Business Consultants

Archive for October, 2009

Promotional T-shirts have been a part of business promotion and marketing of brands for a long time. Promotional T Shirts can be given to clients, to prospective customers, and also to your employees to give them the added feeling of belonging to a brand. You do not need be a world famous brand to benefit from promotional T-shirts. Even new busineses have used T Shirts to create awareness of their product, brand or business.
giving Promotional T Shirts to your employees is a great way for brand endorsement. You can design T Shirts with your company brand and marketing message for your employees and if you are hosting a conference, exibition or promotional event, make it mandatory for your employees to wear promotional T Shirts. It is a very inexpensive method to make your staff stand out from the crowd and you present an orderly unity among your employees, the same way in which a uniform serves.
Some businessesthink that it is too expensive to buy a t-shirt online but they are often incorrect. Purchasing t shirts online is a fast and easy process and the choice of online shops is very much better than you expect it to be with some allowing you to undertake the entire design process and payment online.
Corporate branding on T-Shirts can significantly improve the brand awareness of a business in a very short period of time and aside from the obvious marketing advantages branded T-Shirts and other clothing can enhance the perception of customers to your business. Considering the relatively low cost of purchase and printing T shirts against the length of time a good quality T Shirt can last makes branded T shirts one of the most cost effective methods of marketing for many businesses.

It is widely believed that DTG tshirt printing is more environmentally than screen printing. DTG uses water-based inks to print directly onto clothing, this means that there are no excess inks used in the actual printing and the only waste that occurs is from the occasional print head cleaning – it’s worth noting that head cleaning does not involve any external materials only ink. Then as long as waste ink is disposed of correctly, printing tshirts using the DTG method should have virtually no environmenal impact. Screen printing however has excess inks from parts of the stencil not printed to the tshirt and when screens are cleaned these excess inks are usually washed down the drain.

Major Challenges To Securing A Business Acquisition Loan

Qualifying for a small business acquisition loan can be quite an ordeal to say the least.

If the business being sold is very profitable, the selling price will likely reflect a significant amount of goodwill which can be very difficult to finance.

If the business being sold is not making money, lenders can be difficult to find even if the underlying assets being acquired are worth substantially more than the purchase price.

Business acquisition loans, or change of control financing situations, can be extremely varied from case to case.

That being said, here are the major challenges you’ll typically have to overcome to secure a small business acquisition loan.

>>> Financing Goodwill

The definition of goodwill is the sale price minus the resale or liquidation value of business assets after any debts owing on the assets are paid off. It represents the future profit the business is expected to generate beyond the current value of the assets.

Most lenders have no interest in financing goodwill.

This effectively increases the amount of the down payment required to complete the sale and/or the acquisition of some financing from the vendor in the form of a vendor loan.

Vendor support and Vendor loans are a very common elements in the sale of a small business.

If they are not initially present in the conditions of sale, you may want to ask the vendor if they would consider providing support and financing.

There are some excellent reasons why asking the question could be well worth your time.

In order to receive the maximum possible sale price, which likely involves some amount of goodwill, the vendor will agree to finance part of the sale by allowing the buyer to pay a portion of the sale price over a defined period of time within a structured payment schedule.

The vendor may also offer transition assistance for a period of time to make sure the transition period is seamless.

The combination of support and financing by the vendor creates a positive vested interest whereby it is in the vendor’s best interest to help the buyer successfully transition all aspects of ownership and operations.

Failure to do so could result in the vendor not getting all the proceeds of sale in the future in the event the business were to suffer or fail under new ownership.

This is usually a very appealing aspect to potential lenders as the risk of loss due to transition is greatly reduced.

This speaks directly to the next financing challenge.

>>> Business Transition Risk

Will the new owner be able to run the business as well as the previous owner? Will the customers still do business with the new owner? Did the previous owner possess a specific skill set that will be difficult to replicate or replace? Will the key employees remain with the company after the sale?

A lender must be confident that the business can successfully continue at no worse than the current level of performance. There usually needs to be a buffer built into the financial projections for changeover lags that can occur.

At the same time, many buyers will purchase a business because they believe there is substantial growth available which they think they can take advantage of.

The key is convincing the lender of the growth potential and your ability to achieve superior results.

>>> Asset Sale Versus Share Sale

For tax purposes, many sellers want to sell the shares of their business.

However, by doing so, any outstanding and potential future liability related to the going concern business will fall at the feet of the buyer unless othewise indicated in the purchase and sale agreement.

Because potential business liability is a difficult thing to evaluate, there can be a higher perceived risk when considering a small business acquisition loan application related to a share purchase.

>>> Market Risk

Is the business in a growing, mature, or declining market segment? How does the business fit into the competitive dynamics of the market and will a change in control strengthen or weaken its competitive position?

A lender needs to be confident that the business can be successful for at least the period the business acquisition loan will be outstanding.

This is important for two reasons. First, a sustained cash flow will obviously allow a smoother process of repayment. Second, a strong going concern business has a higher probability of resale.

If an unforeseen event causes the owner to no longer be able to carry on the business, the lender will have confidence that the business can still generate enough profit from resale to retire the outstanding debt.

Localized markets are much easier for a lender or investor to assess than a business selling to a broader geographic reach. Area based lenders may also have some working knowledge of the particular business and how prominent it is in the local market.

>>> Personal Net Worth

Most business acquisition loans require the buyer to be able to invest at least a third of the total purchase price in cash with a remaining tangible net worth at least equal to the remaining value of the loan.

Statistics show that over leveraged companies are more prone to suffer financial duress and default on their business acquisition loan commitments.

The larger the amount of the business acquisition loan required, the more likely the probability of default.

In business, the customer is always right – sometimes confused, misinformed, rude, stubborn and changeable, but never wrong. Ever date anyone like that?

Customers are the reason you have a business. Without them, no matter what you do, there isn’t any business.

Therefore, you should approach customer service the same way you approach a date. Nurture it with good habits and relentless care. Each date builds on the previous one. Each sale does the same in building customer retention.

So, here are the simple suggestions for “dating” your customer and enhancing your business relationships.

* Dazzle customers with your service. The key to good customer service is treating all your customers well but not necessarily the same. Respond to their needs as individuals. While one customer might need a ton of help and attention, another might prefer an opportunity to browse with privacy.

* Anticipate the needs of your customers by emphasizing service over sales. Good service sells. But pushy service people who are always trying to sell more can be a major turnoff to all customers.

* Treat your customers well by being a problem solver. If you can’t help the customer, help him or her find someone who can. Customers appreciate your help – even when you aren’t directly profiting from a sale. Just consider it an investment. They’ll appreciate the advice and remember your business the next time they need your goods or services.

* Innovate by understanding that most rules should be flexible. Don’t ever say, “No, that’s against the rules,” to a customer who’s making a reasonable request. Your main rule – one that should never be compromised – is to keep your customers happy and satisfied.

* Nurture your employees by giving them the care and respect that you want them to give your customers. If you treat them well, your employees will be great ambassadors of service. If you treat them poorly, they’ll treat your customers badly in turn.

* Guarantee that your customers keep coming back. Have a great customer service plan and post it in a central location for all to see. Once employees understand the importance of great customer service, you will have customers returning over and over.