What Product/Service Will You Offer?

This is a very important question, not surprisingly, since you have to know what
you are selling in order to have a company that sells it. Are you going to sell a
specialty item? Are you going to sell an item or service that is offered extensively
in your area?
If you know what your company’s vision statement is, then generally you are
going to know what product or service you will be offering. However, that does
not mean you should stop there. Perhaps if you have a lot of competition, you will
need to look at offering the same product as your competition does, but with a
different angle. Market research will help you determine exactly the changes that
need to be made to the product or service so that you can remain competitive. A
good example of this is the rivalry between Apple and Microsoft. For years,
Microsoft was the dominant force in computer and Apple was more or less
forgotten. However, at the turn of the 21st century everything changed. While
Microsoft fell behind in anticipating how much the internet would change the
world, Apple took advantage of it. They created the iPod, which has sold millions
upon millions. From there they continued to adapt, creating computers that were
crash-free and virus-free. Now, Apple is considered superior to Microsoft
computers. The point here is that both companies offer software and hardware in
the computer field. Both have operating systems, browsers and even MP3
However, while Apple continued to adapt and predict what customers
would want, Microsoft did not and as a result; Microsoft is beginning to fall behind
as Apple moves forward.
This is why it is so important to do research to find out what the market is like for
your product. If it is over saturated in your area, then you need a new angle to
make your product work. Research is key with the release of any product.Justice Mandhla is the author of The Complete Building Blocks Guide on How to run your Business Marathon and he spends a great deal of his full-time writing days researching and writing about business start-ups, marketing and advertising strategies.
See more at http://www.longlife4learning.com

Financial Control : Cash Flow and Profitability

 No matter what your other reasons are for going into business, one of your main goals is probably to create cash flow and profit from your business. When looking at potential businesses, it’s important to examine the projected cash flow and profitability of the business. Amazingly, there are many businesses that don’t ever create a profit for their owner. While you can’t figure profitability with absolute accuracy, you can get a good overall picture of what you should be able to expect from a particular business. In the simplest of terms, cash flow is the money that comes into your business from the sale of products or services and is then paid back out to keep your business operating. Cash flow is absolutely necessary for the operation of the business. It’s just like maintaining your household. If you want to keep the electricity on and keep the banker from foreclosing on your home, you have to use the household income to pay those expenses when they are due. Businesses must create enough cash flow to pay their expenses, which might include vendors, employees, rent, utilities, etc. Small businesses can get into trouble if they overestimate what their cash sales will be and do not keep good records to always know approximately what their cash flow is. If you don’t know how much money is coming in, or if you are quickly spending the money that is coming in before you pay the business expenses, your cash flow can tighten to the point that you’re quickly in hot water with employees, vendors and others who are vital to the continuation of your business. Always be mindful of what you are spending from your cash sales. Limit your petty cash and spontaneous spending. Above the salary that you earn from working in your business, you may be counting on profit from your business to put your children through college or to pay for your retirement. You may be sorely disappointed if, after you’ve heavily invested into the business, the profit isn’t there. In many instances, a small business will meet expenses and payroll, but not create profit for the owner after all business costs are paid. That is why you must examine the profitability of a business before you delve into it. Follow the simple formula below to calculate the net operating expenses of a business after taxes: A. Determine your capital (this includes debt: money you have borrowed from banks, friends, family and other sources that you still owe) and equity (invested money) that has been paid on the equipment, inventory and other things you use in your business such as computers. B. Figure your cost of capital. C. Multiply your capital times your cost of capital, and you will determine the true profit point.

Simply put, the formula is: Capital x Cost of Capital = True Profit

Justice Mandhla is the author of  Boost your sales and attract new customers and he spends a great deal of his full-time writing days researching and writing about marketing and advertising strategies.

See more at  www.businesslearning4life.com>

Are You The Business Owner

Am I willing and able to devote the time it takes to start and maintain a business?

You probably didn’t just wake up one morning and suddenly determine that you’re going to start a business. Most likely, you’ve put a lot of thought into it and have realized that starting a business is a serious venture that will require something from you if you’re to enjoy the benefits. You’ve probably asked yourself, and maybe asked trusted friends and family members, if you have what it takes to be a business owner. Here are some considerations that may help you determine the answer to that question:

 

Time is a significant consideration when you’re thinking of starting a business. If you think you’ll start a business so you won’t have to work as much as you do at your current job, think again. Anyone who has successfully started a new business will warn you to become intimately acquainted with hard work and long hours. Usually, there is just no way around it while you are starting a business. Starting a business is not for those who tire easily or give up at the first sign of hard work.

There will come the time when you can train and trust others to run your business for you so you can spend less time involved in daily operations, if that’s what you want. In the beginning, however, you must be willing to put in the extra hours necessary to get your business up and running. Be realistic in determining whether you can afford the time to do this and still keep your priorities in order, and maintain the quality of life that you desire.

 

If you are married or involved in a serious relationship, discuss your business plans with your significant other and make sure you are in agreement about how much time will be spent on the business. It’s difficult to start and maintain a business if you are struggling with guilt and loyalty issues.

 

If you know you can’t realistically work full-time at a business, determine how much time you can devote to the business and set your business up accordingly. This may require you to start your business in stages or to even put off the start of your business until you can devote more time to it. It’s better to start slow and successfully get to the finish line than to start off with a bang and lose steam before your business is even established. Only you know how much time you can and will devote to a new business. Be honest with yourself about it.

Justice Mandhla is the author of  Boost your sales and attract new customers and he spends a great deal of his full-time writing days researching and writing about marketing and advertising strategies.

See more at  www.businesslearning4life.com

What qualities do you look for in a good employee?

You’ll want to find energetic people who have the physical and mental endurance to complete tasks in a timely manner and contribute to each assignment with enthusiasm.
You’ll want hire people who will take initiative. You don’t want to have to babysit employees who have no sense of what needs to be done or how to do it, or who just wait around to be told what to do. People with initiative find out what needs to be done and find a way to get it done.
You’ll want to hire people with a cooperative attitude. The last thing you want to do is struggle with someone who refuses to do things the way you need it done in conjunction with the rest of the team. While there is nothing wrong with creativity and thinking outside the box, lack of cooperation by even one employee can create serious problems in productivity. Cooperation is not only productive, but is infectious and quickly spreads to other employees and eventually even affects customers in a positive way.
Hire people who can be trusted to be dependable or you and your other employees will constantly be compensating for the lack of dependability.
Hire people who take ownership of their employment. These employees have a sincere desire to benefit their company beyond what their job description might demand. These are the employees who take pride in their work and in the business. Employees who desire to grow with the company are more easily retainable than employees who are just there to put in their hours and get their paycheck.
Hire people who are pleasant to be around. No one wants to work with grumpy, negative people. Negative people will affect every employee in your business and also your customers. Every employee will occasionally have a bad day, but for the most part, you should expect your employees to be at least pleasant, if not cheerful, at work.
It goes without saying that you want employees who are trustworthy and honest. Do your duty and carefully screen employees before hiring them. It’s better for you to find out that they are dishonest by talking to their previous employer or by doing a background check on them, than by firsthand experience. Dishonest and untrustworthy employees can be a severe liability to your business. Don’t risk it.
Justice Mandhla is the author of Boost your sales and attract new customers and he spends a great deal of his full-time writing days researching and writing about marketing and advertising strategies.
See more at http://www.businesslearning4life.com