See more small business interviews @ winweb.tv

Starting a small business from an office or home is a great way to earn some extra money or make into your full-time occupation.

As we all know there are many things to consider and the take into consideration. WinWeb has compiled a great list of 100 tips to help you to check out your business idea. Have a read and find out how well you are prepared.

100 Small Business Start-Up Tips @ WinWeb Business Blog.

I was reading one of my friends blog post about a “cool” small business resource launched by AT&T (NYSE: T – AT&T, Inc.). It sounded great and I was intrigued to find out more about it.

As most of you know, I usually don’t write “negative” articles, but after 30 years being a small business guy, this website really got my back up.

As it turns out this is a very bad example of a large corporate trying to offer something in the micro-business market, without really understanding what a small business is and what its needs may be.

The part that really got me, was the “Tips & Tools” section!

Absolutely no content apart from product information and the usual sales spiel. Under the subsection of “Productivity” you will find one(1) – yes no typo, that is one .pdf file – of in my oppinion no more informational value for small business, than putting “collaboration tools” into google and reading the first page headlines only. OK – sorry – that comparison would probably be unkind to Google.

Under the subsection “Starting Up” you will find zero, nothing or in other words no content what so ever. But I have to admit, AT&T is so old and so big, what could they possibly know about starting a business!

To go on with the rest of the website would be a waste of your and my time and an insult. The site was launched allegedly on July 16th, no content – these guys are not even trying? The server was unbelievably slow BTW, but all the sales & product related content was there, surprise, surprise!

I understand that the micro-business and home business sector is the only sector with growth potential left for these big corporations, but they still have a long way to go before they understand how to engage with small business. I don’t think insulting your future customers with these attempts to “pretend small business interest”, other than selling ones product and services, is really a good way to go about it.

If you’re just interested in selling your products and have no interest – IMO as in this case – in being part of the community, then be honest and say so. This would be a better approach for both parties.

Suffice to say, if you are large corporate reading this, have a look at the site as it is a perfect example of how not to do it. – ST.

The thought of starting a business can be a daunting prospect for anyone, regardless of experience and financial situation.

Breaking down the early stages into manageable steps will help you see it’s not as complicated as you might think. This brief overview will cover a few things you should consider if you are looking to become your own boss and how to go about it.

Read on @ winweb.com

So far we have provided tools, like our OnlineOffice, to help our clients to solve their small business problems, now we actually solve these problems for our clients in an integrated way, leaving them to explore their entrepreneurial vision and look after their business, not their admin and IT.

I am very happy to announce that WinWeb is releasing ‘BusinessServices’ – a new business services offering for the freelancer, home business and small office market. This is another world-wide first for WinWeb and every business service includes free access to WinWeb’s OnlineOffice as a bonus.

These services include bookkeeping, call & fax management, business address, mail hold & forwarding, web site design and maintenance, SEO – search engine optimization, payroll, graphic design, export services, online marketing and PR services, online presenters, online shop setup and maintenance and as before many Pay-As-You-Go services like parcel service, translation service and many more.

We have been training a large number of virtual assistants in all aspects of our service offerings for months and we are very confident we can provide a professional and extremely cost-effective service to all our clients. These services will be available in the following regions, the UK, Ireland, United States, Canada, Australia and New Zealand, but may vary from region to region.

As an example, Bookkeeping will start at £9.85 per month plus VAT – at these kind of prices even the smallest of businesses can afford to outsource their bookkeeping. In addition to the low price, our OnlineOffice will be free for the duration of the service allowing you to keep your cost even lower, by using the invoicing software and online shop to further reduce your bookkeeping cost, since any of these transactions will automatically be processed in the system.  

Any receipts can be uploaded by fax, scanned via email or sent to our processing centre and will be processed within 72 hours of receipt.

This is just one service aimed at making you focus on your business and not on your admin. I will talk about the other services in due cause on this blog, but you can always go and have a look at them on the WinWeb website now.

Especially during these times it is essential for freelancers, home business and small business owners to focus on revenue, sales and marketing their services and products and free up as much time a possible by outsourcing non-essential admin services.

All of our services come with a best price guarantee, we will match any comparable price in the relevant regions. Almost 100% of services are provided in local markets by local personnel and not outsourced to far eastern countries – showing our commitment to the regions in which we work.

Using OnlineOffice you can save over 75% on IT cost, now with BusinessServices you can save over 90% of admin hassle and additional cost savings, making it the ideal combination for your business success – have a look today! –ST.

The BBC had a piece earlier this year advising people on, “How to cope with unemployment.”

Unfortunately it completely missed the opportunity to talk about starting a business when faced with unemployment in these financially uncertain times. Job security is at an all time low, and more and more of the media is offering advice and help to those affected.

In this article the BBC advices on issues like:

• Redundancy
• Claiming Benefits
• Looking for a Job
• Your mortgage and the risk of repossession
• Budgeting and facing your debts

It seems to me that this is an example of having a gloomy & defensive look at the future, and paints a picture of being helpless in the face of these uncertain times. There are a few pro-active points missing here:

• Starting a Home Business
• Setting up a business on the cheap
• Starting a business on the side before you loose your job

Given the fact that anyone can start a business today for less than £12/month, I can not understand why running a side business is not a standard solution in dealing with unemployment. Waiting for others to help you can turn out to be a long wait. Taking control of your own life has to be applauded and encouraged.

Micro businesses, like home businesses, freelancers and other forms of small businesses, are the future of our economy. Already SMEs contribute more than 50% of GDP, over 50% of employment and over 60% of all innovations.

It is time our media and our politicians get really down to understanding how important micro businesses are and help to foster a conducive environment for entrepreneurs. –ST.

During an interview recently I was asked what to do when you lose your job, start a business or look for a new job?

As our recession deepens the unemployment rates grow and job security is at an all time low. Being able to start a business for as low as $20.00 or £12.00 a month, may make the decision a no brainer. But is this really the only option to deal with the current economic uncertainties?

Is it really an either or situation? It is my contention that it is not.

No matter if you are looking for a job or even still have a job, the question is, how secure is any job going to be in the future? Why not run a business while you are still employed? There are hundreds of cost free business ideas around you could run on the side. It would certainly increase your financial independence and give you some more control and security in your life.

The truth is anyone can start a home business. You may not be the next Richard Branson or Bill Gates, but you will generate some addition income for your family. Many do it already and there is now reason for you not to run a little side business as well.

So my answer to the interview question was, “Why choose, do both – look for a job and run a business!” For only $20.00 a month anyone can do it – including you. — ST.

If you have decided to start your own business recently then this question has probably not even crossed your mind yet, but from a legal standpoint it is quite an important issue. The legal form that your business takes will affect how much tax you have to pay, determine who can invest in your business and also could have consequences for your personal financial security. 

There are three main aspects to choosing a legal form. The first of these aspects (and arguably the most important one) relates to your level of liability should anything go wrong. Corporations are viewed as legal entities which are separate from the people who own them. This means that only the assets of the corporation can be taken to pay company debts and not personal assets such as your house. 

The second aspect is whether or not the legal form you have chosen will mean that you end up paying taxes twice – firstly on the profits of the business and then again on the personal income you receive from the business. 

Finally, you must consider whether you plan on receiving investment into your business because some corporate structures are quite restrictive and would be unsuitable if you are expecting a large number of investors or some foreign investment. 

Here is a brief rundown on the main legal forms that small businesses usually take, but it is always sensible to check with a professional before you make any final decision. Your choice may also be limited depending on which industry you plan to enter. 

Sole Trader: This is the easiest type of business to set up and that is probably the greatest benefit of operating as a sole trader. The downside to this is that the business is not considered a separate legal entity from you so any lawsuit against the company would leave you at risk to lose everything. You are also taxed on all profit irrespective of whether you have drawn it from the business or not. 

Partnership: This consists of two or more individuals joining together to run a business. Although the business is a separate legal entity, you are liable for all debts in a similar way to a sole trader (except they will be shared with your fellow partners). Any member of the partnership can sign contracts or obtain credit on behalf of the other partners. It is important to have a written partnership agreement when you first go into business together that will detail the minutiae of the role and authority of each partner, along with how profits will be shared and what happens if things go wrong. All individuals are taxed on their share of the partnership profits in a similar way to the sole trader. 

Limited Liability Partnership (LLP):  This requires a more formal approach to business and therefore generates a lot more red tape than the previous two legal forms. LLPs are a separate legal entity registered at Companies House which also means that your accounts have to be filed with them and are viewable by anyone. However, you benefit from having limited liability and are taxed the same as a normal partnership. 

Limited Company:  This is a separate legal entity with most of the legal rights of an individual, meaning lawsuits will generally be against the company and not you. A limited company needs permission from Companies House to use their proposed name and must adopt and file the Memorandum and Articles of Association – these govern its rights and obligations to shareholders and directors. It must also file annual tax returns with the Inland Revenue like an individual, but limited companies benefit from a low starting rate of tax. 

As we slip deeper and deeper into this recession/depression one could get the impression that the business opportunities are disappearing. It is easy to fall into this trap with all the media coverage of the credit crunch, housing bubble, job losses and so on. But once you look past this and stop surrendering to the panic and fear you will find that there are many opportunities for small business out there.

In fact it is essential not to give in to this paralyzing fear and re-take control of your life and your business. All fear does, is hide the opportunities that exist out there from your view. The sign of a true entrepreneur is the inability to see problems, an entrepreneur sees only opportunities. I believe that to be true more then anything else about entrepreneurs.

So here it is, business problems equal small business opportunities and big business problems equal big small business opportunities.

Are you an entrepreneur or a worrier, if you are a worrier you are missing the best business opportunities. — ST.

You may have a new years resolution to start your own business, but as you know some of the forthcoming new years resolutions are easy to keep, some others are more challenging and most of them will be broken within the first month. So if you are thinking about starting a small business in the new year here is how I would go about it in five easy steps:

1. Define Your Goals:

When you get in your car you usually know where you want to go. It may be surprising to you to find out, that most businesses do not have a ‘formal’ goal. The problem with that is that you never arrive, because you don’t know where you want to go. What are typical goals to have?

• Make a certain amount of money a month!
• Have more time for your family and friends!
• Be at home when the children come home from school!
• Avoid travelling for hours each day!
• Have a better work/life balance!
• Be the biggest and best in you chosen field!

What ever it is, write it down and go back to it now and then, especially if your are not sure how to make a decision about a problem. Focusing on this goal is absolutely essential to your business success.

2. Get A Business Idea:

You may already have a business idea or you may be looking at something a little vague still. What ever your situation, make sure your business idea aligns well with your business goals.

It is no good to run a busy office if your aim is to be at home for your kids. If you have your heart set on a business idea but it does not align well with your goal, try thinking of variations, working with others by forming a virtual company or subcontract to someone else as a freelancer to achieve your goals. Stay focused on your goal.

3. Test Your Business Idea:

Once you have decided what to do you need to test the viability of your business idea. The way you do that is by doing a cash-flow plan. This is not an exact science, but it will show you what you have to do to achieve your business goal.

If for example you want to produce artificial flowers, working from home and your business goal is to make say £ 5,000.00 a month. You can work out how many artificial flower arrangements you will have to produce to make this money. It will give you an idea if that is possible, because you will know how long it is going to take you to make these flower arrangements and what their average sales price will be and what your raw-material cost and other business costs per month are.

If you have never done cash-flow planning then find an accountant or a bookkeeper who will show you how to do it. It’s easy and you can learn it in 30 minutes. Our OnlineOffice has a cash-flow tool you can use for free for 30 days. That is enough to test your idea. Our 24 hour live support staff can also help you to get started with cash-flow planning, it’s free.

One final word on cash-flow planning here. It is not about being right, it is about doing it and then analyzing why you were not right. I’ve been doing it for 30 years and I was never right, but I’m fairly good at it. It will allow you to see many problems arising before they are a big problem. In my opinion this is the most important business tool ever.

4. Bootstrap All The Way:

One simple rule to stay in business is not to spend any money you do not have. Bootstrapping is all about that, making money first then use it to establish a solid small business.

Given the current economic climate, borrowing money from a bank is very difficult and that may just be very good for anyone to start a business. It will teach you financial control and self-reliance. Here are some of the rules I have:

• Do Not borrow money from banks, they will want it back when you can least afford to pay them back. They do not care how your business is doing, good or bad, they just want their money back.
• Do Not put your house or any other valuables you have on the line until your business has proven itself. A good bootstrapped business will make money from day one, that will ensure the business idea is good too.
• Do Not fear failure or making mistakes. Because you will be making mistakes, I make them every day and you may very well fail with your business, I have in the past. The important part with bootstrapping is it will not hurt you, it will just be part of your learning process to be come successful. After a failure you can show your true ‘colors’, by getting up and starting your next business.
• Sell to your friends, family and your current employer first to get the first order and money into your business. You could even let them get involved into your business. as partners or investors.
• Every problem somehow hides an opportunity, you just need to think about the problem out of the box. Every time you overcome a problem you confidence will grow and it will make you a better and stronger business person.
• Outsource every non-essential business process, bookkeeping, call answering, credit control, website design and keep your business IT online, the most important resource is not money, but your time – do not waste it on non-essential tasks.

There are many more rules I have established over the years, many of which I have broken, but these are the ones I strictly stick too.

5. Stay Focused, Always!

If you want to do flower arrangements your business is flower arrangements and NOT:

• Installing an IT system or an SQL server;
• Setup your data security and internet security;
• do your accounting;
• do your web-site;

Remember it is easy to waste your most precious commodity ‘TIME’ and have nothing to show for it. You may say ‘I have no money to have someone else doing all these things’. Please remember there are always opportunities in every problem. Here are some:

• Barter for services with your flower arrangement, i.e. for one month bookkeeping, you may find a new customer this way, get mouth to mouth advertising and most of all you do what you do best – flower arrangements..
• Keep your IT online, it is very cheap, more secure, easy to use and more reliable, you can often get some time for free, maybe even a whole year.
• Depending on the services or products you supply you may be able to receive many other services and products in exchange for your services or products.

Whatever you do, don’t get side tracked from your business goal, ultimately this is the main reason for small business failure. Your business will look more professional if you outsource your non-core business needs to small businesses focused on those services.

As you may know I have set us a challenge to be ‘instrumental’ in helping to set up 1000 new businesses until October 31st, 2009 – so, if you are going to do it, please register with us and help me to win my challenge.

It has never been easier to start a business to supplement your income – 2009 is the year for you to do it. — ST.