What Is Contractor Management?

All businesses that deal with contractors all the time needs to have contractor management system in place if it is expected to run smoothly.  This especially true in Australia where strict compliance to government regulation is expected of its business, working and trading community.

Contractor management is managing of outsourced work done by contractors for a specific company by making sure that their work documents and insurances are updated and/or current.  This includes the contractor’s ABN, Insurance Certificate of Currencies, Workers Comp Certificate of Currencies, permits, licences, accreditation and the like.

Contractor management is done in-house by the human resource and personnel department or outsourced entirely.  However there are services available that allows a company to outsource the management but data is available and accessible online anytime by the HR and personnel department of the company.  This service is invaluable for companies whose entire workforce is on a contract basis and is mostly out on the field or if you are dealing with tenants spread across the state or the whole continent.

This is most especially true for people in the construction and transportation business.  If you are in construction, chances are your workers do not report to the main office everyday but is instead out on the production site for months on end.  If the insurance or the license of anyone in the crew is overlooked and an accident happens, insurance claims may be forfeit and the bills would have to be shouldered by the company whether it is property damage or injury.  So it is crucial for these types of businesses to have a well-managed tracking system.

Keeping track of all the compliance documents is a simple task but it is time consuming and detail oriented.  It is also highly subject to human error because every human resource and personnel department has other concerns aside from contractor management.  And most often, this department is understaffed.  Outsourcing compliance managements allows the department to work more efficiently because the data is easily accessed and updated. Keeping track of renewal dates and notifications are taken cared of already.

Outsourcing contractor management is the most practical way to go because a deadline or detail that is overlooked may cost your companies hard earned dollars that could have been left to the insurance companies. To know more about outsourced contractor management and certificate tracking, go to this site.

Online Marketing Strategies – Web Maintenance

 

Businesses are now enjoying a newer and better marketing platform – the internet and its modern netizens.  It seems much easier and less expensive but it is much more complicated. It is an entirely different world from the other conventional marketing strategies.  Established companies that are used to the old ways may find the transition overwhelming because old school businesses will need to re-learn their marketing plan and get back to the drawing board.

Marketing and promotions is an integral aspect of doing business.  Companies allocate as much as 10 to 16 percent of their annual budget on it. Recent statistics reveal that the population of online shoppers has significantly increased, thanks to the growing number of 3G devices, much of the marketing budget goes to the development, optimization of websites, and website maintenance.  It is to have a great looking website and to leave it at that.  Indeed, all the work dedicated to build the website would go to waste if web maintenance is not given as much priority.  It is very much like developing a great product but then not telling anyone about it, or not properly explaining what it is, or how to get one. 

Web maintenance is all about ensuring that the website gets the exposure it needs constantly - the kind of exposure that matters which includes having it dominate the search engine result page, updating content  and making it more relevant with the times, continually building quality inbound links and regularly assessing keyword effectiveness and marketing strategies.  Web maintenance makes websites constantly effective in its purpose because websites should be able adapt quickly to the constantly changing search engine algorithms, market trends, social media fads and web related technology.

This newest marketing platform, along with the technology that drives it is dynamic and it is not easy keeping track of what is happening.  A day as a top ranking site does not mean you’ve done your job, because the next day you may not find the site on forts page.  And that’s the kind of change that can really hurt sales. This is why web maintenance is an important on-going activity for any company whose sales are dependent on their website.   

Web maintenance is a time consuming endeavor that is better outsourced so business owners can focus on what they do best – running and managing the business. 

Small Business Finance – Helping Small Businesses in a Big Way

Small businesses often need a business finance facility time and again and usually, the collateral comes from the owner’s personal assets.  This is why small business owners pay closer and more personal attention to their businesses. But what happens when personal assets are not enough?

One of the difficulties that small businesses face is keeping cash flow positive and access to small business finance facilities.  Oftentimes, there’s too much paperwork, the need for more valuable collateral and a higher loanable amount.  What’s more, conventional financing institutions such as banks find that small businesses have very low survival rates and they consider them high risk clients. 

It is a good thing that small businesses have other credit facilities they can turn to. The application process is much easier with minimal documentation and a stress-free repayment system. There are two types of small business finance options - business cash advances and unsecured small business loans (without collateral).

                These alternative funding facilities do not require business plans or extensive financial statements and near perfect credit scores. All they do is evaluate their applicants based on capacity to pay and the current market conditions.  Capacity to pay is based on daily sales volume, so previous sales records are necessary.  Payment is taken from a percentage of the daily debit/credit card sales – usually 10%. It is up to you to determine how much you need and how much of your profits you are willing to part with.

These small business finance facility has no fixed interest rate but it does incur cost of money, so you do need to assess how much financing you need and how much it will cost your business in the long run.  Daily payments or loan term is usually made between 3 months to 18 months depending on the loan amount or the value of the daily payments.

                Do not underestimate or overestimate the funds you need.  Falling short of your financial needs won’t be of much help and overestimating could add unnecessary burden to your business and put a strain on your cash flow.  Keep in mind that the higher the amount borrowed equals higher cost of money.

                Small businesses have a tendency to renew their loan account after a complete loan cycle.  This is why it is important to review the business’ performance before the loan cycle ends.

                Small business finance facilities are meant to help small businesses face the challenges of daily operations, the hurdles of innovation, research and much needed marketing to boost sales and market presence.  The financial boost goes a long way and it also helps small business in a big way.  Growth for small businesses also means the growth of the institutions that finance them.  

The Difference Between Selling On Your Own and Hiring A Business Broker

Business owners sell their businesses for very different reasons and these reasons also dictate price, how soon the business sale should be concluded and at what point in the process should a business broker be brought in. 

Everyone involved in business sales, especially in the very competitive Sydney market would suggest that you should sign up with a business broker on the get go.  It will save you time and free you from a lot of paperwork and stress.  Business brokers also have access to market database and buyer profiles, without which you may spend a lot of your valuable time searching and screening buyers to no avail.  Business matching is one of their capabilities which is why there are business brokerage firms who can guarantee a sale in a short amount of time.

Selling a business in Sydney is not quite like selling wares or a service.  How a buyer values the business is not based on how a seller brands or packages the business.  What buyers are looking for is simple – will acquiring your business adds to their profitable portfolio or is your business viable and worthy of their hard earned investment capital?  Without a business broker to give you excellent advice regarding the mindset of a Sydney buyer, you may find yourself ill prepared for the negotiations (and most likely to make business sales mistakes) and have a hard time selling at the price you want and eventually settling for a ridiculously low price because you are running out of time.

A business broker’s job is not only to find the right buyer for you but to make sure you and your business are prepared for the Sydney market.  They have very valuable knowledge and experience in businesses successfully.  Without them, you will have to do the necessary research and the extensive marketing on your own which may very well be counterproductive.  Hiring a business broker allows you to concentrate on running your business and prepare it for the eventual sale and a smooth transition of ownership. 

A successful business sale is all about knowing your worth and having the right resource to sell at your price terms, and in the very competitive Sydney market, knowledge and insight can get you the outcome you hope for.  The right business broker could mean the difference between profitable transaction and a mediocre business deal you may regret. 

Business Sales - Selling your business

The whole process of business sales may seem like a difficult endeavor for a small business owner but with the right connections and the right people to help you, it becomes a worthwhile business adventure.   It is also a good idea to have some sort of a map or a list of what to expect so you can prepare for whatever comes around each corner.  

·         Business Valuation – knowing the value of your business.  You need your accountant and a business/financial adviser.  The value or your net worth is not just about numbers.  Financial statements tell more than that. Financial advisers and accountants are the people you can count on to help you understand what the values attached to the liabilities, assets, cash in bank (…etc.) imply.  And more importantly what it means to a prospective buyer.  This can be your starting point to determine your selling price. 

·         Hiring a business broker.  Business sales do not necessarily require a business broker.  It is ultimately your choice but hiring one puts you at a great advantage.     This is most especially the case if you sign up with one who is experienced and is backed by a company that  give certain business sales guarantees. Although you have to be wary of business brokers who wants lengthy exclusive contracts in exchange for the guarantees.  Make sure you have come to an agreement on all fees, charges and commissions before moving forward.  And do not be lured by lower rates as it does not guarantee better outcome.

·         Preparing for the sale.  Prepping up your business may take time especially for small businesses.  It is very much like selling a house.  You will need to put everything in order and improve on the strengths and downplay on the weaknesses.  In this phase of the process, your business broker can be a valuable source of information and advice. Their business sales experience is an asset that you can tap to reach your goals.  Depending on the current state of your business, preparations may take about a year or so. 

·          Marketing and Presentation.  This is the part where you wait and hope that your labors are not in vain.  It is also the phase when all work goes to the business broker.  It involves the marketing phase of the business sales - online posting, adding onto existing seller database, cold calling, and a variety of advertising mediums.  Interested buyers are then asked to sign a confidentiality agreement and your business is the presented to the pre-screened buyers.

·         Offer and Negotiations - This is the moment you are waiting for.  If you have found an offer that you are happy with, final negotiations are made. The business sales process is then concluded with the proper documents and finally the transfer of money to the seller and ownership to the buyer.  The transaction is completed with the help of your lawyer, accountant and the business broker.

Business Cash Advance – The Business Loan without the Stress

Growth is an inevitability that small businesses deal with from time to time.  It is a sign of progress but growth demands both time and money on the part of the management team.  For small businesses, this means the owner.  The time factor which includes careful planning and budgeting is the responsibility of the owner while the funding can sourced from a Business Cash Advance facility.  

According to the latest statistics, over 90% of businesses in Australia are small scale and over 60% is non-employing and 30% employs a small staff of at least one to twenty.  Business owners, often take care of administrative and managerial positions including book keeping and accounting.  Bank loans application and processes can be very time consuming and taxing for a single person to handle.  This is why Business Cash Advance is perfect for a small business that operates on a skeleton crew.

Business Cash Advance is a type of unsecured business loan as it does not require any collateral, minimal documentation and it only takes days to process.  All that is needed is proof of operations, and a minimum sales volume.  It is less like a loan but more of an investment on the business’ future growth.

One of the best features of a business cash advance is the re-payment scheme.  Since it is an advance based on the business’s future sales, you also make your payments based on the daily sales.  You do not need to guarantee a fixed month payment. It is unlike a bank loan that requires fixed monthly payments with corresponding due dates that incur penalties and surcharges if not met.  With the business cash advance, the payments will depend on your daily sales.  If your sales projection is accurate and there is indeed a significant growth in cash flow, then you’ll be able to pay back the funds sooner.

Another business cash advance feature that is stress relieving is that you do not need to put up collateral. And for small business owners, the usual collateral is a personal property such as a piece of land or their home.  Business cash advance does not tie any of your personal assets with the business’ debt.

The business cash advance facility lets you focus on how to reach your business goals without worrying how to get there.  It helps business owners do what they do best and let the business grow unhindered.

Business Funding Alternatives for Small Businesses

Small businesses are thriving despite the difficulties and challenges of the times.  This is because more and more financial institutions recognize the needs of small business owners and the sector’s importance in Australian economy.  Business funding requirements for small businesses are different from big corporations, not to mention there is a difference in business structure as well.  This is why traditional bank loans do not usually work for small businesses.

But because small businesses make up 95 per cent of existing and actively trading businesses in Australia, they have business funding needs that must be met.   And unlike big corporations, small businesses are much more dynamic and they engage in innovation activities more often than big companies.  Small businesses need business funding in smaller amounts but shorter term periods.

The survival rate of small businesses is lower but access to business funding has direct correlation to it.  The fact that most small business does not meet most bank requirements for business loans stifles their potential for growth and inhibits their innovation activities.  The need for better business funding facilities has been met recently more particularly through the business cash advance funding also known as merchant cash advance.

Merchant cash advance is a business funding facility that is easily accessible because the requirements do not include collateral, financial statements or business plans.  At a 95% per cent approval rate, small businesses have better chances to break barriers that hinder their growth and to meet their business’s full potential.

                This newest funding facility is the easiest to access and repayments are also easy on the pocket.  Payment is in the form of a pledged percentage of daily credit/debit card sales.  There is no pressure to come up with a fixed payment amount and there are no due dates to worry about.  Payment term may be from 3 months to 18 months.

                The merchant cash advance facility is the easiest to access and the easiest to repay, but it is not the only business funding resource that is available.  There are government grants, peer to peer funding and angel investment networks that may be tapped.  However, these funding resources are not easy to access as it needs quite a lot of planning and preparation to impress investors and there is a huge amount of competition for a small pool of funds.

                So, if you are thinking of putting up a new branch, or developing a new product or purchasing inventory or new equipment, do call a business cash advance provider and make inquiries.