Orbit Business Loans | Small Business Blog » Small Business

Turning Around a Failing Small Business

Richard B. — Wed, 12 Jan 2011 23:36:33 +0000

If you are a small business owner facing a declining business, there are many ways to turn it around and change the circumstances so they are in favor of your business. The book “Corporate Recovery: Managing Companies in Distress”, but authors Slatter & Lovett, gives valuable advice on turning companies around. Some of the steps they recommend for your small business are as follows:

1. Get control of cash flow and short term financing with a plan for Crisis Stabilization. Understand all of the resources you have at hand, including your small business loan and funding resources.

2. Perform a thorough assessment and make sure your leadership team is the one that is going to get the job done for your small business.

3. Keep the lines of communication open with stakeholders, and make sure you have their support.

4. Focus existing resources – be willing to sell peripheral assets to generate cash.

5. Make any structural changes needed, including laying off unneeded employees.

6. Understand the reasons your small business got into trouble in the first place, and focus on changing those processes. Figure out how to be efficient and lean.

7. Restructure the business financially, if needed. Only make commitments that you can meet. Raise working capital, or find other sources of funding.

Cash management is also critical to turning around a failing business. Don’t spend cash unless it leads to generating revenue directly. Prioritize payments. Develop plans so that suppliers who aren’t getting paid understand when they will receive payment. Communicate constantly with your creditors. Implement a cash-only basis with your customers. Provide status and updates for everyone involved in your business process.

The stress on communication is critical; creditors know that if your small business ends up in bankruptcy, they will likely receive very little return on their invoice, so many will be willing to work with you AS LONG AS you keep the lines of communication open.

Share This:

How to Recession-Proof Your Business

Richard B. — Mon, 18 Oct 2010 16:21:38 +0000

It is frightening to run a business during tough economical times. But there are ways to recession-proof your business no matter the size of your company. You could be a business with 3 employees or a large corporation with 1,000 employees. The tactics are the same. Here are some tips to ensure your business reaches the next level.

Continue Marketing Efforts

It does not matter if your business is slow; you need to continue with marketing efforts. Increase the marketing and advertising strategies if possible. Put more money into these departments, otherwise, your business could collapse. There are many examples of this in big industry. For instance, Jell-O, Doritos and Crisco cut advertising budgets significantly. The results, the sales dropped from 24-64%. Ouch! This could ruin a small business instantly. Alternatively, Jiff peanut butter increased their marketing and advertising budgets and the sales increased by 57%. Lesson learned is to avoid putting a halt on marketing and advertising techniques. You need to keep the business name, products and services in the public realm. If you do not, the results could be devastating.

Utilize Technology

There is more out there than just Facebook to achieve additional customers and maintain loyal ones. Be sure you are on top of the different online programs that create a big impact on business. Two of the top ones right now are Four Square and Yelp! Take advantage of the internet and social media networks available to you and your customers. It will help increase business without breaking your budget.

If your business is struggling with financial means, talk to an unsecured business loan or a small business loan expert today.

Share This:

The Secret to Small Business Success

Richard B. — Fri, 30 Jul 2010 18:49:38 +0000

Starting a small business is easy, but transforming it into a success is difficult. Only half of all businesses make it within the first five years. It is tough. So here I have devised the top ? tips regarding how to make sure your business flourishes.

Decide on Legal Configuration

Be knowledgeable regarding what type of business is suitable for your company and which one benefits you the most tax wise. For there are different tax breaks when it comes to Limited Liability Companies (LLC) as compared to a sole proprietorship. There are also legal specifications when it comes to trading stocks, personal liability protection, and protecting your personal assets from being put at-risk. Furthermore, find out what state fees are involved in practicing your business. If you learn about these factors from the beginning of your business, you will avoid trouble later on ensuring lasting power in your industry.

Investigate Locations

Find out what is required to run your type of business in the location chosen. Are there city permits needed? Are the customers near your location? Do zoning laws come into play? Think about these aspects prior to opening up business doors.

Prepare Financing

When running a business the unexpected occurs. You need to financially prepare for these “uh-oh” moments. What if a necessary piece of equipment breaks down and you need to buy one immediately to continue business? Or what if your normal vendor runs out of product, and you have to switch gears paying more to buy from someone new? You need to be ready to financially handle these situations. Keep money stored and available for when emergency happens. You do not want to be caught into a bind.

These three tips will keep you around a longtime. To find out more about how to fund your business, talk to a small business loan or a merchant cash advance expert today.

Share This:

How to Run a Small Business Smoothly

Richard B. — Wed, 28 Jul 2010 17:37:03 +0000

With so many people expected to work longer hours and complete more work for less, it is no wonder small businesses have been popping up on the radar more often than in the past. It is a direct result of the recession. It has forced people to find alternative means to earning money outside of the traditional role of working for someone else. But what is the key to running a successful business? I found some common answers to this question regardless of industry. And here is a basic overview of my discoveries.

Learn How to Delegate

You cannot do it all on your own. It is impossible. So you have to let go of that control and delegate tasks to your employees. It sounds simple, but some business owners find this difficult to grasp. For it is their company. Therefore, if a mistake happens it is their name, reputation, and profits on the line. However, you hired your employees for a reason. They have the skills to execute tasks as you would like. Thus, do not be afraid to pass along responsibility to them. They will make you proud.

Narrow Business Focus

When businesses start offering too many different tasks, then the quality of service seems to drop. Try to remain focused on what you offer. Concentrate on one or a few things that your company does very well, and market those services first. There is always time to expand later on.

Running a business is not easy, but it is possible to attain outstanding results. Just keep these two tips in mind. Find out what else has worked for other business owners in your industry. And if funding gets tight, be sure to talk to a small business loan expert to cover operating costs keeping the working capital moving.

Share This:

Why a Small Business Wins Over the Big Dogs

Richard B. — Fri, 14 May 2010 17:20:13 +0000

It is tough to go head-to-head with large business firms when you are running a small, boutique style business. The big companies have a name attached to their service. However, the name does not always cut it. Big companies have no personal attention. There are long turn-around times for orders, products and/or services. It is not suitable to people who demand interest.

On the other hand, a boutique business is able to provide personal attention and customer service unmatched by others. A person is available to speak with you not an answering service located across the ocean far away from the business headquarters. These are only a few reasons why a small business is able to thrive and surpass big box companies. Here is a breakdown of additional reasons why running a small business has advantages over the competition.

Small businesses normally house the owner, employees, staff, and everyone under one roof. Therefore, if a client phones, the client is able to speak with an employee right away. A customer is not forced to wait for a phone call back. You are not stuck waiting for a reply for days. With a small business, you are able to receive replies, responses, and action taken immediately. You are considered always a priority, whereas with big companies, this type of attention is lost in the big business dynamic. It does not click with the make-up of a big business. As a result, small businesses have an advantage over the large corporations.

For instance, let us use the example of a clothing boutique. If you walk into a large department store, there are tons of people, lots of merchandise, difficult to receive personal attention, hard to find products quickly and it contains a jumbled mess of issues. Alternatively, if you walk into clothing boutique owned by a local, it is normally much smaller. It has the same fabulous brands but with an easier means to find the products. The service is generally very hands-on. Your questions answered without waiting. It is an overall better fulfilling customer experience.

If you run a small business and need additional funding, then talk to a boutique style owned lender today. Find out what unsecured business loan or business cash advance would be most suited to meet your financial needs.

Share This:

3 Common Traits of an Effective Manager

Richard B. — Fri, 07 May 2010 11:52:59 +0000

To run a small business successfully, you need a good business manager to run the place. This person needs to have an understanding of your field, experience in the industry and universal characteristics of an effective manager. Here are some attributes to zero-in on when conducting a manager search. It will help you find the right candidate.

Strategize and Assign

A good manager needs to know how to effectively map out a situation and delegate accordingly. Find someone who understands how to divide and conquer. In addition, be certain the candidate comprehends the necessity of handing out deadlines dispersed along with responsibilities ensuring everything is completed on time. These steps together allow you to profit more and watch the cash flow better. If these were missing then you would be losing money not earning it.

Listen and Reply

Another trait a successful manager should exhibit is the ability to listen compassionately first, then provide constructive criticism. He/she cannot be lacking these two qualities for it does not formulate into a positive leader. The person who is right for a manager position is someone who is able to remain quiet while employees confide in him/her. Once the employees are done expressing concerns, the manager needs to provide a solution to the situation and reveal compassion to the issue. It is a balancing act to be able to provide both, but it is tough to teach someone. Therefore, you should find someone who already has this within him/her.

If you still find yourself financially struggling with your business even after hiring a new manager, then talk to a professional about a business cash advance today.

Share This:

How to Manage Your Cash Flow

Richard B. — Wed, 05 May 2010 17:33:03 +0000

One of the most important aspects of running a small business is keeping an eye on your cash flow. You cannot operate a business without being able to handle, manage, and keep track of the incoming and departing finances. Here are some easy rules to follow making sure you know where you stand with your business expenses.

Provide Hassle-Free Payment Options

To keep your businesses operating smoothly offer your customers easy solutions regarding how to pay. For instance, offer payments via phone and online. This way if a customer is unable to enter your offices there is still flexibility in means to pay. It encourages clients to pay on-time and continue doing so. As a result, your cash flow does not reach a stopping point. There is no hassle involved. No excuses claiming the check is in the mail. By keeping it simple, clients pay ensuring your cash flow does not end.

Run Credit Checks

Do you allow clients to have business accounts and pay after a certain amount or date? If so, you need to rethink your strategy. For what happens if the client never pays and you are the one stuck with a debt or overdue balance for services rendered but payment never received? Prevent this from occurring by conducting credit checks. It is a way to protect your small business and be certain you end up with more money going out than coming in.

Conduct check points with your cash flow through the entire process. Be certain the links directly connected to your cash flow are working properly as the above suggests. If you still need additional funding talk to an unsecured business loan professional today.

Share This:

How to Communicate Effectively with Difficult Clients

Richard B. — Fri, 30 Apr 2010 17:39:52 +0000

No matter what type of small business you run, eventually, you will encounter a client that is complicated to communicate with. Perhaps he/she is upset over a service, product, and/or has a complaint. Alternatively, what if you have successfully completed the service and the client is upset over the terms of the contract. This is not easy to manage. In this scenario, you have fulfilled your promise, and the client still wants to complain. It is tough. For you do not want to handle the situation in a negative manner. If you do, the exchange could be posted on a social marketing site ruining your reputation. Here are a few tips to help you efficiently communicate with unhappy customers.

Listen to the Client

Allow the client to express how the person feels. It does not matter if the person rants on for five or twenty minutes. Just let the person talk. It does not matter if the client is actually correct in what is being said. The idea here is permit the person to release whatever frustrations he/she may have. It may not seem fair, but it is what should be done. It will make the client feel heard, and that the issue is important to you too. Therefore, it will allow the client to ease up afterwards and be responsive in a less heated manner.

Say Sorry…But Not Too Soon

Admitting you made a mistake in business goes a long way. However, be careful regarding the timing of the apology. You need to hear the client out first then apologize. If you attempt to apologize prior it may come across as if you do not care causing more havoc than good.

Keep these two essential tips in mind when dealing with customers. Most of us have loyal, happy, and satisfied customers. Nevertheless, there are a few clients catching you off-guard. Prevent those negative moments from escalating into something worse by utilizing this advice.

If your business needs additional financing, contact a small business loan expert today.

Share This:

Why Small Businesses Flourish in a Recession

Richard B. — Wed, 07 Apr 2010 17:16:37 +0000

It is common for headlines to state how small businesses are closing, in foreclosure and filing bankruptcy. But have you ever thought about how to benefit from a recession? Small businesses do have advantages during a recession over the competition and here are a few of them listed.

Rent, Products and Services Come Cheap

During a recession, the real estate business is in the ditch. Thus, you are able to find office space available at a discount. In addition, big businesses are going out of business. Therefore, there are office equipment, supplies and furniture on clearance making it possible to expand your business without spending too much money. These expansion costs become affordable allowing your business the opportunity to grow without breaking the bank.

Big Businesses are Filing Bankruptcy

In the midst of a recession, too often big businesses are closing their doors. If one happens to occur, that is your competition, then it is an opportunity to pick up additional customers. The clients have to go somewhere. Hence, why not guide the clients straight to you. This is a chance to build your business, develop new clientele and earn further profits. Do not let it go to waste. Use it to your full advantage.

New Market Means Additional Cash Flow

When economic times are tough, successful businesses are the ones who closely examine the demands and needs of the changing financial situation. For example, if you are a restaurant slow on business, offer a downsized, quality, delicious menu with affordable pricing. This will grab the attention of your target market and bring extra business to the table.

There are many upsides to running a small business during tough economic times. It is just a matter of finding the right angles, looking at the situation from various perspectives and discovering the perfect, moneymaking niche suitable for you.

If your small business needs additional financing, talk to a lender about an unsecured business loan. It will get you back on your feet and operating efficiently in no time.

Share This:

Things to Consider When Opening Up a Coffee Shop

Richard B. — Mon, 15 Mar 2010 17:15:04 +0000

Coffee Shops are Popular Nationwide

Coffee shops are popping up everywhere regardless of what size town or city you live in. Coffee shops may offer live acoustic music, beverages, special coffee drinks, and food. But what makes one coffee shop different from another? Why should people choose yours over the competition? You need to find out more information before opening one up and here are a few angles of the coffee shop business to check out before you dive right in.

Know Your Local Coffee Lovers

Poll your local community and find out if they are interested in a coffee shop. Ask if they already attend a specific spot. Enquire what they would like to see changed or offered at that place. Your locals are the ones who will be visiting your small business. Thus, try to gain as much valuable information from them ensuring you cater your services to meet their needs.

Find a Niche to Separate You from the Rest

Once you gather enough information from the locals think about what will identify you in a coffee shop market. Will it be your hours are different from your competitors? Will you serve different food items? Will you have several items not found at other places? Will you encourage live poetry or music or keep it simple by providing a cool hangout place for teenagers and college students? These are all attributes to consider before opening up your new java business.

Just remember the main thing that comes with opening up any business, map out your start-up, operating, and daily costs. Think about how much cash flow is needed and look into small business loans. Find out all your financing options available.

Share This: