Required planning for a new business start-up
The importance of planning ahead for a new business start-up.
Although owning your own business may be the best thing you ever did, it can have serious drawbacks, when you first start out. People often have unrealistic ideas and expectations about running their own business, thinking that it’s going to provide them a six figure income right from start, especially those who buy into a franchise or established retail business or those who join online affiliate programs.
When they see that they aren’t earning as much as they thought they would, they begin to worry that they have made a mistake or that they have been scammed and start worrying about their income and how they are going to pay the bills. Making a business plan in advance solves a great deal of the stresses that are involved when you start building your business.
The reason many new business owners have trouble making money is because they fail to plan for the days that are going to yield less income. It can take a new business on average anywhere from 3-5 years to start turning a decent profit. This is true even of franchises since the early days will involve more income going to the corporation than the owner. You have to make sure that you have a proper business plan for that.
How can you plan for the early days of low income? For one thing you can make sure that you save more money before you invest in a business so that you have enough cash for your living expenses until you start earning a profit from your business. If you are leaving a position with another company to start your own business and are entitled to any kind of severance package put those aside in a special account in case you need them to assist with personal expenses until your business is profitable enough to operate on its own.
One option that many people do not even know exists is that of a loan for operating capital. The business owner can borrow money to see him through until the business becomes self-supporting. Often those who know of this option fail to utilize it properly by setting their goals too high or being over-confident about the time frame for their success, and end up having to return to the bank for more operating capital. This should be a part of your business plan, and in order to make sure that you have set realistic goals for yourself you should sit down with a financial adviser or accountant to ensure that your business plans includes realistic goals for income generation.
Making sure you have all of the working capital you need before you open your business can save you hours of worry and also save you from having to prepare another business plan when you require additional funds.
Starting a new business requires more than just a good idea!
Once you’ve done this, you will realize the significance of unsecured start-up funding. Rarely does an individual have the savings or personal resources to put a business plan into action completely on their own. Often, even when one thinks this is the case, deeper development and planning dissuades this initial thought.
Small business funding can be a rather involved subject, filling shelves upon shelves of books at libraries and bookstores. The truth is though, you don’t need a how-to book to get good funding. You simply need a good lender. Being able to determine once is what really counts.
An unsecured small business start-up loan gives you the start-up funding you need, but getting a start-up business loan can sometimes be more difficult than it seems. Most lenders today require collateral for small or large start up business loans, but collateral may be something you have never thought of before. When you obtained a mortgage, your home served as the collateral. When you got a car, the vehicle was the collateral. But when you’re seeking a new business loan, you probably don’t have the commercial collateral you need yet. Your only option then is to offer your personal assets as security for the loan – which is a risk you understandably may be hesitant about.
Collateral is often the biggest obstacle to the prospective business owner. Not only does a new business not yet have any commercial collateral to provide; but it is asking a lot for an entrepreneur to put his hard earned personal assets at risk in order to start a new business venture. Yet, without collateral, getting an unsecured business loan can sometimes seem impossible.
The good news is, though rare, some companies have specialized programs for exactly this scenario. An unsecured business start-up loan can get a new business owner the funding he needs to cover initial business costs, without having to provide collateral and place his or her assets risk. With this type of financing plan, the lender utilizes something the borrower has worked hard for and should be able to take advantage of – his good credit. With this approach, the lender can still an unsecured business start-up loan at great rates and with a variety of programs.
The small business loan application process can also be made difficult by the imposition of restrictions on how the loan proceeds can be used. This takes away the borrower’s freedom to use the funds as he or she may have seen fit. You can escape these hassles by using an online application for an unsecured small business loan.
Today, web lenders offer a new window of opportunity for small businesses and individuals that need a fast start up loan approval process. Time is money! Lenders now offer cash in as little as 72 hours, with no tax forms, no business plans, and no collateral! Such lenders offer the straightest line to unsecured business loan funding, at great rates. In the modern world, financial products as efficient and dynamic as the business world must be available.
Applying for an unsecured small business loan is easy, all the business owner need to do is just go on line and submit their loan details. Then the lenders will refer back to you with the loan decision in a few days.
GETTING GUIDANCE FOR YOUR NEW BUSINESS IDEA:
Many people dream of leaving their nine-to-five jobs and going into business for themselves, but very few actually understand how to start or sustain a profitable E-Biz. In a traditional job, you can always approach a supervisor or co-worker with questions about how to execute a project better, perform a task more efficiently, or handle a particular situation. However, once you venture into business on your own, you’re literally on your own – and that’s a very frightening place for most people. That’s why, when starting your own business, it’s imperative that you get guidance from the get-go.
One does not have to go it alone. If you don’t have a support system in place, or any clear sense of direction, it’s easy to grow frustrated or scared, and retreat to your comfort zone without achieving the independence you dream of. A reputable business coach can teach you the best start-up practices and help you implement winning business strategies. Another option is to join an online forum, where you can present your questions to other E-Biz owners who bring to the table the seasoned advice of those who’ve already achieved e-commerce success.
Most new E-Biz owners face exactly the same issues and challenges – and they’re a whole lot easier to handle when you have someone helping you, who’s already faced them successfully.
UNDERSTAND THE PITFALLS OF A NEW BUSINESS START-UP:
Having mentored thousands of new entrepreneurs, Jenkins sees the two most common problems they confront on a regular basis as determining correct priorities and overcoming what he calls “paralysis by analysis.”
1. To run your business effectively, you have to organize your priorities. The difference between a successful E-Biz and a failed E-Biz is often determined by where you spend the bulk of your efforts and energy. As a new entrepreneur, you have limited time and funds. Spending too much of either on peripheral matters means you’re neglecting your core concerns.
It’s easy to waste tremendous amounts of time trying to learn the ins and outs that are necessary to manage your business, but that don’t really generate a profit in the long run. In an online business you should have a three-fold focus:
• finding the right products
• driving targeted traffic
• converting that traffic into sales
That’s it. All other issues are secondary – you have to deal with them in your day-to-day operations, but don’t lose sight of the big picture.
2. Another common problem with e-commerce newcomers is that they tend to over-analyse every scenario and develop “paralysis by analysis.” When you don’t have all the answers, or aren’t certain of your next move, it’s easy to just sit back and procrastinate. But making excuses or putting things off will cripple your ability to do even the most fundamental things to grow your business. It’s important to deal with the business aspect of things in a timely manner. You need to treat your Internet business like a real business – time is money, and you can’t waste it being indecisive.
Launching your own E-Biz may seem like an intimidating prospect; but you largely improve your chances of a positive outcome when you find experienced, knowledgeable mentors to help you get started right. States Jenkins, “Starting a venture is always a risk. But you can greatly facilitate your own success by seeking out qualified support to help you find your focus and keep your business moving forward in the right direction.”
TOP TIPS FOR STARTING YOUR NEW BUSINESS:
Prices are going up, up, up and just about everybody is needing a little extra cash these days. This is probably the best time ever for you to own your own small business.
Now before you start thinking you’ll have to get a bank loan, remember that you can own a small home-based business for just a few dollars–or even FREE.
You can easily run your home business from your kitchen table and, frankly, you can finance your business from a few bucks you save out of the grocery money.
How much time will it take to run your home business? That depends on several things, but mostly it depends on how hard you want to work your business. If you’ve got lots of time through the day you can work your business, then you can go after it full force. If you’ve already got a job or two, you can work your business in the evening, in the morning before work, or on the weekends.
The amount of money you earn will largely depend on how hard you work your business. If you’re full-time, your business can start out earning hundreds each month and move up to several thousand dollars a month in earnings.
Work your business part-time and you can earn anywhere from an extra $100 to $1,000 per month. And that might be just what you need to supplement your income from your regular job.
What kind of business should you own? Try to find one that matches your talents and needs. If you like to talk to people and sell them on your ideas, you would do very well in a business that requires a little selling. You’ll enjoy it and make a lot of money at it.
If the idea of having to sell something makes you want to run the other way, don’t worry. There are businesses that require almost no selling. About all you have to do is use the products you sell and talk to people about the products when they ask.
Of course, new customers rarely fall into your lap. You have to make an effort to find new prospects. Here are several simple and cheap ways to get new customers.
1. Talk to everyone you know about your business. More than a few will take an interest and want to buy from you.
2. Send out letters or postcards. Send 10 per week. You can get names and addresses from clubs, associations, the chamber of commerce, and “list brokers” who are in the business of selling addresses. Check your Yellow Pages under “Direct Mail.”
3. Put up a web site. Include all your experiences, products, and ideas on it, then register the site with Google. It’s free to do and pretty soon all the search engines will include your site’s listing.
4. Put ads in email newsletters. It’s a very cheap way to reach thousands of people who are probably very interested in a home business. Search Google for “e-zine directory” to find sites that list thousands of email newsletters.
5. Sell your products or service as a fundraiser for a local non-profit. They can sell the product you supply. It’s a win for them and a BIG win for you, as you’ll make money from those sales and often grab new customers in the process.
6. Sell at flea markets in your area. Get a low-cost booth and tell your story to anyone who will listen. That’s what flea markets are for, and you won’t feel one bit out of place.
7. If you already have a web site, promote your business on your site and convert your audience into customers.
These are a few time-tested ideas to help you get started. If you’re getting the itch to start your own business, go for it. It’ll be the smartest thing you’ll ever do.
Our members get the following two e-guides to help them with any new business start-ups:
1. TITLE “PLANNING OF A NEW BUSINESS START-UP”:
This is the planning guidelines to enable one to draw up a business plan.
Table of contents (73 pages):
2. Basic bookkeeping concepts
3. Costing and pricing strategies
4. Mark-up and profit margins
5. Market research
6. Cash flow projections
7. Preparations for compilation of the business plan
8. The business plan
2. TITLE “THE BUSINESS PLAN TEMPLATE – A UNIVERSAL TEMPLATE FOR ALL TYPES OF BUSINESSES”:
Just replace the coloured text with your own text and go to the bank to secure your financial loan.
This is your tool for convincing other people of the soundness of your venture.
The business plan must therefore be presented in a professional way and the contents must convey the following:
Table of contents:
About the Company
Your products and services
The business potential
Mission, goals and objectives
Strengths, Weaknesses, Opportunities, Threats
Sales and marketing objectives
Your product or service
Sales and distribution
Premises, plant and equipment
Capital requirements and funding proposal
Current financial position
Projected profit and loss
Risk identification and mitigation
STRUCTURE AND MANAGEMENT