Service Excellence: The Most Important Thing

I have two confessions to make. One is...I am a huge fan of Zappos.com. So much so that I am dedicating a large chunk of this article to their renowned service culture. Every time I meet someone who has shopped at Zappos.com, the reaction is always the same, "I love Zappos!", "They are the best", etc. For those who don't know, Zappos.com is a successful online shoe and apparel retailer. My second confession is, as this article is being written (June 27, 2011), I have never actually shopped at Zappos.com, although I intend to whenever I get a moment. In case you are wondering why I seem to be such a staunch advocate of their brand without personally shopping their yet, the answer is simple. They understand the most important ingredient needed in order to build a world-class service culture.

Here it is: If your goal is to create an iconic and renowned service culture in your company, then service must be The Most Important Thing Your Company Does. Now, I don't mean that you work in a restaurant company that provides great service, or a nursing home that provides great service. I mean that, instead, you work in a great service company that operates restaurants or a great service company that runs nursing homes. The paradigm shift for those who truly understand (or "get it") is monumental. I worked at the Ritz-Carlton Hotel Company from 1996-2006, and throughout most of my time there, the senior leaders were emphatic that we were, first and foremost, a "service company". A service company that happened to manage hotels, restaurants and spas. The same is true for Zappos.com. That mindset pervades everything about their business from how they treat their employees to how they serve their customers. It even translates to how they relate with their vendors (vendor appreciation parties and other perks)!

So, the fundamental questions in this article are:

•What would happen if service excellence becomes the Most Important Thing your company does?

•How will your workforce see and feel the new emphasis on service?

•How will your customers see and feel the new emphasis on service?

•How would your hiring and orientation processes change?

•How would the selection of services your company offers change?

•How would the delivery of those services change?

Tony Hseig is the CEO of Zappos.com and in his book, "Delivering Happiness", he recounted the exact moment that he and his team decided that service would be the Most Important Thing they would do.

He wrote, "Even though it would hurt our growth, we decided to cut most of our marketing expenses, and refocused our efforts on trying to get the customers who had already bought from us to purchase again and more frequently. Little did we know that this was actually a blessing in disguise, as it forced us to focus more on delivering better customer service. In 2003, we would decide to make customer service the focus of the company."

Tony went on to explain, "Our philosophy has been to take most of the money we would have spent on paid advertising and invest it into customer service and the customer experience instead, letting our customers do the marketing for us through word-of-mouth". After reading that passage, I began to wonder about how powerful it would be if businesses truly understood the positive ramifications of that quote.

All this sounds good, but you are probably wondering how this shift can manifest itself into customer-focused service processes. Here is one of many examples from Zappos.com (also from the book, Delivering Happiness).

"An example of us using the telephone as a branding device is what happens when a customer calls looking for a specific style of shoes in a specific size that we're out of stock on. In those instances, every rep is trained to research at least three competitors' websites, and if the shoe is found in stock to direct the customer to the competitor. Obviously, in those situations, we lose the sale. But we're not trying to maximize each and every transaction. Instead, we're trying to build a lifelong relationship with each customer, one phone call at a time."

Hopefully, the message is resonating with you by now...the most effective way to build a service culture is to clearly make service the Most Important Thing your company does. Of course, you still have to execute your core business flawlessly whether it's a spa, hospital, or an airline. Massages, clinical procedures, and landing airplanes still must be done with excellence.

In the Washington DC metro area, there is a chain of grocery stores called "MOM's Organic Market". While their company mission is to protect and restore the environment, it is obvious that providing exceptional service is vital to their business success. We are fortunate to have a MOM's store not far from where we live, and I try to visit at least a few times per month. Recently, I decided to visit the store to buy a brand of organic milk. It was around 8:20AM, so I assumed that the store was already open. When I arrived to the store, however, the sliding glass doors at the entrance didn't open (gasp!). I then looked at the hours of operation on the front door and it clearly stated that the store opens at 9AM. Before I could turn to walk away, a store employee came rushing to the front door, unlocked it, opened it and gave me a big "Good Morning! Come on in." I was a bit confused, but delighted at the same time. Then when I actually got inside, I noticed that there were at least two other shoppers already picking up groceries. Of course, I had to ask the store employee why the store opened before 9AM, and he said, "Because we try to open as early as possible to accommodate those customers who need to stop in before they go to work. By the way, please watch your step because we are still mopping and getting prepared to officially open at 9." Wow.

After I commented to him how impressed I was with the store's service-centric philosophy, he went on to tell me that just yesterday, one elderly shopper forgot her credit card at the cash register. One of the store employees knew where she lived in the neighborhood and volunteered to take it to her house. Wow times two!

There is something special about taking service seriously. It is important to honor that all people crave to feel appreciated and taken care of. By declaring (not suggesting, recommending or inferring), but steadfastly declaring that service is WHAT WE DO, you are automatically separating your company from the competition. Those exceptional service companies will be the ones that will continue to increase their market share, retain their best employees and win over the hearts of their customers. Is service THE MOST important thing you do?

Be sure to get Bryan's book and other products at http://shop.bwenterprise.net/. While on the site, you can also shop for the latest customer service products for you and your team! Also visit http://www.bwenterprise.net to learn more about Dr. Bryan K. Williams and B.Williams Enterprise. You can subscribe to the B.Williams Enterprise emailing list. By subscribing, you will receive announcements, newsletters and other excellent resources.

About the Author

Dr. Bryan K. Williams is the Chief Service Officer of B. Williams Enterprise, LLC. He is a service expert, who has facilitated workshops and delivered keynotes all over the world for various companies. Bryan speaks on a variety of topics related to service excellence, employee engagement, and organizational improvement. As a consultant he works closely with companies to design, develop, and implement sustainable service strategies.

-We exist to serve others so they may better serve the world.-

Email: info@bwenterprise.net

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One of the Most Important Activities to Do This Year is to Document Your Services Catalogue

Firstly let's look at what ITIL defines as a service: 'A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks'.

In context a Service Catalogue provides much the same experience as dinning out at a restaurant: When you walk into a restaurant and sit down, a waiter will provide you with a menu; this is a list of the predefined meals and food options offered to you as a customer. You browse the menu options and make your selections based on your appetite at that time. Once your order is taken it makes it way to the chefs in the kitchen. The chefs will then use a 'recipe' and predefined method of preparing the specific option you have chosen from the menu.

Your selection will include a pre-defined set of ingredients and a predefined method to preparing your meal. In context a Service Catalogue is no different. You will choose your specific IT Service from the Service Catalogue, the specific components included within the Service are combined together and delivered to you via a predefined set of methods and processes. The customer experience is determined on how well an organisation (or a restaurant for that fact) is prepared prior to the offering being made available.

5 Key Considerations When Preparing to Establish your Services Catalogue

Use the following key considerations to help you frame up your scope and uncover some of the key requirements to establishing a new or enhancing your existing Services Catalogue.

1. Consider the Scope and Scale - If you have a large Enterprise IT Infrastructure and you are starting at ground zero, my suggestion is not to attempt this all at once in one go, it's important to start at the very top, the highest level of what your services are about. eg: Network Services, Application Services, Professional Services, Desktop Services. Once you have established the high level services, take some time to work through the next levels of detail.

2. Ask your customers 'What services do they believe they are receiving from IT?' do they understand the services IT is providing? By doing this you will get an understanding of any common terminology your customers are using and help to understand any key issues your customers may have with the current inventory of services and help to clarify any points to make it more simple to understand? You can do this by using a simple online survey.

3. Understand how are you currently managing your Service Requests? Is there currently a predefined list of Service Requests available to your customers? There is normally a linkage between the Service Requests you offer to your customers and the overall Services you provide to your customers, spending time to understand the linkages between services and a predefined inventory of service requests will help you to understand your overall scope and levels of inter-dependencies.

4. Understand how you currently implement new IT components/new service/s into the IT infrastructure in detail? Do you have a predefined method and consistent approach to on-boarding new services? Are there existing processes in place? And more importantly are they being followed? Or is each new service implemented in a bespoke nature? If there is a predefined process to implement new services into the IT infrastructure make sure it includes an activity to update the Services Catalogue. If there is no predefine method or process to implement new services, as part of your new Service Catalogue initiative ensure you include an 'Update the Services Catalogue' activity within your scope.

5. Understand the current reporting capabilities with regard to your services - What is currently being measured around Fulfillment of services? How do you measure Customer Satisfaction? Are there SLA's in place to measure this? How are they performing?

Take your time to work through answering these questions, the answers will provide you an understanding of 'Where you are now' with regards to your services Catalogue Maturity and provide you with an understanding of the amount of effort required to effectively enhance your Services Catalogue and give your customers and greater level of service.

Good Luck!

For further free information & knowledge on how to implement ITIL & Service Management effectively visit http://www.how-to-implement-itil-servicemanagement.com/

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10 Extremely Important Tips for a Successful Business Launch

What's Your Passion? If you are thinking about starting a business, it should be something you enjoy. Since a lot of time and energy goes into running a business, it is smart to look at your hobby or professional experience as a potential business idea. For example, if you are good at sewing, consider a tailoring shop; or an accountant could look at bookkeeping or tax service. Now, imagine what your life would be like if you spent the majority of your day actually doing what you love. Do you have what it takes to be an entrepreneur? To improve your chances, here are 10 Extremely Important Tips for a Successful Business Launch.

Tip 1: The Name Game

Now that you've narrowed it down to ONE 'business idea,' you've got to figure out a name. A major challenge in starting a business is the process of searching and choosing the right business name. Choosing the right business name can mean success while a poorly thought out name could doom your business from the start. Three smart business name tips:

A smart business name must be unforgettable. It is imperative that potential clients be able to remember your business name. I'm sure most people have heard of Nike, Wal-Mart, Target, Home Depot and McDonalds. Like these household names, your name should be easy to pronounce and memorable.
A smart business name must describe what your business does. When you create your business name, potential clients should be able to understand what products or services your company offers. For example in ' Browder Consulting Group,' the word "Consulting' is a clue that I provide specialized advice; or as in Lynn's Styles & Cuts,' the words 'Styles & Cuts is a clue that this is a beauty salon.
A smart business name should be as short and sweet as possible. As you advertise your business, it is important that your name display well on your marketing material, such as business cards, ad campaigns, domain name and email. As potential clients search for you on the internet, you want it to be an easy spelled and searchable name.

Tip 2: On a Mission

A mission statement is an important tool that tells others who you are, what you do, how you do it and why you are superior than your competition.

It identifies and clarifies the business' vision, purpose and direction.
It provides the path and focus needed for making and implementing decisions.
It helps define to your future employees what they are doing, why they are doing it and where they are going.

Tip 3: Make it Legal

Be diligent in choosing the best Legal Form for your business. This is one of the first important decisions that you will have to make. This decision can have long-term implications, so here are a few things to consider when deciding which business structure is best for your business:

Scope of business you plan to attain
Size of your business
Business's vulnerability to lawsuits
Tax implications based on the different ownership structures
Level of control do you wish to have
Expected profit/loss of the business

Tip 4: Surround yourself with a Progressive Team

Who do you need to know or collaborate with as a part of your external team? Having the right people on your team will allow you to focus on your business and help you to avoid costly mistakes. For example, you might need the following:

Certified Public Accountant: best form of ownership, establish bookkeeping, record keeping procedures and tax planning, etc.
Business Attorney: reviewing lease contracts, determining the right business structure, etc.
Computer Information Technician: set up systems, repair issues, etc.
Human Resource Management Consultant: assess your current HR processes for compliance, navigate through delicate labor issues, set up hiring processes, compensation and benefits and create employee manuals, job description and Standard Operation Procedural manuals.

Tip 5: Research Licenses & Permits Needed for Your Industry

As you can see, there are many steps involved in starting a business. With the daunting task of figuring it all out, it's easy to overlook the important legal requirements associated with permits, licenses and registrations. Here's a list that your business might need:

State Requirements: Business licensing requirements may vary from state to state.
Business Licenses: Depending on your state, county and city, a business license may be required for tax purposes and to conduct other basic business functions.
Occupations and Professions: Depending on your profession, state licenses may be required for occupations such as, appraisers, accountants, barbers, building contractors, cosmetologists, funeral directors, physicians, private investigators, private security guards and real estate agents.
Tax Registration: Some states carry a state income tax. If you establish your business in a state that does, you'll have to register and obtain an employer identification number. If your business engages in retail sales, you will need to obtain a sales tax license.
Trade Name Registration: If you plan to run your business in your local community only, registering with the state may be adequate.
Employer Registrations: Are you planning to hire employees? If so, you'll probably be required to make unemployment insurance contributions. '

Tip 6: Know Your Clients

A common mistake that I encounter with new business owners is that they don't know who their customer is... possessing a poorly defined target market. Most want to sell their products or services to 'everybody' instead of narrowing their targeted customer base to a manageable size. You must do your homework... i.e., market research. I've created a business resource guide to assist you, Resource Guide for Women.

Tip 7: Got Marketing?

In business, marketing plays a key role in getting the word out to your prospective clients. You must create an image and be consistent! It's important to mold and hone your business image to successfully appeal to your prospects and customers. By choosing a relevant company name, answering your phone professionally, creating a professional and clear elevator pitch, investing in professional business cards, logos and brochures, etc... all are key in marketing your business.

Tip 8: Don't forget Uncle Sam

Understanding tax obligations is one of the most important issues facing small businesses. The local, county, state and federal agencies does not care that you didn't know or you forgot to pay your taxes. You will be subject to penalties for not paying on time. Here are some resources to assist you:

For a list of state agencies, business.gov/states/
For a SBA resource guide by state, smallbusiness3.com/magazine
For IRS business information, irs.gov/businesses/index.html

Tip 9: Don't forget the 'B' Word... Budget!

Create a start up budget. Because businesses are different, each will have its own specific cash needs at various stages of development, so estimating your start-up costs may vary. Some businesses can be started on a shoestring budget, while others may require considerable investment in inventory or equipment. It is imperative to know that you will have enough money to launch your business venture.

A few ways to prepare:

Create a list of anticipated expenses for your first three years
Projections are fine, be realistic

Have a tracking system

QuickBooks, Quicken, Ledger, Excel spreadsheets, I don't care which you use.... It's important to put a system in place that works for you. Personally, I use QuickBooks. I can send files to my CPA, easy to work with. In addition, as the treasurer on the board of a non-profit organization, I also use Quick books to reconcile the organization's bank statements and to bill our member's annual dues.

Open a business checking account. The worst thing you can do is run your business from your personal account... it is an accountants nightmare. Open up a business account so that you can separate the two... plus it tells others that you are serious and professional.

Tip 10: Put it all together... in a plan!

Last but not least, you must write your business plan. By failing to plan, you are planning to fail. If you can't take the time needed to plan for the success of your business, then don't waste your time starting one. Statistics show that 8 out of 10 businesses fail within the first three years. This is staggering but true! Invest your time in researching and writing a business plan. Many prospective entrepreneurs think that a business plan is very hard and tedious. The truth is it's a powerful tool that can help you plan and achieve business success.

So, what is this thing called a business plan? Well, a business plan is your blue print or what I tell many of my clients, it's your bible! A business plan defines your business, identifies your goals, and serves as your company's resume. It will help you arrange strategic alliances, obtain financing and attract key personnel. By planning for success, you will be able to overcome many hurdles that may arise.

A closer look at why a business plan is important:

To secure funding, your lender will request your business plan with completed financials. DO NOT approach a lender without having a completed business plan. In his/her eyes, you will look unprepared and too risky. By being prepared, you will have a better chance at securing funding for operations or expansion of your business.
It is a great way to test the feasibility of your business idea. By the time you complete your market or competitive analysis, you will have a clear picture of the viability of your idea.

As you can see, there is a lot of work involved before starting a business. To ensure success, it is important to research thoroughly, take advantage of the resources available to you and learn as much as you can. Preparation is key to a successful start!

Sylvia Browder is CEO of Browder Consulting Group, a virtual small business consulting firm. In her role, she helps Women in Business grow and succeed. She is Founder of National Association Women on the Rise, a virtual community for aspiring and established women entrepreneurs. The association's mission is to provide professional and personal resources while uplifting and empowering women entrepreneurs through collaboration, education, mentoring, spiritual and peer support, leadership and networking. She is 'employed as Project Director and business consultant for the Women's Business Center, Inc, a non-profit economic development organization with a mission of empowering women to start and grow successful businesses. She has served as an online volunteer SCORE counselor since 2004. She also serves as a Technical Assistant Provider for SBA's Community Express Loan Program. For FREE weekly articles go to Sylvia Browder's Blog for Women Entrepreneurs, http://www.sylviabrowder.com. She can be contacted at info@browderconsultinggroup.com.

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Business Ethics - Why Are They Important in Small Business?

Rarely is there the individual who does not encounter an ethical or moral dilemma at some point in his or her business life. Whether that individual is the owner of a multinational corporation, a small business entrepreneur, or a new or established employee, everyone is likely to have to face such an instance eventually. Much like a personal ethical dilemma, an individual is faced with making a decision based on how it will affect not only himself, but on how it will effect the organization as a whole. One of the major problems when dealing with an ethical dilemma in business is that individuals are often swayed by business profits and the legality of a decision.

The Institute of Business Ethics, whose slogan is "doing business ethically makes for better business", describes the term business ethics as such.

Business ethics is the application of ethical values to business behaviour. It applies to any and all aspects of business conduct, from boardroom strategies and how companies treat their suppliers to sales techniques and accounting practices. Ethics goes beyond the legal requirements for a company and is, therefore, discretionary. Business ethics applies to the conduct of individuals and to the conduct of the organisation as a whole. It is about how a company does its business, how it behaves intrinsically.

As clear as this definition is, it is certainly open to interpretation. Therefore it must be understood that the application of business ethics to any situation is entirely subjective.

One can also understand business ethics, and ethics of any kind, as applying a sense of fairness to a situation. Even with a sense of clarity applied to the use of business ethics, reaching a just and moral decision can be a complex process for most individuals. The subject of business ethics has been a source of great debate in recent years as the heads of major (and minor) corporations are revealed as less than ethical characters both in the way they do business and in their personal conduct. However, it may be said that any individual who does not practice business ethics cannot be personally ethical even though the reverse may not also be true. Ethics in generally has a long history of applications. Centuries ago a man's ethical practices defined who he was as an individual. However, as populations grew, the necessity for incorporating the best business practices into a company became somehow less important because there was always another customer around the corner and the owner of a business was rarely the focus of attention in a community the way he or she may have been in the past. A company's administration took a seat in the background and hired representatives to deal with any fallout. Ethics rely on several factors, one of the most important of which is culture. Again, like the business person of the past, a culture's ethics practices will largely depend upon the value that is placed on them. Business ethics have the unappealing conflict of often being contrary to what is legal. Often what is "right" is not necessarily what is legal, and a business must consider this conflict when making ethical judgments. Although there are many in the business world who believe that a business has no room for ethics if it is to function competitively, the numbers of corporate whistleblowers indicate that there is still room for ethics in business.

Western societies place a great deal of emphasis on success. However, in business, there are often conflicts between ethical behavior and business success. This disparity is often multiplied for the small business owner. To compete with larger businesses, it may be tempting to abandon ethics just to make an adequate profit. Additionally, the small business person is relatively autonomous in his or her decision making; he or she does not have to answer to a large employee base or a corporate governing board. It is also interesting to note that the small business leader often has his or her decisions impact a greater number of individuals than does the employee of the small business. For instance, a small business owner may have his or her decision affect his or her customer base as well as his or her employee base. The employee will likely find that his or her decision will only directly impact his or her immediate circle of coworkers. However, the pressure to succeed is both an internal and an external pressure and often leads individuals to make ethical decisions that are based more on those pressures than their own moral judgment. As consumers grow wary of those that they do business with, one must understand that there is just cause for such wariness. The cynical American consumer has learned, often the hard way, that there is little room in business for ethics. In a society where the customer used to be king, the consumer has more often than not experienced several distasteful experiences with business both large and small.

Some experts argue that any focus on profitability is bound to test the limits of ethical practices. They assert that to assume that the primary function of a business is to serve its client base in an ethical manner is idealistic and that the nature of a free economy dictates that ethics must take a back seat to increasing profits. Although it is rarely the conscious intent of a business to harm the public interest, reality dictates that the businesses ability to increase profits will determine its success. Publicly owned companies experience extra pressure in this arena. It is difficult to draw investors to a company based on its ethics. Investors are looking for a return on their investment and ethical performance does not equal dollars. There are economists that assert that, in any competitive economy, ethics are impossible to uphold; that a company can legitimately bypass ethics with the excuse that unethical practices are the only way to make a profit.

Unlike the larger corporations, the small business leader is in a unique position to shape the ethical practices of his or her business. Small businesses have a smaller employee base to police when applying ethical policies than do larger businesses. It is important to understand that, similar to the ethical dilemmas of the large corporations, although an individual surely knows the difference between the correct ethical decision and the wrong road, the choice to throw ethics to the wind is often made because the unethical choice is more profitable. This may, however, happen much less often in smaller organizations because the individual or individuals who are harmed by the unethical decision and someone is always harmed, is more visible to the small business. Major corporations and their decision making machines are often far removed from the individuals that their immoral and/or unethical decisions effect. This may make the wrong decision much easier to make.

The unique position that the small business owner is in regarding the formation of an ethics policy yields a great responsibility. A proactive business leader formulates a statement of organizational values that employees of the company are expected to embrace - at least while performing duties in the service of the company. An organizational ethics policy is an announcement to the employees, the customer base and the community as a whole that the business is prepared to conduct itself and its practices on an ethical level. Such statements invite the respect of all parties involved in doing business with such an entity. However, it is imperative that the small business owner not make the same mistake that larger organizations often do; the ethical policies that a business develops must not be in conflict with the organizational goals. It is unethical in itself to develop an ethical policy that an employee cannot possibly follow and maintain his or her employment. When faced with the decision between an ethical decision and his or her job, an employee will almost always choose the job.

Therefore the policy must be in reasonable alignment with the organizational goals of the business. It is equally important, and maybe more so, that the small business leader lead by example. Employees, especially in a smaller organization, are less likely to conduct themselves ethically if they receive implicit permission not to. The end result of such a practice is that the small business owner can be assured that he or she is conducting business in a manner that encourages the trust of his or her customers as well as his or her employees. And since consumers have become very wary of doing business with an entity they feel they cannot trust, the small business can enjoy the profits of a loyal customer base. The small business owner has an advantage over the larger corporations in that it can elicit the trust of the consumer by applying ethical business practices that give the customer the feel of an equal business relationship rather than one where the consumer buys based on need alone. There are many that believe that such practices are capable of drawing business away from the large corporate entities and back into a customer-focused business format.

Rebecca J. Stigall is a full-time freelance writer, author, and editor with a background in psychology, education, and sales. She has written extensively in the areas of self-help, relationships, psychology, health, business, finance, real estate, fitness, academics, and much more! Rebecca is a highly sought after ghostwriter with clients worldwide, and offers her services through her website at http://www.forewordcommunications.com/

For intelligent writing solutions for your business, visit my website.

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What's Your Business's Credit Score? Why is it Important?

You begin building personal credit from the time you start making and spending money. All of the efforts you put in to keeping your personal credit sparkling clean is important so that you can get the credit you need when big purchases are needed, or when you have unexpected expenses that need financial backing. However, using that great credit rating to back your business is not smart. You risk too much by using your personal finances and family's resources to boost your company. Even if your family's budget can afford to keep the business running, any falter, or failure is likely to cause hardship, and possibly financial ruin.

Another reason, beyond the possibility of financial collapse, for separating your personal finance from that of your business is inquiries. The number of inquiries your credit gets has a negative impact on your score. Typical personal accounts are not hit that often with credit inquiries unless you are actively seeking financing. When you own a business and set up vendor accounts, lease land or office space, borrow or buy equipment, and many other times, your report will be looked at, adding to the number of inquires on the account. Making your business credit separate keeps all of those inquiries off your personal credit score.

Instead of taking chances with your personal credit and financial future, you should separate your finances from that of your business. That means starting with a blank slate for your company, though, and may mean it is impossible to get financial help. Once you successfully make the division between your money and your business' money, you need to build its credit rating and guard it as carefully as you do your personal credit.

Business Credit Scores

If you already keep track of your personal credit score, as you should, you already understand the idea behind credit scoring. Those numbers you are accustomed to will throw you for a loop when you begin to track your businesses credit scores, though. The markers are not the same. Personal credit scores are rated from 300 to 850 with a good score being 650 or better. Business credit scores are rated from 1 to 100. A credit score of 75 or better is excellent.

The Big Three

Just like in your personal credit reporting, there are three major business credit reporting companies. These three credit report companies work the same as they do for personal credit. Two of the business reporting companies you will recognize, as they have a division that your personal debts are reported to: Experian, and Equifax. The third, Dun & Bradstreet, is a major force in business finance, and has many advantages and benefits for small business owners.

- Dun & Bradstreet

Dun & Bradstreet provides a wealth of information for business owners. The articles, reports, and services are of special help for small business owners who do not have the advantage of large in-house accounting staff, business experts, and financial advisors. Even if you have professional help and business counseling, those sources are not available to you at all times the way corporate employees are for their employers. It is in the best interest of a small business owner to make it their business to learn all they can on top of relying on the help of professionals.

The small business solutions section of the Dun & Bradstreet website offers podcasts, articles, white papers, and many other resources for all businesses. Industry experts from all areas of business finance develop the information provided on the Dun & Bradstreet website. Dun & Bradstreet is a highly respected credit reporting agency as well. Financial institutions use their information to determine whether to give loans to businesses of all sizes.

- Equifax Small Business Financial Exchange

The Small Business Financial Exchange (SBFE) provides credit cards, financial backing, and other backing for small businesses. Equifax is a partner with the SBFE and provides a credit background for any small business seeking credit with a SBFE member institution. Because Equifax is such a respected name in credit information, the members of the SBFE rely on it totally as a means of judgment.

- Experian Small Business Reports

Experian Small Business Reports operates the same as Equifax Small Business Financial Exchange in that it offers its members a method of underwriting loans by using a credit scoring system. Both Experian Small Business Reports and Equifax Small Business Financial Exchange are equal in value to the lenders and leasing agents.

Neither Experian nor Equifax offer the many benefits to the small business owner that Dun & Bradstreet provide. Experian and Equifax exist primarily to benefit their members who are the lenders and financers you do business with to get financing. However, registration with them so that you get a credit rating built up is imperative. It is very important to have a good financial credit score with all of the companies in question so that one does not single you out when you need a reference from another.

Beyond the Beginning

Just like with your personal credit, business credit is an ongoing effort. You need to keep a constant eye on what is going on, make sure all entries on your account are accurate, and prevent your business from incurring damaging reports. You need to get regular copies of your business' credit report so you are aware of what lenders are seeing.

When you set up accounts with vendors make sure they report the good payment records as well as late payments to the credit reporting companies. Make your payments diligently to build up the credit rating that will help your business get loans when needed. Credit is important for other aspects of running your business beyond loans. Any time you wish to lease space, or rent equipment property owners will check your credit worthiness as a way of judging your qualifications.

When To Seek Help

The best way to insure a solid start is to seek professional help when you start your business. Getting off on the right foot can save you many hours of headaches trying to straighten up a mess afterwards. You may never get a second chance to clean up your business credit either. Unlike personal credit that you have a lifetime to work on, make corrections, and recover from a few bad decisions, a business will die when its credit dies. If you cannot recover it fast enough it will not likely get a second chance to develop good credit.

Professional counseling will make sure you truly separate your personal and business finances. It will help you file all the necessary paperwork for the legal issues involved with financial separation. Professional help will also make sure you are registered with all three of the appropriate business credit reporting entities. Professional business credit builders are likely to have a vast network of financial institutions they do business with and your connection to them is easier when your credit counselors open the doors for you.

If you already keep track of your personal credit score, as you should, you already understand the idea behind credit scoring. Those numbers you are accustomed to will throw you for a loop when you begin to track your businesses credit scores, though. The markers are not the same. Personal credit scores are rated from 300 to 850 with a good score being 650 or better. Business credit scores are rated from 1 to 100. A credit score of 75 or better is excellent.

The Big Three

Just like in your personal credit reporting, there are three major business credit reporting companies. These three credit report companies work the same as they do for personal credit. Two of the business reporting companies you will recognize, as they have a division that your personal debts are reported to: Experian, and Equifax. The third, Dun & Bradstreet, is a major force in business finance, and has many advantages and benefits for small business owners.

- Dun & Bradstreet

Dun & Bradstreet provides a wealth of information for business owners. The articles, reports, and services are of special help for small business owners who do not have the advantage of large in-house accounting staff, business experts, and financial advisors. Even if you have professional help and business counseling, those sources are not available to you at all times the way corporate employees are for their employers. It is in the best interest of a small business owner to make it their business to learn all they can on top of relying on the help of professionals.

The small business solutions section of the Dun & Bradstreet website offers podcasts, articles, white papers, and many other resources for all businesses. Industry experts from all areas of business finance develop the information provided on the Dun & Bradstreet website. Dun & Bradstreet is a highly respected credit reporting agency as well. Financial institutions use their information to determine whether to give loans to businesses of all sizes.

- Equifax Small Business Financial Exchange

The Small Business Financial Exchange (SBFE) provides credit cards, financial backing, and other backing for small businesses. Equifax is a partner with the SBFE and provides a credit background for any small business seeking credit with a SBFE member institution. Because Equifax is such a respected name in credit information, the members of the SBFE rely on it totally as a means of judgment.

- Experian Small Business Reports

Experian Small Business Reports operates the same as Equifax Small Business Financial Exchange in that it offers its members a method of underwriting loans by using a credit scoring system. Both Experian Small Business Reports and Equifax Small Business Financial Exchange are equal in value to the lenders and leasing agents.

Neither Experian nor Equifax offer the many benefits to the small business owner that Dun & Bradstreet provide. Experian and Equifax exist primarily to benefit their members who are the lenders and financers you do business with to get financing. However, registration with them so that you get a credit rating built up is imperative. It is very important to have a good financial credit score with all of the companies in question so that one does not single you out when you need a reference from another.

Beyond the Beginning

Just like with your personal credit, business credit is an ongoing effort. You need to keep a constant eye on what is going on, make sure all entries on your account are accurate, and prevent your business from incurring damaging reports. You need to get regular copies of your business' credit report so you are aware of what lenders are seeing.

When you set up accounts with vendors make sure they report the good payment records as well as late payments to the credit reporting companies. Make your payments diligently to build up the credit rating that will help your business get loans when needed. Credit is important for other aspects of running your business beyond loans. Any time you wish to lease space, or rent equipment property owners will check your credit worthiness as a way of judging your qualifications.

When To Seek Help

The best way to insure a solid start is to seek professional help when you start your business. Getting off on the right foot can save you many hours of headaches trying to straighten up a mess afterwards. You may never get a second chance to clean up your business credit either. Unlike personal credit that you have a lifetime to work on, make corrections, and recover from a few bad decisions, a business will die when its credit dies. If you cannot recover it fast enough it will not likely get a second chance to develop good credit.

Professional counseling will make sure you truly separate your personal and business finances. It will help you file all the necessary paperwork for the legal issues involved with financial separation. Professional help will also make sure you are registered with all three of the appropriate business credit reporting entities. Professional business credit builders are likely to have a vast network of financial institutions they do business with and your connection to them is easier when your credit counselors open the doors for you.

http://www.businessfinancecoach.com has helped more than 50,000 businesses successfully build strong business credit scores that separate the company's the owner's personal credit.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Ten Important Things to Think About When Writing a Business Plan

1. Whether you are raising money, borrowing it, or financing a new business yourself, you should force yourself to put into writing a detailed business plan for what you have in mind. Without one, you most likely will be unsuccessful at obtaining money. With one you can guide yourself and your management team through the entire start-up process in an organized and successful manner. That being said, having a written business plan is a must.

2. If you are raising money for your business, you should first carefully think about who potentially will be providing the funds to start the business. For example, if you are hoping to borrow from a bank, your plan should clearly address the risks involved in the business with emphasis on the new business's ability to pay back any loans obtained. If you are soliciting funds from investors or venture capitalists, your plan should emphasize the business's growth potential and it's subsequent return on invested capital. At every step of the way, you should be conscious of writing FOR and TO the targeted reader of your business plan.

3. Making a detailed outline of what you have in mind is probably the most important thing you can do before you actually start writing your plan. Take your time and give your outline a lot of thought. Organize your thoughts in simple phrases or sentences and number and letter each phrase or sentence. Break down big topics into smaller, detailed lists of specific things that must be researched or said. Composing a detailed outline can be tedious, but don't slack off on this crucial part of the process. Writing from a carefully written outline will give your business plan a definite beginning, middle, and end.

4. A business plan will achieve its objectives only if it is credible. Credibility is established by the people who will be involved in the venture and how various verifiable facts and statistics are used to support the proposed business idea. The industry or market niche in which the business will compete must be extensively researched. So too must the targeted customers of the business be analyzed and discussed. Much effort should be expended to thoroughly research these subjects by using information found in libraries, on the Internet, and from companies with pertinent databases for sale.

Another source of credible information can be obtained by interviewing industry experts, suppliers, competitors, and even potential customers themselves. The depth of knowledge and insight that can be conveyed in the business plan as a result of thorough research will go far to solidify the needed aura of credibility. Remember to keep track of where you sourced your information so that it can be properly footnoted in your business plan. Footnotes add to credibility.

5. Be organized from the start. You will be surprised at how much information you can collect in a very short period of time. It is imperative that you collect and organize your information in a manner that conforms with your outline. Set up labeled files at the onset. Have a separate, secure place to store them. Plan up front how you will collect and organize information gathered from the Internet on your computer. And don't just copy information from the Internet.

Keep track of the addresses from where the information came, in the likely event that you may want to revisit some sites for clarification or additional information. It sounds old fashioned, but keep paper and pen on your person and on your nightstand at all times. Write down every fleeting thought that comes into your head. In the busy pursuit of information, it's easy to forget an idea that popped into your head the day before or in the middle of the night.

6. The body of the business plan must contain the usual descriptive elements such as a clear statement of the business, the planned marketing strategies, a thorough analysis of the competition, a description of operational procedures, an honest list of perceived risks, and other written sections pertinent to the business idea. But what will set your business plan apart from others will be the insertion of a "compelling reason" why your business idea is unique. To just say "this business is different and therefore it will be successful" probably will be ignored or discounted by a sophisticated reader.

But if you build a story through the presentation of your researched facts and take the reader to a logical point where the uniqueness or cleverness of you business idea becomes apparent, he will be more than receptive to your idea when you state the "compelling reason" why your business idea is truly unique and will work. You will have drawn him in and captured his imagination. The "compelling reason" will make him receptive to all the other positive attributes your business idea represents.

7. The financial statements you include in your business plan should span three years with Year 1 broken down into 12 months and Years 2 & 3 broken down into quarters. They should contain both profit and loss and cash flow statements. Two important elements you should include in the financial section of your business plan is a clear statement of the assumptions that underlay your projected numbers and the obvious use of a conservative approach in projecting those numbers. Be thoughtful in your assumptions. Make them easy for your reader to understand. Base them on facts gleaned from your research that appear elsewhere in your business plan. Always take the lower side of any range of figures.

The important thing is for the numbers to work ie payoff the loans or give a reasonable return on investment. Bankers and investors are not impressed by big, optimistic numbers. They see them all the time. They are usually persuaded by that "compelling reason" why the business has a good chance of succeeding and reassured that the projected numbers are achievable because they are obviously conservative. Let their imaginations take your financial projections to higher, exciting levels on their own time.

8. Your business plan should contain detailed resumes of the principal people who will be involved in and/or running the new business. The resume section is often the second place venture capitalists go when they pick up a business plan. They first read the executive summary to get a general idea of what the business is all about, and then they go to the resume section to see who the players are. If they don't see competent, proven people with direct, related industry experience, they often discard the business plan right then and there. So be thoughtful on who you bring into the business and carefully design their resumes to highlight past experience and accomplishments that directly relate to your proposed business idea.

9. The Executive Summary should appear as the first section of your business plan and should be the last section you write. It is a synopsis of the business idea you have already carefully organized and written. It should give a broad overview of what the idea is, and should, in a page or two, give the reader a clear understanding of what the proposed business specifically does, into what industry it falls, what broad economic climate and competitive conditions exist within that industry, and what general elements of the business idea give the proposed business a chance of being successful.

It should contain summary figures on the return on investment or the loan payback. The Executive Summary is the first section the reader will examine so take your time with it, be concise and comprehensive, and consider it to be almost like an advertisement for your business idea. It should have a ton of optimism as opposed to the factual and objective tone you want the rest of your business plan sections to have. The Executive Summary is often the only shot you have at capturing the reader's attention, so be thoughtful when writing it.

Remember, most venture capitalists and bankers have stacks of business plans filling their offices waiting to be read. Often junior members of the firm are given the task of doing the initial sort before a plan will reach the eyes of a decision making partner or officer. The person who first reads your Executive Summary thus has the power to reject your proposal but usually not the power to approve it. He only passes it on, and if the Executive Summary can catch his eye and make him read further, it's done its job.

10. Subconscious impressions are very important to the success of a business plan document. How the document is organized, what type style is selected, the sparing use of italics or bold type, how varying paragraph indentations are used all make for either a positive or negative impression. Misspelled words are death as are serious violations of the proper use of grammar. Short concise sentences will communicate better than long rambling ones. Your objective is produce a professional looking and reading document that clearly communicates that you and your team are professionals and thus know what you are talking about.

Pass your draft business plan by people you respect and have them proof read it and critique it. Determine if they clearly understand the points described in it. If they don't, go back to the drawing board and rewrite the sections in question. Take a lot of time on this final review and edit process. It is the last and probably most important step you can take for creating a successful business plan.

John Seiferth
http://johnseiferth.com

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