small business marketing

Your Business: Part-Time Real Estate Agent

Is your business being a part-time real estate agent? Well, if so you better be good as otherwise the market will tear you apart. I am currently in the market trying to sell my house and I already bought a new one. I have been dealing with a very professional real estate agent who owns her own agency and does this full-time. However, during the process I visited many open houses and talked to many real estate agents and watched how everyone was doing things. It’s amazing how easy it is to separate the full-time realtors from the part-time people. And often this is the same separation between a successful realtor and someone less successful and less professional.

If you are a part-time real estate agent you have a great shot at this business. The main thing however is to separate yourself from all the other part-time realtors out there. It starts with your appearance. Look professional at all times when being a realtor. Don’t go overboard, but do not go cheap. Drive a decent car – not something too old. Understatement is fine if done correctly. Instead of driving a Lexus or Mercedes Benz you could drive a loaded 4-5 year old Jeep Grand Cherokee.

An experienced real estate agent advises customers in regards to what to do in their house to make it look more appealing. I have seen too many part-time agents not really knowing anything about home staging. Being a real estate agent means to be passionate and knowledgeable, too. This separates the boys from the men so to speak. This job is not just about the money and that is often shown in how successful a real estate agent is. They hope the house will sell itself and they can collect a nice commission. This might work in boom times to an Ok level, but when you collect $20,000 per month in commissions, your more professional counterparts make 4 or 5 times as much + build a loyal customer base at the same time.

This article only scratches the surface about this topic. Being a real estate agent can be a very rewarding business. However, treat it as a part-time business and success will never come.

Filed Under: Business Management Tagged With: small business, small business management, small business marketing, starting a small business

Change Management Processes for Corporations

Change Management is a critical piece for corporations. Large corporations depend on it for anything that affects their production environment. But what is change management at all? Change Management is the process that kicks in when a change is made to the production environment of a business. For the matter of this article we will use an Information Technology related case to explain Change Management.

Company “A” uses change management to keep track of changes to its web servers. The change management process also allows to inform all internal business units and departments of the upcoming change to the web servers and what parts of the business are affected by this change. The change management process is started by the decision to update the web servers with a newer version of the web application. The website administrators, the QA department and the developers have finished the final testing of the new application update and now it is time to go live.

The website administrator starts the process by writing down the purpose of the change and what steps are required to complete the task. He also describes the impact to internal and external users and which departments of the business might be affected (example: external customer service). The description of these tasks for the update are usually high level and not too detailed. The reason for this is more to inform the business about the change and not to list an exact how to step by step guide.

Once the website administrator has finished the initial change management request form (electronic or hardcopy) it goes up one level to his direct manager and with his approval the change management request is being distributed among departmental points of contact that have been defined in an earlier process. The different departments and business groups review the change management request to evaluate the impact to the department or group. If no impact is visible or if a possible impact is already addressed and covered in the change request the department or group approves the change management. If a possible impact is not addressed the group or department denies approval and ask for more information or how the issue in question will be addressed. Approval for the change request goes to “pending”.

Once all issues are addressed and worked out and every necessary approval has been submitted the change management request awaits one more step – CTO (Chief Technology Officer) or CIO (Chief Information Officer) approval might be required. This process makes sure that a track record of changes that affect the business is created and that every group, every department and the business management are aware of what is going on.

Some critics see change management as a process that slows down the ability to act fast when needed. Others see it as assurance for continuing business success as department A might not realize how big the impact of a proposed change is to department B.

Filed Under: Business Management Tagged With: small business, small business management, small business marketing, start a small business

7 Tips to Improving Your Cash Flow

Cash is King… That is what everyone tells us and it is true! You cannot function successfully in any business without proper cash flow. So if this Cash Principle is so well known, then why is it that so many businesses struggle? Sometimes the obvious is not always so obvious when you are entrenched in running the day-to-day aspects of your business. Here are 7 Tips to Improve Your Cash Flow!

1. Cash and Carry. Operate a cash and carry type business versus worrying about receivables. The best business plan is one where customers pay at the time of purchase so you don’t have to worry about invoicing or collection procedures. Invoicing and collections take up valuable time, so you want to come up with creative ways to incentivize payment immediately. Set the ground rules in the beginning so your clients know what you expect.

2. Receivables Collection. Collect your receivables in a prompt manner. Don’t let them hang out there forever until your customers decide they want to pay you. Being a good steward of your business is “good business”, so have a process in place for invoicing and collections. The longer your receivables are outstanding, the less likely you are to collect. You don’t have to be mean and rough to collect promptly from your clients. A good rule of thumb is that you should always have a due date on the invoice and then send out a follow-up statement within 10 to 30 days from the due date. Each industry and business environment has different insights as to what is the “ideal” time. I would not send follow-up correspondence any sooner than 10 days past due. Payment may just be delayed by the mail; however, waiting longer than 30 days is too long. If you have not received payment within 45 to 60 days of the due date, then a phone call should be made to follow-up with your customer. Accounts that go past due 90 or more days should be taken to the next level of collections with an outside agency, internal collection “ninja” or any other mode you have established for collections. Find what works best for your business and stick to it. Each day that you are delayed in receiving payment is an additional cost of doing business. Time is money.

3. Receivables Funding. Implement an accounts receivable funding program. Factoring of accounts receivable has become very popular and it can be a great way of keeping the cash flowing. Businesses who deal with large businesses or government agencies lend themselves to utilizing factoring programs. If your clientele is made up of small businesses or individuals, you may find it more difficult to establish an accounts receivable funding program. Why? Funding companies are monitoring risk. There is less risk with larger companies or government agencies. Or so they think!

4. Vendors. Negotiate terms with your vendors to help delay the outflow of cash payments. Lots of vendors have payment terms where you can delay the payment until end of the month or maybe even up to 60 days. This allows you a little float time to use their money while you are working on your project. Then hopefully you’ll receive payment from your customers prior to needing to pay for the products you purchased. Some companies also go the route of consignment. Then you are selling someone else’s goods and don’t have your money wrapped up in inventory. This option can help you increase your product offerings without having to invest large amounts of money in inventory.

5. Customer Deposits. Have your customers pay a deposit prior to the start of the job. This will help you cover your upfront costs as you start the projects. It’s very common to have a deposit with the signing of your contract. It decreases the risk associated with nonpayment because you’ve received a portion up front. You can also implement periodic payments throughout the contract vs. a single payment upon completion of the project so that cash is flowing in consistently.

6. Revolving Credit Line. Establish a revolving line of credit through a lender to help you with potential cash flow crunches. Especially if the amount of savings from prompt pay discounts are greater than the financing charge from the lender or the lender’s financing charge is less than what your vendors might charge for late payments. This helps give your business a safety net so that you can continue to operate during those times when you are offered great specials if you buy today but may not have extra cash available.

7. Savings Fund. Establish a savings fund to help you operate through slow times. Most businesses have swings in their business flow and managing cash effectively can be a challenge. Store away extra during the good times to help alleviate issues during the slow season. I know this sounds easier than it is, but if you take out a percentage each month and transfer it to a savings account then it will be “out of sight and out of mind.”

You may find that each of these 7 tips is viable for your business, or maybe only 1 or 2. Anything that you can do to focus on better cash flow will provide benefits to your business. The worst thing you can do is sit back and “hope” that things go well. Look around! See those “CLOSED” signs on the surrounding shop windows? They played the “hope” game and lost. What are you going to do? Hope? No…implement a plan for cash flow management starting now.

About the Author

Pam Newman helps business owners keep money from slipping through their fingers. Pam is a Certified Management Accountant, Certified QuickBooks ProAdvisor, and Author of Out of the Red and Unlocking the Secrets of QuickBooks. Pam believes that it is important for you to understand the financial picture of your business, so that you can make informed decisions. For more information, please visit http://www.rppc.net

Filed Under: Business Management Tagged With: small business, small business management, small business marketing, starting a small business

Dealing With Clients Not Paying Your Invoice

Dealing With Clients Not Paying Your Invoice
by: Inka-Maria Kunz

Providing a translation is providing a service. Imagine you having provided the appropriate service, delivered it on time, invoiced the client accordingly (indicating a payment date not so far into the future) and the suggested payment date comes and goes without any money pouring in on your needy bank account – what do you do, how do you react? Needless to say that we are not considering the fact of this being a client that has been employing your company for a while or due to some unknown stroke of fate the bank made a mistake.

You’d be surprised if I tell you that approximately 85 % of the relevant translators DO NOTHING. My colleagues anticipate timidly that it suddenly dawns on the client to settle the unpaid invoice. A little percentage of these 85 % will send a reminder after a couple of weeks and then continue waiting for an appropriate reply.

The Net certainly offers numerous options to find prospective clients quick and efficiently, but it also offers yet unknown options for crooks. In the various translators portals reports are circling about colleagues that have abstained in every single known case from paying their translators the respective dues. Now these companies enter the market under a new company logo & name and claim to act as collection agencies for those poor mistreated translators! Well, I call THAT a paradox, wouldn’t you agree? Still there are colleagues who sincerely ponder to employ those companies!

Before setting up a translation agency I worked as an Executive Assistant for a well-known private equity investor in Germany. Our daily bread was dealing with the visions of prospective CEOs of future start-up companies. Needless to say that there were many among those prospective emerging companies aiming to sell blue balloons with polka dots over the Net if given a chance and the respective capital. So my professional background is business related which now comes in handy when dealing with insolvent clients.

In the case of unpaid invoices the employment of a competent collection agency is absolutely vital. You find numerous providers in the yellow pages. Important for you as a one-man business is finding the RIGHT collection agency for your needs, meaning one that charges the debtor all relevant fees and not you. I found mine thru a good friend who had faced this problem in connection with her hosting service. The tip was worth its money in Gold!

The collection agency also pointed out that before accepting any job in the amount of several thousands $ it might be a good idea to have the client’s financial standing examined first. This is not too expensive and might save you from future heartaches and nightmares. You will know beforehand if the client is up to his/her word and if you can rely on prompt payment for any service delivered.

I have had this happening to me before: I had translators who simply forgot to invoice their translation after delivery and I had translation agencies that either forgot to pay the invoice or told me the check got lost in the mail. Sure thing. Guess my translation for those clients next time (if at all) will get lost in cyberspace, hah?

About The Author

This article was written by Inka-Maria Kunz, CEO of a flourishing multilingual translations agency with offices in Germany and New Zealand. This article may be printed or used in its entirety with full author contacts and details. For more information, translations or purchases of a new website/e-business, contact the author thru the official website www.linguatransl.co.nz or the blog www.linguatransl.blogspot.com.

Filed Under: Business Management Tagged With: small business, small business management, small business marketing, starting a small business

When working from home …

A home-based business has a lot of advantages over the traditional 9-5 office system, and most web hosting businesses seem to be run out of an home office. However, working from home could mean that you might lose the structure and schedule of a normal office environment. We collected a few tips and tricks to keep you on track.

Kick Start Your Day

How you start off will determine how you end up! Begin your day with some positive thinking, do some workout (running, ride your bike) to get your head cleared out, have a healthy breakfast of reasonable size (too much food makes you tired again), take a shower, and then get started on your work day.

Develop A Work Schedule

Working at home will come with it a lot of flexibility and freedom. However, you need to be careful that you don’t misuse it. You are now your own boss, so act as if you ARE the boss! Work out strict time schedules -and stick to it. Plan out all the all the tasks you would like to get accomplished in your day, and make sure that you achieve your target. If you are not disciplined enough it will come back and haunt you.

Love Your Work

Make sure that the work you do is something you really enjoy doing. To be successful in this business, you need to be really passionate about your work. Don’t fall into the trap of thinking that because you have a background in web hosting and the experience in this field, that this will be a breeze. Learn to recognize what will motivate you, what will excite you – and build your business based on that spirit. If you are afraid to check the status of your servers and email every morning and it is giving you a weird feeling in your stomach you should eventually consider a different career. One sure sign of knowing that you really love your work is to get that motivating and relaxed feeling when you wake up every morning. Of course, you’re going to have your good days and your bad days at the office – but a strong enthusiasm for your work ensures that you’ll end up having more good days than bad days at the office.

Have a Real Home Office

Running your business from your bedroom is really not the best idea. You should have a separate area to work from. This could be a second bedroom in your apartment or a finished basement in your house. If that is not possible (e.g. you live in a one-bedroom apartment, you will have to work around it – especially if you do not live alone. A Spanish wall and a real desk will eventually give you a little ‘room’. Make sure you keep an office a priority when moving one day. If you already have enough space and a separate office, furnish it accordingly. I personally use a kitchen countertop board as my desk. It goes from wall to wall across the room. It is deeper than a regular desk and I have plenty of space for everything. Having space can be a key. It is easier to find tools, manuals, or documentation. I can reach the printer and the cable router easily and the fax is also just ‘around the corner’.

Establish that “you are at work”

Imagine you are at work in your home office and your wife or kids come into the room every 5 minutes. As nice as it is to have them around – often you need to make sure that they understand that you are working. You cannot just run down to the grocery store to buy diapers or milk real quick. You are at work. Or did your boss at your old place of employment did let you go to the grocery store ‘real quick’? Probably not.

Snacks

You might feel like munching while you work, and that’s one of the benefits of not working in a conservative corporate environment, right? However, be sure that you do not have to leave your office for everything. A journey through the house in search of food might lead to a detour or two to check up on what the kids are doing. 5 minutes here and there can add up really fast. Remember – you want to be productive.

Family Time Out

This one might seem a very difficult initially – but keep your work time separate from your family time. Of course, one of the prime reasons of you opening your home-based business was probably to spend time with family. However, your business is serious business, and needs some serious time too! The great thing is – you can often work around family things. Seeing your son playing soccer in the afternoon can be rewarding and it makes the work at night easier to handle. Most parents will miss a lot of their kids activities because they have to work in an office downtown.

Filed Under: Business Management Tagged With: small business, small business management, small business marketing, start a small business