Small Business Resource » Starting a Business

How To Build A Business Plan Geared For Success

admin — Sat, 10 Oct 2009 05:25:27 +0000

If you have a new business in mind, you no doubt want it to turn into a successful profit-making machine. In order to get there, you will have to build a business plan that will lead you on the focused path to that success.

You should take some time preparing a plan. You may be tempted to write down a ton of smaller details mixed in with the larger ideas and options, but don’t rush it. Let everything work out until you feel you have a great working plan.

Your goals are at the very center of your plan. What do you want to accomplish this year, next year, or five years out? With all of your hopes and dreams right now, what is it you are really headed toward?

How will you ever decide between two different options if you don’t have a clear sense of where you are headed? You need something to aim for so that you keep the business on track and don’t lose site of what may lie ahead.

Successful business owners are able to stick to the goals and keep the business on track until it starts to turn a profit. Once you are on the road to success you can further analyze how the plan has changed.

You will also need the courage and brains to stick with a given budget until the company earns more money. You should know exactly what you have in the bank, how long it might last you, and what you would like to spend it on.

If you spend too much money in the beginning and you do not make much of it back right away, you could find yourself financially out of the game in the near future. It’s much wiser to analyze each possible expense and determine if it is worth the cost. Cut wherever necessary until you can afford to purchase more.

If you know where you are headed and have a clear cut focus and working budget, then you should be able to build a business plan that keeps you on the path to success.

Benefits of doing business locally

admin — Mon, 13 Oct 2008 01:36:23 +0000

(From Jeff Milchen, co-founder of the American Independent Business Alliance)

Economic Value of Independent Businesses

It’s time to consider the real costs to a community that loses its locally-owned business base. Independent local businesses employ an array of supporting services. They hire architects, designers, cabinet shops, sign makers and contractors for construction. Local accountants, insurance brokers, computer consultants, attorneys, advertising agencies help run it. Local retailers and distributors also carry a higher percentage of locally-produced goods than chains, meaning more jobs for local producers.

In contrast, a new chain store typically is a clone of other units, eliminates the need for local planning, and uses a minimum of local goods and services. A company-owned store’s profits promptly are exported to corporate headquarters. Dollars spent at community-based merchants create a multiplier effect in the local economy that, by most findings, typically amounts to three times that of a chain. This is well-evidenced by a 2003 economic impact study by our IBA in Austin, Texas that concluded for every $100 spent at a chain, $13 remained in the community while $45 remained when spent with home town businesses.

Ensuring Choice and Diversity

Retailers sift through competing goods and services to find those appealing to their customers. Though a single local shop may carry a smaller selection than a big chain, a multiplicity of independent retailers creates great diversity. When thousands of independent book and music shops serve their local tastes and each owner’s preferences, the result is demand for a wide variety of ideas and music. This makes accessible controversial books or music from new artists with the expectation that a market exists somewhere within a variety of stores. As fewer giant corporations dominate production and sales, our options –
determined by a powerful few — dwindle. Our freedom of choice is imperiled when a few buyers from national chains choose what reaches customers — perhaps moderately disturbing for most goods,
but truly frightening when you consider the impact on our choice of news sources, books, music and other expression modes.

Maintaining Community Character

When asked to name our favorite restaurant, cafe, or shop, it’s typically a unique local business. Just look at the results in any community’s “Best of” polls as proof. Those businesses define our sense of place, but we often forget their survival depends on our patronage. Local owners, typically having invested much of their life savings in their businesses, have a natural interest in the community’s long-term health. Community-based businesses are essential to charitable endeavors, and their owners frequently serve on local boards and support numerous causes. Yes, some chains give back to towns in which they do business, and not all local businesses are exemplary models. However, the overall impacts are clear: locally-owned businesses play a vital role in our community that chains rarely do, while chains often even undermine community interests. For long-term progress, a conceptual change also is necessary. We must consciously plan that future with rules that will encourage the values we want reflected in our communities. And each time we spend a dollar, we would do well to weigh the full value of our choices, not solely to ourselves immediately, but for the future we want for our home towns.

Starting a Business: What To Do and What Not To Do

admin — Mon, 25 Aug 2008 16:06:39 +0000

When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. While there is no single source for all filing requirements, the following steps have been developed to assist you in starting your business, by telling you what to do and what not to do.

TOP TEN DO’S

1. Live frugally and begin saving up money for operating your business.
2. Learn your business by working for someone else in the same business first.
3. Consider the benefits of starting a moonlight business.
4. Consider the advantages of operating a family business.
5. Objectively measure your skills and training against potential competition.
6. Consider subcontracting to low cost suppliers if you’re manufacturing a product.
7. Test market your product or service before starting or expanding.
8. Make “for” and “against” list describing the business you are in or considering.
9. Talk to lots of people for advice.
10. Make a comparative analysis of all opportunities you are considering.

TOP TEN DON’TS

1. Quit your job before you have completed start-up plans.
2. Consider operating a business in a field you do not enjoy.
3. Risk all the family assets. Limit your liabilities to a predetermined amount.
4. Compete with your employer in a moonlight business.
5. Be in a hurry to select a business. There is no penalty for missed opportunities.
6. Select a business that is too high a risk or hurdle. Go for the 2-foot hurdle.
7. Operate a business in which you must have the lowest price to succeed.
8. Neglect to learn the negative aspects of an intended business.
9. Permit entrepreneurial self-confidence to outweigh careful diligence.
10. Allow the promise of a conceptual high reward deter reality testing first.

Setup an Online Business Account with PayPal

admin — Fri, 22 Aug 2008 16:38:53 +0000

One of the requirements for conducting your business online is to have a business account with someone like Paypal, because its very easy to handle all your online invoicing and payments.
Paypal is secure, reliable and most important of all – easy to use.

Here’s how to set up a Paypal account for your business.

1. Print out these instructions

2. Click here to Set Up Paypal Business Account

3. Scroll down and click where it says: “sign up today”

4. Choose whether you want a personal, premier or business account

If this account is for your business, you should choose Premier Account or Business Account

Here’s the only difference: a Paypal Business Account allows you to set up the account under your business name. But you need to have a business bank account and wait for your Paypal Business Account to be approved.

If you don’t have a business bank account but you want your Paypal account under your business name, here’s how to get around it: sign up for a Premier Account, but instead of putting your name in the name field, put your business name. For example, if your business name is Acme Consulting, put “Acme” in the “first name” box and “Consulting” in the surname box.

5. Choose your country

6. Click Continue

7. Fill in all your info (see note above about business name)

8. Click Continue

After your account is set up you can pay someone by Paypal, or request payment (send an invoice) just by going to www.paypal.com and logging in to your account. It’s very obvious how to do it.

IMPORTANT: Keep Business and Personal Finances Separate

admin — Fri, 22 Aug 2008 16:23:53 +0000

I cannot stress this point enough. Your life will be much easier if they are kept separate. And when you grow big enough to hire an accountant, he/she will thank you too :)

Small scale business people may often have problems managing finances. While most of the money they used to kick off came from their savings, most of their personal funds now come from their businesses.

Financial management is really a tough thing to do. But although it’s a given that business and personal money are often be intertwined (especially in the case of a home-based business), it is necessary to keep them separate.

The best thing to do is look at business as one entity and home as another. This works better, not just on the personal standpoint, but also on the financial one.
There are top 5 reasons why:

1. Your business is a hobby – There are several federal and state government policies that stipulate only businesses are allowed to deduct business expenses. Now let’s say your business is more of a hobby and not a means to make considerable money. You may have a difficult time telling the government that you are indeed running a business and not a side hobby. Many business owners compound this problem by using a personal bank account too.

2. Lack of professional attitude – The only way people will take your business seriously is if you do too. Accept checks made out to the business and not your own personal name. This establishes a divide between you and your business.

3. Taxation – Businesses are entitled to pay government taxes, and these don’t cover individual tax payers. When you merge finances, it will be difficult to determine the exact taxable amount rendered by your business every month.

4. Paper Trail – If in need of money for your business and considers availing of grants or loans, supporting documents (financial reports, etc.) are needed for approval. Financial management makes it easier to know which finances belong to your biz.

5. Growing Your Business – When finances are separated, you get to focus on your business without thinking of personal concerns. You will be able to see the business’ overall performance and decide on the best way to enhance it.

Separating business and personal funds is difficult, but is definitely an intelligent choice to do. By establishing a separate business profile, you will be strengthening the purchasing power of your enterprise. The simplest tactic to get underway is to open a business bank account. In every transaction concerning your business, place the name of the biz.
To help you out with your accounts here are a few coupon codes for you to use when you open a new account with Bank Of America. Hope this helps.

How to track business expenses when starting out

admin — Fri, 22 Aug 2008 14:50:16 +0000

While the start up phase of a new business venture can be an extremely exciting time, it is also incredibly confusing and fast-paced. Financial decisions should be well thought out and a company credit card should not be taken lightly. Doing the research and always practicing good financial habits will help ensure that the financial foundation of your company will start strong and continue to stay strong as growth occurs.

Small businesses in the start up phase have a lot of important decisions to make as they develop their business plans and concentrate on the initial steps that will put their business on track, building from the ground up. One of the most important aspects of the start up phase is putting together a sound financial plan to incorporate the start up costs that will continue to be relevant not only during the startup phase but also will grow with the company down the line.

Entrepreneurs often use their own start up capital to get their business ideas off the ground. Essentially, it is important to differentiate business expenses from personal expenses to maximize accounting efforts and to easily track the cost of business start up. Employing a company credit card, designed for small businesses, is an easy way to tally all business expenses in one location. For a young business, accurate accounting will be vital to establishing a solid foundation. Knowing what your expenses are will aid you in creating a sound financial plan and will carry over into the future.
redit card statements make it easy to divide individual expenses into categories, such as office supplies, business licenses, marketing, and travel expenses. Reviewing credit card statements monthly should be a priority and at the same time, you can use a highlighter to categorize your expenses. This is especially important for sole proprietors, whose every expense needs to be calculated for tax purposes. The last thing a business entrepreneur wants to do at the end of the year is chase miscellaneous receipts and expenses in preparation for filing taxes.

Credit card statements can also be stored for future reference when coordinating each new phase of the company’s growth. With the progression of today’s credit card program, there are various credit cards offering benefits specifically to assist small businesses and entrepreneurs by offering discounts on office related supplies or cash back incentives for all credit card purchases. For any new business, savings of any kind are important, especially for business owners that are self-financing. It is important for business owners to take the time and research the credit cards which offer incentive programs very carefully and not just jump on board with each and every credit card offering a credit limit. Look for the rewards cards that are most relevant and most effective for your business needs. For example, if your business requires frequent travel to meet clients or perspective customers, look for cards offering airline miles or travel discounts. There are plenty of programs that offer different rewards variables to choose from but it is also important you read the fine print and consider the monthly payment responsibilities. Start up can be a precarious time for a business and remember, there may not always be work in the pipeline.