Small Business Resource » Starting a Business

Are You Ready to Start Your Own Business?

webkriti — Fri, 20 Apr 2012 06:27:52 +0000

Millions of people decide to start their own business, and most of them fail. Why? They fail because they weren’t ready for the challenge of it all. If you’re thinking about starting your own business, you need to make sure you’re completely prepared. Ask yourself these five questions, and if you can answer yes to all of them, you’re all set.

Do you have access to enough capital?

Unfortunately, if you want to start a business to make money, you usually need to have some money to begin with. Not having enough money can stop everything in its tracks. Before you start your business, you’ll have to honestly evaluate your business’ finances. Do you have enough savings to get things started? If not, do you have good enough credit to secure a loan? Do you know anyone who would be willing to help you out or invest? When you have adequate capital you can begin to put your plan in motion.
Do you have support?

As the owner of your business, you’ll definitely be doing the lion’s share of the work. You can’t always do everything on your own, though, and having support can make things a lot easier. For one thing, are your friends and family behind you? Do you have a good partner? You don’t need one, but it can help. Do you have a staff you can rely on? Knowing that you have people supporting you and your efforts will help you progress and make things happen.
Can you afford to take the chance?

Speaking about money one more time, what would happen to you if your business doesn’t succeed? Can you afford to lose the money you invested? You will probably need to quit your job, if you have one, and concentrate on your business full-time. Is that really the best move for you at this point? If you think it is, go for it. But you should always have a backup plan and know what you’d do if things don’t work out. If you’re prepared for anything, you’re ready to start.
Do you know how to run a business?

Lots of people want to run a business but don’t know the first thing about business management. You don’t need to have formal training or experience, but you have to be willing to learn. There are lots of free resources out there for people who want to start their own business, such as through the Small Business Administration. Seek them out and learn exactly what it takes. A lawyer could also help you in this respect.
Are you willing to do whatever it takes?

If you’re still a little wishy-washy about your idea, you’re not ready to start your own business. If you want to succeed, you have to be completely convinced of your own ability to do so. You need to have full faith in your idea and be passionate about it. When you know you’re willing to see your business through any obstacles, you’re ready.

Melanie Hicks is a business graduate and owner of her own small company who loves to share her knowledge with people. She also loves to travel and is hoping to visit a Bahamas luxury hotel this summer with her family. She hears that the spas in Nassau, Bahamas are unbelievable and she cannot wait to spend time with her husband and children while relaxing.

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Becoming Your Own Boss

admin — Thu, 08 Mar 2012 00:14:02 +0000

If you can’t find an employer who will take a chance on you, why not try taking a chance on yourself? Being your own boss can give you not just a job and an income, but can give you flexibility that may have been lacking in your previous career. Whether you want to become a mortgage broker or a freelance writer (like me), the self-employed share three key traits:

Self-starter. With no one standing over you, ensuring you finish your work correctly and on time, it’s up to you to motivate yourself.
Steadfastness. Starting your own business requires a strong stomach, not to mention perseverance, especially as you work to establish your client base or product line.
Creativity. Even if you’re not engaged in the arts, successful self-employment hinges on your ability to think out of the box on everything from creating your brand to marketing your product or services.

Sound like you? Now you’ve got to decide what kind of self-employment opportunity works best for you.

The Franchise Model

You don’t have to have the world’s next great idea or product to launch your own business. Franchise opportunities – everything from becoming a mortgage broker to running your own restaurant – give you the freedom of working for yourself while providing you with a template other business-minded individuals have used to pave their paths to success.

Franchise opportunities all tend to follow a certain model. First, you’ll need to figure out what kind of franchise you want to run – retail? fitness? entertainment? financial services? The options run the gamut. Once you’ve found an industry – and a parent company – that suits your personal and professional preferences, it’s time to buy in. Franchising fees can run from a few hundred dollars to a tens of thousands of dollars. In exchange for that up-front fee, your parent company usually supplies you with training, support, and – in some cases –materials to launch your branch.

Although franchising can sound like a great opportunity, it does have its drawbacks. Many companies charge franchisees a second type of fee: a royalty. This means for every dollar you earn, your parent company will take a pre-specified cut. And while you’ll largely have day to day control over your office, you’ll still have to comply with the parent company’s rules and regulations.

Franchising Without The Overhead

There’s a big difference between opening a franchised restaurant and, say, a mortgage broking franchise. With the former, you’ll have to buy – or lease – a building, purchase food, furniture, dishes, and appliances, and hire employees, all before you can even open your doors. Become a mortgage broker, on the other hand, and you’ll have none of that overhead.

That’s why the franchising fee for mortgage broking franchises is far lower – typically just a few thousand dollars – than opening a retail franchise, which can require you to have hundreds of thousands, even millions, of dollars in capital.

Become A Mortgage Broker

While some mortgage brokers work out of posh offices in high-rise buildings, this type of overhead is unnecessary. According to the website Entrepreneur, many mortgage brokers work out of a home office – some on just a part-time basis.

Is mortgage broking right for you? Mortgage brokers act as liaisons between lenders and borrowers looking to buy a residential or commercial property, helping those potential buyers find the right loan. If you’re passionate about finances, real estate, or simply helping people save money, it may be the right path for you.

After all, if you’re unemployed – or simply under-employed – what do you have to lose?

Author: Betsy Falwell

My youngest aunt has been out of work for two years. Depending on how you want to break it down, that’s 24 months, 104 weeks, or 730 agonizing days since she received the pink slip informing her that her job had just become the latest casualty of the Great Recession. And she’s not alone: although the overall unemployment rate dropped to 8.3 percent in January – the lowest level in three years – nearly 13 million Americans are out of work and struggling to make ends meet.

While the U.S. economy is seeing signs of recovery – and, perhaps most importantly to those 13 million unemployed workers, job creation – it could take another five years before we see unemployment rates drop to pre-recession levels. Does that mean the out-of-work are simply out-of-luck?

Not a chance.

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Starting up a chauffeur business: a guide

admin — Wed, 04 Jan 2012 12:30:37 +0000

Starting up your own chauffeur business can be a lucrative move but, as with any new venture, it is important to do your research and make your service stand out from the rest. You assess whether there is a sufficient gap in the market to accommodate your company and, if there is, design a business plan before you go ahead.

Another important factor to take into consideration is giving your investment the protection it deserves with tailored chauffeur insurance. There is now a wide range of chauffeur insurance policies online where you can compare product features and prices and locate some of the best deals out there.

However, before you start operating as a chauffeur business, you are legally obliged to obtain the necessary licenses to do so. When this is complete, you can then start thinking about hiring your drivers and purchasing your cars. Your drivers are the face of your company and they are the people who will interact with your customers the most. It is therefore essential to hire skilled and high quality chauffeurs to make the best impression possible, and to help generate more custom as a result. The cars you buy should also comfortable, in pristine condition and up to standard.

It is often said that word-of-mouth is one of the most effective ways to get your business’ name about. However, most successful businesses incorporate a number of advertising strategies in their marketing plan. Perhaps the first place to start is by listing your chauffeur business in local chauffeur directories. You may also want to create your own website, where you can display details of your company – such as the services you offer, the vehicles you use and your standard rates – and invest in business cards to distribute to potential customers.

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

admin — Sun, 11 Dec 2011 06:12:48 +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 — Sat, 10 Dec 2011 06:07:43 +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, 09 Dec 2011 18:08:04 +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.

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How to track business expenses when starting out

admin — Fri, 09 Dec 2011 06:08:46 +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.

How a Quality Logo Can Help Your Business

webkriti — Tue, 22 Nov 2011 05:02:41 +0000

When you start a business, there’s a lot to think about. Getting the business plan together is a lot of work, as is securing a loan or other funding, but once these arduous tasks are done you can get started on the fun stuff like choosing a location, a name, and logo. Wait a minute; hold the phone. The “fun” stuff could actually make or break your business, so you cannot take it lightly. The implications of choosing the wrong location are obvious; if no one can find you or you’re too hard to get to, you’re not going to have any customers. And if your name is too hard to spell or remember, you’ll have the same problem. But when it comes to designing a quality logo, you may be scratching your head. What’s the difference? In truth, your logo could be the most important part of the equation. If a picture is worth a thousand words then your logo is easily worth a million.

Take a moment to consider some of the brand logos you see every day, like the golden arches, an apple with a bite out of it, or an unassuming swoosh. Anyone reading this can identify these brands as McDonald’s, Apple, and Nike just from reading these brief descriptions…you didn’t even have to see the logo! That is just a hint of the power that comes from a quality logo. Consumers will come to identify your logo with your brand. They will be one and the same. So if you cheap out on your logo, what are you saying about your business?

In truth, a lot of information goes into designing a logo. A good designer will want to know several things before he even gets started. What products or services do you offer? What are your business goals (not in terms of sales, but what do you stand for)? What demographics do you intend to target? And where will your logo be displayed? All of this information will play a role in the inception of your logo, so you need to have ready answers for your designer.

The reasons are multiple, but you need to understand, first and foremost, that your logo is a big part of how you build and enhance your brand image. It should tell your customers what you do and what your ideals are. Whether you’re in the computer industry, you offer security services, or you sell fast food, your logo should offer some hint of who you are. And you need for your logo to impart a feeling. McDonald’s sheltering golden arches, for example, are warm and inviting, a beacon that draws you to a place of comfort. The Nike swoosh, on the other hand, is powerful and authoritative, pointing you towards the future. These symbols make you feel something because they are designed to do so, and you want your logo to do the same for your brand.

Of course, it should also appeal to your intended consumer base, so market research may be necessary. And you need to consider whether or not the logo you choose will look as good on a billboard as it does on your letterhead or packaging. The point is, there’s a lot to consider where your logo design is concerned. So don’t phone it in! Devote some time to considering the questions above and set aside money to hire a decent logo designer. This one symbol could shape your brand identity and help or hinder your business.

Sarah Danielson is a contributing writer for LogoMojo, where you can create the perfect logo design for your business. LogoMojo also specializes in Twitter background designs to help showcase your brand.

How To Write A Business Plan

admin — Tue, 08 Nov 2011 21:16:37 +0000

If you are considering starting a new business, but you aren’t sure where to begin, you have come to the right place. The first major step you need to take as an entrepreneur is to write out a business plan. Now, the reality is that many aspiring entrepreneurs do not take the time to write out an exhaustive plan. The reason is simple—writing out a business plan is not exactly the most exciting task in the universe! It can be tedious and time-consuming, and developing product, talking with potential clients, marketing, design, etc—all these things are much more interesting and fun than writing. However, if you want to take your business venture seriously and reach the highest level of success possible, writing out an exhaustive business plan is absolutely essential.

Purpose of the Plan

The practical purpose of a business plan will vary depending on your needs as a company. For example, if your goal is to raise capital from angel investors to help fund the launch of your business, then your business plan will be tailored to interest and convince investors of the viability of your business model. On the other hand, if you are not seeking to raise capital, then your business plan is simply an internal document that acts as guide and compass to help direct you in your decision-making processes as the company grows.

The Power of a Plan

The real purpose of a business plan is to plan out your business. There is a definite sense of clarity and conviction that will come as you sketch out your idea on paper. This step of writing out the business plan is a major step in the journey of taking your idea and translating it into a viable business model that can be profitable on a consistent basis.

What To Include

Your business plan should be exhaustive. A small business with a very simple business model may take about 10 pages, but if your business model has any degree of complexity, your plan could very easily be upwards of 25-40 pages or more.

The business plan should include the following:

Executive Summary
Full Breakdown of Business Model
Marketing and Sales Plan
Financials

Those are the three basic components of a strong business plan. If you are trying to get a business loan with bad credit, it is possible. For a full breakdown of each component and other pieces that need included, you can download a free business plan template by simply searching Google, or you can visit your local Office Depot and buy one for a few bucks.

Perpetuity of the Plan

Your business plan is not something you write to simply get out of the way and then never think about it again. Instead, you should review your business plan at the end of each quarter and update it. First of all, conduct an analysis of the company’s operations and notice how well you are keeping in line with your true plan and mission critical objectives. If your company is headed in a new direction, make sure it makes sense with the business model you have built, and if it does, then make changes in the business plan.

Securing a business loan with bad credit is challenging, but very possible if you are diligent. If you take the time to write out your business plan as a first step in your business venture, you will be putting yourself ahead of the pack and building a strong foundation for business success.

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5 Reasons College Part-Timers Can Help You Grow Your Small Business

admin — Thu, 25 Aug 2011 22:14:49 +0000

This is a guest post from Jay Buerck

Struggling small businesses might have one more trick up their sleeves: hiring college part-timers. It’s an easy way to save a little on overhead while at the same time providing individuals with much-needed real world experience. But most important of all is the energy and determination that can often be found in the work ethics of college level employees. The following is a countdown of five reasons why recruiting college-level part-timers is a great way to boost your business:

#5 The Employee is Less Jaded/More Energized

Without years of working and amassing a fair share of unsavory work-related experiences, young part-timers look forward to their job. It’s a way to get paid, but more importantly, it’s simply exciting to have the opportunity work for a living. That sentiment wears off quick in the employer pool so take advantage of it while you can.

#4 Part-time Shifts Tend to be Worked Harder

When you have eight hours a day five days a week to accomplish tasks, you’re more likely to stretch it out. However, the four-hour work block gives a worker little time to waste. Part-timers see the light at the end of the tunnel as soon as they clock in and are therefore ready to get down to business. Full-time employees tend to dawdle in indecision when there’s no end in sight.

#3 Ambition is at a Fever-Pitch

College students are doing what they do because they plan on becoming professionals. Part-time college workers are going to extend those ambitions into your business. They may even be hankering to be hired by you once they graduate. Either way they’re more than willing to go the extra mile, because to them it’s just one more thing you’ll mention when a future interviewer calls you as a reference.

#2 College Kids Know Their Way Around Social Media

Small businesses these days have no hopes of succeeding without engaging in social media. For business leaders with little interest in such trifles, college kids are the perfect cohort for accomplishing this necessity. Social media optimization will come naturally to many college-level workers. You can never have to worry about committing another Twitter gaffe again.

#1 Interns Can Only Do So Much

The Department of Labor issued a direct order last year specifically defining what an “intern” is. An intern is generally defined as unpaid labor wherein the intern receives experience that is equal to or more than the labor they contributed. What that means is that no, you can’t just count on an army of interns. By paying someone part-time, you can put them to serious work while still saving money.

College kids are ready and willing to work for you. Are you going to let them? It could do more for the future state of your business than you realize.