Question:

How can I prevent business losses?

Small Business Budgeting Simplified

Budgeting in it's simplest form is evaluating:

Revenue minus cost of goods sold, minus expenses equals profit.

Projecting for each category monthly will help you to
- keep sales revenue goals high enough to cover cost and expenses
- keep expenses down – say ‘no' to unnecessary expenditures
- realistically view your pricing to see if there is adequate profit built in to cover the running of your business.
If you don't have a budget…it could be hurting your business!

Make sure your suppliers are prepared!!

Use suppliers who have business continuity plans. Using suppliers with their own contingency plans makes you less vulnerable when disaster strikes. Especially if you use just in time delivery for your inventory. Have a supplier agreement for disruptions. Remember - 43% of businesses never reopen after a disaster (often due to impacts from a loss of inventory sources, distributors or communication systems).

Embezzlement in the workplace

Here are some warning signs that embezzlement might be occurring:
* Unusual bad-debt write-offs could be covering up a fraudulent scheme.
* Profit declines and increases in expenses could be a sign that cash is being siphoned off illegitimately.
* A decline or unusually small increase in sales could mean that sales are not being recorded.
* Bounced business checks could indicate that funds are being siphoned out of your bank account.
* An increase in overall sales returns might mean a concealment of A/R payments.
* Inventory shortages could indicate fictitious purchases, unrecorded sales, or employee pilferage.
* Slow collections can hide embezzlement.

Security

Security- Security is a broad issue, and you may choose to keep the focus of your policy narrow, or you may choose to address many different aspects of security in your policy. Some topics that you might include are:
*guards and security
*your security program/committee
*areas of limited access
*restrictions on visitors
*statements regarding the removal of company property
*escort services to cars, if you provide it

Are you insured?

Especially if you own a home-based business, make sure that you have enough insurance coverage for any losses that might occur, whether they be theft, natural disaster, or other disposal of assets.

Check with your insurance company and find out what is automatically covered by your homeowner's insurance and add any riders that are necessary to keep your business covered as well.

If you have customers or clients who visit your home regularly to do business, make sure your insurance provider offers adequate personal injury coverage as well.

Preventing Burglary

While nothing is foolproof, there are many ways you can decrease the possibility of theft in your business:
*Locks-have locks on all doors, and use them!
*Key Control-give out as few keys as possible. Also, have a log of who has which keys and know when they are authorized to use them. Electronic keys can help you know who opens which locks and when.
*Lighting-adequate lighting can also help prevent burglary. Timing devices that turn lights on and off may be helpful during extended absences.
*Alarms-another deterrant to burglary is an alarm system. Many are monitored off-site 24 hours a day and will immediately notify the Police or Fire Department.

Types of Losses

There are many different ways to "lose" part or all of you business, such as:
*Theft
*Embezzlement
*Natural Disaster
You should meet regularly with your insurance agent and auditor to be sure you're adequately covered.

Criminal Checking

Criminal Records Checking- In order to protect your business from liability you may need to do a criminal background check on employees who will
*be bonded because of access to money or valuables
*carry a weapon
*drive a company vehicle
*have access to drugs or explosives
*have access to master keys
*have a great deal of contact with the public, patients, or children
*be filling a position that requires a criminal record check under state law

Write it down

Always keep a listing of all office/business equipment that you use for your business. In case of a natural disaster or theft, you will have handy records that your insurance company can use to process your claim.

Helpful tips of recording equipment:
*take pictures
*write down serial numbers
*keep receipts and documentation
*note physical location of equipment

Preventing Embezzlement

Even if you have an internal auditing system that makes embezzlement difficult, the danger of collusion still exists. Consequently, some companies protect themselves from employee dishonesty by bonding their employees.

Preventing Embezzlement

There are four basic things that you can do in implementing an internal system of controls:
Screen applicants before they are hired.
Periodically examine canceled checks to see if there is anything unusual.
Take precautions in preparing payroll: have more than one person prepare it, have several different people prepare it, or oversee it yourself.
Have two people sign off on checks, preferably in front of each other.

Small Businesses Frequently Asked Questions

How can I prevent business losses?

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What is success?

Where do I find customers?

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How can I change my thinking?

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Why should I attend business seminars?

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What´s MLM all about?

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What can I deduct for my business?

What is the difference between a business and a hobby?

How long do I have to keep taxes, receipts and other important docs?

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What is an Income Statement?

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What is a Bookkeeper?

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What can deduct for a home office?

Why should I thank my customers?

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How much risk is good?

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What is truth in advertising?

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How do I compensate my employees?

How can playdates help my business?

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Why settle for less?

Where do I find opportunity?

How do I prioritize?

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How do I develop and train leaders?

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How do I change my thinking?

What´s the truth about MLM?

What is a leader?

What is an accountant?

What is the difference between a Bookkeeper and an Accountant?

How do I balance my business and personal life?

What are Fixed Expenses?

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How can I learn how to do my taxes?

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What is bonding?

What are Current Assets?

What is a Balance Sheet?

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How do I find fulfillment?

Can I deduct car expenses?

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Can I deduct my home office?

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How do I find recruits?

How do I train others?

How do I talk on the phone with young children?

How do I build a downline?

How can I measure my productivity?

Why should I set big goals?

How do I schedule vacations?

What is Network Marketing?

How do I achieve balance?

How do I learn how to sell?

Why won´t my customers buy?

Do I need to file taxes?

How do I organize my office?

How do I start a small business?

How can I get organized?

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How do I deal with being told no?

How do I get paid in MLM or Network Marketing?

What is competition?

What can defeat a good idea?

How do I get motivated?

How do I handle junk mail?

How do I gain market share?

What is a downline?

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What are time wasters?

Can I write off the sale of an asset?

Where do successful people come from?

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Where can I find easy financial tips?

How can I manage my finances?

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What is success?

What is an Income Statement?

Where do ideas come from?

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How do I find out about legal issues for my business?

How do I prevent burglary?

What are the characteristics of successful people?

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How can I keep my inbox empty?

What is junk mail?

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Where do I find a mentor?

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How do I get paid if I´m self-employed?

What are Accounts Receivable?

What is Self-Employment Tax?

What is a Binary Compensation Plan?

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How do I measure profit?

Why should I recruit?

How do I make money in my business?

Why is working at home good for my family?

Where do I find freedom?

How do I hire a professional to do my household chores?

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How do I stop all these bounced check charges from my bank?

How do I get the attetion of prospects and turn them into buyers?

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What is the Australian Compensation Plan?

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Can a mom with children really have a successful business?

What matters in life?

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What does "Break-Even" mean?

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How do direct sellers file taxes?

How do I become a leader?

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What are the laws governing home businesses?

What am I legally responsible for in my business?

How do I buy airline tickets?

Where can I find free stuff?

What is Cost of Goods Sold?

What if I set a goal, but don´t reach it?

How do I tell people about my business?

Why are home-businesses a good option?

What does a home-business offer me?





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