Tag Archives: starting a business

Writing a Business Plan

Make a Plan to Succeed in Business

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The most important reason to write a business plan is probably to save your house, or grandma’s nest egg, or whatever investment you are putting at risk. A business plan will help you learn more about your business and serve as a tool for communicating with others, such as bankers or investors.

Here are seven things to know about business plans:

1. Most businesses are started without written plans. For the most part, plans only exist on a napkin or in the owner’s mind. Business planning is an unfamiliar trek for most people, and too often the task is avoided until they are urgently needed to get a loan.

2. By the time a business plan is printed, it is probably already out of date. Enterprises continually adapt to their surroundings and the plan is a living document that gets updated at strategic times.

3. Business planning is an organic, non-linear process. At any given time, you will be more knowledgeable in some areas than others. Effective business plans arise from building on strengths, developing strategies to mitigate weaknesses, and innovating as you learn more about your business.

4. The further a business plan projects into the future, the less reliable those projections will be. It’s entirely likely that year five predictions will be less accurate than year one.

5. A professionally prepared plan does not guarantee a business will succeed. A picture-perfect business plan is not worth the paper it’s written on unless the owner understands it thoroughly. The real value of a business plan is the knowledge you gain by doing it.

6. Plans that call for aggressive early stage spending will meet with resistance, especially where the shopping spree is predicated on using borrowed money. It’s usually healthier for a new business owner to solve problems through innovation, ingenuity and frugal investment of available resources.

7. While a business plan will help to increase your knowledge about your business, it will not do much toward helping you develop business trade skills, such as how to handle money, how to buy, sell and pay. Business trade skills are more likely to be learned from managing a paper route or operating a lemonade stand. Owning a business is the best way to learn the basic survival skills like knowing how to read the market, how to learn from it and how to change your mind.

Your business plan is more for you than it is for your banker. It will enable you to prove your business case, and to be reasonably sure that your venture can survive.

Once you’ve debunked your own assumptions and gathered enough evidence to demonstrate viability, you’ll have more confidence in your business idea. Armed with a better understanding of your business and realistic financial projections, you will be much better positioned to discuss your business with those who might help you.

Self-Employment, Workshops

Making the Transition to Self-Employment

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Transition to Self-Employment BootCampWith the ever changing demands of the new economy many people are opting to direct and control their careers through self-employment.

There are a number of benefits to being self-employed. You will:

▪  Have more freedom.

▪  Have more control over your work schedule.

▪  Have the choice to work from home.

▪  Be paid more money for the work.

▪  Be able to take on work from different sources.

Here are 8 things you can do to ease the transition to self-employment:

  1. Get Into a Business You Love. At the end of each day, you will have invested another 24 precious hours of your life doing whatever it is your business demands of you, and if you’re work life isn’t jammed full of activities you enjoy, you’ll be wondering why the heck you started the business in the first place.
  2. Surround Yourself with Champions. When you announce your intention to start a business, you’ll find well-meaning friends will discourage you citing notorious business failures and financial shipwrecks.  Old party partners will go to great lengths to get you back into the party game. Others, knowing you just scored a business loan or earned a profit, will try to guilt or coerce you into lending them money. To counteract any negativity, establish your own support team. It’s healthy to interact with positive, supportive people.
  3. Go the Extra Mile. When it comes to starting or growing your business, the “extra mile” can make the difference between success and failure. Business owners are often compelled to do important tasks after the regular workday and beyond the realm of normal energy outputs and expectations. Many great achievements take place over and above the regular workday. There is always enough time for miracles; it’s a matter of identifying the need, developing a plan, and taking action.
  4. Learn all you can about your business idea. Are there competing businesses already selling products and services you’re considering? Is your idea new to the area? Determine if there is demand for your goods by talking to potential customers and competitors. Answering these questions is part of doing market research and proving your business case.
  5. Be curious and coachable! It takes a certain confidence in oneself to brave the chaotic waters of starting a business, but overconfidence is the kiss of death. You can’t go wrong by spending more time listening than talking. Listen to competitors, listen to business owners, and listen to customers. Listen to anyone knowledgeable about the industry, and who will take the time to educate you about the business. Find a mentor.
  6. Set Your Prices High Enough. You’ll never build goodwill by under-charging your customers. Those new to business are prone to undervaluing their products and services. This is one of the common pitfalls made when starting a new business. Be sure to charge enough for your products and services to cover your overhead costs and turn a bit of profit. Decide whether you want to be the cheapest, the fastest, or the best. Pick any two; trying to be all three is a sure recipe for going broke.
  7. Get It in Writing. When you make the transition to self-employment, don’t be afraid to ask for signed agreements from customers, suppliers and other professionals. A signed agreement will go a long way toward eliminating misunderstandings afterward, and conserve your energy for the most important activity of all for the cheerfully self-employed; serving customers.
  8. Become the Expert. Do as much yourself as you realistically can, for as long as you can. Most small enterprises become successful because of the owner’s tireless efforts, particularly in the earlier stages. As long as it doesn’t go on to the point of burnout, wearing many hats is an ideal opportunity for the owner to get to know all aspects of the business and become the expert for the business.

Are you ready to join the world of the self-employed? The Fast-Track to Self-Employment BootCamp will be offered at Sprott-Shaw this June at the Prince George, Kelowna, Victoria and Vancouver campuses. 3 Days in class time are followed by 37 hours of self-directed research, 4 teleseminars and an hour of one-on-one coaching. For more information or to register visit http://www.riskbuster.com/fast-track-to-self-employment-bootcamp/ or email info@riskbuster.com today.

Starting a Business

Choose the Right Business Opportunity for You

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Financial concerns are front and centre for most people when deciding whether or not to start or buy a business. While money and profit are critical to the success of any business, there are a few other things to think about before taking the plunge.

Depending on your priorities, family, fun, health and life style can be far more important criteria to consider before setting that grand opening date. Here are a few questions to help you determine if you’re cozying up to the right business..

  1. What impact will the business have on your family? Whether you like it or not, your family will be involved and affected by what goes on in your business. At the outset, you will want to assess how supportive your family is of your decision to start a business. You might also discuss with your family the effect of you working long, possibly erratic hours. A business will usually find a way to extract its pound of flesh from a family.
  2. Will the business allow you to live the way you want? Many small businesses are far more about life style than profit. Business ownership will always entail risk and stress and a number of unwanted tasks, but these things are made more bearable if you enjoy the bulk of the work you’re doing each day.
  3. What impact will your health have on the business? Make sure you’re healthy enough to give the business the energy it needs. On the flip side, the ideal business will have a positive impact on your health as well.
  4. Has it been a life-long dream that will preoccupy you until you do it? Studies have shown that a high percentage of adults dream of owning a business. If the business has long haunted your thoughts and you can’t rest until you give it a try, this might be the critical factor in your decision.
  5. Will the business enable you to live in a desirable area? Is your goal is to relocate to a different community or neighbourhood? If owning the business makes it possible for you to achieve your goal, this might be the most important factor.
  6. Are there more attractive opportunities for your investment? Whatever business you tackle will require an investment. If the amount you’re investing could bring a higher return with less risk, perhaps you’d prefer to place your money there instead.
  7. Will the business pay you enough to survive? Start with your personal expenses to determine how much the business needs to pay you each month, and then calculate the amount of profit you want the business to earn after all expenses have been paid.

Once you get into business, it will insist on devouring as much of your time, energy and life as you allow. You’ll devote many waking hours, including quite a few that might have been spent sleeping, to its success.

If you’re going to shoulder the responsibility of owning a small business, you will want to consider all of the items above—money, family, fun, health and life style. If you’re going to invite an elephant to share your life, it may as well be one whose company you enjoy.

Starting a Business

Know the Ropes Before Starting Your Lifestyle Business

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Are you considering an exciting new lifestyle business idea and wondering if it will work?

Perhaps you’ve been to visit your banker, accountant or lawyer. Maybe you’ve wandered into a couple of the agencies that help new business owners get started. Hopefully, you have learned that you will need to do some market research and that you may need a business plan.

In researching your business idea, you need to prove there is demand for your products or services and that you can supply them at costs that leave enough money for you and your fledgling business to survive and hopefully, to thrive.

If you hope to shepherd your concept from mild curiosity to the action stage, here are some points to consider.

Evaluate whether you are ready to own a business.
Do you have the knowledge and skills? Do you have the financial muscle to nurture the business until it can support you? Are you motivated to get yourself to work each day without a big bad boss cracking the whip? Are you ready to be your own boss?

Learn all you can about your business idea.
Are there competing businesses already selling products and services you’re considering? Is your idea new to the area? How is your idea different from the existing businesses? Why would people buy from you instead of the competition?

Determine if there is demand for your goods.
Can you sell enough products and services to sustain your business? Learn about demand by talking to potential customers and competitors. Talk to anyone knowledgeable about the industry and who will take the time to educate you about the business.

Identify your supply costs.
If you’re buying and selling products, this means communicating with suppliers, learning their prices, their terms and shipping costs. If you’re providing services and doing the work yourself, you will need to set your rates high enough to sustain you. If you’re hiring others to provide the services, you will need to know how much they will charge you.

Decide what you need the business to provide for you.
Will it be money, lifestyle, or the pleasure of working at something you love to do? If money is a motivator, the starting point is to list your personal expenses and calculate how much you need to earn each month. Once you know that amount, you can then determine whether your hot new business idea will pay enable you to sleep nights without worrying about where the next meal will come from.

Market research is an opportunity to learn about your business. Be curious, ask lots of questions, and evaluate the answers. If you can prove there’s enough demand, and if you can provide your goods at prices that leave enough money to meet your needs, you might well be on your way to making a living doing something you truly enjoy.

Are you starting a lifestyle business? What lifestyle business would you like to start?

Do you have any helpful hints on lifestyle business?