To select a business to do, the first thing we should understand is to know ourselves; the strengths and weaknesses. People are different. Some people do a job well,others may not do that so well. The entreprenerial habits are innate machanism?It hasn't really proved yet.To know yourself is the most important thing. We should systematically consider what kind of our business will be like. It was like to search the formula of our own success.
For example, people who love contact with others may like talking in a bargain of buying. Their business should be about buying or selling or will be primarily focused on customer service Some people love hard working regardless the jobs are difficult or easy. They should go well with factory management or similar ones. Habits are the key element that will drive us to the right way.
A few people can understand that they themselves own or outstanding points. So, they keep following the others’ trend and sometimes try to copy other’s business without consider their ability When you know that. The formula of success is you'll understand what you are still missing. You will need to build up missed skills and prepare for what you should learn or practice.
Next, you will select a business type and then find any systematic components of your business. You may seek knowledge and experience your business needs or even the points make your business different from ones in the market. When you study and understand the basic operations with a complete process. It must be your business’ location. You must know where your customers mostly are. To select the location of the business will tell you how much it will succeed.
The shop image is a big bang too. It’s the first thing catching a customer's eyes, isn't it? It looks like an attractive women or good looking men. The shop’s foreground attracting viewers makes them eager to know more inside. The shop’s right characteristics can be selected by the right consumers.
Next step is about labor. “Put the right man in the right job” is still okay. Man looks a cell of an important business. Some people have money to hire people to collect, such as a financial hero who may not good at marketing. Hero of the market may not be good for sales. Hero of the sale may not be so good in the computer building business.Like we’re finding the puzzles together. Perhaps, we gradually meet them if we learn them more.
When you start doing business, one thing that should be the emphasis on is thinking and solving problems quickly. People who can survive in business must have this skill. Every business must face a problem. It requires steadiness and resolving the problem quickly and accurately. Some may be rather cautious. They can deal with the problem before the problem occurred. Problems can be solved before the accident happens. We have to know enough our business’ condition, or in fact, understand it as much as we can- to know everything!
Purposeful emphasis and commitment will result in efforts to fight against many obstacles to go through. Let’s start!
วันพุธที่ 25 กุมภาพันธ์ พ.ศ. 2552
วันพุธที่ 11 กุมภาพันธ์ พ.ศ. 2552
Small Business Ideas
Small Business Ideas: GoArticles.com
Though lots of people have great small business ideas, the practical application of such ideas is the one that matters. Even the stage when you make up your mind about what to do to be in control of your life, job and career can prove extremely difficult sometimes. You should begin by some overall issues that are necessary for the implementation of any small business ideas you may have. Let's say you want to sell services or products, most expert small business ideas advise that only one item be supported as the focused efforts increase the level of competence and the chances for success. Moreover, when you dedicate your efforts to something you know well, results will appear sooner than if you devoted time to a totally new element. Do not ignore a certain hidden psychology in sales according to which your belief in the great features of the product is passed on to the customers, and this should set the line of conduct to only promote what you believe in.
Try to keep in mind the do's and don'ts common to most small business ideas. For instance, the cash-flow projection for twelve months in advance is necessary for any business that needs to grow. Then, spending a lot of money to start in a grand way could prove a fatal mistake when you lack a reputation and the credentials that help earn money. Stay low and take cautious steps without bringing about the risk of debt, mortgage or bankruptcy.
If you don't know what small business ideas to implement, perhaps it's good to investigate the opportunities and see what suits your case best. There are people who resign before they have their own business ready to make money. The problem is that sometimes things may not work the way you expect them to and competition with the former employer have severe consequences.
Familiarity with the domain you take your small business ideas from is essential for smart investments. Such knowledge comes with thorough personal documentation, from studies or from lots of working years in the field. Presently, there are even courses that assist people with their marketing difficulties, but such consultancy should be prior to the implementation of the small business ideas as such.
Though lots of people have great small business ideas, the practical application of such ideas is the one that matters. Even the stage when you make up your mind about what to do to be in control of your life, job and career can prove extremely difficult sometimes. You should begin by some overall issues that are necessary for the implementation of any small business ideas you may have. Let's say you want to sell services or products, most expert small business ideas advise that only one item be supported as the focused efforts increase the level of competence and the chances for success. Moreover, when you dedicate your efforts to something you know well, results will appear sooner than if you devoted time to a totally new element. Do not ignore a certain hidden psychology in sales according to which your belief in the great features of the product is passed on to the customers, and this should set the line of conduct to only promote what you believe in.
Try to keep in mind the do's and don'ts common to most small business ideas. For instance, the cash-flow projection for twelve months in advance is necessary for any business that needs to grow. Then, spending a lot of money to start in a grand way could prove a fatal mistake when you lack a reputation and the credentials that help earn money. Stay low and take cautious steps without bringing about the risk of debt, mortgage or bankruptcy.
If you don't know what small business ideas to implement, perhaps it's good to investigate the opportunities and see what suits your case best. There are people who resign before they have their own business ready to make money. The problem is that sometimes things may not work the way you expect them to and competition with the former employer have severe consequences.
Familiarity with the domain you take your small business ideas from is essential for smart investments. Such knowledge comes with thorough personal documentation, from studies or from lots of working years in the field. Presently, there are even courses that assist people with their marketing difficulties, but such consultancy should be prior to the implementation of the small business ideas as such.
วันอังคารที่ 10 กุมภาพันธ์ พ.ศ. 2552
Friendliness makes more money.
By Pim Pimol
Many times when I found the sale figures seemed dropdown, though it wasn't from area's economic problem. I must have taken into consideration why it happened. Sometimes, I found the drop didn't mean anything, not customers' buying habit, campaigns of competitors or even the products themselves. This might have been from some reasons but at that time we didn't know exactly what they were. During I seek for the answer, I thought I must have done something to the dropped figures. Sellers (of the direct sales business) or dealers are the best helper. We can ask them directly what happens with their customers, but.....It may be not a good way or they don't know the truth too.In this case, friendliness can help you. Invite a group of 8-10 persons to have a home dinner party with you. (In my country, when we are the host, guests won't have to share food or money with us.) You might find something surprising there!
Once I set up a dinner party at my friend's house. (She was pleased to do so.) I had told the customers in advance I had some of new product samples to give them and this might have made more money for them.Before talking about the products, we had a special meal and chat. Then one or two of them asked me what the new products were like. Yes, this was a good opportunity to describe in details. Eat and drink together can bring you more good relationship with others. Surprisingly, I got some advice and complaints about product packages, goods delivery and others. Besides, I got a number of new orders from them when I sent them samples. One month after that the sales figures were increased. Some sellers called me directly instead of ordering goods from their heads as it had ever been.
I think a good relationship is necessary for all businesspersons. It helps you closed to customers, dealer representatives, direct sellers and prospects. Sometimes we find some new connections with ones who we ignored before.Small businesses need it!
วันจันทร์ที่ 9 กุมภาพันธ์ พ.ศ. 2552
Cash Advance Good or Evil?
Cash Advance Good or Evil?: GoArticles.comSearch
by Daniel McDowell
When you do not have a financial emergency you really should not use any type of cash advance even from your actual employer. Money to take a vacation, down payment for a large purchase, or to send you relative for a birthday are not good ideas to use a cash advance for. Never use and reuse this type of loan for anything but a true emergency.
Most of these advance places don't go that high and usually limit the loan to $500.00 or less. Should you require a larger amount, please do some sort of informational search. Just because these are convenient as a fast fix after the fees and interest they are really disappointing after you end up paying back double or triple what you borrowed. You should not use these cash loans unless options have been exhausted and then only as a last resort. Remember these companies are not your buddies. They are in business to make money. With the latest banking crisis and home mortgage fiascoes consumers really need to be aware of what they are getting into.
National Loan companies are always a better avenue. Even though you might not have stellar credit or any type of collateral if you are denied by these folks or the bank do not jump at the chance to get a cash advance unless you are truly in dire straits. They will usually give you some small amount of an advance/loan but you will pay an extremely higher interest rate. Be proactive and get out of debt as soon as practicable. Seek qualified assistance from a financial adviser from your bank or even a private financial adviser. Their job is to teach you the best way in making all your payments and to use your own money to get you on tract to understanding and using your particular situation to the best possible avenue.Repayments of this type of advance will cost you a lot more than what you planned for. Read the contract before making any decision. Again you are always going to pay extra is it truly worth it?
Always think hard before you make a decision; Once the contract is signed you may have a life changing event that you cannot go back on. As new train of thought for you consider is this: Most Cash Advance places don't require even a credit check for an approval. Basically if you are breathing, have an I.D., social security number, telephone and address (a job also helps) you will probably going to be approved. This is why these folks are in business, TO GIVE LOANS. If you have already been to the bank, used up available credit on your credit card and have an actual emergency situation then a cash advance may be the easiest way to get some money. The idea to get extra money may seem good at the time but winds ups as not so good an idea. Be aware and be afraid if you wander into one of these places.
About the Author Daniel McDowell is an independent entrepreneur who has rode the elevator of debt all the way to the basement. Affiliated with http://www.rainbowadvantage.org in which a team of successful like minded entrepreneurs actually show you how they reached their goal of financial independence.http://www.dlmi.2ya.com/debt
by Daniel McDowell
When you do not have a financial emergency you really should not use any type of cash advance even from your actual employer. Money to take a vacation, down payment for a large purchase, or to send you relative for a birthday are not good ideas to use a cash advance for. Never use and reuse this type of loan for anything but a true emergency.
Most of these advance places don't go that high and usually limit the loan to $500.00 or less. Should you require a larger amount, please do some sort of informational search. Just because these are convenient as a fast fix after the fees and interest they are really disappointing after you end up paying back double or triple what you borrowed. You should not use these cash loans unless options have been exhausted and then only as a last resort. Remember these companies are not your buddies. They are in business to make money. With the latest banking crisis and home mortgage fiascoes consumers really need to be aware of what they are getting into.
National Loan companies are always a better avenue. Even though you might not have stellar credit or any type of collateral if you are denied by these folks or the bank do not jump at the chance to get a cash advance unless you are truly in dire straits. They will usually give you some small amount of an advance/loan but you will pay an extremely higher interest rate. Be proactive and get out of debt as soon as practicable. Seek qualified assistance from a financial adviser from your bank or even a private financial adviser. Their job is to teach you the best way in making all your payments and to use your own money to get you on tract to understanding and using your particular situation to the best possible avenue.Repayments of this type of advance will cost you a lot more than what you planned for. Read the contract before making any decision. Again you are always going to pay extra is it truly worth it?
Always think hard before you make a decision; Once the contract is signed you may have a life changing event that you cannot go back on. As new train of thought for you consider is this: Most Cash Advance places don't require even a credit check for an approval. Basically if you are breathing, have an I.D., social security number, telephone and address (a job also helps) you will probably going to be approved. This is why these folks are in business, TO GIVE LOANS. If you have already been to the bank, used up available credit on your credit card and have an actual emergency situation then a cash advance may be the easiest way to get some money. The idea to get extra money may seem good at the time but winds ups as not so good an idea. Be aware and be afraid if you wander into one of these places.
About the Author Daniel McDowell is an independent entrepreneur who has rode the elevator of debt all the way to the basement. Affiliated with http://www.rainbowadvantage.org in which a team of successful like minded entrepreneurs actually show you how they reached their goal of financial independence.http://www.dlmi.2ya.com/debt
วันอาทิตย์ที่ 8 กุมภาพันธ์ พ.ศ. 2552
How a Business Plan Can Save Your Company Money
How a Business Plan Can Save Your Company Money: GoArticles.com
How a Business Plan Can Save Your Company Money by Brian Hill
Many entrepreneurs are not aware of the importance of business planning. Some believe that a Business Plan is something that is hurriedly put together when the company needs a bank loan or is seeking outside equity capital. Actually, planning is one of the most critical business functions; success is very difficult to achieve without proper planning. Planning is also an ongoing function. Because the business environment changes so rapidly, you can't simply do an annual budget, tuck it away in a drawer and say you are all done with planning until next year. You need to update your forecast and strategies periodically during the year, quarterly at the very least.
The Business Plan document you create can actually save your business money, in a number of ways. First, it can help you reduce expenses. You might start your budgeting process by building a spreadsheet showing how much you spent in each major category last year, and then have a column next to that for your forecast expenditures for the upcoming year. There are bound to be categories where you can cut costs if you think creatively. Changing vendors is one example of how costs can be cut. We all get in a rut of just paying bills as they come in, without considering whether we are paying more than we need to. Categories such as shipping costs, insurance, travel and entertainment, and bank service charges are all areas where researching alternative vendors can lead to substantial savings. But you have to make the effort to seek out these savings.
A rigorous planning process can also help you uncover exciting new revenue opportunities for the coming year. Have a planning meeting with your management team where you brainstorm ideas for new products or services you could offer. Many times we overlook or underestimate a significant asset our company possesses: the skill sets and experience of our managers and employees. And the great thing is, these assets are already there, ready to be deployed. Better utilizing them will not cost any additional money. Small companies are not as burdened with the rigid hierarchy that large, unwieldy enterprises labor under. Encourage your employees--all of them from the janitor on up--to contribute ideas that might save the company money or increase revenues, and be sure to reward the employees whose suggestions you use. The planning process also forces you to take a critical look at how your company shapes up versus its competition, and how the competitive landscape is changing. Do you know how your products or services are priced versus your major competitors? You should. Do you know how your products and services are perceived by customers, versus your competitors' products or services? You won't know unless you take the time to ask them.
The planning process also forces you to critically examine your business strategies, and determine what worked, what didn't work and what can be improved in the coming year. This can be an eye opening, even sobering experience. Continued business success requires an attitude of constantly striving to do everything more efficiently, to improve every aspect of your product or service offering to keep ahead of your competitors. Companies that are content to do things the way they've always done them usually end up suffering a decline in market share and profitability. Unfortunately, some the mightiest corporations in America have had to learn this lesson the hard way.
About the Author Get your free business plan format Brian Hill is the author of the novel, Over Time, and several nonfiction books as well as Business Plan Basics a business planning system. He reviews business plans as well.
How a Business Plan Can Save Your Company Money by Brian Hill
Many entrepreneurs are not aware of the importance of business planning. Some believe that a Business Plan is something that is hurriedly put together when the company needs a bank loan or is seeking outside equity capital. Actually, planning is one of the most critical business functions; success is very difficult to achieve without proper planning. Planning is also an ongoing function. Because the business environment changes so rapidly, you can't simply do an annual budget, tuck it away in a drawer and say you are all done with planning until next year. You need to update your forecast and strategies periodically during the year, quarterly at the very least.
The Business Plan document you create can actually save your business money, in a number of ways. First, it can help you reduce expenses. You might start your budgeting process by building a spreadsheet showing how much you spent in each major category last year, and then have a column next to that for your forecast expenditures for the upcoming year. There are bound to be categories where you can cut costs if you think creatively. Changing vendors is one example of how costs can be cut. We all get in a rut of just paying bills as they come in, without considering whether we are paying more than we need to. Categories such as shipping costs, insurance, travel and entertainment, and bank service charges are all areas where researching alternative vendors can lead to substantial savings. But you have to make the effort to seek out these savings.
A rigorous planning process can also help you uncover exciting new revenue opportunities for the coming year. Have a planning meeting with your management team where you brainstorm ideas for new products or services you could offer. Many times we overlook or underestimate a significant asset our company possesses: the skill sets and experience of our managers and employees. And the great thing is, these assets are already there, ready to be deployed. Better utilizing them will not cost any additional money. Small companies are not as burdened with the rigid hierarchy that large, unwieldy enterprises labor under. Encourage your employees--all of them from the janitor on up--to contribute ideas that might save the company money or increase revenues, and be sure to reward the employees whose suggestions you use. The planning process also forces you to take a critical look at how your company shapes up versus its competition, and how the competitive landscape is changing. Do you know how your products or services are priced versus your major competitors? You should. Do you know how your products and services are perceived by customers, versus your competitors' products or services? You won't know unless you take the time to ask them.
The planning process also forces you to critically examine your business strategies, and determine what worked, what didn't work and what can be improved in the coming year. This can be an eye opening, even sobering experience. Continued business success requires an attitude of constantly striving to do everything more efficiently, to improve every aspect of your product or service offering to keep ahead of your competitors. Companies that are content to do things the way they've always done them usually end up suffering a decline in market share and profitability. Unfortunately, some the mightiest corporations in America have had to learn this lesson the hard way.
About the Author Get your free business plan format Brian Hill is the author of the novel, Over Time, and several nonfiction books as well as Business Plan Basics a business planning system. He reviews business plans as well.
Does My Small Business Need a Budget?
Does My Small Business Need a Budget?By: Melody Campbell
"I only have a small business, I don't need a budget." "I don't have enough money to budget." For many small business owners, the word "budget" is something for the bigger company - maybe they'll have one when their business "grows up." What is a Budget?The simple explanation is a budget is a plan for how you will manage all financial resources and all expenses for your business. The basic equation that you want to demonstrate in a budget is as follows: (estimated )Sales minus (estimated) Expenses = Profit (or loss) How to create a BudgetIf this is your first time to work on a budget for your small business, you might work from the perspective of having to list cost of goods or services plus all of your operating expenses to start the process. How much does it take to operate your phone line? What is the cost of other utilities? How about the cost of a company vehicle, or what is the cost of transportation if you're using your personal vehicle to also serve as a company vehicle. Do you need any supplies or inventory to operate your business? How about any employee payroll, payroll taxes or independent product or service providers?
Remember to include everything you spend money on to operate your business even if you allocate some of the expenses to "petty cash" expenses, such as parking or bridge tolls while traveling to see clients. I recommend that you create annual budget, as opposed to a monthly budget, so you can identify any expenses that you may have that come up only once or twice a year such as insurance and include them in your list of expenses. This allows you to amortize or spread the cost of this out over several months so that you can plan ahead for the expense. As you work on your list of expenses keep in mind that these are the expenses that are necessary to operate your business. These should not be your "wish list" unless you want to budget in some expansion or growth. You may want to create a budget with just the necessities and another version of your budget with expansion expenses listed so that you can see the cost of both separately. With a dollar figure to work with of your total expenses you are able to set the standard for or evaluate your sales figures. If you are new to your business you may need to use the dollar amount of your expenses to help you determine what your sales need to be in order to cover all costs and show a profit. If you have been in business for a while you can evaluate whether or not you are producing a profit by looking at historical sales figures. As you conduct business during your budget year you should compare your actual income and spending with what you estimated. This will allow you to manage your spending so that you don't over spend and cut into or eliminate your profits. You will also be able to see if sales have met expectations in order to cover expenses and still remain profitable. Who should Budget?Every small business owner should budget, no matter the size of business. I have heard some small business owners say their business is too small to budget, but that is not true. If you don't have a written plan for what your financial obligations are and how your revenue will cover those obligations and leave some money unspent, then your business will never grow. In fact, you may out-spend your revenue and put yourself out of business. Why Budget?Budgeting for your small business gives you control over your finances. By looking ahead to what you know or can reasonably estimate what your expenses will be, you can then make financial decisions that will keep you from over-spending, or give you the freedom to invest in the growth of your business.
When Budget?Every small business owner should have a budget to start their business and then review it annually. I recommend that small business owners review their budget several months before the end of their fiscal year. When I say review the budget I'm talking about comparing projected budget with actual. In the comparison you can see if your estimates were realistic. You and your CPA can also plan for last minute tax strategies, or plan to implement strategies in the up coming year's budget. The Goal in BudgetingRemember, the goal of having a budget is to stay in control of your finances in advance. Setting the standard for your spending and revenue and having a tool to compare with actual will give you the control that you need to stay profitable. At the very least it will give you an indication of whether or not your business is actually profitable and not just busy. ResourceThrow away all your receipts! Yes, you can throw them all away after you've scanned them into NeatReceipts. This handy tool is operated by scanning all of your receipts using a portable scanner into your computer or laptop. The software can produce expense reports or you can import the information from the receipts into your accounting software such as Quicken or QuickBooks. Once the receipt has been scanned into your computer you have a digital copy so you can through the receipt away. No more shoe boxes full of receipts!
http://www.thesmallbusinessguru.com/products/item10.cfm Author BioMelody Campbell is The Small Business Guru. You can view more Small Business Owner Resources at The Small Business Guru website. Educate yourself for Success in the Core Competencies to becoming a Master Small Business Owner. New monthly membership trial for only $1 for the first 30 days! www.thesmallbusinessguru.com
Article Source: http://www.ArticleGeek.com - Free Website Content
"I only have a small business, I don't need a budget." "I don't have enough money to budget." For many small business owners, the word "budget" is something for the bigger company - maybe they'll have one when their business "grows up." What is a Budget?The simple explanation is a budget is a plan for how you will manage all financial resources and all expenses for your business. The basic equation that you want to demonstrate in a budget is as follows: (estimated )Sales minus (estimated) Expenses = Profit (or loss) How to create a BudgetIf this is your first time to work on a budget for your small business, you might work from the perspective of having to list cost of goods or services plus all of your operating expenses to start the process. How much does it take to operate your phone line? What is the cost of other utilities? How about the cost of a company vehicle, or what is the cost of transportation if you're using your personal vehicle to also serve as a company vehicle. Do you need any supplies or inventory to operate your business? How about any employee payroll, payroll taxes or independent product or service providers?
Remember to include everything you spend money on to operate your business even if you allocate some of the expenses to "petty cash" expenses, such as parking or bridge tolls while traveling to see clients. I recommend that you create annual budget, as opposed to a monthly budget, so you can identify any expenses that you may have that come up only once or twice a year such as insurance and include them in your list of expenses. This allows you to amortize or spread the cost of this out over several months so that you can plan ahead for the expense. As you work on your list of expenses keep in mind that these are the expenses that are necessary to operate your business. These should not be your "wish list" unless you want to budget in some expansion or growth. You may want to create a budget with just the necessities and another version of your budget with expansion expenses listed so that you can see the cost of both separately. With a dollar figure to work with of your total expenses you are able to set the standard for or evaluate your sales figures. If you are new to your business you may need to use the dollar amount of your expenses to help you determine what your sales need to be in order to cover all costs and show a profit. If you have been in business for a while you can evaluate whether or not you are producing a profit by looking at historical sales figures. As you conduct business during your budget year you should compare your actual income and spending with what you estimated. This will allow you to manage your spending so that you don't over spend and cut into or eliminate your profits. You will also be able to see if sales have met expectations in order to cover expenses and still remain profitable. Who should Budget?Every small business owner should budget, no matter the size of business. I have heard some small business owners say their business is too small to budget, but that is not true. If you don't have a written plan for what your financial obligations are and how your revenue will cover those obligations and leave some money unspent, then your business will never grow. In fact, you may out-spend your revenue and put yourself out of business. Why Budget?Budgeting for your small business gives you control over your finances. By looking ahead to what you know or can reasonably estimate what your expenses will be, you can then make financial decisions that will keep you from over-spending, or give you the freedom to invest in the growth of your business.
When Budget?Every small business owner should have a budget to start their business and then review it annually. I recommend that small business owners review their budget several months before the end of their fiscal year. When I say review the budget I'm talking about comparing projected budget with actual. In the comparison you can see if your estimates were realistic. You and your CPA can also plan for last minute tax strategies, or plan to implement strategies in the up coming year's budget. The Goal in BudgetingRemember, the goal of having a budget is to stay in control of your finances in advance. Setting the standard for your spending and revenue and having a tool to compare with actual will give you the control that you need to stay profitable. At the very least it will give you an indication of whether or not your business is actually profitable and not just busy. ResourceThrow away all your receipts! Yes, you can throw them all away after you've scanned them into NeatReceipts. This handy tool is operated by scanning all of your receipts using a portable scanner into your computer or laptop. The software can produce expense reports or you can import the information from the receipts into your accounting software such as Quicken or QuickBooks. Once the receipt has been scanned into your computer you have a digital copy so you can through the receipt away. No more shoe boxes full of receipts!
http://www.thesmallbusinessguru.com/products/item10.cfm Author BioMelody Campbell is The Small Business Guru. You can view more Small Business Owner Resources at The Small Business Guru website. Educate yourself for Success in the Core Competencies to becoming a Master Small Business Owner. New monthly membership trial for only $1 for the first 30 days! www.thesmallbusinessguru.com
Article Source: http://www.ArticleGeek.com - Free Website Content
Be Smart - Learn From Your Business Mistakes
Be Smart - Learn From Your Business Mistakes By: Kevin Sinclair
We all make mistakes in business. The important issue is that we learn from them and apply the lessons in both our online and off-line business activities. One of my most costly mistakes happened about twelve years ago in the off-line business world. However, the lessons I learnt are just as applicable online as they are off-line.
Having established a small mail order business part-time, I decided to expand the business using direct mail techniques. I had read all the books and attended a course and it seemed like the best approach to achieve my goals. After approaching various mailing list providers, I decided I had found the perfect list to reach my target market.
Pricing was obtained from the list owner and he was happy to provide me with small quantities of names initially so that I could test his list. These tests were successful enough for me to decide to undertake two large mail campaigns one after the other. I was very confident that I would be receiving countless orders and soon leaving my full-time job.
Disaster struck with the first mailing and the second mailing was too far progressed to stop. The initial sign was a significant increase in the dead letter rate. Then the quantity of orders was less than half what I expected. The second mailing had similar results. I was significantly out of pocket and I had to stay in my full-time job to repay the debts I had created.
Shortly thereafter, I began to read reports that the list owner was being investigated for fraud and other criminal charges. All in all, a sorry state of affairs.
The key lessons I learnt from this experience were:
a) Always check the integrity of who you are doing business with - especially if you have not had previous dealings with them.
b) Never assume that limited test results will be duplicated in larger scale tests.
c) Never over-commit to promotional activity - it is better to grow slower than to lose your hard earned money.
d) The stated size and quality of a mailing list should be regarded with caution.
e) Ensure you have sufficient profit margin in your product to be able to survive should your response be very poor - especially in direct marketing activities.
Today, the lessons I learnt are applied to my online business activities in the following ways.
Solo mailings to lists of newsletter subscribers are done with caution. Some list owners will inflate their subscriber numbers to encourage advertisers to use their services. The first thing I do is subscribe to the newsletter to see the quality of content and what others are advertising via solo ads.
Then I run a classified ad in the newsletter to test the responsiveness of the subscribers. This also gives me an indication of whether the stated size of the list is true or not. I have had better response from a list of 20,000 than what I received from a list of over 200,000. Many factors can influence such a result.
While you should receive a far better response from solo ads than classified ads, it still pays to test wherever you can. If a classified ad in the newsletter did not result in responses, I would not advertise using the solo ads. However, I might test a few different classified ads to see if the initial results were correct before moving on to other possibilities.
It is worthwhile to "do the numbers" before spending on advertising. While many marketing experts talk about the 'lifetime value of a customer' concept, those whose business activities centre on promoting the products of affiliate programs should regard this with caution. Instead, determine how many must be sold so that the commission you receive will cover the cost of your advertising.
The higher the percentage response to your offer you need to cover your advertising cost, the greater the chance you will make a loss. Do not rely on industry statistics or averages to make your decisions. Keep careful records of your activities so you know what works, what is to be avoided and what to expect from future promotional activities.
Finally, exercise caution when considering safe-lists and any type of email address lists that can be purchased. My experience is that there are NO truly safe-lists available other than having your own opt-in list. Any form of bulk email to people who have not agreed to receive your message will damage your business reputation and your prospects of making a decent living on the Internet.
Author BioArticle by Kevin Sinclair, CPA, of Personal & Business Success Resources. Visit his website at www.business.ksinclair.com . Article Source: http://www.ArticleGeek.com - Free Website Content Related Small Business Articles
We all make mistakes in business. The important issue is that we learn from them and apply the lessons in both our online and off-line business activities. One of my most costly mistakes happened about twelve years ago in the off-line business world. However, the lessons I learnt are just as applicable online as they are off-line.
Having established a small mail order business part-time, I decided to expand the business using direct mail techniques. I had read all the books and attended a course and it seemed like the best approach to achieve my goals. After approaching various mailing list providers, I decided I had found the perfect list to reach my target market.
Pricing was obtained from the list owner and he was happy to provide me with small quantities of names initially so that I could test his list. These tests were successful enough for me to decide to undertake two large mail campaigns one after the other. I was very confident that I would be receiving countless orders and soon leaving my full-time job.
Disaster struck with the first mailing and the second mailing was too far progressed to stop. The initial sign was a significant increase in the dead letter rate. Then the quantity of orders was less than half what I expected. The second mailing had similar results. I was significantly out of pocket and I had to stay in my full-time job to repay the debts I had created.
Shortly thereafter, I began to read reports that the list owner was being investigated for fraud and other criminal charges. All in all, a sorry state of affairs.
The key lessons I learnt from this experience were:
a) Always check the integrity of who you are doing business with - especially if you have not had previous dealings with them.
b) Never assume that limited test results will be duplicated in larger scale tests.
c) Never over-commit to promotional activity - it is better to grow slower than to lose your hard earned money.
d) The stated size and quality of a mailing list should be regarded with caution.
e) Ensure you have sufficient profit margin in your product to be able to survive should your response be very poor - especially in direct marketing activities.
Today, the lessons I learnt are applied to my online business activities in the following ways.
Solo mailings to lists of newsletter subscribers are done with caution. Some list owners will inflate their subscriber numbers to encourage advertisers to use their services. The first thing I do is subscribe to the newsletter to see the quality of content and what others are advertising via solo ads.
Then I run a classified ad in the newsletter to test the responsiveness of the subscribers. This also gives me an indication of whether the stated size of the list is true or not. I have had better response from a list of 20,000 than what I received from a list of over 200,000. Many factors can influence such a result.
While you should receive a far better response from solo ads than classified ads, it still pays to test wherever you can. If a classified ad in the newsletter did not result in responses, I would not advertise using the solo ads. However, I might test a few different classified ads to see if the initial results were correct before moving on to other possibilities.
It is worthwhile to "do the numbers" before spending on advertising. While many marketing experts talk about the 'lifetime value of a customer' concept, those whose business activities centre on promoting the products of affiliate programs should regard this with caution. Instead, determine how many must be sold so that the commission you receive will cover the cost of your advertising.
The higher the percentage response to your offer you need to cover your advertising cost, the greater the chance you will make a loss. Do not rely on industry statistics or averages to make your decisions. Keep careful records of your activities so you know what works, what is to be avoided and what to expect from future promotional activities.
Finally, exercise caution when considering safe-lists and any type of email address lists that can be purchased. My experience is that there are NO truly safe-lists available other than having your own opt-in list. Any form of bulk email to people who have not agreed to receive your message will damage your business reputation and your prospects of making a decent living on the Internet.
Author BioArticle by Kevin Sinclair, CPA, of Personal & Business Success Resources. Visit his website at www.business.ksinclair.com . Article Source: http://www.ArticleGeek.com - Free Website Content Related Small Business Articles
Sources of Capital for New, Start-up Businesses
Sources of Capital for New, Start-up Businesses: GoArticles.com Sources of Capital for New, Start-up Businesses by Joseph Lizio
As the economy continues to face credit challenges, small businesses, especially new, start-up companies are finding it even more difficult to find the capital they need to take their ideas and concepts and turn them into viable businesses. Private equity firms and angel groups are no longer actively seeking new investments. They are more concerned with preserving and protecting their current portfolios. Further, private investors, like your neighbor or local doctors, accounts, lawyers, are not investing in local companies as their investments and retirement portfolios (usually the main source of their investment capital) have taken such large hits that any new investments are just out of the question. Bootstrapping, by far the greatest source of capital for new businesses, is drying up fast. Credit card issuers and backers are pulling programs, tightening approvals and reducing limits. Friends and families are struggling just to survive themselves and do not have the disposable income to investment in your company. Taking loans from retirement accounts are nearly impossible today as the market values of these assets have drop so dramatically over the last two quarters. There just isn't the value there to take a loan against. SBA backed loans remain just a difficult and costly to obtain as always. These loans still need to be underwritten by traditional lenders who are not making any loans at all as well as be underwritten by the SBA who has followed the banks' course in tightening standards. So, what are new, small businesses to do? A few suggestions are as follows: First, start smaller and work your way up. Small scale operations mean smaller capital needs. Thus, the small amount of capital a new entrepreneur does have (savings, home equity, retirement plans) can be used to jump start a business if it is designed on a smaller scale. Micro-Loans: Micro-loans are loans for small organizations or start-up companies that do not qualify for regular loan facilities. These loans usually range from $500 to $25,000 and take up to five weeks for approval and funding. Personal Loans: There are still a few companies that make personal loans from $10,000 to $100,000 provided the borrower has excellent (and I mean excellent) credit and a demonstrated ability to make the loan payments. Asset Based Facilities: If your business has some proven track record, even if it is just for a few months, and has generated some financial assets like accounts receivables or credit card receipts, you may qualify for capital against those assets. Account Receivable Factoring can help speed up your cash flow while you wait for your customers to pay you. You can then access working capital that can be used to generate new business, cover current liabilities obligations, or make payroll. There are companies that will factor receivables as low as $200. Included with Accounts Receivable Factoring is Purchase Order Financing. If your business has an order to be filled but does not have the money to complete the order (e.g. buy supplies or equipment or hire needed labor) Purchase Order financiers will provide the funds needed based on that order. Business Cash Advances, while not really a loan, can provide working capital against FUTURE credit card sales. The funds can be use for any purpose and could provide the capital your business needs to get it through these troubled times. Equipment: Do you own some equipment outright? If so, you can sale that equipment (including tools and machinery) to a leasing company. Then, lease the equipment back from the lessor. You get the cash you need now and still benefit from possible tax deductions of the lease payments and other costs. Where there is a will, there is always a way. These may not be the cheapest financial products in the market but for most business owners and start-ups, these may be the only option. When seeking capital in this market, try to keep in mind that it is only temporary. The markets will turn around and lending standard will loosen. So, what you seek now should only suffice enough to get your new, start-up business through this down period.
About the Author Joseph Lizio holds an MBA in Finance and Entrepreneurship and has a strong commercial lending background. In his current venture, Mr. Lizio is the founder of www.businessmoneytoday.com - a site designed to help business owners find and obtain capital to grow their businesses.
As the economy continues to face credit challenges, small businesses, especially new, start-up companies are finding it even more difficult to find the capital they need to take their ideas and concepts and turn them into viable businesses. Private equity firms and angel groups are no longer actively seeking new investments. They are more concerned with preserving and protecting their current portfolios. Further, private investors, like your neighbor or local doctors, accounts, lawyers, are not investing in local companies as their investments and retirement portfolios (usually the main source of their investment capital) have taken such large hits that any new investments are just out of the question. Bootstrapping, by far the greatest source of capital for new businesses, is drying up fast. Credit card issuers and backers are pulling programs, tightening approvals and reducing limits. Friends and families are struggling just to survive themselves and do not have the disposable income to investment in your company. Taking loans from retirement accounts are nearly impossible today as the market values of these assets have drop so dramatically over the last two quarters. There just isn't the value there to take a loan against. SBA backed loans remain just a difficult and costly to obtain as always. These loans still need to be underwritten by traditional lenders who are not making any loans at all as well as be underwritten by the SBA who has followed the banks' course in tightening standards. So, what are new, small businesses to do? A few suggestions are as follows: First, start smaller and work your way up. Small scale operations mean smaller capital needs. Thus, the small amount of capital a new entrepreneur does have (savings, home equity, retirement plans) can be used to jump start a business if it is designed on a smaller scale. Micro-Loans: Micro-loans are loans for small organizations or start-up companies that do not qualify for regular loan facilities. These loans usually range from $500 to $25,000 and take up to five weeks for approval and funding. Personal Loans: There are still a few companies that make personal loans from $10,000 to $100,000 provided the borrower has excellent (and I mean excellent) credit and a demonstrated ability to make the loan payments. Asset Based Facilities: If your business has some proven track record, even if it is just for a few months, and has generated some financial assets like accounts receivables or credit card receipts, you may qualify for capital against those assets. Account Receivable Factoring can help speed up your cash flow while you wait for your customers to pay you. You can then access working capital that can be used to generate new business, cover current liabilities obligations, or make payroll. There are companies that will factor receivables as low as $200. Included with Accounts Receivable Factoring is Purchase Order Financing. If your business has an order to be filled but does not have the money to complete the order (e.g. buy supplies or equipment or hire needed labor) Purchase Order financiers will provide the funds needed based on that order. Business Cash Advances, while not really a loan, can provide working capital against FUTURE credit card sales. The funds can be use for any purpose and could provide the capital your business needs to get it through these troubled times. Equipment: Do you own some equipment outright? If so, you can sale that equipment (including tools and machinery) to a leasing company. Then, lease the equipment back from the lessor. You get the cash you need now and still benefit from possible tax deductions of the lease payments and other costs. Where there is a will, there is always a way. These may not be the cheapest financial products in the market but for most business owners and start-ups, these may be the only option. When seeking capital in this market, try to keep in mind that it is only temporary. The markets will turn around and lending standard will loosen. So, what you seek now should only suffice enough to get your new, start-up business through this down period.
About the Author Joseph Lizio holds an MBA in Finance and Entrepreneurship and has a strong commercial lending background. In his current venture, Mr. Lizio is the founder of www.businessmoneytoday.com - a site designed to help business owners find and obtain capital to grow their businesses.
Business Ideas? Have You Seen These 5 Great New Ideas?
Business Ideas? Have You Seen These 5 Great New Ideas?: GoArticles.combe Business Ideas? Have You Seen These 5 Great New Ideas? by Terry Kyle If you are considering your own small business or home business, you need to be aware of new business ideas and innovation from all around the world. Here are five actual new business ideas making real money today these are not just vague, random concepts. Here are five interesting new business ideas from around the world for small business or home business entrepreneurs:
1. Wearable Airbag For Motorcyclists. The "D-Air System" is a part of a specialized motorcycle jacket that deploys in 40 milliseconds when it senses that the rider is falling.
Such a technology seems likely to become mandatory for all motorcyclists to wear given the legal necessity of cars to have airbags since 1989 in the US. This looks like a classic case of a neat tech device potentially saving many lives.
2. Optical Illusion 'Truckvertising'. While advertising on large trucks like mobile billboards has been around for ages, creating clever, striking and engaging optical illusions with those advertising spaces has not. What a brilliant way to promote your new small business in your area or as a small business in itself. The trucks themselves also serve as ads for such a brilliant small business.
3. Miss Army Knife - The Female 'Swiss Army' Knife - Get It? (a.k.a. Miss A Kit) Designed for women, the Miss Army Knife, like its iconic male counterpart, features a range of tools in one utility device except for female use. Tools on the Miss Army Knife include tweezers, nail file, safety pin and corkscrew.
4. Self-Powering 'Eco-Nightclub'. Tapping into the need for energy consciousness in all aspects of our lives, one London disco - Surya - harnesses piezoelectricity (whatever that is) by generating 60% of its energy needs from its dance floor when danced on. The green entrepreneur responsible is 35-year-old property developer Andrew Charalambous who believes that his new baby is the world's first ecological nightclub. The club's slogan? "All you have to do is dance to save the world".
5. Fair Trade Vending Machines. Fair Trade products are gaining momentum in normal grocery retail channels through coffee (close to 50% of coffee sales in Tesco in the UK apparently) and sugar so the next logical step is to offer Fair Trade products through vending machines - especially in socially conscious environments at first, such as colleges and universities. This actually gives people the physical means to do nifty stuff for our world rather than them just having the vague, unfulfilled desire to help. Nice.
About the Author Find out about over 400 other great new business ideas by visiting www.Latest-Business-Ideas.com now: 400+ real new small businesses and home businesses all over the world making real money today.
1. Wearable Airbag For Motorcyclists. The "D-Air System" is a part of a specialized motorcycle jacket that deploys in 40 milliseconds when it senses that the rider is falling.
Such a technology seems likely to become mandatory for all motorcyclists to wear given the legal necessity of cars to have airbags since 1989 in the US. This looks like a classic case of a neat tech device potentially saving many lives.
2. Optical Illusion 'Truckvertising'. While advertising on large trucks like mobile billboards has been around for ages, creating clever, striking and engaging optical illusions with those advertising spaces has not. What a brilliant way to promote your new small business in your area or as a small business in itself. The trucks themselves also serve as ads for such a brilliant small business.
3. Miss Army Knife - The Female 'Swiss Army' Knife - Get It? (a.k.a. Miss A Kit) Designed for women, the Miss Army Knife, like its iconic male counterpart, features a range of tools in one utility device except for female use. Tools on the Miss Army Knife include tweezers, nail file, safety pin and corkscrew.
4. Self-Powering 'Eco-Nightclub'. Tapping into the need for energy consciousness in all aspects of our lives, one London disco - Surya - harnesses piezoelectricity (whatever that is) by generating 60% of its energy needs from its dance floor when danced on. The green entrepreneur responsible is 35-year-old property developer Andrew Charalambous who believes that his new baby is the world's first ecological nightclub. The club's slogan? "All you have to do is dance to save the world".
5. Fair Trade Vending Machines. Fair Trade products are gaining momentum in normal grocery retail channels through coffee (close to 50% of coffee sales in Tesco in the UK apparently) and sugar so the next logical step is to offer Fair Trade products through vending machines - especially in socially conscious environments at first, such as colleges and universities. This actually gives people the physical means to do nifty stuff for our world rather than them just having the vague, unfulfilled desire to help. Nice.
About the Author Find out about over 400 other great new business ideas by visiting www.Latest-Business-Ideas.com now: 400+ real new small businesses and home businesses all over the world making real money today.
Small Business Ideas: Tips to Put Them into Practice
Small Business Ideas: Tips to Put Them into Practice: GoArticles.comSearch Small Business Ideas: Tips to Put Them into Practice by Francisca Cahyaningsih
Lots of people have small business ideas that they often fail to put into practice either because they lack the money to make an investment or because the fear to lose everything. Even the stage when you make up your mind about what to do to be in control of your life, job and career can prove extremely difficult sometimes. You should begin by some overall issues that are necessary for the implementation of any small business ideas you may have. Let's assume you want to work in the sale sector and try to promote a range of products, it is wise and safe to start with the promotion of one item only and then grow from there. Moreover, always choose to promote something you know lots of things about and that you know how to approach and present to others. Do not ignore a certain hidden psychology in sales according to which your belief in the quality of the product is passed on to the customers, and this should set the line of conduct to only promote what you believe in. Try to keep in mind the do's and don'ts common to most small business ideas. For example, the cash-flow projection for year in advance stays a necessity for any business that needs to grow. Then, spending a lot of money to start in a grand way could prove a fatal mistake when you lack a reputation and the credentials that help earn money. Stay low and take small steps without risking to get in debt and not have the money to pay back the loans. If you don't know what small business ideas to implement, perhaps it's good to make some research and see what suits your case best. There are people who resign before they have their own business ready to make money. The problem is that sometimes things may not work the way you expect them to and competition with the former employer have severe consequences.
About the Author Francisca Cahyaningsih is an internet writer who has generated many articles published in the internet. She now actively writes articles for http://www.answer5wh.com. Francisca is also a bachelor of English Education Study Program, a singing coach and both Javanese and Balinese dancer. Francisca currently resides in Indonesia with her husband and son
Lots of people have small business ideas that they often fail to put into practice either because they lack the money to make an investment or because the fear to lose everything. Even the stage when you make up your mind about what to do to be in control of your life, job and career can prove extremely difficult sometimes. You should begin by some overall issues that are necessary for the implementation of any small business ideas you may have. Let's assume you want to work in the sale sector and try to promote a range of products, it is wise and safe to start with the promotion of one item only and then grow from there. Moreover, always choose to promote something you know lots of things about and that you know how to approach and present to others. Do not ignore a certain hidden psychology in sales according to which your belief in the quality of the product is passed on to the customers, and this should set the line of conduct to only promote what you believe in. Try to keep in mind the do's and don'ts common to most small business ideas. For example, the cash-flow projection for year in advance stays a necessity for any business that needs to grow. Then, spending a lot of money to start in a grand way could prove a fatal mistake when you lack a reputation and the credentials that help earn money. Stay low and take small steps without risking to get in debt and not have the money to pay back the loans. If you don't know what small business ideas to implement, perhaps it's good to make some research and see what suits your case best. There are people who resign before they have their own business ready to make money. The problem is that sometimes things may not work the way you expect them to and competition with the former employer have severe consequences.
About the Author Francisca Cahyaningsih is an internet writer who has generated many articles published in the internet. She now actively writes articles for http://www.answer5wh.com. Francisca is also a bachelor of English Education Study Program, a singing coach and both Javanese and Balinese dancer. Francisca currently resides in Indonesia with her husband and son
Small Business Ideas
Small Business Ideas by Kalidas GoArticles.com
Though lots of people have great small business ideas, the practical application of such ideas is the one that matters. Even the stage when you make up your mind about what to do to be in control of your life, job and career can prove extremely difficult sometimes. Before getting to act per se, analyze all the issues and aspects related to the implementation of several small business ideas.
Let's assume you want to work in the sale sector and try to promote a range of products, it is wise and safe to start with the promotion of one item only and then grow from there. Moreover, always choose to promote something you know lots of things about and that you know how to approach and present to others. Do not ignore a certain hidden sales psychological impact according to which your belief in the great features of the product is passed on to the customers, and this means that you need to be certain that what you sell is good. Try to keep in mind the do's and don'ts common to most small business ideas. For instance, the cash-flow projection for twelve months in advance stays a necessity for any business that needs to grow. Then, starting big could be a challenge or a stupid thing to do as long as you don't have a reputation and the credentials necessary to make a name on the market. Stay low and take cautious steps without risking to get in debt and not have the money to pay back the loans. If you don't know what small business ideas to stick to, perhaps it's good to investigate the opportunities and see what matches best with your overall situation. There are people who choose to quit their job and start a business competitive to the one they used to work for. The problem is that sometimes things may not work the way you expect them to and competition with the former employer have severe consequences.
Familiarity with the domain you take your small business ideas from is essential for smart investments. Such knowledge results from thorough personal documentation, from years of working in the field or from studies. Presently, there are even courses that assist people with their marketing difficulties, but such consultancy should be prior to the implementation of the small business ideas as such.
When you are choosing among the small business ideas, and looking for the one that is best for you, be sure to look at the long-term possibilities for you new business. While you are in control of the growth and may want to keep the business small, it would be nice to have an option if you should change your mind and decide to spread your wings.
Though lots of people have great small business ideas, the practical application of such ideas is the one that matters. Even the stage when you make up your mind about what to do to be in control of your life, job and career can prove extremely difficult sometimes. Before getting to act per se, analyze all the issues and aspects related to the implementation of several small business ideas.
Let's assume you want to work in the sale sector and try to promote a range of products, it is wise and safe to start with the promotion of one item only and then grow from there. Moreover, always choose to promote something you know lots of things about and that you know how to approach and present to others. Do not ignore a certain hidden sales psychological impact according to which your belief in the great features of the product is passed on to the customers, and this means that you need to be certain that what you sell is good. Try to keep in mind the do's and don'ts common to most small business ideas. For instance, the cash-flow projection for twelve months in advance stays a necessity for any business that needs to grow. Then, starting big could be a challenge or a stupid thing to do as long as you don't have a reputation and the credentials necessary to make a name on the market. Stay low and take cautious steps without risking to get in debt and not have the money to pay back the loans. If you don't know what small business ideas to stick to, perhaps it's good to investigate the opportunities and see what matches best with your overall situation. There are people who choose to quit their job and start a business competitive to the one they used to work for. The problem is that sometimes things may not work the way you expect them to and competition with the former employer have severe consequences.
Familiarity with the domain you take your small business ideas from is essential for smart investments. Such knowledge results from thorough personal documentation, from years of working in the field or from studies. Presently, there are even courses that assist people with their marketing difficulties, but such consultancy should be prior to the implementation of the small business ideas as such.
When you are choosing among the small business ideas, and looking for the one that is best for you, be sure to look at the long-term possibilities for you new business. While you are in control of the growth and may want to keep the business small, it would be nice to have an option if you should change your mind and decide to spread your wings.
Business Plan -why they are essential
Business plans-why they are essential: (GoArticles.com) by Dave
Well-constructed businessplan is an absolute must these days.
Why? Because it shows that you have a clear vision of where you want to take your business, and how you are going to get there. With world economies shrinking as the global financial crisis worsens, small business insolvency rates are on the increase, and indeed many experts predict that the negative impact on small business owners, and their employees, will reach levels not seen in decades. In the current environment, many small business owners are seeing reductions in sales volumes, and are finding it tougher to compete as margins shrink. With all of this gloom and doom about, you need to ensure that your business is as efficient as it can be, that it is able to respond to upcoming challenges, and that you are in the right position to take advantage of any opportunities that arise.
Where to now? A carefully developed business plan should identify the priorities for your business for the next year (at a minimum), and should also look further a field (perhaps the next 2-3 years).
Many businesses find value in involving their employees in the planning process. This can be a valuable experience for all involved, as it can help build team morale, and can quite often uncover some great ideas from your employees. First of all, start off by thinking about your business' mission statement. This should reflect where you want to be and how you want to be seen. Perhaps it may be something like "to be the number one widget retailer in the city", or "to be the first choice for widget buyers". Then analyse where you currently stand in relation to your competitors. Then quantify what level of improvement you need to make to get to number 1. For example increase sales by 100%. Then, analyse the strengths and weaknesses of your business. Then determine what steps you need to take to achieve your goal. At this stage, you may find that you develop quite a list of items, and it's important to ensure that you don't go overboard, as having too many tasks may see you devote too much time to those things that are not as productive as others. Keep your list down to maybe 5-10 objectives, and stick to those that you think have the greatest potential to help you achieve your goal. You then need to break each of these objectives down into tasks. At this point you need to be very specific about what the task is, who is responsible for completing the task, how you are going to measure the results, what the timeframes are for completing the tasks, and how often you are going to review progress.
Now, look at the strengths and weaknesses that you identified earlier. What can you improve on, and what currently works well. If you have a business that has an employee performance system in place, then you can align their personal plans to your business plan, which hopefully results in everyone having a clear understanding of their roles, and ensures that you are all heading in the same direction. Document everything, and if appropriate give a copy of your plan to all employees. Keep a copy clearly visible on the wall or on a whiteboard, and regularly track your progress. You can involve your employees in this if you want. A well developed business plan can also be helpful if you need to apply to a bank for finance, and indeed many bank's insist on a business plan before they will consider providing finance. Business planning is not difficult, and if you follow my outline, hopefully you will find ways of improving your performance.
Dave, the author, has over 25 years management experience and has
also successfully run his own small business for several years.
About the Author
Dave tells you why a business plan is essential in the current
environment, and gives some tips on where to start.
For more helpful information, refer to Dave's website:
http://www.accountingtipsforbusiness.com
Well-constructed businessplan is an absolute must these days.
Why? Because it shows that you have a clear vision of where you want to take your business, and how you are going to get there. With world economies shrinking as the global financial crisis worsens, small business insolvency rates are on the increase, and indeed many experts predict that the negative impact on small business owners, and their employees, will reach levels not seen in decades. In the current environment, many small business owners are seeing reductions in sales volumes, and are finding it tougher to compete as margins shrink. With all of this gloom and doom about, you need to ensure that your business is as efficient as it can be, that it is able to respond to upcoming challenges, and that you are in the right position to take advantage of any opportunities that arise.
Where to now? A carefully developed business plan should identify the priorities for your business for the next year (at a minimum), and should also look further a field (perhaps the next 2-3 years).
Many businesses find value in involving their employees in the planning process. This can be a valuable experience for all involved, as it can help build team morale, and can quite often uncover some great ideas from your employees. First of all, start off by thinking about your business' mission statement. This should reflect where you want to be and how you want to be seen. Perhaps it may be something like "to be the number one widget retailer in the city", or "to be the first choice for widget buyers". Then analyse where you currently stand in relation to your competitors. Then quantify what level of improvement you need to make to get to number 1. For example increase sales by 100%. Then, analyse the strengths and weaknesses of your business. Then determine what steps you need to take to achieve your goal. At this stage, you may find that you develop quite a list of items, and it's important to ensure that you don't go overboard, as having too many tasks may see you devote too much time to those things that are not as productive as others. Keep your list down to maybe 5-10 objectives, and stick to those that you think have the greatest potential to help you achieve your goal. You then need to break each of these objectives down into tasks. At this point you need to be very specific about what the task is, who is responsible for completing the task, how you are going to measure the results, what the timeframes are for completing the tasks, and how often you are going to review progress.
Now, look at the strengths and weaknesses that you identified earlier. What can you improve on, and what currently works well. If you have a business that has an employee performance system in place, then you can align their personal plans to your business plan, which hopefully results in everyone having a clear understanding of their roles, and ensures that you are all heading in the same direction. Document everything, and if appropriate give a copy of your plan to all employees. Keep a copy clearly visible on the wall or on a whiteboard, and regularly track your progress. You can involve your employees in this if you want. A well developed business plan can also be helpful if you need to apply to a bank for finance, and indeed many bank's insist on a business plan before they will consider providing finance. Business planning is not difficult, and if you follow my outline, hopefully you will find ways of improving your performance.
Dave, the author, has over 25 years management experience and has
also successfully run his own small business for several years.
About the Author
Dave tells you why a business plan is essential in the current
environment, and gives some tips on where to start.
For more helpful information, refer to Dave's website:
http://www.accountingtipsforbusiness.com
สมัครสมาชิก:
บทความ (Atom)