With our virtual office service, you can literally run your business from anywhere in the World and still have a fully operational, fully staffed office in New York. Your business will have a physical office address in an actual Corporate Office Business Center – not an obscure PO Box or made-up suite number in a simple mailbox operation. Hence, if one of your clients happens to show up at our office, they will be greeted by a receptionist in a pleasant and professional workplace in the trendy Flatiron District on Broadway! Yup, Broadway… The Great White Way! Having a physical New York City office address on Broadway can help bolster your business image. Everyone knows Broadway… It’s a World renown NYC thoroughfare!

If you need to physically meet with your clients, we will be ready for you! With meeting space located directly at your virtual office address (keep in mind that you may be using the address virtually, but it’s a full fledged brick and mortar operation!). The meeting space is equipped with a computer workstation with all the latest software and a nice big flat screen monitor; wifi internet connection, so you can connect directly with your laptop, internet phone, or other wireless device; a contemporary conference table with black leather seating for 5; a 4′ x 6′ whiteboard, with a colorful variety of markers and eraser; easel with a pad – you can use the easel for your presentation or use the Post-it brand easel pad with plethora of presentation markers; stereo speakers and an 84″ x 84″ projection screen. Have your presentation on your laptop? Then we have a state of the art projector available for you to project on our 9′ x 9′ screen. All of the artwork in our facilities are by a World renowned artist. You’ve seen his work!

While in the office, you will have a knowledgeable administrative assistant assigned to your meeting to assist with administrative support, supplies, technical help, digital projector setup, printing, copying, water service, catering, lunch recommendations, car service, transportation bookings, etc. Just like in any fully functional and staffed office.

VH International Business Solutions has been doing this since 1990, so rest assured, you and your business will be well taken care of.

Separate Your Business Credit from Personal Credit

Business credit can and should be established separate from personal credit. When business owners use their personal credit to obtain business credit, they run the risk of lowering their personal credit scores. The business owner also risks being personally responsible for business liabilities. If you file bankruptcy and your personal and business credit are one in the same, you stand to lose everything. Business credit protects your personal assets.

No Personal Guarantees

The most important element to establishing business credit is finding lending institutions, credit card issuers and vendors that will establish business credit without you giving a personal guarantee. A personal guarantee involves using your personal credit information to guarantee repayment of the debt incurred by the business. In other words, you are obligating yourself to be 100% responsible for the business debt. It may be your intention to fully repay any debt incurred by the business; however, obligating your personal and business assets to repaying business debts can lead to financial ruin if any business setbacks occur.

Business Structure

Doing business as a sole proprietor will not allow you to distinguish your business credit from your personal credit. As a sole proprietor you may be “doing business as”; however, you are not a separate business entity. In order to establish business credit without a personal guarantee you must structure your business as a separate legal entity such as a corporation or limited liability company. Even if you have been doing business as a sole proprietor for years, you can restructure your business into a separate legal entity. Besides, it is a better choice to set your business up as an entity separate and apart from you. Your business could get sued and if all of your assets are tied together, financial ruin may be lurking in the background. Having a separate entity protects your personal assets.

Tax Identification Numbers

Your business entity must have an Employer Identification Number (EIN) also known as a Federal Tax Identification Number (Tax ID). The EIN is your permanent number and can be used immediately for most of your business needs, including opening a bank account, applying for business licenses and establishing a business credit file. Never use your social security number. It may also be necessary to establish a State tax identification number. For the federal tax identification number you can apply online at www.irs.gov. The application process is fairly simple and you can receive the EIN immediately.

Business Checking Account

Your business entity should have at least one bank account, in the name of the business, that can be used as a bank reference. The older the bank account, the better. Having a business checking account helps in establishing your business identity and reputation. Banking relationships are still important in the business world. Building a strong relationship with your bank can be of assistance when you begin to seek business financing.

Get a Business License

You must always register your business and obtain a business license in the State, County or City where you conduct business. For some reason, this is not always done by businesses. It should be at the top of your “to do” list. Always register your business in the jurisdiction where you conduct business.

For a step-by-step process for building business credit please visit: www.rebuildcreditscores.com/Business_Credit.html

Economies all over the world are experiencing a decline, businesses are laying off many people in order to cut costs and stay profitable. Those who retain their jobs are faced with rocketing food and gas prices.

When you are an owner of a small business, the challenges are even greater, under the circumstances, you are more likely to experience a decline in traffic to your store, raising costs of supplies, employees demanding (understandably) higher wages, higher fees in marketing your business using mainstream media, higher costs in renting business space and insurance costs. If you are an accountant you might have probably figured that under this circumstances, unless you are selling magic items, you would see higher expenses than income. Business is not about how much money you make, but it is more about how much of the money you make actually stays in the business. A business that makes a million a year and spends a million is the same as the business that does not do business at all, except in the earlier case, the owner is actually at a loss because they are putting in more effort than they are making.

So how do you survive that? That was exactly the same question I asked myself a few months ago. Here I have compiled some notes that some in the same situation as I was might find helpful.

1   Constant Evaluation  and process streamlining.

Constant evaluation is the blood and soul of every business. As the saying goes “What got you to where you are may not be able to get you where you want to be”. To be honest, I have never met any business person, whether it is in the formal or informal sector who wanted their business to stay the same for a long period of time, no matter how well they were doing. Being on top of your class does not stop your competitors from doing what it takes to beat you. We see a lot of big businesses laying people off, going through mergers and acquisition. This is process streamlining on a large scale. They evaluate their positions, get rid of inefficient processes, redundant positions and so on. Don’t feel guilty if you have to do it for your small business… If you find yourself with more employees than you need or using a process that is costing you more than it brings in, cut it off and replace it with something that works better.

I will tell you a secret. A few years ago, I read an article about how one could make a lot of money on FOREX, if you do not know what it is, basically the business is about speculating on whether a certain currency’s value would get stronger or weaker and then you would either buy or sell a specific currency in exchange for another currency.

I thought that was a pretty easy thing to do and got a lot of books telling me that it is a lucrative business. I am not disputing that, but there are also a lot of people that loose money this way. I also got a few articles somewhere that warned me about what happens on FOREX, but  at the same time I was getting drawn to it, not by the money but by the fact that I could learn a lot about financial discipline.

After two months, I had almost lost all that I had in my account, but I had also learned a lot of things. One of the important lessons is to cut your losses short and let your profits run. Get me right, this is not the same as giving up too soon. This is giving up soon after knowing that the business is heading no where. This may sound like a greedy game, but it works. To me money not spend is money saved, it is as simple as that.

Why am I telling you this? I am telling you this because A few years later I would start a small business that did not really fit my lifestyle but it had the potential to take off. I would spend most of my starting capital on advertising and rent and then on wages for my staff. Being what it was, the business was not generating enough revenue to cover its expenditure, because the marketing media and approaches we used were not working and were difficult to evaluate whether they were effective or not and given the my lifestyle, I was learning that there is no way I would be able to take the business to the next level using the resources I had. I had a choice to either wait and let it wipe me out of my hard-earned cash or cut my loses short and explore other alternatives.

By talking to other small business owners, I would find out that many were facing the same problem that I was. I then put some time aside and develop a web-based platform to sell my stuff. This was the birth of SME Promotions Portal,  the idea was not only simple, but it also helped me cut my business expenses by more than 50%, I got rid of the rented space and let go of my staff who were bringing in much less than I was paying them. I get most consulting assignments through the site and have automated a lot of the processes behind my business dealings to save me time so that I can concentrate on what I do best.

This site is not only for me, other people have started using the site to sell their products for a small fee. Giving them an opportunity to only pay after their products are sold. How does that help? If you are in a situation that I was in, having to pay upfront for everything sucks up all your working capital and spoils your prospects and leaving your business with no cash to work with. This leaves the business with a little bit of money to spend on basic needs.

Sorry if this sounded like bragging, it was not intended to and I urge you to keep reading, you might just be able to find something that works for you here.

2   Break away from conventional marketing practices.

If you started a business the way I did then you would know about what I am about to say. Many people out there think having a business is about having merchandise in store and putting ads everywhere to let people know where to find you; or even worse hoping that people will easily come by your store looking for what you got.

Others spend most of their starting capital on radio and TV commercials like I did, when they know they have no way of measuring where the traffic is coming from, so that they can cut out stuff that is not working. The sad thing is that many advertisers out there do not care whether you get your returns out of your advertising dollar and honestly, they shouldn’t, because they are in business to make money. Otherwise how would you feel if somebody told you that every time you sold a frying pan to a family, you would have to follow them around to make sure they are using it. It is not your business, your business is selling frying pans and you should stick to that.

To make sure your business can survive, you have start talking to people you know and trust or people that trust you, about what you are offering. Do not try to push it on to them, just tell them know about it. Chances are, that next time they hear somebody looking for what you have, they would refer them to you. The idea is that the few that you know are going to tell a few others that they know and the game continues… viral marketing… if you get where I am heading. The best tool for viral marketing is word-of-mouth, you either learn to use it or loose business.

Save your marketing dollar, by cutting out all the stuff that does not work, the world is bombarded with marketing messages every second and many people are beginning to ignore marketers who interrupt them with a sales proposition. Watch your competitors see what they are doing wrong and learn from it.

My nephew Sylvester had just learned a hard lesson from interruptive marketing, we were distributing flyers about our business and most of the time he would get a mean look and be told that people did not have time for what he was trying to sell them. After going through the pile of flyers, we would sit and talk about how people are responding, why they are responding that way? and what we needed to do to overcome that?. Just make sure you do this all the time, otherwise you are going to waste a lot of your resources and not understand what is going on when they do not show up at your store.

If your business is too small, try online merchandising. You look for a cheaper way  to sell your products on the internet. This will cut your expenses in terms of rent, expensive advertising and even the commuting time as this will enable to work from home. Besides, you will be able to market to a wider audience and do not have to be awake to take orders. This is not an easy cookie though, you will have to spend some time researching internet marketing and optimizing your website for best results.

3   Help your customers find the help you do not offer.

Customers are very interesting people, one thing is that many of them do not want to be sold something. They want to buy something and hopefully from you. They tend to ask people they trust of their opinion on other businesses or even products.

No matter how much you hate your competitor or how desperate you need their dollar, if you do not have what they are looking for, politely tell them that you can not provide it and they should check with your competitor or some of your non competing partners for that matter.  Never delay their purchase out of greed until you have the product to sell to them, leave that to them to decide.

Never bad-mouth a customer, even when you catch them buying the product you have from your competitor when you believe they should be buying from you. I have had someone from my household buy something I was selling from a competitor. I watched them do it and they later thought they should have bought from me. Whether out of guilt or something else, they told five of their friends that I had the product and all five bought from me. Had I reacted differently, the best case would have been that they would return the product to the store and buy from me and never bring anyone. The worst case would be not returning it, not referring anybody to me and decide not to ever talk to me. The funny thing about customers is that the more you help them, the more they get to trust you and they might even bring their friends to your business knowing that they will get help regardless of whether you have what they are looking for or not. Why is this important? People get to  you first before they get to somebody else, thus you have a chance to sell them something first before your competitor.

4   Ask non-competing business owners for help and return the favor.

If you are to survive in business, you have to acquire some friends hopefully people that are already in business but are not your direct competitors. You should do this for a few reasons, one is that since you are not competitors, you are more likely to need what they offer and so are they. These people might end up being your biggest customers or they may even refer their customers to your business.

Two, Since they are already in business, it is very likely that you think the same way. This gives you an opportunity to pick their brains on something that you need help with. Remember for the most part, we are defined by who we associate with. If you hang around thieves, you will be considered a thieve; and if you hang around very successful people, you will be considered successful, as long as you work hard enough to think and behave like them, for them not to run away from you.

Three, people around you are watching even when you think they are not. What you say to one about other people may come to haunt you. If you have hanged around somebody that gossips a lot, would it not bother you as to what they say behind your back? Or rather as to what would stop them from saying about you what they say to you about others? The same thing happens in business, when things are not going well, you reach out to others for help. This almost always works as long as you remain  accommodating about others reaching out to you. Keep what they tell you in confidence, confidential. This will earn you a good reputation, trust and in many cases new business or referrals.

<h4>5   Be Careful of hyped advertisers trying to take your last pennies.

How often do you see something like this? “Get ranked high on major search engines in 24 hours for a small fee” or rather an interesting one “Make up to $400 a day working at home using our proven system” and at the end of the page, they ask you to pay $300 to get you started.

These are all people wanting to get your money for their own benefit. First of all the web is full of people competing for the top ranking. Even if it was true that they would get you top ranking on Google or Yahoo, how long do you think you will stay there. Besides, these ads go to millions of people who maybe in the same business category that you are in, and just out of curiosity, how many millions would fit into Google or Yahoo’s top 10 ranking?

I am not completely dismissing the fact that some of them may be good, but if you are going to give somebody your money to use an automated system to put you on these search engines, then you got to think twice, because some search engines may be smart enough to know these tricks. Besides, if Google and/or Yahoo gets their money from online advertising, would you not think that they would watch out for sneaky marketing approaches like this, using their space to make money from you?

Secondly, Have you ever looked for a job and your employer tells you to pay them first before they gave you the job? If they did then, I would question the legality of their business.

What I am saying here is that you do not have to jump at every marketing message you hear, which is very common when you are desperate to see your business idea take off; or even to simply put something on the table. So trade wise, learn a lot by reading a lot and let your business grow. If you are going to succeed with online marketing your keyword research has to be done by you, since you and only you knows what you would like to get out of it and how much you want to pay for it.

6   Combine forces and let your marketing dollar take you a little farther.

My seventh grade teacher once demonstrated to me how powerful you can be by combining forces with other people for greater results. This may have nothing to do with business, but just hear me out.

This guy had noticed that kids in his class were not getting along, so he decides he is going to make the class sing, but everyone singing a different song, then asked three students to stand outside the class, so that after the song, they would come back and report on what they got from the song. After the first song, the three students came back into the class an reported different things about the same song, all of which were not accurate.

Then he decided to get the class to sing one song, with everyone singing to the same song at the same time. While the students were singing, he asked the three students to go a little farther from the classroom. After the second song, he invited the three students back into the class and asked them to report on the song they had just listened to. All three reported accurately.

So, what is the deal here? There are many people out there who think, they can do it on their own, ignoring the fact that their potential customers are getting bombarded with marketing messages from all over the place. The sad thing is that they end up spending a lot of money trying to get the word out, but because they are not in tune with others their messages do not get to the intended recipient. They finally grow tired and quit, even when there is a huge potential for success.

The best survival skill is to learn to play along with others while at the same time acknowledging that there are things that affects us differently from the way they affect others, even those closest to us. Anybody who had done stock trading would tell you “Never fight against the trend, if you plan on winning”. Take some time, listen to what people are saying about certain products, research a little to see if there is real demand for the product or service, determine whether people who are talking about it are real buyers and not just people who would want something of great value for almost nothing.

Why am I saying this? A lot of times, people would tell you about what they want, you get it to them, you realize they want it for much less or even worse, you realize that they are actually among the 80% who wants people to talk to them, but have no interest in buying anything. Watch out for those, if you come across one, politely excuse yourself and move on. Otherwise you will spend 80% of your time and resources selling to non-buyers.  Be careful though to distinguish non-buyers from potential buyers who are skeptical about your product.

7   Deliver what is promised on time.

A few months ago, a friend of mine came to me and said “I hear you do computer stuff, My computer is not starting and I would like you to take a look”. I asked him a few questioned and had determined that his problem is likely to be a hardware issue. I told him I would take a look, but at the same time I also told him that I was a software guy and I knew of another guy that did hardware stuff. As soon as I mentioned his name, the guy goes “Nope, I am not going back there, because he takes a long time to get things done”.  This had been the second person to say the same about this guy.

Although I was not a customer, It sort of made me hesitant to recommend him to anyone. If they did not get the service they deserved with this guy, it would put my credibility on the line. Now every time somebody asks me where to get their computers fixed, I would say I was not sure or would at least warn them before referring them to him. Who knows how much business he is loosing as a result of this? His former customers might be telling their friends to not go there.

Speedy and high quality service has proven to be the key to small business success. Follow up to make sure they are satisfied. This way you show that you are not only interested in getting rid of your product but also care about how they feel about the product. Just do not go overboard and get into how and whether they use the product, that is their business. Keep focused on delivering the best quality products and/or service and make sure they can come back or bring their friends for more. That is your part, the rest is up to them.

There are many proven advantages to catalog mailing. In fact, it is considered to be one of the best ways to sell products and services. Some 167 million consumers per year make purchases from mailed catalogs. Each buyer on the average places some 11 orders a year. That’s 1.8 billion sales transactions per year. The combined purchases of individual consumers and businesses from catalog mailings per year come to about $150 billion. Wouldn’t you want a slice of that huge pie?

According to statistics, roughly half of existing consumers shop online based on print catalogs they have received by mail. Once a consumer has received a mailed catalog, he or she is more than twice as likely to buy something online from it. Online sellers generate the most number of online sales through customers who order from print catalog mailing. These customers spend 16% more on the average as compared to customers who did not receive mailed catalogs. Catalog customers are also more likely to become frequent repeat buyers online, with repeat transactions adding an average of 15% more sales. Indeed, having a print catalog on hand is a very convenient reference material for consumers while deciding on purchases to be made online.

Having the print catalog in your target market’s homes or offices also serves as a constant reminder to them of your products and services even while they are offline. It has been observed that 59% of recipients of catalog mailings keep the catalogs for a minimum of three months or until a new catalog arrives in the mail. Imagine the exposure your business gets and the marketing potential in that period.

The distinct advantage of catalog mailings is that they allow your consumers to place their orders online or by phone or mail, if they please. If your brick and mortar store happens to be in the same locality, the catalog mailing will also send you walk in shoppers who would want to see your merchandise first hand.

Of course, you have to make sure that your catalog displays your products and services at their best. Choose a size and design that is most appropriate for your business and that will stand out in the midst of competition. Remember that your target market receives numerous catalogs by mail. Billions of catalogs are actually sent throughout the United States every year.

Avoid having a catalog that looks unprofessional or shoddy. That will reflect very badly on your business image. And will backfire on your goals. Do not cram too much information or images on each page. Make sure that your colors are attractively pleasing to the eye. Check your copy for errors, inaccuracies and vagueness. If possible, hire a professional catalog designer who will know how to lay out your pages for optimum effect, as well as a professional copy writer who can use words to your best advantage. Also ensure that your catalog is printed at the highest quality, looking crisp and inviting. It would be best if you could test a prototype before finally having your catalog printed out in bulk.

Find a reputable mail house that offers catalog mailing services along with business mailings and other fulfillment services, such as presort services, which you will need in your bulk mail advertising campaign. Postal services alone will not be enough for your needs unless you are willing to do much of the work yourself in-house.

Local trade and vocational institutions, community or regional colleges and universities and even secondary schools offer night time and other nontraditional forms of training classes for adults.

Think about it – many of these local programs were designed to help home based small business and craft business community. As an added benefit, those forums offer many options for satisfying one or more of the top priorities of entrepreneurs wishing to learn more about their industry and advance their careers. 

Even with all that support, the first thing you have to learn is how to start a home based business. Aspiring owners need more convenient forms of supplementary educational resources to help them develop their business domain knowledge. That’s where the business school in a box can serve you your needs.

A few top business schools are already providing or considering support for the home based business entrepreneur. We see online business school offerings gaining momentum with ever-increasing velocity.

A Boxed-Lunch of New Business Opportunity

The main drawback of most traditional business schools is that student entrepreneurs must physically attend classes, this requirement demands an unreasonable amount of time, money and effort from these struggling students. In response to these constraints many organizations now offer a “business school in a box”, a series of knowledge-based learning sessions, articles and lectures.

These programs give students ways to learn established standards and become well-versed in the various topics of business management, including accounting, finance and marketing.

Often, the business school in a box consists of packaged lessons or recorded lectures students can access online.  Business concepts, ideas and theories are usually taught in these serialized lesson modules. 

I think you will agree that this form of training is perfect for entrepreneurs searching for the optimal small business knowledge center solution – it can especially help out people who are trying to learn:

how to start a home based business;

how to manage a home based, small business;

how to find good home based business opportunities for moms and women.

What Comes On Your Plate?

You do realize that learning how to start a home based business or successfully operating your home based small business means working on your own without a boss or direct supervisor, don’t you?

In a word, the business school in a box format is a variation on the distance education theme, and as such, some lesson plans may not provide direct interaction with your instructor or fellow students.  This kind of learning occurs through the student’s own efforts and perseverance, so you will have to be someone who works well and effectively without supervision. 

Lessons are typically presented in small packages and feature home study along with assignments. Sometimes self-grading quizzes, learning simulations and projects may also be included.  Depending on the institution, some subjects provide live online classes, which may give students a chance to participate in lectures and discussions in real time.

Yummy Advantages of A Business School In A Box

There are several advantages to choosing to learn more about how to start a home based business and managing your home based small business, using nontraditional methods such as a business school in a box.  These include:

Convenience of Your Small Business Knowledge Center

A business school in a box is the equivalent of distance learning, a well-respected and established method of imparting knowledge.  Many of today’s universities, including top business schools, use this method in order to provide better services and reach more students.  Here’s an example, students in China can enroll in online business school courses being offered in USA colleges.

Since student entrepreneurs don’t need to be physically present on campus in order to participate, they can absorb lessons at their own pace and in the privacy of their homes.  This forum gives them the flexibility and relative freedom to develop their ideas for a home based business and devote serious attention on how to start a home based business that they might not achieve in a traditional classroom setting.

Lower Food Costs for Your Business Education

Generally, a business school in a box package can be less expensive than the best online business schools.  Most assignments and tasks assigned just require the use of available, virtually free technology, with minimal need to produce hard copies.  Because program’s materials can be accessed from the home helps students save on their travel, food and lodging expenses.

With its low cost of entry, learning how to start a home based business or acquiring the knowledge to grow your home based small business this format presents an attractive alternative to other educational options.

Access to all-you-can-eat business training and coaching resources

Some of the best business schools in a box programs use combinations of teaching techniques to optimize the learning experience for their students.  Other than passive lectures, for example, students can also take advantage of online classroom settings, discussion forums, chats and instant messaging in order to communicate with their instructors and classmates.

In today’s globally-focused, online-driven, socially networked economy, expanding your home based small business or getting the knowledge you need on how to start a home based business is easier, cheaper and more robust than ever before.

You will find there are more than enough educational options, regardless of whether you:

operate a home based business for moms and women;

have promising ideas for some part time home based businesses;

desire to make your efforts pay-off with a more profitable home based business. 

Copyright © 2008, Mustard Seed Investments Inc., All Rights Reserved Worldwide.

We recommend a simple 3 step formula for determining what duties to assign an outsourced employee. First and foremost should be revenue producing functions. Simply write a list of what they should be. These include: appointment setting, cross-selling your existing customers on additional products and services (very important), telesales to new prospective customers, follow up sales calls on old leads that never closed, email blasting to generate new leads, internet sales, sending out online newsletters to existing clients, search engine optimization, blogging, article writing, handling your social networking (Facebook, Linked-in, Twitter, etc), updating your website with fresh content and articles, there are over 50,000 free classified advertising sites on the internet other than Craigslist.org they can post these ads for your business, and much more.

Secondly, are the revenue retaining activities. These include: customer service, technical support (online and on the phone), internet “live chat” on your website, invoicing, billing, taking phone payments, collections, sending out birthday or thank you cards and gifts to clients, fulfilling client information requests and more.

Third and last, are the non-revenue producing functions. These include: book-keeping, accounting, payroll, data entry, document and contract preparation, programming, research, answering your emails and cleaning up your inbox, scheduling and managing your calendar, acting as an answering service, fulfilling information requests from prospective clients, office management, employee scheduling, presentation preparation, making travel arrangements, desktop publishing, computer training, medical/legal transcription and more.

The benefits of outsourcing to a qualified VA are plentiful. VA’s use their own equipment so there is no wear and tear on your office equipment or a need for special equipment. By outsourcing to a VA rather than hiring an in-office assistant, you will never need to pay employment insurance, vacation pay, sick pay, or contribute to retirement plans and worker’s compensation.

There is no cost for training new or existing employees; VA’s are already qualified. There is no need for extra office space; VA’s do everything off location. There’s no need to worry about in-office employees requesting time off; VA’s are available when you need them. Like you, a quality outsourcing firm understands the needs of businesses today, ensuring the success of their clients. A good outsourcing firm values each and every client; it is because of these clients that they ensure your VA’s will aid in the success of your business.

How else can outsourcing to a VA save you money? VA’s are pre-trained and experienced individuals with the ability to catch mistakes made in-office, not only saving your business money but also protecting your business reputation.

And for those in-office employees that you cannot go without, a VA can take a little of the never-ending workload or less-important projects off their shoulders to ensure you, as a successful business, maintain your quality reputation and increase employee productivity.

So the question really should be, “why didn’t I do this years ago?”

What to take YOUR business to a whole new level? This article is designed for business owners who want to take their business to a whole new level and realize results beyond their wildest dreams.  The first of a three part business tips series, it deals with the 24 key attitudes that are fundamental to the success of your business. 

The second article… The 5 Biggest Small Business Mistakes and How to Fix Them deals with the next most important area – Marketing. Without a solid foundation of who your target market is, what they want, how they want to deal with you, then you have no prospects, no customers and no basis for a company.

Finally, the third article in the series… The 5 Key Business Profit Factors  deals with how to make massive amounts of profit.

The Key to Business Success

What is the most important factors of a business’s success?

·         A Unique Selling Proposition (USP)?

·         Having the lowest prices?

·         Great sales people?

·         The best location?

·         The best products?

·         Good customer service?

·         A strong local economy?

While these are all factors, based on our experience working with all kinds of different businesses, the most important determinant is YOU – the business owner.  History is riddled with examples of successful businesses that have failed with a new owner and lackluster businesses that have flourished under new ownership.

As a result, you are your most important business project.  As such, you should be investing significantly in yourself.  This includes reading books, examining your strengths and weaknesses, setting development goals for yourself, seeking outside advice, tracking your own personal development and getting a mentor to keep you on track.  You probably spend plenty developing and maintaining your business’s physical assets.  How much time and money do you spend on developing yourself?  

The great motivator and speaker E. James Rohn advises: “Work harder on yourself than you do on your job”.    In my opinion, if you are serious about your business and what you want to get out of life, you simply must dedicate 5-10% of your time to self-development…   And, yes, you must set aside some money to pay for it.  Rest assured, this money will likely give you the highest ROI (return on investment) possible.  After all, you are the person that can increase your profits by 50% or more.

There is no better time than now to make a commitment to yourself.  Get out your calendar right now and block off 30-60 minutes every day for self development, for the next 12 months.  Next, write down specifically what you are going to do with this time for the next two weeks.  At the end of two weeks, you should be in a position to detail your development plan for the next month, then the next quarter.

Another great quote, also from Jim Rohn: “Never wish your job were easier, wish you were better”.    Think about it.  If you are better, you will get better results.  If you wish for it then you are more likely to find a way to make it happen.  If, on the other hand, your job were to be easier, then everyone would want to do it and you would be back to square one.

1.   The Winning Attitude

The journey towards extraordinary profits begins here. There is no greater factor responsible for success, or failure, than your own mental attitude!  As a result, it is imperative that you begin by preparing your mind with the attitudes and perspectives that will set you free to achieve your business goals.  I am not talking about psyching yourself with positive thoughts, although at times this can help.  What I am talking about is adopting ways of thinking that will free your mind to find the solutions to your business challenges.

How you think and what you believe to be true about how you do business is what brought you to where you are right now.  Before you can find a better way of doing business, you must learn a new way of thinking about business.

It is a simple truth that it does not matter if you think you can, or you think you cannot, either way you will be right!

Stop blaming, denying or making excuses and start taking ownership, being responsible and winning.

2.   In Business There Are No Mistakes

Did you know that Edison had tried over 500 times, unsuccessfully, to make a light bulb.  One day he got asked “you have failed 500 times, how can you go on?”  Edison quickly responded “I have not failed once!  I now know 500 ways not to make a light bulb.”  The only failure is the failure to Participate.

If you want to be successful in business, you must be prepared to take calculated risks.  Many things you try will not work the first, or second, time.  You learned to walk by falling down.  It is the same in business.  You probably had parents or that gave you a safe environment in which to learn.  In business, you can seek out a mentor to help give you a safer environment.

3.   What if Contrary Information was “Interesting”?

Have you ever had an argument?  You knew you were right and the other person was wrong.  However, the argument was vigorous because the other person, who was also bright and articulate, was convinced they were right.  So, there you had it, two people both right and both wrong at the same time.  You argued but the other person would not relent.  Several days later, you still were thinking about it when you realised that you were wrong after all. 

Brad Sugars, the remarkable entrepreneur has an approach which has enabled him to continually innovate.  When Brad hears an opinion that is contrary to his he says, “isn’t that interesting?”  This then opens his mind to the possibility that he will learn a new way.

You see if there is an up, then there must be a down, and a left and a right… If you have to prove yourself right, then you cut off all possibility that there may be a better way. 

If you truly want to change the success of your business, you must be willing to change the way you think and the way you behave.  Isn’t that interesting?  

4.   I Know – the 2 most dangerous impediments to Business Innovation

Teenagers KNOW everything. Just ask them. Now that you are a little older you realise that it is probably not polite to say, “I know” out loud to everyone.  So as an adult we listen politely, cross our arms, all the while in the back of our mind saying, “I know”.

Try this exercise.  Close both your fists tightly.  Now try to button your jacket or make a phone call or compose an e-mail.  Your mind is like those closed fists.  There are very few things it can do well when it is closed.

You need to forget the mindset that says “I know”.  It is what you learn when you think you know everything that counts 

Open your mind up, it is not the major realizations that will make you a fortune, it is the fine distinctions that gives you the edge over the rest of the population.  The difference between ordinary and extraordinary is that little bit extra.

5.   Business is Fun!

You have decided to go into business for a number of reasons; more money, more control over your time, more free time.  Unfortunately, if you are like many business owners, you let the business take control of you.  It may even suck the life out of you… but life should be fun.  Since owning a business should give you more life, it only stands to reason that business should be fun!  To have fun, I suggest you treat it like a game.  First, learn the rules.  Second, keep score.  Finally, have fun

6.   Time is Your Most Valuable Asset

If you spend every penny you have you can go out and earn more money.  In this sense the amount of money we can have access-to is infinite. Unfortunately, we all have a finite amount of time on this earth.  If we waste a minute, we have lost it forever.

While this may seem intuitively obvious, amongst the business owners I meet, this one simple principle is the most important yet under appreciated principle of business.  Let me describe one conversation that is representative of conversations I have had time and time again with different business owners.  We will call the business owner Mark 

Peter:  Tell me how your business is performing relative to your goals.

Mark:   Well we are doing OK but I know we can do better.

Peter:  If you know what to do, what is keeping you from doing it?

Mark:   I always get interrupted and I can never find the time to do the new things.

Peter:  Is your business profitable?

Mark:   Yes it is. But I know I could easily do better.

Peter:  How much would you like to make in the next twelve months?

Mark:   After all expenses £150,000.

Peter: Do you believe that this is a realistic objective

Mark:   Absolutely.

Peter:  How many hours a week would you like to work?

Mark:   50 hours per week and I would like to take 5 weeks vacation (including holidays).

Peter:  So Mark, that means you would like your business to earn about $64 for every hour that you work. (£150,000/(50 hours x 47 weeks)). 

After an examination of Mark’s workweek, it was obvious that he was involved in a number of activities that were not worth £64 per hour.  If Mark spends 35% of his time working on tasks that could be handled by a £15/hour employee he is either going to have to work a lot more hours than he wants to, or he is going to have to get his business earning more like £90 per hour for the balance of the time he works.

Now, I am quick to advise owners to be careful with how they spend money.  But Mark’s penny pinching was not in his best interest.  Mark was trying to save paying more wages (about £17,000 per year).  But, by trying to save money it was costing him considerably more.  He was not having fun and he could have been implementing changes that would yield him more like £50,000 in additional profit (3 times what he thought he was saving).

As an owner, the most important decision you make is what you spend your time doing.  Owners that I meet who work too many hours and do not make as much as they want, often treat their time very causally.  Typically, they do not plan their day and tend to be reactive.  Often they do not even keep a calendar. Rarely can they tell you how they actually spent their time.  Conversely, successful owners plan and track their days and their week as carefully as they spend their money. 

I recommend that you emulate the successful owners.  Think about what will give you the best long term ROI [Return On Investment] for your time.  Do not be distracted by saving a few short-term pounds if you have an opportunity to create something that will generate returns for you year after year.

7.   Questions are more important than answers

One night at dinner, a young man asked his wife, “Why do you cut the ends off the roast?” Her reply, “I am not sure.  It is what my mother used to do”.

Some time went by before they visited her mother for dinner, and when they did, they had roast for dinner. So he asked, “why do you cut the ends off the roast?” Her reply, “I’m not sure, my mother always did it that way”. So he made a phone call to his wife’s grandmother and asked, “why do you cut the ends off the roast?” Her reply, “well, I’ve only got a small baking tray”.

So, often we do things, just because it is the way we have always done them, having absolutely no idea why it was done that way to start with.  Ever notice how new people tend to question things?  As an owner you should question why your business runs the way it does.  The only way to perform substantially better than your competitors is to be substantially different from them.  In business, following the crowd will almost certainly lead you to slaughter.  Looking at it another way, have you ever seen a flock of eagles?

To succeed in business, you often have to depart from conventional wisdom.  For many people this will be difficult – especially those who did well in school.  After all, we were taught in school what we had to do to be successful – quite often it involved conforming.

In an increasingly competitive environment, you must distinguish yourself by more than just price. You do this by being different. Think about what makes you unique and then tell the world. 

8.   Take a look in the Mirror

Ever notice that when you are having a good sales week that the next week just seems to get better and you keep closing more accounts with little or no effort.  Or maybe you have had a slow couple of weeks and all the prospects that you meet seem to have trouble deciding.  You have to make multiple sales calls, answer question, after question, after question.  The people you attract in your life are a mirror of where you are at. 

Most businesses are a clear reflection of its owner. Some owners want to control everything and wonder why none of their team ever takes any initiative. Some hate selling and love paperwork, so they have always got their numbers done, but never really sell much.

When I look back at my life I can clearly see times when my successes lead to more successes.  Success follows success. This brings me back again to the key to success in business – you.  Make sure you invest in you.

9.   Business is a Self-fulfilling Prophecy

Remember the last time you bought a car.  You chose something that you thought was distinctive.  Then after you got it you started to notice that you were seeing the same car all over the place.  Or, another example, try right now to NOT picture a purple cow in your mind.  What happened…. You are seeing a purple cow… Your brain has an amazing power to create whatever you focus on. It is called your Reticular Activating System (RAS) and it is like your personal compass.

Your RAS will find proof that the earth is flat if you want it to. In fact, it will find proof that November is a slow month if you want it to. In other words, attention determines direction. Just like the last time you said to yourself; “Do not forget, do not forget, do not forget… ” And, what happened, you forgot. Change your wording to “remember” get rid of the negative ‘do not’.

Another example, if you were to ask a person how their day has been, and they answered, “Not bad”. What is their benchmark on life? BAD, and today is not that. Your RAS is an amazing tool and it will find whatever you ask it to find, so you had better ask for very positive things. Remember to ask for the things you want, NOT to push away what you do not want.

Every day your business meets your true expectations. In other words, if you believe you have to work hard to make money, then that will always be your reality. If you believe you can never get good people then that will be your reality.  You generally make true that which you believe to be so.  So, choose your beliefs carefully.

10.        Listen to the Taps on Your Shoulder

Traveling down the road of life, it is easy to be distracted, get off track and lose sight of the big picture. You have heard the old saying, “can’t see the forest for the trees”.  However, every day you are getting little taps on the shoulder, an idea that you should change what you are doing, a suggestion from someone, a hint.  These taps are just like the cats eyes in the center of the road and the small slits in the shoulder that serve as warnings.  You feel little taps if you stray too far one way or the other.  Either you learn to listen to the taps and adjust your course, or eventually you will run into the sign posts at the side of the road, or worse, oncoming traffic.

In business, we get taps all the time.  Unfortunately, they are a lot more subtle than the taps we get on the road.  They are however, just as important for the health of your business.  If you do not want your business to be run over by the proverbial ‘hit by a bus’, it is imperative that you become adept at listening to the taps.

The most successful business people are very perceptive.  They have perfected the craft of surrounding themselves with other people and then listening – really listening – to what they have to say.

So, be sure to listen for the taps and look for the signs. Sticking your head in the sand never helped anyone.

11.        Build a Business do not Buy a Job

From what I have found, people start their own business for one thing and one thing only: FREEDOM; whether that freedom comes from working for yourself, having more time to yourself, financial freedom, or just the freedom of knowing that you are in charge of your life.

With a successful business, this freedom is truly liberating.  Now your friends that have never had any interest in captaining their own ship (those who work for others) may argue that you are far from “in charge” when exposed to the volatility of owning a business.   What they do not realize is that if you have 100 different customers and you lose half of your customers you still have 50 left. Your friends on the other hand have only one customer – their boss. If they lose that “customer” then they are out on the street!

Unfortunately, most business owners never achieve the freedom they seek.  In fact, about 80 per cent of businesses started this year will be gone in 5 years time.  Moreover, for those businesses that are still operating, most of their owners seem to work harder than any of their people and many seem to make less income than they could make elsewhere. Most end up having the business run them, instead of them running the business. In fact, they end up with the very thing they did not want, a JOB.  And that job may even come with the worst boss they ever had – themselves!  In effect, they have taken great risks and expended vast energy and all they have done is bought employment.

12.         A business needs to be profitable and work without YOU!

If you want to achieve that freedom that all business owners seek, then you should adopt this definition of a business:

A business is – A commercial profitable enterprise that works without YOU!

Why build a job for yourself when you can build an income stream that keeps on growing whether you are there or not. Remember the business exists solely to serve you – the owner; not your customers, or your employees.  Yes, customers and staff are important, but the reason you start a business has nothing to do with them.  It is essential that you adopt this attitude.

13. The only reason you would ever start a business is to sell it.

If you want to achieve true success and freedom then you need to think of your business as your product.  It is what you are building and it is where you are ultimately going to make your profit – selling the business.  That is right; you start by thinking about how you can build your business so that lots of people will be competing with each other to buy your business. 

Very few people ever make a fortune running their business, but many people make a fortune selling businesses.  Look at Bill Gates for instance. Yes, he has made a lot of money selling software, but he became the richest man in the world by selling his business – shares of Microsoft.

Are you too involved in your business? Ask yourself: could I pick up the phone in the morning and tell whoever answered, “you guys look after things, I am taking three months off”.

If you are like the vast majority of business owners out there, the answer is definitely NO.

14.         Working “ON” not “IN” the Business

Ultimately, you have to get yourself out of the day to day of the business. Stop working 9 till 5, doing the work of your business. Else be like most small builders…  they spend all day using a hammer and nails, working IN their business.

Imagine when you started your business that you built it in your mind, and then you put down that picture of what your business would be like when it was finished.  If you are going to sell a product, you must know when it is finished.  It is the same with a business.  You have to finish a business at some stage and have it ready for sale.

As an example, let us say you wanted to buy a new sofa.  How much would you pay a furniture shop for a partially completed sofa?  Likely, only a very small fraction of what a completed sofa would cost.  In fact, if you are like most people you would not even be interested in paying anything.  It is the same thing for a business.

When people try to sell a business that is not finished, at most they are really only selling a JOB.   As a result, these people only get a few people interested and they only ever get a fraction of the potential price.

When you have the finished picture of what your business will look like, then you go to work creating the business.  This way you are working ON the business, rather than just working IN the business.  You should be designing your business to run whether you are there or not.  If you do this then you have a choice, and choice gives you freedom.  You can work in the business or you can spend your time more creatively.  You can keep the business, or you can sell it.  I like good choices like these.

15.        You work hard because your business doesn’t

Imagine a business where you did not have to work there – would the business WORK? I mean, would it function properly?  Would all of the systems and the people integrate to get the result you wanted, the result the customer wanted?  Of course it would.

Almost every business owner I have ever met works so hard (too hard) for this exact reason. Their business does not work, they do. Everything about the business is in their head, and they are the only one who can do anything, so they are trapped.

Most are like this because the owners do not trust anyone else to do the job. For some reason they believe that no one can do it as well as they can. This need to be in control prevents them from growing their business.

Take the step, start to document how everything in your business gets done, put systems in place, teach other people and give them the responsibility to get the job done. (If you need more convincing, Read Michael Gerber’s book – The E-Myth Revisited. 

16.        Assign Tasks.  Don’t Delegate Just To Abdicate

All great leaders are good at delegating so you must start off-loading tasks as soon as possible.  Remember, time is your most precious commodity.  Since delegation is so important, you must prepare properly for it.  You must make sure that the person that will be doing the task knows what to do.  The worst thing you can do is to abdicate a task to someone.  By this, I mean telling them to do something when they do not have the skills or the training to handle the task.  It is essential that you carefully explain what you want done, how you want it done and what you consider a successful outcome to be. 

This may come as a shock, or at least seem like overkill, but you must document how you want your processes and tasks to be completed.  From my experience, most owners just give their staff a (quite often limited) set of verbal instructions.  The owner then assumes that the employee knows what to do and the employee then assumes what he thinks the owner wants done.  While well intentioned, this feeble attempt at delegation often does not produce the desired results.  You see, it is a simple but important fact about human learning that only about 20% of people are auditory learners – people that receive and easily comprehend verbal information.  The rest of us are either visual or kinaesthetic learners. That is, we need to see (a picture, diagram or read) what to do, or we need to actually do something before we fully understand.  (I have some simple, but effective tools that can help you successfully delegate.)

After you have properly prepared, trained and given your team member the job to do, then let them do it. Do not jump in and save them or they will never learn how to get the job done. If you do, they will “learn” that you are the only one who can fix things.  Guess what, they will be right.  You have to let them fall off the bike to learn how to stay on.

17.        Work for Yourself and go the extra mile

What if you do not own a business yet – that is, you work for someone else?  I suggest that you think like You Inc.  Treat your boss like he is your customer.  You want your customer to be thrilled with You Inc.  You want him to continue to buy more and higher value services from You Inc.  At a minimum, adopting this attitude will be great experience.  Think of your job as market research (for your business) that someone else is paying you to do.  But remember, what goes around comes around, so give it everything you have.  Your boss may even spot a future business partner in you.  Always go that little bit further than you are asked to, give a little extra and you will go far. If you are asked to stay until 5:00 PM, stay until 5.30 PM, just do a little more than were asked.

18.        The key to success is laziness

Which would you prefer – 1% of 100 people’s income or 100 % of your own income.  I would prefer the former, not just because I am lazy, but also because with this attitude my income can be unlimited.  On my own, I can only earn 100% of my own income.  On the other hand, there is nothing stopping me from working with 101 people or 1000 people. (why stop there?) 

If you have ever thought that you will succeed if you just work a little harder, put in some extra time, or just do more of what you are doing right now, then it is time you lifted your head and took a look around you.  You probably know several hundred people who work hard.  How many of them are really getting somewhere?

The aim of the game is not to work harder; it is to create better results with less effort – finding ways of achieving more with less. In other words, to continually leverage your time, your efforts, your money and your knowledge.

If you are paid an hourly wage, you will never earn more than the number of hours you work, but if you and your business are set up so that you are paid whether you work or not, then you have truly understood one of the key principles of success – Leverage.  Leverage is simply – the ability to do more with less. The aim of the game is to create an income stream that flows whether you work or not. Build assets that yield income.

There are numerous ways to create Leverage. You can leverage yourself through people, systems & processes, marketing and finance. 

19.        Your Business is Like A Tree

It is important to view your businesses as a living organism – like a tree.  Your business is either growing or it is dying.  When does a tree stop growing – when it is dying.  The same is true for a business.  You see the world does not stand still.  New products, services and competitors are cropping up everyday.  If your business does not evolve, then it will die.

20.        Change – The Only Constant

It is important to consider your business in the context of the wider business community and the world economy.  Consider the Agrarian, Industrial, Information ages.

In the Agrarian age (which lasted until early in the 20th century) 95 per cent of the population worked the land and the wealthiest people were the landowners. 

In the Industrial age (which lasted until about 1980) those that owned the factories created the most wealth. 

In the Information age those that owned the computers and software production, the telecommunications and have the information and corresponding managing tools created the great wealth.

By considering just the length of time that these ages have lasted we can easily see that the pace of change continues to accelerate at an increasingly rapid rate. In the information age we are living through, it only takes about 18 months for the available information on the planet to double, where it took about 50 years a century ago.

Some would argue that we have already left the Information age.  With constant change, occurring at an increasingly rapid rate, it has never been more important for owners to:

1.      Work ON their business, rather than IN their business

2.      Work harder on themselves than their job

3.      Surround themselves with experts that can give them every competitive advantage

21.        How Do You Compete?

With information moving so fast, people can copy, reproduce and have ready for sale any product or service in a matter of weeks. In today’s economy, you cannot be cheaper than your competitors can for long.  Therefore, the 21st key is that you have to know what information is important for your business success.

The only way you can stay ahead of the market is to out-think, out-sell, out-market and out-maneuver your competitors. Your marketing, sales and customer service is crucial. You do not have to have the world’s best hamburger to sell billions of them.

The next time you have a group of people in a room ask them “who thinks McDonald’s have the best hamburgers in the world?” I will bet that not one person puts up their hand. Yet, who sells more hamburgers than anyone else does?

Then ask the same group, who thinks they can build a better sales, marketing and distribution system for hamburgers than McDonald’s. Once again, no one will put up his or her hand.

22.        Ask for more

If you are going to build a great business, if you are going to make your fortune through business then you have got to ask for a whole lot more than you do right now.

If you shoot for the stars, at least you will make it to the moon.   If you do not ask, the answer is always NO. If you start to ask for more, and be grateful for it, you just might start receiving. Just remember, those who are grateful always receive more than those who just complain about life.

Do not be afraid of someone saying NO. They are not rejecting you, it is just that your request may have come at a bad time or their goals are not quite aligned with yours. Do not take offence … every NO gets you closer to a YES.

23.        Abundance vs. Scarcity

For most people getting more means that someone else has to go without. As intuitive as this may seem, nothing could be further from the truth!  There is literally more than enough to go around.

To succeed in business, you often have to depart from conventional wisdom.  Because, as I mentioned earlier, the crowd is often wrong.

Scarcity was first espoused by English Preacher Thomas Malthus, who concluded that England would run out of food as there were too many people for the available food production.  Yet, even to this day we still produce more than enough food to feed the entire planet.  Because we believe in scarcity; or more commonly known as supply and demand, much of it gets thrown away. 

In business, you have got to realize that there is always more than enough money to go around.  When will you go out and get your share?

Abundance is a mindset, a mindset that understands how technology has removed scarcity; how the old thoughts in economics are exactly that – old. (Read Paul Zane Pilzer’s book – Unlimited Wealth for more on this.)

24.        Work Smarter, not Harder

Just to prove that thinking differently is so important, write down how much money you earned last year. Now add a zero to the end of it. You have just increased your income tenfold.   To make that much money doing exactly what you are doing right now, how hard do you have to work? 

You have to stop working harder and start working smarter.  Remember, people with jobs earn money while business owners and entrepreneurs make and create money.

Some final words

We have been discussing some key attitudinal concepts that will be fundamental to the success of your business.  Yes, there are a lot of other important concepts about Marketing, Sales, Customer Service, Operations, Employee Development, Finance, Cash Management and Administration.  There is a lot that can be done to help you develop your business in all these areas.

However, years of experience tell us that it is the fundamental attitude that you must embrace first.  Your attitude is the essence of who you must BE as a business owner if you are to get what you truly want from your business. 

This experience is also consistent with the simple BE-DO-HAVE goal attainment philosophy.  This philosophy says that in order to HAVE the things you want in life you must DO the right things.  Before you can do those things, you must BE the person that is capable of doing the right things.

A Complete Waste of Time!

Now let me be brutally honest with you.  Most of the people reading this article will gain absolutely no lasting benefit from having done so. It will have been a complete waste of time!

Why would I say that?  Do I not believe that what we have written has benefit?  Absolutely it does…. but then again, there are many great business books.  Most of them have a lasting impact for only a few people. 

In order for you to get any lasting benefit from the information I have presented, you must take some action.  Otherwise, nothing will have changed for you.  If you do not change anything, you will get the same result that you are already getting.   

Peter Cantelo (Copyright 2008)

www.vivavi.co.uk

For the Support  of Small Business in Georgia

Content.

In the conditions of deep economic crisis and  during the period of extreme restriction in requisite  resources for economic investments of tendency of selecting priority in investing activities enquire upmost importance. According to these circumstances, small and average businesses must be admired in such system of priorities. It follows not only from conjectural, political  or ideological  purposefulness, but also from objective activities of social-economic conditions; Simultaneously it is also connected to the position perspectives of this field to solve vital questions of the country. (creating concrete atmosphere, increasing employment level and efficiency, treating and spreading technical decisions etc)  however, it is baseless to speak that small and average businesses in our country have any kids of advantages in distribution of investing resources, ` moreover, it often moves to the second place.

Financing has always been the urgent problem of small and overage businesses.  According to the social research of small industrial management, half of respondents had to use  their own savings in organizing these enterprises. Only more than a quarter managed to receive credits, but less than 20% – to attract depositors’ sources.

The  employers admit that, the first and main problem is finances and buildings and then follows cooperation with local authorities. However, investment always remains as the main problem in the activities of a particular firm.

Pressent Day Situation of a Small Business.

In western countries outnumbered commercial banks, insurance companies, branch funds, regional commercial departments of tuition structures stimulating small business, regional guarantees, outnumbered charitable funds and associations, actively support  them.

Due to not existed similar institutions, the development of small and average businesses is prevented. So it is quite natural, that development of small industrial net is still unable to form the commodity market. Nowadays supporting industrial activity has  no main basis in small and overage businesses. The situation of providing these enterprises  with material, energetic and financial resources has recently   been deteriorated; according to results of selective researches in 2000-2005, in order study small industrial business activities in industry, building and retail trade showed  that  nearly 40% from small industries have their raw and building material supplies reduced. The existing level of orders and resource  maintenance was estimated as “..below average”; however unlike large industries, homogeneous tendency  of economical situation in small and average businesses is distincted, e.g. during 200-2005, the amount  of employees and usage level of industrial capacity maintained sufficiently stable in small industries.

Although capital investments of small industries include sufficiently large amount  of  money (11% of investment realized at the expense of financial resources in Georgian economy. The small enterprise activity of industry in the field of investment is still exceptionally low.

Inquiries showed that among active reasons  about  restriction of investing activities, about 60% of  respondents  consider high level of taxation, 30% – high rate of inflation, above 30% general economic and political instability.

The leaders of small industries, critically characterize competitiveness of their products over 50 % of leaders  consider   it as “average” towards the internal market.

Leaders of examined small industries consider lack of their own resources. (75% from inquired people), high payment rate (over 60%), unaccepted conditions of investing and accounting as a main resistance for their  innovational activities.

Financing Sources of a Small Business.

Analysis of financing sources for small and overage business  shows that the most available for their activities are inner developing sources which are used by over 3/4 of industry, while only one from four, manages to abtain any kind of means from external sources. Enquiries show that their own small business incomes take first place among financing sources. It’s  proved by every two participants from three ones. On the second place are the founders of average business with their own sources;  (21,7%). And private credit takes the third place, used by 17,9% of these industries. Other sources are used by 10-15% of small businesses. Simultaneously over 20% of enquired leaders consider that their enterprises have no any developing chances. More complete idea about the nature of investing in small and average business field is given by the results; Researches on tendencies of small business investments. According to this data, leaders are those industries which direct their investments towards the equipment and transportation (57,5%); and the enterprises which use investments to fill their sources of circulation. take the second place (44,3%). A lot of enterprises use their sufficient sources in repairing building and commercials (38%). Over 20% of small enterprises spend their sources on their staff training.

Comparison of data according to the groups of small industries prove all the following differences connected   with specificity of a business field. e.g. small industries of trade fill their  sources of circulation, frequently (76%), but they stay backward in investment of human capital – only 8% of them provide staff training, whilst corresponding average index for all enterprises is 20,8%.

One of the main problems in small business development is their slight investment in the process of crediting due to existing high risks in this field. It  is caused by following factors: usually, small industries have no ability to represent absolute  guarantee independently over their responsibilities and there’s no complete system of guarantees and insurance of their investing activities.

Usually, personnel of small and average  businesses have no sufficient knowledge in economy, which is the main cause of those incomplete projects which are introduced by them. As for consulting service of business management and preparation of investing projects, as a rule it is excessively expensive for enterprises of small and average businesses.

The results show that in the process of providing crediting resources, leaders of small and average enterprises experience not only general inflexibility of crediting, but also discriminative policy of banks towards small and average businesses.

The main difficulty in the process of receiving credits is price restriction (very high percentage was mentioned by 47,6% of leaders of small enterprises); It is followed by the range of nonprice restriction – unpractical mortgage and  guarantees (21,9%), innaccessibility of investing credits (10,5%), restriction of crediting terms (14,3%) and subjective evaluation of discriminative conditions. Besides, the role of organizing factors is not sufficient.

The interests of commercial banks are not directed towards crediting of small enterprises due to their non-existing complete technologies of investment; Besides it claims to discuss numerous investing projects, though working procedures are highly  significant. Banks don’t take risks, due to their negative experience in disappearing of credited firms, no returned credits and hidden mortgages, including small and average businesses as well. Hence, due to controlling and providing insurance, they choose organizations having accounts in a particular creditor bank.

Banks avoid crediting of newly founded firms and insist on collateral security guaranteeing  a small enterprise. The level of percentage implies the level of risk that is significantly high for every small industry. Standard validities of given credits include  3-6 months period.

Thus, Georgian banks. like in western countries must inevitably develop assisted financial services for small and average businesses. First of all, it includes detailed treatment and examination of any kind of projects independently from credited funds and improvement for abilities of banks in estimation of loans. The same time, they must rely more on the knowledge of potential resources for enterprises and markets than in the amount of funds and guarantees.

Who Helps and How to Developa Small Susiness.

Noticeably developing non-governmental specific structures formed for supporting small and average industries are also of great importance. The first similar structure was founded in 1992. It was an agency, supporting small and average businesses. Its purpose is to increase industrial activity among the population with the  help of consulting, informational and expert services provided not only for small and average industries but for pioneer implcyers as well. It includes issues on economic, financial and taxation policy; recommendations about keeping a ledger; support for composing constituent documents; registration of enterprises and allowance of their activities; elaboration of a firm mode, teaching business; (hobbits based on special programmers, worked out  of the agency together with foreign experts). for  the successful development of their own activihes; (business planning; marketing; commercials; industrial experience etc); informational support for the operations of external trade. customs issues and other normative juridical problems. Agency constantly tries to expand its  own activities. It mainly includes issues on the support  of activity of small and average business industries. Special investing department is created in the structure of agency for this purpose, which is directed towards the preparation, training and conducting of recommendations for composing  business plans, investing projection and financial management; working and conducting of examination for investing projects; researches of their financing sources. The given department is an official agent of the federal fund for supporting small industries, that is directed to the selection of industrial projects for providing credits.

In the beginning, the functions of agency were distinctly oriented on the demands of developing small and average businesses in Tbilisi region, but now it has begun to play the role of informal-methodical – coordinative organizational structure throughout the country.

Realization of this role is significantly depended on the formation of corresponding regional agencies and their active participation in the country. Above mentioned activity of  the agency must necessarily be established by state departments.  Namely, it is advisable for the government to elaborate a special document about “regional agencies for supporting small industries”. In this document, it is necessary to be mentioned the labor financing scheme of the regional agencies’ net at the expense of assignation from the state budget. Formation of regional agencies supporting small and average businesses   is decisive to serve physical and juridical persons in creating small and average enterprises and to provide their effectiveness. Such schedule of services is defined by developing quality of agencies which may include practically all types of support for small and overage businesses including informational services,  legal advice and participation in investments. As a rule, the purpose of agencies is not receiving profits and that is why their quite high level of services  compared with ones of other organizations are relatively cheap, but in some cases it is  absolutely free of charge; if agencies function into contact with the government and authority organizations of all level. and are based on the assistance of these organizations.

Herewith, the first task is that the agency of small and overage business supporting, leads the work to form united  informational net of regional agencies, that will take active part in the field of modern informational technologies, highly quailfield organizations. It is a significant stage of business, for united as well as regional agencies. Practice showed that, distinct division is the most essential task for separate regional agencies and affective organizational development of their net. It implies the gradual development according to the accumulation  of organizational experience,  stabilization of financial situation and  equipment with modern organizational-technical means and so forth. At the some time, determined service must be formed gradually and  successively, not only in accordance with the principle of senseless expansion of above men toned factors, but also selecting  the variants which are the most profitable and essential for the agencies in this or that concrete region. It must be said that estimation of perspectives in small and average business support activities is connected with the fact, that its significance is constantly outlined by the central government of the country as well as regional authorities. Of course, it clearly gives the chance to make optimistic prognosis. Unfortunately, in reality, the existed mechanism to support small and average businesses can’t still put into practice not only present-day objective demands, moreover the tasks which are not only possible to be solved but should be , for the development of its investing activities.

Wat is the Programme of Small and Average Business Investment Support?

As it is know, programme realization of investment support in small  and average businesses, may have double substantiation. The first assistance of a small  enterprise development, represents the effective way of solving social and foremost, employment  problems. Thus, conception of social direction for financial support in small and average business fields, follows that, grant realization of socially useful functions in a small business, must be fulfilled by state and society. The second-progress of small and average businesses are significant factor from the standpoint of effective use of people’s economic resources. Due to such approach , from the position of market   economy, defined means for small and average businesses must be considered as profitable investments.

Nowadays, systematical crisis is proceeded in our country. Factual unemployment problem instead of falling is rising steadily and it requires of taking vast  and active measures for small and average business  development. Simultaneously, tensity of central and local budgets  and lack of foreign investments do not give chance to form such material-financial basis, that includes all the above mentioned factors.

It’s clear that the way out of exiting situation can be found in the treatments of conception, such is investing support (and realization)  of small and overage businesses, when all the possible funds used with this purpose will  be spent on forming organizations and such financial machinery, that has high level guaranteeing aptitude for the feedback of invested resources. For the realization  of this conception, several main directions can be singled out, for the fulfilment of investing activity in small and average businesses.

1. Scientific-analytical and informative provision development of investment support mechanism  in small and average business fields.   Here, main goal is to study priority system of financing  for small enterprises, according to essential directions of development  and substantiation of their realization activities with the purpose of reflecting aims at each level. (central, regional as well as small and average enterprises). Strategic research organization and financing, forming development conceptions and treatment of inter-active mechanism for investing support system in small and average businesses. In addition to the point above, the following must be taken into account.

The first and foremost, the mechanism for investment support in small and average businesses must be based on state structural and industrial policy, financing of private investments or definition of essential directions for stimulation, in the section of divisions,  subdivisions and enterprises – definition of so called dot priorities.

Second – towards the formation of mentioned mechanisms, maintenance of scientifically proved approach is accessible as far  as it reflects the real peculiarities of economic development and  investing processes in this or that region.

Third – Improvement of scientific -methodic and informative supply for investment activities, mostly in small and average businesses is simultaneously connected with the existence of investing projects of small enterprises in order to restrict existing risks. The most is financial, technological and marketing accompaniment, i.e. financial analysis, technical examination, and marketing research of investing projects of enterprises in small and average businesses.

2. Reinforcement of objective direction and transfer the obstacle centre of topping-up process of investment activities in small and average enterprises at regional level. It must be taken into consideration that, formation of regional politics of investment support of these enterprises, in accordance with this qualitative index of region economy, that creates the peculiarities for small and average business development and support. Simultaneously, the development level of industrial production, resourceful base, consumers market provision, regional problems of population employment and social  defence must be taken into account. Only complex  consideration of all these factors, gives chance to study those activities that provide attraction of owners of industries for people’s demands in the most suitable fields and stimulation of economic development, first of all at the expense of local possibilities.

Nonexistence of financing, due to the deficit of state and local budgets, is one of the main reasons, that  represents the obstacle for the outcome of central and regional programmers in supporting small industries. In such cases, it is advisable, not only subsidization of industries, but also the assistance for the development of infrastructure in small and average enterprises. (marketing as well as industrial). It must also be admitted, that the state should do its bit to establish special regional banks, innovational funds, informational analitic centers and such organizational-regional structures that serve small and average businesses and keep their interests by means of preferential duties privileged regime of transferring buildings to the possession, licensing, etc.

3. Development  of perspective forms of small and average business support and financing. In this field, for reinforcement of purposeful direction of investing process and raising its effectiveness, local administrations should orientate on the creation of main tendencies of progressive investment infrastructure for small and average businesses. Great attention should be paid to the following factors:

Grade 1. Development of crediting system for the purpose of increasing the number of financial support receivers and simplify the way of giving commercial credits to small industries, implies the expansion of financial institutes net, that realize small and average business crediting with preferential conditions. It includes: lowering interest, extension of crediting term, reduction of demands at the expanse of guarantee and free consultations.

Grade 2. Development of guarantee mechanisms of investing credits, given to small and average business industries must include given state guarantees  to commercial banks, which took part in financing these enterprises. Compensation of  some parts of interests rate. at the expense of commercial credits of banks, could be considered as the significant tendency of using guarantee reserves,  especially at the initial stage of project realization, when returning of funds is still delayed in small and overage business field, for the support of investing business activity.

Grade 3. Financial crediting mechanism of small and average business support, implies the assistance of development, including cooperation of small enterprises and establishment of new mutual – crediting forms of societies in crediting field.

Grade 4. Leasing  development, as the most perspective form, is inevitable process as the most perspective form for small enterprise investors. In industrial countries, leasing includes 25-30% of direct investments annually, but in our country it is not still well expanded. for moving complicacy centre of financial operations from circulation field into real sector of economy in leasing development, it is essential that the participation of reliable commercial banks and insurance companies to be actively stimulated.

Grade 5. Establishment of industrial and technological service  system  in small and average businesses, implies the consideration of this fact that, nowadays, actual reserve of  forming  some element of infrastructure of small businesses, can be usage of industrial capacities and properties of poor  industries, after their liquidation, reorganization and changing profile. (namely, it is possible to locate supporting units of small groups of ownership and enterprises on their base). Distinct experience of realization of such approaches is already existed in a number of regions from the standpoint of industrial-technologic support of industries.

Grade 6. The problem of developing modern tendencies in small overage and large business cooperations has already been matured, e.g. franchise development of small industries in Russia will help to solve many essential economic  and social problems. Here, first and foremost is meant the creation of new working places and broad involvement into business of all these people, who can’t manage it independently, without any support and getting suitable knowledge. In modern conditions, a range of obstacles arised against the franchise development in  Russia: non-existence of special normative-legitimate base and suitable informational insurance, owners insufficient knowledge of running business  by means of peculiarities of such skills and possibilities; nonexistence of sufficient consultative structures; and common financial-crediting problems.

In the development of modern tendencies of cooperation in large and average businesses, financial-industrial groups play a drastic role. According to the practice of development countries, such groups grow the stability of economy and give chance  to solve investing problems. It’s especially important  for the regions, where there are outnumbered branches and subbranches with high investment capacity. Such as: (fuel-energetic complex, wine-making, mineral waters, etc) and conversional enterprises. Financial-industrial groups can become the significant means of realization of state selective structural politics, as with the help of these large integrated structures, it  is easy to carry out rational manoeuvverability in industrial sector; among them, definition and support of prioritative  fields and enterprises.

Grade 7. It’s necessary to put ventural financing schemes into motion and develop investment insurance system in small and average business fields. During realization of the above mentioned schemes,  effectiveness of scientific-research and experimental-constructive works are significantly increased in small enterprises. Innovational campaigns of a small business, in most of the countries function by direct backing of the state, that really estimates their great national-economic importance and due to this is ready to assign corresponding  financial expenses. Innovational small enterprises, technological development funds, incubator of technologies etc. nowadays, in Georgia,  experiments of a range of ventural financing programmes realization, in small and overage business fields take place from foreign financial institutes. These are: European World Bank, Inter-American Development Bank, Development Credit Bank and so on. In the realization of ventural financing of small business, their experience can be acceptable for Georgian banks and financial institutes. In a country market, the most vital subject is insurance problems. In western countries, the insurance is considered as unavoidable mechanism of risk redistribution. Its increased level in small and average industries, causes a number of difficulties in the working process of insurance companies: herewith, simultaneously insurance and reinsurance, also guarantee systems of credit returning can be created. Perhaps, it is necessary, these systems to be supported distinctly by central and regional organs. (e.g. for specialized risk insurance companies, checking privileges or compensation of their loss). In perspective, Georgian financing crediting system must be filled with specialized net of risk insurance, connected with investment credit issue.

4. Establishment of united investment infrastructure in small  and average businesses. Specialization of financing-crediting system in small and overage businesses can be carried out in two ways: a) Investment. In the way of forming financial organizations, specialized at the expense of investing operations: 6) In the way of orienting, just connected with small business operations. Different combinations of the above mentioned directions of specialization for financing-crediting organizations in small and average  business fields, are also possible. But in any case, these organizations   must be given distinct privileges by  federal and regional organs. Unfortunately, for fear of next “financing pyramids”, at present, population don’t have  eny confidence in establishing these specialized investment banks and sharing investment funds, that assemble the private investors’ funds and after, these are put in small enterprises as well as in small and average infrastructural units as the investment portfolio. Thus, at initial stage ideological training for the sharers of small business and population is necessary. It’s not less important that such specialized investment organizations, for the  purpose of guarantee and getting confidence must be created on the initiative of these state, social and commercial organizations, which are highly qualified in successful running of small business industry field and have authority over this field.

5. The role of small and overage business support agencies in the development of crediting and investment mechanism of this field. In  the regions,  these agencies characterized by a range of peculiarities due to their status, that creates quite profitable atmosphere for them, during the corresponding service. First regional agencies are fully specialized in their field. With  the difference from many other organizations, for which small and average business support is either temporary or accompanying with essential business. These agencies can use their priorities for getting experience and advices, attracting highly trained  specialists, having permanent relationship with  administrative organs and  so  forth. That is why, the service of regional agencies is famous for its quality. Their consultations and other forms of small and average business support are high trained in all, and recommendations – useful and practically acceptable. Second, such agencies have right to use all the various forms and methods of small and average business support, that on its side securing the complexity of their service. Third, from the very beginning regional agencies are involved in federal, regional and local systems of small and average business support; That is very important for the successful realization of their registration, investment and other functions. Fourth, regional agencies take objective part in the whole net of intercommunicated and inter useful organizations, that is practically expanded all over Russia.

In the case of successful development of regional agencies’ net, this advantage can be essential for small and average business support, due to their specialization and professionalism,  treatment of regional politics, development of proper federal and regional programmers and also because of having participation ability in creating similar regional bases.

To maintain the special status and role of their organizations, the staff of regional agencies must take into consideration  well, a main point of the politics of small financial industries  support, that must be realized on different levels of state government, clearly elucidate all the varieties of useful forms, methods and institutes, necessary for the development of this politics; They must easily manage to orientate on the proper segments of investment-financing,  momentary-crediting and stock markets.In the formation and  realization of regional politics of small and average business subjects, the first condition for successful  participation of regional  politics is to know as much as possible about real financial demands of concrete enterprises. But the problem is not only in the manifestation of the demands of additional finances, but also in structural-problematical analysis of the  above mentioned and also in the manifestation of these small enterprises,  that require financial support most of all; afterwards, selecting the most long-range enterprises from the standpoint of future profitability.  (after getting financial support).

The role of regional agencies in deciding these  problems will be shown in working out unavoidable systematic-analytical instruments, in leading proper date basis, creating informational guide and findings fulfilled by general as well as individual orders on the basis of their own estimation. Above mentioned  orders can be as   from enterprises themselves, as from authority and government organs and financial-crediting organizations.

Other direction of activity of the above mentioned  agencies, according to the regional politics context of financial support of small industry, must be the research of possible sources of free funds in the region and in solving financial problems of small and average business or working out principal schemes of their usage in investments.

Evaluation of regional politics structure for financial support of small industry. without the arrangement of systematic monitoring of this sphere, its constructive and in-time correction is impossible.

During the time of special and regular researches of industries, regional agencies can evaluate  programmer realization results in small and average businesses – (for different level budgets and enterprises, which require assistance) in the concrete regions. Also, practical results of giving credits and establishment of regional taxation privileges for small industries.

Thus, regional agencies can take part in the realization and formation of regional politics of financial support in small enterprises and play a mediator role and such a performer, who has to carry out a range of  the functions, which were not paid any proper attention by any kind of elements of regional  infrastructure in small and average businesses. With the help of all these, they would like to assist the growth of investment activity of this field.

The Funkcions of Regional Agencies in the Development of Small and Average Businesses.

Functions of above mentioned agencies, for small and average business support, enquire essential  analysis  in line with the development of progressive investment forms; and in the realization part of prioritative tendencies  of its state support.

1. The role of regional agencies in the development of leasing and franchise. In the development of these progressive forms of small and average business investment, participation forms of agencies can be absolutely different. There are united activities together with the organs of federal level, for getting normative acts and working out methodical  materials; forming statements about taxation privileges, establishment of specialized data banks etc; Parallel  activities at regional level, that supplement central authority actions (e.g. initiative of sentence study about getting privileges for local tax payment , also, independent steps for the development of leasing and franchising.

Such steps represent the following: a) making contact to these firms in Georgia, which are potential organizations of leasing and franchise, working out typical documents jointly (contracts, methodic, checking procedures etc). b) organization of juridical, consulting and informational assistance. (Search and selection of partners, consultations, assistance in teaching and control, etc). c) organization of international cooperation (leaseholders and  franchisers ‘ search in Russia and abroad, assistance in market research, selection of potential clients, adaptation of foreign system of leasing and franchise to Russian conditions, assistance in arranging these technical questions, which include partners separation a long way off, corresponding..service..etc).
d) Organization of leasing and franchise propaganda. (Conferences, Seminars, Symposiums, Coarses, Press and Televise etc.)  Participation in establishment of their supporting centers and also in the development of leasing and franchise association in regional departments. e) Participation in establishing those specialized mediatory  firms, which duty includes: selecting of partners, working of different tasks of leasing and franchise assistance and development on the commercial basis; f) organizational   assistance for the participants  of leasing and franchise system by transmitting buildings and constructions with preferential conditions.

2. The role of small and average business support agencies in the development of industry in innovative field. These agencies can play an important role in getting contact among innovative firms and their providing with necessary  information; They can render assistance to such industries, expressed by investment support. from the side of agencies, main directions of small industries support in innovative sphere are the following: information base development in innovative small enterprises, assistance to establish such data base, were advices about the publication are given in the proper scientific fields; notifications about introduction of distinct types of techniques, about perspective development of scientific-technical approaches. b) rendering assistance of preparing investment projects, in estimation of perspectives of offered scientific-technical projects, in creation and introduction of new techniques and risk determination connected to above mentioned factors. c) in assistance of providing small innovative enterprises  with industrial buildings and equipment and for scientific-research realized by them. d) ensuring of small innovative enterprises with consulting and teaching services and keeping intellectual questions: e) assistance in finding partners and making contact with those enterprises, which work in a joining fields.

The  law on   “supporting the development of small enterprises”   adopted on  23  Jule   1999   is  considered to be the next step toward supporting  the  development  of country’s small and medium enterprises. The law helped to create “the center for supporting and developing small business”. The year 2002 was very important for providing Georgia’s business enviornment with legislative basis and adopting new normative acts.Much attention is presently given to the changes in the law on supporting small and medium enterprises.The law defines the status of small and medium enterprises according to workers’ requirement and annual turnover of their funds. In the same year small and medium business support program 2002-2004 was finished and adopted on president’s descreet.From then on the law has been improving,but the desirable result hasn’t been achieved yet.It is noteworthy that in 1991 there were 600 small enterprises registered .In 1994 their number increased to 12000,in 1995 to 17000 and in 2000 it increased by 20%, in the year 2006 the total number of small and medium enterprises amounted to 22000,thought 28% of the enterprises are inactive.[

In Georgia, mastering new skills for industrial development  in small and average business fields, gives chance to make conclusion that, this field of economy gives vast possibilities for effective investment and its future progress. But it is essential to reveal and put into practice energetically, the most  effective ways of using these possibilities. In connection with this , it must be said, that state policy must be more flexible in the tasks of forming own financial sources of investment, which are the most important at present, for the small enterprises. These industries must be given free rein, while establishing amortization norms, which defines the structure of internal financial  sources of investment (in the job of using internal sources of investments, except the state legislative  support, the effective consultative assistance of small business support organs is also unavoidable). Active  state support is very important for the attraction of external financial sources of investment by small and average business enterprises. Small business characteristics, such as flexibility and mobility, implies that small industries must have ability to increase their financial resources  fast, in any proper time. Its realization is only possible at the expense of borrowed funds. On its side, it includes organizational state assistance in getting funds, guaranteeing commercial funds given to small industries and accomplishing other supporting activities . It is natural that, the progression of this support must be accompanying process of state control reinforcement from the view point of using investment sources and overall development of small and average businesses.

Thuse, the analysis of current social- economic  conditions in Georgia and valuable experience gained from foreign countries show that during transitional period small and medium business must play on important role in forming national economy.

   Small business representis one of the main structures of business, that must establish market economy provide the creation of private business as well as new social class- small and medium business managers and help to overcome the crisis in economy.Small and medium business proved its viability. Their exsistence encourages the mobilization of labour and material resourses creation of jobs,quickly reacts on investments and meets market needs and takes part in state and local budget fulfillment process.

   We must hope that if we use the experience gained from foreign enterprises,we will be able to support small business. From this point of view the structure “Business incubations” is the most effective. Business incubations hasten the development of small business and reduce fail in business by 22%. This question deserved our particular attention because the conditions of small and medium business in Georgia are unfavorable. We approve the creation of business incubations for supporting the small enterprises that have been chosen for some reasons, and their support is exercised by providing them with machinery, services, consultanting and

education.They act to establish contacts between other sectors of economy,grow innovative  activities of business that makes diversification of economy possible and on top of all encourages the growth of small and medium business and their viability.

   Business incubations are flexible structures and merge with infrastructural complexes of region very well. The analysis of functioning business incubations based on world experience and especially of those,like Georgia  enables us to prevent negative consequences and over come current difficulties. Business incbations proved to be fruitful in Post Soviet area. In Russia,Azerbaijan,kazakhistan and Lithuania,but from this point of view Georgia has significanthy dropped behind. We have to do our best to introduce this progressive infrastructural elements in our economy.

Our recomrndations:

   Based on these recommendations we set the goals and main directions of small and medium business development in the following way:

1.    To create a stable enviornment for business with the help of business incubations.

2.    To create  new highly  paid jobs in small and medium business.

3.    To introduce specialized multilateral business incubations.

4.    To provide small and medium business with informational,consulting and financial – credit means.

5.    To Supporing the increase of  independent traders’ number in small and medium business.

6.    To meet the consumers’ needs immediately.

7.    Formation of the enterpreuners’ class that should become the stable guarantee for economic security and overcoming poverty.

2. Business Knowledge
2.1 Finance and Economy
2.2 Business Case Development
2.3 Domain Knowledge
2.4 Subject Matter Expert
2.5 Principle of IT
2.6 Organization Structure and Design
2.7 Procurement

3. Techniques
3.1 Requirements Engineering
3.2 Stakeholders analysis and management
3.3 Facilitation Techniques
3.4 Business System Modeling
3.5 Business Process Modeling
3.6 Managing Business change
3.7 Data Modeling
3.8 Investigation Technique
3.9 Project management
3.10 Strategy Analysis  

1. Behaviour Skill and Personal Qualities
1.1 Balanced Behaviour
This is an ability to work out what is and what is not commercially acceptable in an organization. Having commercial and political awareness by the way emphatically does not mean accepting statue qua. It does mean using resourcefulness and being astute to get results, even in the face of opposition. Balanced behaviour means forcing a issue but moderately, firm but not arrogant.

1.2 Leadership
There is a never one solution for all problems .Leader should have the capability to understand the context of the problem and provide an effective solution.
1.3 Problem solving
A business analyst has to approach an issue with the outlook that problem can be solved. A variation on this is that even if the optimal solution cannot be implemented for financial, technical or political reasons, then the business analyst must be pragmatic and be prepared to find other solutions that will yield at least some benefit.

1.4 Attention to Details
Many business cases fail because there is no sufficient detailed evidence for the proposed change. When a project is handed over to IT specialists, they often find many important issues if the detail have not been addressed. Having an eye for the details is also an important attribute of a good business analyst.

1.5Critical Thinking and Analytical Skill
Business analyst have a common sense to ascertain what data are relevant and what are irrelevant and separate vital factors from less important many critical thinking is achieve by experience and differentiate what factor to concentrate and what to leave.

1.6 Flexibility to manage situation
This is an extremely important quality. Business analyst must have sufficient self confidence in himself, in the quality of his analysis and the correctness in his solution, be able to withstand the pressure and sustain his point of view

1.7 Team working with data’s
Business analyst often work in teams, A nature of understanding of the role within the team and what needs to be done and appreciation of the working style of others are, therefore important to ensure that the project objectives are achieved.

1.8 Influencing
Influencing needs careful consideration and prior planning. Business analysts have to develop an understanding of where the other party stands on their proposal, the likely resistance and influencing style needed to approach the person or the group. For example, some managers might defer all the decisions to another group require information at a very detailed level or ask only for high level summary. Some may be interested in technicalities, others just vision or big picture. Tailoring the approach is vital for a successful outcome. The business analysts are often influenced to take or suggest another course of action. This may involve another round of influencing, facilitating a roundtable discussion and seeking the support of senior colleagues in the best course of action.

1.9 Communication
Communication is the most important skill that human possess. It encompasses building rapport, listening, influencing and creating empathy. Most analysis work involves collecting and analyzing data and presenting back information that brings new perspective on the project so as to propose a course of action. If the communication is not good between the staffs, it leads to frustration when there is a failure to do obvious thing. Communication between business colleagues must be in a language and style that they are comfortable with and avoid what they perceive as techno-babble. Business analyst must adjust their communication to align with the people they are talking to.

1.10 Relationship Building
This is an extension of communication skill and concerns the ability to get on well with people at a working if not social level. Some people possess this ability naturally and others have to work on it. Business analyst must get to the people to impart information and share opinions and listen to ideas for change.

2. Business Knowledge
2.1 Finance and Economy
The universal language of business is finance. A business analyst needs to have a good working knowledge of the economy and of the basics of business finance. It includes a general understanding of financial reports such as balance sheet, profit-and -loss account, financial analysis tools such as ratio analysis and principles of costing.

2.2 Business Case Development
Much of analyst’s work will be to assess the costs and benefits of delivering a project to the organization .When communicating analysis findings; you need to ensure that you have a view of the financial impact on the project. IT is an enabling tool for the business benefits to be achieved. Business analysis projects involve other specialist like management accountants to understand and model the business activities and determine how IT can deliver financial benefit. To develop business case, a basic understanding of finance is required along with financial workings business area. Business analysts involved in business case preparation has to understand basic investment appraisal techniques and work closely with finance department.

2.3 Domain Knowledge
It gives general understanding of a business domain. Apart from general domain, specific domain knowledge is required for the following reasons;
? It enables you to talk sensibly with the business people involved in the project, in a language that they can understand.
? It helps you to understand what would and would not acceptable or useful in the business domain.
? It may enable you take ideas.

2.4 Subject Matter Expert
It takes domain knowledge to a lower level of detail. The level of expertise depends on the type of work being done. Business analysts may be specialist in particular domain ,with a strong and detailed understanding of the subject area, can pinpoint areas for improvement , development and identify what needs to change, to analyze using existing knowledge and contact. The key point is to assess how well competencies meet the needs of the current situation and to recognize where competencies needs some improvements.

2.5 Principle of IT
Many business analysts do not have an IT background. However, many business analysis projects result in the use of IT in some or the other way. General understanding of the field is necessary for a business analyst so that he can communicate meaningfully with IT professionals .The key requirement is that business analyst must understand the technical terms used by IT specialist. Since IT solutions are often investigated by business analyst, the latter should have an understanding of IT fundamentals, including areas such as
? How computers work, including operating systems, application software, hardware and networks.
? System –development lifecycle
? System – development approaches
? The Relative pros and cons of developing systems and buying system “off the shelf’;
? Trends and new opportunities that IT brings, such as ecommerce, grid computing and mobile technologies and how these impact systems development.

2.6 Organization Structure and Design
Business analysis projects involve restructuring organization to a greater or a lesser degree, to improve the customer service. It is important for business analysts to have a good understanding of the various organization structures that may be encountered – function, project, and matrix and so on – and of their relative strength and weakness.

2.7 Procurement
Most organization use external suppliers to deliver their IT systems. Selecting an appropriate sourcing strategy involves assessing the work and deciding the most appropriate way to take the project forward on sound commercial term. Once the analyst has worked out the type that is required , they need to assess the most appropriate supplier – internal and external- to take work forward and what commercial terms has to employed. A business analyst needs a broad understanding of contractual arrangements that is shown below:

 Time and Materials: where the contracted party is paid on the basis of the time worked.
 Fixed –price delivery: where the contracted party is paid the price that originally agreed for the delivery of a piece of work according to the precise specification.
 Risk and reward: where the contracted party has agreed to bear some or all of the risk of the project ,for example by investing resources such as staff time , materials or office space, but where potential rewards are greater than under other contractual arrangements.

3. Techniques
3.1 Requirements Engineering
This is the set of practices and processes that lead to the development of the set of the well-informed business and system requirements, from which IT and other solutions are developed.

3.2 Stakeholders analysis and management
This includes understandings who are the stake holders in a business analysis project and working out how their interests are best managed.

3.3 Facilitation Techniques
The interpersonal skills required for effective facilitation is usually exhibited within the context of a workshop. Effective facilitation usually results from a combination of the right qualities in the facilitator and the choice of the right techniques to match the task and the cultural context of the organization in which it is being used.

3.4 Business System Modeling
Business System Modeling is an approach to understand business systems through the creation of the conceptual models of those systems.

3.5 Business Process Modeling
A business system model looks at the entire business system in overview, more detailed process models are used to map and analyze how business process actually works and helps to identify opportunities for process improvement.

3.6 Managing Business change
This covers the techniques needed to implement changes within the organization and to make them ‘stick’.

3.7 Data Modeling
Analyzing the data held and used within a business system affords valuable insights into how a business operates .For e.g. what are the data items that are held about the customers? What is the relationship between customers, products and suppliers?

3.8 Investigation Technique
To get to the root of a business issue the analyst will have to undertake detailed analysis of the area.

3.9 Project management
The list of project management context and process: scope management, integration management, time management, cost management, quality management, resource management, human management, risk management and procurement management. Business analyst may not necessarily exhibit his skills in all these areas, but if the project team is small the business analyst may be required to undertake the role of project manager.There is some project skill that an analyst should have.
For e.g. understanding project initiation is vital as it allows the analyst to understand define the terms of reference for the project .It is important that the analyst should understand project management planning approaches –he or she will have to work within a plan – and is aware of particularly relevant aspects , such as quality and risk management

3.10 Strategy Analysis
This covers a range of techniques that can be used to understand the business direction and the strengths and weakness of an organization, or part of an organization.

How can I develop my competency?
The first step in developing as a business analyst is to understand the competency required of a business analyst in your organization. This should include an assessment both the current and the future competencies required .The HR department provides an outline definition of the competencies required of the business analyst in the organization. Future competencies are more difficult to assess and depends on the factors such as projects that may develop in future, business issues and technological developments. The organizations may already have a framework in its place or could use the existing framework such as Skill framework for Information Age (SFIA).

There are three ways in which business analysts can develop competencies:
? Training
? Self-study
? Work experience

Training
Class room-based training allows skills to be learned and practiced in a relatively safe environment, with a trainer on hand to support, guidance and encouragement. Computer –based training is also good if the skills to be practiced are primarily technical in nature.

Self-study
Self-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.
Self-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.

Work experience
This provides an opportunity to use and improve techniques and to deepen the knowledge .It is best way a business analyst can develop their behaviour skills and personal qualities The performance of most analysts improves overtime as their experience grows ,but this can be heightened and accelerated if our if the organization operates a proper coaching or mentoring programme.

The Skills Framework for the Information Age
SFIA and SFIAplus are the two major standard frameworks for definition of skills and competencies in the information system field. Both frame works include definition for the skill set of business analysis, define various levels of competency for each skill, and can be used as building blocks for any job role that requires these skills

SFIA
The description of overall skill set provided in SFIA framework for business analysis is as follows:

The methodical investigation, analysis, review and documentation of all or part of a business in terms of business functions and processes, and the information they use. The definition of requirements for improving any aspect of the processes and systems. The creation of viable specifications in the preparation for construction of information and communication systems.

In each level defined for business analysis, SFIA provides a more detailed definition of the skills required, for e.g. for level 4 is states:

 The analysis, design, creation, testing and documentation of new and amended programs from supplied specifications in accordance with agreed standards.
 Creates requirements specification and business case for development of ICT solutions by investigating business process and business needs.

SFIA plus provides the sane description for business analysis skill set as SFIA, but also
provides details of the following:

Related skill set (in this case, data analysis business process improvement and system design)

Technical Overview, including typical tools and techniques ;
 Overview of training, development and qualification ;
 Careers and jobs ;
 Professional bodies;
 Standard and codes of practice;
 Communities and events ;
 Publication and resource.

For each applicable level within this skill set (3-6 in the case of business analysis), detail are also provided under the following heading:

 Background;
 Work activities ;
 Knowledge /skills
 Training activities
 Professional development activities
 Qualifications.

Although SFIAplus provides more detail than SFIA, it is important to realize that the two frameworks should be implemented in different ways.
SFIAplus should be treated as a standard and is not designed to be customized, where as SFIA is intended to be used as a basis for tailoring to an organization.
SFIAplus enables organizations to classify and benchmark their IT skills and to train and develop their teams to meet the defined skill requirements .As a business analyst, this provides a basis for you to gauge where you are against the skills and corresponding level of competence defined in the framework.
The final step is to identify a set if actions that will help your development.

 Seek out assignments that give you opportunities to develop.
 Identify a role model who demonstrates your desired competencies.
 Ask them what is required or ask them to mentor your development or arrange to work for them direct.
 Use training providers to target specifically those areas that need development.
 Consider a secondment to an organization that excels in the required competencies.
 Do your research into specific competencies
 Ask for a regular feedback from your boss or experts.
 Join an industry specialist group.
 Develop as you go and gain from experience. Record what you’ve learned so that you don’t forget.

To know more about Business Analysis and career in it,Please visit the site http://www.iqtiedu.com

What is a business credit card?
Basically, business credit card is for the business people’s consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.

Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.

Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.

Simplifying business credit cards
It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards.  When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.

Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.

Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.
Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market- the business owners or business executives-it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly.

What is a business credit card?
Basically, business credit card is for the business people’s consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.

Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.

Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.

Simplifying business credit cards
It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards.  When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.

Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.

Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.