When running a small business, it can be easy to overlook some things. Little things like social media profiles, customer insights and even your own happiness can make a big difference, even though they might not always be your main focus. Gain some valuable tips and insights by following the advice below from members of our small business community.
Avoid These Overused Buzzwords on Your Social Media Profiles
When creating your social media profiles, it’s important that you accurately describe yourself and your business. But there are some overused buzzwords that can make your profile fade into the background, like the ones listed in this Prepare 1 post by Blair Evan Ball.
Boost Conversions With the Right Customer Insights
Having insights about your customers can be incredibly helpful when it comes to increasing your sales and conversions. But you need the right insights in order to make those positive changes. This Kissmetrics post by Shayla Price includes some insights about finding the right customer data.
Access the Ultimate Productivity Hack — Happiness
You can’t hope to get much done in your business if you’re constantly stressed and unhappy. That’s why this Fundera Ledger post by Eric Goldschein suggests that the ultimate productivity hack may just be happiness. BizSugar members also discuss the post here.
Repurpose Your Content Like a Champion
Once you create content, you don’t have to let it just disappear into the archives after a week or so. You can actually repurpose it later to get even more of a benefit. This Search Engine Journal post by Danny Goodwin outlines how you can repurpose your old content.
Create Effective Calls to Action
Creating great content and marketing materials is a great start for gaining customers. But if you don’t have effective calls to action, your marketing isn’t likely to be as effective as possible. In this MyBlogU post, Ann Smarty discusses some methods you can use for creating effective calls to action.
Show Yourself Some Love as a Business Owner
You can’t hope to grow a successful business if you don’t take care of yourself. To show yourself some love and help your business in the process, check out the tips in this CorpNet post by Nellie Akalp.
Write Blog Posts Your Audience Will Love
When blogging for your business, it’s important to always keep your audience in mind. If your audience doesn’t love your posts, then blogging isn’t likely to do your business much good. So this Blogging Wizard post by Elna Cain includes tips for writing posts your audience will love. And you can also see commentary about the post over on BizSugar.
Use These Smart Investment Strategies for Entrepreneurs
If you’re going to invest in your business, you need to make sure that you have a smart strategy for doing so. This GetEntrepreneurial.com post by Ethan Theo outlines some smart investment strategies that entrepreneurs can use to better their businesses.
Create an Invoice That Will Get Paid
The last thing you want as an entrepreneur is to provide a service or fill an order and then just not get paid. For that reason, you need to make sure your invoices are optimized to ensure payment. In this Noobpreneur post, Tara Miller shares some tips for creating invoices that will actually get paid.
Don’t Deter Customers With Incomplete Content
Great content can give your business a boost. But bad or incomplete content can actually have the opposite effect. This Target Marketing post by Heather Fletcher details how incomplete content can turn shoppers away, and what your business can do about it.
What do you need to do to start a business? There are dozens of sites on the web including ours that have checklists that remind you of the many tasks you should perform to start a business. While such checklists will help you remember a lot of important steps you might otherwise overlook, they are rather impersonal To Do lists. They won’t make or break your success.
What will make or break your business? Here are 13 important guidelines for turning your business idea into a successful business.
1. Know yourself, your true motivational level, the amount of money you can risk, and what you’re willing to do to be successful. Sure, we all want to make millions of dollars. But what are you willing to give up to reach that goal? How many hours a week will you work on an ongoing basis? How far out of your comfort zone are you willing to stretch? How far will your family stretch with you? To be successful, keep your business plans in line with your personal and family goals and resources.
2. Choose the right business for you. The old formula – find a need and fill it – still works. It will always work. The key to success is finding needs that you can fill, that you want to fill, and that will produce enough income to build a profitable business.
3. Be sure there really is a market for what you want to sell. One of the biggest mistakes startups make is to assume a lot of people will want to buy a particular product or service, because the business owner likes the ideas or knows one or two people who want the product or service. To minimize your risk for loss, never assume there is a market. Research the idea. Talk to real potential prospects (who aren’t family and friends) to find out if what you want to sell is something they’d be interested in buying, and if so, what they’d pay for the product or service.
4. Plan to succeed. If you’re not seeking investors or putting a huge sum of money into your business, you may not need an elaborate business plan, but you still do need a plan – one that specifies your goal – your destination – and then lays out at least a skeletal roadmap for how you’ll get to where you want to go. The plan will change as you progress and learn more about your customers and competition, but it will still help you stay focused and headed in the right directions. Use our business planning worksheet to help develop that basic plan.
5. Don’t procrastinate. I’ve heard some people advise would-be business owners to not move ahead with their business until they have investigated every last detail of the business they want to start, and are absolutely sure it’s all going to work and be profitable. The problem with that approach is that it leads to procrastination. No one ever really has all the pieces in place – even after they’ve started their business. Yes, you need to research the market, have a rudimentary plan in place and do things like get a tax id if needed, register with local officials, if required, etc. But if you try to make everything perfect before you launch, you may never get around to starting the business at all.
6. Start on a small scale before going all out. Some people believe that entrepreneurs are risk-takers. But for the most part, successful entrepreneurs don’t like walking blindfolded on a limb. Instead, they take controlled risks. They test an idea on a small scale, then build on what works well, tweak what shows promise and discard the disasters.
7. Don’t fixate on mistakes or get demoralized by them. The difference between successful people and everyone else is that the successful people learn from their mistakes and move on. They don’t dwell on failure, blame the economy, curse their bad luck, or blame other people for their fate. If the path to their goal is blocked, they look for an alternate path, or sometimes choose a different, more attainable goal.
8. Learn from others. Find mentors, join groups with like-minded people, learn everything you can about your industry and what it takes to get from where you are to where you want to be.
Attend industry conferences. Take training courses when they are available. Buy courses offered by experts. You’ll save a tremendous amount of trial and error by learning from people who have been there before.
9. Think of what you do AS a business. Keep track of income and expenses, keep business money separate from personal funds, find out what regulations your business needs to abide by.
10. Understand the difference between working for yourself and building an ongoing business. If you want to build a business, you need to develop systems and methods that allow you to hire other people to DO the work of the business while you plan it. You limit the potential for growth if you don’t bring in other people to work for you.
11. If the business you are starting will need investors to grow, do what you can to find out what investors are looking for and where to find those who might invest in your kind of business. Local angel and venture capital groups are a good place to start – attend meeting they hold or meetings that investors are speaking at.
12. Put yourself out there. Ask for what you want (in a polite way.) I started my online business by participating online on GE’s GEnie online service. When I was ready to send them a proposal to run a small business area, I could not only talk about my credentials in general, but point to places I was already contributing to their service. I became one of the early content providers to America Online because I picked up the phone and made a cold call. I wound up with a new consulting client after I struck up a conversation with a woman sitting next to me on an airplane. Remember, people like to do business with people they know. Get the ball rolling, and keep it rolling by continually reaching out and introducing yourself to new people.
13. Never stop learning and trying new things. What’s profitable now, won’t necessary be profitable next year or 10 years from now. So, don’t let yourself fall into the “this is the way I’ve always done things” rut. Keep your eyes and ears open for new things. Are there newer or better ways to market your products and services? Are customers asking for something you’re not offering? Is there a different type of customer you should be targeting? Get answers by reading everything you can about your industry and listening to your customers.
In addition to all of the typical concerns and struggles that a business owner might have to contend with, female entrepreneurs face a unique set of challenges when it comes to launching a successful startup. Though it may not be easy for women to make it in the competitive business world, it is not impossible. With a little planning, the right mindset, and a positive support system, women can overcome the difficulties of entrepreneurship and build a thriving business.
Here are just a few tips for aspiring female entrepreneurs who are ready to bring their ideas to life and build a successful company:
1. Build your professional network.
Building a professional network is an important part of becoming a successful entrepreneur as it opens up new opportunities for your business and allows you to gain important insight from those in your industry, other female professionals, and entrepreneurs who are thriving. Becoming an effective networker is a learned skill and requires quite a bit of practice. When building your professional network, utilize all of the opportunities you have to meet other professionals. There are many ways that you can build your network, including attending networking events, joining community organizations, participating at important industry conferences and tradeshows. Female entrepreneurs should also use social networks like LinkedIn to reach out to other female entrepreneurs and industry leaders.
2. Find a mentor in your community.
While building your professional network, you want to surround yourself with people who support you in your mission to pursue your passions. Finding a mentor is an important part of this process. Your mentor has been in your situation before and knows what it takes to persevere and succeed in the business world. A quality mentor can help you navigate issues both big and small by offering advice and being there for you when you need it most. You can gain knowledge from their advice and experience by learning from their mistakes and successes. No matter what issues you face in business or what personal questions you may have about entrepreneurship, a mentor can help guide you and support you in achieving your goals as a female entrepreneur.
3. Take advantage of the wealth of funding opportunities.
The financial technology industry, or fintech, has opened up a variety of opportunities for entrepreneurs who want to make their business dreams a reality. The advancements in lending as a result of fintech have provided more funding options than ever for women business owners. In addition to special business loan opportunities just for women, female entrepreneurs are now able to apply for a business line of credit easily and quickly through a convenient online application process that provides a decision in a matter of moments. With lending options like this, women business owners have access to the funds they need when they need them most, allowing them to pursue business opportunities and grow their company.
4. Work on developing successful time management skills.
Time management is essential for success in nearly every professional endeavor, but it can make or break an entrepreneur. Entrepreneurs, especially those just getting started, are faced with a long to-do list that they need to complete with limited time and resources. Before you launch your startup, work on practicing effective time management skills and learning new tips and tricks for managing your time. Make use of apps and other software that can help you better streamline processes and make the most of your limited time and resources. Aspiring female entrepreneurs also need to learn how to prioritize tasks and delegate responsibilities. Female entrepreneur, Kwany Lui, co-founder of Bundle Organics, offers this advice: “You have to evaluate what activities are really going to make an impact on your business and focus your time accordingly.”
5. Go to events in your industry.
Going to events in your industry is a great way to expand your professional network, and it gives you the opportunity to speak with individuals who are using or may be interested in your product or service. Connecting with others at an industry event allows you to gain important insight about how to improve your products or services as well as the chance to see the latest and greatest advancements in your industry. As a female entrepreneur, you can see how others are overcoming challenges and solving problems in your industry while also exposing new leads to your product or service and meeting others who are making big moves within your industry. Even if you have not yet launched your business, attending industry events can help you better understand what is in store for you and your company.
6. Know when to ask for help, and seek assistance when you need it.
Many female entrepreneurs are determined to prove themselves, which can be a great motivator for success. However, starting your own business is hard work, and the most successful entrepreneurs know when to ask for help. Asking for assistance when you need it is a sign of good judgement and awareness, not a sign of weakness. Female entrepreneurs need to be strategic and understand when and how to ask for help when they need it. This is where having a mentor and large professional network can come in handy. Not only can a mentor and your colleagues offer advice when you are facing difficulties, but these business professionals may also be able to provide help when you are experiencing challenges that require assistance.
How to Choose the Right Air Conditioning Contractor
It might have crossed your mind that it is already time to substitute your air conditioning unit. Or maybe your air conditioner now needs some repairs. A home owner has the option of choosing an air conditioning contractor in order for him to save time and cash. What the contractor does first is evaluate your needs, then explain the options you have and of course answer questions.
Air conditioning units can be quite pricey so you would want to make sure that you get your money’s worth. You would want the best quality that is effective and one that can suit your needs. When you are purchasing a new air conditioning system, you would have to hire the best contractor because of course you want to be satisfied with it. Your home is your palace and comfort-zone. You would want to make sure you hire an expert professional who gets the job done.
Licenses, Credentials, and Insurance are Required
Before signing anything like a contract or bid, you have to be well-informed of the important details of a certain contractor. You will have to do some research first because every state have different requirements. Once done, you will be able to know which requirements to ask from the contractor. You will have to affirm those licenses. In addition, check if the HVAC license is valid and not expired. The state licensing boards can help you with this.
Hiring a Contractor with Experience
It is because of the advancement of technology that the air condition units have improved when it comes to its features. In replacing your old air conditioner with a new and modernized one, you would want to hire a professional with the expertise and experience required for the job. Not just that, he also has to be knowledgeable about the products that they are selling. They should be qualified to do the job based on their hands on experience. The contractor will be held responsible for the installing, maintaining and repairing of the system. So it is very important that they also have trustworthy employees.
What to do Before Signing the Contract
It is very important that the homeowner was able to know everything he needs to know from the details to the work order before signing the contract. Then, the work begins. The information is very important because it gives you a background about what work is to be done, the installation process and many more. It is a necessity that you ask for a writing of the details. The details should include when the job starts and target end date, how much will it cost, the supplies and equipments, the labor fee and the possible problems that can arise from the process.
How to Appreciate Your Employees
In our times today, we should know that it is difficult to look for employees that would be able to produce good results because there are a lot of competition where they would want to have their job. Good employees are able to provide a lot of great things for our company that is why it is important that we should be able to know how to treat them well so that they would not have any problems in working for us. Good employees are the ones that are working hard and are skilled in doing their job and it is important that we should let them know that we appreciate the services that they are doing so that they could feel inspired in doing a much better job. It is common knowledge that we are going to be rewarded for great things that we have done that is why it is important that you should not forget to reward employees that have provided a lot of things for the success that your company would have as they would surely be able to appreciate it. Rewarding your employees on a job well done would surely be able to create an atmosphere where everyone would strive to do better so that they would be able to get the reward that you as their employer or manage would be able to give them.
There are some businesses that tends to ignore the achievements that their employees are able to give to them and it causes some good employees to leave their jobs in search for a much better opportunity. There are small businesses that are not able to afford giving a raise to their employees and you should know that you would not need to spend a lot of money in letting your employees know that you appreciate them as you would be able to give them some praise and recognition as they would still be able to make them happy. In our times today, it is also important that we should be able to provide the proper working environment for our employees so that they can be comfortable in doing their job and we should make sure that we are reasonable in the demands that we would give them. There are benefits that we should be able to provide to our employees and we should know that it is something that we should not deny them as it would be able to cause a lot of problems later on. It is important that you should make sure that your employees would also feel comfortable working for you that is why it would be best if you could also interact with them from time to time. You would surely be able to make sure that you are able to keep a good employee for a long period of time if you are able to make them happy.
Having the Best Sales Team
Have you ever thought if sales management can run smoothly for a long time or constantly? You need people who are always improving for the betterment of your company. There are two types of business leaders that you should know, which are as follows: the people manager and the bottom line manager.
A bottom line manager does not invest on the people that he hire for his team, which makes him different from a people manager. The concern of a bottom line manager is the productivity of the team as a whole. What is important for a people manager is to keep an eye on the team every single day, without worrying so much about the end. Companies enjoy different advantages with these two different managers. The pressure is always on under the management of a bottom line manager, making the team meet the productivity goal before deadline. A good people manager is more concerned on the process and quality of work of the team. If you want to have a team working for both the productivity and quality, make sure that you can combine the two ways of managing.
Being a good leader means you have integrity. The importance of integrity is high if you desire to be a leader with strong moral. Integrity is common to all the great leaders, according to history. There is not good leadership if the leader has no integrity. Leading need integrity in order to be successful. All your goals for your company can be achieved through good leadership. You must take good care of the trust of your team and clients by being honest all the time.
When you interview, you must tell the applicant what to expect from your company. Applicants will have no problem about everything if you tell the ahead. The process of the interview should have this kind of stage.
You must put these new members in a training in order for them to delve more about the job they applied for. People who are hired for insurance usually are not so knowledgeable about it.
You are hiring them for a position that requires a lot of thinking, which is different from their past work wherein they just sit and do paperwork. These people should be taught by you regarding the principles of products and sales in order to be able to do their job well. You need to have balance to be successful in doing so. These people can be trained to become eager employees, who are still enjoying their work.
You should be able to motivate them always. Introduce them to fame, romance, and fortune, which are the three main factors of motivation. Working hard will result a good return through their payment, which will make them rich if they save and invest. If you want to improve your love life, you can work hard in order to get that travel incentive that will bring you and your partner in a wonderful place.
What Classification Of Business Awards You Should Opt For?
When searching for trophies and awards, an important step that you have to do is to get info about its classification. It doesn’t matter if you plan to give trophies for a pageant or competition or recognition awards for corporate event of your company, what matters most is that you know what your choices are.
Believe it or not, there are different types of awards prior to what we have now. In earlier times, the winners of Olympic Games received Laurel wreaths as their trophies while in ancient Greeks, they are using the remains of wrecked warships to award themselves. While the recognitions are given differently, the awards and trophies that we have now are affordable, attainable and can be made to custom plaques.
Aside from the features of contemporary trophies and awards, they are also available in different materials and shapes. The common materials that are being used include crystal, glass, metal or steel, wood, marble and acrylic.
Acrylic awards – this is one of the best materials that are used to create awards and trophies. In addition to using acrylic on trophies, you’ll also see it being used on wide varieties of products such as home improvement tools, furniture, paint and a lot more. This has a glassy thermoplastic that can be molded to different shapes and forms. Having great transparency rate, it’s frequently substituted for glass as it’s like the cheaper version of it.
This is the exact reason why when giving monthly recognition for employees, Acrylic Awards is what being used often. It is expressing elegance without putting a dent on the budget of your company.
Glass awards – they say that even though there cheap acrylic awards, still nothing’s comparable to glass awards. If you want something that’s a real classic and would carry a timeless design, then go for trophies and awards made from glass. This is due to the reason that you can craft them into different shapes and forms. Many different companies actually prefer business award plaques that’s made of glass simply because it looks very elegant and sophisticated. As for the lettering on glass, it may be done by simply printing on it or engraving.
Crystal awards – this is another sought after and popular classification you could have. It shot to popularity due to the pure beauty that it holds. Almost similar to glass awards, crystal awards can be made in different forms. You may choose something that’s premade or have a shape that’s customized to the event or award title that you’re about to give. Not only that, crystals may be crafted by hand or cut by laser and be printed on and engraved too.
Suggested Article: The 10 Most Unanswered Questions about Services
The Advantages that the Business World Can Get from Awards and Recognitions
A business becomes successful due to the people that worked hard to reached its goal. A businessman who works diligently to ensure his company’s success must be rewarded. Furthermore, it is very important for business owners or managers to create a work environment that is full of commitment and encouragement. This can be prompted through the provision of recognition and awards. Thus, it is not only the business owners that should be encouraged but the employees as well.
A task can be very challenging for employees if they are ordered to work harder for it. Once you build a very stressful and laborious working environment, your workers will probably leave their jobs. Human as we are, we easily get tired of doing certain things that we do really like. In order to achieve a continuous business growth, it is highly recommended that you motivate your employees, as well as yourself, in order to obtain a recognition or an award.
Recognition and rewards are two of the most common and effective strategies that are being used in order to build an excellent workplace. A company that provides their workers an award for performing well will have a substantially high employment performance. A worker’s efficiency is increased by a high employment performance which eventually leads to business growth.
Regardless if reward is given in a financial or non-financial way, it will definitely play a significant role in motivating the employees of a company. If you think that monetary rewards are really not that practical for your small business, you can think of other rewards that does not require you to spend too much money. You must also take into consideration that a reward is only given to those who deserve it. Therefore, it would be best if you acknowledge and praise the efforts that your workers have made. Furthermore, the performance of your workers are improved by providing them the recognition that they well deserve.
You should also motivate yourself so that you will receive a local or international award from business sectors. It is not only the employees that deserves an award, the hard working business owners is worthy of receiving it too, thus, the business world should make an effort to acknowledge them. Once a person feels that there is really nothing to achieve in doing a certain job, they tend to get tired easily. The praise and recognition that you receive from your boss is still very much different from the monetary reward that you can get.
The Relevance of Team Building in Business Realms
Building a business isn’t the easiest thing in the world as it always involves people from different walks of life. It is important that you create a team of people who will work together to help grow the business and themselves. Team building exercises are just as important while you’re still creating the team that will help you with the business.
What are the results you will see when you try effective team building exercises?
First and foremost, you are able to build trust among your people. Trust is a vital foundation of a strong and solid team. As an entrepreneur, you have to understand that building trust with your employees is a core value in obtaining success for your company. Team building not only helps build your employees’ trust for you but it also establishes their trust in their own selves and in their colleagues.
Aside from trust, you’re also encouraging your employees to be comfortable with each other. Team building exercises help enhance good work among employees. When everyone is comfortable with each other, they will start showing more effort and love for their tasks.
Conflicts will still happen in the workplace no matter how solid your team is. Whether it’s a personal or creative issue, conflicts can actually hamper the flow of production. However, there’s an effective way to avoid or lessen these problems.
Team building exercises will help relive whatever conflict your employees may have. Personality differences may sometimes come in the way of tasks but team building will help lessen the burdens. Experts recommend neutral locations to hold the activities. These places include parks where your employees can enjoy and just have fun.
Collaboration is a very critical aspect in the workplace. Team building exercises are very helpful in a setting wherein you have employees who are used to pointing the finger at one another. Through team building, your employees will start collaborating with each other, owning up to their mistakes, and improving their work.
One big problem that some businessmen have noted is miscommunication. This problem can be avoided through team building exercises that are focused on encouraging employees to share ideas and communicate with their colleagues. A team that has solid communication from within will exert collective effort in accomplishing hard tasks.
There are actually various exercises that you should try as you build your amazing team. You can always ask assistance from a team building professional.
Team building experts have had a lot of experience with different industries and people. They also know very well how to handle the activities and find the best places. The best part of hiring a professional team building coach is you can take part in the activities. Each of your employees will surely appreciate your involvement and will build more trust with you.
Facilitating Competition Among Sales Team Members
The main aim of business is to make as many profits as possible, and one of the ways to make profits is to increase the sales levels of the firm. Competition among the sales team members is crucial in motivating the sales staff to work hard each day and improve. For the team to work in the best way, it is necessary that you encourage competition among them so that they can function tirelessly to outdo each other and at the same time, the sales quantities improve. So we can look at some of the ways how to increase competition among salespersons for the benefit of the business.
Do away with unproductive salespeople – In every sales force, it is evident to have people who cannot meet sales targets no matter how small the targets are and regardless of efforts made to facilitate sales. No amount of training and mentoring would change their performance. Let not your efforts go in vain, and it is high time that you did away with them but also remember to advise them that the sales job is not suitable for them. Doing away with such people helps them to pursue other favorable careers while it saves business resources.
Train the best salespersons – Use the little resources the business has to train potential and capable salespeople so that they can deliver efficiently.
Create a perfect atmosphere for sales – Be the example that they need to emulate. Give them necessary facilitation and provide an environment which is suitable for them to run their sales activities. Teach them to be self-driven, and they can only work efficiently in an environment which is suitable for them.
Insist on total accountability – Every person in the sales team is responsible for their actions in their daily work and results. There is little or no blame game when there is accountability.
Give improvement opportunity to every staff of sales team – You can to this by showing them how to utilize their time efficiently so that there is no wastage. Time is an irreplaceable resource and using it correctly in sales can work miraculously to your advantage. Help them to do proper planning of time to avoid time wastage.
Agree on mutual sales targets – Discuss and agree with the sales team on possible sales goals but do not set targets for them because that will demoralize them and may be unrealistic to attain.
Prompt reporting – Do not comprise when it comes to sales reports as it contains vital information for the business. Reports have information which you can use to make informed decisions which can influence various sections of the firm. Informed decision making using sales report information is beneficial to the firm in strategic planning.
Through proper facilitation, the sales team will continuously improve their performance. Importantly, rewards play a great role in encouraging salespersons. Focusing on all the above factors will increase the productivity of sales team.
Supporting reference: Finding Similarities Between Businesses and Life
Tips Of Managing A Sales Team
To effectively manage a sales team, you need to adopt various leadership styles. You should have the skills required in sales management so that you can lead your team in achieving their target.
You should ensure that you are an approachable person. Sometimes, you and your team should be held accountable for actions and statement.
Anew manager will often make mistakes. Accept that you are not always right and admit that to your team members. Avoid behaving like you have solutions to all problems, some members of the team will try to come up with problems so that they can see you solve them. As manager you can easily create a bond of mutual respect with your team if you create transparency between you and your team.
Giving regular instructions to the team members is one mistake that managers of a sales team do especially if one was a sales person. Your aim of giving them directions would be to let them have the solution that you think is best in the situation you are in. However, directing your team members on regular basis will hinder them from coming up with unique solutions to the challenges they are going through. Rather, creating a sales team, you will be cloning yourself.
Cloning yourself might sound a good idea because -after all, you have succeeded- but to some extent, this might be a trap. You should have a team that has different solutions to the same problem. In effective management, there are many different styles. Each style should be used at its right time and place.
One approach that you can use when faced with a problem is the consultative approach. Ask your team. Do will not be the one to give those directions on what to do. See what their views about a situation, customer or account are. You should understand how your team want to have their problems solved and how they want you to help them.
If the team members are not used to the kind of management you are using, the might fail to respond well at first. In most cases, the team member will at first fail to respond to your way of management if your predecessor was only giving directions. You should not give up on giving them a chance to come up with possible solutions for their problems rather you should encourage them to always get unique answers to different challenges. As you operate, you will see how they think and operate and at the same time they will appreciate you for teaching them how to fish rather than just feeding them.
Definitions of Source Code Escrow, Source Code, and Escrow
Source code escrow is a condition, in the computing world, wherein the source code of a valuable software is being deposited and entrusted with a third part escrow agent. A source code is a special, coding language designed by programmers in the process of developing a type of software, wherein the source code is later transformed by a compiler or an assembler into a binary machine code in order to be understood by the computer. To protect a valuable source code of a software, this procedure is normally entrusted to a third party called an escrow agent, who is a lawyer and who holds the source code while a transaction is being finalized or that a disagreement is being resolved. Normally, the party licensing software (licensee) hires an escrow to protect and maintain their software.
Differentiating Licensee to Licensor
In extreme cases when the company or licensor fails to maintain and update the software as stipulated in the software license agreement or files for bankruptcy, the software source code will be released back to the licensee.
Necessitating Escrow Service
Many companies, who are dependent on a licensed software, do make a point of continually using it and maintaining it even if the licensor is unable to do so. To be able to use the software continuously, the company can obtain a copy of the most updated version of the source code. This situation can be addressed by employing a source code escrow service.
Stipulations in Escrow Service
Source code escrow always takes place in a agreement called software licensing agreement, involving at least three parties: one or several licensors, one or several licensees, and the escrow agent.
The following are provided for in source code escrow agreements.
That the software source code be equally, as well as independently, maintained with the documentation, software tools or specialized hardware.
The licensor is obliged to put up updated versions, at a specified period, of the software in the knowledge of an escrow agent.
Instruct that the software source code be released to the licensee by the escrow agent on the following conditions: bankruptcy of licensor, cancellation of a software development project, unwillingness of licensor to meet the contractual obligations.
After the release of the software source code, delineating the rights, obtained by the licensee, to modify the software for the purpose of correcting errors or to continue independent development of the software.
Specify clearly the duties of an escrow agent which involves custody and verification of the stored source code software if it is readable to a computer.
This stipulation may be included, known as non-compete clause, which forbids the licensee to employ the licensor’s staff as soon as the software is released.
And finally, the fees to the escrow agent.
It used to be lawyers who were hired as escrow agents, but lately museums, archives and software communities have also become agents.
Software Escrow Services: What You Need To Know
Escrow is a contract that is able to protect two parties who may deposit something very valuable to an agent being the third party. It may involve money, intellectual property, or it could be documents. These things will be held by the agent until there is a certain condition met. In this case, if a software is in escrow, it means that the source code of such software is currently being held by an escrow agent. It is the licensee or the company of the software who will be the ones to request escrow agents to hold it for them. In other words, when you talk about software escrow services, it considered to be a form of protection to the licensee of the software to make sure that they will be able to access the source code when things go wrong.
A programmer writes a source code in order to make a particular program. Some of these programs have source codes that can be transferred to programs known as executable programs (files with “.exe” extensions), so it means to say that a user will be able to use the program applications so that it would be easier for users to install. People who knows or have the experience about software executable source code can easily create applications without any difficulty. The escrow agent can actually release the software source code to the licensee when the developer company of the software fails to deliver on the updates and maintenance of the software or if they file for bankruptcy.
Issues regarding fraud is actually on the rise these days. And these sometimes involve such a huge amount of money. Using escrow agreement will give the purchase some form of protection that is definitely as effective as anybody can expect it to be. Given the fact that the costs involved in developing software these days are quite high, an escrow agent will be the best thing for you to gain some protection.
The best thing about escrow is that the software developer will be able to protect himself against fraud. Developing software programs could not only take you months or years but a huge amount of money as well. The licensee and the licencor will have to be in agreement which will be set up by the software escrow agent in order to make both parties understand what they are to expect. Should they fail to meet the terms of condition, the escrow agent will then take proper action that is already decided in the escrow agreement. You can actually choose from the following software escrow: source code escrow, software escrow, and technology escrow services.
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