Useful tips for
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How to make a
business contact list...? No matter what
your business, a proper contact sheet will
help you to get organised. It can contain
business associates, co-workers,
freelancers, your personal contacts, or even
your local business joint. Here's how to
create a useful contact list.
At the top of the page write the title of
the list, such as "Business Contact List"
Below that make 7 column headings
horizontally with space between each that
read "Business Name," "Business Type,"
"Contact Name," "Phone," "Email," "Address"
& "Comments". Now create your categories
listed vertically. These will help you
further organise you contact sheet. These
categories should be a broader Introduction
of what the specific business offers (e.g.
"Automobile"). Make the font of your
categories rows larger or bolder then the
rest of the document so they stand out. Now
begin to fill in your rows with actual
information. For example, under "Automobile"
write (horizontally under each column
heading) "Metro Automobile". Continue to
fill in the row with the contact name, phone
number, email and address of "Metro
Automobile." Continue to fill in the contact
list with all of your contacts.
Advice for Starting A New Business for
Success...
Few very
important tips that helps you to start a new
business :
Step : 1) If you’re going to devote a lot of
time and energy to starting a business and
building it into a successful business, so
it’s really important that you truly deeply
enjoy what you do, whether it be running
catering, financial advice, automobile etc.
Step : 2) Start your business while you’re
still employed. How long can most people
live without money ? Not long. And it may be
a long time before your new business
actually makes any profits. Being employed
while you’re starting your business means
money is in your pocket while you’re going
through the business start up process.
Step : 3) Do not start new business alone.
You need a support system while you’re
starting a business (and afterwards). A
family member or friend that you can bounce
ideas off and who will listen
sympathetically to the latest business start
up crisis is invaluable. Even better, find a
mentor or, if you qualify, apply for a
business start up program. Experienced
guidance is the best support system of all.
Step : 4) Get clients or customers first.
Don’t wait until you’ve officially started
your business to line these up, because your
business can’t survive without them. Make
the networking & the contacts. Sell or even
give away your products or services. You
can’t start marketing too soon.
Step : 5) Write a business plan. The main
reason for doing a business plan first is
that it can help you avoid sinking your time
and money into starting a business that will
NOT succeed. (See “Why You Need A Business
Plan” for other good reasons.)
Step : 6) Do the research. You’ll do a lot
of research working through a business plan,
but that’s just a start. You need to become
an expert on your industry, products and
services, if you’re not already. Joining
related industry or professional
associations before you start your business
is a great idea.
Step : 7) Get professional help. On the
other hand, just because you run a small
business, doesn’t mean you have to be an
expert on everything. If you’re not an
accountant or book keeper, hire one (or
both). If you need to write up a contract,
and you’re not a lawyer, hire one. You will
waste more time and possibly money in the
long run trying to do things yourself that
you’re not qualified to do.
Step : 8) Get the money lined up. Save up if
you have to. Approach potential investors
and lenders. Figure our your financial
fall-back plan. Don’t expect to start a
business and then walk into a bank and get
money. Traditional lenders don’t like new
ideas and don’t like businesses without
proven track records.
Step : 9) Be professional from the get-go.
Everything about you and the way you do
business needs to let people know that you
are a professional running a serious
business. That means getting all the
accoutrements such as professional business
cards, a business phone and a business email
address, and treating people in a
professional, courteous manner.
Step : 10) Get the legal and tax issues
right the first time. It’s much more
difficult & expensive to unsnarl a mess
afterwards. Does your business need to be
registered? Will you have to charge CST
(Commercial Tex)? Will you have to have
Workers’ Compensation Insurance or deal with
payroll taxes? How will the form of business
you choose affect your income tax situation?
Learn what your legal and tax
responsibilities are before you start your
business and operate accordingly.
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wholesale listings of vendors offering
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Make a budget & save money as possible before starting.
This is
important to note : People go into business
without any savings, exclusively using loan
money from friends, banks, or the money
lender. They except to be able to start
paying the loans back right away with their
profits. What these business owners don't
realize is that it can take months or years
to make a profit. And once a lender
discovers a business isn't as profitable as
expected, the lender is likely to call in
the loan or refuse to renew it for another
year. Often new business owners then have to
take out home equity loans or use credit
cards to pay off their loans (which puts
their home and credit rating at risk).
A better plan is to save up as much of the
needed investment money as possible,
including your living expenses for the first
year, or even two. Odds are that your
business won't be profitable for one to two
years. Even if you get plenty of business
coming your way -- and your customers pay
you on time, which isn't always a sure thing
you'll want to be able to invest most of
that money back in the business for space,
equipment, advertising, and insurance needs
etc.
Start from the minimum.
Start with
minimum.
Don't rent premises if you can work
somewhere else, and don't hire employees
until you can keep them busy. (You can hire
independent contractors or temps in the
meantime.) People who start their small
business on the cheap, often in a garage or
some other scavenged space, and create their
first goods or services with more sweat than
cash, have the luxury of making their
inevitable rookie mistakes on a small scale.
And precisely because their early screw-ups
don't bury them in debt, they are usually
able to learn and recover from them.
Save & Protect your personal assets.
When you go
into business for yourself, you are usually
personally liable for all judgments and
debts that the business incurs. This
includes business loans, taxes, money owed
to Suppliers and landlords, and any
judgments against the business as a result
of a lawsuit. If you don't protect yourself,
a creditor can go after your personal
assets, such as your car and your house, to
pay for these debts.
While you can protect yourself against
lawsuits by buying business liability
insurance, this won't help you with business
debts. If you will be running up big debts,
consider forming a corporation or limited
liability company (LLC). Just one person can
form either of these types of businesses.
Note how & if you
will make a profit.
You should be
able to state in just a few sentences how
your business plans to make a substantial
profit. For starters, you need to know your
costs: how much you'll spend purchasing
inventory, paying the rent, compensating any
employees, and covering what is likely to be
a surprisingly long list of other costs.
Then you can figure out exactly how much you
need to sell each month, for how many
dollars, to cover those expenses and have an
adequate profit besides. These numbers are
all you need to create a "break-even
analysis."
Always make a business plan, even how short it is.
Understanding
your profit numbers and creating a
break-even analysis is the first step in
making a business plan. For most small
companies, the key portions of a business
plan are the break-even analysis, a
profit-and-loss forecast, and a cash flow
projection. (Projecting your cash flow is
key and will make or break your company:
Even if your business is getting plenty of
work or selling its products, if you're not
getting paid for 90-180 days, you're not
going to survive unless you've planned for
it.) With a cash flow spreadsheet in place,
as well as a profit-and-loss forecast, you
can tinker with your business idea and
improve it before you start - and continue
to use them after you start.
Creating a business plan also allows you to
determine what your projected start-up costs
are (how much money you'll need to save) and
what you marketing strategies are (how
you'll reach customers to make sales). If
you can't make the numbers work on paper,
you won't be able to make them work in real
life.
Keep a competitive edge of market.
Building a
competitive edge into the fabric of your
business is crucially important to long-term
success. Some ways to get this edge are by
knowing more than your competitors, making a
product that is hard or impossible to
imitate, being able to produce or distribute
your product more efficiently, having a
better location, or offering superior
customer service.
One way to hold on to your competitive edge
is to protect your trade secrets -
confidential information that gives you a
competitive advantage in the marketplace.
Examples of trade secrets include customer
lists, survey methods, marketing strategies,
and manufacturing techniques. To protect
your trade secrets under the law, you need
to take steps to keep the information
confidential. This includes marking
documents "Confidential," using passwords to
protect computer information, using
nondisclosure and/or no compete agreements,
and limiting access to employees with a
reasonable need to know the trade secrets.
Another way to keep your competitive edge is
to react quickly to bad news. Once you see
that your business faces some kind of
adversity, you need to come up with a plan
to deal with it immediately. This may
involve moving your offices, introducing a
new product or service, or developing a
better way to reach customers.
Put all your legal documents in writing.
The laws of
your state require you to put some contracts
and agreements in writing :
-
Contracts
that will last longer than a year.
-
Contracts
that involve the sale of goods worth
$1000 or more.
-
Contracts
that transfer the ownership of
copyrights or real estate.
Even if not
legally required, it's wise to put almost
everything in writing, because oral
agreements can be difficult or impossible to
prove. This includes leases or rental
agreements, storage agreements, contracts
for services (such as consulting or
electrical work), purchase orders or
contracts for goods worth more than a couple
hundred dollars, offer letters of
employment, and employment policies. Get in
the habit of getting and giving receipts for
all goods, services, and deposits,
regardless of how much.
Keep & Hire always good people. Your goal
should be to hire and retain truly excellent
employees - not just reasonably competent
ones. A highly competent and truly
enthusiastic employee is at least two and
sometimes even three times as valuable as a
person of average skills.
To create a stable and happy workforce, it's
essential not only that your employees (and
independent contractors) believe they are
being fairly treated, but that your business
is worthy of respect. Employees and
contractors who like their work will
represent you well on and off the job. And
customers will more likely be loyal to an
upbeat business and are more likely to
recommend it to their friends.
Give Preference to the legal status of your workers.
When you hire
workers as independent contractors, make
sure they shouldn't really be taxed as
employees. The IRS can impose substantial
penalties against you for not withholding
taxes and paying taxes for a worker who is
really an employee. The IRS and other
agencies are likely to think that a worker
is an employee rather than an independent
contractor under any of these conditions:
-
The worker works full-time or nearly
full-time for you.
-
The worker doesn't work for anyone else.
-
The worker provides services that are an
integral part of your operations.
-
You control how the worker does the job
and provide detailed instructions and
training for the worker.
One way to help avoid trouble is to have the
worker sign a written service contract, or
independent contractor agreement.
Most employees you hire will be "at-will"
employees - subject to being fired at any
time and for any reason (except for illegal
motives such as discrimination). It's
important to preserve your at-will rights
because they protect you from having to
prove that you have a valid business-related
reason to terminate an employee. Don't make
any promises to prospective or current
employees that you are offering a permanent
job or that they will lose their job only if
they perform poorly, because this will limit
your ability to terminate the employee for
other reasons, such as personality conflicts
or finances.
When hiring an at-will employee, have the
employee sign an offer letter that makes it
clear that the employment relationship is at
will. Except for high-level executives, you
shouldn't have employees sign an employment
contract -- this can limit your ability to
alter the terms of employment as your
business needs change and subjects you to
higher legal standards.
Pay your taxes & bills on time.
In the real world, where a reputation for
keeping one's word is a hugely important
asset, a good strategy is either to pay your
bills up front or pay them early. You gain
trust, build a positive credit profile, and
have a built-in safety net if things go
badly. These benefits outweigh any interest
you might earn by holding onto your money
until the last possible minute.
Most importantly, pay your payroll taxes on
time, especially the portion that you
withhold from your employees' paychecks. The
IRS and state tax authorities can hold you
personally liable for these taxes, plus
stiff penalties, if they're not paid. This
is true even if you operate your business as
a corporation or LLC or if your business
goes bankrupt-you will still be personally
and legally on the hook to pay back payroll
taxes.
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