North Consulting Services

10 Ways To Improve Office Environment

koenig.jeffrey — Fri, 10 Dec 2021 11:00:00 +0000

North Consulting Services

10 Ways To Improve Office Environment

10 Ways To Improve Your Office Environment

The happier you and your employees are, the more successful your small business will be. One of the best, and easiest ways to ensure you and your employees enjoy coming to work everyday, is to create a pleasant and enjoyable office environment. At North Consulting Services we have compiled a list of some of the most useful ways you can improve your office space, and promote business growth.

1. Proper Lighting

A dark and dingy office can leave employees uninspired and unproductive. Having a workspace that is properly lit can improve morale and productivity. One of the best ways to do this is by allowing as much natural light into the workspace as possible. A study at Northwestern University found that workers exposed to natural lighting enjoyed better sleep at night. Being well rested is key to increasing productivity the following day.

If your office or place of business does not have natural lighting, adding extra lamps around the office helps keep the space adequately lit.

2. Organize Workspace

A desk overflowing with papers and office supplies can lead to an inefficient, and ineffective workspace. By adding an effective organizational system, you can decrease clutter, allowing you to focus on your work. We recommend including an effective filing system, as well as an organized storage space for supplies, to help clean up your work area and increase your productivity.

Organizing is important, not just with your office supplies, but with tasks and planning as well. If you have a startup business, we offer startup consulting services to assist you in ensuring your business stays organized and continues to grow.

3. Reduce Distractions

It’s only natural for us to get distracted from time to time. If you want to minimize distractions, ask for, or create a workspace that is quieter and more secluded from the rest of the office. If your office has an open plan workspace, listening to music with noise cancelling headphones can help you stay focused and avoid noisy distractions.

Additionally, closing all non-work related tabs on your computer, and silencing or turning off your phone can help you stay focused on the task at hand.

4. Leave Your Computer

Staring at a screen for eight hours a day can take its toll. Some people elect to get blue light glasses to help their eyes from the strain, but that can only help so much. If you feel your eyes straining from the screen, we recommend looking away for awhile.

Even a small break from the screen can help your eyes and brain readjust. If that doesn’t help, try having a quick chat with a coworker or doing something productive away from the computer to help you readjust and refocus.

5. Personalize Workspace

Your desk allows you the opportunity to showcase your personality. Most desks are generally unattractive on their own, and by adding some personal photos, plants or other decor you can express your personality. You will be spending forty hours or more a week at your desk, so giving your desk a personalized feel can help improve your mood and productivity.

6. Get To Know Your Coworkers

Considering you will typically be at the office forty hours a week, you’re likely to interact with your coworkers or employees as much as your family. Taking the time to get to know them can lead to a better overall environment and help you understand your similarities and differences. It is much easier to work with someone who understands you, and vice versa.

Being able to effectively communicate with coworkers and employees is key in helping your small business grow. If you’re looking for additional ways to grow your business we recommending hiring a small business consulting service.

7. Add Color To The Office

Most office buildings are built with plain taupe walls and grey cubicles. An uninspiring environment can lead to uninspiring ideas, and uninspired employees. Bright, vibrant colors are proven to make people happier. Painting the walls or adding colorful decor to the office is a great way to improve employee’s moods. Happier employees can lead to business growth.

8. Make The Office Comfortable

Most people who work in an office sit down while working, so it’s important to be comfortable. Upgrading the furniture in your office to something that is durable and comfortable can go a long way. Additionally, upgrading to a new office chair can help improve your posture, as well as alleviate some of the neck and back pains associated with sitting down for an extended period of time.

In conjunction with comfort, having a clean, pleasant smelling office can provide you and your employees with a more enjoyable workspace. If you do not have the time to clean the office yourself, you may want to hire a professional cleaning service.

9. Add A Recreation Area

Sitting at a desk for eight hours a day can be tiresome and grueling. Adding a recreation area to your office gives employees a place to decompress, as well as stay active. If you don’t have the room to add a separate recreation area to the office, you can add a table game like a ping pong or foosball to the break room to help encourage your employees to stay active.

10. Avoid Micromanaging

Employees who feel trusted and supported, without being micromanaged, are more relaxed and confident about the job they’re doing. Employees who feel like they are under a microscope perform differently, and may begin to resent their job. Remember why you hired your employees in the first place, and trust that they will do the job you hired them to do.

Conclusion

A happy and pleasant work environment has been proven to be conducive to business growth. Incorporating some of the ideas listed above can create an environment that you and your employees enjoy coming to everyday. If you would like to know more about how you can improve your office environment, or have any other questions about growing your small business, please CONTACT US at North Consulting Services.

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6 Reasons To Add A Blog Post To Your Website

koenig.jeffrey — Fri, 03 Dec 2021 11:00:00 +0000

North Consulting Services

6 Reasons To Add A Blog Post To Your Website

As a small business owner, you may wonder if it’s worth the time and effort to maintain a blog on your website. However, if you want to increase the visibility and credibility of your small business, blog posting can be a good place to start.

With the majority of people doing their research on the internet, a blog post can inform potential customers about a topic, and potentially increase business growth. Here are six reasons why you should add a blog post to your small business’s website.

1. Drive Traffic

When people search for a certain term, it’s almost exclusively done on Google. According to multiple studies, only 25 percent of users go to the second page on Google’s search results. Adding and maintaining a blog post informs Google that your website may be relevant to certain terms that people search, and therefore will place your website higher on their list.

The higher your website ranks on Google, the more likely your website will get visits; more visits can potentially lead to more sales.

When writing a blog post, make sure to provide useful information to help people learn about the topic. Producing thoughtful and knowledgeable content shows your audience that you know what you’re talking about, and shows Google that your website is relevant and informed about that topic. If your blog post is engaging, people will spend more time reading it, a key contributor to search rankings.

2. Social Media Content

Social media is a part of every day life. According to statista.com, over 3.6 billion people had a social media account in 2020. Obviously, not all of those people will be your target audience, but posting on social media can help get the word out about your business.

Sharing a blog post on social media is a great way for your audience to see your content, and provides a direct link back to your website. Another great thing about posting a blog to social media is that it has the chance to be shared by others, increasing your potential customer base.

3. Build Credibility

Consistently writing blog posts about topics that your small business understands, can show your audience that you are an authority on the subject. This can be particularly beneficial if you run a startup business, as blog posts can inform people that your startup is reputable and credible. At North Consulting Services we offer startup consulting and can assist you in building credibility for you and your brand.

When writing a blog post, make sure it is interesting and helpful. A helpful and informative blog post shows your audience that you’re not just trying to sell a product or service. According to a report, 47 percent of buyers view three to five pieces of content on a website before engaging with a sales representative, so having multiple posts about different topics is important.

The more interesting and informative your blog posts are, the more credibility you and your website have. Again, this looks good to Google, and can potentially lead to your website ranking higher.

4. Generate New Leads

Blog posts are not only a great way to inform your audience, but provide you the opportunity to increase sales. Blog posts give you the opportunity to generate new leads.

Creating a call-to-action in the blog post encourages viewers to engage with your business. A call-to-action can be anything from a free ebook, webinar, consultation or a quote. A call-to-action generally requires a customer to leave their contact information, giving you the chance to follow up and potentially covert a lead into a sale.

5. New Content

Aside from updating contact info or changing the price of a product or service, most small business owners’ websites tend not to change. A website that isn’t adding new content will likely see less traffic than one that does, because Google typically does not rank “stale” websites as high.

Producing fresh content, coupled with keeping all of your business’s information current can go a long way to increasing your search ranking. Additionally, consistently adding new, informative content to your website can tell your audience what your business does, as well as show them that your business is up-to-date.

6. Long Term Results

To start seeing long term results you will need to post consistently. Creating blog posts that target specific keywords and subjects can help your website to start ranking consistently on Google, and increase your audience. With an increased audience, you are more likely to see a higher volume of sales in the future. An older blog post that’s well written can continue to generate traffic for your website.

Conclusion

It is important that your website be viewed by as many potential customers as possible. Blogging can be a great way to be seen by your audience, and that visibility can potentially help you grow your small business. If you would like help incorporating a blog post to your website, or have any other questions related to your small business, please CONTACT US at North Consulting Services.

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10 Best FREE Apps For Starting A Small Business

koenig.jeffrey — Fri, 26 Nov 2021 11:00:00 +0000

North Consulting Services

10 Best FREE Apps For Starting A Small Business

10 Best FREE Apps For Starting A Small Business

The apps on this list operate on what is known as the “freemium model”. This is a business model that offers basic features to users at no cost and charges a premium for advanced features. Companies using a freemium model often offer a “free trial” of their premium subscriptions in the hopes the user will eventually elect to use the paid subscription.

Canva

Canva is graphic design platform used to create social media graphics, presentations, posters, documents and other visual content. Founded in 2013 in Perth, Australia, Canva had over 750,000 users by the end of this first year. Users of the site can create their own content, using templates already designed by Canva.

Much like the like other apps we will mention in this list, Canva offers a paid subscription called Canva Pro. Depending on the size of your team, prices can be anywhere from $119.99/year to $2,819.99/year for Canva Pro. The Pro version offers everything the free version does, plus some extra functions:

Ability to remove backgrounds on images
Magic Resize: Allows you to create one design and resize it to the correct format for social media and printing
Brand Kit: Allows you to upload logos, fonts and colors and apply them to all templates for brand consistency

Using a design platform like Canva can help your startup business create the right logo and branding to get your business off the ground.

Notion

Notion is a platform that provides businesses with notes, databases, kanban boards, wikis, calendars and reminders. Founded in 2016 by Notion Labs Inc, a startup business in San Francisco, it did not become popular until 2019. It was founded on the idea of creating an “all-in-one workspace”. Essentially, Notion is a file management tool.

Notion has a four-tier subscription model: free, personal, team, and enterprise. The personal subscription is $4/month and offers everything the free subscription does, but includes unlimited file uploads and unlimited “guests”. The team subscription is $8/month and offers unlimited team members, a collaborative workspace, sharing permissions and admin tools.

Zoom

Over the past year and a half most of us have become quite familiar with Zoom. We have also been accustomed to having to restart a video call after forty minutes. Zoom was originally founded in 2011, but did not take off until early 2020. The free version of Zoom allows you to have up to 100 participants in a call, with the aforementioned forty minute time limit. It also allows you to have unlimited one-on-one meetings up to thirty minutes.

If your small business opts for Zoom’s “Pro” subscription, it is $14.99/month. The Pro plan allows you to have up to 1000 participants, group meetings up to thirty hours long, stream the call on social media and add 1GB of cloud storage for recordings. They also have a “Small Business” subscription which is $19.99/month and includes everything the Pro plan does, plus recording transcripts, managed domains and company branding.

Dropbox

Founded in 2007 by MIT student Drew Houston, Dropbox has become one of the largest file management services in the world. Houston conceived the concept of Dropbox after repeatedly forgetting his flash drive while he was a student at MIT. As of April, 2021 Dropbox has over 700 million registered users.

The free version of Dropbox offers up to 2GB of file storage. It allows you to send links where people can store or access information that would otherwise be too large to send in an email. Dropbox also allows you to automatically backup your entire website and is an integrated backup solution for other software suites.

Dropbox has over 15 million paying users, and offers three different paid subscriptions: professional, standard, and advanced.

Professional: $16.58/month and up to 3,000GB of storage for a single user
Standard: $12.50/month per user and up to 5,000GB of storage for three or more users
Advanced: $20/month per user and unlimited storage for three or more users

Google Docs

Google Docs is an online word processor provided by the tech giant Google. Originally released in 2006, Google Docs is now a part of Google’s G Suite, which has over 2 billion users. Google Docs offers a word processing program, a slideshow builder (Google Slides), a spreadsheet builder (Google Sheets) and a survey builder (Google Forms). These programs are all free to use for anyone who has a Google account.

Google Docs is included with Google Workspace, which is a an all-in-one business platform offered by Google. Subscriptions start at $6/month and includes Google Docs, as well as other features:

Gmail
Google Drive (storage)
Calendar
Chat
Sites
Meet (video conferencing)

PayPal

Founded in 1998 by Elon Musk and a handful of other investors, PayPal has become one of the biggest financial technology companies in the world. PayPal’s main functions are supporting online money transfers and payment processing for online vendors and auction sites. It offers personal and business accounts, which are both free to sign up for.

While a business account is free to have, PayPal does charge your small business 2.9% of each payment you received, plus an additional 30 cents per transaction. Additionally, PayPal will often hold funds for 72 hours before they are transferred to your account. With the personal account, you do not have the ability to use PayPal as a payment processing tool.

Trello

Trello, which is derived from the word ‘trellis’, is a another kanban-style list-making application. It was founded in 2011 by software engineers Joel Spolsky and Michael Pryor. Users create task boards with different columns and move the tasks between them. The columns are typically To Do, Doing, and Done. This allows your small business to easily organize and understand and where in the process a certain task is.

Trello is often used by businesses who employee virtual assistants (VA), as both they and their VA can see in real-time what needs to be done.

Trello offers two paid versions of their platform: standard and premium. The standard subscription, much like the other apps on this list, includes everything that the free version does, plus some additional functions. The premium plan adds more functionality for $10/month, and this subscription offers a free trial to first time users.

Trello can be particularly helpful to those with a startup business because it allows you to organize and manage tasks as you grow your small business.

Wave

The only Canadian app to make this list, Wave is a financial service and software company founded in 2011. Initially they started as a free online accounting software service, but in 2012 began branching into financial services like credit card and payment processing.

Wave’s accounting service is their most widely used feature. Wave accounting offers a plethora of features including:

Unlimited bank and credit card connections
Unlimited income and expense tracking
Unlimited customizable invoicing and receipt uploads per month
Bill and invoice reminders

Wave also offers invoicing for free, making it easy for you to track what has been paid, and still needs to be paid. For many startup business, keeping track of spending can be difficult. Wave’s invoicing service can help you manage your spending and focus on growing your business.

Their accounting and invoicing services are still free, but similar to PayPal, they charge for their credit card and payment processing service:

Credit Card Process: 2.9% plus 30 cents per transaction for Visa, MasterCard and Discover. 3.4% plus 30 cents per transaction for American Expres
Bank Payments: 1% per transaction ($1 minimum fee)

Wave also offers a monthly payroll service which is $35/month, plus $6 per active employee, plus $6 per independent contractor paid.

Mailchimp

Founded in 2001, Mailchimp is a marketing automation platform and email marketing service. Its main functions are to help businesses manage their mailing lists and create email marketing campaigns and automations to send to customers.

The free version of Mailchimp includes marketing customer relationship management (CRM), creative assistants, landing pages and basic email templates. For $9.99/month you can upgrade to the ‘Essentials’ subscription. This adds free custom branding, A/B testing and 24/7 email and chat support.

Zoho CRM

Zoho CRM is a customer relationship management service offered by Indian based online office suite, Zoho. Originally founded in 2005 as a web-based word processor, Zoho has branched out to offer many services similar to those of Google. You can actually find Zoho CRM on the Google Workspace Marketplace, and it allows you to bring all your emails, files, calendar appointments and tasks together in one place. However, Google and Zoho remain separate, competing companies.

There are five different subscription levels to Zoho CRM: free, standard ($14/user/month), professional ($23/user/month), enterprise ($40/user/month), and ultimate ($52/user/month). According to PCmag, Zoho CRM is the top rated CRM software on the market today.

In Conclusion

Whether you’re a startup business, or looking to grow your current business, using technology and automation can help your small business continue to grow. If these apps don’t sound right for you, we offer startup and growth consulting services to help you pick the right software for your small business. If you have any questions regarding business operations, please contact us at North Consulting Services.

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5 Tips For Naming Your Small Business

koenig.jeffrey — Fri, 19 Nov 2021 11:00:00 +0000

North Consulting Services

5 Tips For Naming Your Small Business

5 Tips For Naming Your Small Business

While some entrepreneurs have a name that comes to them immediately, most struggle to come up with the right name for their small business. Whether you invent the company’s name yourself or hire a small business consulting firm to help, the following tips will ensure your name represents your brand well and sets you up for years of success.

1. Easy To Spell

According to a survey conducted in 2009, “well over 50 percent of Americans and Brits earn low marks on a spelling test made up of everyday words such as ‘accidentally’ and ‘friend’.” Unless your company is targeting subject matter experts, make sure when naming your small business, the name is as easy to spell as possible.

2. Domain Availability

A domain is your website’s address or URL. Making sure you get the .com version of your company’s name is important. The more succinct the URL, the better. Visiting a site like GoDaddy, who sells domains, will let you know if a site is taken. If the website is taken, sometimes you can arrange to buy the site by contacting the owner directly or by using a broker. When you are buying the .com name, it might be worth buying the .net, .org, and .biz names at checkout. This can offer cheap insurance by protecting against any copycats or potential misunderstandings down the road. Make sure you redirect all extra domain names to point at your main .com URL.

3. Make Sure It Is Not Trademarked Or Incorporated

A Google search, combined with a more detailed search on USPTO.gov will help you figure out if the name you want is protected intellectual property. Staying away from anything similar to currently protected words is a best practice. Checking with a lawyer can ensure you that you’re not infringing upon someone’s intellectual property rights. The department of financial institutions in your state can verify there are no companies with a similar name operating in your state.

4. Your Name Should Have Meaning

Companies like Google and Kodak picked names that started out as meaningless words, but they have spent millions of dollars to establish their brand identity and ensure their name is synonymous with their industry. While inventing a word can be incredibly powerful, if pulled off, most small business coaches agree that you will sink in marketing expenses before the name establishes any traction.

At North Consulting Services, we suggest conveying meaning with your name. Companies like Ticket Master named their company effectively by describing what their business does and evoking a feeling in their clients. This naming strategy can help attract clients by defining your business’s services without further need to investigate and can even help with search engine optimization (SEO).

5. Test Your Name

Unless you hire a small business consulting firm or an advertising agency, it is best to test your name with family, friends, or even a focus group if finances allow. Testers should be asked to spell the name, what thoughts the name evokes, and if they would consider doing business with that company solely based on the name. A quick Google search will also warn you if the name is negatively associated with an event, a prior company, or means something undesirable in slang or another language.

In Conclusion

Making sure you are happy with the name of your small business is important. Hopefully, your idea will blossom into a business that lasts generations. If you are having trouble thinking of a name for your company, try using a thesaurus or a word generator for inspiration. If you are still having trouble or are interested in naming your small business as a client of our small business consulting firm, please contact us.

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Should My Small Business Obtain A Patent?

koenig.jeffrey — Fri, 12 Nov 2021 11:00:00 +0000

North Consulting Services

Should My Small Business Obtain A Patent?

Should My Small Business Get A Patent?

Many small businesses have a product or design that is unique to their industry. Business owners may look to obtain a patent to ensure no other competitor can use their product or design, but is it a good idea? Hiring a small business consulting firm, and a lawyer can help you answer this question. We look at the two types of patents small business owners use, as well as the pros and cons of obtaining a patent.

Two Types Of Patents

There are three types of patents that a business or individual can apply for, but only two are commonly used: Utility and Design. The third is a plant patent, but it does not apply to the majority of business owners.

Utility Patent

A utility patent is the official name given to a patent for an invention. This patent protects how a specific item or invention works. To be considered for a patent, the invention must provide an identifiable benefit and function. For example, the radio in a Toyota® Prius is protected by a patent. This means that no other automaker may reproduce this specific radio without Toyota’s consent. The image to the right shows the original utility patent for the Barbie doll.

Utility patents are the most common patents issued by the United States Patent and Trademark Office (USPTO). There are five categories that fall under a utility patent: process, machine, manufacture, improvement and composition of matter. A utility patent lasts up to 20 years, and after the patent expires, it can be re-applied for. Additionally, fees must be paid periodically in order to maintain the patent. The current USPTO fee schedule is as follows:

3-3.5 years: $2,000 for large entities and $1,000/$500 for small/micro entities
7-7.5 years: $3,760 for large entities and $1,880/$940 for small/micro entities
11-11.5 years: $7,700 for large entities and $3,850/$1925 for small/micro entities

Design Patent

A design patent does not protect how an item works, rather how it looks. This patent only can only be obtained for three dimensional items, meaning items such as drawings and paintings cannot be patented, only copyrighted. This patent can only be issued for an original design, and cannot be used for a functional item. Furniture, beverage containers and computer icons are examples of objects that can be covered by design patents. The image to the right shows the patent filed for the original Coca-Cola bottle design.

Design patents are issued in shorter terms than a utility patent. The design patent lasts up to fourteen years, but unlike utility patents, are non-renewable. Additionally, they will not be issued if your design has been published or sold previously. If you are running a startup business, you could consider obtaining this patent as this can you can give your startup business a leg-up on your competitors.

Pros Of A Patent

Your invention or design is exclusive to you
Your invention or design cannot be reproduces, manufactured or sold without your permission
Allows you to further advance your product and increase it’s value over time
Can be a valuable asset for small business growth
Rights can be sold or licensed by royalties (you can charge more as you have complete control over the product)
Allows you to invest more funds into the product as no one can copy it without infringing
Provides credibility to your product and your small business

Cons Of A Patent

The exclusive rights are only exclusive in the are you filed (you must file a separate application in every area you want exclusive rights, i.e different countries)
You must disclose all details of the product, including how it operates, and this info is public and available to competitors
It can be expensive, there are many fees associated with applying for and maintaining a patent
If someone infringes upon your patent you must be will to defend it
A patent is very particular to your product, so large competitors can replicate your product with enough differences to be legal
Once the patent expires, anyone can use your product, otherwise you must apply to have the patent reissued (utility patents only)

Is It Worth It?

Patents can be extremely useful for a variety of different reasons, but you may be questioning whether or not it makes sense for your small business. The biggest factors to consider are time and money. If you do not want to go through the process of obtaining a patent for your product, you may consider applying for a copyright instead. If you are unsure whether or not a patent makes sense for your product, please contact us at North Consulting Services for a cost-benefit analysis.

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Why Hire A Domestic Virtual Assistant For Your Small Business

koenig.jeffrey — Fri, 05 Nov 2021 11:00:00 +0000

North Consulting Services

Why Hire A Domestic Virtual Assistant For Your Small Business

Why Hire A Domestic Virtual Assistant?

Time is money. Your small business can only do so much in the workday, and if you find yourself in need of extra help, you may want to consider hiring a virtual assistant. As internet infrastructure improves, so has the ease of hiring a virtual assistant. Last week we discussed hiring a foreign virtual assist, but this week we will discuss why hiring a U.S.-based virtual assistant may be beneficial for small business’s growth.

What Is A Virtual Assistant?

A virtual assistant (VA) is someone who provides support to your small business from a remote location. They can provide many different services to help support you and your clients. VA’s can be employed within the U.S. or anywhere in the world. Many are willing to work unique hours to meet the needs of your small business. Virtual assistants do many of the tasks a personal assistant would do, but remotely. This allows you to hire from a national or international talent pool and avoid overhead of an office of employees.

Reasons To Hire A Domestic Virtual Assistant

It is true that foreign virtual assistants can cost less, but a possible lack of communication and knowledge of American culture could cause issues. U.S.-based virtual assistants can help you combat many issues associated with hiring a foreign VA. There are websites like Upwork, which can assist you in finding a US-based virtual assistant who’s right for you. If you have a startup business, you may want to hire a virtual assistant to allow you more time to focus on getting your business off the ground. We offer startup consulting services to assist you in ensuring your startup business has the infrastructure to prosper.

1. No Time Zone Issues

Businesses need to run efficiently, and having a virtual assistant who lives halfway around the world can make it difficult to connect with them. Last minute tasks, having your virtual assistant present at a meeting or daily phone calls are much easier to coordinate within U.S. time zones. This allows you to schedule tasks and meetings at a time that’s convenient for both you and your domestic virtual assistant.

2. No Language Barrier

For many foreign virtual assistants, English is not their first language. This can make it difficult to effectively communicate with a foreign VA, and in turn, make it difficult for them to effectively communicate with you and your clients. Hiring a U.S.-based virtual assistant avoids this potential obstacle, and ensures that language isn’t a barrier to communication.

3. No Cultural Barriers

Each country has it’s own unique culture, regional dialects and traditions. A foreign virtual assistant may not know enough about U.S. culture, or the culture of a specific region in the U.S., which could result in issues in understanding American money, accents, travel, pop culture, slang, measurements or media. An American virtual assistant will most likely understand American culture better than a foreign VA. This knowledge can reduce the amount of explaining or information you’ll need to provide to get tasks done properly the first time.

4. Supporting U.S. Employment

Hiring a domestic virtual assistant will likely cost more when compared to hiring a foreign VA, but you will be supporting U.S. employment. It tends to look better to clients or customers when a small business employs U.S. workers, and this could potentially increase your sales. While employing strictly American workers could increase the cost of your services or products, many people are willing to pay a higher cost to support a small business.

Common Services Provided By A Virtual Assistant

Graphic Design
Social Media Management
Customer Service
Recruiting
Administrative Work
Bookkeeping
Data Entry
Public Relations
Online Marketing

In Conclusion

Hiring a U.S.-based virtual assistant allows you to avoid possible issues with timeliness and communication, while supporting American jobs. If you are looking to hire a virtual assistant for your small business, or have small business coaching needs, please CONTACT US at North Consulting Services.

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Hiring A Foreign Virtual Assistant For Your Small Business

koenig.jeffrey — Fri, 29 Oct 2021 11:00:00 +0000

North Consulting Services

Hiring A Foreign Virtual Assistant For Your Small Business

Hiring A Foreign Virtual Assistant For Your Small Business

There is only so much that can be done in a workday. If you, or your employees do not have the time, consider hiring a virtual assistant. With improved global internet infrastructure, it has never been easier to hire a virtual assistant. They can help accomplish many of the tasks you do not have time to do and ensure that you have the time necessary to help with the growth of your small business.

What Is A Virtual Assistant?

A virtual assistant (VA) is someone who provides remote administrative, technical, or creative support to you and your clients. They are similar to personal assistants, but are independent contractors who work from anywhere in the world. Many virtual assistants work as freelancers, while others are employed by agencies. Virtual assistants can offer over 100 different services that are tailored to help your small business grow.

Why Hire A Virtual Assistant?

Virtual assistants are there to help you with tasks you simply cannot, or do not have the time to do yourself. Hiring a virtual assistant allows you to delegate less important tasks such as sending emails, internet research, technical support, scheduling meetings and data entry. Employing a team of virtual assistants can allow you to offer 24/7 customer support to your clients, allowing your business to service any timezone.

Many virtual assistants come with a wealth of experience, and many already support multiple businesses. This experience can allow you to get a unique insight into the best industry practices, providing you the opportunity to further improve and grow your small business. Because VA’s work remotely and are generally independent contractors, you can save on costs such as holiday/sick days, recruitment and training costs, and office modification costs for a new employee.

It is important to prioritize your time wisely and maintain an effective work-life balance. Hiring a virtual assistant can allow more time for you to focus on important work while also allowing you more time to focus on friends and family.

Why Hire A Foreign Virtual Assistant?

There are plenty of virtual assistants you can hire in the U.S ., but one of the most common places to hire a VA from is the Philippines. Employee turnover is the enemy of any business, and countless sources credit Filipino workers as some of the most loyal in the world. With the Philippines being thirteen hours ahead, you are able to assign your VA work at the end of the day, and come back in the morning to a completed task.

Another benefit to outsourcing your VA to the Philippines is that most applicants have an advanced degree, computers and reliable internet making it easy to work remotely. With VA’s working from home, you can substantially save on salary and overhead costs. The average cost of a General Virtual Assistant (GVA) from the Philippines is anywhere from $500-$800 a month. In the US, the average cost of a GVA is $10-$20/hr, saving an average of $1,100-$2,400 a month.

In the Philippines, having an foreign boss can be seen as a way to elevate your social status. The Philippines is considered an “emerging economy”, but it can be hard for many there to find a job. By employing a Filipino worker, you can help them have a steady job and support their family. If you are concerned about a possible language barrier, most Filipinos speak American English. There is a website specifically designed for hiring Filipino workers, which can help you find the perfect candidate for your small business.

By outsourcing your VA to a foreign country like the Philippines, you can save on costs for your business while simultaneously finding a hard worker who wants to do their best to help your small business grow.

How To Communicate With Your Virtual Assistant

Your virtual assistant will be working remotely, which means communication could be more difficult when compared to having an in-office assistant. Fortunately, there are numerous virtual assistant software tools built specifically to help you communicate and work with your small business team.

Emailing has long been the traditional method for people to communicate in business, but it is a slow process and can waste time. One of the most popular intraoffice communication tools is Slack. Over 750,000 businesses use Slack, and it uses “channels” which are essentially group conversations that revolve around a set topic. These channels give your VA, and other people on your team an easy, organized way to communicate. By adding a VA to your company, you can use Slack to contact them directly, and if you’re out of the office, someone from your team can contact them directly as well.

It is hard to meet face-to-face with a foreign virtual assistant. Using tools such as Zoom or Microsoft Teams, can allow you to conduct “face-to-face” interviews with potential applicants as well as continue to communicate with them as employees.

When deciding what software tools are best for your small business, considering hiring a small business consulting firm to assist you in your decision.

In Conclusion

Hiring a foreign virtual assistant can be a force multiplier for your company, at a fraction of the cost. If you are unsure whether hiring a foreign, or US based virtual assistant is right for your small business, or have any other questions, please CONTACT US at North Consulting Services.

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10 Ways To Improve Morale At Work

koenig.jeffrey — Fri, 22 Oct 2021 11:00:00 +0000

North Consulting Services

10 Ways To Improve Morale At Work

10 Ways To Improve Morale At Work

Millions of Americans go to work every day, but many are not happy in their work. Improving the morale of your employees can boost productivity and improve the overall efficiency of your small business. In today’s discussion we will look at ten different ways to improve morale in the workplace.

1. Promote A Work-Life Balance

One of the best ways to improve morale at work is ensuring that your employees have plenty of time to themselves. Limiting working after-hours can help significantly improve productivity and morale in the workplace. In a study conducted by Stanford University, economics professor John Pencavel found that productivity per hour declined sharply when a person works more than 50 hours a week. Productivity dropped even further in those who worked 55 or more hours a week.

Steve Glaveski of Collective Campus, an innovation accelerator based in Melbourne, Australia, conducted a two-week experiment in which he had his team work six hours instead of the standard eight. This shorter workday forced the team to prioritize effectively, limit interruptions and focus solely on the task at hand. He found that after these two weeks, many of his employees reported having an improved mental state, and that they had more time for rest, family, friends and other activities. Glaveski also noticed that the team maintained, and in some cases increased, their quality and quantity of work.

Promoting a work-life balance at your small business can be one of the most effective ways to improve morale and boost productivity.

2. Build Trust

Solid relationships are built on trust. This is no different when it comes to the relationship between an employer and their employees. One of the most effective ways to build trust is by letting your employees provide feedback on management decisions. If an employee’s voice is heard and valued, they are more likely to care about the work they are doing, and therefore work more effectively for the company. This works the other way around as well. As an employer, it is important to keep employees in the loop about impending changes within the company. This can prevent employees from becoming jilted if they feel an important decision has been made without them.

Studies have shown that only 12% of employees leave their job for more money, so building trust can ensure that employees feel valued and want to stay and provide their best for your small business.

3. Interact Outside The Office

You’ve probably seen a movie or TV show in which the main characters go on a corporate ‘retreat’. It tends to be a cliche used in movies to show just how well a character is getting along with their coworkers. Events outside of the office, such as a retreat, can be very beneficial to the morale of employees. Whether its a work event, holiday party or a family day, allowing your employees to interact outside the office can encourage creativity and offer a more relaxing work experience.

These events are a great way for employees to connect and learn more about each other. Many work events can be cost-effective as well:

Pancake breakfast: You’ve probably seen local schools hold these throughout the year, but a pancake breakfast can be a cost-effective way for your employees to connect in a stress-free environment as well as by starting the day with a full stomach.
Potluck lunch: Potluck lunches are another way to help your employees connect over a meal. With each employee bringing a dish, it can add variety to your normal lunch routine and give your employees the opportunity to creatively express themselves or introduce coworkers to their culture. Adding a cook-off with the winner receiving a work-based incentive can add more fun to the festivities.
Activity-based: Company retreats or holiday parties can be expensive, so perhaps opt for a more cost-effective work outing like bowling or mini-golf. Activities like this can be fun for employees and offers another chance for employees to get to know each other outside the office.
Charity: Encouraging employees to support local charities through fundraising activities can help build stronger employee relationships and improve morale.
Physical Activity: Physical activity has been proven to make people happier. Taking a walk, or going to the gym while working can improve a persons mood.

4. Offering Benefits And Growth Opportunity

When searching for a career, many people look at the benefits included with the position, as well as the opportunity for growth within the business. Offering employees comprehensive benefits can ensure that they and their families are covered. Benefits do not always have to be just medical insurance; consider offering employees stock in the company. This is a great financial incentive and can let the employee know that they are valued.

An Employee Stock Ownership Plan (ESOP) is a benefit plan that gives your employees ownership interest in your small business. ESOPs encourage employees to do whats best for the shareholders since the employees themselves are shareholders. According to the National Center for Employee Ownership, 14 million Americans are enrolled in an ESOP, and over 6,500 businesses offer an ESOP.

Opportunity for growth does not always have to be in the form of a promotion. While promotions are a good way for an employee to grow, you can also offer them unique and interesting ways to improve their professional skills by providing improvement courses or having them attend a conference. If you are not sure what benefits to offer to your employees, consider contacting a small business consulting firm to help you better meet the needs of your employees.

5. Promote Diversity

By promoting workplace diversity, your employees can feel that their different ideas and opinions are an asset to your business. An article in Forbes notes “an increase in innovation and creativity among a culturally diverse group can create an esprit de corps and the feeling of positive progress for the benefit of the group and the organization”.

Promoting diversity can be tricky. Without a well thought-out and well-researched plan, businesses may end up hiring candidates not because of their qualifications, but because they fit picture the company is trying to create. When looking to promote diversity in the workplace, it is important that every employee must know there is no tolerance for discrimination or harassment. Taking the time to celebrate employee’s differences can go a long way in making each employee feel valued in their work.

6. Encourage Real Breaks

Many of us want to work as hard as possible, but at some point we need a break. Research has shown that only one in five people take a lunch break and that white-collar workers were least likely to take a break. Creativity and innovation tends to happen when people change their environment, and getting away from your desk, even just for a few minutes, can improve creativity and offer another perspective on a project. Encouraging your employees to take genuine breaks can improve their happiness and help them feel recharged and ready to get back to work.

7. Employee Recognition

Everyone likes to be recognized for the work they have done. By recognizing the work of an employee, it can make them feel valued and motivate them to continue doing well. This is one of the easiest ways to improve morale at work, and it doesn’t cost anything.

8. Small Gestures

Another one of the easiest ways to improve morale is by extending small gestures to employees. Giving a small gift, a thoughtful card, or saying thank you is a great way to show an employee you care about them and are interested in their well-being and their life outside of work.

9. Wellness

Mental and physical health are important. The healthier someone is, the better they tend to feel. Many businesses have started offering courses on physical, mental and emotional well-being to their employees. By doing this, it can show your employees that you care about their mental, physical and emotional health. Sitting at a desk for eight hours a day can take it’s toll, and by offering your employees breaks and wellness courses, you can give them variety in their workday.

Another helpful way to encourage employee wellness at your small business is by offering standing desks. Standing desks can encourage an employee to be more active while at work. Standing also burns more calories than sitting, and research has shown that in an afternoon of standing work you burn 174 more calories when compared to sitting. Additionally, 87% percent of people who used standing desks reported increased energy throughout the day. If standing desks, or wellness courses don’t sound like the best options for your small business, consider hiring a small business consulting firm to help you figure out the best strategies to maintaining employee wellness.

10. Plants

It may seem odd, but adding plants to the workplace is one of the simplest ways to improve morale. Research from Live Science has shown that “people who toiled in offices with plants and window views reported they felt better about their job and the work they performed compared to those in windowless offices without shrubbery around”. There is a direct correlation between employee morale and plants in the workplace. Research has shown that “plants do more than just clean the air”, they improve job satisfaction and morale. A study conducted by the University of Queensland concluded that being around plants at the office can boost employee productivity by as much as 15%.

In Conclusion

Businesses know that keeping employees happy is essential to productivity and efficiency. By including some of the ideas mentioned above, you can help your employees feel happy and valued in their work. If you are unsure of what method works best for your small business, or want to discuss other options please CONTACT US at North Consulting Services.

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Complete Guide To Small Business Logos

koenig.jeffrey — Fri, 15 Oct 2021 11:00:00 +0000

North Consulting Services

Complete Guide To Small Business Logos

Complete Guide To Small Business Logos

All brands have a logo. After picking a name for your business, choosing a logo is the next step. Some small business gurus such as David Fogarty will tell you that your logo is not very important when you are first starting and that you can change it later once you prove your product. At North Consulting Services we agree that starting your small business is most important, but starting on the right foot gives you a leg up and saves rebranding expenses later. Your branding does not have to be expensive. It is an important way to build trust, highlight your values and stand out from your competitors.

Your small business’s logo is the first impression for your brand and is a building block from which your promotional materials and website are formed.

Why Does My Small Business Need A Logo?

We like to describe your logo as your business’s avatar. Attracting the right customer to your brand is essential. By matching the style, feel, and aesthetic that is most likely to resonate with your clients, you can increase sales. Logos inform customers about your brand, set the mood of your interaction and set expectations for quality. Logos also offer more opportunity for business growth, and you may want to hire a business growth consultant the help you assess the need for a logo.

Do I Design My Logo Myself?

Some small businesses can save money by creating their own logo with a free program like Canva. There are many YouTube videos dedicated to teaching you how to use sites like Canva. Understanding graphic design can not only help you create a logo, but also serve you well down the road as you move on to more complex branding, advertising, packaging and social media strategies.

While some are confident using their artistic abilities to create their own branding, others would rather hire a professional. Budget conscious small business owners may opt to hire a graphic designer from overseas. With clear direction and an investment in time, many small business owners have had success with this method. If your business prefers to work with someone local, a digital marketing agency might be your best option. Make sure to review their portfolio first, as agencies are often the most expensive option. If you want to work with a local firm but can’t afford an agency, an ad on Facebook Marketplace or Craigslist might find you a freelancer in your area willing to work for less. While this might be less costly, they will not carry insurance and most will not accept a credit card.

Logo Inspiration

In order to start brainstorming ideas, we suggest establishing your brand identity, doing market research and establishing your aesthetic. To make sure your logo conveys your brands personality, you should ask yourself some simple questions:

What is important to my clients?
What problem does this business solve?
What differentiates my business from others?
What would I write if someone asked me to describe my business in one sentence?
If your future customers could write one sentence about you, what do you hope they would say?

Once you have asked yourself some basic questions about your brand’s identity, it is time to survey the market. We recommend making a list of the top ten competitors in your space. We do not suggest to copy them, but rather see what style and feeling they are portraying to their clients. Your survey of your brand identity coupled with your evaluation of the competitive market should give you an idea of what the expectations and image for your brand should be.

Design Choices

Once you have a clear idea of what you want your brand’s logo to convey, you can start on the design. There are many different logo design styles. No singular style is right for everyone, so it’s essential to choose the design style that’s best suited to the nature of your business.

Classic: A classic style logo is simple, yet effective. It can show people that you are a reliable company and have a history of quality work. Classic logos keep it simple, with no crazy graphics, fonts or colors. Famous classic logos include: Tom Ford, Gucci, and Macy’s.
Vintage: The vintage logo style has been a favorite of businesses for a long time. They evoke a feeling of nostalgia and history, which can let customers understand that you care about the history of your business or are selling an heirloom quality product. Brown and beige color palettes work best for this type of logo. Famous logos include: Nespresso , Toblerone, and Cracker Barrel.
Modern: Minimalism is a key component of a modern logo design. Simple and modern designs show your customers that your brand is knowledgable and up-to-date. Famous logos include: Nike, Mercedes-Benz and Jordan.
Handmade: Handmade logos evoke a feeling of quality and craftsmanship. These logos can be fun and youthful or simple and sophisticated. A handmade logo shows people that your business is of the highest quality, and pays attention to every detail. Famous logos include: Burberry, Ghirardelli and Versace.
Sweet and Silly: If your brand is looking to appeal to a younger or casual customer, a unique or quirky logo may be appropriate. A quirky style combined with fun and colorful symbols or illustrations are used to create feelings of warmth and happiness. Famous logos include: Baskin Robbins, Tostitos, and Pinterest.

Types Of Logos

Oftentimes in concert with deciding on the style of your logo, you must determine the type of logo you wish to have. There are seven main types of logos:

Abstract Logos: By using abstract geometric shapes, companies can create a pictorial that represents their brand. Abstract logos are powerful because they can be formatted for use in social media marketing without losing any of their meaning. Famous abstract logos include PlayStation, Spotify and Pepsi.
Mascot Logos: Choosing a cartoon as your brand’s ambassador can be a fun way to create an identity that is relatable to your clients. Brands that rely on youth and operate in the food or entertainment market, can use mascot logos effectively. Famous mascot logos include KFC, Pillsbury and Pringles.
Combination Marks: By including both text and images, combination marks allow a brand to have a graphic supported by text. By having a logo with more than one part, brands can split the design when needing to create a more streamlined look, or for use on social media or packaging. Famous combination marks include Lacoste, Target and Rolex.
Emblem: Often a badge or a crest, emblem logos are comprised of a font inside of an icon or symbol. Often meant to signify or represent meaning, emblem logos can represent a company’s pedigree, be used to represent strength and can look smart on packaging. Famous emblem logos include Starbucks, Warner Brothers and BMW.
Wordmark: Using meaningful, symbolic typography coupled with an on brand color, logos consisting of a test-only typographic can make a powerful statement. While bold, their simple nature makes it very difficult to protect a wordmark logo with a copyright. Famous wordmark logos include Netflix, eBay and Google.
Lettermark Logos: Often confused with wordmark logos, lettermark logos are also text based logos, but are comprised solely of a company’s initials. Some people also refer to lettermark logos as monograms. This style of logo is great for companies with long or complex names that may benefit from a succinct logo. Famous lettermark logos include LG, HBO and CNN.
Pictorial: Sometimes known as a logo symbol or a brand mark, pictorial logos employ an image that becomes synonymous with the brand. Famous examples of pictorial logos include Twitter, Apple and Shell.

What Do Logo Colors Mean?

Logo colors are designed to evoke certain feelings in customers. Consulting the chart above can help you understand how some of the world’s largest brands use color effectively to represent their brand to their clients.

Experts recommend no more than three colors in your logo, with many successful logos having two or fewer. Looking to opposite sides of the color wheel is recommended because opposing colors will contrast well. If you need help picking complementary colors, drawing inspiration from brands you respect or using a color palette generator can be helpful. Your logo will form the base of your brand style guide so make sure the colors will work well throughout your marketing materials and website.

Logo Fonts

If your logo contains writing, choosing the right font to compliment the image or illustration in your logo can help inform customers of the nature of your business. There are four main font types used for logos:

•Serif fonts: Serifs are the “little feet” at the bottom of the letter. This is a classic look and can be used with many designs. Serif fonts work great with vintage or classic designs due to their simplicity and old-fashioned look. Popular serif fonts include: Times New Roman, Garamond and Casion.

•Sans serif fonts: If your business wants a more modern and clean look, this may be the best font for your logo. They are similar to serif but do not contain little “feet” at the bottom of the letters, like the text used in this blog. Popular sans serif fonts include: Helvetica, Proxima Nova and Futura.

•Script fonts: Script fonts are meant to look handwritten. They can be used for classic logo designs, or for something more fun and vibrant. The handwritten style of script fonts evokes a feeling of personalization and class. Popular script fonts include: Broadley, Monarda and Raksana.

•Display fonts: Display fonts are highly decorative and meant to catch the eye. If your business is quirky or unique, display fonts can help showcase your aesthetic to your customers. Popular display fonts include: Brandon Grotesque, Bourton and Spock.

Uses And Sizes For Your Logo

Logos are used to identify your brand, so it will be displayed on every platform you use to market your brand. It is important that the logo you choose can be formatted for social media media platforms, advertising and packaging. Social media can play a big role in reaching your customers, and having the right logo size to fit each platform is important for a professional image.

Below is a chart showing the different logo sizes recommended for the most common social media platforms.

	Image/Thumbnail Posts Size by Pixels (px)	Profile Image Size by Pixels (px)	Cover Image Size by Pixels (px)
Facbook	1200 x 630 px	170 x 170 px	820 x 312 px
Twitter	Min: 440 x 220 px Max: 1024 x 512 px	400 x 400 px	1500 x 500 px
Instagram	1080 x 1080 px	110 x 110 px	N/A
Youtube	1280 x 720 px	800 x 800 px	2560 x 1440 px
Pineterest	1000 x 1500 px	165 x 165 px	N/A
LinkedIn	1200 x 1200 px	300 x 300 px	1536 x 768 px
TikTok	1080 x 1920 px	200 x 200 px	N/A

The cornerstone of many businesses is their website. This is where customers can learn more about your company, your product and how you conduct business. Your logo will be at the top of every page of your website, so having it displayed correctly is vital. Most website builders automatically format the logo for each page, so you do not need to worry about dimensions. However, we recommend using a PNG file when inserting your logo into the website, as PNG’s offer the best readability and formatting ability when compared to other file types.

If your small business plans on selling merchandise or using packaging with your logo on it, there are different sizes we recommend for that as well. For small print (e.g. souvenirs or small bags or boxes) we recommend your logo be 500 px or more. For large print (e.g. t-shirts or large bags) we recommend 1024 px or more. Having the right pixel size for your logo ensures that it does not appear fuzzy or stretched.

Understand Your Options

Choosing the right logo can be difficult. One of the best ways to find out which logo works best for you is by getting feedback from friends, colleagues, current customers or by hiring a small business consulting firm. Hiring a small business consulting firm to coach you through the branding process can alleviate stress and help your business choose a professional image that will impress clients for years to come. We looking forward to you contacting us at North Consulting Services so that we can talk about your company’s image.

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Should My Small Business Rent or Own Commercial Property?

koenig.jeffrey — Fri, 08 Oct 2021 11:00:00 +0000

North Consulting Services

Should My Small Business Rent or Own Commercial Property?

Is Renting Or Owning Commercial Property Best For My Small Business?

When finding the perfect property for your small business, there are many factors to consider. Location is of course the most crucial factor, but knowing whether to rent or buy a commercial property can be just as important. There are pros and cons to both renting and owning a commercial property, and in today’s discussion we hope to provide clarity on which option is best for your small business.

Pros Of Owning

1. Building Equity

By owning commercial real estate, you give yourself the opportunity to build equity. This means that as you pay off your mortgage, you own more of the property. Having more more equity allows you the opportunity to take out a second loan, a line of credit against the property or do a cash-out refinance. Building equity also gives you additional options for retirement. You can sell the property outright, or sell your business but retain the property, giving you the option to lease the property and maintain a steady income.

2. Tax Breaks

If you are the business owner and have purchased a property, you are able to write off all mortgage interest you paid during that tax year as a business expense. There are also a few tax deductions designed to benefit business and property owners:

IRS Tax Code Section 179: This allows deductions for equipment and furnishing purchases that are put into service the same year that they are purchased. For the past three years, Congress has granted a deduction of $500,000 which can be a significant contribution to offsetting the costs of purchasing property.
IRS Tax Code Section 1031 (1031 Exchange): Investment properties used in a trade or business can be sold and the funds applied toward the purchase of a similar or like property within 180 days of sale, without receiving any tax penalties. The purchased property must be of equal or higher value to avoid a tax penalty. This can be used for a business owner looking to move to a larger property as their business grows, without incurring any tax penalties.
Cost Segregation: This allows a business owner to have personal property assets reclassified in order to shorten the depreciation time for tax purposes, which in turn reduces current income tax obligations.

3. Appreciating Asset

Owning commercial real estate allows you to benefit from capital appreciation, which is the increase in your property’s value over time. Appreciation can be affected by inflation, supply and demand conditions, interest rates, neighborhood conditions, among other factors. Ensuring the building is maintained and up to code can help increase it’s appreciation. Real estate investors call making improvements to the building “forcing appreciation”. Consulting a local real estate expert or North Consulting Services can help you asses the cost-benefit of these upgrades.

4. Rental Income

If you are the owner of a commercial property, but you choose not to operate in the building, or only operate in a part of the building, you have the opportunity to rent out the extra space. Renting out part, or all of your property can help significantly decrease operation and mortgage costs.

5. Control Over The Property

By owning a commercial property, you have full control over it. This means as long as code permits, you can do anything you’d like with the property and not have to negotiate with a landlord or property owner. You will also be able to make fixed monthly mortgage payments instead of a rent payment that could be subject to increase when a commercial lease expires.

Cons Of Owning

1. Higher Cost Up Front

Typically, when purchasing a commercial property, or any property for that matter, you will need to make a down payment. When purchasing a commercial property the down payment is generally anywhere from ten to forty percent of the property’s value. Additionally, you will most likely have to pay for closing costs, origination and appraisal fees.

2. Difficulty Qualifying For Financing

If your small business cannot get approved for bank financing, you may have trouble qualifying for a commercial real estate loan with a reasonable interest rate. Your company may not have been established long enough, have enough working capital (debt-to-income), or you may be unwilling or unable to provide a personal guarantee acceptable to the bank. If you plan on only occupying part of the space, most banks prefer your business occupies the majority.

3. Liabilites

Insuring the property is solely your responsibility. In addition to insurance you would normally carry, you also need to insure the entire building. If someone injures themselves on your property, you could be responsible. This means that you will have to pay for a liability insurance policy to protect yourself from a potential lawsuit. If you rent out a portion of the property, you have liability from the entire building, even though your small business may only occupy a portion of it. Many loans also require a personal guarantee, which makes you liable to repay the loan if your business cannot.

4. Loss Of Liquidity Or Capital

While there is a good chance of your property gaining value throughout your ownership, it also has the chance to decrease in value due to market conditions or your use of the property. If this is the case and you sell your property, you run the risk of taking a financial loss. A large down-payment may be used better to fund growth or operations making ownership a hinderance to growth.

Pros Of Renting

1. More Liquidity

When leasing, you have much less cash tied up in the property. Because of this, you can use the extra cash for operations and growth. You do not need to make a down payment with a lease (other than a possible security deposit), leaving you with more cash as a result.

2. Flexibility

Given that your business will need to meet certain requirements to qualify for a loan, leasing gives you more options when looking for the right space. It is also far easier to move locations when compared to owning a property. If your business relies heavily on location, buying a property may be too expensive in the area you desire, but you may be able to afford the rent. Depending on the structure of your commercial lease, you may also be absolved of unexpected costs that can arise from property ownership, allowing for better cash flow management.

Cons Of Leasing

1. No Equity Or Appreciation

When leasing a commercial property, you do not accrue equity in the property. You can look to renovate a property to meet your specific business needs, but that would need to be approved by the building owner or landlord; even then, the possible appreciation from this renovation does not go into your pocket.

2. No Additional Income

As a tenant, you are the one paying the rent. When owning a commercial property you have the option to rent a portion out and gain a secondary income. This is not possible if you lease a commercial property.

3. Rent Can Be Expensive

While the upfront cost of owning a commercial property is far higher than leasing, the rent from leasing can get expensive. Monthly rent tends to exceed mortgage payments for the same property. Depending on the type of commercial lease you have, you may get stuck paying for costs such as insurance, property taxes, utilities and maintenance costs that don’t contribute to your equity in the building.

4. Less Control

Leases are for a finite amount of time. Depending on who owns the building, they may choose to significantly increase your rent based on your success or investment in their building.

Extra Considerations For Buying

1. Location Is Key

With buying a commercial property being a long-term commitment, be sure to select the right location. Depending on what line of business you are in, location can make or break your small business. As the saying goes, location, location, location.

2. Evaluate Cash Flow

When considering buying a commercial property, be sure to know exactly how much money your business makes and if your cash flow is consistent. Knowing this can let you know if you can afford or will be approved for a mortgage.

3. Understand Existing Debt

If your business has existing debt, buying a commercial property may not be the best option. Consider your debt-to-income (DTI) ratio which could look unattractive to lenders. You should talk to a mortgage lender and have any existing debt under control before looking to buy a commercial property for your small business.

Extra Considerations For Leasing

1. Find The Right Space And Lease Terms

If this is your first time leasing a property for your small business, we suggest starting with a right sized location, and choosing a short-term lease with an option to extend. By doing this, you ensure that your business has enough room to grow with a predictable rent increase. Like most contracts, rental agreements are negotiable, and you can use this to your advantage to ensure you get the best lease for your small business.

Businesses need to find the right location in order to get off the ground. According to the latest data from the U.S Bureau of Labor Statistics, about twenty percent of small businesses fail within the first year. Finding a low-cost, right-sized rental property may be what your business needs to get up and running efficiently.

2. Understand The Property

When deciding where and from whom to rent, make sure to do thorough research. Make sure the building is zoned for your use, and that there are no deferred maintenance expenses that will become your responsibility.

In Conclusion

Deciding whether to rent or own commercial property can mean the difference between success and failure for your small business. If you are unsure of whether renting or owning is best for you, please CONTACT US at North Consulting Services and we can help you analyze what’s best for your small business.

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