Tips for Surviving Business Problems

Advice for Survival
Here is some survival advice for Small Business Owners
  • Before you start, make sure you know exactly where you stand financially before you commit yourself. This will require work on budgets and planning.

  • When you're making plans for success always make plans of what to do if it fails. It was Franklin D. Roosevelt who said that “When you get to the end of your rope, tie a knot and hang on”.

  • In business watch your enemies (competitors) close and your “friends” (directors, managers etc) closer.

  • Before signing a lease for premises or assets always read the terms thoroughly and discuss with your lawyer before signing.

  • Generally buying into a good ready made business with your own cash is the safest way to start

  • When buying a business there is a tendency for the seller to overvalue his proposition so a cynical mind is the safest approach for you as a buyer.

  • If has been said that the chilliest draft is the overdraft because while many businessmen owe their success to the assistance received from a bank, overdrafts can be risky.

  • One of the first things to consider when you are caught with a bad debt is whether it is going to be worthwhile taking legal action to recover the debt or whether it is easier to write it off and claim it as a tax deduction.

  • Never make anyone a director of your company unless you are sure they will support you at all times and that they will always remain loyal to you the founder.

  • If you can, bank your cash receipts every day to save on overdraft costs.

  • When you can go for discounts, providing it does not run you short of ready cash, bargain for as much discount as you can.

  • Some kind of survey or investigation is necessary even for the smallest business operation because studies can be the safest way to ensure you make profits or avoid going broke.

  • Three most important things in retailing are: location, location and location. May we suggest that even more important than location is timing and good financing.

  • Never have 3 directors (inclusive of you as founder) in your private company if at least 1 of them is not a close member of your family (wife etc) as you must always have 2 votes. You must never allow yourself to be outvoted by outsiders in your own company.

  • Don't go broke giving credit. Be tough on giving credit to new customers.

  • Never bring new Franchisees into your franchise business simply because they have the money. They must be fully assessed and qualified for suitability. If they do not have the experience or the qualifications to run one of your franchise outlets think twice before taking them on. Franchisees can be a huge headache and they can cause you big problems if you pick them simply because they have the cash even if it's the cash you desperately need.