When Is The Right Time To Set Up Another Branch Office?

When Is The Right Time To Set Up Another Branch Office?

Owning a successful business can give you an idea of setting up another branch office. Why not? You know the struggles, the risks, and so many considerations that a business needs. Before taking the action, remember that setting up another business resembles starting over again.

Helpful considerations to decide if this is the right time

  • The status of your current business

Remember the current status of your business. Consider how well the sales and inventories, the number of customers, the quality of products and services. Are you providing them enough to their needs? How stable is your current business? Answering these queries give a response if this is the perfect time to put up a new branch office.

  • Money consideration

As mentioned, setting up another branch office or business resembles putting up a new one. Money is important. You need an assurance that starting the second workplace won’t affect your other business. Think about the expenses to incur like rent, insurance, payroll, inventories, equipment, and so on. If you are financially ready, then, nothing to worry. You should have enough money in funding your new branch office.

  • Readiness to trust others

If you have one business, you can give time to it. You can supervise it personally without a problem. Setting up another branch will give you difficulty in doing this. Ask yourself, are you ready to entrust the management and supervision of the business to other people? Supervising means, you can ask a help from a trusted employee, such as promoting them to a managerial position.

Additional Mentality in setting up another branch office

  • Location

Are you ready for your next location? First, find a perfect new site to put up the branch. Gather information from that location about the customer’s needs. Ask yourself, can you provide their needs. Answering this questions will give you the mentality that this is the perfect location for your next branch office.

  • Financial risk

Upon thinking of putting up a new branch, you have to prepare yourself for the financial risks. You will experience difficulty in keeping the finances for both, so better keep them separately. This way, you can determine the status of each business; if they are successful or not.

  • Consider giving a different approach

Putting a different approach to each of the businesses helps. Like for example, offer products or services to the new business that the other one doesn’t have to gather new possible customers and even old clients. Somehow, this will differentiate your business from one to the other.

Setting up a new branch office is another risky decision. You may experience the same struggles, problems, and difficulties. The good thing about it is you already know how to deal with these struggles. Preparedness is always the key. Readiness to face problems with products and services, employees, and so on.  It will also guide you to the question, is this the right time to set up another branch?

Is It Important To Hire An Accountant For Small Business

Is It Important To Hire An Accountant For Small Business

Accountants can make your life easier. They help you in business planning, filing loan application, auditing, and handling of money matters. They can expertly give a preview of the overall performance of the enterprise as well as its financial transactions.

Small businesses encounter lots of challenges in different stages of growth. With too much workload, many of them save money by hiring an accountant to focus on the financial operation. Though it may seem a costly decision, the fact that there is a professional to handle the records and bookkeeping of the company is the best option.

Benefits of hiring an accountant:

Saves your time

We frequently hear the expression “Time is gold”. It bears truth in personal life or business. Hiring an accountant gives you extra time to spend with your family. You stop worrying about tasks regarding finances. As the owner, you can focus on studying helpful strategies to grow your company.

Helps you manage complex accounting tasks

Most people know how to add and subtract. An accountant knows about this fundamental knowledge and a lot more. He studied accountancy for years then took an examination to get a professional license. With expert knowledge and skills, he can handle simple to complex problems that businesses faced.

Offers cost-cutting measures

The accountant has overall access to the business performance. He can quickly determine unnecessary spending. He vigilantly monitors all expenses to ensure the progress of the enterprise. He keeps a record of expenditures that is essential in decision making.

Finds ways to reduce your tax

An accountant assists business owners in minimizing tax fees. He knows various methods to cut it. He is aware of exemptions or breaks that lower your taxes. The money saved can be used for other purposes.

Assists you make immediate decisions

Since he monitors the business cash flow and keeps a record of business performance, you can easily consult him on budgeting issues and other problems. He can give a well-detailed opinion regarding finances of the business. Concrete understanding of the business performance is essential in decision making especially in building plans for the future.

Hiring an accountant even for small businesses is essential. He is helpful in many ways such as recording and monitoring of the daily activities in the financial field. His opinion is critical and constructive in decision making. An accountant is a must-have investment for businesses. His expertise can give you answers to resolve financial matters.

An accountant is an asset to the company. The money you pay for hiring one can significantly contribute to the smooth operation of your business. In the end, you and your business gain more with his help.

Reasons Why Outsourcing Can Be Good Or Bad For You

Reasons Why Outsourcing Can Be Good Or Bad For You

Outsourcing has become a global trend for quite some time now and is steadily gaining popularity with business owners of all kinds. Choosing to outsource a business is not limited to manufacturing sectors and IT industries anymore. Many small & medium enterprises with brick and mortar stores are also jumping on the bandwagon of offshoring.

However, before you decide to outsource your bread and butter business, consider the pros and cons of this approach to determine if this path to uplevel it is the right choice.

Why Outsourcing Can Be Good For Your Business

Outsourcing has gained popularity because it offers many benefits to business owners as stated below.

You Don’t Need To Hire More Employees

Business owners have more freedom to choose and delegate their workloads to remote employees, freelancers or contractors on an hourly or per project basis. Thus avoiding to hire a local, in-house individual with full-time benefits and training, consequently saving a lot of money and time.

Freedom and Access To A Larger Talent Pool

There are plenty of third-party platforms that you can tap if you want to outsource talented and expert remote workers. Upwork.com, Fiverr.com, Freelancer.com, People per Hour and OnlineJobs.ph are some of the budget-friendly outsourcing platforms out there. While large company owners or corporations prefer partnering with outsourcing companies to achieve their target goals.

Reduced Labor Cost

The prime reason why many large companies down to small business owners choose to outsource their business is the cheap labor costs compared to hiring in-house local individuals who you need to provide with full-time benefits, training, equipment etc. These help them cut down their business recruitment and operational costs. You often get the same quality of work output with less pay because of outsourced experts in that field.

You Help People From Other Parts of The Globe By Hiring Them

Business offshoring has contributed to the world’s economic development and lowers the unemployment rate of the third-world countries. Philippines and India are among the top 5 nations for Foreign Direct Investments like Call Centers and Back Office operations. The industries have alleviated the living conditions of workers residing in these parts of the globe.

Your Business is Open 24/7

Outsourcing your business results in increased sales and productivity because you can operate 24/7 with your teams taking shifts while you are sleeping or getting a break during the weekend.

Why Outsourcing Can Be Bad For Your Business

In any situation, it is practical and wise to weigh the pros and cons before arriving at a decision. So let’s dive deep into these disadvantages of outsourcing which might be bad for your business.

Loss of Managerial Control

If you outsource your business, be prepared to lose management control because you be giving or sharing the authority with another entity to perform the tasks or functions of an entire department. By willingly handing over the reins of management and control, you expose your business to risks like the assumption that your outsourcing partner has the same drive, passion and standards to achieve your goals and mission.
Sometimes, this can break your business.

Communication Issues

Key points summary: The language barrier is a real struggle for your business if you are outsourcing to foreign shores. Make sure to choose efficient, fluent, bilingual workers or outsourcing partner companies.

Foreign countries with English speaking workers have a different time zone. It is one factor to consider in outsourcing especially if you need to communicate at an agreed time to discuss work functions and submission of their deliverables.

What is the medium of communication- phone, email, chat or instant messaging?

Is the outsourcing entity’s internet service provider has reliable connection speed?

Do power outages always occur with your outsourcing company or worker? What backup do they have?

Problems With Quality

Outsourcing can also be tricky with quality and quantity of output or accomplishments. You need to use a time tracker or monitor the progress of a project or task. It may lead to several revisions back and forth until the work is entirely acceptable to you. It is crucial to have a contract for added protection in case of missed deadlines, failed project output or half-baked results.

Confidentiality and Security

Passwords, entry to files and systems as well as strategies for your business’ core operation is your lifeblood to keep it afloat. Be prepared to address the risks and take necessary precautionary measures, and backup them up with conditions stipulated in the contract between you. Non-Disclosure Agreement is definitely a must for protection.

In any business decision, you take risks so better weigh the pros and cons of any strategy including outsourcing a function or your whole operation. Before deciding, always consider the impact it will bring to your company culture like existing operations and the morale of your local workforce because this can be bad or good for your business.

Sound Investments For Your Business

Sound Investments For Your Business

Achieving a successful business leads to countless possibilities. You tend to think of starting a new business, venturing into new fields, more workers, and putting your money on investments. Investment is an excellent example of putting your money to good use; however, before making up the decision think about essential areas to consider.

Areas of importance

  • Think about the entire financial state of your business. Are you ready to invest? This is a simple question you should keep in mind. If the answer is yes, also remember that investing won’t guarantee to earn money, however, knowledge about investments and savings, as well as, with the help of a professional may lead you to gain financial security over the years.
  • Readiness for taking the risk. All investments have their risks. You are not sure about your dealings. However, there is a possibility of enjoyment to the reward of taking the risk which is a potential higher investment return.
  • Creating an emergency fund. An emergency fund is essential, for anyone, in cases you need it. Investment is risky, at least you are ready for anything.

What is Sound Investments?

A sound investment is the kind of investment, something we buy or do, for possible use in the future. It is investing, in a way, usage is expecting for the years to come.

Best ways to invest for a sound investment

  • Business improvement

An excellent way to invest your first earnings. You can try business reconstruction, adds new equipment, and find ways to improve the enterprise. Remember that you should not put all your money into business improvements, devote, at least, a specific percentage to it.

  • Invest in Marketing

Some of the businesses don’t think the importance of having good strategic marketing. It is a right way, not only to advertise, as well as, but also to keep track of your campaigns for proper, necessary adjustments.

Investing in your employees

Like putting money in your business improvement, investing in employees is also essential. Initiate to do training; it continues education on their part. It will help the business, as well as, help them improve their productivity.

Asking for Professional coaching

Invest in professional coaches. They will help in a strategic plan, as well as, offer guidance on becoming a good leader, how to converse investors, and even guides you to handle conflict between employees, and so on.

Sound investment often involves money. However, we are not talking mainly about the material thing. Investment means even to ourselves.

As owners, additional knowledge helps. Learning not only how to lead, moreover, on dealing with business tasks is imperative. You can also invest for your employees to improve their productivity.

Invest in training and helpful skills that employees should possess.It adds to the employee’s excitement and interest to stay in your business. For the betterment of business performance, you can invest for it as well.

You can ask professional help to guide you in planning and other documents. Proper monitoring of business state aids you to gain knowledge about the performance.

How Can A Disaster Recovery Plan Protect Your Business

How Can A Disaster Recovery Plan Protect Your Business

“Disaster Recovery Plan (DRP) summarizes the step-by-step procedure your business will execute to recover from a devastating calamity or disaster.

A DRP is a business plan that describes how work can be resumed quickly and efficiently after a disaster,” Techopedia, an IT Education site, sums it up.

However, developing a DRP is not a one-time task to get done with. Since an organization continually evolves, a DRP must be adaptable to any changes.

An effective disaster recovery plan, according to The Balance.com, “must be regularly reviewed and updated to make sure it reflects the current state of the business and meets the goals of the company.”

Purpose of making a DRP

Techopedia implied in its article that “a Disaster Recovery Plan enables the IT group to recover enough data and system functionality to permit a business or office, to be specific, to operate – even possibly at a minimal level.”

After a disastrous event, an effective DRP guides an organization to retrieve the necessary data and information. That is, in spite of what may happen with your system.

This way, your business bounces back and rerun its operations.

How to prepare a Disaster Recovery Plan?

This sample scheme from The Balance.com focuses on a DRP for a possible loss of your business office, because of fire or a natural disaster like flood.

1. List of Jobs. Jot down and sort jobs according to its importance which needs to be functioning at once. Include here the list, which jobs need to be relocated.

2. Inventory needed office equipment. Include only the most important items and equipment’s needed to resume work as immediately as possible. (Desk and chair, computer, computer software, telephone, calculator and cash register)

3. List supporting equipment. These are the items utilized behind the scenes. (servers, server software, data backups, business phone system and office safe)

4. Alternate office location. Research in advance where do you plan to put up your Disaster Recovery site; remember you don’t have to rent out a place.

5. Insurance and budget. Determine how much do you need to get all the items or equipment’s you need and be sure to allocate and save that amount for your recovery plan.

6. Share the Plan and Store It Offsite. Share the plan with at least one person or a team. Make another copy as a back-up and keep it on a secure place outside or away from your office. Be sure you have easy access to it in case a disaster happens.

The advantage of creating DRP ahead of time

It protects and minimizes the chance of losing your business’ important data and system. When unexpected catastrophes happened, plan ahead and document every DRP procedures to save time, space and money.

Techopedia elaborates this,

“This is one reason why off-site hosting of all IT services can be a good choice for the protection they provide; in disaster situations, personnel can access data easily from a new location, whereas relocating a terminally damaged data center and getting it operational again is not an easy job.”

What do you think about this? Do you agree that Disaster Recovery Plan can protect your business?

6 Traits Of An Effective Business Leader

6 Traits Of An Effective Business Leader

Being a business leader is not an ordinary job no-ordinary job, it needs a lot of practice, and it may take a lot of time to be considered effective.

As a leader, it is essential to be a potent one as this could significantly affect the future and success of your business and without it, you will never reach the full potential of everything.

You need to have these to attributes as a leader for your business to have the chance of succeeding the business’ success:

Vision Setter

A vision inspires action which creates the will and energy to make it happen; it’s a practical guide for setting goals, objectives, making decisions and evaluating and coordinating the work on any project no matter how small it is. So, it should be clear, be positive and be big enough to provide inspiration, generate energy and get past the tight spots. Plan and act your vision.

Good Communicator

It is all about communicating. The leader who communicates effectively with the team will not only help complete the projects successfully, but it also enables the organizations to achieve growth and success. A leader who ignores feedback while communicating is a barrier, that’s why it’ll always be a 2-way process.

Fair

Fairness is important in handling issues with clearly established principles whatever positions they may have may ensure to reach a positive outcome. Treating others equally whatever circumstances they may have is a must-have as a leader, as a result, it can create trust and respect.

Knowledgeable

‘Knowledge is power’. Having no knowledge greatly affects everything especially in the decision making. A person cannot decide on their own if they are not knowledgeable on a certain matter. Hence, the more knowledge you have, the more power to see the outcome of your ideas.

Never stop learning to expand your abilities and capabilities to deal the bigger and tougher situations you may encounter.

Possess Perseverance and Endurance

An effective leader needs these qualities: perseverance and endurance, as perseverance is to continue moving and endurance is to stay firm and the capacity to last, despite the obstacle that they may encounter in achieving success in life and business.

Customer and Employee Focused

To be a good leader, you have to show everyone that you care about them and that they can trust you, not just to your customers but to your employees as well. Satisfying the customers’ needs leads to their loyalty and could give their honest opinion which could bring company’s success because of the ideas they might share or an area where it needs improvement. On the other hand, listening, supporting, recognizing and mentoring your team members encourages them to work better.

Having these qualities and characteristics significantly improves in almost all aspect, to yourself as a leader, to your company, to your employees and to the customers who are vital people in achieving your goals in making a bigger empire. If some of these can’t be found when you assessed yourself, don’t lose hope, it is still possible to develop these traits and improve the possibility of being an effective and a great leader.