Bizzalley's Business Q&A

Q)How long should I stick to a business plan if my business provides less income
than I expected?
Bizzalley's Answer-In the first two years of business, profits might be low. After the third year, if you are still not making profits then there might be a problem. Before you decide to give up on your business, check out new profit-making options like paid advertisement and marketing, partner with other companies and share your clients with them. This prevents having clients you can't manage. You can also add a new product to your business that would bring in more profits. Giving out free or discounted offers can be attractive. It is important to be flexible as a business owner so add up on your knowledge and make research. You should also put into consideration your location and target customer. Don't be so quick to give up on your business.

Q)What if I fail?
Bizzalley's Answer-Failure is expected when starting a business. So don’t just throw in the towel when it does. When your business fails, this is a period of reflection. It is necessary to step back and take
note of mistakes made, losses acquired, locations, and customers. At this point, you check your business plan and re-strategize. You can't keep doing the same things the same way and expect different results. Failure affords you opportunities to learn from your mistakes. You, however, have to come to the decision of either starting a new business or improving on the old one.


Q)What can I do to make my business different?

 Bizzalley's Answer-It is important as a business owner to have an identity and a brand that makes your business stand out. The most important factor is customer service. People would not stick around a company that offers bad treatment and service. Understand that your customers are important to the success of your business and treat them as such. Be reliable and honest. Don't fix due dates you can't meet up with. Your customers should be able to trust you to deliver. When you make mistakes, don't be afraid to admit them and avoid lies. It is important to stay up to date so research on technological advancements and improve. Make good use of social media and stay connected. You can start a blog that provides educational and entertaining contents. Have your own peculiar brand and be faithful to it.




Q)How will I know if I have enough employees that can identify and capture growth
opportunities?

Bizzalley's Answer-Keeping the right number of employees is important in your business. State your values and goals and employ people who share those values. If you have employees that are only
interested in getting paid, it can affect your business and hinder growth. Be sure they have the same passion and commitment. Give them time to come up with new ideas and strategies and provide rewards for such. If you discover that you don't have employees that can carry out their duties faithfully, then it is time to hire new ones.


Q)Should I require my prospective venture capital investors to sign a Non-disclosure
agreement so they don’t steal my idea?

Bizzalley's Answer-A non-disclosure agreement is a legal document that binds future investors to some form of secrecy. It is important to have one as it prevents idea theft. This provides you with full ownership of your idea and you can take actions if it gets stolen. In this contract, there are penalties attached if there is a breach of an agreement. NDAs provides some protection from competitors. Without a non-disclosure agreement, you can't take legal actions or claim ownership to your idea or business plans in cases of theft.

Q)Does globalization affect me as a business owner?
Bizzalley's Answer-Globalization affects not only businesses but also the society, market and economy. It
connects people, businesses across countries. As a business owner, it is important to draw up a plan to meet the effects that globalization may have. One of the factors is the emergence of more competitors. A business owner must develop tools and strategies to improve products and market price so it doesn't fall behind. The rise of technology also makes it necessary for business owners to have good and efficient technologies in place.

Q)How can I get the attention of a venture capitalist?
Bizzalley's Answer-Once you have weighed your options and come to the decision that a venture capitalist is best for your business, the next step is digging out prospective investors. Getting the attention of one requires you have an introduction that captures their interest. Make your email compelling and interesting. Talk about your plans and the results you aim to achieve. Set a time frame, carry out researches on those you intend to contact and be sure they are in line with what you have to offer. Just remember, a nice introduction is the most important thing.

Q)How big should a stock option pool for employees be?
Bizzalley's Answer-A stock option pool for employees helps to attract, motivate and retain a great team. The size, however, varies from 10% to 20%. The amount is determined by management and shareholders. It aims to attract team members and to increase the shares held by key members of the team whose performance has been strong and whose efforts will be critical to achieving the business goals. In making stock options available to your employee, you need to be certain that they share your vision and goals for your business. Stocks serves to encourage and motivate them. It can be offered at the same rate as that when the business was founded or determined by the board of directors. However, there is the issue of taxes and fees to deal with.

Q)Should I form an LLC or a partnership for my business instead of forming a
corporation?
Bizzalley's Answer-Having a business structure is important as it affects how you pay taxes and your assets. Limited liability corporations are perfect for small business. This is because profits go directly to owners and there is limited risks. They also offer some level of protection to personal assets. LLCs can decide how they wish to be taxed. Partnerships can be between two or more people. It is very easy to set up and each partner is responsible for risks and debts incurred based on an agreement. However, dissolution can occur due to disagreement or the death of a partner. LLCs are more flexible than corporations when it comes to sharing of profits, management and responsibilities. Owners of a corporation receive profits based on the amount of stock they own leading to disparities. For small business owners, LLCs are the best for you.

Q)Is it better to incorporate my business in my state or a different state?
Bizzalley's Answer-Deciding where to incorporate your business are important steps in the success of your business. You have to put into consideration your budget and plan. If it is a small business then it is best to set up your business in your own state. The cost of incorporating in your local state is less than that of a foreign company. As a foreign company, you are required to pay taxes and annual report fees from both the state of incorporation and the qualifying state. You should set up your LLC or firm in the state where you are doing business. If your business requires you having clients or business meetings in other states, You would have to
register your business and qualify to do business in that state.