Monthly Archives: July 2013

3 Reasons to Embrace Competition

competitionHave you ever thought that your business will run smoothly without any competitors out there? For most people, the competition is often viewed as something not too pleasant, even a scourge. However, for the true entrepreneur, competition is not the “ghost” that scary shadowing his every move. Business competition can actually be used as a driving factor of business progress.

For those of you who are still hesitant to make the competition as part of the inherent dynamics of the business, then you should read the 3 reasons to embrace the importance of following the competition.

Competition depress prices while maintaining quality

Economic law would work well in a healthy market competition and passionate atmosphere. With the creation of a conducive environment, every company that exists in the market will try to attract customers by performing a variety of ways such as improving the quality of products / services offered, keeping prices to remain stable, as well as developing new product / service that better accommodate the needs of consumers.

Regulations set by the government (which is overly restrictive market mechanism) or other things that discourage entrepreneurs to jump into the market will only make the market less competitive. If competition decreases both in quality and quantity, it is certain that the price will rise and tend to be uncontrolled, the quality is declining, and will only appear the product / service in smaller amounts.

Monopoly, which is the polar opposite of healthy competition, will make a less attractive market to enter because of the provider / supplier will not get any compensation if they can lower the price or increase the quality to attract more consumers. And consumers are also in a difficult position because it has no other choice.

Competition encourages change and creativity

Every entrepreneur trying to meet the needs of consumers while depressing the price that is relatively lower than its competitors. In addition, they also have to maintain efficiency when competing.

As we know, the market mechanism is usually preceded by the appearance of a business that serves customers in the scope of a particular market. Business first appeared and success can reap much profit then the competition begins when other businesses come in and target markets and consumers alike. This competition has led to an ever-changing business people so that they can survive and have a place in the middle of the market.

Competition keep the business remain dynamic

Thanks to competition, entrepreneurship has always been a topic that will not be drab to be discussed and practiced. The market is necessarily always changes. Competition is always there everywhere. Instead of scary for us, the element of risk and uncertainty in entrepreneurship is an attraction that makes entrepreneurship exciting from time to time.

Simply put, entrepreneurship can be defined as a process of continuous discovery. Every time we make a choice of business, we will get a quick response from consumers. The logical consequence is twofold: the demand for the products / services we rise or fall. When demand falls, the market seems to give a hint that we should start thinking about a different product or service. When demand rises, prices will begin to decline.

Do not be afraid to fail or loss. It is a natural mechanism that carried the market to tell you that teus improve or move to a new business in the field.

Five Tips to Managing Family Businesses

Family-businessThe family business has been the backbone of entrepreneurship world since many years. Trust, the family business that drives 70 percent of Gross Domestic Product (GDP) of the world.

Rothschild is regarded as the oldest dynasty who underwent successful family business with a personal profit scale throughout modern history. International banking business initiated in the early 19th century was skippered by Mayer Amschel Rothschild (lifetime 1744 to 1812). Looking at the success of the German family dynasty, the Forbes magazine in 2005 did not hesitate to put Mayer Amschel Rothschild in 7th position in the list of “The Twenty Most Influential Businessmen of All Time”.

Wal-Mart Stores, Inc. is one of many family business success stories of modern times. Founded by Samuel Moore Walton (lifetime 1918 to 1992) in 1962 and is now led by his eldest son, Samuel Robson “Rob” Walton, Wal-Mart is the largest retail company in the world from America when viewed from its revenue.

Two stories above is proof that a family business can be a strong foundation to plug themselves on the world stage entrepreneurship and attained world recognition of achievements. All dream. But like two sides of a coin that is contradictory, run the family business can also be interpreted as a nightmare. It occurs when there is a negative aura within each family member can create animosity to end up with a split.

The story of the Rothschild dynasty and Walton was included in the dream to be achieved by everyone. Obviously, the people in the family dynasty that they need to fight hard, dedication and high consistency to achieve success. For those of you who want to run the family business with his sister, brother, cousin or are managing a family business with its closest relatives, the following five tips for success success as quoted on CNBC’s website.

communication

Communication is the key to creating better relationships in all sorts of aspects of life. There are times when, in family relationships, among its members often feel free to express mutual feelings raging in his mind. The flavor is underlaid hesitate to not want to hurt the feelings of the beloved. But in the business world, it is important to express your opinions or expectations clearly and openly. Do it as if dealing with a partner from outside, if you want a business that achieve the set targets.

expectations

In a broad sense, it refers to the communication points. As mentioned earlier, it is important to communicate expectations clearly as possible to the business partner is none other than your own brother. Better expectation that does not intersect with each other, it is important to describe each business expectations before standing. Speak what you would expect from a business partner and from which you shared governance and vice versa thank also the expectations of your partner. Find a deal, and document the vision and mission of the company.

Business Relationships

Despite how strong the relationship between you and a partner, there is always the possibility of dispute. To prevent that, you should wake up a business relationship formal as possible. If necessary make a written agreement as well as a business agreement. Some entrepreneurs who opt for family businesses may be reluctant to do so because they thought that the written agreement is a form of distrust of your own. But otherwise, a written agreement is designed to protect all parties related to each other in business.

priority

Everyone wants to be a successful entrepreneur and make a profit or even managed to change the world. However, it is also important to prioritize family relationships over the business. Do not let your business become a boomerang that resulted in dispute or even split. You might be able to build another business or earn money in other ways but blood ties can not be sought apart from relatives you have. Prevent a dispute with a healthy perspective and solve business problems which are hindering your family without sacrificing kinship itself.

Have fun

Even if you really enjoy the process of managing and doing business with relatives but note also the time to have fun with them outside of business hours. If the content of the conversation or the shape of your relationship with relatives just about business, it will not only crack the ties of kinship but also direct your brother in the depressed position. It is better to take the time to have fun or do ‘family time’ usual you and your brother often do before starting a business. And, do not even alluded to the business in the ‘family time’ is. If you can establish a strong bond with family, relationships in the world business automatically be created properly.

What You Need to Open a Business

startup businessMany people already feel steady and very eager to open their own business, but unfortunately when they are about to start their feel confused. “What should I do first to realize my dream of owning your own business?” Maybe that’s a question that often hang in the minds of prospective entrepreneurs. And there is no technical instructions and manuals are official and accurate information on exactly how to start your own business. So many alternatives that can be taken. For those of you who feel the same confusion, check out the following descriptions so you know a clearer picture of how generally starting a business.

Capital

An old joke says that when people talk about the steps initiated an effort was ranked 1 to 10 in the 12 priorities that must be met when starting a successful business. This is also true in the launch of the product, due to the launch of new product ideas usually takes a lot of resources of the target. You will need to make money in an amount sufficient to pay the salaries of employees, compensation for the fellow who was instrumental in the launch of the product, the development of basic forms, testing rules, and costs in a business side. Funding requires several months to collect and can be obtained from a gift, and a friend loans, or grants or bank loans or investors as well. Banks and investment partner companies will expect to be paid back with interest. While the grants awarded in the absence of anything in return.

Have a business idea

Make sure the type of business would you set up is the type of business that you are interested. It would be a good idea if you have the expertise and practical experience in it. Use a break-even analysis of capital (Break Even Point) to determine if your idea is potentially profitable. After that describe in detail your business plan, including a profit and loss forecast and cash flow analysis. Then find sources of assistance that can be used for start-up funding. After that, assemble a basic marketing plan.

Determine the legal structure for your business

Before you begin, you must decide how many people are going to be a business owner. In addition, also decide how much protection from personal liability you need based on business risk. Then also think about the tax to be borne. Consider whether your business will be able to print more profits by selling shares. Thorough diversity in the composition of business ownership: sole proprietorship, partnership, firm, and so on.

4. Cooperative

Get in-depth information from independent sources or a lawyer if deemed necessary, before you decide to adopt one type of ownership structure.

Choose a name for your business

Think of several business names that might suit your company that will shape, its products and services. If you start a business online, please check if your business name is already used wills as the other site’s domain name or not. Determine if your business name has not been used or not being used by any other company while going to start a business. Try to avoid names that easily diasosikan business with another company or the name of a fictitious company and its reputation. This relates to the image of the business in the future. Look at the Directorate General of IPR directory to ensure your business name has no equal. And when there is something similar, you can still get around to look different and unique. It’s good you have a good supply of business names so that once you find a name that is similar to other businesses, you can choose another.

Register your name for your business

Register your business name to the Directorate General of IPR as an official trademark and legitimate in the eyes of the law. This is important, especially if the business name is used to identify the products or services that your business offer. In addition, formally register a business name as a domain name, especially if you want to use as your website address as well.

Prepare documents the organization

The documents relating to the legal organization is usually very typical according to the type of business ownership. The type and variety of documents required for an individual business is different from the type and variety of documents required in a firm or a limited liability company.

Find a business location

Discover the features and improvements that your business needs. Determine how much rent you can spend. Determine the kind of environment that best suits your business type and find a reasonable rental rates for the environment. This can be done with a survey of some acquaintances or friends who know the area or the environment. Create a conducive working atmosphere around the work site so that jobs can run more smoothly. Before signing a lease agreement, try to know if there are any better deals.

Take care of business licensing

The following are some of the stages of licensing in this country that needs to be known.

1. Deed of Establishment of the company

Certificate of incorporation documents are authentic, which is one form of the legality of the company are made in the face of a notary, a public official who is authorized to do so by law. In the deed of incorporation must contain the Company’s Articles of Association which contains several provisions as follows:

1. a. Formally contains the title, number, place, day and date of manufacture and the signing of the deed of establishment.
b. Materially contains about: founder / party founder, company, company business, corporate relations, in the event of a dispute settlement measures.

2. Name of the Company

Principles of naming a company. Principles can be described as follows:
a. The intermingling of the company name with the personal name.
b. The intermingling of corporate legal form with personal names.
c. ban wearing company name of others.
d. a ban on wearing the brand to others.
e. ban on using the name of the company that is misleading.

3. Recognition and validation

The following is a statement of endorsement is subject Validation and others:

a. It says there is a recognition that if no party denies or object to the use of the name of the company concerned.
b. Employers or the general public to know and recognize the name used by the company in business.
c. It says no endorsement is used when the name of the company that runs the business made ​​in the face of a notary, the state announced in the news, and registered in the Company, but no one objected to the name.
d. With the registered company name in the list of the company then it is considered valid.
e. If there are those who do not recognize the company name in the list may apply to the Minister of Industry and Trade of the names on the list and why.

Expertise

Running a business requires expertise in the ins and outs of the development, marketing and sales as well as business development and legal policies. While you may think that you can do it all alone without the help of others, you will get better results by hiring people with the competencies necessary to run your business. By leveraging their experience of n and expertise, you can save time and effort in order to avoid mistakes and save time to achieve success. In a business budget, enter the funds to hire the experts who complement your skills.

Obtain insurance

In general, there are several steps you can take to get insurance coverage for businesses. Determine whether the business property that can be covered by insurance. Contact your insurance agent or broker to answer your questions and ask about the policy in detail. Get liability insurance / debt vehicles used in your business, including employees’ personal cars used for business purposes. Get liability insurance or debt to the premise if the customer or client will be visiting. After that, get the debt insurance / liability if you are going to create a product that can be harmful to people and the environment. If you work at home, make sure you enter your homeowners insurance damage or theft of business assets and debt to repair the losses associated with the business as protected elements. Consider health and disability insurance for you and your employees.

Specify the accounting system

First, decide whether you will use cash or accrual accounting system. Please Select the fiscal year of its own if you do not match the business cycle of the calendar year is generally. Make also a system of recording financial transactions, especially effort to track any payments to and from your business. Hire someone competent in financial records.

Make the tax reporting system

Know some tax scheme for the structure of your business. There are also ways that you can take your taxes separately minimize expenses.

The shape of the board of directors

If you combine your company, you will be required to have a board of directors that is responsible for holding the lien obligations and legal for your efforts. If you are planning to become a CEO in your company, think about who the right person to work with in this oversight function.