'About Entrepreneurs' resources (Part 2)

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Running a Business
Entrepreneurial Lifestyle
Entrepreneurs in Action - Case Studies, Success Stories and
General Resources for Entrepreneurs
Becoming an Entrepreneur
Entrepreneurs Glossary
Business Legal Organizational Structures

Doing Business With Friends, from Small Business Success Newsletter

Here's Stu's problem again:

Rob,

Many thanks for the interesting articles and tips, I do however have a problem which I am hoping you will have an answer for.

I am a one man business in the labour consulting field, I have a small regular clientele who are more personnel friends. However every month I struggle to get my payments from them. I obviously do not want to get too heavy handed due to the risk of losing their custom but on the other side the lack of payment or the late payments is creating a cash flow problem for me. How do I get through this one?

Your suggestions or advice would be greatly appreciated.

Kindest Regards

Stu

Stu stu@rimala.co.za

Stu,

You are dealing with an issue facing many start up businesses – your first customers are sometimes friends or family and therein lines a number of problems:

You can feel that you should be eternally grateful for they help and support in assisting your start up

You can feel obliged to stretch that gratefulness to the point where it hurts your business

As you are finding out the time has to come when you must break away from the original terms of business and put dealings on a more firmer, business-like arrangement. The trick of course is how to do this without thinking you may lose not only their business but their friendship.

So the first step is to acknowledge the fear that you have in the back of your mind about the potential loss of business. Having acknowledged it, accept it as a possibility – welcome to the real world! During your business life you are going to lose clients along the way – you may as well test your reaction now instead of later!

This acceptance of the possible loss of business is an important and essential first step. Without this what you have to do next will never happen and the problem will remain.

Now to tackle the problem. You have to be open, honest and transparent with your friends; this is the crux of what follows next.

Step One: Acknowledge how their support has been invaluable in getting you started.

‘John, I’ve got something important I need to discuss with you. Before I start I want to say how instrumental your support has been in helping me get my business off the ground …’

Step Two: Outline the present situation.

‘As you know as we have been friends we have both been flexible where payment terms on invoices are concerned. I’ve been pleased to do this because of your support.’

Step Three: Outline the problem the present situation is causing.

‘As the business is growing my cash demands are becoming bigger and so cash flow is getting harder to manage. The flexibility around payment times is now getting more difficult to control.’

Step Four: Outline your idea scenario.

‘Now that the business has become more established we need to put some discipline around settlement terms and so ideally I like to see any invoices settled as promptly as possible.’

Step Five: Outline the action and final outcome which you feel is fair.

‘Can I suggest that from next month we agree to settle within say 10 days of invoice of date and then 5 days the month after? This will give you some time to make any adjustments on your side. How does that sound?’

Can you see the progression here? We have outlined the present situation; outlined the impact it’s having on you and the business; come up with your ideal outcome; and finally come down from that to suggest a phased approach over a few months.

In tackling problems many people go straight to Step Five. The build up and setting the scene is vital. Once the problem is understood by the other party the solution is easier to arrive at. It may be a straight ‘yes’ or it will be a great place at which to negotiate a way forward.

If your friend walks away, well do you really want to be doing business with that type of person anyway? However, you may be surprised to find them agreeing immediately. They may not taking advantage; it’s just you’ve never pushed and so they become unknowingly relaxed. You may get a ‘Stu, no problem. Why didn’t you tell me before?’

Who knows, in reality this problem may not be a problem at all. You may be making it into a bigger issue than it actually is. Being up front, honest and transparent will bring this to a head.

Below this problem though is a deeper problem, which I’m sure you are aware of. Your fear of losing the business is because you have no one else to fall back on. Your customer base is too narrow. This has to be a wake up call to get out there and canvas new business… but that’s a different question again!

Hope this helps!

People to People Business, Small Business Success

If you've heard it once, you've heard it a thousand times... businesses don't speak to other businesses or to consumers, it's people in businesses who speak to other people in other businesses or, directly to customers!

Yes, it's about people connecting with other people. But it seems as if business owners love to get clobbered over the head with the same message hundreds of times over... and still refuse to 'GET IT'. In this week's article learn how you can 'get it'!

Read on at www.smallbusinesssuccess.biz/articleoftheweek.htm

Time To Hire Talent For Small Business, from About.com

Hiring for a small business is a challenge in the best and worst of times. The 1990's were a period of skilled labor shortages for companies of all sizes. Top performing employees were often recruited on a regular basis and given huge signing bonuses. The larger businesses in each sector dominated the talent pool game.

Please continue here.

Business Plan FAQ, from About.com

Please read here for the Business Plan FAQ.

Small Business Best Practice Benchmarking, from About.com

"Borrowing" ideas and best practices can be wrought with danger. Learn what big business already knows about benchmarking best practices and how to effectively borrow or steal ideas, tactics, and strategies.

Please continue here.

Inside the Mind of Million Dollar Business Ideas, from About.com

Million dollar business ideas have no boundaries, age limits, race restrictions, time lines, or economic class. They can occur when you least expect them. For psychologist Roger Adams, it occurred during a midlife crisis and divorce.

Please continue here.

7 Principles of Small Innovations, from About.com

We live in a fast-paced, instant gratification global society that adores big. The next big thing. The big innovation. The approach of big innovation isn't ideal for small business. Small innovations are the best growth strategy for your business. Discover the 7 principles of small innovations.

Please continue here.

'Small Business Info' resources

Essentials
Starting a Small Business 101
94 Best Business Opportunities
Business Plan FAQ
Reader's All-Time Choice of Top 10
Small Business Information Glossary

Topics
Business Plan Writing
Employee Benefits
Financing and Loans
Government
Insurance
Legal Issues
Management
Marketing and Sales
Office Design & Leasing
Online Business
Starting A Business
Selling Your Business
Tax & Accounting

Throw Out the Business Plan and Follow Your Dream, from About.com

There is a huge gap between a "dream" and a "business plan". No one can predict the future, and a business plan forces us to do that. So instead of really trying to see what works, we begin to make things up.

What you want to do is begin with your passion - really defining what you want to create.

Then create an action plan that works in your life to discover what will work in your business.

Romanus Wolter, "The Kick Start Guy" and author of Kick Start Your Dream Business, explains in this interview.

Please continue here.

What's Your Dream Business?, from About.com

Every entrepreneur has a "dream business", and it may not be the one you're currently running.

We may not be following that dream for a variety of reasons, but usually it boils down to two things: lack of capital and fear of failure.

But if you absolutely knew that you could not fail at it, and you had enough capital, what would be your dream business to start and own?

Please continue here.

Choosing a Business to Start, from About.com

I'm all for pursuing your passion, following your dream, and doing what you love. On the other hand, millions have gone broke blindly following the mantra, "Do what you love and the money will follow."

It's not that there's anything wrong with the basic principle, but when it's boiled down to a mere slogan, it can be dangerous. But the traditional approach to entrepreneurship of identifying a need and creating a business to fill it may not be very personally fulfilling for you. Does it have to be an either/or decision? Are these two concepts completely mutually exclusive? I think not. I think there's an approach that combines the best of both.

Please continue here.

'About Entrepreneurs' resources (Part 1)

Business Ideas & Business Opportunities
Business Legal Organizational Structures
Starting a Business
Business Plans
Buying a Business
"How-To" Library

Acres of Diamonds, from Business Planning Made Easy

Acres of Diamonds is a small ebook written over 100 years ago, and helps to highlight how much wealth and opportunity surrounds us every day.

This short book explains the concepts of endless opportunity, and how this concept can be applied in practical, day-top-day living.

This book can help you think about different ways that you can conduct business, or inspire an idea about a new product or service that can be offered, either through your own business or a new business.

To download this ebook, click the URL below:
www.businessplanningmadeeasy.com/Ezines/Acres_of_Diamonds.pdf

Build The Entrepreneur in You

Dear Entrepreneur,

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The secret? A unique "discovery process" that will allow you to explore more business options -- and uncover choices that are in sync with your personal and income goals. The Entrepreneur's Source will give you a real business advantage... no matter how tough the market climate.

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www.TheESource.com