So you have chosen your desired business, you have found the perfect location and you have decided exactly what you want from your new venture. Sounds like you are part way to making your dream of owning your own business into a reality. So what’s next? Your formal statement and set of business goals of course.
I am indeed referring to your business plan; the most important document you will produce to do with your business. Your business plan will record everything that you are planning to achieve with your business and how you intend to do this. It acts as your decision making tool and should be realistic in terms of what you are going to do with your business.
There is no fixed content to a business plan; you don’t have a list of what has to be placed within your plan. The content and format of your business plan is determined by your business goals and the audience to which you are writing your business plan for as well as your target market for your business. Your plan will also draw on a wide range of knowledge from many different places such as finance, human resource management, intellectual property management, supply chain, operations and marketing.
Your business plan, as well as setting the guide for your business, is also used to secure the external funding for your business. The way in which this is done depends on the type of funding that you are hoping for. If you want debt finance, for example in the form of a bank loan, then within your business plan you must demonstrate how you are planning to re-pay this loan to show that your business has the ability to re-pay the loan. If you are hoping to secure equity finance then your business plan needs to explain why current resources, upcoming growth opportunities and sustainable competitive advantage will lead to a high valuation.
In order to attain any form of business start-up finance you will need to have a well thought out and structured business plan. This is due to the fact your business plan will demonstrate to a potential investor or lender whether your venture has the potential to succeed. They will want structured and realistic evidence that you can make your business work. Without this a lender or investor will not give you the start-up finance your business needs to succeed as they won’t want to take the risk.
Your business plan will need to show the strategy, marketing and financial forecast of your business. Your strategy being why and how your plan will work and your marketing being the process by which your business will decide what it wants to sell, to who and when and how.
One way in which you should produce your business plan is in certain stages such as starting with the most vital part of your plan; your executive summary. This is an overview of your business. Many lenders and investors make judgements based purely on this aspect of your business plan.
Finally it should be noted that your business plan is also on going. It is a working plan that can be added to throughout your business; keeping everything that you do well documented.
Helen is the web master of Angel Start-ups, home of all your Business Plan Writing needs for Entrepreneurs.
Monday, 17 March 2008
Business Finance
So you want to start up a new business? You’ve done your research into the existing businesses and checked out your competition whilst gaining some hands on experience along the way. You’re armed with your business plan, outlining your every move from your objectives, strategies, and target market to your financial forecast. There’s just one little hurdle left to leap over, the decision and arrangement of business finance.
More and more businesses and new ventures are failing to get anywhere past the starting line. There are two main reasons why most businesses fail; poor management plans and inadequate business capital, which is why raising money is important in the early stages of a business.
So why is this need for finance so important? As a new business you will need not only a place for your business to be housed in but also all of the necessary equipment that will be needed to make sure your business is running to its fullest. This start up capital will be used to pay for:
• The renting/buying of a premises/office space, which will require payment of three months in advance.
• Any machinery or office equipment
• Business services such as insurance
• The purchase of stock
• Wages and salaries
• Any financial cover you may need while waiting for customers to use your business
In order to gain the correct business finance and to make sure that people will be willing to invest in your business it is essential to have a well structured and developed business plan. It should state how your business will be different from the competition, why people will use your business and how you will supply your customers with what they require. Research has been conducted that has found companies with a structured business plan stating their overall goals and how they plan to move their business towards them make a considerably higher profit than those that don’t.
Most avenues that you chose to go down in order to secure business finance won’t come near your business without this business plan. So what are your options when it comes to business finance? There are many options open to you but that doesn’t mean that all of them are right for you.
One of the first places that people go to for business finance is there bank. Although banks are still the most common form of business finance it doesn’t automatically mean they are the best. All banks vary in terms of what they can offer start-up businesses, so it is important to talk to a number of them before making a decision. Banks will also expect you to put some of your own money into the business; as a new business venture you may not be able to afford this.
Another form of business finance is asset financing. This is a line of credit that is secured by assets such as real estate. So as a new business venture you can use these assets as collateral to obtain capital. However if payments aren’t made your assets may be seized.
An ever popular choice of Business Finance for a new business venture is a business angel. Business Angels are called this because they often save struggling firms with both finance and advice when no one else will. Angel investors understand the needs of a new business through there own experience and are able to advice and aid the companies in many ways. Business angels are successful entrepreneurs or executives. With their skill, luck, careful planning and good management; they have turned many businesses into profitable ones.
Finally there are venture capitalists who are private investors for financing new or growing businesses and even struggling established businesses. Even though they are high risk investments they can offer the potential for above average returns and/or a percentage of ownership of the company.
Helen Cox is the web master for ARCH Entrepreneurs, home of all your business finance needs.
More and more businesses and new ventures are failing to get anywhere past the starting line. There are two main reasons why most businesses fail; poor management plans and inadequate business capital, which is why raising money is important in the early stages of a business.
So why is this need for finance so important? As a new business you will need not only a place for your business to be housed in but also all of the necessary equipment that will be needed to make sure your business is running to its fullest. This start up capital will be used to pay for:
• The renting/buying of a premises/office space, which will require payment of three months in advance.
• Any machinery or office equipment
• Business services such as insurance
• The purchase of stock
• Wages and salaries
• Any financial cover you may need while waiting for customers to use your business
In order to gain the correct business finance and to make sure that people will be willing to invest in your business it is essential to have a well structured and developed business plan. It should state how your business will be different from the competition, why people will use your business and how you will supply your customers with what they require. Research has been conducted that has found companies with a structured business plan stating their overall goals and how they plan to move their business towards them make a considerably higher profit than those that don’t.
Most avenues that you chose to go down in order to secure business finance won’t come near your business without this business plan. So what are your options when it comes to business finance? There are many options open to you but that doesn’t mean that all of them are right for you.
One of the first places that people go to for business finance is there bank. Although banks are still the most common form of business finance it doesn’t automatically mean they are the best. All banks vary in terms of what they can offer start-up businesses, so it is important to talk to a number of them before making a decision. Banks will also expect you to put some of your own money into the business; as a new business venture you may not be able to afford this.
Another form of business finance is asset financing. This is a line of credit that is secured by assets such as real estate. So as a new business venture you can use these assets as collateral to obtain capital. However if payments aren’t made your assets may be seized.
An ever popular choice of Business Finance for a new business venture is a business angel. Business Angels are called this because they often save struggling firms with both finance and advice when no one else will. Angel investors understand the needs of a new business through there own experience and are able to advice and aid the companies in many ways. Business angels are successful entrepreneurs or executives. With their skill, luck, careful planning and good management; they have turned many businesses into profitable ones.
Finally there are venture capitalists who are private investors for financing new or growing businesses and even struggling established businesses. Even though they are high risk investments they can offer the potential for above average returns and/or a percentage of ownership of the company.
Helen Cox is the web master for ARCH Entrepreneurs, home of all your business finance needs.
Advice for new Businesses
Many businesses fail within their first five years. A few of the most common reasons as to why they fail are listed below:
• Procrastination – business owners often think they will deal with a matter later but tend to forget about it altogether. Whether it is advice about your business or marketing plans, advice on the finance that you need or advice on promotion. However, if you start leaving invoices from your suppliers you could end up with severe cash flow problems, which may overwhelm your business.
• Customer Complacency – In business there is only customers and suppliers. You should concentrate on building up a loyal customer base and then maintain their loyalty
• Location – a key to any successful business. For example having a five star restaurant in the middle of an industrial estate wouldn’t gain you your target market meaning you wouldn’t be bringing in enough money for your start-up expenses and on going expenses.
• Insufficient funding – you need to have sufficient funding to last six months, whilst you get your business operational.
Every new business needs money when they are starting up. This money will cover start up costs that are needed in order to by necessary equipment, get your workplace established and to cover your marketing costs all before your first sale is even made. When your business is fully up and running and you are taking in trade you will also need cash to pay bills and keep your business going.
There is a range of finance options open to you ; choosing the right one is the hard part but the most essential thing you will need to do for your business. Your business plan will help you do this as it is a roadmap for future development and crucial for not only gaining finance but also for getting attention and interest in your business.
A few forms of business finance that are availably to you are:
• Bank loans
• Credit cards
• Family and friends
• Venture capitalists
• Business Angels
• Personal savings
• Home equity
As well as sorting your business finance out another important decision that any business has to undergo is choosing a name for their business. This can often be a creative and enjoyable process but you need to get it right as customers will deduce a lot from your business name; remember first impressions count. You should choose a name that reflects your business strategy and not individual personality.
Another factor that needs your attention is the question of new staff. You need to weigh up whether you need new staff; thinking as far ahead as you can. You should ask yourself if you are taking on new staff to let your business grow, to replace someone, to get more of a handle on increased work load, do you want them to have new skills and also if you have enough room and equipment to cater for new staff.
There is a lot to take on board when setting up your own, new business. Everything has to be done just right, which is why there is so much planning involved; if you get things wrong at this stage your business has the likelihood to fail. This is why you need to make sure that you not only plan well but also keep records of exactly what is going on in your business such as accounting. Your accounting needs will depend on the size, type and sector of business your venture is in. It is your responsibility to make sure your business keeps accurate records.
When your business is up and running it is essential to plan and tightly manage your financial performance and stock control. Your stock control shows have much stock you have and allows you to keep track of it. You need to have the right amount of stock in the right place.
Helen Cox is the web master of Angel Start-Ups; for all your Business Advice needs
• Procrastination – business owners often think they will deal with a matter later but tend to forget about it altogether. Whether it is advice about your business or marketing plans, advice on the finance that you need or advice on promotion. However, if you start leaving invoices from your suppliers you could end up with severe cash flow problems, which may overwhelm your business.
• Customer Complacency – In business there is only customers and suppliers. You should concentrate on building up a loyal customer base and then maintain their loyalty
• Location – a key to any successful business. For example having a five star restaurant in the middle of an industrial estate wouldn’t gain you your target market meaning you wouldn’t be bringing in enough money for your start-up expenses and on going expenses.
• Insufficient funding – you need to have sufficient funding to last six months, whilst you get your business operational.
Every new business needs money when they are starting up. This money will cover start up costs that are needed in order to by necessary equipment, get your workplace established and to cover your marketing costs all before your first sale is even made. When your business is fully up and running and you are taking in trade you will also need cash to pay bills and keep your business going.
There is a range of finance options open to you ; choosing the right one is the hard part but the most essential thing you will need to do for your business. Your business plan will help you do this as it is a roadmap for future development and crucial for not only gaining finance but also for getting attention and interest in your business.
A few forms of business finance that are availably to you are:
• Bank loans
• Credit cards
• Family and friends
• Venture capitalists
• Business Angels
• Personal savings
• Home equity
As well as sorting your business finance out another important decision that any business has to undergo is choosing a name for their business. This can often be a creative and enjoyable process but you need to get it right as customers will deduce a lot from your business name; remember first impressions count. You should choose a name that reflects your business strategy and not individual personality.
Another factor that needs your attention is the question of new staff. You need to weigh up whether you need new staff; thinking as far ahead as you can. You should ask yourself if you are taking on new staff to let your business grow, to replace someone, to get more of a handle on increased work load, do you want them to have new skills and also if you have enough room and equipment to cater for new staff.
There is a lot to take on board when setting up your own, new business. Everything has to be done just right, which is why there is so much planning involved; if you get things wrong at this stage your business has the likelihood to fail. This is why you need to make sure that you not only plan well but also keep records of exactly what is going on in your business such as accounting. Your accounting needs will depend on the size, type and sector of business your venture is in. It is your responsibility to make sure your business keeps accurate records.
When your business is up and running it is essential to plan and tightly manage your financial performance and stock control. Your stock control shows have much stock you have and allows you to keep track of it. You need to have the right amount of stock in the right place.
Helen Cox is the web master of Angel Start-Ups; for all your Business Advice needs
Starting A Successful Home Business - How To Do It Right
Becoming a winner in any online business isn't as easy as many would want you to think. If you apply some simple strategies before taking on any home business, your success rate can be much easier and guaranteed to work. We have dedicated much of our time teaching the exact marketing techniques talked about in this article.
I have applied some of these techniques to our Passport Wealth Business, and the results have brought some amazing success stories from our team members. We have produced some top money earners using techniques that are often kept behind closed doors. Was it always this easy? No. Advanced Marketing & Consultants have spent 1000's of hours in research and development to perfect some of the techniques we use. One reason some home business owners "jump out of the gates" and become successful fast is no real secret. I want to share some pointers that will give you a quick start to making money online faster. Today I want to tell you that there IS an "easy" way for you to build a money-making business, without breaking the bank.
(1). First and foremost, find a mentor that has knowledge that will save you thousands of dollars in trial and error. Good mentors should be trustworthy, credible, and not afraid to show you their tricks of the trade.
(2). If your going skydiving, would you "NOT" prepare for the jump? Would you like to have someone with you that has jumped a few hundred times? Of course you would! As stated in number 1, find a mentor, study your program, than apply what you have been taught and researched.
(3). Can you expect to be noticed if your site is the same as 60 million other sites on the internet?You must be different. This means you can't use information that is outdated or software that no longer works. You must have the right tools for todays market.
(4). Don't try and cut corners. I have visited thousands of web sites that simply were thrown together. What good is a web site if you can't make a sale on it? Do it right the first time (you'll always be perfecting it) and you'll save yourself a mess down the road.
(5). Are you getting enough traffic? Are you getting the right kind of traffic? This is always a huge issue. You must be able to build your traffic to at least 500 hits per day. Not just any hits, but targeted hits.
(6). Are you willing to put in the time to become successful? This subject alone can be an article in itself. There are many ways of bringing free, targeted traffic to your site. Here are just a few. Most of these cost little to no money.
Blogging, Podcasting, Ezine Articles, Press Releases, Mapping, Pay Per Click (not the usual kind), Audio Marketing, Video Marketing, Bookmarking, Social Networking, Email Marketing, (with a little twist).
(7).). Now, lets list a few qualities about the perfect networker and the type of things that make them extremely successful and wealthy.
Drive, Courage, Devotion To Goals, Knowledge, Honesty, Optimism, Ability To Judge, Enthusiasm, Willingness To Take Chances, Dynamic Energy, Enterprise, Persuasion, Outgoingness, Ability To Communicate, and Patience Perception.
This list goes on and on. Most of the qualities of a good networker learn many of these traits as they build their business. If you add just a few of the above suggestions in this article, you can't help but be a winner.
This article is free for republishing
Source: http://www.articlealley.com/article_480646_80.html
Occupation: Full-time Networker
This article may be used on any web site but you may not change any of the content, links, and must keep this signature line in. My name is David Lake and I am a professional networker. I started in this business 15 years ago..I knew nothing about the internet and like some of us who found success, it took some hard knocks. We now work a couple programs, but our main business is SEO, web site design, flash presentations, lead generation, and various other services. We spend most of our time educating people on how to stop paying for leads (even though we own a lead company), and start producing your leads for free. We teach courses on generating free leads with all the new technology found on the internet. Call or email for questions. David Lake 7leads@gmail.com Business Phone: 360-757-8550 Our service site is at www.7leads.com ...our program site is located at http://www.9608.goinetusa.com ...
www.9608.goinetusa.com
I have applied some of these techniques to our Passport Wealth Business, and the results have brought some amazing success stories from our team members. We have produced some top money earners using techniques that are often kept behind closed doors. Was it always this easy? No. Advanced Marketing & Consultants have spent 1000's of hours in research and development to perfect some of the techniques we use. One reason some home business owners "jump out of the gates" and become successful fast is no real secret. I want to share some pointers that will give you a quick start to making money online faster. Today I want to tell you that there IS an "easy" way for you to build a money-making business, without breaking the bank.
(1). First and foremost, find a mentor that has knowledge that will save you thousands of dollars in trial and error. Good mentors should be trustworthy, credible, and not afraid to show you their tricks of the trade.
(2). If your going skydiving, would you "NOT" prepare for the jump? Would you like to have someone with you that has jumped a few hundred times? Of course you would! As stated in number 1, find a mentor, study your program, than apply what you have been taught and researched.
(3). Can you expect to be noticed if your site is the same as 60 million other sites on the internet?You must be different. This means you can't use information that is outdated or software that no longer works. You must have the right tools for todays market.
(4). Don't try and cut corners. I have visited thousands of web sites that simply were thrown together. What good is a web site if you can't make a sale on it? Do it right the first time (you'll always be perfecting it) and you'll save yourself a mess down the road.
(5). Are you getting enough traffic? Are you getting the right kind of traffic? This is always a huge issue. You must be able to build your traffic to at least 500 hits per day. Not just any hits, but targeted hits.
(6). Are you willing to put in the time to become successful? This subject alone can be an article in itself. There are many ways of bringing free, targeted traffic to your site. Here are just a few. Most of these cost little to no money.
Blogging, Podcasting, Ezine Articles, Press Releases, Mapping, Pay Per Click (not the usual kind), Audio Marketing, Video Marketing, Bookmarking, Social Networking, Email Marketing, (with a little twist).
(7).). Now, lets list a few qualities about the perfect networker and the type of things that make them extremely successful and wealthy.
Drive, Courage, Devotion To Goals, Knowledge, Honesty, Optimism, Ability To Judge, Enthusiasm, Willingness To Take Chances, Dynamic Energy, Enterprise, Persuasion, Outgoingness, Ability To Communicate, and Patience Perception.
This list goes on and on. Most of the qualities of a good networker learn many of these traits as they build their business. If you add just a few of the above suggestions in this article, you can't help but be a winner.
This article is free for republishing
Source: http://www.articlealley.com/article_480646_80.html
Occupation: Full-time Networker
This article may be used on any web site but you may not change any of the content, links, and must keep this signature line in. My name is David Lake and I am a professional networker. I started in this business 15 years ago..I knew nothing about the internet and like some of us who found success, it took some hard knocks. We now work a couple programs, but our main business is SEO, web site design, flash presentations, lead generation, and various other services. We spend most of our time educating people on how to stop paying for leads (even though we own a lead company), and start producing your leads for free. We teach courses on generating free leads with all the new technology found on the internet. Call or email for questions. David Lake 7leads@gmail.com Business Phone: 360-757-8550 Our service site is at www.7leads.com ...our program site is located at http://www.9608.goinetusa.com ...
www.9608.goinetusa.com
10 Ideas for Home-Base Business Success.
When starting a Home-base Business there area a few things you can do to greatly improve your chance of success. In this article I will cover the 10 best ideas that have helped me over the years. Hopefully by the time you’ve finished reading you will have some new ideas to implement into your business resulting in you earning more money.
1. Start by creating a dedicated work area. Creating this space will not only help you stay organized it will motivate you to get more work done.
2. Eliminate distractions. When you work from home it is easy to get distracted by things like phone calls or the television. Remember, you are at work, make sure you’re not being side-tracked in your work time.
3. Stick to a budget. Manage your costs. This means no unnecessary purchases keeping overheads to a minimum.
4. Set work hours. By setting your daily work hours you will not only stay on track, it will prevent you from overworking yourself.
5. Make time to exercise. Any exercise is a great form of stress relief. If you have a sport or active hobby, don’t forsake it for your business. Doing this will improve your productivity. Be sure to look after you!
6. Bank your money. As a Home-base Business owner you are not given any guarantees when it comes to your income. Saving when times are good will compensate for the times you are in a downward cycle. During these periods it is nice to know you have money in the bank.
7. Get out of the house. If you own a laptop you can change it up a bit. You can break the monotony by hitting the park or your favorite coffee shop.
8. Get a whiteboard. These things are great for brainstorming ideas, prioritizing daily tasks and goal settings to name a few. My white board is my best friend.
9. Outsource. If you are having difficulty completing tasks, you can outsource the grunt –work. Outsourcing is cheap; use sources like craigslist.com to find great freelance help.
10. Do not waste time surfing the Net. This can be distracting if you’re not careful. We have all done it, it’s easy to waste hours of your day surfing the net looking for something bigger and better (or irrelevant!) to help us with our business. Try to keep a handle on the time spent visiting other websites.
Hopefully this short article has shed some light on some ideas you can implement into your business. Making money working from home is the best kind of work. Be sure and make the most of it!
Discover how a lazy surf bum cracked the 50k a month code with the Reverse Funnel System. at http://www.reversefunnelprofit.com Also visit the Reverse Funnel System Blog.
This article is free for republishing
Source: http://www.articlealley.com/article_490678_15.html
Discover how a lazy surf bum cracked the 50k a month code with the Reverse Funnel System. at www.reversefunnelprofit.com Also, visit the Reverse Funnel System Blog.
www.reversefunnelprofit.com
1. Start by creating a dedicated work area. Creating this space will not only help you stay organized it will motivate you to get more work done.
2. Eliminate distractions. When you work from home it is easy to get distracted by things like phone calls or the television. Remember, you are at work, make sure you’re not being side-tracked in your work time.
3. Stick to a budget. Manage your costs. This means no unnecessary purchases keeping overheads to a minimum.
4. Set work hours. By setting your daily work hours you will not only stay on track, it will prevent you from overworking yourself.
5. Make time to exercise. Any exercise is a great form of stress relief. If you have a sport or active hobby, don’t forsake it for your business. Doing this will improve your productivity. Be sure to look after you!
6. Bank your money. As a Home-base Business owner you are not given any guarantees when it comes to your income. Saving when times are good will compensate for the times you are in a downward cycle. During these periods it is nice to know you have money in the bank.
7. Get out of the house. If you own a laptop you can change it up a bit. You can break the monotony by hitting the park or your favorite coffee shop.
8. Get a whiteboard. These things are great for brainstorming ideas, prioritizing daily tasks and goal settings to name a few. My white board is my best friend.
9. Outsource. If you are having difficulty completing tasks, you can outsource the grunt –work. Outsourcing is cheap; use sources like craigslist.com to find great freelance help.
10. Do not waste time surfing the Net. This can be distracting if you’re not careful. We have all done it, it’s easy to waste hours of your day surfing the net looking for something bigger and better (or irrelevant!) to help us with our business. Try to keep a handle on the time spent visiting other websites.
Hopefully this short article has shed some light on some ideas you can implement into your business. Making money working from home is the best kind of work. Be sure and make the most of it!
Discover how a lazy surf bum cracked the 50k a month code with the Reverse Funnel System. at http://www.reversefunnelprofit.com Also visit the Reverse Funnel System Blog.
This article is free for republishing
Source: http://www.articlealley.com/article_490678_15.html
Discover how a lazy surf bum cracked the 50k a month code with the Reverse Funnel System. at www.reversefunnelprofit.com Also, visit the Reverse Funnel System Blog.
www.reversefunnelprofit.com
Using your Business Plan
Many people underestimate the importance of a business plan when it is the most important document that your business will ever produce. Your business plan stands as a set of business goals, the reasons as to why they are believed to be attainable and the plan for reaching these goals.
Your business plan is typically used to focus on financial goals but should also be used to demonstrate background information on your organisation. It should include everything that your business is about with information on how it will appeal to its target market and what makes it different from existing businesses that are within the same market. You should use your business plan to secure finance and as a way of allowing people to evaluate the perspectives of your company.
A good business plans should be used for a variety of purposes. Many entrepreneurs make the mistake of thinking that a business plan is only useful to help them raise money for their business. However, a well written business plan is in invaluable tool to help you run your business as well. By having a viable business plan, not only will you be able to see how your business is progressing, but you will also be able to impart your vision to others. They will be able to see how well you are running your business with respect to your initial goals and make an informed decision about any risks associated with your business.
As some of you may already know, what you put into your business plan is key to it being a well structured guide to your business. Some of things that should be included in your business are:
• Overview of the business you want to start – many leaders/investors make judgments about your business based on this section alone.
• Short description of business opportunity – who you are/ what you plan to sell/offer and to who and why
• Marketing and sales strategy – why you think people will buy what you want to sell
• Management team/personnel – your credentials and people you plan to recruit
• Your operations – premises, production, facilities, management information systems
• Financial forecast – translates everything you have said in previous sections into numbers
Your business plan is your main access to business finance. Without a well developed plan you won’t gain the financial help you desire, especially if you are hoping to use the help of a business angel or a venture capitalist.
You should remember that your business plan is a living document; it is something that you will use throughout your business and due to this fact it will need updating on a regular basis. Over time, things will change for your business. In some cases, they will change outside of your direct control. Updating your business plan will allow you to plan appropriately to reflect the dynamic changes occurring outside of your direct control and that could have an impact on your business. You should always be prepared to update your business plan to ensure that you have sufficient contingency plans to deal with external influences that could affect the way you do business.
Remember there is no set content for your business plan, what you put in it should reflect your business.
Helen is the web master of Angel Start-ups, home of all your Business Plan needs.
Your business plan is typically used to focus on financial goals but should also be used to demonstrate background information on your organisation. It should include everything that your business is about with information on how it will appeal to its target market and what makes it different from existing businesses that are within the same market. You should use your business plan to secure finance and as a way of allowing people to evaluate the perspectives of your company.
A good business plans should be used for a variety of purposes. Many entrepreneurs make the mistake of thinking that a business plan is only useful to help them raise money for their business. However, a well written business plan is in invaluable tool to help you run your business as well. By having a viable business plan, not only will you be able to see how your business is progressing, but you will also be able to impart your vision to others. They will be able to see how well you are running your business with respect to your initial goals and make an informed decision about any risks associated with your business.
As some of you may already know, what you put into your business plan is key to it being a well structured guide to your business. Some of things that should be included in your business are:
• Overview of the business you want to start – many leaders/investors make judgments about your business based on this section alone.
• Short description of business opportunity – who you are/ what you plan to sell/offer and to who and why
• Marketing and sales strategy – why you think people will buy what you want to sell
• Management team/personnel – your credentials and people you plan to recruit
• Your operations – premises, production, facilities, management information systems
• Financial forecast – translates everything you have said in previous sections into numbers
Your business plan is your main access to business finance. Without a well developed plan you won’t gain the financial help you desire, especially if you are hoping to use the help of a business angel or a venture capitalist.
You should remember that your business plan is a living document; it is something that you will use throughout your business and due to this fact it will need updating on a regular basis. Over time, things will change for your business. In some cases, they will change outside of your direct control. Updating your business plan will allow you to plan appropriately to reflect the dynamic changes occurring outside of your direct control and that could have an impact on your business. You should always be prepared to update your business plan to ensure that you have sufficient contingency plans to deal with external influences that could affect the way you do business.
Remember there is no set content for your business plan, what you put in it should reflect your business.
Helen is the web master of Angel Start-ups, home of all your Business Plan needs.
Business Angels and your Start-up Finance
Business angels fall under the category of equity finance. They form the most popular form of equity finance and can truly do wonders for your business venture.
When it comes to starting up your own business the most important thing to sort out before anything else is your start-up business finance. You will need funding for your business before you even start trading. No matter what type of business you are planning to go into, whether you are selling a product or a service you will need to secure finance before you open your business up for trading.
Funding for your business can come in many forms, ensuring that you choose the one that is best for your business is the tricky part so here’s some helpful advice. Most new business fail due to incorrect funding with many making the mistake of turning to their bank for finance only to find out that the bank refuses to give them the capital they need and with many more finding out the hard way that they can’t keep up with repayments, which ends with them losing not only their business venture but typically their house that they thought was a good idea at the time to use as an asset to their bank loan.
You’re probably left thinking now ‘what am I going to do?’ well lucky for you there are people out their waiting to give you money for your business start-up funding that you, wait for it, don’t have to pay back! Who are these kind people I hear you cry, business angels of course. A business angel is a high net worth, wealthy individual who has already made their fortune through other business ventures. They are often retired individuals who invest their skills as well as capital into new and developing businesses. Business angels invest money into your business that you never have to pay back in return for a growth share of your business.
Business angels typically seek investments that will give them ten times more back than their original investment within five years of your business being active. They invest their own funds and usually invest between £10,000 and £750,000.
As well as cash, business angels can offer years of experience in the business world. Although some prefer to become a sleeping partner, others will get actively involved in your business from writing a marketing plan to taking the company through a flotation on the stock market.
Business angels will invest across most industry sectors and stages of business development. They tend to generally look for the following within your business as a basis of whether to go ahead with an investment:
• The expertise and track record of the management
• Your businesses competitive edge or unique selling point
• The characteristics and growth potential of the market
• Compatibility between the management, business proposal and their skills and investment preferences
If you do decide to choose the help of a business angel within your business start-up funding then you must ensure that the angel you choose is right for your business needs. You should choose a business angel that is best suited to the needs of your business.
It is also important to keep in mind that business angels tend to mainly invest locally and within a specialised area.
Helen is the web master of ARCH Entrepreneurs, experts within all areas of Business Finance and Business Angels.
When it comes to starting up your own business the most important thing to sort out before anything else is your start-up business finance. You will need funding for your business before you even start trading. No matter what type of business you are planning to go into, whether you are selling a product or a service you will need to secure finance before you open your business up for trading.
Funding for your business can come in many forms, ensuring that you choose the one that is best for your business is the tricky part so here’s some helpful advice. Most new business fail due to incorrect funding with many making the mistake of turning to their bank for finance only to find out that the bank refuses to give them the capital they need and with many more finding out the hard way that they can’t keep up with repayments, which ends with them losing not only their business venture but typically their house that they thought was a good idea at the time to use as an asset to their bank loan.
You’re probably left thinking now ‘what am I going to do?’ well lucky for you there are people out their waiting to give you money for your business start-up funding that you, wait for it, don’t have to pay back! Who are these kind people I hear you cry, business angels of course. A business angel is a high net worth, wealthy individual who has already made their fortune through other business ventures. They are often retired individuals who invest their skills as well as capital into new and developing businesses. Business angels invest money into your business that you never have to pay back in return for a growth share of your business.
Business angels typically seek investments that will give them ten times more back than their original investment within five years of your business being active. They invest their own funds and usually invest between £10,000 and £750,000.
As well as cash, business angels can offer years of experience in the business world. Although some prefer to become a sleeping partner, others will get actively involved in your business from writing a marketing plan to taking the company through a flotation on the stock market.
Business angels will invest across most industry sectors and stages of business development. They tend to generally look for the following within your business as a basis of whether to go ahead with an investment:
• The expertise and track record of the management
• Your businesses competitive edge or unique selling point
• The characteristics and growth potential of the market
• Compatibility between the management, business proposal and their skills and investment preferences
If you do decide to choose the help of a business angel within your business start-up funding then you must ensure that the angel you choose is right for your business needs. You should choose a business angel that is best suited to the needs of your business.
It is also important to keep in mind that business angels tend to mainly invest locally and within a specialised area.
Helen is the web master of ARCH Entrepreneurs, experts within all areas of Business Finance and Business Angels.
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