Archive for

How Effective is Personalized Business in the United States Culture?

Small businesses contribute the most in US economy, the highest growing economy of the world. The most amazing fact about the United States is that around 75% of the US population is employed in small business. The number becomes even higher at some point of the year. Small businesses are the backbone of US economy. If small businesses were not there, US economy would never have existed. US peoples believes in business and entrepreneurship. Because of low investment capital and limited resources small merchandise are flourishing.

The most important among these small merchandise are personalized businesses. Personalized merchandise is one of the most popular of all the businesses flourishing in the United States. More and more people are getting engaged in this type of business to make a living or to increase their regular monthly income.

What are the reasons behind the popularity of personalized merchandise in the United States?

No doubt personalized business like personalized office products, personalized services, personalized kids product and gift ideas are very popular in US. But what made it so popular? What are the reasons behind it? There are several reasons behind its popularity. Let’s discuss some of them.

1) Personalized business gives you the opportunity to be your own boss. You do not need to follow the instructions of others and to kill your instinct. With job and government services you have to do whatever you are told, whether it is right or wrong. In business you can take your own decisions.

2) Another advantage of personalized merchandise is that you can show your creativity and can contribute in the development of society. You can put what is there in your mind in your work. You can do wonders with your imagination and creativity, by putting your thoughts into your business.

3) Personalized kids products like music CD and DVDs, school bags, water bottles, clothes, shoes and watch, personalized business products like stationary items such as pen, pencil, furniture, etc. are very popular in the United States. It gives a personal touch to all the products and makes it exclusive. These exclusive products can melt anyone and business becomes easy. You can attract your clients by gifting personalized gifts to them.

4) Personalized merchandise has one more advantage that makes it popular among the citizens of the United States. US government charge lower taxes to small businesses. This gives the small businesses an opportunity to make a full time income with small businesses. Personalized business comes into the category of small business and thus lower taxes apply to them also.

5) With personalized trading, there is lower risk and lower investment. You do not need to hire more people to increase your business. This type of business replicates on its own. Everybody likes personalized products and gifts and their popularity among US citizens adds in the popularity of personalized business
.
6) Another advantage of personalized product is that there is no limit to the expansion of the business. Personalized business can cross the borders and can be sold in many different languages and therefore it opens many doors for business expansion.

Personalized business contributes majority in the economy of the United States. It is the most popular business in America. People love personalized gifts and business products that contributed in the popularity of personalized trading.

Do You Know Who Is Going to Buy Your Business?

If you know who is going to buy your business, you have already dealt with the significant core perception necessary for business strategic planning: that inevitably, voluntarily or involuntarily, you will transfer your business interest. The reality check for the owner-manager of a business is the perception of and planning for the inevitable transfer of the business interest. The owner and the business will separate, the principal unknown factor is when.

The estate planner waits for the client to say “When I die” instead of “If I die.” Similarly, business strategy cannot be effective if there is a denial about the inevitability of the transfer of the business. Once the inevitable transfer is acknowledged, even though the time may be impossible to know, the probable buyer and the terms of the transfer, may be envisioned. Business strategy should have a primary goal of formulating the transfer of the business to known and probable buyers for the highest possible price. This is the essence of being able to realize maximum value for the business interest of the owners of the business.

Buy means that in exchange for cash and other consideration, you transfer a business interest to a buyer. In finding a buyer, it is helpful to ask: “Do I know anyone who will give me cash for my business interest?” For most businesses, the logical purchaser is someone who knows the business and is capable of raising the cash to make the purchase. Very likely, this person is already a part of the business. Moreover, it will be easier to identify a buyer when the buyer is someone you know and someone who is familiar with the business. There is, however, a downside to selling to someone already involved in the business.

Someone in the business knows certain things that persons outside the business will pay to learn. Put another way, there are certain items of know-how or good will that an inside buyer will not pay for because the buyer already knows them. A person outside the business, a third-party buyer, will pay for this knowledge. Therefore, to maximize the price (the value received for the business) the sale should be to a third-party buyer.

Do you know third-party buyers? Probably not. If you do not know a third-party buyer, then find one. But this search will take time, and the planning for it should be part of the strategic plan. What do you do in the interim? If you die or become disabled in this interim time what happens to the value in your business? How will it pay out to your family? For the interim, the probable buyers will be the only ones known, the ones already involved in the business and who may already be owners. There should be an owner agreement in place to assure a value for each business interest. For foreseeable trigger events (for example, death, disability, termination of employment, or withdrawal) there should be an enforceable sale at an acceptable price to provide assurance of value to each owner.

To find the unknown third-party buyer, you need to role play. There are certain groups that usually contain buyers for a business: competitors, similar businesses in other markets seeking growth, and investors. Place yourself in their position, assume a requirement of rationality, and ask: “Would you buy the business interest?” If not, then ask: “Why not?” If the purchase of the business interest does not make sense, the first task is to meet the rationality test: the purchase of the business interest you have for sale must make sense. In making this determination you will be directed toward people who would have an interest. You need to interact with these potential purchasers to see if your role playing was accurate. Again, ask “Why not?” if there is no interest. This feedback is the most reliable feedback you will ever obtain about how well your business is managed.

Critical to your understanding of the potential third-party buyer is the requirement that the purchase be for a controlling, if not total, interest in the business. The owner agreement, in addition to establishing an assured insider sale for interests in the business, also needs to provide for a transfer of a controlling, if not a total interest, to a third-party buyer. Most of the time, for all owners, receiving the maximum value for their business interests will be in the best interest of all.

There is no better way to plan and manage your business than with the contemplated buyer looking over your shoulder. Accounting must be current. Human resources records up to date and in compliance. All regulatory requirements must be met. Taxes must be paid up to date. Use the same diligence checklist as a sophisticated buyer would use to check the status of the business.

When you approach planning and management with the perspective of a potential buyer, you will see the things that make the sale attractive, and you will be getting to know the buyer of your business. The business will become more valuable and will be sold for a higher price when the inevitable sale must take place. Rather than denying the inevitable will happen, when the sale happens, you will have provided for a transfer providing maximum value for your business interest. To obtain maximum value for your business interest, you need to know who is going to buy your business.

How to Start a Business Business Plan

Millions of people want to know what is the secret to making money. Most have come to the conclusion that it is to start a business. So how to start a business? The first thing you do to start is business is to create a business plan.

A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

A professional business plan consists of ten parts.

1. Executive Summary

The executive summary is often considered the most important section of a business plan. This section briefly tells your reader where your company is, where you want to take it, and why your business idea will be successful. If you are seeking financing, the executive summary is also your first opportunity to grab a potential investor’s interest.

2. Company Description

This section of your plan provides a high-level review of the different elements of your business. This is akin to an extended elevator pitch and can help readers and potential investors quickly understand the goal of your business and its unique proposition.

3. Market Analysis

The market analysis section of your plan should illustrate your industry and market knowledge as well as any of your research findings and conclusions. This section is usually presented after the company description.

4. Organization and Management

Organization and Management follows the Market Analysis. This section should include: your company’s organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors.

5. Service or Product Line

Once you’ve completed the Organizational and Management section of your plan, the next part of your plan is where you describe your service or product, emphasizing the benefits to potential and current customers. Focus on why your particular product will fill a need for your target customers.

6. Marketing and Sales

Once you’ve completed the Service or Product Line section of your plan, the next part of your plan should focus on your marketing and sales management strategy for your business.

7. Funding Request

If you are seeking funding for your business venture, use this section to outline your requirements.

8. Financial Projections

You should develop the Financial Projections section after you’ve analyzed the market and set clear objectives. That’s when you can allocate resources efficiently. The following is a list of the critical financial statements to include in your business plan packet.

9. Marketing and Sales

Once you’ve completed the Service or Product Line section of your plan, the next part of your business plan should focus on your marketing and sales management strategy for your business.

10. Appendix

The Appendix should be provided to readers on an as-needed basis. In other words, it should not be included with the main body of your business plan. Your plan is your communication tool; as such, it will be seen by a lot of people. Some of the information in the business section you will not want everyone to see, but specific individuals (such as creditors) may want access to this information to make lending decisions. Therefore, it is important to have the appendix within easy reach.

How to make your business plan stand out.

One of the first steps to business planning is determining your target market and why they would want to buy from you.

For example, is the market you serve the best one for your product or service? Are the benefits of dealing with your business clear and are they aligned with customer needs? If you’re unsure about the answers to any of these questions, take a step back and revisit the foundation of your business plan.

The following tips can help you clarify what your business has to offer, identify the right target market for it and build a niche for yourself.