When starting a small business there's much to think about. Here's a few tips to help you focus in on what is important.
Understanding your market is important, in that by doing so you will not only generate business, but understand how much profit you can expect to make on your sales.
Don't be shy about making a profit- it's why most of us are in business. If, for example, a customer says they can "get something cheaper at XYZ giant retailer", explain to them the advantages of your products/services, and that you are not in business to compete with XYZ. Even if the products you offer are similar, you probably have advantages in personal service, location, shopping convenience, etc. If the customer is insistent that price is the key to their decision, as a business owner you need to decide if their business will generate an acceptable profit, or if you should walk away. Keep in mind that if you cut your price word will spread and it will be difficult to recapture your present price level. Generally our policy is to offer specials on a limited selection for a fixed time, to generate new business. We don't cut our prices in response to isolated comments.
If you are a retailer, do invest as much as you can afford in a point of sale system, preferably a fully integrated one. A good system enhances your ability to manage your business in several ways- customer service, inventory management, and pricing to name a few.
Do gain a good handle on your business processes- purchasing, accounting, inventory control, pricing and gross margin. Marketing and customer service are critical, but increasing sales doesn't benefit the business unless those sales are generating bottom-line profits. Set realistic goals not only for sales volume, but also for average gross margin, inventory turns, shrinkage, spoilage/obsolescence, operating expenses, etc. This will refer back to the business plan George mentions above. Monitor at least quarterly, if not more frequently.
Engage people with complimentary skills in your business. If you are a marketing/customer service oriented creative person, engage a number cruncher. You'll enjoy the business more and avoid pitfalls.
Showing posts with label Starting A Small Business. Show all posts
Showing posts with label Starting A Small Business. Show all posts
Monday, March 19, 2012
Monday, October 31, 2011
How To Get Your New Small Business Off To A Good Start
Here are some tips:
TASTE, TRENDS AND TECHNOLOGY
What does your research indicate is the trend in your field? Will it stay the way you are currently offering supplies and services or will it change? This item covers the developments you expect for the next few years. Evan a 'perfect' business can become obsolete overnight due to future developments. Specify a 5 year forecast of your field in your area.
SALES REVENUE FORECAST
Have you developed these targets? This section shows your estimates of future sales revenue for your business. Your strategic plan, needs to spell out the specific actions you will take to achieve your forecast sales revenues.
DIFFERENTIATE YOUR BUSINESS FROM THE COMPETITION
How does your business differ from the competition's strong and weak points. Again, remember to carefully look at your business from the customer's perspective. If you're not sure how your pricing policies compare to the competition, here are some guidelines. Most people associate high prices with high quality and extra service, while they associate low prices with low or average quality and minimum service. Make sure you provide extra quality and service if your prices are higher than your competition or make sure that your prices are lower if your quality is average and your service is minimum.
DECIDE HOW TO REACH CUSTOMERS
Once you describe your target customer, it's easier to create a list of possible ways to reach that person. One of your jobs as a businessperson is to decide which of all the possible methods of communication will give you the most exposure for the least cost in money or time.
EVALUATE THE RISKS FACING YOUR BUSINESS
COMPETITION: Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don't minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.
PIONEERING: If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area. How will you avoid going broke trying to develop a market?
CYCLES AND TRENDS: Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile?
SLOW TIMES: Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is ?
OWNERS EXPERTISE: Nobody knows everything. How do you plan to compensate for the knowledge you're short on?
Write your risk analysis by first thinking of the main dangers your business faces. This shouldn't be hard, as you have probably been concerned about them for some time. Some of these may be on the list set out above; others will be unique to your business. Once you have identified the principal risks facing your business, write out a plan to counter each. But don't bog yourself down worrying about all sorts of unlikely disasters.
Above contribution By Kenneth Larson
TASTE, TRENDS AND TECHNOLOGY
What does your research indicate is the trend in your field? Will it stay the way you are currently offering supplies and services or will it change? This item covers the developments you expect for the next few years. Evan a 'perfect' business can become obsolete overnight due to future developments. Specify a 5 year forecast of your field in your area.
SALES REVENUE FORECAST
Have you developed these targets? This section shows your estimates of future sales revenue for your business. Your strategic plan, needs to spell out the specific actions you will take to achieve your forecast sales revenues.
DIFFERENTIATE YOUR BUSINESS FROM THE COMPETITION
How does your business differ from the competition's strong and weak points. Again, remember to carefully look at your business from the customer's perspective. If you're not sure how your pricing policies compare to the competition, here are some guidelines. Most people associate high prices with high quality and extra service, while they associate low prices with low or average quality and minimum service. Make sure you provide extra quality and service if your prices are higher than your competition or make sure that your prices are lower if your quality is average and your service is minimum.
DECIDE HOW TO REACH CUSTOMERS
Once you describe your target customer, it's easier to create a list of possible ways to reach that person. One of your jobs as a businessperson is to decide which of all the possible methods of communication will give you the most exposure for the least cost in money or time.
EVALUATE THE RISKS FACING YOUR BUSINESS
COMPETITION: Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don't minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.
PIONEERING: If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area. How will you avoid going broke trying to develop a market?
CYCLES AND TRENDS: Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile?
SLOW TIMES: Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is ?
OWNERS EXPERTISE: Nobody knows everything. How do you plan to compensate for the knowledge you're short on?
Write your risk analysis by first thinking of the main dangers your business faces. This shouldn't be hard, as you have probably been concerned about them for some time. Some of these may be on the list set out above; others will be unique to your business. Once you have identified the principal risks facing your business, write out a plan to counter each. But don't bog yourself down worrying about all sorts of unlikely disasters.
Above contribution By Kenneth Larson
Monday, January 24, 2011
What Are The Hottest Ideas Or Trends For Small Business Start-Ups?
Below are the top 10 observed as "Hot" recently on the SCORE airwaves:
** On line administrative assistant
** Services to the elderly- transportation, errands etc
** Pet Care and Training Services
** Federal government contracting to tap stimulus funding coming through 123 federal agencies in almost every field of endeavor
** "GREEN " Environmental initiatives in almost every venue
** Maintenance, Repair and upkeep of foreclosed properties
** Non-profit organizations for community development chasing grants
** Self-Help Guides for Business
** Training on all aspects of small business Management
** On-line Books
Successful small businesses are developing enterprises in these fields through market research and business plans to deliver unique products and services - then pricing them and comparing them to the existing market, the competition and client demographics to determine feasibility before applying for financing and launching an enterprise.
** On line administrative assistant
** Services to the elderly- transportation, errands etc
** Pet Care and Training Services
** Federal government contracting to tap stimulus funding coming through 123 federal agencies in almost every field of endeavor
** "GREEN " Environmental initiatives in almost every venue
** Maintenance, Repair and upkeep of foreclosed properties
** Non-profit organizations for community development chasing grants
** Self-Help Guides for Business
** Training on all aspects of small business Management
** On-line Books
Successful small businesses are developing enterprises in these fields through market research and business plans to deliver unique products and services - then pricing them and comparing them to the existing market, the competition and client demographics to determine feasibility before applying for financing and launching an enterprise.
Monday, December 13, 2010
30 Do’s and 20 Don’ts in Starting a Small Business
Small scale businesses are easier to set up compared to the middle or large scale businesses that require more time, feasibility reports, adequate financing, logistics and manpower development. Small is beautiful. For a small business enterprise, with careful planning and little resources deployed; success is always guaranteed. However, the law of success must be fully obeyed in order to get the desire result. This law has the do’s and don’ts. Enjoy the benefit of a booming business following the “do’s” and avoid the un-pleasant sanctions from the “don’ts”
30 Do’s
1. Start a business venture you know more about.
2. Separate business income from personal income
3. Always save and spend less than the income generated.
4. Pay the tithe of your business.
5. Buy when people sell; sell when people buy.
6. Learn and gain more experience from your business.
7. Think before you buy!
8. Make discoveries; find out more about your business.
9. Give more time and attention to your business.
10. Hire the best staff for your business. No sentiments.
11. Always keep a daily record of income and expenditure.
12. Be a time manager; be punctual always.
13. Be courteous and show care and love to your customers.
14. Add more value to your products; give more.
15. Induce buyers with tempting offers.
16. Offer after sales service; the customer is a king.
17. Offer money back guarantee for your products.
18. Use the feedback to correct the mistakes. Listen more!
19. Set a standard for your business.
20. Get branded. Be known for your unique offers.
21. Train and re-train your employees.
22. Motivate your staff daily (reward progress & achievement)
23. Shower more praise and be economical with criticisms of staff.
24. Be a leader by example, not a “bulling” boss.
25. Think positively, believe in yourself and your team.
26. Show more love and attention to your workers.
27. Develop work ethics, use official line of communication.
28. Make your work your hobby; enjoy yourself.
29. Learn to delegate authorities; create time to think.
30. Register your business, pay tax and operate legally.
20 DON’TS
1. Don’t personalize your business; solicit staff ideas.
2. Don’t be over worked; create leisure time.
3. Avoid gossip, backbiting, and undue favoritism to staff.
4. Avoid compulsive purchases; plan and budget for the things to buy.
5. Don’t buy, if you only need it for a while; rent it or lease it.
6. Don’t be too bureaucratic in your operations.
7. Don’t abuse business goodwill; pay off creditors.
8. Don’t build castles in the air; don’t spend unearned profit.
9. Don’t kill the chicken that lays the golden egg; encourage growth.
10. Don’t be afraid of competition; be innovative and add more value.
11. Don’t be afraid to expand or diversify when necessary.
12. Avoid taking loans or overdrafts; always look inwards.
13. Don’t offer or take bribes; be professional and stand out.
14. Don’t rush into signing agreements, contracts, etc until you are satisfied or seek legal experts.
15. Don’t give out postdated cheques; it’s risky.
16. Don’t be too tight fisted; reward excellence in your staff.
17. Don’t be too rigid; encourage advertisement, publicity and training.
18. Don’t encourage family members’ interference with your business.
19. Don’t employ too many staff and owe; avoid duplication of activities.
20. Don’t create disputes for staff; have clearly spelt out organizational structure.
MONEY IN YOUR HAND
Money hate wasters; but love givers.
Money talks big; dumb when buried.
Money grow with thinkers; malnourished with wishers.
Money defeats poverty; but poverty kills the poor!
The above article courtesy of Get-Success.Biz
30 Do’s
1. Start a business venture you know more about.
2. Separate business income from personal income
3. Always save and spend less than the income generated.
4. Pay the tithe of your business.
5. Buy when people sell; sell when people buy.
6. Learn and gain more experience from your business.
7. Think before you buy!
8. Make discoveries; find out more about your business.
9. Give more time and attention to your business.
10. Hire the best staff for your business. No sentiments.
11. Always keep a daily record of income and expenditure.
12. Be a time manager; be punctual always.
13. Be courteous and show care and love to your customers.
14. Add more value to your products; give more.
15. Induce buyers with tempting offers.
16. Offer after sales service; the customer is a king.
17. Offer money back guarantee for your products.
18. Use the feedback to correct the mistakes. Listen more!
19. Set a standard for your business.
20. Get branded. Be known for your unique offers.
21. Train and re-train your employees.
22. Motivate your staff daily (reward progress & achievement)
23. Shower more praise and be economical with criticisms of staff.
24. Be a leader by example, not a “bulling” boss.
25. Think positively, believe in yourself and your team.
26. Show more love and attention to your workers.
27. Develop work ethics, use official line of communication.
28. Make your work your hobby; enjoy yourself.
29. Learn to delegate authorities; create time to think.
30. Register your business, pay tax and operate legally.
20 DON’TS
1. Don’t personalize your business; solicit staff ideas.
2. Don’t be over worked; create leisure time.
3. Avoid gossip, backbiting, and undue favoritism to staff.
4. Avoid compulsive purchases; plan and budget for the things to buy.
5. Don’t buy, if you only need it for a while; rent it or lease it.
6. Don’t be too bureaucratic in your operations.
7. Don’t abuse business goodwill; pay off creditors.
8. Don’t build castles in the air; don’t spend unearned profit.
9. Don’t kill the chicken that lays the golden egg; encourage growth.
10. Don’t be afraid of competition; be innovative and add more value.
11. Don’t be afraid to expand or diversify when necessary.
12. Avoid taking loans or overdrafts; always look inwards.
13. Don’t offer or take bribes; be professional and stand out.
14. Don’t rush into signing agreements, contracts, etc until you are satisfied or seek legal experts.
15. Don’t give out postdated cheques; it’s risky.
16. Don’t be too tight fisted; reward excellence in your staff.
17. Don’t be too rigid; encourage advertisement, publicity and training.
18. Don’t encourage family members’ interference with your business.
19. Don’t employ too many staff and owe; avoid duplication of activities.
20. Don’t create disputes for staff; have clearly spelt out organizational structure.
MONEY IN YOUR HAND
Money hate wasters; but love givers.
Money talks big; dumb when buried.
Money grow with thinkers; malnourished with wishers.
Money defeats poverty; but poverty kills the poor!
The above article courtesy of Get-Success.Biz
Tuesday, February 2, 2010
The Highs And Lows Of Starting A Small Business
Book - Brand New Day - The Highs and Lows of starting a small business by Lara Solomon
This book is a great read if you are having one of those days where nothing is going right, you feel that you are never going to succeed, and everything bad happens to you, and you can get nothing right.
It is a diary of an Australian female entrepreneur over the period of 4 year from when she first quit her job to having a successful business. It shows that the bad things that you think only happen to you .... do in fact happen to others, and no it's not your fault. Unfortunately small business can be like that.
Lara gives a very open and honest account of her business with details each month of how she feels, how much cash she has in the bank and how her staff are going - in 1 year Lara had staff turnover of 20 people for 4 roles!
It is a very inspiring read, and will definitely motivate you to get up and get back there fighting!
To get the book for yourself go to:
Brand New Day
This book is a great read if you are having one of those days where nothing is going right, you feel that you are never going to succeed, and everything bad happens to you, and you can get nothing right.
It is a diary of an Australian female entrepreneur over the period of 4 year from when she first quit her job to having a successful business. It shows that the bad things that you think only happen to you .... do in fact happen to others, and no it's not your fault. Unfortunately small business can be like that.
Lara gives a very open and honest account of her business with details each month of how she feels, how much cash she has in the bank and how her staff are going - in 1 year Lara had staff turnover of 20 people for 4 roles!
It is a very inspiring read, and will definitely motivate you to get up and get back there fighting!
To get the book for yourself go to:
Brand New Day
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