Thursday, December 13, 2012

Business Bank Accounts Do Not Have the Same Protection As Personal Bank Accounts

You know how your personal bank account is protected if you lose your debit or credit card as long as you notify the bank within a specific period of time? Well, this same protection occurs if the bank's accounts are hacked and your money is taken. The bank is responsible, not you. The bad news is, this protection only applies to personal bank accounts, not business/commercial bank accounts.

Businessman_depressed

Caption: If you did not protect your business account from fraud and cyber attacks, this could be you.
Unfortunately, business owners, especially small business owners, usually assume that their business bank accounts are protected in the same way their personal accounts are. Not so. According to an article in the New York Times, "Provided banks can show adequate security procedures, they have no legal obligation to reimburse businesses for attacks, as federal regulations do not cover commercial accounts."
What that means is you MUST search your bank's fraud and IT security measures and see what level of protection they provide. You must take action to ensure the money in your account does not magically disappear one day. The good news is rarely does this type of breach occur. But rarely, is not never, so take precautions.
To read more on the subject, read the NYT article, A Win for Small Businesses in a Bank Fraud Case."
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Saturday, December 1, 2012

Business Planning in Competitive Industries


Business planning is even more crucial when there's greater competition.

Here's a direct excerpt from an article I wrote:


"Many small and medium businesses in numerous industries encounter a lot of competition due to low barriers to entry. In industries where start-up costs are relatively low and few regulatory, relationship, or infrastucture hurdles exist, the competitive landscape can be fierce.  Such industries are often fragmented and local.  Consequently, possessing a clear strategy for how you will differentiate and run your  business can mean the difference between success and failure.


Determine goals and objectives.
One of the primary purposes of a strategic plan is to identify your business’ goals. To do this you must ask some challenging questions. What are your core competencies? What makes you better than your competitors? What are your revenue or net income goals? What area of the market would you like to focus on?"

To read my blog article in its entirety, go to The Need for a Strategic Business Plan in Competitive Industries.
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