A Small Business Forecast: Let’s Try Optimism!
As I draft this blog after the epic 2010 blizzards, it becomes easy to see how challenges can make us all feel a bit “snowed in.” Thirty inches of snow will hinder even the best of plans and intentions. Much like a recession can hinder the success of many small businesses. Will 2010 be better for business than 2009?
There is much information on the web regarding the trends and concerns of small business and all seem to agree that the major issue is the economy. The top five concerns facing small business are all regarding costs. The cost of Health Care and Social Security, the cost of increased federal and state taxation and energy costs are all at the forefront. These major issues along with the other expenses of operations are still a major snowstorm for business to navigate through. Optimism will be a key to small business success.
A recent survey of businesses with 5 – 499 employees showed that business optimism is currently at a twelve month high. Most would agree that this level is at its highest point since 2007. The survey which is ongoing was conducted by the American City Business Journals. It shows 75 percent of business decision makers thought at the end of 2009 that their prospects would be better for the next twelve months. Perhaps the most positive sign was that the number who felt the overall economy is turning around jumped from 28 percent last August to 40 percent currently. However, it must be stated that the level of optimism was still overshadowed by some rather dark clouds.
The survey also showed an increase in overall concerns about business safety and survival. This is a natural reaction to a severe business climate. This is also reinforced by the high percentage of business owners who still have concerns about the overall US economy. However, another sign of optimism was clear shift of concern toward employees; 47 percent of current business owners were more concerned about finding and keeping employees compared to just 27 percent less than six months ago. That movement is typically seen as a positive trend for the whole economy since it indicates a more robust job market. A higher rate of unemployment can produce this effect as well. Seems there are almost as many negatives as there are positives.
Winston Churchill once said “I am an optimist. It does not seem too much use to be anything else.” There must be an emphasis on this type of positive thinking if small business is to survive. Just as I will have to dig out today one shovel at a time….so too will small business have to grasp a positive outlook and dig deeper to find solutions to the trials ahead. This is not a time for pessimism but a time for action. Small business should channel its focus on how to take advantage of an improving economy. Revisit your business plans, are they working or not? Measure and evaluate your customer satisfaction. Reexamine costs, personnel and equipment as well as infrastructure. Work smarter and harder and from positive energy will come success.
Will 2010 be better than 2009? Let’s stay OPTIMISTIC!
Hail to the King
“The Customer is King”, this quote is listed from an “unknown” source – meaning that we can’t offer proper credit to any one individual for this timeless description. However, we can probably assume that they were a business person who truly had a realistic grasp on how to achieve success.
“Do what you do so well that they will want to see it again and bring their friends.” Walt Disney is credited for this quote. I think it is safe to say that he was keenly aware of the importance of creating and maintaining customer and brand loyalty. The success of the Disney Corporation is nothing short of phenomenal. People visit their parks, view their films and buy their brands consistently – time and time again! Another business icon – Sam Walton, founder of Walmart, Inc., offered this quote concerning customer service “The goal as a company is to have customer service that is not just the best, but legendary.” There is probably a Walmart within several miles of most of us. Mr. Disney and Mr. Walton achieved success by exemplifying the quote from the unknown source. In essence – treat your customers like royalty and they will be loyal.
Obviously the first step toward such success is recognizing who your customers are and performing at a level of excellence that will bring them back to your products and services. True brand and customer loyalty is what separates successful companies like Disney and Walmart from the legions who compete with them. The best way to test your customer service and your client’s loyalty is by examining repeat buying patterns. Given the two examples offered – we can say that most of us have been to a Disney movie or park more than once and most of us visit our local Walmart on a very regular basis. The point is that by rewarding your patrons with excellent service and products – you will retain them and they will recommend you to others.
The purpose of my blog is not to review these success stories – but to offer praise and appreciation to the thousands of repeat clients who patronize Harvard Business Services, Inc. and who refer others to our services. As we begin this new decade – we want to say “Thank You!” to all of you. Our statistics show that repeat clients accounted for more than fifty percent of our business in 2009! Stop and consider that one out of every two clients who used our services either came back and used them again or referred another client to us. That says a lot about our fine family of patrons – they are loyal and they deserve the “royal” treatment. It also says a lot about our company and the level attentiveness paid to each of the “kings” that we serve. A thank you must also be offered to everyone at Harvard Business Services, Inc. who apply customer service at such a high level and inspire such a following. Being a sales executive; I often think of another quote “Nothing happens until someone sells something.”
Although this may give some undue credit for customer satisfaction to a respective sales team or representative – one must also consider the adverse – What if nothing happened after something was sold? Harvard truly exemplifies a team effort when it comes to customer service. Everyone plays a very important role and deserves ample credit. The excellence achieved by all demonstrates our royal approach to our service. Again – to all of our fine patrons we offer thanks and we look forward to serving all of you in the coming years!
In closing – I will offer one more timeless quote which was also offered by another Unknown source – “If we don’t take care of our customers, someone else will.”
Simple Steps to Good Business Credit
Filed Under: INC Knowledge
Tags: Business Tips, Entrepreneur, INC Knowledge
Establishing good credit for your business may be one of the most important issues facing any new entrepreneur. There are some similarities to building personal credit and some very crucial differences. Hopefully, we can offer some general tips to make the process less burdensome and better understood.
Don’t Procrastinate – Incorporate! – As a sole proprietor it will be difficult to establish business credit separate from your personal credit. This facilitates the need for establishing an LLC or a Corporation. The creation of the separate legal business entity will lay the basic foundation for obtaining separate identifying factors to help build the business credit. Many sole proprietors waste valuable time which could be used to create a positive credit background by avoiding incorporation. Harvard Business Services, Inc. can help to create the LLC or Corp. quickly, affordably and efficiently.
Identify Your Business! – Simply put – this means that most new corporate entities will take the first step toward good credit by obtaining a separate EIN or Tax ID Number for the business itself. In essence this procedure will create a taxpayer identification number for the new entity – much like a social security number is utilized for an individual. This will help to set the business apart from any negative personal credit history and create a boundary between the two. The process is quite simple and can be achieved also with Harvard Business Services, Inc. – or can be obtained independently from the IRS.
Gotta Keep’em Separated – not only is this a popular song lyric but it also applies a solid rule to good business credit – keep business and personal credit separate. This is initiated by obtaining an EIN for the company and is maintained by opening and keeping separate bank and credit accounts for the business and the individual. There is risk associated with mixing the two and can create liability issues toward personal assets if left comingled. It may take at least two years for the business account to be offered enhanced credit opportunities. After that period, typically, the personal history is not considered and the business can step forward on it’s own with fresh clean credit.
Obtain a Business Credit Card – This will get an initial credit report started. It will be very beneficial if one is obtained that reports to all three major credit bureaus. It is also a good idea to establish more than one card to strengthen the credit history. Many business owners will usually use more than one business credit card.
Pay Your Bills On Time – This may be obvious, however, this is where many businesses fail through over extension or a poor payment approach to their respective debts. Typically, by paying vendors and creditors on time – the credit opportunities will be enhanced. Most creditors and vendors will report to the credit bureaus and a good history of payment will lead to a good level of credit. Also, be careful not to over extend by opening too many credit accounts.
Building good personal credit will make your personal finances much easier and the same can be assumed for building good business credit as well. It may take a while to establish – but once the initial steps are behind you the opportunities will become very real! Harvard Business Services, Inc. can help you to take that first step toward good business credit!
Document Confusion
Filed Under: Delaware, INC Knowledge
Tags: Delaware, Documents
Unless you have incorporated a LLC or Corporation in Delaware before; there may be some confusion regarding recognizing just which documents are which. In fact, we experience many clients who call after filing; inquiring as to where the “articles” are or why their LLC has no Certificate of Incorporation?
We hope to minimize future confusion by offering some pointers and guidance pertaining to the documentation of your Delaware corporate entity.
First, we will start with the General Corporation. The document of filing is known as the Certificate of Incorporation and the articles are known as the Articles of Incorporation. The Certificate of Incorporation is the document that Delaware issues to prove a corporation’s filing has occurred. The Articles of Incorporation are defined as the basic charter of a corporation which indicates the name, basic purpose, people incorporating, amount and types of stock which may be issued, and any special characteristics such as being non-profit. Where the confusion typically begins is when the client fails to realize that these documents are one in the same. The Articles of Incorporation are contained in the Certificate of Incorporation and are numbered. Many people who incorporate look for two separate documents and feel they may be lacking one or the other. Harvard Business Services, Inc. will typically issue a standard Delaware Certificate of Incorporation with ten numbered Articles of Incorporation upon it. However, we can file custom articles as well – so long as we receive them prior to the filing.
The Limited Liability Company has a different formation document called the Certificate of Formation and the two or three numbered articles upon it are known as the Articles of Organization. The Certified copy of the Certificate of Formation serves as proof of the LLC filing. The Articles of Organization will express the name of the LLC, the address of its registered office or agent of process and any other matters which the members decide to include therein. Again, as applies to the Certificate of Incorporation – these are contained on the one Certificate of Formation – or one document. The Delaware certificate offered by HBS will show two number articles of organization.
Lastly, the Delaware Limited Partnership has different filing document known as the Certificate of Limited Partnership. This certificate offers proof of the filing of the Limited Partnership and its articles are known as the Articles of Limited Partnership. These articles express the name of the LP, the address of its registered office or agent and the names and addresses of the general partners. The Delaware LP certificate offered by HBS has three numbered articles; found on the one certificate.
I would also like to take this opportunity to present a clear understanding of the two Delaware validation documents which are known as a Good Standing Certificate and a Certified Copy of the Certificate of (Incorporation / Formation / Limited Partnership). These can be tricky because from exterior perception they are very close in format and appearance; however they differ in the language. They each have the printed word “Delaware” at the top of each document in bold print. Each also has the name of the current Delaware Secretary of State – Jeffrey W. Bullock – in the first sentence. They are different in the wording: “do hereby certify the attached is a true and correct copy” reveals that this document is a Certified Copy. The Good Standing Certificate states – “do hereby certify (company name) is duly formed under the laws of the state of Delaware and is in Good Standing”. The trick is to look for the words Good Standing and you will soon realize whether you are looking at that document or a Certified Copy.
Incorporation documents can be a bit confusing – but with all the skilled professionals on staff at HBS to help you; there is no need to struggle with questions or concerns. Help is just a call or email away!
Mail Forwarding – A First Class Service
Filed Under: Registered Agent
Tags: Mail Forwarding
Harvard Business Services, Inc. has anticipated and served the needs of business owner’s for almost 30 years. From Incorporation to Qualification – our specialty is quality service backed by unmatched customer support. One of our most popular services through the years has been our Mail Forwarding. Many domestic and international clients utilize these services and for some very good reasons.
Convenience: We offer a valid business mailing address – not a PO Box – with full mailroom and staff to offer support. First Class Mail is received and sent to you in convenient bundles with all Third Class materials discarded. This means that you will never receive “junk” mail through our service! Clients simply offer their company name with our address and the mail is sorted accordingly by company name and account and mailed to you in our mailing package – it’s not actually forwarded. From a cost standpoint – streamlining mail efforts can sometimes also offer savings to the company in labor and infrastructure.
Privacy: All mail services are confidential and address information is never shared with any third party or made public. Since only the company name is offered; individuals are offered anonymity from postal and delivery perspectives. Utilizing our address is sometimes much more secure than offering a home address for business functions.
Perception: Many domestic and international clients favor the perception of a Delaware business mailing address to go along with their Delaware incorporation or LLC. Delaware is home to some of the most prestigious companies in the world and sometimes we are judged by the company we keep.
Flexibility: Several levels of service are offered to keep the cost down for those clients who may not expect much mail – and unlimited service is available for those who need full service year round with a high volume of mail. Delaware offers many benefits to those who register their assets in Delaware – our FAA Package offers a service well suited to handle mail for airplane ownership and registration. This service can also be fitted to apply to vehicle and yacht registration as well.
Cost: If you consider that we include all postage in our package costs and keep in mind the current rate for first class mail (44 cents per letter) – our unlimited package will handle an unlimited number of pieces over a full year for less then one dollar per day!
If your business correspondence is a concern – let the professionals at Harvard take the hassle and “junk” out of your mail situation! For details on all mail services – please use this link: http://www.delawareinc.com/ourservices/mailfwd.cfm or call 1-800-345-2677 to start your first class service today!
