#small business owner
How Hard Is It to Be a Small Business Owner?
There are a lot of misconceptions about being a small business owner. Like…
People often think that being a small business owner is easy because you get to be your own boss and set your own hours.
The Reality : Most small business owners work harder than they used to work when they had a corporate job.
People think that being a small business owner is glamorous – you get to make big decisions, make big money, and have a carefree lifestyle.
The Reality . Most small business owners have to wear many hats – sometimes getting to be a strategic visionary, but other times having to serve as a front-line customer service person, amateur psychologist, or office janitor.
But one of the biggest misconceptions about being a small business owner is that it’s too “hard.” I recently read an article on the Naked Capitalism blog entitled Tech Titans Promoting Basic Income Guarantee as a Way to Shrink Government, Kill Social Programs , which suggested that being an entrepreneur is a raw deal for most people:
But who wants to be an entrepreneur? Seriously. If you can hold a job with any stability and you don’t mind the work and get on with your boss and co-workers, it’s a vastly better deal than running your own show…being in business for yourself is almost a roll-back for the whole rationale of advanced economies: that of specialization. In a larger organization, the really good sales guy can mainly do sales, plus the unavoidable internal politics and bureaucratic tasks. The accountant can mainly do accounting, and so on.
By contrast, starting a business requires lots of skills, including selling, negotiating, having common sense about priorities, being able to size up potential backers and employees, being able to budget and manage funds. It’s a drag if you are really good at one particular thing to have to do all that other stuff, even if you are capable of it.
The payoff curve for entrepreneurship looks a lot like that of lines of employment that most parents would tell their kids to avoid: acting, playing sports, writing novels. Remember, 90% of all new businesses fail within three years. And like J.K. Rowling, A-list Hollywood stars, and football pros, the lure of the huge payoffs at the top end masks the steep falloff after that.
First of all, it’s not true that “90% of all new businesses fail within three years” – according to statistics from the Small Business Administration. about half of small businesses survive for five years or more, and one-third survive for 10 years or more. That’s a lot longer than I’ve lasted at any corporate job.
This article also makes it sound like entrepreneurship only offers rewards to the people at the top – as if most small business owners are a bunch of low-paid losers who would be better off trying to make it as actors in Hollywood. But even if we’re not going to be the next Bill Gates, most small business owners make a decent living – according to an American Express OPEN survey on the average entrepreneur’s salary. as of 2013, small business owners paid themselves an average annual salary of $68,000 – which is significantly more than the 2013 U.S. median household income of $52,250.
But more broadly, I disagree with the premise of the argument that it’s “too hard” to be a small business owner because you don’t get to specialize in what you do best.
It’s true that when you work for a big company, there are certain “economies of scale” that enable the big company to do things faster, cheaper, and perhaps better than a smaller company could. This is a basic principle of economics. However, for small business owners today, in the age of the Internet, there are so many great online small business tools and resources that can help you be more productive! You don’t have to be a big company to get big results in 2015 – you can use business-grade tools and resources to outsource, automate, and delegate various business tasks and daily operations, whether it’s basic back-office functions like simple accounting, invoicing, or payment processing, or more advanced skills like marketing, building customer relationships, and business inventory management .
As a small business owner today, you’re in business “for” yourself, but not “by” yourself. You can get help with almost any business topic imaginable online. You can connect with other entrepreneurs on LinkedIn for advice and ideas. You can get free business mentoring from SCORE, the Small Business Administration’s mentoring program. Even if you’re a solo entrepreneur or small business owner with only a few employees, there are many ways to make your business seem “bigger” without the bigger costs.
It’s simplistic (and wrong) to think that it’s too hard to be an entrepreneur, so no one should want to do it. I think it s actually the opposite – while it s never easy to run your own business – there are always financial risks and stresses, and lots of hard work – the Internet is making it easier than ever before to run a business. Not everyone has the right combination of ambition, hustle, vision, and sheer willpower that makes for a successful small business owner – but if you do, the rewards (and the daily sense of freedom) make it all worthwhile.
Ideally, as a small business owner, you should get to specialize more than ever before in doing what you do best every day. Use some of these cheap (or free) online business tools and mobile apps to outsource or automate the daily tasks that you don t like to do or aren t as good at. Being an entrepreneur helps you unleash your productive, creative potential like nothing else!
An individual or company who has some degree of involvement with another entity’s business dealings. The term ‘business partner’ can have a wide range of meanings, with one of the most frequent being a person who, along with another person, plays a significant role in owning, managing, or creating a company (two best friends who start a business together would consider themselves business partners). The term is also frequently used for two businesses that cooperate, to any degree, such as a computer manufacturer who works exclusively with another company who supplies them with parts.
- I thought they were a really great business partner and would be with us for a long time to come and would work greatly next to us.
- Since I am out of town this week I will call my business partner and let her know to be expecting a package to arrive at the bakery on Tuesday.
- Having someone else to start a business with me will mean that as a business partner that I will not need to make major decisions alone.
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What You Need to Know About Business Math
By Deb Russell. Mathematics Expert
What is Business Math?
Put quite simply, Business Math deals with Money! Who can t benefit from having a better understanding of money and finance? Everyone can! Business math is for the individual who wants to fully understand everything about personal finance and it s also for the business person who wants to learn about business finance. You simply can t take business without taking math, business and math go hand in hand.
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Some passionate business math enthusiasts will tell you, if you don t take any other math or if you don t like math, you still need business math and because it deals with money, you might just like it. Everyone needs to manage money on some level which is what makes business math important for everyone to take.
What Math Do I Need to Take Business Math?
If you decide that business math is for you or that you need business math for your career goal, you will benefit from having an understanding of the following topics along with the ability to solve word problems:
-Fractions, Decimals and Percents (use the four operations with fractions, convert between fractions and decimals and percents, calculate percents of a number with and without a calculator, convert and simplify fractions, reduce and convert fractions
-Whole Numbers (to a million, read, write, round and estimate numbers) and Integers (understand how to use the four operations with integers
-Basic Equations in Early Algebra (solve equations involving more than 1 unknown term, solve proportions, solve equations using more than one operation, use the problem solving plan
-Be Able to Use a Variety of Formulas
-Understand and Work with the Mean, Median and the Mode
-Read Charts and Graphs
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Business math is not just for the business owner or for personal finance. Business math is also important for the real estate profession, they need to know how to financially close a deal, and to understand mortgages, calculate commission rates, taxes and fees and use a variety of formulas effectively. Wealth managers and advisers, bankers, investment consultants, stock brokers, accountants and tax consultants all need to understand the financial transactions for investment purposes along with having an understanding about growth or loss over time. Business owners need to understand payroll applications and deductions. Then there s goods and services. Whether it s buying or selling, an understanding of discounts, markups, overhead, profits, revenues and costs are all an essential components of the math needed to manage inventory whether it be goods and services or property, which also needs to be financially managed.
Having a background in math opens opportunities and the job prospects are promising. Now is the time to embark on business math.
#business process outsourcing
business process outsourcing (BPO)
Business process outsourcing (BPO) is the contracting of a specific business task. such as payroll, human resources (HR) or accounting, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace.
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Two categories BPO is often divided into are back office outsourcing. which includes internal business functions such as billing or purchasing, and front office outsourcing, which includes customer-related services such as marketing or tech support.
Back office outsourcing offers organizations services to help manage tasks like data entry. data management. surveys, payment processing, quality assurance and accounting support. Back office tasks are integral to a company’s core business process and help keep business running smoothly.
Front office outsourcing services deal with customer interactions. Examples of front office tasks include phone conversations, email. fax and other forms of communication with customers. Front office outsourcing providers’ service lists include:
BPO that is contracted outside a company’s own country is sometimes called offshore outsourcing. BPO that is contracted to a company’s neighboring country is sometimes called nearshore outsourcing. and BPO that is contracted with the company’s own county is sometimes called onshore outsourcing .
Pros and cons of BPO
The top advantages of BPO are saved money and increased time to focus on the core business. Some other benefits include:
- Speed and efficiencies of outsourced business processes are enhanced
- Organizations using BPO get access to the latest technology
- Freedom and flexibility to choose the most relevant services for the company’s operations
- Quick and accurate reporting
- Save on resources related to staffing and training
Some disadvantages of outsourcing business processes include:
This was last updated in May 2016
Continue Reading About business process outsourcing (BPO)
data collection Data collection is a process for gathering information from different sources. In business, data collection helps organizations. See complete definition e-procurement (supplier exchange) E-procurement is the business-to-business purchase and sale of supplies and services over the Internet. See complete definition workflow Workflow is the series of activities that are necessary to complete a task. See complete definition
#business card size
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What is the Standard Business Card Size?
Imagine yourself at a job fair or conference with countless people handing you their business cards. At the end of the time you will have a tidy stack of cards that no matter how creative and attractive, just have to be tossed. But wait! Here’s one that sticks out and demands attention, it’s not the standard business card size but is a square business card.
Business cards designs in these modern times are abundant and unique, one of the surefire ways to attract even more attention with your business card is to choose a nonstandard business card size. Unusual business card sizes and shapes and the attention they attract is almost always worth the extra few dollars that you will spend on odd-shaped cards.
The standard business card size is 3.5 by 2 inches. That said there are a plethora of card shapes and sizes out there from the micro-business card at just 1 by 3 inches, to a square business card which adds height.
A huge part of landing any job or attracting the attention of the client is how you present yourself and don’t lie to yourself by thinking that your business card is not an integral part of that presentation. Though many people may not know it, they often have a window of about 10-15 seconds in which their card will either attract the eye of the person viewing it, or whether they will dismiss it and discount you as non-essential to their business. Though business card size isn’t entirely what will land you the job or account, it is something that will help extend that 10-15 seconds to the fullest and help give you the attention that you need to gain a callback or chance to prove that you are what the company needs.
Common Business Card Sizes
What is a business name?
A business name is a name or title under which a person or entity conducts a business.
Watch our YouTube video about What is a business name and how to apply for one.
When should I register a business name?
You will need to register a business name if you carry on business within Australia and are not trading under your own name.
Exceptions to this include:
- if you are operating as an individual and your operating name is the same as your first name and surname
- if you are in a partnership and your operating name is the same as all the partners’ names, or
- if you are an already registered Australian company and your operating name is the same as your company’s name.
The law does not allow any changes from the business holder’s name if you wish to rely on the above exemptions. For example, if your name is John Smith, and the name of your business is ‘John Smith Co’, you will need to register the business name ‘John Smith Co’.
If you are unsure about whether you need to register a business name, look through the examples in Regulatory Guide 235 .
What a business name registration does not provide
Registering a business name does not provide exclusive ownership of your business name. It also doesn’t prevent other people from being able to register and use similar names.
To gain exclusivity over a particular business name, you need to register it as a trade mark with IP Australia .
#what is business
Full Definition of business
2a. role. function how the human mind went about its business of learning — H. A. Overstreet b. an immediate task or objective. mission what is your business here c. a particular field of endeavor the best in the business
3a. a usually commercial or mercantile activity engaged in as a means of livelihood. trade. line in the restaurant business b. a commercial or sometimes an industrial enterprise; also. such enterprises the business district c. dealings or transactions especially of an economic nature. patronage took their business elsewhere
6. movement or action (as lighting a cigarette) by an actor intended especially to establish atmosphere. reveal character, or explain a situation —called also stage business
7a. personal concern none of your business b. right you have no business speaking to me that way
8a. serious activity requiring time and effort and usually the avoidance of distractions got down to business b. maximum effort
10. a bowel movement —used especially of pets
See business defined for English-language learners
See business defined for kids
Examples of business in a sentence
Forever Odd is a direct sequel to 2003’s Odd Thomas. the book in which we were introduced to the title character, a young man who can see the dead. They can’t talk to him, but they can nudge him in the direction they want, which is usually to help them tidy up some unfinished business from when they were alive. —Charles De Lint, Fantasy Science Fiction. May 2006
The Sun may never set, but air temperatures can plummet to -4 degrees Fahrenheit, and blinding snowstorms appear without warning. Sunbathing here can be risky business. even huddled in our parkas and boots, the members of our expedition live under the constant threat of frostbite and hypothermia. —Terrie M. Williams, Natural History. October 2003
Such high attrition means that most of the dot-coms here today will be gone tomorrow. The business environment is already harsh, and competition is growing. —Ann Thayer, Chemical Engineering News. 5 June 2000
Lancaster and Columbia have plenty of history apart from the Civil War, of course. For example, Lancaster was home to F.W. Woolworth’s first successful 5 10 and Milton S. Hershey’s first successful candy business. —Lancaster New Era. 2 July 1996
The store has lost a significant amount of business since the factory closed.
She works in the publishing business .
David has decided to go into business with his brother.
Their publishing company is the best in the business .
I have to go to New York City on business next week.
They advertised to increase business .
He has the skills necessary to run a business .
The town is trying to attract new businesses .
Do we have any other business we need to discuss?
No, I didn’t ask him what he wanted the car for. That’s his business .
What Is Business Networking, Anyway?
Founder and Chief Visionary Officer of BNI
Business networking is leveraging your business and personal connections to bring you a regular supply of new business. The concept sounds simple, doesn t it? Don t let that fool you, though. Because it involves relationship building, it can be a deceptively complex process.
Think about it. How many people do you know? How many of these people truly understand what you do? How many of these folks have directed prospects to you as referrals? And how many of those referrals have actually turned into business?
Business networking is much more than showing up at networking functions, shaking a
lot of hands and collecting a bunch of cards.
For example, imagine two people attending an event, sizing it up and drawing an imaginary line down the middle. They separate, each taking half the room. At the end of the event, they meet again to see who s collected the most business cards.
Have you met these people? Sure you have. We all have. What did they accomplish? They collected a lot of cards that will end up on a shelf, in a drawer, in the trash, or–worse yet–scanned into a computer so they can spam everyone they just met. Why? What does a business card represent? It s a piece of paper, with ink and images on it. No relationship has been formed. This networking strategy, by itself, isn t an effective use of time, money or energy.
Some people get frustrated with networking because they seem to be making as much progress as a rear-wheel-drive truck on an icy hill: one foot forward, 10 feet back–getting nowhere fast.
Networking for business growth must be strategic and focused. Not everyone you meet can help move your business forward–but everything you do can be driven by the intention to grow your business. You have total control over whom you meet, where you meet them and how you develop and leverage relationships for mutual benefit. You have total control over whether you enter into the unique 29 percent of the population that is separated by six degrees (read The 29% Solution to learn more), whether you stay there, or whether you never get there at all.
Networking your business means you have to be proactive. The core of networking is doing something specific each week that is focused on networking for business growth. Make a plan, focus and be consistent. When you understand exactly what business networking is and step up to the challenge, you ll find avenues of opportunity that you may have otherwise never discovered, and you will be making an invaluable investment in the steady growth of your business.
Copyright 2016 Entrepreneur Media, Inc. All rights reserved.
#business development manager
People reading the Business Development Manager Job Description might ask themselves, “What is business development, exactly?” Therefore, I’ll try to make it clear and simple.
Business development is a commonly-used term for businesses the provide services. Businesses that sell products often use the term, “sales.”
The Difference Between Business Development and Sales
When selling services, you are often selling the knowledge and capabilities of the people in your company. Therefore, a Business Developer doesn’t have a tangible product. Instead, he or she is tasked with selling people’s time or the result of people’s time. Very often, a client will not order the company’s service until they have meet with the people who will provide this service. As a result, the business developer must also present the internal team to the potential client (usually in the form of a meeting, proposal, and/or presentation).
The responsibilities of a business developer is often more broad than that of a salesperson. They could include activities such as strategic planning, or even training.
The business developer is often brought on to complement the seller-doer model, where the people who do the work are also tasked with brining in new clients. Business developers help seller-doers increase their sales by providing the strategic approach these people sometimes lack.
The Similarities Between Business Development and Sales
Both business developers and salespeople are expected to identify potential clients, approach them, and close deals. They are both responsible for meeting sales targets and growing the firm.
Here s How Business Coaching Can Benefit You and Your Business
In that respect, Business Coaching is very similar to sports coaching. In sports, a coach pushes an athlete to achieve optimum performance, provides support when they are exhausted and teaches the athlete to execute plays that their competition does not anticipate.
A sports coach will make you run more laps and make you work harder than you would on your own, even when you don t feel like it. A sports coach will tell it like it is and they will listen.
Fortunately, a Business Coach does many of the same things, but in a way that is focused on creating a successful business.
The role of a Business Coach is to coach business owners through guidance, support, accountability and encouragement.
Business coaching helps owners of small and medium sized businesses with their sales, marketing, management, team building and so much more. Most importantly, just like a sporting coach, your Business Coach will make you focus on the game.
Experience winning in your business by meeting with one of our ActionCOACH Business Coaches