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
-->
No comments:
Post a Comment