Archives: May 2011

Small Business Planning

by JeanetteMarceau
Published on: May 16, 2011
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Planning is so badly needed by small businesses so that they look ahead to the future.  Planning is the important first step so that the future course of the business is determined.  Planning is setting objectives and procedures to achieve those objectives.   You must know where you are going and how to get there for your small business.  With planning you can inform investors about your chances of success.  A well laid out plan for your small business will interest investors, provide an operating guide for your business, provide direction and motivate employees, and provide the elements needed to attract customers and potential employees.

 

Small business owners so often neglect planning.  Many reason planning is neglected are due to time constraints, fear of revealing problems or weaknesses, lack knowledge of how to plan, and feeling that the future is unpredictable and cannot be planned for.

 

The two overall categories of planning are strategic planning and operational planning.  Strategic planning is the long-term direction that is needed to have their mission succeed.  Strategic planning is the definition of the business’s mission and objective and the strategies needed to accomplish these missions and objectives.  The mission is the long-term direction of the business.  The objectives are shorter term actions needed to achieve the mission.  Strategies are the course of actions that will achieve the objectives.  Operational planning is the setting of policies, methods, procedures, and budgets of the business.  The strategic planning usually occurs at the beginning before starting your business while operational planning is continuous occurring before and after the business begins operations.  Strategic planning is also considered long-term planning while operational planning focuses on more short-term.  Strategic planning is the big picture of the business with the operational planning being the intricate details.

 

Planning involves policies, methods and procedures, budget, and standards.  Policies are statements that guide the managers with their decisions.  They are the plans of actions that guide the decision toward the goals of the business owner.  Methods and procedures are the detailed instructions for employees to perform their jobs.  They are the specific actions in order to follow so that consistent results are achieved.  Budgets are the detailed plans expressed in monetary terms for a future period.  A budget is a list of revenues and expenses which is a plan for spending and saving for a specific future period of time.  Standards are the norm for the business, they are the practices that that he business owners deem acceptable.

Becoming a Business Owner

by JeanetteMarceau
Published on: May 16, 2011
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The main factors that affect those people who desire to become an owner of a small business are finding the right product, finding the correct market for your product, decide to start a new business, buy an existing business, or buy a franchise, find the right location, and develop and implement a detailed business plan. To be successful you need to choose a product that fulfills a need and can be marketed in the location you wish to be in.  There are several factors to consider when choosing to start your own business; how much capital is required, what is the degree of risk, do you have a competitive environment, and are you prepared to handle all business situations by yourself.  There are several factors to consider when buying a business; why is that business for sale, what are the intentions of the owner, is the location suitable for your purposes, are the employees proficient and help the business, is the product marketable, and are you ready to take over an existing operation.  There are several factors to consider when buying a franchise; is the franchised product marketable in the location you are pursuing, can you handle the limitations that the franchiser imposes, and do you have the capital to purchase into the franchise.  It is the upmost of importance to develop and implement a very detailed business plan.

Business Structure

by JeanetteMarceau
Published on: May 16, 2011
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A business structure is one of the most important aspects in the development of a small business.  As your business grows the business structure may evolve and change.  It is important to know what your business will be at the start and how it will progress.  Important factors to consider in choosing your business structure include the size and nature of your business, the tax implications, the vulnerability to lawsuits, and your expected profit or loss.

 

If I was going to start a small business; let’s say an auto repair service station I would begin by deciding on the size of my business, then choose if I was going to have others involved in my business, decide how much control I would want, decide on the business’s vulnerability to lawsuits, decided on the expected profits.  I would want to start with one shop to begin with then expand to about 10 stores over about 3 counties.  Since I would want to expand I would have other experienced auto technicians to go into business with me.  I would start with 2 other owners.  I would not want to be personally responsible or liable in case if anything happened at the business.  I would expect medium profits.  Because of my decision I would form a corporation.  Once I have decided to form a corporation I would write the articles of incorporation and by-laws for my small business.  As the business grows and more stores are opened then the number of stockholders could increase.

 

The structure that offers the most benefit to the owners depends on the individual circumstances of the small business.  There is not a one type fits all.  Each structure has benefits for the owner.  The proprietorship would have the most benefit if you were not concerned about the business ending with the death of the owner, because it is the simplest to form, run, and end.  The sole proprietorship has the good tax advantages and the owner receives all of the profits.

Define proprietorship, partnership, corporation, limited-liability company, cooperative, and joint venture

by JeanetteMarceau
Published on: May 16, 2011
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Define proprietorship, partnership, corporation, limited-liability company, cooperative, and joint venture:

A proprietorship is a business owned by one person who owns all of the assets and receives all of profits or losses and where the individual is liable.  A partnership is where two or more people are co-owners of the business where they share the assets, profits, and losses and where each co-owner is liable.  A corporation is a business that is owned by the stockholders who are a group of people that have given special rights, privileges and limited liabilities.  There are different types of corporations; a C corporation provides the limited liability protection for shareholders but is taxed at both the corporate and shareholder level.  An S corporation has special taxation; only the shareholders are taxed and there is no tax at the corporate level.  A limited-liability company has the advantages of the limited liability protection as well as the tax advantages of a partnership.   A cooperative is a collection of independent businesses such as producers, wholesalers, retailers, or consumers that act together as a business to buy and sell for their clients.  A joint venture is where two or more noncompeting businesses join to form a working relationship to make a profit.

Questions to Ask in Choosing a Legal Form for your Venture

by JeanetteMarceau
Published on: May 16, 2011
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Some basic questions to ask when deciding on the legal form to choose for a small business how large do you see your business down the road, what is the nature of your business, where will you be located, what will you sell or what type of service will you provide, how much control do you want over your business, how vulnerable do you want to be for lawsuits, what are your expected profits (losses), who will your vendors be, what type of insurance do you need, what bank will you use, and what do you want to name your business.

Plan for Small Business Growth

by JeanetteMarceau
Published on: May 16, 2011
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Success can cause concern for small businesses thru poorly planned growth.  If a business grows to a point where the owner feels trapped in working long hours, despair over loss of personal relationships, lack of forward movement, and they own a business they no longer enjoy then this is a concern for the owner.  Ways that an owner can avoid the problems of growth could be to have a plan in place that once sales reach a certain level or once the weekly owner hours increase to a certain amount then it is time to hire an assistant or manager to help the owner.  If this plan was in place and an owner started working over 60 hour per week then an assistant or manager could help with the work load.  The owner would have to know upfront and plan for some loss of control as the assistant or manager takes over more responsibility.  The owner should have a detained well written plan in place as to the specific items that the assistant or manager would have control over.  This would then allow the owner to work less hours, have more time for personal relationships, have more time for planning on moving the business forward, and being to enjoy their business again.

Ease of Establishing a Small Business

by JeanetteMarceau
Published on: May 16, 2011
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I think it is easy to establish a small business.  Many are establishing small businesses without realize it or formally starting a small business.  Teenagers who babysit and receive money have a small business without realize it.  They do not report this income to the IRS but they are running a small business.  My daughter who is now 14 started making and selling jewelry when she was 11.  Of course we bought her the jewelry making items so her first sales for her were pure profit since we did not expect to be paid back.  Now she uses her profits to purchase additional jewelry making items.  She has even printed herself some business cards, is thinking of putting up a website, and taking some of her jewelry to a local shop.

 

Also people who are continually selling items on sites like eBay and Amazon are running small businesses, but they might just think of it as making extra money.  A friend of mine would make jams for gifts.  She was receiving so many requests that she took her hobby and is now marketing her jams in local shops and at fairs.  This has now become her small business with a business name, marketing, business structure, and paying taxes.

 

If a business wants to be established as a sole-proprietorship in our county one would go to the county building and files the appropriate forms.  If the business was going to be a corporation or partnership then they would register with the North Carolina Department of Corporation.  In North Carolina it is very easy to establish your own small business as you can either register online or receive the paperwork online and mail in the required documents.  Once your county or state department of corporations has you registered you then would need to register with the Internal Revenue Service.  With your EIN (Employee Identification Number) from the IRS then your small business would then register with the North Carolina Department of Revenue for business income tax, sales tax, and employee withholding tax, then register with the North Carolina Employment Commission for unemployment tax.

 

The establishing the small business is the easy part it is keeping the small business running and making a profit that is the hard part especially in this down economy.

Relationship Selling – Nantahala Cabins – Part 5 of 5

by JeanetteMarceau
Published on: May 12, 2011
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After the guest makes a reservation we mail or email them a confirmation letter with their itinerary.  This is part of our closing and follow-up.  When guest check in we review the rental contract with them, give them a map of the area and explain where points of interest are located on the map, give them printed directions to hikes, give them a printout from the chamber concerning the week and weekend activities in this area, and if they booked any activities I give them vouchers and directions to their getaway.  We explain how to work the hot tub cover, the satellite TV, wireless internet, and let them know that we live on property and transfer the phone to our cell if they should need anything during their stay.  On the day they check out we ask them if they had an enjoyable stay and tell them to have a safe trip home.  This is part of our follow-up process.

 

With our cabins and vacation planning we strive for customer delight.  This book  states “managing customer expectations is an important part of developing successful long-term relationships.  Customer delight, or exceeding customer expectations to a surprising degree, is a powerful way to gain customer loyalty.” (Relationship Selling, pg 14)

 

The quality of our cabins and hospitality is high.  Our guests agree that our cabins are the better accommodations in this area as per our guest journals.  We make every effort to assure our cabins are exceptional well cleaned and cared for.  Even though some of our cabins are now about ten years old, many guests think they have been just competed in the last few months.  We try to pay attention to detail.  Our cabins are themed; Gone Fishing, Gone Hiking, Gone Hunting, Gone Paddling, Gone Biking, the Wolf Den, Deer Glen, and Bear Den cabin.  We decorate for the different seasons; in the fall we decorate our cabins with fall items.  Near our sign by the highway we build a display of hay and scarecrows celebrating the fall.  We also decorate for Christmas and New Years’.  These small touches help to ensure customer delight.

 

Nantahala Cabins offers a service of clean amenity filled themed cabins along with vacation planning.  We strive for reliability, assurance, empathy and tangibles that are the dimensions of service quality that are mentioned in the book.  The book defines reliability as “providing service in a consistent, accurate, and dependable way.” (Relationship Selling, pg 82)  Clark and Maher also state in the Journal of Vacation Marketing that “repeated consumer experiences with a provider that delivers the service with reliability and integrity may lead to a customer base that is more loyal in both an attitudinal and behavioral sense.” (Clark and Maher, pg61)  Nantahala Cabins strives for consistently clean cabins.  Every year in the spring we perform a detail spring cleaning of the cabins.  We detail clean; windows, floors, stoves, bathroom, nooks and crannies, and more.  We check to make sure there are sufficient pots, pans, dishes, silverware, etc. to ensure an enjoyable cabin stay.  Then as guests check out throughout the season the cleaners will also spend time once a month performing a more detailed cleaning.  We would like our cabins to be reliably clean so guests know that each time they visit their cabin would still look new.  The book states that assurance is “conveyance of trust and confidence that the company will back up the service with a guarantee.” (Relationship Selling, pg 82)  When guests check in we inform them that we live on property and if they need anything we would be happy to help them.  This shows our assurance.  The book also states that empathy is “caring, individualized attention to customers.” (Relationship Selling, pg 82)  Every time a customer calls or drives up on property we are ready to show them individual caring service.  If our cleaners or maintenance men sees a vehicle on property they will stop them to offer a brochure and a tour of an open cabin.  They can even book them into a cabin if I happen to be away from property.  We also try to help them choose a cabin tailored to their needs.  The book defines tangibles as “the physical appearance of the service provider’s business, website, marketing communication materials, and the like.   (Relationship Selling, pg 82)  Our tangibles are our well maintained cabins; our website is informative with pictures and descriptions of the cabins as well as area attractions and activities; and our advertising link our cabins and our value added services.  “These dimensions of service quality often provide added value for the customer.” (Relationship Selling, pg 82)

 

In today’s environment and multitude of lodging facilities in Western North Carolina one needs to stand out.  Our sales message, customer-centric attitude, attention to the dimensions of service quality, education of our guests, and solution selling will help Nantahala Cabins survive today’s economy.  Once the economy improves the relationship selling process will help Nantahala Cabins succeed.

Relationship Selling – Nantahala Cabins – Part 4 of 5

by JeanetteMarceau
Published on: May 12, 2011
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We negotiate for a win-win solution.  Sometimes the price of the cabin might be an obstacle.  If this is the case we will try to explain the value added benefits of being close to all of the outdoor recreation attractions, the value of being able to save with meal preparation as opposed to dining out, and the time saved by having Nantahala Cabins book your activities.  We even sometime negotiate price to help the customer.  There have been times when the price was still too high so we would recommend another lodging facility in our area for these guests.  Sometimes in peak season we have people driving up looking for a cabin and if we are full we will call other lodging facilities to see if they have availability then send these guests there.  Our cabins are not right for everyone or we might not have availability and if we recommend them to another lodging facility they might stay with us at a future time.  I believe these are win-win situations.

 

Relationship Selling – Nantahala Cabins – Part 3 of 5

by JeanetteMarceau
Published on: May 12, 2011
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Nantahala Cabins does not perform sales calls but we receive our prospects from a variety of sources.  Prospects could see our website, see some of our advertising; magazine ads, billboards, and chamber publications, be friends or relatives, drive by our property and see our sandblasted sign, or are referred from another local business or friend or relative.  Once a prospect calls we use persuasive communication to communicate our sales message; clean amenity filled cabins in a central outdoor location near the many activities available.

 

When a potential guest calls us to find out more information about our cabins or to make a reservation we try to gather as much information about them as possible.  We ask the number of people in the party and if they are couples or if they have children and their ages.  This will help to suggest certain cabins for their specific needs.  If there is just going to be a couple then we would recommend a smaller cabin; a studio with a hot tub and fireplace or a one bedroom with a hot tub and fireplace.  If they are a family we would recommend the three bedroom cabin or a small studio cabin is price is a factor.  We try to get a feel for the guest to pair them up with a cabin that would suit their needs and their budget.

Sometimes I have groups and we also help them by asking if it is a youth group or a couple’s retreat.  If it is a youth group we recommend cabins to separate the boys and girls, if it is for couples we recommend cabins so the couples have separate sleeping arrangements.  This is one of the ways Nantahala Cabins uses solution selling.

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