Know it all: Critical issues for small business survival

Growing a business is a very exciting and challenging undertaking. However, many businesses fail because they are ill-prepared or overlook critical issues. Use this as a starting point for gathering more information and assistance in areas where you aren't as prepared.

Human Resource issues:

Are you hiring the best people for the job? Plan for the right employees by matching your needs to the skills of a potential employee.

Working with new employees- explain clearly what is expected, consider assigning a mentor to the new employee, provide ongoing training, and have clear methods of evaluating the new employee.

Do you have sufficient human resource policies for a small business? Many small business owners don't take the time to write down personnel policies or develop an employee handbook. You can treat people more fairly and enforce policies more readily if they are written down. Frankly, it is essential given the proliferation of lawsuits. Don't overlook this critical issue.

Here is a checklist of the minimum human resource policies a small business should have.

• Statement of company's goals and philosophies

• Working hours, vacation and holiday policies

• Procedures for pay and evaluation of performance

• Procedures and policies for absences, personal days and unpaid leave

• Safety and accident rules

• Statement of non-discrimination

• Sexual harassment policies and procedures

• Use of company property, including computers

For help on developing these policies, visit the U.S. Small Business Administration website www.sba.gov or check with your local library.

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Finance and Taxes:

Not having enough money can put you out of business in a hurry. Cash flow, payroll, taxes, and vendor bills all add up and require sound financial practices and procedures to ensure success for your company. Many small business owners rely on their personal accounting system to work for their business. Typically, your business will require more complex and sophisticated accounting procedures. Good, consistent and accurate record keeping is paramount to owning a business. You may need to purchase accounting software and/or hire an accountant. If cash flow is an issue, you may want to apply for a loan, or set up a line of credit. Several good web sites will take you through the steps you need to follow. For a search engine to many small business concerns, check out www.smallbizsearch.com, or consult www.quicken.com, www.irs.gov, www.score.org.

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Insurance:

Is your business adequately protected against loss? Are you protected? Small businesses tend to overlook the need for insurance and most businesses are underinsured. For your business, you will need to consider these types of insurance: personal property, general liability, worker's compensation, professional liability and possibly business interruption insurance. For you and/or your employees you will need health, disability and life. Be sure and choose an agent that is knowledgeable and one you can trust. Insurance is definitely important in protecting your business, but don't forget security alarms, fire alarms and secure locks, which will assist with protection and reduce insurance premiums.

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Marketing:

It doesn't matter if you make the best widget in the world, if no one knows you have it, your business will not thrive. Marketing is a business critical issue that requires knowledge and expertise but is often taken for granted. You may understand that you need to work with an accountant to help with taxes, an attorney to assist with contracts, and a banker to help with finances but did you consider hiring marketing support? Do you know how to convince others to purchase your goods or services? Are you familiar with the current media strategies? There are advantages and disadvantages to trying to handle marketing on your own, Whether you do it yourself or hire someone, you need to plan and strategize what your marketing effort is going to be. You should be able to answer these questions:

• What is the definition of your market?

• To whom are you targeting to sell your products and services

• What is your market position?

• Who is your competition?

• What are the benefits to the consumer of your product or service?

• What are your sales strategies?

• With what kinds of promotion activities are you comfortable?