Successful Business Plan

How to Choose the Best Small Business VoIP Solution

2008-07-11T21:02:00.000+08:00

How to Choose the Best Small Business VoIP Solution
by: Gobala Krishnan
Copyright 2005 Gobala Krishnan

Telecommunication cost is always an obstacle for small business owners, especially if you need to call domestic or international long distance. The long distance cost factor alone, depending on the type of business you're in, can make the difference in the success of any small business.

The telecommunication market today is one of the most competitive. Rates for both local, domestic long distance or DLL (long distance in the same country) and international long distance (ILD) are going down every day. The new player in small business phone systems, VoIP (Voice over Internet Protocol), adds a whole new dimension when it comes to choosing a phone system for your small business or home based business.

There's so much hype today about VoIP, or Voice over IP, or Voice over Broadband, whatever you want to call it. Everyone's saying that VoIP is the "future of communication" and that VoIP will replace regular analog phone calls. Is all this true? If it is, how do you, as an entrepreneur, decide how to choose and invest in what's best for you? Firstly, if you have no idea what VoIP is really about, here's where you can get educate yourself: http://www.mybusinessvoip.com/start

There are two things you need to consider:

1) Level of investment
2) Cost vs. Quality

To go full out into using VoIP, you'll need to invest in IP phones, and possibly even in IP PBX. Otherwise, you should go for IP phone adapters, which allow you to maintain whatever system you already have, but also gives you the option of converting some of those phone lines to VoIP. Most entrepreneurs are reluctant to go 100% into VoIP, and yet they still want the benefits that come from it. That's why IP phone adapters are so popular today. In fact, here's a list of the most popular providers for comparison: http://www.mybusinessvoip.com/compare

When is comes to quality vs. cost, the direction is pretty clear. Before choosing the proper VoIP phone system for your business, you need to figure out exactly what your business needs. If your business relies heavily on the phone for prospecting customers, providing customer support, or giving out important information through the phone, then you should definitely opt for better quality.

If you use the phone for short communication with your business partners or agents, or any other reason which is NOT your main business function, it would be better to save a little and go with the low cost option. The difference in quality is not very apparent in most cases.

If you are just starting your small business, VoIP phone cards also provide some sort of temporary solution until you can get enough financing to develop a better system. Phone cards usually let you dial international and national long distance at a lower cost because they use either VoIP as the back end provider or through a special promotion or arrangement between telecommunications companies.

Today, you can even get "virtual phone cards" which allow you to make phone calls by dialing a toll-free number in a long list of countries. This is especially useful if you spend more time travelling and doing business overseas than you are at home.

Regardless of which VoIP phone system you choose for your small business, make sure you are getting the most out of the money you spend for these long distance or international plans. Forget the bells and whistles. The purpose of having a good phone system is, and always should be, to communicate and express yourself.

About the author:
Gobala Krishnan is a small business entrepreneur and publisher of the "VoIP and Me" newsletter, designed for smart entrepreneurs who want to avoid all the technical jargon and get straight to the information that really matters. Learn how you can drastically cut communication costs by 70%, get more customers and expand to new markets using VoIP. Join the VoIP and Me newsletter now at http://www.VoipAndMe.com

Make Money On A Home Based Business

2008-06-19T10:13:00.001+08:00

Make Money On A Home Based Business
by: Joel Teo

Have you ever thought about starting a home based business in order to make money? A lot of people have, but where do you start with this?

The questions about home based businesses and how they make money for you are unending. You need to take care to take the first step when you are thinking about doing this. Most people miss this completely and thus they end up losing all their money on a business that goes nowhere.

Making Money By Writing A Home Based Business Plan

All right, the business plan for a home-based business may not sound like making money but it works. Far from what you may believe, it is not that hard to write a business plan. This isn’t one you need to show off to anyone. You may not need it to show to the bank for funding.

What this business plan will do is describe what your ideal home-based business will look like and how it will make money for you. You can’t reach a goal if you don’t have it set in the first place.

Write out your ideas of what your future will be like. In the end, what do you want to do? To you want to work in your pajamas in the morning with kids watching TV and you sitting at the computer typing away? Do you want products that you make by hand for each customer? Do you want to stock up on wholesale products and sell retail?

The Next Step To Making Money With a Home Based Business

Your next step is to take the next step. That might sound redundant but look at your business plan. Your plan needs steps to get to where you want to be. Write out these steps, and then take the first one on the list.

Once you have the steps written down, it’s easier to get to where you want to go. Just follow the steps. Need help? Ask! Join a business forum and ask someone you trust to look it over. Read everything you can get your hands on about home businesses and how they work.

Taking That Dramatic First Step Toward Making Money with a Home Based Business

Once you have the plan, the steps and know what to do, what makes you resist? Perhaps you fear failure or maybe you even fear actually succeeding? Forget for a moment all about failure or anything else. Look at your first step. Concentrate on it.

What is it exactly? Think about how you would do it. Picture in your mind the first step and how exactly to go about it. Spend an entire day thinking about that first step and where you will do it and how it will be done.

Then, when you are ready, do that first step and don’t stop until it’s done. Whatever it is, once it is done; look at your accomplishment. Reward yourself with a treat for getting it accomplished. It was the first step to your goal; making money with your own home based business. You’ve earned it!

About the author:
Joel Teo is the owner of the Money Making Directory which boasts of money making tips, recommendations and resources to help ordinary people make money online. Signup for his free newsletter today at http://www.MakeThousandsToday.info and receive his complimentary “7 Insider Secrets to making money online” Course.

Angel Investors: 7 Online Business Plan Scams and 1 Real Deal

2008-05-21T11:23:00.000+08:00

Angel Investors: 7 Online Business Plan Scams and 1 Real Deal
by: MaryAnn Shank

We've all seen the hype: "We'll put your plan in front of thousands of investors!" "We'll write you an award-winning online business plan!" "Only $3,000 for thousands of investors to learn about your company!"

I cringe every time I see one of these ads. Vultures are preying on honest business people who want to fund their businesses. Here are some ways to spot them:

1. "Only qualified investors see your business plan." Yeah, sure. And who "qualifies" them? Have a friend try to sign up as an investor (that part is usually free). How is she "qualified"? Is there a background check? Does she submit a financial statement? Odds are that she will be asked to do nothing more than sign a statement that she has a certain net worth. That's no "qualification" in my book. So who are these "investors"? Who knows. One could be your strongest competitor.

2. "You approve anyone who sees your business plan." Okay. So what are you going to do to qualify the potential investor? Are you going to run a background check? ask for ID? ask for tax returns? or just be so happy that anyone wants to see your business plan that you jump on the idea? (That's how these scams get away with charging thousands of dollars -- too many entrepreneurs are desperate for funding.)

3. "It's only $500 (or $300 or $100) to register." What does it matter if it's free? If it is diverting your time and energy and resources away from finding a viable investor, it's not worth it.

4. "Your idea is great, but we need to put it into our format. This will only cost $800." Don't walk -- run from these guys.

5. "Your idea is so great that we want to invest $2,000 in it." (That's after you spend $5,000 to put it into "their" system.) Do I really need to comment on this?

6. "Talk with a satisfied customer, or 2 or 3." Here's this entrepreneur who just got $2 million in funding, and he has nothing better to do than sell the web scam to you? Trust me, entrepreneurs who just get funded barely have time to eat, let alone talk.

7. "Look at all these written testimonials." This is harder to disprove because the testimonials look so real -- even the companies might be real. But unless the testimonials, and the companies, can be verified independently, I wouldn't trust them. And I'll lay odds that they cannot be verified independently.

There is one huge exception to this: ACE-Net (http://activecapital.org). This is more properly the Access to Capital Electronic Network run by venture capitalists, institutional investors and individual accredited investors. It was developed by the U.S. Small Business Administration's Office of Advocacy to encourage the creation of a national marketplace for investors to find and invest in equity offers by small companies.

ACE-Net isn't for all companies. Those seeking under $1 million will probably find the paperwork daunting. Those seeking over $5 million won't qualify. There are special qualifications, and of course lots of forms to fill out -- but nothing like the forms required for a formal initial public offering.

But for those who do qualify, it's an amazing tool in raising financing. Spend some time with the website and the forms, and see if your local SBA office can put you in touch with another company that went through the process.

As with any investor tool, don't rely exclusively on ACE-Net. Use it in conjunction with your personally developed targeted funding search. This, combined with an exceptional business plan, doesn't guarantee success but it places your company head and shoulders above all the rest.

About the author:
Ms. Shank is a seasoned business plan specialist, having served over 20 years with venture capital firms and emerging companies.

Use Your Hobby To Launch A Successful Website

2008-03-23T15:25:00.000+08:00

Use Your Hobby To Launch A Successful Website
by: Lois S.

When you study the really successful websites, you will quickly notice that many are based on seemingly strange subjects, many of which may not easily pass for a serious business.

This clearly underlines the fact that when it comes to online enterprises and ecommerce, the possibilities are endless and you can actually succeed at virtually anything. There seems to be just one condition. You need to be passionate about whatever it is your website is about.

Jeff Bezos had a passion for books and that is one of the reasons why he borrowed money from his parents and launched Amazon.com. The rest is history and today Amazon earns Bezos and his associates millions of dollars.

This is precisely the reason why the first place you should look for an idea for your online enterprise and website, is your hobby. What are you passionate about? Or what do you really care about?

Establishing a successful online venture is hard work and it helps a lot if the subject matter that you are dealing with is close to your heart. It helps transform your chores from work to having fun. The facts are that people usually become wildly successful doing things that they enjoy doing. The more fun you have at your business, the higher the chances of success.

Having selected the hobby you want to turn into a business, It will help tremendously if you carefully analyze the potential online demand for the various businesses related to your hobby. This is easily done by studying popular keywords statistics and is a very important thing to do before launching any online business or website.

For example your hobby could be golf. By studying keywords, you may find that Golf stretch exercises are a very popular subject. This would be a pointer that the right business to start would be something to do with golf exercises. You can, for example, sell golf exercise equipment at your website.

This is the way to cash in on your hobby or passion and birth a hugely successful website or online enterprise.

About the author:

Lois S. is a Technical Executive Writer for http://www.websitesource.com and http://www.lowpricedomains.com with experience in the website hosting industry.

How to start a business

2008-02-05T22:13:00.000+08:00

Rod Drury: How to start a business

By Rod Drury

Successful IT businessman Rod Drury says a business plan is vital. Photo / Mark Mitchell

People pitch business ideas at me all the time.

Unfortunately, almost all are fundamentally flawed, and almost all in obvious ways.
With a few exceptions, there are natural laws of technology businesses that you should take note of, so you don't find yourself repeating the mistakes made in previous start up businesses.

There are a number of business ideas that are just too hard and not worth putting your energy into.

Anything that involves text messaging or mobile data is unlikely to be a success.
That's because mobile carriers just don't leave enough on the table to make a buck from.

It's hard to think of anyone who has built a successful business based on text messaging.

Taking on Trade Me will not work.

They already have the customers and therefore they own the market, and only one player wins.

Anything aimed at taking bricks and mortar retailers online will not work. History tells us that.

Anything to do with document or content management will not work because that has been done 10,000 times before.

A start up involving retail point of sale will not work because the cost of sales and support will be too high.

An export-focused business where the founders are not willing to travel abroad will not work because you need to be in the market to understand it.

Any business where the founder is not happy to step aside and letanother person be the CEO will not work.

Any business that only wants to give up 10 per cent for $1 million in its first investment round will not get funded and will not work.

Any business depending on low-cost Google AdWords will not work, because the price of those AdWords becomes valuable, and then it blows your business model.
Any software business where the software development is outsourced to a consulting company will not work because you need to be nimble to close the feedback loop between your customers and your product strategy. Any business without a business plan will not work.

This might sound like a grim reality, but almost all of the hundred or so businesses I've looked at over the past couple of years are flawed because of one or more of the reasons above.

You only need to look at the very few angel or venture capital deals done in New Zealand during 2007 to see that very few ideas are actually valid business ideas.
As a first step before presenting your idea, you need to be able to write a high-level summary of what the business is and why it will be successful, in not more than three pages.

Then you need to test that idea. Try out your idea on friends first.
Make sure you check with someone who will tell you honestly, and not just what you want to hear.

Make sure you check with someone with industry expertise.

A "fast fail", where you quickly discover that your idea is flawed, will save you time and money. My ideas usually come from problems that I have experienced personally.

In areas where I have significant base knowledge, I can intuitively know where there is an opportunity.

Once you've tested your big idea, you need to back yourself and go. One of the first activities is building a team.

Next up, we'll look at setting up a business with multiple shareholders.
* Rod Drury is CEO and founder ofleading NZX-listed accounting software provider Xero (www.xero.com)

Health Insurance For Small Businesses

2008-01-20T19:02:00.000+08:00

Health insurance for small businesses
Simple steps to secure coverage for your workers.
By Ging V. Valles

Medical insurance came about to fill people’s need for quality health care that should not be compromised by their limited budget. It is now more accessible to everyone, regardless of income, through the HMO or health maintenance organization — a kind of managed plan where you receive care from the HMO’s doctors at its hospitals or clinics.

The HMO provides a list of doctors and "requires you to select a primary care physician" for the specialized care you need," says German Zapanta, general manager of Fortune Medicare, Inc. Entrepreneurs and rank-and-file employees benefit from almost the same coverage as those provided executives, he says.

The HMO is especially helpful to entrepreneurs. "If your people are covered, you increase their work productivity," says Rey Samson, school owner and incoming president of the Marikina Private Schools Association. "HMO doesn’t give any burden at all to the entrepreneur and his people since payments are collected through salary deductions." It also encourages people to get a health plan to help the government expand its resources for medical care.

HMOs like Fortune Medicare, Medicard, and PhilamCare provide holders with both in-patient and out-patient services without their having to pay each time. The standard coverage for in-patient care includes room accommodation, medicines, diagnostic procedures, and operating and doctor’s fees. Out-patient services include preventive health care, dental care, annual physical exams and clinic consultations.

Some HMOs limit their coverage. "Others add [extras] to be more competitive in the market," says Zapanta. For example, Fortune Medicare’s comprehensive package includes add-ons such as laboratory, x-ray and other diagnostic tests, dressings and sutures — even hospital income. Its out-patient care includes consultations at any HMO-owned clinic for eye, ear, nose and throat ailments; treatment of cuts, sprains and other minor injuries; X-rays, ECGs and other diagnostic tests; minor surgeries; and treatment on the recommendation of the HMO director or his designate.
"For emergency treatment in a non-accredited hospital, we reimburse as much as 80 percent of what it would have cost if treatment had been done in an accredited hospital," says Zapanta.

Choosing the right plan

Some entrepreneurs say you should not jump into bed with the first HMO offering the lowest price on your medical plan. "In choosing the right health plan, you should select the best package that suits your needs and the price affordable to you. Ask about the premiums, terms of payment, schedule of benefits, list of accredited hospitals and doctors," says entrepreneur and Medicard holder Marian Aquinos.

Here are some tips to getting the best coverage:

• Compare costs by asking doctors, hospitals, friends and relatives. The annual premium for HMO membership is P3,000 for those in the 13-to-30 age bracket and P13, 000 to P30, 000 for infants and clients in their late 50s. HMOs offer monthly, quarterly, semi-annual and annual payment terms. Once you’ve picked out a plan, compare its price with the other plans offering the same services. Expect higher prices for the young and elderly.

• Know the different services that each plan covers and decide what kind of insurance you need. Most plans will cover only services considered as "medically necessary." "Try to know if the HMOs can adjust or customize their packages according to your company’s needs," says Zapanta.

• Verify the HMO’s service record by studying its portfolio. Does it have any plans that will work for you?

• Look at the HMO’s financial status and management team. You can inquire about the standing of various HMOs by surfing their websites or studying their profiles, which are available from the Association of HMOs of the Philippines Inc. Not all HMOs are members of the group, but the top 15 are, says Zapanta. Being backed by a large company gives you more confidence.

• Consider the HMO’s reputation. Some HMOs are frequently suspended by hospitals for delayed or non-payment of hospital bills. "Worse, there are companies on the verge of closing but are still trying to solicit coverage," says Zapanta.

Developing Realistic Financial Assumptions in Your Business Plan

2008-01-04T22:32:00.000+08:00

Developing Realistic Financial Assumptions in Your Business Plan
by: Dave Lavinsky

Many investors skip straight to the financial section of the business plan. It is critical that the assumptions and projections in this section be realistic. Plans that show penetration, operating margin and revenues per employee figures that are poorly reasoned, internally inconsistent or simply unrealistic greatly damage the credibility of the entire business plan. In contrast, sober, well-reasoned financial assumptions and projections communicate operational maturity and credibility.

For instance, if the company is categorized as a networking infrastructure firm, and the business plan projects 80% operating margins, investors will raise a red flag. This is because investors can readily access the operating margins of publicly-traded networking infrastructure firms and find that none have operating margins this high.

As much as possible, the financial assumptions should be based on actual results from your or other firms. As the example above indicates, it is fairly easy to look at a public company’s operating margins and use these margins to approximate your own. Likewise, the business plan should base revenue growth on other firms. Many firms find this impossible, since they believe they have a break-through product in their market, and no other company compares. In such a case, base revenue growth on companies in other industries that have had break-through products. If you expect to grow even faster than they did (maybe because of new technologies that those firms weren’t able to employ), you can include more aggressive assumptions in your business plan as long as you explain them in the text.

The financials can either enhance or significantly harm your business plan’s chances of assisting you in the capital-raising process. By doing the research to develop realistic assumptions, based on actual results of your or other companies, the financials can bolster your firm’s chances of winning investors. As importantly, the more realistic financials will also provide a better roadmap for your company’s success.

About the author:
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital

Describing Intellectual Property in Your Business Plan

2007-12-23T21:49:00.000+08:00

Describing Intellectual Property in Your Business Plan
by: Dave Lavinsky

Most companies that are worthy of raising venture capital have proprietary Intellectual Property (IP). In fact, the quality of the IP and the management team are often the two most important aspects of a venture capitalist’s investment decision. The challenge that many ventures face, however, is that most investors will not sign non-disclosure agreements (NDAs), and NDAs are critical to maintaining the proprietary nature of the IP. This article details the appropriate strategy for addressing proprietary IP in your business plan in order to attract investor attention while retaining the confidentiality of your inventions.

Focus on the Benefits of and Applications of the IP: The business plan should not discuss the confidential aspects of the IP. Rather, the plan should discuss the benefits of the IP. Remember that even the most amazing of technologies will not excite investors unless it has tangible benefits to customers.

The business plan first needs to discuss the products and services into which the IP will be integrated. It then must detail the benefits that these products and services have to customers and differentiate them from competitive products. When applicable, it is helpful to include non-confidential drawings and backup materials of the products and services in the Appendix.

Focus on Customer Needs and the Relevant Market Size: The business plan must also discuss how the benefits of the IP fulfill a large customer need. To accomplish this, the plan needs to detail customer wants and needs and prove that the company’s offerings specifically meet these needs.

Secondly, the plan needs to discuss the marketplace in which the IP is offered and the size of this marketplace. Critical to this analysis is determining the relevant market size. The relevant market size equals a company’s sales if it were to capture 100% of its specific niche of the market. For example, a medical device’s market size would not be the trillion dollar healthcare market, but rather the sales of all competing medical devices.

Focus on Competition and Competitive Differentiation: Your business plan must also prove that your IP is better than competitive inventions. In identifying competitors, note that listing no or few competitors has a negative connotation. It implies that there may not be a large enough customer need to support the company’s products and/or services. On the other hand, should there be too many competitors, then the market may be too saturated to support the profitability of a new entrant. The answer -- any company that also serves the customer needs that you serve should be considered a competitor.

The business plan should detail both the positive and negative aspects of competitors’ IP and products/services and validate that your offerings are either superior in general, or are superior in serving a specific customer niche.

Prove that you can Execute on the Opportunity: As importantly as proving the quality of the IP and that a vast market exists for its applications, the business plan most prove that the company can successfully execute on the opportunity.

The plan should detail the company’s past accomplishments, including descriptions and dates when prior funding rounds were received, products and services were launched, revenue milestones were reached, key partnerships were executed, etc.

When a company is a complete start-up, and no milestones have been accomplished, the plan should focus on past accomplishments of the management team as an indicator of the company’s ability to execute successfully.

Results: Getting Investors to Sign the NDA: If you are able to convince the prospective investor that the IP is integrated into a product/service which yields real customer benefits in a large market, then the investor will take the quality of the invention for granted when reviewing the plan. Later, during the due diligence process, the investor will review the actual technology. At this point, a discussion regarding signing an NDA would be appropriate.

About the author:
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital

Startup Advice: Advice from Experts to Start your own Business

2007-12-11T18:16:00.000+08:00

Startup Advice: Advice from Experts to Start your own Business
by: Howard I Schwartz

Most entrepreneurs get paranoid over the idea of starting a business. With so many federal, state, and, local laws governing any business, it becomes crucial to make an informed decision about the venture. Here are a few steps worth considering before your business takes off in full swing

Most of us get paranoid over the idea of starting a business. With so many federal, state, and, local laws governing any business, it becomes crucial to make an informed decision about the venture. Gathering all the necessary information for a business setup could be a time-consuming, and an exhaustive process. Here are a few steps worth considering before your business takes off in full swing.

Initial capital investment:
The very foundation of your business rests on the initial capital amount you invest in it. Dearth of funds initially could spell serious trouble for you in future. So, whether it's an online or an offline business venture, make sure that you're not low on the initial capital to be invested.

These days, local banks have opened their doors for you to get loans for low budget business ventures. As long as you have a healthy credit score, getting a small loan is really simple. Just keep in mind that you don't go overboard on your initial business expenses. Watch your financial moves carefully. Once your business takes off well and gets you a huge profit, you could consider taking another loan to expand your business

Experience in managing the business
Lack of experience is a major put off for most people contemplating a business venture. This major deterrent as far as starting a business is concerned.

Expert business plan:
It is imperative to have concrete business guidelines. Most often, it's observed that, home-based and other small-scale businesses fair badly due to a lack of a business "blue-print". Such businesses suffer heavy monetary losses. Without a concrete business proposal, almost 70% of the businesses wind up within a year of being established. Therefore, a rough draft of the business plan taking into account all the minute details are necessary for any business venture. The business plan should explicitly define the target audience for your products. It should also present a detailed description of the average cost per product and your expected profit on each product. Besides, it should also portray the desired break-even point and your expected income from the business. Thus, for a smooth sailing business, it's extremely important that your business plan defines the ways of converting your business into a cash generating system.

Take valuable guidance from a business mentor:
http://www.startup-advice.com/Vending-startup.html
http://www.startup-advice.com/Day-Care-startup.html
http://www.startup-advice.com/Laundromat-startup.html
http://www.startup-advice.com/SBA-startup.htm
Don't hesitate to learn from the experiences of your most admired business mentor. They would show you the right way to expand your small-scale business into a vast business empire. Never miss out on an opportunity to gather those pearls of wisdom from an established businessman. Most business books also talk about the ways to a successful business enterprise is only by learning from the experiences of seasoned business stalwarts. So, pick up all the nuances for a successful business from your very own business mentor. Keeping in mind all the above-mentioned factors you can ensure a long life for your start up business enterprise. We wish you luck for your forthcoming business venture.

For startup advice and guidance please visit:http://www.startup-advice.com

About the author:
Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing business plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard’s business plans have secured several million dollars in funding. For more information: :http://www.startup-advice.com

In Business Planning, Competition is Good

2007-11-19T08:17:00.000+08:00

In Business Planning, Competition is Good
by: Dave Lavinsky

When developing the competition section of your business plan, companies must define competition correctly, select the appropriate competitors to analyze, and explain its competitive advantages.

To start, companies must align their definition of competition with investors. Investors define competition as any service or product that a customer can use to fulfill the same need(s) as the company fulfills. This includes firms that offer similar products, substitute products and other customer options (such as performing the service or building the product themselves). Under this broad definition, any business plan that claims there are no competitors greatly undermines the credibility of the management team.

In identifying competitors, companies often find themselves in a difficult position. On one hand, they want to show that they are unique (even under the investors’ broad definition) and list no or few competitors. However, this has a negative connotation. If no or few companies are in a market space, it implies that there may not be a large enough customer need to support the company’s products and/or services.

Business plans must detail direct and, when applicable, indirect competitors. Direct competitors are those that serve the same target market with similar products and services. Indirect competitors are those that serve the same target market with different products and services, or a different target market with similar products and services.

After identifying competitors, the business plan must describe them. In doing so, the plan must also objectively analyze each competitor’s strengths and weaknesses and the key drivers of competitive differentiation in the marketplace.

Perhaps most importantly, the competition section must describe the company’s competitive advantages over the other firms, and ideally how the company’s business model creates barriers to entry. “Barriers to entry” are reasons why customers will not leave once acquired.

In summary, too many business plans want to show how unique their venture is and, as such, list no or few competitors. However, this often has a negative connotation. If no or few companies are in a market space, it implies that there may not be a large enough customer need to support the venture's products and/or services. In fact, when positioned properly, including successful and/or public companies in a competitive space can be a positive sign since it implies that the market size is big. It also gives investors the assurance that if management executes well, the venture has substantial profit and liquidity potential.

About the author:
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital

The Key to a Successful Business

2007-10-23T18:46:00.000+08:00

The Key to a Successful Business
by: rietario daffari

Where would a business be without a business plan?
A business plan sets the course for the future of the
business. It gives the business owner or manager a
sense of direction, listing the objectives and goals of
the business from the outset.

Writing a business plan requires a lot of time; a
successful business plan cannot be a rush job. Once
an idea for a business has been developed,
researching the many facets of owning and operating a
business is the next most important step. Your local
county council should be able to assist you with
accessing the required information of a legal nature, as
should your local business enterprise center. The rest
of the research will be up to you! You will need to
research products for your business, at the same time
as researching other enterprises that may be in direct
competition to you. Furthermore, you need to research
the market to determine whether there is a need for
your business product or service.

With the research out of the way, sitting down to write
a business plan requires focus. Your business plan will
become the bible of your business for at least the next
3 to 5 years so it is important to make it clear, concise
and comprehensive. Most enterprises will complete a
SWOT analysis to determine their strengths,
weaknesses, opportunities and threats of the
business. Whilst the business is in infancy,
brainstorming would be the most accurate way of
performing the analysis, as the business would not yet
have customers and profitability would not yet have
been experienced. However, it is very important to
remember that a good business plan is flexible and
can be changed as your business experiences growth.

After completing a SWOT analysis, you will need to
determine your business name if it has not already
been decided (and register it), as well as your vision
and values, your business goals and long term mission
and how you will achieve all of this when the business
is up and running. Writing every thought down
regardless of how minute you feel it is will allow you to
collate everything pertinent to your business for easy
reference in the future. Who knows, the thought or idea
that you have today may well turn into a million dollar
idea in a years time! Maintaining good records and
following a strong business plan is the key to a
successful business!

About the author:
rietario daffari is the owner of
Business NE
which is a premier resource for business information.
for more information, go to http://www.businessne.com

Checklist for starting a business

2007-09-17T18:34:00.000+08:00

Checklist for starting a business
by: Matt Bacak

Use this comprehensive checklist to plan each step of your new business and transform your dream of entrepreneurship into reality. These steps may not necessarily be completed in the order listed; however, you can use them as a guideline for completing all of the necessary business startup tasks.
- Determine what kind of business you want to start.
- Learn about the industry for your business.
- Analyze the market for your business.
- Study your competition.
- Educate yourself on running a business.
- Join trade associations.
- Name your business.
- Perform a trademark search.
- Register a domain name.
- Design a website.
- Obtain a logo.
- Determine business structure (sole proprietor, partnership, or corporation).
- Evaluate your personal budget.
- Write a business plan.
- Write a marketing plan.
- Locate financing.
- Create a list of start-up supplies with budget.
- Set up a system for accounting and payroll.
- Apply for business license, fed tax ID, fictitious business name.
- Select a location and set up shop.
- Order signage.
- Obtain business tools (computer, printer, fax, postage, office supplies, and fixtures).
- Order business stationery (business cards, letterhead, brochures).
- Obtain inventory.
- Create an operations and employee manual.
- Hire employees.
- Set a launch date.
- Plan a grand opening event.
- Send announcements to everyone you know.
- Send press releases.
- Turn on the OPEN sign!
- Revisit your business plan and update often.
- Evaluate your marketing strategy often.
- Prepare a realistic business plan.
Think of this as your business road map. Define exactly where you want to get to with your business and then you can effectively map out your path towards achieving your goals!
By creating a detailed business plan you should cover all options and eventualities and have a clear future vision that will guide you through the rest of the start-up processes.
- Your business plan should encompass the financial considerations of starting your small or home based business:-
Do you have the capital required?
Do you need to raise additional funds?
Who are you going to approach for finance?
Who do you trust for advice?
And don't forget to open a business bank account…
- Consider the legal implications of becoming a business owner and proprietor.
Are you better off as a sole trader, a limited company or are you considering a partnership?
Make sure you consider all the angles and protect yourself and your assets personally from the outset.
Anything you bring to the business has to be itemized, valued…even if you're a sole trader.
And make sure you are professionally covered with the appropriate business indemnity insurances.
- Get your family and friends behind you from the get-go.
Make sure your family and friends are fully understanding and supportive of your ideas to venture into small business start-up.
Do they understand the level of commitment you will have to show for on-going and long term success?
Their belief in you and continued support of you will work wonders towards your on-going success, so don't forget to look out for them too.
- Protect your family, protect your business.
If, God forbid, something were to happen to your health, how would your business survive, how would your family cope?
Consider insurances - from health, critical illness and income protection insurance to life insurance - and consider your pension and long term financial security.
- Face those 'taxing' questions from the start.
Your small or home based business has to consider its taxation situation.
Do you need to register your business for sales tax purposes; have you informed your tax office of your business's inauguration?
Do you have a good tax professional lined up to guide and assist you?
The bottom line when it comes to taxation is that from the outset you need to make sure your papers and books are in order, this will save you time, money and heart ache in the long run.
- Prepare realistic and achievable goals and targets for your first year.
Do not expect to conquer the world with your first year's business returns.
Starting a business is a life changing undertaking and one you must be patient with. The rewards are there, but make sure you set yourself achievable targets - when you reach them they will give you the confidence and satisfaction to set new goals and to continue building your business' success.

About the author:
Matt Bacak became "##1 Best Selling Author" in just a few short hours.
Recent Entrepreneur Magazine’s e-Biz radio show host is
turning Authors, Speakers, and Experts into Overnight Success Stories.
Discover The Secrets http://promotingtips.com

7 Simple Steps To Profit Without Your Own Product

2007-09-15T16:43:00.000+08:00

7 Simple Steps To Profit Without Your Own Product
by: Clifford Mee

Most people do not succeed on the internet because they are selling products no one desperately wants.

If you want to be truly successful sell only things that people really really really want to buy!

Sounds simple? It is.

You only need to find out what people desperately want and then give it to them.

Unfortunately most people online (and offline) are ignoring this basic fundamental law to sales success.

So without further ado, just follow this 7 step system to profits even if haven't made a dime online yet....

1. Go to Ebay's 'Hot Item Forum' and find out what products and services are selling well.

2. Find a local wholesaler who sells the products or services that are selling well on Ebay who doesn't already sell on Ebay (most won't be)

3. Ask them, "If I was able to move X amount of units of your product, what percentage of your profits would you share with me?"

4. If they are interested and are willing to give you a decent share of their profits, get them to sign a Non-Disclosure Agreement and a Joint Venture Contract. They are both simple documents that you can find and download from the Internet.

5. Arrange shipping with the company. Ask them to dropship the products to the people who have purchased from you on Ebay. (If they won't do this get them to ship pallets of the product to you for you to do the shipping.)

6. Get them to provide you with a complete list of their in-stock inventory. You'll then be in a position to offer related products to any ebay customers who purchase from you as extra backend sales. Just make sure you agree a good profit percentage on each backend product with the company.

7. Advertise the products on Ebay and rake in the cash. If you are a complete Ebay newbie or you have very limited time, go to the 'Easy Trading Assistant' homepage to do the selling for you if necessary.

This is a proven, simple, elegant formula for anybody with a few spare hours a month to make good profits online. It requires zero technical knowledge and even a complete newbie can get started immediately.

It only requires some surfing of Ebay & the Internet followed by a few phonecalls to some wholesalers. The rest is child's play. In fact you can even use the Ebay Trading Assistant to do the selling for you. (They would take a small cut of course).

Remember on Ebay the shipping cost is a standard extra that the bidder pays, so you should have no problem negotiating with the wholesaler a fair price to do the shipping for you.

The most important factor to increasing your income is to launch what I call your own little 'oil wells' which bring you in cash like clockwork. The above system shows you how easy this is to do.

A fantastic resource for this simple system is available at http://www.hotitemfinder.com/cliffsfriends

About the author:
Clifford Mee is an author, internet marketer, hypnotist and success life coach. If you want to discover little known 'battle tested' strategies to persuade more customers to spend more money more frequently, then please visit his main website at http://www.marketingpersuasion.com

An Exporter? Who, Me?

2007-09-15T16:36:00.000+08:00

An Exporter? Who, Me?
by: NC

(NC)—If you're a small- to medium-sized business with a potential market for your product abroad, you may profit from making a move into exporting.

Your first reaction may be "Me, an exporter?" but it isn't as farfetched as you may think. Even if your company is relatively small, there may be a market for your product or service outside of Canada. In fact, 90 per cent of Canadian exporters have annual export sales of less than $1 million. What's important is having the right product or service, a commitment to succeed, and a sound strategy.

The best export strategies are built on the foundation of an up-to-date and comprehensive business plan. If yours isn't as current as it should be, you might consider refining it with the help of the resources offered by BusinessGateway.ca. Located at www.businessgateway.ca, this Web site provides lots of free tips, advice and tools, all related to starting, running and developing your business.

Take your business plan, for example. It should enable you to:

• identify the strengths and weaknesses of your company;

• establish your objectives and strategies, and analyse your company's performance with respect to them;

• determine your cash needs so you can approach banks and investors with confidence; and

• communicate your intentions to employees and investors.

If your plan falls short in any of these areas, check out the free, Interactive Business Planner, located in the Tools section of the site. It covers everything your plan will need, including:

• identifying the types of information required in your plan;

• locating information on basics such as marketing and costing; and

• preparing financial projections for your business.

Once you're satisfied with your business plan, you can return to the Tools section and use the Interactive Export Planner. It's similar to the Business Planner, but also covers issues such as:

• adapting your products or services to a foreign market;

• getting an overview of the targeted export market;

• creating a market entry strategy and an export implementation plan; and

• preparing financial plans related to the targeted export market.

And don't forget to use the Exporting link on the BusinessGateway.ca home page. It will point you to other essential sources of information that can help your company find business opportunities around the world. Once you take the leap, you may discover that export success is a lot closer than you ever imagined!

- News Canada

About the author:
News Canada

Why Start Your Own Work At Home Business Opportunity? Here's Why!

2007-09-10T20:53:00.000+08:00

Why Start Your Own Work At Home Business Opportunity? Here's Why!
by: Jeff Schuman

Would you like your own work at home business opporutnity?
People choose to work from home for several reasons including
the desire to stay home with their children, the need for extra
income, or simply being dissatisfied with their current job. A
home-based business will provide you with an exciting way to
earn money and be your own boss. Numerous opportunities are
available to internet marketers.

When getting started working at home with your own home business
you should develop a business plan and research your options
thoroughly. Making wise decisions and following your business
plan each step of the way can help you in creating a steady
stream of income. Operating a home-based business will require
hard work and effort. You will not become wealthy over night. It
will take determination to succeed as an internet marketer. The
amount of money you make will be directly related to the amount
of work you are willing to do.

When making your business plan, include both short and long term
goals. Determine how you will achieve those goals and put your
plan into action. Affiliate programs are excellent home-based
business programs and there are numerous other internet
marketing offers that will create steady income if you are
willing to make the effort. Some of these opportunities may
require an initial investment from you and others are advertised
as free. Research all internet marketing opportunities carefully
to make sure you understand the terms and conditions.

Working At Home When working at home online, you will have to
distinguish yourself from the competition if you want to
succeed. You should know your target audience and know your
competition even better. Do not let self-doubt stop you from
accomplishing your goals. Every successful internet marketer
gives their business the very best effort possible. Hard work
and determination will make your work at home business a success
and provide you with a steady stream of income.

Working at home is one of the most exciting and challenging
endeavors you will ever undertake. A sound business plan and the
will to succeed will set you apart from the competition. Choose
the products or services you provide carefully. Make certain
your services will be needed over the long term and make
customer service your top priority. A loyal customer base is the
key to the success or failure of your home-based business.

Working at home with your own business is an excellent way to
gain independence and financial freedom. A sound business plan
and a strong work ethic are all it takes to succeed. The perfect
work at home business is the Plugin Profit Site.

About the author:
Team-Schuman.com contains the best make money online and make money websites available today. If you want to make money check us out here:
http://www.team-schuman.com/workathome.html

Finance Your Small Business: So Much Money – So Little Time

2007-09-08T14:25:00.000+08:00

Finance Your Small Business: So Much Money – So Little Time
by: MaryAnn Shank

$37.4 million funded from venture capital today. $86.4 million funded yesterday. $51.4 million funded the day before.

These numbers are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day after day, rain or shine.

I’m not personally looking for business financing – but the entrepreneurs who read my website are. These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.

And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported fundings, and millions more from the $16 billion pool that SBA has this year.

All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.

So how come you’re still looking for financing?

Perhaps you aren’t presenting your company effectively.

Or perhaps you haven’t located the right lender.

It’s also possible that your concept just isn’t very good, but I doubt that. The fact that you are reading this article means you are a serious entrepreneur, with a serious business.

So where do you go to find all these investors? Here are some starting points:

For standard business financing, talk with the local office of the Small Business Administration.

It’s a new agency, with new programs and services, and lots of money to lend. Although much of the focus of the SBA is on minority business enterprises, the SBA still has a lot to offer non-minority companies.

Also talk with your local banks. (That was plural “banks”, not “bank”.) Talking with a number of local bankers will rapidly bring into focus the wide ranging priorities of the various banks, and where your company fit in.

As for venture capital and angel investors, there are several options.

One option is to go to online sources. There are a number of online services, such as VFinance, that sell the names and addresses of possible investors. It’s not expensive, perhaps $2-5 per name. The idea is that once you get the list of 200 or 2,000 names in hand that you will contact each with a written executive summary or business plan, and then wait to hear from one of them. This is a very passive approach, roughly akin to throwing paint on the wall and hoping that something will stick.
If you are like most entrepreneurs, patience is not your strong suit, so sitting and waiting for a response is not quite your cup of tea.

Another option is to go to one of the many directories of venture capital firms. These directories typically include addresses, phone numbers and emails, along with the geographical areas of interest and the types of investment that each is seeking. Most businesses can narrow down their list of prospective investors to several hundred venture capital firms this way. And again you are faced with the prospect of sending out written material for each one, and waiting for a response.

A third option is to take a more proactive approach. Identify your best prospects yourself from a number of reliable sources. Get introductions where possible. Learn everything you can about your target investors, and then go after it. Typically a phone call is the first contact, not an anonymous executive summary. Knowing that you are calling your best prospects, you know too that they are open to hearing from you. You have names, you have investment histories, you have everything in hand to make a real connection with the target investors. Then go do it.

Getting your company financed is one of the hardest things you will ever do as an entrepreneur. It can be hugely frustrating, disappointing and genuinely discouraging. But lots of entrepreneurs do it. And so can you.

No one knows when this incredible window of opportunity will close Spruce up that business plan and go for it -- now.

MaryAnn Shank
http://www.businessplanmaster.com http://businessplanmaster.blogspot.com
About the author:
Ms. Shank is a business plan specialist. She worked with venture capital firms and emerging companies for over 20 years.

Before the Business Plan

2007-08-28T22:47:00.000+08:00

Before the Business Plan
by: Ellen Zucker

Purveyors of conventional wisdom would have you believe that the very first thing you ought to do when setting up a new business is to create a business plan.

It doesn't matter whether you are selling odds and ends on eBay from your living room or something larger and more complex,

Business plans are excellent and necessary. Far too few of us self-employed and freelance people use them.

They force us to spell out our objectives. We have to assign numbers to our expectations and assign a time-line to our goals. They become our roadmap and keep us on track.

But I suggest that you can't make a business plan that is worth anything until you've done your homework.

And that means knowing what you want to do and how you want to do it. And determining that there is sufficient demand for your product to generate enough income to cover your costs and allow a profit.

In other words, before the business plan comes research.

If a body of knowledge already exists, it makes sense to tap into it and save yourself some work. The US Bureau of Labor Statistics and other such sources, for example, publish a great deal of demographic information. Some of it is very useful.

But it is also likely that as a creative sole-proprietor, meaningful statistics don't exist about your specialty.

Many micro-businesses target a very specialized niche. And many owned by creative types exist to sell a product or service that don't follow well-worn prototypes.

It is particularly difficult for such people to find meaningful published data.

If you fall into these categories, you'll have to generate your own information.

Don't limit your research to purely business data. You are building a life as well as a business.

Are the demands and conditions of your proposed business compatible with the life you want to create?

For example, illustrators often work on short deadlines - meaning that sometimes they have to work far into the night to complete a project on deadline. Plus, some clients are demanding and some do not pay on a timely basis. After all of that, can you still "love it" enough?

Or, maybe your business is such that sales fluctuate during the year. How will you make it through the lean months? Can you handle the uncertainty of a fluctuating income?

So, how do you find information?

First, if other people provide services similar to yours, talk to them. You will gain a lot of information quickly. Their answers to your questions will save you a lot of legwork and open your eyes to factors you may not have considered.

Try to talk to at least five or six people so you can get a range of viewpoints.

You can find them through trade associations, schools, word-of-mouth. If the locals are reluctant to share information - perhaps because they see you as direct competition - look for similar people in a different locale.

Second, create the information you need.

Mimic and simplify what large businesses do. Reduce their methods down to a level that is practical and affordable.

For example, perhaps you want to survey potential clients and customers to get feedback.

If you are a creating a micro-business on a shoe-string, it may not be affordable nor practical to commission a focus group. But you may be able to speak to potential targets informally or use direct mail to send a simple survey.

Eventually you'll have to 'put your toe in the water.' Try it out in a small way - so you won't lose much if it doesn't work - and observe the results. Then experiment and modify as needed. Once it works to your liking you can plunge right in.

This approach, known by the technical term "trial and error," can be applied to any facet of your business.

After all, even the largest producers test market new products before rolling them out.

Put some parameters around your efforts. Decide, in advance, how much time you want to allow and how much you want to budget.

Then test, test, test.

Use trial and error for every aspect of your business. Experiment with different ways of packaging your services, different rates and prices, different types of marketing, etc.

You'll soon find that certain approaches work better than others. Eventually your experience and data will suggest viable strategies.

And then you'll be ready to create your business plan.

About the author:
Ellen Zucker has been successfully self-employed for over 10 years. Self-Employment 101... It's about making a living and creating a life! http://SelfEmployment101.com

Business Planning for College Students and First-Time Entrepreneurs

2007-08-28T22:41:00.000+08:00

Business Planning for College Students and First-Time Entrepreneurs
by: Dave Lavinsky

More and more students, both in undergraduate and graduate institutions, are deciding to launch their own ventures upon graduation rather than taking the traditional route of working for another firm. Likewise, more and more individuals are leaving their jobs to fulfill their entrepreneurial dreams.

While these ventures may ultimately be very successful (e.g., Google and Microsoft were both launched by students), they face certain challenges in their business plans and capital raising processes. The foremost challenge is overcoming the lack of experience of the management team. A classis chicken-and-egg problem presents itself – the management team has no past company successes to point to, and can’t prove itself unless given the opportunity to launch the business. While this problem is nearly always the case for graduating students, it also presents itself to many entrepreneurs, particularly those who are launching their first ventures.

To overcome this challenge, these ventures must represent themselves as having a great team by attracting a stellar management team and/or advisors. By attracting a quality management team, even if the team will not start until after financing, it gives investors that confidence that the plan will be properly executed. It also proves that the entrepreneurs have the ability to “sell” others on their vision. The management team need not be complete before seeking capital, since additional members will most likely be added after capital is raised. For instance, shortly after Google raised capital from Sequoia Capital and Kleiner Perkins Caufield & Byers, Omid Kordestani left Netscape to accept a position as vice president of business development and sales, and Urs Hölzle was hired away from UC Santa Barbara as vice president of engineering.

Attracting high-quality advisors builds great credibility since if respected individuals are willing to risk their reputations by taking an advisory position, the venture must have some merit. Advisors can also help with the execution of the business and sometimes will also provide the needed capital. In Google’s case, when no major portal was interested in partnering with or funding the company, Larry Page and Sergey Brin were able to convince Andy Bechtolsheim, one of the founders of Sun Microsystems, to become an advisor and investor. Bechtolsheim contributed the initial $100,000 to the company.

Even if the venture is able to attract quality management teams and advisors, it will always be at a disadvantage versus other ventures headed by entrepreneurs who have “been there, done that” successfully in the past. To compensate for this, these ventures must really know their customers, know their market and know their competition. By possessing an in depth knowledge of the external factors that will effect the company’s success, the entrepreneurs can both create a solid business strategy and convince investors that an opportunity really exists. If the opportunity truly exists, then investors know that even if the venture is initially mismanaged, then they can hire additional managers later to put it back on course.

In summary, when students or first time entrepreneurs, begin developing their business strategies and plans, they must compensate for the management deficiencies they possess versus established entrepreneurs. By doing this and showing a comprehensive knowledge of their market, these ventures can level the capital raising playing field. Fortunately, these ventures can point to a long list of other successful companies which were launched by students and/or first time entrepreneurs, most notably Google and Microsoft.

About the author:
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital

Business Plans- What Consultants Don’t tell You!

2007-08-25T23:51:00.000+08:00

Business Plans- What Consultants Don’t tell You!
by: Greg Chapman
Copyright 2005 Empower Business Solutions

Do you have a Business Plan? Congratulations, but you are in a small minority. And if you have a plan, is it integral to your business, and instrumental to its growth? If the answer to this question is yes, then you need to read no further. However, most business owners who actually go to the trouble to write a business plan have left it languishing on their bottom shelf, gathering dust! This is the dirty little secret of business consultants.

Most business consultants are only interested in selling their time or their ‘Business Plan in a Box’ but know that for a business plan to be useful, it has to be part of a Business Management System. But this is a much harder proposition for the consultant to sell, particularly to small business owners who are just looking for a quick fix. So most consultants just sell a quick fix solution- a business plan that they know will, within months, end up on the bottom shelf. Once owners have prepared their “fill in the blanks” plan, they expect it to transform their business overnight just by its mere existence. And because this does not happen, they never look at it again.

Business Plans do work, but you have to make them work. It is not a one-off exercise. If you buy a ‘Business Plan in a Box’, you need to understand that you are responsible for maintaining the plan. You also need to satisfy yourself that the product you buy is not just a fill in the blanks product. These plans always end up on the bottom shelf. They don’t show you how to do your strategic analysis (which is never a fill in the blanks exercise- no matter what someone tells you).

Business Planning is a real soul searching exercise for the business owner. You have to be brutally honest with yourself. Even if you prepare your plan yourself (without a coach), get someone else involved to keep you honest! Looking at examples of what others have done can help, but your business will have different strengths and weaknesses and will operate in a different marketplace. And lastly, make sure any off-the-shelf product you choose will show you how to implement your plan into your business.

When you use a consultant, insist that they show you how the plan should be implemented into your business process. And have the consultant give you at least one review of your performance against your plan six months after the plan has been delivered. While this will cost you extra, this will ensure that your plan does not end up on the bottom shelf- because you know you will be held to account!

Business Planning is not an easy process. It takes time and commitment. You don’t just do it once. This is not what business owners want to hear, and what most consultants won’t tell you, because it might cost them a sale. But the rewards from a well implemented business plan are worth many times your investment.

--------------------------------------------------------------------------------
About the author:

Dr Greg Chapman assists small to medium sized businesses with business planning, business systems and marketing strategy. To find out how you can Multiply Your Profits & Make Your Business Run without You, and to find out How Good Your Business Really Is with a Free Online Business Medical, go to Empower Business Solutions website at: http://www.empowersolutions.com au

Business Plans

2007-08-25T23:49:00.000+08:00

Business Plans
by: Sanjib Ahmad

Way back in business school we had to churn out business plans every semester. As soon as the assignment would drop we would be scrambling for information. Start the number crunching game, do the analysis, do some mental planning and write business plans.

Then we graduated and got jobs. But, we still have to write business plans.

I came across a collection called Business Plans from 'Business-planning-4-you' (http://business.marc8.com/ebook-info.php/name/business_plans/toc_id/1-0-1-5) a few weeks ago. The title caught my eye as I wondered who would be giving away business plans and how many? How would they manage the number of industries? I wanted to find out more.

- It seems that they have over 1500 readymade business plans in their database.
- Covers a wide range of industries: from Abattoir Business Plan to Zen Practitioner Business Plan.
- The cost is $50 as of this writing. That makes it 3 cents per business plan (50/1500 = 0.03).
- They offer about 24 extra bonuses

I know I would be happy with the business plan templates that I could modify and add my own thoughts. I think it would be like instant soup. You have bought the basic ingredient, but you still need to provide a little bit more like hot water and a bowl.

Though I haven't tried the collection myself it looks quite good. I think this would be useful if you are in business school, early part of your career, or even a seasoned business man venturing into new areas.

Till next week and all the best with your business planning!

--------------------------------------------------------------------------------
About the author:

About the Author
Sanjib Ahmad is a Product Consultant for "Business.Marc8.com - Business Best Sellers" (http://business.marc8.com). You are free to use this article in its entirety as long as you leave all links in place, do not modify the content, and include the resource box listed above.

Developing Realistic Financial Assumptions in Your Business Plan

2007-08-21T16:06:00.000+08:00

Developing Realistic Financial Assumptions in Your Business Plan
by: Dave Lavinsky

Many investors skip straight to the financial section of the business plan. It is critical that the assumptions and projections in this section be realistic. Plans that show penetration, operating margin and revenues per employee figures that are poorly reasoned, internally inconsistent or simply unrealistic greatly damage the credibility of the entire business plan. In contrast, sober, well-reasoned financial assumptions and projections communicate operational maturity and credibility.

For instance, if the company is categorized as a networking infrastructure firm, and the business plan projects 80% operating margins, investors will raise a red flag. This is because investors can readily access the operating margins of publicly-traded networking infrastructure firms and find that none have operating margins this high.

As much as possible, the financial assumptions should be based on actual results from your or other firms. As the example above indicates, it is fairly easy to look at a public company’s operating margins and use these margins to approximate your own. Likewise, the business plan should base revenue growth on other firms. Many firms find this impossible, since they believe they have a break-through product in their market, and no other company compares. In such a case, base revenue growth on companies in other industries that have had break-through products. If you expect to grow even faster than they did (maybe because of new technologies that those firms weren’t able to employ), you can include more aggressive assumptions in your business plan as long as you explain them in the text.

The financials can either enhance or significantly harm your business plan’s chances of assisting you in the capital-raising process. By doing the research to develop realistic assumptions, based on actual results of your or other companies, the financials can bolster your firm’s chances of winning investors. As importantly, the more realistic financials will also provide a better roadmap for your company’s success.

About the author:
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital

Developing a Business Plan = Developing a Succesful Business.

2007-08-21T16:02:00.000+08:00

Developing a Business Plan = Developing a Successful Business.
by: Anthony Jewell

Whether you are starting up a new business or you already have an established company, the importance of a business plan may be over looked. Yes, they can take some time to draw up but just think of your business plan as a map of a country. Without the details and information on this map, trying to navigate yourself around a country will usually end up leaving you lost. Probably travelling the same routes over and over again, taking you 2-3 times longer to find your way(if you do every find your way).

A detailed business plan could mean your success in business. Consider this. How can you take your company in the right direction, developing the methods you need to succeed if you do not know what you are trying to accomplish. It would be like building a house with no plans and trying to put the roof on first. Yes, you may be successful in building the roof but your house will be missing some essential pieces. You may not miss these pieces at first, but down the line(especially when the winter comes) you are going to be wishing you built those walls too!

A business plan plots a course for your business to follow. It allows you to determine and realize your growth but more importantly what steps are needed to be token to achieve this. It helps you figure out the materials you need in place so that you can first build a strong infrastructure for your business. Another great thing about a business plan is that like any map it can be changed over time to represent the lay of the land. Which allows you to make any changes that need to be made to your route and to help you navigate them better.

While you are developing your business plan you will see that it will start to show you what you will need to do to be successful. Including such things as materials needed, your timeline and projected numbers for your business. It also will show your projected income and losses, as well as how your business will do in the first months and year(s) of operations. This information is priceless.

Another important factor of a business plan is that it will show you how you need to grow. You may wonder why this is so important? Simple. It falls right under you developing a marketing plan and picking out areas/markets for you to advertise in to grow your business. Without knowing where your business is going, there will be no way for you to develop an accurate marketing plan. These two things go hand and hand with each other.

So remember whether your business has been around for days, weeks months, years or is just an idea in your head. Develop a business plan which will help you develop a successful business.

About the author:
Anthony Jewell has over 6 Years experience in the Web & Graphics World. You can visit my business at http://www.logo2d.com

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Successful Business Plan

2007-08-21T15:58:00.000+08:00

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