Tag Archives: SmallBiz

5 Tips to Help Your Small Business Survive the First Year

If your small business can survive the first year, you have already achieved a lot. Most businesses fail within the first two years. Of course, every founder’s journey will be different, but there are a few fundamentals that will improve your chances. 5 Tips to Help Your Small Business Survive the First Year Align with your values: You’ve probably been told at least a dozen times that your company might fail. Even if it succeeds, the process will be excruciatingly difficult, and early on the monetary rewards will seem small. It’s crucial that you pursue a mission statement that aligns with your personal values. Otherwise, you may struggle to put in yet another sleepless night for a company that isn’t profitable yet. Ask any of the top founders in Silicon Valley how they made it, and you are bound to hear the word passion more than once. Understand scope: It’s…
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5 Legal Essentials for Business Founders

If you’ve ever indulged in reading Silicon Valley drama, you’re bound to have heard about business founders who ended up getting in serious trouble because they didn’t protect themselves from legal issues. Whether it’s the cofounder who got diluted out of his own company, or the executive who went to prison for securities issues, we’ve all heard the consequences of being reckless. Here’s a look at the legal essentials, so you can ensure this never happens to you. 5 Legal Essentials for Business Founders Have a clear deal with cofounders: When one person is only protected by a handshake, things get bad. Have a crystal-clear understanding of who gets what. Hire a good business lawyer to write up the paperwork, and make sure you have your own representation to ensure you get what you deserve. Whether you are dealing with banks, partners or venture capital, you need a lawyer. Separate…
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5 Signs Your New Hire is a Bad Fit for Your Business

Hiring someone who is a bad fit for your business can be costly. A study from the MIT Sloan School of Management found that hiring and training an employee costs 1.25 to 1.4 times their annual salary. That’s a hefty price for an employee who might burn out after three months. Traditional HR wisdom says that the first 90 days usually let you know who is going to work out. Here’s how to know you might have hired a lemon. 5 Signs Your New Hire is a Bad Fit for Your Business They want to do everything alone: Turning down collaboration and taking on more assignments than is realistic is usually a sign of future burnout. While diving in is great, you want to see employees who are building lasting relationships with the team and keeping a sustainable pace. An employee who does too much alone is unlikely to last….
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7 Costly Small Business Mistakes

Every business leader will have their own style, but there are a few small business mistakes that every entrepreneur should avoid. Most mistakes you’ll have to discover through trial and error, but here are a few that other leaders have faced so you won’t have to. 7 Costly Small Business Mistakes Dumping money on ads: Don’t go too overboard with ads or other marketing too early on. You want to make sure every dollar you spend is converting into customers. It’s fine to run some ads, but only buy promotions that you know will make a serious contribution. You can’t afford any fluff in your budget. Avoiding sales: Sometimes sales can be intimidating. You might be tempted to hang back and keep focusing on the product, but no business succeeds unless sales happen. You have to spend plenty of time with customers if you are hoping to make money and…
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3 Different Ways to Sell Your Small Business

If you’re like most entrepreneurs, you have exit plan in mind where you sell your small business and move on to the next venture. There are a few ways these sales can happen. Here’s a look at the three major categories of business sale. 3 Ways to Sell Your Small Business Assets Sale: In an assets sale, you will be selling your company assets over to another person or business without selling the company itself. This means that an attorney will need to go through your liabilities to determine areas where different agreements may or may not transfer to the buyer. You might also need to come to agreements with lenders, suppliers and others on whether the sale can happen. Some contracts will not allow you to pass debts on to another party without an agreement. Equity Sale: In an equity sale, the essential structure of the company remains the…
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