The process of taking over another company can be a very exciting time for you and your business, but it can very quickly turn into an unpleasant experience with serious lasting consequences. Here are some of the biggest mistakes made by companies during takeovers:

• Inadequate due diligence – You need to have done extensive research into the finances, existing contracts and liabilities of the company you are buying in order to avoid lawsuits, extra expenditure or loss of sales.
• Ignoring the culture of the target- If you underestimate the importance of culture then you are likely to experience some clashes, as no two companies will ever seamlessly fit together. To avoid misunderstandings and conflict from the beginning it is best if you set down a clear and consistent policy favouring the dominant culture.
• Forgetting to keep customers informed – You will need to reassure customers that the takeover is in their best interests because your competitors will attempt to unsettle them during this period.
• Failing to retain key employees – It is possible that competitors will also try to steal your best employees at this time by playing on insecurities they have about their own future within the company. You must reassure them and also be forthcoming about job cuts because an atmosphere of uncertainty will lead to false rumours spreading.
• Overpaying for target – Do not get carried away and end up paying far above the market value of the target, especially in e-business where it can be easy to over-estimate the value of a company because of the amount of potential you believe to be there.
• Bad leadership – Without a clear and powerful leader to drive the takeover forward it will stagnate. Make sure that if you are creating a combined managerial team from the two companies everybody is sure of their role.
• Not understanding foreign markets – A cross-border merger can easily fail if you simply assume that things are the same in another country. Legislation or consumer attitudes towards products and advertising can be vastly different.
• Poor IT integration – This process is never as simple as just swapping one IT system for another. In order for the transition to go smoothly it will require a lot of planning.
• Failed brand consolidation – It will be important for you to have a clear idea of how you want to manage the new brands you acquire. Maintaining a brand can be expensive in marketing terms so you may wish to drop some entirely.
• Mis-timing the takeover process – You will need to get the timescale just right in order to be successful. Rushing to completion could ultimately result in a poor merger with aspects overlooked, but going too slowly will only extend the period of upheaval further.

The best advice for completing a takeover successfully is to consider all the areas that could potentially go wrong and make sure you have a comprehensive action plan to guide the company through this period.

Hat-tip to Robert Moore from Business Data International Limited

Here is this week’s news round-up for home business, micro business, sole-traders, freelancers, self-employed and any one who is interested in small business news from the United States:

• National Federation of Independent Business promotes YouTube contest: In a bid to gain attention for the millions of small businesses around the country, the National Federal of Independent Business has announced a video contest with entries broadcast on YouTube.
• AT&T is helping small businesses create their own Web sites: AT&T Inc. is unrolling a new slate of Web hosting services for small- to medium-sized businesses.
• BBB warns small businesses about online funding options: The Better Business Bureau has issued a warning to small business owners who could fall victim to fraud schemes.
• Entrepreneurial Edge: Despite Downturn, Financing Exists for Small Companies: While it would seem to be difficult for most small companies to raise money, it may now be easier for small businesses to raise cash by offering equity than through loans.
• Small Business Fight to Scuttle Tax Proposals: Advocates for small businesses are fighting changes in tax laws that the Bush administration says are aimed at cracking down on cheating, particularly by the self-employed.
• Small Biz owners nervous about economy, study says: America’s small businesses are extremely anxious about the economy and are planning for a recession, according to a National Small Business Association survey.
• IRS Auditing Fewer Big Companies: The tax audit rates of the largest companies are less than half what they were 20 years ago while more small and mid-size businesses are coming under scrutiny, according to an organization that monitors the Internal Revenue Service.

As always this list is not exhaustive, but I hope it will give you a little overview. — ST.

Here is this week’s round-up of technology news small business owners may find informative, useful or entertaining:

• The Business of Startups Is Business - Many successful new web startups are focusing on providing services for other companies
• Microsoft Increases Small Business Financing - In an attempt to combat the economic slump, Microsoft are increasing their number of small business loans by 60%
• Economic Woes Not an Issue For Google - The search giant reveals impressive first-quarter figures and appear unaffected by the slowing economy
• SaaS: more effort required - An article examining the uptake of Software-as-a-Service in India
• UK ISPs Could Face Government Broadband TV Tax ISPs Could Face Government Broadband TV Tax - The cost is likely to be passed on to consumers
• How Social Networking Could Kill Web Search as We Know It - An article about how social networking may change the way we search in the future
• Google experimenting with accessing ‘deep web’ - This could allow searchers to skip past registration forms on websites
• New spam site found every three seconds - Figures suggest that 92% of e-mail sent so far in 2008 was spam
• 12% of consumers ‘borrow’ unsecured Wi-Fi - You can make sure no-one is stealing your wireless connection by making it secure
• Watch the sunset from Google Earth 4.3 - A fun new feature in Google Earth allows you to simulate sunrise or sunset anywhere in the world
• Concerns raised as government demands universal wiretapping - Potentially alarming news from Australia about legislation that would allow the Government to intercept the communications of their citizens, following on from the news earlier this week that Australian bosses could be allowed to access the e-mails of employees without consent
• It Takes a Cyber Village to Catch an Auto Thief - An interesting story about how the joint collaboration of various on-line communities and social networks led to the capture of a car thief in just 48 hours

Here is this week’s news round-up for home business, micro business, sole-traders, freelancers, self-employed and any one who is interested in small business news from the United Kingdom and Ireland:

• Self assessment simplified: Tax returns will be made simpler and the deadline will be pushed back in a major revamp of self-assessment.
• Small firms to get credit advice: Small business owners are being invited to a week of events to help them cope with the continuing credit squeeze.
• Follow Scotland’s example on enterprise, urges FPB: The FPB is urging the UK Government to follow Scotland’s lead on small businesses, following new research which suggests it has bucked the trend south of the border by marking a fall in the number of firms going bust.
• FSB urges local authorities to protect their communities: The Federation of Small Businesses has launched a Small Business Manifesto to press local authorities to champion small businesses ahead of local elections in England on May 1.
• Government ignores its own rules on better regulation: The Federation of Small Businesses (FSB) says that government is failing to meet its commitments to common commencement dates and to reducing the regulatory burden.
• Hutton’s small business aid given short shrift: Government plans to aid business start-ups were given a cool reception by business leaders today, who said that the climate for entrepreneurs had got ‘distinctly chillier’ over the past year
• SME Gets Ministers Backing On Zero VAT For Health Drinks: Simon Long and Philip Benson are two young university graduate entrepreneurs, who while spending a year in America as part of their degree, discovered the Juice Bar concept and decided to bring it to the UK.
• Unsung heroes of business support to be rewarded: Some of the UK’s greatest champions of the small business sector will walk down the red carpet this week to take part in a unique award ceremony which celebrates those who have done most to support the nation’s entrepreneurs.

As always this list is not exhaustive, but I hope it will give you a little overview. — ST.

Purchasing flowers online has grown increasingly in popularity in recent years as people have found themselves with less leisure time. The convenience of being able to quickly send flowers to someone means it is now commonly being used as a networking tool. If you are able to provide a service which is reliable and easy to use then it is possible that you could break into the market.  

You have two options when starting this type of business. The first, and probably easiest, way is to form a partnership with a large flower supplier. You will take the order, forward it to the supplier and collect a small commission. The other way involves more work on your part and will require you to take the order to an offline flower shop, sometimes even delivering the flowers yourself if the customer needs them urgently. In order to be successful you will probably have to develop a combination of them both.  

Skills needed: There is no specialist skill needed – you could even use OnlineOffice to set up your shop.  You must be familiar with order fulfilment if you are taking a hands-on approach.  

Business environment and set-up cost: If you are affiliated with a supplier then it is quite possible for you to trade internationally using their delivery network. The set-up cost for this business could possibly be very low, depending on how involved you want to be. You will need the standard computer equipment (if you don’t have it) and an outstanding website. If you want to process orders yourself then costs could be much higher when inventory and equipment is factored in. Expect the start-up cost to be between £2000 and £10,000, plus you will need to set aside £2000 to £5000 for marketing purposes.  

Marketing Techniques:  

• Use a ‘reminder’ calendar feature on your website that customers can opt-in to and add important dates
• Run regular special offers and provide discounts for repeat orders
• Participate in the pay-per-click schemes of the popular search engines
• Become mutually linked with gift sites and link directories
• Use OnlineOffice to set up web-site, blog and online shop to promote your business online

Complimentary business ideas: You could offer small gifts or gift baskets to go along with the flowers. If you opt for the hands-on approach, you could charge extra for flower arranging and do it yourself.  

Notes: It is very important for you to become an affiliate of a quality supplier in case you are unable to complete orders yourself for whatever reason.  

Online examples & resources:  

• Bunches – A very nicely laid out example of a good florist website
• Bloom Central – A large directory of on-line florists

Here is this week’s news round-up for home business, micro business, sole-traders, freelancers, self-employed and any one who is interested in small business news from India:

• Left for early action on loan waiver to farmers in JK: Srinagar, Apr 12: The CPI (M) State Secretary and MLA, Kulgam M Y Tarigami has urged state government for early action regarding waving off agriculture loans of the farmers as announced in the Union budget for 2008-09.
• Small US firms to up offshoring to India: A new breed of outsourcers are emerging in the US, who could help Indian providers to offset some of the impact of the recession on their businesses.
• CDMA development group reacts to the proposed 3G Spectrum Policy in India: The CDMA Development Group (CDG) (www.cdg.org) today commented that the proposed 3G spectrum allocation policy put forth by India’s Department of Telecommunications (DOT) will further inhibit CDMA operators’ access to spectrum in the region. The policy under review would assign 3G spectrum in the 800 MHz and 2100 MHz frequency bands, which the CDG agrees will enable the mass market deployment of 3G CDMA services to India.
• India less prone to global turbulence: India’s financial sector is likely to be less affected than similar sectors in most emerging economies by the turbulence in global financial markets, the head of the country’s central bank said.

As always this list is not exhaustive, but I hope it will give you a little overview. — ST.

There are numerous legal issues that arise with the formation of a small business. It is likely that you will need the help of a lawyer at some point early on, whether you are in the process of determining the legal form of your business or choosing a name. You may also find that you need their help down the line when dealing with complex issues like leases, contracts and intellectual property or if you are subject to litigation.  

Your lawyer may be one of the key people that you turn to for advice and therefore it should be someone you can talk to comfortably and exchange ideas. It may be necessary for you to change lawyer if your business needs change, although this could be an expensive process. Here are some helpful things for you to remember when recruiting a lawyer:  

• Get recommendations on good lawyers from people you know and whose opinion you trust
• Try to find lawyers who specialise in small business affairs
• Consider interviewing more than one lawyer (although some may charge for this)
• Do not ask for legal advice during the interview, the purpose of it is to determine how well you get along with the lawyer
• Find out about the types of fees they will charge (hourly charges / flat fees / monthly retainer / contingency fees)
• Ask the lawyer for references (preferably some small business owning customers)
• Use the knowledge you have gained from the interviews to make an informed decision about which you would rather work with on a regular basis

Here is this week’s news round-up for home business, micro business, sole-traders, freelancers, self-employed and any one who is interested in small business news from Australia and New Zealand:

• Simon Hendery: Targeting SMEs sensible play by Telecom: It’s show and tell day for Telecom. The company’s top brass are in Sydney briefing analysts on their strategies for continued growth and profitability. In the newly regulated telco environment, and with the traditional voice call…
• Not all finance firms are struggling: The “flight to quality” by spooked finance company debenture investors after several high-profile collapses has driven some companies to the wall but had a surprisingly small effect onoverall funding for the sector, Reserve Bank data…
• Retailers fail to click to new trends: AUSTRALIAN retailers are lagging behind the rest of the world because they refuse to embrace the internet and sell their products online, an expert says.
• A business perspective: Michael Barnett Chief executive, Auckland Chamber of Commerce “Like it or not, New Zealand relies on foreign investment and I fear this decision could tarnish our reputation and cost us investment opportunities over and above…
• Tax cuts but not at any price: Tax cuts are overwhelmingly popular with Kiwis - but they don’t have to be big, and they shouldn’t lead to rises in interest rates or cuts to social spending. New research by the Business Council for Sustainable Development shows…
• Services sector index barely moving: A measure of activity in the services sector shows it to be only just continuing to expand. The monthly Bank of New Zealand - Business NZ Performance of Services Index was down to 50.8 in March, 4.8 points lower than in February…
• NICTA weak at the knees over $25m funding: NICTA revealed today that it has received an AU$25 million funding boost courtesy of the NSW government, as part of an initiative to put the state back in the ICT spotlight.

As always this list is not exhaustive, but I hope it will give you a little overview. — ST.

When my wife went to university in London in the eighties one of her professors was of the opinion that the education was wasted on women, since they would leave university, get married and have children. While nobody says these things anymore in public, we still seem to have the same mentality.

Today I travel around the world and speak with all kinds of people about micro-business, like home-business. Often the conversation includes the so called “skill shortage”, felt especially hard in Australia these days. When I question this alleged shortage, I’m always surprised about how little consideration is given to well skilled and educated parents - mainly women - sitting at home looking after the family.

After one of these conversations today, I was reminded of this professor and began wondering if he was right with his opinion in the final analysis? Trivially, his assertion that educating women is a waste, is completely nonsensical, but the final result to the economy seems to suggest his analysis could be right. How else can it be explained that we ignore this massive “skills resource” sitting at home.

The technology we at WinWeb have developed allows for work from anywhere at anytime, others have done the same in other areas? Where is this “skill shortage”? The truth in my opinion is more the fact that we often block this remote working possibility from our minds, but why?

If you consider the skills potential of parents, if each parent would only contribute one hour on average per week to their learned professions. This would be a staggering number of man hours per week.

The benefits for the home working parent would be very tangible too. They could show a almost uninterrupted work history, stay in touch with their profession and would therefor find it much easier to get back into full-time employment after the kids have grown up.

To often my conversation partners look somewhat bewildered at my initial suggestion, but then often admit they had never thought about this possibility.

It is not a waste to educate women or any parent, it is however a waste to treat parents as if they do not exist in work terms. I consider it an insult to each parent and unbelievably damaging for our economy. — ST.

If you are passionate about photography and feel you have a talent for it, you may be able to make some extra money from doing it professionally. You could offer numerous photography services ranging from weddings and graduations to architectural or underwater, depending on your preferred speciality. Part of the service you will provide includes offering the photos in various formats – both digitally and as a physical product. You could charge extra for additional services like framing.  

Skills needed: You will need highly professional photography skills and some experience of using digital imaging software to customise pictures according the needs of the client.  

Business environment and set-up cost: The majority of your clients will be located near you for logistical reasons. The set-up cost consists of the usual equipment (computer hardware / software) and website development / hosting expenditure. On top of this there will be the cost of blank media and packaging materials. You will also need to allocate a budget for advertising in order to promote your website. The overall start-up cost will vary from two to four thousand pounds.  

Marketing Techniques:  

• An impressive gallery of your portfolio is your most effective weapon
• Use viral marketing to allow visitors to your web-site to easily show their friends images from your gallery
• Consider participating in the pay-per-click schemes of popular search engines, or at least make sure your website is maximised for search engine optimisation
• Add your website to appropriate web-rings and link directories - there are a wide range of categories which may require the services of a quality photographer
• Use OnlineOffice to set up web-site, blog and online shop to promote your business online

Complimentary business ideas: You could try to appeal to the tourism market by selling stock photographs and postcards of landmarks  

Notes: The main problem you will face is initially trying to gain recognition for your talent. Work out the target market that is most appropriate to the services you are offering and concentrate fully on trying to attract them.  

Online examples & resources:  

• Bob Tuthill Photography – A good example of a professional looking photographer’s website
• PopPhoto – Digital camera reviews and photography news
• Webshots – An online gallery for photographers around the world to share their work