Operate Your Small Business for Maximum Efficiency

Nowadays, I think of my business as a high performance automobile engine, which must be finely turned and calibrated to run at its optimum speed and maximum efficiency. I can tell you from experience that in order to operate a small business at maximum efficiency and profitability, it takes:

1. Personal and financial discipline.

2. Organizational skills.

3. Management know-how.

4. Meticulous planning and attention to detail.

5. Prioritization of tasks according to their profit potential.

6. Maximum use of available technology.

7. Accurate record keeping.

8. Maximum use of all the tax benefits that are available to small business owners.

It Takes Discipline to Operate a Business at Maximum Efficiency and Profitability

It takes a combination of personal and financial discipline to operate a small business at maximum efficiency and profitability. First, you need to have the initiative and self-discipline that’s required to be successfully self-employed. You must work smart, so you don’t waste your valuable time doing grunt-type tasks that can be hired out. In other words, don’t spend your time cleaning up trash around your office when you should be out searching for customers. Second, you need to possess the financial discipline that’s necessary to operate your small business at maximum profitability. The only way that you’re ever going to be able to keep your spending under control is by:

1. Adopting a bottom-line mentality that’s totally focused on maximizing the profitability of your business.

2. Operating your business on a bare-bones budget by buying all equipment, supplies, and services at the lowest available prices in your area.

3. Keeping close track of operating expenses by carefully reviewing all invoices for errors, overcharges, and bogus charges.

Prioritize Tasks according to Their Profit Potential

The number one question that you must continually ask yourself when you’re working in your small business is: Is what I am doing right this minute the most profitable use of my time? A lot of people fail as small business owners simply because they’re never able to prioritize tasks according to their profit potential. They end up never making a profit because they couldn’t distinguish between what’s important and what’s trivial. As a general rule of thumb, I consider any business function that doesn’t contribute directly to my bottom line to be low priority and best left for after business hours. In other words, if the task at hand isn’t part of the process of completing a real estate transaction that will eventually end with me going to the bank; I put it off until later in the day.

Avoid Reinventing the Wheel Every Time You Need to Complete a routine Task

Whatever you do, don’t fall into the trap of reinventing the wheel every time you need to complete a routine task. The term, reinventing the wheel, refers to re-creating something from scratch. An example of reinventing the wheel would be retyping standard documents, such as purchase agreements, over and over again, instead of storing them in a Microsoft Word document file where they can be printed out as needed. The point here is to work smart by making your operating as streamlined as humanly possible.

Operate Your Small Business on a Bare-Bones Budget

One surefire way to fail as a small business owner is to run your operation in a slipshod manner with no financial controls in place to keep your operating costs from going through the roof.

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The Number One Secret To Building Your Online Business

How a start-up company survived the dotcom crash to become an $81 billion behemoth

In the mid 90’s at start of the Internet boom, a young man and his wife quit their prestigious Wall Street job to start an internet based mail order business. The young man felt the internet would be a more efficient platform for doing business and he could offer his customers more products without the limitations of inventory, the traditional brick and mortar business faced.

This type of business model was a pioneer one. However, after careful consideration, the founders modelled the systems of the traditional book publishers and located their company close to where they could hire talented software programmers to build the systems that will make the business succeed. They also recruited beta testers to use the system. This start-up company ran out of money quickly and had to raise money from family, investors and Wall Street.

The story of Jeff Bezos and the founding of Amazon.com is part of the defining history of the internet and business. Amazon.com is now the world’s largest online retailer and as at the end of 2010 had sales revenue of over $10 billion dollars and market capitalization of $81 billion.

The start up phase of Amazon.com was not always smooth sailing. In fact, Amazon.com would have become history during the dotcom crash in the stock market if not because they had this key element in their business.

In her book, Jeff Bezos: The Founder of Amazon.com (Rosen Publishing 2007), Ann Byers tells of the initial struggles of the start-up company. Amazon did not make profits in the first 2 years of its operation. Bezos spent all his personal saving, his parent’s saving and over $1 million of investors money. In addition Amazon.com lost $9 million. However Bezos was able to keep the company going and tap more money from Wall Street for several reasons:

It generated traffic. The daily website traffic was over eighty thousand people
Rising sales: In the first 3 months of 1997 Amazon had sales of $16 million, more than half for all twelve months of the year before
A growing customer list. Amazon had 340,000 customers on its database
Brand recognition: The name Amazon became a recognized brand in over one hundred countries

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How Can An Heir Borrow Against Inheritance?

A promissory note generally secures this money, even when its terms are not strictly enforced by some parents. If the promissory note is left unpaid until the death of the parents, the estate will count it as its asset that must be paid for. Interest will be imputed by the tax authority, if it is a larger amount of money. The loan will become a taxable income of the child, if the loan is forgiven by the parents.

Loan documents and estate documents control

These issues are generally controlled by the parents during his or her lifetime. You must write the loans on paper along with the repayment schedule. Extensive outlines of the remedies make up most of the loan and available on the open market that is reserved by the creditor. These are not so important, if the parents do not want to exercise these remedies in the document. The parents can then write the ways of treating these loans as per their will.

There are also many situations where it is common for a parent to find his or her child and to document the loaned amount and paid back off. In this circumstance, the money which is not paid off acts as a gift, as there are no such rights.

Cancellation of Gift or Debt

Loans can be forgiven by the parent. In this case, cancellation of debt becomes taxable income. If the parent documents or probates the estate, such as, the returning of inheritance tax or state estate, this information can be cross checked by the tax authorities with the tax return of debtor’s child. The balance of the loan is also forgiven by the parent in some cases at the time of his or her death. Loan below $a certain limit is counted as a gift.

Offset

It can also be decided by the parent not to repay the full loan. Parents can also offset the unpaid amount against the money received by the child. This helps the parent to share the money between the heirs equally.

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Your Real Path To An Easy Home Based Business

Why Some People Make The Easy Home Based Business Claim

First of all, you need to understand the difference between an easy home based business and people who make it appear to be easy. Recalling a particular event I attended, I listened as a team member boldly announced “this is the easiest thing I have ever done in my life.” While she found the process easy to implement and make money with, it can send the wrong message to people. It can force people to setting unrealistic expectations concerning their personal results, since everybody brings various skills and personalities to the table. Background, previous experience, and established skills are all part of the reason that some people are being honest about working with an easy home based business. In her case, it was easy because she already developed business skills, people skills, and already carried a certain level of influence with people. Not everybody starts a business in the same way, with the same skills.
Guidelines For Your Easy Home Based Business Journey

1. Begin with proper expectations. When a result doesn’t match the expectation it is easy to get frustrated and give up. If you have never run a business before, never been self employed before or never worked from home before, it wouldn’t be realistic to assume the same easy home based business claim that others might. Most likely it will take time for you to develop the necessary skills and self discipline required to build a serious business. Overnight success is an anomaly in the home business arena. When you hear the stories about people who attain quick success, you are not hearing the whole story. For most of those people, that success was the result of failing forward, meaning they probably made several attempts before they found a niche where they could use the skills they learned. Expectations are a double edge sword, because you need to have positive expecations for results while expecting that challenges are a part of the process.

2. Commit yourself completely. Building a flourishing home business takes time and patience. If you are not naturally a patient person, you need to learn it quickly. Commitment means seeing your goals through completion. This will require that you learn new skills and become devoted to mastering those skills. Making a commitment also means that you will discipline yourself to investing a specific amount of time to your business each day or week. An easy home based business is not found, it is created by your commitment to follow through.

3. Make appropriate sacrifices. Learn to view everything as short term sacrifices for the long term gain. If you genuinely want to grow to be a professional you will have to give up to go up. This means saying good bye to certain habits or luxuries like watching TV, evening outings with friends, or relaxing after a day at work. You have a new business now, and much like a new baby, it requires your time and attention in order to flourish. In the beginning you have to expect that your life will get out of balance, where working becomes a bigger priority. Eventually when you build it right, you can say good bye to your day job and resume rewarding yourself with some fun!

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Video Creates a Strong Brand

Video involves an entire strategy. If you do it, it has to be done well. In social media a brand has to play to their strengths. If you post things, it has to look good, it has to resonate with your audience. One of the most important items that the Obama campaign did was to have a video from a man who explained why the candidacy was so important to him. He said that before Barack ran, he could not honestly tell his daughter that she could be anything that she wanted to be. With Barack’s candidacy now he could say something like that.

A Page is created to create brand with your customers. The best way to create brand is have friends recommend the brand to other friends. One of the strongest means of recommendation is through a video. The video has to have high quality and done well to have the impact that a marketer wants in creating brand awareness. A marketer has to make a decision in their video strategy. Does the marketer make the video, or does the individual customer or supporter. Friends like to receive things from their friends, but if the video is poor, this is not good for the brand’s reputation. Personalized video were an important part of the Ford Fiesta Campaign, and the Obama campaign. Rihanna does both. On her page, she has videos from her concerts taken by individual fans that are not high quality. In social media branding, a marketer wants the customer to take possession of the brand. This creates brand. On the other hand, you want your page to have a high quality to it. Rihanna has other video that is professionally done to offset the poor videos.

The beauty of online video is that it is an important tool in creating a modern brand and yet it is simple, nowadays, to create a high quality video. As author Susan Guelius tells us, the process of creating videos for the social platforms has become less overwhelming thanks to technological advancements.