Business Cost Savings Through Safety

Business Cost Savings Through Safety

Setting a health and safety program in place will reduce costs. Having a program will reduce accidents and will lead to lower company worker’s comp premiums; further business insurance companies prefer their customers to have health and safety programs. These insurance companies might even discount the premium if a program can be proved to exist. The average cost of an accident is $68,000. Direct costs in accidents such as worker’s comp and fines levied can close a business. Indirect costs such as low morale of employees, legal fees, and retraining can be as costly if not more.

A working program will:
1) Improve employee morale – Shows care in their well being
2) Reduce revenue losses – Fewer accidents keeps all employees at work
3) Give a boost to the customer – Makes sure business is operating optimally


Small businesses that have a voluntary health and safety program in place have fifty percent less accidents and reported insurance claims than that of their counterparts according to OHSA stats. Most small businesses fall below the legal requirements for having a formal health and safety program in place due to number of employees on staff. Sixty eight percent of reported accidents are in the service industry which shows even businesses such as retail establishments are not free of accidents.


A health and safety program can be started by writing a health and safety policy; this is simply values that a company wishes to convey in its work processes. Secondly, is how communication between all employees and owners will function. And lastly, put procedures in place to ensure safe practices.

To find unseen hazards and unsafe practices, an audit needs to take place. Take a hard look at the workplace and record all factors that may lead to injury. These hazards might be dangerous chemicals or as simple as a letter opener. Identifying these hazards will lead to procedures to controlling them. Controls such as “Don’t run with scissors in your hands” are effective. Write all procedures in a manual.

Implementing these health and safety procedures will be done with behavioral change. Some programs become weak and non effective because of:
1) No definition of safety practices – No written processes
2) No teamwork – Safety is communication from the top to bottom and vice versa. A well written plan will describe what roles everyone plays in safety policies.
3) No effective goals – The “accident free days” poster will come as a result of sound safety processes.
4) Wrong incentives – Money as a reward does not work well. Health and safety should be fun and worth employees effort. The right incentive plan can be cost effective and have obtainable goals. Incentive plans can include movie passes or simply “free coffee on the boss.” The insurance industry reports for a dollar spent on health and safety yields four to six dollars in savings.

Once all of the hard work of developing and implementing the health and safety program is done, set aside some time each month to review the workplace. Record what is found; this is a good practice to see dangerous trends that might occur such as a fire exit constantly being blocked. On the quarters of the year post a meeting with employees. These meetings are a great way to get vital feed-back from employees and keep them involved. At least once a year, do an audit to make sure your health and safety program is current with present business operations.

Business Buying Guide - Detail

Business Buying Process

First, You have to determining your investment. Usually minimum down payment made by the buyer is 30% of the purchase price. For example, if the business purchase price is $100,000 and loan amount is $70,000 (70%), then the buyer's down payment needs to be $30,000 (30%). Other possible expenses are inventories, supplies, escrow fee, license and permit fees, franchise transfer fee (if applies), etc.

And then you have to set criteria of desired business. Which includes location of business, type of business, price range of business, desired income of business.

After you decide your investment amount and criteria of business, you will need to find a right business that fit your needs. You can search business through online business listing service site like www.BusiMarket.com Business For Sale, local newspapers, or through local business brokers or real estate agents.

If you find a business that you want to purchase, you will need to evaluate the business through current owner's income information and your projected income for short term and long term.
And then you need to make decision to purchase business or not. If the business is right for you, you need to write a very descriptive and detailed contract (Purchase and Sale Agreement).

When you are writing an offer, you have to make sure the contract includes the followings: Your offering price, Initial deposit amount, financing terms, closing date. Other terms and conditions that can be added to the contract is buyer's loan approval, lease and lease approval from landlord, buyer to obtain all necessary licenses and permits, franchisor's approval of ownership transfer, the buyer's Satisfaction of books and records, closing cost allocation, buyer training session, business equipment and fixtures in good working condition, inventories and supplies amount, seller's agreement not to compete, etc.

After you finish writing an offer, you need to present your offer to seller. Negotiate the price, terms, and conditions and settle with final price and terms and condition.

Now you will need to allocate the purchase price of business that you are buying. After you done purchase price allocation, you will need to apply for loan, license and permits.

and then you will need to obtain a lease or sublease. You will need to make sure you obtain the lease or get an approval of lease assignment before close of escrow no matter what happened.

And then on or the day before the closing date, you will need to review the equipment list that is provided at the time of the acceptance of the Purchase and Sale agreement and buy inventories and supplies. And then you can do the closing on the closing date.

Breaking the Chains!

Everyday, customers and business owners are bombarded with billboards, logos, print and electronic ads from huge corporations. With annual ad budgets that are more than our businesses' SALES in an entire year, our small independent businesses are getting squeezed out of consumers minds (and wallets) more and more each year. But the good news is, there are ways to fight back and “break the chains”:

Build that website and perfect your online presence.

The Internet is one place where, compared to print and other forms of electronic media, the playing field is relatively level. A website filled with loads of great content will be loved by the search engines like Google and Yahoo!, and because of that, customers that may not even know where you are can find you and buy online. If you own a retail store, start an e-store. If you own a restaurant or a service-related business, offer a gift certificate or printable coupon. Starting a mailing list on your website with the latest news, events and special offers is a great way to get (and keep) loyal, regular customers. The options are endless, and best of all, content is the Internet king, not slick, flashy, repetitive advertising. If you aren't comfortable with all things Internet, there are many companies that are, and can help you with web design, web hosting, search engine optimization, and web marketing.

Join (or start) a co-op or business association.

“Strength in Numbers” is more than a catchy phrase, it is becoming a necessity in our current business climate. Trade organizations can purchase products together to get better rates and buys, they can advertise together with direct mail coupons and newsletters (another big money saver), and they carry more political clout by appointing representatives to call on state legislatures or even Congress in order to promote legislation favorable to small independent businesses. If your area doesn't have a trade organization, or does but you feel it doesn't meet your needs, start one! The National Federation of Independent Business is a great resource with representatives in all fifty states and Washington D.C.

Don't mimic Corporate America

Advertising is not cheap, because the prices that the large corporations are willing to pay for it have priced it out of the reach of most small businesses. This is not necessarily a bad thing; let them have all of the cold, impersonal, beat you over the head repetitive advertising! People only care about this on Super Bowl Sunday anyway! Always go for the personal touch. If you own a restaurant or retail store, introduce yourself. Let them know you appreciate them coming by, and you can't wait to see them again. Always offer coupons or incentives, and be as unique, creative and memorable as you possibly can. Remember that “word of mouth” advertising is so great you can't put a price tag on it. Put yourself in the customers shoes, and stay there! Don't ever do what you want; do what they want. Don't just market your business, market yourself. It leaves an impression, and with the sorry state of customer service today in most (chain) businesses, people won't forget it!

Remember, you are an independent business because you wanted to do something new or different, so promote yourself accordingly. Here's to you “breaking the chains” and becoming successful with your chosen endeavor.

Boomers Have Big Hopes For Small Businesses

As they approach retirement age, many baby boomers are considering alternatives to retirement.

A growing number of them plan to forgo golf, travel and other pursuits to continue working through what have long been considered the retirement years. According to a report by AARP, 80 percent of those born from 1946 to 1964 plan to work after retirement.

Some are taking this time of their lives to start a small business. In fact, AARP also reported that 40 percent of U.S. entrepreneurs are over 50.

For those thinking to take advantage of this trend, Paul and Sarah Edwards, self-employment lifestyle experts and authors of "The Best Home Businesses for People 50+," offer some advice. "Starting a small business out of the home at any age can be very challenging but rewarding," says Edwards. "However, Sarah and I have developed a few tips for our fellow boomers to keep in mind when embarking on this exciting new phase of their life."

• Do it Your Way. A home- based career allows you to decide everything from how much time you want to dedicate to your business to where you want to be located.

• No More Office. Many experts believe that taking a business online is the easiest way to accomplish your goal of working while maintaining freedom. If your small business is located online, you have low overhead costs and can be found by customers around the globe without regard to where you are located.

• Have an Online Presence. Virtually every business can be helped with a presence on the Web. This is easier than it seems if you work with a reputable Web solutions partner.

For example, Network Solutions focuses on small businesses by offering products and services such as Do-It-For-Me Web sites (DIFM), easy-to-use templates and 24/7 customer consultants. Such services provide you with a Web partner that will enhance your business.

• Do What You Enjoy. "Becoming your own boss is an opportunity to do something you want to do," says Sarah Edwards. "For example, you can spend as much time as you want on a hobby because you're making money in the process, or helping other people or working with the kind of customers you choose to work with."

Blend Your Strengths with Small Business Needs

If you are looking to start a small business of your own, there is a proven process that is necessary to start off with. Many creative people have great business ideas, but their approach to planning is ineffective and eventually flops. First and foremost, you have to find a market that is a good size. Now what does this mean exactly? Finding a niche market that is a reasonable size entails pinpointing one that is big enough to make a profit but small enough for the resources of a small business and one that does not compete with large corporations.

Two main mistakes that entrepreneurs make in finding small markets are targeting a market that is too broad and targeting a niche that is already heavily exploited. What you decide to sell must connect product to target audience or you will not be successful.

To start off with, choose your own unique area of expertise. What are you good at? What do you have experience in? Use your education, your skills and the people you know who could help you transform your idea into reality. If you have many areas of interest and are not sure which one would be the most profitable, a little more research will be needed. Consider how it will be possible to convert your education and skills into money-making opportunities. Research your surrounding marketplace to see what is needed in your area.

Now if you are trying to find small markets online, be forewarned that this can be tedious and time-consuming. You will first have to think of a list of possible target audiences, then take your first idea and research an exhaustive list of keywords and keyword phrases that people in that target audience are using for information on their desired product. Next, one must research all keywords and phrases for relevancy and then study which keywords on your list might lead to other niches that will need future researching. Then, you need to compare all your keywords to web pages to evaluate the present competition. You will use all your information to narrow down your list to keywords and phrases that have the most online traffic and those that are the least exploited. If your small market does not appear to be profitable, you must start the entire research process over. If you do find one that seems to be a money maker, you then must focus on finding ideas to profit from.

Calculating The True Cost Of Disaster Preparedness

Small-business owners who think preparing for a disaster is expensive should think again. Being unprepared-and losing everything-can mean paying a much higher price.

For example, in July 1996, the president and owner of Brookville Mining Equipment Corporation, Dalph McNeil, faced every business owner's nightmare when the nearby creek crested at eight feet after a 24-hour downpour.

Expensive new machinery was covered in mud and a powerful current of water had swept away inventory and collapsed a 30-foot section of wall. The flood caused nearly $1.6 million in damages and losses.

After receiving a Small Business Administration (SBA) disaster loan, McNeil relocated his plant away from the floodplain and asked one of his employees to take on the additional responsibility of "safety coordinator."

Besides doing quality assurance and control, the safety coordinator, according to McNeil, "runs monthly meetings with representatives of the company, making sure all the employees understand the early warning and evacuation plans, and the emergency procedures."

"You can never be too prepared, as a small-business owner, for disaster," McNeil remarked. "It's something you don't want to think about. How do you carry on business as usual, as quickly as possible, after a disaster? You have to be a bit of a fatalist, thinking in terms of the worst-case scenario for your business." And while he hopes he never has to use the emergency plans he has in place, McNeil says he is now ready for anything.

Experts say preparedness starts with developing such an emergency action plan that is tailored to the company's needs and addresses several disaster scenarios. The plan should include a timetable, budget, assignment of responsibility, prevention and mitigation steps to be completed, and a list of risks and hazards to the business. It's also a good idea to encourage employee involvement in the process.

A communications strategy is a key post-disaster recovery strategy. Phone numbers and e-mail addresses for your insurance carrier, suppliers, creditors, employees and customers, the local media, utility companies, and the appropriate emergency response and recovery agencies should be updated regularly.

This list should be maintained by a key employee and a backup person. Appoint a spokesperson to get the word out that your business is still open to dispel rumors of business failure.

Making sure your insurance coverage is adequate is another issue. According to the Insurance Information Institute, a recently released survey conducted for the National Hurricane Survival Initiative (done by Mason-Dixon Polling & Research) reports that one in three residents in hurricane-vulnerable states said it had been three years or more since they reviewed their insurance coverage.

When shopping for insurance, think about property damage and the loss of revenue and extra expenses that occur when business is halted by a disaster. Business interruption insurance covers necessary expenses that occur while the business is shut down. Many business owners don't realize that basic hazard insurance does not cover flood damage. Additional purchased flood insurance is essential; most of the over $10 billion in disaster loans made by the SBA after last year's Gulf Coast hurricanes were for flood damages.

The National Flood Insurance program provides coverage to property owners. For more information, visit the Web site at http://www.floodsmart.gov/floodsmart/. Flood insurance must be purchased 30 days before the disaster hits to be in effect.

Avoiding a Financial Crisis: How to Keep Your Small Business Alive

Having a superb product, soaring sales and stupendous customer service are undoubtedly some of the things which go into making a successful business. But all of this is irrelevant if you suffer a financial crisis. Without a sound stable financial position the slightest shock can be enough to send your business crashing to the ground.

So what can you do to ensure that all your hard work is not in vain? What can you do to make sure that a financial crisis doesn’t rock the boat or even sink it? Let’s take a look at what can cause these jolts and, more importantly, what you can do about it.

Poor Record Keeping and Administration

Business owners are usually not good record or bookkeepers! People who start businesses are the ones who have great ideas, see a gap in the market or have the personality to sell anything. They are not people who jump out of bed in the morning and say “Great, it’s a VAT and paperwork day today!”

If you are to keep your business on the straight and narrow then you have to accept that there are going to days like this; you can’t avoid it. You must keep records of your sales, your purchases, how much you have, how much raw material or finished goods you hold.

Without these records you will very quickly lose track of where you are. You won’t know:

• What you have spent your money on

• You won’t know where your cash is going

• You won’t know where all your stock is – has someone stolen it? Who knows?
You are effectively working in the dark and this is not conducive to financial stability. So what sort of records are we talking about? Nothing sophisticated. It can be as simple as a book with one page for your income and another for your expenditure. At least once a month total it all up to see how money you have made (I hope!). There’s a saying. ‘The people who keep records are the people who break records’ – so true.

Not Watching Your Bank Balance

Do you know exactly what your bank balance is today? Why is it important? Because if you are going to write a cheque you must know whether you have the money on your account. If you don’t that nasty Bank Manager may just bounce it.

Obviously this can have a negative effect on your reputation; your credit will be damaged and you may struggle to get support from your Bank and suppliers in the future. All because you didn’t check what your balance was.

To avoid this make sure you keep a running total in a cash book of what you have on your account. Why not sign up for Internet Banking? These days all the High Street Banks make this facility available, so there is no excuse for losing track of where you stand.

Poor Cash and Credit Management

Closely linked to keeping an eye on your Bank balance is how you handle your cash flow. There are 3 aspects to this.

1. Don’t be tempted to keep too much at your home or on your business premises. You could lose it to thieves, fire or flood

2. If you are doing ‘business-to-business’ sales then you may be faced with having to sell on credit. If so then be disciplined in chasing up any outstanding payments. You can’t afford to be embarrassed about asking for a cheque. If you have agreed 1 month credit, why wait for 3 months? Chase as hard as you can because remember you have your own debts to pay!

3. You may be lucky to have a period of credit granted by the people you buy from. If they give you one month’s credit, then stick to it. If you decide to hold onto your bills before paying you may be faced with a Solicitor’s letter. Don’t ignore the problem and hope the phone calls will go away - they won’t!

No Cost Controls

To keep yourself in a strong financial position shop around for purchases you have to make. Compare prices and specifications. Have an upper limit beyond which you will not pay. Always be on the lookout for a good deal.

Spending On the Wrong Things

Running your own business can be a very powerful feeling! You may be tempted to spend on anything but the business – a new car, flash clothes, a new kitchen. Well, you have to look the part don’t you??

During the early years and even when you are established make sure you spend your hard earned cash on the right things. The trappings of success may not be right at this stage of your business life. Your business, in order for it to grow, needs cash. Remove the cash and you remove the life blood which keeps your business alive.
You have to be disciplined in your expenditure and ask yourself the question, ‘Will this cost add anything to my business?’. Don’t act on impulse; go away and think about every large expenditure. If the answer to the question is no, then you should think twice about spending.

Failing To Make Cuts in Time

Failing to make the necessary cuts to ensure the survival of your business is something you cannot afford to do. If you spot you have a problem do something about it! Don’t sit back and hope things will get better; the chances are it won’t.

If you have product or service which is not performing and it’s costing you money don’t try and dress it up – be ruthless and cut it out. Make your decision quickly; don’t hang about. Not acting fast will only compound the problem.

Depending On a Small Number of Customers

Having a small number of customers is not a problem when everything is going well, but if one or two leave you or fail to pay up on time, then this can cause problems.
If you depend on 3 customers and one of them leaves then you are faced with a 33% reduction in sales. Unless you can replace him immediately you may not be able to cut your overheads quick enough to avert any crisis.

You cannot afford for your business to be held to ransom. Try and diversify as much as you can. Get out there and get new customers.
The same applies to businesses which rely on only one or two products. A shift in public tastes can leave you high and dry with unsold stock and no business!

Not Having a Budget

One good financial discipline is to have a budget. At the beginning of each year sit down and, based on your previous year’s income and expenditure, set new targets. Look to see where you can cut back in expenditure or even what to cut out all together.

Armed with your budget you will have a guide to work to. This will be a second check before you make any large unnecessary purchases.

Having a budget will provide discipline to your expenditure. At the end of every month up date it by including your actual income and expenditure then compare your budget with the actuals. Going through this exercise will give you more focus and what your business is doing. It can help you put things right by highlighting the problem areas.

No Contingency Plan In Place

Bigger businesses need to have a contingency plan for all parts of the business. A contingency plan is basically a plan which answers the question, “What would we do if this happened …?”

What is your “if”? What if you lose your premises? What if your computer goes down?
For a small business the biggest risk is you! What would happen to your business if you fall ill or even die? Most small businesses are totally dependent on the owner. You do everything!

If you are ill enough for one or two months that you can’t work who will see to the customers? Who will get new ones? Who will see to the paperwork? Who will collect the money owed to you?

These are important questions you must answer now. You have to identify someone who could fill in for you if you are to avoid a potential financial crisis. Your next step is to write a manual on how your business works, and outlining all the key processes. If something does happen then at least there is a path to follow!

Not Talking To Your Bank Manager

As soon as most people see a financial crisis looming the person they try and avoid most is their Bank Manager! If they see him walking on the same side of the road they will cross to avoid bumping into him.

The Bank Manager is usually the first person you should speak to. Bank Managers like to be kept up to date with what is happening in your business. They don’t like surprises. It’s when they are kept in the dark they make decisions that can have a major impact on your business.

You must resolve to talk to your Bank Manager the moment you suspect there is a problem. Who knows, he may surprise you by offering to do something to help!

Financial problems can usually be avoided by taking a step back from the business and thinking about what can go wrong. Once you know that, then you can take actions to put preventative measures in place before it’s too late.