Small Business Solver.com

Figure Out When To Stop

Shutting down a business is the last thing a small business owner wants to think about when they start out. However, if you go too far without taking a bit of time to reflect on whether or not the business is meeting your expectations you may find yourself in a bad situation. Make sure that you get out while you are ahead, and stop yourself from a bad experience. This module helps you objectively look at when you should stop and how to get out of a business.

WHY THIS MODEL?: Figuring out when to stop is a huge decision. This is a helpful tool to help you decide.

Is There a Need?

So you are planning on launching a business because you either tweaked an old product, found a patent, had new technology or features to upgrade a product or service, or just had a brilliant idea. What you need to consider is whether there is a need for your business or not. Think about the customer first because it doesn't matter how great you are if you are not satisfying a customer's need. The success of your business is determined by this very factor.

WHY THIS MODEL?: Your business idea will work best if people need the product/service. It is time to double check if this your product/service is really meeting a genuine need out there.

Competitive Edge

Identifying your competitive edge is not just for the new business owner entering the market. It's for the company with stiff competition in a maturing market that is losing on its average margin and needing to cater to a niche market. It's for the company with a steep decrease in sales that may have lost its focus and needs to offer a new or stronger competitive edge. It's for any business owner who wants to succeed. So what is a competitive edge? Your competitive edge can be anything that makes your company, product or service different and stand out from your competitors. It is the main reason why you are in business. It is the one thing you offer that is better than what is currently available on the market.

WHY THIS MODEL?: Do you have something that is different about what you do to support the decision to stay in business?

Dealing with Competition

If you are just starting up a business and going after an existing market or are a company trying to penetrate an existing market with a new solution, you will need to understand how to deal with your competition. Learn how to maintain a positive relationship with a competing company through the various stages of your business' growth such as when your business is insignificant, when it starts gaining market share and when it appears on everyone else's radar. Your competition is any business whose sales you could potentially take away. This model will help prepare you for meeting your competition either through customers, suppliers, industrial relations or in person.

Regulations

The government impacts business tremendously. One regulation or new license requirement can dramatically change how a business operates. Make sure that you know about the key pieces up front about stucturing your business, overview of tax time, and things that you just can't do. See the following webpage for all your updated answers for the Canadian government: www.canadabusiness.ca.

WHY THIS MODEL?: You need to understand the regulations at the start or you won't be in business for long.

Tax

There are many different types of tax that an entrepreneur has to understand. Mostly they don't have time for sorting through all of the tax details - so this module highlights the Canadian tax deductions that all small business owners should know about and how to record them. As long as you start collecting this information upfront, you can ensure that when tax season comes along, that you are prepared and able to minimize how much you owe.

WHY THIS MODEL?: Once you open your business, you have to start thinking about the administrative parts.

Customs

Any company that is bringing goods into the country or shipping out of the country has to be worried about customs. There is a lot of extra paperwork and costs involved, including the amount of time that needs to be invested in learning. Here are the key components and venues to move forward all in one spot: http://www.cbsa-asfc.gc.ca

WHY THIS MODEL?: If you are importing or exporting, you will have to understand customs from the beginning.

Cash Flow

Cash is king especially when it comes to small businesses that rarely have the credit line or bailout investors lined up to help them when times are rough. Maintaining a good cash flow management process means tracking how much cash is moving in and out of the business. It can be as simple as watching your bank account balance to being as complicated as figuring out a 12-month projection. Cash flow management is important as there comes a time in everyone's business when they are close to the red line. Without a good understanding of the cash flow situation, it is difficult for a company to make decisions about investments and committing to partners, suppliers, and customers. Use the following model as a basic concept surrounding cash management planning.

WHY THIS MODEL?: Not having enough cash is a common reason to close shop. Make sure this isn't what causes you to stop.

Negotiating

Negotiation occurs when two or more parties come to terms on an agreement. The agreement often results in compromise with some give and take from both parties until they are satisfied with the arrangement. Likely, the two parties have conflicting goals and a compromise is necessary for both of them to benefit. The best way to look at negotiation is to settle on an agreement where both parties are significantly better than without an agreement. Everyone can benefit from learning how to negotiate. Business owners specifically will benefit from gaining negotiation skills as they will be dealing with customers, suppliers, employees and partners. Whether or not you make money, and how much money you make is largely related to negotiating. In fact, in many instances you don't close the sale without good negotiation skills. For an entrepreneur, you will be negotiating costs with your employees and suppliers and price with your customers. No business can run without negotiating power.

WHY THIS MODEL?: Negotiating is required in sales at all stages of business.

Creating Your Vision

Start your business vision with a five year plan because it will ensure you have a driving force and a growth plan in place. Dream big too! Here is the time for you to set not only business goals but values that will be a root for your business. Do you want this to become a family empire? Is this your reason for living? Will your business become a legacy and make a difference in the world? Get inspired and be as creative as you want; this is your vision. Dare to dream.

WHY THIS MODEL?:Figure out your end goal to help make sure you start in the right place.

What's the Right Business Model?

Everyone wants to sell directly to the final customer. We are used to seeing consumer packaged goods companies do this, and we are familiar with all of their advertising. We understand this business model, so we think that that is the only way to proceed. But this is not the only business model. And in many instances it is not the best business model. This module is for small business owners who know they have a great idea, but don't know the best way to sell it. You could be an existing company who is looking to expand how they are delivering their current product or service, and changing the business model may allow for growth. Either way, this module will outline the options and help you decide which way to move forward.

WHY THIS MODEL?: This will save you both time and money. There are many ways to deliver a product/service, the right business model makes sure you are selling your product/service the right way.