Last updated 5 years ago
Family-owned businesses are the spine of the American economy, accounting for more than 50% of the U.S. gross domestic product. One of the central aspects of any family-owned business is knowing how to make a successful transition from one generation of ownership to the next. From assessing customer wants to keeping credit card processing fees low, there are a number of tactics that businesses need to follow in order to keep ahead of their competitors—and the smoother the transition is, the easier it will be to pass on time-tested strategies.
Here are some tips for successfully passing the torch of your family business:
Foster a constructive atmosphere. Trust and communication are what bind a family business together; without them, the simplest misunderstanding and oversights can lead to resentment and missed opportunities. A successful family business is one in which its members can communicate with each other honestly, directly, and respectfully. Consider having a weekly meeting for family members in which any issue can be discussed.
Emphasize financial security. Every family member should be assured that he or she can retire comfortably after his or her turn at the wheel is up. Don’t keep all your assets in the business, which can discourage you from going after the kind of risks that all successful businesses need to take from time to time.
Look for outside help. Long-running businesses need to stay current by paying attention to changing trends and business patterns. No business is an island, and even the most successful entrepreneur has something to learn from outsiders. Study successful businesses that are similar to yours and learn from them. Network with other business owners and swap strategies. Attend business seminars and talk to experienced consultants.
If you’re looking for ways to keep unnecessary expenses to a minimum, contact Merchant Advocate. We are a New Jersey-based consulting company that works to find the best credit card processing rates available for businesses. To learn more about how we can help you maximize your profits, call us today at (732) 727-2073.
Last updated 5 years ago
Small businesses face a flurry of financial problems of varying degrees, from excessive credit card processing fees to unanticipated expenses. But the ongoing economic crisis has exacerbated these problems and added new ones. Unsurprisingly, small business owners have been as eager as any other Americans to see an end to the crisis. How close is the economy to returning to normal?
At first glance, the prospects for recovery look grim. Since the official end of the recession, consumer spending has grown by only 6.5%. The unemployment rate has not dropped below 8% for more than three years, and more than five million Americans have been out of work for longer than six months. More than 640,000 government jobs at the federal, state, and local level have been cut. Only 46 percent of all jobs lost in the recession have been replaced by new ones.
However, there may be cause for optimism. Recent polls found that an increasing number of Americans think that the economy will improve within the year. Since consumer confidence is one of the major engines that drive the economy, that belief could become a self-fulfilling prophecy. Excessive frugality—caused by uncertainty about the future—works to keep an economy stagnant.
Statistics suggest that Americans are feeling more confident about buying. In July, national retail sales rose by 0.8 percent—higher than experts had anticipated, and the highest boost in consumer buying patterns since the start of the year. The beginning of 2012 also saw a notable increase in the number of new jobs around the country. According to the U.S. Department of Labor, more than 500,000 new jobs were created in January and February, lowering the unemployment rate to 8.3 percent. These small but significant improvements bode well for the coming year.
Cutting needless expenses is essential to keeping ahead of your competition in a troubled financial climate. Merchant Advocate is a New Jersey-based company that specializes in finding ways for companies to save on their credit card processing expenses. Visit us online for more information, or call (732) 727-2073 if you have any questions about our credit card services.
Last updated 5 years ago
In April 2012, President Barack Obama signed the Jumpstart Our Business Startups (JOBS) Act into law, making it easier than ever before for small businesses to raise much-needed funding as they seek to reduce expenses. The Act, which is actually made up of several smaller pieces of legislation, will affect small business owners in several ways:
The bill paves the way for small businesses to go public and sell their stock. Under one of the Act’s provisions, an “emerging growth company” is now defined as one that made a total of less than $1 billion over the last fiscal year.
The provision also relieves small businesses of the expensive process of having to register with the Securities and Exchange Commission until they have at least 2,000 investors. Instead of the previous limit of $5 million, businesses may now raise up to $50 million in a year before they are obliged to register with the SEC.
The Act also removes the SEC’s previous ban on using advertising to attract potential investors from the general public. In the past, this made it very difficult for up-and-coming businesses to find investors.
Businesses may now raise up to $1 million using crowd funding, which permits businesses to sell shares to anyone who can afford to buy them, instead of only to accredited investors. This will make it immensely easier for small businesses to raise money quickly.
Finally, the Act eases regulatory requirements on community banks, making it easier for them to thrive and lend to small businesses. Under the new law, banks and bank holding companies do not have to register with the SEC until they have at least 2,000 investors, or assets of $10 billion or more.
Are credit card fees cutting into your bottom line? At Merchant Advocate, we will analyze your company’s finances and find ways to save you money on your credit card processing expenses. Our specialized data analysis system gives us the edge we need to obtain the best rates for you in negotiating with credit card processing companies. For a free evaluation, call us today at (732) 727-2073.