Before launching your small business, it is important to know the best legal structure. Legal structure refers to the way a business is organised. Picking the best legal structure for your business is critical. That’s because it affects aspects of your business ranging from tax payments to your personal financial liability. The most common types of business legal structure are sole proprietorship, partnerships, and corporations.
Sole proprietorship or a business owned by one person is the most common and simplest legal structure. The owner and the business are the same entity in terms of taxation. The owner is also financially responsible for business and their personal assets will be used to cover losses or debts incurred by the business.
The sole proprietorship is the second type. This type of business structure is very similar to the sole proprietorship- all partners are held financially responsible for the debts of the business and the tax burden is borne proportionally by the partners.
The third and the most complex business structure, and the most difficult to obtain, is the corporation. In a corporation, the owners and investors are separate from the business in terms of taxation and income and are not held entirely liable for the company’s debt.
Are you the leader in your market? If you are, then you may expect that everyone else wants your market share. Thus, everyone is your opponent and your job is to defend your territory.
If you got smart competitors, they won’t attack head-on. Instead, they will choose areas of weakness where you haven’t defended yourself and exploit them to their own advantage. Little by little, they will swipe your customers, take your share, disrupt your markets, and watch in amusement as your resources are scattered fighting little distractions here and there. That’s what attackers do.
If you want to keep your leadership in the market, you should know the basics. After all, if you don’t understand the value of the market leadership position, you won’t appreciate why it’s so important to fight to keep it.
Being the marketing leader is important. That is because most customers prefer to buy from leaders; not because of the revenue. Your customers create market leaders. They perceive leaders to be better (otherwise why would they be leaders?) and they perceive leaders to be a safer purchase. People are like sheep. If the majority votes you the best, the majority must be right. So they buy from where everyone else buys, thus strengthening the leader’s position.
When someone complaints about their experience with your business, you should know how to properly handle those complaints. Being able to handle complaints properly is a great skill to have whether you are running a small business or a large corporation.
Some business owners allow their customers to complain when they are not satisfied with the products or service they purchase from the company. They do this strategy so that they will be able to understand the impression of their clients towards the product or service they are offering to them.
So whether or not you follow such strategy to know what your customers think about your business, it is important for you to handle complaints and know how to value these complaints.
Complaint handling is a strategic tool and all businesses and organizations need to make a commitment to address complaints in a professional manner. Unfortunately, handling complaints these days is very misunderstood and undervalued in business.
According to researches, 70% of unsatisfied customers will return if their complaint is resolved favourably. Also 95% of unsatisfied customers will return if you resolve their complaint on the spot. Complaining customers are really a treasure. That means there is great value in resolving complaints. Remember, it takes six (6) times more effort to attract new customers than to retain existing customers.