Top 5 Tips For A Small Business Start-Up

Copyright (c) 2009 Dr Mark Yates

Economists are gracing our TV screens and newspapers proclaiming that the current economic downturn has finally bottomed out, and that we are about to turn the corner of the current credit crunch.

Irrespective of this opinion, in times of business hardship a great many opportunities for existing and aspiring business entrepreneurs manifest. The opportunity has never been greater for a small business start-up to grow exponentially.

Top 5 Tips For A Small Business Start-Up #1- Research Your Market

Business research has never been easier. Nowadays you can conduct most of your market and competitor research from the comfort of your own home or office computer. Online search engines are your best friends and although I advise caution as to complete accuracy of information, they do offer you a valuable insight.

Conduct a small business review. Identify your competitors and then use Google and other search engines to identify your competitors marketing campaigns and how much they are investing in targeting their online customers. Although online marketing doesn’t include conventional marketing, it does offer a fantastic insight into your competitors business modus operandi.

Top 5 Tips For A Small Business Start-Up #2- Formulate A Strategic Business Growth Plan

Don’t confuse a strategic business growth plan with a conventional business plan. A conventional business plan is generally required when you are looking for some kind of business finance, i.e. a bank loan or external investment. In reality most business owners park their business plan in a dusty cupboard never to be seen again after they have secured their finance. A strategic business growth plan is a much more pro-active working document that should form the foundation of your business growth. The initial foundation stone of this plan is a small business review ideally produced by a proven business growth consultant. This small business review can usually be produced quickly without spending a small fortune.

It should by definition include how you intend generating business, how you will take a share of your competitors business, how much you intend to turnover weekly, monthly and annually, how much your gross and net profits will be. It should also include financial forecasts and profit and loss data.

Two of the most critical issues to address when working with your strategic business growth plan are that;

1. The plan should include key performance indicators or KPI’s as they are known in the business world.

2. The plan should be discussed and analysed by the MD or business owner weekly, followed up by a much more in-depth discussion which should take place every month with the MD, owner, directors, partners, shareholders, investors and senior managers to ensure the KPI’s are being met.

On the basis that very few Small Business Start-Up will have such a corporate hierarchy, you should rely on external or outsourced business support partners to assist. (See top tips for a small business start-up #3 for further information on the right business partners.)

Top 5 Tips For A Small Business Start-Up #3- Find The Right Business Partners

A small business start-up generally lacks the expertise and resources that a medium or large business usually maintains. This means that for the managing director owner of a small business start-up, he or she occupies the loneliest position in the entire business world. It is for this reason that I advise retaining the right business partners. Initially you should appoint a proven business consultant, don’t be confused into thinking this business consultant has to specialise in your particular type of business. Although there are a few business consultants who do specialise in one particular type of business, a very high percentage of business consultants are classed as business generalists.

Obviously if your research identifies a business consultant who specialises in your industry, then that’s a bonus. However I advise that it is more important to appoint a proven business growth specialist as the first of your right business partners. If you appoint a proven growth specialist then he or she will have extensive contacts who can step in and out of your business as and when required without you having to pay full time salaries and executive benefit packages. Your business consultant will want to produce a small business package and a small business guide designed to encourage other business heavy weights to join your business on a part time retainer basis. Investing the time and money to produce this small business package and small business guide will provide far more value than cost.

Effectively your right business partners will be your very own part time low cost board of directors, an asset that many small business start-ups fail to capitalise on.

Top 5 Tips For A Small Business Start-Up #4- Never Step In The Ring Unless You Can Win

Never step in the ring unless you can win is based on the premise of having adequate financial resources. If you enter the business arena as a small business start-up without sufficient funds to get you through the first 12 to 18 months, you will seriously struggle to achieve business success and long term business sustainability. This is one of the main reasons why such a very high percentage of UK small businesses fail within the first 12 months. Appointing your right business partner i.e. a business growth consultant should bring an external source of financial expertise into your business on an as and when required contractual basis. Cash flow is key to any small business start-up for achieving good annual turnover and great profit margins.

Top 5 Tips For A Small Business Start-Up #5- Attack The Market

You’ve formed your own small business start-up, appointed your right business partners now you need to attack the market. Proactive business thinking will always lead to greater annual turnover and a healthy profit ratio. When I say attack the market, I am not being melodramatic. Business, real business is a war, and most wars are won before a battle commences. Being reactive in business will not win the war. Reactive business owners are destined to a live of mediocre business gains.

I only advocate attacking the market when you have integrated the first 4 of the top 5 tips for a small business start-up.

Implementing these top 5 tips for a small business start-up will give you a definitive edge over your counterparts who are also starting their own new business.

Dr. Mark D. Yates The International Business Growth Consultant grows businesses fast in a long term sustainability method. His dynamic business model delivers exponential growth, increased turnover & profit margins. He delivers his business support to small, medium & large businesses in 42 countries. Want to claim his FREE business case files, then visit him at =>http://www.businessconsultancyonestopshop.com or e-mail him at drmarkdyates@aol.com


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March 21, 2010 | Filed Under Small Business Start Up | 1 Comment 

How to Organize a Small Business Start Up

A small business start up marks the beginning of the business which is categorized in small business. A small business can be corporation, partnership or a proprietor owned with a small amount of manpower and funding. In America, a small business start up comprises of less than 100 employees, whereas in UK it has less than 50 workers. In countries like Australia, a small business start up begins with 1-19 employees. A small business start up is identified by its small investment, small turnover and profit and less manpower.

The smallest business start up can begin at home which are termed by the World Bank as Micro-businesses. They usually have manpower of less than 10 employees. Higher versions of small businesses can be general stores, lawyer practice, clinics, private agents, restaurants, free-lance writers and small-scale manufacturing industries.

Advantage of a small business is that it requires less investment. The working hours of such a venture is also less and requires smaller work area. They have a closer relationship with their customers and clients. They are highly independent and flexible to the changing market. Disadvantage of such a small business start up is the high risk of bankruptcy. In absence of strong financial back-up, the business may go into heavy losses, resulting in legal action against the proprietor in case of loan taken.

A small business start up should follow the below mentioned methods for grater success:

Formulating a business plan

For any small business start up, a well defined plan is a must. The final objective of the business should be precise and clear. The requirements should be formulated and the money to be invested should be prudently calculated. Almost equal amount of money invested should be available for back up in case of heavy losses incurred. The amount of man power required and their required qualification and skills should be decided.

Implementation of the Plan

The business plans made initially should be implemented and all objectives set should be achieved. Financially, loans should be taken if self financing is not possible. Most of the banks provide loans for businesses. It is easier to obtain loans for partnership ventures. After the principle amount is obtained, the hiring of man power is done. This is followed by purchasing of all commodities needed for the business to start. The small business start up can now function fully.

Getting customers and Marketing

Getting the right customers is the key to success for all small business start ups. Doing a small research on the market trends and customer needs helps in changing the business strategy for higher profits. Marketing the product of business to the target customers is optional, depending on the type of product. Marketing for a small business start up can be restricted to pamphlets, news papers, and small hoardings.

Expansion of business

Upon attainment of the set objectives, the small business can increase its investments, manpower and productivity. This can be achieved if the small businesses start up earned considerable profit. This can expand the boundaries of the business and reach to a larger group of customers to increase the profit margin.

James Copper is a writer for http://www.marketinglinx.com

March 18, 2010 | Filed Under Small Business Start Up | Leave a Comment 

Small Business Start Up Checklist: 5 Crucial Steps When Starting A Business

Every new business needs a small business start up checklist. This list will not only keep your business running smoothly, it will also help you have more organization in your company.

As an entrepreneur, you might want to do things your way, but it can’t hurt to learn a thing or two from the people who have already gone through the path you’re just about to embark on.

Below is the small business start up checklist compiled from different businesses.

1) Create a Business Plan.

A business plan is the heart and soul of every business. Before starting your business, you first have to know what you want to happen and how you can make that happen. Nothing spells disaster more than a business without a concrete plan.

2) Register Your Business Name.

One of the first things to tick off in your small business start up checklist would be the name of your business. You might not think that this is a big deal, but it is one of the first steps you have to take before you can start operations.

Once you have chosen a name, register it with the appropriate organization. Make sure to think of two or three more names just in case the name you want has already been chosen.

3) Meet Legal Requirements.

Starting a business as an adult is not the same as starting your own lemonade stand when you were in grade school. Included in the small business start up checklist is meeting legal requirements.

Now that you want to legally operate your business, you’re going to have to fill out a few documents and make whatever arrangements are necessary. This also includes obtaining the appropriate licenses and permits.

4) Choose a Bank for your Business.

When starting your own business, you naturally have to choose a bank to help you with your operations. You might need the bank when asking for a business loan or when you need to open a business account.

If you have your own accountants, it is also advisable that you consult with them regarding the bank they are most comfortable and familiar with.

5) Create Risk Management.

You have to be ready for emergencies. In case plan A doesn’t work, be sure to have plans B, C and even D lined up. What are you going to do when your business doesn’t skyrocket as you predicted? How are you going to deal with a security breach?

Risk management depends a lot on the type of business you want to have. However, be sure to consider insurance, backup systems and security systems, just to name a few.

A small business start up checklist is mainly composed of all these things. However, it is also important for you to be meticulous. Nothing is too small to take notice of when it comes to running your own business. Your business may still be small now; but given the right management, it will soon grow to be large and prosperous.

Get your FREE access to the success secrets of the world’s richest and most successful business people. Discover the 7 vital traits of successful entrepreneurs now and take the self-assessment quiz, audio, and video - for free - at http://www.expertpersuader.com/successupgrade.


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    March 21, 2010 | Filed Under Small Business Start Up | Leave a Comment 

    Getting the Small Business Start Up Help That You Need

    When you first decide to start your own small business, you realize you can use all the start up help you can get. The federal government can be a great source for assistance, and shouldn’t be overlooked. They can provide small business start up help in many different ways. This article will discuss three areas that your government offers help in getting your small business off the ground.

    1.      Every small business needs money, and the government can help you get the cash you need in two different ways. The first option available is a loan. Believe it or not, the government provides hundreds of millions of dollars in funding specifically for small business and entrepreneurs. There are a ton of different loans created specifically for special circumstances. For example, low-income businesses, handicapped individuals, military veterans, women owned small businesses, and many more.

    The second option for getting the small business start up funding that you need would be applying for one of the fifteen hundred grants that are available through the fifty-two government agencies. These grants are separated and grouped by state and business category. Some categories include but are not limited to general business, agriculture and real estate. There is also grant money available for research and development of your business. Many of these types of grants start at five thousand dollars and can end in the six figures. The best thing about receiving government grants is that the money never has to be paid back. This kind of small business start up help is like receiving free money.

    2.      So now you’re getting the small business start up help you need in terms of money, but what about other assistance? The government can also help you in this area as well. They offer assistance for small business development, renovation and expansion. There are fifteen hundred different government sources that can provide the needed assistance for your small business.

    The best place to start looking for this kind of information is the Small Business Administration (SBA). You can find out more information by looking in your phone book, online or the help desk at your local library. The government can provide counseling and training to improve skills to help manage and operate your small business. There are some forms and guidelines that are to be completed. Government and private foundations are a good source if you want to find some examples of these forms and more detailed information. These types of books can be found at your local library as well.

    3.  Small business start up help in terms of money and assistance is no longer a concern. You may, however, require advisory services, and the government can help with that also. Advisory services will assist you in improving your management skills and labor management relations. This is very important knowledge that you should know when beginning your business.

    There is so much small business start up help that the federal government can do to get your business up and running. You just need to take the time to find your local sources and get the whole process started. Make sure to take advantage of these offers, since they’re available to you. It’s not everyday someone will hand you free money that will go to making yourself more money. So don’t wait any longer, get the small business start help that you need to make your business successful.

    Alan Mater provides small online business ideas and opportunities to help you work from home. Alan also offers free online training to help you get the support and guidance you need to start and run a successful small work from home business.

    March 18, 2010 | Filed Under Small Business Start Up | 4 Comments 

    Show Me the Money: 7 Cash Stashes for Small Business Start-ups

    As a small business start-up coach, I get asked a lot of questions. The most frequent one: Where do I get start-up cash?

    I’m always glad when my clients ask me this question. Their readiness to take financial responsibility for their business is a sure sign that they’re serious about starting it.

    Not All Money Is the Same

    There are two types of start-up financing: debt and equity. Consider what type is right for you.

    Debt Financing is the use of borrowed money to finance a business. Any money you borrow is considered debt financing.

    Sources of debt financing loans are many and varied: banks, savings and loans, credit unions, commercial finance companies, and the U.S. Small Business Administration (SBA) are the most common. Loans from family and friends are also considered debt financing, even when there is no interest attached.

    Debt financing loans are relatively small and short in term and are awarded based on your guarantee of repayment from your personal assets and equity. Debt financing is often the financial strategy of choice for the start-up stage of businesses.

    Equity financing is any form of financing that is based on the equity of your business. In this type of financing, the financial institution provides money in return for a share of your business’s profits. This essentially means that you will be selling a portion of your company in order to receive funds.

    Venture capitalist firms, business angels, and other professional equity funding firms are the standard sources for equity financing. Handled correctly, loans from friends and family could be considered a source of non-professional equity funding.

    Equity financing is usually a larger, longer-term investment than debt financing and often involves stock options. Because of this, equity financing is more often considered in the growth stage of businesses.

    7 Main Sources of Funding for Small Business Start-ups

    1. You

    Investors are more willing to invest in your start-up when they see that you have put your own money on the line. So the first place to look for money when starting up a business is your own pocket.

    Personal Assets

    According to the SBA, 57% of entrepreneurs dip into personal or family savings to pay for their company’s launch. If you decide to use your own money, don’t use it all. This will protect you from eating Ramen noodles for the rest of your life, give you great experience in borrowing money, and build your business credit.

    A Job

    There’s no reason why you can’t get an outside job to fund your start-up. In fact, most people do. This will ensure that there will never be a time when you are without money coming in and will help take most of the stress and risk out of starting up.

    Credit Cards

    If you are going to use plastic, shop around for the lowest interest rate available.

    2. Friends and Family

    Money from friends and family is the most common source of non-professional funding for small business start-ups. Here, the biggest advantage is the same as the biggest disadvantage: You know these people. Unspoken needs and attachments to outcome may cause stress that would warrant steering away from this type of funding.

    3. Angel Investors

    An angel investor is someone who invests in a business venture, providing capital for start-up or expansion. Angels are affluent individuals, often entrepreneurs themselves, who make high-risk investments with new companies for the hope of high rates of return on their money. They are often the first investors in a company, adding value through their contacts and expertise. Unlike venture capitalists, angels typically do not pool money in a professionally-managed fund. Rather, angel investors often organize themselves in angel networks or angel groups to share research and pool investment capital.

    4. Business Partners

    There are two kinds of partners to consider for your business: silent and working. A silent partner is someone who contributes capital for a portion of the business, yet is generally not involved in the operation of the business. A working partner is someone who contributes not only capital for a portion of the business but also skills and labor in day-to-day operations.

    5. Commercial Loans

    If you are launching a new business, chances are good that there will be a commercial bank loan somewhere in your future. However, most commercial loans go to small businesses that are already showing a profitable track record. Banks finance 12% of all small business start-ups, according to a recent SBA study. Banks consider financing individuals with a solid credit history, related entrepreneurial experience, and collateral (real estate and equipment). Banks require a formal business plan. They also take into consideration whether you are investing your own money in your start-up before giving you a loan.

    6. Seed Funding Firms

    Seed funding firms, also called incubators, are designed to encourage entrepreneurship and nurture business ideas or new technologies to help them become attractive to venture capitalists. An incubator typically provides physical space and some or all of these services: meeting areas, office space, equipment, secretarial services, accounting services, research libraries, legal services, and technical services. Incubators involve a mix of advice, service and support to help new businesses develop and grow.

    7. Venture Capital Funds

    Venture capital is a type of private equity funding typically provided to new growth businesses by professional, institutionally backed outside investors. Venture capitalist firms are actual companies. However, they invest other people’s money and much larger amounts of it (several million dollars) than seed funding firms. This type of equity investment usually is best suited for rapidly growing companies that require a lot of capital or start-up companies with a strong business plan.

    Conclusion

    Start-ups often take more time and money than budding entrepreneurs are prepared to handle. Still, with the right source of cash, there is no reason that you need to live off Ramen noodles in order to get your start-up running.

    Susan L Reid, MS, DMA, Small Business Start Up Coach & Accidental Pren-her? is the soon-to-be author of Discovering Your Inner Samurai. She provides value, inspiration and direction for entrepreneurial women starting up and launching small businesses. For ideas and start up tips, subscribe at http://SuccessfulSmallBizOwners.com for your free e-Zine today. To read about what?s inspiring other pren-hers, go to http://susanreid.typepad.com


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    March 20, 2010 | Filed Under Small Business Start Up | 1 Comment 

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