Gives an idea about who you are, what your products/services are, why you chose them and to whom you will sell to.

• Sales and marketing strategies – Mention the benefits of your product/services that will attract your potential customers, and how you plan to market them in a competitive market when the economy is reviving after a downturn.

• Your team – Show off your management team and skills to better understand why your business will be a success.

• Operations – This section tells about the premises of where you want to conduct your business and the facilities of where you will be managing your business.

• Financial plans – This is nothing but your financial plans. How much capital you need from external sources, the security you offer lenders, how you plan to repay and how soon. Also, mention your source of income and revenue to invest in.

Who Needs a Business Plan?

Anybody planning to start or extend a venture needs to have a good business plan in place. This is because you are putting in a significant amount of money, energy and time and you expect a profit in return.

• Startups - Corporations were all once a startup. It takes some convincing with investors to put money into their business but it is doable.

• Established companies - Many established firms also need a solid business plan. That is when they decide to diversify the business, make huge changes in their business operation strategies or want to convince their investors to invest more money. If they plan to sell their business, established firms seek help of reputed business advisors to chart out a plan which will appeal to their potential buyers.

Remember, that it is just not the start-ups, or the cash starved firms that need a business plan. Anyone who wishes to open and operate a business needs to have a full proof business plan.

Flickr image by nmlphotography

Spring cleaning is not for your home alone. You have to spring clean your business every year. Business spring cleaning is not about removing the clutter that has accumulated over the past few months. Here we are discussing how to clear away the cobwebs of a recession and revisit the business goals. Now is the best time to start dusting off your accounts and start looking at what your expenditures are and how to implement effective cost cutting techniques to reduce your expenses. If you are not sure where to start, don’t worry, we have put together some of the easiest ways to spring clean your business.

Spring Cleaning Tips for your Business

All small businesses change in the course of a year and it’s always good to take a look back. This will help you revamp your business, make small/big changes or even diversify your business. Here are a few pointers that will help you shake off those winter blues and get a fresh start.

• Refocus your business – Remove the products/services that have outlived market demand because they no longer add value to your business. Remove all unwanted clutter including emotional luggage at work. For instance, if you have any issues with your employees, find time to speak to them, discuss issues and see if you can facilitate a fresh start.

• Get the help of an expert – If you are not sure how to go about spring cleaning your business, you should hire an expert. It is similar to getting the help of tree-trimmers or housekeepers to spring clean your house. There are business advisors who are expert in identifying organizational clutter.

• Leverage employee talent – Conduct a small in-house survey to identify the strengths and weaknesses of your employees. Also find out where their talents lie and make efforts to rewrite their job descriptions. This will increase the productivity of your employees and enhance business growth.

• Revaluate your vision and mission statement – If you have diversified your business according to the market, then it is high time you re-look into your mission and vision statements. Match your statements to that of the company’s goals.

• Modernize the company’s brand – If your business is catering to new markets, then it is time to re-look into the company’s branding and marketing strategies. Fresh packaging with additional benefits will always attract new customers and retain the old ones.

• Do not forget to sharpen your tools – If you want to have an edge over your competitors, you should introduce the latest techniques to your employees. Sharpen the skills of your employees by providing them the required training.

• Listen more to your customers/clients – An entrepreneur is one who values his clients’ inputs. Focus on what your potential customer wants, listen to him and ask the right questions pleasantly to convert him into a life long customer. Always put yourself in their shoes if you want to remove obstacles.

As a part of spring cleaning, try implementing new strategies to acquire new customers. If you have not tried the social media channels, create a Facebook page for your business, LinkedIn or Twitter. Hire a social media marketing expert if you need help. Revamp your website to attract more web traffic. Retain your key employees who were with you during crucial times while transforming and modernizing your business. Time to get to spring cleaning.

Flickr image by OnTask

“Your credit information can be a factor in whether or not you can rent a nice apartment, how much you pay for insurance or whether or not you can get a job.” - Liz Pulliam Weston (American Author)

It is a fact that today’s economy runs on credit. There has been a shift in the economic climate in the past decade that has lead to certain awareness in both lenders and borrowers. In the past, it was easier to get loans even with sub-prime credit score. However, it is now very difficult to procure loans with a good rate of interest even with a near-prime credit score. Credit score ranges between 300 and 850, with 850 being the best. With the current economic scenario, if you want a loan with prime interest rate your credit score should be over 700.

Importance of Credit Rating in a Credit Transaction

If you are applying for a loan to buy a car or a house, good credit history plays a vital role.  Here are two things that are determined by your credit rating during a credit transaction.

1. First, your credit score determines whether you qualify for a loan or not. If your credit report reflects poor credit, then it is going to be difficult to get any type of loan.
2. The second point is that credit score will determine your rate of interest. Qualifying for a loan alone is not enough; you need to get a prime interest rate. If you have a credit score of over 700, the bank will see you as a smaller risk of default and you will most likely get a low interest rate loan. Or else be prepared to pay a high interest rate because the bank sees you as a bigger risk. If your credit report reflects poor credit history, it can mean the difference of thousands of dollars over the life of a loan.

Will Credit History Affect your Non-Credit Transactions?

Your credit score is a measure of general fiscal responsibility of an individual. Therefore, it is not only associated with credit transactions but also with non-credit transactions. Here are some ways that your credit score may impact your non-credit transactions.

Service providers – If you want to get a new cell phone or satellite TV service, prior to getting connected, the service provider will run a credit check. Many service providers would want a minimum credit score before letting you sign up.

Renting a house – Before renting a house or an apartment, the landlord will ask to check your credit score. If your credit score is below a certain number, you may have to put down a large sum as a security deposit before moving in.

Getting a job – Many employers are checking the credit score of their new hires along with employment background checks. If you have poor credit history, you can be passed over for a job.

Insurance Premiums – Whether it is your auto insurances, health insurance or accidental insurance, if your credit score is low, you will end up having to pay a higher premium. Despite having a decent driving record when you apply for auto insurance, if the credit report is not satisfactory, you will have to pay a higher premium.

A good credit report means you can get a better auto and home insurance. You are also eligible for a home mortgage loan at a reasonable rate of interest. A good credit report indicates that you are a responsible and reliable person.

Being your own boss comes with a cost. You are responsible for record keeping and putting a good tax strategy in place. The IRS (Internal Revenue System) audits freelancers and independent contractors routinely because they are suspicious of self-employed people. The IRS keeps an eye on those self-employed individuals whose (a) business is incurring heavy losses year after year (b) wages are high but are incurring high business losses (c) freelancers and self-employed professionals whose income is shown as less compared to the people in the same profession. If you belong to one of the above mentioned classes, then you need to have a good self-employment tax strategy in place to protect yourself from the IRS.

Tax Tips for the Self-Employed

Prior to tax planning, you must understand the difference between a self-employed individual and one who works full time. You should also know that self-employed professionals do not get taxes deducted from their pay. Therefore, they have to pay taxes periodically throughout the year in the form of estimated taxes. If you want to reduce the amount of money you pay on taxes, then you need to keep track of your income and expenses and also the amount you pay as estimated taxes. Here are a few pointers that will help you plan your tax strategies.

• Strive to know more about self-employment taxes – To plan a water proof tax strategy, you need to have the proper and correct information. This will help you calculate and determine the amount you have to pay on tax every year.

• Make regular quarterly payments to avoid interest penalties – It is wise to make estimated payments to avoid penalties at the end of the tax year. This is one of the strategies you need to consider.

• Take advantage of tax deductions – There are many tax deductions that you can incorporate into your tax strategy. Some of them are office supplies, travel expense, cost of utilities and the home office tax deduction (if you are operating from home). Keep track of your expenses and get receipts for all your purchases.

• Health care expenses are deductible – Those who are new to self-employment are unaware that a portion of their health insurance premium is deductible. You qualify for tax deduction as long as the health insurance is financed by you.

• Retirement plans – Take the advice of a good tax advisor and apply for an employer sponsored retirement plan. A few good retirement plans include SIMPLE, IRA and Keogh Plans.

IRS Tax Tips for Self-employed

Independent contractors and sole proprietors fall under the category of self-employment according to the IRS.  Any additional part time work you undertake along with your full time job is also self employment. The IRS has lots of useful resources for the self-employed. Here are a few pointers that the IRS wants you to know about self-employment and self-employment taxes.

• All self-employed individuals will have to pay self-employment (SE) tax and income tax. The combination of Social Security and Medicare Tax makes the SE tax.

• If you are self-employed, use Form 1040 Schedule SE to compute your taxes. The SE tax for 2011 is 13.3%.

• If you pay self-employment taxes, you can deduct half in figuring your adjusted gross income on page 1 of Form 1040.

• To report your profits or loss of your business, you have to fill Schedule C of the Form 1040.

• If you don’t pay your taxes quarterly, then you will end up paying a penalty at the end of the tax year. Remember, you have to make an estimated tax payment which includes the tax on your income if you are a full time employee.

• Business expenses have to be both ordinary and necessary if you want to deduct the expenses from Schedule C. The expenses that are common in your field of business are known as ordinary expenses whereas expenses appropriate to your business are known as necessary expenses.

It is always good to take the opinion of an expert in the area of taxes. They would be able to guide you in filing in your income tax returns. However, ensure that your book keeping is perfect and flawless.

Flickr image by 401K

Recently, Google launched a program to help small businesses set up their own websites known as ‘Get Your Business Online’. This program was in about 20 countries including Brazil, UK and Kenya. A study conducted by BIA/Kelsey reveals that these days, almost 97% of consumers turn to the Internet to search and research products/services in their local area. A stage has come where it is imperative for businesses to have an online presence. Ad-ology conducted a research in 2009 revealing that only 54% of small businesses had a website. However, its most recent research in Small Business Marketing Forecast 2012 establishes that 82% of small businesses have a web presence. In the past, Google has launched Google+, a social media channel to help small businesses. Let’s take a look into Google+ and how it can help your small business grow.

Advantages of Using Google+

• Google helps to circle your clients – Google+ helps businesses of every size connect with their customers. Google+ helps connect you with your target audience as well as the people within their business network. Google circle’s is similar to fans on Facebook and it is up to you to design your circles to blend and fit your needs.

• Hangouts help you interact face to face – There is a feature on Goolge+ called ‘Hangouts’ where it allows you to hold video chat to connect with employees and customers. Google+ enables you to put a face with a name in the virtual world and helps to establish stronger customer relationships. Hangouts On Air is a new feature Google+ launched where anyone who can join or watch a video conference in real time. The video can later be seen on YouTube or Google+.

• Improves your search engine ranking – Google search engine indexes the content that is posted on Google+ business pages. Therefore it will do wonders to your SEO and give you the extra added exposure you need. When someone clicks the +1 button of your website, it will generate 3.5 times more traffic. Therefore, include this feature on your website.

Tips for increasing your brand Awareness on Google+

• Open your account with your real name – The customers are particular about authenticity of any business they want to deal with. When you open an account with your name, it will signify your authentic presence. It is not just the consumers who will look you up by name, but the investors as well.

• Create Google+ Circles logically – You should organize your business partners, employees, investors and friends into separate circles. This allows you to set privileges for your blog posts and photos.

• Post occasional coupons and specials – You can engage with your visitors and customers by carefully posting special coupons during festivals or the holiday seasons.

• Send private messages - You can type private messages to those who are interested in your products/services. It’s as simple as typing the message and removing the Public Circle to those that are shared and only share it with the customer.

• Regularly check for notification alerts on the upper right side of the screen - Here you can see who is following you, the new comments on your blogs and so on.

• Use the feature Sparks to track the latest topic – Add the search keyword to get the latest news and trend in your industry.

• Make use of the +1 feature - When you see a blog post you like, click the +1 so everyone, including the author of the blog, knows you have the read the story and liked it. This will increase the engagement with like minded users.

At the moment, it is too early to give a whole hearted opinion about Google+. You can say that it is more of a business minded social media application than a recreational one. But it is a tool here to stay and all small business owners should make use of it as a PR outlet, advertising, promotions and get your message across to your audience with just a click.

Flickr image by Magnet 4 Marketing dot Net

April 17 2012 is just around the corner and it is time to file my business and personal taxes. I have been too busy and now I am scrambling to get my business tax returns prepared and believe me it is driving me crazy. I think, I should just file an extension. And I will get ample time till October 17th to get my return filed. Thank god, I am a sole proprietor; else I would have to file the return by September 15th.

An estimated seventy eight percent of all small business owners are self-employed. The business taxes are tied to the personal tax returns for most of the small businesses that are not corporations. That means, most of the small business owners pay their personal income taxes on their share of business profits.

The tax extension 2012 request deadline is April 17th 2012 for filing Individual tax returns for 2011. You will be subject to penalties and interest if you do not send the estimated taxes you owe to the IRS by April 17, 2012. The individual and partnership business can apply for the tax extension till April 17, 2012, whereas for a Corporation the extension ended on March 15, 2012.

Wondering why this year’s tax extension due date is on April 17? April 15, 2012 falls on a Sunday and the next day is observed as the Emancipation Day and it is a holiday in the District of Columbia.

When you file for tax extension, you are given an additional 6 months by the IRS. During this extra time, you have to prepare and file your tax returns. You have to use the IRS Form 4868 if you are filing individual taxesr. The partnerships and corporations will have to fill out IRS Form 7004 while applying for tax extension. You can apply for your tax extension online or download the form from the IRS website and mail it.

An important point that you need to understand is that you do not get an extension for paying your tax bill. The extension is only for preparing and filing your tax returns. If you owe money to the IRS, either pay it online while you apply for extension online or include a check for the amount due when you are sending it via postal service.

Advantages of Filing an Extension Application

• You get enough time to find more deductions - Many tax advisors advise small owners to apply for extension to take advantage of all possible deductions. It can be smart to file an extension because when filing your returns in a hurry, you are likely to miss some common deductions.

• Gives you time to get a second opinion – Though you will have to pay two tax return preparers, it is always better to compare the opinions of two tax preparers. It will be easier for them to review your return after April 17^th, when they have more time in their hand.

• Reduces the chances of Audit – File the applicable forms by the due date and it will greatly decrease the likely hood of getting audited by the IRS.

• No penalty – Don’t worry about receiving a penalty for filing an extension or being questioned by the IRS. You will receive a direct confirmation from the IRS that your request has been approved.

Along with merits there are also a few disadvantages when you file for an extension. You still have to pay your tax amount even if you file for an extension. That is you need to pay 90% of the tax due by April 17, 2012 to avoid the penalties for late payment. If you have to pay more than 10% later, you will be charged with a fine.  When there is a delay in filing your taxes, it will further delay your refund. Therefore, if you are expecting a refund, then it is always better to file your returns early. In case you later realize that you should be getting a large sum as a refund, you can always amend it.

Flickr image by MoneyBlogNewz

“The economy has had a dramatic impact on exit strategies” Terry Thompson (attorney with Gallagher & Kennedy PA, Phoenix)

Have you ever thought of an exit strategy as a part of your business plan? Can your business continue if you could no longer run it tomorrow? The question that arises in your mind would be, “why should I think of an exit strategy when I’m not ready to sell my business?” As a business owner, you need to understand that an exit plan will prepare you better for the inevitable transition of your venture – whether it is expected, unexpected or as the outcome of any undesirable circumstances that can or do arise. You can say that a business exit strategy plan is similar to your personal will that you would leave with your attorney.

Experts Say Business Owners should have Exit Plan Prepared

A global survey conducted in 2011 by the Korn/Ferry institute on 1,300 company’s reports that 98% of business CEO’s say a succession plan is important. However, only 35% have one in place. The reason being, exit strategizing is rarely at the top of a business owner’s priority list. “Part of what’s hard for them and what holds them back from planning is that they didn’t get into (the business) to get out,” says Shill, an attorney at Phoenix law firm Jackson & White PC. Here are the reasons why you should not delay putting an exit strategy in place.

• Having a business exit strategy in place can help to mold the business in the way you always wanted. It helps to keep the goal of maximizing the value of your venture. The value of the business will be greatly affected if you do not have a business exit plan in place.

• A business exit plan helps groom your successors, whether they are chosen from within the family or from the business management team.

• You can make an exit at any point in time when the market is booming or when the business is reaping profits.

• Remember, if you ever wish to sell your business in the future, you need to have a business exit strategy in place today. Or else it will also affect the future success of the business and your tax liabilities.

A Few Exit Strategies that you Need to Know

• If you are in a partnership business, sell your shares - When you are ready to retire or move on to start something of your own, you can sell your equity to the existing partners or to any employee whom you feel is eligible for partnership.

• Allow your business to run dry if you are a sole proprietor – Once you have made the decision to exit, you can increase your personal salary and pay yourself a bonus. However, ensure that you settle the debts if any. You can liquidate your assets before closing the doors. But remember that with larger income comes larger tax liability.

• Liquidate your business – Here, you can negotiate your business with your buyers. In most cases, it is sold at the market value. Since it is a simple approach, you are likely to reap the least revenue.

• Merge – If you believe that two businesses can create more value than one company, then go ahead and merge. The merger may be your ticket to exit. If you do not want to be involved in the day-to-day functioning of the business, you can always take the role of an advisor. However, if are planning for a total retirement, then you need to call the head of the other firm to stay on.

• Acquisition – Here, you have to choose your acquirers wisely to en-cash on the value of your business. Have a good business attorney value your business before you meet with the acquirers. Having a good business plan in place will fetch more than what you might otherwise have earned in a sale.

All entrepreneurs should include an exit strategy in their start-up business plan. The strategies can be reviewed and revised according to the changes you make in your business or at the time of your annual business planning and budgeting. If you are an established business owner and do not have an exit plan yet, consider having one in place at the earliest.

Flickr image by friggy_30

Winning an honor for your company is every entrepreneur’s dream. Awards make your employees proud and it will set your business apart in the minds of your potential and loyal customers. However, you cannot win an award by just day dreaming about it or sitting by passively. You have to apply for the awards and enter competitions. We have put together a few awards and contents for small businesses; which you can apply for between the last week March and end of May.

• Biz 10th Anniversary Contest, last date for entry March 31, 2012

Whether you are a startup or an already established small business, you can share your success stories with viewers. You will have to mention how having your .biz domain has helped increase awareness of your brand image. The winners will receive awards and a best of .Biz seal to recognize their website.

• 2012 SCORE Awards, last date for entry March 31, 2012

SCORE awards are given to honor innovative and successful entrepreneurs. The various categories SCORE awards include Outstanding Green Small Business, Outstanding Minority-Owned Small Business and Outstanding Veteran-Owned Small Business.

• Grow America Springboard Competition last date for entry April 6, 2012

This contest allows SMB owners to compete for cash awards and business services. The awards will help winners create new jobs or expand their business in such a way as to revive the local economies. Grow America will provide $1,000,000 in cash awards and resources over the course of three events in 2012 and well into the start of 2013 for the Utah State Championship.

• One Woman, One Franchise last date for entry April 6, 2012

This contest is on Twitter ((#OWOF) for women. Participating woman should be interested in purchasing a franchise of Franchise King. The winner will receive franchise ownership advice from Joel Libava, the Franchise King, as well as a package of services to get you up and running with a franchise — including incorporation filing from CorpNet, a press release and a 6-month subscription to LivePlan.

• Leading Moms in Business Competition last date for entry is April 16, 2012

This contest is conducted by StartupNation for women in businesses who are also a parent. The judges will determine special awards and accolades for the top 200 moms.

• Inc 500/5000 enter by April 30, 2012

You can enter your business for this award if you are proud of your company’s growth over the past 3 years. This award is only given to the best entrepreneurs and is considered to be the gold standard of entrepreneurial success. Your business will be listed along with other leading companies in the September 2012 issue.

• BBB Small Business Customer Service Makeover Contest enter by April 30, 2012

The contest is open to all small businesses located in Eastern Massachusetts, Maine, Rhode Island or Vermont. The contest is free to enter and the winner will receive up to $5,000 in cash and material funds. This will be an opportunity to receive professional advice, improve business practices and a chance to expose your business and create brand awareness.

• Downtown Ithaca’s Race for the Space Enter by May 1, 2012

The winner of the Race for Space will get a package worth over $40,000 which includes free rent for prime office space, a one year advertising package in the Ithaca Times and more.

• 2012 Lanza Enterprise Awards Program (LEAP) Enter by May 3, 2012

This award is given to women entrepreneurs to boost their businesses and is organized by WEDC (Wisconsin Economic Development Corporation) in collaboration with LEAP. Cash prize worth $5,000 will be awarded to participants who attend the 15-week program provided they meet the award criteria.

• The New York Enterprise Report 2012 Small Business Awards Enter by May 21, 2012

The New York Enterprise Report Small Business Awards is the annual award program honoring the achievements and accomplishments of the 500,000+ small businesses throughout the tri-state area. This small business award will be given to a small business for their best practices, those who implemented programs to generate competitive advantages and profits.

For more details regarding each contest, you should visit their website. If you think we have missed any contests, please put it in our comments section.

Flickr image by nowwearetalking.photos

Are you looking to start, run and grow your small business? Whether you are a budding or an established entrepreneur, you should attend small business events such as trade shows, training programs or seminars that are held in your area. Small business events are great opportunities to make business acquaintances, share ideas, network and exchange business cards. This is also a form of advertising for your business, which is necessary to enhance the growth of your small business. We have put together a list of events that will be held between the end of March 2012 and June 30th 2012 in the US.

Small Business Events

Social Tech ’12 March 29 & 30, Red Lion Hotel, Seattle
Leading experts in social media marketing will speak on the importance of social media marketing in generating inbound leads and creating brand awareness. They will also teach you to use social media channels to increase your business revenue. Use this opportunity to meet industry insiders who will discuss the various best practices and proven techniques to remove current roadblocks.

Infusioncon 2012, April 2-4, Phoenix, AZ
Renowned speakers such as Gary Vaynerchuk, Pamela Slim and Geoffrey Moore are presenting on topics such as local marketing, social media and lead conversion. The event is conducted over a period of 3 days. There is an early bird discount; any registrations before March 31^st is only $275. For more details on event coordination contact 480.289.6826 or send an email to Innovation Uncensored, April 18, 2012, New York City
This event is an opportunity for new and established entrepreneurs to meet and network with people from various industries. You can share and also explore various smart business techniques and tools.

America’s Small Business Summit 2012, May 21-23, 2012, Omni Shoreham Hotel, Washington, DC
This is an annual event of America’s Small Business Summit conducted by the U.S. Chamber of Commerce. The aim of this program is to unite small business owners, managers and entrepreneurs from all over the country to share information, network and discuss common legislative and management concerns.

8th Annual Kentucky Innovation and Entrepreneurship Conference June 1, 2012, Louisville, KY
The conference will focus on the initiatives powered by science and engineering talent. This event is open to all small businesses, all faculty, postdoctoral fellows and students. You will be able to exchange scientific ideas and network with the best in the industry.

2012 Veteran Entrepreneur Training Symposium, June 11-14, 2012, Reno, NV
The symposium is focused on discussing the issues faced by veteran-owned companies. The focus of discussion would be on finances, sales & marketing and contracting.

Business Matchmaking Events Westin Galleria Houston, TX, May 23, 2012
Business Matchmaking provides opportunities for small businesses to secure selling contracts from government agencies and major corporations at key events. This event is targeted at small businesses with employees less than or equal to 250. Small businesses attend the business match making event to expand or team up with others to pursue contracts. Business matchmaking is an initiative started by a partnership between the SBA and HP. The events are free and provide a wonderful platform for networking in addition to private meetings with key buyers and counseling sessions with the representatives of SCORE, SBA and SBDC. A point worth mentioning here is that HP, Symantec and Dun & Bradstreet make available products and services to qualified small businesses, giving them the opportunity to sell to the most demanding federal agencies and other corporations.

The small businesses participating in this event will be personally processed to meet with key buyers from federal, state and local government agencies. Individual business counseling will also be provided by the representatives of SCORE and other resource partners.

The business matchmaking events are also held in Philadelphia, PA, San Diego, CA, Miami, FL, Nashville, TN, and New Orleans, LA. The registration dates will be announced shortly. Keeping checking the business matchmaking events site regularly.

It is a good idea for start-ups and established business owners to attend seminars and other business events that are held in their area. For more details, they should make it a point to visit their Chamber of Commerce at least once a month.

Flickr image by worldwaterweek

Did you know that the popular social networking channel Facebook is introducing new Facebook pages? If you have not logged on to your business’ Facebook page in a while, then it is time you do so. Whether you are ready to make the changes or not, your page will undergo a major change come March 30.  That means you have only a few days left to update your brand page. We have put together a few ideas to change your business page.

• Re-evaluate your social media plan – You should assess your social media marketing plans and see which plan is working best for you. Use Facebook Insights to reevaluate how your Facebook Page blends with your overall social media strategy. What are your goals? How do you plan to achieve these goals? How do you plan to monitor your brand through Facebook? How often will you converse with your audience? How often do you post Facebook content?

• Cover photo to create everlasting impressions – Facebook pages are being converted to timelines, similar to that of a persons Facebook page. This includes a cover photo, measuring 852 pixels wide by 351 pixels high. Your image should grab the user’s attention. Do note that Facebook has guidelines that you must follow. A few of the cover photo display guidelines include:

1. The price of the product
2. Contact information
3. User interface elements such as ‘Like’ ‘Share’
4. Calls to action, e.g. ‘Enter our new promotion here’

• Display your brand through profile photo – Choose your profile picture wisely because it is the first thing user see while browsing through the search results. It is a good idea to use your company’s logo as the profile photo. This will create brand awareness. Take note that the size of image should not be larger than 180 pixels by 180 pixels.

• Customize your tabs – Custom tabs have been moved underneath the cover photo. If possible, it is important to change the custom tab image to the dimension of 111 pixels by 74 pixels. This is done to create a bigger, more attention grabbing icon for your tabs. Change tab names to ‘Get 10% off’ or ‘Special Offers’ to attract customers. Strategically arrange the tabs of importance.

• Make changes to your landing page tabs – These tabs can be seen only if the users click on the tab icon. Use this feature to entice your fans to ‘Like’ your page if you want them to participate in voting contests and other promotional contests.

• Use timeline to narrate the growth and other events of your business – Who wouldn’t like to hear about your awesome business story? Use the Timeline to narrate the story of your business, going all the way back to its beginning. Mention important events, milestones of its growth and other achievements that your customers would be interested in. It’s an opportunity to add a personality and share with your fans the hurdles you have crossed to reach where you are today.

• Emphasize the key moments- Timeline allows you to highlight important posts in a strategic and unique way.

• Pin your posts – You can pin interesting content at the top left of the Timeline. However, you can only pin one item at a time and it will only be up for seven days. Create a special promotion which could be shared with new visitors.

• Your fans can send private and personal messages – This is a beautiful tool which must be explored by your marketing managers to interact with potential and old customers. You can serve your customers on a one-on-one manner by answering their private and personal queries.

Timeline Page is used to create brand awareness and therefore, the content that is posted plays a vital role in your social media marketing strategies. Once you have published your Timeline, ensure to consistently create engaging updates and include milestones that you feel are important for your followers to know.

Small businesses are the spine of any economy. If a small business gives back to the local community, the local community will support it. Finally, the growth of a small business depends on the policy of give and take. To support the growth of small businesses, a group of small business supporters got together to form a new phenomenon called “Cash Mobs.”

What is a Cash Mob?

This is the latest technique, or trend, to support local businesses such as mom and pop shops to tide over the recent economic downturn. The concept of cash mob is simple. Spend anywhere between $10 to $20 at a local establishment on a particular day to support the business in your area.

Cash mob originated in the in Buffalo, New York on August 5, 2011. This event was organized by a blogger, Christopher Smith in a wine shop. It garnered a lot of attention all over America. Later, on November 16, the same year it was officially organized in Cleveland, OH by Andrew Samtoy, an attorney. It became a success in the US after it was publicized on the National Public Radio. This phenomenon has spread to Canada and also as far as Australia.

It is worth mentioning here that “Cash Mobs” is not a political or social organization. The people who organize Cash Mobs are those who are trying to make a positive impact on the local businesses in the communities.

Cash Mob organizers are tapping the power of the Internet and social media, such as Facebook and Twitter, to spread the word to friends and acquaintances to announce locations.

Cash Mob Rules

Here are a few rules for those who are interest in organizing a Cash Mob in your area.

• You must announce the mob date at least a week from the actual date through Twitter.

• Though the location of the meet has to be announced, it is not necessary to specify the business to support at that that time.

• The people who are participating in the Cash Mob should spend at least $20. However, if they want to spend more, then it is up to them.

• The business you wish to promote should have products for both men and women and it must be a locally owned.

• The small business owner must approve of the Cash Mob before you make an announcement via Twitter. He must be someone who gives and contributes to the growth of the community in some way or another.

• The business must be within one block of a locally-owned watering hole. The event will occur in the evening on a week day or weekend.

• The organizers should make arrangements for parking space or public transportation.

• The time of the event, cash mobbers must get together for celebratory drinks and for photo shoots.

Details of International Cash Mob Day

International Cash Mob Day will be held on March 24, 2012  in Atlanta. Those who are interested will meet the organizers at the corner of North Highland Avenue NE and St. Charles Avenue NE at 2:00 pm. Look out for the blue sign. From there, the group will walk towards the secret location that will be cash mobbed. Check out Cash Mob Atlanta on Facebook. Pozole’s Restaurant is the local business where the cash mobbers will meet for the celebration drinks. When you present the receipt from the local store that has been cash mobbed, you can get a House Margarita, Tecate Cans and half-off taco plates at a nominal rate.

Cash Mob events not only bring business to the mom n’ pop stores but it is also an opportunity to meet people. Use this chance to broaden your social network circle. Here you are actually bringing business to two locally owned businesses – a shop and a restaurant.

Getting potential customers to remember and like a brand is a marketing art that is sometimes referred to as “sticky marketing.”  Here are a few great suggestions for making any small business marketing efforts “stick” in the hearts and minds of potential customers.

1)    Sticky Brand Name- Instead of choosing a name that is too dry or is difficult to remember, choose something that sticks.  Here are a few ways of making a brand name sticky.

1. Imagery- a name that creates an image in the mind of the consumer will help them to remember the name.
2. Short & Sweet- Short names are usually easier to remember than long names
3. Funny or Cute- There is a toilet seat brand that named them “Cushy Tushy.” I heard about them a few years ago and never forgot the name simply because it’s funny and cute.

2)    Sticky Marketing Message- A great marketing message that sticks should be something that people can connect to and appreciate.  Telling a story is a great way of getting your marketing message across, because people enjoy and remember stories.  For example, a story about how your business got started to fulfill a need, how you learned important lessons, came through in spite of difficulties, or is successfully carrying out a mission is a sticky marketing message.  On the other hand, a business message that boasts of “being the best in the field,” doesn’t stick.

3)     Sticky Slogan- Once you have developed a sticky marketing message break it down into a few enjoyable words- that’s your slogan.

4)     Sticky Business Cards- When I say that your business cards should be sticky, I am not recommending that you pour maple syrup on them.  Most business cards get thrown away when the business card recipient cleans out their pockets at the end of the day.  However, by producing a business card that is too good to throw away you can increase the chance that your marketing efforts will find a home inside of the recipient’s wallet or on their desk.  Also, having a great business card sends the message that you are confident about your business and that instills confidence in others too.

5)     Use Snail Mail- Email marketing is an efficient and simple way to be in touch with an unlimited number of people just by the click of a button.  Today email marketing is all the rage.  On the other hand, recipients of mass emails also realize that there is nothing personal about emailed newsletters.  Although I am highly in favor of using email marketing for most of communications with customers, I think that it pays to add a personal touch with snail mail also.  If you want to really make an impression with a “thank you for your business,” letter or something of the sorts, a snail mail letter will leave a much stronger impression.

Making your small businesses marketing efforts stick will encourage new customers and returning customers.  The advantage of the sticky marketing strategy is that it not only gets your audience’s attention, it also keeps them engaged in the long run.

Susie Brown is a FastUpFront Blog contributor and business consultant. Fastupfront offers business loan alternatives and working capital based on future sales.

Tax time is around the corner and you can hear the collective groan of small business owners, start-ups and established firms who have to sort out their financial records for the previous financial year. It’s a hassle finding out how much they may have to pay the government at the end of the financial year. If you are a new entrepreneur, it is wise to seek the advice of a reputed tax advisor who can help with filing taxes. However, there are a few things that you need to keep in mind in regards to small business taxes that will make the prospect of filing taxes less intimidating.

Small Business Tax Tips for New Entrepreneurs

Here are a few tax tips for the rookie entrepreneurs to stay out of trouble with the Internal Revenue Service.

• Hire experienced and reputed help – If you are a new entrepreneur, it is advisable to get the help of an experienced tax advisor. However, if you feel it is going to add to your business overhead, consider appointing a competent accountant. He can help you with your tax planning strategy after going through your account books, balance sheets and financial projections. A good accountant can help you minimize your tax liability.

• Your account books should be current – Good bookkeeping makes it easier to file your taxes. All your financial data should be current and up-to-date in one place. During the initial stages of your business, it is important to get your book in order. However, if you are not able to do so, then hire an independent contractor as your bookkeeper.

• Do not forget to save all receipts – It is worth mentioning that you can deduct legitimate business expenses from your taxable income. Therefore, it is wise to keep track of anything that you purchase for your business, even if it costs you less than $75. You can either file your receipts or keep a separate logbook that contains all transactions. This will make work easier for your accountant at the time of filing your taxes.

• Ask the freelancers and independent contractors to file Form 1099 – If you have hired freelancers and you pay them more than $600 during the tax year, then the IRS requires you to file Form 1099. Therefore, it is mandatory that you obtain personal information such as current address, social security number and employment identification of your freelancers and contractors. Ask your freelancers to fill out a W-9 if their compensation is less than $600.

• Forward your new address to your former employers – If you have recently left your job to start your venture, remember to give your current address to the HR department. You cannot file your taxes without W-3 forms. Ensure that you get the forms by the end of January before your personal tax returns are due.

• End of the year strategies – If you have some extra cash at the end of the financial year, you could opt to purchase additional supplies which could be used at the beginning of the next year. If you have a cordial relationship with some clients, you could request them to wait till the start of the next year to clear their dues. This will decrease your overall cash flow and convert into lower taxes.

Rookie entrepreneurs should try using online financial tools for bookkeeping and sending invoices. Most of the tools are available at no cost. Keep in mind that your business operations and marketing strategies form the foundation for your business tax strategies.

Flickr image by 401K

Bankruptcy is a curse on your financial report as it can affect your credit score. How long and how much your credit score will be affected will depend on your previous credit history. It also depends on the type of bankruptcy you have filed. For instance, if you file for Chapter 7 bankruptcy, it will be reflected on your FICO credit report for the next 10 years. Whereas, when filing for Chapter 13, it will only affect your credit score for no more than 7 years.

When you file for bankruptcy, your credit score will fall drastically which will then affect you in trying to get approved for a loan. In short, the financial institutions such as banks, lenders and credit card companies, will think twice before they give you credit. However, filing for bankruptcy does not mean it is the end of the world. You can still revive your credit score through systematic financial management.

What Happens to Your Credit Score After Bankruptcy?

• When you file for bankruptcy, your credit score can be reduced as much as 200 points or more. For some time, everything will look bleak, but you will be able to see gradual improvement in your score in the foreseeable future.

• Your credit record is cleared of all your debts and the history of late payments at the time of your bankruptcy discharge. This will help your credit score go up slightly. All the debts that were included in the bankruptcy will note that it was included in the bankruptcy.

• The maximum term for bankruptcy is 10 years. Recovering from bankruptcy is likely to take some time. In the mean time, you should use the opportunity to improve your credit history by clearing any remaining old debts. You should also ensure that you have not incurred any new debts. If you follow an orderly financial plan, your credit score will gradually improve and before you realize it, your bankruptcy will be dropped off the credit report.

How to Increase Your Credit Score After Bankruptcy

• Open a charge account – This account comes with a high rate of interest. However, it will help to boost your credit score. Many retail shops that sell furniture, appliances and other utility items will be more than willing to grant you credit if you have a charge account.

• Apply for a secured credit card account – To acquire a secured MasterCard or Visa card you have to deposit money into the bank account. Choose a company which will convert the account status from secured to unsecured after a certain period of time. If your payments are on time with no lapses, your account can be converted to an unsecured credit card account in less than a year.

• Pay your bills on time or even earlier – Ensure that you pay all your utility bills and the new credit card bills on time. If your car loan or home mortgage were exempted from bankruptcy, see that you pay installments in time to raise your credit score. Careful handling of your finances will make you a potential candidate in the eyes of prospective lenders.

• Put down a significant amount as down payment – When you are making a purchase, put down at least 50% of the item bill in cash as down payment. It will help you clear the remaining amount more quickly and also reduce the amount of interest you have to pay. This act will be reflected in your credit report which will enhance a slight increase in your credit score.

• Monitor your credit report quarterly – You are eligible for a copy of the credit report from the three major credit bureaus annually. Keep a watch on the report to catch any erroneous entry. If you find there are any wrong or negative entries, report it to the credit bureau immediately.

Understand that your credit score is not going to improve overnight. Do not file for bankruptcy to improve your credit score. There are many alternatives to bankruptcy. Consult a reputed credit counselor to help you out.

Flickr image by [F]oxymoron

When you are in charge of a new team, you need to understand that whether they have previous sales experience or not, professional training and careful guidance will be necessary to ensure they flourish in this new sales environment. If you are struggling to come up with a training programme that incorporates everything your new team will need to know in a easily digestible manner, the following tips have been put together to help inspire you.

Introductions

Before leaping into company procedures and etiquette, you should spend time making sure the team are properly introduced to you and other trainers as well as one another and those they will be working with once the training is complete. Playing games to get to know each other can sound a little cheesy, but they do help to relax new starters and promote bonding within the team from day one.

Clear Structure

Breaking the training down into clearly defined stages will greatly aid understanding, so once you have established everything you need to cover, try to group information into specific sections and then order them in terms of what should be discussed first, second and so on. This will form the structure for your training and ensure every new starter is aware of what will be covered and when.

Keep it Short

The best way to ensure the information you are providing is retained by those attending the sessions is to avoid lengthy training sessions. If it is an intensive training course, make sure you are allowing for regular breaks and stopping for other activities rather than just talking to the group for hours on end.

Consider Professional Training Courses

Whilst you will undoubtedly be incredibly knowledgeable about the business you work for and the specific procedures that apply to the sales roles, it can be tricky to pass this information on to others if you do not have training experience. A great way to ensure that new starters are given the very best training is to utilise the services of a sales training team who can work alongside you to create a coaching programme tailored to your business. This will blend you expert knowledge with their understanding of effective training to provide new team members with all the tools required to be successful and confident within their sales role.

If you are in charge of ensuring the best training is provided to a new sales team, be sure to take heed of these top tips in order to boost confidence and enhance understanding from day one.

Sophie currently works in project management but has also worked in a variety of roles including both telesales and customer facing roles, some of which she trained new team members herself. She has written numerous guides on learning in the workplace and firmly believes high quality sales training that offers clear direction within comfortable surroundings is the key to a happy and confident team.

Whether you are buying or selling a small business, you need to know its worth. If you are a small business owner, before trying to sell the business, you need to get it appraised by a good financial team. Similarly, if you are planning to buy an existing small business, you need to get that business appraised as well. Otherwise you would end up paying more than its worth. Determining the value of a small business can be a challenging task, but it is worth the effort. We have put together a few points which will be helpful when you are buying or selling a small business.

• Hire a business attorney – An experienced attorney would be able to appraise the business which you plan to buy or sell. He would know the right questions to ask and formulas to use to arrive at a fair value, which will not hurt both the parties.

• Review the profits of the previous years – Whether you are a seller or buyer, you should review the revenue reports of the business. This is a great way to find out if the business was running on a loss or profit. Hire an experienced accountant to get the job done.

• Check out the average selling price of similar business in your area – You should be aware of the selling price and revenues of similar small businesses. This will help you calculate the profit the business is likely to make.

• Examine the revenue of the business – As a buyer you should analyze the growth of the business carefully before making your decision. If the revue does not show a steady growth to signify a positive standing, then you should think twice before buying the business. Otherwise, if you think you have a strong business strategic plan that will turn things around, go ahead and purchase the business but at a lower price.

• Hire an experienced external appraiser – Whether you are a seller or buyer, it is always better to hire a reputed appraiser. Look for someone who has had experience in your area to give you a valuable opinion of the business and the true value of the business.

Commonly Used Business Valuation Methods

• Asset Valuation- This method is used to calculate the value of all the assets of the business you are planning to buy or sell. Asset valuation is more appropriate for companies with large tangible assets. The value is calculated by calculating the net realizable value of all assets.

• Entry Cost - The value of the business is calculated based on the cost to start a similar business to that being sold. Here you have to include the cost of not only hiring and training, but also the cost of developing a customer base, purchasing assets and developing the products/services.

• Multiple Income – This procedure is followed by those businesses with an established financial history. The price divided by earnings (P/E ratio) represents the value of the business divided by its post tax profits. Since it is not easy to decide what P/E ratio to use, experienced and reputed business advisors usually suggest a valuation of between 5 and 10 times the annual post-tax profit. This method of valuation has many limitations while evaluating a small business.

The other factors that you need to take into consideration while evaluating a business is its intangible assets such as goodwill, brand, reputation, the key employees and the quality client/customer base.

When a business owner decides to sell his business, he is likely to quote a larger figure than the conventional industry price. He puts a charge for his years of hard work and time spent. Therefore, as a buyer you should always consult a reputed accountant or business advisor before buying an existing business.

Flickr image by Diana Parkhouse

“Goodwill is the one and only asset that competition cannot undersell or destroy.” – Marshall Field (American Businessman, 1834- 1906)

The economy is slowly coming out of the slump and every business, irrespective of its size, experienced a downturn. One of the reasons many businesses survived the economic uncertainty is because of their longstanding goodwill. So what is “Goodwill” all about? It is an intangible asset for any business because it exhibits the value of the business and what it stands for; such as good employees, client relationships, brand name and its community work.

Goodwill is for Business what Reputation is for a Person

You can say that goodwill is an emotion that exists within us and when you create an emotional bond with the people, you deal with; you are rewarded with opportunity, business networks, endorsements and trust. Here is a list of points to support the importance of business goodwill.

• Building goodwill with customers. Goodwill is important to increase your customer base but also retain your old clients. This happens through word-of-mouth publicity and recommendations. Many customers return to you if you’ve provided them good customer service and have established a good relationship with them.

• Investors are attracted to businesses that have goodwill. The goodwill of your firm is equivalent to solid cash. It will help you obtain loans from banks with ease knowing that you are a valued customer.

• New avenues open up; opportunities are created through business networks if you have longstanding business goodwill.

• Another advantage of goodwill is that, even if you make a blunder, your customers are willing to forgive you when you apologize. This is because of the trust they have in your business from previous experiences.

• When you want to sell your business at any point in time, your reputation and the goodwill of your business will attract many potential buyers. You will be able to sell your business for a good amount.

How to Build Business Goodwill

Goodwill is something that cannot be bought but has to be earned; there is no way to earn it overnight. It will take considerable time and effort to develop goodwill in for a business. We have listed some factors that aids in developing goodwill in business.

• Maintain the quality of your products or services – Remember that the first impression is the best impression. If your business provides quality products/services right from the beginning, you are taking the steps towards developing goodwill.

• Rapport building and integrity – People will find dealing with your business easier when you take pleasure in servicing them and when you provide business integrity.

• Brand commitment -Your business should be one step ahead of your competitors. A business under the limelight for the right reasons will attract goodwill for itself.

• Service satisfaction – A customer is likely to return to you and also recommend your services/products if he is happy with his experience.

• Community service not only helps in developing business good will but also leads to small business longetivity - As your business grows, you should focus on investing in community goodwill. Some suggestions could be, making a small donation to community functions or by giving a helping hand to those start-ups of a different industry that are struggling. You can also promote amateur artisans and musicians by holding exhibitions or concerts for them. Local residents would be willing to buy tickets that are fairly priced. You should include other small businesses to help with local events.  It will pay-off with long-term sales growth and business referrals.

Goodwill is all about the nature of the business and the integrity and ethics with which you conduct your business. The understanding between your customers and you, your employees and you also contribute to the business goodwill. Consider goodwill as an honor that is impossible to imitate.

Flickr image by jm3