Small Business Advice

Every business is created not merely to exist but to reach some goals that are established by its owners. Those goals can include survival for a newly established business or during a time of crisis, growing sales, growing market share, and growing profits. All these take planning, skill, and effort but as American economist, Benjamin Graham stated, “The worth of a business is measured not by what has been put into it, but by what can be taken out of it.”…

According to SCORE, about 75 percent of small business owners participate in charitable giving. They reportedly donate about 6 percent of their profits each year to charities. They contribute in support of youth organizations, donate to first responders, support local service organizations like the Rotary, for example, and they donate food and service time to places like soup kitchens and food banks. Clearly, charitable giving is valuable, but it must be approached wisely.  The Benefits of Charitable Giving  The benefits of charitable giving include:  First,…

Every small business owner must focus on their business dreams, goals, and the essential struggle to secure an average small business profit. As Jason Fried, Founder and CEO of Basecamp stated, “A business without a path to profit isn’t a business, it’s a hobby.” And speaking even more bluntly, Hendrith Vanlon Smith, Jr., CEO of Mayflower-Plymouth said, “In business, profitability is a non-negotiable. If a business isn’t profitable, it’s worthless.”   Why is A Small Business Profit So Important?  Earning a profit is vital because profitability…

A new year is upon us. As any good football, basketball, or soccer coach would advise, “start strong.” So, prepare your small business for success in another year by starting strong.    Why Start Strong?  By starting strong, you get a surge of momentum that helps you not fall behind on your goals as the year progresses. Starting strong can help employees be more motivated and energized. A strong beginning means refreshing goals, recharging, or even redirecting the organization. It…

Every small business owner has many things to plan and many functions to manage. It can all be overwhelming. But one critical thing that guides many of the priorities is focusing on ways to increase the value of the business.  What is Business Value?  The value of a business is defined as the total value of its tangible and intangible elements. The tangibles include real estate, buildings, equipment, inventory, monetary assets, and stockholder equity. The intangibles include the strength of the brand, trademarks, goodwill, and public benefits.  …

Thousands of people start new businesses every year in the U.S. in pursuit of their entrepreneurial dreams. According to the latest census, there are 32.5 million small businesses, defined by the Small Business Administration as those that have fewer than 500 employees. But running a small business isn’t a “cakewalk.” There are many functions to manage, risks to deal with, time commitments, and mastering your small business’s finances.  What a Small Business Owner Needs to Do  To succeed, a small business owner…

Small businesses are critical to the U.S. economy with more than 32 million small businesses in operation according to the SBA Office of Advocacy. And U.S. small businesses employ almost half of the workforce. The COVID-19 pandemic affected all businesses and today they continue to face many challenges. Thus, it is important for small business owners to understand financial trends to create a solid path to continuing success.  Why It is Important to Understand Financial Trends   To use an analogy from the…

Selling your small business isn’t likely to be the first thing on the mind of an entrepreneur when he/she decides to start a small business. After all, there are dreams of great success ahead. But sooner or later that likely will become a reality. According to smallbiztrends, 8,647 small businesses were sold in the U.S. in 2021, up from the 7,612 sold in 2020.  Why Do Small Business Owners Sell Their Businesses  There are many considerations that may lead to the possibility of selling…

Is financial uncertainty a possibility for a small business owner? Yes. Indeed, financial uncertainty can occur for any enterprise. The key thing is to prepare for that possibility. As Thomas A. Edison said, “The object of all work is production or accomplishment and to either of these ends there must be forethought, system, planning, intelligence, and honest purpose, as well as perspiration.”  What is Financial Uncertainty  Financial uncertainty refers to the lack of sureness of a business’s financial future; the inability to…

Everyone likely understands the well-established principle of having a personal savings account to prepare for “a rainy day.” The same principle applies to businesses that should have a business savings account. A business savings account is different from a business checking account in that a business checking account is used for regular transactions such as paying bills and making various purchases while a business savings account is used for storing funds safely.  Benefits of Business Savings  A business savings account offers these benefits:  To deal…