Small Business

These are unfamiliar assets that are available to entrepreneurs and already established small businesses. They are created with an aim of helping small enterprises with all kind of business related activities which includes counselling and guiding them with finance and marketing strategies.

The centers are usually managed by the U.S Small Business Administration and they partner up with local communities, local governments and private sectors. The US Small Business Administration was founded in 1953 with an aim of counselling, assisting and protecting the interests of small business owners and retain the competition of enterprises. Additionally, the agency strengthens the economy of the nation.

The US Small Business Administration Loan Programs

The loans granted by the SBA are just among the elements that the whole agency provide. The following are types of loans that the SBA provide:

The Grow Loan provides small enterprises with finances to get the assets required to run the business.

The 7(a) Loan is the basic loan program that is granted by the SBA and the maximum one can get is $5 Million.

Other loans granted include

  • Micro Loan
  • Disaster Loan
  • CAP Lines Loan
  • Export Loan
  • Express Loan

The loans can be granted by the relevant financial Institutions, and with the Small Business Administration acting as a guarantor. The entrepreneurs are given time to make payments for a longer period of time.

In 2014, the agency’s annual budget was estimated to be $810 Million.

Role of Small Business Development Centers

Running a small business can be hectic and it is hard to be an expert in everything. The Small Business Development Centers place people together who are experts in managing small enterprises and the following are some of their roles:

  • Production
  • Marketing
  • Assisting the entrepreneurs with business skills
  • Making them understand on how to get finances
  • Putting together the practicability studies.

Areas which Small Business Development Centers can offer help

Anyone who has started a business for the first time, or you would like to start one, and expand it, then you are qualified to be getting the SBDC services. The SBDC can often help in some areas of one’s enterprise. They include:

  1. Technical assistance
  2. Procurement assistance
  3. Rural Development assistance
  4. International commerce assistance

 

Duties and Responsibilities of the Small Business Development Center

The following are major responsibilities that are taken by the SMDC to accomplish their work:

  • The agency supervises all technical stuffs, hires, disciplines and they recommend any dismissal of staffs when necessary.
  • They develop and train on different subjects that concern small businesses and commerce
  • The agency schedules and assigns classes and entails all shared resources and space needed for coordinating educational computer labs.
  • Small Business Development Center, allocates the program by establishing a direction within the atmosphere of college. Additionally, it conducts the implementation of the direction to achieve the agency’s goals.
  • Regulates how small enterprises run and the needs of the business by establishing complete course advises.
  • Taking part in different meetings to pass message as regards to the services offered.

Tips for Starting a Business

Each and every entrepreneur always looks forward in having a successful business especially at the start. The following are tips for starting a successful business:

  • Beginning with a full detailed plan- You need to establish a full detailed plan and it should include all opportunities and your mission. Additionally, it should include goals and target of your enterprise. It is very important to have a plan.
  • Networking- Once you have set a plan you will be required to be your own ambassador of your business and proclaim the different benefits of working at your enterprise. Start your own drive since these initial energy lead to future business diplomatic partners that may lead in helping your business grow.
  • Be around with the right mentors- Diplomatic partners are not only the people you need to be with, but being around a great team that are important. The team always help in transforming your business and accelerate its growth.
  • Stay Updated with the current emerging issues- Successful enterprise owners are always keeping up with what is the latest. This allows them to adapt and go on with the emerging trends.
  • Find ways to maintain relationship outside of work- Establish ways on how you can get your body to energize and stimulate you and the rest of the people around you. This step always leads to great socialization among friends and business partners.

Advantages and Disadvantages of Running Your Own Enterprise

Running your own business, always have merits and demerits. The following are some of them:

Advantages

  • Financial Rewards. This is the major opportunity of an entrepreneur to make money for the risks taken.
  • Independence in lifestyle living. As an owner of your own enterprise, one enjoys lifestyle mutability since one is creating their own routine as the boss.
  • Personal Growth and comfort. Creating a business idea and it becomes successful its usually the entrepreneur’s satisfaction.

Disadvantages

  • Time commitment. Setting up a business requires one to be very committed to their work. One needs to set up time for the business to prosper.
  • Financial Risks. The biggest risk in owning an enterprise is losing money. Most of the business owners usually start their business using loans. That means they will have to pay at some point, and to pay, one has to generate profit out of the business so that you may pay the loan later.
  • Health and stress issues. As an entrepreneur or a business owner, most of them tend to experience stress and as well as health issues. Bigger enterprises that have greater payroll means that the owner is responsible for everything that happens at the business.

Business Strategies in Business Development

A business strategy is a profile of behavior and judgment that a company plans in order to reach its aims and objectives. It usually defines the necessary things that are needed in a brand so as it reaches its goals.

Business strategy is important because of the following reasons:

  • It helps you to plan your enterprise by looking on each step.
  • It helps one to identify strengths and weaknesses of your business
  • It allows one to grant your enterprise resources needed so that you get to plan ahead.

Components of Business Strategy

  1. Core values
  2. Aims, Objectives and Visions
  3. Tactics
  4. Plan on Resource allocation
  5. Measurement

Examples of Business Strategies in Business Development

  • Grow sales from new products
  • Improving customer service
  • Target your market
  • Pricing strategies
  • Sustainability
  • Technological Advantage
  • Product Differentiation

Conclusion

From the above article, it clearly shows the main aim of Small Business Development and how to start a business. Following all the guidelines in developing your business, always yields good results. Tips on how to start a business, acts as a clue on how to have a successful business.