The Basics Of A Business Plan

Understand Why It Is So Important for Your Start-up Simply put, a business plan is a strategy and blueprint to establish and run your business with. It is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. It is important for a number of reasons: To attract key employees, attain new business, and to deal with suppliers To convey your vision to investors for obtaining funds To help you understand and manage your company better What Constitutes a Quality Business Plan? A business plan includes your goals, what you wish to achieve, and how you will achieve it. The strategies you will use to accomplish your goals and objectives. Potential problems that you may face and how you will solve them. The organisational structure and lastly, the amount of finance you require for your start-up and the means to acquire it. Three Basic Parts To put together a good business plan, consider breaking it into three primary parts: Business concept section: In this part you will discuss the industry and then move onto the organisational structure, your product and how you plan to make it successful. It may also include your vision and mission statement, like what you wish to achieve by your business and its scope in the broader sense. Marketplace section: In this part of the plan, write about your potential customers and provide an analysis: who they are, where they are, why they will buy your product and so...

Your First steps to Successful Startup

Understand the first step to making your business a successful startup. Are you an entrepreneur with a great business plan? Do you want your business to be a successful startup? Read on to understand the difference between a business plan and a business model. Learn how you can make the transition from just being good to being the best by having a solid, well thought-out business model. Many successful startup business’s have a perfect business plan in place, but they fail because of the absence of a business model. A business model defines how you plan to create and deliver value to your customers. The questions hidden behind a business model, which you as an entrepreneur should be able to answer are: Who are your target customers? How will you reach and acquire your customers? What value you will deliver to them? How do you differentiate your products from others? How will you deliver value to the customers? What is your cost structure and profit margin? There are many types of business models. The three basic business models are: Business to business: selling to other businesses rather than the consumer Business to customer: selling a product or service directly to the consumer Business to government: selling to the government Any model that a business develops is a variant of these three basic models. What you need to decide is which model will be most suitable to your business and the type of product that you’re trying to sell. Include a Timeline One part of your business model is the ‘HOW’, how you expect to make money. The other crucial part is...

Business Planning: Pricing and Cost Control

An integral part of your business planning will be to define your working budget and consider your product or service pricing and cost control systems. Cost control is a common issue for small business. Keeping a balance is important. To keep things simple, small business owners should apply a basic principle with their pricing and control system of breaking the costs in three categories: Goods Sold, Fixed Costs and Variable Costs. Costs of Goods Sold Generally speaking, these are the costs that are directly related to producing what it is you sell. For example lets assume Company X incurs the following costs to produce a hydraulic hose: Item Costs Hose $50 Fittings $20 Swage Ends $10 The total of $80 to produce the product is the direct expense to make one item. Now if the raw material price never changes it could be reasonable to calculate the total costs of goods sold for any period by multiplying $80 by the total items produced. Service based business’s will have labour as their direct costs. Ways to control your Costs of Goods Sold Evaluate your supply contracts on a regular basis to negotiate discounts or special rates on large supply. Keeping regular contact with your suppliers will enhance your business relationship. Make attempts to minimise wastage by improving your efficiency of practises and procedures. These systems will deliver results for your pricing and cost control efforts. Eliminate stock with a low turnover rate. Don’t overstock, especially food and beverage business’s where expiry dates and refrigeration costs can have implications. Fixed Costs Fixed costs relate to the total expenses your business incurs...

Turning Your Passion Into Profits

So for those like me, we have this burning desire to turn our passion for work into a money making machine, or for a more subtle way, our passion into profits. You can read about it on social media everyday, marketing gurus will tell us that it can be done. You know what, I agree with them. For at least the part that yes it’s possible to earn a living from your passion. Will it be easy to turn your passion into profits? No….No it wont. It’s a dream that’s shared by many of aspiring entrepreneurs, to earn a living on their own terms and doing so using the very thing they love doing – turning their passion into profits. Just because it’s your passion though, doesn’t mean it’s for everyone. This will be no get rich quick scheme, there’s no ray of sunshine beaming down offering up a pot of money. Building a business through your passion will be like many….Hard work, commitment, motivation, planning, scheduling, budgeting and most importantly of all…. Providing Value. Choosing not to include “providing value” in your business plan will have dire consequences on your ability to generate interest in your business and build profit margin. They promise to provide us with the next best thing. We hear it all the time, right? Marketing gurus trying to get us signed up into their next product launch that’s going to generate us 1000’s per month. Living our lives from a laptop sitting on a secluded beach or being able to go on holiday anywhere, any time. Why do we buy into these campaigns? Well...

Is Fear Of Failure Preventing You From Starting A Digital Business

Struggling to cope with a fear of failure when starting your own digital business “I’d like to start my own digital business but I just………….” Have you ever said this to someone? Me personally, I found myself telling others this same statement over and over again, until I was told by my mentor, Get Over Yourself….. Having a fear of failure is holding you back!! So if you’re reading this post & have desires to start your own digital business, ask yourself this, What is holding me back!! The most common response to someone being asked “What are you afraid of?” they answer “fear of failure”. I think we can all relate. Statements such as “ I’d love to start my own digital business, but I’m not sure how to attract customers”, or “Id enjoy the freedom that running a digital business brings however I’m not sure if people will love my product:, or even “ The lifestyle that owning my digital business brings would be fantastic but i just don’t think I’m very good at selling”. You see the obstacles faced with starting your own digital business in not the actual product or your success at selling, it’s the fear. Fear can be look upon in two distinct ways. We have all encountered genuine fear at some point in our lives, the physical fear saving you from harm. The one where you’re standing on the edge of the bungy platform, ready to take that leap of faith. This is healthy fear. Not to be confused with mental fear, the type that’s holding your back from doing things that...

Art of Running a Small Business Enterprise

Running a small business can be rather unremitting. For people who might be working for somebody else as a worker, this might sound very simple, until they have to step into it for themselves. Small business’s come with both benefits and the contradictory facets. In an employment, you do not have to decide, you work as you are told to do. But for the small business this is entirely the opposite, you are the sole boss and thus all the conclusions taken and the outcomes are your responsibility for it is your business. Running a small business requires an ability as well as deep knowledge. We will talk about the art of running a small business with the prospective of development and success. Sustaining Control Through Sound and Powerful Character One thing that you should bear in mind when running a small business is that you are the only overseer and thus you are responsible for all the actions. This should be recurring to make sure that you are absolutely aware of what your small business engages. A powerful business is always backed with strong and powerful authority. So if you desire to run your business effectively, then you will need to be in total control. You should accept that you have the authority and thus must use it to make the most out of your business. Make your personality be a dynamic and powerful one. No matter what kind of authority you favor; authoritarian or popular, the eventual aim of running a small business should remain consistent i.e. to earn from profit. Focusing and Getting Structured This is...