How To Effectively Use Business Cards to Knowledge Network Your Small Business

I admit I'm guilty of collecting lots of business cards and failing to tap into the expertise and experience of the people I've just met. It seems the act of small business networking often boils down to exchanging business cards. And, that's where it begins and ends, card collecting, not business building via networking.

What's on the Card?

If gathering business cards for the purpose of sending someone an email, giving them a call, sending a text or doing some social networking is your goal, then all you're looking for is contact information. That may technically qualify as small business networking but it's not "knowledge networking".

To gain more business in today's marketplace, it takes more than gathering cards and making contact. It takes connecting. So, what you're looking for is more than information to insert into your contact management system. You're looking to learn something about the business and it's expertise and experience. Use the business card as a resource to do the research you'll need to effective network with the person you've just met.

Who Needs the Card?

Well, maybe you do to solve a problem you're experiencing in your own small business. Chances are you've exchanged business cards in the hope the person giving you the card needs your product or services in their business right now!

All in due time, but it may serve you better to learn enough about the business you now have a card for so you can pass it on to another small business owner who, in fact, has a problem they want to solve right now. Exchanging business cards at an event is the perfect starting point for building your own referral network.

Where is the Card?

The first challenge of an active business networker is location. Yes, where do you put the card so it doesn't end up as part of that pile of cards you've collected and never contacted and, certainly never passed on to someone else who could benefit from it to solve a problem they have.

As fast as it possible, you need to get the basic information and how it can help another small business in front of others. Doing that makes the information available to yourself and others. There's no reason you can't do some quick research and feel comfortable posting the core information to the appropriate social media network. By getting the business card, I don't mean the email address and cell phone number, in play everybody wins. Simply provide a quick comment about the person or business and the business area they provide expertise and experience in.

Card Problem Solved

The biggest problem many of us have with small business networking is not doing something with the business card we've collected and not gaining any new business as a result of the business card networking we've done.

The solution is found in networking the business expertise and experience embodied in the business card we've collected by passing it on to others. By doing so you eliminate the guilt of adding one more card to the pile on our desk without doing something with it.

Plus, let the person you exchanged your business card with know that you have passed it one and are actively networking them. The appreciation you gain from them over time will get you a lifetime of referrals as you expand your small business knowledge network.

Various End-Games for Businesses and Why You Should Know Yours

Knowing what your end-game is for your business will help you determine the business structure that is right for you now and in the future. The major variables that determine your best end-game include the size of your business, the amount of assets and liabilities, your desire to maintain control and your desire to liquidate ownership. Obviously, as a business owner, you want to limit the complications, the expenditures and the liabilities while maximizing your tax benefits. These goals exist when the business is created, but also extend to the "end-game" of your business. And just like selecting which business entity is best for you at the creation of your business, the end-game you choose for your business will affect the liability, the tax benefits and obligations, the expenditures and the complications.

The major end-game options are:

(1) Take your business public through an IPO (initial public offering).

(2) Sell the business in its entirety.

(3) Sell the assets from the business and dissolve the remaining entity.

"Going Public"

Taking your business from a private company to a public company through the process of an Initial Public Offering can help you raise exponentially more money to use in your company than other avenues. Access to more money provides the means to grow your business, or "cash out" your ownership. Raising money for a public company is much easier that raising money for a private company. And if you, as the owner, wish to liquidate more of your ownership, it is much easier to sell your ownership through selling shares in the stock market than to try to sell the entire company and/or assets.

However, the process of taking your business public is expensive and complicated. Also, not all types of business entities can become public without first merging with another entity that can become public. Further, after your business becomes public, your business will then be subject to transparency requirements from the Securities Exchange Commission. Most of these requirements involve reporting and filing your financial information publicly. Another consideration is the amount of control you wish to maintain in your business. When your business becomes public, there will be a board of directors that will make all the business decisions. It is possible to be on the board of directors, however, that is more limited than being the owner.

Selling the Entire Business

Another alternative end-game is simply to sell your business. Doing so transfers all the assets, liabilities, clients, etc. This is an easy and seamless process if your business is small with few assets. However, with a larger business that has many assets, the process may become time-consuming, complicated and costly to switch over the assets and liabilities. The liabilities the purchaser inherits include the potential lawsuits that may arise from the business's prior actions. In most cases, purchasers will prefer an asset purchases so that they don't have to acquire the selling liabilities. That issue will be one for the buyer and seller to negotiate.

Sell the Business Assets and Dissolve the Remaining Entity

Selling the business assets and dissolving the remaining entity is another option. Depending on the amount of assets once again, this process may be easy or it could be complicated. However, as mentioned previously, purchasers sometimes prefer this because they are essentially purchasing the business without inheriting any of the liability.

Learn How To Recover From Business Insolvency

Business insolvency numbers has hit record high in February 2012. According to the Australian Securities and Investments Commission or ASIC, 1,123 businesses entered administration in February compared to 518 businesses in administration last January 2012. Furthermore, 449 businesses had to undergo court wind-ups in February 2012 compared to 79 businesses the previous month.

Insolvency is a difficult situation for any business. Insolvency is generally described as a company's inability to pay its debts and other liabilities. An insolvent business has insufficient funds to pay its creditors despite liquidation through selling all assets and is unable to generate new funds through capital markets. Insolvency is caused by many factors including an ineffective business model, capital market values, competing technologies and poor cash flow management.

If your business is facing insolvency, it is crucial to take immediate action if the business is to survive. Directors must be wary of trading while insolvent as they will be held liable for insolvent trading in which civil or criminal penalties may apply. In this article, we provide some guidelines on how you can save your business from insolvency and continue operating legally.

Manage your cash flow

Cash flow management can be especially difficult when the business is already in financial distress. However, proper cash flow management is crucial if you are to recover from insolvency. To drive your cash flow, follow up on late payments of your customers and implement a shorter credit term for future contracts. Implement penalties for late payments to put some pressure on your customers to pay on time. It can also help to delegate a staff member to focus on follow-up and collection of payments.

In managing your cash flow, it is also important to manage the competing priorities for payment. Priority for payments will be payroll, suppliers as you need them to keep your business operating, then followed by ATO payment plan and others creditor's payment plans.

Consider business restructuring

A business restructure is when a company reorganises its ownership, legal structure, assets and debts, business model, cost structure and ways of doing business. A restructure can be a positive way to respond to insolvency as it allows the business to generate new revenue, making the new company more effective and efficient while keeping the core business intact.

If you see business restructuring as a viable means to recover from insolvency, discuss your requirements with a business turnaround specialist or insolvency specialist as they can help you establish restructuring strategies to meet target operating profits and target cost structure. They can also assist in the implementation and monitoring of the agreed business restructuring strategies.

Seek professional help

Insolvency does not always lead to bankruptcy as some businesses are able to recover and successfully increase their profitability. However, this is not always the case for many businesses facing insolvency as seen in the record number of 449 businesses winding up in February 2012. If your business is at risk of insolvency, do not hesitate to get the help of a professional business turnaround specialist as they can give you the assistance you need to save your business. A turnaround specialist is an expert in negotiating with debtors, debt and cash flow management, business restructuring and business recovery and can help you avoid the pitfalls that other insolvent businesses has fallen into.