Video Marketing Tips: Production Techniques for Planning a Shoot

Video marketers will find success in a well-planned production that boasts the same behind-the-scenes organization as a Hollywood production. The pre-production stage of your video is just as important as the filming stage. The more organized you are, the fewer blunders you will encounter on the days you shoot. A solid pre-production plan—crew requirements, location specifics and prop sources—will greatly influence the quality of your final product. Here are some essential pre-production filmmaking tips and techniques from which you can benefit:

Hire a Crew

Firstly, hire an assistant producer who will organize the small, but important, details that are necessary measures for a successful production. The assistant producer can help you assess which crew members are key — as an example, how many cameramen, gaffers and grips are necessary and whether or not it is imperative that you have a director. If you can utilize your assistant producer as a director, that would be ideal, as it would reduce labor costs. If the assistant producer cannot direct, find a cinematographer who has an intuitive eye and won’t need ample direction. Speak with your assistant producer about the vision you have for the film and iron out what the production schedule will look like. The assistant producer can create a succinct schedule and detail-oriented call sheets for the project, while you focus on the vision and creative content for the shoot.

Location Scouting

Decide what sort of site will work best for your script and visit the site at the time of day you will shoot your video. Assess the various factors that lie within the environment, like variance of light, volume of traffic noise, the volume and frequency of people who pass by and the amount of businesses and residential structures that are nearby. If there are nearby businesses or homes, make sure you have an official handout that will explain the site and times of your production so they can prepare. Assess how accommodating your site will be for your power supplies and where the nearest power source lies. Also evaluate the area for cell phone reception, parking, and the nearest electronic store in case you need an emergency cable or adapter. Make sure the location won’t require a permit or legal permission for a video shoot. Take photos of the location, with accompanying notes, and share them with your assistant producer, director and cinematographer.

Props

Enliven your set through the use of props. Arrange with your director or assistant producer what props you will need and how accessible they are. For a smaller budget production, utilize props that you already own. You can also find affordable props at a second hand store or may obtain permission to borrow merchandise from a local shop. If a retail vendor loans you their merchandise, make sure you have a contract that entails the ramifications if the item becomes damaged and an agreed lease period. If you require any food props, visit local businesses and see if they will donate their food for the project. Utilize the Internet for prop order, as it will be the most convenient method for your prop accrual. For example, if you must incorporate flowers, browse flower arrangements online and have them delivered. Etsy is another wonderful online resource, as you can communicate and work with talented artists for custom prop design.

Why Businesses are Turning to LinkedIn

With more than 300 million members, LinkedIn is the largest social media platform for career and business professionals. It’s known as a recruiting tool for employers, hiring managers and recruiters, but using LinkedIn provides many other benefits. It is a promotional platform for company products and services and corporate culture as well as a way to share valuable content and expand a company’s marketing reach. Your LinkedIn business profile is a valuable sales and marketing tool that is much more cost effective than many other forms of advertising. It’s free and available to millions of online viewers as well as search engines, groups, and forums.

Effective Recruiting Tool

A LinkedIn company page includes a careers section where you can post new job openings and promote your employment brand. Companies can use the LinkedIn careers section to point visitors to their website and other social media such as Facebook to further engage prospective candidates. LinkedIn’s paid feature, Recruiter, has a recommendation engine that matches posted job descriptions with qualified candidates and sends “People You May Want to Hire,” making sourcing candidates a more automated task.

Develop Business and Industry Credibility

As a social network, LinkedIn is a platform for sharing and communicating. With a business profile on LinkedIn, you have a way to share updates about what’s going on with your company, post a blog with relevant communications about your business and your industry and join discussions with other LinkedIn members and groups.

Expand Your Company’s Marketing Reach

You can attract new clients with your company page. The overview section lets you describe your company and your business, including your mission and vision, industry and company size. LinkedIn company pages have sections to promote products and services where you can provide detailed information about what your company does. LinkedIn has promotional tools to target your audience by industry, location and other distinguishing factors, as well as provide coupons, banners, discounts, videos and recommendations.

Build Your LinkedIn Business Profile

Don’t put basic information about your company in your LinkedIn business profile and then just let it sit there. Build your LinkedIn business profile so that it’s an engaging, compelling destination for candidates, prospective clients, vendors and other players in your industry. Customize your page to your business demographic and look at similar businesses for inspiration. Add your logo, make your page attractive with a cover photo and add regular updates so visitors get a good feel for the personality of your company.

Other Ways to Improve Your Business Profile

Improve your LinkedIn business profile to ensure visitors to your page are interested and always leave with information that is valuable and encourages them to come back or contact you. Use LinkedIn’s Developer’s page to create a Follow Us button for your website. Offer sponsored updates to reach more readers and gain more leads. Get people involved by asking questions and replying to them, or using them to create better content. Use your business page to highlight your products or services, especially when you have sales or special offers.

4 Tasks At-Home Business Owners Should Consider Outsourcing

If you run your small business out of your house, you are probably used to wearing many hats. To keep your home-based business afloat, you are a combination of chief executive officer, human resources manager, accountant and overall organization expert. You might also juggle other responsibilities related to your home office, like general cleaning and outdoor maintenance.

While you like being involved in every aspect of your home business, there are days when you struggle to get everything done. In addition, some tasks are not in your proverbial wheelhouse, which means you spend too much time trying to master these important jobs when you should be tackling other projects.

In cases like these, it definitely pays to outsource. In addition to being a cost-effective way to get everything done, it’s also a terrific way to ensure that you do not stretch yourself too thin and that all tasks are completed in a competent and timely manner. For example, check out the following four suggestions:

Accounting, Bookkeeping and Finances

As The Self Employed notes, accounting, bookkeeping and related tasks tend to be very detailed and time-consuming projects. As a work-at-home professional, you also have to keep very detailed records to complete your taxes. Rather than tearing your hair out trying to keep tabs on all of your finances, it makes sense to hire an accountant who can help with this important area of your business, and also complete your typically-complicated tax returns for you. In order to make sure your sensitive financial information is not being compromised, you may also wish to enlist the help of a monitoring service. Instead of spending tons of time watching your accounts looking for possible problems, a monitoring service constantly watches your business checking, savings and credit card accounts and will alert you if anything is amiss.

Website Design

In order to reach as many customers as possible, you should definitely have a snazzy-looking website. While your local bookstore probably has plenty of books that will teach the average Jo or Joe how to make a website in one weekend, in reality it’s a pretty challenging task. Consider hiring a website designer who can create an eye-catching site for your business, and also provide ongoing support services. This way, if a customer calls in and says she cannot place an order because the site has crashed, you don’t have to drop everything you are working on to fix it — the website designer will handle it.

Virtual Assistant

If you find that you are spending hours a day answering emails, preparing and sending out invoices and other necessary but time consuming tasks, it may be time to hire a virtual assistant. As Kashoo notes, virtual assistants can handle these necessary “time suck” tasks with ease, leaving you free to tackle work projects, client meetings and business proposals. Most virtual assistants are independent contractors who work from their homes for a variety of clients; if you wish to have in-person contact, you might find a local assistant who will come to your home office and tackle time consuming tasks in person.

Housekeeping and Yard Work

If you have clients coming to your home office on a regular basis, you want to be sure your home’s exterior is well-manicured and you don’t have stacks of dishes in the sink. In order to make sure your home is looking clean and clutter free — which will also help to keep you feeling calm and relaxed — consider hiring housekeeping and landscaping services. This will free up some much needed time in your schedule and help you to spend your downtime relaxing and not feeling the need to de-clutter the coffee table or mow the lawn.

What to Know If You’re Buying a Car for a Small Business

The United States Small Business Administration reports in 2014 that the United States economy generated the best year of job growth since 1999. More jobs means more cars on the road. The Wall Street Journal reported 2015 U.S. car sales set new records, overtaking sales last reached 15 years before, with factors such as lower gas prices, employment gains and low interest rates causing the boom. Those circumstances also make purchasing a vehicle for company use more feasible for a variety of small businesses.

For prospective and current small business owners who are considering purchasing a car for their business operations, many factors must be considered to ensure it’s a wise investment. From purchasing the vehicle to keeping track of expenses for taxes, keep these issues in mind as you buy a company car.

Look for Affordability to Reduce Expenses

As a small business grows, cutting down costs is essential to maintain momentum and scale. Thoroughly examine your small business budget to determine which car you can realistically afford and which one garners the biggest return on investment. Carefully consider how important the appearance of a vehicle is to get the job done, and think about vehicle wraps that convey branding to spruce up the look of an older vehicle.

For business owners who will often be driving clients around, save money on an attractive vehicle by perusing high-quality used car lots. Or, reach out to those in your network, and tell them you’re looking for a top-notch used car. People may not have even considered selling but may be willing to help out their contact for a good deal. Choose fuel-efficient over gas-guzzling vehicles for more business savings.

For businesses unable to cover the whole payment of a car, obtain a commercial vehicle loan from a qualified lender.

Keep Track of Possible Deductions

Get more bang for your company car buck by monitoring all expenses related to your business car, including the initial cost. The Internal Revenue Service has clear expectations about what can be deducted from taxes, including how to calculate mileage rates.

American Express Open Forum reminds business owners that leasing a car for your business may have more tax advantages than buying a car. Leasing or purchasing an electric vehicle also provides tax benefits that make these cars ideal options for small business owners.

Business owners who don’t use the standard mileage rate on a leased car are able to deduct the full amount of the monthly lease payment and other costs to operate the vehicle if they use the car solely for business. Green Car Reports states tax credits ranging from $2,500 to $7,500 will continue to be given to those who purchase an electric vehicle in 2016.

Protect Your Business

Insurance is an essential safeguard for both your company car and anyone who drives it. When searching for commercial vehicle insurance, consider these coverage options to protect your business and eliminate unexpected high costs caused by accidents:

  • Personal injury to you, your employed drivers or passengers, including medical expenses and lost wages
  • Property damage liability
  • Liability for bodily injury to others
  • Bodily injury coverage for injuries occurring outside your home state
  • Collision coverage for costs associated with an accident, regardless of who is at fault
  • Comprehensive coverage for damage other than collision
  • Towing and labor costs
  • Medical payments and coverage for hospitalization, treatment and funeral costs
  • Uninsured and underinsured motorist coverage
  • Liability for loading and unloading
  • Substitution transportation when a commercial vehicle is being repaired and a loaner from the repair shop.

Boost your peace of mind by protecting your company vehicle, those who drive it and your business.

How to Find the Best Employees

Employees are the lifeblood of a company, and a few bad hires can make or break a small business.  Hiring is a hard problem.  Even Google admits that they haven’t found a single best predictor for hiring the right person.   The normal approach companies take to deal with the problem is to try to attract the highest quality applicants in the first place so they have a higher probability of finding a good employee.  For this reason, companies have been showering their employees with perks: Cisco Systems offers free physical therapy and acupuncture, Southwest Airlines provides free flights for all employees and their families, and Yahoo gives discounts to ski resorts and amusement parks for their employees.

But what makes hiring such a difficult problem in the first place?  Neither parties on either side of the interview table have perfect, or even good information!  Hiring managers find it difficult to isolate qualities that tell them a candidate would be a great employee.  Applicants find it difficult to know whether or not they would be a good fit at and enjoy working for the company they’re applying to.  As Paul Oyer and Scott Schaefer put it in “Personnel Economics,” “the fundamental economic problem in hiring is one of matching with costly search and bilateral asymmetric information.”  Basically, the process is expensive and uncertain.

The goal for hiring becomes where can you find good employees as well as how to identify metrics that accurately predict the success of an employee.

Using Personal Networks

Networking, especially for startups and small companies, is often the most effective way to find qualified candidates for open job positions.  Networking presupposes a familiarity with the candidate in question, giving the interviewer more insight on them.  Implementing an employee referral program, where employees are rewarded for bringing successful job candidates to the company, is a fantastic way to improve the quality of your hiring practices.  Studies have shown that referred candidates outperform normal candidates at every stage of the hiring process and experience better cultural fits at companies once hired, setting the stage for future success at the company.  In fact, referrals now result in more than a quarter of all hires at large companies, a startling number when you consider that referrals compose only 6% of nationwide job applicants, according to the Federal Reserve Bank of New York and MIT

Turning to Online Resources

Once a company’s personal networks have been combed through for applicants, it may be necessary to find other sources of applicants.  One of the most common solutions is to turn to a job board, such as HotJobs.com or Monster.com, to expand your company’s outreach.  Job boards can advertise your company to a lot of different candidates at once.  More sophisticated ones help you implement screening questions that will automatically filter unqualified candidates from your posting.  There is also less of a chance for discrimination when compared to networking; job boards are available worldwide 24 hours a day whereas personal networks have a tendency to attract similarly thinking people to certain companies and reduce diversity.  However, job boards flood a company with potential candidates, and if you don’t have a recruitment department or enough time and resources to evaluate all the candidates the process quickly becomes unmanageable.

Is this a “job”?

Finally, think critically about the job position you are looking to fill.  Is this an integral part of the companies mission?  Would this position fit well into the company’s structure and culture?  Building a department or new team can be expensive and difficult.  Before you choose to hire an employee, determine whether or not it may be better to outsource the work.  Lots of roles can be easily outsourced: marketing, manufacturing, digital marketing, advertising, and more.  Although there is risk associated with the lack of control, outsourcing can be a quick and cheap option for accomplishing a company’s tasks.  

Who is a good candidate?

Although it’s difficult to isolate specific qualities that indicate who is and is not qualified, remember that good employees exhibit several key traits.  The first is a strong work ethic.  You want employees that take pride in their work and perform at a high level, putting forth their best effort.  Also look for a positive attitude and exceptional communication skills.  Work is a collaborative environment where all employees work together to serve their market.  Employees that can interact easily and positively magnify their efficiency and create a more satisfying work environment.  Additionally, previous experience and a demonstrated expertise in the skillset you need is often the most valuable characteristic of a qualified candidate.  Experience is very valuable as it saves your company money during training and increases the value a candidate can bring to their department.  Finally, loyal and reliable candidates often become the best employees.  They are consistent, stable, and show an interest in developing a long-term career with your company.

Hiring practices are often the most important processes at a company.  Who you hire affects your company culture and the productivity of your departments.   It sets the future course of the business and can often be the difference between success and failure.  For this reason its important to have a robust process in place that effectively screens candidates and makes sure you have the right people walking in the door.

The Entrepreneur Authority is a group of franchise consultants dedicated to helping you own and operate your own franchise.  There are a lot of perks that come from becoming an entrepreneur and engaging in the franchise business model.  If you would like to explore opportunities in franchising and know more about the possibilities, contact the Entrepreneur Authority today for a no-cost, no-obligation, no-pressure consultation or call 866.246.2884 to speak with one of our FRANtastic consultants.  You can also attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Just click on the link to register!

History of Franchising to Now (Infographic)

A History of Franchises to Now (Infographic)

The franchising industry is currently in a good state.  Growth in the industry continues to outperform the larger economy and there are 750,000+ franchised businesses in the U.S., cumulatively generating $1 trillion in sales a year.  Franchises are big contributors to economic growth in the country, begging the question, where did franchises come from? 

European Origin

It turns out the roots of franchising lie in several different times and locations, the first being in feudal France and England.  In fact, the word “franchise” comes from the Anglo-French “franchir,” meaning to overcome or breakthrough an obstacle.  In feudal Europe, lords would grant peasants rights to use parts of their land in return for fees.  Common uses for the land would be running a marketplace or operating wells for the larger village.

Later in England, the franchising model arose again to meet struggles in the public house industry (e.g. pubs, bars, taverns).  It was often difficult to start a public house due to the high capital costs required and a lack of access to financing.  These problems eventually started affected brewers’ business in the country as their market for alcohol became unstable due to these persistent distribution issues.  Brewers responded to this market change by offering public house owners financial support in return for an exclusivity agreement over the beverages sold in the establishment.  Thus, publicans could open businesses more easily and brewers had consistent demand for their products.

Franchising Comes to the United States

Isaac Singer is the man credited with inventing the first modern franchise.  Singer was a sewing machine manufacturer with a popular and effective product, but insufficient cash flow to expand his manufacturing efforts.  In order to grow his company, I. M. Singer & Co, Singer began to solicit local merchants and salesman to distribute his product.  By training them to service and repair his sewing machines, as well as encourage them to become regional salesman for the product, Singer engaged in one of the first forms of mass marketing.

Singer’s next innovation was to develop a contract outlining compensation and duties for all parties involved.  The standardized nature of these contracts allowed him to recruit franchisees very quickly and predictably, and acted as one of the first franchise agreements.  By 1860, Singer’s company was the largest manufacturer of sewing machines in the world.  This was remarkable in the post-Civil War Era; especially considering the company was founded in 1951.

The Development of Modern Franchising

Franchising grew rapidly in the 1950s and 1960s as the Greatest Generation recovered from World War II and the Baby Boomers began increasing demand for all sorts of services and products.  Soda manufactures like Coca-Cola and Pepsi had primitive franchise systems in place at the time, distributing their soda syrup to local franchises that would then carbonate, bottle, and sell them to their local communities.  However, it was Ray Kroc, the founder of McDonald’s, who would spark the rapid proliferation of the franchise business model.

Starting off as a milkshake mixer salesman, Kroc discovered that one restaurant he frequented was buying a large number of his high-efficiency mixers.  The owners, called the McDonald brothers, had developed a fast food delivery system providing customers with quick and consistent meals.   Seeing its potential as a larger business model, he quickly became their licensing agent and began to recruit franchisees, eventually purchasing the company in 1961.  McDonald’s went on to open more than 1,000 units in just 10 years.  Following his success, brands such as Kentucky Fried Chicken, Midas Muffler, Holiday Inn, and more refocused their efforts towards franchising.

Franchising Today

Franchising remains on the healthiest industries in the United States, continually showing strong growth and high job creation numbers.  Take a look at the infographic below from the Wall Street Journal to find out more about the current state of franchising in the United States.  There are a lot of perks that come from becoming an entrepreneur and engaging in the franchise business model.  If you would like to explore opportunities in franchising and know more about the possibilities, contact the Entrepreneur Authority today for a no-cost, no-obligation, no-pressure consultation or call 866.246.2884 to speak with one of our FRANtastic consultants.  You can also attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Just click on the link to register!

Top Restaurant Trends in 2016 (Infographic)

The food industry is in a state of rapid change, with the rise of fast casual dining leading the way.  Fast casual restaurants are the most rapidly expanding sector of the restaurant industry, and chains make up 95% of all establishments according to Technomic .  There are a lot of opportunities for franchisees to jump into a dynamic industry, but it’s important to stay on top of the top restaurant trends in 2016.  Customers are changing they way they eat more frenetically than ever, and businesses will have to work hard to keep up.

Nutrition

2016 may be the tipping point in the fight against American’s unhealthy lifestyles.  The World Economic Forum has previously rated the United States 43rd in the Health and Wellness of its citizens, the worst among all major (and many minor) industrialized nations.  Americans have known for a long time they were promulgating unhealthy eating habits, and the lesson seems to slowly be sinking in.  Researchers at the Harvard T. H. Chan School of Public Health recently created a healthy eating scorecard evaluating the quality of Americans’ diet over the past two decades.  The country’s score has improved 10 points, moving from 39.9 to 48.2 (with 100 being a perfect score).  Restaurants are adapting to this trend: 65% of chefs said nutrition was hot trend in 2016.

Local Sourcing of Ingredients

Along with the health eating trend comes an emphasis on locally sourced ingredients.  Customers are starting to decide where to eat based on where the food came from, and local is king.  44% of chefs say that local sourcing is the food trend that has grown the most this last decade, and even national brands are making this a selling point.  Chipotle’s brand image is built on its “Food with Integrity” commitment, where it sources the majority of their ingredients through their local grower initiative.  Even brands like Subway, Taco Bell, and Noodles and Co. are eschewing artificial flavorings for naturally raised ingredients, while providing healthier options on their menus.

A More Adventurous Palate Means More Opportunities

Americans are losing their picky eating habits.  Ethnic flavors and cuisine have seen an explosion in popularity these recent years, with customers dining on chili spices, fermented ingredients, vegetarian spreads, and more.  While this is good for variety, it is sure to put pressure on larger restaurants to constantly innovate and source new ingredients to keep up with changing trends.

Future Trends

An emphasis on the environmental sustainability of a restaurant’s ingredients and operations is expected to be a big issue in coming years.  Already, 41% of chefs say that it is the trend that will grow the most in the next 10 years.  Restaurants will be looking to reduce water use, food waste, and encourage responsible ingredient production.  In addition to an environmental focus, expect global flavors arriving on your dinner plate as African and Middle Eastern staples become mainstream in America.

2016 is a great year for variety in restaurants: both in the food they serve and the way they serve it.  If you’re interested in operating a restaurant, consider becoming a franchisee of a successful brand.  There are a lot of perks that come from becoming an entrepreneur and engaging in the franchising business model.  If you would like to explore opportunities in franchising and know more about the possibilities, contact the Entrepreneur Authority today for a no-cost, no-obligation, no-pressure consultation or call 866.246.2884 to speak with one of our FRANtastic consultants.
You can also attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Just click on the link to register!

 

Managing Small Business Debt

Debt is an unavoidable part of starting and running a business, and managing debt effectively has large ramifications for your business’s bottom line.  It’s good to be on a firm financial foundation before you start your own small business, as inevitably your personal and businesses finances will become mixed.  Half of small businesses fail in their first 5 years largely due to insufficient capital, poor credit arrangements, and too much debt .  It behooves you to have minimal debt when you seek financing, as you will have less stress overall and will be able to put more capital in your business.  This is rarely the case however, as 49% of small business owners are in major debt while 75% of startup capital comes from credit cards, bank loans, and lines of credit.  Managing all this debt is difficult, and many entrepreneurs struggle to find an effective way to reduce their debt load.  Let’s explore some strategies and principles to evaluate how you manage your small business debt.

How do we Manage Debt?

Debt is everywhere in the United States.  For example, nearly 70% of Americans own at least one credit card and most have more than 1.   However, most people don’t know how to effectively pay off their loans.  The most effective way to manage debt is to pay off the loans with the highest interest rates first.  Staggeringly, of those surveyed, only 3% of individuals allocated money in a near optimal way.  Most individuals instead focus on repaying their smallest loans first, in an effort to reduce the number of outstanding loans they have.  This is called being “debt account averse,” where instead of reducing your total associated cost of financing you focus on reducing the number of debt obligations you have.  Why is this?  There are three explanations for this behavior:

  1. Prospect Theory: Individuals are much more sensitive to a loss than a gain of an equal amount. The urge to get accounts back in the black as fast as possible is greater than the urge to analyze interest rates and calculate the optimal pay-off plan.
  2. Goal Gradient Theory: Individuals are motivated by a salient goal. For example, when coffee shops hand out free coffees after a certain number of purchases, they are encouraging you to buy more coffee than you normally would by using an artificial goal. People find it easier to pay off small debts first, and get more satisfaction from paying them off quickly.
  3. The final reason is that people often don’t understand how interest rates work or how to organize an optimal pay-off plan. It’s hard to visualize how your debt load changes over time and its effects on your business.

Are you Liable for Your Business Debt?

Personal liability is always a complicated issue when it comes to small business.  If you are currently handling liability issues with outstanding debt, it is always best to consult with an attorney to get advice for your particular situation.  With that said, let’s take a look at typical arrangements you find in small business financing. 

Sole Proprietorships and Partnerships

In this legal structure, you and your business are legally the same, therefore you are personal liable for all your business’s debt.  Your partners are also liable for the business’s debt, and not proportionally—your creditors can take your partner’s personal assets to pay off all the business’s debts.

Corporations and LLCs

You and your business are separate legal entities in this arrangement.  In theory, you have no personal liability for your business’s debts but this is not always the case.  It’s difficult to build a perfect wall between your personal and business finances.  Here are ways you can become personally liable for your business debt: 

  • You’ve signed a personal guarantee for debt. Small corporations and LLCs have trouble finding credit due to the limited liability construction. Banks want assurances that an entity can and will repay their loans so they often ask for a personal guarantee. A personal guarantee essentially has you give up your limited liability so creditors can turn to your personal assets for debt repayment if necessary.
  • Offering property as collateral for debt.  Banks often have small business owners put up their house or other property as collateral for loans, creating real risk that a business failure means losing your house and other important assets.
  • Signing a contract in your own name.  If you are careless and sign a contract in your own name and NOT as the corporation or LLC, you will be held personally liable for the debt.
  • Using personal credit cards or loans to fund the business.
  • Fraud, misrepresentation, or sloppy record keeping.  If you like on loan applications or failed to create a formal legal separation between you and your business, creditors will bring you to court and find you personally liable for all debt.  This can be called “piercing the corporate veil,” where the court establishes you are using your corporation or LLC as a front to reduce liability, when in fact you are personally operating the business.

How to Reduce your Business’s Debt Load

There are a few different approaches to reducing your total debt load.  The first and easiest is to raise and invest personal capital.  Leveraging your personal wealth or reaching out to friends and family can be a useful short-term solution to financing issues.  Another important part of reducing your debt load comes from efficiently cutting costs.  Analyze your balance sheet closely and determine where you can make the necessary cuts to meet your debt obligations.  It’s often useful to contact both your customers and your suppliers in an effort to drum up business by offering deals on your product or service, negotiate cheaper contracts and payments, or try to reduce your accounts receivable turnover.  Additionally, reach out to creditors if you are struggling to meet your debt payments.  They’ll help you refinance your debt or consolidate all loans into one payment. 
If you’ve tried all this but can’t seem to make the math work on your loan repayments, there are some measures of last resort you can turn to.  Let the business fail and file for bankruptcy.  Click here to learn more about bankruptcy options available to small businesses (http://www.nolo.com/legal-encyclopedia/chapter-7-chapter-13-bankruptcy-small-business-owners.html).  You can also sell the business and liquidate all its assets to pay off debts if you’re not too highly leveraged.  Hopefully, if you learn how to manage debt effectively, you will never have to be in this scenario.

How to Build a Strong Network (Infographic)

Networking is an integral part of any business endeavor.  Building a strong network means making connections with a group of people that can provide you with advice, opportunities, social capital, and most importantly, business for both you and your contact.  Unfortunately, many people don’t network effectively or have reservations approaching peers; in fact, a ComRes poll has shown that 62% of British adults have never attended a networking event, and 51% of those that have report feeling uncomfortable while networking.

Although understandable, there’s no reason why you should be nervous or tense at a networking event.  Remember, networking should ideally be a mutually beneficial activity, a “you scratch my back I’ll scratch yours” relationship.  With that said, let’s take a look at some principles to keep in mind while networking.

Have a goal in mind

Ask yourself why you’re reaching out and trying to create new business contacts.  Perhaps you’re trying to build a new client base, or exploring an industry you aren’t familiar with.  You could be new to an area and seeking employment or partnership opportunities.  It might be as simple as looking for advice from experienced peers for your business endeavor.  The key is to enter into a networking event with a clear goal of what you want.  That way, you don’t find yourself lacking purpose and therefore drive to connect with others.

Build a Target List of Contacts

It isn’t feasible to network with everyone in your industry, so you have to be discriminating in which relationships you invest time.  Using your goal as a guide, create a list of people you feel it would be valuable to reach out to.  A valuable contact is someone who is interested in helping others solve a problem, and who you can provide help as well.  Remember, the goal is not to have the largest stack of business cards possible at the end of the night.  It is much more important to have a number of smart, helpful people who you can engage in a mutually beneficial partnership with.

Build Candid, Reciprocal Relationships

Networking is supposed to build give and take relationships so both sides feel like they are gaining from the encounter.  This requires that you be a good listener, and a good sharer.  First of all, ask your contact about the basics to get the conversation started: What does your company do? What is your customer base?  What sets you apart from the competition?  Don’t hesitate to discuss aspects of and issues with your business as your candor is generally rewarded.  Try not to keep it all business and connect with the other person in a more personal way: discuss your kids, hobbies, or your terrible jump shot.  This makes you memorable and more than just a number in a contact book.

Maintain Your Relationships

The most important part of networking is to maintain those relationships you’ve spent so much time developing.  After connecting with someone, send them a thank-you note, set up a meeting, forward them interesting information, or bring them new business.  If you have high-quality contacts they will respond in kind, and this back and forth forms the fundament of a strong, profitable relationship.  This is the part of networking most people don’t pay attention to.  For the same reason you have to regularly tend to your garden, you must tend to your business contacts to keep them healthy.  Don’t spam them though!  Be useful, not unhelpful.  It’s important to not burn any bridges, as you never know when somebody will be able to help you, or you to help them.  Remember the golden rule, “do unto others as you would have them do unto you.”

Are Entrepreneurs Made or Born?

The ages-old nature/nurture debate has gone on for decades. Is a person the product of their environment (nurture) or the genetic traits and qualities passed down to them from their parents (nature)? Applying this question specifically to entrepreneurship – are entrepreneurs made or born? In other words, what is more important to your entrepreneurial success – your genetic endowment or what you do and experience out in the world?

In one sense, the way I posed the question isn’t fair. I asked it in the form of an either/or question. The reality, not surprisingly, is more complicated because it’s really a both/and situation. Both matter, and knowing where you fall in the mix will help you be more successful in your entrepreneurial efforts. 

It’s surprising how many people still hold to the belief that entrepreneurs are born, meaning that you’ve simply got to have a certain set of personality traits and inner characteristics to be a successful entrepreneur. Many such lists of traits and qualities have been posed over the years. Perennial favorites that seem to appear on most lists include the following:

  • Ability to spot opportunities.
  • Willingness to take calculated risks.
  • Tolerance for failure.
  • Strong internal locus of control (belief that actions taken affect outcomes).
  • High drive to succeed.
  • Tolerance for uncertainty and ambiguity.
  • Willingness to question and go against the status quo. 

It’s completely fair and accurate to say that if you’re born with all of these qualities in spades, you’re going to naturally have a whole lot easier time becoming a successful entrepreneur than someone who’s got less of them.

But the plain fact of the matter is that many of these traits can also be thought of as skills, which means they can be improved through education and training. You can learn how to get better at spotting opportunities. You be trained in how to tolerate failure (and learn from it). You can be taught how to not let uncertainty and ambiguity cause so much discomfort. You can be schooled in how to question the status quo. 

In a way, this both/and approach to entrepreneurship should come as no surprise. After all, most people know of a pair of siblings or friends where one was clearly smarter in terms of raw IQ but the other one always got the better grades because they worked harder at it. That’s why my answer to the nature/nurture debate when it comes to entrepreneurs is this: You’ve got to take what nature gave you and nurture along to reach your entrepreneurial goals.

There’s also an important implication here about self-knowledge. You need to know your natural baseline on the qualities listed above in order to come up with a nurturing game plan that will boost yourself in areas needing enhancement. Taking some time for honest self-assessment is one way to determine your baseline. Another way is to take any number of entrepreneurial self-assessment surveys. A great collection to choose from can be found in the article Entrepreneur Self Assessment: 9 Professional Tools and Tests. Armed with this kind of knowledge, you’ll be well on your way to entrepreneurial success no matter what your starting point. Good luck!