Category Archives: Business Development

Business Development, Business Strategy

Bootstrap Business Financial Plan – Starting a Small Business With Bootstrap Financing

Preparing a sound, bootstrap business financial plan is the absolute key ingredient for any budding entrepreneur starting a small business with bootstrap financing. Unlike a traditional business plan, a financial plan for a bootstrapped business contains six essential components.

Components of a Successful Bootstrap Finance Plan

1. Expense Summary
The expense summary contains the start-up costs and ongoing operating expenses needed to get your business up and running.

2. Projected Profit & Loss Summary
Your profit and loss summary is a key tool for determining how long it will take your business to become profitable. It reflects a very simple formula of: revenues minus expenses, equals profit or loss.

3. Sales Forecast Summary
Your sales forecast summary is an estimation of what you believe your sales are likely to be each month. Sales forecasting requires research and a solid knowledge of your industry, niche market and product or service.

Starting a small business with bootstrap financing requires laser targeted forecasting. This is not as difficult as it sounds, it just means you must really invest the time in thoroughly researching your business.

4. Reserve Funding Plan
Establishing a reserve funding plan is essential for weathering the “start-up storms”. This is a back up funding plan for keeping your cash flows above dangerous levels.  Your bootstrap business financial plan must include a reserve funding plan, in order for your new venture to be successful.

5. Cash Flow Management Plan
This is simply the anticipated inflow (sales) and outflow (expenses) of cash through your business by month. Why it’s so tricky is due to the fact that you may have slow sales or no sales when you’re just getting started. Or, perhaps your customers are not paying within terms. Even if you have great sales on paper, your cash flow management plan will determine your success to a large degree.

6. Balance Sheet
A balance sheet provides a good overall picture of what your business is actually worth. It takes your assets (physical goods like equipment or property) minus your liabilities (debts owed to creditors) and gives you the equity value of your business.

What makes these components different from what you would prepare for a business plan written for bank financing? Well, the main difference is that this plan is just for you. It is an actual plan that you must follow to achieve success in your business. I have seen far too many instances where a traditional business plan is almost completely ignored, once the bank loan check is cashed.

With over one third of brand new businesses failing in their first year of operation, you owe it to yourself to minimize your start up risk, by being well prepared with a sound financial plan.

Where Does a Bootstrapped Business Plan Fit In?

 Where does a bootstrap business financial plan fit in? Well, first you must understand bootstrap financing. Starting a small business without borrowing is the ultimate goal of a bootstrapped business’ financing strategy. Many new entrepreneurs just don’t realize that you can start up a business, even if you have very little money, poor credit or don’t own a home. How is this possible? I know that I’m going against conventional wisdom here, but you really can start up a brand new business without BIG bank loans or a stockpile of cash.

Find the free sources of business start up funding your new business needs to survive and thrive. Start by claiming your free copy of The Bootstrapper’s Business Start-up Planner, by visiting my website.

©2009 Kimberly Kelly – All Rights Reserved Worldwide.

Permission to reprint this article is granted strictly on the condition that it be reprinted in its entirety, with all live links and author bio in tact.

 

Kimberly Kelly is a Certified Start Up Business Consultant, specializing in bootstrap start up financing. She teaches new entrepreneurs the secrets for finding free sources of business start up funding [http://www.startupbusinesssurvivalguide.com] through her ebooks, seminars and coaching services. She is the author of the popular selling ebook: The Start-Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership. Visit her website at [http://www.startupbusinesssurvivalguide.com]

 

Article Source: https://EzineArticles.com/expert/Kimberly_Kelly/337048

 

 

 

 

Business Development, Business Strategy

Business Plans – Essential Elements and Your Business Profile

Your business plan and business profile is the roadmap that you will follow not only in the beginning of your company, but throughout your time in business. Therefore, it is essential that this plan be well-developed, focused, and detailed enough to serve as a planning tool and as a reference as well.

Your business plan format should be a careful, systematic evaluation of factors that are both critical and suitable to your business purposes and goals. You should strive to include topics that can be tailored to fit your plan. Maintaining focus on the specialized market that you plan to serve is another imperative factor as you define and describe your business and how you plan to proceed with your plan-which is precisely what you will do with your developed business plan. Following here is a break-down of what should be included in your business plan and profile.

Cash Flow Assessment

You absolutely need to take the time to sit down and project your first year of cash flow, based on projected sales, profits, and expenses. This cash flow assessment should include

o Your capital requirements
o Marketing plans
o Realistic projections of sales and profits
o Plans for expansion
o Your assessments of what could possibly go wrong and how you would handle certain problems

There are many small business websites and government resources on the local, state, and national level (for all locations) that can help you learn more about developing the cash flow assessment portion of your business plan.

Market And Economic Assessments

You must put time into researching your target market. You need to know how your business is appropriate for specific demographics and which ones you’ll deal with. You also need to learn about what costs and expenses those demographics can afford, and what demand they have for your service or products. Demographic studies should be cited and a summary of your research needs to be included to show that you have developed a way to serve a need that is either in demand or will be once available. Local planning departments are one resource for finding demographics for things such as population and population break-downs, household demographics, and more. Trade associations are good resources for information related to supply, demand, and target market characteristics.

Meeting Regulatory Requirements

Some businesses have very few regulatory requirements while others bear quite a large burden. Your role is to know what you are responsible for in your line of business. This knowledge should be represented in your business plan, and you need to account for the costs and expenses relative to them. Include information such as

o Which agencies regulate your industry

o Which specific regulations you need to meet

o Licensing requirements

o Fees and costs

o Regulatory or licensing requirements that you have already fulfilled

o Plan for meeting outstanding obligations

Including Yourself And Others In The Plan

Naturally, the key factor in achieving business success is YOU. Sit down and focus on skills and experiences of the past pertaining to your new business. Prepare a resume for yourself and others who may be involved with your business; ensure it is strongly written as your plan will be reviewed carefully by those you look to forge business relationships with such as vendors, investors, and lenders. If you aren’t skilled at preparing resumes, there are many virtual assistants and ghostwriters who will be more than happy to accept you as their client; otherwise there are many books and online resources to assist you.

As you write your resume, be honest and don’t write any untrue information; if there is a particular function you lack the ability to perform, be sure to include this in your business plan, and address how the need will be filled. Your resume and business plan should inspire confidence for both what you do and do not know, and the skill you show in fulfilling all needs of your business.

Five Steps To Successfully Create A Business Plan

1. Sit down, relax, focus, and concisely describe your business concept-put it down on paper!

2. Perform research and due diligence, and gather as much data as you possibly can.

3. Based upon data you have accumulated focus and redefine your business concept.

4. Outline the specifics of your business, utilizing the “who, what, when, where, why, and how” approach; make sure all of these answers are provided within the text of the plan.

5. Proof and adjust your business plan.

In both the short- and the long-run, arranging your business plan into a compelling form not only provides insight and focus to you, but becomes a valuable tool when dealing with business partners and developing relationships that will become important to you.

Necessary Factors Contributing To Business Success

o Understand your market

Researching your target market and their needs is imperative. Find ways to test market your product or service before starting your business.

o Financial control

You’ll find out sooner than later the importance of accounting, cash flow management, and computer software; many entrepreneurs don’t have accounting backgrounds and either need to learn those skills, or find the right tools and professionals to perform those functions. Still, at some level you must be involved so that those professionals and programs get the most accurate information possible and you stay abreast of how your company is doing.

o Anticipating change

Your original business plan will lay the foundation for your business, but over time, perhaps even before your business gets started, there will be many changes you must adapt to. Obtaining a certain mindset and being prepared for changing circumstances will only expand your knowledge and your success.

Julie-Ann Amos is a professional writer and business consultant. She has over 14 books published in many countries. She runs Exquisite Writing, a large freelance writing agency that produces a wide variety of articles, web pages, website contents, books and ebooks for an international client base. Topic experts available for a wide range of subject areas, including small business and business planning.

 

Article Source: https://EzineArticles.com/expert/Julie-Ann_Amos/64822

 

 

 

 

Business Development, Business Strategy

How To Optimize Google My Business Listing To (Generate Sales)

20% of your local optimization efforts will give you 80% of your results.

Wondering how?

With Google My Business.

Google My Business (GMB): A free listing of your business’ operating information, reviews, posts, images and much more.

Google My Business

Most of the people you’d come across; consider GMB as just another place to display information about the business.

But that’s not true!

If you haven’t used Google My Business to its core, you are leaving money on the table.

If used correctly, Google My Business is such a powerful tool that can bring you more and more business!

How?

Here it is…

1) Ensure The Information Is Complete And Consistent
Don’t let your audience guess or assume about you. Make sure your listing details communicate enough facts. Try to provide as much information as GMB asks for.

If you’ve just entered NAP (Name, Address, Phone) on your listing and waiting for wonders to happen, then let me tell you, this is a complete waste of your time.

Also,

Ensure the information you’ve entered on the listing is EXACTLY THE SAME as on your website.

Inconsistencies in the information will negatively impact your search ranking.

Google-my-business2

2) Verify Your Listing (If You Haven’t Done It Yet)

This is the key to unlock all the GMB features.

To verify your listing, you’ll be required to submit a code that is sent to your business address.

If you’re expecting some business through GMB, it is highly important to verify your business. With so many fake business registrations every day, a user would not prefer to make a purchase from an unverified listing.

After verification, you’ll need to keep an eye on the inbox associated with your Google My Business Listing, for any emails from Google. Google may unverify any listing if it determines that the account is inactive for a significant duration of time.

3) Google My Business Descriptions ARE BACK!

Google My Business had descriptions back in 2015-2016. They were suddenly gone and since then businesses had no descriptions; which left the users assuming your products and services.

Well, the good news is…

Business Descriptions are back!

With Google My Business descriptions, you have the chance to describe your business to your audience and explain what makes you different from your competitors.

Google My Business Descriptions come with a character limit of 750. So, you can get your message conveyed to the people and simultaneously optimize the listing by using relevant keywords.

Optimize Google My Business

4) Get More And More Reviews (And Respond To Them)

As described by Neil Patel in one of his articles,

Good reviews = sales. More good reviews = more sales.

90% of people read reviews before purchasing because everybody likes the second opinion.

Ask your customers to review your business. But just gathering reviews won’t help. You need to acknowledge them.

All of them!

The positive ones, the negatives, the neutrals.

5) Update Your Business Hours And Payment Options

Make sure your business operating hours are accurate. Update your working hours for any special events. Make sure that you don’t lose any customer because of incorrectly listed business hours.

Also, update your listing for any changes in the payment options.

Also read: 7 Reasons Why Businesses Need To Invest In SEO 2018

6) Choose Best Google My Business Category For Your Business

Be specific while picking a category for your business. Consider your targeted keywords.

Be careful though. Don’t stuff your listing with keywords.

Remember to be specific. Don’t put “Cosmetology” if you run a “Nail Salon.”

7) Pictures, Pictures, And More Pictures

Pictures speak volume!

According to Google, businesses with photos see 35% more clicks to their website and 42% more requests for driving directions on Google Maps.

Adding photos of your business is a great way to let your customers get a “behind-the-scenes” look at what your company is all about… AND it can go a long way in promoting your business.

People don’t want to see stock images but the real face of your business – who you are, what you do and where you’re located.

The most important image in your GMB listing that gets the most exposure and has the most impact, is your ‘Profile Picture’.

However, the cover image is also of paramount importance, as it shows up front and center on your listing. You can also add other pictures based on the business you operate in; this might include pictures of interior and exterior of the business, goods and/or services your business, your staff or employees or any other picture that can summarize or describe your business.

8) Google My Business Videos

You can also add videos. Videos must be:

30 seconds or shorter

100 MB or smaller

720p resolution or higher

Unlike images, videos are not a ‘must have’. However, adding one will make you stand out among other businesses.

Creating a video will not take you any extra equipment or any video editing software. Just pick up your smartphone; take, save and share the video. This video must be taken at your location. Any commercials or advertising videos will be removed.

9) Add Posts To Share Business Updates

Google launched its ‘POST’ feature on all businesses in 2017. With this feature, you can post updates and offers to your listing. You can advertise the latest offers, share updates about new products/services or any special event for free.

Google Posts allows you to add text, photos, gifs, and even call-to-action buttons like ‘Buy’, ‘Sign Up’, ‘Learn More’, ‘Get Offer, ‘Reserve’, etc.

You can create posts only after you’ve verified your Google My Business Account.

However, Google My Business Posts disappear after seven days unless you set a shorter time frame. So, be time specific while crafting the post.

Conclusion:

Google My Business presents your business information to potential prospects. It gives you an opportunity to interact with your customers.

Not optimizing your Google My Business listing is like not opening door to a customer knocking at your door.

It’s an opportunity!

Local SEO takes time but can give you a big payoff. On the top of everything, it’s FREE!

If you need any help with your Local SEO or wish to optimize your Google My Business Listing, you can contact us.

 

Article Source: https://EzineArticles.com/expert/Gautam_Sharma/2579225

 

 

Business Development, Business Strategy

Importance of Family Business Management

Ready to be at the wheel?

March 10 and 11, 2018 gave aspiring and budding entrepreneurs an opportunity to connect and collaborate. As the best and brightest minds came together and brainstormed on on how to fuel their business growth. It is the most important aspect in any of the business. The conference at IIT Mumbai brought together the best breed of entrepreneurs, innovators, venture capitalists, business model creators, consultants, policy-makers, academicians, and business practitioners to present and discuss innovation and success under the aegis of entrepreneurship for Small and Medium Businesses.

Over the past decade or so, in the dilemma between joining family owned businesses and higher studies. The scales have been tipping towards entrepreneurship and joining family owned businesses.

Let us explore the genesis and the reason why:

The Genesis

Today, family-owned businesses account for two-thirds of the world’s businesses and generate most of the world’s economic output, employment and wealth. In many regions of the world, family companies dominate the economy. “Family-controlled firms now make up 19% of the companies in the Fortune Global 500,” states The Economist. In India alone, 67% businesses are family run. McKinsey forecasts, that by 2025,there will be more than 15,000 companies worldwide with at least $1 billion in annual revenues, of which 37% will be emerging-market family firms.

The need

There is a need for Family Business Management Programs whether you are in a successful family business or you are into a business facing challenges and trying to bring about a changeover.

Successful family business:

Successful family businesses are successful because families see important changes in their industry. Simply put, successful families are entrepreneurial. Also,families succeed because they invest in productive activities, emphasise growing assets, and consume relatively little of their wealth. These families maintain a culture that encourages family members to create things of lasting value. It’s not surprising that these families encourage entrepreneurs. Furthermore,successful families remain reasonably united, keeping supportive members loyal to one another and to the family’s mission. Over generations, as families become more diverse, it is likely that only a few relatives per generation will directly work in the business.

Outside-the-business members might still support family philanthropic efforts or social activities, and sometimes that level of involvement is enough to maintain family unity. But investing in family entrepreneurs can also keep talented members contributing to the broader family’s wealth and mission. Investing in family entrepreneurs has to be done objectively based on the feasibility of their business plans, and also fairly within the family. Even if some entrepreneurial projects don’t succeed, these investments will help you spot talent to keep your business growing. And you are sending an important message: this family is committed to creating value.

Family businesses – facing challenges

While family businesses on average are stronger performers than other types of enterprise, they face distinct challenges that need to be managed. This constraint often kills the family business.

This creates the need for a course of study in Family Business Management that helps students understand how to capitalize on the strengths, navigate the challenges, and guard against the weaknesses of the companies and the families that own them.

How is Family Business Management program different from an MBA in Entrepreneurship?

Both Family Business Management and an MBA in Entrepreneurship prepare you for setting up and gearing your own business. However, there is a subtle difference. Unlike MBA in Entrepreneurship which prepares students for a setting up a business, the Family Business Management programme is targeted at family business owners looking to sustain, scale and grow their businesses. The content and pedagogy includes concepts of entrepreneurship, business sustainability, market trends which thereby lead to portfolio expansion and business growth. The program would help you evaluate the state of your family businesses and gear you towards accelerating your business to the next level.

Colleges/Institutes for Entrepreneurial Management

Xavier School of Management (XLRI),Jamshedpur, offering a full-time six-month Post Graduate Programme for Certificate in Entrepreneurship Management (PGPCEM).

Entrepreneurship Development Institute of India, Gandhinagar,offering a two-year, full-time, residential Post Graduate Diploma in Management-Business Entrepreneurship (PGDM-BE).

SP Jain Institute of Management and Research – Mumbai,Start Your Business Certification Program (SYB), Grow Your Business Certification Program (GYB), The Entrepreneurial Manager (TEM).

Narsee Monjee Institute of Management Studies,Mumbai,M.B.A in Social Entrepreneurship

Xavier Institute of Management and Entrepreneurship – Bangalore, offering one year Entrepreneurial Development Programme (EDP)

Nirma Institute of Management,Ahmedabad,offering regular two-year MBA specialising in Family Business & Entrepreneurship.

Amity Business School,Noida, offering two year M.B.A in Entrepreneurship

IIM, Bangalore, specialization in Entrepreneurs & Family Businesses.

IIM Udaipur, Management Development Program for Women Entrepreneurs.

National Institute for Entrepreneurship & Small Business Development (NIESBUD), Delhi

The NIESBUD is an apex institute in the area of entrepreneurship and small business development under the Ministry of Micro, Small and Medium Enterprises, Government of India. It oversees the activities of various institutions and agencies engaged in entrepreneurship development, particularly in the area of small industry and small business. It also provides numerous training and development courses for budding entrepreneurs and small businesses.

Making the right choice:

In the world of family business, the entrepreneurs we celebrate are usually founders of companies. If you wish to be a founder of a company, start your new venture and learn how to navigate, go in for a pure MBA in Entrepreneurship. However, if you wish to join your family business and are supposed to take care of and grow the founder’s creation, you are not expected to be entrepreneurs but to understand and carry forward the vision of the founder,an MBA in Entrepreneurship would be more helpful.

Therefore, it is imperative that you make the right and informed choice…

Are these mutually exclusive?

If this makes you think that family business management programs are incompatible to entrepreneurship. The reason is because they are for students who are in family businesses that are usually tradition-bound, multi- generational. Let me tell you, we need to blur the lines here. The family businesses need to be more entrepreneurial. They need to pass on the entrepreneurial mindset and capabilities. To create new streams of wealth across many generations- not just pass the business on from one generation to the next. We need to come up with the concept of ‘family entrepreneurship’. When a leadership transition occurs in a family business, the new generation of leadership should be careful to maintain and build on the networks and knowledge of the former leaders, while expanding their own networks. This will insure that the business can continue to be entrepreneurial into the future.

And when they do, the distinction between Entrepreneurship and Family Business Management studies would begin to blur…

Based in Ludhiana, Gauri is a motivational speaker, career consultant, philanthropist, blogger and catalyst. She has made a mark for herself in the arena of Education and Careers. With over 15 years of experience in education and counseling over more than 1500 students and 35 schools and colleges, she has appeared on over 60 Radio and TV channels including AIR, FM Gold and ZEE. She is a columnist in leading national newspapers like The Hindustan Times, The Tribune and Daily Excelsior. For info visit: http://gaurichhabra.com/

 

Article Source: https://EzineArticles.com/expert/Gauri_Nagpal_Chhabra/2567734

 

 

 

 

Business Development, Business Strategy

All the Ws of a Business Plan

A business plan is a written description of the future of your business and more importantly, how you are going to get there. It is a document that explains what you are going to do to make your company profitable and how you are going to achieve this. It defines both your business model and your strategies to make this business model work and more importantly profitable.

Normally when a business idea arises, you know what resources and capabilities you have at the start of your business and where you want to go in a certain period, usually in 3 or 5 years. But what is the way to reach that goal? Where to start? How to arouse investor interest? Even, how to get your business off the ground? Everything seems so easy when you have the great money winning idea and concept. It is how you are going to achieve these dreams and get enough money to keep the business going for many years to come.

Writing a business plan is to build a map that will guide you to where you start making money with your initial business idea. At is very basic structure, your business plan is a mixture of strategies and plans. It involves financials, marketing, staffing and products. Think of it as the foundation to your new business.

WHAT are the reasons that I might need one?

• To look for investors.

• To apply for a loan.

• To establish the viability of your business idea.

• To make improvements to your current business.

• To expand your current business.

All of these types have different emphasises and a different structure.

WHAT is a business plan?

It is a tool or document that describes a business opportunity or idea, the work team, the operational and marketing execution strategies, the business risks and the economic viability of your business. A well written document guides you to turn an idea into a viable business.

It can also be defined in another context in that the business plan becomes a fundamental tool within the analysis of a new business opportunity, a diversification plan, an internationalisation project, the acquisition of a company or an external business unit, or even the launch of a new product or service within the current business.

To summarise, both for the development or launch of a startup and for the analysis of new business investments, the business plan becomes an indispensable tool. So even though you have an established business, you will still need a business plan as you expand and improve that business.

A business plan is never finished and should be reviewed from time to time at least annually but certainly when large changes to an existing company are anticipated. This implies that every plan must adapt effectively and efficiently to the changes, helping the project to continue.

WHAT is the point of a business plan?

Many entrepreneurs think they only need a business plan when they are seeking investment or when the bank asks for one. However the act of business planning, when completed correctly, enables the entrepreneur to carry out an extensive market study that will provide the information required to design the best possible business model that will be both profitable and efficient.

Additionally, the business plan will develop the strategic measures for all functional areas that will enable them achieve the objectives for the new business.

Once written, the business plan will serve as an internal tool to assess the management of the company and its deviations from the planned scenario. Proposing, if necessary, adaptations to the agreed business model in order to obtain updated information for the daily management of the company. This will include preparation of the required changes and processes to bring the business back on track.

So lets dive into the concepts behind business planning a bit more.

The WHY of The Business Plan

• Why do you want your business plan?

• Why are you writing the plan now?

 

The WHAT of the Business Plan

• What is the purpose of developing a specific plan?

• In what period do you consider it possible to carry out your projects?

• What is your business model?

• What is your Value Proposition?

• What are your products or services to be offered?

• What positioning do you plan to develop to compete?

• What are your measurements of success?

• What markets do you plan to penetrate?

• What market percentage do you estimate to obtain?

• What margins do you consider possible?

• What income do you consider you will receive?

• What are the costs of expansion?

• What are the costs of obtaining new customers?

• What do you want to do with your business?

• What strategies do you want to undertake – financial, marketing and planning

 

The WHERE of the Business Activity

• Where will your products be sold from? Shop, office, website, social media, road side, party planning,

• Where are you based? Locally, centrally, virtually etc.

• Where are your products produced?

• Where are your distribution channels?

• Where are they going to be sold?

• Where is your market?

• Where will your staff need to be based?

 

The WHEN of your business planning activities

• When will you need to start your new activities?

• When will they end?

• When will your investor need to invest?

• When will your investor get their money back?

• When will you have enough staff to carry out your new changes?

• When will your products and services be available?

• When will your products need to be updated and/or improved?

• When is the best time to attract new customers?

 

WHO do you present your plan to?

• Bank for loan purposes and they will take a charge over a property usually.

• Investor to join your company as a shareholder.

• Angle Investor to join as a shareholder but also be involved in the running of your company.

• Management team so they know what is expected of them.

• Suppliers who will be offering credit.

• Director level hires so that they are encouraged to join your company.

• Believe it or not the entrepreneur should also refer back on a regular basis.

 

As you can see there are a lot of Ws involved with a business plan – the biggest W is why should you write a business plan and the answer is – because it is such a great business tool.

 

Writing a winning business plan is a complicated procedure and best accomplished with an experienced business consultant. BizGuru.us can assist you with consultancy, strategies, business model canvas production and pitch decks.

Article Source: https://EzineArticles.com/expert/Lee_Lister/15449