In the online world, it is important to "sell" your online brand so that it stands out above your competitors. That is where smart Internet marketing comes in handy. This will help visitors find and remember you, which can result in more traffic and more profits. Follow these tips to make your website stand out above the rest.
Visit the sites of your competitors. This will allow you to see what you're up against, but it can also give you ideas about what you can do a little better or a little differently. You can use their websites for ideas about content for your own site and blog.
You can reach out to your audience on demand thanks to an email list. Create an email list about a specific topic and send out newsletters with quality content. Once you build up your email list, you can send out information about your products, in the context of your newsletter or usual format.
Have a specific goal in mind. Figure out exactly what it is you want your website to do, and aim towards that goal. Start small at first, say by increasing traffic, and then move out to other goals. Many a website has failed because they tried too much at one time.
Know your lingo. Understanding the definitions of the field you are working with is just as important as why you are delving in. Without knowing what symbols, initials, and codes actually mean, you are diving into a pool at midnight. You do not know what is in there, and it may get you hurt.
Gather testimonials from customers and publish them on your website. A testimonial builds credibility and goodwill for your business. Testimonials should highlight your business's goods and services while demonstrating customer satisfaction. Customer testimonials should be honest and genuine. Satisfied customers will be glad to offer a few words of praise for your business.
One of the most important aspects of business is to stay as professional as possible at all times in order to separate your company from competitors. If you have a Twitter or Facebook page relating to your company, make sure to stay business professional even though you are on a social networking website.
Before you start out on your internet marketing journey. You should spend some time researching. Decide what market you are trying to break into. Know your game plan before you do anything else. The more investment you are willing to put into making things right from the start, the smoother the sailing will be once you start.
Going the email route in internet marketing can very well backfire on you and in a hurry. Make sure that any mail you're sending is short, informative, and presents a call to action to the potential customer. The idea is for people to read your message and feel the urge to click, not to read a long story and click out of your message, out of boredom.
Viral marketing works extremely well to build up a solid customer base, but you need to do this correctly. Putting together a loosely informative, short eBook and giving it away to your customers comes across as insulting. Take your time to put together a thorough, quality product if you really want to impress your customers.
As you can see from the previous list of tips, Internet marketing can really make a difference in the strength of your online presence. It takes a lot of work, a lot of networking, and tons of patience, but it is all worth it in the end to have a successful online business.
If you run your own business, you could probably benefit from opening a specialist, dedicated current account for your company. Offered through all of the usual banks and building societies such as Barclays, Lloyds, Natwest, Santander and more. Along with specialist providers, business bank accounts offer debit cards, overdraft facilities, cheque books and automated payments such as direct debits and standing orders, just like a personal account does.
Over and above this, a business bank account usually offers a range of additional benefits. These can include change facilities, the option of a much higher overdraft, business loan, access to business guides and training materials, the use of communal meeting rooms and business-class travel facilities, foreign exchange rate discounts, fast international payments and insurance.
Although there is no legal obligation for companies to hold an actual business bank account, it is vital that the business's monetary affairs are kept separate from personal ones. However, if you are a start-up company or you work as a sole trader and do not think you need any of the additional benefits that a business account offers, a separate personal account will suffice.
Anybody that runs a company of any size is usually eligible to apply for a business bank account, though credit rating restrictions will apply. Some banks provide different accounts depending on the size or type of the business.
The most basic business banking accounts are free. For anything more complicated you'll pay either a flat monthly fee, or pay-as-you-go by the transaction, or a mixture of both.
There are many different kinds of loans available to meet the needs of business owners. However, not all loans are created equal, and determining which ones are best suited to your needs can be complicated. That is, unless you know some of basic terminology associated with the various types of small business loans. This article is a primer on the types of small business loans.
Secured Loans
With a secured loan, your business is awarded a loan because you are putting up business or personal assets as collateral. This collateral is promised as repayment if you are unable to meet your repayment obligations.
Unsecured Loans
Unlike secured loans, an unsecured loan is awarded based on your creditworthiness. You don’t have to provide collateral to obtain the loan. Unsecured loans are riskier for lenders than secured loans and are typically awarded in smaller amounts.
Professional Loans
Professional loans are available for sole-proprietors. You might consider a loan of this type if you are a doctor, dentist, or lawyer with a private practice.
According to Nigel Lander, a specialist finance adviser for Business Link, raising finance for start-ups or early-stage businesses is very difficult. One way that will increase your chances is to prove that your business has clearly-defined income streams. If you show that your business will have money coming in, it will be easier to persuade the banks to provide finance.
“Bank finance is essentially for lending against anticipated income streams. For a very early-stage business, banks might come up with a small amount of money to match what the owner is putting in, on a pound for pound basis. Make it work at a modest level,” advises Lander.
If you have very little or nothing to put into the business, it will be extremely difficult to convince the bank to part with money. To heighten your chances, try and raise money from as many other sources as possible, such as your friends and family, any retained profits you may have, or a third party investor. Banks want to see commitment from the business owner’s end, so you will probably have to come up with some kind of security as a form of guarantee, such as your house.
A watertight business plan
When approaching a bank, your business plan and how you deliver it should be the best it can possibly be. If your bank manager is your best possibility and you have not practised your presentation, you might blow your chance of accessing finance. To lessen the risk, you could try approaching a different bank to do a ‘test run’ for practice.
“Many applications for finance get turned down because they are badly written or presented, and many get turned down because they are presented to the wrong people,” says Lander.
According to Guy Herrington, marketing director for business banking at Lloyds TSB, a well-prepared business plan is essential when approaching a bank, and many banks have packages to help you write and prepare your business plan.
“Banks decide to finance businesses on a case by case basis really. Less than 40% of customers actually borrow money when they are in the early stages of their business. Most will use funds from trade creditors or their family,” says Herrington.
Prove your management ability
Another factor affecting whether a bank will agree to finance your business is your track record and management ability. Can you make the business work, and do you have a background in the sector are questions you should ask yourself.
“The quality of the management team is always a major consideration. To help you, make sure you have support from a third party who has experience in areas where yours may be lacking,” suggests Lander.
Lloyds TSB’s Herrington says that it can be useful if you have a track record, but it is also worth highlighting any other relevant skills that you can bring to the business.
The bank’s view
At the end of the day, banks never finance anything on a 100% basis, otherwise they may as well be running the business themselves. They will always be looking to finance businesses on a partnership basis, and will always want a contribution in, for example, monetary terms from people running the business.
Remember also that each branch manager has a different discretionary lending limit; above the limit your application may need to be processed elsewhere, which means you could lose part of the ‘personal’ touch. The moral is to shop around, and certainly do not be put off by being turned down
New loan scheme to fund your business
A not-for-profit bank has opened in East London to provide financing to sole traders and micro-businesses (those with fewer than 5 employees), which do not usually qualify for loans from mainstream banks.
The new bank, called Street, hopes to attract businesses like window cleaners, restaurants and small shops and plans to have 40 branches open in the next 5 years. It offers loans and advice to fledgling businesses in under-developed parts of the UK.
Street has a fund of around 4.5 million and provides an average loan of 2,000 to qualifying start-up companies. The maximum term for an initial loan is 12 months, but a business can then return for a further increased loan after that.
Deputy chief executive Martin Hockly wants Street to support businesses that might otherwise use inappropriate funding such as credit cards or personal loans.
Hockly says the main criterion is that the applying company must be trading, but also points out it must be legal too. He adds. We don't require formal business plans and accounts.
To apply, a business must call Street and complete an application form over the phone, which is then sent to the applicant for signing. The bank will then meet with the business to discuss the current and potential state of cash-flow over the next 12 months and develop a business plan.
The bank will then conduct due diligence into the business to ensure it is the sort of enterprise Street wishes to support and the business must provide a guarantor and 2 referees. Hockly claims the whole process can be completed in just a few days.
For more information or to apply for a loan, call Street on 0845-601 8690.
US business
Conventional Loans
Conventional loans are private loans issued by banks and other lenders. The federal government does not guarantee conventional loans; the lender is responsible for assessing risk.
Government-Backed Small Business Administration Loans
SBA loans are guaranteed by the federal government; however, there are typically stricter eligibility requirements. Businesses in certain industries -- such as residential property holding companies and lobbying organizations may not qualify for SBA loans.
Among SBA loans there are several different classes listed below, including general small business loans (and related subcategories), micro loans, real estate and equipment loans, and disaster loans
General Small Business Loans
SBA 7(a) loans are the most common types of loans. These loans provide financial relief to small businesses and have various eligibility requirements. Within this category of loans there are four specific SBA programs:
CAPLines: This SBA program is for business loans up to $5 million, and it is established to help small businesses meet their short-term and cyclical working capital needs. Within this subcategory of loans are four additional subcategories: Contract Loan Program, Seasonal Line of Credit Program, Builders Line Program, and Working Capital Line of Credit Program.
SBA Export Loan Programs: This loan program is specifically for small business exporters. It’s designed to help business owners start or expand export activities within their company.
Advantage Loans: Advantage loans include the Small/Rural Lender Advantage Loan, the Community Advantage Loan, and the Small Loan Advantage. What sets these programs apart from other 7(a) programs is the kinds of lenders that are able to obtain a guarantee.
Rural Business Loans: These loans are part of a special program for businesses located in rural communities. Rural business loans are managed by the US Department of Agriculture (USDA) under the Business and Industry Guaranteed Loan Program. With rural business loans, up to 80 percent of the loan amount is backed by the USDA.
Microloans
The SBA’s microloan program is designed to help business owners acquire loans for $50,000 or less. According to the SBA, the average microloan runs about $13,000. A microloan can be used for several purposes: to provide working capital or to purchase furniture, fixtures, inventory, supplies, machinery, or equipment.
Real Estate & Equipment Loans
Real estate and equipment loans are part of the SBA’s CDC/504 Loan program. They can be used to finance major fixed asset purchases.
Disaster Loans
Disaster loans are low-interest loans (offering rates anywhere from 4% to 8% maximum) and can be used to make repairs or buy replacements for real property, machinery, equipment, fixtures, inventory, and leasehold improvements. They are only available to businesses located in a community that has officially been declared a disaster area.
Remember that financial products are updated frequently. Check with a private lender or the Small Business Administration to see if other loans are available to help you grow your small business.
Microloan Program.
Under the Microloan program, the SBA works with designated intermediaries to provide small short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and equipment. Despite Government cuts he Microloan program is set to continue but you should check with your local SBA office to find out its availability.
CAPLine Loans.
The CAPLine loan program makes loans available for businesses that need funding for a short time in order to "finance seasonal working capital needs; finance the direct costs of performing certain construction, service and supply contracts; finance the direct costs associated with commercial and residential construction; finance operating capital; and consolidate short-term debt." Loans are available under several programs.
When you go to a bank or the Small Business Administration (SBA) for a business loan, you will be required to complete a loan application form. You must provide much more information than you might think, and your ability to provide timely and complete information can mean the difference between getting the loan or not.
Using the application for a Business Loan as a guide, here is the information you need to provide:
Information about your business, including business name and address, your name, type of business, date business established, Tax ID Number (Employer ID Number) or Social Security Number (for a sole proprietorship) for USA.
Number of employees, now and if the loan is approved
The name and information about your business bank
Use of proceeds (amounts for all applicable items, and total):
land acquisition,
new construction/expansion/repair,
acquisition or repair of machinery and equipment,
purchase inventory,
working capital (including accounts payable),
acquisition of existing business
to pay off an existing loan
Information about your current, previous, and pending business debt, including SBA loans and other government debt
Borrower's name
Lender name and information
Original amount of loan
Date of Application
Present balance
Rate of interest
Maturity date
Monthly payment
Security provided
Loan Status (whether the loan is current or past due or paid off)
Outstanding balance
If loan resulted in a loss to the government or other lender, amount of the loss
Information about the management of the business. For 100% of the ownership, you must include name and address and percentage owned. You may also be required to provide demographic information (race, ethnicity, veteran status, gender); this information can help the bank determine if you qualify for any special SBA loan programs. A resume of each executive, board member, and other key employees may also be requested.
Personal and financial information about all shareholders (with 20% or more of ownership), officers, partners, owners, including a personal financial statement.
Detailed information about assets being presented as collateral. For example, a legal description of real estate, serial numbers/id numbers for all large value machinery, equipment, furniture and fixtures, inventory records, accounts receivable aging reports. and other records as required.
A brief history of the company and the benefits that it will gain from the funds.
One to three years of projected financial information on the business, showing the effects of the funds.
Finally, you will be required to provide information about the financial history of the business for the past three years, if possible, including income tax returns balance sheets, and income statements.
Some of this information may be provided in your business plan, but make sure it is available somewhere to your lender or the SBA.
References: Small Business UK, J Murray - US Business.
Licensing is one of the fastest and safest ways for you to find a product to sell, with high margins.
You need to find content providers who you can license from, approach those content providers, and set up your own license deals.
In particular, a license may be issued by authorities to allow an activity that would otherwise be forbidden. It may require paying a fee and/or proving a capability. The requirement may also serve to keep the authorities informed on a type of activity, and to give them the opportunity to set conditions and limitations.
Brand licensing is a well-established business, both in the area of patents and trademarks. Trademark licensing has a rich history in American business, largely beginning with the rise of mass entertainment such as the movies, comics and later television. Mickey Mouse's popularity in the 1930s and 1940s resulted in an explosion of toys, books, and consumer products with the lovable rodent's likeness on them, none of which were manufactured by the Walt Disney Company.
Brand extensions later made the brand licensing marketplace much more lucrative, as companies realized they could make real dollars renting out their equity to manufacturers. Instead of spending untold millions to create a new brand, companies were willing to pay a royalty on net sales of their products to rent an established brand name for their product.
A company may choose to license its brand(s) when they believe there is strong consumer acceptance for brand extensions or products. For example, when Apple launched the iPod there was an immediate need for accessories such as headphones, charging and syncing stations and carrying cases. Apple decided not to manufacture these products and instead chose to have a licensee make the products. By doing so, Apple could offer branded “Earbud Headphones”, “iPod docking stations” and “iPod socks.” Each is made by a separate company but together offer the consumer an elegant solution. All of these accessories are sold by licensees.
Apart from benefits to licensors, there are benefits to licensees as well. Licensees lease the rights to a brand for incorporation into their merchandise, but do not share ownership in it. Having access to major national and global brands, and the logos and trademarks associated with those brands, gives the licensee significant benefits. The most important of these is the marketing power the brand brings to the licensee’s products. When brand managers enter or extend into new product categories via licensing they create an opportunity for a licensee to grow their company. Below is an example of the licensed product process steps:
Licensor chooses the product categories to be licensed
Licensor finds and negotiates a license with the best licensees
Licensees develop concepts, prototypes and final production samples and submit for approval
Licensor approves licensed products for sale
Licensees sell licensed products to authorised Affiliates or retailers.
Licensees expect that the license will provide them with sales growth. This sales growth may be in the form of growth within existing market or the opportunity to enter a new market. To achieve this, licensees expect that the brand they are licensing has significant brand preference, that it will open doors and ultimately help them meet or exceed their business objectives. The licensing contract forces the licensee to achieve certain sales targets and royalties; therefore, the goal of the licensee is to quickly meet their business objectives, thereby achieving their contract obligations. Royalties are the monies paid to a licensor by the licensee for the right to use the licensed property. It is calculated by multiplying the Royalty Rate by the Net Sales.
Example for Licensing to sell Name Brand Clothing in the USA.
Step 1
Find the brand-name company owner's address. You need the corporate address so that you can send a written licensing agreement directly to the corporate headquarters. You also need to understand the domiciliary laws that the corporation must comply with. You can find this information by conducting a Dun & Bradstreet search or by contacting a state's secretary of state office. You need to know the company's home location or state of corporate domicile, which you can determine by looking at the company's public filings or initial registration.
Step 2
Search the company's U.S. Securities and Exchange Commission (SEC) public filings. The SEC requires annual disclosures of publicly traded companies. Most brand-name clothing owners have offered their stocks for public purchase. You can use the electronic EDGAR database located on the SEC's website to determine the corporation's net worth and review whether the corporation's trademark is financially viable. Have a certified public accountant review the corporation's earnings statements.
Step 3
Send a request for proposal or request for additional information to the brand-name clothing company that you are interested in selling clothing for. Most large brand-name companies offer information on becoming licensed to sell their clothing brands. Mail your proposal package directly to the corporation or, if the company allows, submit it electronically.
Step 4
Review the company's website. Most companies list additional information on their public websites. A company's additional information may include the initial investment required, no-compete clauses and minimum purchasing requirements.
Step 5
Find an attorney to draft your licensing agreement. Your attorney should have specialized expertise in dealing with contract issues, business ownership issues and intellectual property rights. Many companies also use standard licensing agreements prepared by corporate counsel. If this is the case, you need your own attorney to review the written licensing agreement. You may want to add language or tailor it to your specific situation.
Step 6
Comply with the federal registration requirements required by the Federal Trade Commission in registering your apparel.
Generally the licensees will benefit from the use of licensing related promotions by driving more customers to its product or service.
The premium companies will benefit because they will supply larger volumes of items.
The licensors will derive an income from the use of their brand and the increased exposure it will bring, hopefully encouraging other areas of its business to also expand.
The service or main product using the licensed brand in its promotion benefits by providing its target market with a favourable item and/or association that drives purchase.
Licensing is a billion-dollar retail market worldwide. But a license isn't a prescription for instant success. It gives you the borrowed interest of a name that is either unique or has some consumer acceptance, but it still takes good selling and marketing to succeed. A license is, in essence, a tool, and when used well, it's an extremely cost-effective marketing tool.
Licensing offers three major advantages. First, it may mean you have something unique your competitors don't. Second, it may mean getting a little better margin because it's unique. And third, it may mean that 10 percent of the retailers you call on that you've never been able to sell to will finally take a look because you have something different. And when that happens, you can sell the rest of your line.
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Affiliate marketing is a business model whereby you (the affiliate) promote other people's products to potential buyers. When the sale is made, you earn a commission.
Affiliate marketing can take several forms and one of them is an online business.
This online business can be profitable for newbie marketers and come with a lot of benefits. The commission is usually 30% to 50% depending on the companies i.e. Clickbank.com or JV Zoo.
Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic searches, search engine optimization (SEO), paid search engine marketing (PPC - Pay Per Click), e-mail marketing, content marketing and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.
Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. However, both are distinct forms of marketing and the main difference between them is that affiliate marketing relies purely on financial motivations to drive sales while referral marketing relies on trust and personal relationships to drive sales.
Affiliate marketing is frequently overlooked by advertisers.
While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies.
How the Affiliate Marketing works
1, The Affiliate does not require a big investment and the program allows you to start making money immediately. The affiliate marketing program provides an easy way to create additional sources of income for website publishers and owners.
2, The affiliate does not have to bother about customer service, accounts, bookkeeping or refunds. In affiliate marketing, the merchant (product owner) takes care of everything. All the affiliate (you) require to do is pre-sell the buyer and lead them to the sale page.
3, As an affiliate marketer, you are your own boss and can work at your pace from your own place no matter where you currently live or the situation of your country. You can work part time, full time and make enough money to live anywhere you want in the world.
4, An affiliate does not need to quit a main job as it can be done alongside the main job, using affiliate marketing income to supplement the main income. Today's technology allows the affiliate's laptop to be connected to the internet even while on holiday or vacation and be able to earn enough income to live the Dotcom lifestyle.
The concept of revenue sharing —paying commission for referred business—predates affiliate marketing and the Internet. The translation of revenue sharing principles to mainstream e-commerce happened in November 1994, almost four years after the birth of the World Wide Web.
The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to The Prodigy Network.
Affiliate websites are often categorized by merchants (advertisers) and affiliate networks. There are currently no industry-wide standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers.
Pay per click affiliates use search engines to promote the advertisers' offers (i.e. search "arbitrage").
Price Comparison service websites and directories.
Loyalty websites, typically characterized by providing a reward or incentive system for purchases via points, miles, cash back.
Cause Related Marketing websites that offer charitable donations.
Coupon and rebate websites that focus on sales promotions.
Niche market and content websites, including product review sites.
Personal websites .
Weblogs and website syndication feeds.
E-mail marketing list affiliates (i.e. owners of large opt-in -mail lists that typically employ e-mail drip marketing) and newsletter list affiliates, which are typically more content-heavy.
Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website.
Shopping directories that list merchants by categories but without providing coupons, price comparisons, or other features based on information that changes frequently, so would require continual updates.
Cost per action networks (i.e. top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliates.
Ad Bars in websites (e.g. AdSense) used to display context-sensitive advertising for products on the site.
Virtual currency that offers advertising views in exchange for a handout of virtual currency in a game or other virtual platform.
File-Sharing websites that host directories of music, movies, games and other software. Users upload content to file-hosting sites, and then post descriptions of the material and their download links on directory sites. Uploaders are paid by the file-hosting sites based on the number of times their files are downloaded. The file-hosting sites sell premium download access to the files to the general public. The web sites that host the directory services sell advertising and do not host the files themselves.
Certification and training
Affiliate marketing currently lacks industry standards for training and certification. There are some training courses and seminars that result in certifications; however, the acceptance of such certifications is mostly due to the reputation of the individual or company issuing the certification.
Affiliate marketing is not commonly taught in universities, and only a few college instructors work with Internet marketers to introduce the subject to students majoring in marketing.
Education occurs most often in "real life" by becoming involved and learning the details as time progresses. Although there are several books on the topic, some so-called "how-to" or "silver bullet" books instruct readers to manipulate holes in the Google algorithm, tricks that can quickly become out of date, or suggest strategies no longer endorsed or permitted by advertisers.
Outsourced Program Management companies typically combine formal and informal training, providing much of their training through group collaboration and brainstorming. Such companies also try to send each marketing employee to the industry conference of their choice.
Other training resources used include online forums, weblogs, podcasts, video seminars, and specialty websites.
Ten years ago, affiliate marketing was a valid option for Internet marketing beginners. It was easy to make some real money. The affiliates would sign up for Google AdWords, start sending traffic to their affiliate links, and get consistent commissions paid. At the time the clicks, that were worth dollars, cost only pennies. Then Google shut down the entire affiliate marketing industry with the famous "slap". In addition to Google changing their rules, steadily rising traffic prices made the whole process a lot more expensive.
Wanting to make a million requires that you set your heart on travelling the path to achieve that goal. It's easy to get carried away, enticed by the icing on the cake and forget the cake itself.
Whatever your goal is this year, and wherever you SEE the online business going in the next few years, you need to understand and not miss the boat to earn up to six and seven figure toward your Financial freedom!
References: Matt Lloyd, Prussakov, Evgenii, Shashank SHEKHAR, Chicago Tribune,Alexandra Wharton , Shawn Collins.
Business plans are used to document an organization’s strategy and goals. They are also used in many cases to present to investors and lenders for funding.
Your business plan details your goals, and equally importantly, the strategy for attaining those goals. The process of developing your plan, and thinking through and choosing the best strategic options, is critical.
With regards to raising funding, business plans are also critical. Sure, not every investor will read every page of your plan, but many will. And all will read at least the executive summary. And, if the summary gains their attention, they will review the other key elements of your business plan.
While some “plans on a napkin” have been funded, this has generally only occurred when the entrepreneur sketching their plan has already achieved massive success such as starting and taking a previous company public. These special entrepreneurs can possibly raise funding without a plan, but the rest of us can’t.
If you are seeking funding, you need to update your business plan constantly as your business evolves. For instance, each time your business achieves new milestones, include this in your plan. It will make your business more appealing to investors, and thus improve your funding prospects.
If you’re not seeking funding, you should update your business plan annually as discussed above. State your 5-year and annual goals in this plan. And then detail how you will achieve your goals. Who are you going to hire? What marketing channels will you employ? What metrics will you manage to ensure you’re progressing towards your goals? These and other critical questions must be answered if you hope to achieve success.
Developing your business plan is a great opportunity to grow your business. It forces you to set goals. It makes you assess different opportunities. And when shared with your team, it gets your organization completely on the same page so everyone knows what he or she needs to contribute for the organization to be successful.
Writing a business plan is the first stop on the road to starting your own company. Although many other tools can help you evaluate and plan particular aspects of your business, a business plan provides you with both a road map of what you hope to achieve and a way to share how you hope to achieve it. A business plan also can help you secure credit, budget your time and money, and outline your goals for the future. Joseph Ferriolo, director of Wise Business Plans, said a well-written plan can deepen your insight and prevent future problems. "The reason for writing a plan is simple," Ferriolo told Business News Daily. "You don't know what you don't know."
Business plan formatting
Every business plan requires a few basic sections that outline your business, what it does and how it will be run. Here's what to consider when thinking about your plan:
1, Executive summary. This is usually the first section of any business plan. It gives the reader a condensed overview of what your business is all about and how you intend to accomplish your goals. Although the executive summary may be the most important part of a business plan, Ferriolo advised new business owners to write it last.
"Most people don't write a business plan because they are disciplined but because they need to get something —either a partner or financing," he said. "Once you have completed the other segments of the plan, you can write the executive summary in a way that is focused on reaching that goal."
2, Company description. Think of this section as an extended elevator pitch (That's business plan speak for a "quick" pitch of your ideas). You want to thoroughly explain the goals of your business and how you will satisfy the needs of your market. Your company description also explains the competitive advantages that you believe will make your business a success.
3, Market analysis. This section is where you explain your market research to readers, including your specific target market and why this market segment would be interested in your product.
4, Organization and management. The organization and management section tells your readers about the structure of your business and who in the company is responsible for different operations.
5, Service or product line. This section includes a description of your product or service and any associated copyright information or research and development activities.
6, Marketing and sales. The marketing and sales section includes information on market penetration and growth strategies for your business, as well as information about your sales strategies and activities.
7, Financial projections. This section outlines what your business will accomplish financially over the next three to five years. Potential investors, creditors and business partners may ask for this so they know they're making a good investment with your business.
8, Funding request. If you plan to ask for a loan or other financial assistance, then you'll need to include a formal funding request as part of your business plan. This section includes specifics about how much money you need now and how much you'll need in the future.
Keep in mind that while the sections listed above are the conventional elements of a business plan, your plan should reflect the kind of business you wish to start.
Making the most of your plan
If you are struggling to find the time to complete your plan, it can be tempting to hire an expert to help. However, Ferriolo cautioned that immediately outsourcing the task may deprive you of some of the benefit.
"I honestly think the best course is to try tackling it yourself," Ferriolo said. "You get familiar with what is needed, and you learn your own strengths and weaknesses. Then, if you decide you need help, you'll understand the value of what you're getting."
It is also critical to avoid the temptation to overstate numbers or expectations in an effort to help secure financing. While the ploy may fool some, experienced banks will do their own projections before offering you a loan. If your plan lacks adequate research or contains purely speculative numbers, it could hurt, rather than help, your prospects.
Finally, remember that the business plan should be revisited as your business grows.
"Don't just make the business plan and use it for funding —really benchmark your company against it, "Ferriolo said. "Reference the plan monthly and quarterly, and revise your research and estimates as you proceed. Being accountable to the vision you set forth will help keep you in line and successful."
Entrepreneurship is the development of a business from the ground up — coming up with an idea and turning it into a profitable business. But while the definition of entrepreneurship may be simple, its execution is much more difficult. "Entrepreneurship is the journey of opportunity exploration and risk management to create value for profit and/or social good," said Ajay Bam, a lecturer at the Lester Centre for Entrepreneurship at the University of California.
Although there are no specific traits all entrepreneurs share, there are certain characteristics that most successful entrepreneurs possess, according to the University of Illinois Centre for Economic and Financial Education:
1, Ability to plan: Entrepreneurs must be able to develop business plans to meet goals in a variety of areas, including finance, marketing, production, sales and personnel.
2, Communication skills: Entrepreneurs should be able to explain, discuss and promote their goods or services.
3, Marketing skills: Good marketing skills, which result in people wanting to buy goods or services, are critical to entrepreneurial success.
4, Interpersonal skills: The ability to establish and maintain positive relationships with customers and clients, employees, financial lenders, investors, lawyers and accountants, among others, is crucial to the success of the entrepreneur's business venture. Basic management skills are needed too, even if entrepreneurs hire others to deal with the day-to-day tasks of the business, entrepreneurs need to know whether their company has the correct resources.
5, Leadership skills: The ability to develop a vision for the company and to inspire employees to pursue it is imperative for success.
Many of history's top business leaders earned their success thorough entrepreneurship, including Henry Ford, Walt Disney, Coco Chanel, Ray Kroc, John Rockefeller, Mary Kay Ash, P.T. Barnum and Estee Lauder. Mark Cuban, Richard Branson, Bill Gates, Oprah Winfrey, Donald Trump, Martha Stewart and Russell Simmons are among today's most successful entrepreneurs.
Key tips for those wanting to enter the world of entrepreneurship:
1, Learn from others' failures. Rather than admiring the small percentage of businesses that grow to become successful, study those that end up failing. Gottlieb said this research will greatly increase your chances of success, since most companies have made common mistakes that have led to their demise. He said that having the humility to learn from the mistakes of others before making them yourself is the secret to success.
2, Make sure this is what you want. Because entrepreneurship entails so much hard work, it is critical to ensure you're following the right path, Amini said. "If this is something you really want, then think long-term, and be persistent," she said. "The vast majority of great entrepreneurs failed multiple times before they finally found the business idea that took off and brought them success." Solve problems.
3, Entrepreneurs should always be in search of problems to solve and not the other way around, Bam said. In other words, "they should not start with a solution looking for a problem," he said.
4, Be passionate. To be successful, you should find your passion and then build a business around that, Gottlieb said. "The passion is what will get you through the stumbling blocks and prevent you from quitting in the middle of the race," he said. Get advice from those who have done it.
Amini advised would-be business owners to find mentors who are successful, as well as to read books, network with people they admire and look into great educational programs to help them throughout the process.
References: Chad Brooks, MJ Gottlieb, Elizabeth Amini
