by: Ryan Hough
We believe that there are 3 factors that drive the success of small businesses.
1) Acquiring start-up capital
2) Finding customers
3) Accounting for, budgeting and controlling sales and expenses
The following resources will help your small business achieve these success factors.
Acquiring Start-Up Capital
An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money.
There are two ways to obtain a business plan.
1) Do it yourself by amending a business plan template, or 2) Hire a professional to do it for you. Obviously obtain 1) will be a great deal cheaper.
Our research led to a website that has over 60 high quality and free business plan templates. We also found a directory that you can use to easily find a business plan writer in your city – where ever you live in the world.
Finding Customers
Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. We believe that a cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards.
Our research led to a few websites that have pre-designed business card templates. We felt that the diversity and quality of these designs was outstanding. In addition, we found that you can obtain a significant saving by finding a printing service on the Internet. We found that you could get 2,000 full color business cards for as little as US $150.
Accounting For, Budgeting and Controlling Revenue and Expenses
Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till.
Our research led to a website that compares and reviews top accounting software for small businesses. The cheapest software cost US $89.99 and the most expensive software cost US $1,499. It was interesting to note that the top 3 ranked websites were not the most expensive and cost between US $250 - US $300.
Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. If you would like to benefit from our research please visit our website. We do not charge for this research and offer the content freely on our website.
For more information please visit www.honostreview.com
Wednesday, November 12, 2008
5 Home Biz Mistakes Every Entrepreneur Should Make!
by: bb lee
In a previous article appropriate steps to start a home based business were discussed. This important article will review the 5 top mistakes many home based business owners make that might evolve into a great success story. Warning! This approach is not for everyone. One theory is readers will learn a new way of thinking and perhaps propel their business ideas into motion.
Let's get started with the list!
1. Business Plans. Many article's online vow by the business plan. Every new business owner must draft a business plan if they want to succeed. One successful business owner online never thought of drafting a business plan. He learned the hard way. He made many errors but claimed the learning experience was a powerful teacher. He further stated the lessons he learned were better than any course in business school or college. He soon learned how to deal with the many ups and downs in the business world. Dealing with frustration. All things you learn from the school of hard knocks.
2. Education. Once again many experts think several degree's are the key to immediate success in any chosen field. Many successful entrepreneurs never went to college. And quite a few barely finished high school. Success is not always in the books you read but in how you deal with your business in the real world.
3. Rushing. Experts believe you should take your time and wait to select the proper business for you and your background or education. Taking time to study the various ideas is key to success. Others see an opportunity and immediately grab it.
4. Over confidence. Believing you will be successful and ignoring negative opinions from friends and family. Family might have good intentions, wanting to save you from making an error in judgement, but they might throw a wrench in your business idea. Halting the business venture altogether.
5. Unrealistic view. Always seeing the good side. Thinking positive. That yes you can succeed in this business. Positive thinking is an asset every self employed business owner should own. Many business owners with a positive outlook continue striding forward where others simply give up.
That's the list. It bares repeating that going against expert advice is not for every new entrepreneur. But many new home biz owners found great success in following their own path.
For more information please visit www.honostreview.com
In a previous article appropriate steps to start a home based business were discussed. This important article will review the 5 top mistakes many home based business owners make that might evolve into a great success story. Warning! This approach is not for everyone. One theory is readers will learn a new way of thinking and perhaps propel their business ideas into motion.
Let's get started with the list!
1. Business Plans. Many article's online vow by the business plan. Every new business owner must draft a business plan if they want to succeed. One successful business owner online never thought of drafting a business plan. He learned the hard way. He made many errors but claimed the learning experience was a powerful teacher. He further stated the lessons he learned were better than any course in business school or college. He soon learned how to deal with the many ups and downs in the business world. Dealing with frustration. All things you learn from the school of hard knocks.
2. Education. Once again many experts think several degree's are the key to immediate success in any chosen field. Many successful entrepreneurs never went to college. And quite a few barely finished high school. Success is not always in the books you read but in how you deal with your business in the real world.
3. Rushing. Experts believe you should take your time and wait to select the proper business for you and your background or education. Taking time to study the various ideas is key to success. Others see an opportunity and immediately grab it.
4. Over confidence. Believing you will be successful and ignoring negative opinions from friends and family. Family might have good intentions, wanting to save you from making an error in judgement, but they might throw a wrench in your business idea. Halting the business venture altogether.
5. Unrealistic view. Always seeing the good side. Thinking positive. That yes you can succeed in this business. Positive thinking is an asset every self employed business owner should own. Many business owners with a positive outlook continue striding forward where others simply give up.
That's the list. It bares repeating that going against expert advice is not for every new entrepreneur. But many new home biz owners found great success in following their own path.
For more information please visit www.honostreview.com
9 things you must do to maximize your chances of obtaining a small business loan
by: Neil Best
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.
To vastly increase your chances of a successful funding application, you will need to present the following information:
1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.
2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).
3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”
4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?
5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.
6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.
7. Latest Set of Management accounts. Again produced from your accounting software.
8. Accounts receivables (debtors) and payables (creditors) ageing reports.
9. Principals financial statements. – Particularly required if some form of security is necessary.
If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.
You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)
For more information please visit www.honostreview.com
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.
To vastly increase your chances of a successful funding application, you will need to present the following information:
1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.
2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).
3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”
4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?
5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.
6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.
7. Latest Set of Management accounts. Again produced from your accounting software.
8. Accounts receivables (debtors) and payables (creditors) ageing reports.
9. Principals financial statements. – Particularly required if some form of security is necessary.
If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.
You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)
For more information please visit www.honostreview.com
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