First Step Marketing

Business Background research

You will be amazed how much information is available on your chosen trade, if you only look for it. There is a mass of statistics, surveys, forecasts and so on to be found in trade journals and the like. The latter can be very useful; for instance, they report the opening of new shop premises. Visits to new businesses which are accessible to you would teach you much about the latest ideas in layout, presentation etc. Read the rest of this entry »

Warning! A business, which might seem an easy way to earn a living, is unlikely to turn out that way. It only looks easy because you do not know enough about it. Read the rest of this entry »

You may also need to have licences. For instance, bottles of milk cannot be sold by just anyone. Most of this sort of thing is straightforward enough but you do need to know the rules.

Will you be giving credit to your customers or selling on hire purchase? Anyone who lends money to the public needs a licence under the Consumer Credit Act. (This does not apply to ordinary trade credit of, say, a month or two where you allow your customer to pay in up to four instalments.) Read the rest of this entry »

A surprisingly large number of entrepreneurs raise at least part of the capital for start-up and operating expenses by asking friends and family and previous business colleagues to lend a monetary hand. Though some may ask for partial ownership in your fledgling firm, most will be satisfied by your personal guarantee of a payback date— usually with interest. Though you may be the most enthusiastic person in the world when it comes to your business, many people will want to know about your own financial commitment before they invest anything. To some it may not matter; but most people will want to know that you’re willing to risk some of your own assets before they will provide your business with the capital you desperately need. Read the rest of this entry »

Money is the oil that greases the often squeaky wheel of American businesses, large and small. While the primary ingredient of small-business success is hard work and lots of it, money is still essential to launch and then maintain the often-spotty first year of a small-business’s existence.

Now that you have a good idea of how much money you need to start your business, and how much you’ll need to generate to pay the bills every month, where are you going to find it? It’s a sign of a true entrepreneur to believe that your talents and energy levels are so wide-reaching that the cash will start pouring in—and never let up—from the first week your business is open. Read the rest of this entry »

Cash Flow Statement

Cash flow is the lifeblood of a business, since it symbolizes the steady movement of cash in and out of a company. With a cash flow statement, you’ll be able to keep tabs on when you expect to receive revenue, or money owed you by customers, and then manage this money so it is available when you need it to pay your bills. Getting the numbers down in writing will help you to figure which months you should stockpile extra cash, perhaps by postponing that renovation project you had planned, and which months you’ll have enough revenue flowing into your checking account to reschedule it. Or you can plan to hold a special sale for the months when you believe you’ll have more money going out than coming in; the discount you provide to your customers is worth it if your cash flow is positive instead of negative. Read the rest of this entry »

Even if you hated math in high school, keeping a good financial record of every one of your business transactions—whether it’s checks received or cash receipts for highway tolls paid while traveling on business—is a basic necessity. After all, every entrepreneur wants to know how much money her business is generating both before and after expenses, to see what all of her hard work is worth. Read the rest of this entry »

Every business needs a business plan. As a matter of fact, even companies that have been around for a while and have never bothered to write one could benefit from having one.

A business plan is a road map, a blueprint that spells out the specifics of how you plan to grow your fledgling company. It involves you stating on paper what you’re going to do, how you’re going to do it, and the time frame you plan to accomplish it in. Read the rest of this entry »

This is the easiest type of business to start, and the one that most solo entrepreneurs select to get off the ground. A sole proprietorship also requires a minimum of time to start, since the most you have to do is to register with your state government as a new enterprise by purchasing a business license. Once you have it in hand, you’re off and running. Read the rest of this entry »

One of the main problems that people run into in their first year of business is surprisingly mundane: How will you pay the normal household bills and expenses when the business is playing Godzilla with your cash flow and you can’t afford to pay yourself a salary? How are you going to keep a roof over your head? Read the rest of this entry »