Business Plan | MIMIMISES

How To Choose The Best Home Business Now

March 9, 2021 Comments Off

Whether you need a source of income to replace a job or are just looking for a bit of extra income on the side, starting a home business is a great way to go about it. But there are thousands of possible things that you could do that would fall into the category of home business, and not all of them are the best home business for every person. I’ll help you narrow down your choices to the best home business for you specifically.
The first thing you need to do is take a look at your skills and interests. Take a piece of paper and make a list of absolutely everything you can do, whether it’s writing or quilting or programming. Think of you past, when you were younger, what were you passionate about? You should also think about the sort of products you’re interested in and knowledgeable about, and include them as possible business ideas, as you could always start a business selling or recommending these products.
If you like to go the extra mile, ask your friends, your colleges and even old friends with whom you are not hanging out anymore what are your best skills. Maybe they tell you the things which they did not like fist, but afterwards they let you know the things you were really good at.
The next thing you need to do is look through the list and eliminate anything there isn’t an actual demand for. Don’t just speculate; actually go online and see if there are people successfully selling whatever product or service you’re thinking about. For instance, if you’re thinking of selling handmade quilts, see if other people are doing it successfully. These people would be competing against you, but at least they prove that there is a market. The best home business does require a market to succeed.
Once you’ve eliminated the obvious duds, pick the item from your list that appeals to you most, and give it serious consideration. Do some calculations of how much it would cost in terms of materials (if any) and other set up costs, and how much you would need to make in order to be profitable. Think back to the previous step and what prices your competitors are setting as a guide for how much money you would be able to get per customer. If that’s not enough or barely enough to offset the costs, then the idea isn’t profitable, and you should choose the next most appealing item on your list and repeat this step over again. Do this until you’ve found the idea that is profitable. If none of them fit, go back to step one and come up with a new set of ideas and repeat the process.
Once you have finished, you should have found the best home business for you. It should be something you’re capable of doing and keep in mind, it should be something where your heart beats, something that there is a demand for, and something that will make you money. Now all you have to do is actually start working on it. Remember, each journey begins with the first step, take action NOW and start your list.…

How to Write a Business Plan – The Market Analysis Section

March 2, 2021 Comments Off

Your business plan will include a Market Analysis section. This is the portion of the plan that will require the most research; rightfully so, since it will be a true indicator of whether you have a viable business or not.

The business plan Market Analysis will include:

Clearly define your industry or market. Provide statistics of the size of the market. You should also document any trends or cycles and a forecast for future growth or decline.

Pinpoint your target market. You should get as detailed as possible in defining your customer demographics. Narrow it down to age group, gender, income, lifestyle and locale. The more you understand your consumers, the better. Be sure to include any supporting statistics available in the appendices section of the business plan. Your market analysis should also indicate any motivating factors that will trigger your customers to purchase your products.

Market test results. Whether it be customer surveys or pols, you should have concrete statistics to support your industry research. In this market analysis section you should highlight the end results but the full details of the test should be available in the appendices section for further investigation by the reader.

Turnaround Time or Lead Time should be clearly defined. Indicate how long will it take to fulfill your orders or deliver the product to the customer. Are you capable of handling volume orders?

Discuss the barriers or road blocks you anticipate when creating a place for your product in the market and how you will overcome them. You need to briefly discuss what your competition’s strengths and weaknesses and how you compare.

The Market Analysis is a very important section of your business plan. It may be well worth your while to solicit the aid of a market research company who is experienced in surveying and poling consumers to help you more clearly define your target market. Since this factor is the foundation of your sales and marketing plans, it is of utmost importance that you get this right.…

Common Cents When Financing Your Small Business

November 2, 2020 Comments Off

“The Best Advice is always free”

Starting a small business requires bucket loads of wisdom. Financial wisdom offered through various media is not always inherently beneficial to the reader and their business.

The foundations for financial excellence are elementary and logical; here is a new perspective on financial insight to starting your small business. Making use of purely scenario planning this illustrated scenario would be a recommendation for all businesses that you intend financing.

The average cost of setting up a franchise and small business in U.S.A. is currently in the $300,000.00 to $ 474 000.00 marks, a sizeable sum taking into consideration the prevailing economic climate and business confidence levels.

Loans or Finance

In order to stimulate the economy, banks are eager to finance new business as this has a long-term stimulus on the economy and contributes to job and wealth creation.

Most individuals do not have the entire capital amount available to finance their new venture and financing becomes the preferred and logical route to market.

Taking into consideration the average price of a new franchise $474 000.00, the average cash portion of financing that particular business would be $ 153 000.00 which includes the initial, cash joining or franchise fee.

This would equate to a financing portion of $321 000.00 or 68% of the initial set-up cost of the business.

From a personal and statistical point of view, the gearing or debt ratio is too high and the minimum recommended debt ratio should never exceed 50%.

Why is gearing so important?

It is nerve-wracking and soul-destroying to build a business for you only to allocate the major share of your income and profits to servicing a loan and the commensurate interest payments. The strain on the cash flow and reserve funds is too great, and the business rapidly becomes a financial risk to the entrepreneur and the banks concerned.

“The Free Advice”

Total Cost

When using the above figures as our reference and benchmark, if the inclusive cost of the business is $474 000.00.

It would be prudent to assume that if shares were offered at $1.00 per share then the business would have 474 000 shares on offer.

Share Distribution

Taking my advice of a 50% gearing or financing ratio, the business when financed by the entrepreneur would allocate to the entrepreneur, 50%(237 000 shares) of the shares currently on offer (The portion he/she has paid cash for)

The remaining 50% of shares on offer would be the right and technical ownership of the banks or financing institution.

The Thinking Motivating This Strategy

As the entrepreneur pays off the loan, their ownership or share-holding increases exponentially.

Goals are easy to set, time and financing permitting the entrepreneur sees his/her goal of 100% ownership as achievable and desirable.

When the bank is essentially a partner in your business the relationship changes, the entrepreneur can take the banks perspective into consideration as they are a valuable share-holder, the logic of having a “you” and “me” approach becomes a “we” approach to the business.

Any extra funds available will inherently go toward servicing the loan on the business.

The Ultimate Lesson

That our thinking and approach has changed, it is a recommendation that one ignore financing by financial institutions and approach friends, acquaintances, and family to finance your business using this share-holding approach. The entrepreneur develops a fiscal policy that is easy to equate and calculate, profit distribution is just as equitable, and the entrepreneur has a clearer indication of the status of the business free of financing and interest costs and charges.…

Real Estate Investing Tips You Can Use

May 26, 2019 Comments Off

Real Estate Investing Tips You Can Use

More and more people have been turning to real estate investments nowadays. While this can be a great way to make some money, it can also be disastrous. Failure is more likely to occur if you’re not educated on the subject. Get all the real estate investment information you need here.

Know that your reputation will be incredibly important when you enter into this endeavor. Therefore, you should make sure your reputation is trustworthy. This gives you credibility and will help people to be loyal to you.

Inspections cost money. However, if there are problems with the property that cannot be seen by the naked eye, you are likely to spend much more money in the long run. Therefore, think of an inspection like an investment and always have one done prior to purchasing a property. It may not uncover anything, but there is always the chance that there is something seriously wrong with a home.

Business Plan

When investing in residential real estate, make sure you know the neighborhood you are buying in. Some neighborhoods offer better resale potential, while others are better for long or short term rentals. By knowing your neighborhood, you can create a smart business plan that nets you the highest potential for future profits.

Income

There are to essential rules to making an investment in an industrial or retail property. The number one rule is never pay more than the land itself is worth. It’s also important to make sure that too much money isn’t spent on the property. Look at the price of the property physically as it is independently and also figure out how much in rent you can make from the business. If the numbers are right, then go for it.

Money

When you invest in real estate to rent the property, make sure you’re able to get your money back within a reasonable amount of time. If it takes you years to get the money back in rental payments, then it will be hard for you to use the money on anything property related.

Opportunity

Understand the value of your time when it comes to opportunities. Though you might enjoy fixing up a property, is it the best use of your time? Maybe this isn’t the right property, perhaps there is something better out there? If you can outsource certain jobs, then you should do so. This will let you free up time and concentrate on more important details.

The Business

Make sure to educate yourself on real estate before you get into investing. It is very important that you learn as many strategies and tips about it as you can. It is recommended that you research as much information as possible to better your chances of success.

As this article has proven to you, some knowledge can mean all the difference in whether or not you are successful with investing in real estate. The tips you have just read will more than likely help you get the outcome you desire. Be sure to make use of these tips.…