7 Essential Steps to Starting Your Own Business

Step 1: Let's begin...

The beginning is a good place to start I think... This may sound silly, but many neglect the importance of the start, and I think that's perhaps why 86% of startup businesses fail in the first year... Every year, almost 500,000 people take the plunge and start their own business and only 60,000 make it. My aim is to help you be in that 60,000. I want you to succeed so that you can tell others about me and what I have to offer through my company - That's my success!

So let's begin... You probably wouldn't turn up at an airport without first of all preparing where it is you want to go, working out the best journey and booking the right ticket, just as you wouldn't start a business without knowing what that business really is.

So the first thing I want you to do is put pen to paper and answer the following questions. These questions are designed to quiz your unconscious mind and the answers can be useful when you are asked "What is your business anyway?":

1. What specifically is your business?

2. Who specifically is your business for?

3. What products and services are you going to offer?

4. What evidence do you have to show that people need & want this?

5. Who are your competitors?

6. What is the price?

7. What is your first target?

8. Where are you now in relation to achieving this target?

9. When will you have achieved this target?

10. What will this business allow you to do?

11. What resources are needed?

12. Is your business ecological for you, your family and the world?

Step 2: The Disney Pattern...

Walt Disney was an American inspiration, not only for his film productions and animations, but also for his vision and entrepreneurialism. Disney had a great all-purpose strategy for creative thinking and I have found it amazingly effective when planning any new business. I like to dream of big things when it comes to my businesses, and sometimes this can result in me missing the small details that could throw my plans into turmoil. The following Disney strategy was modelled by Robert Dilts, a popular NLP trainer in America, and has saved me from dreaming big and neglecting reality. Go through the following steps by yourself or with a friend before you move on to the next stage of your business preparation.

Think of your potential business. The Disney strategy works well for any situation where you need to come up with a specific plan.

Choose 3 different spaces on the floor for you to move to and give each space one of the following labels:

Space 1: The Dreamer

Space 2: The Realist

Space 3: The Critic

Start by standing in the Dreamer position.

This is where you create possibilities. Here you are a visionary, seeing the big picture. Be creative without restraint. The dreamer position mostly uses the visual representation system. Ask yourself, 'What do I want?' 'What would it look like?' Write down your thoughts.

Shake those thoughts off by shaking your body or jumping up and down.

Then, move into the Realist position.

This is where you organise your plans, evaluate what is realistically possible, think constructively and devise a step-by-step action plan. The realist position mostly uses the kinesthetic (feelings) representation system. Ask yourself 'What will I do to make these plans a reality?', 'How will it feel?'

Shake those thoughts off by shaking your body or jumping up and down.

Finally, move to the Critic position.

This is the position where you test your plan. You are looking for problems, difficulties and unintended consequences. Think of what could go wrong, what is missing and what the payoffs will be. The critic position mostly uses the auditory representation system or your own internal dialogue. Ask yourself "What could go wrong?"

Step 3: Doing the necessaries

You should now have a list of answers to my questions, and have three different view points on your business from the Disney pattern. With these in place, I think you should be ready to do one of two things:

Go through the final checks below, then if you are sure you want to start your own business, carry on to the next stage.

or,

Go back to your day job. It's better to know now whether your business is going to fulfil your dreams or not. Ploughing in lot's of money into a business that will never succeed is a fools game. If you have doubts at this stage, call us. We are here to help and will offer our honest advice - running your own business isn't an easy option and sometimes it's just not worth it. Make sure at this point that you have the drive, determination and the right mindset to take the plunge. Once you do, there's no going back - the rewards are too great...

The necessaries:

Take half an hour to visit Companies House (type this into Google) and have a good look around. There are a number of ways to set up a company. You can set up as a 'sole trader', form a 'partnership', open a 'limited company' or even become a 'Franchisee'. We offer advice to our members, or you can call Companies House and they will be able to help.

Find the right Accountant. Again, we offer accountancy services through our partner companies to our members, or you can check out icaew (type this into Google) to find a list of Chartered Accountants. My advice would be to get a good accountant and by good, I don't necessarily mean the most expensive, but a good accountant should be able to save you more money on expenses and tax than you pay to them. They will also help you in running an ethical business and set you on your path to business enlightenment.

If you are looking for Finance. Visit the Princes Trust. They also offer advice and support for young people looking to create business.

Check out the Federation of Small Businesses (FSB). They have over 185,000 members and can help with all sorts of contracts, legal issues, banking arrangements etc.

The government also runs a Business Link in England and the equivalent in Scotland, Wales and Northern Ireland. They have a great website with lots of resources (type this into Google)

For a free intellectual property resources centre visit own-it. (type this into Google)

For free legal guidance and help visit freelawyer (type this into Google) or for Internet law in UK visit weblaw (type this into Google)

If you have made it to this page, I'm guessing you're up for the challenge of creating business for yourself... You have chosen a challenging path, but one that is so rewarding and freeing too. I've been in business since I was 9 years old, and it's all I have ever wanted to do. I tried working for others, but to be honest, I wasn't very good at it, and since creating businesses in my 20's & 30's, I'll never go back to working for someone else. The rewards, both financially and for my lifestyle are far too great.

So now that we have our business in mind, what is it going to be called?

Step 4: Creating your name...

Most new business owners spend a great deal of time thinking of catchy names for their businesses. I remember hearing about Greg Steven's who set up his business selling sofas and furniture. He was a huge Elvis fan and called himself 'The King'. After some debate, he decided to call himself 'The Sofa King'. On his vans he had 'We are Sofa King Great' printed. Read out-loud, the catch phrase can raise some eyebrows but it manages to stick in your memory - and that's what branding is all about...

So I'm going to make this chapter easy for you... Unless you are prepared to go as far as Greg to attract your customers, I recommend calling your company name 'You'... You are your business and your personal branding lets you control how other people perceive you. That's far more powerful than calling yourself 'Living Inspiration' or 'The Creative Life Company' like everyone else in business. My only exception to this rule is if you are setting up a membership organisation. You are usually selling a collection of people and benefits through a membership organisation. Outside of this though, your clients will choose you, not because you have a cool business card or snazzy office, but because something about you engenders trust and makes them decide to do business with you. People buy from people, not businesses... Personal branding is without doubt the most powerful way to get your name out there and it won't cost you anywhere near as much as trying to market a large company name. Start branding and marketing you, not a company you work for. For further details, I can really recommend a book by a guy called 'Peter Montoya' - It's called 'The Brand Called You'.

Step 5: Know who you are...

The Dalai Lama said that "Self-knowledge is a vital stage on the path towards enlightenment..."

I think knowing who you are is essential for your business. People buy from people and every projection you put out there in relation to your business will be received by others. Make sure you are the model of excellence you want in your business.

The following model helps me on my path to learning about myself. I think it's also helpful when thinking about your business. It has been created by Robert Dilts from the work done by Gregory Bateson. I refer to this model on a daily basis to make sure I am aligned on each level both in business and my personal life. To get closer to becoming an Enlightened Entrepreneur, you should have alignment and congruency on each of the levels starting with your environment...

Level 1: Your Environment

Level 2: Your Behaviour

Level 3: Your Skills & Capabilities

Level 4: Your Values & Beliefs

Level 5: Your Identity

Level 6: Your purpose & connection to the planet

As you get down the levels, you get closer to finding who you really are and at the very end, beyond who you are, you find your purpose in life and what connection you have to the world.

An all important question to ask yourself before you go into business is: Who am I when the lights are off?

If your answer is different to when the lights are on, or when you are selling, when you are with your family, when you are with friends or when you are alone, then you will have some misalignment on one of the different levels.

Check in with each level and ask yourself the following questions:

Environment: The where & when. Are you in the right place? Is this the right time? Who else is involved and effected by your business?

Behaviour: The what. What do you do? What thoughts and actions do you have in relation to your business plans? If you saw your behaviours from the outside, would they be aligned to the behaviours you would like to see from someone running your business?

Skills & Capabilities: The how. What skills do you have and need? How will you achieve your dreams? How will you move from employee to entrepreneur?

Beliefs & values: The why. Why is this business important to you? What do you believe about yourself? What do you value about this business? Why bother?

Identity: The who. Who are you? Who arn't you? Who is your business? Who do you want to be?

Purpose: Beyond Identity. What is your purpose on this planet? What is beyond you and your business? What is your highest intention of building this business?

If you have got this far, you should feel confident in what you are offering, and once you have registered your name, found your accountant and completed all of the logistical tasks associated to your business, you are all ready to start. The next stage is to work out who you are selling your products & services too. If you know what you're selling and who too, you are 90% of the way there...

Step 6: Finding you Niche

If you don't find a niche market the news is not good for your business. In fact, I would go as far as to say "find a niche within a niche". A niche market is composed of individuals and businesses that have similar interests and needs, which can be readily identified and that can be easily targeted and reached.

Finding a niche for your business means finding a great product or service for a highly targeted audience.

Let's imagine that you are an accountant (and you might be...). If you were interested in business coaching and went onto the internet to find a service provider, would you book with;

1. A fully qualified coach?

2. A fully qualified coach who specialises in helping accountants?

I think I've made my point. Most businesses don't niche small enough and try to be the 'jack of all trades'. I promise you, this strategy does not work.

By niching, and then niching again, you have the following advantages over your competition:

o You become specialised in your area and are therefore seen as 'The Expert' in what you do.

o The tighter the niche, the easier it is to find your clients - you know exactly who they are and therefore where they hang out.

o You will more than halve your marketing spend because you can target your marketing to specific campaigns in specific publications/websites etc.

o You will halve your competition

o You know exactly who to survey to find out exactly what they want before you produce any product or service.

Always ask your customers what they want before you produce any product or service. Many businesses create products and services that they think their clients want, without ever actually asking the client. Find out what your clients want, then produce it - it's a sure way to make more money.

Step 7: Creating your Steve...

Once you have installed your phone lines and have handed out some business cards, you are likely to receive calls from your local newspapers begging you to advertise with them. I have nothing against advertising in newspapers when it's done properly, but they usually promote their advertising by telling you that they have thousands of readers who will see your advert. The problem often is - those readers aren't interested in your product. I made the mistake of offering a free CD on NLP in the 'Express' newspaper (they had a special promotion on...). The Express goes out to hundreds of thousands of people and I worked out what 1% was and thought this was my likely take-up. I spent the whole day on the phone to people who had no idea what NLP is and asked if I could "just send the CD anyway because I collect free CDs from newspapers"... I wasted hundreds of pounds sending CDs out to clients who will never buy from me, not to mention the cost of my time.

The trick to selling anything is knowing who you are selling to and where they hang out. It also helps if they are actually wanting your product in the first place.

For every business I run now, I design my ideal client. This client is my market - the person I only need to whisper my product to and they will buy it. This means I know who they are, where they shop, what they read, even what they eat...

Let me introduce you to Steve, my ideal client for my business - perhaps he is familiar...

Steve is 30 to 45, married with 2 kids. He earns 35K to 45K and is fed up with his current work situation. He enjoys the company of his work colleages but the job doesn't satisfy him anymore. He wants to work with his partner and has often thought about setting up his own business - perhaps his partner can join him later. He likes to holiday every year and enjoys watching Channel 4, E4 and BBC news. He likes reading magazines including GQ, Mens Health and the occasional book on business and personal development. Steve enjoys surfing the web for personal development, watched YouTube and TED.com. He likes to shop in Sainsburys and occasionally, when he's feeling flush, in Marks and Spencer. Somewhere inside Steve, he believes he can make it on his own and if the right opportunity comes along, he's got the guts to do it...

I feel like I know Steve like my best friend. Steve also has a female version 'Stevetta' and I target my writing, advertising, products and in fact my whole business to meet Steve and Stevetta's needs...

Now not every client is Steve or Stevetta. Some don't match their profile at all and that's OK. I don't turn people away if they don't behave like Steve, but it makes it so easy for me to know where to find my clients and focuses my mind on what I can offer to him...

Once you have your Steve, or Stevetta (or whatever you decide to call them), you know who you are marketing & selling too, you know where to find them. You can begin to create your websites, marketing and even your business cards as if you are producing them for your Steve or Stevetta. By now you should also know who you are in relation to your business, you know what your purpose is on this planet and what your business outcomes are. I think it's time for you now to take the path to becoming a enlightened entrepreneur.

Conclusion

You will now be able to tick off the 7 essential steps to starting your business. I hope this guide has been useful to you. Most businesses never think of these steps and I think that they are so important. You're ahead of your competitors already.

Check off the following list and feel confident in your abilities as a entrepreneur - you are 90% of the way to being successful, the rest we can put down to on the spot learning... Good luck!

Step 1: I am clear about my outcome

Step 2: I passed the Disney test

Step 3: I've done the necessaries

Step 4: I've got my business name

Step 5: I know who I am and what my purpose in life is

Step 6: I've niched, and niched again

Step 7: I've got my Steve

Helping you move from employee to entrepreneur...

The Employee To Entrepreneur University was founded to support remarkable men and women with dreams to run their own rewarding and successful businesses and provide the support to actually make it happen.

"Through monthly meetings, courses, coaching and business boosting retreats we have created a support network that eliminates the reasons most small businesses fail. In addition, we've created a culture of individuals that play life at the top."

This is not a 'earn £1million in 1 month' type of organisation. We are here to help you build your business and help that business support your lifestyle forever. Join us in creating the life that you have always wanted through the business you have always dreamed of.

By Toby McCartney for The Employee to Entrepreneur University
eeuni.com

Website: http://www.eeuni.com
Email: toby@eeuni.com
Telephone: 0208 123 7586

Helping start up businesses & small businesses achieve greatness...

You become the people who you spend time with... Choose wisely...

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18 Essential Tips That Get Businesses Sold Fast & For Top Dollar

For most people, selling their business means cashing in their biggest asset. In other words, in must be handled with great care if you hope to protect and capitalize on your investment.

This guide was written with one goal in mind; to give you the tools you need to maximize your profits, maintain control, and reduce stress that comes with the business selling process.

1. Know why you are selling. The reason you look closely at why you want to sell is that your motivations play an important role in the process. They affect everything from setting a price to deciding, when is the right time to sell your business.

For example, what's more important to you: the money you walk away with, or the length of time your business is on the market? If your goal is a quick sale, that can dictate one kind of approach. If you want to maximize your profit, the sales process will almost certainly take longer.

2. Once you know why you are selling, keep it to yourself. Your reasons will affect how you negotiate the sale of your business, but they shouldn't be given as ammunition to the person who wants to buy it. For example, a prospective buyer who knows you must move quickly has you at their mercy in the negotiation process.

3. Do your homework before setting a price. Settling on an offering price shouldn't be done lightly. Do not try to sell your business without having it priced correctly and knowing how that price was derived. Even though the final price will be decided on whether you decide to take all cash or elect to participate in financing some of the purchase price, you will need to have a starting point that has some substance and basis to it. Too many people decide to sell their business, advertise it and then expect the buyer to know what it is worth. Most of the time they don't sell their business, because they are unprepared and if they do manage to sell their business they may sell it for less money than what it was really worth. Don't make these mistakes. Be prepared.

Once you've set your price, you've told buyers the absolute maximum they have to pay for your business. The trick for the seller is to get a selling price as close to the true value of the business as possible. If you start out pricing to high, prospective buyers might not take you seriously. A price to low can result in selling for much less than you hoped for.

Ask a business broker to do a valuation of your business based on the current market for your kind of business. A knowledgeable business broker will have the information and tools available to give you a current market valuation.

4. Find a good business broker. The majority of the people who sell their own business say they wouldn't do it themselves again. Sellers surveyed point to difficulties in setting a price, marketing handicaps and liability concerns among the primary reasons they would turn to a business broker next time. And selling a business yourself usually eats up more time and effort than you might initially expect. Plus the concern that when you are dealing directly with a buyer you are in an adversarial situation. As the old saying goes, "Do what you do best in your profession and let the professionals do what they do best".

Once you understand how much work it will be to sell the business yourself, talk to a business broker you trust, even if you decide to strike out on your own. At least you will have a relationship with a broker if problems do arise that requires professional help.

If you decide to work with a business broker contact two or three. Explain to each that you're thinking about putting your business on the market and you'd like to meet to talk about pricing and marketing. By having this group "evaluation" done, you should end up with a fairly tight price range to help guide your decision. The business broker who is substantially higher or lower than the group should be able to justify their valuation. Just as you should be concerned about to low of a price, beware of a broker who gives you the highest price, they may be trying to buy your listing.

A good business broker knows the market. They will supply you with information on past sales, a marketing plan, something on their background, and references from past clients. Take the time to carefully evaluate candidates on the basis of their experience, qualifications, enthusiasm, and personality. More importantly, make sure you choose someone who's going to put in a lot of hard work on your behalf.

5. Give yourself room to negotiate. Make sure you leave yourself enough room in which to bargain. If what you ask for is unacceptable to the buyer, and their first offering is unacceptable to you, then you better make sure you have someplace to go that it is acceptable to you.

Start with the absolute minimum price you would accept, and then pick the price you'd get if the world were perfect. This gives you your range to keep in mind when working with your business broker to negotiate the sale.

In setting your asking price review your priorities. Do you want to maximize your profit or sell quickly? You'll price high for the former and closer to market value if the latter is the case.

The rule of thumb when selling a business is, if a buyer is going to pay all cash for a business the business will generally sell for lower than the asking price. However, if the seller is willing to carry some of the financing in the form of a note, with the buyer paying a substantial down payment, the seller is more likely to get a sale price much closer to the asking price.

6. Rely on other people's judgment as well as your own. The key to effective marketing is knowing your products good and bad points. In the case of your business, accentuating the good can mean a faster sale for more money; failing to deal with the bad can mean months on market and a lower than desired sales price.

The biggest mistake you can make at this point is to solely rely on your own judgment. Are your books and records in order? Do your tax returns and profit and loss statements show the same gross sales? If your books and records in good order, and if they show an upward trend in sales and profits this will help you to achieve the sales price you are asking for.

After a business broker has reviewed your books, records, tax statements, and inspected the business, ask them what needs to be corrected. An experienced broker will not be bashful on sharing with you the pluses and minuses of your business.

7. Fix everything no matter how insignificant it may occur. Don't have unnecessary equipment or fixtures sitting around. Nor do you want non-functional equipment or fixtures, on site for the buyer to observe.

They might be minor annoyance to you, but they can also be deal killers. The problem is that you never know what will turn a buyer off. Even something minor that's gone unattended can suggest that perhaps there are bigger, less visible problems present as well. Don't leave the door open for possible deal killing items that may surface after price and terms have already been negotiated.

8. Let your business shine. I am sure you have heard the old clique that you only get one chance to make a first impression? Well, the first impression that your business gives a buyer will set the tone and mood for any future consideration that a buyer may have in pursuing the acquisition of your business. Do not stumble when making a first impression.

Present your business in it's best light. Have prepared and be willing to use a business profile. What is a business profile? A business profile tells a story about the business. It is a short story that is written answering the basic questions about the business, such as the history and background of the business, where the business is located, the amenities of the location, the physical assets, the operations, employees, working conditions, possible competition, skill level sought, owners reason for selling, the offering, price and terms and financial statements. You may ask why do I need all of this? Well, these are the same questions you would ask if you were buying a business. Well, you say why I am going to tell a buyer all of this? Because people will believe the written word before they will believe everything you are going to tell them. Plus most of the time they are either not going to be paying attention or forget to ask some of these questions and will want the answers to these questions sooner or later. It also gives the buyer a reference tool to refer to and discuss with any of the other parties involved in the purchase of the business. To many times I have seen people try to sell their business without any details of the business in written form. As a matter of fact when they talk to one person they tell them one thing and when they talk to a second person they will tell them something different forgetting to inform the buyer of the information needed to sell the business.

9. Disclose everything. Smart sellers proactively go above and beyond the laws to disclose all known defects to their buyers. If the buyer knows about a problem, he can't come back with a lawsuit later on.

10. The prospects, the better. By maximizing your businesses marketability, you'll increase your chances of attracting more than one prospective buyer. Why is this better? Because several buyers compete with each other; instead of a single buyer competing with you.

11. Don't get emotional during negotiations. The extent of most people's experience in the art of negotiation begins and ends at their local auto dealership. Few of us have pleasant memories of haggling with a car salesman. Just let go of the emotion you've invested in your business and approach negotiations in a businesslike manner, then you'll find the process to be a lot less painful. In fact, you might even enjoy it and you'll definitely have an advantage over prospective buyers who get caught up in the emotion of the situation.

Remember; "never fall in love with a business, because a business can't love you back." You may have grown the business from its inception to a thriving business, but it's still just a business.

12. Know your buyer. In the negotiation process, your objective is to control the pace and set the duration. The better you know your buyer, the more easily you can maintain control.

As a rule buyers want the best business they can afford for the least amount of money. Knowing specifically what motivates your buyer enables you to negotiate more effectively. Maybe your buyer needs to move quickly, or maybe the maximum amount he can spend is just a little below you're asking price. Knowing this information puts you in a better bargaining position.

13. Find out what the buyer can pay. As soon as possible, try to find out the amount of money the buyer is willing to invest and the size of their down payment. If you are dealing with a qualified business broker, they will be able to eliminate the "lookers" from the buyers. If the buyer makes a low offer, question the buyer about their ability to really pay what your business is worth.

14. Find out when the buyer would like to close. When a buyer would like to close is often when they need to close. Knowing this gives you his deadline for completing negotiations--again, an advantage in negotiations

15. Don't give yourself a deadline. Forcing yourself to sell by a certain date adds unnecessary pressure and puts you at a serious disadvantage in negotiations.

16. Don't take a low offer personally. The first offer may invariably be below what you know the buyer will end up paying for your business. Don't get angry or feel insulted; evaluate the offer objectively. Make sure it spells out the offering price, adequate earnest money, amount of down payment, mortgage amount and terms, (if you are to be carrying a note), the closing date and any special request. Now you have a point from which you can negotiate.

17. A really low offer may mean the buyer is not qualified. If you feel an offer is inadequate, now would be good time to make sure the buyer has is qualified and is capable of an opportunity of this size. Ask how they arrived at the figure, then suggest that they get additional information or contact a broker to establish what businesses are selling for in your marketplace.

18. Don't take a low ball offer seriously. An unacceptable a low offer should not be taken personally or seriously. Rather, it should be countered, even with the slightest reductions in your asking price. This lets a buyer know that their first offer isn't seen as a very serious one.

If this all sound like a lot of work, it is. But it's to be expected when you're selling anything of such great value. And you'll thank yourself for all expense and hard work when the outcome works to your satisfaction.

Terry Monroe is a Professional Intermediary, with achievement degrees in Entrepreneurship, Education, Law, Accounting, Finance, Operations, Management and Psychology and author of "The Art of Buying and Selling a Convenience Store". He is also the founder and President of American Business Brokers. To receive a Free report on on how to increase sales or maximize the sale of your business go to http://www.TerryMonroe.com.

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Your Business's Reputation: An Invisible (yet essential) Asset

If you were to ask your employees or your customers what they thought

of your business, what do you think they would say? Do you think they

would be as positive if they were asked the same question by a stranger

who happens to be a potential buyer of your business?

Not knowing the kind of reputation your business has can come back to

bite you when you decide to sell. Most people interested in buying a

small business (or even a large one) will do some investigating into the

reputation of your business. Of course they won't ask you - they'll ask

your employees, your vendors and suppliers, your customers, your

competitors, and local community.

Maintaining your business's reputation should be a priority for any

business owner, and not just because of the impact it can have on a

sale. Your business's image can attract or repel customers, too.

Here are some of the things that can negatively affect your business's

reputation, and some tips to improving a tarnished reputation when it

comes time to sell.

Relationships That Matter

Your customer is #1, right? Pleasing customers is a primary objective for

most businesses, whether the customer is a family seeking quality and

budget-friendly meals in your restaurant, or a large contractor who

purchases supplies from your manufacturing facility.

But the customer isn't the only important relationship in business. The

way you interact with your own vendors, your business location's

landlord, the local government, your utility companies, your competition,

and the bank is just as significant.

These business relationships are essential to developing a good

reputation. Do you pay your vendors on time? Do you pay your rent and

utilities on time? Are you in frequent rifts with local government or other

local businesses? How do you treat your competitors? Do you talk badly

about them?

Don't Try to Sweep Things under the Rug

Just because it didn't make the front pages of the local paper doesn't

mean an informed buyer can't find out about any lawsuits or customer

complaints levied against your business. For a small fee, the public can

find out a great deal about a business through a business background

check. Though a person won't be able to find out everything, he or she

can easily discover enough to change their mind about purchasing.

If scandal or damage to your business's reputation has prompted you to

sell, it will likely be reflected in your asking price, but that doesn't mean

you shouldn't be up front with an informed buyer who asks for this

information.

A truly motivated buyer may not be fazed by a few nicks and cuts to your

business's reputation, and in some cases, hearing your side of the story

can help to improve it. But when it comes to more serious issues, such

as a lawsuit or scandal that has noticeably affected your customer base,

it will show in your financials, so it's best to just come clean.

In some cases, it may be in your best interests to hire a publicist or

public relations firm to help manage the fallout of a scandal or lawsuit,

especially if you have time before the information gets to the public.

Crisis management is a key area of expertise for most publicists.

Treat Employees Well

Some industries are naturally more disposed to heavy turnover of

employees. Businesses that generally hire people who are looking for

part-time work, or are satisfied with minimum wage pay (such as

teenagers and college students) are going to see workers come and go.

Knowing that an employee isn't going to make a career working in your

convenience store doesn't mean you should disregard him or her, or

treat him or her any differently than long-term or "white collar"

employees.

People like to talk about their jobs - especially if they aren't happy. If

you've ever treated employees unfairly, people are going to hear about

it, and even this can damage your business's reputation.

Your business's reputation can be affected by more than just former

employee complaints. Senior staff members, who you trust to do the

business's accounting, handle invoices, and pay bills are going to know

what's happening financially. This goes back to the issue of vendor and

supplier relationships. If your vendor and supplier relationships are

poor, the staff members who deal with those people are going to know it,

and they could talk about it - even just with friends or family in the

community.

Treat your employees well and don't expect internal blemishes to

remain internal.

Word on the Street

Your customers are sort of your unpaid representatives in the field. If

they've had a great experience with your business, they'll probably tell a

few people. This referral system is called "viral marketing," and is one of

the most effective ways businesses gain new customers.

In contrast, a customer who has had a bad experience with your

business will probably tell a lot more people. This is human nature,

which is why it is imperative that your customer service be equipped to

handle complaints expertly.

You aren't going to be able to please everyone, and when you are

confronted with a customer who has been dissatisfied for some reason

(no matter how silly it may seem to you), treat them the way you'd want

your mother to be treated if she were in their place.

You can turn around a customer's negative experience by going out of

your way to "make it better." When people are treated like a V.I.P. in

regard to a complaint, they'll probably tell even more people. And, it

demonstrates how important your customers are to you. They'll

appreciate it, and you won't have to worry what the locals say if a

potential buyer holds a street survey (and they do).

Competitors aren't Enemies

Being part of an industry puts you in a network of business people just

like you. It's true, everyone is looking out for their own bottom line, but

camaraderie among competitors helps to strengthen an industry, which

benefits everyone involved.

Speaking badly about a competitor is not just in poor taste, but can be

against the law, too. Slander is a real offense recognized by the courts. If

you think it will help your restaurant to instigate a rumor about a

neighboring café's poor cleanliness, or if you purposely (and falsely)

mention a competitor's struggling financials to anyone who'll listen, you

could be liable for causing damage to another business's reputation

(and it doesn't do much for yours, either).

Laws affecting libel and slander are found in a state's business code

under Deceptive Trade Practices. Every state has a law on this, and

though penalties may differ from one state to the next, the context of the

law is basically the same: "disparaging the goods, services or business

of someone else by false or misleading representation," is prohibited.

Take advantage of the wealth of experience and business wisdom that

exists within your community or your industry. Burning bridges among

competitors can do nothing but harm to your business's reputation.

Repairing a Damaged Reputation

Like a person's reputation, a business's reputation develops over time.

And, just as you can't improve your own 'name' overnight, it takes a

considerable amount of time to repair a business's poor reputation.

Unfortunately, businesses with poor reputations do not often have the

luxury of time to fix things prior to a sale. If you're a business owner and

you haven't been paying bills on time, and haven't treated your

customers or your employees very well, you may have a hard time

selling the shop without some carefully planned renovations - to your

business's image.

There are plenty of things you can do to improve the look of your

business, but changing the minds of the vendors, suppliers, lease

owners, employees, and customers takes time and effort. This means

that when you come to the decision to sell, you can't realistically expect

to sell for a decent price within a few weeks. You must prepare to sell by

taking steps to improve fractured business relationships.

Give yourself a year to begin paying bills and invoices on time and

improve your customer and employee relations. Twelve months of effort

won't take your business's reputation to the absolute top, but it will leave

a positive impression with the people you work with (vendors, etc.).

You've poured time, money, and effort into your business. When it

comes time to sell, you want to be able to get enough out of the sale to

make your investment worthwhile. Keeping your business's reputation

in good standing is a must. If you've suffered a blemish here or there,

take the time necessary to repair damaged relationships and improve

your business's good name before you place it on the market.

Failing to do so could represent a significant difference between what

you wanted to sell your business for and what any knowledgeable buyer

will be willing to pay.

Karen Torbett is founder of Venture Point, LLC (http://www.VenturePointOnline.com). She spent almost a decade running someone else?s company before she achieved her goal of business ownership. Now, Karen helps entrepreneurs like her seeking to buy or sell a business on their own. Check out Karen?s informative blog at http://www.VenturePoint.WordPress.com and contact her at: Karen@venturepointonline.com.

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