Start of the New Beginning
Definitions of a Entrepreneur
Entrepreneur typology
Defining your personality
How people can fit into groups/working environments
How to manage the business
Evaluation of the businesses idea
Skills behind starting a business
The risks of starting a new business
Types of Business Ventures
Types of managers
Skills of a successful manager: select, direct, evaluate, reward
Research Methods
Market Research methods and analysing results
Market Entry and Location
Competition
Ways of Evaluating the Companies Environment
Financing your Business Dreams
Raising Finance
Sources of finance
Guide to raising money
Business Plan
A successful business plan
What can a business plan provide
Banking and Financial Tables
Break-even point and Cash Flow
Balance Sheet
Credit Reports
Advertising for your small business
After-marketing: how to keep customers
Development and Growth
Small business success
Getting through the first year
What can you get out of your business: saving, expansion and exit strategies
N.L.P. and the new business venturer
Thursday, 22 February 2007
Start of the New Beginning
Before you start to own your own business and become a successful entrepreneur there are certain qualities and characteristics you will have to understand and develop. Below there are helpful definitions, hints, websites and references which will help you to get underway.
A great place to start is with a simple explanation of what an entrepreneur is.
Definitions of an Entrepreneur: -“A person starting a new company who takes on the risks associated with starting the enterprise, which may require venture capital to cover start-up costs.”
For further information about what an entrepreneur is, please click on the following web-sites; by looking through these helpful sites you as the reader will have a clearer definition.
Information about Entrepreneurs: -
http://www.advfn.com/money-words_term_1715_entrepreneur.html
http://searchcio.techtarget.com/sDefinition/0,290660,sid19_gci532613,00.html
http://www.moneychapter.com/Articles/Entrepreneur_Defined.php
http://www.gaebler.com/becoming-an-entrepreneur.htm
Personality Traits of an Entrepreneur: -The next step of the journey is to get an understanding of the characteristics of an entrepreneur. Personality matters in becoming a successful entrepreneur. Recent studies show that successful entrepreneurs share a number of common personality traits. John G. Burch (Business Horizons, September 1986) lists traits which are typical of entrepreneurs: -
· A desire to achieve: -
· Hard work: -
· Desire to work for themselves: -
· Nurturing quality: -
· Acceptance of responsibility: -
· Reward orientation: -
· Optimism: -
· Orientation to excellence: - Organisation: -
· Profit orientation: -
Below are further helpful web-sites which will show you more information about entrepreneur characteristics; again from reading further you will gain a better insight into the personality traits and hopefully learn something new about yourself.
Information about Entrepreneur Traits: -
http://www.stanford.edu/class/e145/materials/Characteristics.html
http://www.open2.net/money/entrepreneur.html
http://www.moneychapter.com/Articles/A_Guide_To_Traits_of_a_Successful_Entrepreneur.php
http://www.rbs.co.uk/Small_Business/Practical_Guidance/Are_you_an_Entrepreneur/default.htm
Types of Entrepreneurs: -Further information that you will need to know is the different types of entrepreneurs in order to establish which type you are.
Existing Market’ Entrants: -
Furious customer.
Optimistic outsider.
Arbitrageurs.
Inventors: -
Serial Entrepreneurs: -
Academics: -
Insider innovators: -
Roving revolutionaries: -
Intrapreneurs: -
Social Entrepreneurs: -
Raptors: -
Information about Entrepreneur Types: -Go further by reading through the helpful web-sites!
http://www.ecademy.com/node.php?id=5774
http://www.usatoday.com/money/smallbusiness/strategies/2002/02-01-types.htm
http://www.ex-designz.net/article_read.asp?id=1326
http://sbinformation.about.com/cs/development/a/personality_2.htm
http://www.rbs.co.uk/Small_Business/Practical_Guidance/Are_you_an_Entrepreneur/default.htm
Strengths: -
Weaknesses: -
Communication
Market aware
Contacts
Finance
Computers
People management
Opportunities: -
Threats: -
Going a course to help with finance
Lack of experience
Defining Your Personality: -Moving on from what type of entrepreneur you are and will become, you will have to look inside yourself and understand how you as a person will fit into the world of business and what role you will establish.
The Big Five factors (Goldberg, 1993) and their constituent traits can be summarised as follows.
· Openness to Experience: -
· Conscientiousness: -
· Extraversion: -
· Agreeableness: -
· Neuroticism: -
Information about Personalities: -
http://www.uta.edu/faculty/sandieidziak/2304%20Group%20Roles.htm
http://www.personalitytest.net/types/descriptions/index.htm
http://www.scrapbookmemoriestv.com/personalitytests.htm
http://www.quintcareers.com/SWOT_Analysis.html
You, like other entrepreneurs will not possess all the skills and attributes to be able to run the business on your own. The key is to identify your strengths and weaknesses as a manager, which will enable you to see what good traits you have and areas that you need to develop. A great and easy way to do this; is by carrying out a SWOT analysis (Hansen, 2006).
Now that you have looked through the helpful web-sites, taken a personality test and looked at your skills and attributes, you are ready to find out how you fit into a group environment.
How People can fit into Groups/Working Environments: -To find out how you fit into a group or working environment it is important to understand and learn what type of role you would take. Below is some helpful information about roles and responsibilities.
Role
Responsibility
Discussion Leader
Keeps group on-track
Recorder and Keep Records
Records assignments, strategies, unresolved issues and data
Reporter
Makes sure all agree on plan, action and report
Accuracy Coach
Probes for group understanding
Sceptic
Challenges group consensus
Timekeeper
Checks for timing of discussion of the problem
Reflector and Summariser
Summarises progress of the group
Information about Groups and Group Roles: -These sites below will provide further information about how you can fit into a group.
http://www.abacon.com/commstudies/groups/roles.html
http://www.wcer.wisc.edu/archive/cl1/CL/doingcl/grproles.htm
http://www.geocities.com/Athens/Forum/1650/htmlgroups07.html
A great place to start is with a simple explanation of what an entrepreneur is.
Definitions of an Entrepreneur: -“A person starting a new company who takes on the risks associated with starting the enterprise, which may require venture capital to cover start-up costs.”
For further information about what an entrepreneur is, please click on the following web-sites; by looking through these helpful sites you as the reader will have a clearer definition.
Information about Entrepreneurs: -
http://www.advfn.com/money-words_term_1715_entrepreneur.html
http://searchcio.techtarget.com/sDefinition/0,290660,sid19_gci532613,00.html
http://www.moneychapter.com/Articles/Entrepreneur_Defined.php
http://www.gaebler.com/becoming-an-entrepreneur.htm
Personality Traits of an Entrepreneur: -The next step of the journey is to get an understanding of the characteristics of an entrepreneur. Personality matters in becoming a successful entrepreneur. Recent studies show that successful entrepreneurs share a number of common personality traits. John G. Burch (Business Horizons, September 1986) lists traits which are typical of entrepreneurs: -
· A desire to achieve: -
· Hard work: -
· Desire to work for themselves: -
· Nurturing quality: -
· Acceptance of responsibility: -
· Reward orientation: -
· Optimism: -
· Orientation to excellence: - Organisation: -
· Profit orientation: -
Below are further helpful web-sites which will show you more information about entrepreneur characteristics; again from reading further you will gain a better insight into the personality traits and hopefully learn something new about yourself.
Information about Entrepreneur Traits: -
http://www.stanford.edu/class/e145/materials/Characteristics.html
http://www.open2.net/money/entrepreneur.html
http://www.moneychapter.com/Articles/A_Guide_To_Traits_of_a_Successful_Entrepreneur.php
http://www.rbs.co.uk/Small_Business/Practical_Guidance/Are_you_an_Entrepreneur/default.htm
Types of Entrepreneurs: -Further information that you will need to know is the different types of entrepreneurs in order to establish which type you are.
Existing Market’ Entrants: -
Furious customer.
Optimistic outsider.
Arbitrageurs.
Inventors: -
Serial Entrepreneurs: -
Academics: -
Insider innovators: -
Roving revolutionaries: -
Intrapreneurs: -
Social Entrepreneurs: -
Raptors: -
Information about Entrepreneur Types: -Go further by reading through the helpful web-sites!
http://www.ecademy.com/node.php?id=5774
http://www.usatoday.com/money/smallbusiness/strategies/2002/02-01-types.htm
http://www.ex-designz.net/article_read.asp?id=1326
http://sbinformation.about.com/cs/development/a/personality_2.htm
http://www.rbs.co.uk/Small_Business/Practical_Guidance/Are_you_an_Entrepreneur/default.htm
Strengths: -
Weaknesses: -
Communication
Market aware
Contacts
Finance
Computers
People management
Opportunities: -
Threats: -
Going a course to help with finance
Lack of experience
Defining Your Personality: -Moving on from what type of entrepreneur you are and will become, you will have to look inside yourself and understand how you as a person will fit into the world of business and what role you will establish.
The Big Five factors (Goldberg, 1993) and their constituent traits can be summarised as follows.
· Openness to Experience: -
· Conscientiousness: -
· Extraversion: -
· Agreeableness: -
· Neuroticism: -
Information about Personalities: -
http://www.uta.edu/faculty/sandieidziak/2304%20Group%20Roles.htm
http://www.personalitytest.net/types/descriptions/index.htm
http://www.scrapbookmemoriestv.com/personalitytests.htm
http://www.quintcareers.com/SWOT_Analysis.html
You, like other entrepreneurs will not possess all the skills and attributes to be able to run the business on your own. The key is to identify your strengths and weaknesses as a manager, which will enable you to see what good traits you have and areas that you need to develop. A great and easy way to do this; is by carrying out a SWOT analysis (Hansen, 2006).
Now that you have looked through the helpful web-sites, taken a personality test and looked at your skills and attributes, you are ready to find out how you fit into a group environment.
How People can fit into Groups/Working Environments: -To find out how you fit into a group or working environment it is important to understand and learn what type of role you would take. Below is some helpful information about roles and responsibilities.
Role
Responsibility
Discussion Leader
Keeps group on-track
Recorder and Keep Records
Records assignments, strategies, unresolved issues and data
Reporter
Makes sure all agree on plan, action and report
Accuracy Coach
Probes for group understanding
Sceptic
Challenges group consensus
Timekeeper
Checks for timing of discussion of the problem
Reflector and Summariser
Summarises progress of the group
Information about Groups and Group Roles: -These sites below will provide further information about how you can fit into a group.
http://www.abacon.com/commstudies/groups/roles.html
http://www.wcer.wisc.edu/archive/cl1/CL/doingcl/grproles.htm
http://www.geocities.com/Athens/Forum/1650/htmlgroups07.html
How to manage the business
Evaluating Business Ideas: -
It is often very difficult to figure out how to research your idea; especially if you have never actually been in business for yourself. Ask yourself some difficult questions and be honest, but do not just go on your instincts. It is very important that you carry out research to be sure there is a market out there for what you have to offer.
The best place to start is to decide if your idea has profit potential.
This can be established by following the sixteen step guide below: -
List and describe features and benefits of your product or service.
Define the main geographic area you intend to sell to during your first year.
Find out what competitors are selling to the same geographic area.
Establish why your consumers are buying from you instead of your competitors.
Find out what is unique about what you are offering to the consumer.
List and briefly describe trends within your new market or industry.
Define the growth of the market.
Discover what price your competitors charge for their product or service.
Research ways of letting your consumer know about your business.
List any government or local authority approvals necessary to launch your idea.
Briefly describe your manufacturing or purchasing process.
Briefly describe your fulfilment process.
Make a list of your potential suppliers.
Make a list of your resources you will require to start your business.
Determine what resources you will finance, lease or rent.
List your financial strengths and weaknesses.
The answers will assist you in developing your business plan. It is important that you make sure that you have convinced yourself. After all, if you do not believe 100% in your plan, how can you expect others to?
Information about Evaluating Business Ideas: -
http://www.fastlinksolutions.co.uk/evaluati.htm
http://smallbusiness.yahoo.com/r-article-a-41090-m-1-sc-12-evaluating_your_business_idea_faq-i
Setting up the business: -Every year, thousands of people decide to set up their own business. Here are some of the practical points which require consideration before trading begins: -
Selecting a legal entity: -
Sole-Trader: -
Partnership: -
Limited Company: -
Limited Liability Partnerships: -
Registering with the Tax Authorities: -
Inland Revenue: -
H M Customs and Excise: -
Payroll Taxes: -
Financing For Your Business: -
Insurance: -
Accounting and Bookkeeping: -
Information about Starting a Business: -To go further into the steps of starting a new business, then follow the web-sites below.
http://www.o-reilly.co.uk/startup.htm
http://www.canadaone.com/ezine/oct03/checklist.html
The risks of starting a new business: -For those considering starting a new company, the statistics can be frightening; some measurements suggest that only about 2 in 10 new companies are still in business after one year.
Why are the risks so high? For most of the businesses that were unsuccessful it is not due to their idea. Experience has shown that most new companies experience difficulties because they lack experience in running the whole company.
Below is a brief summary of the most common reasons why new businesses fail. Although there are always exceptions, most struggles fall into one of these categories. Also listed in each case is the solution that could have saved these businesses.
Reason for Failure
Way of saving the Business
Lack of strong, experienced leadership, vision and mission
Establish leadership development
Mentoring
Limited knowledge and experience in running all the various aspects of a company
Administrative services provides experience of staff, advisors and mentors
Failure to plan properly
Systemised objectives for product approval process
Failure to execute properly
Systemised reporting schedule
Failure of individuals to perform
Stick to the plan when appropriate, make changes quickly when necessary and the wisdom to know the difference
Abusing control –
unwillingness to share the wealth, being unreasonable with customers & partners, etc.
Experience and involvement of staff and advisors
Information about risks: -To get a detailed explanation of risks with starting a new business, please visit the following link.
http://wps.prenhall.com/bp_bovee_eib_3/0,11464,2795374--2795377,00.html
Types of Managers styles: -There are three overall types of management styles: -
Description
Advantages
Disadvantages
Autocratic
Senior managers take all the important decisions with no involvement from other workers
Effective when employing many low skilled workers
No two-way communication so can be de-motivating
Paternalistic
Managers make decisions in best interests of workers after consultation
More two-way communication so motivating
Still quite a dictatorial or autocratic style of management
Democratic
Workers allowed to make own decisions
Authority is delegated to workers which is motivating
Mistakes or errors can be made if workers are not skilled or experienced enough
Information about management styles: -To get a detailed explanation of management types, please visit the following link.
http://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles.htm
http://www.managementfirst.com/management_styles/index.htm
http://www.tutor2u.net/business/gcse/people_management_styles.htm
Skills of a Successful Manager: -As management trends and fads swirl around us, it is easy to lose sight of the basics. What makes a good leader or manager? For many it is someone who can inspire and get the most from their staff. In fact, a manager’s responsibilities always boil down to seven important elements: -
1. Good organisation and planning skills.
2. Highly skilled in dealing with money.
3. Good at selling ideas and products.
4. The ability to manage all or part of a small business.
5. Good at working, mediating or arbitrating between people with opposing views.
6. The ability to weigh up and take risks.
7. Leadership and the ability to work alone.
If you can get these not-so-easy pieces right then management success is virtually guaranteed.
Information about management skills: -This helpful web-site goes further in defining the skills needed by the managers of the business.
http://www.zeromillion.com/business/starting/entrepreneur.html
http://www.entrepreneur.com/management/leadership/learningtolead/article66046.html
It is often very difficult to figure out how to research your idea; especially if you have never actually been in business for yourself. Ask yourself some difficult questions and be honest, but do not just go on your instincts. It is very important that you carry out research to be sure there is a market out there for what you have to offer.
The best place to start is to decide if your idea has profit potential.
This can be established by following the sixteen step guide below: -
List and describe features and benefits of your product or service.
Define the main geographic area you intend to sell to during your first year.
Find out what competitors are selling to the same geographic area.
Establish why your consumers are buying from you instead of your competitors.
Find out what is unique about what you are offering to the consumer.
List and briefly describe trends within your new market or industry.
Define the growth of the market.
Discover what price your competitors charge for their product or service.
Research ways of letting your consumer know about your business.
List any government or local authority approvals necessary to launch your idea.
Briefly describe your manufacturing or purchasing process.
Briefly describe your fulfilment process.
Make a list of your potential suppliers.
Make a list of your resources you will require to start your business.
Determine what resources you will finance, lease or rent.
List your financial strengths and weaknesses.
The answers will assist you in developing your business plan. It is important that you make sure that you have convinced yourself. After all, if you do not believe 100% in your plan, how can you expect others to?
Information about Evaluating Business Ideas: -
http://www.fastlinksolutions.co.uk/evaluati.htm
http://smallbusiness.yahoo.com/r-article-a-41090-m-1-sc-12-evaluating_your_business_idea_faq-i
Setting up the business: -Every year, thousands of people decide to set up their own business. Here are some of the practical points which require consideration before trading begins: -
Selecting a legal entity: -
Sole-Trader: -
Partnership: -
Limited Company: -
Limited Liability Partnerships: -
Registering with the Tax Authorities: -
Inland Revenue: -
H M Customs and Excise: -
Payroll Taxes: -
Financing For Your Business: -
Insurance: -
Accounting and Bookkeeping: -
Information about Starting a Business: -To go further into the steps of starting a new business, then follow the web-sites below.
http://www.o-reilly.co.uk/startup.htm
http://www.canadaone.com/ezine/oct03/checklist.html
The risks of starting a new business: -For those considering starting a new company, the statistics can be frightening; some measurements suggest that only about 2 in 10 new companies are still in business after one year.
Why are the risks so high? For most of the businesses that were unsuccessful it is not due to their idea. Experience has shown that most new companies experience difficulties because they lack experience in running the whole company.
Below is a brief summary of the most common reasons why new businesses fail. Although there are always exceptions, most struggles fall into one of these categories. Also listed in each case is the solution that could have saved these businesses.
Reason for Failure
Way of saving the Business
Lack of strong, experienced leadership, vision and mission
Establish leadership development
Mentoring
Limited knowledge and experience in running all the various aspects of a company
Administrative services provides experience of staff, advisors and mentors
Failure to plan properly
Systemised objectives for product approval process
Failure to execute properly
Systemised reporting schedule
Failure of individuals to perform
Stick to the plan when appropriate, make changes quickly when necessary and the wisdom to know the difference
Abusing control –
unwillingness to share the wealth, being unreasonable with customers & partners, etc.
Experience and involvement of staff and advisors
Information about risks: -To get a detailed explanation of risks with starting a new business, please visit the following link.
http://wps.prenhall.com/bp_bovee_eib_3/0,11464,2795374--2795377,00.html
Types of Managers styles: -There are three overall types of management styles: -
Description
Advantages
Disadvantages
Autocratic
Senior managers take all the important decisions with no involvement from other workers
Effective when employing many low skilled workers
No two-way communication so can be de-motivating
Paternalistic
Managers make decisions in best interests of workers after consultation
More two-way communication so motivating
Still quite a dictatorial or autocratic style of management
Democratic
Workers allowed to make own decisions
Authority is delegated to workers which is motivating
Mistakes or errors can be made if workers are not skilled or experienced enough
Information about management styles: -To get a detailed explanation of management types, please visit the following link.
http://www.rpi.edu/dept/advising/free_enterprise/business_structures/management_styles.htm
http://www.managementfirst.com/management_styles/index.htm
http://www.tutor2u.net/business/gcse/people_management_styles.htm
Skills of a Successful Manager: -As management trends and fads swirl around us, it is easy to lose sight of the basics. What makes a good leader or manager? For many it is someone who can inspire and get the most from their staff. In fact, a manager’s responsibilities always boil down to seven important elements: -
1. Good organisation and planning skills.
2. Highly skilled in dealing with money.
3. Good at selling ideas and products.
4. The ability to manage all or part of a small business.
5. Good at working, mediating or arbitrating between people with opposing views.
6. The ability to weigh up and take risks.
7. Leadership and the ability to work alone.
If you can get these not-so-easy pieces right then management success is virtually guaranteed.
Information about management skills: -This helpful web-site goes further in defining the skills needed by the managers of the business.
http://www.zeromillion.com/business/starting/entrepreneur.html
http://www.entrepreneur.com/management/leadership/learningtolead/article66046.html
Research Methods
Market Research methods: -
Market research is broad in scope and examines all aspects of a business environment.
There are two forms of marketing research: -
Primary: -Information that has been collected through surveys, interviews, questionnaires, etc.
Secondary: -Information that has been collected previously, such as literature, internet publications and e-journals.
Types of marketing research: -
Test Marketing: -A small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market
Demand Estimation: -To determine the approximate level of demand for the product.
Commercial Eye Tracking Research: -Examine advertisements, package designs, websites, etc by analysing visual behavior of the consumer.
Customer Satisfaction Studies: -Exit interviews or surveys that determine a customer’s level of satisfaction with the quality of the transaction.
Price Elasticity Testing: -To determine how sensitive customers are to price changes
Segmentation Research: -To determine the demographic, psychographic and behavioural characteristics of potential buyers.
Consumer Decision Process Research: -To determine what motivates people to buy and what decision-making process they use.
Positioning Research: -How does the target market see the brand relative to competitors? - What does the brand stand for?
Brand Name Testing: -What do consumers feel about the names of the products?
Brand Equity Research: -How favorably do consumers view the brand?
Advertising and Promotion Research: -How effective are ads - do potential customers recall the ad, understand the message and does the ad influence consumer purchasing behaviour?
Market research will answer questions like: -Building models and measuring results to determine the effectiveness of individual marketing activities.
· Whether your products are needed: -
· Who might want to buy your products: -
· If there are changes taking place and how this might affect what you sell: -
· How well your products might sell: -
· How much demand there is for what you hope to sell: -
· Who won’t buy what you hope to sell: -
· What price would people be prepared to pay: -
Information about the market research process: -Web-sites that will help you move forward in the process of conducting market research.
http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=14&Itemid=38
http://www.dobney.com/Research/market_metrics.htm
http://www.dobney.com/market_research.htm
http://www.learndirect-advice.co.uk/helpwithyourcareer/jobprofiles/profiles/profile249/
Analysing Results: -
Ensure the methods are appropriate to the type of data and the research aims.
Analysing information accurately according to the appropriate methodology.
Interpreting and synthesising the results correctly and drawing justifiable conclusions.
Identifying any unexpected results and reviewing reasons for them with relevant people.
Recording the results accurately and clearly in any appropriate format.
Business Location: -In choosing a business location therefore firms need to weigh up the following range of push and pull factors.
1. Closeness to market: -
2. Communications links: -
3. Closeness to raw materials: -
4. Availability of appropriately skilled employees: -
5. Opportunity for waste disposal: -
6. Availability of power supplies: -
7. Availability of land: -
8. Government incentives: -
Information about Business Location: -Below is a helpful web-site that provides you with full information and explanations of what aspects need to be considered forever choosing your right business location.
· http://www.thetimes100.co.uk/theory/theory.php?tID=249
· http://www.bized.co.uk/educators/16-19/business/strategy/activity/location.htm
Competition: -
No business operates in isolation; whatever they are producing, there will be other businesses and organisations that would be looking to provide similar products or services.
You will need to keep an eye on their competitors by looking at the following areas: -
Who is the competition? Which other firms supply the same or similar goods?
Where is the competition based? This will focus on whether the competition is local, regional, national, European or international.
What does the competition look like? This will include looking at market share, how many other competitors there are what the competition has been in the past and what it might be in the future.
What is the business's market position? This will involve looking at the products the firm sells, customer service, branding, reputation and image and what the strengths and weaknesses of the business might be.
How will the business react to its competition? This looks at strategies the business might adopt to respond to competition.
Information about establishing your competition: -The web-site below will provide you with a full and comprehensive guide to how you as a new entrepreneur can establish your competitor.
http://www.bized.co.uk/educators/level2/competition/lesson/knowing.htm
http://www.nlp-pro.com/nicole-on-competition.htm
http://www.startups.co.uk/Understand_your_Competition.YewLonVozQSQAQ.html
Ways of Evaluating the Companies Environment: -
The environmental analysis is an important step for every new entrepreneur who wants to have a deeper understanding of the business environment that you are operating in, you would have to do some external environment analysis.
The Methods of Environmental Analysis: -
PESTLE Analysis: -
· Political: -The current and potential influences from political pressures.
· Economic: -The local, national and world economy impact.
· Sociological: -The ways in which changes in society affect the organisation.
· Technological: -The effect of new and emerging technology.
· Legal: -The effect of national and world legislation.
· Environmental: -The local, national and world environmental issues.
Porter’s Five Forces: -
SWOT Analysis: -SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats. (Albert Humphrey-Stanford University.)
These elements can be utilised in starting a new business venture requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal and external to the organisation.
Internal analysis
Strengths
Weaknesses
ExternalAnalyssis
Opportunities
S-O-Strategies: -Develop new methods which are suitable to the company's strength.
W-O-Strategies: -Eliminate weaknesses to enable new opportunities.
Threats
S-T-Strategies: -Use strength to defend threats.
W-T-Strategies: -Develop strategies to avoid weaknesses that could be targeted by threats.
These analysing models cover all the important and key environmental factors which could seriously affect your business.
Information about Environmental Analysis: -
http://www.321books.co.uk/catalog/tesco/pestle-analysis.htm
http://www.themanager.org/Models/PEST_Analysis.htm
http://www.tutor2u.net/business/strategy/porter_five_forces.htm
http://www.themanager.org/Models/p5f.htm
http://www.12manage.com/methods_porter_five_forces.html
http://www.mindtools.com/pages/article/newTMC_05.htm
http://www.mindtools.com/pages/article/newTMC_05.htm
http://www.tutor2u.net/business/strategy/SWOT_analysis.htm
Market research is broad in scope and examines all aspects of a business environment.
There are two forms of marketing research: -
Primary: -Information that has been collected through surveys, interviews, questionnaires, etc.
Secondary: -Information that has been collected previously, such as literature, internet publications and e-journals.
Types of marketing research: -
Test Marketing: -A small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market
Demand Estimation: -To determine the approximate level of demand for the product.
Commercial Eye Tracking Research: -Examine advertisements, package designs, websites, etc by analysing visual behavior of the consumer.
Customer Satisfaction Studies: -Exit interviews or surveys that determine a customer’s level of satisfaction with the quality of the transaction.
Price Elasticity Testing: -To determine how sensitive customers are to price changes
Segmentation Research: -To determine the demographic, psychographic and behavioural characteristics of potential buyers.
Consumer Decision Process Research: -To determine what motivates people to buy and what decision-making process they use.
Positioning Research: -How does the target market see the brand relative to competitors? - What does the brand stand for?
Brand Name Testing: -What do consumers feel about the names of the products?
Brand Equity Research: -How favorably do consumers view the brand?
Advertising and Promotion Research: -How effective are ads - do potential customers recall the ad, understand the message and does the ad influence consumer purchasing behaviour?
Market research will answer questions like: -Building models and measuring results to determine the effectiveness of individual marketing activities.
· Whether your products are needed: -
· Who might want to buy your products: -
· If there are changes taking place and how this might affect what you sell: -
· How well your products might sell: -
· How much demand there is for what you hope to sell: -
· Who won’t buy what you hope to sell: -
· What price would people be prepared to pay: -
Information about the market research process: -Web-sites that will help you move forward in the process of conducting market research.
http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=14&Itemid=38
http://www.dobney.com/Research/market_metrics.htm
http://www.dobney.com/market_research.htm
http://www.learndirect-advice.co.uk/helpwithyourcareer/jobprofiles/profiles/profile249/
Analysing Results: -
Ensure the methods are appropriate to the type of data and the research aims.
Analysing information accurately according to the appropriate methodology.
Interpreting and synthesising the results correctly and drawing justifiable conclusions.
Identifying any unexpected results and reviewing reasons for them with relevant people.
Recording the results accurately and clearly in any appropriate format.
Business Location: -In choosing a business location therefore firms need to weigh up the following range of push and pull factors.
1. Closeness to market: -
2. Communications links: -
3. Closeness to raw materials: -
4. Availability of appropriately skilled employees: -
5. Opportunity for waste disposal: -
6. Availability of power supplies: -
7. Availability of land: -
8. Government incentives: -
Information about Business Location: -Below is a helpful web-site that provides you with full information and explanations of what aspects need to be considered forever choosing your right business location.
· http://www.thetimes100.co.uk/theory/theory.php?tID=249
· http://www.bized.co.uk/educators/16-19/business/strategy/activity/location.htm
Competition: -
No business operates in isolation; whatever they are producing, there will be other businesses and organisations that would be looking to provide similar products or services.
You will need to keep an eye on their competitors by looking at the following areas: -
Who is the competition? Which other firms supply the same or similar goods?
Where is the competition based? This will focus on whether the competition is local, regional, national, European or international.
What does the competition look like? This will include looking at market share, how many other competitors there are what the competition has been in the past and what it might be in the future.
What is the business's market position? This will involve looking at the products the firm sells, customer service, branding, reputation and image and what the strengths and weaknesses of the business might be.
How will the business react to its competition? This looks at strategies the business might adopt to respond to competition.
Information about establishing your competition: -The web-site below will provide you with a full and comprehensive guide to how you as a new entrepreneur can establish your competitor.
http://www.bized.co.uk/educators/level2/competition/lesson/knowing.htm
http://www.nlp-pro.com/nicole-on-competition.htm
http://www.startups.co.uk/Understand_your_Competition.YewLonVozQSQAQ.html
Ways of Evaluating the Companies Environment: -
The environmental analysis is an important step for every new entrepreneur who wants to have a deeper understanding of the business environment that you are operating in, you would have to do some external environment analysis.
The Methods of Environmental Analysis: -
PESTLE Analysis: -
· Political: -The current and potential influences from political pressures.
· Economic: -The local, national and world economy impact.
· Sociological: -The ways in which changes in society affect the organisation.
· Technological: -The effect of new and emerging technology.
· Legal: -The effect of national and world legislation.
· Environmental: -The local, national and world environmental issues.
Porter’s Five Forces: -
SWOT Analysis: -SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats. (Albert Humphrey-Stanford University.)
These elements can be utilised in starting a new business venture requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal and external to the organisation.
Internal analysis
Strengths
Weaknesses
ExternalAnalyssis
Opportunities
S-O-Strategies: -Develop new methods which are suitable to the company's strength.
W-O-Strategies: -Eliminate weaknesses to enable new opportunities.
Threats
S-T-Strategies: -Use strength to defend threats.
W-T-Strategies: -Develop strategies to avoid weaknesses that could be targeted by threats.
These analysing models cover all the important and key environmental factors which could seriously affect your business.
Information about Environmental Analysis: -
http://www.321books.co.uk/catalog/tesco/pestle-analysis.htm
http://www.themanager.org/Models/PEST_Analysis.htm
http://www.tutor2u.net/business/strategy/porter_five_forces.htm
http://www.themanager.org/Models/p5f.htm
http://www.12manage.com/methods_porter_five_forces.html
http://www.mindtools.com/pages/article/newTMC_05.htm
http://www.mindtools.com/pages/article/newTMC_05.htm
http://www.tutor2u.net/business/strategy/SWOT_analysis.htm
Financing your Business Dreams
Raising Finance
For any new business the issue of where to find the money for a new venture should be at the forefront of any entrepreneur’s mind. Initial start-up costs, development expansion and furnishing costs are crucial for the success of the business. The capital is an important and essential part of establishing a new business, no matter how great your idea is.
The process of raising finance requires careful planning and good professional advice. It is important that a new entrepreneur understands the various sources of finance open to any new venture and knows which of these sources are appropriate in relation to the needs of the business. The most suitable form of funding for your business will depend on many factors such as the type of business you operate, its stage of development, your future plans and growth prospects.
Before you start this process you must have an adequate amount of capital to start with. So where can you get a loan from and what benefit you would get from this?
Common sources of finance: -
· Personal Sources: -such as personal savings, family support, borrow from friends/family
· Borrowing Money: -such as HSBC, Barclay’s, Lloyd’s TSB, etc
· Equity Finance: -such as mortgages and loans
· Grants: -From Central Government Grants to local Grants
It is important to do a comparative study of the costs of each possibility and also consider any tax implications before making a final decision about who to approach. Most lenders will require some form of security. No amount of security will make a bad plan good, but it does demonstrate commitment from your side and provide insurance for the lender.
Generally acceptable forms of security include: -
· Charge over a specific asset
· Fixed or floating charge on your business
· Second mortgage on your home
· Personal guarantees
By comparing and weighing up all the facts and information about the rate of interest and the length of return, you will be able to find out which one of these sources of finance is good for you and which would not be so suitable.
You should consider: -
Consider more than one form of security.
If the lender requires personal guarantees, proceed with great caution.
Try to ensure that guarantees are limited in amount. Also consider insuring the risk.
You will almost certainly be required to present a comprehensive and convincing business plan to show how you are going to service the loan. In essence, this must demonstrate that you will be able to meet the new commitment through sustained growth in your business.
The provider may also give you some professional advice, not only to help you but because they want a high rate of return in a shorter time. Giving advice could help them build a good partnership with you, make you more confident to do business with them, and furthermore wish to come back again.
Information about Routes of Finance: -These web-sites below will provide you with further information, details and steps into finding and setting up the right finance option for you and your business.
http://www.co-op-assist.co.uk/raisefin.htm#define
http://www.enterprise-ireland.com/Grow/Finance/RaisingFinance.htm
http://www.startups.co.uk/aF_Cg0c.html
http://www.anbusiness.com/business_advice/general_advice/raising_finance.shtml
http://www.bized.co.uk/educators/level2/finance/lesson/sources1.htm
http://www.ioe.ac.uk/TeachNetUK/dsalbstein/sources/index.htm
Guide to Raising Money: -
Treat negotiating for money with the same planning and thought as making a sale.
Make your presentation carefully.
Be very certain that you ask for the right amount of money because it is very difficult to go round a second time to ask for more.
It can be difficult to raise less than £1 million.
Overdrafts are for the shorter term: long-term finance is provided by loans or selling shares, if you have a company.
As a rule of thumb, you will need to invest as much as an outside investor or perhaps half as much. Rare exceptions have managed to put in a much smaller proportion than an outside investor and still retain control.
Securing loans on your house or giving personal guarantees is a major step. Do not take it lightly or without discussing it with your family.
Money can be raised from banks, private individuals and companies, venture capital funds, charities or local authorities.
Information about raising money: -
http://www.eurekahedge.com/news/04jan_archive_capital_raising_asian_hedge_funds.asp
http://www.associatedcontent.com/article/93721/guide_to_raising_money_with_informal.html
For any new business the issue of where to find the money for a new venture should be at the forefront of any entrepreneur’s mind. Initial start-up costs, development expansion and furnishing costs are crucial for the success of the business. The capital is an important and essential part of establishing a new business, no matter how great your idea is.
The process of raising finance requires careful planning and good professional advice. It is important that a new entrepreneur understands the various sources of finance open to any new venture and knows which of these sources are appropriate in relation to the needs of the business. The most suitable form of funding for your business will depend on many factors such as the type of business you operate, its stage of development, your future plans and growth prospects.
Before you start this process you must have an adequate amount of capital to start with. So where can you get a loan from and what benefit you would get from this?
Common sources of finance: -
· Personal Sources: -such as personal savings, family support, borrow from friends/family
· Borrowing Money: -such as HSBC, Barclay’s, Lloyd’s TSB, etc
· Equity Finance: -such as mortgages and loans
· Grants: -From Central Government Grants to local Grants
It is important to do a comparative study of the costs of each possibility and also consider any tax implications before making a final decision about who to approach. Most lenders will require some form of security. No amount of security will make a bad plan good, but it does demonstrate commitment from your side and provide insurance for the lender.
Generally acceptable forms of security include: -
· Charge over a specific asset
· Fixed or floating charge on your business
· Second mortgage on your home
· Personal guarantees
By comparing and weighing up all the facts and information about the rate of interest and the length of return, you will be able to find out which one of these sources of finance is good for you and which would not be so suitable.
You should consider: -
Consider more than one form of security.
If the lender requires personal guarantees, proceed with great caution.
Try to ensure that guarantees are limited in amount. Also consider insuring the risk.
You will almost certainly be required to present a comprehensive and convincing business plan to show how you are going to service the loan. In essence, this must demonstrate that you will be able to meet the new commitment through sustained growth in your business.
The provider may also give you some professional advice, not only to help you but because they want a high rate of return in a shorter time. Giving advice could help them build a good partnership with you, make you more confident to do business with them, and furthermore wish to come back again.
Information about Routes of Finance: -These web-sites below will provide you with further information, details and steps into finding and setting up the right finance option for you and your business.
http://www.co-op-assist.co.uk/raisefin.htm#define
http://www.enterprise-ireland.com/Grow/Finance/RaisingFinance.htm
http://www.startups.co.uk/aF_Cg0c.html
http://www.anbusiness.com/business_advice/general_advice/raising_finance.shtml
http://www.bized.co.uk/educators/level2/finance/lesson/sources1.htm
http://www.ioe.ac.uk/TeachNetUK/dsalbstein/sources/index.htm
Guide to Raising Money: -
Treat negotiating for money with the same planning and thought as making a sale.
Make your presentation carefully.
Be very certain that you ask for the right amount of money because it is very difficult to go round a second time to ask for more.
It can be difficult to raise less than £1 million.
Overdrafts are for the shorter term: long-term finance is provided by loans or selling shares, if you have a company.
As a rule of thumb, you will need to invest as much as an outside investor or perhaps half as much. Rare exceptions have managed to put in a much smaller proportion than an outside investor and still retain control.
Securing loans on your house or giving personal guarantees is a major step. Do not take it lightly or without discussing it with your family.
Money can be raised from banks, private individuals and companies, venture capital funds, charities or local authorities.
Information about raising money: -
http://www.eurekahedge.com/news/04jan_archive_capital_raising_asian_hedge_funds.asp
http://www.associatedcontent.com/article/93721/guide_to_raising_money_with_informal.html
Business Plan
A successful business plan: -
As a small business owner, you have spent a great deal of time considering your business’ future and what you hope to achieve. So why should you write a business plan? But if you are thinking about applying for a loan from the bank, you will have to get your business plan ready for your application. By going through the process, you will have an opportunity to consider the right work-life balance for you.
Your business plan is a tool to measure your business’ progress and plans for future staffing and financing. It will also become a user-friendly guide for employees, investors, suppliers and advisors. These important players in the development of your business need to look at the plan to weigh up your business so they can see if it actually works so they can be confident about getting back their loans with your business. Even though the risk of going into business cannot be eliminated, a good plan will help reduce the risk.
The following outline will take you through the "thinking process" and help in gathering and organising the necessary information
Business plan: -
Works for a business to look ahead.
Allocate resources, focus on key points.
Prepare for problems and opportunities.
The development of the businesses plan is the most important task before you go into setting up your dream. The important areas of the business plan are: -
Business Description: -
The Marketplace: -
Sales & Marketing: -
Business Operations: -
Financial Information: -
Executive Summary: -
Using Your Business Plan Effectively: -
Your plan is now ready to be used in communicating your vision to employees, partners, advisors, investors and bankers. Not everyone needs to see each section of your plan.
Here are some guidelines on how you can use your business plan: -
· Share business plan with people you trust.
· Use findings from Cash Flow Projections to get cash in hand.
· Measure progress on a monthly basis.
· Use the plan to communicate with suppliers, advisors, professionals and employees.
· Review the plan once a year.
· Consider revising it whenever significant changes occur in the: -
Personal life Business
Marketplace Economy
· Discuss changes with key advisors, banker and accountant.
Information about the writing of a Business Plan: -The business plan and how it is written is a very difficult and important task to undertaker and achieve blow are a number of web-site with useful tips and examples in how you write.
http://members.lycos.co.uk/anisa/bplan.htm
http://www.toolkit.cch.com/text/P02_6001.asp
What can a business plan provide: -
· Share business plan with people you trust.
· Use findings from Cash Flow Projections to get cash in hand.
· Measure progress on a monthly basis.
· Use the plan to communicate with suppliers, advisors, professionals and employees.
· Review plan at once a year.
· Consider revising it whenever significant changes occur in the: -
o Personal life
o Business
o Marketplace
o Economy
· Discuss changes with key advisors, banker and accountant.
Banking and Financial Tables: -
Managing your business finances is a very important step. Good financial management of your business is a key issue in establishing your success and to your keep your business running further in the early stage of your investment. 98% of new ventures fail within the first year, the main reason for is can be attributed to not fully reporting your business finances and transactions; which also means that you could not set cash flow fluently & could not met the break even point.
So therefore; you as a new entrepreneur will need to be aware of your busienss financial actions, it is importna that you know and understand the fundimental aspects of the different financial statements. Financial statements are formal records of a business’ financial activities. These statements provide an overview of a business’ profitability and financial condition in both short and long term.
There are four basic financial statements: -
Balance Sheet: -This is company’s reports; recording the company’s assets, liabilities and net equity as of a given point in time.
Profit or loss statement: -Reports on a company’s results of operations over a period of time.
Cash Flow Statement: -This reports records the company’s cash flow activities, particularly its operating, investing and financing activities. Cash flow is the most difficult part of finance for the new ventures, even if the business has a very good sales revenues and gaining a big amount of profit from their sales, however if they have a huge amount of debtors, it is a big risk for the company. Money is not coming on time, company do not have enough money for the next purchase or paying their expenses or even paying for their creditors, it finally cause bankrupt.
Statement of Retained Earnings: -This form of financial statement explains the changes in a company’s retained earnings over the reporting period.
Information about Financial Statements: -For help and advice on how to fully understanding the structure and alements of the ablove four financail statements please visit the following web-site: -
http://cbdd.wsu.edu/kewlcontent/cdoutput/TR505r/page45.htm
Break-even point: -Another area of importance for a new venture is the financail out of the period and hopefully making a level profit, which is called “Break-even!” The break-even point in economics terms is the point at which cost or expenses and income are equal; there is no net loss or gain, therefore like the term surgesses the business has “broken even!”
The breakeven point can be determined by the Lawson criterion, which can be shown by the following formula: -
Managers who could not meet their break-even are mainly resulted to underestimate their cost, the cost is not only the purchase, it is also include the salaries, bills and general office spending.
Information about Break-even point: -To help you further is understanding and undertaking a break-even analysis please use the web-sites below, which are full of help intes and examplies.
http://www.tutor2u.net/business/production/break_even.htm
http://connection.cwru.edu/mbac424/breakeven/breakeven.cfm
Apart from managing your cash flow and break even efficiently, you also need to have an understanding of your businesses credit report:
Credit report: -A credit report is a record of a company’s past borrowing and repaying, including information about late payments and bankruptcy. The term “credit reputation” can either be used synonymous to credit history or to credit score.
Information about Credit report: -To find more information about credit reports it is important that you read through the fellowing web-site before moving on to the next stection.
http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm
Legislation: -
No matter what types of business area you are operating in, to operate your business under the legal system is very important, it also could affect your business’s public relation.
The most important regulation factors of your business are: -
· Gaining the license: -
· Report on taxation: -
Apart from these, you also need to be aware of labour right, pay right, holidays, health & safety. If you operated into food industrial, you need to be very well control on the hygiene stuff, etc.
Information about Company Legislation: -To be able to understand it completely, I have provided the links of the website you need.
· http://www.legalprospects.co.uk/
· http://www.cla.co.uk/licensing/business/corp_page00.php
· http://www.taxationweb.co.uk/businesstax/
· http://www.enfield.gov.uk/407/index407.htm
Advertising your small business: -
When a new business starts out, it is especially important to set extra-tight limits on your target customer. So therefore it is important to establish when your business starts to advertises, does it do so effectively? Are you encouraging customers and sales, or are you throwing money away? A huge number of businesses spend money on placing adverts that are ineffective or prepared without any thought to the aims or target audience.
Stay focused only on your strongest target; “right on that bulls-eye.” Then as your business picks up (which we are fully hoping it does) you will focus your advertising strategy gradually around your bulls-eye/target-group a little wider, still maintaining a focus on your targeted group.
This section therefore focuses on what advertising can do for your business, as well as what you can do to produce and monitor effective adverts; including help on whether you should create an advert yourself or pay someone else to do it.
The Aims of Your Advertising Strategy: -
Contrary to popular belief, advertising is not always just about increasing sales (although that is usually the long term goal!); the following are the key aims that your adverts can try to achieve. Some businesses run different adverts with different aims over a period of time. These aims should be in place even if you pay an external company to do your adverts; by knowing what your aims are, you will help them to produce better work.
There are four main aims of a marketing Strategy: -
· Encouraging Sales: -
· Increase Knowledge of Company: -
Increase Interest in a Product: -
Create a Different Image: -
http://www.bizhelp24.com/marketing/advertising-your-business-offline-3.html
10 Essential Strategies to ensure that your Advertising is a Success: -
If your Advertising isn’t working: -STOP IT!
Only use Direct Response Advertising: -
Testing and Measuring: -
Your Headline is the most important part of your Ad: -Which of these headlines do you think would be most likely to get the reader’s attention: -
Simpson Fire Alarms - Your Guarantee of Safety
OR
Is your Family's Life worth the price of a round of Drinks?
Be adventurous with your headlines. Test different versions to see what works best. There are no rules – except what works.
Remember AIDA---
· Attention: -
· Interest: -
· Desire: -
· Action: -
State only the Benefits, Benefits and Benefits of your business: -
Don’t Advertise on a Left Hand Page: -
Never pay the full rate for advertising: -
Don’t Follow the Competition: -
Don’t buy into the myth that Advertising is essential for your Business Success: -So start to think out of the box; you should be using a combination of up to at least ten marketing strategies to grow you business.
Telephone Marketing
Direct Mail
Internet
Email marketing
Direct Sales
Public Relations
Strategic Alliances
Lead Response Marketing
A multi level Referral system
By Chris Cardell
Information about a success Advertising Plan: -
http://www.cardellmedia.co.uk/prreport.htm
http://www.cardellmedia.com/advertisingreport.htm
After-Marketing and How to Keep Customers: -
Following your marketing and promotional strategy it is very important to keep your customer, it just is not about that one visit to make the best impression it is important that you keep that first impression every time that customer enters your new business.
There are many techniques in keeping that customer using your business: -
Listen of Your Client or Customer Wants and Needs: -
Learn from your Competitors and the Industry Leader: -
Hire People locally and with great knowledge of the local people: -
Employ and train staff with people skills, listening and communication: -
Keep Track of Progress for that to consumer will see and clean and up-to date business: -
Information about how you can keep you Customer: -These web-sites contain further information about how you can set ways and techniques to maintain customer loyalty and returning back to your business to shop.
http://www.incentivecentral.org/Customer_Retention__Keeping_Your_Best_Customers_for_t.568.0.html
http://www.nbrii.com/Customer_Surveys/Keeping_Customers.html
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073906150
http://www.henleycentre.com/HC_Whatwedo/HC_Keeping.htm
As a small business owner, you have spent a great deal of time considering your business’ future and what you hope to achieve. So why should you write a business plan? But if you are thinking about applying for a loan from the bank, you will have to get your business plan ready for your application. By going through the process, you will have an opportunity to consider the right work-life balance for you.
Your business plan is a tool to measure your business’ progress and plans for future staffing and financing. It will also become a user-friendly guide for employees, investors, suppliers and advisors. These important players in the development of your business need to look at the plan to weigh up your business so they can see if it actually works so they can be confident about getting back their loans with your business. Even though the risk of going into business cannot be eliminated, a good plan will help reduce the risk.
The following outline will take you through the "thinking process" and help in gathering and organising the necessary information
Business plan: -
Works for a business to look ahead.
Allocate resources, focus on key points.
Prepare for problems and opportunities.
The development of the businesses plan is the most important task before you go into setting up your dream. The important areas of the business plan are: -
Business Description: -
The Marketplace: -
Sales & Marketing: -
Business Operations: -
Financial Information: -
Executive Summary: -
Using Your Business Plan Effectively: -
Your plan is now ready to be used in communicating your vision to employees, partners, advisors, investors and bankers. Not everyone needs to see each section of your plan.
Here are some guidelines on how you can use your business plan: -
· Share business plan with people you trust.
· Use findings from Cash Flow Projections to get cash in hand.
· Measure progress on a monthly basis.
· Use the plan to communicate with suppliers, advisors, professionals and employees.
· Review the plan once a year.
· Consider revising it whenever significant changes occur in the: -
Personal life Business
Marketplace Economy
· Discuss changes with key advisors, banker and accountant.
Information about the writing of a Business Plan: -The business plan and how it is written is a very difficult and important task to undertaker and achieve blow are a number of web-site with useful tips and examples in how you write.
http://members.lycos.co.uk/anisa/bplan.htm
http://www.toolkit.cch.com/text/P02_6001.asp
What can a business plan provide: -
· Share business plan with people you trust.
· Use findings from Cash Flow Projections to get cash in hand.
· Measure progress on a monthly basis.
· Use the plan to communicate with suppliers, advisors, professionals and employees.
· Review plan at once a year.
· Consider revising it whenever significant changes occur in the: -
o Personal life
o Business
o Marketplace
o Economy
· Discuss changes with key advisors, banker and accountant.
Banking and Financial Tables: -
Managing your business finances is a very important step. Good financial management of your business is a key issue in establishing your success and to your keep your business running further in the early stage of your investment. 98% of new ventures fail within the first year, the main reason for is can be attributed to not fully reporting your business finances and transactions; which also means that you could not set cash flow fluently & could not met the break even point.
So therefore; you as a new entrepreneur will need to be aware of your busienss financial actions, it is importna that you know and understand the fundimental aspects of the different financial statements. Financial statements are formal records of a business’ financial activities. These statements provide an overview of a business’ profitability and financial condition in both short and long term.
There are four basic financial statements: -
Balance Sheet: -This is company’s reports; recording the company’s assets, liabilities and net equity as of a given point in time.
Profit or loss statement: -Reports on a company’s results of operations over a period of time.
Cash Flow Statement: -This reports records the company’s cash flow activities, particularly its operating, investing and financing activities. Cash flow is the most difficult part of finance for the new ventures, even if the business has a very good sales revenues and gaining a big amount of profit from their sales, however if they have a huge amount of debtors, it is a big risk for the company. Money is not coming on time, company do not have enough money for the next purchase or paying their expenses or even paying for their creditors, it finally cause bankrupt.
Statement of Retained Earnings: -This form of financial statement explains the changes in a company’s retained earnings over the reporting period.
Information about Financial Statements: -For help and advice on how to fully understanding the structure and alements of the ablove four financail statements please visit the following web-site: -
http://cbdd.wsu.edu/kewlcontent/cdoutput/TR505r/page45.htm
Break-even point: -Another area of importance for a new venture is the financail out of the period and hopefully making a level profit, which is called “Break-even!” The break-even point in economics terms is the point at which cost or expenses and income are equal; there is no net loss or gain, therefore like the term surgesses the business has “broken even!”
The breakeven point can be determined by the Lawson criterion, which can be shown by the following formula: -
Managers who could not meet their break-even are mainly resulted to underestimate their cost, the cost is not only the purchase, it is also include the salaries, bills and general office spending.
Information about Break-even point: -To help you further is understanding and undertaking a break-even analysis please use the web-sites below, which are full of help intes and examplies.
http://www.tutor2u.net/business/production/break_even.htm
http://connection.cwru.edu/mbac424/breakeven/breakeven.cfm
Apart from managing your cash flow and break even efficiently, you also need to have an understanding of your businesses credit report:
Credit report: -A credit report is a record of a company’s past borrowing and repaying, including information about late payments and bankruptcy. The term “credit reputation” can either be used synonymous to credit history or to credit score.
Information about Credit report: -To find more information about credit reports it is important that you read through the fellowing web-site before moving on to the next stection.
http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm
Legislation: -
No matter what types of business area you are operating in, to operate your business under the legal system is very important, it also could affect your business’s public relation.
The most important regulation factors of your business are: -
· Gaining the license: -
· Report on taxation: -
Apart from these, you also need to be aware of labour right, pay right, holidays, health & safety. If you operated into food industrial, you need to be very well control on the hygiene stuff, etc.
Information about Company Legislation: -To be able to understand it completely, I have provided the links of the website you need.
· http://www.legalprospects.co.uk/
· http://www.cla.co.uk/licensing/business/corp_page00.php
· http://www.taxationweb.co.uk/businesstax/
· http://www.enfield.gov.uk/407/index407.htm
Advertising your small business: -
When a new business starts out, it is especially important to set extra-tight limits on your target customer. So therefore it is important to establish when your business starts to advertises, does it do so effectively? Are you encouraging customers and sales, or are you throwing money away? A huge number of businesses spend money on placing adverts that are ineffective or prepared without any thought to the aims or target audience.
Stay focused only on your strongest target; “right on that bulls-eye.” Then as your business picks up (which we are fully hoping it does) you will focus your advertising strategy gradually around your bulls-eye/target-group a little wider, still maintaining a focus on your targeted group.
This section therefore focuses on what advertising can do for your business, as well as what you can do to produce and monitor effective adverts; including help on whether you should create an advert yourself or pay someone else to do it.
The Aims of Your Advertising Strategy: -
Contrary to popular belief, advertising is not always just about increasing sales (although that is usually the long term goal!); the following are the key aims that your adverts can try to achieve. Some businesses run different adverts with different aims over a period of time. These aims should be in place even if you pay an external company to do your adverts; by knowing what your aims are, you will help them to produce better work.
There are four main aims of a marketing Strategy: -
· Encouraging Sales: -
· Increase Knowledge of Company: -
Increase Interest in a Product: -
Create a Different Image: -
http://www.bizhelp24.com/marketing/advertising-your-business-offline-3.html
10 Essential Strategies to ensure that your Advertising is a Success: -
If your Advertising isn’t working: -STOP IT!
Only use Direct Response Advertising: -
Testing and Measuring: -
Your Headline is the most important part of your Ad: -Which of these headlines do you think would be most likely to get the reader’s attention: -
Simpson Fire Alarms - Your Guarantee of Safety
OR
Is your Family's Life worth the price of a round of Drinks?
Be adventurous with your headlines. Test different versions to see what works best. There are no rules – except what works.
Remember AIDA---
· Attention: -
· Interest: -
· Desire: -
· Action: -
State only the Benefits, Benefits and Benefits of your business: -
Don’t Advertise on a Left Hand Page: -
Never pay the full rate for advertising: -
Don’t Follow the Competition: -
Don’t buy into the myth that Advertising is essential for your Business Success: -So start to think out of the box; you should be using a combination of up to at least ten marketing strategies to grow you business.
Telephone Marketing
Direct Mail
Internet
Email marketing
Direct Sales
Public Relations
Strategic Alliances
Lead Response Marketing
A multi level Referral system
By Chris Cardell
Information about a success Advertising Plan: -
http://www.cardellmedia.co.uk/prreport.htm
http://www.cardellmedia.com/advertisingreport.htm
After-Marketing and How to Keep Customers: -
Following your marketing and promotional strategy it is very important to keep your customer, it just is not about that one visit to make the best impression it is important that you keep that first impression every time that customer enters your new business.
There are many techniques in keeping that customer using your business: -
Listen of Your Client or Customer Wants and Needs: -
Learn from your Competitors and the Industry Leader: -
Hire People locally and with great knowledge of the local people: -
Employ and train staff with people skills, listening and communication: -
Keep Track of Progress for that to consumer will see and clean and up-to date business: -
Information about how you can keep you Customer: -These web-sites contain further information about how you can set ways and techniques to maintain customer loyalty and returning back to your business to shop.
http://www.incentivecentral.org/Customer_Retention__Keeping_Your_Best_Customers_for_t.568.0.html
http://www.nbrii.com/Customer_Surveys/Keeping_Customers.html
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073906150
http://www.henleycentre.com/HC_Whatwedo/HC_Keeping.htm
Development and Growth
Small business success: -
Obviously people start a new venture to make money and gain success, but there are different ways of gain this success blow are ten basic steps to gain the best route.
10 tips to succeed: -
Knowing yourself and knowing what you are good at.
Planning your business wisely.
Finance for the long term and not looking for sort term solutions.
Balancing your books and financial records and transactions.
Practicing good management skills and techniques, which will also motivate you and people around you.
Some of the more common mistakes managers make include: -
Hiring the wrong people.
Inadequate employee training.
Trying to do too much.
Bad time management.
Absentee ownership.
Knowing your market is important part of gaining success sound market research is the key.
Delivering the best quality the business can achieve; a terrific marketing strategy might bring a customer to your door.
Hire the right people; many consultants agree that good employees can play a major role in your business's success. Very often the image and reputation of your company depend on how customers view your employees. An employee's attitude, appearance and skills can make or break your business.
Choose the right location; just as your product or service and your employees are crucial to your business's success, so is your location. Where you want to set up shop is a decision that should be made early.
Do not be afraid to ask for help; when considering the assistance of professional consultants, many owners of small business ask themselves: Is it necessary? Can I afford one? Can I afford not to get the help of outside experts?
What can you get out of your business: -
Saving Money and Accumulating Wealth: -The share price of a business is related to its financial strength and its prospects for the future. Can you imagine how someone might evaluate your present financial situation and your prospects for the future? Would you be a value oriented investment or a blue chip? It all depends on what the investors deem the merits and the liabilities of the way you conduct yourself in the business of life.
Business Growth/Expansion: -
Your business’ focus changes as it moves beyond the start-up phase. Identifying opportunities for growth becomes a priority to ensure the enterprise’s sustainability.
You can measure growth by looking at numbers such as your: -
· turnover
· market share
· profits
· sales
· staff numbers
However, determining which measure delivers the most accurate picture of your business’ performance depends on both your type of business and what stage it has reached.
For example, a retail business may have a high sales volume, but narrow margins on stock. These could mean low profits that undermine the business’ viability.
In general, a combination of sales and profits is the preferred way of measuring growth.
Exiting your Market: -
When you're setting up your business it is essential to think about how you'll ultimately end your involvement with it.
A well thought-out exit strategy can help you to maximise the value you get from your business, successfully market your business to potential buyers or investors and ensure you end your involvement with as little disruption to the business as possible.
Regardless of whether your exit occurs to a planned schedule or you are forced to make a move for unexpected reasons, the decisions you make when setting up can affect how easy it is for you to eventually exit your business.
Exit options: -There are a number of ways of exiting or disposing of a business. You should consider the best option for them in line with their personal objectives.
The different options available are: -
Trade sale
Management buyout
Family succession
Management buy-in
Stock market flotation
Merger
Liquidation
We here at ‘Galaxy of Success’ have carefully selected the following case study from the U.S. (to give you a global insight) for your perusal to help guide you through the first tentative year:
Starting a business is somewhat like preparing for a final exam. There's organising test information, managing study time, and then taking the actual test. But sometimes, despite taking careful steps before opening shop, the first year can still be a learning process. Ebele Mora, the 18-year-old president of Imprint Design Services, a graphic design and printing company in Columbus, Ohio, did lots of groundwork before forming her company in May 2000. Even with laying a foundation, Ebele learned that a big part of running a business is trial and error.
DEVELOPING THE IDEA: -
Ebele had the right idea when she decided to enter an NAACP ACT-SO Entrepreneurship competition in her state in April 2000. Prior to entering, she studied concepts such as defining her business and its services, learning basic business vocabulary, and marketing and management. She had to write a 20-page business plan and make a five-minute presentation in front of six judges. Needless to say, Ebele's efforts won Imprint Designs the competition. She also took second place in the ACT-SO nationals in July of that year. In all, Ebele has participated in few business competitions. "Those competitions help me define my ideas." she explains, "Each year when I compete. I write a new business plan. In 2001, I called it A Plan for Success ... a Plan for Improvement and Development for My Business in its Next Year.
FINDING THE CUSTOMERS: -
Ebele's business, which creates materials such as flyers, invitations, business cards, bookmarks, and program booklets, made $3,000 after its first year. For three years prior to starting Imprint Design Services, she volunteered to design the printed materials for a women's arts and community organisation. Once Ebele decided to start a company, she had 12 clients waiting in the wings from referrals from the women's organisation. Soon, hairstylists and ether self-employed individuals were calling for her services. "Once the word got out about the business," Ebele says. "I began to connect with several mentors." One of those mentors was a graphic designer who owned a software business. Because she used the family's Gateway desktop computer, printer, and paper, Ebele was able to start her company without any money. Within the first month of doing graphic designs, she made $100. Thinking smart, she reinvested the money and bought paper and ink cartridges.
CHARGING THE RIGHT PRICE: -
Even though Ebele had a fair share of work coming in, there were several things she hadn't completely figured out before starting some of the projects. She was very excited, for instance when a local salon asked her to create business cards for 14 of its stylist. But Ebele didn't figure out what the project would cost her before giving the customer a price. "I hadn't figured out how many pages I could print per ink cartridge," she says. "And even though I printed the cards at home. I also hadn't factored in the cost of having to get them cut at Kinkos." When done, the job cost about $220, barely leaving $25 in profit for all of the hard work. She raised the cost of the business cards several times before coming up with a price that would give her a larger profit.
Ebele decided to change a few other things too;
For starters, she began buying ink to fill the prissier cartridges instead of purchasing a new cartridge every time. She also found a supplier that sold paper at a much cheaper rate. In addition, Ebele decided she wouldn't print less than 400 cards per customer. After determining that, it would cost her $14 to produce that many cards, she set her, cost at $28 per order, leaving her with a $14 profit. "The price I arrived at was cost-effective for the customers and profitable for me," she says.
Ebele also stresses that, at times, she didn't put enough value on her work. In the beginning, no matter how complex or time-consuming the job was, she charged every customer $10 for doing design work on flyers. After realising she wasn't making much per hour for her efforts, she increased her rate to $15 for a simple flyer and $30 for a more complex one.
EXPANDING THE COMPANY: -
Another lesson Ebele learned early on was realising her company's potential to grow. When her business first started, she didn't provide printing services because she didn't know it could be profitable. But after getting a $500 grant in April 200 2001 from the Institute for Entrepreneurship and the Kaufman Foundation, she bought two more printers and expanded her operation. She now prints the flyers and other orders and is able to offer customers smaller print quantities for a good price. As a result of this expansion, 50% of Imprint Design's revenues comes from printing services now. Other services the company provides are cutting, folding, and lamination.
A senior at Bishop Hartley High School, Ebele plans to attend college this fall. While she'll still play a part in operating the business, she'll leave the hands-on work to her younger sister, who often helps with large printing jobs. She wants to major in accounting and plans to learn Web design while in college. "For now," she says, "I want to keep my business going while learning as much in other areas as I can."
NLP and the new business venturer
Neuro Linguistic Programming (NLP) – truly helps you realise, reach and maintain your true potential.
Knowledge of NLP will be of great advantage to any new business venturer a summary of what this is follows with several very useful & relevant web sites/links.
Neuro-linguistic programming (NLP) is based on the idea that with our senses we are only able to perceive a small part of the world. Our view of the world is filtered by our experience, beliefs, values and assumptions. We act and feel based on our perception of the world rather than the real world. NLP teaches that language and behaviors (whether functional or dysfunctional) are highly structured, and that this structure can be 'modeled' or copied into a reproducible form Using NLP a person can 'model' the more successful parts of their own behavior in order to reproduce it in areas where they are less successful or 'model' another person to effect belief and behavior changes to improve functioning. If someone excels in some activity, it can be learned how specifically they do it by observing certain important details of their behavior. NLP embodies several techniques, including hypnotic techniques, which proponents claim can affect changes in the way people think, learn and communicate.
NLP has given rise to a trail of techniques that can be used both personally and professionally. They are used internationally in various business areas and enable you not only to reach and influence others, but also to reach and perfect the different parts of yourself.
NLP can also help managers analyse success secrets of their best employees applied by intuition and teach others these secrets, thus "cloning" success without cloning people.
Essential to any new business venturer: NLP Model: www.1000ventures.com
Useful NLP websites:
www.helford2000.co.uk
www.nlp.com
www.nlpacademy.co.uk
www.nlpconference.co.uk
www.ppdlearning.co.uk
Obviously people start a new venture to make money and gain success, but there are different ways of gain this success blow are ten basic steps to gain the best route.
10 tips to succeed: -
Knowing yourself and knowing what you are good at.
Planning your business wisely.
Finance for the long term and not looking for sort term solutions.
Balancing your books and financial records and transactions.
Practicing good management skills and techniques, which will also motivate you and people around you.
Some of the more common mistakes managers make include: -
Hiring the wrong people.
Inadequate employee training.
Trying to do too much.
Bad time management.
Absentee ownership.
Knowing your market is important part of gaining success sound market research is the key.
Delivering the best quality the business can achieve; a terrific marketing strategy might bring a customer to your door.
Hire the right people; many consultants agree that good employees can play a major role in your business's success. Very often the image and reputation of your company depend on how customers view your employees. An employee's attitude, appearance and skills can make or break your business.
Choose the right location; just as your product or service and your employees are crucial to your business's success, so is your location. Where you want to set up shop is a decision that should be made early.
Do not be afraid to ask for help; when considering the assistance of professional consultants, many owners of small business ask themselves: Is it necessary? Can I afford one? Can I afford not to get the help of outside experts?
What can you get out of your business: -
Saving Money and Accumulating Wealth: -The share price of a business is related to its financial strength and its prospects for the future. Can you imagine how someone might evaluate your present financial situation and your prospects for the future? Would you be a value oriented investment or a blue chip? It all depends on what the investors deem the merits and the liabilities of the way you conduct yourself in the business of life.
Business Growth/Expansion: -
Your business’ focus changes as it moves beyond the start-up phase. Identifying opportunities for growth becomes a priority to ensure the enterprise’s sustainability.
You can measure growth by looking at numbers such as your: -
· turnover
· market share
· profits
· sales
· staff numbers
However, determining which measure delivers the most accurate picture of your business’ performance depends on both your type of business and what stage it has reached.
For example, a retail business may have a high sales volume, but narrow margins on stock. These could mean low profits that undermine the business’ viability.
In general, a combination of sales and profits is the preferred way of measuring growth.
Exiting your Market: -
When you're setting up your business it is essential to think about how you'll ultimately end your involvement with it.
A well thought-out exit strategy can help you to maximise the value you get from your business, successfully market your business to potential buyers or investors and ensure you end your involvement with as little disruption to the business as possible.
Regardless of whether your exit occurs to a planned schedule or you are forced to make a move for unexpected reasons, the decisions you make when setting up can affect how easy it is for you to eventually exit your business.
Exit options: -There are a number of ways of exiting or disposing of a business. You should consider the best option for them in line with their personal objectives.
The different options available are: -
Trade sale
Management buyout
Family succession
Management buy-in
Stock market flotation
Merger
Liquidation
We here at ‘Galaxy of Success’ have carefully selected the following case study from the U.S. (to give you a global insight) for your perusal to help guide you through the first tentative year:
Starting a business is somewhat like preparing for a final exam. There's organising test information, managing study time, and then taking the actual test. But sometimes, despite taking careful steps before opening shop, the first year can still be a learning process. Ebele Mora, the 18-year-old president of Imprint Design Services, a graphic design and printing company in Columbus, Ohio, did lots of groundwork before forming her company in May 2000. Even with laying a foundation, Ebele learned that a big part of running a business is trial and error.
DEVELOPING THE IDEA: -
Ebele had the right idea when she decided to enter an NAACP ACT-SO Entrepreneurship competition in her state in April 2000. Prior to entering, she studied concepts such as defining her business and its services, learning basic business vocabulary, and marketing and management. She had to write a 20-page business plan and make a five-minute presentation in front of six judges. Needless to say, Ebele's efforts won Imprint Designs the competition. She also took second place in the ACT-SO nationals in July of that year. In all, Ebele has participated in few business competitions. "Those competitions help me define my ideas." she explains, "Each year when I compete. I write a new business plan. In 2001, I called it A Plan for Success ... a Plan for Improvement and Development for My Business in its Next Year.
FINDING THE CUSTOMERS: -
Ebele's business, which creates materials such as flyers, invitations, business cards, bookmarks, and program booklets, made $3,000 after its first year. For three years prior to starting Imprint Design Services, she volunteered to design the printed materials for a women's arts and community organisation. Once Ebele decided to start a company, she had 12 clients waiting in the wings from referrals from the women's organisation. Soon, hairstylists and ether self-employed individuals were calling for her services. "Once the word got out about the business," Ebele says. "I began to connect with several mentors." One of those mentors was a graphic designer who owned a software business. Because she used the family's Gateway desktop computer, printer, and paper, Ebele was able to start her company without any money. Within the first month of doing graphic designs, she made $100. Thinking smart, she reinvested the money and bought paper and ink cartridges.
CHARGING THE RIGHT PRICE: -
Even though Ebele had a fair share of work coming in, there were several things she hadn't completely figured out before starting some of the projects. She was very excited, for instance when a local salon asked her to create business cards for 14 of its stylist. But Ebele didn't figure out what the project would cost her before giving the customer a price. "I hadn't figured out how many pages I could print per ink cartridge," she says. "And even though I printed the cards at home. I also hadn't factored in the cost of having to get them cut at Kinkos." When done, the job cost about $220, barely leaving $25 in profit for all of the hard work. She raised the cost of the business cards several times before coming up with a price that would give her a larger profit.
Ebele decided to change a few other things too;
For starters, she began buying ink to fill the prissier cartridges instead of purchasing a new cartridge every time. She also found a supplier that sold paper at a much cheaper rate. In addition, Ebele decided she wouldn't print less than 400 cards per customer. After determining that, it would cost her $14 to produce that many cards, she set her, cost at $28 per order, leaving her with a $14 profit. "The price I arrived at was cost-effective for the customers and profitable for me," she says.
Ebele also stresses that, at times, she didn't put enough value on her work. In the beginning, no matter how complex or time-consuming the job was, she charged every customer $10 for doing design work on flyers. After realising she wasn't making much per hour for her efforts, she increased her rate to $15 for a simple flyer and $30 for a more complex one.
EXPANDING THE COMPANY: -
Another lesson Ebele learned early on was realising her company's potential to grow. When her business first started, she didn't provide printing services because she didn't know it could be profitable. But after getting a $500 grant in April 200 2001 from the Institute for Entrepreneurship and the Kaufman Foundation, she bought two more printers and expanded her operation. She now prints the flyers and other orders and is able to offer customers smaller print quantities for a good price. As a result of this expansion, 50% of Imprint Design's revenues comes from printing services now. Other services the company provides are cutting, folding, and lamination.
A senior at Bishop Hartley High School, Ebele plans to attend college this fall. While she'll still play a part in operating the business, she'll leave the hands-on work to her younger sister, who often helps with large printing jobs. She wants to major in accounting and plans to learn Web design while in college. "For now," she says, "I want to keep my business going while learning as much in other areas as I can."
NLP and the new business venturer
Neuro Linguistic Programming (NLP) – truly helps you realise, reach and maintain your true potential.
Knowledge of NLP will be of great advantage to any new business venturer a summary of what this is follows with several very useful & relevant web sites/links.
Neuro-linguistic programming (NLP) is based on the idea that with our senses we are only able to perceive a small part of the world. Our view of the world is filtered by our experience, beliefs, values and assumptions. We act and feel based on our perception of the world rather than the real world. NLP teaches that language and behaviors (whether functional or dysfunctional) are highly structured, and that this structure can be 'modeled' or copied into a reproducible form Using NLP a person can 'model' the more successful parts of their own behavior in order to reproduce it in areas where they are less successful or 'model' another person to effect belief and behavior changes to improve functioning. If someone excels in some activity, it can be learned how specifically they do it by observing certain important details of their behavior. NLP embodies several techniques, including hypnotic techniques, which proponents claim can affect changes in the way people think, learn and communicate.
NLP has given rise to a trail of techniques that can be used both personally and professionally. They are used internationally in various business areas and enable you not only to reach and influence others, but also to reach and perfect the different parts of yourself.
NLP can also help managers analyse success secrets of their best employees applied by intuition and teach others these secrets, thus "cloning" success without cloning people.
Essential to any new business venturer: NLP Model: www.1000ventures.com
Useful NLP websites:
www.helford2000.co.uk
www.nlp.com
www.nlpacademy.co.uk
www.nlpconference.co.uk
www.ppdlearning.co.uk
Subscribe to:
Posts (Atom)
