Running a business, no matter how large or small, you need to ensure that you have some systems and procedures in place. Even if it is just little old you right now, having basic templates, pricing schedules, filing and accounting systems allows you to work much more effectively. And if there is more than one of you, all of the following are even more important to stay consistent and organised.

Templates

Under this umbrella come things such as:

• a proposal template
• an invoice template
• a contract
• a pricing schedule
• a services overview or brochure

All of these can be very simple, one page documents. Simply start a new WORD document, insert your logo and contact details, and fill in the rest. If in doubt, keep it short and to the point. It looks much more professional to have these things ready if a client asks and you can feel more in control.

Accounting systems

Invoicing IN; Invoicing OUT. Repeat this five times. Now create a folder (either electronically or paper copies) and keep track of all invoices in and out. It helps to keep a spread sheet listing all invoices you have issued and the amount and what the work was for, and then mark off when it’s been paid. Likewise, it can help to do the same with invoices you have to pay to suppliers. It doesn’t have to be as hard as it seems. Spend 30 minutes on this once a week and stay on top of the most important factor in your business: cash flow.

Emails and correspondence

You may choose to print documents and emails out and keep hard copies of things in a filing cabinet. Great idea, just make sure that you actually file things away rather than having a huge pile of paper work all over your study (or your dining room table!)

If you choose to keep a paperless office, this is great too. Keep your email inbox organised, create subfolders and flag important items and move emails once you have finished with them. Back up your computer so that all your work is not lost should there be an issue with your computer.

Dear Diary

Keep a work diary and factor in personal time too such as lunch breaks. If someone invites you to a meeting or an event, for goodness sake put it in your diary. Make sure you can send and receive diary invites. You can also categorise diary entries into business, personal, networking, accounting and so on.

As you can see, a few simple steps can help you grow your business. How can you grow or make more money if you do not even know what you owe to suppliers or have an up to date diary. Spend one hour each week sorting things, and updating templates to ensure you are up to date, organised and in control.

Why should you have a mentor? A mentor is someone who can offer you a different perspective. A good mentor does not offer you specific advice, instead helps you to find the answers yourself. A good mentor will encourage you; tell you the truth even when the truth hurts and will also celebrate your success. A good mentor can help you through tough decisions and can be a sounding board for new ideas.

Mentors genuinely enjoy helping others, seeing others reach success and helping others not make the same mistakes they might have made. A good mentor/mentee relationship gives both parties a reward. You can pay a mentor for their services or you can always give your mentor gifts, or pay for lunch when you meet up as a token of your appreciation. Or you can help them in their business by referring clients. Finding a good mentor requires some planning and thought.

1. Identify some possible candidates. They might be friends, family or simply someone you respect in the business world. If you are choosing family or friends, be careful. Business and pleasure do not always mix. But if you are sure they are far enough removed from you then go for it. When asking around, other people may suggest contacts who you can consider asking.
2. When you do approach someone to ask if they would be a mentor, ask nicely, be polite and say why you thought of them. If you admire their skills, tell them. This is the best way to get someone to say yes, as well as check that they are a good fit.
3. Consider how the relationship will work. What are you looking for? Try not to be too needy. Define whether you will meet in person, or over the phone. Once a month or once a week? Your arrangement should suit both parties.
4. Try to find a mentor that while does think in similar ways to you, also pushes you to think about things in a different way. Your mentor should be someone who you occasionally disagree with, can have a mature debate or discussion with as well as someone who has a broad view. Yes you want someone you can gel with and enjoy their company, but you also want someone to push your boundaries.
5. Keep honing your own gut instinct. Don’t get too dependent on your mentor for every little decision. And remember, you don’t have to take every bit of advice your mentor gives you.
6. Have more than one. Yes you can have several mentors if you like. Each mentor will bring a different point of view and come to topics with varying opinions. They will also have different expertise and experience.
7. Say thanks and make sure your mentor knows they are appreciated. Share your successes with them and for goodness sake, pay for lunch if you meet up. Know their birthday and send them a card every year.
8. Finally, know when to stop. If someone can no longer act as your mentor then do not stress. Thank them for their time up until now and move on. Change is good.

No matter what stage you are at with your business, start 2013 in positive circumstances and open to success. If you have been in business a while now, it is time to do some reflecting. If you are just starting out, then get ready for all the wonderful challenges that lie ahead.

Here are some tried and tested methods that work wonders to get you in the right frame of mind, and ready for success.

Get cleaning

This is meant literally. Wherever you work, clear out your desk and work space. It is just amazing how much clearer you can think when you de-clutter. Even if you are just starting out, make sure your desk is organised.

Create a vision

If you have been going for a while you might already have a vision. Think about if it is still relevant. If you are a new business owner, then write down some ideas for a vision. Then set goals too. Creating a plan for the next 12 months can be incredibly motivating. Don’t worry if some goals seem too big. You have to start somewhere.

Update your network

Get in touch with contacts you haven’t seen for a while. See what they are up to and if there is any way you can help each other out. Register for some new networking events, and meet new people. Remember, networking is not about selling your business there and then to all you meet. It is about cultivating relationships, long term, and seeing how you can help others.

Plan for growth

You may or may not be expecting to grow this year. Even a very small, one person business can expect work flow to ebb and flow. Nothing is certain and life throws out funny things but as much as possible, try to plan for any growth, or busy times, as well as any predicted quiet times. Being prepared now means the year can be a smoother ride.

Identify your A-class clients

A true A-class client is not necessarily the one that pays you the most money. A true A-class client is one that pays well, sure. But also one that you enjoy working with, and who are easy to deal with. Then, once you identify the clients that make you happy, thank them. Send them a gift. Discount their next invoice. Refer them a client. Do something to show your appreciation. Next look at all your other clients and identify which ones you want to work with in 2013, and how you can get more of these A-class clients in the future.

Separate work and personal

If you run your own business, you probably work long hours. When you are not ‘working’ you are probably thinking about work. If you enjoy what you do, it’s hard to switch off. And that is great, it’s great that you are so passionate. But taking time out for you is vital. Family and friends who support you want to see you happy. So try to carve out set work hours or designated work places around the house. Don’t neglect your personal life, after all running your own business should allow you to have the perfect balance.

Top 5 Mistakes Owners of a Business Start Up Make

With a business start up, you will not always get everything right. You may encounter a few bumps along the journey, however they do not have to derail you from your goal. Knowing the top five mistakes that are made by owners of a business start up will be useful during your company’s establishment.

Seeking advice from inexperienced people. It’s important that you seek advice from those who have several years of experience in the business arena.

Oftentimes, owners of a business start up put their trust in business persons who lack the expertise to carry them from point A to point B.

These very people you seek advice from may have been able to set up and conduct business for one to two years.However, their businesses ended up failing because they either lacked the experience or capital to move forward. Make sure that the persons providing you with advice are not only knowledgeable in the field of business, but also have proof to back up such knowledge.

Mismanaging funds. Owners of new businesses tend to allocate funds to resources that are not necessary during the inception of business. Some owners may spend money on renting office space. They may have income for rent set aside for six months to year without having any idea of how the rent would be paid after its first year of operations. In such cases, the company may have to forfeit its lease if its for more than one year which may end up costing the business more than anticipated. Another scenario may involve the company losing the office space and having to shut down business or move into the owner’s home. Before setting out to acquire office space or any other business-related resources, make sure that adequate funding has been allocated to each area. You may have to place certain projects on hold until you’ve acquired the capital to proceed with that venture.

Setting up the wrong legal entity. Some business start up owners may end up selecting the wrong legal entity, or choose to set up shop without legally registering their businesses with the respective authorities.

Choosing a legal entity for your business boils down to the advantages and disadvantages of that specific legal entity. While some businesses may thrive as a sole proprietorship, others may thrive as a partnership. Seek professional assistance when selecting the legal entity for your business. On the other hand, if you choose to operate your business without legally registering it, this approach may be detrimental to your company’s success.

Believing everyone shares your passion for the business. Be prepared to encounter skeptics or those who may not have the same level of enthusiasm that you exude for your business. While such persons may not share in your company’s vision, this does not mean you’ll have to place your business on hold until you find those who will support your endeavors. You may have to go through several unenthusiastic people to get to those who are passionate about business’ vision.

Pricing your products and services too low. As a business start up, you may be hesitant about placing high prices on your products and services. However, selling your products and services at a cheaper rate may only downplay the superior quality of your offerings. If your products and services are worth a specific price, make sure that you retain that price. People generally prefer quality over quantity.

Once you take these top five mistakes made by owners of a business start up into account, you’ll be able to avoid major setbacks in your company.

5 Steps to Writing a Simple Business Plan

When it comes to writing a business plan, many people often overcomplicate the process. You don’t have to get caught up in that web. Use these seven steps to create your own simple business plan.

Simple Business Plan Step #1: Create a name for your business.

Coming up with the ideal name for your business will require you to place yourself in the shoes of your target market. As an example, you’re a customer seeking scenic paintings. You come across a business by the name of Findings Galore which carries a wide range of prized possessions such as trophies, plaques, clocks, glass, silver, and landscape paintings by well-renowned artists. Although the business has what you’re seeking, your immediate thought based on the business’ name is that they stock items that other persons find useless. If the name were changed to Scenic Arts Central, the name in itself would capture your attention, since it identifies with your need. While it is important to select a name that aligns with your business’ purpose, it is just as fitting to have one with brand durability.

Simple Business Plan Step #2:Use plain language. A simple business plan wouldn’t be one without unembellished language.

Remember your reader is seeking to understand the nature of your business. Using technical language will not achieve such an outcome. You want to inform your reader in the shortest possible manner about the purpose of your business and how it intends to fulfill it. Besides being succinct, use bullet points. With this approach, your reader will be able get through the information easily. Provide brief explanations with each point. Moreover, ask yourself this question. Would my readers be able to skim through this business plan in five minutes or less and get the gist of the matter? If your answer is no, you may have to go back to the drawing board and make some tweaks.

Simple Business Plan Step #3: Get to the point. Ideally, your simple business plan should be 20 to 30 pages long. If you have appendices, this may take up an additional 10 pages. Business plans more than 40 pages long tend to go into greater details than required. Such business plans diminish the true essence of what you’re seeking to convey.

Simple Business Plan Step #4: Describe the vision, mission, and goals and objectives of your business. Your vision should highlight what your company will look like several years from its inception. Will you have employees on staff when you start? How many employees will you be hiring? Is your business going to be in one location? The mission of your business will focus on the work your company performs as well as what sets it apart from its competitors. The goals and objectives of your business will be an elaboration of the mission and vision of your company. Include a specific timeframe for achieving each goal. Once you’ve established your vision, mission, and goals and objectives, develop a SWOT analysis to evaluate your company’s strengths, weaknesses, opportunities, and threats. Such information will be useful in determining your business’ capacity to thrive under positive and negative conditions.

Simple Business Plan Step #5: Develop a financial plan. Your financial plan includes information pertaining to your company’s current or projected budget. Having a budget will allow you to control your cash flow in an efficient manner. You can use bar charts to highlight your sales, gross income, net profits, and other related expenses.

Once you focus on the key components of your business’ purpose, you’ll be able to write a simple business plan in two hours or less.

3 Disadvantages of Running a Business

Running a business is not for the faint of heart. You must be willing to put in the time and effort to get your business fully operational. If you’re new to the world of entrepreneurship, it is important that you educate yourself on the multiple facets of starting a business. Although you may not get everything right the first time around, knowing what to expect in running a business will go a long way in helping you meet your business goals.

Responsibility

As a budding business owner, you’ll be required to carry out the majority of work, especially if you’re unable to hire employees to help you with your day to day activities. With one person in charge of several tasks, the productivity and efficiency may suffer greatly, since you do not have a team to whom you can delegate tasks. With a team, you’ll be able to spend more time on tasks of which you’re highly knowledgeable and assign the ones which may take you a longer time to complete to employees who are more skilled in those areas. As an example, you may be quite knowledgeable in the area of human resources. However, your business requires persons with expertise in marketing, product sales, and accounting. Due to your lack of skills in those areas, you may end up dealing with work overload, and before you know it, you may end up becoming burned out.

Financial Risk

When running a business, you must be prepared to invest in your venture.

If you’re unable to put out the funding, you may have to borrow money and end up in debt to start your business. Whether you invest or borrow money to start your business, the capital used to do so will be linked to the business’ success. If you’re unable to manage the finances of your business wisely, you’ll be responsible for sending it into financial ruin. The financial risks are higher with sole proprietorships and partnerships than limited liability companies. In addition to the financial risks, you may encounter delayed profitability if your business is not established at the appropriate time.

Lack of Benefits

Health and life insurance; retirement plans; paid holidays; sick leave; training opportunities; annual increment pay; 401(K) plans; and travel allowances are just a few benefits you’ll have to forfeit when initially running a business. Even if you were able to secure health insurance, you may end up paying a higher insurance rate. Small businesses are charged higher rates than large companies, since small businesses are less likely to secure group rates.

Although there are disadvantages to running a business, you can take the necessary precautions to decrease the likelihood of such occurrences.

Educate yourself on the responsibilities you’d be required to fulfill in your business. Create a financial plan for your operations. Prepare yourself to forfeit certain privileges that you may have had if you were an employee. Following each of these steps will allow you to establish a solid foundation when getting started. Furthermore, you would decrease your margin of error for running a business.

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Starting your own business? Or even growing your current business? I’m giving away a free ticket to my interactive workshop on November 17th valued at £295

Starting your own business can be a scary thing for anyone, especially when there are so many things to consider to make it a success from the get go. That is why I am putting together an interactive workshop (the first of many) to help you get you off to a flying start for 2013.

In just 8 hours you will have a solid strategy to
starting your own business GUARANTEED!

Are you fed up networking, attending events and business shows and coming out more confused and overwhelmed than ever? Is the idea of or planning or growing your current business a little overwhelming to say the least?

You need to write a business plan, you need to map out your marketing strategies, you need a social strategy – and that’s just the start. It’s all these different elements to consider that can put people off even getting started.

With this in mind I’ve got together with some of the  greatest business teachers to give you an amazing day that will change the future of starting your own business forever. With our combined experience and proven strategies, we’ll take you from A-Z with your business plan and you’ll leave with a new sense of direction and focus.

Thee is no hiding the fact that our economy is suffering and 2012 has been another tough year for business and career opportunities alike. But its not all bad news. Opportunities for starting your own business and growing businesses have never been higher. Some of the worlds most successful companies were built during world recessions. This is your chance to be one of the businesses that are thriving.

The investment for my workshop is £295 and we’ll give you over £500 of free gifts vouchers and discounts for you and starting your own business. But even if you have already got a business and you need to grow it, I can help you with that too. This is possibly the best investment you’ll make in your business all year!

But I’m also giving you the chance to WIN a ticket by just entering your details HERE – starting your own business has never been easier!

Make that commitment to yourself today to do everything you can to make your plans a reality. Once you say yes to yourself, the rest falls in to place. I wish you the best of luck with your entry and look forward to meeting you in person if you decide to join us in my starting your own business workshop.

7 Essential Components of a Business Plan

Creating a business plan does not have to be an insurmountable task. If you plan on doing one yourself, here are seven essential components to incorporate into your business plan.

Executive Summary

The executive summary provides readers with an overview of your company. Details such as its current position, future goals, and plans for achieving these goals are outlined in this section. The executive summary is considered as the pillar of your business plan, since it determines the overall strength of your company.

Company Description of your business plan

Your company description highlights the different aspects of your business. This section goes into greater detail about your business and helps to enlighten potential investors about the intricacies of your company. The company description features the nature of the business; the benefits of products and services to be provided; the market (consumers, organizations, or businesses) that are being served or will be served; and the competitive advantage your company has over others in terms of location, expertise, or value.

Market Analysis

The market analysis provides an evaluation of your industry and market based on extensive research in that particular field. Your market analysis covers the current size, historic growth rate, and trends of your industry. It also specifies your target market; its needs; and the demographics of that market. With this information you’ll be able to determine the potential gain of your market share, as well as the pricing and gross targets with which you should work.

Company Strategy

The company strategy can be broken down into four strategies. These include a market penetration strategy; a growth strategy; the channels of distribution strategy; and a communication strategy. A market penetration strategy is where the price of your product is set low to increase its demand and market share. A growth strategy may focus on providing the same product to a different target market, or buying another business. The channels of distribution strategy may include distributors, retailers, or original equipment manufacturers. A communication strategy focuses on the methods that you’ll be using to reach your customers. Such methods may include public relations, promotions, or advertising. Once you’ve developed your marketing strategy, you can move ahead with your sales strategy. The sales strategy comprises of a sales force strategy and sales activities. A sales force strategy deals with the type of sales force you intend to use; the number of salespersons you intend to recruit; the recruitment methods you intend to implement; and the training and compensation you’ll provide to your sales force. The sales activities provides information on your sales performance based on factors such as the number of potential customers and the number of sales calls required to make a sale.

Products/Services

The products/services section outlines the benefits that such products/services will provide to your customers. These benefits may be described on the basis of how these products/services meet customers’ needs and how they stand out above their competition. The product’s life cycle, intellectual property, and research and development activities also appear in this section.

Financial Business Plan

The financial plan provides an overview of your company’s financial history. Owners of established companies should include historical information on their company’s financial performance, while those with start up businesses should provide their company’s financial projections.

Appendix

The appendix in your business plan consists of items such as your company’s credit history; licenses, permits or patents; letters of references; and management resumes. This section should be excluded from the other six sections, since it contains sensitive information. Such information in your business plan should only be shared with those who play a key role in making lending decisions.

Business Start up Checklist

So, you’re going to go it alone. You’ve finally decided that you want to set up your own business. This may be one of the biggest decisions you ever make; don’t jump in too fast, there are some important things that you must consider before you actually take the plunge.

Using this business start up checklist will help you focus on the roadmap for your new business and work in a more organized and effective manner when everything ‘goes live’

What Kind of Business Do You Want to Start?

1. A part-time or a full-time business?
2. Do I want to launch a business based upon my own idea – a completely new product or service?
3. Buy a running an established business model (franchise?)
4. Do I want to start the business on my own or I want to do it as a partnership?
5. Managing someone else’s business?

Research Your Business Idea

Image: FreeDigitalPhotos.net

1. Do you have enough financial resources to go ahead with your idea?
2. Is there scope for your business? How scalable is your idea?
3. Research your competitors. Check if it is possible for you to make an impact with the existing competition and grab a good share of the market.
4. Find out what unique selling points (USPs) you have.
5. Check price points. Fin out how you can add value.

Prepare a Business Plan

1. What are your main business goals?
2. Decide on the location of your business and the associated costs.
3. What is your break even point?
4. How will you finance your business? Think cash flow, profit and loss and projected sales.
5. Define your marketing strategy and budget for a minimum of 12 months.

Get Training

1. Prepare yourself. Gain as much business skills as much you can.
2. Read business books.
3. Attend various business training courses.
4. Join business support networks and keep up to date with training workshops available.
5. Contact your local chamber of commerce and ask what help is available for business start ups.

Choose Staff For Your Business

1. Decide how many employees you will need (if any initially)
2. Don’t start employing people until you really need them because this will cause you extra expenses. Create a budget for staff.
3. Hire the best people available at hand. Never compromise on the skills and capability of your workers for lower wages.
4. Use references when hiring staff.
5. Clearly define roles within your company before you hire.

 Name Your Business

1. Choose a name for your business. The name should be unique and self-explanatory. It should also be brief, simple and interesting.
2. Make sure no else uses the name.
3. Check no one has taken the domain name if you started with the name that you have chosen because then you will not be able to have your website or blog with that domain name.

Register Your Business

1. Decide in what capacity your business will trade i.e. sole proprietorship, private limited company etc.
2. Register your business with the appropriate registering body.
3. Seek professional advice when setting up partnerships or limited companies
4. Run a check for trademark names and availability.
5. Discuss your business name with friends and family. Make sure it makes sense!

 Location

1. Set up your office. (You have decided if it will be at home or if you will need premises)
2. Find the best location for your business.
3. Get the infrastructure ready for your office i.e. internet connection, phones, furniture etc.
4. Check footfall in the area if you are opening a bricks and mortar business (local councils can help you with this)
5. Keep records of pre-set up costs and equipment to sumbit with your first year accounts.

Marketing

1. Develop an affordable marketing strategy.
2. Get your business cards ready, complete with all the details about your business including addresses, phone numbers and web presence.
3. Write a brief overview of your business and send it to the local newspaper. Find an angle for publicity and mention your USP.
4. Set up your business website.
5. Create a presence across social networks and start building a fanbase,

 Legal and Professional

1. Get legal, professional advice for anything you are unsure of. It can save you tons of money in the long run.
2. Get your business insured.
3. Find out what taxes you will have to pay and start planning ahead.
4. Find out rules and regulations you will have to follow.
5. Seek advice about tax breaks for start ups.

Suppliers and Distributors

1.  Choose your suppliers and distributors carefully.
2. Reach as many suppliers as possible so as to cut costs.
3. Always keep a backup list of suppliers  in case of problems with existing ones.
4. Talk to distributors. Clarify terms and conditions with them.
5. Negotiate payment terms and ask for extended credit where possible to help with cash flow.

Keep Good Records

1. Keep good records of everything that comes in and goes out of your business
2. Consider setting up a separate business banking account.
3. Make sure you understand the book-keeping process.
4. Discuss keeping accurate records with your accountant
5. Submit everything on time and in good order to save money at year end!

Business Start Up Checklist Summary

The main focus here is keeping good records and planning a strategy for your business and always ask a fellow business person or a professional for advice. Remember there are lots of support networks for new business start ups, quite often there will be one in your local area. Never be afraid to say you don’t know something when starting up, you will gain more respect by asking intelligent questions, these support teams are used to helping people starting out every day.