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Business/Small Business

Discussion in 'Business, Lifestyle & Leisure' started by Astroboy, Jul 18, 2008.

  1. Astroboy

    Astroboy Malaysia
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    ਨਾਮ ਤੇਰੇ ਕੀ ਜੋਤਿ ਲਗਾਈ (Previously namjap)
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    How Do You Run A Small Business?
    By Akhil Shahani

    Do you feel bored to work as an employee for years and want to start your own business? Do you have all the skills required for running a small business of your own? In this article you would find out information that would help you in carrying out your small business effectively.
    It would be easy to run a small business if you keep a professional attitude and follow certain steps. The key to success of knowing what your clients want from you and trying your best to give the clients what they are looking for.
    Given below are few points that would help you run your small business effectively and efficiently.
    1. Identify your strong points as well as limitations - Find out your strengths and limitations. You may be great at identifying new opportunities but you may not have what it takes to manage the business. If that's the case then you need to bring someone on board who can manage the business for you.
    2. Concentration - Do not allow new business projects or new business prospects divert your concentration from your present business. Stay focused. Increasing your product line with dissimilar products does not always guarantee success. You may stand to lose customers in hope of gaining new ones by adding new products to the product line.
    3. Revise the business plan - Some times you need to revise your business plan in order to stay in the right direction. Modifying your business plan will not harm the business.
    4. Distinguish between work and personal life - Keep work at work and do not take it home. You would exhaust yourself this way. This can lead to poor concentration and thus, failure. Try to detach yourself from work after the office hours. Your body and brain needs to relax so that it can function properly the nest day.
    5. Delegation of work - It is not possible for one person to do all the work alone. Delegate the work so that you won't feel the stress and your employees can also learn to take some responsibilities.
    6. Specialization - Specialization is very important in any business. When you specialize in some thing, you can do that work effectively and without taking much time. Always be in favor of specialization and also encourage your employees to specialize in their particular area of work.
    7. Attract new clients - Your present customers can be of great help to you in getting new clients. Never underestimate the power of word of mouth. If you keep your present customers happy then they would refer new clients to you.
    8. Create a budget - Your budget should always estimate the expenses to be more. If the fund required is not enough then it can destroy a business. You should also estimate your income to be less.
    9. Be creative - Always introduce creativity in to your business so that it does not wither and die. List down all your creative ideas and try to introduce them in to your business. Make sure that the ideas are feasible and not impossible.
    10. Stay motivated - Without motivation, no business can survive. Motivate your employees as well as yourself so that it can have a positive impact on the business.



    Article Source: Akhil Shahani - EzineArticles.com Expert Author
     
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  3. spnadmin

    spnadmin United States
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    Nam Jap,

    This is very interesting. I read it about 4 times. :)
     
  4. Astroboy

    Astroboy Malaysia
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    ਨਾਮ ਤੇਰੇ ਕੀ ਜੋਤਿ ਲਗਾਈ (Previously namjap)
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    Me too. More down-to-earth articles heading this way soon. Feel free to add on more.
     
  5. spnadmin

    spnadmin United States
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    Will. Thanks.:D
     
  6. Astroboy

    Astroboy Malaysia
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    Become a Small Business Success Story and Take Charge of Your Life
    By Kevin Sinclair

    Jobs are no longer secure, even when you are working for a large corporation and have plenty of qualifications and experience. Many people think that if you are a good worker then your job will be safe. Unfortunately, this is not true. Over the past few years, hard working, loyal employees have been retrenched for a variety of different reasons, one of the most common being outsourcing to cheaper foreign labor.
    As more companies choose this option, Americans (along with employees in other developed countries) are finding their employment options shrinking. Technology is also robbing workers of traditional employment as machines are able to do the same work more efficiently and at less cost. Loyalty and faithful service appear to mean absolutely nothing as corporations act with total disregard to the effects on individuals, families and ultimately society as a whole. The only way to be sure you won't be fired is to be the boss. In other words, you have to start your own business.
    However, this is easier said than done. Sadly, most small businesses fail in their first year. Don't let this fact put you off from becoming your own boss, just let it be a warning that you need to establish a solid foundation in order to succeed in your own small business. The majority of small business failures can be narrowed down to some common mistakes that can be avoided.
    The first big mistake is that many people just jump into small businesses with inadequate knowledge and preparation. You have to be willing to put in the time and effort to evaluate a business opportunity, market demand, competition, legal requirements, start up costs and ongoing costs before you open your doors. If you are willing to learn from other people's mistakes and study how to create a small business that has the best chance to succeed, you can be one of the minority that succeeds.
    Owning your own business is a major lifestyle change, so it is normal to question whether or not it is for you. Unlike a typical nine to five job which you can do and leave until the next day, your own business can make constant demands on your time, particularly in the early years. When equipment breaks down, it is your problem. When orders cannot be delivered on time, it is your reputation on the line. You will probably have to work late and on the weekends, at least initially. It is good to be fully aware of this so that you can decide whether or not you want to work for yourself.
    If you decide to take up the challenge, you'll find that there is plenty of information available to help you on your way. You can purchase business start up books at your local book store that guide you through the initial evaluation process, set up, accounting and management functions. Read through the list of contents at the front of some books before you choose the best one for your needs. Alternatively, you can choose to take a course designed to teach people everything they need to know about starting their own business. A mentor with significant business experience can also be a valuable source of information.
    Even successful businesses didn't happen overnight. Persistence, patience and flexibility are also qualities you will need to have in great supply. When you decide to start your own business, you need to be willing to be in it for the long haul. Rarely, will a business produce a living wage immediately or even quickly.
    To give yourself every chance of success, it may well be a good idea to start your business while you are still employed and bringing in a steady income. It won't be easy, but if you aren't worried about how to pay your bills, you will be able to work steadily towards your business goals and achieve them gradually.



    Article Source: Kevin Sinclair - EzineArticles.com Expert Author
     
  7. Astroboy

    Astroboy Malaysia
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    Consignment -- A Sales Adventure
    By Rick Johnson
    Once upon a time, many years ago there was a young, ambitious salesman selling flat rolled steel. This energetic young man called on one potentially large account for months and months with zero success. He was going nowhere fast. The only thing he got from the rather large, burly looking professional purchasing agent was frustration. The purchasing agent knew the young salesman was short on experience. The young salesman felt that the purchasing agent actually enjoyed watching him squirm month after month. This young salesman, being enthusiastic and energetic, tried every sales technique he had ever learned. Of course, the scruffy old purchasing agent was familiar with every one of them and had seen them many times before. Nothing seemed to work on this guy. The young man just couldn’t reach him. So, he went back to something very basic that most of us in sales (especially we Baby Boomers) learned from day one. The young salesman reflected on the words spoken by his most cherished mentor, “Build a relationship son. Get the man to like you and he’ll tell you how to do business with him.”
    Expectations
    Well, the young man tried and tried, but even that didn’t seem to work. He was ready to give up. He was tired of repeatedly hearing that same pathetic purchasing agent’s theme song, “I’m happy with my current suppliers.”
    The young salesman was not smart enough, did not have enough scar tissue and was not confident enough to reply, “Maybe that’s because you have set your expectations way too low.” Instead he resorted to his secret weapon, his rarely used prideful technique that only came out when all else failed – He begged. “Mr. Customer, is there anything I can do, anything at all that will convince you to give me a chance to do business with you?”
    Have you ever been in the midst of a sales presentation and feel a knockout punch land on your chin? Well, that’s how the reply felt to the young salesman. “Look, we have a partnership with our current supplier. The only way you could ever do business with me is if you gave me our steel for free,” the purchasing agent barked.
    The young salesman was devastated; He saw the thrill of victory vanish before his eyes, as he tasted the agony of final defeat. He walked away from that call with his tail between his legs.
    The young salesman was down and depressed. He was in one of those typical valleys anybody who is or has ever been in sales recognizes. The best way to pull ourselves out is to make a buddy call – a call on one of our best customers, based not on revenue but on friendship; one of those frequent calls we make and get criticized for making because the sales volume doesn’t justify the number of times we visit.
    “He was a friend,” the young salesman thought. So he told him the story. His friend and customer was sympathetic, understanding and even though he didn’t offer any advice, the young salesman recaptured his spirit. That night as he sat on his front porch reflecting on the day, he thought, “Why not? Why not give him our product for free?” Full of excitement, the next morning he went directly to his boss, the owner of the small privately held company. He convinced the owner of the integrity of his new plan.
    A concept was born
    The concept of consignment in steel distribution was born. That happened in the mid 1980’s. Consignment was already being used in the fastener industry but I do not recall anybody in the steel distribution industry using it. But, as we, the young salesman and me, his boss, found out, the concept of consignment can work in any industry. It was a tough sell, not so much to the customer, but to me as his boss. But, we did it and it was successful. The prospect this young salesman almost walked away from became our largest account, purchasing over $4 million by the end of the second year. It became a learning experience for both of us and we both profited from it. And the large burly looking purchasing agent actually did become one of the young salesman’s closest friends.
    Consignment can become a very effective marketing tool if it is used correctly. The emphasis is on using it correctly. A consignment partnership should not be considered without establishing specific criteria for selecting appropriate accounts up front. This is extremely important to you, the supplier. We call this selection criteria the “Rules of Engagement.”
    In contrast to the normal Rules of Engagement in selling, consignment Rules of Engagement are predetermined by the supplier, not the customer. Of course, the rules can be modified with proper approval to fit different situations. However, a consignment partnership must be a win-win relationship in order to be successful.
    Rules of Engagement
    The specific criteria that need to be determined before a consignment partnership is offered include:
    • What is the minimum annual sales volume you are willing to accept?
    • What are the minimum annual gross margin dollars you are willing to accept?
    • Are financial statements available for your review?
    • Is the customer financially secure?
    • How much risk/investment are you willing to accept in off-site customer inventory?
    Answers to these preliminary questions need to be established in addition to others that may pertain to your product and industry.
    An Assessment of the Consignment Partnership
    Even today in many industries, consignment is on the leading edge of custom designed cost reduction programs. Initiatives focus on total cost, not price, in order to move to the next level of partnering, surpassing expensive JIT programs that have high administrative costs and service risks.
    The major objective of a consignment partnership is to reduce costs by eliminating inventory and duplicate effort, as well as reducing shrinkage and lowering transaction and handling costs. It is also effective in reducing scrap, rework, equipment downtime, lead-time and over production.
    As consignment becomes recognized in the marketplace as the “way of the future,” caution should be exercised due to the lack of experience and misconceptions by the competition.
    Misconceptions include:
    1: Consignment is a Supplier Program

    Consignment does not start with a company/supplier seminar where you ask the customer how much he wants to stock on his floor. Consignment is complex, requiring supplier professional expertise, state of the art technological MIS and a true commitment of a joint partnership throughout both organizations.
    2: Consignment is Just Another Program/Project

    Because consignment is a total organizational philosophy on both the customer’s part and the supplier’s part, implementation extends beyond the purchasing department. Consignment requires organization, education and training, especially with front line supervision and labor on the shop floor.
    3: Consignment is Easy and Can be Implemented Quickly

    Consignment is not easy although consignment customers may think so. However, you can make it easy because of your years of experience, expertise and support from your IT department. Consignment requires organizational change and, in some cases, physical plant changes. Cultural transition barriers can extend the process. Sustaining the continuous improvement philosophy of consignment is critically dependent on organizational transition.
    Implementation of consignment requires a plan, an implementation team, a commitment from both parties and staying power to build a partnership seeking continuous cost savings.
    How do you know if consignment is right for a particular account?
    First, determine which accounts may or may not be eligible for consignment. At a minimum, you should consider the following:
    • Financial stability. Since consignment involves the physical transfer of inventory to your customer’s location before he has paid, you should be sure that he will remain solvent throughout the program. Financial reports are the preferred method of validating stability.
    • Minimum level of revenue desired. This needs to be determined to justify the investment not only of inventory, but of other resources to manage the program.
    • Minimum volume level on items. The consignment program involves a level of overhead that may not be supportable on low turnover items.
    • Integrity of customer. No matter how thorough your consignment agreement, all such programs involve a high level of trust between parties. How easy are they to do business with?
    It is very important, then, to complete a diagnostic review. The diagnostic review, initiated by your sales support team, is the first step in preparing for consignment. The review involves your entire organization and represents a complete and thorough assessment of the customer’s current operating environment. It provides the base of reference for all future consignment activities. It is primarily a data collection and operational analysis effort which defines the consignment opportunities and the challenges that must be met for implementation. It includes an assessment of:
    • Operations
    • Material Flow
    • Material Storage
    • Organization
    • Market Requirements
    The diagnostic review results in a thorough understanding of the barriers, constraints and opportunities to implementing the consignment partnership. It provides the baseline for assessing improvement opportunities and for developing the consignment strategy. Failure to perform the diagnostic review significantly reduces the probability of success for consignment implementation. This can often negate any cost savings generated by the concept itself.
    Once an account is determined eligible and the diagnostic review has been completed, further development of the rules of engagement include:
    • Minimum turn rate
    • Number of items to be consigned
    • Stocking location
    • Who will do the count
    • How damaged goods will be handled
    • What the replenishment cycle will be
    • What the billing procedure will be
    • What the billing cycle will be
    Other criteria that is specific to the customer in question should be added to this list.
    JIT on Steroids
    Consignment partnerships act like Just-in-Time programs on steroids. They provide all the benefits of Just-in-Time without the high transaction cost, purchasing management stress and risk of stock outs.
    It is extremely important to get as much specific information as possible directly from the customer. When you do your “cost savings analysis” and your “price is not the same as cost demonstration,” you will face less of a challenge if the bulk of your information comes from the customer, thereby increasing their perceived accuracy of your assumptions.
    The following information is critical to the success of your sales presentation. Your objective is to get as much accurate information as possible from the customer. That information should include:
    • Average volume of purchases on items being considered for consignment
    • Average inventory of purchases on items being considered for consignment
    • Average number of turns on items being considered for consignment
    • Average cost per transaction (Customer generally doesn’t know the answer to this one, but use whatever number he guesses. Industries average between $30 per transaction to as high as $85 per transaction.)
    • Annual average inventory write-offs
    • Cost of cycle counting
    • Cost of annual physical inventory including reconciliation
    • Number of stock outs per year and cost of a stock out
    If your customer can’t answer these questions, try to help them come up with their best guesstimate before you resort to using industry estimates. The idea is that it is difficult for the customer to challenge a number that they created.
    Consignment Benefits
    Consignment benefits, pure and simple, equate to cost reductions. These cost reductions include:
    • Reduction or redeployment of personnel
    • Reduction of transaction costs
    • Reduction of handling costs
    • Reduction of insurance costs
    • Reduction of inventory taxes
    • Vendor consolidations
    • Reduction of interest costs
    • Elimination of opportunity costs
    • Elimination of stockouts
    A primary objective of consignment is to reduce the customer’s cost of carrying inventory. This includes the cost of money, shrinkage, taxes, handling and storage. Typically, these handling costs range from 18-30% of the average inventory value.
    Additional benefits to the customer include:
    • Flexibility
    o Material is always in stock at no cost until the material is released for production. Quantities available can be altered to meet peak demands as well as downturns.
    • Reduction of dollar investment in inventory
    o Consignment partnership provides an alternate use of capital and customers will not be invoiced for material until released for production. It also provides emergency safety stock for production with no inventory investment cost.
    • Shorter lead times
    o Normal lead times would be approximately 1-2 days, however, the consignment partnership eliminates lead time as material is always in stock and available at the customer’s plant.
    • Assures growth opportunity
    o Consignment partnerships provide the availability of consistent quality. Quantities and pricing are not subject to restrictions based on changing market conditions. Consignment partnerships enable us to effectively manage the supply chain, thus ensuring the lowest total cost.
    • Pricing
    o Pricing will be consistent regardless of quantity used. (No Extras) The price for one item is the same as the price for 100 items.
    • Vendor reduction
    o Reducing the number of vendors, consolidating sizes, parts, communication and administration can contribute to overall cost reductions – substantial reduction in debits and credits.
    • General
    o The intent of this program is designed to offer overall cost reductions, flexibility in scheduling, improved cash flow, reduction in inventory and investment, assured growth opportunities and to enhance long-term vendor relationships.
    This results in the true meaning of partnership, a win-win relationship. A customer may ask the question, “How can you provide all these services without charging a substantial premium on pricing?” The answer is simple. Consignment is a partnership that provides benefits to both parties. Your benefits as a supplier include:
    • Locking out competition
    • Better control of inventory
    • No warehouse space required for growth
    • Regularly involved at customer location
    • First chance at new opportunities
    • Hard to cancel – hard to duplicate
    • Customer becomes supplier dependent
    • Free storage space at the customer’s facility
    Happy Ending?
    We started this article in storybook fashion. Consignment may sound like the “Knight in Shining Armor,” the “Magic Bullet,” or the answer to cracking your toughest challenge. Be cautious. Not every story has a happy ending. You can hurt yourself with consignment. Consignment is a serious program that requires serious investment of assets and resources. Make sure you do your homework in the beginning. Consignment is not right for every account. It should be the exception, not the rule. But, if it’s done right, it can be the “Knight in Shining Armor.” So, if you’ve done your homework and all the pieces fall into place, go for it. And, when that purchasing agent says to you that he’s happy with his current suppliers, don’t be afraid to look him in the eye and, without cracking a smile, reply very slowly…“Maybe that’s because you have set your expectations way – too – low!”

    Article Source: http://ezinearticles.com/?expert=Rick_Johnson
     
  8. Astroboy

    Astroboy Malaysia
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    Small Business Owners - How To Overcome Fear Of Failure?
    By Lalitha Brahma

    Have you ever got excited about a great business idea, but did not implement, as you had the Fear of failure? If you thought that way, you are not alone. Probably you were afraid to take the next step, because of the big risk you may have to take. One way to breakthrough Fear of failure in a business is to know the truth about it.
    When you experience fear of failure, I would recommend taking a deep breath first. By doing so, you bring yourself in the moment and when you are in the moment, you make empowering choices. Then, you make a choice to treat failure as learning experience. Here are some facts about learning experience.
    Learning experience brings you closer to success.
    Learning experience shows you, what not to do.
    Learning experience teaches you that you need to stop, assess and change.
    Learning experience is a part of life and
    Learning experience is a way to show that you cannot do it alone.
    When you choose to treat failure as learning experience, you will learn to step on each failure, using them as stepping stones that move you towards your goal. Additionally, write down the reasons why you have fear of failure. It could be lack of knowledge or self limiting belief or low self esteem or lack of experience or disapproval from parents or loved ones or taking big risks or lack of finance. Once you write down the reasons, your mind is free from clutter. At this point of time, you will realize that your fear of failure is transformed into excitement for taking action. So, instead of giving up carrying out your business idea, you are on your way to taking action with enthusiasm.
    Action Exercises:
    Here are two things you can consider doing:
    In the past three months, think about an instance when you had a great business idea that you did not implement due to fear of failure?
    Now shift your mindset from failure to learning experience and see if you are now motivated to take action to implement your great business idea.

    Lalitha Brahma
     
  9. Astroboy

    Astroboy Malaysia
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    Cashflow Projections
    By Oladotun Ogunsulire


    When you're starting a new business or taking you business in a new direction, its always a good idea to prepare a cashflow projection for your new endeavor. Preparing a cashflow projection is a good way of preparing your businesses for the things that might come its way in the future. If done properly, you can actually reduce the number of unforeseen monetary events that happen within your planning horizon. Here we take a look at some of the factors that you should consider in building your cashflow projection.
    For a new business seeking finance from investors , financial institutions or the government, an accurate cashflow will certainly be a crucial component of the business plans required by these organisations. Its therefore important that before you start drafting a cash flow projection, you should do some research on the costs and income you're likely to be dealing with. To research your likely costs, you might consider simulating the running your business based on your knowledge of that business which might come from having worked for another business in the same industry. This simulated trial run could be replaced with an actual, limited scope trial run, that is actually operating the business for a short period to see how things actually work. Beware though, there might be regulatory reasons for not actually running the business till you have everything in place, including finance and a cashflow projection. Regulatory restrictions include licensing, tax reporting, association membership, government
    After doing your research , you would then need to either hire a professional to prepare the computations based on sound accounting principles or prepare the projections yourself if you believe you have the required knowledge.
    Ideally, a cash flow projection will be a full, monetary model of your business. To this end three elements it must have are the projections for cashbook, profit and loss account and Balance sheet.
    If you are not familiar with these terms, then it would be best for you to get your cash flow projection prepared by a professional. Where your cashflow projection is being prepared by professional advisers, they will require your researched estimates.
    Cashbook projection
    This is usually a recording of expected incoming and out going cash. The cashbook projection will usually be based on daily or monthly expected cash transactions.Outgoings will involve predicting bills, wages, rates and taxes to be paid, and incoming cash will involve predicting cash sales, receipts from debtors, monies received from investors, and other sundry income.
    Profit and Loss projection
    At a basic level, this is a collation of all your projected trading income and trading expenses, collated for a trading period such as one year. So you make estimates of expense such as rent, electricity, licenses, subscriptions, advertising based on your knowledge of the business and your research. You will also need to be able to quantify you expected business income in terms of sales figures such as products sold or services rendered, and at what price.
    Balance sheet projection
    This can be regard as a monetary snapshot of your business, at a defined moment in time. Thus on one statement, you would have the value of your unsold products, your bank balances, cash in the till, debtors who owe you money, unpaid suppliers and other creditors, the monies you have invested into the business.
    Cash flow projections would normally be prepared for up to three or five years in advance, depending on your requirements and their accuracy and usefulness depend a great deal on the accuracy of your research at the beginning of the process.
    Once your cashflow projection is complete, you may at this point begin to see how feasible your future plans might be. Insofar as you're confident of your figures, a well designed cash flow projection can be the foundation of a strong business plan which inspires confidence in yourself and your business partners about the potential of your business. However, its important that as time progresses that your cashflow projection be revised to incorporate new information as it becomes available.
    Eventually, it will be up to you the business person to work the plan, and make it happen.
     
  10. KulwantK

    KulwantK
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    This is really cool-Thanks for posting these, everyone!
    Wahe Guru
    Kulwant
     
  11. Astroboy

    Astroboy Malaysia
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    3 Reasons You Need a Business Plan
    By Joy Burgess


    If you are starting a business of your own, one of the most important things that you can do is to develop a business plan for your new business. Having a business plan is actually like having a compass to guide and direct your business in the way that you want to go. If you take the time to develop a great plan, you will be able to see progress and achievement that will ultimately lead to the success of your business.
    For those who still have questions as to why a business plan is so important, the following are three great reasons why you need to have a business plan.
    Reason #1 - Attention to Detail - One of the most important reasons for you to develop a business plan is so you can have something that will help you consider present and future details for your company. More than likely there are many different aspects of your business that you have failed to consider, and developing a business plan can help you find them so you can plan for them ahead of time. When you develop a plan, it gives you the options to be able to deal with any problems long before they occur since you are planning out the details now.
    Reason #2 - Makes Funding Easier - Another great reason to get working on a business plan for your business is because it makes the funding process much easier. If you are planning on borrowing money from lenders or offering shares to investors, most will want to see where the company is going before they give you money. Having a plan already drawn up can show them where you plan on taking the company and you will be more likely to get the funding that you need. It is important that you develop a realistic plan with accurate figures as well in order to present a plan that looks credible.
    Reason #3 - Management Help - Starting a business of your own is a huge undertaking, and it can be difficult to manage everything at times. Having a business plan can help you with the management end of your business, since you will have a drawn out plan of what you want to accomplish. Having your business plan will enable you to set and work towards both short and long term goals that will help your company become successful.
    While you may be tempted to get started in your business without a business plan, more than likely your business is going to fail if you have no plan to act as a compass for your company. Having a business plan is crucial during all stages of having a business, and while it will take some work to draw up a business plan, the work will be worth it when your company becomes successful.



    3 Reasons You Need a Business Plan
     
  12. Astroboy

    Astroboy Malaysia
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    Small Business Owners - 3 Key Points To Consider While Hiring Attorneys In Your Business Team
    By Lalitha Brahma

    When I ask Small Business owners what they would look for, when hiring Attorneys, I get one of the following answers:
    I DON'T need an attorney at this time.
    When I NEED an attorney, I will think about it.
    Attorneys COST too much.
    The process of hiring an attorney INTIMIDATES me.
    As a Small Business owner I too can relate to this feeling. Now you have two options. The first option is to ignore the thought of hiring attorneys at all. Alternatively you can be AWARE and ask yourself-Why do I feel this way?
    First of all you must consider hiring Attorneys PRO-ACTIVELY to PROTECT and GROW your business. This might sound like an expensive proposition for a Small Business owner. However NOT doing so will COST you much more. Secondly you must consider having attorneys in your business team as an INVESTMENT and not COST. Last but not least if you get familiar with using legal services, you will never be INTIMIDATED by the process of hiring attorneys.
    Why you must consider hiring Attorneys pro-actively?
    How many times have you had a great IDEA to expand your business, got excited and just implemented it ANYWAY and ended up in a HUGE LOSS because of compliance issues? Instead, how would YOU have felt, if YOU had the ability to pick up a telephone and ask YOUR attorney, if it is legal to implement your business idea BEFORE making the decision to expand? Do you agree that you would saved yourself from this huge loss? It is very beneficial for you to hire attorneys BEFORE even signing any document or contracts with your clients to KNOW YOUR RIGHTS, AVOID STRESS and FINANCIAL LOSS.
    Why consider having attorneys in your business team as an INVESTMENT and not COST?
    There are two ways you can interpret the word "INVESTMENT".
    1. CONTRIBUTION of something such as time, energy, or effort to an activity, project, or undertaking, in the expectation of a BENEFIT.
    2. An amount of money invested in something for the purpose of making a PROFIT.
    Your attorneys are CONTRIBUTING their time, energy and effort to, give YOU the greatest BENEFIT of making YOU Stress free and EMPOWERED. Fees paid to attorneys for business purpose is generally tax deductible (Please check with your accountant). Hence your money invested is helping YOU to increase YOUR profit.
    How to avoid feeling INTIMIDATED by the process?
    We can avoid being intimidated, if we are FAMILIAR with the process. You could pre-pay a certain amount of money to your attorneys and utilize their services as per a mutual agreement. This way you will have the ability to contact your attorneys when YOU WANT. You could consult with them BEFORE making a business related legal decision. God forbidden, when you get into LEGAL PROBLEM, you will find it least INTIMIDATING to use their services, because you are VERY FAMILIAR with their method of operation.
    Another option would be, when get into a legal problem, search for attorneys specialized in the related area. If you are satisfied, you can pay a certain amount of retainer fee and then hire an attorney. You have saved yourself from prepayment, but may have to put up with not being familiar using the attorney's services and feel intimidated.
    It would be beneficial for YOU to make a decision on how you would like to pay and use the attorney's services, BEFORE hiring attorneys in your business team.
    Action Exercises:
    Here are two things you can consider doing:
    Write down one costly mistake you made in your business without consulting an attorney, because you felt it would be expensive to hire an attorney or the process of hiring an attorney was intimidating.
    How has your thinking changed now and what action would you take to avoid this situation in future?



    Lalitha Brahma
     

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