Vengeance In Business Provide Little Consolation

Vengeance In Business Provide Little Consolation

Business Fails, Business Ideas, Relationship, Uncategorized
All those who work or run some business might have come across a time when they were made to feel ignored, small and invaluable. No matter how much one gives in, there are times when the efforts are turned down.
In such situations, it is quite natural for someone to feel dislocated, isolated and the feeling of vengeance might overrule the entire judgement of a person. But, vengeance in business provide little consolation and that’s why one should’t seek revenge.
Here are four main reasons why you should never seek revenge in business:
  1. Revenge can escalate the bad situation or rebound in an unexpected and harmful way.
  2. Your problem is not others problem so seeking revenge won’t get you anything (not even sympathy). But, seeing you as an entrepreneur with a problem will only give gossips to the media. Don’t feed their hungry eyes!
  3. If something went wrong, it doesn’t mean that you were right. Raising the issue will also put you under suspicion of doing something wrong. So, why to raise someone’s brow when you can sit and relax.
  4. The problem will pass out because life isn’t constant.

Keep Your Friends and Family Out of Your Business

Business Fails, Business Partners, Finance, Uncategorized

Involving third parties in relationship matters doesn’t solve your problem, it compounds the issue. If you discuss your private affairs in public, it is going to backfire. Managing relationships by committee condemns them to a premature death. The best approach is to allow time, patience and the human conscience a moment to work. Besides, only you and the person that’s involved posses the ability to actually solve your problem. Once you put people in your business, you never get them out. It’s human nature for people to hold on to negative preconceptions about people. This is especially true as it pertains to your friends and family when you immerse them in your relationship.

It’s better to keep your business to yourself, others just want to do you pain. 

Be wise and hold your mouth, the worst that will come out of it is staying the same. – morayo

There is an old saying, “A dog that brings a bone carries one.” In other words, people that have an eager ear to hear your business cant wait to tell it. Using your as the example, don’t you have at least one person you share information with? Other people are just like you! The juicier the gossip, the harder it is for someone to hold it in. There is a ninety percent chance that anything you say will be repeated to someone. Not only are you needlessly exposing your relationship to unnecessary scandal, you’re betraying your mate. Long after the two of you get past the problem, friends, relatives and those in your social circle will still be whispering about you and your significant others past issues. i.e. Don’t get pissed off at your relations when you put them in your business to begin with.

 So, you get it: Keep your business and personal credit separate. But how do you get started?

1. Establish your business as a separate legal entity.

This could be as a sole proprietor, LLC or S-Corp. Sit down with your tax advisor or financial planner to determine which legal entity fits your business and financial situation. Sites like LegalZoom and Rocket Lawyer can take care of the legwork. You just complete an online questionnaire and pay a small fee. The websites fill out the documents and file them with your state. You can receive your official formation documents in about seven to 10 days.

2. Set up a business checking account.

This keeps your business financials more organized and allows you to get a clear picture of where your money is going. It usually takes just 30 minutes to set up an account at your local bank.

Use the business account for all business-related expenses. When paying yourself, deposit the money into your personal checking account. Your business checking account also allows your business to use employee payments as tax deductions from income, while letting you show personal income for the purpose of loans, credit and taxes. Business lenders will want to see your bank statements to get a true picture of how you’re performing.

3. Build a business credit history.

Start by opening a business credit card and always paying on time. The business credit bureaus will add this positive payment history to the credit file dedicated just to your company. Unlike personal cards, you may be able to deduct interest from business credit cards. When applying for a business card, just be sure to verify that the card provider reports to business credit bureaus and not to personal ones.

One of the biggest mistakes new businesses owners make is relying on personal credit cards to fund operations. Not only do you take on liability, you can damage your personal credit. If you have a personal score of 800 and max out your cards, your score will drop below 700. A 100-point drop will definitely cause your odds of getting credit to tank. It’s that severe.

Along with getting a business credit card, you should also open credit lines with your vendors and suppliers. This is known as trade credit. It gives you extra time (net 15, 30, or 60 days) to pay for your supplies and services. Depending on what type of industry you’re in, you can open accounts with businesses like Office Depot, Staples, UPS, Home Depot, etc. These companies are usually willing to establish a small credit line for your business without reporting or checking on your personal credit information.

As you establish a consistent history of on-time or early payments with these suppliers, your business credit scores will improve. This will allow you to access even more credit with even better payment terms. It’s a snowball effect.

4. Monitor your business credit regularly.

After establishing healthy business credit, you’ll want to stay on top of it. According to the U.S. Small Business Administration, the credit score of 33 percent of businesses may decline over just a three-month period. That’s why your lenders and creditors reassess your company’s creditworthiness on an ongoing basis. If your credit deteriorates, terms can be adjusted or stopped altogether. Without notice, you could be forced to pay cash on delivery for your supplies in place of your normal 30 days payment cycle. Regular monitoring helps avoid these nasty surprises.

12 Leading Reasons of Business Failures

business, Business Fails, Business Ideas, start a business, Uncategorized




According to Business Survey.  magazine, 33% of all new businesses fail within the first six months. Fifty percent of new businesses fail within their first two years of operation and 75% fail within the first three years.


Here are the leading reasons of business failures.

1. No Business Plan


You‘ve heard the old saying “If you don’t know where you are going, how will you get there?” 

Too many business owners start their business without a plan. They simply “open their doors” for business and then expect to succeed. 

Before starting your business, take the time to develop a Business Plan. 

Your plan will identify what you want your business to accomplish (where you want to go) and the strategies that you will utilize (how you will get there).

(For tips on how to how to write a Business Plan, see the article entitled “How to Write an Effective Business Plan” in this section)

2. Under Funded 


Many businesses fail within the first few months, because the owner runs out of money. 

When starting any business, you will need money for all of your start up costs as well as money to sustain the business for the first few months of operation (until cash flow from operations is positive). 

Running out of money is a result of poor planning. A properly developed Business Plan will tell you exactly how much money you require for start up expenditures and to operate the business until cash flow is positive.

A business owner should develop Income Statements and Cash Flow Statements for the first two years of operations. That will tell you whether or not you have sufficient funds to sustain the business until it is profitable. 

3. Lack of Operating Goals and Objectives


Many business owners create a Business Plan to obtain a loan. Once they receive their funding, they put their plan “on the shelf” and do nothing further with it. 

While it is important to have a Business Plan, it is also very important to have specific goals and objectives for the first twelve months of operations.

In your planning process, create goals and objectives for your business. Break down goals and objectives by quarter – in other words, identify all of the things that must be done during the first quarter, the second quarter, the third quarter and the fourth. 

Examples of specific goals could be for each month; revenue objectives, profit objectives, numbers of new customers, specific marketing and operational activities, etc.

4. Failure to Measure Goals and Objectives


All too often, once a business starts operating, the owner becomes too immersed in the ongoing daily activities to take the necessary time to assess the progress of the business. 

It is fine to establish operational goals and objectives, but you also have to measure how well your business is performing against those goals and objectives.

Measuring against the identified goals and objectives will tell the owner whether or not modifications and alternate strategies are required.

5. Failure to Pay Attention to Cash Flow


There is an old saying in business “Cash is King”. In the early months of your new business, monitoring cash flow is extremely important. 

It is really as simple as this: if you continue to spend more money than you bring in, you will soon be out of business. 

Cash flow is all of the money that you take in each month minus all of your expenditures. 

Cash inflow is cash sales and accounts receivables collected. 

Cash outflow is all monies paid for inventory purchases and operating expenses (rent, heat, hydro, salaries, marketing expenditures, etc.).

It is not uncommon for most businesses to have a negative cash flow for the first several months of operation (in some businesses this may be for more than a year). 

However, at a point in time, the cash from revenues will exceed expenditures and the business will be in a positive cash flow position. Every new business owner has to ensure that he / she has preserved enough cash to reach this point.

6. Failure to Understand the Industry and the Target Customer


Some business owners start their businesses before fully investigating the industry. 

What are the trends in your industry – is it growing or declining? What are the opportunities and what are the threats? Where can you position your business in this industry in order that your business will succeed? Will new technologies have an impact on your industry?

If you have not taken the time to understand your industry, you could be entering a “sunset industry”. 

I have worked with two companies that had to reinvent themselves because they were both in “sunset industries” due to changes in technology. One was a manufacturer of computer printer ribbons for dot matrix printers. This was a very good industry until the introduction of laser and ink jet printers. People stopped buying dot matrix printers and the demand for printer ribbons declined significantly. The other company was a cheque printing company. Due to electronic payments, the usage of cheques declined significantly.

Some business owners open their doors for business without taking the time to understand their target customers (buyer demographics and psychographics, how they buy, what they buy, when they buy, what motivates them to buy and where they buy). 

Do not expect that just because you are now in business, that customers will flock to your door. If you do not understand your target customer, how do expect to effectively reach them? 

7. No Means of Differentiation – Just Another “Me Too” Business


Many businesses have failed because they are just another “me too” business. 

Customers need a reason to come to, or to want to do business with your company. 

If your products or services are the same quality and prices as your competitor(s), why will people buy from you? They already have an existing supplier.

If however, you can offer a different or better product / service (better quality, lower prices, broader selection, faster delivery, better location, extended warranty, etc.), prospective customers will want to do business with your company.

Every business owner must objectively ask this question “If I were a customer, why would I want to do business with this (my) company?” If you cannot identify two good reasons, then rethink your positioning and your strategies.

8. Poor or No Marketing Programs in Which to Attract New Customers


Just because you have opened your doors for business, that does not mean that customers will beat a path to it. 

You have to announce to prospective customers that (a) you are open for business and (b) why they should want to deal with you.

By understanding the demographics and psychographics of your target customers, you can identify how to best reach them. 

There are numerous ways in which you can market your business. Some of the more common are: 

Advertisements (newspapers, magazines, radio, television, yellow pages, value packs); billboards; brochures (electronic and printed); cross marketing / cross promotions; direct mail; fax (broadcast or personalized); networking; newsletters; postcards; posters; promotional items; public speaking; referrals; sales calls (cold calls, scheduled calls); sales letters; seminars & workshops; signs (interior and exterior); targeted e-mail; telemarketing; telephone on hold messages; trade shows; website.

In order to ensure that your business succeeds, in the first few months you will have to implement marketing programs that get the attention of, and appeal to the needs of your target customers.

9. Underestimating the Competition


Some business owners underestimate the reaction of the competition when they start their businesses. 

Any owner of an existing business that perceives that a new entrant to the industry will be taking away some of their customers, will aggressively take steps to defend their customer base. 

They could do this by lowering prices, offering package / bundle pricing, extending terms, introducing new products, improving product quality, extending warranties, increasing marketing activities, etc.

Do no underestimate the competitive reactions to the start of your business. You may find yourself in an extended competitive “war”. 

10. Not Cost Competitive


Before starting your business, attempt to obtain information about and to understand the cost structure(s) and selling prices of your competitors. 

You may find that your competitors have lower operating costs than you. Your overhead may be too high. Your manufacturing processes may not be as efficient. 

If your selling prices are the same as your competitors and their operating costs are lower, their margins will be higher. If that is the case and you get into a protracted price war with a competitor, you will not survive. 

You will have to find ways to reduce the cost disparity if you plan to last in this industry. The lowest cost producer will always win a price war. 

11. Lack of Attention to Accounts Receivables and Inventory


Some businesses owners do not pay attention to their receivables and their inventories. Accounts receivable and inventory can suck cash from a business. 

If customers are not paying you, or are not paying you on time, they are using your money. 

If you have excess inventory or slow moving or obsolete inventory, you have your money tied up in products that are of little or no use to your business.

Just as you should be monitoring the cash in the bank, you should also be carefully watching accounts receivables and inventory levels. 

12. Poor People Management Skills


Many companies state that their employees are their most important asset. 

Frequently customers do business with an organization because they like the people that they deal with in that company. 

If you do not treat your people fairly and with respect, you may have a constant turnover of employees. 

After a while, due to constant turnover, customers may become wary about dealing with your company. 

If your business requires employees with unique skill sets, it may become difficult to find acceptable replacements. If that is the case, quality and output may suffer leading to customer dissatisfaction and a decline in your business.

Treat your employees well and they will enthusiastically help to grow your business.