Checklist for Starting a General Store Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a General Store business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
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A Step by Step
Guide to Starting a Small Business
This is a
practical manual in a PDF format, that will walk you step by step through all the
essential phases of starting your General Store business. The book is packed with
guides, worksheets and checklists. These strategies are
absolutely crucial to your business' success yet are simple and
easy to apply.
Copy the following link to your browser and save the file to your PC:
https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf
Suppose the business is a
partnership and one of the partners dies?
Unless the partners have prepared
some other binding arrangement, that is already in place, their
partnership is dissolved when one of them dies.
The duties of the surviving
partner(s) are limited to winding up the affairs of the
partnership.
The surviving partner(s) will be
personally liable for losses that the business's assets are
insufficient to cover.
The partners may have to set up
agreements that provide for the surviving partner's purchase of
a deceased partner's interest at a prearranged valuation.
Business life insurance of each partner could provide the fund
the survivors need to purchase the deceased partner's interest.
Who should pay the premium? The
business? Each partner?
What are the pros and cons of these
alternatives?
What are the tax implications of
each?
How would each affect the firm's cash
flow?
There are many plans and many ways to
set them up. Your planning team can suggest a wide range of
options compatible with your needs, your firm's cash position
and tax implications.
What if the business is
incorporated?
In most small incorporated businesses
there are only a few stockholders, and most of them take an
active part in running the business.
Death of a major stockholder often
throws a spotlight on the survivors' differences. Conflict or
major personality clashes can seriously threaten the survival of
the firm. Dissension also damages employee morale, can lead to a
loss of business and may even harm the firm's credit rating.
Unless otherwise provided for, the
deceased major stockholder's shares will become part of his or
her estate. While the estate is being settled, the estate
administrator can vote (i.e., exercise the right to control) the
stock. If a controlling interest in the firm is involved, he or
she could name a new board of directors and take over full
control of the corporation.
What if the heirs decide to get
involved in the business? If they decide to retain the stock,
will it provide enough income for them to live on?
If the heirs decide to sell, would
they be required to offer the other major stockholders first
refusal? Could some plan be set up that would allow the
surviving stockholders to finance a buy-out of the heirs'
holdings?
Without such a plan, would the
remaining stockholders' search for buy-out funds have any impact
upon the firm's credit?
Once again, planning is essential.
Your attorney, accountant and insurance agent can develop a
legally binding strategy to prevent outsiders from unexpectedly
coming into the business and to ensure an orderly "changing of
the guard" should a major stockholder die.
The Key Person Exposure
Do not overlook what would happen if
you were to suddenly lose the services of a key person (who is
not an owner, partner or major stockholder) because of illness,
disability or death (e.g., a sales manager or the office
manager/bookkeeper).
What impact would that person's
absence have on sales volume? Costs? Productivity? Efficiency?
The firm's credit?
How would you reassign duties to
cover the missing person's functions?
What extra costs would you have to
incur to recruit a replacement?
How long would it take before the
replacement is trained and productive?
The way you answer these questions
depends on many factors, such as the kind of employee benefits
already in place.
Loss Exposures and Risk Management
The next two steps of the risk
management process are similar to those we face in managing our
personal finances.
1. Loss control: What can be done to
prevent or limit exposure to loss?
2. What techniques can be used to
assure that funds will be available for losses that cannot be
avoided or prevented?
Loss Control
Preventing or Limiting Exposure to
Loss
One principle of loss prevention and
control is the same in business as it is in your personal life:
avoid activities that are too hazardous. For example: A merchant
may decide not to sell a particular product because it is likely
to injure customers; thereby, the firm avoids a
product-liability exposure. For example: If you can't avoid an
exposure completely, minimize it.
An apartment owner may decide against
constructing a new building on a rural hillside site that has a
long history of brush fires. Instead, he builds on suburban,
level land, which is supplied by town water and is two minutes
from a fire station. While exposure of loss from fire can seldom
be eliminated completely, this owner has reduced the possible
severity of loss by choosing a safer site closer to the
fire-fighting services.
Look again to see if the extent of
possible loss can be further reduced.
That same apartment owner, for
example, may decide to build using fire-resistant construction
and materials. thereby reducing the chance of fire spreading. He
may also decide to install smoke detectors, fire alarms and
automatic extinguishing systems throughout the building to
further reduce the severity and spread of fire.
Risk Retention
A business owner may decide that the
firm can afford to absorb some losses, either because the
frequency and probability of loss are low or because the value
of loss is manageable.
A firm owns several business
vehicles. The drivers have an excellent safety record, and
exposure to collision is low because these vans cover
un-congested rural routes. Because these are older vehicles,
their book value has decreased substantially.
Rather than continue to pay for
collision insurance on the vans, the firm decides to drop the
collision coverage completely. If an accident damages one or
more of the vans, the firm will pay for collision damage with
company funds. In effect, the firm has decided to retain the
risk itself rather than transfer the risk to an insurance
company by paying for collision insurance.
Or the firm could decide to retain
part of the risk and insure the rest.
Transferring Risk
Another method of managing exposure
to loss is by transferring the risk. Although most businesses do
this by buying insurance (which transfers some or all of the
risk to the insurance company), there are other non-insurance
options.
The firm may decide to eliminate the
collision exposure completely by selling the firm's vans and
hiring a local delivery service. This solution eliminates not
only the collision exposure, but also the exposures associated
with owning and maintaining the vans. In effect, the firm has
transferred all of the expenses to the local delivery service.
To reduce exposure to property
damage, a retailer may decide to cut in-store inventories and to
handle certain items only on a special-order basis. The owner
will place small reorders with suppliers more frequently. The
result? Lower inventory values in the store, therefore a lower
exposure. The retailer is actually transferring much of the
exposure of property loss to the suppliers.
As the Proprietor of Your company you deal
with problems on an almost daily basis. Being familiar with
powerful Problem Solving
Techniques can radically alter the
development of your business.
Although you Find
solutions to your issues, many businessmen and women are not
really skilled in the methods of problem solving,
and when
solutions neglect, they fault themselves for misjudgment. The
issue is usually not misjudgment but instead a lack of
ability.
This manual Educates you in a few problem
solving processes. Crucial to the success of a company faced
with issues is your
understanding of just what the issues
are, setting them, finding answers, and picking the best answers
for your scenarios.
What's a problem. A problem is a
situation that poses difficulty or perplexity. Issues come in
many shapes and dimensions. By Way
of Example, it may be:
Something did Not function as it should and you do not
understand why or how. Something you need is inaccessible, and
something
must be found to take its place. Workers are
undermining a new app. The marketplace is not purchasing. What
should you do to
survive? Clients are complaining. How do you
manage their complaints?
Where do Problems come from?
Problems arise from every facet of human and mechanical
functions in addition to from nature. Some
issues we cause
ourselves (e.g., a hasty choice was made and the wrong person
was chosen for the job); other issues are caused by
forces
beyond our control (e.g., a warehouse is struck by lightning and
burns down).
Problems are a Natural, everyday occurrence
of life, and so as to suffer less from the tensions and
frustrations they cause, we
need to learn how to manage them
in a reasonable, logical fashion.
If we accept The fact
that problems will appear on a regular basis, for a variety of
reasons, and by a variety of sources, we can:
learn to
approach problems from an objective standpoint; find out how to
anticipate some of these; and stop a number of them from
becoming bigger problems.
To accomplish This, you need
to learn the process of problem solving. Here, we'll instruct
you in the fundamental procedures of
difficulty. It is a
step-by-step guide which you can easily follow and practice. As
you follow this guide, you will eventually
develop some tips
of your own that work in concert with the difficulty process
described within this guide.
Remember, However, as you
see that this is not a thorough evaluation of the art of
problem-solving but rather a practical,
systematic, and
simplified, yet powerful, way to approach issues contemplating
the limited time and information most company
owners and
managers have. Additionally, some issues are so complex that
they require the further help of experts in the area, so
be
prepared to accept the fact that some problems are beyond just
one individual's ability, ability, and desire to be successful.
In order to Appropriately identify the problem and its
causes, you must do some research. To do so, just list each of
the previous
queries in checklist form, and maintaining the
checklist handy, go about gathering as much info as you possibly
can. Remember the
relative importance and urgency of the
problem, in addition to your time constraints. Then interview
the people involved with the
problem, asking them the
questions on your checklist.
When You've Gathered the
information and assessed it, you'll have a pretty clear
comprehension of the issue and what the major
reasons for the
issue are. Now, you can find out more about the causes farther
through observation and extra interviewing. At this
time you
should summarize the issue as briefly as possible, list all the
causes you've identified, and record all of the areas the
problem seems to be affecting.
At this point, You're
ready to check your comprehension of the issue. You've already
identified the problem, broken down it to all
its facets,
narrowed it down, done research on it, and you're avoiding
typical roadblocks. On a huge pad, write down the problem,
including all the variables, the areas it affects, and what the
effects are. For a better visual understanding, you might also
wish to diagram the issue demonstrating cause and effect.
Study what you Have written down and/or diagrammed. Call in
your employees and talk about your analysis with them. Based on
their
feedback, you might choose to revise. Once you believe
you completely comprehend the causes and consequences of the
problem,
summarize the problem as succinctly and as easily as
possible.
Proceed through your Long list of alternatives
and cross-out those that obviously won't work. Those ideas are
not wasted because
they impact on these thoughts that stay.
To put it differently, the very best ideas you select may be
revised depending on the
ideas that wouldn't work. With the
rest of the solutions, use what is known as the"Force Field
Analysis Technique." This is
fundamentally an analysis
technique which divides the solution down into its positive
results and negative outcomes. To do so
write each solution
you're contemplating on a separate piece of paper. Beneath the
solution, draw a line vertically down the
middle of the
newspaper. Label one column benefits and one column downsides.
Now, some more Analytical thinking comes into play.
Assessing each facet of this solution and its effect on the
issue, listing
each of the advantages and disadvantages you
may consider.
1 way to help You think about the
advantages and disadvantages would be to role-play every
solution. Call in a few of your
employees and perform out
each alternative. Ask them for their responses. Depending on
what you observe and on their opinions, you
will get a
clearer idea of the advantages and disadvantages of each
solution you're thinking about.
Once you Complete this
process for every solution, pick those solutions that have the
Many advantages. Now, you should be
considering only three or
two.
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