10 Step-by-step Business Startup Guide: Step 6

October 2nd, 2009
Dave J asked:


STEP 6: Funding

This could be a very important step for businesses that require capital to startup and funding to keep overheads and inventories on track. Finding funding is not difficult. But getting the right funding is crucial. Of course there is a saying that goes, “beggars can’t be choosers”! Nonetheless, startup owners must be smart when seeking funding or it could turn their dream business into a nightmare.

I would normally identify my short term and long term business goals and the kind of business I am planning to launch. Once I finalize my directions, I would then identify which form of financing is right for me.

As money comes in many forms, let me tackle the available options to fund any kind of business:

* Oneself

* Debt Financing

* Grants

* Friends and Family

* Venture Capitalists

Oneself

First of all, I believe startup owners should look no further to find the funding they need i.e. savings, emergency accounts, credit cards, equity pulled from their home, extra cash from downgrading their car, etc. The upsides are owners get to maintain full control over their businesses, no equity holders to pay off if they made it big and there is no responsibility to report to anyone.

Nonetheless, if the business fails, they will face a lot of personal debts, high interest to pay off that could burden their monthly expenses and it limits the growth of their business (especially when they need more outlets or inventories for strategic growth).

Debt Financing

It refers to traditional bank loans. The lending process is inherently a tough one, but it’s also a system that has been the catalyst of success for many small-and-medium-scale business startups. The advantage of debt financing is owners don’t have to give up part of their business equity or control. Besides, they have instant access of capital when they need most throughout their business operation.

The core disadvantage - not many “new kids on the block” will qualify for bank loans because it typically goes for business with 2-5 years of history. Moreover, personal collateral is usually required to obtain any bank loan and if they failed to pay the loan they may end up filing for bankruptcy.

Government Grants

Grant is a very subjective form of funding because its source usually comes from government. Different governments at different times would launch different funding programs, but they all share one commonality; it is free money program designed to fuel the innovative fires of small businesses, and typically target specific groups or types of businesses. Of course the greatest advantage of getting a grant is owners need not payback even if the business failed.

Then again, the competition is stiff for grants as there is a high level of rigid red tape to be complied with and the usage of the grant (after being approved) are usually well defined.

Friends and Family

Just like it describes, a simple and direct way to raise capital in exchange for equity or as a loan to be repaid. The good side of borrowing from friends and family is, it’s less hassle, quicker and has less contractual obligations. The bad sides are the fund size is limited and the consequence of losing their money could lead to a sour relationship.

Venture Capitalists

They are made of individuals or organizations with large amounts of capital to invest in your business in expectation for higher returns. Getting investment from venture capitalists is equally as demanding as borrowing from the bank. They are demanding because they only invest in established companies. They usually get involved in the company’s decision making, and they must have an aggressive exit strategy to sell the business. Usually, they prefer a fast growing company i.e. Internet-based company.

Nevertheless, the upsides of venture capitalists’ funding are they can provide owners with powerful networks or contacts and owners need not payback if the business failed because they have big reservoir of money for owners to tap into.

*Note: Unproven teories to not be shown to my readers! If you need any small business startup help, feel free to visit my Website :)

=> To get the complete online business course on

small business startup guide, log on to

http://www.12daysonly.com , and redeem your

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Hildegaard

10 Step-by-step Business Startup Guide: Step 4

September 26th, 2009
Dave J asked:


STEP 4: Organizational Structure

This is the step where I need to select an organization structure that best fits my business model. I personally find there is no “best” structure for all businesses. However, I normally prefer to select one that provides me with high autonomy and low tax liability. Again, this will also depend on the national, federal or local tax structure for each business entity in the country or state I conduct my business.

Before setting up my company, I would do insight research on all the options available for my particular business model, particularly the advantages and disadvantages of each formation, paying special attention to the tax implication and government formalities as well as red tape in the location or country where I operate. I never assume all countries are similar.

Let’s take a look at four common forms of business ownership:

1. Sole proprietor

2. Partnership

3. Corporation

4. Limited Liability Company

Before selecting the form of business, I always find it best to work closely with a lawyer or a financial planner to ensure I have the right information, compliance and resources that allow me to make the right choice.

Sole Proprietor

This is a very popular form of business in many countries (i.e. America, Canada, UK, India, Australia, Hong Kong, Malaysia, etc.) because so little is needed to set up a sole proprietorship. Apart from local business licenses, there are minimal government fees and paperwork. It is instant, cost effective and minimal (or even zero) compliant requirements by local authorities.

On the other hand, there is also considerable risk to consider. The owner’s personal assets are vulnerable to creditors and other liabilities. Sole proprietorship doesn’t get the advantage of certain tax breaks that are reserved for Corporation or Limited Liability Company.

In short, this form of business is very ideal for home based business that has no massive inventory or a high number of staffs.

Partnership

Similar to sole proprietorship, this form is very easy to set up and maintain, requiring minimal government fee and paperwork. The initial setup cost and maintenance fees to run a partnership are very low. Moreover, no capital is required to form a partnership. Each partner is not required to raise any capital to start this form of business.

On the downside, each partner is required to account full responsibility for all the company’s debts. If one of the partners defaults on a company loan, creditors can actually go after your personal assets and belongings. Besides that, capital raising is also very limited in a partnership. Just like sole proprietorship, partnership doesn’t get much tax incentives.

Corporation

There are a few types of corporations available depending on the location or country the owners conduct business. However, most corporations (in many countries) share similar characteristics.

The key advantage of incorporating a business is that it shields equity holders (owners) of the company from personal liability. In other words, if business hits hard times, creditors cannot go after the owners’ personal assets to make up for any company debts. Yet, most creditors nowadays would require the owners of the corporation to guarantee the shortfalls if the company goes under. Besides that, a corporation offers significant tax savings (usually not extended to sole proprietorship or partnership), greater business flexibility, company name protection and better opportunity to raise capital via venture capitalist or financial institution.

Bear in mind that corporations are not cheap to set up. It requires some initial set up fees and certain amount of regular maintenance. With a corporation, you have to keep a proper set of financial records, audited by a certified accountant. Depending on where the business is conducted, some government or local authority would require a minimum set of compliance and would also require regular fees to be paid.

There is one option that a corporation possesses - that allow owners to sell their shares of stock to the public (known as public listed corporation). Then this will involve higher startup capital (usually runs into the millions), more legal and meticulous accounting compliances to adhere to.

Limited Liability Company

As for many new entrepreneurs, choosing a business structure comes down to liability protection, low startup costing, tax savings and convenience. This form of business requires fewer formalities and less on-going paperwork than corporations while offering the same personal liability protection and tax flexibility. Just as with a corporation, the company name is protected, and the other members of the company are shielded from creditors and other company liabilities such as lawsuits. A limited liability company only requires the owners to keep minimal company records, and there is no limit to the number of equity owners.

Nonetheless, this form of business is dissolved when a member dies or undergoes bankruptcy. In comparison to sole proprietorship or partnership, it has more paperwork and complexity to set up and to be maintained.

*Note: Unproven teories to not be shown to my readers! If you need any small business startup help, feel free to visit my Website :)

=> To get the complete online business course on

small business startup guide, log on to

http://www.12daysonly.com , and redeem your

BONUS PACKAGE worth US$1,396.00



Disclaimer - This article may be freely reprinted in its entirety in any e-zine, newsletter, blog or website. The author’s name, bio and website links must remain intact and be included with every reproduction.



Benedicto

How To Use Startup Manager?

September 15th, 2009
Teresa asked:


Do you want to prevent some programs starting up with Windows? Do you have the problem of Windows slowly starting? And do you want to accelerate the start speed of system?

When you turn on or log on to your computer and when Windows starts up, it automatically launches a number of programs for you without asking for your permission. This can easily cause Windows slowly to start. The more programs are started automatically, the slower your system will be. 

Actually, these programs are general stored in the windows registry, and are difficult to edit. Furthermore, there may have some useless or even dangerous programs which secretly start with your system. If you are not familiar with how the windows registry works, it is really difficult for you to solve such problems.

One of the best ways to start your computer faster and make the computer work for a peak performance is to reduce the number of useless programs that startup when windows start. Registry Winner (RegistryWinner.com) is a kind of software which can help you to manage the Windows startup procedure. From the Startup Manager List you can control what programs that are automatically launched when Windows starts.

The startup program manager provided by Registry winner (RegistryWinner.com) can help you control what programs run when system startup. You can choose one or several ones from the list of programs to get them removed by clicking “Remove”. That is to say, these items you selected and removed will no longer run when your system startup. You can also select items to let them run right now by choosing them and clicking “Run”. Meanwhile, you can restore the program items which have already been deleted by clicking “Restore”.

After you choose one of the items, you can also see the detailed information of this item such as file name, product name, description and company. In this way, you can easily decide whether you should remove the item from startup system or not.

The startup program manager provided by Registry Winner (RegistryWinner.com) is really convenient and easy to use, isn’t it?



Jarred

The Business Planning Process: Launch your Small Business Startup With Success

September 7th, 2009
Clinton Douglas IV asked:


Business planning is one of the most important steps towards building a successful startup business, and you can use some specific strategies to create a comprehensive outline. An effective business plan will help you determine your goals and help you organize all of your small business ideas with ease. If you’ve ever been stuck with too many ideas and not knowing where to start, business planning will help take the pressure off. Understanding the business planning process is important for creating something that works, and something that will help you reach your goals. Launching your small business startup is much easier with a clear, step-by-step outline; here’s what you need to know:

Step 1: Organize your table of contents. This will help you outline each area of your business to include your mission statement, products and services, number of employees, and any basic market research information.

Step 2: Collect attachments and appendix materials. These are especially important if your business plan will be reviewed by potential investors or business partners, and can also help with your online business planning strategy.

Step 3: Create a list of key topics and sections. Not only will this create a cohesive document, but you’ll also be able to jumpstart your business planning process with a clear ‘map’ or guide of all your strategies. This list is especially helpful if you’re not sure where to begin, since you can just put each item down on paper and organize it accordingly.

Step 4: Assign projects and tasks for each area. This is an effective business planning strategy as it helps you break down each goal into actions steps. Assigning tasks and objectives in this way makes it much easier to stay on track during each step.

Step 5: Check for grammar, spelling, and even factual errors. Making sure your plan and notes are clear of mistakes is especially important if you’ll be presenting it to others. Doing a quick check will also help you determine if you missed any pieces of critical information and help you fine tune the final draft.

Step 6: Write up an executive summary for your small business startup. This is an important step for all business owners, and can help you pull together the entire plan in a few short pages. Many business owners turn to this summary when they need a briefing on objectives during the course of business, and you can include basic points and topics as if you were presenting it to a board or audience.

Step 7: Get an outsider’s perspective. While you need to keep your business planning strategy and ideas as confidential as possible, sharing your plan with a trustworthy person can help you catch a few key elements of your project. Get an objective view of your plan and notes so you have everything in well-organized and presented in a logical way.

Business planning doesn’t have to be difficult, but many startup business owners are intimidated by the process. Take the time to organize the critical areas of your business and put them in a logical order. Then, break them down into specific objectives and tasks so you have a strong idea of how you can be successful in each area. The time and effort you put into business planning will pay off for the long run, and help you launch your small business startup with success.



Rooney

10 Step-by-step Business Startup Guide: Step 3

September 6th, 2009
Dave J asked:


STEP 3: Prepare a Business Plan

Once I have done all the preparations, I would start creating a detailed business plan - a document that will provide the priorities, strategies, agenda and sanity I’ll need to startup my business.

In my experience and observation of the business world, the “activity” of creating a business plan is as valuable as the end product itself. Just remember that the most important audience for a business plan is ME. I am accountable for all the statements, claims, statistics and facts. So if I try to “twist” the figure, I am actually lying to myself!

The business plan can also aid me as a tool to generate interest from financiers, venture capitalists, staffs, suppliers and strategic associates.

Regardless of the structure or format of my business plan, I will ensure that my business planning must contain answers for the following twelve questions:

1. What’s my business idea?

2. How does my idea address consumers’ needs/wants?

3. What business model suits me best?

4. What’s unique about my business idea over the rivals?

5. What is the market opportunity and potential?

6. What is my role and responsibility?

7. Who are the key staffs or workers (skip if I do not have any)?

8. What price will the customer pay and how will they buy?

9. How much money do I need to start and run the business?

10. What’s the source of my capital?

11. How will I measure the success of my business?

12. What are my key milestones?

While preparing my business plan, I would cover all the elements of a business plan shown in DAY 3. Just for your study aims, I have attached a sample business plan at the end of this section.

I must ensure that my business plan is concise and neatly formatted (i.e. Microsoft Word document for the bulk of the plan, with any financial documents as attached spreadsheets in Microsoft Excel), and need not include fancy graphics, flowery language or photos. The easier I make it to read, the better.

Alternatively, there are occasions I work better with business plan templates and wizards. Hence, I would search online as there are many business planning software packages available that only cost in the neighborhood of $100, as well as a few free online business plan templates. I would normally spend some time searching for the right software or templates to aid me in constructing my business plan.

*Note: Unproven teories to not be shown to my readers! If you need any small business startup help, feel free to visit my Website :)

=> To get the complete online business course on

small business startup guide, log on to

http://www.12daysonly.com , and redeem your

BONUS PACKAGE worth US$1,396.00



Disclaimer - This article may be freely reprinted in its entirety in any e-zine, newsletter, blog or website. The author’s name, bio and website links must remain intact and be included with every reproduction.



Caye

Best Home Business Startup Opportunity Idea

September 2nd, 2009
David Ogden asked:


There are people making money all over the world today using the Internet. The key is to start things correctly from the beginning. In this article let’s take a look at the best home business startup opportunity idea that you should keep in mind when starting your own business.

A couple things to think about include are you going to be working full-time or part-time. The more hours you put into your home business the better off you going to be in terms of creating income quicker.

However, if you have a good full time job you may want to start your home business on a part time basis. This way you can continue to have the benefits that come from a full time job while you get your part-time home business off the ground.

When you’re looking at what business to get started with you always want to look at the market first and the products segment. What you are doing is searching for a market that people are currently spending money in and have a need for products within that market.

Another side benefit is finding something that interests you, or that you have some expertise in. This will make it more enjoyable as you build your business because you will be more likely to stick with it when you’re not making any money.

It is critical to find a market where people are currently spending money as opposed to trying to create a market yourself. There are literally billions of websites and blogs that you will be competing with for attention online.

One simple strategy is to find a product that solves a person’s problem. Information products work great as a startup business because people will pay for information if it lessens their pain.

Again, if you have an area of expertise you be more likely to be able to set down and write about that. This way you can create your own information products, or even start a blog and monetize it with affiliate programs relating to the theme of your home business.

Even if you don’t like to write you can always outsource that and hire someone to write it for you. This is an easy way to get your business off the ground and began providing content that person would want to read.

In summary the best home business start up opportunity idea is to choose a business that you have an interest in and people are currently spending money.



Maudie

Internet Business Startup Steps

September 2nd, 2009
Daniel Cassidy asked:


Everyone seems to be getting into online business these days, and the advantages of an internet business versus a more traditional setting are clear. An internet business startup is easy. You need a desk and chair, and a computer with internet access. That’s it. You earn money working at home in your pajamas at any hour of the day you choose. You can even work as much or as little as you please, and you have the option of controlling which radio station is playing while you work. An internet business has very low overhead costs and tends to earn money faster than a traditional business. Sounds great, doesn’t it? Sure it does, but there is more to an internet business start up than that.

First of all, you’ll need some sort of internet presence and that’s usually in the form of a website, though blogs are becoming increasingly popular for web presences. Some internet businesses only involve a profile page on an auction site for products or services. Whether you choose website, profile page, or blog, you’re establishing your web presence. Having all three is a great internet business solution and tends to increase your exposure.

If you have a website or blog, you’ll need a domain name. Choosing a domain name that is catchy, easy to remember, or relevant to your business is important. It’s also important to register the different versions people might use when searching for your name, as well as the possible spelling mistakes. The more domain names you have that will direct people to your online business, the better.

You’re going to have to work on marketing. There is more to setting up an online business than a flashy website and having a great product or service. Those who are successful in online businesses work hard at learning internet business solutions such as increasing their ranks with search engines. This is called search engine optimization, and without a web presence that is optimized for search engines, you aren’t going to be successful.

An online business also involves promotion and marketing that a traditional business requires as well. You won’t be able to assume that people will find your business or chose your website over the millions of others in the virtual world. The effort and time to promote your online business is like any other, so be prepared to have a good marketing plan as part of your internet business solution.

Develop your sales strategies and customer service skills. One difference with a traditional business and an online venture is that you’re now going to be the jack of all trades in your enterprise and master of none, unless of course you hire professionals to handle areas of your business that you don’t want to or can’t. That isn’t cost effective though, so learn how to be a salesman, as well as updating your communication skills to improve customer service and maintain client loyalty. A good internet business startup plan covers all aspects of your business that you’re going to have to handle.

Lastly, be sure to have a plan for accounting and taxation. A legal business is far better than one that isn’t, as there are plenty of things you’ll be able to deduct at income tax time. Also, make sure that your internet business startup includes research into legal matters, copyright, and anything that might land you in hot water. For great online success, cover all the bases that a traditional business would and include internet business solutions as well.



Donia

Dave J - Instant Business Startup Guide & Help

September 1st, 2009
Dave J asked:


10 Step-Business Startup Guide: How I Actually Get Started From Scratch!

Hello…

Welcome to my story, my sharing and my blog.

I am Dave J, an author, keynote speaker, E-preneur and a NLP-certified coach.

Before we begin, I would like to answer the question that pops into the mind of readers each time they open my blog:

“What motivated me to share my experience and expertise?”

When I planned to start my own business many years back, I talked to dozens of successful entrepreneurs, I attended seminars, I purchased training materials, signed up for courses and participated in countless business events. But I still do not get satisfactory answers for a systematic approach to starting up and running a profitable business. One thing for sure, it has cost me a lot of money and time in the process. The saddest part is most of the materials, seminars and courses are expensive and too theoretical in nature. Most of them are not practical, not easily applicable and not cost effective for a fresh entrepreneur like me.

Secondly, as I have mentioned earlier I did manage to seek guidance from successful entrepreneurs on the nuts and bolts of starting up and running a profitable business. However, many of them are too busy to share with me their expertise. Furthermore, even if they do, they are not so keen to part with their “secrets” to me. Some are willing to do so, but the advice does come with a high price tag!

I always believe in the law of giving, in which the more I give the more I shall be blessed in many other ways. Hence, I have decided to share with you (anyone out there) a one-stop guide for everyone who is planning or decided to startup a business of their own choice (even if they do not have any capital) before they get disappointed or frustrated in the search for the right kind of guidance to starting up their own business profitably. I hope they will not walk the “costly” and “bumpy” path that I’ve taken many years back without any such help whatsoever.

In the next few days, I be posting my business startup journal - a 10 step-by-step guide to starting your own business (regardless whether it’s online or offline, small or medium, physical product or no-product at all). The journal is updated constantly whenever I found a new way to get thing done better, cost-effective or faster in result. Whatever I idea, formula or tip I shared with you, I assure you I have personally utilized it somehow directly or indirectly.

*Note: Unproven teories to not be shown to my readers! If you need any small business startup help, feel free to visit my Website :)

=> To get the complete online business course on

small business startup guide, log on to

http://www.12daysonly.com , and redeem your

BONUS PACKAGE worth US$1,396.00



Disclaimer - This article may be freely reprinted in its entirety in any e-zine, newsletter, blog or website. The author’s name, bio and website links must remain intact and be included with every reproduction.



Yasmeen

Are You Looking for the Best Online Business Startup

August 24th, 2009
Akhil Shahani asked:


A person going to start an online business is often confronted with the question – which best online business startup would be appropriate for me? And before starting out, this is the most difficult question to answer. And you can very well understand that your success in this new career depends more on this decision than any other thing. You have to choose your business very carefully; otherwise you will soon find yourself trapped in some ‘best online business startup’ trick or the other.

One main benefit of starting an online business is the low startup investment and the flexible working time is there as well. You need an adequate amount of investment for initiating the best online business startup. There is also a great risk factor in this business. Among the most popular best online business startup ventures are the ones that deal with air tickets booking, hotels reservation, music CDs, software and books. In every online business you cannot depend on AdSense, which will do everything for you. You should come to the point that in comparison to pure-play dotcoms, traditional retail business online is a much greater hit with clients.

Given below are some tips which you can follow when starting your online business:

1. Where does your interest lie - This is the first question which you should ask yourself. You online business should be one which you are interested in and not something which you want to undertake simply to earn money. If you are not interested in the business then there is no way in which the business would be able to survive.

2. Make a business plan - Like any offline business; you need a good plan so that you can carry forward with it smoothly and effectively.

3. Determine the amount of money required - Now you need to determine how much money would be required for your business. List down all the possible expenditure and reserves for the business and come out with an approximate amount.

4. Funding - How would you fund your online business? Did you plan where the money would come from? Are you going for a loan? Or do you have the required amount of money with you?

5. Get help from people - Now you should get the help from a few people to help you with your online business. They may be your family members or you can also employ one or more people for your online business.

6. Name of the website - You should think of a name with which you would carry out your online business. The name of website is usually the name with which you want to carry out your business.

7. Build a website - Now you need to build a website where you can conduct your online business. If you have the necessary knowledge then you can build it yourself otherwise you can hand over the work to a web design firm or agency. Make sure that you place your contact information on your website where your clients can contact you.

8. User experience - User experience is very important if you want your website to be flooded with visitors. You can add a forum, company logo, or introduce flash to your website.

9. Competitive prices - The price you charge for your goods or services should be competitive so that the clients will return to you.

10. Hard work and dedication - Without dedication and hard work, no business can strive. Thus, you would have to work hard and dedicate your time and energy to your online business.



Koral

Business Startups

August 18th, 2009
Adrian Lawrence asked:


Starting a new business can be a very exciting time, you are going to be your own boss, decide what and when you do things, manage the purse strings, and in fact you are in control of everything. Are you really in control of the situation though, you have to deal with everything yourself so you have to stay focused on what you want to do and why. All business startups need advice; sometimes they need advice on where to get advice, so the budding entrepreneur has to be able to listen as there is more to running a business than understanding, or loving, the subject.

Like a chess game, success in small business starts with decisive and correct opening moves. And, although initial mistakes are not fatal, it takes skill, discipline and hard work to regain the advantage.

When you plan to start a business you do not plan to fail but statistics show that 70% of business startups fail within the first 3 years of trading. This is for a variety of reasons but they mainly hinge around business and financial planning. Basic mistakes like starting the business with insufficient financial backing or working capital to taking too much of the profits to remunerate the owners are often the downfall of the business.

A way to increase your chances of success, take the time up front to explore and evaluate your business and personal goals. This information will be useful to help you build a comprehensive and well ¬thought¬ out business plan, the blueprint for you business.

Every business needs a business plan, for business startups the first part of the business plan might be where to find out how to write a business plan and what it should include. The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business, no investor will even look at you if you have not got a business plan. It should also provide milestones to gauge your success.

There are a lot of agencies who can advise you on some, or all, aspects of starting a business. Some of these will charge you for their advice whilst others offer them free of charge.

Business link is one of the agencies and advice is free and assistance with funding might be available in the right circumstances. They have a large database that will help you find a grant or subsidy that suits your business and let you know what makes a business eligible to receive one. Interactive tools help you identify the capital and incentive allowances that your business can claim and identifies online transactions available to your business and explains how to register and enrol.

They can even help with introductions to reputable suppliers. A bad supplier speeds the downfall of a lot of business startups who really need to rely on good stock and reliable delivery dates.

There are a lot of schemes that are interested in funding business startups, for example Option 2 funding offers 50% matched funding for projects to expand business. Other funding schemes are often available based on regional location and industry type. These include grants to help with business development, and they are available from a variety of sources, such as the government, the European Union, Regional Development Agencies, Business Links and some charitable organisations.

So if you do not want to be a an addition to the failure statistic investigate all the funding opportunities available to you, whether you go to a commercial organisation or go for free advice from an agency such as Business Link. Be sure to listen to their advice, they have been dealing with business startups for years; this is your first time.

Adrian Lawrence is the webmaster of Article Alley a popular

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Hunter