ERP, MRP & CRM: Making Sense for Small Business Owners

Confused by all the business acronyms out there about ERP, MRP and CRM software packages? Wondering how these systems can help small businesses, but unsure what they do? Well, for many small business owners, with so many options to choose from, and with so many conflicting testimonials, making sense of it all can often be an exercise in futility. Don’t despair, in their simplest form, all these systems do is improve the access to information from both inside, and outside the company. In fact, it’s the amalgamation of this information that both reduces costs, and improves efficiency.

Companies know that to win business and grow, means to provide real time information, shorten product lead times, and excel at customer service. Customers will always gravitate to those companies that can provide products and information quickly. That includes providing customers with immediate information on delivery delays, new programs and discounts on deals, and up to date information on their account. Delays cost business, but lack of information on those delays, costs more. At the heart of all these systems, is to allow companies to become proactive in the eyes of their customers.

What Does MRP Stand For?

MRP stands for Manufacturing Resource Planning, and is a software package designed around managing production in all its forms. Typically these systems track work orders through production. They dictate the amount of material and parts to use, the number of finished products to make, and track the individual cycle times of each operation during the product’s manufacturing life. More importantly, it allows all internal departments, including customer service and sales, a window into the current status of work, and an estimated completion date for customers.

 What Does CRM Stand For?

CRM is an acronym for Customer Relationship Management. Its approach is to improve the ease of information transfer about customer purchasing patterns, credit information and payment history, contact information, sales leads, and customer service history. The importance of a CRM software is that it allows its users to locate and close on business opportunities, and use existing information to improve customer loyalty, incentivize them to continue purchasing, and improve a company’s ability to reduce sales cycle times. It bridges together a company’s sales, technical support, marketing and customer service functions into on all encompassing information source.

What Does ERP Stand For?

Perhaps no other software package brings together a company’s entire access to information, as does Enterprise Resource Planning. Consider an ERP system as an extension of MRP, in that it takes the benefits of tracking manufacturing activities, to tracking all of a company’s internal activities between its departments. ERP systems bring together a company’s entire internal process into one system, with real time information, that can be accessed by all. In the process, the company reduces operational costs, improves service and eliminates timely work delays.

Companies that use ERP programs might include companies that design, engineer, and manufacture products. The ERP system bridges a company’s entire internal information so as to improve operational effectiveness. Redundant work processes, and lack of information, is one of the largest costs to companies. Regardless of size, if a company has a hard time moving work from one internal department to the next, or lacks real time critical information that all its employees can see, it will simply result in delays, and delays to customers mean lost business.

As for which system is best, it really depends upon the business itself. Small businesses don’t necessarily have concern themselves with programs designed for much larger organizations. Customers must come to see their vendors as on the ball, and ready to help. Lacking the ability to service customers, or unable to provide essential information, is a recipe for an upset and frustrated customer. These programs improve efficiency and reduce costs, while improving a company’s ability to be proactive, instead of reactive.

Grants for Small Businesses Women

Nowadays even though more and more women are getting into different types of businesses, they still find difficulty in arranging for finances for their businesses. Grants for small businesses women are really helpful for all businesswomen. The economic recession that hit the world in the later part of 2008 has left almost every person in financial crunch. The government is concerned with overall development of people and especially concerned with the development of women. The administration is trying to help women come forward and face the situation and for that they are providing moral and financial boost up through grants.

Any woman, who wants to start a new business or expand the existing one or simply wants to run her business smoothly, she can apply for the relevant grants. There are different grants for different purposes and so the first and the most important thing is to find out the most suitable grants from the list available. The best place to look for grants is the government website and here you will get complete information regarding any grant you want to apply. This is a time taking job but it is worth all the efforts when you will receive the money and you will be able to accomplish your business needs with this free financial aid.

The most remarkable and attractive feature of grants for small businesses women is that it is free money and you do not have to repay it. Starting a business is a stressful time and so you should apply for the grants. This grant money will help you fulfill any of your business requirements. You have to keep in mind few points so that you have maximum chances of getting approved for the grant money.

Prepare a solid business plan when you are trying to apply for government grant money. Make sure your business plan includes the details about the money you have requested from the government and also about how your business will be beneficial for the community. Your business plan should be impressive and persuasive when you apply for grants for small businesses women.

Going Green in Small Businesses to Save Money: Economic Conditions and Competition Make Greening a Good Practice

Businesses that followed the green path in the past did it for two reasons; principles and community responsibility. This approach was considered an expense to a business and written off in marketing and public relations. However, going green is a necessity today and just plain good business practice.

Today going green is approached as a means of reducing costs (not an expense) and making an impact on the environment. Small businesses must be lean and mean if they are to survive in highly competitive world, regardless of economic conditions. Going green is a business practice that improves the bottom line through cutting expenses on and reducing the need to lay off productive employees.

Going Paperless – Really!

This was a common theme after the integration of computer technology in the 1980’s and 90’s. However, in many cases businesses had increased the use of paper instead of going paperless. Today the idea of going paperless is gaining ground because of the increased costs of office consumables. As businesses cut back on their use of paper, they are going green and saving the environment at the same time. Cutting back on using a large amount paper, allows for greater use recycled paper to replace regular paper.

Advances in computer software packages for office and business management, the need to use paper has actually decreased. These programs have file sharing and built in cooperative functions that make creating and editing documents by multiple users easier. Incorporating these document handling procedures in a small business reduces paper use, along with speeding up processing and handling of documents for greater worker productivity.

The actual reduction in paper use has impacted the U.S. Post Office, because more businesses communicate through e-mail for sharing documents and conducting business. Scanned copies of important documents and the editing capability of PDF files; allow businesses more productivity without sending important documents through the mail.

Reducing Printing and Copier Expenses

Printers, ink, and toner are expensive. Printers also consume a lot of energy. By reducing the amount of paper used, a business can reduce the cost of all three. This supports green initiatives by keeping fewer and more efficient printer/copier combinations in one central location in a business. Money is also saved through recycling ink and toner cartridges.

Another cost saving green approach is to use double sided printing and copying for anything that does not specifically require a single sided printing. This approach can significantly reduce paper usage and most new copiers have automated single to double sided conversion settings.

Reduced Filing Needs

Filing systems take up a sizeable percent of the floor space in an office. With less paper being used and stored, a business is able to move to a smaller office. Filing fewer papers also reduces cost of long term storage of documents.

Reduced Housekeeping

Anything that reduces paper waste also reduces the potential cost of shredding documents, along with office cleaning costs. Checking trash cans in a business will quickly result in the observation that most trash is paper. Reducing the use of paper reduces the amount of trash. Less trash leads to less money being spent on cleaning and trash removal services. Paper that winds up in the trash can be recycled.

Energy Efficient Lighting

Low energy light bulbs are not new; however their use in businesses is new. Low energy bulbs are not just for the home. Using low energy bulbs reduces energy bills and the cost of replacing bulbs so often, because low energy bulbs last longer than incandescent bulbs.

Making Connections

Reducing and replacing consumables is a direct money saver, capable of both improving the bottom line and increasing employee productivity. Going green is no longer a need to meet an ideology or for supporting the community. Going green is a necessity that every business must embrace, because of cost savings and saving the environment.

Timeline: Your Personal Success Tracker

You might hear the word success and think of: Fame, Glory, Power, and Control. These are great attributes, however they drape quietly over what we really long for, which is success. Fame, Glory, and Power etc. are all individual characteristics that one may desire while another may not. Success is a Universal desire, it has no boundaries, no requirements, and no limitations, though sometimes it can feel like there are lifelong membership fees. This feeling alone may cause many people to give up on their dreams, and their finances.

Well don’t give up just yet, controlling your living is a lot easier than you think. Two important ways to stay on top of your situation are to 1. Recognize and Repair early and 2. Break down your financial structure, and focus on one section at a time. The reason for doing this is so you’re in control, after all the only one who knows your success rate is you. My acronym for success is Something Under Certain Circumstances Enticing Self Satisfaction. That’s all it is, self satisfaction, i also refer to this as financial freedom. One way to show yourself where you stand on financial freedom is by using the Timeline.

Imagine your whole life as if it were dots on a line graph, lets say 10 years back. One line is for your checking account, one for savings, one for expenses, one for your IRA/401K, and then one for anything else you do such as a diet. You will come up with many new lines as time goes on and remember that these are just the fundamentals. Review the following section and try to vision your lines and see where you stand on self satisfaction.

Identify, Assess, Resolve

As you read these, try to apply them to your situation.

Line 1- Checking: From 10 years ago to now this line should be constantly changing, yet always above the expenses on the graph. Line 2- Expenses: This will also be a rapid wave yet the object is to keep it under the checking and savings. Line 3- Savings: Should always be increasing, yet you get to choose the rate Line 4- IRA/401K: Steady consistent increase, towards the bottom of your Timeline in the early years yet working its way to the top. Once you start using this tool monthly, or even weekly, you can identify problems fast while fixing them is easy.

These are just the fundamentals, there are truly so many ways you can use this tool to help you through life. A great way is to demonstrate this to your child. Being financially secure in a way they understand can open up unlimited doors later on in life.

I hope this helps you and your family and any friends that would benefit from the reading.

Starting A New Business

The best business ideas often come out of that moment of rebellion when the budding entrepreneur comes to the conclusion that “I could do that better myself”. All those ideas presented to the boss that were never acted upon; colleagues seen to be not pulling their weight but earning the same; watching the profits that are being made from ones efforts heading off in another direction. All these very common scenarios often act as the catalyst to starting a new business.

The great danger is to fall in love with the idea and rush in without thinking it through. This doesn’t mean writing a business plan immediately; important though it is that comes later. The first step is checking on prospective customers, are there enough buyers out there who want the product or service, enough times and at a high enough price to make the idea viable when the bills have been paid.

Five Forces

In short the business idea needs to be seriously challenged. How easy would it be for others to follow and become serious competition? How much competition is there now and how good are they? Is the world changing and the product may no longer be required? Who will be in charge the buyer or the seller? Too much dependence on a small number of big buyers can be very dangerous. Will the business be under the thumb of its suppliers who may be able to impose too many conditions?

 Market Research

If the first hurdle is cleared without mishap it’s time for the research to begin. To look at customers and their needs – who are they, how many are there, where are they?

  • Customer behavior – how much they buy, how often and for how much?
  • Competitors – who are they, where are they, what are their strengths and weaknesses?
  • Costs – what are the direct costs that will occur if a sale takes place and the indirect costs that will be there whether a sales takes place or not?

Armed with this information it’s time to come up with some sales assumptions taking into account businesses tend to start off slowly and build up momentum with increasing sales but often experience peaks and troughs in demand that need to be built into the sales assumptions on a month by month basis.

The Business Plan

The business plan comes next, the narrative that explains the who, where, why, what, when and how of the first year in business. This is accompanied by the financial forecasts in the form of cash flow and projected profit and loss statements.

There are many styles that can be found on the internet but it is important to choose something fit for purpose. The 100 page plan is well over the top for simple one man or woman business but may be absolutely right for the new manufacturing business with plans to create 30 new jobs. There are three good reasons for preparing a detailed business plan:

Beinecke Scholarship

The students, who want to pursue education in the field of arts, social sciences and humanities and find it difficult to arrange finances for their college education, can apply for Beinecke scholarship. This scholarship program is open for all college junior students. The award money that is provided to the student is $2,000 before matriculating in graduate school and when they are attending the graduate school they receive $30,000. This fund has to be used within the five years of undergraduate course. There is nomination needed for the student and every year there are 100 nominations and 18 new scholarships are awarded each year.

To apply for this scholarship, the student must be accepted at any accredited university. This scholarship is open for all college junior students and there are some qualifying factors as well as requirements that the applicant has to fulfill.

Requirements for Beinecke scholarship

The students should be

Ø A U. S citizen

Ø Having high academic record, preferably with GPA 3.9 and above

Ø Having evidence for financial need

The student must be having financial need and that he or she has to prove. If you have been receiving any kind of financial aid that was need based before this or during your undergraduate course, you can produce the evidence. If you have been receiving any merit based scholarship before this, you can produce a letter from your financial aid officer about how much need based financial aid you would require in the absence of the amount you are receiving right now.

If you are a student and meet all the requirements, you can fill the application form.Along with a duly filled application form you will have to submit a financial data statement that the financial aid officer of your institute should complete certifying that you qualify for a need based financial aid. You will need three letters of recommendation, your official transcript, and current resume of at least 2 pages and personal statement of at least 1000 words. When producing the personal statement forBeinecke scholarship, you should describe your background, interests, your plans after graduation and your career objectives as well.

Luxury Brands Form Strategic Alliances to Increase New Business

Sales in the global luxury industry are creeping up. Slowly. However, luxury brands haven’t broken out the champagne to cheer the economy’s cautious upturn; they’re looking for ways to make inroads into the buying choices of the rich and famous. And one consideration is partnering with other luxury brands who, while they don’t compete, share the same wealthy audience.

Is it Strategic Alliances or Fusion Marketing?

Call it what you will, fusing the marketing efforts of two, non-competitive companies it is the most inexpensive, yet effective form of marketing, that while totally underused, generates the most rewards: mutual profits. Best-in-class companies, working together, sharing expenses and manpower build brand equity, increase their customer base and deliver on their promise of quality service. While their customer database is a valuable asset for any company and would never be shared outright, partnering on a project by linking both their names on a marketing piece for promotion is smart business. It’s also a great way to infiltrate a different marketplace to generate new business..

Partnering to Control Secondary Markets

Luxury companies often, and unhappily, see their high-end merchandise being auctioned off on sites like e-Bay, and they can’t stop it. Gucci is one luxury retailer who has taken matters into their own hands by partnering with Christie’s (an auction house specializing in fine art) to provide a service that gives owners of vintage Gucci handbags and luggage the opportunity to have their items appraised. After the collector has her piece appraised, she’ll be notified if the piece is suitable for an upcoming Christie’s vintage sale. The beauty of this partnership for Gucci is that they are controlling their secondary market, while Christie is gaining vintage pieces directly from the owner.

Other examples of successful collaborative marketing partners that have boosted the bottom lines of each of the companies, and provided customers with a unique experience.:

  • American Express partnered with Hilton Hotels and generated a specialized credit card for travel rewards.
  • Fairmont Hotels teamed up with Lexus to provide hybrid Lexus cars to their best customers.
  • Frequent Flyer Clubs fused with hotels, car rental companies and cruise lines.

Strategic alliances can be formed with the unlikeliest of bedfellows; there just has to be a common denominator and that is usually the customer. Luxury companies willing to recenter their brand positioning and partner with other like-minded, prestige brands will continue to create passion, desire and a new customer experience for their jet-setting clientele. Not to mention that profits will start to tick upward.

Small Business Ideas for Book Lovers: Start Ups for People Who Love to Read

For people who enjoy reading and didn’t want to work for someone else, becoming a book store owner was a dream come true. Then, the super bookstores came along and independent bookseller after independent bookseller went out of business. Luckily, there are still some small businesses that are a perfect fit for book lovers.

Become a Magazine Publisher

Creating a magazine can be very rewarding for people who love to read. Choosing to focus on parenting or kid related topics gives them a chance to encourage a love of books in future generations. While the magazine industry as a whole is struggling, there are some markets that still do well. Free regional magazines that are completely funded by local business advertising or online magazines that take advantage of the flexibility of online publishing can thrive under the ownership of a determined and creative entrepreneur.

Extroverted Book Lovers Can Become Storytellers

People who love an audience and enjoy reading stories to their children in the voices of different characters may want to look into starting a storyteller or puppeteering business. Storytellers are popular with schools, libraries and after school or summer camp programs. They also may find customers who are throwing parties for their children. It can be a hard field to break into, but those storytellers who are successful enjoy their work.

Online Used Book Sellers Keep Costs Down

While traditional used book stores have almost become a thing of the past, online book stores do well by keeping costs down and doing a high volume of business. Many online booksellers choose to list their books on sites like eBay.com, amazon.com, alibris.com, or half.com to take advantage of the tremendous traffic that these sites bring in.

Personalized Book Small Business Idea

Children love to imagine themselves adventuring with favorite storybook characters. Personalized book sellers can find a company that specializes in printing several different stories personalized with children’s names to sell at craft fairs, school functions, etc. If they enjoy writing, they may want to cut out the middle man and create their own stories. Today’s print on demand options make it simple to create quality books one at a time after customers make the purchase.

Start a Book Related Home Party Business

Usborne is a popular educational book publishing company with a unique business model. Instead of having books stocked on traditional bookstore shelves for a few weeks and having the rest of the print run quickly remaindered, the company chose to use consultants to sell books through home parties, booths at events and directly to educational institutions. Barefoot Books is another children’s book publisher with a similar model.

With a bit of creativity and a willingness to think outside the traditional bookstore box, a book lover can still successfully start and run a small business that appeals to readers. There are several very successful business models available, from selling books online to introducing children to the world of books through a home party business model.

Commercial Business Finance in the U.K

With all of the financial turmoil around the world, did you know that getting commercial business financing for a UK business is getting easier than ever? This financing is specifically meant for UK businesses. These loans are meant for business and commercial organizations in the UK. Whether you want to start a new business or build on an already existing business, commercial business financing loans are geared for you.

These commercial business-financing deals come either secured or unsecured. Secured means that collateral must be used. Collateral can be a home, car, or some other real estate. Unsecured loans do not need any collateral. Financing is usually for amounts between $5,000 to $100,000 and the repayment time goes from 3 to 25 years in length.

When looking at commercial business financing loans you need to decide between fixed or variable rates. Fixed rates mean that the interest rate stays the same and the borrower pays the same amount of money every month during the repayment period. Variable rates change at certain points during the duration of the loan, and that new interest rate will reflect the rates in the market.

When applying for a loan, whether it is secured or not, you need to give some documentation. Here is a list of what you need:

-UK borrowers need to fill out a simple loan request that states the type of loan they wish to take and how much money they are looking to borrow.

-If this is a new business there needs to be a good business plan written up. Make sure the business plan covers all the vitals, including financial projections.

-When looking for a loan to expand a business, a summary of the business profile and financial statements need to be made available.

The final decision as to whether or not a loan is offered will take between 1 to 4 business days. It is common for borrowers to be asked to give more financial or background information. If help is needed in getting all the information together and securing the loan, a loan broker can be hired. The UK is full of loan brokers that help with anything that potential borrowers need to get done. There are many loan brokers available, so people should make sure to do research and get the best possible broker available.

When people are looking to finance their business for start up or expansion, commercial business financing loans are providing a great vehicle to get this accomplished. They are made available all over the UK and are changing the face of business.

Small Business SWOT Analysis: Help Build the Foundations for Long-term Business Success

A SWOT analysis is an important strategic planning tool for business. It is used to determine internal and external influencing factors that can impact the growth and success of a business. However, before a small business owner clicks away through fear of boredom – read on! Carrying out a SWOT analysis needn’t be boring and full of management speak, instead it can be a fun and highly relevant management tool for even the smallest of businesses.

A SWOT analysis doesn’t require understanding of the latest business management buzzwords or MBA-babble. It simply requires that the small business owner has a good understanding of their own business and the marketplace in which it operates. While it is an important strategic tool, undertaking a SWOT analysis is a creative process. It should not simply be a case of stating the obvious, instead it is the opportunity to think creatively about a business and its future direction.

What Is a SWOT Analysis?

A SWOT analysis takes a look at the Strengths, Weaknesses, Opportunities and Threats that face a business. The whole SWOT theory works on the principle of balance. This means that every strength has a corresponding weakness and that every opportunity has a corresponding threat and visa versa.

As an example of this, a small company may recognize that one of the biggest strengths of the company is its staff (this is particularly important with single person businesses). The threat, therefore, would be that something happened to key staff that stopped them from performing. An opportunity might be a new market opportunity opening up and the threat might be that someone else also sees this opportunity and enters the market.

How to Undertake a SWOT Analysis

There are several ways to undertake a SWOT analysis, however the principle is always the same, and that is to draw up a grid with four squares, each with one of the headings from strength, weakness, opportunity or threat.

It is then simply a case of writing in as many different features as possible. At the end of the exercise all the different points should be checked to make sure that there is corresponding positive or negative point for every point raised. A discussion about the exercise might be useful at this point.

Tips for Running a Successful SWOT exercise

Here are some tips to run a a successful SWOT analysis exercise:

  • Make it fun! – The more interesting and fun the exercise is, the more likely it is that people will join in with enthusiasm.
  • Encourage debate – Full and frank discussion can be useful when discussing different aspects of a business. It is important, however, that people can do this in a positive way.
  • Set a time limit – Setting a time limit on any management exercise is important as this helps to keep the discussions on track and avoids people going off on a tangent.

What Happens Next?

A SWOT analysis on its own won’t help a business. The next step is where things start to get interesting and that is when the SWOT study is incorporated into a business plan. Even if this is done informally it is imperative that an action plan of some description is drawn up – otherwise all these important thoughts will go to waste!