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According to the Ministry of Industry and Trade – 70% of small and medium businesses that open each year, closing in the first year of existence, and 20% more – in the second year.
90% of new businesses are closed during the first two years of their existence!

Is this fate? Do not be otherwise?
Let’s review some of the typical mistakes business owners make their way early:

1. The reason the decision to establish an independent business: usually does not have anything to do with the ability of the entrepreneur running a business. The reason is usually acquired professional knowledge or experience gained in a certain field, they bring a decision to open their own businesses in this area. It’s definitely not enough to manage a business.

2. A lack of equity or equity utilizing all the early stages of establishment, without worrying about credit frameworks that will allow continued operation of standardization.

3. Known to produce, but do not know the market and do not know to market and sell.

4. Small business reference method – “When we get to the river – we’ll move it.” Often new entrepreneurs believe that opening a business, since not a big investment and big business – will be able to solve all problems arise during the current operation. It does not happen.

Although an entrepreneur and investor will not enter the project of building a business without preparing a business plan, carry out market survey, to examine all existing credit financing options in terms of manning and organize the major functions of management: marketing manager, finance manager and director of manufacturing. That’s exactly what not to do the majority of small business entrepreneurs: they sped way.

What do we do?
First of all – seriously seriously your business idea.

Try to think and imagine how you want your business will look like in five years or more. Do not be afraid to think big!

When your mind’s eye you see your great business – began to review its organizational structure, the different functions that enable you to manage, and compare it to what you know or intend to do.

All the functions you can not make yourself – can not be left without a solution to the small business: prepared yourself in areas you lack knowledge, hired the services of good consultants guide you in these areas until the business grows, hired the services of a permanent employee to perform them. Well-prepared big business infrastructure is already in the initial activation of the small business.

Because it is small – would be great.

Or quits!

Economic viability test phase of the business is an essential step before making a purchase or establish a business. Many small business owners do not attach sufficient importance to the professional exam for the real potential inherent in the business – before opening or purchase, and go be fooled by thoughts and dreams sometimes do not match the true face of financial reality.

Browse sections purchase / sale of businesses shows that many businesses are ads selling various reasons. Ads typically promise high-profitable business “income.” Most businesses are sold in small business and experience shows that most of them are businesses that failed bearings operating losses should “burning cash” instead of profit and income.

Many business owners are aware of the losers , there are entrepreneurs who are looking to go independent and acquire an active business. Belief that “it is better to purchase an existing profitable business” than to start a business that long hidden in the open as often leads to purchase a business in which the difficulties revealed only after the new owners have invested a lot of money. The buyer to make a thorough examination business (just as if he was to make buying a used vehicle) by a professional.

There are various methods of business acquisition valuation method will select the type of business sold in accordance with the addictive components, such as: type of fixed assets, clientele, full of goodwill and the like.

The necessary basic steps that make accountants to examine the feasibility of buying a business.

Reliability and reasonableness of data: test data for evaluating the profit potential inherent in the business of professional proofing are selling “Ink Daluege” miracle “or” due diligence “. Accountants look at the display business data by the seller and check if the amount of income and amount of expenses are correct and reasonable in relation to a business for sale. Typically, the entrepreneur begins is not equipped with appropriate skills to evaluate the feasibility of financial data. This examination can prevent deception by sellers who presented false representations of Business Riuvhim.
Business value: The actions taken by auditors are also designed to evaluate the value of business to carry out negotiations to achieve an optimal purchase price to the buyer. Optimal purchase price also embodies the value of the property, inventory and tangible assets of the business including real estate. Also the auditors examine the value of intangible assets such as customer list, the power of the brand and appreciate your business reputation.
Risk Assessment: There are risks in any business, it should detect, characterize and neutralize. This phase is different and environmental risk assessment accompanying the business. For example, the establishment of a restaurant in a residential area run into difficulties in obtaining a business license or complaints from neighbors, which can lead to its closure and loss of investment.
Tax Planning: Tax Planning should be done to reach the optimal form of the transaction, in terms of determining the tax nature of the transaction and business conduct resulting Msweit meaning. There are situations in which the deal will be carried out if the seller will see that he stayed with the small amount he had expected him to, so the buyer who assumes that the tax authorities would recognize a certain amount as an expense the buyer expects profits or returns on investment and tax planning can maximize them organized.
There are many questions: “What type of business you should buy? What type of business from any business you know best are Riovhim worthwhile?” The answer is unequivocally, any business which is managed in a professional, correct and good, will bring profit to the owner, so there are three iron rules of the entrepreneur intends to buy or open a new business:

Property management skills, and knowledge to open the business, in order to be able to cope with difficulties arise in everyday life of the business.
Business world is hard and cruel world of business and an intact or missing qualifications would not survive it, if not Icttiid advice from qualified consultants to purchase business consulting, marketing and commercial. Check and accept recommendations for various professionals that accompany the business. For example, current technology can automatically generate and execute an invoice credit card billing (“clearing”) of the client, using software accounting which saves the user to infinitely high stakes use of the program costs.
Learn to listen to criticism, looking at the business reality through the prism purely economic

Managing a business involves many challenges, no matter whether this is the case of managing a small business or managing a large company. Secret for efficient management of the business lies in the processes carried out within the organizational space and if these are properly the business will continue to prosper and flourish. Businesses that are not well prepared and do not manage structured and methodical people processes may join the tens of thousands of businesses closed each year, when the vast majority – small businesses. According to forecasts, in 2009 are expected to be closed off to 45,000 businesses. In light of these data, the small business to consider the great importance the proper business conduct. Running a business is true of the cornerstones of any business or company and is responsible for his success at best, or collapse, in the case of poor business conduct.

According to the Ministry of Industry published in March 2009 shows that 47,000 businesses are expected to close, then, in 2009, when 85% of those small businesses. It seems that the main reason for this lies in the choking of credit coming from banks, but a significant percentage of those businesses can not survive due to a failed business management.

Business Management dictates daily reality for many small business challenges as a prerequisite for survival. Large business organizational structure is characterized CEO Chairman of the pyramid underneath professionals in different departments, so that each employee a unique skill and responsibility. In small businesses, however, a different structure and function and is characterized by their owners under a few hats. As a result, small business owners regularly have to deal with All aspects of running a business, which may create a problem.

Beyond that small business owners find themselves looking for new deals and opportunities, help them keep afloat during the recession with minimal damage, while they continue to function even when it comes to customer care and preservation, the collection of funds, implementation and monitoring tasks and that only in a Nutshell .

Lack of time, lack of resources and operational tools to manage ongoing business, they are Abocariam of small business owners and create problems and defects in the conduct of daily business.

Business Management such conditions does not allow the business owner see the “big picture” and eventually prevent him clearly understand “where he stands.” All of these are a recipe for decline in business, in extreme cases, these conditions may lead to the collapse of the business altogether.

The percentage to be among the most successful small businesses and join the grim statistics, fraught with early assessments and integration of several basic principles of effective business management.

Running a business – invested in planning

Effective Business Management includes early assessments. Long-term planning and proper management of risks, never were the lot of the big business only.

Many small businesses tend to think that conduct on the go suitable for them than the investment of time and money planning – what could be a problem later. Business management and strategic planning into the overall deployment for periods of crisis is the first measure to help any business owner to plan wisely to support his steps.

Business Management – Business Reports produced

Running a business, in any field, including the use of business reports for tracking and control. These Business Reports are an effective tool that helps the business owner get a clear picture about the conduct of business. These reports provide current information received and available for business operations and conduct ongoing communications with customers and suppliers.

Business reports that allow monitoring and control, statistical data can be generated on the business activities, such as expected income and expenses, the number of new customers a month, a success rate of closing, the current image current and future projects and more. These data help in making a broader picture of running a business and help the business owner to focus the resources required to develop local business.

Business Management – Customer Relationship Manage

Managing a business without customer relationship control may create problems. Customers are the main ingredient in any important business. Good service and personal attention – they can differentiate distinguished business and make existing customers and / or occasional customers loyal. Therefore, effective business management, including an emphasis on several important points when it comes to managing customer relationships. For example, we strongly recommend an updated customer base to build and edit one data reclamation period to validate the reservoir. You may also wish to track bids are solicited and ensure that there is a routine process of absorption of a potential new client to being an active client.

Business Management – Perform follow-up payments

Smart Business Management followed closely involve other expenses and income. Cases reached the end of the month, removing them invoices, Shigertam and … oops forgot, can create problems.

Running a business without a track of business expenses and income will not examine the real status of the business and will track cash flow. Therefore, you should keep and produce a report that contains the expected income and expenses to control and track invoices, which is very at ease and allow collection activity and control at any given time.

Now that your business is conducted Advanced not moderated Widatam that the principles are true, you can leave processes of preservation, growth and leveraging business, even in times of crisis and recession