By Michael Elia


Tap these treasures of ideas. The best money you can spend is money invested in your business plan education. Don't shortchange yourself when it comes to investing in your dream. Start gathering samples of business plans and collect business plan books and get a business plan library started, it can change your future. Here's what your library needs to show: that you're a serious student of business strategy and planning, finance and economics, selling, and writing.

Sample Business Plans

Start by gathering sample business plans. Look at the annual reports and S-1s, S-4s, 10ks, or 10Qs filed with the Securities and Exchange Commission (SEC) of companies in your industry. See how they present their case, explain their business, and discuss their industry and competition.

What exactly are these forms and how do you get them? Good question.

These are forms that public companies must file with the SEC in order to register their securities or to maintain the registration of previously registered securities with the SEC. You can find these forms by going to www.sec.gov, clicking on the Edgar database, and searching for a public company in your industry.

The key is to find the most helpful filings. These are the ones labeled S-1, S-4, 10K, and 10Q. They usually contain descriptions of the business, its products, industry, competitors and strategies. Sections that should sound familiar to you if you are planning to write a business plan.

Go to these sections and read how the company presents their business and its products. Look at how they describe the industry and their competitors. I encourage you to read as many filings in
your industry as possible. See what the “big guys” are saying, the issues, challenges, and trends they see in the industry and how they’re attacking them.

Be careful though about mimicking what they write. Many of these documents are written in legalese despite the SEC’s protestations and push for plain English. Just remember, you’re doing this exercise to see how other companies have built their case to business investors.

Another approach is to gather and read professionally written business plans of companies in your industry and use them as guides to prepare your plan. Try to avoid generic business plan templates. They're too general and often not worth the investment. Either way. Start filling your
business plan library with business plans and registration statements. Keep them close by and refer to them often as you write your business plan.

Strategy

Now, here's a good book to start your business plan library with. It's called: Competitive Strategy by Michael Porter. In this landmark book, Competitive Strategy, Porter shows you how to identify the forces that drive competition in your industry. Learn what moves your competitors are likely to make within it. Competitive Strategy provides a framework for evaluating the competitive alternatives you must consider and for thinking about how to change the rules of the marketplace in your favor. Competitive Strategy is the bible venture capitalist, investment bankers, and business development executives use when analyzing an industry or business venture. I use this book as the centerpiece of my business plan library. So I'm just asking you to take a look at Competitive Strategy by Michael Porter. If it suits you fine, if it doesn't suit you, keep looking till you find something that helps you understand strategy.

Opening your mind to strategic alternatives is a creative process. You can never have too many books on strategy in your business plan library. Read as much as you can to learn why some companies can sell their products more cheaply than others. Why others provide the best products...products that are just far superior to their competition. And, why some companies just always seem to provide unmatched service.

Fill your business plan library with business books that inspire, challenge and answer these questions. Read. Read. Read. And, study too. Find out how some companies are reinventing competition in their markets and obtaining funding while others are seemingly oblivious to the changing world around them.

Michael Treacy and Fred Wiersema set out to find answers to these types of questions in their book The Discipline of Market Leaders. Although the authors won't appreciate this comment, I found the underlying fundamentals in The Discipline of Market Leaders to closely parallel those laid out by Porter in Competitive Strategy. Perhaps that's why I like it so much. The difference, however, is that they present their material in a less academic, more engaging way. And, they provide excellent case studies that are sure to generate many aha's! The Discipline of Market Leaders will make you think about what it is your company or new venture does better than anyone else; what unique value do you provide to your customers? How will you continually increase that value? If you can't easily answer these questions about your business, The Discipline of Market Leaders is required reading and a must for your business plan library. The business owners and entrepreneurs that can answer these questions are not only raising the value bar in their industries, they're raising capital for their businesses!

Finance and Economics

Be sure to keep your business plan library well balanced...

Let me give you a sense of that balance. First is finance and economics. We all have got to have a sense of how to make money...the universal laws of business success, no matter whether you are selling fruit from a stand or running a Fortune 500 company. Finance and economics are the basic building blocks of business. Your business plan library needs a few books on the numbers. When you understand the basics of finance and economics its possible to bringing the most complex business down to the fundamentals. You become empowered to focus on the basics and make money from your venture.

Here's a good book to help you in this area: What the CEO Wants You to Know by Ram Charan. What the CEO Wants You to Know captures the basics of finance and economics and explains in clear, simple language how to do what great business owners and entrepreneurs do instinctively and persistently. Charan explains the basic building blocks of business and how to use them to figure out how your company can, does, or will make money and operate as a total business. Learn how to use these building blocks to cut through the clutter of day-to-day business and the
complexity of the real world. What the CEO Wants You to Know by Ram Charan. This little book is only a 137 pages: but I'm telling you, it's so well written you'll be as intrigued as I was. What the CEO Wants You to Know by Ram Charan. Get it for your business plan library.

Writing

Next is writing. You have to be able to get your thoughts down on paper. Businessese, academese, legalese - all appear too often in business plans. Often preventing a knowledgeable writer with good intensions to fail at getting the message across to an intelligent, interested reader. For some reason, when people write business plans they are compelled to write "commence" and "prior to" instead of "begin" and "before." If you want to write an effective business plan, your business plan library must have books on how to be an effective writer.

Start with Edward Baily; he wrote a surprisingly straightforward book called The Plain English Approach to Business Writing. This book, The Plain English Approach to Business Writing, is about writing as you would talk, which not only makes your writing easier to read, it's also makes
it easier to write. In a brief, entertaining 124 pages Baily clearly lays out the dos and don'ts of plan English, illustrating them with examples drawn from business documents, technical manuals, trade publications, and the works of writers like Russell Baker and John D. MacDonald.
The Plain English Approach to Business Writing offers practical advice on clarity, precision, organization, layout, and many other topics. Best of all, you can read it an hour...and use it for the rest of your life.

But writing well is only a part of writing. A good business plan must be persuasive. Listen carefully to what I just said: persuasive. Not misleading or untruthful, but persuasive.

Here's a book you need to look at Persuading on Paper. How's that for a title? Persuading on Paper by Marcia Yudkin. Yudkin is a writing consultant who coaches small-business owners and professionals on improving their marketing materials. In a witty and vivid style, Persuading on Paper shows you how to use the written word to convert strangers to prospects to paying customers (or in our case, investors). What I like about this book is that Yudkin takes you step-by-step through the process of creating marketing materials that sell. Don't underestimate the power of marketing copy in your business plan. You'll be surprised how her methods and strategies can help create a more powerful business plan. Persuading on Paper is a must-have for anyone who wants to attract more clients, customers, or investors.

Raising Capital

Next is an understanding of the process of obtaining capital. No business plan library would be complete without a book on the process of raising capital. Without capital your venture is destined for failure. You need to learn how to select the right venture capital firm, make presentations, and negotiate your deal.

Try this book: The Venture Capital Handbook by David Gladstone. As an executive officer at Allied Capital Corporation, a large publicly-owned, venture capital firm in the United States, David has reviewed many proposals for venture capital financing. The Venture Capital Handbook
takes you through the entire process from presentation through negotiations, commitment letters, legal closings, due diligence, the exit by the venture capital company, to when the entrepreneur is left to own it all. As a result, The Venture Capital Handbook provides anyone who wants to spend the time and money with an insight into what venture capitalists really want. Prepare for the process of raising venture capital with The Venture Capital Handbook.

Selling

Finally, study the art of selling. Like it or not, when you are trying to start a business venture or raise money for your business you have to sell investors on why they should invest with you. It's like a rite of passage. But fast talking salesmanship won't raise the money you need for your business. You need an approach that respects the power of the investor…one that builds a relationship with investors. So, fill your business plan library with books on selling and presenting.

Here's a book to try: Socratic Selling by Kevin Daley with Emmett Wolfe. Socratic Selling as the title implies, uses the Socratic Method: "A method of teaching or discussion, as used by Socrates, in which one asks a series of easily answered questions which inevitably lead the answerer to a
logical conclusion" (Webster's Unabridged). Dalely's concise, easy-to-follow chapters explain how to open a sales dialogue and go right to the heart of the matter. Socratic Selling is a fun and informative 162 pages for those of us who believe selling means talking with, not at, investors. Study these techniques; they can make you more effective with potential investors.

If you are serious about writing your business plan...show it. Start a business plan library that shows you are a serious student of business plans. Fill it with business plans, public filings and annual reports of businesses in your industry. Stay away from those generic business plan templates. They are too general. And, Read, read, read and study too about strategy, finance, economics, writing, selling, and how to raise capital. Spend the money. Buy the books. The reward can be great...a funded business plan.

By Shaun Fawcett


My two "writing help" websites receive well over two million visitors per year looking for information and templates to help them with their writing. With that many visitors I get a pretty accurate idea of exactly what people are looking for in the way of letter writing help. In fact, a significant number of people arrive at my site based on the search phrase "business letter".

Now, at first glance the term "business letter" makes sense. But, just wait a minute here! What exactly do they mean by "business letter"? Well, it turns out that they're not sure. What it boils down to in many cases is that the person doing the search is involved in some kind of "business" (as owner or employee) and they need to write some kind of "letter" related to their business. Hence, their search phrase of "business letter".

I often get e-mails from people asking me if I have any business letter templates, or if I can write them a business letter. Invariably, I have to reply to them asking "what type of business letter, what is the specific purpose"? The fact is; "business letter" is a very general term that can mean one of many different specific letter types.

Accordingly, the rest of this article is going to explain exactly what business letters really are.

Despite the widespread use of e-mail in commerce today, traditional business letters are still the main way that the majority of businesses officially communicate with their customers and other businesses.

This is especially true when businesses want to formalize an agreement or an understanding. So far, emails are great for all of the preparatory work, but a formal business letter is still most often needed to "seal the deal".

There are two overall categories of business letters: business-to-business, and business-to-customer.

BUSINESS-TO-BUSINESS LETTERS

Most business-to-business letters are written to confirm things that have already been discussed among officials in meetings, on the telephone, or via e-mail.

Can you imagine the letters that would have to go back and forth to cover all of the questions and possibilities that can be covered in a one-hour meeting, a half-hour phone call, or a few quick e-mails?

The main purpose of a typical business letter is to formalize the details that were arrived at in those discussions, and to provide any additional information that was agreed upon.

Over the years, certain general standards have evolved in the business world that the vast majority of businesses use in drafting their business to business correspondence. The Top 10 business-to-business letters that people search for at my writing help websites, in order of popularity, are as follows:

1. thank you letter

2. introduction letter

3. cover letter

4. financial letter

5. marketing letter

6. sales letter

7. project letter

8. invitation letter

9. employee letter

10. congratulations letter

Even though the above terms are much more specific than the general term "business letter" there are multiple types of each of the above letters, depending on the purpose of the letter. For example, a business-to-business "financial letter" could be: collection letter, credit approval letter, credit refusal letter, invoice, price quotation, etc.

BUSINESS TO CUSTOMER LETTERS

There are many different types of business-to-customer letters. They include: sales and marketing letters, information letters, order acknowledgement letters, order status letters, collection letters, among others.

As with business-to-business letters, over the years certain general standards have evolved in the business world that the vast majority of businesses use in drafting letters to existing and potential customers.

Of course, going in the other direction are customer-to-business letters. These include: order letters, order status inquiry letters, complaint letters, and others.

Since these are customer-generated letters, there is no particular expectation that they follow any particular letter-writing standard. Typically, they are handled just like any other piece of personal correspondence.

The Top 10 business-to-customer letters that people search for at my writing help Web sites, in order of popularity, are as follows:

1. cover letter

2. customer relations letter

3. financial letter

4. credit letter

5. introduction letter

6. order-status letter

7. sales letter

8. marketing letter

9. announcement letter

10. apology letter

Similar to the situation with business-to-business letters covered in the previous section; even though the above business-to-customer letter types are much more specific than the general term "business letter", there are also multiple types of each of the above letters, depending on the purpose of the letter. For example, a business-to-customer "customer relations letter" could be any one of : response to a complaint, follow-up with a new customer, interrupted service notice, letter of acknowledgement, special invitation, welcome to new customers, etc.

BOTTOM-LINE

As you can see from the above, specifying that you are looking for a "business letter" is not very helpful. You need to be specific and define the purpose of the letter; that is, exactly what is the letter meant to communicate?

It's important not to confuse non-business letters with business letters. For example: job application letters, cv and resume cover letters, employment and college related letters of recommendation, character references, resignation letters, etc. are NOT business letters.

You might be surprised to learn that over 75% of all visitors to my main writing help website are searching for information on how to write just the Top 20 letters listed above. In fact, it turns out that a full 90% of the more than 1.5 million people that visit that site each year looking for letter writing help are looking for help with one of a list of 25 letters.

That's why all of my letter writing toolkits focus on multiple variations of about 40 specific letter types that cover over 95% of ALL letters ever written.

By Cathryn Austin


So now its time to take that big plunge and be your own boss. Where will I start? What do I look for? And for that matter what business will I buy? Will I relocate? Can I get finance? Who do I go to for the right advise?

These are just a few of the concerns when you decide on buying a business and believe me its not an easy road ahead, but with the right advise and the right business for you there are rewards unlimited to help you on the way to building a bank and a good quality of life. This article will help you all the way.

Important Points when Buying a Business

Every day I receive emails from purchasers and business owners needing assistance in selling or buying. I use my many years of experience in business sales and running a chain of shops to assist them in the right decision for them. It’s a bit like a psychologist really. Its just not a sale for me, it's a dedication.

The first thing to remember is you must get it right the first time because the business you buy you should be in for at least 4 to 7 years. I advise my vendors and purchasers to give yourself a 4 year plan. You may love the business so much you want to stay longer but the majority of people are burnt out after 4 years and are looking for a change, especially if it’s a café or restaurant, and if you feel it's wearing you down the business will suffer if you don’t sell then and of course you won’t achieve a good price if the business is run down.

Finding a Business!

I find in my business newspaper advertising brings me very little sales. My statistics tell me a genuine purchaser will go to the search engines to find a broker and scan the listings. We do use the papers to get our website name out there and this works to our advantage far more than a long expensive add that lasts one day. Our site www.bestbusinessbuyes.com.au is the most valuable tool we have and our journal Best Business Buys gives you months of good reading to give a purchaser information on how to buy and where. So scan the net under search engines business brokers, if you can not find a business on our site there are other brokers listed that may be of assistance to you. Or better still tell us what you want and we will go find it for you!
Anywhere in Australia.

Problems with Newspaper Adverts

You will often see a private add in the paper and you may think this is great, we will cut out the agent and get the business cheaper.

DON’T BE FOOLED!

Now I am not saying all private adds are no good, some may work out, but in my experience those people who try to do it themselves do it because they have either been burnt by an agent not servicing their business, so they think they will do it alone, or the profit is low in the business and they need a quick sale, or of course the common one the agents fee offends the owner and he thinks he can do it better himself. Or he may think the advertising costs to sell his business is less if he dose it himself.

WRONG!

When you are dealing with a private sale you feel uncomfortable saying what you really think, and uncomfortable asking certain questions so as not to offend the owner. With a broker you can be open and tell us all your concerns. We will work them out with the owner and rectify them if possible. We as the agents should now the business as well as the owners, that’s our job. I look at a business when I list it as my own and sell it as if it was my own. A good broker should be there to help you with that sale to the end. Too many owners who try to sell themselves end up in conflict with their buyers.

And after a few months of failures TRYING to qualify buyers he finds out it's not that easy & worst of it he has given out his figures all over town for all the clients to see, so the business you are looking at has been exposed to untold people who may be using that information to start down the road.

The poor owner ends up coming to us anyway. Remember if you stay with the broker handling the sale of the business he should be the one to assist you all the way, and if that business does not work out the best for you he most often then not will find you another.

You Have Found the Business you Want to Buy!

The first thing you will need is finance. Are you already cashed up? Or do you need finance. Are you on a redundancy package? These are all the questions your broker should ask before you plunge into a sale.

We are financiers and finance most of the businesses we sell without supplying figures to obtain the loan. Remember the majority of businesses do not always show the true figures of the business but if you look back at the ad backs of that business the business may be a very viable business. Most accountants will reduce the net profits for a business, so the tax implications are not so high for that business. If the adjusted profits are good the business is saleable and your broker will advise you of this at the time. But never, ever buy a business on hearsay of the takings, if its not in BALACK AND WHITE in the accountants formatted profit and loss statement then its not considered saleable. Never buy unseen profits.

Business Finance

For finance to buy the business you will need to complete an application. This way you will know how much you can afford to borrow on the business you are looking at. Not all Brokers are financiers! We are and sell businesses because of it. We use a financier who lends without looking at the figures of the business you are about to buy. But with other institutions such as banks or private lenders you will need the following.

We will arrange finance for you without an up front fee. Most finance brokers charge a fee of between $3,000 &$ 6,000 to get you your finance. We at Arwon Realty do this FREE because we are paid on settlement to sell the business by our vendors (owners). It is in our best interest to get the finance for our buyers so we in turn can get the business sold, and therefore offer a better service to our vendors when listing their business. We finance 90% of all business sold!

What will I need to supply to my Finance Broker?

- Profit and loss statements of the business you are purchasing

- Bank statements for your own personal accounts.

- Pay slips of your current employment or if self employed a profit and loss statement for the past three years of trading

- Mortgage documents for your existing home or properties
or sales contracts for freehold you hold in your and your partner’s name.

- Personal information, date of birth or passport (photo copy of drivers license)

- CRA credit check (you can do this yourself for a cost of $29.00)

- The rates notice of the homes in your name

- Liability and asset declaration.

- The amount you needed to borrow (You must include the cost of solicitors for advise and contracts.)

Accountants advise: Do it! That way you know you are covered. I have lost many sales from Accountants advising their clients not to buy and seen many unhappy buyers loosing out on a sale because an account has breezed over the figures and said no don’t buy! But at least if you do take the plunge and buy anyway after you have had that advise you are assured you did get advice if something does go wrong. After all your accountant is paid to look after you and professional accountants will ring us or the vendor's accountant to get the full story of the business!

There are good and bad accountants just like there are good and bad brokers. It's important to check the licenses of all your professional people. Find out how long they have been in the profession and their experience in that field before engaging them.

We work with both the accountants while selling the business and are more than happy to answer all questions relating to the business in question. We will also arrange appointments for your accountant to speech with the vendor’s accountant if required.

It’s always wise to stay with the accountant who handles the business you are purchasing, that’s if he is a helpful accountant, if he knows that business well. It’s a big plus to continue on with him, after all he is the one that will advise you when you are ready to sell.

Many people use more than one accountant today. I find a good accountant who knows a business well is a must to stick with it till the end. I have dealt will some excellent accountants. Two that come to mind are in my local town and are as good as any on this planet they are dedicated to their clients and have help me evenly throughout my last two sales (MCW Accounting Tumut, Paisley's Accounting Tumut and Steven Walker & C.O Tumut) These accountants are totally dedicated to their client's businesses and have enhanced the sale of two of the best businesses in town by showing truthful and accurate accounting.

Your Business Broker

As Brokers we will supply your accountant a profile on the business so its easy for him to understand. Always insist on a profile when looking at a business. This will give you all the information you need to convince you this is the right business for you. It will include all the statistics of the business and a good breakdown of the figures the reasons for the sale price, etc.

Your broker may ask you to sign a confidentiality agreement. This is essential to protect the vendor under the confidentiality act. Sign it and send it back ASAP. It does not commit you to buying the business. It is a mandatory requirement before you look over the figures. You will find your broker will not send you figures if you don’t sign.

If you have made your decision to buy the business be sure you are proceeding before you commit! Put in an offer only when you are ready to proceed. Is this is the business for you can you see yourself in for the next few years? Is the family happy with the move and the change, and most of all is the business viable for you?

I sold a produce store in Tumut recently to a buyer from Magnet Island who owned a bed and breakfast (would you believe), and they are just loving it and doing very well, so don’t be scared to take the plunge and move on. Most of our buyers are relocating and the stories I have to tell are just amazing!

Look around be sure the area is where you see yourself for the next 5 years. If you are relocating ask your broker to give you the statistics on that area, home prices schools etc.

As Brokers and licensed Business agents we pride ourselves on relocating people and finding them the best business for them, but it’s a big plus if the buyer has some idea of what he feels comfortable working in, and after we produce the information to him and his accountant we expect if all is ok he will proceed. If you have doubts tell your broker. Its unfair to hold up the sale for another interested party.

You will then need to sign an offer to purchase the business. We have a standard offer to purchase, this will give you the rights to proceed. The time normally for the option is one week from agreeing to proceed and this also takes the business off the market. It includes a deposit normally of 1% of the purchase price. This deposit is not refundable should you decide to pull out of the sale, unless it specifies subject to the reasons why you have pulled out.

So do your homework first! Be sure your accountant is happy with the figures. Your finance is approved and you are confident you are 100% proceeding before you signed on the dotted line.

Your broker will then issue sales advice to the Vendors Solicitors with all the conditions included that you require, such as the lease terms and training requirements. After they have looked over the advice and done their investigations for the sale they will prepare the contracts and send them to your Solicitor for exchange of contracts. You will need then to pay a 10% deposit on the business. This is normally arranged by the finance broker, if you have applied for finance, and can be done in a deposit bond or cheque. This is deposited into your agent's trust account until settlement.

You should have a Solicitor picked out before you decide to look around so you are confident with him when you are ready to proceed.

At Arwon Realty we stick tight with the Solicitors through out the sale keeping in contact with them throughout the progress all the way for a smooth settlement.

The contracts should take no longer than 2 weeks to prepare and when the exchange of contract takes place this means you now are totally committed to purchase this business. Any problems should be sorted out between the two solicitors in this time.

The contracts are exchanged between the two solicitors and settlement should take place in the next 2 – 4 weeks. Business sales are always longer than the normal residential sales as the solicitors are responsible to see you have a new or exchanged lease for the business. If the property is included in the sale a 149 certificate (zoning and compliance certificate) must be sort by the council to check out the compliances with council this take longer than normal.

Before settlement you have 2 weeks prior and 2 weeks after settlement for training. Your vendor must give you this time to help you understand the running of the business. We advise the training is done after settlement so both parties are not showing their nervousness while running the business. This could cause the customers to feel a little uneasy.

We advise our vendors not to inform the staff of the sale until exchange of contract for the same reasons. Your finance must be in the solicitor’s office 48 hours before settlement for a smooth transaction. Your agent will hold the deposit of the business 10% on exchange of contract and this will be in her trust account until she receives an order on the agent from the solicitors on both sides.

Settlement Day!

We will be there with you for the stocktake. Now some businesses advertise their business WIWO. That means whatever the stock is in the business when you take over is yours and we don’t count the costs of the stock on settlement. If the add states + stock then we have to stocktake before settlement and this is done before mostly the evening before, after close of the till, with both present and an independent person to help with the stocktake.

So now you are the proud owner of a business that should if your broker has worked for you be the best asset you now have and we wish you all the very best of luck and look forward to the day we can asset you in selling for a higher profit!

By Vishal P. Rao


Good ideas are literally "a dime a dozen". Individuals conceptualize revolutionary new products and new services with each passing minute of each day. Although there is such a steady stream of ideas that can be marketed successfully and developed into a lucrative business, there are actually few new businesses that make it past the "initial stages" into actual existence.

Why is this, and what factors contribute to the abandonment of great ideas that could've possibly netted the creators a small fortune?

There seem to be two major psychological forces at work when a great idea is abandoned before completion or a business fails for no apparent reason. These two psychological syndromes are:

1. Fear of Success 2. Fear of Failure

It is a very frightening prospect to start and maintain a home-based business. There's no doubt about that. And every business owner feels the "fear" of being responsible for their own destinies, and for their own futures. It's quite common, to be somewhat nervous and stressed about our businesses, especially in the beginning.

Conquering this fear is a necessity, however, as no one can be effective in a business if they allow the fear to overwhelm them.

Fear can be "healthy" in a way, as it can keep an individual alert and aware of any failures of the business, which thwarts problems before they start. Fear can also be "unhealthy" when an individual experiences such fear that it leads to inaction and the business never really gets off the ground as a result.

The two fears above seem to be the most prominent among new business owners. In the first, Fear of Success, a new business owner may have a great idea, and may develop every facet of the business thoroughly, yet they never seem to "open" the doors of the business. They may find excuse after excuse, why they can't really put the business into play, although all facets of the business are established. They may find that they run into repeated crises in their lives, sickness of themselves or a loved one, disasters that are not "really" disasters crop up repeatedly. This is simple Fear of Success, and part of a psychological pattern.

Although crises do occur to us all, we go on with life despite these, and no one has crises that are continuous. A business owner with this syndrome is merely afraid that success will "change" their lives and they are afraid they won't be able to cope with the changes. Of course, success will change someone's life. However, the Fear of Success can be so overwhelming, that some new business owners simply let the business fall by the wayside, thereby ensuring its failure. After all, if the business fails to get started or to succeed, they never have to face the reality of their "Fear of Success".

The second fear is just as detrimental as the Fear of Success. This fear is the Fear of Failure. This fear seems slightly more common and is characterized by the inability of future business owners to even get "started" with any plans or any concrete method of establishing a business. They constantly procrastinate in even the most simple of business chores. They fail to ever establish the business in any way, and for the most part are always promising to "start tomorrow", only tomorrow may never come. They also may jump from "idea to idea" always hatching a new plan for the next great business. Unfortunately, the plans are the only thing that is ever hatched, as nothing concrete ever materializes. They can be seen by their family and friends as mere "schemers"/ "daydreamers".

Occasionally, business owners can "waver" between the two fears, actually experiencing both Fear of Failure and Fear of Success simultaneously, becoming almost paralyzed with the emotions of all this, and unable to attend to the business with any degree of rationality. They can start businesses over and over, or make plans for businesses over and over, and yet never see any real degree of success.

These fears, like all other fears, can be overcome. There are many methods to use to overcome them:

1. A business owner needs to stop "projecting the worst case scenarios" onto the business. This is by far the most effective method. Business owners that worry too much about the worst happening, eventually make this projection a reality.

2. Business owners need to be realistic about the timeframe involved in success. A good business may take months or even years to stabilize.

3. Business owners need to be aware of their own feelings and motives. When "stalled" within a business, they have to question their own inner emotions and ask themselves if perhaps their emotions are overruling their own common sense.

4. A business owner will need to have as much personal and business support as possible behind them. This includes family, friends, and of course, other business people. Knowing we are not "alone" can easily alleviate misgivings and misconceptions.

5. A business owner should take time to relax and de-stress whenever needed. Fears become more palpable and real during times of extended stress.

6. Business owners should always have well thought out plans of action. Good plans reduce stress and the symptoms of stress, which exacerbate our fears overall.

It is best if any potential business owner addresses their fears and their approach to life as well as their motives before starting a new business. It is better to address any underlying issues prior to beginning a business, as addressing them while "within" the throes of a hectic business start up is difficult, if not impossible.

Remember all fears can be conquered, and it is better to have tried and failed than never to have tried at all!

By Danna Henderson


The development and expansion of the Internet has made business opportunities, once only available to the wealthy, available to nearly everyone. In the past, opening a business was a huge commitment in terms of finances and risk. Traditional business owners had to quit the their current jobs, obtain bank financing, and sign leases before they even made a penny. It’s easy to see why 95% of them failed within five years. Today, business opportunities are available to anyone willing to put in the time and effort to learn about the world of e-commerce. Best of all, you can start an e-commerce business with minimal funds and very little risk. This guide will take you though the steps necessary to start your own e-commerce business.

Find Your Niche

The first step to creating your own e-commerce business is to find you niche. Examine your hobbies and interests for potential business ideas. If you love soccer, consider selling soccer supplies or team uniforms online. You may also consider opening a business that is similar to your current job. For example, as a nurse you may know a lot about medical supplies and how hospitals obtain them. You could start a medical supply business. Your contacts and industry knowledge could give you an advantage over a competitor who does not know the inner-workings of hospitals the way you do.

Research The Demand

Now that you have a few business ideas, it’s time to research the demand for your products or services. If you plan to sell to the general public, you’ll want to find out how many people are looking for your products or services. As a small business owner, you will not have the marketing funds to create a demand for a product. The products you sell, must already be in demand. A great way to determine product demand is to see how many people are searching for a specific product. Overture has a wonderful keyword tool (http://inventory.overture.com/d/searchinventory/suggestion/) that displays the number of searches for specific keywords. It will give you a good idea of which products are popular and the specific keywords you should target when building your website.

Scope Out Your Soon-To-Be Competitors

Before settling on a business idea, scope out your would-be competitors. Visit their websites and compare the following:

· Professional Look & Feel

· Products and Services

· Search Engine Ranking

· Page Rank (Available on the Google Tool Bar)

· Keywords

· Back Links (how many sites link to them).

You’ll need to know your competitor’s websites inside and out. Spend some time exploring each one. This will give you an idea of what you’re up against. Keep in mind, that your website will need to be equally as professional or better than theirs. Don’t worry if you don’t think you have the technical skills necessary to create a professional website. The use of professional website templates will be explained later.

While you’re researching your competitors, check to see if the products you intend to sell are sold at large department stores such as Wal-Mart, Target, and Amazon.com. It is very difficult for a small business to compete with these large companies because the profit margins are extremely low. You’ll need to sell products that are in demand, but aren’t sold by corporate giants.

Establish A Business Entity

In order to conduct business, you need to establish a business entity. Fortunately this can be as easy as filing a “Doing Business As” or “Fictitious Name” form with your local County Clerk’s office to become a sole proprietor. When you arrive at the County Clerk’s office, they will check their records to make sure your intended business name is not already in use. If it’s available, you will need to complete the appropriate forms and pay your filing fee. Each state has different requirements. Check with your state for requirements on becoming a sole proprietor.

You will also need a sales tax id. You will need to charge sales taxes in the state where your business resides. Contact your county office for details about sales tax ID’s and any other requirements they may have.

Open A Business Bank Account

Now that you are a legitimate business owner, it’s time to open a business bank account. Take your court documents to the bank and open a business checking account. Most banks offer a variety of business accounts. Choose the one the best meets your needs. It’s usually best to start with their least expensive account because it could be a while before you start earning revenue. You can always upgrade in the future.

Some banks require a business owner to wait specified amount of time, usually 90 days, after the court documents are filed before opening a business bank account. These rules are in place to help prevent fraud. Check with your bank to obtain waiting period information.

Choose A Domain Name

While you wait to open a bank account, you can start building your website. First, register a domain name. Names that end in “.com” are best. If possible your, domain name should include one or more of your target keywords. For example, if you are creating a yoga supply business, you’ll want to choose a name with the word yoga, such as yogacenter.com, yoga-supply.com, or yogastuff.com.

Create Your Website

One of the keys to successful e-commerce businesses is a professional website. Your website is the first and often the only impression your visitors will have of your business. A professional website can be the difference between your visitors viewing you as a home-based business operating out of your garage and a multi-million dollar business with hundreds of employees. Fortunately, you don’t need to be a web programmer to create a professional website. There are companies that sell professional website templates. You can get website templates for free, but it’s much better to pay for a highly professional template. To find these templates, simply search for “website templates”. You should expect to pay $50 – $150 for a good template with multiple pages and professional images.

Most website templates can be customized with common HTML editors and a simple graphics program. Templates can be edited without having to invest a lot of time and energy into learning how to code web pages.

You’ll want your website content to target specific keywords. This can be achieved by creating articles, product reviews, product comparisons and detailed description of your products. Avoid repeating the keywords so often that the text becomes difficult to read. There is a fine line between good copy text and spam text. Spam text is designed to increase your site’s listing in the search engines, but often backfires when penalties are issued and your website is dropped from the listing.

Host Your Website

Now that your website has been created, it’s time to find a company to host your website on their servers. You should be able to find a good hosting company for around $10 per month. This fee should include technical support and email accounts with your domain name. Domain name-specific email accounts are important for a professional image.

Your website files can be uploaded with a simple FTP program. The hosting company’s technical support personnel can walk you through the steps to upload your files and launch your website.

Implement A Shopping Cart

No e-commerce website is complete without a secure shopping cart. There are many shopping cart options. Many e-commerce business owners make the mistake of using Pay Pal to accept payments, which immediately tells visitors that their company is very small and not professional.

A good alternative to Pay Pal is a remotely hosted shopping cart. Remote shopping carts take the burden of maintaining security and credit card numbers off your shoulder and places the responsibility on another company. Remote shopping carts can usually be configured to look similar to your website. In fact, your customers may not realize that they have left your website to place an order. The remote shopping cart provider will give you the HTML to add to your website. When your potential customer clicks on the Buy Now button, he or she is taken to the remote shopping cart to enter the personal information and payment details.

Depending on your choice of a shopping cart, you may or may not need a merchant account to process transactions. Some shopping cart services allow you to use their merchant accounts for a slightly higher fee.

Stock Your Inventory

Now that your website has been created, it’s time to stock your inventory. The first step is to find the manufacturers of the products you wish to sell. You can find this information by reviewing your competitor’s websites. Some of them may list the manufacturer with the product name or description. Once you have the name, you can search for the manufacturer online.

Contact the manufacturer and tell them that you are interested in becoming a distributor. Ask for a wholesale price list and an application. The price list will help you determine if the profit margins are high enough to justify selling their product.

You’ll want to ask the manufacturer the following questions:

· What is the MSRP (Manufacturer Suggested Retail Price) for the item?

· Am I required to sell the item at MSRP?

· What is your minimum order quantity/amount?

Some manufacturers will not sell to e-commerce businesses that do not have a brick and mortar retail location. If this is the case, you’ll simply have to find a company that manufactures a similar product and is willing to sell to an e-commerce business.

Promote Your Business

Now that your website is live and you’re open for business, it’s time to promote your website. If no one knows that it exists, you will not receive any sales. Most website visitors originate from search engines. Before search engines can list your website, they have to know that it exists. You’ll need to submit your website to search engines and directories such as Yahoo!, DMOZ, Excite, and others. Search engine submission programs and services are available, but they not effective. Most good search engines require websites to be manually submitted. They enforce this by displaying an image with a series of letters or numbers that automated programs cannot read. The code embedded in the image is required to submit your website.

Search engine algorithms are extremely complex. The ranking of a website in their search results depends on a number of factors, including keywords, density, back links, page rank, and other factors. After submitting your website to the major directories and search engines, the next step is to establish back links. When search engines crawl the web and find a link to your site, they count the link as a vote for your site. The more votes you have, the higher your site will rank (assuming other criteria has also been met). You can acquire back links by sending emails to other website owners and offering to exchange links. It’s very difficult for new websites to acquire back links. Most people prefer to exchange links with established websites. In a way, it’s a catch-22, but it can be done and the results are worth it.

Starting your own e-commerce business is a lot of work. Making it successful is even more work, but the pay-offs can be rewarding. Thanks to the explosion of the Internet age, e-commerce business opportunities are now available to anyone with a computer, a few hundred dollars for start-up costs, some spare time and the desire to create a business.

By Terri Zwierzynski


Don't let these stop you from having a business plan for success!

A recent study of 29,000 business startups noted that 26,000 of them failed. Of those failures, 67% had no written business plan. Think that's a coincidence?

Here's the top 10 myths Solo Entrepreneurs often have about business plans-usually, the reasons why they don't have one. De-bunk the myths, and see how having a business plan for your solo business, can actually be easy and fun--and can jumpstart your success!

1. Myth: I don't need a business plan--it's just me!

Starting a business without a plan is like taking a trip in a foreign country without a map. You might have a lot of fun along the way, and meet a lot of friends, but you are likely to end up at a very different place than you originally set out for-and you might have to phone home for funds for your return ticket.

Solo Entrepreneur Reality: Successful Solo Entrepreneurs know that the exercise of creating a business plan, really helps them think through all the critical aspects of running a business, make better business decisions, and get to profitability sooner.

2. Myth: I have to buy business plan software before I can start.

Business plan software comes in many shapes and sizes, and prices. Many are more geared at small and growing businesses with employees.

Solo Entrepreneur Reality: Business plan software can be helpful-but it's not required. Software is more likely to help if you have a more traditional type business, like a restaurant or a typical consulting business.

3. Myth: I need to hire a consultant to write my business plan.

Consultants are an expensive way to have your business plan written.

Solo Entrepreneur Reality: Your business IS you-and you need to be intimately involved with the creation of your business plan. A better strategy, if you think you need professional help, is to hire a coach or mentor-someone who can guide you in what you need to do, not do it for you.

4. Myth: The business plan templates I've seen have all these complex-sounding sections to them-I guess I need all those?

The only time you need to follow a specific outline is if you are looking for funding.

Solo Entrepreneur Reality: Your business plan needs to answer ten basic questions-that's it! Don't make things more complicated than necessary.

5. Myth: My business plan needs to be perfect before I can start my business.

If you wait for everything to be perfectly detailed, you may never start.

Solo Entrepreneur Reality: If you have at least a first draft that answers those ten basic questions, you are ready to launch your business! Make your business plan a living, evolving document. In the startup stages, review and update your plan every 2-3 months. As you grow and stabilize, you can slow down the review cycle to every 6-12 months. All business plans should be reviewed and updated at least once a year.

6. Myth: I have to do everything I say I'm going to do in my business plan, or I'm a failure.

Many Solo Entrepreneurs never start because of this myth-which leaves them feeling that the success of their future business suddenly rides on each stroke of the pen or click of the keyboard!

Solo Entrepreneur Reality: Think of your business plan as a roadmap for a trip. Expect to take some detours for road construction. Be flexible enough to take some exciting, unplanned side trips. And don't be surprised if instead of visiting Mount Rushmore, you decide to go to Yellowstone, if that turns out to meet your vacation goals better!

7. Myth: A good business plan has a nice cover, is at least 40 pages long, must be typed and double-spaced...

Business plans intended for investors, such as a bank or venture capitalist, must meet certain requirements that such investors expect.

Solo Entrepreneur Reality: As a Solo Entrepreneur, your business plan need only satisfy YOU. It might be scribbled on a napkin, on stickie notes on your wall, or consist of a collage of pictures and captions. It might be all in one document or scattered among several mediums. As long as you know it in your head and heart without having to look at it, and and it is easily accessible to you when you have doubts, that's all that is necessary.

8. Myth: I don't need a loan-so I don't need a business plan.

YOU are the investor in your business-and would you invest in the stock of some company without seeing a prospectus?

Solo Entrepreneur Reality: Seeing your plan in black and white (or color, if you prefer!), can give a whole new view on the financial viability of your business. If "doing the numbers" seems overwhelming, remember you don't need fancy spreadsheets. Just lay out a budget that shows where all the money is coming from (and going), and have an accountant review it for additional perspective.

9. Myth: My business plan is in my head-that's good enough.

I don't know about you, but I sometimes can't remember what I planned yesterday to do tomorrow, if I don't write it down!

Solo Entrepreneur Reality: There is a real power in writing down your plans. Some schools of thought advocate that the act of writing a plan down triggers our subconscious to start working on how to manifest that plan. And, of course, it's a lot easier to remember when you have it in front of you. And a lot easier to share and get feedback from your non-mind reading supporters.

10. Myth: Friends and family are the best sources of feedback and advice on my business plan.

If your brother is an accountant and your best friend is a market research expert, then this might be true.

Solo Entrepreneur Reality: As well meaning as our friends and family can often be, they just aren't the best way to get honest, objective guidance. Instead, seek out folks that have specific knowledge that will help you, are willing to be candid with you, and that have a genuine interest in helping you succeed. A business coach is one resource to consider!

By Julia Tang


Starting Business Secrets will help you to start your own business successfully.

The American Dream is, and always will be, to come up with an idea, start a business and become rich from your own efforts. Based upon this motivation, thousands of businesses fail each year, due primarily to not being familiar with the basics involved in running a business.

This report will enlighten you, and give you a number of suggestions you can use to better guarantee your chances for success. This report is written with the warning that any and every business venture contains certain inherent risks, and any number of alternatives. We do not espouse that any one way is the right way or that our suggestions are the only way. On the contrary, we advise that before investing any money in a business venture, you seek counselling and help from a qualified accountant and/or attorney.

Just about the first thing you should consider before deciding to start or purchase a business is the legal form you'll be operating under. There are basically four choices: sole proprietorship, partnership, limited partnership, and/or corporation.

Each has a number of advantages and disadvantages. We'll try to enumerate some of them for you.

As much as anything else, for many people starting a business is a form of ego-gratification, and they form a corporation for some sort of prestige gain - just to say, "I own a corporation."

With just a little bit of observation, you'll find that one of the major causes of business failures is due to the founder wasting start-up capital on frills, such as an impressive store- front office, expensive furnishings, and corporate legal costs.

One of the basic traits you must develop it you're going to be successful in business, is a tight hold on your expenditures. In fact, a good rule of thumb is that anything that does not make money for yo or protect your investment, should not be purchased at this time. Very definitely, this applies to the expense of setting up your own corporation.

Unless you have a partnership and start your business as such, the only real advantage to forming a corporation would appear to be that a corporate structure will semi-protect the property you personally own.

As an example, you own a home and car. You form a corporation to protect these possessions from business losses. Yet, if you can be found guilty of misusing corporate funds, your business creditors can pierce the corporate shield and come after your possessions.

Basically, if you invest everything you have in your business, as most newcomers do, you don't usually need a corporation because you have nothing to protect. Your household possessions, personal belongings, generally your car, and even a portion of the equity in your home is protected by the homestead provision of the Federal Bankruptcy Act, and cannot be taken away from you.

As a sole proprietor or partner of a business you'll be paying taxes on your overall earnings, much the same as if you were holding down a salaried or hourly paid job. Whether you do or don't take out money as a salary will have no bearing on the earnings of your business and tax return.

The often advertised advantage of incorporating, that you can manipulate your salary in order to save on tax dollars, is real because of corporation laws. However, the IRS frowns on this practice. When your business is successful and making a lot of money, definitely check with your accountant on the advantages of incorporating.

As a corporation, you'll be subject to a number of other drawbacks as well: generally higher state taxes, stricter laws concerning the operation of your business, more elaborate accounting procedures, and legal papers that are required just about every time you make a major move or sign almost any contract. Thus, your legal and accounting fees will be much higher as a corporation than will those required for a sole proprietorship type of business.

As a sole proprietor or partnership, you'll find many areas require the registration of your business name. The cost however, is minimal, ranging from $5 to $100. About the best way to find out what laws apply in your area, is to call your bank and ask if they need a fictitious name registration card or certificate in order for you to open a business account.

Selecting a name for your business is quite important to you and particularly relative to advertising. Your business name should describe the product or services you offer. Fancy names such as, Linda's Clipping Service will lose potential "walk-in and passing" customers to the beauty shop across the street that calls itself, Patti's Beauty Salon or Jane's Hair Styling Shop.

The advantage of using your full name in the title of your business, such as Johnny Jones' Meat Lockers, has the advantage of making credit somewhat easier to come by - provided you pay your bills on time - but it also includes the disadvantage of confining your services to a local or at most, a regional area.

Should you buy, lease, or rent a space for your business? think twice before you make any decision along these lines. Most businesses tend to grow quickly or they never get off the ground.

There are a few exceptions, but only a very few, that tend to grow at a modified rate.

So, buying a piece of property and setting up your business on or within that property, obligates you to ownership regardless of what happens to your business.

Leases are almost always very strong contracts written by attorneys to the advantage of the property-owner. When you sign an agreement to pay someone for the use of their space over any length of time, you're "nailed in" to paying for that space regardless of what happens to your business.

In the beginning, it's wise to either get the shortest-term lease possible, or arrange to rent with an option to lease at a later date. This does not apply to a retail business, unless your particular business happens to be an untried one.

Definitely, you should open a business bank account. In selecting a bank for your business, scout around and look for one that can, and will help you. Determine what your banking needs will be, and then via telephone, interview the managers of the banks in your area. The important convenient bank to your business location.

A point to remember: the closer you can make the relationship between you and the bank manager, the better your chances are going to be for approval on loans and/or special favors you may need at a later date.

Try to become acquainted with as many of the bank employees as possible. The better you know them, the more courtesies they'll be extending especially to you in the course of your association.

Just as a doctor is a specialist in his field, and you go to him for medical problems, your banker is a specialist in his field and you should go to him for your money problems. In business, you'll have to learn that everyone is an expert in his own line of work, and in your associations with other business people, refrain from acting like a "sharpie" and/or pretending that you know exactly how everything works in someone else's specialty.

You'll find that very often, different banks specialize in different types of businesses. As an example, you're sure to find banks that specialize in real estate transactions, export- import businesses, and even manufacturing operations only.

What I'm saying here is that if you're planning to sella fairly expensive item, your customers will probably need and/or want financing. It will behoove you to select a bank familiar with your type of product that will afford your customers, through you, contract financing.

Some of the questions you should ask of your banker include the following:

Is it necessary to maintain a certain balance in your account before the bank will approve a loan for you? What qualifications must you have in order to obtain a line of credit with the bank?

Does the bank limit the number of loans, or types of loans it will approve for small businesses?

What is the bank's policy regarding the size of a check you might deposit that requires holding for collection?

And what about checks less than that amount - will they be immediately credited to your account?

In almost all types of businesses, it will be to your benefit to set up with your bank, a method of handling VISA, Master Charge, and regional credit cards. The important thing here is to ultimately set up your account in the bank that will service all of these credit transactions for you - one stop for all your banking needs. In most instances, you'll find that having the capability to fill orders/make sales via credit card transactions, will increase your volume of sales appreciatively.

Once you've made the decision as to which bank is going to handle your account, you'll need your Social Security Number or your Federal Employer's Identification Number, your driver's license, the fictitious name certificate, and if you're requesting a VISA or Master Charge franchise, you'll also need a financial statement.

For corporations, you'll also need a corporate resolution approving of the opening of your business account.

There are different policies exercised in just about every state regarding installation/hook-up charges by the telephone and utility companies. Some require a deposit, and some don't.

You'll find that a great number of city business license departments are there solely for the purpose of collecting another tax. Depending on the type of business you're asking a license for, the building and zoning people may inspect your premises for soundness of structure and safety. Generally, you won't encounter any difficulties - you simply pay your fee to operate your business in that city, and the clerk types your name onto a city license certificate.

Relative to sales tax permits and licenses, each state's rules and regulations very widely. The best thing to do is call your state offices and ask for information concerning registry and collection procedures. Many states require an advance deposit or bond, and you'll find that some wholesalers or manufacturers will not sell to you at wholesale prices until you can show them your sales tax permit or number.

Should your business entail selling your products or services across state lines, in another state, you're not required to collect taxes except in those where you have offices or stores.

You may find also that your particular business requires the collection of Federal Excise Taxes. For information along these lines, check in with your local office of the Internal Revenue Service.

Some states also require certain businesses to hold state licenses, such as those required in many states for TV Repairmen.

These are known as "occupational permits" and are most often required of barbers, hair stylists, real estate people and a number of other consumer oriented businesses. If you have any doubts, check with your state offices for a list of those occupations that require licensing.

Any business doing business in any type of interstate commerce is subject to federal regulations, usually through the Federal Trade Commission. This means that any business that shops, sells or advertises in more than one state is subject to such regulation, and this includes even the smallest of mail order operations.

Normally, very few business people ever have and contact with the federal regulatory agencies. The only exceptions being when there is a question of your operating your business unethically or illegally.

Any business that sells or distributes food in any manner almost always requires a county health department permit. If your business falls into this category, simply call the county health department and invite them out to your place of business for an inspection. The fees generally range from about $25, depending on the size of your business when they first inspect it for permit approval.

There are also a number of businesses that require inspection by a fire marshall, and fire department approval. Generally, these are those that handle flammable materials or attract large numbers of people, such as a theater. Overall, the local fire department has to be allowed to inspect your premises whenever they desire to do so.

You may also run into a requirement for an air and/or water pollution control permit. These specifically apply to any business that burns anything, discharges anything into the sewers or waterways, or use any gas-producing product, such as a paint sprayer.

Without a doubt, you'll need to check on local regulations relating to advertising display signs. Each city or township makes its own rules and then enforces those rules according to its own thinking -check before you contract to have a sign made for your business.

The design and placement of your sign is very important to your business - specifically to retail establishments - but let me remind you that your business sign is usually the first thing a potential customer sees and as such, it should catch his eye and leave an impression that lasts. It would be a good idea to ride around your town and take a look at the signs that catch your eye, and try to determine the impression of the business that sign leaves on you. This is a basic learning formula for determining the design, size and placement of your business sign.

Some of the other things to consider before opening for business - If you intend to employ one or more employees, you'll be required to deduct Federal Income Taxes, and Social Security payments from their checks. This will involve your filing for a Federal Tax Number and necessitates contact with your local IRS Office.

Most states have "unemployment taxes" which will have to be deducted from the paychecks of any employees you hire. And there are a number of states that have income taxes - disability insurance - and any number of other taxes. Again, the best thing to do is check with your local office of the IRS. And above all else, don't forget to ask for the rules of the minimum wage law, and comply.

When your business grows to the point of needing additional help, don't be afraid to look for and hire the help you need. when you're ready to hire someone, simply run an ad in your local paper and/or register your needs with the local office of your state's employment service. Businesses either grow or die, and those that grow eventually need more people in order to continue growing.

When that time comes, hire the additional people you need, and your business will continue growing. If you don't, for whatever reason, you'll find yourself married to your business and your business growth stymied.

Regardless of how small your business is when you begin, never walk in with the thought in mind that it's something to keep you busy. Anyone with an attitude of that kind is a fool. You begin and make a business successful in order to realize financial freedom. Establish your business. Put it on its feet, and then hire other people to do the work for you. And those businesses that require an operations manager, or someone to run a phase of the business you're too busy to handle, hire the person needed or the business will surely suffer.

To protect the investment of your business, you need business insurance. If you've never had any experience with business insurance, simply look under the heading of "business insurance" in your phone directory. Ask for bids from several different companies or agents...Primarily, you should have a policy that gives you general liability, fire, workmen's compensation, business interruption, and vehicle coverage. You amy also want coverage against possible losses related to burglary, robbery, Life & Accident, Key Man, and Fidelity Bonds.

As the sole proprietor of a business, you won't be paid as an employee, so there will be no income tax deducted from whatever you withdraw from the company's earnings. What you'll have to do is a gain check with the IRS Office for a Tax Guide For Small Businesses Handbook, and probably end up filing an estimated tax return on a quarterly basis.

The minute you open your doors for business, you'll have to spend some time engaged in the work of bookkeeping. Exactly how, and using what forms, you keep books, should be on the recommendations of a good tax counselor...The same holds true for your overall business and/or payroll accounting system. Look for an experienced CPA that knows the accounting problems to your particular kind of business, and solicit his advise/counseling.

If your business is going to involve the possible purchase or lease of operating equipment, again seek the help of your tax counselor for the most advantageous method of obtaining the needed equipment.

Basically, arranging for your suppliers to give you materials on credit will depend upon your honesty and personal financial statement. The best way is usually a personal visit to the person with the power to approve or disapprove of credit at the company where you want to set up a credit account. Show him your financial statement, and explain your prospects for success. Then assure him that you've always honored all of your obligations, and that if ever there's a question or problem, you'd like for him to call you at home. And of course, give him your home phone number.

We won't go into the exigencies of advertising your products, services or business here, but there is something along these lines you should always keep in mind. The best kind of advertising your business can receive is that you don't really pay for - publicity.

When something unusual happens to you, your business, or your employees - that's news, so be sure to tell the news media in your area about it.

The most important ingredient of your eventual success will be the soundness of the planning you did before you started your business. Any number of bad things can really throw your business into a tailspin, but it you've done your homework well - really set up a detailed business plan before starting - your losses or setbacks will be minimal. Success takes planning, and within this report, you've got a basic checklist...The rest is up to you...Good luck, and may your life overflow with success in all that you undertake from this moment forward.

If you spend any time online, surfing the Internet, or even if you spend any time reading magazines that deal with business topics, you will more than likely run across countless business opportunity offerings.

Business opportunities are in essence, "turn-key" operations, where a major company, or even a smaller company, is offering what are basically franchises or memberships in the company. Any person that joins, becomes entitled to use the company name, company marketing materials, and of course, company reputation. There are, however, as in anything, "pitfalls" and "advantages" to joining any type of business opportunity. Many times, one of the "pitfalls" is the fact that there is a membership price to pay when joining, which depending upon the business opportunity, can be quite a staggering fee. It is wise, then, before paying any fees to join a business opportunity to research and ascertain the following aspects of the opportunity:
1. How long is the business opportunity "in business"? You don't want to join a biz op that's "here today, gone tomorrow", taking your fees with it!
2. How do other members feel about the business opportunity? If you can speak with other members, this would help immensely in any decisions.
3. How much money overall can you expect to make from the business opportunity within the first month? Too much competition with other members will make it difficult to make sales, while too few members indicates that it is not a popular business opportunity, so how can it be sold?
4. How often will you be paid?
5. Are there any "undisclosed" extra fees, such as fees for checks or other payment methods? This will cut into net revenues.
6. If you don't succeed, will the business opportunity supply at least a partial refund?
7. Does the business opportunity supply mentors and marketing materials that can be used? It's easier to start and maintain a business opportunity with these components already in place.
8. How well known is the business opportunity? Whether it's online or offline, some business opportunities are "household" names and are easier to promote and sell as a result.
9. What is the turnover rate in the business opportunity? Those that have a large turnover rate among members are usually poor choices. Turnover means simply the number of members that leave the biz op within each month. You need to be able to comfortably afford the fee of the business opportunity, or you will start out "in the red" which is not a good way to start any home-based business.


If everything is controlled by the corporate entity (the "home" office of the business opportunity, so to speak), your creativity and the way you market may be hampered severely.
There are many business opportunities from which to pick. Everything from larger scale offline ventures, to smaller scale online ventures exists. Research into all the above is necessary when choosing an appropriate business opportunity. Fees are sometimes necessary to cover the costs of shipping and handling, or the costs of the marketing materials. There also exist many free opportunities that cost nothing to join and can be a good way to experiment with marketing and the world of home-based business.
If in doubt, simply research and patiently wait a while.


What to Look for in a Home Based Business Opportunity

When you were younger, did you ever dream about having your own home business?
• 40-40-40 Plan (Rut)
• 40 minutes going to and from work
• 40 hours of work per week
• 40 years of life spent working slaving away for someone else?

When things get unfairly tough at work, do you still dream about your own home business – what you would do, how you would run your own home business, how you would treat your employees, what kind of money you would make, what product you would sell? Then when you decide to make a change in your life, do you look for another 40-40-40 job, putting your dream of your own home business on the back burner again for more of the same?
• 1% are wealthy enough to retire in comfort
• 3% are barely able to survive
• 27% are dead
• 69% are dead broke

The two major focal points when looking for a home business opportunity are ones that will:
• optimize your efforts and time

• produce optimal financial rewards

Below are seven simple criteria to consider when looking for a home business opportunity:
1. Look for a business opportunity that offers a product or service that is, or will be, used daily by every household and/or business…
For example, services such as utilities, communication, appliances, etc., or products such as shoes, clothing, soap, etc.
Now think bigger – a product or service used on a daily basis AND that would represent a paradigm shift. For example, a paradigm shift was created in global communication when Alexander Graham Bell invented the telephone. Before 1885, no one had a telephone, nor had they ever heard the word “telephone”. Make yourself a list of products or services in your house that you can research to consider for a business opportunity.

2. Search for a home business opportunity that offers a product or service that has a global market…
It’s a small world. Plain old common sense would tell you that a home business opportunity with a product or service that has a global market would produce warp speed revenue when compared to one that is only within a local, regional, or national area. For example, the revenue produced from Microsoft with a global market is light years greater than that of a local shoe repair shop.
In addition, as you research this global home business opportunity, you will want to make sure that you are not required to stock products. It is time consuming to order products, receive and send out the products, manage backlogs, etc., not to mention the additional costs out of your pocket for shipping and mailing. You also encounter product changes or upgrades that makes your stock obsolete. So, avoid these types of home business opportunities like the plague.

3. Find a home business opportunity that incorporates leverage in its pay plan…
A business opportunity that incorporates leverage in its pay plan provides the best of both worlds. Leverage is a relatively simple concept. Ray Kroc set up franchises for McDonald’s that agreed to pay him 3% of their profits.
In essence, McDonald’s sits back and collects 3% of the profits resulting from others exerting their time and their efforts. Let’s say, just for discussion purposes, that Ray Kroc sold 100 franchises and each produced profits of $50,000 that year. 3% would have produced $150,000 for Ray Kroc, yet he personally exerted no effort or time himself. What he did do though was brilliant, as he applied leverage by selling franchises, and became quite a wealthy man as a result.
Leveraging your home business will minimize your time and effort while maximizing your financial rewards. In a relatively short period of time, your home business will take on a life of its own, and you will be on the fast track to healthy wealth.
To find a home business opportunity that will rocket you into financial freedom, the company should incorporate leverage, not only in their business plan, but also in their financial rewards, preferably on a weekly, monthly, and annual basis – one of which should be residual.

4. Search for a home business opportunity with a company that has live 24/7 support available…
The frustration even compounds when there is a deadline involved for a continuation of service.
Repeat customers comprise 75% of businesses, and satisfied customers will be the main reason for their repeat business with you and your product or service. Even in this automated society, the person-to-person contact is preferred, at least by the customer. Therefore, your success is dependent upon a home business opportunity with a company that has live, warm bodied live support 24/7 – whether it is support you may need, or support your customer may need.
Another important aspect of a home business opportunity with a company that offers live support 24/7, is the global perspective. To be honest, I am hard pressed to think of an international company with live personal support.

5. Seek a home business opportunity with a company that has a proven success record…
A lot of people, and a lot of companies offering their business opportunity, will tell you anything they think YOU want to hear in order to separate you from your money. When you talk to someone about a home business opportunity – turn the tables. Don’t be afraid to ask the hard questions like what they are making on a weekly, monthly, or annual basis with their home business. Ask them how long they have been running their own home business. Find out how many hours a day, week, or month they spend working their business. Ask them to give you examples of how they market their home business. Especially important is to ask if they have to spend additional money for items such as business cards, advertising tools, etc.
An example of a company with a proven success record is Xerox. Although Xerox is not a home business, it has a proven success record. In fact, they were so successful that their name is not only an icon, but the name “Xerox” is synonymous with the word “copy”.

6. Look for a home business opportunity with a company that incorporates training from experts and other professionals…
The majority of people on the Internet do not know how to harness the power of the Internet and turn it into wealth machine for themselves. Most people do not know how to market a home business. Therefore, a home business opportunity with a company that incorporates professional, expert training, taking you from the basics thru the advanced stages of a marketing system, including how to use software programs, marketing tools, etc., is a virtual gold mine.
Since the majority of people on the Internet are not savvy with how to harness its power, a home business opportunity with a company that incorporates professional expert training is a definite requisite for success.

7. Look for a home business opportunity where the company works as a Team.
When you have a business opportunity where the company works as a team, then your weakness may be a team member’s strength. For example, you may be detail oriented and have a harder time conceptualizing or seeing the whole picture. Combining your strengths will optimize your productivity.
If you have your own home business, you need to be upbeat and project a positive outlook at all times.

When business grows crossing the boundaries defined by limited internal resources, including your own and your executives’, it pays to engage the services of external business management consultants. Large business management consulting houses such as McKinsey and Company or PricewaterhouseCoopers, pride in their vast exposures to handling wide ranging business complexities under differing international conditions.

Businesses become complex as time passes by and handling them is a new challenge. Business houses of all types and sizes depend on external experts, management consultants, who analyze the situation on hand and optimize the possible, profitable way ahead. This may include ways to improve the firm’s structure, efficiency and returns.

The latter option always gives the firms the cost benefit over recruiting managers, without the long term commitment. Normally, small businesses are served by small consulting firms which range in size from a single practitioner firm to a team of professionals.

Why Large Corporations Hire Business Consultants?
The spread and expanse of large, multi billion dollar corporations involves operations in complex situations besides being engaged in a variety of transactions. Here is a snapshot of other circumstances when large corporations engage management consulting firms.

1. Market researching and site selection for their offshore expansion plans to help make decision on a new venture

2. Fund raising through either of the IPO, private placement of instruments of investment or loans and venture capitals including fulfilling statutory requirements
Vertical and Horizontal Expertise of Business Management Consulting Firms

Barring a few large consulting firms, most of them specialize in particular lines of businesses. You might have heard of Public Issue Management firms or firms specializing in Market Research and Finance Management and so on. Such consulting firms can be termed as vertically specialized in their fields. Where as companies like the ones mentioned above, McKinsey & Company are experts in multiple areas of business conducting right from financial auditing to offshore acquisitions and can be termed as firms with horizontal specialization.
Business Management Consulting Firms, by their virtue of experience of having handled various situations will have a practical approach to problem solving.

Business Management - What Are The Good Traits
To start a business and have it up and running successfully, you will need to think of some realistic business management plans. With these plans and your dream in mind, you will have to work through the initial difficult stages to build up good business management strategies and the ways to achieve them. Your business-management skills may be the crux between mediocrity and success.

The first and most important step in a good business management plan is to set clear specific goals and objectives. It is easier to achieve goals or objectives that are distinctive and focused. It makes good business sense to organize the "to-dos" for each day so that there is better focus on every task.
The more time you spent on perfecting a skill, the lesser will be the time taken to complete the task.

Another purpose of setting goals and objectives is to create a way to measure performance and track accomplishments. Such goals and objectives have to be challenging but achievable. You need to be creative and innovative in order to achieve the specific goals and strategic objectives set up in the business management plans.

At the same time, create your company's mission and vision statements and find solutions on how to implement or accomplish them. Define the company's passion and the methods to excel in it. Such business management strategies will strengthen the company's competitiveness in the industry. In addition, setting up long-term goals will determine the company's position in ten years' time and mark out the path to achieve them.

Some entrepreneurs may confuse activity with productivity. Most of the entrepreneurs who succeeded have the ability to identify and categorize specific activities that are extremely crucial or create an extraordinary significance that will contribute towards the overall success of the business. A successful entrepreneur will learn through other people's knowledge and efforts especially those of their clients or competitors. Capitalize on these new ideas or concepts and your business may expand with lesser efforts contributed and within a shorter period of time.

Due to continuous changes, good business management is an ongoing process to constantly evaluate strategies and monitor performance to see if there are better ways to accomplish the goals and objectives or whether improvements and adjustments need to be made. This may even lead to changing the company's mission or vision statements.

Do you dream of establishing your own online business someday? How would you like to transform that online business into a money-making machine?
Do you think it's impossible to do so because you're establishing or maintaining only a small business? Would you believe that Jeff Bezos, the founder and CEO of Amazon.com, laid the foundation of his now multibillion dollar business in his very own garage? Starting out with improvised gadgets and furniture and with just himself and his wife as the first employees of his company, Amazon.com is now one of the leading companies in the industry of online retailing. Bezos was even recognized as the "cybercommerce king."
Your online business can follow the footsteps of Amazon.com and you can be like another Bezos. Whatever field you wish to venture into, you can always turn it into a money-spinner. You just need to be familiar with and follow certain steps and then you will learn how to parlay any online business into a million dollars --- even more!
Would you also dare to achieve success in your online business? Don't be afraid and just follow these steps!

*Don't be afraid to start small.
As mentioned earlier, a modest investment will not necessarily yield modest earnings. In fact, you should learn to spend your monetary capital wisely and maximize other resources as you start up your online business.

*Don't be afraid of rough times.
In any business, you will surely face various obstacles and problems that will certainly test your perseverance. Don't let these hardships dampen your spirit. Also, don't be afraid of criticisms.

*Don't be afraid of changes.
As change is the only constant thing in this world, you will definitely face changes in the course of maintaining your business. Keep up with the changing times and adjust the way you do business according to society's trends.
Furthermore, don't be afraid to widen your horizons and expand your business. Always look for more innovative techniques to make your business prosper even more.

*Don't be afraid of consistency.
Welcome helpful changes but be consistent with certain things. For instance, if you started with an every-other-day updating of your web content, make sure you do follow your updating schedule religiously.

*Don't be afraid of technology.
As your business is an online venture, you should be the very first one to welcome technology. Be updated with the latest technologies. Then evaluate them and decide which ones will help you make your business grow faster and easier.

*Don't be afraid of multi-tasking.
Since you are your own boss and you call the shots in your online business, you should be ready to handle several responsibilities at the same time. Remember that the success or failure of your business is practically in your own hands.

Now, here are some of the things that any online business should have for it to succeed and rake in more earnings:
*Products and Services
Obviously, your business will not have any purpose if it does not have any product to sell or any service to offer. Make sure you choose products/services that are of the highest quality and are easy to promote.

*Website
Since yours is an online business, your website --- next to your products/services --- will be the most crucial aspect of your venture. Your website is also the most evident representative of your business. Thus, make sure that you develop and maintain a professional-looking, user-friendly, engaging website.
>A statement clearly indicating the purpose of the website
>Interesting web content and other articles (in the form of newsletter, e-zine, etc.)
>Easy to use, prominent features for searching and purchasing items
>Attractive but relevant photos and graphics
>Entertaining features such as audio clips and video clips
>Interactive elements such as feedback forms, surveys, quizzes

*Affiliate Program
The very system that made Amazon.com the giant that it is today, an affiliate program enables you to have innumerable marketing arms and promote your online business easier, faster, more extensively, and more effectively.

*Offline Marketing
Having an online business does not necessarily mean that you are limited to online marketing strategies. Effective offline marketing techniques for an online business may include displaying your website's address (url) on flyers, posting your url on vehicles, and advertising your business on newspapers and magazines.

*Special Offers
Everyone wants freebies and special offers, right? Remember: Success is right in your hands!

Online Business Broker: Stress Free Help Selling Your Business
You've spent several months, perhaps years, putting everything you have into building a thriving, high-demand online business and now you have decided to sell your baby.
Thousands of businesses change hands everyday, oddly enough the channels you can use to get maximum price and exposure for your online business are extremely limited.
Ebay. It's perhaps the biggest venue for listing and finding new businesses forsale, but you have to be concerned over the quality of sites listed on eBay. Classified pay-per-listing sites. The leading online business listing site is http://www.buysellwebsites.com run by experienced professional Nelson Bates. This is a super service for sites under $50,000 with proven results and proven demand. A great technique for lower-priced sites, but perhaps not the right option for the site you want to get maximum exposure and price for.

Experienced and Focused Business Broker. You've invested heavily in your online business. A professional can help you through the sometimes complex tasks of placing a price on your business, getting it in front of the "right" buyers, helping to separate the tire kickers from serious buyers and take your deal to an optimal close.
Online business brokers can...

1. Get more money for your site
2. Get your site exposed to buyers with money
3. Handling the paperwork and forms associated with securely selling your high-value online business
4. Handling the uncomfortable "selling" role for you - you just decide which deal to accept

Help you wade through legal, tax and regulatory issues that can be quite intimidating.

What To Look For In An Online Business Broker
Finding a great business broker can make a massive difference to the success of selling your online business, getting the value you deserve.
Experience with selling businesses. This one tops the list. Skillful business brokers have spent years mastering the art of negotiation and undersatnding the market. If you are selling an online business, then it is even more important that you find a specialized online business broker, someone who understands getting maximum price for internet-based businesses.
Proven Reputation. You want someone who has a rock-solid reputation with years of experience helping sell businesses. The ideal online business broker will have sold hundreds of online businesses already and can point out some specific examples.

Great Communicator. Selling your business can be a lengthy and detailed process, in order to get the most out of your online business broker, they need to be a great communicator - it's absolutely necessary.

Must Ensure Your Confidentiality. Specialize. Focus on a business broker that understands your type of business. Finally, you can take the stress out of selling your online business by using an experienced, professional online business broker. Don't leave the sale of your business to chance, consider consulting your very own online business broker today.