Business Risks
Many business owners have failed in thier endevours. They start thier buisnesses without consedering the risk invoved. If you don't know the risks you can not take precautions.
Many business owners try to start a business without a business plan because they're intimidated by the idea of writing one, and they end up failing because they don't have a guide. If you don't know how to write a business plan, consult the Small Business Administration's Web site at www.sba.gov. There's a model plan there that you can adapt as your own.
There are reasons that business ventures fail, and, when you know what they are, you can avoid them. Sure, there are risks involved with starting your own business. You could lose a lot of money. You could become estranged from your family if you put all your time and energy into work. You could lose your business to fire, an earthquake, or flood.
But there are risks involved with working for somebody else, too. You might lose your job. You might hate the job and be miserable every day of your life. You might have to take a salary cut, or become estranged from your family because you're traveling for weeks at a time.
All of life involves risk. If you go into a business, or a marriage, or anything else thinking that you'll fail, then chances are that you will fail.
Most businesses fail because the person who started them didn't set goals, or failed to thoroughly think through what he would do, and how he would do it. Some entrepreneurs try to start a business without ever writing a business plan, which is a huge mistake.
A business plan is the entrepreneur's bible, and an absolute necessity. It not only serves as a road map for where your business will go and how you'll get it there, it will be an important sales document when you're trying to attract funding for your business.
If you do your homework, and adequately prepare before starting a business, chances are good that you can make it work. And remember that not attempting something you really want because you're afraid of the risk involved might be the biggest failure of all.
Rewards of Going It Alone
Money Morsel
Having money is nice, but remember that it doesn't solve all your problems. Someone once said something like, “When you have money, people think you have no problems. All money means is that you don't have money problems. You still have all the others.”
Why then, if the hours are long, the pay unpredictable at first, and the future uncertain, do so many people succumb to the urge to start their own businesses?
They do it because they believe the potential rewards far outweigh the risks involved, and they have enough confidence in themselves to believe they'll be successful.
Let's cut to the chase. Most people start their own businesses because they hope to make money—lots of money. And, they're drawn to the prospect of being their own boss. Other factors count, such as the opportunity to meet other people in business, or to be recognized within the business community. Basically, however, it boils down to money and freedom.
Making a lot of money is good because it gives you great freedom. Think about how nice it would be to not have to worry about how you'd pay for the kids' college educations or fund your own retirement? Think about being able to pack up on the spur of the moment and head out for an island getaway. Or taking the whole family on a ski trip to Aspen over Christmas.
Money is definitely an incentive, and one of the greatest rewards of being an entrepreneur. The freedom of being your own boss is another reward of owning and running your own business. It's nice to be able to take off for a couple of hours to watch your daughter's soccer game or to take your elderly parent to his doctor's appointment.
Of course, being your own boss also entails a lot of responsibility, but it provides a very attractive sense of freedom. One additional reward—and it's a big one—of starting your own business, is the great feeling of accomplishment that comes with having built an enterprise from your hopes and dreams.
Wednesday 20 January 2010
WHY BUDGET?
Budget and Money Management
You can plan your life better with a personal budget. It will help you live within your means and avoid over-committing. It will also help you plan for your retirement better.
Why budget?
With budging, you will have a clear sense of how to spend your money. It will help you become a responsible consumer, you will be to shopper for the best your money can afford, cut unnecessary expenses, and save money. You will stop living above your means.
Creating a simple budget
You don’t have to be an accountant to put together your budget. Budgets can be simplified into Outgoings and Incomings. AT the minimum, your Outgoings must equal your Incomings.
Outgoings
This is …
Incomings
This is…
If your outgoings is greater than incomings
You can do the following…
If you have money left over
You should always put something away for raining days…
You can plan your life better with a personal budget. It will help you live within your means and avoid over-committing. It will also help you plan for your retirement better.
Why budget?
With budging, you will have a clear sense of how to spend your money. It will help you become a responsible consumer, you will be to shopper for the best your money can afford, cut unnecessary expenses, and save money. You will stop living above your means.
Creating a simple budget
You don’t have to be an accountant to put together your budget. Budgets can be simplified into Outgoings and Incomings. AT the minimum, your Outgoings must equal your Incomings.
Outgoings
This is …
Incomings
This is…
If your outgoings is greater than incomings
You can do the following…
If you have money left over
You should always put something away for raining days…
Business Start Up: Secrets To Get You Started!
5 Ways to Find the Perfect Business Idea
One of the greatest challenges I had in starting my business was actually coming up with the idea. I wanted something that was scalable as well as needed in our society. I combed through hundreds of ideas before settling on my current venture. Through this discovery period, I uncovered what I believe are the five most important concepts in determining what makes the perfect business idea.
Step One - Knowing your customer: This might seem strange to start here as how do you know your customers before you have a business idea in place. The answer is simple - your customers make the business, therefore without customers there is no business. If you have a business idea don't try to develop the idea around what YOU think potential customers will like or need, but find out what your customers actually desire. Too often business owners get an idea in their head and jump right in with both feet. However, they soon find out that their target market does not want what they are offering. Spending both time and money on a project just to see it languish is not the perfect business idea.
Let's say you don't already have an idea - getting out and understand consumers (those who will eventually become your customers) may lead you to the perfect idea. Knowing what potential consumers need and building products to meets those needs will get customers beating a path to your door - that is a perfect business idea.
Step Two - Passion: Passion here does not mean being fanatical about your product or service. But, it does mean having some interest in what you do. More times than not, you will be spending 15 to 18 hours a day working on your business in the beginning - usually for the first 12 to 18 months (more like 2 years in this economy). You have to constantly be thinking about ways to improve and grow your business as well as be out talking about it to everyone, everywhere. If you end up starting a venture that you don't have passion for, something that does not make you jump out of bed each morning, it will be very hard to put in the hours and energy to make it successful - thus not a perfect business idea.
Step Three - Understand Your Competition: Every business has competition - either direct or indirect. Think about movie theaters. They have direct competition from video rental stores or at home television. They also have indirect competition from any other activity that consumers spend their disposable income on like bowling, paint ball, golf, etc. Anything that people do in their spare time.
Further, some competitors are ruthless. Meaning that if you promote and offer a product that is similar to theirs but at a lower price, these competitors will just lower their price to match or beat you. If they are already established businesses - they may be able to undercut your price enough to drive you out of business.
If you don't know your competition - what they are willing to do to keep you out of their market - you may be spending more of your time in a pricing war then growing your business - not the perfect business idea.
Step Four - Cash Flow: Lots of entrepreneurs enter the business world with great ideas but very poor understanding of the capital it will take to get their venture off the ground. Most will prototype their product or service and understand what it takes to make the product or provide the service but they don't understand the capital it takes to manage the rest of the organization - including marketing (very expensive but extremely necessary), employees (more than just salaries or wages), insurance or supplies and all the little miscellaneous expenses that add up very quickly like phone, internet, computer services, etc. Knowing your total cash flow will help ensure that all of your costs (variable and fixed) can be covered by the business - the perfect business idea. I have seen way too many businesses with great products fail because they could not cover simple expenses like rent or utilities.
Step Five - You: Know who you are. Know your strengths and weaknesses. Know that you are ready, willing and able to do what it takes to make your venture a success. I have worked with many business owners in the past that think all they have to do is hang out their shingle and they have it made. Thus, when it comes down to actually running the business day-to-day - they are unwilling to invest the time, energy or money necessary for success. Thus, know how hard you are willing to work.
Moreover, know your personal financial situation and what you need the business to generate to cover your lifestyle. If you think your business will pay you a great salary from day one - it will not. And, if you need it to, it is not the perfect business idea for you. Take away outside distractions like your personal financial situation - get those in order - thus, when your business concept does materialize - you will be able to solely focus on its conception and growth. In the end providing you the financial security you are seeking - it will be the perfect business idea.
Regardless of the level of your desire for your business - a lifestyle mom and pop operation or a multi-national conglomerate - if you develop a business idea with these five concepts in mind - your idea will be the perfect business idea for you.
One of the greatest challenges I had in starting my business was actually coming up with the idea. I wanted something that was scalable as well as needed in our society. I combed through hundreds of ideas before settling on my current venture. Through this discovery period, I uncovered what I believe are the five most important concepts in determining what makes the perfect business idea.
Step One - Knowing your customer: This might seem strange to start here as how do you know your customers before you have a business idea in place. The answer is simple - your customers make the business, therefore without customers there is no business. If you have a business idea don't try to develop the idea around what YOU think potential customers will like or need, but find out what your customers actually desire. Too often business owners get an idea in their head and jump right in with both feet. However, they soon find out that their target market does not want what they are offering. Spending both time and money on a project just to see it languish is not the perfect business idea.
Let's say you don't already have an idea - getting out and understand consumers (those who will eventually become your customers) may lead you to the perfect idea. Knowing what potential consumers need and building products to meets those needs will get customers beating a path to your door - that is a perfect business idea.
Step Two - Passion: Passion here does not mean being fanatical about your product or service. But, it does mean having some interest in what you do. More times than not, you will be spending 15 to 18 hours a day working on your business in the beginning - usually for the first 12 to 18 months (more like 2 years in this economy). You have to constantly be thinking about ways to improve and grow your business as well as be out talking about it to everyone, everywhere. If you end up starting a venture that you don't have passion for, something that does not make you jump out of bed each morning, it will be very hard to put in the hours and energy to make it successful - thus not a perfect business idea.
Step Three - Understand Your Competition: Every business has competition - either direct or indirect. Think about movie theaters. They have direct competition from video rental stores or at home television. They also have indirect competition from any other activity that consumers spend their disposable income on like bowling, paint ball, golf, etc. Anything that people do in their spare time.
Further, some competitors are ruthless. Meaning that if you promote and offer a product that is similar to theirs but at a lower price, these competitors will just lower their price to match or beat you. If they are already established businesses - they may be able to undercut your price enough to drive you out of business.
If you don't know your competition - what they are willing to do to keep you out of their market - you may be spending more of your time in a pricing war then growing your business - not the perfect business idea.
Step Four - Cash Flow: Lots of entrepreneurs enter the business world with great ideas but very poor understanding of the capital it will take to get their venture off the ground. Most will prototype their product or service and understand what it takes to make the product or provide the service but they don't understand the capital it takes to manage the rest of the organization - including marketing (very expensive but extremely necessary), employees (more than just salaries or wages), insurance or supplies and all the little miscellaneous expenses that add up very quickly like phone, internet, computer services, etc. Knowing your total cash flow will help ensure that all of your costs (variable and fixed) can be covered by the business - the perfect business idea. I have seen way too many businesses with great products fail because they could not cover simple expenses like rent or utilities.
Step Five - You: Know who you are. Know your strengths and weaknesses. Know that you are ready, willing and able to do what it takes to make your venture a success. I have worked with many business owners in the past that think all they have to do is hang out their shingle and they have it made. Thus, when it comes down to actually running the business day-to-day - they are unwilling to invest the time, energy or money necessary for success. Thus, know how hard you are willing to work.
Moreover, know your personal financial situation and what you need the business to generate to cover your lifestyle. If you think your business will pay you a great salary from day one - it will not. And, if you need it to, it is not the perfect business idea for you. Take away outside distractions like your personal financial situation - get those in order - thus, when your business concept does materialize - you will be able to solely focus on its conception and growth. In the end providing you the financial security you are seeking - it will be the perfect business idea.
Regardless of the level of your desire for your business - a lifestyle mom and pop operation or a multi-national conglomerate - if you develop a business idea with these five concepts in mind - your idea will be the perfect business idea for you.
Secrets To Start A Business
Top 10 Tips for Starting a Business That Will Succeed
Advice on Starting a Business to Ensure Success
1) Do what you love.
You're going to devote a lot of time and energy to starting a business and building it into a successful enterprise, so it's really important that you truly deeply enjoy what you do, whether it be running fishing charters, creating pottery or providing financial advice.
2) Start your business while you're still employed.
How long can most people live without money? Not long. And it may be a long time before your new business actually makes any profits. Being employed while you're starting a business means money in your pocket while you're going through the starting a business process.
3) Don't do it alone.
You need a support system while you're starting a business (and afterwards). A family member or friend that you can bounce ideas off and who will listen sympathetically to the latest business start up crisis is invaluable. Even better, find a mentor or, if you qualify, apply for a business start up program such as The Self-Employment Program. When you're starting a business experienced guidance is the best support sytem of all.
4) Get clients or customers first.
Don't wait until you've offically started your business to line these up, because your business can't survive without them. Do the networking. Make the contacts. Sell or even give away your products or services. You can't start marketing too soon. (See Attracting New Business on a Shoestring Budget and Just Do These Two Things to Get More Clients for tips.)
Advice on Starting a Business to Ensure Success
1) Do what you love.
You're going to devote a lot of time and energy to starting a business and building it into a successful enterprise, so it's really important that you truly deeply enjoy what you do, whether it be running fishing charters, creating pottery or providing financial advice.
2) Start your business while you're still employed.
How long can most people live without money? Not long. And it may be a long time before your new business actually makes any profits. Being employed while you're starting a business means money in your pocket while you're going through the starting a business process.
3) Don't do it alone.
You need a support system while you're starting a business (and afterwards). A family member or friend that you can bounce ideas off and who will listen sympathetically to the latest business start up crisis is invaluable. Even better, find a mentor or, if you qualify, apply for a business start up program such as The Self-Employment Program. When you're starting a business experienced guidance is the best support sytem of all.
4) Get clients or customers first.
Don't wait until you've offically started your business to line these up, because your business can't survive without them. Do the networking. Make the contacts. Sell or even give away your products or services. You can't start marketing too soon. (See Attracting New Business on a Shoestring Budget and Just Do These Two Things to Get More Clients for tips.)
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