Enforcing basic levels of security seems to be something small European businesses have mastered, especially those that use the Internet as the main medium to conduct their business. Spyware and viruses are the first terms that come to mind when someone asks for talks about Internet security but the fact of the matter is that there are many more threats that can compromise the valuable data small businesses in Europe rely on.
The recent security survey conducted by Symantec Corp. has revealed some interesting information about the level of security European small businesses put in place and how their data may become compromised by e-mail spam tactics known as phishing.
Spammers and fraudsters seem to be moving away from high tech tools such as viruses or spyware and have begun to focus on methods that require less work (as far as technology) and are more cunning in order to get valuable information from small business owners and use it against them. E-mail phishing is nothing more than an e-mail that appears to be official and has a set of instructions that will ultimately lead to a data leak.
In order to detect phishing scams one needs to take a hard look at the e-mail address that was used to send the message, the language that is being used and the links such e-mail has. As a European small business owner you should never assume that an e-mail is legitimate only because it appears to come from an established business. Copying the images and appearance of a site and applying that “theme” to an e-mail is not hard to do, if a small business owner assumes that an evil message is legitimate just because it looks like the website of a trusted financial institution or business partner to risk being taken is very high.
Phishing e-mails will often contain hyperlinks that will take the reader from the message to a website, paying attention to the URL of the page where you are being redirected can help you identify potential scam. The Symantec Corp. has revealed that small business owners may not be as vulnerable to viruses as they are to phishing scams, especially when to phishing e-mail targets an employee in charge of the accounts payable or receivable (known as minnowing) or when targets the small business owner and people working in important positions (also known as whaling)
In order to combat such problem it is recommended that European small businesses train their staff in order to make them fully aware of the threats and security breaches that can be caused by a simple phishing e-mail and how to recognize a fraudulent message when it arrives at their inbox.
I need to know which education courses/requirements are needed to become a small business owner?
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My family are interested in starting starting a small business such as a coffee house. It is in a area where we shouldn’t have to much compition (small town) for a coffee house. What should we exspect? What are the steps?
Dan Lutchansky, CPA gained a strong reputation as a dynamic public speaker and teacher, inspiring many to start and successfully run their own small businesses. He has led public small business workshops, small business classes, and guest lectures. He has been a California CPA for 30 years including five years with two of the largest accounting firms in the world and thirteen years in his own CPA practice. In addition to duties as a CPA, Dan has held general manager and CFO positions, and he …
I’m looking for links to articles about the legal complications of starting and running a small business at age 17. And I’m not talking about mowing lawns or walking dogs or babysitting, I’m talking about an all out real business, with like a name and contracts and licenses and insurance and all that good stuff.
Now the small business owner can get a line of credit with no hassle. Even in today’s economic climate with banks faltering and the stock market declining, smart banks and credit companies are still looking to invest in small business opportunities. Oftentimes, a line of credit can mean the difference between success and failure for a small business.
Lines of credit can be used to purchase inventory, pay utility bills, manage payroll, advertise, or to fund expansion projects. A line of credit can also allow a small business to weather downward trends in sales without having to make painful budget cuts and unpopular layoffs. A line of credit also allows a small business to avoid high interest loans from traditional banking institutions. Lines of credit are also much simpler to manage than typical loans or financial advancements, and securing a line of credit for your small business has never been easier.
While traditional banking institutions offer lines of credit for your small business, there are also other options. Conventional credit card companies are great resources a line of credit. They usually offer introductory low interest rates, flexible payment options, and are usually easier to secure than small business loans from a bank. The Internet is great tool to utilize when searching for an available line of credit for your small business. There are several web sites that offer searchable databases of credit offers. You can limit the search by any number of criteria, making each search specialized to your particular needs. These details can include credit limits, payment options, interest rates, and credit company options. Also, by applying online, many credit card companies offer different and better credit line terms for small businesses. These better terms can mean the difference between success and failure in a competitive business environment.
While credit card companies are a great and easy way to secure lines of credit for your small business, a bank can also be a good place to look for a line of credit. The terms may not be as good initially as a credit line issued from a credit card company (especially from an online application for credit), but banks a generally more trust worthy and the credit line terms are more predictable. When applying online for credit lines, there can be hidden terms or stipulations that are hidden in pages upon pages of small print. It is often difficult to realize all the terms and limitations of an online credit line. Interest rates are a good example. While introductory rates can seem excellent, once those introductory rates expire, the interest rate can skyrocket. This increased interest rate can cost your small business thousands of hard earned dollars, thus straining your business’ bottom line. Credit lines issued from banking institutions are more straightforward, and while their introductory interest rates are not generally as desirable as online credit institutions, the increased rate is generally much lower. When trying to secure a line of credit for your small business all aspects of the credit line are important. While credit lines can help your small business purchase inventory, pay employees, and weather downturns in sales, the wrong terms for your credit line can cost your small business thousands of dollars.
I own a small business and would like to give my employees more benefit options. I’ve tried to research insurance plans online, but every insurance site just wants me to call in to find out. Do any of you know? Are group health insurance rates a lot cheaper than regular rates?
ender, I wish we could approve every loan application that hit our table; unfortunately it’s not possible. We deal with mostly very small businesses seeking small loans, usually less than $250,000. Lending to inexperienced, new business owners is one of the riskiest arenas for a lending agency. Still, we manage to keep our losses to a minimum. The amazing thing about these business plan killers is that they rarely travel alone; they almost always appear in clusters. Here are the top ten business plan killers and what you can do to avoid or fix them:
1. Dreadful Personal Financial Profile
What is the likelihood that one who demonstrates abysmal financial management in his or her personal affairs will miraculously become an effective manager of finances for a business? It’s highly unlikely. It’s a lot more likely that poor practices in one’s personal situation are simply carried into the business. The main difference is that in business a much broader range of people and organizations usually get burned as a result of mismanaged business finances. Red flags pop up in business plans in the form of high credit card financing, garages full of toys (trucks, Seadoos, Skidoos, bikes, boats) 90% financed, poor credit history and no savings.
Strategy One: Tidy up your personal finances before applying for a business loan. Pay down loans, clean up any bad debts, collect some business-related equipment and save some money.
2. Insufficient or Non-Existent Owner Equity or Security
Business is always risky, but new business is infinitely more so. Lenders will want to see you personally “invested” in your business. The part of the business you personally own is called your equity. Another way to describe equity is the amount of cash or equipment you put into the business. A lender wants to see that you are invested to the point that you will not be inclined to walk away when the going gets tough. How much owner equity is enough? The amount varies from lender to lender, but less than 10% is inviting scrutiny while 20% or more will make your proposition more enticing. Any savvy lender will insist on seeing you invested to the degree that any financial complications result in you, not them, laying awake nights stressing over how to pay the bills. Security is the surly sister of equity. Your loan application will be stronger if you bring some sort of asset to the table as security. Lenders will be more attracted to assets with a clear resale value of more than the loan. Inventory is usually less desirable because it tends to grow legs and disappear when the going gets tough.
Strategy Two: Create some equity to bring to the table. Save money, sell some toys, borrow some love money, or get a second job for a while.
3. Inadequate Market Research
Inadequate market research manifests itself in various cruel ways. It can surface in the business plan as an unconvincing business case. It can reveal itself in the form of too much secondary information (from other sources) and not enough primary market research (that which you gather yourself). Lack of market research can lead to a business plan that is too general - not specific enough. Perhaps one of the most common and perplexing indicators is that the entrepreneur has not talked to or listened to the potential customers. A lender will want to see that you have “turned over all the rocks” in search of knowledge about your business. After reading your business plan, if I feel that I know more about your business than you do, I will not be inspired to approve your loan.
Strategy Three: Prove your business case to yourself and to your reader. Persist in your market research efforts until you become “the expert” for your business. You will feel more confident and have an easier time convincing your readers that you know what you are doing.
4. Transmitting and Not Receiving
It’s your responsibility to find that elusive balance between being bullheaded enough to bulldoze your way to success, yet sensitive enough to receive critical information. Your ability to listen to your clients is the key to your success in business. Falling in love with your business idea at the high cost of closing your ears to input will not help you acquire a loan. Business analysts, bankers and customers vote with their money. They have no need to yell at you to get their points across. It’s important to listen attentively when they speak at normal volumes.
Strategy Four: Listen and learn. Listen to those who agree with you AND to those who do not. Listen to all who shoot holes in your business idea, they might just be pointing you toward success. When you think you’ve heard it all, listen harder!
5. Dishonesty, Discrepancies, Inconsistencies One sure way to cheat yourself out of a loan is to give the appearance, intentionally or accidentally, that you are anything less than above board. Any form of dishonesty in your business plan, or during your dealings with the targeted lending agency staff, is a sure way to have your application rejected. Blatant untruths are the more obvious offence, but it is entirely possible to communication underhandedness in other ways. For example, missing or inaccurate information invites questions and sends the wrong message. Conveniently leaving out some of the less obvious, non-flattering financial information (like unpaid long overdue taxes) is a sure way to a “NO”.
Strategy Five: Be honest, thorough, and accurate.
6. Not Answering the Key Business Questions Clearly
Your business plan is a tool for communicating with others. What is your product or service? Who are your customers? How will you market and distribute your product or service to your customers? Will you make money? Will your business be able to repay the loan? Does your plan communicate these things clearly?
Strategy Six: Answer the basic business questions. Who, what, where, why, when, how. There are many business planning systems (although none surpass the Roadmap!) that will provide a framework to keep you on track. A proper business planning system will provide you with a framework in which to place the assortment of information you will gather. Choose a system and use it.
7. Shoddy Presentation
You can do the best market research on the planet, but if you can’t communicate it clearly and package your business plan professionally, your target audience might not even read it.
Strategy Seven: Provide a professional presentation. Ask a friend or pay someone to proof, get someone to keypunch the plan if you need to, but do a professional job. Demonstrate that you care and you will increase your odds with the lender.
8. Pie-In-The-Sky
Inflated, over optimistic sales forecasts or cash flow projections will derail your loan application every time. A future too bright will blind the lenders and scare them off the loan.
Strategy Eight: Be realistic in your expectations, even if you believe you will be floating on a sea of cash within months. No matter how lofty your financial aspirations might be, know that businesses are usually not profitable for the first while. Estimate your sales conservatively and your expenses a bit higher than you think they will be. Keep that cash flow realistic and be sure to include ALL expenses.
9. Fish-Out-Of-Water Syndrome
This is what happens when someone tries to get into a business they know nothing about. It becomes evident when the owner background reveals that the applicant has no prior experience in the area of expertise that is the main focus of the business. For example, a heavy-duty mechanic might seek to start a small restaurant. Not an impossible leap, just risky.
Strategy Nine: Know your business. It is so important to have a base of knowledge about your business and experience where possible. Many successful businesses arise from disgruntled or displaced employees who feel they can do as good as or better than their employer. Enhance this background experience with solid market research, the Internet, courses, books, tapes, and trade publications. Knowing your business will increase your confidence and enhance your loan options.
10. Too Little Too Late
This point pertains to existing businesses in search of financial assistance after things have already gone sideways. Too often we see the application when the accounts receivable is out of control or major suppliers have already been hung out too long for scary large sums of money. Other aspects of this condition are collectors hot on the trail and long overdue taxes. It’s really difficult to get excited about loaning money to pay for bills that should already have been paid.
Strategy Ten: Be decisive when your business gets into rough financial waters. Make the tough decisions early and then act on them quickly. If your recovery plan involves a loan, you are far stronger coming to the table early with a well thought out plan, than later with a plea for assistance to pay back taxes.
www.BookYourselfSolid.com - Michael Port video (author of Book Yourself Solid) from small business marketing seminar - funny, relevant and easy to understand small business marketing and how to talk about what you do.