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Top 3 Reasons Businesses Fail

When you set out to start your business, you have nothing but high hopes. However, many times, new business owners find themselves losing money quickly without an idea of where or how to fix it. Fortunately, they aren’t alone. In fact, more than half of new businesses will fail within 5 years. Most times, businesses begin to lose money from lack of proper business planning, disorganization in accounting, heavy employee turnover or poor service, and incorrect pricing of their product. These problems can be fixed with the right tools and can help your business skyrocket to success.

Profit in Your Business

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Bad or Incomplete Accounting

Your accounting records are the backbone of business planning. These records show a clear picture of your income, assets, and debts, along with all secondary, tertiary, and unaccounted for funds. Your accounting should never fall behind. Timely entry of your transactions prevents overspending and overstretching that can lead to serious setbacks. Accuracy also counts. Mixing up numbers or amounts can end up costing your company big bucks. Many times, it pays to employ an in-house accountant or contract the services of a business accountant to ensure proper record keeping.

Employee Issues

Whether your employees are constantly leaving or they are delivering bad service, both are detrimental to your business, and both can be prevented. Battle high employee turnover in the business planning stage by adjusting benefits, salary, or other perks. More specialized position details and applicant screening can also help minimize employee turnover by focusing on specialized required skills and expectations. Ensure your training endeavors are productive with highly organized and well-planned training modules. These can include, hands-on activities, worksheet-based lessons, mentor-led techniques, or a combination to provide a well-rounded and complete training experience.

Incorrect Pricing

While most businesses assume they are pricing their products parallel to their market, many times, the pricing is either too high to be cost-effective for the consumer or too low to turn a profit. In order to effectively figure pricing, consider the time spent planning, making, and distributing the product, along with the cost of materials, advertising, and promotion. This will help to create a much more accurate pricing model that can not only end up saving you money but your customer as well.

Though starting a business is an exciting and fast-moving time, in order to be successful, the correct steps must still be followed. The R Moon Consulting team can help you devise a comprehensive strategic plan and stick to it, for the ultimate business planning experience. Call us today at (888) 342-6167 to get started.

Dealing With Downsizing

It’s never fun, and it’s never ideal. However, there comes a time in some business situations when you must downsize in order to stay in business. When there is no other choice but downsizing, the process must be handled with care and consideration in order to uphold your company name, protect cut employees, and keep morale up with current employees.

Our Experts Can Help Plan Your Company Downsizing Effectively.

While Downsizing is Never Fun, It Can be Done With Minimal Negative Blowback.

 

The Business Side

Ensure you have a well-established plan for your downsize. This should include exactly what departments and positions will be affected, as well as the expected recovery date or time. Your plans should have a clear plan of action to circumvent a recurrence, and a plan for laid-off employees to ensure stability. Have a business attorney examine your plan thoroughly to identify any loopholes or loose content that can be misconstrued or mistaken.

Laid Off Employees

It’s inevitable that the employees you let go will have some sense of negativity. They have served you in the position and now quite possibly feel betrayed, abandoned, or looked past. To ensure these employees don’t affect current or future morale or consensus, it’s important to have a cushion to soften the blow. This can include a severance package, assisted employment searches, or multiple other routes to help laid-off workers feel more appreciated and less left in the dirt.

Current Employees

The employees that you’re keeping shouldn’t be left out of the mix. These workers likely have feelings of uneasiness and distrust in their company at the moment. Have a plan of action that explains the downsize reasoning, process, and future plan to help ease their minds and keep up morale. Remember, these employees will decide your company’s future.

Though downsizing within a company can be rough, it doesn’t have to be the end of the world. The experts at R Moon Consulting can help you devise a plan that considers every angle to ensure that you, your company, and your employees are covered and taken care of. Call us today at (888) 342-6167 to speak with a representative about downsizing, or to find out about our other business management services.

Starting a Small Business

With so many businesses out there, it can be overwhelming to start a new one, especially knowing that it will be small. The statistics of small businesses are quickly dwindling so if you want to do this, it is best to do it the right way the first time. There is a lot of planning and research that will need to be done first. You will also want to have the right amount of money lined up, plus some to get started and in case something goes wrong.

Steps To Starting a Business

Research – Ask around! What is your product and who do you think wants it? You should do a broad spectrum search of what people want and in what area they want it. You may want to sell scuba gear, but if you live in Alaska, maybe that isn’t the best business venture. See what we mean?

Finances – Money is often the biggest reason that people cannot start their own business. Don’t let that hold you back. Try to stay at the job you are currently at as long as you can before you take flight. You want to be smart about this and if you have a backup paycheck, you are always covered. Look around for people that want to invest in you or take out a loan to help get you started.

Heart – Above all else, you have to have a passion for what you are doing. Sometimes things take off quickly and other times they may take years before you are considered successful. If you do the proper planning, and give it all you have, you may find yourself doing very well.

There are so many different aspects that go into starting your own business. If you need help, call R Moon Consulting at (888) 342-6167 and let our experts consult you.

Three More Questions to Ask When Starting a New Business

Man with an Idea for a New Business

If You Have an Idea for a Business, Let Our Staff Help You Figure Out How to Make It Work.

Starting a new business can be a really scary and daunting task. There is so much information to gather and so many different things to consider before you can even start working on building the structure of the business. If you have an idea for a new small business but aren’t sure where to begin, let the staff at R Moon Consulting help you. We offer expert business consulting services, along with small business and strategic planning.

Things to Consider Before Starting a New Business

When you get an idea for a new business, chances are it is pretty underdeveloped. Figuring out how to develop that idea into something that will actually work isn’t always easy. Here are some questions to ask yourself to find out if your new business idea is actually feasible.

What is Your Market?
Once you know what you’re business will provide, the next questions you need to answer are “where” and “to whom”. What demographic of people will most benefit from the products and services of your new business?

Who are Your Competitors?
Before you enter your market, you want to be fully aware of the competition. This can help you understand what is already on the market, and how to make your product better so that it will be able to survive the competition.

What Will You Need to Get Started?
Every new business has a baseline of resources that are needed to get it up and running. Things that you need to consider include how many people you need to make your business work, what sort of intellectual capital is needed for your business and how much money is it going to take to get your idea off the ground.

These are only a few of the things that go into the planning and development of a new business. If you’re trying to develop a new business idea, don’t go it alone. Contact R Moon Consulting at (888) 342-6167 to get started with your small business consultation today.

Three Simple Questions For New Businesses

Every entrepreneur wants their business to be successful. If you’re starting a new business, it can be tough work getting it up off the ground. How do you know you’re utilizing your time and resources efficiently? Understanding a few simple concepts could help relieve some of the stress and make a solid business plan.

Are you asking the right questions?

Ask Yourself The Right Questions

Starting a business can be tough, but maybe these questions can help save you some blood, sweat, and tears.

Who’s your customer?

One of the most important things to do when starting a business is to define your target customers. This keeps you from spreading your time and resources in too many directions. You can’t actually market your product to everyone. By understanding the potential customer base, you can better know how and where to market your product.

What’s your product or service?

Before starting a business, you should know what products and services are going to be offered. A premium product or service is generally a niche market meaning you’ll be catering to a very specific customer base. However, a more affordable service allows you to expand your customer base. By defining the product or service, you’ll be able to better understand your target customers.

How do you reach them?

Both the product and target customers determine the marketing of it. An online business probably doesn’t want to invest much time in local advertisement, but a local business may want to utilize bulk mail or a newspaper ad.

Every small business needs a good strategy to thrive. The expertise of a consultant could put your business on the track of success. Do you need consultation for a small business in Dallas, TX? Call R Moon Consulting at 888-342-6167.

Some Useful Tax Resolutions for Small Businesses

No one likes tax time except, possibly, the devoted accountant. Everyone wants a way to make the entire process easier. There are steps you can take to make tax time a little less stressful. It takes some initiative, however. This time, try some tax resolutions for small business for the coming year.

Organize and Digitize Receipts and Papers

Tax Papers a Stapler and a Calculator

Some Useful Tax Resolutions for Small Businesses.

How well your filing works depends upon the people doing the organizing and filing. Resolve, this time, to collect and file your documents better. If you collect paper receipts, take precautions not to lose them, keep them a little longer, never stuff them in shoeboxes, and consider digitizing them. A digital system–with a backup, of course–is a great way to keep your business in step with current business trends.

Help Your Tax Preparer

You have someone who handles your taxes, and this person has to navigate a very complex system, and if you’re not well-prepared, their job is much harder, which is bad for you. Make your tax expert’s life easier. Start gathering early. Have a clear system for information in place. Consider accounting software that holds everything in one place, and to which your tax person has access.

Spend More Time on Taxes

Plenty of people wait until the last month, week, or day to handle taxes. Imagine how much easier it would be if you did a little bit each week over time. Set aside some time once per week to go over tax-related items, whether it’s organizing, filing, entering information, and anything else you can do early.

These are just a few of the possible tax resolutions for small businesses that may save you a lot of stress. Want more advice on handling your small business in Dallas, TX? Call R Moon Consulting at 888-342-6167 today.

The 3 Plans Every Successful Business Has

You’re ready. You have been contemplating this moment for years, and you’re finally ready to begin the process to start your own business. But, where do you start? How do you ensure that your business will work? Unfortunately, there is never a guarantee that your business will be successful. There are, however, steps you can take to help it along. Comprehensive and creative business planning can help ensure that no matter what situation arises, you have a plan of action. As a rule of thumb, your business should have 3 main planning focuses that branch into a comprehensive business plan.

Strategic Planning

Our Experts Can Help You Organize Your Thoughts Into a Helpful Plan.

General Business Plan

This is what most people think of when they think of business planning. This layout will consist of the structure of your business as well as the beginning plans. It will cover your beginning fund allowance, employee needs, equipment cost, and even office space and utility costs. Basically, this part of your plan will cover all of the specifics to your business. It will be lengthy and time-consuming, but any successful business begins with a good plan.

Marketing Plan

The marketing plan for a business is very important and often overlooked, creation. This plan will consist of a detailed description of how you will get your business to the people. It will include any advertisement plans you have, along with the ads you will run. It will have the message you are trying to convey, how you will convey it, and how much it will cost to do so. Having a well-organized marketing plan will diminish unnecessary advertising and wasted money.

Budgeting Plan

In order to decide what your product cost will be, how much your employee salaries will be (or if you can afford employees), and how much you will be able to allow for marketing. Your business’ budget should include everything for your business. It should have any furniture or equipment costs, utility costs, and basic office management costs. It should also include any upfront costs for production or manufacturing, depending on your business.

Every successful business has a well-organized, highly thought out plan that includes every single detail possible. This way, there are no surprises for you or your business. If you have questions or would like assistance when creating your initial business plan, or if you need assistance restructuring a plan for a current business, call R Moon Consulting at 888-342-6167 to schedule a consultation today.