3 Essential Tools for Starting and Maintaining a Small Business   3 factors that drive the success of small businesses. 1) Acquiring start-up capital 2) Finding customers 3) Accounting for, budgeting and controlling sales and expenses The following resources will help your small business achieve these success factors. Acquiring Start-Up Capital An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money. There are two ways to obtain a business plan. 1) Do it yourself by amending a business plan template, or 2) Hire a professional to do it for you. Obviously obtain 1) will be a great deal cheaper. Finding Customers Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. It is believe that a cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards. Accounting For, Budgeting and Controlling Revenue and Expenses Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till. Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business.

	How to Set Up and Run Your Own Business I think it's important in life to be a success, and yet it is surprising how unambitious the career options proposed by most schools (and some universities) are. They assume that you want to get a job and be paid a regular wage, have a mortgage, retire at a particular age, etc, but without making all this sound too much like the song "Choose Life", it has to be said that you really can choose your future and you really don't have to do the normal expected thing. What would be nice would be to make a fortune and become immensely rich. Looking at this aim in a practical sense, it soon becomes obvious that even if you get a well-paid job and work until you're 65 years old, you'll not really become truly rich. You don't get rich by working for someone else. A better plan is required. There are various ways of becoming rich: Winning the Lottery, but this requires luck. Being a STAR, but this requires star-quality and luck as well (more about this later). And then there's running your own business, which anyone with enough sense and determination can do. You don't need to be brilliantly clever, lucky, have star-quality, have an ancestry of entrepreneurs on both sides of the family, or be quite well-off to start with, although all these things help a bit. What really helps is getting a few things right, and now I'll go on to describe these things, in the general helpful hints and tips by Zyra style... * The first myth to explode about running your own business, is the notion that to start any business requires a lot of money. This idea is believed by almost everyone, strange as it may seem. Whilst it is true that some types of business require an enormous initial outlay, most only require a very modest initial investment, and some require virtually no money at all to start them off! It is quite practical to start a business with no more money than you spend on a Saturday night and end up eventually becoming a multi-millionaire. * Don't get me wrong about this - becoming rich by setting up your own company is not a get rich quick system. Running your own business is harder work and requires longer hours than having a 9-5 job. It's not an "easy option". The point is that you CAN become immensely rich, not that it's easy. However, if you hate being poor, the extra work required to become rich may be worthwhile. * The essence of running your own business with success is a matter of good planning. It is a strategic planning philosophy which works best, as seen in the Direct Drive idea. You plan what you're going to do, work out what kinds of things might go wrong, and test the ideas out to see what's practical. If you play chess, apply that chess-playing logic to life and money, and you are likely to be a success. * Determination is important. It's best to have an attitude of being persistent in working on your business. You have to keep on at it even though it's hard work and doesn't have any immediate reward. * Accounting. It's not boring. There are two types: Tax accounting and Admin accounting. Tax accounting is done as follows: Collect all important-looking financial paperwork and put it all into a large bag. Look after this carefully and give it to your accountant. Admin accounting is something you do yourself, where you work out on the back of an envelope how much money you are getting in and how much money you are spending. Every part of your business has to make sense financially. So, if you're manufacturing something, it has to sell for more than the cost of all the parts (sounds silly, but I have seen businesses where this was not so!). * This idea of "Admin accounting" is important and extends into having a knowledge of the way money works. If you have a cash till with £1000 in it, a person with no capitalist sense may tell you that you have made £1000. You've got to know this is not true. Your takings might be £1000, but if your stock cost you £800, then you've only "made" £200. Minus your overheads. * Overheads are the cost of running a business, such things as electricity, property maintenance, insurance, fuel, the type of things that still cost money regardless of how much business is going on. Watch out for overheads very carefully. Keep them to a minimum if possible. I've seen companies that take in huge amounts of money and yet still go broke because their overheads are too big. But this is no secret threat that can creep up and bite you. You can quantify overheads and work out exactly how much money your company needs to make to cover them. * Open a bank account but try to avoid paying "business rates" for it. Most banks have some kind of special offer on free banking with a current account. You don't need to pay for the privilege of paying cheques in, or any kind of monthly fee generally. If you can't find a bank account that's free, run your business from a building society account! * Avoid PARTNERSHIPS. Especially with your friends! If you decide you must have a business relationship with someone, make sure it's all written down and everyone knows exactly what they are supposed to do. * Limited liability. Whilst it's tempting to be a LTD company, this is often overrated and misunderstood. The advantages and disadvantages of being Limited are mainly not to do with the snazziness of the company but are to do with investor insurance and formal management. It's often easier and less expensive to be a sole trader. In most capitalist countries, a person can declare themselves to be a company (not limited) just by stating the fact, and there is no official registration required. This is very good for business, as companies can be created ad-lib by would-be entrepreneurs and can succeed or fail on their own merits. * There are many types of business you can set up. I have run many businesses (with greater or lesser success) since I left university in 1982. My current business makes more money than if I had a well-paid normal job, and it is THIS WEBSITE Zyra! , and I can go on and tell you about affiliate marketing if you like, but you'll probably have some entirely different brilliant idea for a business! * Your own website. Whether you're an Internet business or not, it's good to have your own website! This does not have to be expensive. See How to Get a Free Website. All web design companies and affiliate marketing companies have their own websites, but most fishmongers and windowcleaners don't usually have. However, having a website is good for business. Customers are often impressed to see "www." on the company's "premises". Also see how to choose a domain. (Don't be caught out by cybersquatters or fooled by rogues phoning in and claiming to be able to sell you your domain! Buy it yourself, first!) And now here are some things to watch out for, potential threats to a company which can be seen in advance if you know about them: * Beware of CREDIT. Obviously beware of borrowing too much money from the bank and paying loads of interest. But also beware of extending credit to your customers. If you do, some of them will not pay up, and the rest will have to subsidise them! It's better to be CASH ONLY and IN ADVANCE. This will allow you to sleep better, will be cheaper for your customers, and will not let bad payers damage your business! Remember: Bad payers come in many disguises. They may look reputable, look rich, and seem honest, but can bounce cheques on you and make lame excuses. Don't let them get away with it! * When signing anything, always read all of it. If there's too much smallprint it's better to refuse to sign it than to sign it without reading it. * Don't have "all your eggs in one basket". If you're a supplier, don't let your business become DEPENDENT on one customer. A well-balanced company should be able to survive the loss of any one or two customers and still survive. The problem is especially bad where a small company is a supplier to a big supermarket and sells 80% of their produce to the supermarket. It has been known for the customer to eat the company whole by withdrawing the deal, making the company go broke, and then buying the company up for next-to-nothing at the liquidation sale. To avoid this, always have enough lifeboats, such that even if the worst happened, you will not be lost without trace. * Also, if you have a small shop, be on good terms with other small shops as much as possible but beware of the habits of some of the larger rivals. Some of the more disreputable places have been known to nobble the suppliers, making dodgy exclusivist deals to try to cut out the small shops. For that reason it's best to suss out the enemy before they suss you out. Wherever possible it's best to have many different suppliers who are all in healthy competition with each other, and to be in-the-know with the friendlies, who all know who the worst offender is. Some small towns live under economic oppression and poverty because of the unreasonable business behaviour of a few vested interests who "own the town". * Another threat to a business which has to be watched out for is to do with commercial rent. If you rent a building, be very careful and be on your guard for this. Some landlords have a habit of waiting for a business to be a success and then doubling the rent. To avoid this, make sure the smallprint is not too bad, and also have options open to move to different premises if the problem occurs. * Don't work too hard, have no fun, and catch the dreaded diabetes. Also, if you run a small business, make sure that even if you were to suffer from a sudden attack of bad health, your business will not be bankrupted. Self-employed people have no statutory sick pay or other compassionate safety nets. Therefore it's best to make provision to have some kind of understudy and living will! To sum it up: If you have a desire to run your own business, then you should do it! However, plan what you're doing well and have good strategy worked out in advance. if you've got a good idea, give it a try. Don't risk more money than you can afford to lose, and don't be put off by problems that occur. Listen to different people's good advice and then make your own mind up about whether they are right or not. In principle anyone who can think logically and has some determination about them can run their own business, and some of them will make money. I wish you well with it! this review originated by Zyra!

	Quit Your Day Job: 10 Steps to Venturing Out on Your Own By Stephanie Chandler   If you've been thinking about starting a business, here are the steps you need to take to get started. Seize your entrepreneurial dreams! If you’re one of the 58% of Americans who have considered starting a business but don’t know how to proceed, help is at hand. The following steps will show you how to transform your dream of business ownership into reality. 1. Figure out what you want to do. You’re not alone if you know that you want to work for yourself but aren’t yet sure what exactly you want to do. Start by making a list of your interests, talents, and skills. Talk to your family and friends and begin brainstorming ideas. The sooner you begin your quest, the sooner you will find the answers. 2. Start saving now. It is wise to have at least one year’s worth of living expenses in the bank before you quit your day job. It will take time to make a new business profitable, and it could take longer than you expect. Start saving now so you can be prepared for the worst while you hope for the best. 3. Educate yourself. You can take classes through your local Small Business Administration (www.SBA.org) or seek free small business counseling from the Service Corp. of Retired Executives (www.score.org). Business books and magazines are also essential, and so are industry-specific trade associations. 4. Utilize a checklist. There are many tasks involved in starting a business and using a checklist will help you keep your priorities in order. Take it a step further by adding target completion dates to each task. 5. Formulate a plan. No matter what business you decide to start, it’s crucial that you outline a plan for success. A formal business plan is best, but at the very least begin by mapping out your goals and ideas. Committing your plan to paper will help you anticipate the direction of your business and identify potential weaknesses. 6. Obtain licenses and permits. Business license requirements vary by state and county, so check with your county offices to find out what the requirements are for your area. In most cases you will pay an annual fee to renew your license ranging from $50 to $300. 7. Start part-time. There are numerous advantages to starting your business part-time. If you can find a way to keep your day job while you launch your venture, you will have the opportunity to test your business model and make sure it’s viable while you evaluate your passion for the business and determine if it’s something you would truly enjoy on a full-time basis. You can also reinvest any profits from the part-time venture into the future of the business, and may even be able to take advantage of home business tax deductions at the end of the year (talk to your accountant for assistance). 8. Dedicate the time it takes. Planning your business will take free time from your day, but if it’s something you want badly enough, it can be worth the sacrifice. You can get up an hour earlier, skip the evening news, or work during your lunch hour. This extra work time will also prepare you for the first two years of business ownership, which typically require long hours. 9. Develop a backup plan. Many businesses fail due to under-capitalization. Forecast the cash that you need for both your business and your living expenses and have backup sources for money in case you get into a jam. 10. Don’t take the leap until you’re ready. Before you even think about quitting your day job, make sure you have everything in place: a solid business plan, enough capital to make the business successful, a savings account to cover personal living expenses, insurance (medical, dental, liability and any other required policies), a thorough understanding of what you’re in for, a backup plan if things don’t go as expected, and the passion to make it succeed. Unfortunately there are no guarantees in business. You could have a rock solid business plan but be hit with a natural disaster, new competition in your area, or other uncontrollable circumstances. As long as you don’t invest more than you can afford to lose and your business is carefully-planned, you can minimize many of the risks and increase your chances of success. Stephanie@BusinessInfoGuide.com Author's URL: http://www.BusinessInfoGuide.com Stephanie Chandler is the author of “The Business Startup Checklist and Planning Guide” (Aventine) and “From Entrepreneur to Infopreneur: Make Money With Books, E-books and Other Information Products” (Wiley, coming Fall 2006). Visit http://www.BusinessInfoGuide.com, a directory of resources for entrepreneurs.   Please visit: small-business-information for more great info.

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