Business World

3 Qualities Of Leadership in Home Business

noreply@blogger.com (Harshil) — Mon, 02 Feb 2009 18:03:00 +0000

“There is a leader within all of us”. If you take a look around, you will find that those who are leaders are really not extra ordinary people, and you will also realize that they do not really do any special things that have made them so successful. However you will also realize that they almost always do the same things, but they do them differently. Consistency, accountability, decisiveness – these are the three qualities most leaders have in common. Let us take a look at them all.

Consistency:Ralph Waldo Emerson, the American philosopher, essayist, poet, and leader of the Transcendentalist movement in the early 19th century said “consistency is THE most crucial key to success”. He believed that we live in a world of ‘cause and effect’. The reputation of your business, how they perceive you and even whether they will buy from you or not, everything depends on how consistently you are functioning. So be consistent in your business policies and in your dealings with people.

But the meaning of consistency goes beyond that. This refers to your own efforts. Do remember that not every day can be the same – there is bound to be some good ones and a few bad ones. So do not despair when it seems that the things are not moving your way – keep doing your job consistently and eventually you will succeed.

Accountability: Accountability becomes a very important factor, particularly when you are working from home. There is a set system at the traditional job you could have been kept ‘on task’ by your boss or superiors. Then there are deadlines and competition among colleagues that also keeps one moving. But on the other hand, when you are on your own, staying on course may become very difficult. This is why you need an accountability partner that will help you keep on track and reach your goal. You may set yourself internal targets such as 50 customers within the first 6 months or achieving sales of $250,000 in the first year of operations – they can be your accountability partner.

Decisiveness: Your single minded commitment and decisiveness is another key leadership quality. A true leader will know what he/she wants to achieve and will take steps in a decisive manner. The person is mentally very strong and can resolve any conflict easily. On the other hand someone who is indecisive will always be questioning about the consequences and so very rarely can he/she take action when it is needed.

So develop these three leadership qualities in yourself and you will surely be able to guide your home business to success.

What Type Of Franchise Business To Choose From

noreply@blogger.com (Harshil) — Tue, 06 Jan 2009 21:46:00 +0000

It may surprise you to learn that you don't need to be a computer geek to run a tech franchise. You also need not have a wad of cash in the bank to become involved in a sports apparel franchising business either. Fast food franchises can cost a bit of money to start but obtaining financing is much easier and the risk of failure is also much lower.

While a small business startup results in failure 50-80% of the time, new franchises only fail 5% of the time. Before signing on the dotted line, you'll be able to read detailed manuals outlining your responsibilities. The only question is what kind of franchise do you want?

Tech ones can be educational, creative or can provide troubleshooting services. In the educational tech franchise opportunity, your staff will teach consumers about software programs like Microsoft Word or Photoshop, typically through workshops or instructional courses.

The creative franchise business helps customers create websites, set up email systems or develop e-commerce solutions for their businesses. Troubleshooting franchises fix hardware or software problems.

Food, either restaurant or fast food, is another type of franchise you might want to consider. In the Franchise 500, 7/10 of the top franchises are fast food franchises such as Subway, McDonalds, Pizza Hut and KFC. Restaurant chains also run very well independently, although they cost a considerable amount to start up.

Some new franchises can cost from $80,000 to $2.3 million. While the responsibilities are plentiful, this type of franchising business can churn a decent profit. Many prefer fast food and restaurant franchises because they have trusted reputations and brand names that have existed for decades.

As with anything, there are downsides to buying a franchise. If you want to operate a store to show off your managerial skills or your creative flair for decorating, then a franchising will not be for you. Your building, location, uniforms, advertising pitches, products and services will all be dictated by the corporation.

They have a proven system that distinguishes their name-brand from the competition, so it's essential that you adhere to it. Secondly, if you plan on becoming richer
than your wildest dreams then the franchising business is not for you.

The profit margin for fast food franchises or retail franchises is fairly low, considering all the expenses and fees, although you can certainly make a decent living from your investment. Lastly, if you're not sure what kind of commitment you want, then you should probably try something else. Most franchise owners plan to run their business for at least 20 years.

Buying A Business Franchise. What To Consider

noreply@blogger.com (Harshil) — Tue, 06 Jan 2009 21:42:00 +0000

Franchises are very popular at the moment and more and more people are choosing to buy one as opposed to starting out by setting up their own business.

By purchasing a franchise you are effectively taking advantage of the success of an already established business. As the 'franchisee', you are buying a licence to use the name, products, services, and management support systems of the "franchiser" company. This licence normally covers a particular geographical area and runs for a limited time. The downside to a franchise is that you will never actually legally own the business.

As a franchisee, the way you pay for the franchise may be through an initial fee, ongoing management fees, a share of your turnover, or a combination of these depending on how you have set up the franchise.

A franchise business can take different legal forms - most are sole traders, partnerships or limited companies. Whatever the structure, the franchisee's freedom to manage the business is limited by the terms of the franchise agreement.

For more information about buying a franchise please visit the British Franchise Association website.

Is it worth investing in a Business Franchise?

The simple answer is yes. However, it is important that you follow some careful steps before buying into a Business Franchise.

The good news is that there is information to suggest that the Franchise Business sector is still growing rapidly. During 2007 the Nat West Bank carried out a survey into the UK franchise market which revealed the astonishing financial growth of this sector. The approximate annual turnover of the business franchise sector is in excess of £10.8 billion. What is more interesting to note is that the vast majority of Business franchisees are in profit - a total of 93% to be exact! In 1991 the total number of profitable franchisees was 70% and in 2004 it was 88%. Therefore, this business sector is growing and there is a reason for it.

Why is it growing?

The simple reason is that a Business Franchise is usually tested first before it goes to market. If it works in one area, then there is a very strong chance that it will grow in others. As an example, take a moment to think about popular franchises such as Dominoes or McDonalds. They are literally everywhere, proving the fact that if there is demand in one area of the country, there will be similar demand elsewhere. The reason for this is because generally we are all the same, as people that is and we tend to follow trends. If 100 people like eating Dominoes pizza, then eventually there will be 100,000 that do! It's simple science but it is worth thinking about when buying a franchise. The only downside to this philosophy is that the more demand there is, the higher the cost of the franchise.

Getting in at the right time.

The most effective way to turn your initial franchise investment into a successful profit is to buy in at the right time. That is, to buy into a franchise in a 'key' area and at a time when the franchise is generally unknown to the masses. The benefit of this method is that is a franchise is new and not very well known, the vendor cannot demand a high price for their franchise. The downside to this method is that you, as the franchisee, take the risk that the business as a whole may not grow into a hugely successful business.

Carry out lots of research before you commit.

The first piece of advice, and probably the most important, is not to part with your cash until you are absolutely sure you will see a return on your investment (ROI). Do not, and I repeat, do not part with your cash simply because you are eager to 'own' a business. Owning a business may appear to be exciting and a way of impressing your circle of friends, but in reality it is hard work and often difficult to get off the ground. That is why you must carry out plenty of research first before you commit to anything.

You need to also be aware that running a franchise can sometimes be frustrating. As a franchise owner you are doing exactly that - owning a franchise. You do not 'own' the entire business but instead you own the rights to use the brand and operating structure and resources. For some, this can be frustrating. As a franchise owner there will be plenty of rules and guidelines to follow, which is why you must make certain this is for you before you commit.

If you buy the franchise, and then a later date decide that it is not for you, then the franchiser could include a clause in the contract that states you must sell the franchise back to them for 'X' pounds. After this has happened, what do you think the franchise operator does? Yes that's right, he sells it to someone else for a handsome profit! So the first thing to do is to make sure you are 100% certain that you will feel comfortable with owning and running a franchise.

The next thing you need to ask yourself is what skills do you have. Remember in the first lesson, 'The Business Idea', we asked ourselves 3 important questions:

1. What am I good at?

2. What do I enjoy doing?

3. What are my experiences?

Before you invest in a franchise or choose one you should ask yourself these important questions again. The answer to these questions will help you to determine which is the best franchise for you. For example, if you like working alone and don't generally enjoy meeting people, then a franchise that involves serving customers is probably not for you. This type of business, where you are engaging face to face with your customers, can be difficult so think carefully about what type of business would best suit you.

Raising the finance to buy your franchise.

Before you decide on what franchise to invest in, you need to first decide how much capital you have to play with. This may sound strange, finding the money before the business, but there is a reason for it. Imagine attending a business franchise seminar or exhibition. You spend all day going round the stalls and stands and set your heart on one particular franchise which costs £20,000 to purchase. You go away and start to see if you can raise this kind of capital, only to realise that there's not a cat in hells chance of you finding this quantity of money. On the other hand, imagine going to one of these exhibitions knowing exactly how much money you have to play with. Now you are ready to choose the right franchise that is within your budget, something that is very important.

Some banks will lend you the money to buy the franchise depending on the economic climate, your previous track record, your financial standing and of course your business plan. Whilst it is possible to get a good business loan rate, there are better ways to raise the money. The first method is to borrow from friends or family. The reason why this is usually a better way is:

1. The risk is significantly reduced. You will not have to put forward your
property as security.

2. They are more likely to accept a longer repayment term and lower repayments.

3. They will not expect a large return for lending you the money.

Whilst all of the above are positive aspects, if you fail to make back any payments that are owed you then you are likely to lose close friends and family and sometimes things can even end up in court.

So, probably the best way to raise the finance is through friends and family, but make sure you proceed with caution!

How To Jump Start Your Business.

noreply@blogger.com (Harshil) — Tue, 06 Jan 2009 21:40:00 +0000

All you have to do is to get out and do some work. Most entrepreneurs start out without a clue; a hundred thousand questions and clueless ness. A knock on your head can just be the thing that might push you to jump-start your business. Here are some quick tips that can jump start your business:

Sell First, Advertise later: Most entrepreneurs still follow the herd, don’t they? They look to advertise. I have nothing against advertising; it works for me sometimes. But to get that jump-start and to see cash flowing in relentlessly, it is safest, cheapest and most effective to hard-knock doors and get your business.

Later, you can move on for advertising in your local B2B/B2C directory and the local search engines. Advertising in the right place through the right medium also attracts the right kind of customers.

Have a customized web page and email id: Having a free email id does not leave a good impression on your visiting card is not even close to being professional. Since most of the communication and business happens over the internet, having a webpage of your company that describes what your business is all about and having a customized email will pay you in leaps and bounds.

Go creative: Think of new ways to get business. Corporate Tie-ups, strategic joint ventures, events and exhibitions are just the tip of the iceberg. What are you thinking about? Make the right clients contact you by tapping the correct market potential. Do not limit yourself to advertising in the local newspaper or in the local directories.

Advertising on radios and on the internet through banner ads and Google ad words is fast catching up.

Build channels – one example of a channel can be a fully automated with expert content, search engine marketing driven and sales oriented e-commerce site; develop a sales force and train them well – channel number 2; tie-ups and joint-ventures can be channel 3; and so on.

Let your customers do the talking: Dedicate a portion of your website to reviews given by satisfied customers about the service you have provided to them. Give out references to new clients about your extremely satisfied customers. This actually builds your image and your customers do the marketing for you. So treat your customer with undivided attention and care.

Networking: Networking is the key to build on any business. Join online communities, forums and featured group that are in the same line of business as yours – linked in is a good start. You could consider joining others like Ryze too. Exchanging of views may throw up new ideas that you would wan to experiment in your business.

8 Common Mistakes Made By Prospective Franchisees

noreply@blogger.com (Harshil) — Fri, 02 Jan 2009 13:27:00 +0000

Over Investment

Over investing can destroy a project or business completely. Before investing any time or money into your franchise, create a basic budget plan to keep yourself on track. If you do not want to purchase software, there are plenty of websites, like Mint.com, that offer free budgeting tools.

Not Having a Business Plan

You never really know what is around the corner when you are starting your own business. Even so, having a basic business plan can help you a lot in the end. Where are you hoping to open your store? How many employees are you planning to hire? How much time, money, and patience are you willing to sacrifice? These are all questions you should be asking yourself when you develop your business plan.

Not Understanding the Franchise Agreement

The agreement you sign with a franchisor – the Franchise Disclosure Document (FDD) – contains massive amounts of information, but as a franchisee, you must understand everything it contains. When you sign the document you are making a legal agreement with the franchisor, so do not be afraid to seek out help from a legal expert.

Not Contacting Other Franchisees

When you are researching a potential franchise to invest in, you should always contact at least a few different franchisees. They can serve as good resources as they will likely give you blunt and honest answers.

Picking a Location far from Home

Although it may seem like a small sacrifice at first, having a long commute to the location of your store can wear you thin after awhile. There may be times when you get home only to have to turn around and go back to the office. Remember that you have to consider your own time – not to mention high gas prices.

Not Taking Training Seriously

When you attend training, you will want to make sure that you are well prepared and pay plenty of attention. In the training classes, the franchisor will explain how to be successful at owning your franchise. If you are too tired or miss a day then it can hurt your chances of being successful.

Forgetting to Balance Time

Committing yourself to starting your own franchised business usually means new opportunities, exciting change, and long hours. If you have family or friends that you are used to seeing often, know that time with them will be cut shorter when you are just getting business started. Try planning to meet with your loved ones at scheduled times so that you can see them on a regular basis.

Expecting Everything to be Easy

With all the talk of a looming economic recession, you need to realize that getting your business up and running will be a struggle. Prepare for tough times financially and emotionally. Remember that opening any business requires a lot of hard work, but the benefits of being your own boss can definitely make up for it.

How Can I Become An Entrepreneur

noreply@blogger.com (Harshil) — Fri, 26 Dec 2008 11:20:00 +0000

The word entrepreneur commands a certain respect. People relate it to someone who is responsible for the operation and organization of the business, as well as in assuming the risk for a venture.

This person is the one who possesses entrepreneur skills and makes the best entrepreneur strategies. He is the person who makes more marketing profits for the business. Being the risk taker means that you have to venture into the unknown to generate more sales and revenues for the business.

Most of us want to become an entrepreneur. The contacts will develop and the power of influence will acquire is something that most of us want to achieve. Entrepreneurs have the reputation for being people of power. When you know how to work your talents, entrepreneurship is one of the best ways to have a profitable life. A smart person is also one who knows the ins and outs of the competitive word of marketing.

If you are opting for entrepreneurship, these few tips might aid you:

1. You should know what you want. Set your goals and work hard to do whatever it takes to achieve it. Avoid jumping from one opportunity to the next without getting the full feel of it before moving on to a new venture.

2. Patience is a virtue. This means that if you want be successful, then you should exercise some tolerance to withstand life is small annoyances. Always remember that failure is a lesson learned. A ship is safest in the harbor, but that is not what ships are for. Remember this quote by Werner Ulrich because it tells us that only when we face challenges do we reach our full potential.

3. Never hesitate to ask for help. Everyone needs some assistance along the way, and who better to learn from than an entrepreneur with entrepreneur skills. Ask a willing person you know and trust to guide you with current information and tips on how to become successful.

4. Have the initiative to bring together the resource or capital to generate a commodity with hopes that such a production will lead to a profitable business venture.

5. Be equipped with the right knowledge in planning, financing and implementation. With these three tools, you can dramatically get your business off the ground and thrive.

Every one engaged in entrepreneurship usually faces challenges in starting a new business either in innovation or looking for the right opportunity to purchase or get into a franchise. Funding for proposals, application for loans and venture capitals are needed. It during the implementation of the business plan that the game begins. These tips can definitely facilitate you becoming a successful entrepreneur. Hard work and focus will help you reach your goal. With the best entrepreneur strategies, success is a guarantee. You are in charge of your own success. You are the maker of your own fate!

How To Budget Your Money When Starting Up A New Business

noreply@blogger.com (Harshil) — Mon, 17 Nov 2008 08:01:00 +0000

Many people have dreams of eventually starting up their own company one
day. The idea of being your own boss for a job of your dreams is one of the reasons why many people decide to follow this path, but what may start out as a dream may turn up being a financial disaster if you don’t budget your money.

With every story of success, there are five stories of financial disaster of businesses that didn’t work out. Many of the financial hardships that people experience while starting up their own company can be avoided by using a simple budget when planning on money you will need to spend.

One of the most important things to do before starting your own business is to research the market you are interested in getting into. The failure of most new businesses can most commonly be contributed to the owner not doing enough research about the market they are going to enter.

You need to carefully analyze the market you are trying to enter and figure out who are the main businesses’ in it and how you will compare. You must use realistic standards when doing this; you can’t expect as a new business owner that you are going to make a profit during your first year.

With that you have to take into effect that in reality you may not make a profit your first year, and for most new company’s backup funds are essential to continuing the new business.

You also have to ask yourself what you want to get out of your new business, in order to do this you not only have to make short-term goals but also long term goals. Making a budget for short-term and long-term goals will allow you to see your future spending in a big picture.

Besides having backup funds you have to have enough money to get your new business rolling. Many people underestimate the amount of money a new business needs, they do this by overlooking costs they may need. For example if you are purchasing items for a retail store you may forget that you need clothes hangers to hang the clothes in the store.

Many people focus their budget on immediate needs such as inventory and forget the smaller things that may become costly. It is imperative that new business owners have money stored somewhere as a backup for unexpected costs.

New business owners are also known to spend money on things that are unnecessary. Of course you want your new business area to be georgous, with new desks for employees and a new building, but you have to ask yourself if it is really necessary.

Is it absolutely necessary that I am in a new building with new things? If it isn’t you may want to look into different areas to start up, sometimes the best place to start up a new company is in your very own home.

Am I Self-employed Material?

noreply@blogger.com (Harshil) — Fri, 14 Nov 2008 15:47:00 +0000

What It Takes To Run Your Own Business
Employee vs. business owner, it’s a scary dream for most, but attainable.

If you are seriously looking to become self-employed there are a few factors you should consider before taking the leap.

Ask yourself these questions:

· Do I have the long term drive to make my business a success

· Will my values be met by the business I want to build

· Do I know the legal and tax laws required for being self-employed

· If I don’t know how to do something, can I find a career coach
or other help

· Do I have a plan

· Do I need a partner

· Can I continue to pay my bills while I get my business up and running

· What do I know about marketing my business

· Are the products or services I plan to offer wanted by the public and
are people willing to pay me for them

SELF-EMPLOYED IN A BETTER INDUSTRY

Kris was a college-level teacher and now in her 50’s has made a decision to incorporate her interest in writing into a livelier, fun-in-the-sun environment. Searching and not finding employment locally, she is now revamping her resume to highlight transferable skills and looking for freelance work in the islands.

Her Vermont apartment is tiny, and easy to maintain while she’s away in her new career. Her new self-employed goal is to teach journaling workshops at various resorts and spas. Because of her love for islands, she is narrowing her search to destination resorts on islands only. She can expand her possibilities and think outside the box by asking what else could she do with her writing skills.

She could expand her own business by offering to teach guests how to write a short play and then performing it during their vacation stay. Or, she could freelance her writing excellence into marketing vacation spots for host companies. She could even write and sell how-to books for other budding writers. Her list of possibilities is endless in a changing market and yours can be too. Just highlight your best skills and take them into an industry you find exciting.

SELF-EMPLOYED WITH A BUSINESS PARTNER

Another woman, Charlotte, from Pennsylvania, is finding the doors to her human resource expertise closing around her. How might she re-traffic her skills and abilities into a new market? She has a stellar background in planning, preparation and all behind-the-scenes work. Not particularly interested in being the front-woman for a company, she can now take her work history and switch gears slightly by becoming a wedding planner, or a consultant for the convention industry.

When asked if she likes meeting and greeting people, her answer was a quick, “No!” So maybe a wedding planner wouldn’t be the best choice for her. Knowing that she is more comfortable behind the scenes, she can now transfer her skills into an environment that needs what she has to offer, and although it may be a different industry, she will still be able to use her gifts well. If you are considering becoming self-employed, do like charlotte did and know whether you are best suited on the front line or behind the scenes. This is a perfect example of the need for a business partner who is better suited with public contact.

SELF EMPLOYED, BUT A MISMATCH OF VALUES
Kevin Manley started out his professional career as an entrepreneur. He formed his own band and toured the United States. He had natural skills in musical talent, stage presence and organization, perfect skills for someone who wants to build a band. To succeed, he says, “You must first have natural musical abilities, a love of center stage and awareness that receiving applause and admiration can be like a drug you will always chase.” When I asked him why he is no longer self-employed in the music industry he explained, “I knew that I needed a home base and really got tired of the traveling.

One day I was putting everything I owned into the trunk of a car, getting ready for our next gig, and realized I had forgotten where I was. I didn’t even know which coast I was on.” Today Kevin is employed as a Public Works Director for a town in Arizona and continues to sing karaoke in Laughlin, Nevada occasionally. He says it’s hard to let go of the rush that audience applause provides, but if your most important value is a regular home life, then business is not for you. If you want to develop your own business, use Kevin’s awareness as a role model and make sure your values match your business.

SELF-EMPLOYED, FIND A PROBLEM, PROVIDE A SOLUTION
Kate Cronan Sawert has made a career out of her interest in the health field. She is now self-employed in the same industry. She says she was disheartened by the American health care system and quickly began planning her own business. She truly believes that the only way she can make a quality difference is by becoming self-employed.

Today she has formed her own company, Self Health, Inc. that provides health education and wellness information to the general public. Her book, Self Health, is in the final stages of production and offers insight into what is causing your energy drains and strategies for healing them. What satisfies her most is the excitement on the face of her clients when they learn that anything is possible regarding their health.

Kate knows that with her own business she can be more problem/solution oriented in her care. She advises anyone considering the option of running his or her own business to be skilled in willingness, tenacity and to have the ability to ask for help. For Kate, her Life’s Work was built around what a problem in her industry. Because health education has become more integrative in the last twenty years, this entrepreneur has found a cutting edge position for her talents, skills and values in her own business. If you want to start your own business, use Katie as a role model; find a problem and provide a solution.

If after careful evaluation of what it takes to operate your own successful business you find that this is the path for you, learn as much as you can from others who have gone before you and here’s to your career success!

Got An Idea, What Do You Do Next?

noreply@blogger.com (Harshil) — Fri, 14 Nov 2008 15:43:00 +0000

So you've got an idea. Join the mysterious world of idea makers, dreamers and wishful thinkers because that's where you are. You are in the twilight zone, a place where ideas never take shape, a place where sweeping changes never sees daylight because they are swept under the proverbial carpet where they lie waiting for an achiever to bring them to life.

Is your idea marketable?
A simple fact of life is, the most brilliant of ideas are nothing more than just that, ideas, until someone with vision turns them into marketable products. Let's face it, the world is full of products that never get to first base, but those products that do make it to the marketplace can make their creator very rich.

With the right idea you can change people's lives for the better. Look at Bill Gates, his vision changed the way the world communicates. Thomas Alva Edison brought the country electricity and started an started the industrial revolution. Robert Abplanalp turned the aerosol can into a household fixture. Robert Adler is credited as co-inventor of the television remote control with fellow engineer Eugene Polley. These and many other industrious inventors were instrumental in how we live today.

Put your idea to the test.
Having a great idea may be brilliant to you but it is worthless without proper documentation that testifies as to when you came up with the idea for your discovery. You must keep an inventor's journal, dated and signed by a witness, where you have written everything that relates to your invention; from first conception and probabilities to a well thought out marketing strategy. This will assure all segments and descriptions are well defined throughout the research and development process as will as presentation for patent. .

Get a Patent.
It doesn't make any difference if you want to manufacture and market your creation or sell licensing rights to someone else, you must first protect your idea by filing a patent with the U.S. Patent and Trademark office. By doing this you are guaranteed no one will steal your creation because all rights to it are exclusively yours.

Do a Patent search.
Before you spend a lot of time and money building a prototype of your product, it is imperative you make a search to see if it already exist. Do a patent search at internet to make sure no one holds a patent for the product.

Is there a need for your product?
You should also check to see if there is a need for your product, is it marketable? Define your target market and do some research to see if people will actually buy it. Once you have defined your market, be sure it is cost effective to be manufactured and distributed. Be sure your unit price is within fair market value limits by comparing your prices with similar products already on the market

Make a Prototype.
Once you have determined that your product is marketable, you will need to make or contract someone to make a prototype. A prototype is simply a working model of your Inventor's Journal account. This is necessary to present to the Patent Office along with any and all documentation. It also serves as a sales tool to present to potential manufacturers as well as distributors and licensees.

Do I Deserve To Be Successful?

noreply@blogger.com (Harshil) — Mon, 10 Nov 2008 06:14:00 +0000

Many factors can come in to play in regards to attaining success. The factors that are known to all but guarantee success are few and very specific, but the number of issues that can delay, deter, and even prevent success from entering into your experience are limitless.

They can be our personal issues, or they can develop from an external source. But regardless of where they derive from, our reaction towards those problems is what will be the deciding factor for each one of us.

What are the factors that deter your success? Time, money, education, self esteem? Are you waiting for the perfect opportunity? The perfect set of circumstances to be in play so you can give everything into making something happen? How’s that been working out for you so far? I will tell you right now, the circumstances will never be perfect.

You will never have enough time. Why? Because you don’t have those things right now. And that is the cause of the actions you have taken up to this point. It’s the cause of the thoughts you have held up to this point. As long as you insist on operating under the same set of guidelines for your life, you will continue to reap the same rewards.

It’s time for you to understand that the life situation that you so crave is just waiting for you to claim it. You have to believe that you deserve success. That success is your birthright and nothing will ever get in your way or stop you from reaching the level of achievement that you set before yourself.

Remove all doubt. Remove all fear. Replace all those negative thoughts with a positive knowing that you are in charge of the direction your life takes. And then go out and do it. With all you heart. No doubt. No Fear. All happiness, because you know. Happy journeys my friends.

12 Deadly Principles Of Business Planning. You Must Know These

noreply@blogger.com (Harshil) — Mon, 03 Nov 2008 15:57:00 +0000

Whether you are running, or planning to run, an offline or online business the traditional basics of achieving business success apply. For instance, it is well-known that a business that has no plan is almost certain to fail. No matter how small a business is, it needs a plan.

A business plan compels you to think before you act. It compels you to find out about your business area before you start; i.e. to research your business area or to establish its groundwork.

A business plan forces you to think hard about your competition and how you are going to beat them in the market. It forces you to establish whether your business idea is worth pursuing. Why start a business that is going to fail? Isn't that stupid?

A business plan forces you to establish the expected costs and revenues of your business, and hence to determine profitability. Why run a business when, at any time, you cannot tell whether or not the business is succeeding? If you don't know your costs or your revenues you cannot compare them together to tell whether your business is succeeding or failing.

An online business is no different from an offline business, when it comes to business planning. It needs a business plan! Yet, how many newcomers do we see trying to make it online without even understanding the concept of business planning? Is it then a surprise that too many fail?

This article discusses 12 fundamental principles that you must understand and use in your business planning if you are going to run a successful business. The principles are as follows...

1. The Requirements Principle

A business plan must comply with the requirements of funding bodies. This is particularly key when you are applying for funding, but is also necessary when you are not applying because the compliance act itself makes the business plan rigorous.

Funding bodies always have requirements that a plan must meet, and some of these are: technological innovation, presence of technical risk, and presence of commercial potential.

2. The Objectives Principle

A business plan must have clearly defined objectives and it must accomplish those objectives. A business plan is a strategic business document, and fundamental to any strategic planning process is the need to have objectives which the formulated strategies must aim to accomplish.

3. The Motivation Principle

A business plan must have clear motivations which highlight its importance. The motivations of a business plan are the reasons for completing the plan. These reasons tell us why the plan is important.

4. The Background Principle

A business plan must be the work of someone with a relevant background (the founder, for a start-up business), and the plan must comply with its author’s background. A business plan should be prepared by the person or team who is going to run the business. For a start-up business, this is critical because the planning process prepares the owner for running the business.

If the planning is delegated to someone else then it is unlikely that the owner will understand the plan sufficiently to be able to implement it. In these circumstances, the owner abandons the plan and does his or her own thing with deleterious consequences for the business.

5. The Detail Principle

A business plan must be sufficiently detailed to inspire confident action when executing the business; yet it must be flexible. A detailed plan is easier to implement than a superficial plan. A detailed plan suggests that the plan has been thoroughly researched and thought over. Detail inspires confidence in the owner of the business (assuming that he or she prepared the plan). A detailed plan should be flexible to accommodate changing times.

6. The Conservatism Principle

A business plan must be conservative. This means that it must always underestimate revenues while overestimating expenses. The reasons for this are underpinned by risk. A business is always executed under uncertainty... we never have all the knowledge we would like to make business success certain.

An immediate consequence of this is the tendency to underestimate cost, only to find that we run out of money at critical times of a business's execution. We also have a natural propensity to overestimate revenues... to dream!

7. The Cash Balance Principle

A business plan must always have a positive cash balance. A negative cash balance means that you plan to run out of money... to be insolvent! If you cannot realistically get the cash balance positive, without padding figures, then this is a sign that the business idea is not worth pursuing.

8. The Insolvency Principle

A business plan must guarantee against insolvency... against running out of cash. There are four ways to do this: conservative estimates so that the business always outperforms its plans, detailed cost identification to minimise omitted costs, contingency planning to accommodate forgotten items, and a positive cash balance throughout the plan.

9. The Risk Management Principle

A business plan must manage risks by convincingly dealing with uncertainty, reducing it to as close to zero as possible. This is simply stating that a business plan must be thoroughly researched, including desk research and field research. The more thoroughly a plan is researched the more it rests on sound facts, knowledge, and understanding, and the less the uncertainty and risk associated with the plan.

10. The Evidence Principle

A business plan must rest on supporting evidence, and guess work must be minimised. Sound evidence increases the reliability of a business plan and reduces the risk associated with it. And the less risky a plan is the more likely it will guide a business to success.

11. The Rigour Principle

A business plan must be rigorous – complete, correct, and reliable. This means that the plan must be derived from a systematic process that attends to all the issues that must be addressed. In particular, the plan must not be rushed. The issues must be sequenced and dealt with, each at the right time.

12. The Collaboration Principle

A business plan must be founded on collaboration (not confrontation) – it must satisfy the collaboration principle. This means that a business plan must be based on the works of others. It must not be opinionated. It also means that a collaborative, rather than a confrontational spirit, must exist in any business planning team if the results of that team are to be worthwhile.

Final Remarks

This article has discussed 12 killer principles of business planning that any plan must satisfy if it is to be taken seriously. Five of such principles are: requirements principle, objectives principle, motivation principle, background principle, and detail principle. These principles are a must for anyone running an offline or online business. If your business is failing it is more than likely that your failure to comply with one or more of these principles is to blame.