As crisis is a harsh word, insinuating that some catastrophic event has happened, many smaller companies believe that they do not need to prepare by creating crisis management plans. Although smaller companies may not be as susceptible to a wider variety of different crises, it is more important than most would believe that a small business plans for these types of instances, purely for the fact that if struck by an unexpected crisis and they cannot manage, they risk being damaged financially, which in turn could lead to them folding.

Once smaller companies realize that crisis management plans are also important to them, their first instinct is often to panic at the fact that they either have no idea how to put these types of plans together, or believe that they are not able to afford to hire a company to create the plans for them.

Firstly, it is important that the company does not panic or worry at all, as aside from the fact that there are many businesses offering crisis management plan writing, with various different costs to suit all budgets, the plans are relatively easy to write in a basic form after some careful thought and consideration.

When writing crisis management plans for a small company for the first time, it is important to remember that as you are planning for eventualities that may never happen, you are not expected to be aware of everything that might occur, or how it will exactly happen. Instead, you only need to look at what might happen should a certain instance occur and what repercussions may be apparent that would affect the company.

For example, if you were to live in an area where earthquakes were apparent, it would be worthwhile looking at what steps you would need to take to ensure that your business can run as smoothly as possible after the effects of an earthquake. You would not need to determine when, why or how the earthquake would happen, but simply, for example, how you would operate should the electricity or water lines be severed to your business.

Having crisis management plans in place for any type of business is paramount to their longevity, as by always preparing for the worst case scenario, you can ensure that should a crisis happen, you a fully prepared to carry on with your business in one way or another.

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“What keeps business owners, practice owners and partners up at night is likely the challenge of managing and growing the business,” says Steven Stralser, clinical professor at Thunderbird: The Garvin School of International Management and author of “MBA In A Day.”

In his book, Stralser addresses business professionals who have comprehensive training in certain industries but want to discover the skills requirement to manage businesses of their own.

Bundled with illustrations, helpful anecdotes and real-world case studies, this straightforward guide gives readers a complete business education without being forced to spend the time and money on graduate school.

The book covers essential principles and concepts taught at today’s top business schools. Topics include negotiation, accounting, marketing, effective communication, information technology and leadership.

Stralser offers the following tips to assist your business grow.

* Focus on existing customers. With advertising and other marketing costs, getting new customers can be costly. Acquiring new business is crucial, of course, but so is keeping and growing your current clientele.

* Stay in touch. Offer more products or services to existing customers, clients or patients. They will react with loyalty and future business. Think “greater share” of customers instead of “market share.” It’s simpler and more profitable in the long-run.

* Develop a Web presence. Developing a Web page puts information on your business right at the fingertips of clients or potential clients. And not only does getting at your Web site save them time, it saves you time also.

For instance, a client can have access to old reports from past projects. By having this information accessible online, you will not have to take time out of your busy schedule to print and ship the reports to that client.

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Consumers often make snap decisions about who to do business with and companies with a polished, professional image usually win out.

If youre like most entrepreneurs, this comes as no surprise. In fact, according to a recent survey of small businesses, nearly two-thirds believe that having sleek, cohesive communications is key to attracting new customers. However, while the majority feel this type of well-designed collateral is essential, nearly half admit they dont even have business cards. In fact, nearly 30 percent of respondents stated that their business doesnt even have a logo.

So whats the disconnect? More often than not, its a budget issue. Most small businesses dont have the luxury of a dedicated art department or marketing team to create their brand identity. The good news is that developing professional-looking materials has never been more accessible or affordable.

Investing in corporate image not only helps your small business look larger, but it just might be what sets you apart from the competition. Simple things like a unique logo, an attractive website or appealingbusiness cards will help to establish your business brand identity and define its role and services in the marketplace.

Interested in creating some of these materials for your business? Here are a few tips to help you get started:

Back To Basics. A business card is one of the most essential items that a company should possess. For a minimal price, a business can design and print professional-lookingbusiness cards to attract new customers and ensure existing ones know how to get back in touch with you.

Invest In Your Image. What will people think of your company? An image is one of the most important elements of any organization, and this can start with the creation of a corporate logo.

Look Professional. With more and more shoppers visiting the Web to research products and services, small businesses need to have a website that will instill confidence. Make sure that your website has a consistent look and feel to other marketing materials and that important information such as phone and fax numbers, business address and hours of operation are prominently listed. If products are being sold on the site, be sure to take the proper measures to ensure customers are shopping on a safe and secure site.

Give Customers Something To Remember. People love to get things for free. Wouldnt it be even better if this freebie was branded with your company logo? Items such as pens, pencils, notepads and other items can be purchased and branded with your logo at a minimal cost.

Maximize your companys potential by utilizing some of these cost-effective and easy-to-use tools. Creating professional-looking materials doesnt have to be a huge expense and with available online service options its more convenient than ever before.

According to ADP research, 71 percent of small businesses still prepare payroll in-house, while 29 percent outsource (15 percent use a service bureau, and 13 percent use an accountants services).

Payroll and tax compliance can be time-consuming and burdensome for any business. However, a U.S. Small Business Administration (SBA) study, The Impact of Regulatory Costs on Small Firms, showed that Americas small businesses are the hardest hit financially. The study found businesses with fewer than 20 employees faced a 45 percent greater federal regulatory burden than their larger business counterparts.Small businesses annually spend $1,304 on tax compliance per employee, 67 percent more than larger companies with 500 employees or more.

Luckily, technology is transforming the day-to-day operations for small businesses. Today, there are a variety of tools available to help small business owners manage payroll in a cost-effective and simple way. Some seek a do-it-yourself software solution while others prefer to have an outside provider handle it all. In this article, we will review how companies select their payroll method, and the benefits of each type of payroll solution.

In-house Payroll

A 2006 national payroll survey by the National Federation of Independent Business (NFIB) Research Foundation found that the most common reason given for doing payroll in-house was that it is the cheapest way. Without dedicated administrative staff, many small business owners run the business during the day, and then spend evenings and weekends catching up on everything else, including bookkeeping, payroll and taxes.

However, many business owners dont realize that there are hidden costs of payroll. Doing payroll in-house is both error-prone and time-consuming. According to ADP research4, companies with 20 employees or more spend upwards of half a day per pay period. On a weekly payroll schedule, that averages out to two full days a month dedicated to payroll.

Then there are risks. Given that local, state, federal tax laws are subject to change, remaining up-to-date and compliant is a formidable task. And the failure to deposit payroll-related taxes in a timely fashion is a frequent cause of tax penalties.

Lastly, when calculating payroll by hand, simple math errors are more common, which can cause employee dissatisfaction endangering the success of your small business.

Do-it-Yourself Software

In increasing numbers, small businesses are turning to technology for help with their payroll to speed-up processing and improve accuracy.

Do-it-yourself payroll programs are ideally suited for small business owners who seek full control over their payroll processing and tax filing. Software solutions are typically cost-effective and give an in-control feeling. Once you input your payroll information, the software automatically calculates net pay for each employee. Product features are typically available 24/7, so you can process payroll whenever it is most convenient.

Outsourcing Payroll

Another option for small businesses is to outsource payroll. By outsourcing, small business owners pass on the responsibility of payroll to either an accountant, bookkeeper or third-party service provider, so that their time can be redirected to other strategic initiatives.

Once you are set up with your payroll provider, the owner simply submits hours worked by each employee. The provider calculates your payroll, including the deductions and with holdings for all relevant tax jurisdictions. Then professionally printed checks, pay vouchers and reports are delivered to your door on payday. Many service providers also manage W-2 creation at the end of the year, allowing seamless integration with accounting.

By working with a national payroll service provider, you can feel confident that payroll will be accurate, on-time and fully compliant with federal, state and local tax regulations. Based on ADP research5, the reasons companies decide to either change payroll processing method or the vendor used for the service delivery are to: save time (33 percent), effort (25 percent) or reduce costs (20 percent). Other reasons cited were tied to customer service, internal issues and familiarity.

Choosing the Right Solution

Ultimately, payroll is a task that every business needs to get done, but each business owner must decide the best approach. With the technology available today, many are choosing to evolve from manual pen and paper to either software or outsourcing depending on how involved the owner wants to be in the payroll process.

Before moving forward, it is important to evaluate goals. Are you willing to dedicate time to payroll, but want to increase accuracy and compliance? Or do you want to lessen the burden of payroll administration completely?

No matter which payroll method you choose, its important to select a software package or outsourcing provider that best meets your needs. Evaluate your options, determine what is most important to your organization, and ask for references from your peers. This is especially important when selecting an outsourcing provider. Your success is based on the expertise and reliability of your partner its essential that your goals and values are aligned.

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Job descriptions can be used in a number of ways in your business. First, a description will help a candidate decide if the job is of interest. Second, the description will help you interview the candidate to decide if the candidate is right for the position. The job description can help you in training new employees. Finally, the description forms the backbone of your evaluation and review process.

Many people will be tempted to skip this step. It’s too difficult; all of my employees know what they are supposed to do; I don’t have time; it’s a waste of time. The excuses go on and on. Don’t fall into this trap!Job descriptions are an absolutely necessary part of your business. As the business owner or manager, you are the one responsible to create them.

The job description should be as clear and precise as possible. Start by listing the major tasks an employee in that position will be responsible for. It could be customer satisfaction, follow-up, or administration.

Next, list the activities necessary to do each task. Be as detailed and precise as possible. If you aren’t specific and meticulous in describing every important aspect of the job, federal regulators and courts can assume that the employee can perform the job any way he or she wants, regardless of whether it complies with the company’s policy. This is important if you ever have issues with the Americans with Disabilities Act (ADA), the Labor Department or just a disgruntled employee.

Do this for each task involved with this job. You may have a very long list. That’s ok!

Job descriptions that contain detailed statements of the employee’s job pass the accountability for that action to the employee. Pretty quickly you will stop hearing excuses. “I didn’t know I was supposed to do that” or “that’s not my job” are familiar ways for employees to pass the buck to someone else. With a precise statement, each employee knows exactly what is expected and there is little room not to be accountable.

Clear, precise job descriptions will help you to both hire and manage your employees.

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At the end of the day, a small biz lives and dies by its customers. Serve the existing ones; find the new ones.

If you’re in the service industry — pr firm, ad agency, lawyer, architect, etc… — you’ll certainly identify with this blog post over at the Ad Age Small Agency Blog, which examines how to bounce back after a big loss:

Win or lose — if you compete enough, your brand equity goes up. After all, something good about the shop must be getting you in these pitches, right?

I always say, “Never treat a loss as a closed door.” During the pitch process, you probably learned a hell of a lot about the client, itsbusiness and its competitors. If you were good enough to get on the short-list, something about your agency interested the client. Keep in contact with it; you never know when it might outsource an agency or, two years down the road, look for a new one.

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So how do you work with what you have? When you run a small business, you can’t possibly meet all of your prospective clients. You must devise a strategy so that they come to you, because they find you through a referral or the Internet.

A personal brand for someone in a small business is instantly recognizable, stands for something of value, and creates word of mouth about you. As we all know, word of mouth is an absolute must if youre going to have a successful small business.

Here are five budget-friendly ways to build a powerful brand for your business:

1. Volunteer to speak to organizations, professional associations, conferences – anyplace where your clients and customers go. If you have an interesting, relevant presentation, people will flock to the podium after your presentation to talk to you. Every organization or association you speak to will have your name on their conference website. This will increase your Google factor the more your name appears on the Internet, the better chance you have of being found by a potential client or customer.

2. Step up to be on panels at events where you can talk about a hot topic in your area of expertise. You get exposure not only to those who attend, but to anyone who receives promotions or e-mails about the event. Getting in touch with event organizers yourself, rather than waiting for them to contact you, is also beneficial. These planners appreciate you helping them and will likely become referral sources if all goes well.

3. Write articles – and do media interviews. Theres no better way to show case your expertise and attract people to you than when your articles or ideas are featured in print or online publications. Media trainers, PR firms and other experts can help you get media ready.

4. Project a powerful professional style, everywhere you go. Your wardrobe, grooming, personal style, body language and voice send out loud and clear signals. People often decide based on just a few signals whether you are worth their time.

5. Make sure everything you do is high quality and consistent – your web site, brochure, business card, even your office. Every one of these things sends out signals about your company.

Remember, branding doesnt have to cost a lot, it just takes some thought. Building a personal brand is about using your head; its ingenuity.

1. Deductions Make the Most of Them

While reviewing your expenditures, remember that ordinary and necessary business expenses arent just equipment and rent. Business losses can be deducted from the business owners personal income taxes. In addition, if you are on a business and pleasure trip, the transportation costs are deductible if you spend more than 50% of your time doing business. Check with your accountant to find out if you are making the most of your deductions.

2. Check out Tax Credits

There are a variety of valuable tax credits available that can reduce your tax liability. These tax credits include Employer Social Security Credit, Disabled Access Credit, Work Opportunity Credit, Research Credit, Investment Credit, and more. Ask your accountant what credits are available for your business.

3. Quarterly Estimated Tax

If your business has a tax bill of more than $500, you should be paying quarterly estimated taxes or you may be hit with IRS penalties which can severely impact your businesss cash flow.

4. Dont Forget to Give

Charitable contributions can be claimed as deductions!

5. Meet Your Deadlines

Annual returns are due on April 15 for unincorporated companies and S corporations.
C corporations must file within 2 months from the end of their fiscal year.
Estimated Taxes are due 4 times a year: Jan. 15th, April 15th, June 15th & Sept. 15th.
Sales Tax is due quarterly or monthly, depending on what state your business is located in.
Employee taxes are due either weekly, monthly or quarterly, depending on the size of your payroll.

6. Update Your Accounting

Spend time each year reviewing your accounting practices to ensure that your books are up-to-date and accurate. Speak with your accountant about your procedures and ask if your current computer accounting system is the right system for your business.

7. Always Keep Your Tax Documentation for Seven Years

Although no one is looking for an audit, it is better to have your documentation ready if it happens.

• Make a careful and detailed cash-flow projection before you decide what, if anything, to do to improve your cash situation. And dont rely on your accounting software to do it for you. Few software packages have the ability to do that job well. Your best bet is an electronic spreadsheet, such as Microsoft Excel.

• Personally call people who owe you money to request payment. When the owner rather than an administrative assistant calls to collect, Long says, it gives the matter a particular urgency.
• Dont delay paying your own bills in order to conserve cash. Long says, All kinds of challenges and problems can occur from that.
• On the other hand, dont pay bills early–unless the seller offers a substantial discount for quick settlement. In that case, paying in 30 days to get a percentage point or two off the total can be well worth it.
• Lease rather than buy equipment–even sell your building and lease it back. That can free up sizable amounts of cash. Small businesses often want to own, Long says. But theyre not always looking at whether somethings worth having.
• Factor your invoices. If you thought of your company as one that didnt have to factor its invoices, think again. Factoring, in which financial institutions buy receivables for a discount and then take over collections, is something large companies embrace more readily than small ones. But its just another form of financing: Ive never shied away from it, Long says. A variant called purchase-order financing can provide the advance cash you need to handle an unusually large or complex order.

But is explosive growth the best option for a small start-up company, which can’t rely upon external sources of funding? Probably not. Success can kill a company as quickly as failure. Even a company that’s growing like gangbusters and earning great profits can go bankrupt if cash flow becomes a problem.

To grow your business demands investment. Only a certain level of growth can be funded by internally-generated cash flow. Once your company’s growth exceeds that growth rate, you’ll be dependent upon borrowed money or equity investment. And, if the banks won’t lend you the money or if you can’t secure an investor, your company could get into deep trouble by being too successful.

Jay Goltz, author of The Street Smart Entrepreneur: 133 Tough Lessons I Learned the Hard Way, writes: “There’s a mathematical formula to determine how much you can grow and remain self-funded. To do that calculation, you first have to figure out how much money you need to invest in your business to generate a sales dollar. As your business grows, you will need more money to finance your inventory, receivables, ….”

Goltz suggests working with your accountant to determine just how much money must be invested in your business to generate each dollar in sales revenue and what level of growth will stretch your company’s cash flow to the breaking point.

Consider a small book publishing company. Book publishers frequently struggle with cash flow because of the standard payment terms in the book industry. While most industries have 30-day payment terms, the standard industry terms in book publishing are 90 days. This means that once a publisher sells a book through a distributor, the publisher must wait 90 days to get paid. Many exclusive book distributors even have 180 day terms.

While waiting six months is a lesson in patience, it kills a small publisher’s cash flow. Money that isn’t received isn’t available to print more books, pay rent, pay employees, and pay all the other bills a small publishing company generates. Excessive growth doesn’t generate positive cash flow. Rather, it demands more investment.

As an example, assume you’re a small, cash-strapped publisher. You sell 10,000 books, with a total cost of $30,000, this month. Assume that you only have $5,000 cash on hand and that you run out of inventory this month.

If you were to receive payment immediately for the books sold, you’d be in great shape. You’d reprint more books, pocket the profit, and be very happy. But, you’re waiting for payment.

The next month, you generate 20,000 book sales. Unfortunately you don’t have the money for an adequate reprint. The month after that, you generate 25,000 sales. But, you’re still waiting for your money from the first sales! Clearly, your company is in trouble. You have orders. but you can’t fulfill them because you lack the cash.

In this case, you can’t supply product and your profits are hindered. In worst case scenario, your company’s growth leads to increased expenses that can’t be controlled. You begin incurring costs you don’t have the money to pay. Rather than leading to success, explosive, uncontrolled growth leads to bankruptcy.

So, what’s a small business owner to do to control growth and improve cash flow?

Companies which generate sales to other businesses via salespeople can stop aggressively adding sales staff and focus upon their existing customers. Know how much money it costs to add a new salesperson to your staff and how long before that salesperson starts to generate positive cash flow. Other companies can cut back on advertising and promotion. Just because you can sell more product doesn’t mean you should!

If cash flow is an issue, seek to grow your company in steps. Wait until your cash position is strong before moving to the next growth step. That will help to assure that you can internally fund the growth.

As you’re planning your company’s growth in steps, take the time to evaluate the systems you have in place. Are your systems adequate to support higher levels of sales? For example, do you have space to store the inventory, enough employees to ship the inventory, and an adequate number of phone lines to serve customers?

Even a non-capital intensive business, such as a software company, can get into trouble with customer service if enough customer support staff aren’t available to deal with the demands of growth.

Customers who see a company fall from excellent customer service to poor customer service are likely to go to a competitor. Excessive growth sometimes first shows itself in a company’s inability to maintain a high standard of customer service. There’s just too much work to be done. Be sure you’re adding adequate support staff to maintain quality customer service. And, accept that, as sales grow, you might need to find new and more efficient ways to do things.

Remember, new customers are great, but getting new business is costly. Repeat business from customers served well is the heart of long-term business success and profitable growth. Don’t let too many new customers drive away your established customer base because existing customers are no longer being served adequately.

What are your company’s key ratios that express inventory as a percentage of sales? How much money is tied up in accounts receivable as a percentage of sales? What is a reasonable revenue per support-staff employee?

Once you understand how your business copes with growth, work to improve cash flow. Invoice customers regularly and follow up on delinquent accounts receivable.

Do not compromise your company’s reputation by trying to stretch payments to vendors beyond a reasonable pay period. Just because publishers accept 90 day payment terms doesn’t mean it’s smart business, or that vendors in other industries will accept similar terms. To protect a company’s cash flow, cutting off supply to slow paying accounts is standard policy in many industries.

The only way to pay your bills in a timely fashion is to demand that your customers pay their bills in a timely fashion. Know what is considered “timely” in your industry.

Finally, work with your accountant to create cash flow projections and a realistic budget based upon the realities of your industry and your particular company. That will help assure that your business’s growth leads to success, not failure.