Jonathan & Charlotte perform 'Rule the World'

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Life is an Adventure

basic business housekeeping.

There are multiple business types: a sole proprietorship, a partnership, a limited corporation, and a corporation. 

Most people in this business start as a sole proprietorship and then change business entities as they grow. 




You will next need a business name and at least a few minimum business basics:

• A business phone number and/or a cell phone with voice mail
• Business licenses
• Errors and omissions insurance
• Business letterhead and branded invoicing statements (these can simply be templates in Word or can be automated in accounting software)
• A business e-mail address
• A Web site
• Business cards with your contact information 
• A nice brochure that details your business focus and skills 
• social media presence (pages on Facebook and Google+ and a Twitter account at a
  minimum, all of which need to be actively maintained)

 Of all of these, the brochure is the least important in today’s environment; 

master social media and you’ll master marketing.

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Small Business Made Easy

There are many advantages in starting a home based business. You can enjoy the fun of working in a home atmosphere and can work at your convenient schedule. But running your own business requires lot of dedication and effort. Starting a business is hard work but the rewards can be enormous, hopefully the following will get the creative thought juices flowing.

BE YOUR OWN BOSS – THREE SUGGESTIONS TO NOTE

FOR THE RISK ADVERSE

Franchise is probably the best option, with franchising the market research has been done and the brand is established.

FOR THE REAL ENTREPRENEUR

Starting their own business has real appeal.  These are people who have ideas and don’t want anyone telling them how to implement them. But ideas alone do not make a business become successful.

FOR THE BUSINESS OWNER

If you opt to buy a business, do your due diligence. There are many things to consider and I highlight goodwill.  First, banks will not lend against goodwill. Second, It can disappear very quickly once the old owner leaves.  Many customers leave a business because of strong links to the previous owner.

A First step for the budding entrepreneur is an understanding of the language.

ACCOUNTS PAYABLE

This is the record of the money the business currently owes.

ACCOUNTS RECEIVABLE

A record of the businesses entitlement to the proceeds of the sale of goods or services, for which payment has not yet been received,

BALANCE SHEET

Its the most important data in business – a statement of the financial position, showing the asset, liabilities and owners equity at a particular point in time.  In other words the balance sheet shows your businesses net worth.

BUSINESS PLAN

This is your map of your business, setting out what you want to achieve and how you will get there.  It usually includes your objectives, financial projections and marketing plan.  (Research shows around 60% of small businesses do not have a business plan).

 

CASH FLOW

For small business cash is the oxygen and keeping it moving will keep your business alive.  The most important aspect of cash flow management is avoiding extended cash shortages, caused by having too greater gap between cash inflows and outflows.  You won’t stay in business if you cannot pay your bills.  

COMPANY STRUCTURE

The majority of small business entrepreneurs run operate their business through a company structure, followed by sole traders, then trusts and partnerships.

CREDIT TERMS

This is the amount of time between when a customer receives goods or services, versus the expected time to pay for them.   It is reality that creditors or customers stretch payment terms, whereas debtors such as suppliers or banks may not be so flexible.

GOODWILL

This is the intangible asset of a business, reflecting the value of things such as reputation and customer loyalty.

MICRO-BUSINESS

These are the smallest businesses usually run from home.  The growth of the internet and online shopping has made running them much easier.

PARTNERSHIP

This type of business is where more than one person has a stake.  This can either be a “hands on” partner or a “silent” partner that provides start-up money but does not get involved in shaping the business.

PROFIT

The difference between profit and turnover is the fundamental principle of business success.  It is the amount of money left after all business expenses including tax have been paid.

To be a success in business, you must know how to manage time for work and family and an understanding of the basics outlined in this report will get you on your way. Above all, I think the best advice I received is to have fun, you cannot apply yourself fully to something if your heart is not in it.

I also recommend having a quick look at an inspiring set of tips in a blog post by Richard Branson.

If you do what you've always done, you'll get what you've always gotten.

-- Tony Robbins

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