A government contract can be a source of revenue for a business. Such contracts often all but guarantee appropriate payment for the business, which isn’t necessarily the case when doing business with individual consumers or other organizations. A single successful government contract can pave the way for more projects in the future. However, bidding on government contracts comes with a degree of risk for an organization. Companies sometimes rush through the process in their eagerness to secure a contract and then face a variety of serious challenges when fulfilling the contract later. The foll ..read more

Business owners sometimes have to merge companies to create a more successful combined company that can benefit from a better market position. Given the significance of such a transition, mitigating any negative impacts should be a vital consideration. Fortunately, with careful planning and diligence, it’s possible to create a company that truly stands out among the competition. Business owners who are considering a merger may benefit from keeping the following in mind. Strategic planning and clear objectives Establishing a strategic plan with clear objectives is crucial for a business owner m ..read more

One of the most important decisions that an entrepreneur makes involves the formation structure of their company. The structure of a business influences everything from how much control an owner has over daily operations to what taxes the business must pay. Even if someone starting a business devoted many hours to the contemplation of the right structure, they may eventually decide that the current form for the company is not ideal given other complicating factors. For example, someone who started a sole proprietorship may realize that they want more liability protection now that the business ..read more

Partnerships can either be the key to success or the road to failure. Did you know that up to 70% of business partnerships ultimately fail? As a proactive entrepreneur, it can help to identify the common reasons why businesses break down to better safeguard your professional business relationships. Identifying warning signs early on can be crucial to maintaining a healthy and profitable business collaboration for years to come. Lack of clear communication Effective communication is the cornerstone of any successful business partnership. When communication breaks down, misunderstandings may ari ..read more

Securing a government contract is often a difficult task. Businesses and contractors have to bid on the project without knowing what others may propose. Complex proposals that include details about the work provided, project timelines and budgets factor into the decision of who gets the contract. Especially if a company has never secured a government contract before, it may bid aggressively in the hopes of developing professional relationships that could lead to more work in the future. One of the ways that companies increase their chances of a successful bid is to keep the cost of the project ..read more

A business acquisition can be beneficial for a growing organization. They may purchase a competitor or a company operating in a totally separate industry. So long as a company has the resources to afford an acquisition, there are many potential benefits to doing so. An acquisition can give a company access to intellectual property, physical facilities and exceptional talent, ranging from engineers and executives to salespeople. Acquisitions are usually a lengthy process, and enthusiastic executives may overlook certain risks while preparing for an acquisition. What challenges require careful c ..read more

One party’s contract failures can have dire implications for a business. Perhaps a construction company failed to meet certain standards when working on an office remodel. Perhaps a vendor missed a delivery, provided the wrong materials or increased its prices despite very clear terms outlined in a contract. An organization facing a breach of contract scenario may have operational challenges to overcome and also unexpected expenses to cover. There may be an assortment of different consequences, particularly if the party in breach of the original agreement does not quickly remedy the situation ..read more

Many business owners are always looking for new ways to expand their reach and grow – and mergers can offer a lot of benefits to everybody involved. However, not all mergers are created equal. Understanding more about the different forms a merger can take can help you better assess their benefits/drawbacks and make informed decisions accordingly. Horizontal merger A horizontal merger is the joining of two companies within the same industry – and the same part of the production process or supply chain. The goal is usually to increase their market share while simultaneously reducing competition ..read more

A company’s contracts help it control business operations and expenses. Employment contracts clarify what wages workers can expect and what duties they must fulfill to earn that income. Supplier contracts can help make costs and delivery dates more predictable. Client and customer contracts can protect a company’s income stream and allow it to charge penalties for late payments and other issues. No matter how careful an organization is about the contents of its contracts, there will almost always be a few parties willing to openly violate contractual agreements. Individuals and other businesse ..read more

Operating your new business as a sole proprietorship is certainly the easiest route to go, but it lacks certain advantages – like personal asset protection and a formality that can make it easier to obtain financing. Just the same, incorporation – with all its initial expenses and legal formalities – seems like a bridge too far. Is forming a limited liability company (LLC) the perfect solution? LLCs are a very popular business model for a number of reasons. These include: It can serve as a shield against personal financial losses A lot of businesses struggle to stay afloat during their early y ..read more