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How to Determine If Your Business Plan is Impractical 

As you know, it is imperative that you have a practical and achievable business plan in place before you put any money into your small business.

Here are some tips that will let you know that your business plans are impractical.

Your Pricing Is the Lowest

If you project that your sales will be high because you will be pricing your products on the lower side, then you should understand that there could be someone else coming into the market with that same strategy.

This could take the wind out of your sales - and you will have a tough time earning a profit margin if you try to slash your prices any further.

No Marketing Strategy

If you know that you have a product or service that will sell well, then you should also have a strategy to market it.

What is the use in having a solution if people do not know about it?

It is important to allocate a budget for your marketing and advertising expenses in order to develop a strong customer base for your small business.

Projecting Unattainable Sales Figures

If you project very high sales and profit margins, then you will have a tough time in attaining them if there is a sudden downturn in the economy.

Your plan should display attainable figures - and any amount over those figures should be considered a bonus.

No Long-Term Financial Plan

If you have decided to invest money in the business just at the outset, then you are asking for trouble.  You should know that you will still need extra money to run the show over time.

Not having a plan for further financing or to raise cash during an emergency could seriously jeopardize the stability of your business.

It is vital to have a practical and manageable business plan in place, so that you are not bogged down in financial or marketing quicksand once you have started your small business.

Original post by Buzz

5 Tips to Help You Overcome Your Fear of Selling

If you are trying to increase sales for your small business and have found some mental obstacles blocking your path, then it is time for some soul-searching. 

You need to gain insight into your problem, so that you can eliminate it as early as possible.

Here are 5 tips to remember if you frequently succumb to your fear of selling.

1.  Overcome the Fear of Failure

Many inventions would not have taken place at all if their inventors had given up after a couple of attempts.

It is very important to maintain a positive frame of mind and keep trying. You will never realize the sweet taste of success if you don’t have some persistence.

2.  Overcome Your Lack of Technical Knowledge

It is essential that you have the required knowledge about the products that you are selling.

You should absorb whatever knowledge you can from various sources.  You need to have the right information when you approach your customers.

Having the right knowledge will also make you more confident, which will lead to more success, more often.

3.  Overcome Your Lack of Passion

You should be passionate about selling your products.

If you become mechanical, then it is bound to reflect on your sales - and your customers will not be too convinced of purchasing your products and services.

4.  Overcome the Fear of Being Rejected

Many people feel afraid to talk if they have been rejected in the past.

Do not let your mind get stuck in a particular situation in the past, but focus on the future. If you have made mistakes (and we all do!), then learn from them and simply move on.

5.  Overcome Your Fear of Public Speaking

If you are not comfortable speaking in front of an audience, then concentrate on only one face in the crowd and imagine talking to just that person. This will quickly dissipate your fear.

By putting the above points into practice, you will gain confidence and overcome your fear of selling within a short period of time.

Original post by Buzz

How to Ensure That Your Small Business Is Adequately Insured

You might have endured great pains to take your small business to greater heights - but if you do not have adequate insurance protection, then you could lose everything in one fell swoop.

Here are some tips to ensure that you have the right insurance for your small business.

Insure Your Inventory

You should have adequate insurance for your inventory so that in case of any theft or damage to your inventory, you can recover your investment without suffering a loss.

Insure Your Business Property

Just as you have insured your home, you should also insure your business property, especially if you have purchased it.

You should insure it against fire, floods, earthquake, etc., - but study your policy in great detail or get an expert to weed out potential loopholes.

Otherwise, you might find the insurance company pointing them out when you make a claim.

Insure Your Employees

You should also take out appropriate policies for your employees so that in case of any accident or illness, the insurance company compensates them.

This will lessen your financial burden to a great extent.

Insure Yourself

As the captain of the ship, you and your family should also have adequate insurance so that your business does not suffer if you have an accident or become ill.

To cover the worst case scenario, your loved ones should have adequate protection in case you meet with an untimely demise. This will enable them to continue running your business after your death.    

These tips will help you ensure that you have adequate financial security in case there is an unexpected glitch in your small business.

Original post by Buzz

5 Tips to Get That Business Loan

When you apply for a loan for your small business, it is essential that you research and plan your moves in such a way that the bank is more than happy to give you the money.

Here are 5 tips to ensure that you get the business loan you need.

Specify Your Needs in Detail

You should provide specific details to your bank as to where the money that they will be giving you is going to end up.

This will remove any doubt, and will present your case as a genuine one. Present a logical report showing your business’ projected earnings.

You want to make sure the bank is confident that their money is safe in your hands.

Provide Sufficient Guarantees

If you can provide sufficient collateral or can arrange for a guarantor for your loan, then the bank will perceive your loan as a low-risk one. 

If that happens, your chances of getting an approval will increase dramatically.

Maintain a Good Banking Record

If you propose to get a loan from your current bank, then you should maintain a good banking record.

This will impress the bank and they will probably approve the loan. If you previously applied for a loan and paid it off on time, then that will be an added advantage.

Mention Your Credit Rating

If your credit rating is very high, then by all means, mention it in your application.

The bank might ferret out the information from other sources - but if your personal and business finances are on solid ground, then there is no harm in mentioning it.

Mention Your Past to Solidify Your Future

You should mention all your significant business achievements in your application.

This is a positive move, as your bank will realize that they are dealing with a motivated and passionate businessperson - therefore making it easier for you to get the loan.
  
By being honest and specific in your application and by maintaining a healthy financial past, you can look forward to a wealthy future.

Original post by Buzz

How to Start Your Own Business after Getting the Pink Slip

In these tough, competitive times, many companies have started handing out pink slips in a bid to control expenses. There may come a time when you might find yourself at the receiving end.

If this has happened to you, you could think about starting your own small business instead of just looking for another job.

Do Not Panic: Once you are handed that dreaded pink slip, don’t panic!

Take a little time off to calmly think about the options that you have. Let go of all negative feelings before thinking about the future.

Assess Your Experience Against The Current Situation: Make a list of all the skills and experience that you have attained and then compare them with the needs of the current market situation.

Also check as to whether people are willing to pay for those skills.

Start Networking: Utilize all the contacts that you have developed over the years as an employee.

This will enable you to get some quality advice and feedback on your plans.

Make A Time-Bound Business Plan: Once you have decided to start your own business, then you should make a time-bound plan so that your thoughts can be put into action within a specified time frame.

Arrange For Finance: You will need to arrange for financing for your new business.

If you are planning to dip into your savings, then have a sufficient amount of money ready. You’ll need it to finance your business and prop it up for some time.

The above tips can help you to transform from an employee to an employer.

Original post by Buzz

6 Easy Ways to Get a Grip on Your Home Business Expenses

Whether you own a standard business or a small home-based business, you will have to reduce your expenses to boost your profits.

Reducing overhead charges, combining jobs, and targeting a specific market are only some of the most sought-after methods of reducing home expenses.

1. Monitor expenses – If you are not sure of where you are, there are fewer chances of you knowing where you are heading.

When you are sure of where your money is being spent, you can conduct yearly and monthly analysis of your financial condition to ascertain your course of action.

2. Take all tax deductions – There are times when it is important to take tax deductions for housing, cars, food and utilities in your small business.

Very often, tax deductions are the sole reasons why many people purchase businesses in the first place.

3. Cut down on insurance expenses – A major problem many people face with insurance is that they don’t miss it until they need it.

Investing in insurance is good - but make sure you buy only what you require.

4. Buy in Bulk – There are many situations when small business owners are advised to buy in bulk.

Purchasing your work material/items in bulk will save shopping time and traveling expenses.

5. Get into a saving mood – Saving money is more about possessing the needed motivation and diligence than it is about the actual monetary benefits you expect to derive.

6. Reducing Credit Costs – Many small home businesses use personal credit cards, long-term debt, and lines of credit to finance a majority of their operations.

By switching your debt to reduce interest-charging accounts, you can save a considerable amount of money.

There are many facets of owing a home business every entrepreneur should be aware of - one of those being keeping a balance between income and expenses.

Original post by Buzz

Signs That Your Small Business is Heading Towards Bankruptcy

While running your small business, you might go through a lot of ups and downs - but there are some ominous signs that indicate that your business is in trouble.

Ignoring them might soon take you towards bankruptcy. Here are some signs that indicate that all is not well.

Good Sales but No Spare Cash: You might be having good sales, but if your margins have dropped dramatically, then you might find yourself in a tight position every time you need to make a payment.

Review your profit margins immediately. A reduced cash flow is the first indication that your cash pipeline is drying up.

Sales Figures Going South: Compare your sales figures on a monthly or weekly basis. If you notice a continuous downward trend, then realize that you need to take immediate action to stop the slide.

Unpaid Loans: If you are unable to pay back your loans and have ended up taking new loans in order to pay the old ones you are in trouble.

Soon, the interest burden will be too much for your small business to bear.

Consistent Late Payments: If you are unable to make payments to your suppliers and the time gap seems to be increasing, then it is time to pull your socks up and check out the reason for those delays.

Suppliers Avoiding You: You might find that word about your financial predicament has spread around. Once you find that both old and new suppliers are making excuses in order to avoid supplying materials to you, then you should realize that this problem need to be addressed urgently.

So keep an eye on your finances, loan repayments and your profit margins in order to avoid bankruptcy. Take appropriate action as soon as you notice any problems.

Original post by Buzz

Dispelling Common Myths About Starting Your Own Business

If you are an employee of a company and are thinking of making a jump to become your own master based on some preconceived myths, then you need to read this article.

Although starting your own business can be very rewarding, you should make sure that you don’t make the switch based only on fixed notions.

I Will Be My Own Boss

Although this is true, becoming your own boss comes with its own set of problems. These include managing lazy or inefficient staff, hiring and firing employees, dealing with unhappy customers and more.

I Can Take a Break Whenever I Want

This is definitely a myth. Once you really start getting serious about your business, you may find that things don’t run quite as smooth whenever you are not around.

This will put more pressure on you to stay in control; and at time, you won’t even be able to think about taking a break.

No More Overtime

This is another myth that will soon bite the dust, especially if you are into retail. You will find that there are tons of issues pending every evening, which seem to be increasing even after you have put in extra time and effort.

This will result in you working even longer hours than what you would have put in at your old company.

No Nightmares of Your Grumpy Boss

You will still have nightmares. But your grumpy boss will be replaced by grumpy clients who may refuse to pay you, or your banker banging on your door asking for their loan back.

Even though the grass always seems greener on the other side, it can also be slippery - so keep these points in mind before you go in search of another pasture.

Original post by Buzz

Getting Started On a Good Service Business

Do you feel that you have small business expertise along with customer service experience? If the answer is YES, then go ahead and use it to start your own service business!

You don’t have to be a genius to start a service business. There are no restrictions on sex, age, experience, education or financial resources – all you really need is a passion for helping people.
People generally look for services that can enhance their business or personal lives. Today’s hectic lifestyles compel lots of people to look for a service to reduce work-related stress. That’s why personal service businesses like tutoring, cooking, travel and tourism and hospitality can really be successful.

You can even have a service business that includes management of these services, employing professionals who have experience in these areas to actually do the work.

Getting Started

Before starting a service business, you need to think and plan well. Here are some tips to starting a good service business:

• Concept - Initially set up a strategy, analyzing the skills that you have that are in demand. Think of them in the form of service, and you may be surprised with the results.

• Forms of service business – Service business can be part-time, full time or seasonal. Part-time service businesses are usually easy to start because they don’t require a full-time commitment. If you want to test the waters and reduce your financial risk, this will give you time to decide whether you would like to continue or switch over to another service business. A seasonal service business is good for those who only want to work some part of the year and then relax.

• Investigation - Before you finalize your decision, do your homework! Conduct research and understand the needs of the market, making sure that you study your target customers and the competition.

If you like working with people and long to be your own boss, starting a service business just might be the answer you’ve been looking for.

Original post by Buzz