This is the first in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of how to as it can be too easy to read and say “Oh yeah that’s it, I need to do that, and then forget it and let it go.

Preparation (No plans no direction)

The topic of preparation takes into account research as well as plans, so lets look at these.

Many people in business make the error of not doing full research or think they know better than any research often going off a hunch they have a great idea that will bring them great profits. Fact is many people are throwing away thousands of $$ by not getting the research in the start up phase right.

Some research basics

• Find out all you can about your competition, chart it on paper and figure out what sets them apart from the rest in your line of business.
• Find out what the basic profit margin is for your business then figure out how much you have to sell to be able to make that kind of turnover, then break that down into a daily figure to see how much you have to earn.
• Know what it will cost to run the business (find info on cash flow and make a LONG list of every aspect of your business and its expenses.)
• Know if it’s legal, do you need special licences or registration to run the business, find out now, NOT LATER!
• Chat to an accountant or solicitor about the right structure for your business, there are a few options here, pursue them and know the difference.
• Get smart around business terminology, create a glossary of terms (Google that, there are bound to already be a few.)
• Know your target market - focusing specifically on a group of people or types of businesses you want to target then find out how these people buy
• In business (especially in the start up phase) you will be selling, ideas, then products and or services so do some research on the right sorts of sales methods and then practice them to build your skills in this area.
• How much money is required to set the business up.
• How long it takes before the business will make money (They rarely make money from day one…)
• How will you pay your way in the start up phase? (a wage or similar…)

Planning

• A business plan is vital so you have a guide to follow, it can be The Mini Business Plan or a fully blown complex one but have one ON PAPER, they are no good in your head.
• The plan will at LEAST set out the goals you have for the amount of sales, the way the business will run (management) and the marketing.
• Because planning needs to have goals set, find easy ways to make goals work (the SMART system works well.)
• Make the plan usable, and make it the FIRST thing you turn to when you need to have an answer.
• Use a calender a 12 month one even if it’s a photo copy of a 12 month diary page, it’s better than nothing. Then write in all the things that will happen from start up day.
• Check out a bookkeeper to handle the accounts do you can focus on your business and running it right. Learn the bookkeeping terms and how they effect you. If you plan to do your own books, make sure with your accountant this is the best way to do things. Some will not accept your input of the info and prefer a bookkeeper (a professional) do it for you. (accuracy counts.)

There is a starting point for for your business preparation. I hope it makes things easier for your business planning phase.

Stumble it!