If you are considering going into business for yourself, it makes absolute sense to be as prepared as possible. Here is a checklist of things you need to consider.
1. Living Funds – Unless you are one of the very lucky few, your business will not be profitable from the word go. Remember, it took even mighty Google a couple years to even find funding to make a serious effort at becoming an Internet giant. How much money do you have set aside for living expenses? Six months to a year is a good range if you will be working full time on your new business.
2. Time – Running your own business can be incredibly rewarding. That being said, it is going to take a lot of your time. Do you have a family? Kids? Other time obligations? You can expect to spend 10 to 12 hours a day during the first year getting up and running, so make sure you have the wiggle room to handle it.
3. Business Form – When starting out, you need to determine what form your business will take. Will it be a corporation, limited liability company or just a sole proprietor. The decision is primarily one of risk. The bigger the chance of getting sued, the more you should consider undertaking the expense of a corporation or limited liability company.
4. Taxes – Uncle Sam wants and gets his money. Every business plan needs to account for tax issues. You might live in a state that has a favorable tax climate for business, but then again you may not. Some of the best money you can spend when starting out is to find a good accountant. They can save you a bundle. The best accountant is a proactive one. By proactive, I mean they work with you to put together plans on how to save on your taxes at the beginning of each year. Find one and spend the time to get it right.
5. Passion vs Profit – People are often looking for the “best” business idea. This is a mistake. The best business idea is the one you are very interested in. If you love fishing, start a business that has something to do with fishing. You should generally avoid starting a business because you think you can make a lot of money. It is going to take a ton of work, so go with something you are passionate about so you can get through the tough times.
If you take these factors into account, you will be well ahead of many people that start their own businesses. Find something you are passionate about, be prepared and your chances of success will be much better.
By: Richard Chapo
Posts Tagged ‘Business Plan’
Checklist for Going Into Business for Yourself
April 25th, 2010Small Business Loans – Initiates a Good Start For Your Business
April 23rd, 2010
To be a successful entrepreneur, it is a must to have the requisite support of money. It is not a matter of concern what is the size and nature of business you are dealing. Finance plays a very important role as it assists you to accomplish your goals. Whenever starting a new business or refinancing the existing one, it is the flow of finance which determines the success of business. In this regard, you can consider small business loans which provide the necessary monetary assistance. These loans are very easily accessible and can be used for a number of purposes.
With these loans, you have the finances which enable you to take care of the various demands. You can utilize the amount for installing machinery and tools, purchasing raw materials, arranging transportation of finished products, paying wages and salary, purchasing plot, clearing unpaid debts and so on.
These loans can be availed in two forms of secured and unsecured. Secured form of the loans offers a bigger amount at comparatively low interest rate. But to avail this loan option, you have to pledge one of your valuable assets as collateral. It is the equity value present in the collateral which helps you access a bigger amount
On the other hand, unsecured form of the loans can be obtained without pledging any collateral. This loan option is totally risk free and is beneficial to meet small needs. The amount offered is limited and is offered with a high rate of interest. Those with imperfect credit history such as CCJs, IVA, arrears, defaults, non repayment etc can also avail these loans. However the interest rates levied will be slightly higher.
Before availing the loans, you must prepare a loan proposal which clearly outlines where and how the amount will be utilized and repaid. A good business plan will help you obtain the loans instantly. You should also provide the business related documents with the loan proposal.
Small business loans are offered by most of the lenders based in the financial market. However to get the best deals, you should prefer applying online. By collating and comparing the rate quotes of various lenders, you can select a suitable deal. Thus with these loans, you are not required to worry about arranging finances to take care of your business needs.
By: Ben Gannon
Does Your Cleaning Business Have a Mission Statement?
April 20th, 2010
Along with a business plan, a mission statement is an important tool that will capture the spirit of your business. A mission statement helps to clarify the goals and objectives of your company. In just a sentence or two, the mission statement for your cleaning business will set your business goals, your underlying philosophy, and what special benefits you have to offer to your customers. A good mission statement will reflect that special niche that your cleaning business is catering to and provide a long-range vision for you to build on.
Following is a sample mission statement:
“ABC Cleaning Company is committed to delivering the exact services our commercial cleaning customers want, listening closely to their expectations, taking a pro-active approach in defining their needs, and building the best partnering relationship possible. We are also committed to acting with honesty and integrity at all times in all aspects of our business, to being professional in doing our job, and to delivering a consistent, high level quality of work.”
A well thought out mission statement will take more than just a few minutes to develop – it takes careful thought and planning. Spending time developing those few sentences that define your business can be just as valuable as the final statement. Going through the process of evaluating your cleaning business, and then defining your customers and your services will help you to look at your cleaning business from your customers’ perspective. Don’t get bogged down with technical jargon. Focus on defining your company’s strengths and why those strengths benefit your customers.
When you are ready to begin, sit down in an area with no distractions. To come up with the statements that will sum up what your cleaning business is all about, consider the following:
- What specific need does your business satisfy?
- What are the principles and values that guide you in the everyday operation of your business?
- Who are your customers?
- What level of service will you provide?
- What image would you like your business to portray to your customers?
To write an effective mission statement, sit down with those who are closest to your business and jot down notes to answer the above questions. Look at mission statements from other businesses and start brainstorming. Once you have a couple of key ideas draft those thoughts into complete sentences.
Once you have formalized your mission statement use it in your promotional materials. The statement will be a quick and easy way for your customers and potential customers to learn about your cleaning business. Keep your mission statement visible and live up to it everyday. This will show your employees and customers that you practice what you preach.
Copyright 2006 The Janitorial Store
By: Steve Hanson
