Category: Business

Cryptocurrencies have taken the world by storm, fundamentally changing the way we think about and interact with money. With Bitcoin’s emergence in 2009, cryptocurrencies have grown into a diverse ecosystem, offering not just a new form of currency but also the potential to revolutionize the financial industry as a whole. This transformation has given rise to a crucial player in the cryptocurrency space – cryptocurrency consulting. In this article, we explore the role and significance of cryptocurrency consulting in today’s digital financial landscape.

The Rise of Cryptocurrencies

Cryptocurrencies represent a paradigm shift in the world of finance. They are digital or virtual currencies that use cryptography for security, allowing for secure and transparent transactions. Unlike traditional fiat currencies, cryptocurrencies are decentralized, meaning they operate without a central authority or government oversight.

The rapid growth and adoption of cryptocurrencies over the past decade have resulted in a vast and diverse landscape. Thousands of cryptocurrencies now exist, each with its unique features, use cases, and value propositions. Bitcoin, the first cryptocurrency, remains the most well-known and widely used, but others, such as Ethereum, Ripple (XRP), and Litecoin, have also gained significant traction.

The adoption of cryptocurrencies extends beyond digital currency use. Blockchain technology, the underlying innovation behind most cryptocurrencies, has sparked interest in various industries. Smart contracts, tokenization, and decentralized finance (DeFi) are just a few examples of the broader applications of blockchain technology.

The Need for Cryptocurrency Consulting

With the rapid evolution of the cryptocurrency landscape, individuals and businesses alike require guidance, expertise, and strategic insights to navigate this complex environment. This is where cryptocurrency consulting comes into play.

Cryptocurrency consulting firms and experts offer specialized services aimed at addressing various aspects of the cryptocurrency and blockchain space. Their roles encompass a wide array of functions, which we’ll explore in detail:

1. Education and Awareness

One of the primary functions of cryptocurrency consulting is education. Consultants provide information and insights to individuals and organizations looking to understand cryptocurrencies, blockchain technology, and their potential impact. This educational component is vital as it demystifies a complex and often misunderstood subject.

Cryptocurrency consultants host workshops, webinars, seminars, and provide resources that explain the basics of cryptocurrencies, how to buy and store them, and the implications of blockchain technology. This educational aspect is especially important for newcomers and those seeking to make informed decisions in the cryptocurrency space.

2. Investment and Portfolio Management

Cryptocurrency investments can be highly lucrative but also incredibly risky. Cryptocurrency consultants assist clients in making informed investment decisions. They offer expert advice on diversifying cryptocurrency portfolios, risk management strategies, and market analysis. Consultants keep a watchful eye on market trends, ICOs (Initial Coin Offerings), and emerging cryptocurrencies, helping clients make decisions aligned with their investment goals and risk tolerance.

3. Security and Privacy

Security is a paramount concern in the cryptocurrency world. Cryptocurrency consultants provide guidance on safeguarding digital assets, offering tips on selecting secure wallets, utilizing best practices for private key management, and protecting against potential threats like hacking and phishing attacks.

Additionally, privacy considerations are crucial in the cryptocurrency space. Consultants can advise on privacy coins and best practices for maintaining financial anonymity, especially in a world with increasing regulatory oversight.

4. Compliance and Regulation

The regulatory environment surrounding cryptocurrencies varies widely across the globe. Some countries embrace cryptocurrencies, while others impose strict regulations or outright bans. Cryptocurrency consultants help individuals and businesses navigate this complex regulatory landscape.

Consultants provide insights into tax compliance, reporting requirements, and regulatory changes that may impact cryptocurrency use and transactions. They can also guide businesses seeking to launch Initial Coin Offerings (ICOs) or Security Token Offerings (STOs) through the legal and regulatory intricacies of these fundraising methods.

5. Blockchain Development and Integration

For businesses looking to leverage blockchain technology, cryptocurrency consultants can offer expertise in blockchain development and integration. They guide organizations in understanding the potential applications of blockchain technology and help design and implement blockchain solutions.

Consultants work with businesses to create custom blockchain applications, smart contracts, and decentralized applications (DApps) tailored to their specific needs. This can range from supply chain management and identity verification to the creation of custom tokens for various purposes.

6. Risk Assessment and Mitigation

The cryptocurrency space is not without its risks. Cryptocurrency consultants assist clients in assessing potential risks associated with cryptocurrency holdings, transactions, and investments. They can develop risk mitigation strategies, including guidance on the appropriate use of stop-loss orders, trading strategies, and portfolio diversification.

Cryptocurrency consultants also stay informed about market trends and emerging threats, enabling them to proactively address and mitigate risks.

7. Technical Expertise

Understanding the underlying technology is crucial in the cryptocurrency space. Cryptocurrency consultants possess technical expertise and can explain the inner workings of cryptocurrencies and blockchain technology. They provide insights into the consensus mechanisms, cryptography, mining, and other technical aspects that underpin the cryptocurrency ecosystem.

8. Exchange Selection and Trading Strategies

Choosing the right cryptocurrency exchanges and trading strategies can significantly impact the success of cryptocurrency investments and trading. Cryptocurrency consultants can guide individuals and businesses in selecting reputable exchanges, understanding trading pairs, and optimizing trading strategies.

They offer insights into trading techniques, such as day trading, swing trading, and long-term holding, to help clients achieve their financial objectives.

9. ICO and Token Sale Support

Cryptocurrency consultants can provide support to businesses and startups looking to launch ICOs or token sales. They guide these ventures through the entire process, from conceptualization and whitepaper development to marketing, token issuance, and post-sale management.

Consultants also offer insights into regulatory considerations, marketing strategies, and raising capital through token sales.

10. Research and Due Diligence

The cryptocurrency landscape is constantly evolving, with new projects and coins emerging regularly. Cryptocurrency consultants conduct in-depth research and due diligence to evaluate the viability and legitimacy of various cryptocurrencies, ICOs, and blockchain projects. This research helps clients make informed investment decisions and avoid potential scams and fraudulent schemes.

Conclusion

Cryptocurrencies and blockchain technology have ushered in a new era of financial innovation and disruption. However, their complexity and ever-evolving nature necessitate expert guidance and support. Cryptocurrency consulting firms and experts offer the knowledge and insights required to navigate this rapidly changing landscape.

The significance of cryptocurrency consulting lies in its role as an educator, advisor, and facilitator in the world of digital finance. By offering education, investment guidance, regulatory compliance, security measures, technical expertise, and more, cryptocurrency consultants empower individuals and businesses to make informed decisions, manage risks, and leverage the vast potential of cryptocurrencies and blockchain technology.

As the cryptocurrency space continues to evolve, cryptocurrency consulting will remain a critical resource for those seeking to harness the benefits and navigate the challenges of the digital financial landscape. With the ongoing development of new technologies, applications, and regulatory changes, the role of cryptocurrency consulting will only become more significant in the years to come. It serves as a guiding light in the complex and dynamic world of cryptocurrencies, helping individuals and organizations find their way to financial success and innovation.

Success in any field can often be accelerated by mentorship, and the legal profession is no different. Associates looking to make partner at their law firm in Mississauga stand to benefit greatly from a legal mentor. Whether you are a law student, or a young professional starting out in your career, having a mentor can help you grow and learn faster than you would on your own.

That being said though, there are some specific steps you should take in a mentor-mentee relationship.

What is a legal mentor?

A legal mentor is a more experienced lawyer who can help you learn new skills, increase your knowledge and advance your career in the legal field. Your mentor should be someone who is willing to work one on one with you in person or virtually and convey their wisdom.

Where can you find a legal mentor?

Legal mentors can be found in a variety of places depending on what you are looking for. Law students for example may find their mentors within the law school faculty, through internships, or through student clubs.

Practicing lawyers may find mentors within the legal community or through the bar association or at corporate law firms in Mississauga.

Structuring your mentor-mentee relationship

Once you have found your mentor, it is time to structure the relationship. You need to decide what your goals are and how best to accomplish them with your mentor. This will help to you maximize the value you get from your mentor while still respecting their time.

Ask questions

Instead of asking questions that you could easily find the answer to by reading your mentor’s bio online, think of more interesting questions that could help you with your own career journey. These questions could be to get the advice, opinions, or lived experience from your mentor. Some questions to consider are:

• Are there any books or legal podcasts that you recommend?
• What associations do you recommend that I join? Can you tell be about your experiences with these associations?
• What additional training or courses can you recommend to help me advance in my career?

Set a goal

You will have a better experience with your mentor if you have a clear goal in mind about what you hope to achieve with the relationship. Having a goal will also help you to structure your time with your mentor in the most productive way.

Here are a few questions you should answer before your first meeting with your mentor?

• What do you hope to get out the relationship?
• What professional goals would you like your mentor to help you achieve?
• What personal goals would you like to achieve?

Be respectful

If you have a legal mentor that is taking time out of their day to help you, it is very important to respect their time and energy. Here are a few tips:

• Respect their time – Ensure that you are reasonable with your requests for meetings and help. If they are looking over a document or resume for you, be sure to give them sufficient time to reply.
• Do your research – Before you meet with your mentor for the first time, do some research on their career, cases etc. This will provide you with topics of discussion and lead to possible questions that you might want to ask.
• Take the lead – be prepared to be responsible for making the relationship work in terms of scheduling. Since the mentor is giving you their time, work to make the process as easy as possible for them by taking the lead.

About Minhas Lawyers

At Minhas Lawyers, we are a corporate law firm in Mississauga specializing in a wide variety of legal fields. For more information, contact us today.

As the demand for energy continues to rise, it becomes imperative to extract every drop of oil efficiently from the earth’s reservoirs. Enhanced Oil Recovery (EOR), also known as tertiary recovery, plays a crucial role in optimizing oil production and maximizing the potential of global energy resources. This article aims to explore the concept of EOR, its methods, and its significance in the energy industry.

Understanding Enhanced Oil Recovery:

Oil extraction involves three primary stages: primary, secondary, and tertiary recovery. Primary recovery typically involves the natural pressure of the reservoir to drive oil to the surface. Secondary recovery utilizes techniques such as water or gas injection to maintain pressure and displace additional oil. However, even after secondary recovery, a significant portion of the oil remains trapped in the reservoir. This is where Enhanced Oil Recovery comes into play.

Enhanced Oil Recovery refers to various techniques and processes employed to extract residual oil that cannot be recovered through primary or secondary methods. It involves injecting fluids into the reservoir to alter the properties of the oil and reservoir rock, making it easier to extract the remaining oil.

Methods of Enhanced Oil Recovery:

1. Thermal EOR: Thermal EOR methods utilize heat to enhance oil recovery. Steam injection is the most common technique, where steam is injected into the reservoir, reducing the viscosity of the oil and facilitating its flow. This method is particularly effective in heavy oil or bitumen reservoirs, where the oil is highly viscous and difficult to extract using conventional methods.
2. Chemical EOR: Chemical EOR involves injecting chemicals into the reservoir to alter the properties of the oil and reservoir rock, enabling improved oil displacement. Surfactants, polymers, and alkalis are commonly used in this method. Surfactants reduce the surface tension between oil and water, allowing easier flow. Polymers increase the viscosity of injected water, providing better sweep efficiency. Alkalis modify the pH of the reservoir, altering the rock’s wettability and improving oil recovery.
3. Gas EOR: Gas EOR methods involve injecting various gases, such as carbon dioxide (CO2) or nitrogen (N2), into the reservoir. These gases mix with the oil, reducing its viscosity and increasing its mobility. Additionally, gas injection helps maintain reservoir pressure and displaces oil to production wells.

Significance of Enhanced Oil Recovery:

1. Maximizing Oil Recovery: Enhanced Oil Recovery techniques can recover up to 30-60% or more of the remaining oil in a reservoir, significantly increasing the overall oil recovery factor. This is crucial in a world where easily accessible oil reserves are depleting, as it allows for the extraction of a larger portion of the available resource.
2. Energy Security and Independence: By maximizing oil recovery, EOR reduces reliance on imported oil and enhances a country’s energy security. It provides a means to extract domestic oil resources efficiently, reducing dependence on foreign oil producers.
3. Environmental Benefits: EOR can contribute to environmental sustainability by reducing the need for new drilling operations. By maximizing oil extraction from existing reservoirs, it minimizes the ecological footprint associated with exploring and developing new oil fields.
4. Economic Implications: Enhanced Oil Recovery techniques have economic benefits for both oil producers and consumers. For producers, it extends the life of oil fields, allowing for continued production and revenue. For consumers, it helps stabilize oil prices by ensuring a steady supply of oil in the market.

Challenges and Future Prospects:

Implementing Enhanced Oil Recovery techniques comes with certain challenges. The high upfront costs, technical complexities, and potential environmental impacts of some methods require careful consideration. Additionally, the availability and suitability of reservoirs for EOR need to be assessed.

However, advancements in technology, such as improved reservoir characterization and modelling, advanced wellbore and surface facilities design, and innovative chemical formulations, have contributed to overcoming these challenges.

Conclusion

The future of Enhanced Oil Recovery lies in the integration of various methods and technologies to create tailored approaches for each reservoir. The optimization of injection strategies, selection of appropriate chemicals or gases, and the utilization of cutting-edge reservoir modeling techniques will play a vital role in maximizing oil recovery.

The tax season is quickly approaching, and now is the time to start thinking about how you will market your tax prep business. There are many different marketing strategies that you can use, but which ones will work best for you?

Tax season is quickly approaching, and now is the time to start thinking about how you will market your tax prep business. In case you didn’t know, a tax prep firm helps people and businesses with the paperwork and calculations involved in filing taxes. While some people dread tax season, others see it as an opportunity to get their finances in order and receive a refund from the government.

Marketing your tax prep company isn’t a walk in the park. It takes careful planning and execution. Plus, how do you even begin to market a tax company? The answer is simple: by using the right marketing strategies. With the right strategies in place, you can attract new clients and grow your business. Here are eight marketing strategies to help you get started.

Develop a niche

When it comes to tax preparation, there are many different niches you can choose from. You can specialize in individual taxes, small business taxes, corporate taxes, or even tax law. By developing a niche, you can better target your market and be seen as an expert in your field.

If you’ve been in the tax prep game for long enough, you can work on multiple niches, but make sure you’re an expert in each one. For example, you can be a tax preparer who specializes in small businesses and also offers individual tax services. But how to let your audience know you’re an expert in these niches? PosterMyWall is a one-stop graphic design tool that lets you craft tax flyers and other promotional material for your company in a few clicks. All you need to do is select a tax flyer template and use the online editor to make the perfect flyer for your company.

Create a user-friendly and responsive website

Your website is one of your most powerful marketing tools. It’s often the first impression potential clients will have of your business, so make sure it’s a good one. But what makes a good website? To answer that in simple words, it should be user-friendly, responsive, and informative.

User-friendly means that your website is easy to navigate and understand. All the information potential clients need should be easily accessible. Consider embedding videos for business on your website, as long as they don’t slow it down because having a fast and responsive website makes all the difference. And responsive means that your website looks good on all devices, from desktop computers to mobile phones. In a world where most people are constantly on their phones, it’s essential that your website is responsive.

Last but not least, your website should be informative. It should contain all the information potential clients need to know about your business, such as your services, rates, and contact information. Include clear call-to-actions (CTAs) on your website so that visitors know what to do next, whether it’s scheduling a consultation or requesting a quote.

Build a solid online presence

In today’s digital age, it’s important to have a strong online presence if you want to attract new clients. But what does that mean, exactly? A solid online presence means using online tools to promote your tax prep business. These could be social media, classified listings, review sites, and much more.

First of all, you should have a website blog in which you write informative articles related to taxes. This will help you attract organic traffic and position yourself as an expert in the tax field. For example, you can write an article on the top tax deductions for small businesses.

In addition to a website blog, you should also be active on social media. This is a great way to connect with potential clients and build relationships. Make sure you’re active on the platforms your target market is using. For example, if you’re targeting millennials, then focus on platforms like Snapchat and Instagram.

Get listed on review sites

Another great way to build your online presence is by getting listed on review sites. When potential clients are looking for a tax preparer, they’re likely to check out online reviews to see what others have to say about your business. So make sure you’re listed on popular review sites, such as Google My Business, Yelp, and Angie’s List.

To get started, create profiles on these sites and encourage your clients to leave reviews. You can also offer incentives, such as a discount on their next tax return. Just make sure you’re providing quality services so that you can get positive reviews.

The trick to making your listing stand out among the rest is to include keyword-rich descriptions. For example, if you’re a tax preparer in Los Angeles, make sure to include that in your listing. This way, when potential clients search for “tax preparer Los Angeles,” your business will come up.

SEO is not optional!

Search engine optimization (SEO) is the single most powerful tool you have to grow your tax prep business. Why? Because it helps you attract organic traffic, which is the most valuable kind of traffic. For starters, SEO is what helps you get your website to the top of Google’s search results.

There are two types of SEO: on-page SEO and off-page SEO. On-page SEO refers to all the optimization you do on your website, such as using keyword-rich titles and descriptions. Off-page SEO, on the other hand, is everything you do to promote your website off your website, such as link building and social media.

There are many different aspects to SEO, but some of the most important ones are keyword research, on-page optimization, and link building. For keyword research, you can use tools like Google Keyword Planner and Moz Keyword Explorer. Once you’ve identified the right keywords, make sure to use them throughout your website, from your titles and descriptions to your blog posts and articles.

Link building is another important aspect of SEO. This refers to the process of getting other websites to link back to yours. The more high-quality links you have pointing to your website, the higher your website will rank in Google’s search results. As a rule of thumb, it’s better to have a few high-quality links than a bunch of low-quality links. If you’re not familiar with SEO,  we recommend hiring an SEO expert to help you out. 

Find the right social media platforms

Social media marketing is necessary for any business, including a tax prep business. After all, potential clients are likely to search for you on social media before they even visit your website.

It’s important to be active on the right social media platforms. Don’t try to be everywhere at once because that’s just not realistic and won’t get you anywhere. You need to find out where your target audience is hanging out. For example, if you’re targeting businesses that want to file their tax returns,  LinkedIn would be a good platform to focus on.

If you’re looking to get the word out there in general, Facebook is an excellent choice because it’s the most used social media platform. Once you’ve identified the right social media platforms, you need to create engaging content that will get people to take notice of your business. This means posting quality content on a regular basis. You also need to be active and interact with your followers.

Paid social media campaigns

Once you’ve selected the right social media platforms, you can run paid targeted ads to increase your traction. These ads can be very effective because you can target them specifically to your target audience. For example, if you’re targeting businesses that want to file their tax returns,  you can create an ad campaign on Facebook that targets this specific audience.

Paid social media campaigns are a great way to get your business in front of more people. They’re also a great way to boost your brand awareness. Just make sure that you’re targeting the right audience and that you’re creating quality ads.

Email marketing can do wonders for your business

Email marketing is one of the most effective marketing strategies out there, and it’s especially well-suited for tax prep businesses. After all, you probably have a list of clients who you’ve worked with in the past. You can use this list to send out email blasts about your business.

Email marketing is a great way to stay in touch with your clients and keep them updated on what’s going on with your business. It’s also an excellent way to promote new services and products.

To get started with email marketing,  all you need is an email list and an email service provider (ESP). We recommend MailChimp because it’s one of the most popular and user-friendly ESPs out there.

When creating your email campaign, make sure to focus on quality over quantity. It’s better to send out a few high-quality emails than a bunch of low-quality ones. Also, make sure to personalize your emails as much as possible. This will make your clients feel like you’re speaking to them directly, which will increase the chances of them doing business with you.

Some parting thoughts

While the strategies discussed in this article are tried and tested and work for tax prep businesses, you must remember to tailor each strategy to your target audience. Every business is different with a unique selling point and target audience. Therefore, not every marketing strategy will work for every business.

The bottom line is you need to find the right marketing mix for your business. Ask yourself, which of these strategies will work and why? Once you’re going forward with them, don’t forget to track your results. This will help you filter out or tweak your strategies to understand what’s working and what’s not.

Considering that 20% of new businesses fail during the first two years, 45% within five years and 65% within ten years, business owners have constant challenges. However, the idea that having survived the start-up stage means that you are “on the road to riches” is a dangerous attitude. In reality, there are various stages when switching your company from start-up to growth. As they say, fail to prepare, prepare to fail. It really is as simple as that.

We will now look at the various issues to consider when switching your business strategy from that of start-up to a growing business.

Setting foundations as a start-up company

While the first two years of business are often seen as the riskier, they also play an essential role in creating the foundations for the future. Therefore, before you even consider moving to the start-up stage, it is crucial to ensure that your business idea is viable and potentially profitable. Of course, in reality, you won’t know until you begin trading, but there is enough market research and expert guidance available to give you a good idea.

Test and adapt your business idea

Before moving towards the start-up stage, it is important to test and adapt your business idea. This will likely involve advice and input from an array of different people giving you an unbiased opinion on your concept. At this stage, it is vital to listen to what others are saying, what they see and what they think about your business proposition. Failure to listen at this early stage, could cast serious doubts about your ability to move to the start-up stage. Of course, there is nothing wrong with being confident, indeed having an ego, but don’t be blinded by your own brilliance!

Secure finance for your start-up

It is vital to have a detailed plan in place as you move towards the start-up stage, focusing on what needs to be done, the finance required and the employee/management team. The key to a successful start-up is access to the right level and type of finance. While important not to spend just for the sake of it, there is more risk in underfunding your project than overfunding. Unless you provide the nourishment in terms of finance, your business idea is unlikely to prosper.

Different types of finance available

While no two businesses are identical, the same can be said of the most suitable type and level of finance required. Thankfully, there are numerous sources of finance for start-up companies that can help create solid foundations on which to build. These include:-

Business loans

Well-structured affordable business loans will provide the required liquidity to kick-start and then begin to grow your business. Many of us have a natural tendency to take out short-term finance, so this can be repaid as quickly as possible. However, when it comes to business, it is essential to keep one eye on cash flow and leave yourself some headroom in the event of unexpected expenses/trading difficulties. Therefore, it is more prudent to consider a business loan with a longer duration which allows you to repay early if the cash flow is available going forward. If the business takes longer to take off, you can use the entire duration to protect cash flow. Simple?

Asset finance

When acquiring machinery and equipment, balancing the cost against the productivity/efficiency gains is vital. Many young companies use asset finance to protect cash flow while maximising their output and ultimate profitability. It is also essential to consider the maintenance of the machinery and whether there may be more significant financial benefits in acquiring second-hand equipment.

Venture capital

Even the term venture capital can strike fear into the hearts of many business entrepreneurs looking to protect their “baby”. The reality is that not only do venture capital companies offer potential investment, but there may also be add-on services such as management advice. Don’t forget that most venture capital personnel have been there and done it in the world of business. They can offer you invaluable guidance when switching from the start-up to the growth phase. Yes, they may drive a hard bargain, but it is crucial to consider the financial input and the advice/guidance available.

Angel investors

When comparing angel investors to venture capital investors, many people automatically assume angel investors to be less business-minded and likely to take a “softer” approach to investment. Do not be fooled!

More commonly, successful business entrepreneurs, Angel investors have been there, done it, and earned their money. This tends to be a more intimate business relationship, often involving one-to-one advice and assistance, but they will still drive a hard bargain. Angel investors are there to “help”, but they are also there to maximise their experience and returns.

Management team

Unfortunately, the business world is littered with failed business entrepreneurs with ideas as big as their egos. If you have plans to become a substantial growing business, you will need to put together a management team in the early days. Individuals and the collective group will play a significant role in managing the business and creating a highly skilful qualified workforce. They say that a company is only as strong as its weakest link; often, this can be the entrepreneurs themselves, unwilling to give up any responsibility/control.

Adapting your team

It is essential to realise that the management team required pre-start-up will be different from that needed to grow an established business. Consequently, as you grow your business, you will likely experience a degree of turnover in management and sometimes employees. This is a natural process that you should embrace rather than fight.

Embarking on short, medium and long-term growth

The most successful businesses have all shown a degree of flexibility regarding the products/services they offer. As you grow with your client base, you will need to adapt your offering, prices and even expand into areas you had previously not considered. As you switch from a start-up company to a growing company, there are numerous factors to consider.

Cash flow is crucial

While securing sufficient finance to see you through the start-up process is obviously important, cash flow is crucial for a growing company. Unfortunately, we have seen many successful businesses fall by the wayside because of cash flow difficulties. Therefore, even before you begin trading, you should attempt to calculate cash flow forecasts as you advance. While a valuable means of monitoring the health of your business, it also acts as an early alert to potential difficulties. This will allow you to make changes before your company begins to experience serious cash flow difficulties.

Working capital finance

Whether you offer a service or products, you may require working capital finance as your business grows. For example, if your suppliers need cash settlement, this could create a significant gap between payment and receipt of sale proceeds from your customers. The introduction of additional working capital finance can often help you over the initial financing challenges. It is also vital to remember that your expenditure with suppliers will increase as your business grows. The more you spend, the more critical you are to them.

Negotiating terms with suppliers

Many supplies will require cash on delivery in the early days, especially where you have no credit history. However, as your business grows, your expenditure increases, there may be the potential to negotiate extended payment terms. In some cases, this may see you receive sale proceeds from your customers before you have even paid your supplier. Of course, this would be the ultimate goal for any business!

While there is nothing wrong with being loyal, you may need to consider additional or new suppliers as your business grows. You may be able to secure more attractive payment terms, discounts on large orders or a more dependable flow of goods.

Expand/adjust your offering

When we look at the growth phase of any business, it is essential to remember that unless you are growing, then relative to your competitors, you are going backwards. To protect your customer base, you may need to adapt and expand the services/goods offered on a regular basis. While sometimes an eye-opener, the best way to monitor changing trends is to build up a rapport with your customers and ask for their feedback regularly.

On occasion, you will need to be relatively thick-skinned, accept criticism, and respond to it. However, if your customers feel valued and you listen to their input, they will feel more involved and likely to remain with you longer.

Marketing spend

You may have the best products, award-winning services and a great customer services team, but if nobody knows who you are, growth will be challenging to come by. Therefore, it is vital to provide finance for a healthy marketing spend to help grow your business. Whether you take on additional finance, such as a business loan, will depend upon the type of business and the scenario. However, if one dollar of marketing spend creates $10 of sales, it is a no-brainer.

You must maintain a high profile within your financial constraints, but go looking for customers rather than waiting for them to find you. You can bet your bottom dollar; if your name is not out there in marketing lights, your competitor’s name will be!

Acquisitions and mergers

Over the years, we have seen many successful businesses acquire or merge with competitors. Even though some business entrepreneurs struggle with this from an ego point of view, it is an integral part of business life. Corporate activities such as mergers and acquisitions lead to increased sales and the reduction/elimination of duplicate running costs. The double whammy of reduced costs and increased sales can have a massive impact on profitability.

Summary

Finance and cash flow are crucial, whether looking at the pre-start-up stage, actual start-up stage, or the growth phase in your business. These underpin the foundations of your company and will often open the door to additional finance in the future. Success often breeds success in the world of business, but it is the initial foundations that will ultimately dictate whether your business will thrive.

The journey from a business idea to live profitable operation can be long and sometimes lonely. There are numerous different aspects to consider when looking at the cost of setting up a company. While many articles tend to jump to the business creation stage, it is crucial to appreciate the potential costs incurred before setting up your business.

Market research

You must know your potential clients and your market inside out. You need to know what they are thinking, often before they do, and you need to react to changes in the marketplace. So, once you have experienced your “eureka moment”, it is time to look at market research.

Issues to consider include:-

• Potential demand for your product/service
• The size of your potential market
• Your target clientele
• The location of your target market
• Is there market saturation
• What is the current market rate for your products/services

Historically, market research companies were employed to carry out telephone or face-to-face interviews. The introduction of the Internet and email has led to a significant reduction in potential market research costs. An article by the Entrepreneur website gives us a ballpark figure for different types of market research:-

• Telephone interviews around $40 per person
• Traditional mail service, from $5000 up to $7000 for 200 responses
• Email marketing, around $3000 up to $5000 for 200 responses

It is perfectly feasible that you could carry out your market research without employing a third party. However, how accurate and what depth of information you would achieve is debatable.

Write your business plan

When looking at business start-up costs, there is a very fine balance between being loose with your funds and cutting your nose off to spite your face. If you cut corners on crucial issues such as writing your business plan, this could backfire and make you less attractive to potential investors. The best way to think of a business plan is a roadmap of your company, how it is structured, how you intend to run it and plans to grow your business in the future.

This is your opportunity to shine, the chance to get your idea over to third parties who may be looking for investments, although very often, you will only get one crack of the whip. Make it count!

There are two basic types of business plan, referred to as:-

• Traditional business plan
• Lean start-up plan

As the term suggests, traditional business plans tend to be more in-depth. The lean start-up plan covers all of the significant points, maybe not in as much detail. For example, a traditional business plan would likely include:-

• Executive summary
• Company description
• Market analysis
• Organisation/management structure
• Service/product line
• Marketing and sales
• Funding requirements
• Financial projections
• Supporting documentation

The format for a lean start-up business plan is a little different and would tend to include the following information:-

• Key partnerships
• Key activities
• Key resources
• Investment proposition
• Custom relationships
• Customer segments
• Sales channels
• Cost structure
• Revenue streams

The lean start-up business plan will be more headlines, more punchy and be something that you can build on in face-to-face meetings. It gives potential investors/lenders an idea of your business, allowing you to add the detail.

Many people create their own business plans, but if you were to approach a professional adviser, they would likely charge anywhere from $1000 upwards. It would depend upon the size of your business, the complexity and the work required. In some cases, this could run into the tens of thousands of dollars.

How much money do you need to start a business?

The introduction of the Internet has had a phenomenal impact on the cost of setting up a business and the level of funding required going forwards. That said, there are still many businesses that are described as “bricks and mortar”. The three typical business types include:-

• Bricks and mortar
• Online
• Service provider

There is a vast difference between having a basic online presence, for example, a company website allowing potential customers to contact you, and an actual online trading business. Business start-up costs will vary widely depending on the type and size of the business. There are many factors to take into consideration, such as:-

• Physical office space
• Equipment/supplies
• Communication equipment
• Utility bills
• Licenses/permits
• Business insurance
• Accountancy services
• Legal services
• Stock
• Salaries
• Advertising/marketing
• Market research
• Marketing material
• Website design
• Website running costs
• Staff training

If you have a business idea that requires a physical presence, this may be more expensive as you will likely need to be “noticed”. Where much of your work is predominantly online, you may be able to source relatively cheap office space as you do not need to be in the frontline. Many service businesses allow their employees to work from home with a relatively small head office. The Internet and the array of online services such as Zoom offer the potential to rein in high historical costs.

When you begin looking at office space, you will notice that many companies now offer relatively short-term rental arrangements. This allows start-up companies a degree of flexibility should they wish to upsize or downsize in the short term. It also ensures that they are not tied to a considerable lease which may be challenging to break. So make use of the new office services out there!

Funding levels for a new business

There is a general misconception that start-up costs need to be kept to a minimum when putting together a business plan and setting up a business. However, as you venture into the business world, you will very quickly realise it is more dangerous to underfund a company than it is to overfund it.

Potential investors want to work with people who know their market, know their business idea, and know the value of not starving a business in the early days. For example, investors in colossal technology start-up businesses such as Snapchat were very wary of underfunding the business in the early days. The initial business plan for this company forecast losses for several years before moving into profitability. Consequently, there was a need to raise sufficient capital to cover early losses.

How to secure funding for your business

Using the start-up costs mentioned above, your profit forecast for the short to medium-term and ongoing running costs, you will be able to calculate the degree of funding required, including working capital. The vast majority of new businesses will work on a stage by stage process where they raise funds for the early years, after which point the situation will be revisited. This is important because it:-

• Incentivises business owners
• Ensures the business is not sold short as it develops
• Can attract more investors if successful

As we touched on above, many investors are willing to invest heavily in the early days if they can see a long-term path to profitability. The three main types of investment tend to be as follows:-

• Self-funding
• Outside investors
• Loans

In a perfect world, the business owner would have “skin in the game”, having invested in the early days and at different stages as we advance. This encourages outside investors, although it is predominantly the business plan which opens the door to loan finance. A mixture of these three different types of investment should help the business owner retain a significant interest in the business in the future.

Outside investors

There are several outside investors you may wish to consider when setting up a new business. These include:-

• Venture capital
• Family and friends
• Business angels
• Business partners

There is a saying in business, never mix business and pleasure, and this is very true. If you bring family and friends into your business, offering them the opportunity to invest, your relationship may never be the same again. However, when looking at venture capital groups, business angels and business partners, you could negotiate as hard as you wish.

Securing venture capital finance

If you look at the history of some of the largest tech companies in the world today, the vast majority started with self-funding, loans and then progressed to venture capital investment. The cost of self-funding and loans is obvious. When it comes to venture capital investment, the price is the share of your business you hand over in exchange for an investment. While the process of seeking venture capital funding is relatively straightforward in principle, it can be very different in practice!

Find an investor

Many people assume that all venture capital groups will consider any investment put before them. Some will consider a wide range of investments, while others focus on specific areas and specific types of business. So, the first thing to do when looking at venture capital funding is to match your business/funding requirements with the criteria used by different venture capital groups. In effect, horses for courses.

Present your business plan

If you’ve got to the stage of presenting to a venture capital group, then it is safe to say you either have a successful growing business or a great idea. At this stage, for an existing business, you would look to present a summary of your start-up history and details of your plans/forecasts for the future.

If you have jumped straight to venture capital funding to cover your business start-up costs, you need to have a detailed business plan and be able to stand your ground during negotiations. While venture capital companies regularly spend billions of dollars a year, they can sometimes drive a hard bargain.

Due diligence

Whether theoretical or already operating, every business will need to go through a process known as due diligence. This is a check to see that all information in your business plan is credible and look at the management team, market, products, and services. Then we have the subject of profit forecasts,with many venture capital companies also looking at future investment and exit routes.

Negotiating terms

Once you are past due diligence, it is now time to negotiate the terms of an investment by the venture capital group. In some cases, this investment may be structured to include equity, loans and short-term liquidity requirements. Again, this is where you need to stand your ground, demonstrate your in-depth knowledge of the business and your markets and get the best deal possible.

Securing investment

As we touched on above, many venture capital groups will be looking at future investment opportunities and exit routes simultaneously with their initial investment. To encourage and incentivise management, milestone payments and funding rounds are regularly discussed. This ensures that all parties are looking towards the same goal, a successful long-term viable business.

In some cases, you may require outside assistance when presenting your business plan to venture capital groups – there will be a cost to this. There is no hard and fast rule regarding this cost which will depend upon the size of your business and the level of work required. However, you would be looking in the thousands of dollars and potentially tens of thousands.

Crowdfunding

Many people cover the costs of setting up a company by instigating crowdfunding offerings. In simple terms, crowdfunding platforms offer a means of connecting those looking for investment and those looking to invest. As they effectively miss out on the “middleman”, the relative cost to business owners is significantly reduced. There is still a need to create a detailed business plan with cash flow and profit forecasts. This is the only way in which you can present and promote your business idea.

Such has been the success of crowdfunding platforms, compared to traditional business loans, that many large worldwide banks are now taking stakes in successful crowdfunding operations. However, when looking at venture capital groups and crowdfunding platforms, there is one other aspect to consider. Venture capital groups will likely look to take an active role in managing and expanding your business, while crowdfunding investors tend to be passive.

Traditional business loans

Traditional business loans are still popular even if their market share has come under significant pressure of late. While much will depend on the size of the loan and the structure, there are some costs to consider:-

• Set-up fee which can run into thousands of dollars
• Headline interest rate
• Additional management charges

Earlier, we suggested that many business owners tend to look towards self-funding, outside funding and business loans. In theory, a successful business should allow you to repay your business loan without giving up any equity. However, in practice, you will likely be asked to put up collateral that may be at risk in the event of default. This again reflects the need to find a balance between debt and equity, active and passive investors. There’s a lot to think about!

Looking to the future

One of the main challenges many business entrepreneurs face is a reluctance to give up on their “business baby”. Unfortunately, we have seen instances where this issue has led to the ultimate failure of what should have been a successful venture. So, there are numerous issues to consider, such as underfunding/overfunding, debt/equity and active/passive investors.

Looking at the cost of setting up a company in isolation will likely blow your mind. Consequently, it is advisable to cut this process down into more manageable chunks, which you can focus on in isolation. Ultimately, everything will depend on the business idea and its long-term viability. Whatever the economic outlook or concerns for the future, there is always funding available for good business ideas.

If you want to know about what is enrolled agent then an Enrolled Agent is a tax professional with unlimited practice rights (empowered by the US Department of Treasury) to represent taxpayers before the Internal Revenue Service (IRS) at all administrative levels. In other words, an Enrolled Agent is a tax specialist who has the right to help you as an individual or your business with any tax issue.

The Enrolled Agent title is the highest awarded by the IRS, and these folks have the right to represent clients in any IRS office or State. They have the right to work across state borders because their designation is at the federal level.

Enrolled Agents help with tax issues that include audits, collections, and appeals. The only place an Enrolled Agent is not permitted to stand on behalf of his/her client is in the tax court. This is because that practice is limited to the members of the Bar of the Court. A Tax Attorney is the ideal fit for court cases.

There are two major ways by which an Enrolled Agent gets licensed:

By taking and passing the three parts of a stringent and comprehensive examination known as Special Enrollment Examination (SEE). This exam covers all aspects of individual and business tax laws including tax representation, practices, and procedures. To maintain their status, all Enrolled agents are also required to take 72 hours of continuing education, this usually includes 2 hours of ethical or professional conduct each year.

A more popular way to become an Enrolled Agent is if an individual has worked with the IRS for 5 or more years, then they can attain the Enrolled Agent status without taking the Special Enrollment Examination.

Hitherto an Enrolled Agents have all representation rights before the IRS, they are expected to show their proficiency in all areas of taxation, representation, and ethics to the IRS.
Since the Enrolled Agent status is the highest awarded by the IRS, you can be confident that they will get the job done. Moreover, they handle tax matters daily which differentiates them from you or a simple tax preparer.

Here are some of the benefits of hiring an Enrolled Agent

They are Tax Experts: Since Enrolled Agents are required to focus only on tax and tax-related issues, they have specialized knowledge. i.e., they are well versed and have a good understanding of the federal tax codes which can be a dire strait for most individuals and businesses.

Enrolled Agents ensure that your returns have a lower risk of getting fined or audited by helping you manage the technical issues. They differ from ordinary tax preparers in that they possess the authority to prepare more complex returns.

Enrolled Agents take continuing education courses every year to keep up with the changing tax code. They also utilize research tools that they usually have at their disposal to monitor updates.

They save you time and money: Preparing a tax return can be unsettling especially with the way the tax code changes each year. Moreover, you might not have the luxury of time to read the volume of materials that are added to, or deleted from the tax code each year. There is also a high chance that you do not have access to the various research tools available to Enrolled Agents.

Therefore, employing the service of an Enrolled Agent will save you from lots of guesswork that can lead you into the Internal Revenue Service’s net i.e., getting audited. I bet the thought of that can make an average American taxpayer cringe. Instead of putting yourself in an avoidable mess, you should seek the help of these Tax Experts.

Competitive costs and fees: Even though Enrolled Agent is the highest status awarded by the IRS, they are more competitively priced than the Certified Public Accountants (CPAs). The Enrolled agents have lower overhead and specific tax expertise making them deliver quality service to clients at a very good price.

They are not limited by state: Another advantage of hiring an Enrolled Agent is that they are not limited by geography, hence you can employ an Enrolled Agent from another state in the country to help you with your tax matters, or even still you can employ an enrolled agent to file your returns in more than one state, unlike the CPAs that can only practice in the state in which they are certified.

The other benefits that an Enrolled Agent affords you includes:

Suggesting ways for you to save on taxes.

Helping you make good financial plans.

Serving as your tax advisor to answer any of your tax queries, and break down complex tax codes for you in a language you can understand.

Standing in your stead before the IRS.

To sum up, seeking professional help on matters that you do not have much knowledge about will save you a whole lot. Now that you know what Enrolled Agent is all about and how they can be of help to you and/or your business, you shouldn’t hesitate in employing the service of one.

Businesses in the 21st century are all about planning and thinking of the entire world as one global market. Get started in the right way if you’re looking to grow your business! For entrepreneurs, the task becomes a bit harder without the market experience. Make sure that the business remains organized over the years to get massive growth. At times, people start a business thinking that they’ll open the business & it will start producing money, only to find that making money is way harder than expected.

Starting a business from the scratch requires analytical thinking and it includes detailed record-keeping. Take some time out and plan out the right steps to achieve success! Avoid any kind of misadventure at the start by planning out the business operations & their progress. Businesses end up gaining customer loyalty with the right strategies!

For entrepreneurs, it is important to be aware of the competition and improvise on the business tactics. For example – migrate to the cloud to cut down on IT infrastructure costs and keep data in a protected environment. You’ll work harder for yourself than for someone else, so prepare to make sacrifices in your personal life while establishing the right kind of business. This guest post will provide steps for new entrepreneurs to get started with their business rightly.

 To achieve business today, you would like to be flexible and have good planning and organizational skills. Many of us start a business thinking that they’ll activate their computers or open their doors and begin making money, only to seek out that creating money during a business is far harder than they thought

Table of Contents

1. Define Business Plans & Goals Effectively
2. Do Analysis of Competition in the Market
3. Adapt to New Technologies to Gain the Competitive Edge
4. Plan as per the Organization Needs
5. Improve the Workspace for Enhanced Productivity
6. Improve the Scheduling System
7. Plan the Marketing Campaigns in Advance
8. The Bottom Line

Entrepreneurs get attracted to the concept of earning money on their terms. But, there are challenges faced in the journey. They need to wear multiple hats under different circumstances & the tasks might juggle the entire day. To achieve the goals, these experts need to burn themselves out by doing meaningful activities for the business progress. Successful businesses keep their organization running smoothly & well-oiled even in tough times. The creation of the right kind of business strategy will help entrepreneurs achieve the desired set of success in their business life.

Define Business Plans & Goals Effectively

The first & foremost task of businesses is to define the business goals and come up with an achievable plan. Once the entrepreneurs have a clear roadmap in front of them, it becomes easier to devote the resources in the right direction. The selection of business strategy needs to be as per the goals set by the organization and thus using relevant software will make the task easier. Businesses need proper planning to be on the right track and a defined goal is keeping the plan visible to entrepreneurs in day-to-day activities.

Evaluate where the business stands by sticking to your plan and thus make necessary changes to get back on track. The use of a relevant tool or professional assistance will help define the plans correctly.

Plan as per the Organization Needs

The business requirements change as per the organizational needs and the businesses need to be on their toes to make the right decisions. Some of them will require weekly or monthly planning, while others might need yearly planning. Businesses need to make a list of things that need to be done instantly and thus plan out the approach as per the needs.

Planning is part of any successful business and the organizations need to be aware of the regular needs. Use the right kind of business accounting software or project management tools to plan the stock & management expenses – thus increasing cash flow.

Do Analysis of Competition in the Market

One of the vital aspects of starting an organization is to gather the right information about the competitors. It will help entrepreneurs plan out the moves rightly for their startup and decide on making the progress accordingly. Also, it is important to keep track of the competition so that they are not ahead of you at any time!

Learn from your competitors to be relevant in the market and at times it helps the business owners to come out of a difficult situation. Competitive analysis can be done in multiple ways and the organization needs to select the right kind of approach. The businesses ahead in the race may be doing some right that can also be incremental for the startup.

Adapt to New Technologies to Gain the Competitive Edge

Technology is everywhere today and it is hard to imagine a life without the use of some kind of tool! There are different kinds of tools in the market that can assist businesses to use the resources rightly. Select the kind of tools that suits the business needs and also keeps them intact in the race. Gain the competitive edge by adapting to the right set of technologies available in the market.

Do not fall back on the in-house IT infrastructure as it will cost a startup highly and also consume resources at a higher rate than expected. Pick the right technologies so that you’re at par with the existing businesses in the use of the right resources.

Improve the Workspace for Enhanced Productivity

Entrepreneurs need to create a supportive environment for the business to make progress. There are certain techniques and tools to improve the workspace and thus result in enhanced productivity. Small things like adding greenery around the office can contribute to enhanced productivity by 15% through improved concentration.

To achieve the desired level of productivity in your organization, several factors need to come together. One of the top aspects in improvement in workspace environment and it can contribute to the overall progress hugely.

Improve the Scheduling System

Entrepreneurs in small businesses need to do multiple tasks at some point in time! It includes attending meetings, video chats, or take part in the planning process, or discussing with clients the future of the business. They need to come back and forth to be on time for the set schedule. Using a reputed scheduling system can help entrepreneurs manage multiple schedules in a day.

The continual adjustment in the schedule can be a waste of time for entrepreneurs when they already have a lot to do. Look for the right tool that can help you schedule the entire business or especially the daily routine for you.

Time management skills are critical for fulfillment within the business world. If you’re a new business, there are all kinds of deadlines set by clients that you simply must adhere to. Knowing the way to communicate effectively, prioritize your work, and put aside a lot of time to finish tasks is what is going to build your reputation and make people notice your company.

Plan the Marketing Campaigns in Advance

Marketing is a crucial part of the rise of businesses and in the modern era, it has multiple dimensions to it. The planning of marketing campaigns needs to be done as per the business need & thus come up with the right plans to market the business. Digital marketing has become the new norm for businesses and thus sets the plans or campaigns early for timely execution.

Marketing plans require deeper analysis of the customer needs and ways to reach out to them with assistance! Stay in touch with marketing experts and use the latest technology to market the business campaigns rightly.

The Bottom Line

Entrepreneurs need to be creative & also patient in implementing the plans rightly. It might take time to get the right results and it is not worth spending resources without proper management. Adapt to new technologies to be relevant in the market and gain a competitive edge. Reach out to professionals who can help you plan out the effective steps for your business to be relevant in the market and gain profits. Include modern methods & techniques in your business planning to progress on the right track.

An entrepreneur is someone who creates and grows their own business, is held liable for all the risks and reaps all the rewards. If you’re new to the business world and can’t wait to share your idea with consumers, there’s a lot to find out before launching your startup. Keeping organized and on top of things of your operation from the start will minimize the danger of anything going wrong, helping to keep your business running smoothly.

No matter what kind of  business you are planning  to run, it’s vital that you simply keep your operation organized. Doing so will instill trust with consumers and clients, helping to make a reputable and successful brand. It is often easy to lose motivation when getting your idea off the bottom , but with the help of these organizational  tips above will provide structure for your startup.

Automation is the modern and innovative tool for business. With the use of automation, work becomes easier, more efficient and provides customers with better experience. Automation tools with highly efficient staff combined can streamline everything from internal processes to marketing to customer relations. Save your precious time and energy with our powerful list of automation tools for small businesses. Read on and discover how automation can help your small business grow.

Invoicing

It is crucial for small businesses to stay on top of their accounting and invoicing. With automation in place, recurring invoices, centralized timesheets and automatic tracking of payment can be streamlined. Customers will feel at ease with credible, reliable and consistent invoicing which can lead to repeat transactions and more referrals.

Customer Support

Automated customer support provides a personal touch to clients while making it easy for them to find solutions to their concerns and requests. Processes built through automation can provide the highest quality of customer care.

Setting up Appointment and Scheduling

Scheduling meetings and appointments with different customers can be troublesome and nobody wants a missed or rescheduled meeting. A simplified yet efficient scheduling software manages your everyday activities while building trust with your customers. Also we need to do quantitative vs qualitative research to reach potential clients. All the Top 10 IT companies in World are doing research to get more customers or clients.

Stocks and Supplies

Save time and energy by automating your office supply orders. Shorten your work week and free yourself from submitting the same supply order manually every month. Have your orders sent out automatically without the need to pile up and with no hassle.

Accounting and Finances

E-banking and e-accounting is a great help in most organizations today. Companies opted to automate their financial operations for easy tracking of payments and receivables. In property management accounting you can automate all sorts of financial activities like paying rents, invoicing, handling receipts and even prospecting for potential renters. You can even go the extra mile by reminding people who use their cards to monitor expiration and renew on time thus avoiding late or canceled payments. This will save you time, money and effort and will make your organization more efficient.

Employee Events and Engagements

Part of automation is working remotely which can be difficult when you’re used to doing your job within the four corners of your office. Being isolated at home can lead to feelings of disconnect and sudden drop in employee morale. Investing in virtual events to increase employee morale shows that you care about your staff as humans, which in turn will boost productivity and growth of the company.

Social Media Management

A successful social media strategy can be achieved through regular and consistent posting. With automation tools, preparation and advance posting on multiple networks can be done with just one click or tap. This can save your precious time and energy especially for small company owners who manage their business profiles on their own.

Sales

most likely the biggest advantage you can get from automation is getting the sales pipeline organized. Once you determine the stages in the customer journey very well, the automation software will recognize movements inside the sales funnel which can automatically make  simpler moves without the help of any salesperson or agent.

Prospecting and Onboarding

Client onboarding is quite similar to customer support. Automatic prospecting and  onboarding software aids in introducing your customers to basic concepts and functionalities rather than having a human representative waiting to provide additional support if needed.  Since automation simplifies  your product or service, there’s no need to waste time and invest in additional resources like customer support representatives.

Backup Files

Losing all the customer information, employee data and financial reports  related to your business can be an absolute disaster. With almost all  important segments of business being automated, having proper backups for all your files is invaluable. One  purpose of automation is to create backup files to avoid any human errors and even the basic file storage  usually has this functionality so this won’t be a problem. 

Gathering Feedback from Customers

Feedback and criticisms  helps your business  grow. However, collecting it can be a very tedious and time consuming task. Automation software like SurveyMonkey allows you to create, deliver and record the results of surveys quickly and efficiently. You can also send your survey via mobile, web or social media in a friendly format that clients can fill out effortlessly.

There you go. No doubt,  automation saves time, resources, effort and energy  plus it also boosts the efficiency of your business in several different areas. Some tasks like creating content, building relationships or supporting customers can’t be fully automated yet and need a human touch. But for work that your employees find tiresome, repetitive and boring, let automation handle it so there will be more room for work-life balance. You might need additional funds or  some investments to get crucial areas of your business sufficiently automated, but it will surely pay off.

If you are a business, you need to operate with circumspection. No, not because it’s a guarantee for growth. Because it could save you from failing. It may be hard for you to grasp, but chances of failure are always there, even when you are an established business.

As always, small firms are more likely to fail than large firms. So, if you own a small company, you might find value in this article.

Here I am listing down three ways a business, especially a small business could fail.

Not understanding data

There’s a reason big data is ubiquitous in today’s business world. Big data or pattern recognition can help you better understand your customers, their preferences, the most opportune time for approaching them, likelihood of bagging leads and the odds of closing a sale. But so many businesses – mostly small-scale and locally owned – underestimate data.

The biggest problem of ignoring data is inability to understand the pace of scaling. The economics of scale tells us competitive advantage lies in small scale and in zero scale. Here’s the link to a research paper that studied the competitive advantage of home-based businesses. The researchers concluded that repair services that advertise on Yellow Pages and hold membership of a national chain don’t always get positive customer ratings.

It’s only a misperception that small scale lacks competitive advantage. Truth is, competitive advantage is always there, and for all types of businesses. However, identifying it is heck of a job. Unless you dig into big data, you can’t identify it. So, never make the mistake of thinking big data is not important, especially if you are a small business. Install state-of-the-art software to collect customer data and see if you can find any pattern there.

Under/overestimating cash supply

Small businesses need to be realistic. Large businesses can make mistake and learn from those mistakes. But for a small business, a mistake can be very upsetting and financially disastrous. One mistake many small business make is they either underestimate or overestimate their cash reserve.

What happens when a small business overestimates its cash reserve? It spends on unnecessary stationery items. Or might hire people who’d later become a burden on the company. Every business – regardless of size and scale – must have realistic goals. Overestimating cash reserve causes a business to pursue unrealistic goals.

Underestimating the cash reserve is equally troublesome. It limits growth opportunities. If you are too shaky and hesitant and refuse to spend money, business will never grow. So, understand what your business requires for steady growth. If it means hiring new staff, go for it. Just make sure they are efficient. If it means opening new branches, go for it, but only when you are certain new branches will give your more business than the existing branch.

The bottom-line is you should be level-headed about your business. To think you have enough money and to think you don’t have sufficient operating balance are both mistakes you want to avoid.

Outdated marketing practices

The advertising industry is growing at a phenomenal rate. Brands are changing their outdated strategies to catch up on this growth. As a small business, you don’t want to be left out as employing the right marketing strategies could mean your ascension into a brand.

You need to revamp your existing marketing techniques. Don’t discard the strategies you are following now. Improve on them. Let’s say for example, you are a retail merchant and you have items on display for customers. Are these items placed strategically? Strategic placement means placing low-selling items in high-traffic areas.

This is just petty technique. You can churn out custom techniques yourself. Local restaurants, coffee shops, grocery stores often provide free WiFi hotspot to customers so that they arrive more frequently at the stores. For B2C stores operating in consumer retail, coupon deals are a great way to increase outreach. B2B companies can harness webinar marketing and connect to large companies who might one day become their clients.

These are not copybook marketing strategies. These are niche-specific, industry-specific and most importantly, company company-specific. Archaic marketing techniques, on the other hand, are too generic to rely on.

Marketing is evolving

That’s right. You need to keep pace with this evolution in order to stay on top of things.  Many small businesses in the United States (and many outside the US) don’t understand this and as a result, they lose it.

Conclusion

It’s wrong to think small businesses lack competitive edge. The truth is, some opportunities are exclusively available for small businesses. The three tips discussed here can deliver insight into the fails that small businesses must be aware of. If a business avoids failing and excels at marketing, it’d have no difficulty getting clients. Hence, if you are a small business owner reading this, save yourself from failing.