In this fast paced world, things are becoming more technical. We have entered the digital economy and most people nowadays are dealing with the largest network in this universe, the internet. Almost everybody, during week days, spend time in their offices in front of a computer, surfing and working through internet. During week ends, they are at their homes, still slumped in front of their laptops, desktops or tablets, spending their days off with what Facebook can offer them.

Gain Online Presence

At one point of your existence in the cyber world, you have ‘googled’ yourself (no need to deny it, I’ve done it myself). Google is probably the most checked site by everyone. It is fascinating that this site could know almost everything about anything.

If you want to be found by your target market, make yourself visible by putting up your website and market the products or services you offer. Make it more interesting by having a blog site as well. It is more convincing if the approach you use is on a first person basis, like talking directly to your niche. People greatly consider anecdotes and testimonials to support their decisions in acquiring your services or products.

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Why start your own business?  After all, it may be one of the most masochistic decisions any individual can make.

To begin, startups come with financial risk, and impact of failure on one’s finances can be severe.  Moreover, starting a new business is a sure-fire way to distance oneself from friends and family.  Startups can be all-consuming, leaving little time for much else—including personal relationships.  Finally, starting a business can take a heavy physical and emotional toll.  Late nights and meals at one’s desk are not a healthy lifestyle, and the highs and lows of the startup game can drive a person mad.

Here is why I love being an entrepreneur.  In short, starting a business is one of the most exciting, challenging, and rewarding ways to spend my working years.  Yes, it can be hard and cruel, but six years into it, I haven’t experienced a single day of boredom.

 Startups are not for everyone.  Here is some advice if you are considering whether to get into the game:

(1) Get some experience first

Some recent academic literature has concluded that the ideal age for entrepreneurship is 40.  This is no doubt because can help to have working experience before you start a business.  For one, it provides an opportunity to save up some potential capital to invest.  Moreover, you will inevitably pick up some useful skills and knowledge along the way—some of which could prove handy, even if your new business is in a field outside of your expertise.  In addition, as you work, your network of contacts will grow.  This can prove useful in a variety of ways, including client development, recruiting, the pursuit of capital, to name a few.

(2) Analyze your opportunity costs

If you have nothing to lose, it is easier to take the leap into entrepreneurship.  If you are the sole breadwinner for a family of 5 with a limited nest egg, it probably makes sense to save up some cash first, and think very carefully about the impact that a bombed startup would have on your life.  One other word of caution here in a different vein: Be aware of the risk of your opportunity cost rising too high.  Although an increasing employee paycheck is generally a good thing, the higher your salary rises, the more difficult it can become to quit your job and scratch that entrepreneurial itch.

(3) Build a detailed financial model for the business and test your assumptions thoroughly

Once you begin reducing the business to a spreadsheet, the realities of the numbers will begin to emerge.  Taking into account all of your expenses and revenues, as well as when they should occur, will give you a sense of whether the business can make money.  It will also give you a sense of how much capital you will need and by when.  While there are always financial surprises in the startup experience, waiting to build your projections until after you commit to a business is a dangerous proposition.

(4) Speak to potential clients

Treat your new venture as a sophisticated investor would treat a new potential investment and determine whether your idea can be monetized.  Do some due diligence and explore whether there is interest in your product or service.  Ask client prospects whether they like your value proposition.  If you are entering a competitive industry, ask what it would take for clients to switch providers.  Knowing what potential clients want and need is critically important to know if there is room in the marketplace for your business.

(5) Ask yourself whether you have the right DNA

Jumping head first into a startup is not for everyone.  If you are the type who needs others to motivate you, or who has trouble staying focused when times get tough, starting a business is probably not be the right move.  But if you have self discipline, a fair amount of confidence, passion, and a good deal of intestinal fortitude, you may well be the perfect fit for entrepreneurship.

Keep in mind that starting a business is not for everyone.  But for those who have what it takes, becoming an entrepreneur may be the most fulfilling professional path.  

About the Author: Paul Mandell is a Founder and the Chief Executive Officer of Consero. In this role, Mr. Mandell provides strategic leadership for the company with a rigid focus on excellence at every level of the business. Prior to founding Consero, Mr. Mandell founded and was the President of a national legal support company that was acquired in 2007. The successor entity was recognized as one of the world’s top legal process outsourcing companies during his continued tenure as President the following year. Prior to entering the business world, Mr. Mandell practiced law at Arnold & Porter LLP and Sullivan & Cromwell LLP in Washington, DC, and New York, New York, respectively, where he focused primarily on antitrust and pharmaceutical litigation. Prior to his law firm experience, Mr. Mandell clerked for the Honorable K. Michael Moore of the U.S. District Court for the Southern District of Florida.

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There is much discussion about how beneficial an MBA education is for entrepreneurs starting a business. The debate is about whether the skills required for success as an entrepreneur can be taught and whether the current MBA curriculum allows its graduates to succeed in today’s business landscape. Entrepreneurs must decide whether to invest in a top Online MBA as a prerequisite for starting a business, or rather instead to invest that money directly into a new business.

According to the article, “Seven Essential Qualities of a Successful Entrepreneur” published in the Wall Street Journal, having a vision and being passionate about pursuing that vision are believed to be key requirements for entrepreneurial success. Given that most entrepreneurs accept this driving force as a critical component for entrepreneurs, the question germane to the MBA debate is whether you can teach a student how to think in an innovative manner and to come up with a new idea that they are willing to pursue with an intense and ongoing commitment. Considering the enormous commitment and sacrifice that most new companies require, if an entrepreneur does not make a business dream a top priority in the beginning, it will be very difficult to stick with it when the big challenges arrive.

Education Cannot Teach Passion or Innovation

Considering the large number of highly successful entrepreneurs without formal MBA training, a persuasive argument can be made that entrepreneurs do not need an MBA to succeed when they have a good idea and are willing to pursue it against all odds. Some of the better-known entrepreneurs who are recognized as high-profile contributors to society without an MBA include Bill Gates, the billionaire co-founder of Microsoft. Steve Jobs, the co-founder of Apple computer is another entrepreneur that must be recognized as one of the most celebrated entrepreneurs without an advanced education. These visionaries created technologies that have directly impacted the lives of most people in technology-savvy cultures. The problem with MBAs is that its curriculum teaches students what’s worked for businesses in the past; it doesn’t teach them what being innovative and determined are.

People Skills

While many innovative entrepreneurs in the technology industry have not suffered from a lack of people skills, in many other industries this lack could prove a block to success. We’ve all heard the saying that it is not what you know, but whom you know that makes you successful. If this is true for most entrepreneurs, then it is easy to understand why so many people who are well liked do so well in business.

Networking is promoted as a plausible way to find business partners and key employees. An entrepreneur must be able to depend on talent and commitment to make up for a lack of other resources to compete. This is where leadership and charisma play a key role in recruiting the talent necessary for success.

Conclusion

The debate will continue about whether an entrepreneur needs an MBA to succeed as an entrepreneur. Some questions that any new entrepreneur must consider is whether they can commit for the long-term, and whether they can withstand the pressure to compete under duress. Some of the considerations to think about are financial demands and a support system. Entrepreneurs’ challenges are often not limited to business competition, but also include family concerns. Having a spouse or partner who is also committed to an entrepreneur’s dream can make a substantial difference in whether an entrepreneur succeeds.

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Owning your own business is like going on a new adventure every day, without knowing where it will take you, what dangers you’ll face along the way, or even whether you’ll make it out alive.   That last part depends mostly on the business you’re in, but hey, it can certainly feel like your small business is going to kill you, or at least get the better of you on any given day.

A very close friend of mine, who happens to own his own apparel company, came to me recently, shaken, unshaven, and obviously stressed.  He began telling me how he was missing meetings, losing track of time, neglecting personal relationships, and generally forming more bad habits than he could keep up with, on account of his business was taking over his life. 

I definitely related to his situation, and then started thinking about ways to help him (and other small business owner like him, myself included). 

Here’s what I came up with:

Know How (and When) to Say No

Small business owners should have four legs, we scramble so much.  And while the world appreciates our hustle, we often agree very hastily to much more than we can actually take on, in the hopes that we can cut a better deal here, or get more funding there. 

Much of this hustle is necessary, but much of it is not.  Yes, it is important to make contacts, to pitch your product, and to get funding, but missing meetings because you have too much on your plate is much more damaging to your reputation than saying no ahead of time.  If you are feeling like your business is running you instead of the other way around, than examine your current commitments to see which are essential, acknowledge to yourself that it is OK to say no, and then, in the future, say no to the things that aren’t. 

Plan Every Second of Your Life

No, I’m not exaggerating.  What kills many small business owners is ambiguity in their schedules.  Don’t allow this to happen.  Get a planner, a journal, a piece of notebook paper, or a napkin — whatever it takes — and write down exactly what you have to do that week, and when you will be doing it.  Zero in as microscopically as possible, to the point that you include such details as “eating ham sandwich alone at 12:05,” or “meeting with (x) investor at Starbucks on 1234 Main at 1:39pm.”  Specificity in activity and time count.  Don’t leave any “wiggle room”; free time is time that is unaccounted for, unless, that is, you schedule it in.  See how that works?  You can’t feel guilty about free time if you knew you were taking it. 

This should go without saying, but often we small business owners need to hear what goes without saying, so: DO NOT VARY FROM THE SCHEDULE.  Once it is written, DO IT. 

Take Free Time

This is extremely important.  There’s a reason the normal work week is only Monday to Friday: Neither the human body nor the human mind were designed to work 24 hours a day, 365 days a year.  With that in mind, plan some free time, and even some vacation time, into your week.  You will be able to focus better, and will feel more in control of your life if you do things outside of running your business, and, best of all, you will be able to run your business better when you are refreshed and thinking clearly. 

By the way, after I presented my friend with these strategies, he adopted them, and while I can’t vouch for his business, I can vouch for his health and happiness, and I can say that after following my advice for a few weeks, he looked like a million dollars, and felt like it, too.  And you can’t run a business if you feel like anything less.

About the Author: This is a guest post by Eliza Morgan who is a full time blogger.  She specializes in writing about business credit cards. You can reach her at: elizamorgan856 at gmail dot com.

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Do you dream about starting a business, but don’t know if it is the right time? Are you concerned that the economic recovery still has a long way to go, so now might not be the right moment? Are you letting fear stop you from following your dream of owning a business?

Starting a business is something that can be done, no matter the economic climate. You may have to adjust your plan, but if you are savvy enough, you can find the customers your new business needs.

You cannot wait for the perfect time, or you will always be making an excuse as to why now is not the right time. The fear will always be there, so embrace it instead of running from it. Harness your fear and direct it in a positive way to ensure you are making smart decisions and thinking before acting.

The Right Frame Of Mind

The one thing that you need to have before starting a new business is the right frame of mind – the right attitude. If you are not mentally in the game, then don’t even bother. Conceptualizing, forming, growing, and running, a business takes a lot of time and energy, and creates a lot of stress and uncertainty. If your head is not in the game, then your business is doomed to fail from the start.

A great mental attitude can trump your lack of business knowledge. You can always gain knowledge, or hire someone smarter than you, but without passion, you lack the drive to be able to have a successful business. Having the right mindset is something you need before becoming an entrepreneur. You have to believe in yourself, and you have to be willing to sacrifice a lot while you build your company.

The Right Idea

However, the right frame of mind will only get you so far. You also need to have a great concept for a business. This doesn’t mean that your idea for the perfect business has to be something that nobody has heard of before – it just needs to be unique.

While there are probably plenty of unique businesses that have yet to be thought of, you don’t have to be a pioneer in order to be a successful business owner. What you do need is to bring something original to the table. If you are going to compete with existing companies in the marketplace, you have to have your own unique selling point. What makes you different from the other guys? Why would consumers (or businesses) choose you over your competition?

Take The Bull By The Horns

You can analyze yourself to death and never take the first step to realizing your dream of being an entrepreneur. While it would be foolish to throw caution to the wind, quit your day job and devote all of your energy to starting a business, there is nothing to say that you can’t commit to moving forward as quickly as you can, under your current circumstances.

Figure out what type of business you want to start, and assuming it isn’t a totally unique concept that the world has never seen, figure out how your business is going to be able to set itself apart from the competition. Commit to yourself that you are going to actually become a business owner sometime in the foreseeable future.

Don’t procrastinate any longer thinking now isn’t the right time to move forward. You have the power to convince yourself the time is never right. You also have the power to take control and move past your fears. Working for yourself is like nothing else. Why would you want to delay this opportunity any longer?

About the Author: Marshall Davis runs Business Service Reviews, a website where small business owners and budding entrepreneurs can learn about products and services to help them become more successful. Read his blog and learn more about becoming a successful entrepreneur.

Photo Credit: milos milosevic

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We are a culture that celebrates leadership. We glamorize generals who lead men into battle, and admire the entrepreneurs that built Silicon Valley. There is no question that being the one in command has its appeal as well as its perks.

On the other hand, people in leadership positions also have to make tough decisions, and at times are not looked upon fondly by the masses. In the corporate world the boss is a pejorative term, the very word associated with a draconian taskmaster who will flog an employee for every second they are late returning from break.

So the question is, does being the boss make you a better or worse person? Does the anchor of responsibility make you more mature or more of a jerk? The following are 5 reasons why being your own boss ultimately makes you a better person.

1. Leadership

As your own boss you are responsible for the direction and hierarchy your business assumes, including everything from the marketing strategy to the delegation of duties. You will have to make tough decisions and have the conviction to exercise them.

2. Expanding Your Creativity

As a company drone you are nothing more than a tool, following the orders given to you. The brain goes on auto-pilot the second you clock in. As your own boss, you must think creatively to expand your business and stay ahead of the competition. You must fight ways to be more efficient and

3. Dealing With Pressure

Owning your own business means dealing with the pressure of success and failure. A salaried employee whose income is not tied to the bottom line has little incentive to care. At times it may not feel as if it makes a difference if he or she shows up at all. As the proprietor, however, your livelihood depends on the growth of your business. Exposing yourself to the crucible of business makes you more equipped to handle the pressures of everyday life.

4. Learning to Motivate

In addition to learning how to handle pressure, making your business thrive also represents a challenge. Regardless of whether it’s sports, education, or business, setting a lofty goal and attaining it provides a valuable experience and helps you grow as a human being. Furthermore, as your own boss, not only do you learn how to succeed, you learn how to stay on top. Finding ways to stay ambitious and motivated are key components in keeping your business growing. Finding the energy to keep customers and employees motivated will help you grow to become a more pleasant and affable person.

5. Empathy

Being your own boss means you are responsible for the satisfaction and safety of both your customers and your employees. You must handle disputes amicably and foster strong relationships with your client base. As an employee, the courtesies you extend to customers are perfunctory, a rote phrase spoken to appease a manager with no authentic enthusiasm. For a boss, however, these customers are the arteries of their business, and learning what they think is critical to improving the product or service they provide. Being a boss makes you a better listener, a more gregarious person, and teaches you the empathy required to be an effective manager of people.

In the end, the qualities that make a good boss are the same traits we admire in all human beings. As your own boss, you will find that as your business grows, so does your character.

About the Author: This article was written by Joan Evans of PublicLiabilityInsurance.org, Joans writes on a wide range of business topics including employers liability insurance.

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As people have lost their jobs and struggled to find employment, many of the more spirited professionals have struck out on their own to create the jobs that they cannot seem to find. This is a smart move, but it also prompts one very important question: are these new businesses fulfilling a need? Matt asked this question in a previous post, and it got me thinking about all of the startups that have unfortunately shut down in the last few years. The question seems to be an obvious one that business owners would ask themselves, but after reading a recent article about the restaurant industry it is painfully clear that it does not cross the mind of many entrepreneurs.

Filling a Need

The fact is that people who take the initiative to create their own jobs are optimistic, proactive, and on the right track. Unfortunately, they often forget the common sense side of business while developing their big ideas. Every business has to fulfill a need, otherwise there will be no clients paying for your products or services! Whether the need is for a reliable plumbing company, an effective publicist, or a unique place to dine, the need must be there in order for your startup to succeed.

Step 1 – Market Research

This brings us to the first step in the development of any new business venture – market research. Startups need to know that they have something exciting and new to offer the market, otherwise they will be seen as just another office selling the same things as their competitors.

In the restaurant business, especially, new organizations must offer something fresh to patrons. If you already have 3 very successful bar and grill establishments in town, why open another? Residents will be more excited about a different take on the traditional bar and grill fare, so coming up with a creative new spin on an already established product will fulfill that need.

Also, when looking to start a new business, future owners should see if there are any gaping holes in the market. For example, if an area offers no Italian restaurants to diners, this would potentially be a lucrative venture to jump on.

Step 2 – What Can You Offer?

This brings us to a second major point that many startups fail to address – what can you offer the market? Sometimes an entrepreneur may have a great idea for a new business, but have to tweak the original plan to meet the needs that the local market has set.

For example, a restaurateur may want to open a new barbeque restaurant, but there are already 4 of those in town. So, instead, he or she may opt to open an American dining or seafood-based establishment. The entrepreneur is still utilizing the same skills and fulfilling the same kind of need, but has adjusted the specifics of the venture to offer a fresh service to the market.

The Two Basic Questions

These two questions, are you fulfilling a need and what can you offer the market, are what will set you and your startup apart. People are always on the lookout for new businesses that will provide something new and exciting, but they are rarely ever pleasantly surprised by a completely unique business model, product, or service.

To keep your startup on a roll, and to prevent the ever-looming shut down that plagues many new, small businesses, you must consider how your company will answer to the needs of consumers.

The Entrepreneurial Spirit

The recession has certainly brought a great deal of grief and heartache to the individuals who have lost their jobs, homes, and savings due to unemployment, but it has also redefined the entrepreneurial spirit of this generation and brought forth a slew of small businesses that have addressed a variety of market needs. If you keep these two ever-important questions in mind as you develop your company, you will be able to look back on the early days of your brand, when you were just a small business, and be glad that you took a practical approach.

About the Author: Terry Crenshaw covers economic trends in the United States and writes for www.peterorszagsite.com. Terry is especially interested in tracking the ideas of Peter Orszag and other economic experts as the economy attempts to recover from the recent recession.

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Do you have what it takes to be a good entrepreneur? Is it something that you could learn or rather something that is innate?

Personally I think it is both. There are many people nowadays that like to call themselves entrepreneurs today but are they really one. Indeed there are various characteristics that define an entrepreneur and in this article we will have a look at 5 qualities of a good entrepreneur. Note that this is not given into any particular order.

Perseverance

Whatever business you might be setting up, there are times where you will face problems. It is moment like this that you will need to hold on and persevere. You will have to believe in yourself and your products and services in order to succeed.

Interpersonal Skills

Business is all about dealing with people and you will need to be good at communicating if you want to succeed. Whether it is with your customers, suppliers or employees it is important that you learn how to communicate in an effective way to make sure that your business is run as smoothly as possible.

Willingness to Take Calculated Risks

A good entrepreneur should be ready to take calculated risk if he or she wants to succeed. Sometimes in business you will need to trust your gut feelings and walk on water. However you will need to distinguish between foolishness and calculated risk. Make sure that you do your homework and ensure that your business plan is feasible before getting started. This may prevent you from having some unpleasant surprise in the future.

Motivation

It is important that an entrepreneur remain motivated at all time. This is indeed more important when you are pioneering a business or activity as you will have no one else with you. You should not let yourself down and make sure that you keep going forward.

Time Management

This is another important quality that you will need to have as a good entrepreneur. Time management will allow you to organize yourself and make sure that you get all your work done effectively. It is very easy to give in to procrastination when working alone and you will have to find ways to deal with this. May be you can create a to-do list to help you manage your workload.

These are 5 qualities that should be present in any good entrepreneur who want to succeed. There are plenty more qualities but this might be for another article.
Now it is you to do the talking? What other qualities would you think might be important for a successful entrepreneur?

About the Author: Charles Borromeo is the writer behind Justice-Explained.com, a site devoted to explain legal questions in layman’s terms. He is also a passionate blogger during his free time.

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Exports as a means of company growth has gotten a lot of attention in the news recently with Obama’s National Export Initiative, one in which the President plans to double exports over the next five years to support two million jobs in America.

In the following Q&A, Damon Schechter, founder and CEO of Shipwire e-commerce product fulfillment service, addresses the “why” and “how” small businesses can begin selling their products around the world. 

Q: I understand that your company has seen a surge in exports by small businesses. Can you please tell us a little more about that including ways in which smaller business can grow their businesses by “going global”? 

According to our research, sales to foreign buyers – as a percentage of overall sales – by small to medium sized e-commerce merchants has grown from virtually 0 in 2007, to 9% in 2008, to 20% in 2009. And, we’re seeing even greater number of small businesses export in 2010. Though shipments have been spread to destinations around the world, the primary ones are to major markets in Canada and the U.K. We’re also beginning to see a lot of demand for American exports in Asia Pac, and Australia, specifically. 

Q: We always hear about globalization; but, isn’t that just impacting big companies?
 
Not anymore! For years, big companies have seen large markets overseas and had the supply chain and sales experience to enter these growth markets.  However, small businesses now are seeing global opportunities that they were either a) unaware of or b) were simply unprepared to take advantage of.   Today, if a company has a fast selling product that they think they can sell in another country the only thing that stops them from entering that market is the degree of their desire.  These newly global businesses can tap into known marketplaces or a trusted distributor, get their local advertising on demand from Google and store and ship product in the local market with a third party logistics company. 
 
Q: What does “globalization” really mean when it comes to e-commerce?
 
When it comes to selling over the internet there is a “push and a pull” effect.  The pull effect is customer demand.  So, if you have a globally attractive product, overseas buyers may pull you into an overseas market with demand.  This is especially true with the viral “border-less” nature of some marketing campaigns.  The push effect is when a business looks at an overseas market and sees future profits.  Today there is nothing to stop them from entering into that market and competing.  Because of the “borderless” nature of online selling, smaller e-commerce companies are going to be the vanguard for SMB globalization.
 
Q: Why is Globalization now starting to accelerate for smaller businesses?

 
It seems that the tools are now in place to allow businesses of all sizes to have a global supply chain.  It’s no longer true that you need a multi-million dollar product line or budget to benefit from overseas sourcing and selling.  There are a suite of on-demand tools for managing everything from advertising to shipping.
 
Q: What is the biggest obstacle facing the overseas seller?

 
Successful overseas sellers are the ones who can find buyers at the least cost and get the product into those buyers’ hands in the shortest amount of time and with the least hassles.   There are only a few ways to get the product into the buyers’ hands.  International shipping by some method has always been the default; however, the distance makes it expensive and it can take days or weeks to get the product to the buyer which isn’t good for repeat business.  If the buyer needs to return the product for whatever reason, international shipping back is a poor option for buyer and seller.  Small businesses need to take a page from the playbook of the largest sellers and store product in the local market in a local warehouse.  Shipping from a local warehouse means that there is no international shipping cost, the product gets to the buyer in a reasonable amount of time and the product can be returned to a local warehouse.  Ideally, a small seller will have instant access to a global warehouse network service so it can cut its shipping costs and delivery time-lines.  Such services are modeled on the success based, pay only for what you use offerings pioneered to SMBs by Google and PayPal.
 
Q: What are the things small businesses need to consider before moving products overseas for sale?
 
Assuming there is some market demand for the product and/or the business has a marketing plan, typically it’s best to focus on one’s top selling products.  For most businesses, 20% of the product catalog will generate 80% of the sales.  Focusing on just the best sellers will help limit the problem set. Businesses should also think about the customs and duties implications of bulk shipping into a local market.  Borders are a reality in the physical world even when online software and the Internet has made borders less of a concern for closing business online.  Sellers that do their homework can be assured that their products won’t get held up in customs.  

Damon Schechter is the founder and CEO or Shipwire, a provider of outsourced e-commerce product fulfillment with warehouses in the United States, Canada and Europe. Outsourcing storage and shipping hassles allows businesses to focus on global expansion and keeps costs down.   Reach shipwire at www.shipwire.com

Photo Credit: fdecomite

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My joy was short lived. After waiting about a month for a client to pay me on a (5 day net) creative project, the check came in the mail. I did the “happy dance” ‘til I was dizzy!

Getting paid would allow me to catch up on some of my obligations as a small business owner myself, already struggling in a struggling economy.

I began to figure out my bills and hope for a few left over dollars to do a

mini-splurge at the local thrift store.

Before the ink could dry on the check, the client contacted me. She asked me not to cash it, as the funds would not “officially” be available for another week due to an unanticipated emergency. Needless to say, I was shocked and devastated.

The check was already late, and based upon my income projections, I promised to pay several of my vendors. Her not honoring her word prevented me from honoring mine. And unfortunately, it wasn’t the first time.

Not long before that, a publisher with whom I had enjoyed a long-term business relationship, came down with a bad bout of the flu, and extended his apologies for not being able to issue checks because he was bed-ridden for two weeks.

Life happens. That goes without saying. But just because you’re a “small” business owner doesn’t mean you should be “small time” in the way you conduct your business or handle crisis management. In fact, you should be more prepared for mishaps due to fewer resources. The buck stops with you!

Not providing for “the worst case scenario” can cause irreparable damage and affect your ability to compete with larger businesses; ultimately costing you in terms of customer loyalty, client confidence, and bottom line objectives.

After all, folks figure if you can’t handle your business challenges, why should they trust you with theirs?

Whether you manage a staff of one or 91, here are a few business practices you should employ to cover your assets and protect your bottom line.

EXPECT THE BEST BUT PREPARE FOR THE WORST

Do you have a back up if your files are destroyed on your hard drive? Do you have systems and people in place if you become ill or need to take a vacation? Are your records well kept if someone needs to temporarily assume your duties, or establish a paper trail of your activities? Could your business recover if you lost a key client? These are all points to consider in your strategic planning. Always have a plan B.

HAVE AN EMERGENCY FUND

“Save for a rainy day” has become more than a cliché; in today’s economic climate it’s as crucial as a commandment! Experts differ in the exact amount an “emergency fund” constitutes—some say the equivalent of three months salary, others advise six months. Apply it to your individual lifestyle and circumstances, then act accordingly. Today.

EMPOWER YOUR STAFF

Hire competent people and give them the training and resources to act independently in resolving small customer issues. Assigning them responsibility and accountability helps them to develop personally and professionally, and improves the efficiency of your organization. Understaffed? Hire an intern.

ESTABLISH SUPPORTIVE ALLIANCES

Don’t perceive all your peers as a competitive threat. Seek out owners with whom you have a compatible work ethic and similar visions and values, and find ways to enhance each other. This can be accomplished through online groups or networking associations dedicated to your particular field or trade.

HONOR YOUR WORD

Many small business owners go to great lengths to overcome perception issues and convey a professional image. They invest in elaborate web sites, purchase fancy business cards, and go the whole nine yards to recruit clients and impress associates. But all these measures can be in vain if they establish a reputation of repeatedly not honoring their word– whether it’s to a client, a vendor, a business partner, or employee. Never over promise and under deliver. Don’t say one thing and do another. Always strive to keep your end of the bargain because ultimately your livelihood affects others.

Follow these five tips and you’ll successfully navigate the many “obstacle courses” that come with owning a small business, and you’ll breathe easier too.

About the Author: Jennifer Brown Banks is a veteran freelance writer who teaches at Coffeehouseforwriters.com and blogs at Bloggingpro.com

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Photo Credit: eflon