How To Raise Money to Start Business and Where to Get Money for Business

The common questions for anyone who want to start business are: How to raise money to start business, and where to get money for my business?To raise money to start business is not as difficult as most people seem to think. Actually, there's more money available for new business ventures than there are good business ideas. We will help you for where you can get money for business.A very important rule of the game to learn: Any time you want to raise money, your first move should be to put together a proper prospectus.This prospectus should include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. If it's for an existing business, you'll need a profit and loss record for at least the preceding six months, and a plan showing how this additional money will produce greater profits. If it's a new business, you'll have to show your proposed business plan, your marketing research and projected costs, as well as anticipated income figures, with a summary for each year, over at least a three year period.It'll be advantageous to you to base your cost estimates high, and your income projections on minimal returns. This will enable you to "ride through" those extreme "ups and downs" inherent in any beginning business. You should also describe what makes your business unique---how it differs form your competition and the opportunities for expansion or secondary products.This prospectus will have to state precisely what you're offering the investor in return for the use of his money. Are you offering a certain percentage of the profits? A percentage of the business? A seat on your board of directories?An investor uses his money to make more money. The point here is, don't ever try to "con" a potential investor. In most cases, if you've got a good idea and you've done your homework properly, and "interested investor" will understand your position and offer more help than you dared to ask.When you have your prospectus prepared, know how much money you want, exactly how it will be used, and how you intend to repay it, you're ready to start looking for investors.As simple as it seems, one of the easiest ways of raising money is by advertising in a newspaper or a national publication featuring such ads. Your ad should state the amount of money you want--always ask for more money than you have room for negotiating. Your ad should also state the type of business involved ( to separate the curious from the truly interested), and the kind of return you're promising on the investment.Take a page from the party plan merchandisers. Explain your business plan, the profit potential, and how much you need. Give them each a copy of your prospectus and ask that they pledge a thousand dollars as a non-participating partner in your business. Check with the current tax regulations. You'll need the help of an attorney to do this, however, and of course a good tax accountant as well wouldn't hurt.It's always a good idea to have an attorney and an accountant help you make up your business prospectus. The next time you talk with your doctor or dentist, give him a prospectus and explain your plan. Look them up in your telephone book under "Investment Services." These companies exist for the sole purpose of lending money to businesses which they feel have a good chance of making money. In many instances, they trade their help for a small interest in your company.Many states have Business Development Commissions whose goal is to assist in the establishment and growth of new businesses. Not only do they offer favorable taxes and business expertise, most also offer money or facilities to help a new business get started. Your Chamber of Commerce is the place to check for further information of this idea.Industrial banks are usually much more amenable to making business loans than regular banks, so be sure to check out these institutions in your area. insurance companies are prime sources of long term business capital, but each company varies its policies regarding the type of business it will consider. It's also quite possible to get the directories of another company to invest in your business. Also, be sure to check at your public library for available foundation grants. These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.Finally, there's the Money broker or Finder. These are the people who take your prospectus and circulate it with various known lenders or investors. The important thing is to check them out fully; find out about the successful loans or investment plans they're arranged, and what kind of investor contacts they have---all of this before you put up any front money or pay any retainer fees.There are many ways to raise money---from staging garage sales to selling stocks. Don't make the mistake of thinking that the only place you can find the money you need is through the bank or finance company.Start thinking about the idea of inviting investors to share in your business as silent partners. Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and developing of the primary business. Give some thought to the possibilities of getting the people supplying your production equipment to co-sign the loan you need for start-up capital.Remember, there are thousands upon thousands of ways to obtain business start-up capital. This is truly the age of creative financing.Disregard the stories you hear of "tight money," and start making phone calls, talking to people, and making appointments to discuss your plans with the people who have money invest. There's more money now than there's ever been for a new business investment. the person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined.
Source by ezinearticles.com

Read more »

7 Major Reasons Businesses Fail and How to Overcome Them

1.The owner is not mentally prepared or motivated to run a business.Action: Before becoming a business owner in the first place, determine if you truly want and will operate under the Business Owner "Game Rules." If you choose to, do so IMMEDIATELY, and COMPLETELY! To survive, let alone succeed, you must commit to operate under the Business Owner Rules 100%. Otherwise, you should seriously consider playing one of the other "Games of Work" that best suits your desires.
2.The business owner is unable to operate a business. Action: You will greatly enhance your chances for success by finding methods of self-improvement in all aspects of running a business, and continue the process throughout your entire business-ownership career. Obviously, as you become better at running your business, the success of  your business will also get better. Many resources are available to you, including respected advisors, mentors, partners, "Godfathers, " and coaches.
3.The business owner thinks he knows what it takes to run a successful business and is convinced he is fully prepared to jump in.Action: Learn the rules of the game of business, other than through the "Trial and Error" method. The very best way is to find and use trusted mentors, advisors, and/or coaches to guide you through the process of learning how to improve your capability to run your business to avoid the many errors others make. Frankly, the rules are simple, easy to learn, and are based upon common sense, and high integrity
4.The business owner tries to execute all three of the three basic functions needed for a business to succeed, alone and without help. Action: Get help from someone, a partner, an employee or an outsourcing resource to perform at least one of the two functions for the business. This way that function can be executed at a very high level and will allow you to focus on executing no more than the other two at a similar high level. Normally entrepreneurs initiate businesses where they bring the technical skills and motivation to the table.The three skills necessary to win in the business game are: Technical Skills of the business; Managerial Skills to manage yourself, time, things, concepts, and people; and Visionary Skills to set future goals and organize the business so that current activities will contribute to them (See The E Myth Revisited by Michael Gerber).You probably bring Technical Skills to the table, but to succeed, you will also want to master the Managerial and Visionary Skills. You are not born with these skills; you learn them. You are born with natural talents towards certain skills, but you have to work to perfect them. Michael Jordan, and Tiger Woods were obviously born with unbelievable talents, but they became successful only because they worked very hard at developing the skills they
needed to win. Likewise, you will want to work to develop your Management and Visionary Skills (from the Business Owners Perspective) and continue the process  throughout your business ownership career.
5.The owner starts a business for the wrong reason. Action: "The only reason to have your own business is to Make a Profit." Though this may sound cold and greedy, you will realize rewards and compensation only from your business profits. If your business doesn't make a profit, you get nothing. You might even discover you have been working for nothing, or worse, working to increase your debt.This does not mean you have to avoid meaningful, and emotional reasons for living. Not at all. The profits and personal time gained from the business will provide you the resources to pursue your life goals. Even religious institutions require profits and time to pursue their passion of serving others.
6.Business owners do not completely consider the perspective and motivations of potential customers. Action: Learn as much as possible about your potential customers. Design and provide products or services, delivery methods, pricing, and ways to communicate with them around their perspective. This might require that you get help stepping out of your own perspective and into someone else's.
7.Business owners insist on going it alone without asking or accepting outside help. Action: Find and use Advisors, Mentors, Coaches, and/or Trusted Partners who have the knowledge and desire to educate and guide you, with your best interests at heart. All professional athletes have one, if not several, coaches, advisors, mentors, who help them become much more successful than they ever could be on their own. Coaches evaluate your ability to run your business. They will bring you outside the stress, money, and time pressures you feel from working IN the business, to help you make the changes to result in improving your profits and reducing your pressures. You will become much more successful with advisors. Asking for help is not a sign of weakness, but a sign of your desire to improve. Learning from the trials and errors of others is an enjoyable and profitable experience. Once you find the right advisors, you learn to prevent and correct mistakes you might otherwise make.
Source by ezinearticles.com

Read more »

7 Most Important Business Lessons

1. Know Yourself
Your basic roles in a small business are in marketing, planning, finance, and administration. To get the best results, it is rare for one person to play all these roles equally well. You must know which parts you can handle yourself and which parts you're going to need help with. That's why it's so important to be objective and take a close look at your overall strengths and weaknesses. Ask yourself the following questions:
•Do you plan before you take action?
•Are you willing to hustle for the sale?
•How financially savvy are you?
•Do you have a well thought out plan? And, do you work the plan?
•Do you know how to make sales happen? Can you ask for the sale?
2. Ask For Help When You Need It
When you're young and unseasoned, you tend to think you can do anything. This is a recipe for disaster for the small businessperson. If you insist on doing everything yourself, you will work 16 hours a day and not do some things well.Remember, getting results is what counts! With outside advice and assistance, your quest for a successful business can be accomplished faster and with far fewer bruises than doing it yourself. When I started my first online business, I even created by own website. In retrospect, this was a big mistake. It took me far longer to create my site than having a more experienced person do it. Start equating every second of your time with money. Your time isn't free.
3. Action Planning
I like to call it "action planning" rather than "planning". Action is the only element which turns a plan into reality. Many people are great at planning but they suffer when it comes to follow-through. Successful small business owners are action oriented. But that action starts with a plan.According to leading authorities, the main reason 80% of all new businesses fail within the first five years is not money, but the lack of planning. If you want to succeed, the trick is to know how to make right the decisions by implementing an effective business plan. Remember, if you fail to plan, you might as well plan to fail.A business plan should include how you will finance the business, who will perform certain critical business functions, the license and permits required, accounting method, as well as what you know about your prospects and customers.
4. "Mind Meld" Your Customer
Just knowing your customer isn't enough for long-term success in your small business. In Star Trek, the Vulcan race had the ability to perform a mind meld. At the time of the mind meld, they could see, think, and feel everything their partner was seeing, thinking, and feeling. This is how close you must come to understanding your customer. The closer you get, the more successful you will become. Reflect on the following questions:
•Do you know the reasons why customers shop at your store? (service, convenience, price) If not, ask!
•Do you seek suggestions from your customers on ways you can boost business?
•Do you use a store or online questionnaire to aid you in determining your customers' needs?
•Do you stay in contact with customers on a regular basis?
•Do you ever try to re-establish a relationship with lost or inactive customers?
A key to success lies in knowing your customer. The other half of the equation is to know your industry.
5. Know Your Industry
You can gain the greatest competitive edge if you intimately understand your industry. You must know the ins and outs of your particular products and industry. You should know every competitor as well as their strengths and weaknesses. It's in your competitor's weaknesses where you will most frequently find your own success.Your competitors size, services, location, marketing approach, type of customers, suppliers, and pricing strategies should be as well known to you as your own. Your local business climate, median household income, level of education, ethnic population, and the other demographics of your potential customers should be second nature to you. To prosper, you must know the game and the playing field intimately.
6. Maintain Good Financial Records
If you don't know where your money is going, it will soon be gone. The "game of business" is played with products and customers, but the score is kept in dollars and cents. Good financial records are like the instrument panel on your car, they keep you posted of your speed, fuel level and engine condition. Without them you're flying blind trying to pace the other cars. If you know how much you're spending, buying and selling, you can take control and help your business make more money.
•Do you have basic accounting knowledge? Or, do you have someone you trust to keep the books?
•Do you maintain every receipt you obtain through the running of your business?
•Have you computerized your business to streamline everyday tasks and business procedures?
•Do you use sales forecasts, expense sheets, and financial statements on regular basis to assess the progress or your business?
•Do you evaluate your operating expenses and make necessary changes on a regular basis?
7. Manage Your Cash
It doesn't matter how unique your store is, your business can't survive without good cash flow. Cash is the lifeblood of your business. The money coming into or out of your store is the vital component that keeps your business financially healthy. For profitability, more cash must come into the business every day than goes out of the business. You can have the greatest sales in the world, but if it's all in receivables, how will you pay your bills?A monthly Cash Flow Statement is a critical business tool. It shows the amount of money at the start of a period and how much cash was received during the period. It identifies the various sources of incoming cash and the reasons for outgoing cash. Budget wisely. Know the sources of your monthly income and expenses. Then, you won't have to worry about running out of money. And that is a good thing.Like any game, the game of business has rules and tools. Those who excel at the game, play it better than their competitors. Keep focused upon these seven critical areas and you will succeed. Remember, Albert Einstein once defined "insanity" as doing the same thing over and over again and expecting a different result.
Source by ezinearticles.com

Read more »

Home Business Start Up

You'll need to contact various publications related to your advertisor's product or service which provide advertising space. Inform the advertising departments of these publications that you intend to run ongoing advertisements for numerous companies.Since your advertisements will run on an ongoing basis, you've increased the value of the publication to its reader, in that you've assisted the publication in exposing its readers to additional resources.Since you are providing a substantial value to the Publications readers' and thus the publication itself, request a preferred advertisor's discount.Ensure that you are made aware of each publications demographics. You'll want to know the size of the circulation, average age of its readers, average income...as much information as possible. Record this information on index cards or database for easy access.On the other end of your business, you'll focus on contacting various stores and other pet related organizations in this case, pet stores and organizations. You'll offer these businesses an opportunity to utilize your advertising services.Explain to your potential advertiser that you'll publish their company's advertisement in specified number of highly targeted publications.Of course, you'll inform the business owner that that his or her business can benefit by using your services since your company is able to provide highly targeted advertising at a fraction of normal advertising costs.You can also offer a "preferred customer discount" which is only offered to customers who run ongoing advertisements.Research quality, targeted publications and then contact each to request a 1.5 - 5 inch ad. Place 3 - 7 advertisements from 3-7 different advertisor's into this one advertisement spaces. Of course, you'll need to call your organization something like: "Love Your Pet-Coop."
What have you accomplished?
You've provided for your advertisers, great exposure in quality publications. You've added credibility to your advertisers since there are multiple companies listed.You've increased the value of the publication in that you've provided additional resources for its readers.For the cost of one advertisement, you've listed several.You've earned a percentage of the advertisement costs.Benefits to owning a Home Based Advertising Business :
•Flexible schedule
•Your office is wherever you are
•Low overhead
•Steady income
•Continual growth
•Tax benefits
•A different approach to owning an Advertising Sales Business
Group promotional coupons from several types of related organizations... Using the above example...a pet store and a pet supply store.Purchase quality mailing lists of individuals and groups who purchase items related to pets.Place all of the promotional coupons along with your business card into an envelope and then mail the envelope to the individuals and groups on the purchased list.Alternatively, you can create a coupon card that lists multiple businesses. Consider using a paper folding service provided by Kinko's, Office Depot... to fold your sheet into 3 segments. Using a folding service will provide a crisp, professional look.Folding the page into 3 segments allows you to mail the pieces without need for envelopes.As an alternative to using 8 x 11.5 sheets, some Advertising Sales Representatives use standard post card sized ad sheets. One benefit to this approach is decreased mailing costs. Another benefit, if you're just starting out, is that you can easily fill the space of a post card.
Tips for running your Home Based Advertising Sales Business:
•Always include your own advertisements when advertising for your customer.
•Ensure that you advertise in quality publications
•Ensure that you purchase quality mailing lists
•Ensure that you ask your customers for referrals to related businesses.
•If you use the 3 segmented, full page method, consider folding your sheet with the ads listed on The outside. This allows the customer to see immediately, that your offer is of interest to them.
•Pay attention to deadlines Make frequent inquiries with your advertisers regarding whether or not their customers are using their coupons and why.
•Operating an advertising Sales business can be quite lucrative and is limited only by your creativity and fortitude.
Source by ezinearticles.com

Read more »

How To Create A Business Note That Is More Attractive To A Note Investor

The objective of a business note buyer or investor when buying future business note payments is to minimize the risk of a default on the note. Therefore, they look for specific things when evaluating the purchase of future payments from your business note. Those include the following:
•buyer's down payment
•number of payments made on the note (also known as "seasoning")
•buyer's credit history
•personal guarantee of the buyer
•total amount of payments being sold
•cash flow of the business and past profitability
•length of term of the note
•payment amount
•offsets
•lien position of the note
•amortization of the note
•experience of the buyer with the type of business purchased
•interest rate on the business note
•documentation of the business sale
The business note must be personally guaranteed by the buyer. It cannot be guaranteed by the company buying your business. Specifically, it cannot be guaranteed by a person signing on behalf of the company. If there is a default, the business note buyer will be coming after the personal assets of the individual(s) making the personal guarantee. A personal financial statement for the buyer should be obtained to verify that they have the necessary assets should it be necessary to fulfill the personal guarantee.The maximum amount a business note buyer will buy in a single transaction is between $300,000 and $450,000. You can create a business note for more than this maximum amount, but the business note buyer won't buy more than their maximum at one time. This means when the period is completed for which payments have been sold any remaining payments will once again come to you. At this point you will have the option of selling future payments again, if you want to.The cash flow of the business must be adequate to service the note and provide additional cash for the new owner to live on. The cash flow should be at least 1.25 times the amount required to service the note. The business should have been in the same location for at least 3 years (4 years for restaurants and bars), and it should have been profitable over that time. A key item related to the term of the note is the term of the lease of the space in which the business operates. In order to avoid a major disruption to the business
due to a problem renewing the lease, the term of the lease should be at least as long as the term of the business note.The business note must be in first lien position. The business note cannot be a second position lien behind a bank loan. If there is a default, the second position lien holder may have a difficult time recovering their investment. One of the biggest factors contributing to the discount that the seller will have to take when selling the future payments is the difference between interest rate on the original business note, and the yield required on their investment by the business note buyer when they buy the future note payments. Therefore, the interest rate on
the business note should be set as high as possible while still allowing a monthly payment that can be covered by the cash flow of the business for the term of the note.
UCC-1
•chattel security agreement or chattel mortgage
•promissory note
•purchase agreement
The UCC-1 documents that the seller is holding a "perfected" lien on the business. This document is filed with county government and is part of the public record. If there is a default, this document indicates that the business seller will be first (after tax liens) to receive proceeds from the sale of any business assets.
Source by ezinearticles.com

Read more »

You Can't Be Fired But Neither Can You Quit

John H. Brown, author of How to Run Your Business so you can Leave it in Style illustrates the conflict between business owners expectations for the continuation of their businesses, and the reality of what actually happens.
Expectations Vs Reality
Expectations Reality
Transferred to family 50% 15%
Sold to employees 30% 5%
Sold to outsiders 10% 10%
Sold to competitors 10% 10%
100% 40%
From an address to the International Business Brokers Association
The above data substantiates that reality is in direct opposition to the expectations of the MassMutual survey participants. Although the overwhelming majority of business owners wish for their businesses to continue, most businesses will simply close down. The largest single reason that most businesses are not sold or transferred seems to be that the owners never made the decision to do so. If you do not make the decision to sell or select a successor, outside forces will eventually combine to determine the ultimate fate of your business. In defense of those who have not been able to come to a decision regarding business succession, we offer the following:
1.Business owners know they are missing important information in connection with selling.
2.To take action without a full understanding of the rules of the road would be foolhardy.
Most Businesses can be Sold
Our experience, gained in assisting more than 2,000 business owners with succession decisions and business transfers, indicates that essentially every business can be sold if:
1.Ownership fully understands the unique environment in which businesses are sold, and therefore avoids the costly mistakes of employing traditional sales methods to sell their business.
2.Ownership recognizes the natural cycle of business ownership (a time to grow and a time to go) and makes a timely decision and preparations to sell.
3.Those involved in the decision understand that the motivations to sell are personal and not purely financial.
4.The company is properly prepared for sale before marketing efforts begin.
5.The right buyer and the optimum price are identified before going to market.
Information Needed 
The following are the questions most commonly asked when selling is considered:

• What is my business really worth?
• How can I find the right buyer and still maintain confidentiality?
• Are there steps I can take to increase my company's value?
• How long does it take to sell a business?
• Are there buyers out there with the money I want?
• Will I have to finance part of the sale? If so, how much?
• If I do, how can I be assured that I receive my money?
• What will I do after I sell?
• How much money would I have after the sale?
• What is an ESOP? Is it something I should consider?
• What would I do if I could not get my price?
• Perhaps a big company would buy my business. Would I have to stay on for long? Would they keep my employees?
• What expenses are involved in selling?
• What kind of investigation will a buyer want to perform?

Common Reasons for Sale
The reasons most often given for wanting to move on revolve around life-style issues such as:

• Retirement
• Health considerations
• Relief from the burden of ownership
• Boredom with the business
• No time for the rest of my life
• Burned out, tired, need a rest
• Business demanding what I can't or don't want to provide
• It's not enjoyable anymore.

SOurce by ezinearticles.com

Read more »

The Basics of Buying a Small Business

For both buyer and seller finding the answer to this question is the most difficult and at the same time the most important step in the buy-sell process. But this final decision reflects many other decisions made while the transaction is being considered. In other words, the buy-sell process is a flow of decisions. It would be impossible to point out every decision that must be made, but the basic ones are as follows:
•Motivation: a decision to attempt the sale or purchase of a business.
•Contact: a decision on how to find a buyer (or seller) for a business with specified characteristics.
•Information: a decision on what information must be gathered or given to buy or sell a business.
•Sources: a decision on how, where, and at what cost the needed information can be obtained.
•Analysis: a decision on the meaning, importance, and reliability of the information gathered.
•Value: a decision on what the business is worth. Price: a decision on how much money to take or give for the business.
•Financing: a decision on how to pay or receive the purchase price.
•Contract: a decision on the form and content of the contractual relation.
•Implementation: a decision on how and when to effect transfer of ownership.
Does the prospective owner have the ability to manage successfully?Effectiveness with people (customers and employees), eagerness to tackle difficult problems and make decisions, and intelligence about general business operations are key ingredients in management ability. Most people can learn to manage if they recognize the need. This requires room to make mistakes, however, and the self-discipline to undertake self-improvement programs.the program are:
•Value
•Price
•Sources of Financial Information
•Financial Statements
•Risk and Return on Investment
•Compliance With the Bulk Sale Act
•Financing and Implementing the Transaction
•Financing the Buy-Sell Transaction
•Putting a Value on Goodwill
Source by ezinearticles.com

Read more »

Discovering Ethical Work At Home Businesses

Where are the honest and ethical work at home businesses? In my experience, which involves wasting thousands of dollars and years of my time just like everyone else out there, I have found several work at home businesses that are honest, ethical, affordable, and realistic. I'm not going to promote any of them here because I'm not here to influence which business you decide on. But I will tell you where to find the lot of them.The allworkathomeguide website has some of the best and most solid information available on finding the ethical home based businesses we are talking about. There are nd articles that actually explain the entire business to you before you even click on their link. It is a solid place to start the search for the business that can change your life.An ethical home based business will give you contact information, whether it's just an e-mail address or you receive a full address with a phone number. Some ethical home based businesses are starting to encourage people to ask questions before making their decision. That's a benefit for everyone.An ethical home based business may have lead capture page where you are required to insert you name and contact information before entering their website. This is a good thing. By doing this you will receive a phone call from an actual human being who can then answer your questions and give you a feel for whether this is a business that is right for you.I ran a little test before writing this article. We'll call it the ethical home business test. I entered my name and phone number in forty different lead capture pages and sat back to see how many people would return my call. Within two weeks I had received thirty eight phone calls regarding my interest in an ethical home based business. Out of those thirty only one of them was unprofessional and even in fact rude to me on the phone. The other thirty seven spent the time to answer my questions and all of them gave me both the company's contact information as well as their own.This is important because we are typically hesitant to enter our personal information on lead capture pages. However, while I did receive follow up e-mails, I did not receive any harassing phone calls or spam related to the experiment. Some of the ethical home based businesses were out of my price range and others did not interest me. But each and every one of them was up front about advertising costs.Advertising your home based business is vital. You will not be able to get into internet marketing without factoring at least some advertising costs. Depending on the home based business you choose, some encourage fairly high advertising costs, but some are willing to show you ways to advertise with very little out of pocket. It might take a little longer to build your home based business, but the low cost and free methods do work. Advertising your home based business should be something you can comfortably fit into your budget. You are not looking to break the bank, you are looking to find a profitable home based business.When factoring in your advertising costs for your home based business, also factor in the assistance you will receive from whomever is introducing you to the business. Are they really in it for the long haul or are they simply making promises to you based on what you want to hear? Talk to someone several times before deciding whether or not to join their home based business.Just because a home based business doesn't offer contact information or charges up front doesn't necessarily mean they are unethical, but the unethical ones definitely don't offer any information and always charge up front. The ethical, solid home based businesses out there that are still using old methods of recruiting are slowly making the shift to better methods because they are seeing that it works well for other. For you that means better quality decisions when looking for the perfect home based business for you.That, after all, is the whole key to this picture. Most home based businesses will work, but finding the one that will work for you is an entirely different game altogether. A little patience and research will certainly improve your odds of finding the best home based business for you and your family.

Source by ezinearticles.com
 

Read more »

Starting a Home Business

1) Business Summary.
Write out a description of your business. What kind of company do you want to build? A well written description or summary of your business often propels you through each step of how to write a business plan. Writing the summary first means you will always have the basic premise of your home business idea at the top of everything you put in your business plan.
2) Name Your Business.
You may think that your direct sales business already has a company name but that is not the name of YOUR business. Creating a distinct name for your business will help make your plan. Does your business name reflect what you offer? Is it easy to remember? Does it have strong branding potential? Should you reconsider your current business name if it not working with your product? Make sure the name of your business fits not only your product or services but your mission statement.
3) Itemize Your Products or Services.
Write out descriptions of your products; how do they look, smell, taste, feel or how your services will help others reach their own goals in life. How will your offerings improve the lives of others? Sort through why others aren't already doing it and if they are offering exactly what you are going to offer then what prevents the competition from doing it better or more cheaply than you are.
4) Mission Statement.
Your mission statement is a concise clear summary of the goals of your business. In your mission statement, you will define exactly what your business does, the products or services offered and what makes your business unique above the competition. Writing the bottom line of your business goals into your mission statement will guide the rest of your business plan.
5) Business Assessment.
A major portion of your home business plan is a detailed assessment of four areas: your strengths, your weaknesses or limitations, business and marketing opportunities and threats or barriers to your potential success. At this stage of your business plan, you will be looking at your industry. Your work experience and talents that will add to your business would fall under your list of strengths. Your lack of knowledge or funds could be listed as your weaknesses. Take into account how broad your industry is when you are looking at your strengths and weaknesses. If you have little money for start up then you will need to be creative in your marketing and running your business.
6) Goal Setting.
Write your vision for your business. Be specific. You can revise this as your goals and mission changes. How do you envision your business a year from now then five years from now? Write out your goals and objectives. Break down each product or service into their own set of goals. Plan for expansion as your business evolves.
7) Target Market.
Research your desired target market. Identify who you expect to buy your products or services. Write a profile of your average customer. You need to know your target before you are able to aim. Study your potential customer's behavior. Where do they shop? What do they read? Do they move in specific social circles? Who wants or needs your business? Who will benefit from your product? What type of people will find your business a necessity?
8) Sales and Marketing Strategies.
How will anyone know your business exists? What steps will you take to make your business known? How will your customers find you? What can you do to ensure that you attract the customers you seek? How will you track your efforts? How much money do you have to put these strategies in place?List your strategies - press release, printed catalogs, business cards, open house, craft fairs, business, conventions, virtual expos, sales letters, etc.
9) Business Start Up.
Determine what equipment and services you will need to run your business to include setting up your home office, equipment, supplies, product inventory, customer record keeping, and book keeping. Create a checklist of professionals you need to secure for legal and financial advice, advertising expertise, office assistance or tax expertise.
Source by ezinearticles.com

Read more »

Ground Rules for Successfully Selling Your Business

As a business broker, I have been involved in a number of transactions (and potential transactions) where the business owner wanted to sell, or in some instances, was forced to exit the business earlier than expected. In fact, retirement is NOT the number one reason why businesses sell.Here is a list of the most common reasons why owners sell (or otherwise discontinue) their businesses: 

• Burn-out (the number one reason for selling)
• Health issues
• Personal diversification
• Retirement/semi-retirement
• Death
• Divorce/partner disputes
• Business growing too fast
• Second generation not up to the task
• Loss of market share
• Take good care

If your business isn't ready to sell when the time comes, what are your alternatives?
1.Liquidation of business assets--may be a solution, but one that usually returns very little money to the business owner. If the business had been an operating business, the underlying assets (except for real estate) may be outdated and of little use to anyone. At auction, the assets will bring only what the attending bidders are willing to pay. In some instances, underlying assets are sold to liquidators (or scrap) for only pennies on the dollar. Liquidation of a going business often occurs where the owners have become ill or disabled, or need to retire and have not planned adequately for their exit from the business.
2.Closing the business--is even less attractive than liquidation. That is because many who find themselves in this situation have a tendency to "put off" liquidating the underlying assets in hope that maybe someone will come along to buy this business. This almost never happens.
BUILD WEALTH NOW BY PLANNING FOR THE SALE OF YOUR BUSINESS Here are just a few of the benefits of planning now:A planned sale allows for your goals and objectives on your timetableYou may begin to identify potential buyers

You may be able to create an attractive acquisition candidateYou can begin to understand why a buyer may want to buyYou might learn why buyers would not want to buy--and be able to fix the problemsYou may begin to realize the worth of your business now, and learn how to increase the value as part of your retirement planning
BUSINESS VALUE HOUSEKEEPING CHECKLIST

• Record All SalesEliminate co-mingling of business and non business assets
• Do your own due diligence
• Compliance with taxing and regulatory authorities
• What's the bottom line?

CONCLUSION

You can increase your wealth by knowing a few simple ground rules for successfully selling your business. Just like other owners of closely-held businesses, you know how to operate your business on a day to day, month to month and year to year basis. But your experience in running the business has not prepared you to know how to sell your business.While the information I provided in this article is not all inclusive, it should help you get started in preparing your business for a successful sale--no mater when the business might be sold.

Source by ezinearticles.com

Read more »

7 Things Every Home Business Entreprenuer Needs To Know

1.Success doesn't happen overnight.
For some reason people think that they should become rich in a few months with their new home business and some people believe success should happen within weeks or days! We introduced a man in his early 50's to our business and he was excited. When we first met he complained that he had been working hard for more than 30 years and he was broke. He started his home business just a few weeks earlier and he never gave it a chance. Most people who start a home business quit in their first 90 days and go back to their dreadful lives of desperation. Most people aren't really living. They are only existing. They're going from one day to the next without any hope of a better life. Benjamin Franklin said "most people die at 18, we just don't bury them until they turn 65.
2.Success doesn't happen without work.
If you had a traditional business you'd have to open your business every day. If you have a job you've got to show up if you want to get paid. When you start a home business you can't simply sign up and expect the money to start being deposited in your bank account. There's work to be done. Success doesn't happen without work and it isn't limited to working your business. Are you committed to improving your skills and working on you? Read at least 10 pages from a great book every day. Books like "Think and Grow Rich" will change the way you think and when you change the way you think you will change your life.
3.You must be disciplined to achieve success.
So, you're working your new home business and a friend calls offering to take you to lunch. Can you afford to go? Your favorite show is on TV, but you know you need to be working your home business, what will you do? Perhaps the biggest adjustment most of us need to make is to be disciplined in our home business. Since most people who start a home business have never owned a business, we must learn to be disciplined, if we're going to operate a successful home business. There were times when somebody told us no and that was devastating. We'd usually mope around and fail to do anything else the rest of the day. Had we maintained that attitude, we'd have a job right now instead of an successful home business!
4.Who you're involved with is more important than the business you're in.
Let's face it, most people don't really have a clue how to operate a business, any kind of business not just a home business. When we're young we are told to go to school to get good grades so we can get a good... JOB! That's exactly the path most of us start on, get a job, work hard, work long hours and try to get a promotion so we can work more hours and hopefully make more money.
5.Technology has changed everything.
the internet changed everything. You don't have to meet people face to face anymore, although I must admit it's still my favorite way of doing business. Today, you can upload a video in seconds, so people can see you. You can send an email with links to websites, videos and your contact information. Auto responders make you look like a Fortune 500 company, and nobody knows how big your business really is because anybody anywhere can have a great looking website.
6.It's a home business, but that doesn't mean it can't be a big business.
Once you understand the basic fundamentals of your new home business and once you've achieved some success, you'll understand that the sky is the limit. We make much more money than we ever thought possible and we have friends that are making more than $1,000,000 a year! Hard to believe? Of course it is! Just because it's hard to believe doesn't mean that it isn't happening.
7.As a Man Thinketh
As a man thinketh in his heart, so is he. Joyce Meyer is fond of saying that where the mind goes, the man follows. Of course, it makes no difference whether you are a man or a woman, you are what you think you are. As we struggled in our home business it was easy to become discouraged. We had always failed. Those constant thoughts of failure surrounded us. Then, we realized that others had succeeded. Why did they succeed where so many others had failed? Could it really be that the only reason they achieved success was that they thought differently? We were so broke and so desperate for a breakthrough in our lives that we realized that we could not afford the luxury of having negative thoughts.
Source by ezinearticles.com

Read more »

Top 10 Reasons Home Based Businesses Fail

1. Something For Nothing Syndrome
Let me be perfectly honest with you, there is no such thing as something for nothing, but you already knew that didnt you. Then why are there so many home based business and success programs being sold by way of TV info-commercials, ads in magazines, newspapers, and the especially the Internet? I personally think that we would all like to think that there is a shortcut to success but deep inside we all know that is success is earned. Success would not be success if you could simply purchase a home based business system for $49.95 that is completely automated and all you do is collect the money, yet I have personally seen thousands of internet sites and info commercials claiming they have a fully automated system, plug in and you will be wealthy by just paying your $49.95, presto you're an instant success, no real efforts required, they even guarantee it.
2. Not Understanding Capital & ROI
Capital is the money required to start and operate your business. Remember Rule 1, there is never something for nothing. Understanding how much capital is going to be required to start and operate your business until profits are realized is an important factor in the success of any business. Once your capital needs are identified you can begin to calculate your ROI Return on Investmentor should we say Return on Capital. So for example, if your business will require $20,000.00 to start and operate until profits come in and that business will generate $100,000.00 net profit the first year then you would have achieved a complete capital payback and a 400% return on capital first year.
3. Listening To The Wrong People
When evaluating a home based business system look at the training and support, make sure the individuals doing the training are at a high personal level of success in that business. Most companies have customer support teams that are just hourly employees reading information from manuals. They are not qualified to teach you how to reach the level of success you are looking for, or worse yet you can only e-mail your questions or complaints to them. You should look for a home based business system that allows for the top income earners within that system to be the trainers. This way you are learning from the people who are getting results. Ask yourself, will I have the telephone numbers of the people with whom I will be doing business, will I have access to the top income earners on a daily bases if necessary.
4. Marketing, Marketing and Marketing
You can have the best products in the entire world or provide the best service in your industry, but unless people know about your products or service, you will be out of business. There are many ways to market your business and they can be very simple and inexpensive or they can be complicated and very expensive. Repeat business is essential to a successful business and marketing system.
5. Poor Environment Management
Working from home offers many benefits such as no commute and no day care costs, etc. The flip side of this coin is that distractions can exist that you do not find in an office setting, such as crying children, barking dogs, the television, you get the idea. The trick is to balance your environment.
6. Having A Closed Mind
7. Poor Product or Service Selection
8. Fear of Rejection
Fear of rejection is usually caused by low self-esteem and the lack of self-confidence. A business can not be profitable without sales.
9. No Leverage
Leverage is the only way you will create real wealth in your life. A business owner leverages his time by hiring employees, these employees leverage his time. This is why service businesses where you do the work have no leverage without employees or someone else doing the labor. A manufacturer that uses distributors is an example of leverage. A franchise that sells its system and collects a portion of profits is leverage.
10. Inadequate Planning
Creating a plan to achieve your goals is paramount. This should include a DMO, Daily Method of Operations. Focus efforts can produce the best results just like the magnifying glass focuses the suns rays and creates fire, your efforts can be focused for best results. Having a precised plan with measurements is imperative, for example to say your goal is to improve sales, is a goal without a measure. Instead say your goal is to increase sales 30% in the next 90 days, this is an example of a goal with measure and a completion date. You can clearly measure if you have reached your goal as well as track its progress along the say. Set your DMO and follow it while consulting your goals on a daily basis and make sure you are doing all necessary to meet your objectives. Managing your time is important but focused effort and balance will propel you to success, dont forget to relax and have fun. By focusing your time, you will surely get better results in all areas of your life.
Source by ezinearticles.com

Read more »