Posts

Colorful graph drawn over tarmac and word PERFORMANCE with directional arrow, business design concept
KPI (Key Performance Indicator) -measurable values which demonstrate how efficient a corporation is at attaining key objectives of the business. KPIs are used for evaluation of success in the attainment of targets.

 KPI must be:

  • Well-defined and measurable
  • Well communicated to all departments of an organization
  • Vital to achieve goals
  • Valid to Line of Business

Financial Metrics

  1. Revenue: it is one of the most significant performance indicators to evaluate the success of the organization. Bookkeeping helps you in evaluating revenue.
  2. Expenditure: calculate cost effectiveness to find out the best methods for reduction and managing of costs. Expenses are determined from good bookkeeping practices.
  3. LOB profits vs. objective: it is an evaluation of actual profits and projected profits to identify the performance of a department.
  4. Expenditure Of supplies Sold: evaluate profit margin by calculation of production costs and assess product markup and actual profit margin.
  5. Day transaction Outstanding:  better the accounts receivable, better is the efficiency of the organization.
  6. Sale by area: analysis of sales area-wide helps in making better strategies in areas where sales objectives are failing to achieve.
  7. LOB operating expense Vs. Budget: comparison of forecasted budget and actual overheads helps in creating an effective budget for the future.

Customer Metrics

  1. Client Lifetime Value (CLV): CLV is helpful in determining the value received from a long term client of the organization. This is useful in keeping the best customers.
  2. Client Acquisition Cost (CAC): it helps in evaluating the cost effectiveness of a marketing campaign.
  3. Client Satisfaction & custody: by making customers happy and satisfied, you encourage them to become permanent customers.
  4. Net Promoter Score (NPS):  make a survey quarterly and evaluate company’s growth for long periods.
  5. Number Of clients: this is simple and straight forward KPI like Profit. Number of customers gained or lost determine whether customers’ needs are met or not.

Process Metrics

  1. Client Support Tickets: analysis of CPT helps in creating a successful customer service dept.
  2. Percentage Of manufactured goods defect: lesser the number, the better is performed.
  3. LOB effectiveness evaluates: Efficiency is measured by the number of products manufactured in specific periods.

People Metrics

  1. Employee Turnover Rate (ETR):  high ETR requires investigation and evaluation of packages and organization culture.
  2. Percentage of Response to Open Positions: large number of applicants depict that the organization is doing well and people want to work with you.
  3. Employee Satisfaction: the larger the number of happy employees, the healthier the organization.
  4. Retirement Rate: This  is important for developing strategic workforce plans.
  5. Knowledge Achieved With Training: determines the value of employee training and knowledge enhancement.
  6. Internal Promotions vs. External Hires: this metric is valuable for determining succession planning of the organization.
  7. Salary Competitiveness Ratio (SCR): used to assess the competitiveness of compensation options.

Customer Metrics

  1. Customer Churn Rate: determines percentage of customers who stop purchasing or availing the service.
  2. Contact Volume By Channel:  determines the number of customer requests and also the method adopted by customer for communication i.e email, phone or other.
  3. Percentage Of Customers Who Are “Very” Or “Extremely” Satisfied: Determines the opportunity to survey the expectations of customers.
  4. Number Of New Vs. Repeat Site Visits:  provides a differentiation of prospective clients and website traffic.

Financial Metrics

  1. Cash Flow from Financing Activities: demonstrates financial strength.
  2. Average Annual Expenses To Serve One Customer: the average sum required to serve one customer.
  3. EBITDA (Earnings before Interest, Taxes, Depreciation, & Amortization): Formula: (Revenue) – (Expenses Excluding Interest, Tax, Depreciation & Amortization) = (EBITDA).
  4. Innovation Spending:  the higher the spending figure, the more the value of innovation in an organization.
  5. (Customer Lifetime Value) / (Customer Acquisition Cost):  this value should be greater than one.

Conclusion

Periodic evaluation of KPIs is helpful in making a better strategy for entrepreneurship. It guides in making adjustments necessary for growth and expansion.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Corporate business team and manager in a meeting, close up
Have you ever pondered upon a company’s success? Have you ever thought about how economists measure the happiness of people working in a company? Have you ever analyzed or compared the happiness of CEOs and the board of directors of a company with that of ordinary employees? Of course, most of us have not!

A company’s success is totally dependent upon all of its stakeholders where they strive hard to achieve the same targets with unity. Entrepreneurs and business owners know the tactics of encouraging others in a way that motivates them to work harder, ultimately growing their businesses. Before encouraging or leveraging others, it is important for business owners to first look at their budget, which makes it easier to buy another person’s services. The budget is the task of a finance department, which is to be designed in an intellectual and interactive way so that reinvestments are made to bring more profits into an organization. Production of more profits is only possible when a company is aware of its past transactions. Bookkeeping is the strategy which is adopted by enterprises and associations to keep records of their transactions so that their future prospects are carried out in a more productive manner. While preparing a budget, the financial department is usually advised by the board of directors to keep a specific section set aside for salaries and bonuses of employees.  This increases overall productivity. Following are certain strategies which can be adopted by business owners to leverage other people’s hard work to grow their businesses and increase their business profits.

  • Announce Interactive Bonuses

Business owners are advised to keep a particular section of their budget set aside for bonuses, which ultimately motivates employees to work harder and more productively. Investing more time and money generates better results. Employees will more likely invest more of their efforts and time into your business when they are promised interactive packages.

  • Make Your Audience Feel Special

Growing a business is multi-faceted. The buyers and audience are equally important as the employees and sellers of a company. Therefore, entrepreneurs and business owners are advised to make their audience feel special by pitching interactive offers, discounts, and deals to them. For instance, gift vouchers can be organized by the company to make it’s buyers feel special so that they are more attracted to your products and services. This always leads to maximum results at minimum investment.

  • Budget For High Quality Advertisement

To grow a business, entrepreneurs are advised to hire designers and marketers on good salaries to generate attractive advertisements laying out all of the benefits for buyers choosing your service or product. If you want to attract more people, don’t skimp on advertisements or the people you pay to do them.  These advertisements tempt the buyers in the market to utilize your company’s services which ultimately brings economic and financial stability to a business.

Final Note

Economists believe that CEOs and entrepreneurs are capitalists. They believe that an entrepreneur’s only motive is to produce profits for their personal well-being where the labor class or employees of a company work only for their organization. Capitalists leverage other people’s efforts to grow their businesses by providing them incentives which seem to be attractive but actually aren’t at all. Business owners are advised to create a budget that designates a specific section to provide benefits to their employees as well as buyers.  For a successful business, in the long run, an entrepreneur must remember that their employees and clients are the two most important stakeholders of any organization.  Therefore, the better you treat them, the more prosperous your company will be.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Man holds invoice of electric power usage
Whether you are working in the creative industry or you have your own gadget store, it’s not easy to avoid the “elephant in the room”. There are multiple mistakes even experienced entrepreneurs make while setting up their business practices and culture, which makes it harder for them to recover payments from their clients. For an entrepreneur, the payment made from their client’s end is their lifeblood. Negligence of clients can even halt the business itself, especially at an initial level, as the company’s future bills are funded by client payments. The internet has grown so far that people are using multiple methods to approach their clients globally. However, not keeping a secure payment method has caught our attention regarding the missed or late payments from the clients’ end. Although, the clients, especially those who are using the internet as their only source of communication, are skeptical regarding paying in advance. Therefore, expecting them to pay a complete upfront payment is not possible at an initial level when you have just started your business. At times, clients make unnecessary delays or deductions after the delivery of their desired product or services which is accounted for as a bad debt account for entrepreneurs.

If you are struggling with this issue, here are a few practical bits of advice for you that can help in recovering your stuck money and even help you in avoiding such scenarios.

Tips to Secure your Payments

Choose the Right Client

Your ideal situation is when you only attract paying clients. Evaluate the clients as they are approaching you for your work, as this will make it easier for you to shortlist the clients you actually want to work for and benefit from. Here are few tips from which you can easily choose the right client base.

1. Raise your Worth

Selling a product or offering a service? Keep your rates at or above the market price. Selling services at a price that is too low will make you more approachable to frauds or less ethical clients. However, the people who are satisfied with your quality of work will be willing to pay you the average market price or even a premium price for your quality.

2. Design a Proper Payment Policy in Advance

Once you have a proper payment policy for your product or service, the client will get the idea of your fixed payment policy. This will depict your professional attitude towards your work. Your professional policy should cover all of the aspects of your best practices as it will act as a preventive for fraudulent cases. The policy should include:

  • Your invoice duration such as weekly/bi-monthly/monthly or project wise
  • Your terms of payments
  • Penalties in case of any late payment
  • Your detailed rate structure that includes basic per hour rate and monthly rate of that project
  • Payment methods that are acceptable to you
  • How you will handle late payments
  • How your company will recover missed payments from the client

 

Identify your Clients while they Talk

Don’t waste time after you have invested your work and money on providing the customer’s desired product. Dealing with late or missed payments later is a frustrating experience. Therefore, one should identify the seriousness of their clients before they start to work on their project.

  • Avoid bargaining
  • Understand the client’s psychology and their potential to understand you
  • Get a contract signed, even for smaller payments/projects
  • Look for clients through references as this will be a more solid and secure source

Always Maintain your Records

Bookkeeping is a very beneficial and necessary part of an entrepreneurial business. The most successful strategies of keeping your payments secure is recording all of your transactions, bad debts, and accounts receivables in detailed records that can help you later in analyzing how much work you are providing and how much you are owed.  

Be Serious about Getting Paid

Sitting and waiting for payments will not solve your problem. You need to personally be proactive in seeking all of your expected payments.

  • Contact the clients as soon as the deadline has passed
  • Start charging interest on late payments
  • Keep nudging the client, even after a month or so
  • Send a demand letter to the client’s address
  • If you are still unsuccessful, contact a collections agency 


Be Ready to do Something

Starting up your own business is not a cup of tea and managing it is a much tougher job. Dealing with your employees as well as your customers is a challenging task in itself. If a client is missing their payments or canceling the payment altogether, you should not wait for the end result. Rather, you should adopt a proactive approach to do something regarding the issue.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Closeup of a young female hairdresser in salon. Hairdresser holding scissors standing with hands folded at salon.
Women love fashion and, if you look around, almost every corner has a beauty salon of some kind. Running a beauty salon is not easy, especially when the economy is difficult. Someone once said: “If it is your passion, then make it your profession and you will see a success.” However, when running a business, it is not always the case; your passion can only get you so far as an entrepreneur. Below, we will focus on owning a beauty salon and what the biggest challenges are when you are in this industry.

Competitive Market

Every business faces some struggles in the beginning. The most important element when running a business is to keep an eye on your competitors. Trends are changing every day, it seems; make sure to stay updated with the latest fashions (haircuts, dying, nails, etc.). Hire beauticians who come with an extensive background of trends. And, if not, offer a training program to get your employees up to speed. The services provided by your beauticians will have a huge impact on your business progress.

 Employee Motivation/Incentives

Your employees are your business asset. As a business owner, it is your responsibility to encourage and motivate them. When an employee believes that their employee will take care of their needs, they will be willing to loyally stand by the business, through good and bad times. Offer incentives such as a bonus, gift hampers, or even health insurance. If you offer them support and make them feel secure, they will be one of the most positive assets to your salon.

Managing staff is not an easy job. Be friendly with your staff, avoid confrontations when you are dealing with issues, allow them leaves on holidays or when sick, etc.  The more flexible you are, the more willing they will be to go the extra mile.

 Getting New Clients/ Retaining Old Clients

One of the most basic challenges that business owners face is getting clients. Different businesses use a wide variety of tactics to attract clients to their services. Think of different marketing ideas, give attractive discounts, run special offers, and let people know you are there. Word of mouth is a great marketing tool; do not rely on social media only, although it is a great way to let people know about your salon. Display prices at the front desk, along with special offers.

When your client leaves the salon, try to make sure they have already booked their next appointment. Offer them lower rates compared to other salons. Create an ambiance in your salon that will make your client feel like home and relaxed. Involve your client in discussion about fashion and trends – women (and some men!) love talking about it. At times, there will be walk-in customers; many salons give priority to clients who already have an appointment, but walk-in clients give your business a boost as well, make them feel welcomed. They could possibly become a long term client.

Initiate a program where clients earn points for every service they get. When they have reached a certain amount, give them a free service or product. Another great way to bring clients to your salon is giving vouchers on their birthday. Women love to be pampered on special occasions.

 Salon Maintenance

Maintenance of your salon is another important aspect that will help you bring your clients back to see you. No one wants to go to an unhygienic place to get their services done. Decorate your salon in a lavish, trendy style to make it attractive for clients. Pay special attention to lights and chairs and use fresh, natural oil diffusers; they help create a warm, inviting ambiance.

However, when maintaining your salon, keep in mind the expenses that you will bear. It is important for any business to keep track of their expenses. If you find it difficult, hire an accountant or bookkeeper for your bookkeeping needs.

 Product Sales

Choose a product that you believe in. Your clients put trust in your choice, so make sure that the product is of high quality. Learn about different products and share your knowledge with your clients. Your product sales can bring a lot of profit to your business. If you feel uncomfortable selling, then just acquaint your clients with the products you are using on them while providing services. Most importantly, do not be pushy when selling different products. 

Conclusion

Owning a salon is, no doubt, challenging, but also rewarding and fun if you love it. Come up with strong strategies to ensure a successful business. Keep in mind, there are challenges in every new business, do not give up. Work with key performance indicators to measure your company’s growth.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

People visiting street food market called Buenos Aires Market in San Telmo neighborhood of Buenos Aires
The food truck industry is one of the fastest growing sectors in today’s world. Over the last five years, more and more people are switching to food trucks with new vendors catering to niche markets. Customers’ preferences keep changing when it comes to food; the unique flavors of different food trucks increase the options of getting a low cost, high-quality gourmet food. 

Why Invest in a Food Truck Business?

During the 2008 recession, unemployment was skyrocketing and the economic collapse forced many people to lose their jobs. In those times, food trucks started to appear in most cities within the U.S. Major cities like New York, Los Angeles, Austin, and Seattle had food trucks popping up all over different neighborhoods.

Investing in a food truck is lucrative because it’s everything that a customer would want… a quick bite, high-quality, freshly prepared right in front of them and reasonably priced. Affordable gourmet food was the only sector in the food and beverages industry that saw a boom, even in the tough recession of 2008, because affordable food was still a necessity for most people. We all have to eat to survive! 

Challenges in Establishing a Food Truck Business

The only setback in establishing a food truck business is the many regulations that vendors have to meet before they get their permits. In most counties, the laws specify the hours during which the caterer can operate along with the distance it covers; it must not be too close to a brick-and-mortar restaurant. As food trucks are offering affordable gourmet food, restaurant owners and other eateries are lobbying against the food truck industry.

Another challenge is that the food truck industry is starting to reach its saturation point in some cities and localities. The high saturation can lead to lower profit margins and slow growth. Despite its challenges, the industry holds a promising future.

The Future of the Food Truck Industry

Food truck owners find new ways to use their mobile restaurant in order to keep their business lucrative. Most caterers have an understanding of running an off-site operation. For many restaurant owners and those willing to start a business in the food industry, a food truck is the best way to take their innovative dishes to other parts of the city.

Catering for Events

Apart from cruising in the streets or parking in a business center, a food truck can offer catering services for birthdays, spring breaks, weddings, and any other special or corporate events. Instead of a catering service, hiring a popular food truck brand will add life to any event. Catering to this niche market is an important step for the future of a food truck venture.

Several couples now prefer to have a late night snack at their weddings because it adds something new to the traditional wedding feast. Depending on the venue and client, they could order a full meal or snacks for guests to nibble on.

Low Cost of Investment

In the future, its highly likely that people may invest in a food truck rather than a full restaurant, bistro, or café. The preference of getting into this business shows that, for many people, investing in a food truck is much more feasible than opening a bistro or even a small café because it requires a minimal initial investment. A food truck is more likely to get profits more quickly as it has the option of changing its location or keep serving on the go.

Travelling to different locations and offering different types of drinks and food in various locations increases the market reach of a food truck.

Promoting a Restaurant Brand

The future of food trucks is promising as many large food brands are entering into contracts with food truck owners to promote their brand. In return, the major food brands offer compensation and sponsorship for promoting their product. Getting into a contract to promote a brand will increase the market concentration of both the food truck and the brand it promotes.

Conclusion

Despite its challenges and regulations by the city or county, the food truck business is booming and it will continue to do so in the future. Entrepreneurship is on the rise and this particular industry in food and beverages requires little initial investment. This makes investing in a food truck business lucrative as it has many other opportunities for expansion in less time.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

Five stars (5) rating with a businessman touching screen, concept about positive customer feedback and review, excellent performance
There are various factors in businesses that define its growth and sustainability. These factors drive profits for your business. These factors may be identified as business drivers.

Recognizing and watching the key drivers of your business is crucial to boosting up profitability.

How to Identify Key Drivers of a Business

A wide range of business driving forces exist as internal and external factors that affect the performance of a small business.

To identify the key economic drivers in your business, focus on the factors that:

  • Reveal the performance and growth of business
  • Can be measured or calculated
  • Can be compared to a standard, such as a budget or last year’s figures, or an industry average
  • Are in your control

Economic Drivers in a Business

Small business owners are always working hard to move forward and focus on bookkeeping and other business operations. But they accomplish their real success when they completely understand the crucial factors that drive profit in their business and then focus on those economic drivers.

The Four Basic Drivers of Profit

  1. Price
  2. Variable costs (depends on the production and sales. Increase with increase in production and/or sale)
  3. Fixed costs (also known as overhead. Such as salary of employees and bills to be paid every month.)
  4. Sales

Price is a key factor that, with a slight change in pricing, may affect the profit margin greatly. Increases in price immediately increase the profit margin. Many entrepreneurs focus on sales. Increase in sales volume, however, increases the variable costs. Increase in variable costs will lead to lesser profit if prices are not increased.

But, another factor is that decrease in variable costs increases profit margin but it will not raise the total revenue. Fixed costs have the least effect on profit.

Each key economic driver in a business’ economics is unique but each key driver is dependent on all of the other drivers. One cannot be affected without influencing the performance of the other. These key drivers are an economic force behind the business growth and profitability. Small business entrepreneurs/owners must interpret these drivers in relation to each other to make their decisions. Employees also need to understand the key drivers in a business as, in the long run, they think strategically and advance in their careers.

Maintaining a good gross profit margin is very important. If gross profit margins are falling, then focus on other key drivers that can affect profit margin to a downfall. There can be a number of reasons for a decreased gross profit margin. These reasons can range from input costs are more, too many discounts are being given, production is not up to the mark, or prices of production materials is increased recently. Take corrective action after the realization of the reason.

The Major Profit Mistakes of Businesspersons

  1. Entrepreneurs focus on increasing revenue through prospective customers and partially forget their existing customers.
  2. They do not promote their product and market the brand image so they often miss the chances to increase prices while their competitors do.
  3. Marketing is an investment tool. They cut costs on marketing and hence they cut investment in business virtually. Marketing attracts more customers.
  4. Increasing price of a product in comparison to another similar product with lesser price can affect the market share of the product.

Conclusion

Price, variable costs, fixed costs, and sales are key driving factors in a business. It is highly undesirable for a business to focus on one driver and not interpret the other economic drivers in a business. Strategic marketing of your product is equally and essentially important and will help to attract more customers and generate more sales and increased net profits. It will also build a brand image of your product and its price can be increased to increase the profit margin. Make decisions in strategic ways that will upsurge the business in the long run.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Female business owner standing in the street outside cafe
Many women in business field face more difficulty than their male counterparts. The rate of turning away female entrepreneurs applying for small business loans by the banks has also increased alarmingly. However, fortunately, the government has special policies and grants to give loans and assist in flourishing women-owned businesses nationwide.

GUIDE TO START A WOMAN-OWNED BUSINESS

1. Select the Business Entity

First of all, give thought about what kind of business you would really like to start. You cannot jump into a new business, head first, without thought and run it successfully.

Know your interests and the pros and cons of your interest in that business specialty.

2. Plan How You Will Proceed in Starting Your Business

You must know what kind of business you are going to run. Do research on it before you file for its registration by the local or federal government. Get a brand or logo for your business identity.

Make an expense and costs data sheet that you will require to start a business. How will you manage the funding? Do you need a grant by the government or some other type of loan?

3. Obtain Tax Identification Numbers by Filing Form SS-4 with the IRS


4. Register with the Central Contractor Registration Database, Using your Business Information, Tax Identification Number and DUNS Number.


5. Join Women’s Business Organizations such as the National Association of Women Business 



FINANCIAL ASSISTANCE IN A WOMAN-OWNED BUSINESS

Understanding grants

Small business owners want to turn to grants because they think grants are free money and they will not have to pay them back. But, these small business grants come with conditions. First of all, you will have to find a grant for which you are eligible for as a small business owner. Then, you will have to comply to the guidelines for submitting the application and wait for its approval until you get entitlement for the grant.  After approval, you still are required to genuinely report on the use of money afterward.

Here are few options for private grants that are available for a woman-owned business.

  1. The Eileen Fisher Women-Owned Business Grant Program
  2. FedEx Opportunity Knocks Small Business Grant Contest
  3. Idea Café Small Business Grant
  4. Innovate HER:Innovating for Women Business Challenge
  5. Small Business Innovation Research
  6. Small Business Technology Transfer Program
  7. Zions Bank – Smart Women Grants

Loan options for woman-owned business

Pilot loan programs assist prospective debtors in developing loan applications and obtaining loans. A Women’s Business Development Center or a Small Business Development Company are examples of such programs.


Women owned-business opportunities

When more than 51 percent of ownership in a business is by a woman or women, there are special facilities and assistance programs present for such businesses. Not all women business owners try to go for these options, but many do. Local government, states, and federal government have special programs for women owned businesses.

If you are a female entrepreneur, register your business as a woman’s business enterprise (WBE) and it will lead to several opportunities for you.

WBE Certification Process Requirements

  • More than 51 percent of ownership is held by a woman or women
  • The business has been in the market for at least 6 months
  • The owner must be a US citizen. If ownership is with a woman who has not received US citizenship yet, she must be a legal resident in the US
  • Proof is compulsory to show that the role of capital from the female business owner is genuine and in ratio to her ownership interest in the business
  • The female business owner must direct the management and business decisions

Conclusion

Female entrepreneurs are making a marvelous impression on the small business landscape countrywide. The government that has special policies and grants to give loans and assist in flourishing women-owned business nationwide. Women just need to come forward with a brilliant plan and commitment to start and run a successful woman-owned business.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

 

Focused African-American office manager sitting at cafe table with laptop, reading important documents with puzzled expression and holding head with his hand.
Everybody makes mistakes and that’s pretty normal. However, the mistakes entrepreneurs can make have significant repercussions for a newly developed business, as it has not matured enough to sustain them. When the mistakes are related to taxes, you can get stuck in a long-term trap which is really hard to overcome. This is why it’s important to understand some of the most glaring mistakes so that you can avoid them in the future.

Tax structuring and placing your business at the right location are two of the biggest challenges faced by entrepreneurs. The common mistakes entrepreneurs should avoid at an early stage include keeping a low personal liability and set up costs. That can only happen if your business is in a vicinity that you know a lot about. In many cases, this will be where you live as you are aware of laws and regulations governing businesses in that area. Once entrepreneurs are able to structure and place their business properly, they can invest their time in developing their products and improving their services as there will then be plenty of time for that.

Not Collecting Sales Tax for Online Sales

New business ventures that are related to e-commerce often fall prey to assumptions. They assume that, because of the fact they do not have to pay sales tax for online purchases, they are not supposed to collect it. That is one of the glaring mistakes that entrepreneurs can make. The selling of online products or services is bound to local taxation laws. If the state or city has laws that govern you to collect the sales tax, then you are supposed to collect it and file the returns.

The issue of online sales tax becomes even more complicated with the passage of the Marketplace Fairness Act. According to the act, all non-exempted merchants are supposed to collect taxes from individual customers that are located in the vicinity of the law. E-commerce businesses are thriving in this digital age and the laws which govern these businesses are being optimized by the government to ensure the steady influx of tax from these business ventures. Businesses are bound to abide by these laws and being aware of them is the first step in ensuring their implementation.

Not Keeping Financial Records

Keeping accurate financial records is a tough yet mandatory job for a newly established business venture. Knowing about your financial position is critical to the success of your business as it will keep you out of issues related to taxation.

The initial focus of any new business is to up their sales one way or another and create a solid customer base for their products and services. That makes sense as well because you have ventured into a business from your personal account and your aim is to earn some profit. However, by the end of the year, you are left with a pile of paperwork and taxes that are left unattended because all of your focus has been to increase your sales. In such a scenario, you would either hire an accountant or try to file the tax returns yourself which can turn in to a pretty bad idea.

Some of the most common mistakes entrepreneurs make include the improper handling of receipts and records of the business sales and expenses that could lead to a number of problems. You could overstate your expenses or profits and end up paying higher taxes than otherwise. The point is that, if you are not careful in maintaining proper paperwork for your business on a daily basis, the result might not be in your favor. Apart from that, you would also not have an accurate understanding of the financial standing of your business which is a lot more hazardous than dealing with taxation issues.

How to fix this problem

Everyone makes mistakes, but it is your ability to fix them that makes the difference. Accounting is the basic language of business, however, you do not have to be an accountant to keep track of your financial matters. Hiring a bookkeeper and getting an online software will solve most of your issues related to organizing financial information. You just need to review the numbers on a weekly and monthly basis so that you have a clear picture of what’s going on.

Out of all the mistakes entrepreneurs make, waiting to hire an accountant at the end of a year is one of them. Involving a professional in the process earlier, rather than later, could help you avoid many undesired circumstances related to paying your taxes. Lastly, keep your business books clear of personal expenses, at least for the first year.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

Young smiling black businesswoman at the wall with stickers communicating with her colleagues. Mixed team of entrepreneurs
Following are 7 ways that you can ensure the success of your business:

1. Write Down a Business Plan

The first step is to write down a plan. Without a written plan you cannot dream of success. The written plan should not be long. It should focus on a few critical points. These points include budgeting, long term and short term financial plans, objectives and goals, sales and marketing strategies, and the source of finances to run the business. 

Your time can be turned into money by initiating a written plan. When and how you achieve your goals is defined by this plan. Your daily step by step actions determine the progress of your business. Depending on the progress, you can make required changes into the written plan.

2. Adjust the Plan and Triumph

The written plan does not have to be written in stone. Think of this, if even a successful military general can burn their plan and go with the flow, then why can’t a business owner? Review the progress and achievement of your goals as planned and make necessary adjustments if satisfactory results were not earned. Don’t ever marry your written plan. Adjust and win the game. What particular market statistics and market value will be helpful in adjustments?  Be flexible, take critical notes, and make any changes necessary to your written plan.

3. Take Bits of Advice

Egos can wreck havoc over you if you prefer them to other valuable things. This is true for business life as well. A business owner should listen to advisers and other team members. They may have better ideas than you. Your weaknesses may destroy your business if you take them personally and don’t work upon them. When and if you’ve made an error, admit it and carry on.

Advisers are always beneficial to your business. They are the people who assess your progress and work. They highlight your mistakes and make you accountable. Listen to them, they will push you towards greater achievements. Be honest with yourself and keep your ego in the pocket. Your business is more valuable than your ego. Be calm and react rationally to criticism. Learn a lesson and stick to your commitments. This way, no one can stop your business in succeeding.

4. Manage and Organize your Team Effectively

Know all of the employees of your team and clearly define their goals in writing. Assess their progress daily and train them to achieve their goals with consistency. Make decisions according to the daily performance of all team members. Your team is an asset for you.  By utilizing this resource, you can succeed.

5. Effective Organizational Structure

The organizational structure of your business is critical for success. Some business owners try to control each and every function of their employee themselves. Avoid the trap of micro-managing.  This style of management decreases the efficiency of the employee. By doing this, your employees won’t take ownership in their work and they will also never learn. But when you delegate to employees, the results are overwhelmingly excellent. Provide all employees the goals designed for them in writing and train them sufficiently for achieving these goals effectively. Your employee will then feel free to work in his/her own way and will get involved fully in tasks assigned to them. 

Review achievements of each employee and reward them accordingly. Reward systems keep employees motivated and this management style leads to success.

6. Use Technology

Create social media pages to attract customers. Social media has proven very cost effective in marketing. Few skills and training are required to use this media for efficient marketing and progress in the business.

7. Reinvent Business

Separate yourself from your past history and create a new competitive advantage, be it a focused niche or super service, but not by discounting.  Research the ways of successful businesses and take that, along with your own creativity, to introduce a unique business that will attract new consumers.

Conclusion

By using the above mentioned suggestions, your business can succeed. The sensible and logical way will always work, along with a little creativity and hard work.


Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

A small businessman smashes a giant swinging iron ball with a word DEBT on it using a hammer. Get out of debt. Reduce credit. Financial help.
In economics, personal debt, often referred to as consumer debt, is a loan taken for consumption, not an investment, in the business. It is often used to purchase goods which are consumables and do not appreciate in business. When a financier or a financial body gives a specific amount of money to the borrower, this money is called debt.

Debt is created by the borrower who will have to return that money lent to the financier. Debt is also called a loan. There can be different types of loans. The person or entrepreneur who owes debt is a debtor and to whom this loan/debt is owed, is a creditor or lender. Debt can be issued either to an individual borrower or to a business.

Personal debt is taken by the individual entrepreneur, not by the business and/or corporation. Debt is taken by an entrepreneur to use in funding huge purchases that he/she could not afford under normal conditions. A debt arrangement means that the borrower is given money under the condition that he/she will pay back the money at later dates and, most of the time, this is paid back with interests.

7 Rules for Going into Personal Debt as an Entrepreneur

Whatever the business is, money is required as an investment to get a business started. Even if the business is a one-person business, in the beginning, it still needs money for registration of the name, logo, tools, work space and a computer for running the business. Even the smallest business requires money for a good start-up. If the entrepreneur does not have enough savings or the business operating expenses may grow beyond the revenue, then it is obligatory to take a loan to invest in the business.

There are many options to attract potential investors but, if there is no evident system of revenue in the business, the banks may not give the loans. In that case, entrepreneurs have an option of going into personal debt.

Here are some important rules to be followed by entrepreneurs going into personal debt.

1.  Personal debt must not be taken as the first choice. First, consider all other options available at that time to invest money in the business rather than taking a personal loan as the first choice. Review the business plan and bookkeeping. Clearing these issues will make the business plan more appealing to potential investors, which can further decrease the chance of going into personal debt as an option for the entrepreneur.

2.  If the business is of small size, then go for loans offered by the government which are provided with the least interest rates.

3.  Get rid of any current debt first. Remove previous debt as much as possible before going into a business that will need more loans.

4.  Have a clear-cut idea of what a personal debt is. Even though you are using this loan for your new business, going into personal debt is a personal loan. You have to pay it back yourself. Though you might be investing the lent money in the business, paying back this loan with interests is your liability. Many businesses do not generate remarkable profits for years. If the business is new and not already a successful running business, then the fact that the business could go under must be kept in mind.

5.  Get personal loans at the best interest rates. Try searching for better interest rates, which are more feasible for an entrepreneur to pay back the loan rather than taking on much higher interest rates.

6.  CrowdFunding Option: In this case, large masses of people are asked to invest small sums and a huge capital investment is created.

7.  Always have a backup plan when going into personal debt. In case a business fails or does not yield enough profit to pay back the loans with interest, the entrepreneur is personally accountable for the debt taken, no matter what.

Conclusion

Personal debt is a good option for entrepreneurs for investment in a business plan, but always consider all other options first. Always have a backup plan if the business fails, as the entrepreneur will be personally accountable for paying back this loan.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.