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Small Business 101: Deadly Ignorance

by: Daniel Sitter
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Copyright 2005 Daniel Sitter

American small business is again in transition. Many employees, now working from home, are no longer tied to a geographic office and the woes of commuting. This is a relatively new phenomenon with hints of explosive sector growth in the days ahead. As this turbulent economy has forced downsizing, offshore restructuring and closures in large companies, many new entrepreneurs have been born. These are people, who instead of tirelessly attempting to find new employment and possibly enduring the same fate as previously experienced, are now starting small businesses and enjoying the benefits and perils of self-employment.

There's an old story telling of an Admiral's decision to fight a battle against overwhelming odds. It seems that he was approaching the coast of an enemy land, with a larger naval force closing in from behind and a great army approaching from the land ahead. He prayed and then addressed his men. He announced that their battle weary forces would land on the beach ahead, dig in and prepare for the upcoming battle. There was no turning back and no other alternative. He ordered their ships burned after they landed. Their only choice was to fight to win or perish. They defeated their enemy because he eliminated any other escape route. They were fixed on the goal of survival and none other.

That is the same attitude we as entrepreneurs must take. We can not afford to be denied. We must grow and prosper or our business will surely perish. We must constantly be looking for ways to cost-effectively market our business and increase sales. We must control costs and have sufficient cash flow for daily operations. Each of us must be persistent, relentless and vigilant. As CEO, we are the manufacturer, the sales team, the marketing department, legal office, accounting office, human resources manager, IT manager, the webmaster and so on. We can't afford to be all these positions. Our job is to sell! We must locate cost effective resources to help us grow and protect our investment in our business.

The growth of the internet has changed our marketplace as well. Years ago, a small business owner decided upon a geographic chunk of the market and set up shop. Today, that shop is typically located in an office at the entrepreneur's home. The marketplace is now the world. The costs of marketing products and communicating worldwide are so low that almost anyone can take part in this revolution. Sophisticated voice mail, cell phones, email and effective ecommerce web sites now provide the illusion of size and grandeur for even the smallest home-based business. The end customer typically has no idea whether their supplier is local or across the world. He may be dressed in a shirt and tie or in his pajamas! All that typically matters is that the exchange of product and services is successfully made for a profit.

It is critically important for the small, home-based entrepreneur to be aware of resources available to her as she makes this great leap. Too many people leap prematurely into business only to fail because of poor planning and insufficient financial resources. Do not get caught in this trap. Don't quit your day job until you have enough cash on hand to pay the bills for at least a year into your new venture. Become aware of and develop the resources available to you. You want everything possible going for you as you make this leap of faith into the entrepreneurial world.

Here in South Carolina, we have the outstanding Women's Business Center (http://www.scwbc.org), a division of the SCMEP, South Carolina Manufacturers Extension Partnership (http://www.scmep.org), one of the best kept secrets available to businesses at all levels in our State. Other States have similar programs modeled after ours. These are incredible resources, partially funded by the State and private resources, available at little to no cost to entrepreneurs, with the purpose of aiding the successful growth of small business. Some additional national resources are:
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http://www.national business.org
http://www.nase.org
http://www.gosmallbiz.com
http://www.empoweringbiz.com
http://www.nfib.org
http://www.qualitybusinessdirectory.com


There are also numerous magazines devoted to small business, home-based business, marketing, sales, accounting, etc… Get tuned in to these and other resources available to you. Read your industry publications to stay abreast of competition and other facets of your business interests.

A single legal issue, FACTA problem, accounting error or marketing miscue can put you out of business. In the case of FACTA, insufficient security or poor record-keeping these days could find you legally responsible for a single employee's identity fraud issue, which may end up being very costly. A single lawsuit or vendor dispute can shut you down. Many entrepreneurs are ignorant, ill-prepared and under-schooled with regard to these and other issues. Do not get caught in the deadly ignorance trap.

There is more opportunity available today than ever before for the wise entrepreneur. Get all you ducks in a row before you make the fateful leap into the new world marketplace. Be smart, learn all you can as quickly as possible and take action on your ideas. Like the Admiral, be determined to win in the face of what may appear to be overwhelming adversity.


About the author:
Daniel Sitter is the author of the breakthrough e-book, Learning For Profit, the revolutionary how-to book providing simple, step-by-step instructions to teach people exactly how to learn new skills faster than ever before. It’s currently available from c|net’s download.com, the author’s web site www.learningforprofit.comand a variety of online book merchants. Mr. Sitter is a contributing writer for several online and traditional publications. His expertise includes sales, marketing, effective learning techniques, self-improvement and general business interests.


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Offshore Assistants

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What we can do for you

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We specialize in virtual assistant services for taking care of your administrative, secretarial, clerical, and legal tasks. These tasks are, without a doubt, vital and necessary for your business, and we present a way for you to efficiently manage them and, simultaneously, manage the more critical aspects of your business’ or company’s operations. We can also work with you to identify what your special or specialized needs are.

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Availing of Our Services

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As an entrepreneur or small- or medium-scale business owner, you realize the value of your time. Running a business is a dynamic activity: it is imperative to be on top of the situation 24/7/365. Unfortunately, the little details of running a business tend to eat up your precious little time and detract from the more important concerns of running the business.

As a manager of a medium- to large-scale corporation, you are probably familiar with the periodic build-up in the overall company workload: peak seasons bring in torrents of drowning paperwork that, if not properly managed, will take up a lot of your time and energy, both of which are better off spent on actually managing the company. The fact that this phenomenon is seasonal in nature makes it infeasible to hire full-time permanent employees, and hiring part-time employees will further take up a lot of time and resources.

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Pros and Cons of Having an Offshore Bank Account

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Offshore banking has been infamously associated with corrupt executives, drug dealers or other unlawful people avoiding taxation and keeping discreet accounts to hide their criminal deeds. However, this is not generally true. In fact, 80 – 90% of offshore bank accounts are used to protect businesses from lawsuits, scams or other threats.

An offshore bank is typically located in a place with low or no tax jurisdiction. People mostly open an offshore bank account for this reason, for it has legal and financial benefits. However, while there are advantages in offshore banking, there are disadvantages as well.

Pros:

1. Offshore banks can provide stable jurisdictions and regulated banking systems. This is beneficial for people living in politically troubled areas where their assets may freeze, or worse, disappear.

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3. Offshore banks sometimes offer services that domestic banks may not be able to provide. Examples of these services are anonymous bank accounts, investment opportunities that cannot be offered anywhere else, and lower of higher rate loans.

4. Offshore banking can provide developing countries opportunities to prosper because offshore finance is an industry that could make remote islands be engaged in source investment, thus creating economical growth.

5. Offshore banks mostly pay interest without having to deduct tax.

Cons:

1. Offshore finance, although a legitimate financial establishment, has been linked with unlawful acts like terrorism, underground economy and money laundering. Along with the events that followed the September 11 attacks, offshore banks were accused of helping terrorist groups and organized crime groups.

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3. Offshore banking has been referred to as the solution to all the financial and legal asset protection issues. However, this is not always the case.

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