Links to Entrepreneur Resources

Posted on March 7, 2012 by wp_necbs_admin

A lot of people would want to have their own business someday. What many do not realize is that it takes much more than simple planning to start a business. Starting a business or maintaining one is a complicated process and it is not for the weak of heart. There are a number of websites on the internet that offer services that can help you manage your business properly, from planning down to expansion.

You need to remember that a business requires a lot of planning, financial decisions and legal activities. It will also require a lot of patience and sacrifice on your part. But if everything goes well, you will reap the rewards.

Every business needs a business plan. There is no specific formula for developing a good business plan. But a business plan will have the same elements found in all business plans. It will include an executive summary (business purpose), a description of the business, a plan on how you will manage your business, and financial projections. You will also need to include the necessary supporting documents.

You can get assistance from professionals. These professionals would give you business counseling services from preparing a business plan to business expansion. There are also trainings and seminars you can attend, especially those that are hosted by successful businessmen.

There are a number of factors that you need to consider when it comes to the location of your business. First and foremost, you need to consider the kind of business you’re planning. Do you want your customers to come to you or do you have to go to your customers? Pedestrian traffic is also a factor that you need to consider. You may want to put up a business in a location where there are a lot of people, but it should be accessible to your customers. A good strategy when choosing a location is to open a business close to your competitors. The reason behind this is that people generally flock to a location with similar businesses.

Before you can start your business, you need to finance it. There are a number of institutions that offer a variety of loan programs to help you start. Be very careful with these programs since they are all offered for very specific purposes. Study these well and see if you are qualified for the program.

When you’re starting a business, decide the form of business entity. The form of your business will determine the income tax return you need to file. Is your business entity a sole proprietorship, partnership, or is it a corporation?

You need to register a business name with the state government. The legal name of the business is always the name of the person or the entity that owns the business. This is required on all government forms and applications. This will reflect when you pay business taxes, such as: federal, state and even local taxes. The most common types of tax requirements for small business may include: tax permits, income taxes, and employment taxes.

Before you can start operating your business legally, you will need to obtain the necessary licenses and permits. Regulations when it comes to business vary by industry, state and locality. You must understand completely the licensing rules of the place where you will start your business. Expensive fines are usually the result of not complying with regulations for licenses and permits.

You will also need people to help you with the business. There are a lot of good sources on how to find the right people for the positions you have. You will need to fill those positions by hiring the right people. But as an employer, you need to understand the regulations that are important for the success of your business. As an employer, it is also very important that you adopt workplace safety practices, understand employee benefit plans such as the minimum standards required by the law, adopt the best management practices, and apply standards that protect the rights of your employees.

One of the ways to promote your business is by creating a website. It can help disseminate information about the products or services that you are offering and people will be able to contact you easier.

There are a number of websites on the internet that have great information on how to run a business properly. But all of them will tell you that one of the most powerful tools in marketing is a good business card. Take the time to design a good business card that is balanced in terms of design, and has all the necessary details such as your business name or logo and contact details.

The Art of Business Networking

Posted on March 7, 2012 by wp_necbs_admin

Networking is very important especially for a lot of business people and entrepreneurs. You need to go into the world, create and maintain business relationships which can be very helpful for you and your business.

Business networking has grown tremendously since the advent of the internet. Even if business networking is individual based and marketing oriented, it has brought products and services that weren’t previously available to many people.

Business networks makes use of a multi level marketing which follows a system that appoints individual distributors that work with the business by selling the products and services and by appointing other distributors under them. That individual will grow by appointing other people and motivating them to appoint others. Earnings will depend upon the network statistics and percentages laid down by the parent company.

Business networking is easy to run and easy to sell because it targets the people the business person is exposed to. This will also help increase your circle of friends and acquaintances. It can even increase one’s social influence and business presence.

Networking isn’t as easy as it sounds. It requires you to create a good and lasting impression on people. You need to be distinctive so people will remember you. You also need to be fully engaged and fully aware of the people you interact with.

Business networking tips

Networking is all about building trust and relationships. You have to be real and see how you can help other people.
You need be sure of what your goals are in networking so that you will be able to make connections with people who will be able to help you with what you need.
Visit groups that spark your interests as much as possible.
Volunteer for positions in organizations so you’d stay visible. You can then be able to give back to groups that have helped you throughout the years.
Ask questions that ask who, what, where, and how. An open-ended question opens up the discussion and shows other people that you are interested in them.
Be someone other people can rely on. People will turn to you for suggestions, ideas, and many more especially if you are known as a strong resource.
You need to be aware of what you do and why, for whom and what makes your doing it different from others.
You need to follow through quickly and efficiently.
Be able to articulate what you want and what you can do for other people.
Show your appreciation of other people. Express that you enjoy their company and ask if you could share ideas sometime.

Guide to starting a business

Debt and Equity Financing Options for Businesses

Posted on March 7, 2012 by wp_necbs_admin

A lot of people dream about having their own business. Why shouldn’t they? A good business is a good money maker. Starting your own business is not as easy as it would seem. It’s a lot more complicated and a lot more frustrating. The complexities would tire a weak-willed person. But before you can start one, there are a couple of questions you need to answer to determine if you’re indeed ready to start the business of your dreams.

Any kind of business will need money. The question is how you will raise the money for your business operations. There are two different financial strategies that can be used: debt financing and equity financing.

Debt financing

Debt financing means borrowing funds from a financial institution. It can be a good option especially for small businesses, but you should have sufficient cash flow to pay back the loans, plus interest. The benefit is that you get full ownership of your business. As long as you have good credit, enough equity to cover the payments and you’re not carrying heavy debts then you’re qualified.

Advantages of debt financing

It allows you to have control of your own business regardless of its type. You will own all the profit you will make.
The interest that you repay on your loan is tax-deductable and it lowers your tax liability every year. This will protect your business income from taxes and the interest is usually based on the prime interest rate.
The institutions or lenders from whom you borrow money do not share in your profits.
A small business administration loan has more favorable terms than traditional commercial bank loans for small businesses.

Disadvantages of debt financing

You run the risk of ruining your credit rating and make borrowing in the future difficult if you can’t make loan payments on time.
This can be very difficult to pay on time when you have large loan payments at precisely the time you need funds for start-up costs.
Some commercial banks require you to pledge your personal assets before they give you a loan. If your business fails, you may lose your personal assets.
You run the risk of bankruptcy every time you use debt financing.

Equity Financing

Equity financing can be provided by investors and partners. These people generally expect to profit from their investments. But if there is no profit, then you aren’t obligated to pay back equity contributions.

The problem with equity financing is that you are no longer the full owner of your business. Not only you will you lose the entire financial control, you will no longer have to make strategic and creative decisions for your business alone.

Advantages of equity financing

You can use all the funds you have even those provided by your investors for all the start-up costs. You can start immediately without having to carry the burden of debt on your back.
If you explain well to your investors that their money is at risk in your new business, they may understand that they may not be able to get their money back if your business fails.
Your investors may be able to offer business assistance that you may not have.

Disadvantages of equity financing

Investors will expect a share of the profits. You may not be able to own t=your business entirely.
You are expected to act in your investors’ best interests as well as your own. If you do not do what is best for your investors, you may be faced with a lawsuit.

Insurance Coverage

Posted on March 7, 2012 by wp_necbs_admin

Going through the papers and the enlisted fees on your insurance package is not only daunting, but intimidating as well. You have to go through piles and piles of technical terms and confusing computations but when you get down to it, you don’t really get the answer you need. What Tom, Dick, and Harry would love to know is what does every insurance package really cover? What am I paying for and most especially, when the time comes, does my insurance package really cover everything? This article will help you get down to the nitty gritty of your health packages, without the technical jargons.

We all assume that our insurance will cover everything from every ache and pain to your weekly catch of the colds. But as an insurance holder, you must be careful. Most of the packages cover for medical bills and emergency fees, but unless it is deemed as an emergency (i.e. an injury or an accident incurred injury) you’re better off sipping a bowl of soup in your apartment with the heater on. Just because you’re paying for an insurance policy doesn’t mean you can ultimately run to the doctors when something is off. Take precaution in complaining about your aches and pains as this can cost you more than what you pay for. Those that are deemed as an emergency case or that that requires urgent supervision of a doctor is the most definite thing that is covered. There are some companies that would cover your annual checkup at the optometrist, however, don’t go on choosing that Prada frame just yet. Contact lenses and glasses are not always covered so double check with your package provider to save yourself the unnecessary expenditure.

Now that you know that your policy may not cover a few things we need to understand the different plans that are out there. There is such thing as a Comprehensive and a Scheduled health plan. What is the difference you ask? Well before we are able to fully understand the difference between the two, we need to clarify some technical jargons first in order to avoid confusion.

First off, a deductable is the amount that needs to be paid out-of-pocket before health insurer pays its share. So let’s say it is stated in your contract that you must first pay an outright amount before the policy provider will start covering for future doctor visits and pill refills. This is the commonly overlooked clause in the book. What most people don’t understand is that there is a need for you to pay a certain amount before the company starts paying for the other bills.

Second, a co-payment is the amount that needs to be paid out-of-pocket before health insurer pays for a particular service. What this means is that there are some services that you need to pay with your own money first before the company pays you back or reimburses you. It’s simple as that. Don’t get disheartened just yet; there are a couple more things you are paying for that you need to know in order to get more from your policy.

Third and lastly, a co-insurance is the amount that the insured may also pay. There are some policies that are not so transparent when it comes to this type. You have to be a vigilant and understanding policy-holder in order to fully make use of your particular package

Now let’s talk about the different kinds of plans out there, now the types vary and are as many as there are New Yorkers in, well, New York. There are different offers and coverage that are unique with every company but when you break it down to its simplest forms, there are really just 2 types. I introduce you to the comprehensive type health plan and the scheduled type health plan. You may not hear the latter often and you might assume that what you have is the former but give it a check first.

Useful explanation of types of business insurance:

* Building / Engineering
* General Business Insurance
* Contractor Insurance
* Entertainment Insurance
* Farmer Insurance
* Product Liability Insurance
* Professional Indemnity Insurance
* Public Liability Insurance
* Workers Compensation Insurance

Now a comprehensive plan is, well, comprehensive. It covers a wide array of medical bills and fees that may incur including your physician’s fee, professional fee and so on. This is not without a catch though; there is usually a high deductable amount but what comes after will save you more than what you put out. If offers a high rate in benefit payout, but are comparably more expensive.

Scheduled type health plans are what you can call digested health plans because they only come with a few features of an actual health plan. It has the “it-is-but-it-isn’t” characteristics; it is a health plan but not really. It is the more affordable option when it comes to policies and gives mileage to your dollar but you can’t expect the same benefit payout. This type of plan is recommended for those that often need to visit the doctor and those who are dependent on some medications.

There you have it, all you need to know about what your insurance policy covers. These are just the basics and I encourage you to talk to your policy provider to discuss plans and payment schemes that are more appropriate for your lifestyle. At least on the next meeting, you will be able to address more of your concerns and actually understand the answers!

Working Out A Cash Budget

Posted on March 7, 2012 by wp_necbs_admin

Regardless of the nature of your business or how you run it, it is very important that you get to manage the cash flow in your business very carefully. You need to manage the money that’s coming in and how much is being used for expenditures wisely. It’s best that you get to use the best tools you need to manage your business.

Not all businesses are the same when it comes to cash budgets. The first thing you need to do is to determine the period of time that your cash budget will cover. You may need to make a detailed monthly cash budget or even a quarterly or annual cash budget. A detailed monthly cash budget works best for businesses that have expenditures that vary from season to season, while a business with a steady monthly expenditure may benefit from a quarterly or annual cash budget.

Once you have determined the period of time that your cash budget will cover, you need to decide how much cash your business will need to handle your expenditures. Figure out how much money is being spent or must be spent daily and even monthly. This amount of money will depend on the needs of your business. You must have enough money on hand to cover all the expenses and an additional amount of money, preferably around 20% to cover any unexpected costs. You can determine the amount of money needed by reviewing your daily and monthly expenditures.

You need to examine the cash flow for the past few months and from there you can create a more accurate estimation of how much money you really need for your business. You can create a budget template using computer programs and applications. These would tremendously help you in creating a budget plan in the future.

The Planning Process

Posted on March 7, 2012 by wp_necbs_admin

Every business requires good planning in order for it to be successful. The planning process goes through a series of stages that need to be accomplished. The aim of a business plan is to analyse both external and internal environment, set mission and objectives, formulate strategies and plans, and to build procedures of monitoring and controlling the business.

You need to remember that a successful business requires a lot of planning, various financial decisions and a lot of legal activities. It will also require a lot of patience and sacrifice on your part. But if everything goes well, you will reap the rewards.

The first step is to gather information. The purpose of gathering information is to know the business industry and competition. You need to research about existing, similar businesses in your area or where you want to put up the business you want. You also need to find similar businesses in another place that you won’t compete. You can drop by and truthfully ask about the business. The entire process of gathering data can be very difficult, if not expensive.

The second step is to establish goals and objectives. It is very important that you spell out your goals and the activities that your business will be doing so it can be tracked easily. These goals may include increasing monthly sales or profits; decreasing costs or expenses; or ways of finding new funding. These objectives do not need to be financial since goals and objectives can also be about performance, customer satisfaction, and other factors for success.

The third step is to devise a good strategy. As a business manager, you should never lose sight of your objectives, and that is why a strategic plan is necessary. This will serve as a framework for all your decisions concerning the business; provide a basis for a detailed planning; to motivate and involve other people; assist in monitoring performance; and to serve as a template for other business plans. A strategic plan can be short, but it does provide the foundation and framework for a business plan. It should be realistic, attainable, timely, and specific.

The fourth step is to implement the plan. It is very important to achieve your objectives so that roles are clearly defined and there is accountability. Implementing the plan would mean securing all the necessary elements to properly start the business. It includes choosing the location, securing the necessary licenses and permits, recruiting the necessary staff, and everything else that needs to be done. Each task that is being implemented needs to have an appropriate time frame for completion. Give yourself reasonable time to ensure competent work.

The fifth step is to monitor the performance. You or a member of your staff can monitor the progress of every task in the business. It’s ideal to meet all objectives and have all tasks done without delay. But the reality is there will be delays. When this happens, it’s best to get to the root of the problem instead of blaming someone.

The sixth step is to evaluate the plan. You already have a sound business plan, a good strategy to implement the plan, the time for you to complete all goals and objectives, and time to monitor the progress of your business. Now, it’s about evaluating all the data you’ve gathered about your plan. This is where you get to see the results and decide whether it’s best to continue to the strategy that you’ve used or to implement another.

Guide to Starting Up a Business

Posted on March 7, 2012 by wp_necbs_admin

What kind of business do I want and I am I prepared to sacrifice my time, money and resources to get it started?
What products or services will I provide and what is my unique selling proposition??
What is my target market and who are my competitors?
How will I set up the legal structure of my business and how will I manage it?
How much money do I need to start my business and how long do I have to finance it until I start making profit?

NECBS

A site about starting and running a small business

Links to Entrepreneur Resources

The Art of Business Networking

Debt and Equity Financing Options for Businesses

Insurance Coverage

Working Out A Cash Budget

The Planning Process

Guide to Starting Up a Business