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5 Ways Small Businesses can Grow after Emerging from Disruption

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5 Ways Small Businesses can Grow after Emerging from Disruption

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The pandemic made 2020 a difficult year for many small businesses, as many closed permanently. But other small companies had success despite the surge in outbreaks and are hoping to build on those achievements in 2021.

How can they keep their momentum going, and what can other companies learn from their struggles to navigate the challenges of the new year?

“To stay afloat, owners adjusted on the fly and creatively found ways to change their operations,” says Chris Buitron, CEO and president of Mosquito Authority® (www.mosquito-authority.com). “Those that survived can use innovations they came up with during the pandemic to generate new opportunities and drive revenue.

“But there is a lot of uncertainty still ahead in the business world, and strategy should be a combination of honest reflection and a deep study of where your industry and audience currently are.”

Buitron has these five tips for small businesses to improve or keep their momentum going in 2021:

Fine-tune your messaging. Research shows that effective branding is connected with a company’s authenticity, so it’s important to coordinate messaging across all channels. “Your branding is your promise to customers,” Buitron says, “so you need to make sure all of your messaging is valid, consistent and on point. Every aspect of your branding should align to show iron-clad authenticity.”

Maximize social media marketing through storytelling. Over half of social media users research brands they’re not familiar with, and keeping their attention is the key. Buitron says storytelling about the company on social media channels resonates with customers and can create a connection that leads to customer loyalty. “It connects to authenticity and its importance to customers,” Buitron says. “Use different forms, long and short, of your company’s story – vignettes and quotes in your social media marketing, a complete version on your website. Humanize; let potential customers see the people behind the brand and the people your company has helped.”

Emphasize customer service. Buitron notes that some companies that did well during the pandemic did so because they went the extra mile for customers. “Now take that lesson another step,” Buitron says. “People expect good customer service from a small business, which has more at stake and fewer resources than a large company. Customer service is how you hold onto them. Sometimes the customer service that has the most impact is that which provides an unexpected solution. Train your people to think outside the box and make it goal No. 1 to make customers much happier than they were before presenting you with a problem.”

Focus on building and improving your team. “A successful company is built on the strength of its employees,” Buitron says. “Leaders need to see their people have passion for their jobs, which is essential to success in small business. If you have a great team, it can always be better, and it’s important they know that. This is no time to coast. Talk to your team leaders about gaps and opportunities. Invite discussion that promotes growth.”

Keep adapting. “If companies big and small learned anything during the pandemic, it was about how to adapt,” Buitron says. “That concept doesn’t figure to change. Adaptability means being prepared to pivot whether you see big change coming or not. For example, a major switch to online sales by many companies was the only way they could survive. Then they learned how to offer more online services. Building on those changes, and finding creative ways to adjust to new customer demands, will continue to grow companies.”

“The pandemic made businesses think about their operations in a very in-depth way,” Buitron says. “Going forward, more small-business owners will be better positioned for success – if they really learned from what it took to survive 2020.”

____________________________________________________________________

Chris Buitron is CEO and president of Mosquito Authority® (www.mosquito-authority.com), a nationwide leader in mosquito control with franchises serving communities across the U.S. and Canada. Buitron has an extensive background in franchise industries. He was chief marketing officer for Senior Helpers, vice president of marketing for Direct Energy (home services division), and director of marketing for Sunoco Inc., where he supported the company’s 4,700 franchised and company-owned rental facilities across 23 states (over $15B in annual revenues).

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7 Tips & Ideas to Start a Small Scale Manufacturing Business

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The 21 century makes it possible for everyone to launch his or her own business, as most of us have access to such efficient tools as blogs, social media, etc. At this moment, the COVID-19 pandemic modifies the ways to run any kind of business.

However, it is still possible to start something new, and by following some approaches, you will do it safely, minimizing any risks, and getting the most out of your concepts. We are here to help you find these profitable ways and share some effective tips on starting any business.

Let us begin with the most interesting business ideas that can provide you not only with material well-being, but also bring joy and even unlock your creative potential.

Candle Making

Regardless of common preconceptions, winter is not the only sales season for candles. Today, it has become both an essential attribute for house coziness and an integral part of some practices.

Meditation and yoga are quite widespread activities, and many practitioners cannot imagine the process without a bewitching and relaxing scent filling the space around. But also the daily environment requires to be in line with the mood, whether dreamy and chill or refreshing and productive.

Tip: Imagine your target audience and try to foresee their expectations from your candles: where they could use it, what they want to feel while inhaling the scent, etc. This will help you improve their design and also write more attractive product descriptions.

Candle manufacturing is one of the best choices for your first small scale business because you need only basic tools and materials that do not cost much, and the process itself is easy and fast to master.

Bakery & Confectionery Products

If you enjoy cooking, you have a nice opportunity to transform the hobby into a source of income. No doubt, in this case, you will have a huge customer base. People need some special, unique, and delicious sweets on any occasion in their lives.

It is a space for your creativity, which you can use to create feels-like-home treats, wedding cakes, bread with unusual tastes, cupcakes and cookies, pies, gluten-free bakery, organic, vegan, healthy, or fitness-sweets, and other splendid products.

Tip: With such a wide spectrum of possible niches, it is important to focus on a few main directions and follow them to become a professional there. People tend to trust rather highly specialized producers than “Jacks of all trades”.

Depending on the budget, you can open your small bakery or make everything at home. With social media, it is absolutely possible to create a proper and flourishing business within the four walls.

Jewelry

Jewelry has become an extremely popular choice for starting a small-scale business. But it does not mean you have no chance to enter this market successfully. With a quite complex structure, this branch is still affordable and promising.

Again, you can choose an appropriate niche relying on your budget. If you can find suppliers and can afford precious and semi-precious gems and stones, you can go for fine jewelry. Otherwise, you can still find your place in this business, creating either trendy everyday pieces or unique niche jewelry shifting the emphasis on a design – both options from inexpensive materials.

Tip: Jewelry is all about aesthetics, so make sure you develop an eye-catching design for the brand, a unique voice that could tell the potential customers about your pieces.

Ceramic Ware

Pottery can become not only your business idea but also a great kind of entertainment. It is fun and often unpredictable, and the feeling of soft flowing clay is immensely satisfying. Pottery is one of the oldest trades in human history. Nevertheless, it is still a tool that you can use to embody your creativity and personal uniqueness.

To realize your projects, you need to have a number of materials and equipment, such as pottery wheels and kiln, different clays, sculpting and trimming tools, glazes, etc. Make sure you have enough space to store these things and work with them.

Tip: Take into account that unlike other types of manufacturing, pottery requires a number of special tools and devices. Make sure you plan your budget first and buy quality equipment.

If you do not want to dive into ceramic ware, you can always go for clay sculptures, souvenirs, and other little stuff that people buy for gifts and home decor!

Makeup Products

Cosmetics is a quite saturated market that always welcomes newcomers, though. On a low budget, you will unlikely create exquisite makeup or care products, but you can always turn to traditions and inexpensive natural ingredients.

As always, it is better to choose one niche and then grow to new products, if you want. Hair products, lip balms, scrabs, creams – the world of cosmetics has a wide range of possible ways for growth!

Tip: Whatever niche of cosmetic products you choose, you need to be a guru of the process, as low quality here can possibly lead even to severe health problems.

Shoemaking

Shoemaking can easily become a business that is oriented at global concepts: sustainable development, veganism, minimalism, etc. However, it could also be a design resolution that you can use to express creativity.

Choose your target audience and create footwear for daily needs or for those who love to wear fancy things.

Tip: Prototype development is an essential part of the shoemaking process before the final production. At this stage, you can improve your model and see the mistakes you have made before.

Furniture Manufacturing

If you have an inclination for this trade, you will enjoy launching a furniture business. Here you face the same challenges and essential decisions: target audience, aim, and design.

Regardless of what furniture you want to make and which needs to meet, it is a low-budget decision for a small scale manufacturing business. Not only you can create brand-new pieces, but also offer repair and restoration services.

Tip: Make sure the pictures of your pieces are quality and the descriptions contain all the important information, such as size, materials, care and maintenance, etc.

Final Thoughts

Small scale business offers numerous opportunities for people to help others and to make the world more beautiful and convenient. You have the chance to become a part of this process, and you do not need much to start.

After you launch the business, it is essential to maintain its profitability by promoting your brand. To do so, you can start blogging, submit guest posts on business blogs, and use social media marketing.

Right now, you have everything you need to embody your amazing ideas and make life a better place. So rally your force and turn over a new leaf!

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Nancy P. Howard has been working as a journalist at an online magazine in London for a year. She is also a professional writer in such topics as blogging, IT and marketing.

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8 Common Mistakes Business Sellers Make

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All business owners think about selling their business at one time or another. However, for the ones who decide to go forward and sell, there are certain points that need to be addressed if they want to have a successful transaction and get the most money for their business.

After selling over 800 businesses, I decided to list eight common mistakes owners make when selling their business:

1. Trying to sell it yourself. Business owners usually are not objective about their business. Even if you have the financial skills, you’ll have a tendency to overestimate the value. And you are not expected to have the financial skills to be objective in the valuing of your own business. Instead, you are a successful business owner, which is an art in itself. The selling of a business is the combination of both an art and a science, and it is performed by individuals who do this full-time as their profession. You do what you do best, and let a professional intermediary do what they do best.

There is a reason pro athletes and actors have agents – because they get more money and better terms when they hire someone to negotiate for them. Likewise, you simply won’t get as much value for your business trying to sell it yourself and learn on the job. Attempting to sell your own business will devour your time. You know how to run your business, but this is no time to learn how to be an investment banker or business broker.

2. You are too sensitive about your business. You will take comments made by a buyer personally and perhaps kill the deal. Nobody likes to hear they have an ugly baby, and the same is true when you are selling your business. Any negative comments about your business to you will be taken personally regardless of how hardened you may think you are. The solution is to get an intermediary to soften the blow and translate the buyer’s comments into requests that will not be taken personally.

3. You don’t know how to arrive at fair market value. Owners who are unrealistic about the value of their business are the biggest reason why deals fall through. Get the facts and the reality of what businesses like yours are selling for in the current market, and never believe anything you read in the trade magazines as the gospel regarding valuations.

4. You don’t know how to recognize a qualified buyer. Different businesses require different kinds of buyers, and different buyers will pay different amounts for a business. You need to know which buyers are paying the most in today’s market because buyers change with the market.

5. You probably don’t know where to look for the right buyer. Finding the right buyer for your business who will pay top dollar isn’t as easy as running an ad in a trade magazine or newspaper and seeing who contacts you. As a seller, you want to know who really has the money and whether they are serious. Are they cherry pickers or making low-ball offers? Or do they try to claw back on an offer and use the old bait-and-switch technique? Remember, time is money, and buyers are generally working on your time and your money.

6. You fail to realize that selling a business is a process, not an event. Selling a business involves a structured process that takes time – generally between six to 12 months from conception to closing. It is a very detailed process that not all sellers are up to accomplishing without guidance from a trained professional who has performed this process many times before.

7. You have to assemble the right team to get the job done. Just as in sports, if a seller doesn’t have the right team of players in the game, he will either get defeated or hurt in some way. What is the right team? An attorney who has experience in business transactions and understands the sale of a business to a buyer and not to one’s lifelong golfing buddy. An accountant who understands the tax system and is not afraid to give good tax advice, knowing there is a possibility they will lose your account and is looking out for your best interest. And an experienced intermediary who has working knowledge of your industry.

8. You aren’t committed to selling. Selling a business is a lot of hard work. People don’t realize how much work it is to assemble all of the data that is needed by a buyer to get a business sold. A lot of transactions will fall apart because the seller is either not committed to the process or does not have the mental stamina to continue. The solution is to get help from a seasoned intermediary who will coach from the beginning to the end and help you to reap the rewards for all of your many hard years of work.

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Terry Monroe (www.terrymonroe.com) is founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business with ForbesBooks. Monroe has owned and operated more than 40 different businesses and sold in excess of 800 businesses. As president of ABBA, which he founded in 1999, he serves as an advisor to business buyers and sellers throughout the nation. As an expert source he has been written about and featured in The Wall Street Journal, Entrepreneur magazine, CNN Money, USA Today, CEOWORLD, and Forbes.

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5 Ways to Setup a New Dormant Company in UK

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Setting up a dormant company comes with its perks. However, many entrepreneurs and businesses looking to register one such company in the UK do not know how to get the process started. Indeed, suppose you know how to register a limited liability company in the UK. In that case, it might interest you to know that the process for setting up a dormant company is the same, aside from some slight variations.

Though you can find dormant accounts advisors in the UK, it’s equally helpful to understand minor details such as what makes a company in the UK dormant, the information required, and why you might want to register a dormant company.

So continue reading to learn all these and more.

What is a Dormant Company

The term “dormant company” is used to describe a limited company that has been set up with a Companies House, but due to any reason, it hasn’t begun trading or will never trade. Such companies have no significant transactions on their accounts in their financial year. For Corporation Tax, dormant companies are considered inactive. This is because they don’t partake in any trading activities such as:

-Maintaining a payroll

-Managing investments

-Buying and selling products and services

-Earning income and interest

-Purchasing or renting properties

-Earning dividends

-Paying bank fees and charges

-Paying salaries for high officials like directors

-Paying accountancy fees and formation cost for the company using a business account.

The moment a dormant account performs any of these transactions, it ceases to be dormant. Its dormant trading status will move into the category for ‘active’ for Corporate Tax.

Nevertheless, certain transactions are considered ‘significant accounting transactions’ that a dormant company can perform. These are:

-Payment of subscriber shares (the first company shareholders during incorporation).

-Payment of fees during annual Confirmation Statements to Company House.

-Penalties paid to Companies House for Late filing.

Why Register a Dormant Company

Given all the information available on dormant companies and their requirements, the question might have crossed your mind. Why would anyone have a limited company remain dormant? Though it’s a simple question, the answer isn’t so straightforward because there are several reasons why a company may choose to stay dormant. Some of these reasons include the following:

-Keeping a trademark or brand name protected

-Reserving a corporate name for use later

-For holding intellectual property or assets

-To allow an existing business to restructure

-A temporary step in case of illness or death of a business owner

A dormant company can maintain its status for any duration of time. However, all limited companies incur some expenses for being in the official register, dormant companies included. Also, there are specific obligatory ways of reporting and filing with the Companies House and HMRC.

Now that you know the basic information of a dormant company, here are five steps to set up in the UK.

1.  Information You’ll Need

To register a dormant company, you’ll get all the necessary information starting with a unique name for your company and a registered office address.

Next, the company will require a minimum of one director, and all directors will have to provide personal demographics and other information including name, nationality, and even eye color. Every shareholder will require the following information:

-Name

-Number of shares owned

-Value of each share

Finally, the people in the company with significant control will also provide details including name, nationality, and other details.

Once you have all this information, you’ll perform a company name search before registering your company name, provided it’s not taken. But it doesn’t end there, because you’ll need to follow certain formalities to keep your company dormant.

2.  Don’t Trade

Apart from ensuring that your company’s accounts remain dormant by avoiding any of the transactions earlier mentioned, you also need to check with Companies House to ensure you don’t have any ‘significant transactions’ during the accounting period of your company.

The moment any transaction of accounting significance occurs, you’ll need to record it in the account of your company. And by doing so, your dormant account will be considered trading. Which is something you’ll want to avoid.

3.  Get HMRC Informed

Apart from not trading, you’ll need to inform the HM Revenue and Custom (HMRC) by corresponding with them. In case you are wondering, the HMRC is primarily the UK’s tax payment and customs authority. The aim is to update them on your company’s status, letting them know that your company is a dormant one.

4.  Prepare Your Confirmation Statement

Even though your new registered company is dormant and not actively trading, the authorities in the UK still have specific requirements you’ll need to fulfill. One such requirement is the filing of the annual confirmation statement for your company. But why is this important?

The annual filing of this statement ensures that Companies House is always updated with any changes that occur with your dormant company. And if nothing changes, they’ll also be in the know. You can do this either at the end of each period or as required as changes occur within the company.

5.  Annual Filing For Your Dormant Accounts

Finally, the law also requires you to file the accounts of your dormant company. You have to first do this no more than 21 months after the company registration. After this, you’ll have to file your dormant accounts every year. And that’s all you need to do to set up a dormant company in the UK and keep it dormant.

Conclusion

For those operating a previously active company but currently dormant, it’s necessary to contact the Corporation Tax department, either by email, post, or phone immediately. They’ll send a ‘Notice to deliver a Company Tax Return’ to your registered office address.

Then you’ll have to put together a Company Tax Return and accounts for the HMRC and make Corporation Tax payments for any profits you earned prior to the dormancy of your company. After these, your previously trading company becomes dormant. However, if you’re looking to open a dormant limited company for any reason, the steps outlined above should help you navigate the procedures easily.

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Why A Vaccine For COVID-19 Won’t Restore Small Businesses Overnight

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The vaccine for the COVID-19 virus recently began shipment. The Wall Street Journal states it will take until sometime in March of 2021 to vaccinate the first 100 million individuals with the highest priority of getting the vaccine. That would leave well over  200 million Americans still in need of the vaccine as we head into spring.

The stock market is doing very well as it hovers around 30,000 – an unbelievable achievement never seen before, even though millions of people have lost their jobs and people continue to lose their jobs on a daily basis. The stock market is based on the theory of expectation, and what it is telling us is that with a vaccine, the economy will begin to turn around and will be much better going forward.

But let’s look at this through the eyes of small businesses.

Outside of government, companies with less than $7 million in sales and fewer than 500 employees are widely considered small businesses by the U.S. Small Business Administration. And the expectation for small businesses to return to what we considered normal pre-pandemic is not going to happen anytime soon.

Here’s why. Multiple states have banned indoor dining at what remaining restaurants are still open. As of Dec. 1, nearly 17% of U.S. restaurants were “closed permanently or long-term,” according to a study by the National Restaurant Association. That percentage amounts to over 110,000 service-industry businesses across the country.

The last known numbers reported at the end of September for businesses in total that had closed were approximately 170,000. And since that time, the total has possibly exceeded 200,000. It is hard to determine how many people have been affected. In November 2020, the national unemployment level of the United States stood at about 10.74 million unemployed persons, which equates to a little over 10%. However, this number only tracks the number of people who are unemployed. It doesn’t record the people who are not drawing unemployment benefits and are out of work. So, in reality, the number is larger than the 10.74 million.

With businesses closing and laying people off, no jobs for people to replace what they lost, and no income for the owners of the businesses, vaccine or no vaccine there is not going to be anyone working to turn the economy around. It will take most of 2021 to make the vaccine available to the millions of people who will want it, but many of the unemployed still will have no work to go to after they get the vaccine and the economy continues to sit.

The economists tell us there will be a surge in business once a vaccine has been made available and administered to the public, but the numbers tell us differently. And here is the biggest kicker of all that the economists have not figured into the equation: People’s habits have changed over the past year.

People are not buying as many clothes as they used to because they have nowhere to go. There is little dining, virtually no entertainment, and no gatherings, so there is no need to buy new clothes. Fuel sales are down because people are not commuting to work like they used to. Any business or venue that needs a gathering of people to remain in business is either closed or ignored due to government restrictions.

It is obvious that small businesses are not going to return to pre-pandemic levels with so many businesses closed in such a short time period. We are looking at 2022 at the earliest before the idea of normalcy begins to occur. And when the economy does begin to turn around, some of our favorite businesses we used to visit will be gone. Businesses cannot survive as long as the states keep changing the rules, which creates volatility in the marketplace. Entrepreneurs and investors seek opportunities but shun regulation and volatility, which can disrupt the flow of business. We eventually will see a surge in small businesses opening, but until then small businesses are on a declining slope.

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Terry Monroe (www.terrymonroe.com) is founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business with ForbesBooks. Monroe has owned and operated more than 40 different businesses and sold in excess of 800 businesses. As president of ABBA, which he founded in 1999, he serves as an advisor to business buyers and sellers throughout the nation. As an expert source he has been written about and featured in The Wall Street Journal, Entrepreneur magazine, CNN Money, USA Today, CEOWORLD, and Forbes.

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Small Business Optimism Persists, Despite the Pandemic

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Businesses and consumers alike are finding ways to adapt and stay resilient during these unprecedented times. Though recovery may take time, a new report confirms the strength of entrepreneurialism and grit of small business owners, who remain optimistic that their businesses will overcome any present and future obstacle with the right resources and preparedness.

In the inaugural American Express Entrepreneurial Spirit Trendex, the study, which polled 1,000 small and mid-sized businesses, revealed notable insights about the entrepreneurial spirit in the United States. Even amidst the pandemic, the survey showed 75% of small business owners are optimistic about their business’s recovery and 82% feel that they are better prepared to handle a future crisis.

They continue to believe in their business and pursuing what they love. Of those surveyed, 81% believe the benefits of owning their own business outweigh the challenges, including financial stability, being their own boss, turning their passion project into a business, and flexibility to set their own hours. The study uncovered more insights showing the current mindset of small businesses.

Small Businesses are Actively Seeking Advice

In order to successfully navigate these unprecedented times, business owners are searching for resources that can properly aid them. Businesses are actively seeking virtual business conferences and webinars (47%), virtual networking events (44%), advice and resources about leading through a crisis (44%) and learning ways to de-stress and stay mindful (42%).

Cash Flow is Top of Mind

No surprise during an economic crisis, over 81% of business owners are prioritizing cash flow management and are identifying ways to cut back spending and increase sales, namely by moving services online. The survey found the top activities are:

-Increasing marketing efforts (41%)

-Increasing products/services online (40%)

-Cutting expenses (36%)

-Diversifying revenue streams (35%)

Pivot, then Repeat

It would be difficult to find a small business that didn’t need to adapt its operations in some form due to the pandemic. It was the year of pivots for so many, and the survey finds the trend will continue into next year. According to the data, 76% of business owners have pivoted or are in the process of pivoting their business model to maintain revenue, and among those that already pivoted, 73% expect to pivot again in the next year. Staying nimble to meet the demand of new market needs and demands is crucial to maintaining the health of your business, whether there is a pandemic or not.

This year has undoubtedly taken a toll on so many small businesses, yet the data shows the entrepreneurial spirit remains strong with a drive to push onward, improve, and succeed. The full report from American Express is available here as well as more ways we can support small businesses this holiday season and into next year.

 ________________________________________________________________

Kathryn Petralia is the President and Co-Founder of Kabbage, an American Express Company providing small businesses cash flow solutions.

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7 Proven Tips To Buying a Business Post-Pandemic

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When is the right time to buy a business? It’s an important question many people ask themselves for a variety of reasons, and it becomes even more interesting when they’re considering purchasing a business after the COVID-19 pandemic ends.

That leads to a series of related questions. Such as, what types of businesses and locations will represent the best opportunities post-COVID? Which ones will pose the highest risk? Should potential new owners expect to get a decent deal, or would it be worth putting a bunch of their savings toward?

What kinds of companies have these potential owners been dreaming of during their working days? Shouldn’t it be the kind of business they could enjoy, rather than one that would run them into the ground, perhaps causing regrets and a lot of lost money?

Chances are, a lot of people will be ready to sell after the draining pandemic, and here are some tips to help you decide about buying:

1. Decide how much money you want to make. This should be the first question you should ask yourself because of the amount of money you want to make determines what kind of business you are going to buy.

2. Pursue a business you would enjoy. It is always better to be involved in a business that reflects your interests and brings you enjoyment. Ideally, your vocation will be a vacation. We don’t want to acquire a business that requires us to be behind a desk all day long when our passion is to be outdoors.

3. Make a list of all your talents. From the obvious to the forgotten ones. Don’t leave any of them out. If you are proficient at MS Word, Excel, and other computer programs, write it down. If you know how to play a musical instrument, be sure to include it on your list of talents. Take a complete inventory of things you know how to do, which will be important in your search for the business you are going to acquire.

Once I was coaching an individual who wanted to earn additional income because their job wasn’t producing enough money. After we did an inventory of their talents, we discovered that in their younger years they had managed rental properties for their dad. I suggested they start a real estate management business. They did and eventually owned and managed multiple properties, ultimately netting a six-figure income.

4. Select where you want to work. Do you want to stay in the same area where you are residing now, or are you willing to relocate? If you are not interested in relocating, then there is a possibility your opportunities will be limited, unless you decide to work on a national basis by selling products on the internet.

The famous bank robber Willy Sutton was asked, why did he rob banks? To which he replied, “That is where the money is.” The best place to own a business is where there is growth. Cities, communities, and relationships are all either living or dying because nothing stays the same. Things are either going backward or forwards. Stack the odds in your favor; go where there is growth and give the business an edge.

5. Know who you are as a potential business owner. Are you a self-starter who is disciplined, and once you start a project you finish it? Or do you perform better with a partner? I have worked with many people who, even though they were provided with a step-by-step guide for what to do, were not able to implement and complete the program themselves. But if they partnered with another individual, they completed the job. When buying an operating business, you will get not only the playbook of how things are done but employees who know the business and a business that is producing a cash flow from the day you take over.

6. Know your comfort level – out front or behind the scenes? Do you like working with the general public and servicing the general public, or are you more comfortable behind the scenes helping people via emails or telephone? If you are an introvert who feels uncomfortable talking to people in person on a daily basis, then you should not own a retail or service business that requires a lot of personal interaction. I have seen people who enjoyed being a customer in a retail business, then purchased a retail business, only to discover they didn’t like the hours involved, working with individual shoppers, or the back-office duties. They ultimately sold the business at a loss.

7. Don’t get hung up on how and where you will get the money to get started. Once you have determined how much money you want to make, what you enjoy doing, what your talents are, and where you want to live, finding the right business gets a lot easier. Now you have the checklist of wants and needs, and all you need to do is to search out businesses that are for sale.www.bizbuysell.com,www.businessesforsale.com

I have bought businesses with no money down and have started businesses with no money down. Sometimes you may have to borrow money from credit cards or bring a partner on board to provide the money while you provide the work. This is called “bootstrapping” and it is how many people get started.

Or you may want to use what we call “Love Money,” which is from family and friends. Money is not as hard to get as people think, because if the opportunity is good enough you will find the money. Money is attracted to opportunity. Especially after a pandemic. Many owners are tired of operating their businesses and are more receptive to selling out now than before. And as the saying goes, “Luck is when preparedness meets opportunity. And opportunity is always there.”

___________________________________________________________

Terry Monroe (www.terrymonroe.com), is founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business with ForbesBooks. Monroe has owned and operated more than 40 different businesses and sold in excess of 800 businesses. As president of ABBA, which he founded in 1999, he serves as an advisor to business buyers and sellers throughout the nation. As an expert source he has been written about and featured in The Wall Street Journal, Entrepreneur magazine, CNN Money, USA Today, CEOWORLD, and Forbes.

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Myths to Avoid While Creating Startup Businesses in 2021

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There are certain common-lingering myths about startups that might discourage you from starting your own business. Many of these myths are related to the challenges, notions, and facts involved in establishing or running a startup. Owing to these myths, brooding businessman hesitate in giving their thoughts and ideas a physical form. However, all these myths are not true.

Let’s take a look at some of the most common myths about startups that you should avoid in 2021 for entrepreneurs.

Myth 1: Businessman takes a lot of risks

Fact: Businessman takes risks. But that doesn’t mean that they take lots of risks or put themselves in high-risk circumstances all the time. They know how to take calculated risks. If you are not willing to take some risks, you will not get higher returns. Business tycoons might have some good or back luck over time, but they can’t rely on luck to run their business. You might have to take a risk that will not pay off, but do not worry about that. The key to persevering through mistakes is restricting your initial risk.

Myth 2: Entrepreneurs needs a lot of money before starting their business

Fact: According to several studies, investors and venture capital fund only one percent of all the startups. Yes, indeed you cannot start a business without any money, but getting venture capital is not the only solution. Some of the new or small business ideas in India involve applying for a personal loan, business loan, and asking family/friends who are willing to contribute money to their business. You can also opt for bootstrapping strategies which allow in maintaining full control of the startup strategies, avoids time delays, and energy spent in attracting investors as well as retaining maximum equity.

Myth 3: Startups cannot compete against big companies

Fact: Be aware that in the era of startups, actions speak louder than fancy ad campaigns. Your small or new business ideas involve understanding the requirements and niche of your firm. As a startup company, you will not experience the bureaucratic drama that is involved in big companies. This enhances your business agility and you can experiment with the personality of your brand. The two ways with which you can market your company are- establishing your startup for those individuals that fall under the required niche and building long-term relationships with your customers by creating brand awareness. You just need to be more quick and efficient to leave your competitors behind.

Myth 4: You need to be formally trained and educated to start a business

Fact: You don’t need to pursue a business or entrepreneurship course in order to set up a successful startup company. Businesspersons do not need a degree to fulfill their dreams of starting a business. According to a business survey report, many entrepreneurs do not have a college degree. This doesn’t mean that you should not study or go to college. It only proves that one does not need higher education to begin their startup company.

Myth 5: You require a detailed business plan for your startup company

Many entrepreneurs intend to create a perfect business plan. But nowadays markets are changing so rapidly that you don’t know how customers will react to your product or service. There are new technological advancements that might emerge which can significantly alter the business environment. Launch your product, obtain feedback, and move forward to continue your product and business plan.

Myth 6: Startups are only motivated by money

Generating profits is not the only aim for startup companies. Accomplishing a dream is one of the chief motivations of startup companies. Financial stability is their next aim. Financial stability does not mean you have to be wealthy. It means that you can meet your requirements. Leaving a legacy for one’s family and future generations is another motivational factor. Lack of motivation in their current workplace can also inspire people to leave and begin their startup business. Thus, money is not the only motivational factor.

Tips for the new entrepreneurs before starting a new business

-An entrepreneur should have a clear vision. He should be able to create the vision he desires to do in his business.

-Before starting any business, an entrepreneur should prepare a solid business plan, i.e. marketing strategies, microfinance for business, etc.

-An entrepreneur must be physically and mentally prepared for any predicament and should be able to handle it gracefully.

-The entrepreneur should hire people who fit in their culture and share their values.

-An entrepreneur should not stop learning. They can take a look at free or low-cost e-learning resources that are offered by the Hubspot Academy, Udemy, and other such online platforms.

Conclusion

Before starting your startup company, it is essential to understand the difference between startup myths and startup reality. Follow the new business ideas stated above and create a successful business.

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Why Buying a Small Business Now is a Bad Idea

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Normally, I am a proponent of buying small businesses.

The data shows they make the world go round. The U.S. Small Business Administration Office of Advocacy, which defines a small business as a firm with fewer than 500 employees, states there are over 30 million such enterprises in the U.S.

But a convergence of factors has made the economic environment less favorable to small businesses, and I would hold off on buying one at the present time. Here are a few reasons why:

Volatility. Change is everywhere. Along with the disruption caused by the COVID-19 pandemic, a change in the nation’s political leadership means there could be more regulation. The possibility of more business interruption exists. Unless you own a strong, established business in an area that has survived the first shutdown and your business is considered somewhat essential, the volatility of operating a company with an interruption in cash flow means the business may not make it.

Continuing supply-chain issues. This remains an issue nine months into the pandemic. Shelves in stores are still not fully stocked. Furniture stores and other types of businesses are waiting months to get the necessary components to build inventory. Supply-chain disruptions can affect small businesses in numerous ways: reduce revenue, cause issues with production, and inflate costs.

Changing buying habits. Some buying habits have been permanently altered, and a vaccine for COVID-19 won’t substantially change those habits. There will be more online shopping and more “contactless” shopping. Anything that involves interacting with people will be affected, especially retail.

Changing business strategies. Buying a business is about buying a cash-flow stream, but what businesses are going to be around in the next five years? Disruption in how a business operates can change its core strategy and render the business no longer viable. Think of Blockbuster Video and Netflix, or your local enclosed mall shops and no-contact shopping with Amazon.

Tightening loans. Money is probably never going to get much cheaper to borrow than what it is now, but lenders are more cautious, too. It may be easier to get a home loan for your personal residence, but getting a commercial loan to buy a business is a different ballgame, and lenders are concerned about the unknown in small businesses going forward.

The solution is to slow down and really do your homework. Research and study the marketplace. What kinds of businesses have not been affected dramatically by the pandemic? Which ones won’t have additional regulation imposed on them in the future?

There are lots of businesses to choose from, but be selective. If you find a business that meets your criteria with good cash flow and a promising future, there is a good chance you may get a discount due to the unknowns of regulation and another pandemic. Not all business owners have the luxury of taking their time to sell; some have an urgency to sell. So in that scenario, there is a good chance you could leverage the reasons I mentioned to not buy a small business. Those same reasons could get you a discount on the purchase of the business.

Timing is everything in life, and with proper due diligence and good timing, you may get yourself a good business at a good price.

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Terry Monroe (www.terrymonroe.com), is founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business with ForbesBooks.  Monroe has been in the business of establishing, operating, and selling businesses for more than 35 years. As president of ABBA, which he founded in 1999, he serves as an advisor to business buyers and sellers throughout the nation. As an expert source he has been written about and featured in The Wall Street Journal, Entrepreneur magazine, CNN Money, USA Today, CEOWORLD, and Forbes.

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10 Success Tips for Young and Aspiring Entrepreneurs

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In the digital age, entrepreneurship is more accessible than ever. That doesn’t mean it’s a cakewalk, though. Here are 10 tips for success.

In the digital age, becoming a successful entrepreneur is more accessible than ever before. Anyone with a few bucks and an internet connection can become an Internet mogul if they play their cards right and have the patience and savvy to work the system. Our founder, Eric Porat, took a website from scratch to 70,000 visitors per month in three years and has since sold dozens of websites for over half a million dollars.

That doesn’t mean it’s easy. In fact, it’s far from it. So here are 10 tips for success to get you started.

1. Plan, plan, plan… and plan some more.

There is no substitute for a solid business plan. If you think you’ve planned your business and market strategy out enough, you’re probably wrong. Analysis of your target demographic and competitors is especially important. Also, prepare yourself for any eventuality. Analyze any possible thing that can go wrong with your game plan, and then prepare an apt response. That way, when anything does happen, you’re ready. Keep track of your skills and weaknesses, what you offer, how said product or service is unique, and how you plan on growing your offering once you’ve entered the market.

2. Find a Mentor

Look, you don’t have to have an Obi-Wan or a Gandalf, but going at the entrepreneurial game alone is a Deathwish. Whether it’s a community of like-minded investors and entrepreneurs or a close friend or business associate who is more experienced in the market, having someone to learn from and bounce ideas off of is paramount to success. Learn from their mistakes and successes, so you can minimize the former and maximize the latter in your own endeavors.

That said, always trust your gut. If you’re following a shadow for your entire career, you’re never going to really break out and make it big.

3. Keep Your Marketing Tight

By that, we mean a tight budget. Marketing your business is extremely important, but it shouldn’t cost an arm and a leg. Remember, social media is your friend. Creating your business page on Facebook and founding social accounts on Twitter and Instagram for your business is free, and will also help your SEO. Submitting your website URL to search engines like Google and Bing is another free way to boost your visibility.

We don’t mean you need to be a stinge, but good marketing should work smarter, not harder. Hit the right demographic (there we go with the planning again) and you won’t have to invest in complex or costly paid media campaigns. Strong, targeted email and social media campaigns are much cheaper and more effective.

4. Build a Strong Team

Don’t get the wrong idea, we don’t mean hiring a bunch of overpaid “experts.” Just surround yourself with people who share your vision, folks who you vibe with. Everyone knows that starting a business with your friends typically goes wrong, but you do want to have stuff in common with the folks you work with, at least from an outlook perspective. Also, be open to new opinions and suggestions. You don’t want a bunch of mindless drones, you want a team of individual, critical thinkers.

5. Be Ready for Financial Challenges

Almost every startup hits the ground because of one factor: COST. Duh. Running a business is expensive. So be ready to operate on the cheap, and be ready for every eventuality. Deal with cash flow hits by saving a month’s worth of expenses ahead of time, or by getting creative with how you lower your overheads. As part of your business plan, be sure to give yourself an adequate runway for success. Things like SEO take time. You can’t expect to be turning a profit with an online business three months out, at least not if you’re starting a site from scratch. If you don’t have the cash to survive, there’s no point starting out. And at all costs, avoid DEBT.

6. Take Care of Yourself

Entrepreneurship is a lifestyle, but don’t work yourself senseless. When you’re running your own business, it’s really easy to forget to clock out. The days of 9-5 are long gone for you (if you’re successful), but remember to separate work and play. Don’t let your business take over your life. You may have to put in extra hours in the beginning to get your endeavor off the ground, but in the long run, be sure to watch your time management so you can have time to keep LIVING.

7. Read Case Studies

As an entrepreneur, you’ll be focusing on your business 24/7. So, when you get home and have some leisure time, you might be tempted to play video games, read fiction, or watch TV to relax. Read case studies instead. Read biographies of successful entrepreneurs. Just do as much reading as you can about those who came before you, what they did right, and what they did wrong. It’ll pay off in the end, trust us.

8. Take Risks

Humans are generally risk-averse, but part of being an entrepreneur is being willing to take risks (and knowing which risks are viable and which aren’t). Learn which risks will benefit your business and which won’t, and learn to go for it. Entrepreneurial endeavors aren’t like calculus equations. There is no guaranteed right answer. Sometimes you have to analyze the market and take a leap of faith. Everyone, and we mean EVERYONE, who has ever achieved real success has taken a risk.

9. NETWORK

There is no such thing as too much networking. Never stop networking, even during your free time. Don’t be one of those irritating people who never stops talking about their business, of course, but make connections at all times. You never know where your next lead will come from. You might find a new connection while grabbing a beer at your local bar, on a flight to visit your folks for Thanksgiving, or on a street corner. You might meet your next business partner in an elevator or a laundromat.

This doesn’t mean being annoying and constantly pitching your ideas to everyone. Just be human. Be organic. Connect, relate, talk with, and get to know people.

10. Never Stop Learning

This is critical to success. The market is constantly changing. You should be, too. Starting your own business is a constant process of growth and learning. Teach yourself new skills, from SEO to writing to design to management and presentation. The more you know, the less you’ll have to pay others to do stuff for you, and the more you can understand the inner workings of the market. If you want to get into the entrepreneurial game, you need to be ready to go 110%, and that means signing up for a never-ending learning process.

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Eric Porat is a successful online entrepreneur, investor, and digital marketer with over 15 years of experience in buying and selling websites.