Justifying Expenses When Going Alone

Justifying Expenses When Going Alone

The entrepreneur on the path to doom is the one that will never think of tomorrow. If you cannot literally see yourself and your business far into the future beyond today, then you are on the path to destruction. Why would you want to go into business just for today’s sake alone? Why would you want to build a business the world will no longer remember after you are gone?

Therefore, you must never cease to ask and be able to answer this question; “What can we start doing today to meet the needs of tomorrow?” Not having this consciousness is the reason why most entrepreneurs fail in business. Since they are not thinking about the future and believe in doing everything alone, the need to keep improving their game will be less paramount and as a result; they end up being eaten up by those businesses that are consistently creating the future today.

Justifying Expenses When Going Alone

Your small business incurs expenses no matter how much money you make. These expenses are overhead costs for items such as rent, insurance, lease payments and utilities. These costs exist no matter how much you sell. You must constantly measure your overhead against your sales to make sure you are getting an acceptable return on the money you pay to run your business each month.

Such is not the case for the entrepreneur heading for doom. In fact, the exact opposite is the case; trying to do more than one thing at a time eventually not achieving excellence in any. As an entrepreneur your success or failure will be as a result of how well you maximize your strengths.

Entrepreneurs do not seem to have the capability for justifying expenses when going alone. Entrepreneurs are some of the best finance jugglers on the planet. They start businesses on shoestrings and determination. Yet, when it comes to spending money on virtual assistants and consultants, the brakes go on. The permeating attitude of “I can do it myself” becomes a slowly tightening noose; slowing progress and creating guilt.

Justifying Expenses When Going Alone

Jack of All Trades: What Makes Justifying Expenses When Going Alone So Difficult

Your strengths are those activities you naturally enjoy doing and would naturally do for free your entire life if necessary. This is how every great entrepreneur in history made their success; doing what they love and loving what they do.

They are not jack of all trades and masters of none, NO! They are jack of few trades and masters of some. Why? Because entrepreneurship is about using your passion to make a positive contribution for the benefit of others. Stop doing what everyone else can do and start doing what only you can do exceptionally well. Focus on your core areas of strength.

Extravagance: The Root Cause

Being an entrepreneur means being able to do more with less. The entrepreneur on the path to failure is the one who is extravagant –the habit of being excessively flamboyant, wasteful or spending money irrationally. Thrift or frugality is a requirement for your entrepreneurial journey if you hope to become successful. How else do you intend to succeed if you cannot judiciously manage the resources in your disposal?

A good way to avoid being extravagant is to classify and justify your expenses into two categories; urgent expenses and Important expenses. Your urgent expenses are your recurrent expenses, meaning they are periodic in nature. Your important expenses are your capital expenses; meaning they are not periodic in nature but are necessary for the continuity of the business.

They are more like expenses made today in order to secure the future. Also, as your business begins to grow, don’t become one of those who start showing off the success of their business by acquiring unnecessary symbols of wealth. Place yourself on salary, this is very important. You must never take what is not yours, make it a priority to put aside and redeploy all excesses created by the business back into the business.

Additional Overhead

Whenever you want to go for justifying expenses when going alone, you must show how that increase will improve sales. If you can show that a 1 percent increase in overhead will give you a 2 percent increase in sales, you can justify the expense. If a 1 percent increase in overhead only produces a 1 percent increase in sales, you have no justification for the expense because you would only break even.

Reducing Overhead

While it may seem as though reducing overhead would be an admiral goal, you must examine the effect of that reduction. If reducing overhead reduces sales, then it is counterproductive. But if you can demonstrate that an overhead reduction will produce the same or higher level of sales, the reduction is justified.

What Can We Do To Help You Out!

Being unable to plan ahead and justify expenses can be detrimental. Let alone going alone through everything without a team on your side working with you. What entrepreneurs need to understand is that myths don’t work. That’s why they are named so. Going through a disaster alone and being reluctant to spend on virtual assistants can cause great amount of money to the business. Devising strategies to deal with the business crisis ensures company’s potential to pave a way through them. Employing such strategies not only reduces the chances for the company to be faced with a crisis but helps reduce the array of potential damages as well. In order to prevent your company from getting handicapped due to unpreparedness, Crisis Prevention & Restoration offers its services and expertise, contact by calling us at: 415.891.9107 or emailing us at: CPR4Biz@gmail.com


What Does Outsourcing Offer and Which Tasks are Best Outsourced

Do you have a business where you think you can do everything and still manage to cope with all the problems that are to be encountered on everyday bases? Well of course, running a business is no simple thing. Things turn out to be turbid and arcane to handle even when everything seems just fine. In such circumstances, if you don’t have enough time to brainstorm and evaluate the situation yourself, things might get pretty nasty. That is what happens when entrepreneurs don’t outsource work when needed and try to manage everything by themselves. It leaves no time and stamina for a thousand other back breaking tasks that might be even more important.

Trying to do everything by yourself when tasks need to be outsourced will hold your business to its current position and wouldn’t let it grow. If you wish to let your business flourish and have a tons of tasks to do, start outsourcing.


What Would I be able to Outsource?

Outsourcing can cover everything from web outline to noting customer messages and everything in the middle. Outsourcing for your business will regularly can be categorized as one of three classes:

Highly skilled expertise

This classification of outsourcing incorporates contacting specialists to get their direction. Despite the fact that you wear all the caps in your business, you can outsource to a financial expert a couple of times each month to get CFO level knowledge into your business books. The same strives for advertising, key business building or whatever other larger amount choice making ranges.

Repetitive tasks

As the proprietor you could call your own business, you don’t have to spend your weekends including new social networking supporters or documenting receipts. Tedious assignments like these can be outsourced to a collaborator, virtual or overall, to free up your time.

Specialized skills

You’re astounding at what you do, however there are many different errands that go into maintaining your business that you aren’t so incredible at – like web plan, copy writing or bookkeeping. These particular abilities ought to be outsourced so you can get the level of value that you have to run your business.

For all intents and purposes anything can be outsourced. In any case before you begin, you have to settle on some astute choices about the amount you can stand to outsource.

Making Sense of Your Outsourcing Budget

When you’re bootstrapping your business, the last on the list thing you need to do is burn through cash that you don’t need to. That is the reason the first vital venture in outsourcing is making sense of your expenses regardless of what class of outsourcing you’ll be utilizing.

There are two sorts of outsourcing needs most business have – month to month needs and special venture needs. For exceptional undertakings, in the same way as the launch of another site, you’re going to need to plan for the whole venture immediately. In the event that you have no clue what the task may cost, get cites from a few suppliers or run a test venture on an independent occupation board to see what the standard is.

For month to month efficient errands, you’ll have to make sense of the amount of time you’ll spare by outsourcing and contrast that with your regular hourly rate. In case you’re a business mentor charging $100 every hour, and you’re burning through five hours every month taking care of your records receivable and payable, then that is $500 you’re spending on that assignment. In the event that you can discover a clerk to do that just for $65, that is reserve funds of $175 every last month – which meets an additional $2100 every year in conceivable billable time.

Look through your business and make sense of where you can spare eventually. Is it accurate to say that you are investing a ton of time on client follow up? Is it true that you are pre-filling online networking upgrades a couple of hours every week? Is it true that you are blogging when you ought to be coding? These errands can be outsourced to spare you more cash.

How Can You Approach to Talent for Outsourcing?

Once you’ve chosen what you have to outsource, and the plan you need to work with, now is the ideal time to begin your search for outsourcing. Discovering the right contracts is critical to making outsourcing work for you. There are distinctive ways you can discover that offer right assistance:


Ask your expert system. Contact a couple of key contacts and let them realize what you’re searching for. Discovering a foreman through your current system ought to be your first stop. The administration supplier has a demonstrated reputation with your contact, so you know they can be trusted.

Social Media 

Any social networking site can interface you with a potential administration supplier, yet LinkedIn is regularly the best place to begin your pursuit on the grounds that you can get all the more inside and out data about a supplier’s experience.

Freelance Employment Sheets and Offering Destinations

Posting advertisements on occupation sheets or utilizing an offering site like eLance, Guru or oDesk can place you in contact with various distinctive suppliers at the same time. You can post your set of requirements and administration suppliers will get in touch with you through the administration to issue you a quote and reveal to you their experience.

You need to start thinking about it today to manage your business and let it flourish. Outsourcing can save you both time and expense that you would be spending if things go wrong when you don’t outsource. It is as Critical as working in teams rather then alone. This is where Crisis prevention and restoration of business comes in to provide expertise and assistance for your business. In order to prevent your business from suffering adverse consequences, contact Crisis prevention and business restoration for consultancy by calling us at: 415.891.9107 or email us at: CPR4BIZ@gmail.com


Insurance Will Cover It All

Buying insurance for your business, whether you’re a tradesman working from home or have a number of employees based in dedicated premises, can be confusing. No matter how much you’d prefer not to think about the possibility of things going wrong, well-selected insurance can provide some peace of mind that you’ll be covered if the worst should happen. Yes, insurance will cover it all for you depending upon the insurance plan you choose for your organization.

Most businesses have commercial liability insurance policies, and some companies maintain fidelity insurance. Both types of insurance policies protect against losses caused by the company or its employees in addition to protection against third-party lawsuits. Also, some businesses may carry business interruption insurance, which covers risks to the normal business operation.


Every business is different, but your business’s insurance needs will generally depend upon what it does, its structure, location and whether you have employees. A professional insurance broker can help you decide the type and level of insurance cover that best meets your company’s needs, but in this article we take a quick run through the main types of business insurance you might consider.

  • Buildings Insurance

If you own a commercial building, you need to insure it against physical threats like flood and other water damage, fire, explosion etc. If you’re using your home for business purposes, check that you’re covered for the business use – many insurers offer combined policies which include both home and home office insurance. When you rent commercial premises, it’s best to check the terms of the lease to identify who has responsibility for insuring them – you or the landlord.

  • Contents, Business Assets and Equipment Insurance

Think about insuring any business tools and equipment, computers and other items. Just like with your home contents insurance, take care not to underestimate the value of everything you need to run your business. The sum insured should reflect the replacement cost. Pay particular attention to expensive equipment that your business cannot function without. You’ll also need to consider whether you just need cover on business premises or if you need wider cover– for example, if laptops are removed from an office and used off site.

If your business is home-based, you’ll need to check the terms of your home insurance policy. It’s likely that your existing insurance will need to be updated or replaced to cover equipment used in the course of business.

  • Transit Insurance

If goods being sold are lost, damaged or destroyed in transit, it’s usually the seller that bears the loss. Insurance can, however, be taken out specifically to cover goods in transit if it’s not covered by another policy.

If your business uses another company to carry goods, they should have their own insurance in place. Even if that’s the case, check the contract you have in place with them to make sure you can make an adequate claim against them if they cause loss or damage to your goods.

  • Motor Vehicle Insurance

If you use a vehicle for business purposes, you’ll need to have motor insurance in place. Specialized policies for commercial vehicles are available, particularly for specialized vehicle types (e.g. tractors) or a fleet of vehicles. Even if you’re using your private vehicle, you’ll need to liaise with your insurance company to ensure you’re covered in using it for commercial purposes.

  • Employers’ Liability Insurance

If you have one or more employees, there is a legal requirement to buy employers’ liability insurance. This protects you against been sued for physical injury, illness or disease incurred by your employees during the course of their employment.

The minimum level of cover for an employers’ liability insurance policy is £5 million although most policies provide a higher level of cover, with £10 million typical. As damages can be substantial, without cover in place you’re not only breaking the law but a valid claim could put you out of business.

  • Professional Indemnity Insurance

If you provide a service to customers, professional indemnity insurance can protect you against claims of errors and negligence that cost your clients money. So, for example, if you give poor advice that means your client is worse off as a result, the value of a claim could be met by a professional indemnity insurance policy.

Professional indemnity insurance tends to be associated with certain professions where it is compulsory – such as financial advisers, solicitors and accountants – but can also be useful for services such as IT or marketing consultancy. In some such cases, clients will check whether you have professional indemnity insurance in place before working with you.

  • Public Liability Insurance

Public liability insurance protects the company if a member of the public is injured or their property damaged in connection with your business: this cover provides compensation to a claimant if the business is found to be at fault for an incident. You should consider taking out public liability insurance if people come into your premises, you enter other people’s premises in the course of your business or otherwise come into contact with the public.

Public liability insurance is not compulsory, except for horse riding establishments. However, many companies and government bodies will not work with suppliers or allow contractors into their premises unless they have such insurance in place. The amount of cover required will depend on the type of business you do, with more dangerous types of activity generally requiring more cover.

  • Product Liability insurance

Product liability insurance will meet the cost of compensating someone injured by a faulty product that your business designed, made, supplied or sold. Usually it will be the manufacturer who is liable, although other companies involved in the supply of the product may be sued in some circumstances.

This type of insurance is particularly important for certain types of product and the cover can be specialised to the type of goods or service made or supplied. You’ll often find that you’ll need to have product liability insurance when supplying your product – most supermarkets will require you to have appropriate cover in place as a condition of doing business with you.

  • Business Interruption Insurance

While other types of insurance should cover the cost of rebuilding property and replacing stock and equipment if a disaster like a fire occurs, that will all take time and it’s likely that your ability to trade normally will be restricted in the meantime – so you might have little or no income coming in but still have staff to pay and other costs to meet.

Business interruption insurance provides for any such loss of profits or revenue while you’re unable to carry out your business as usual. It can be used to put the company back into the position it was before a disaster occurred and see you through until normal service is resumed.

  • Combined Business Insurance Policies

Many of the above policies are offered in combination as part of a combined business insurance package. This can prove much cheaper and easier to manage than taking out a number of separate policies, particularly when a package is specifically designed for a particular trade or business (e.g. hairdressing). However, it’s still important that a package meets the individual needs of your business so do ensure you’ve properly considered what you need and that it’s covered by any package you buy.

The Insurance policy you select for your organization will largely contort the survival in critical times. To whatever extent it may be considered as a myth, truth conceded, it does cover it all for you. All you need to do is to get an insurance policy and ensure that you are covered by all means.

Line of Credit

Line of Credit

Line of credit is not a new terminology for most businessmen. However, a huge lot may not be familiar with the blessings it lays in incipient. Line of credit is basically a place, usually a financial institute such as bank where you can draw money from whenever you need. Organizations usually have agreements with banks which allow them to draw loans up to a certain limit in time of need. Of course one pays the interest for the loan but not until the fund is accessed. Line of credit works the same way a credit card does.

The point of interest of a line of credit more than a general advance is that interest is not normally charged from the line of credit that is unused, and the borrower can draw from the balance of credit whenever he or she needs to. Contingent upon the concurrence with the financial institution or bank, the line of credit may be delegated a demand loan, which implies that any outstanding balance must be paid quickly at the bank’s appeal. Reason why interest rate are lower for line of credit as compared to the other loans is that banks consider line of credit a more secured form of loan where the borrowers have to pay back the loan in order to avoid losing the their assets.

Flexibility due to Line of Credit

Line of credit is flexible to most business organizations because it does not require expense and time hustle that applying for new loans pertain. Rather one just has to write a check, after all that the most it requires. If someone needs money for the organization, one just has to write a check against the line of credit to draw on the available balance under the line of credit agreement with the bank. Of course, you will have to start paying it back as soon as possible to avoid losing other assets but the flexibility that line of credits offers you gives you rich source of cash that profits the organization.

A line of credit likewise gives adaptability to the small organizations. Since a line of credit permits you to get the cash whenever you require it instead of needing to take it in a protuberance entirety like other business credits, it gives the money you require without costing you all the more in premium. Its adaptability makes a business line of credit a valuable instrument for dealing with the income of a business, utilizing the line of credit when you require it and paying it off when salary comes into the business.

Line of Credit

Cash Source with Control

Line of credit serves as a benefactor for small organization for the sole purpose that you would not be required to give up control of your organization which seems to be the most likely case with investors. One can simply draw the money available under the limit and achieve the goals of the organization. Also, line of credit saves you the heck of asking for money from your friends. All you need is to have a line of credit agreement with financial institutions and then write a check.

Builds Credit

Small organizations need to assemble record as a consumer to get future credit records and credits. Utilizing a line of credit permits you to construct a positive business record as you utilize the line and set aside for a while.

Cash Flow and Risks that are Abstruse for the Organizations

Cash flow can be a weakness and also leeway in assuming a line of credit. At the point when cash is tight, a line of credit can make money inflation to the small organization, however in the meantime, a line of credit is obligation that must be repaid. Repaying debt can be tricky when funds are tight. Even if your business fails, a line of credit is a business obligation that has to be repaid.

Whether you may be personally liable to repay the debt depends on the structure of your business. For example, a sole proprietor may be liable while a corporation may relieve you from any personal obligation. Lines of credit are best used as a safety net – they’re probably not the best tool for everyday use or for long-term borrowing. Credit lines are useful for income administration. They permit you to meet costs without the bother of requesting another credit. They can even be appended to financial records to avert overdraft charges.

Sadly, you can’t generally rely on upon your line of credit being there when you require it. Banks ordinarily claim all authority to scratch off your credit line or bring down your acquiring point of confinement at anytime. That makes credit lines particularly dubious: you need them to be there “to be safe,” yet you have to be arranged for the likelihood that your bank will pull the attachment at a terrible time.

Getting a Line of Credit

So how would you get a line of credit? You for the most part need to seek one, pretty much as you’d request other credit. Banks will choose whether or not to offer a credit line (and the amount to offer) in view of your credit, your wage, and any advantage that you vow as security.

It’s not remarkable to utilize your home as guarantee for a home equity line of credit. This methodology for the most part issues you access to a lot of cash at a sensible interest rate (on the grounds that the bank can take your home in abandonment and recover their cash on the off chance that you neglect to reimburse).

On the off chance that you would prefer not to (or can’t) vow property as guarantee, you can likewise get unsecured lines of credit. Unanimously, it’s harder to fit the bill for an unsecured credit in light of the fact that the bank has nothing to follow; you’ll require great credit and a relentless pay to get affirmed.

communication management

Communication Management: Who Is Speaking For You In An Emergency?

At the point when a crisis strikes a business community, the need attend it is brisk. These social affairs of individual associated with the organization will require information before the business has a chance to begin granting.

If business operations are exasperates:

  • Customers will need to know how they will be able to utilize the services again.
  • Directors may need to be educated and neighborhood government powers will need to acknowledge what is proceeding in their gathering.
  • Employees and their families will be concerned and need information regarding the current status of the organization.

On such a hub, communication management gets to be fundamental to oversee business and Emergency response plans. Speaking with the representatives, costumers, neighborhood bodies and other potential crowd is among first needs for a business and requires active communication management. Proceeding with the business the exact following day after an emergency is vital, however keeping up a consistent stream of contact with the gathering of people that need to be tended to be considerably more imperative.

A critical segment of the communication management is the crisis communication plan. A business must have the capacity to react instantly, precisely and unhesitatingly amid a crisis in the hours and days that take after. Numerous diverse groups of onlookers must be arrived at with information particular to their diversions and needs. The picture of the business can be emphatically or adversely affected by open impression of the management of the occurrence.

The first step towards communication management is to make sure that the right representatives are maintaining a constant stream of contact with the right audience and no one is missed. Going further, it entails what audience needs to be reached out, and what message should be conveyed to the targeted audience. Further assessment requires answers to these questions; what resources a company has and what resources it utilizes for effective communication during a critical time or emergency situation.

Communication Management: Who is speaking for you?

During a crisis, audience and stakeholders raises demands for information on the business which the organization is bound to provide. However, the information and communication management should be resourceful. The contact and information hub helps business community to manage its communication with all type of audiences. Employees from various departments can be assigned to converse with a definite audience.

The contact center should be appropriately equipped with staff to answer the requests of the audience on all types of communication outlets e.g., website, bulletin boards, call center etc. The staff working within the contact center should be provided with scripts and “frequently asked questions” (FAQ) to address concerns of the audience constantly and precisely.

Having a constant and effective stream of communication management with all the potential audiences is of the top priority for business communities. Ineffective or broken communication can bring along other adverse consequences besides harmful consequences of a crisis itself. Such a threat calls for any organization to stay prepared for addressing concerns of its audience regarding an emergent situation.

communication management

Communication Management: What needs to be conveyed?

The audience demands information that is relevant to them during an emergency situation. The employees may want to know whether they would be able to continue their jobs or not, if yes then when? It’s natural for the people involved to panic, however, the people responsible for handling a crisis within a business organization need to stay calm. The costumers would want to know how the situation affects them and when the consequences would be compensated. The neighbors and government officials would demand the information regarding what is going on and how adverse the consequence can be. Similarly stakeholders need to be addressed for their concerns regarding the crisis. For the effective communication management, each type of audience needs to be addressed separately according to their concerns. After analyzing the potential audience, the next step in communication management is to devise the message that has to be delivered. In the time of crisis, devising a message for communication can be tough due to other pressures and concerns, prescript messages can be of help in such a situation. Prescript messages can be devised beforehand based upon the analysis of Risk Assessment. They ensure that the company is ready to communicate with each type of audience with relevant information promptly if the crisis strikes. Messages should be scripted to address the specific needs of each audience, which may include:

Customer “When will I receive my order?” “What will you give me to compensate for the delay?”

Employee “When should I report to work?” “Will I have a job?” “Will I get paid during the shutdown or can I collect unemployment?” “What happened to my co-worker?” “What are you going to do to address my safety?” “Is it safe to go back to work?”

Government Regulator – “When did it happen?” “What happened (details about the incident)?” “What are the impacts (injuries, deaths, environmental contamination, safety of consumers, etc.)?”

Elected Official “What is the impact on the community (hazards and economy)?” “How many employees will be affected?” “When will you be back up and running?”

Suppliers “When should we resume deliveries and where should we ship to?”

Management “What happened?” “When did it happen?” “Was anyone injured?” “How bad is the property damage?” “How long do you think production will be down?”

Neighbors in the Community “How can I be sure it’s safe to go outside?” “What are you going to do to prevent this from happening again?” “How do I get paid for the loss I incurred?”

News Media “What happened?” “Who was injured?” “What is the estimated loss?” “What caused the incident?” “What are you going to do to prevent it from happening again?” “Who is responsible?”

When Speaking for the Organization, keep in Mind!

One important component of the communication management with your audience is consistency of the message. Often the situation keeps changing during an emergency and audience demands information on hourly basis. Business community is responsible of developing consistency within the messages that are being addresses to the audience again and again during a crisis. If however the communication is not consistent, audience’s concerns are left unmet. Another important purpose of the communication management is to move from reaction to the crisis, to managing a strategy for overcoming the crisis. Management needs to develop the strategy and the crisis communications team needs to implement that strategy by allaying the concerns of each audience.

Disasters are not unusual to happen because of poor communication management. it can lead to great losses to the organization as those not being address in a time of need or emergency may step back from the organization. Take all the necessary steps required to enhance your organization’s communication management today. In order to prevent your company from getting handicapped due to unpreparedness, Crisis Prevention and Restoration for Business offers its services and expertise for devising crisis communication plans to handle communication management. For benefiting from our expertise, contact Crisis prevention and business restoration by calling us at: 415.891.9107 or emailing us at: CPR4BIZ@gmail.com