How To Write A Successful Business Plan

by: Jason Kay

Whether you are planning to start a brand-new business, expand an existing company, or get financing for a business venture, you will need to write a business plan. A business plan not only lends your business a sense of credibility, but also helps you to cover all your bases, increasing your chances of success.

Although writing a business plan can be a lengthy, intimidating project, it is not necessarily difficult. Here is an overview of how to write a successful business plan.

What to Include in Your Business Plan

Your business plan needs to demonstrate that you have thoroughly considered all aspects of running your business. To that end, the standard business plan has nine major sections, covering everything from your business’s mission statement to a detailed financial analysis.

Executive Summary

The first – and most important – section of your business plan is the executive summary. This section is so important that it should literally be the first thing the reader sees – even before the table of contents! However, it should also be written last, as you’ll have a better understanding of the overall message of your business plan after you’ve researched and written the other sections.

One of the most important parts of the executive summary is the mission statement. The mission statement is only three or four sentences long, but it should pack the most punch out of everything else in your business plan: Those four sentences are responsible for not only defining your business, but also capturing the interest of your reader.

The rest of your executive summary should fill in the important details that the mission statement glosses over. For instance, your executive summary should include a short history of the business, including founder profiles and start date; a current snapshot, listing locations, numbers of employees, and products or services offered; and a summary of future plans and goals.

This section is a candidate for a bulleted format, which allows you to list main points in a manner that is easy to scan. Avoid using too much detail – remember, this section is a summary. A page or two is usually sufficient for an executive summary.

Market Analysis

The next section of your business plan focuses on market analysis. In order to show that your business has a reasonable chance for success, you will need to thoroughly research the industry and the market you intend to sell to. No bank or investor is going to back a doomed venture, so this section is sure to fall under especially close scrutiny if you are looking for financing.

Your market analysis should describe your industry, including the size, growth rate, and trends that could affect the industry. This section should also describe your target market – that is, the type or group of customers that your company intends to serve. The description of your target market should include detail such as:

• Distinguishing characteristics
• The needs your company or product line will meet
• What media and/or marketing methods you’ll use to reach them
• What percentage of your target market you expect to be able to wrest away from your competitors

In addition, your market analysis should include the results of any market tests you have done, and an analysis of the strengths and weaknesses of your competitors.

Company Description

After your market analysis, your business plan will need to include a description of your company. This section should describe:

• The nature of your business
• The needs of the market
• How your business will meet these needs
• Your target market, including specific individuals and/or organizations
• The factors that set you apart from your competition and make you likely to succeed

Although some of these things overlap with the previous section, they are still necessary parts of your company description. Each section of your business plan should have the ability to stand on its own if need be. In other words, the company description should thoroughly describe your company, even if certain aspects are covered in other sections.

Organization and Management

Once you have described the nature and purpose of your company, you will need to explain your staff setup. This section should include:

• The division of labor – how company processes are divided among the staff
• The management hierarchy
• Profiles of the company’s owner(s), management personnel, and the Board of Directors
• Employee incentives, such as salary, benefits packages, and bonuses

This goal of this section is to demonstrate not only good organization within the company, but also the ability to create loyalty in your employees. Long-term employees minimize human resource costs and increase a business’s chances for success, so banks and investors will want to see that you have an effective system in place for maintaining your staff.

Marketing and Sales Management

The purpose of the marketing and sales section of your business plan is to outline your strategies for marketing your products or services. This section also plans for company growth by describing how the growth could take place.

The section should describe your company’s:

• Marketing methods
• Distributions methods
• Type of sales force
• Sales activities
• Growth strategies

Product or Services

Following the marketing section of your business plan, you will need a section focusing on the product or services your business offers. This is more than a simple description of your product or services, though. You will also need to include:

• The specific benefits your product or service offers customers
• The specific needs of the market, and how your product will meet them
• The advantages your product has over your competitors
• Any copyright, trade secret, or patent information pertaining to your product
• Where any new products or services are in the research and development process
• Current industry research that you could use in the development of products and services

Funding Request

Only once you have described your business from head to toe are you ready to detail your funding needs. This section should include everything a bank or investor needs in order to understand what type of funding you want:

• How much money you need now
• How much money you think you will need over the next five years
• How the money you borrow will be used
• How long you will need funding
• What type of funding you want (i.e. loans, investors, etc.)
• Any other terms you want the funding arrangement to include

Financials

The financials section in your business plan supports your request for outside funding. This section provides an analysis of your company’s prospective financial success. The section also details your company’s financial track record for the past three to five years, unless you are seeking financing for a startup business.

The financials section should include:

• Company income statements for prior years
• Balance sheets for prior years
• Cash flow statements for prior years
• Forecasted company income statements
• Forecasted balance sheets
• Forecasted cash flow statements
• Projections for the next five years – every month or quarter for the first year, with longer intervals for the remaining years
• Collateral you can use to secure a loan

The financials section is a great place to include visuals such as graphs, particularly if you predict a positive trend in your projected financials. A graph allows the reader to quickly take in this information, and may do a better job of encouraging a bank or investor to finance your business. However, be sure that the amount of financing you are requesting is in keeping with your projected financials – no matter how impressive your projections are, if you are asking for more money than is warranted, no bank or investor will give it to you.

Appendices

The appendix is the final section in your business plan. Essentially, this is where you put all of the information that doesn’t fit in the other eight sections, but that someone – particularly a bank or investor – might need to see.

For instance, the market analysis section of your business plan may list the results of market studies you have done as part of your market research. Rather than listing the details of the studies in that section, where they will appear cumbersome and detract from the flow of your business plan, you can provide this information in an appendix.

Other information that should be relegated to an appendix includes:

• Credit histories for both you and your business
• Letters of reference
• References that have bearing on your company and your product or service, such as magazines or books on the topic
• Company licenses and patents
• Copies of contracts, leases, and other legal documents
• Resumes of your top managers
• Names of business consultants, such as your accountant and attorney

Writing a Successful Business Plan

Despite the quantity of information contained in your business plan, it should be laid out in a format that is easy to read. Just like with any piece of business writing, it is important to craft your business plan with your intended audience in mind – and the bankers, investors, and other busy professionals who will read your business plan almost certainly won’t have time to read a tedious document with long-winded paragraphs and large blocks of text.

Business plans for startup companies and company expansions are typically between twenty to forty pages long, but formatting actually accounts for a lot of this length. A strong business plan uses bullet points throughout to break up long sections and highlight its main points. Visuals such as tables and charts are also used to quickly relay specific information, such as trends in sales and other financial information. These techniques ensure that the reader can skim the business plan quickly and efficiently.

Think of your audience as only having fifteen minutes to spend on each business plan that comes across their desks. In that fifteen minutes, you not only have to relay your most important points, but also convince the reader that your business venture merits a financial investment. Your best bet is a well-researched business plan, with an organized, easy-to-read format and clear, confident prose.

Successful Entrepreneurs: Do You Have The Characteristics Needed?

by: Joshua Feinberg

Successful entrepreneurs in virtual IT have a certain set of personality traits and characteristics. Without these attributes, the chances of becoming a successful entrepreneur in this business are limited.

Characteristics of Successful Entrepreneurs

A successful entrepreneur is someone who organizes a business venture and assumes the risk for it.

Successful entrepreneurs in virtual IT have made a detailed plan of what they're doing for the next year. They continually measure how they're doing against the plan so they can make adjustments along the way.

Successful entrepreneurs are always optimistic. They look at the positive side of things and they see opportunity in set-backs or unexpected events.

Successful entrepreneurs recognize their own negativity and get rid of it immediately. They do whatever it takes to tune out negative noise to stay focused and stay positive.

The successful entrepreneur is very selective in the kind of clients he/she wants to work with. They take the time to target particular occupations or industries and they look for untapped niches.

Successful entrepreneurs never blame others for their situation. They take responsibility for their actions and do whatever it takes to improve the business or themselves.

Successful entrepreneurs are continually looking for the next big challenge. They don't give up after one, or even a few setbacks.

The successful entrepreneur is very confident. They exude this confidence in how they present themselves: their clothes, car, grooming, social interactions, etc... all shout, "professional."

Successful entrepreneurs invest time, building mutually beneficial relationships and partnerships with accountants, management consultants, and deeply niched technology providers. They take the "you scratch my back, I'll scratch yours" approach to relationship networking.

Successful entrepreneurs in virtual IT know the importance of core business practices like saving, investing, testing, and measuring. This helps them do more of what’s working and ditch what’s not.

Finally, successful entrepreneurs commit to continuous self-improvement. Both in terms of technology and business skills as well as brainstorming and masterminding for continued, future prosperity.

Bottom Line on Successful Entrepreneurs

To be a successful entrepreneur in virtual IT you need a core set of personal characteristics and traits. Essentially you need to believe that you will be successful and exude confidence and a positive attitude at all times. Having a plan and being prepared to do whatever it takes to be successful are the things that will distinguish you as a successful entrepreneur.

Copyright MMI-MMVII, Computer Consultants Secrets. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}

How to Handle 12 Big Issues for Small Businesses

by: Diana Barnum

Some day-to-day work issues can turn into big headaches for small businesses. For example, not having enough help during a busy season or new promotion can hurt production, sales and customer relations in the fulfillment of orders and customer service.

A quick glance at the following stats reported by the US. Small Business Administration, shows that small businesses are not small potatoes in today’s economy. In fact, the number of small businesses multiplied by the number of large problems equals the need for a lot of solutions.

Small firms*:

• Total approximately 23 million in the United States, with roughly 75 percent of the firms having no employees.
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 44.3 percent of the total U.S. private payroll.
• Generate 60 to 80 percent of net new jobs annually.
• Create more than 50 percent of non-farm, private gross-domestic product (GDP).
• Are employers of 39 percent of high tech workers (such as scientists, engineers, and computer workers).
• Made up 97 percent of all identified exporters and produced 29 percent of the known export value in FY 2001.

How can small business handle big issues? OhioHelp.net, an Ohio-based company that helps businesses worldwide with their marketing, public relations and freelance writing services, shared 12 tips based on their own client projects.

1. Need help? Find some great subcontractors & cyber-helpers. Post for help on your favorite forums and freelance biding sites like Elance.

2. Need enhanced product / service lines? Offer larger pricing packages or specials for larger businesses and clients who have worked with you previously. And offer introductory pricing and smaller packages to new clients and smaller businesses.

3. Have a guarantee? Forget worrying about “Guarantees” and offer payment due AFTERWARDS with no-cost trials- -so clients can have the product and make sure it meets their needs. (Only risk small portions of the project at a time, though. But it works great for everyone.)

4. Need more business? Keep marketing- offline, especially. Work with associations in your industry.

5. Need help collecting? Keep ongoing collection efforts going with a list and don’t be afraid to offer deals. Anyone can get into a bind once in awhile. And helpful efforts are appreciated. Offering multiple payment options help, too. Be able to accept credit cards by fax or phone using a system like ProfitAuto http://presssuccess.com/AutoPilot with pricing packages for all levels of business.

6. Money flow problems? Pay helpers, media ad billings and suppliers FIRST. Period. Also let clients know that you pay your helpers promptly (like every Friday).

7. Are you keeping up with the competition? Keep educating yourself and your helpers. For example,inexpensive company subscriptions to an ebookwholesaler http://presssuccess.com/wholesale and the jvAlert Perpetual Learning Series http://www.jvAlert.com/LearningSeries.aspx?id=1805 help to catch up with the latest scoop about what works and what doesn’t work from top-level marketers & industry leaders.

8. Do you have ongoing campaigns? Send a direct mail campaign one month, then call them the next. Continue with a monthly or bimonthly postcard newsletter with calls in between. Keep in touch regularly.

9. Need to jumpstart new business, maybe B2B? Submit an executive resume via ResumeRabbit and ResumeZapper, both listed here: http://movingaheadcommunications.com/partners.html . In the resume, include an active link to get the updated version 24/7. More than a year later, local & non-local companies will still seek you out with proposals.

10. Are you trying new product and service lines? Don’t be afraid to test and try new things. Place small classified ads & really listen to what the people want when they call in. Stay competitive.

11. Are your goals too high? Don’t try jumping the gun on increasing income too rapidly. If your income is very small to start with, you may get away with doubling it from one month to the next. But for higher figures, higher $$ can mean increased expenses, work load, deadlines, workers coordinating, communications, stress, technical issues, etc…Instead of a shaky foundation, grow slow and learn to gradually handle more in a professional, fun, growing environment. An average, solid growth figure is much closer to 20% than it is 100%.

12. Are you keeping track? Keep progress logs similar to this listing so that you have a history of issues you’re working on. They say, “History repeats itself” so write out your positive results.

* Sources: U.S. Bureau of the Census; Advocacy-funded research by Joel Popkin and Company (Research Summary #211); U.S. Department of Labor, Bureau of Labor Statistics, Current Population Survey; U.S. Department of Commerce, International Trade Administration.

--

You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated - send to: diana@ohiohelp.net

What Are Your Shipping Options?

by: Curt Barry

In the next few weeks, all the carriers will complete their 2008 pricing announcements. As we look at the future, it’s probably a good bet that these carriers’ rates aren’t going down any more than the cost of oil. So what’s the impact and action plan for your business? Given the size of the increases that have been announced so far, multichannel companies need to look at all the options open to them and develop short and long-term strategies to reduce the impact.

UPS has announced that they will be increasing Ground rates by 4.9% in 2008, which is equal to last year. (FedEx will most likely match the UPS Ground increase, but that information has not yet been released.) Under new rates, the Ground commercial zone 2, 1-lb. rate has increased 5.0% over last year—overall, a 16% increase over three years, from $3.62 in 2005 to $4.20 in 2008. For 1-70 lb. packages the average increase is 4.8%. However, if the majority of your shipments are in zones 4 or 5 –like many businesses are- the increase is about 5.16%. Depending on your warehouse location and the predominant zones in which you ship to customers, the impact could be more or less than this average. Meanwhile, the Ground residential minimum charge increased to $6.15, a combination of the base rate for zone 2 and the Ground residential surcharge. In a quick survey of shipping tables of 66 multichannel companies, we found that 71% of the tables were lower than this $6.15 minimum charge.

As AFMS Logistics Management Group’s Managing Director Rick Collins points out, “The announced rate increases of 4.9% for Ground and 6.9% for Air from FedEx and UPS masks the true impact for many shippers. The base rates may average the announced increases across the board; however higher zone express shippers could experience increases in the 9-10% range. Additionally, surcharges are increasing up to 20% in some cases. Surcharges for irregular and large packages are up 8.3% to 12.5%. Commercial remote add-ons are increasing 7.1% and residential fees are up 5.4% for Ground.”

All is not totally gloom. There was some good news on November 15, when the Postal Service Governors announced that future prices will be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on October 29. Consistent with the Postal Accountability and Enhancement Act of 2006, future price increases for mailing services will be capped at the rate of inflation. Said Postmaster General John E Potter, “This delivers one of the main goals of the new law for business mailers—a predictable price schedule.” The new pricing regulations give the Postal Service added flexibility for shipping services. “We intend to use this new flexibility to grow our competitive business,” said Potter, “offering volume discounts and contract pricing.”

Looking at the industry as a whole, however, Edward Wolfe, transportation stock analyst for Bear Stearns & Co., had this to say: “Our sense is FedEx is clearly trying to send a message of pricing strength to both its customers and to competitors UPS and DHL.”

I think we’ve gotten the message. Now we need to do everything we can to reduce freight costs.

With the continual increases in the cost of oil and shipping, we think that companies need to assess both short and longer-term strategies. Here are 15 short- and long-term options to investigate:

1. Renegotiate your contract.

2. Can you use USPS to your advantage?

3. Are you using best-way rate shopping?

4. Consider package weighing, and take out inserts when they push the package into a higher bracket.

5. Can you leverage economies of scale using the same carriers for inbound and outbound freight?

6. Investigate the economics of a second warehouse to reduce the distance and cost to ship to the customer.

7. Reassess your shipping and handling table in light of the changes.

8. If you’re going to use free shipping, re-assess the minimum dollar order value and its effects on your transportation costs. Should the minimum be increased?

9. Review whether you should use by-item shipping charges in your web and catalog copy for heavy and oversize products.

10.Can you make use of package consolidators and zone skipping?

11. Assess your total operation and determine if other costs can be reduced to help offset these increases.

12. Improve your inventory forecasting and systems to improve inventory position and decrease the cost of back orders; keep in mind the $6.15 Ground residential minimum charge.

13. From marketing and merchandising perspectives, how can the average order value be increased so that shipping cost is not such a large percent of the average or small order?

14. Review your policies for giving away free freight to return merchandise.

15. Is it time to use an experienced transportation consulting company to help you get savings? Or are you big enough to hire an internal specialist to continually assess and hopefully lower your costs?

Contract renegotiation is your #1 weapon. How much can be saved will depend on a number of factors: how well prepared you are in terms of knowing your package shipping profile; knowledge of carrier pricing and what can be discounted and negotiated; the 70+ accessorial charges and how they make up your total costs, etc. An increase in the carrier’s list rates does not necessarily translate to higher shipping costs. Bear Stearns’ Wolfe says, “At this point, we continue to expect the market, not announced large rate increases, to determine the direction of pricing.” “The market” means competitive bidding and your ability to negotiate. Another factor to consider is how important your account is to the depot or hub. We’ve learned that sometimes smaller accounts are much more important than management might realize, given the outbound volume.

The most nimble multichannel companies will determine how to offset these foreboding continual increases. We believe it will take all the weapons—both short-term tactics and longer-term strategies—to keep profitability from eroding.

Those With The IN Win - 5 Steps to Get Connected

by: Sam Manfer

My coffee shop was offering a free quarter pound of coffee as part of a celebration. As the attendant handed me a regular coffee from their prepared stack, I asked if I could have decaf. He said there was only regular. Since I'm not one to settle for rejection from a subordinate and since I know Kelly, the manager, from my daily visits, I asked her if I could have decaf instead. No problem - she went to the bean area, measured some decaf, ground it for a cone filter and smiled warmly as she handed it to me.

Similarly I was recently rejected for an opportunity by a training manager. So I used my contacts to network me to the division president and won a very large consulting and training contract with this Fortune 50 company.

See it pays to know people. We all know this. Yet, we do little to expand our spheres of influence.

5 Steps to Get "IN"

1. Convince yourself that It's Worth the Effort.

Anything over $50,000 is approved by the top person. No matter how influential the subordinates or the committees are, the chief says, yes or no. Someone has to bring your message up or nothing will happen. It should be you. Anything under $50,000 can be strongly influenced by the senior person. If you don't believe me ask yourself, "What happens if my competitor gets there?" Do the math.

2. Set your sights for the top and you'll figure a way to get there.

Focus - It's part of your job responsibilities to get to the manager ultimately responsible for profit and loss. Just as giving a price, a presentation, or answering a spec is what's expected from you, so is impacting the people at the top. Caution: Do not ignore the subordinates or committee. They have to be covered, but you can't get stuck there. It's like leaving a man on base in baseball - you don't score.

3. Believe you belong there. Get over any doubt and you will get there.

Confidence is your greatest asset. People pick-up on it and perceive you as creditable. Subordinates know where the message has to go. They are more afraid of going up than you. If one feels in control of you, s/he will sit on you and your message. So say up front, "Who else is involved and when will I get to meet him or her so I can better understand the situation from all perspectives." Obviously you can't make a presentation or give a price if you don't know what the approver expects of your stuff. Right!!

Rehearse that line. Reprogram your thinking. You're a professional and you deserve to know the expectations of the one who will say yes or no.

4. Use the people you know to get you to the C-Suite.

99% of all senior exec's say they will see someone if a person they trust sets it up. You need someone in your network's Credibility to move you forward. It's OK to ask people you've connected with to meet their boss. You might have a lot of meeting to eventually get to the top, but that's the job. However, once you're with the boss, quickly establish your own credibility.

The sure fire approach is to keep the discussion on the exec's issues and wants. Tell him/her in 15 words or less how you became so smart and quickly move to asking questions about his situation, desires, expectations, etc. as they relate to your generic services. Capture all his/her emotions. Then say "Based on what you've told me, I'd like to put together details of how I might help you get these expectations." "Can I come back next week, prepared with expertise and a plan?" You've now shown you're a confident professional rather than a walking advertisement.

5. Perform to his/her expectations.

Show the person how you can deliver his/her wants better than any other alternative. It doesn't matter how well you answered the spec as long as you complied. Keep the deliverable focused on the exec and his measurement system. Nothing else counts. If he wins he's happy. If only the company wins, he's not. Then, once you've performed tie yourself and your company to the wins. S/he has got to associate you with this happiness. Otherwise the subordinates get the "IN" and you're left on base.

Conclusion

It's worth it, so the effort will pay off. It requires focus, so keep your eye on home plate, as you touch the bases. Believe you belong at the top, so pump yourself up and go in with attitude. Use your network, so get over the idea that you can't ask for help. Keep the focus on the leader, so stop signing you own tune. He knows who you are or you wouldn't have got in his door. What you don't know is why he let you in. So find out and give it to him. If he wins with you, you're "IN."

How to Give a Great Speech

by: Sandra Schrift

As a former owner of a National Speakers Bureau, I have learned from several thousand professional speakers "How to Give a Great Speech." Here are some techniques that I share with my coaching clients who want to become paid professional speakers or business professionals who want to deliver masterful presentations.

1. Speak from the heart. Believe in what you have to say, or don’t say it. If your passionate about your subject the words will come. Speak about the fundamental beliefs you have about life, the simple truths that you believe in with all your heart.

2. Write down two or three specific objectives you have for this speech. Ask yourself, 'What do you want the audience to do as a result of your speech? 'Think differently? Act differently? Do something differently?

3. Write it out. When you give a speech be sure that people need to hear what you have to say. Than you need to understand it so well that you could explain it to an eight-year-old You know, if you write it down enough times, than you will become familiar with it. Don’t read your speech if necessary, just read the lead sentences that you write on a three by five card.

4. Be present. Connect with your audience in the first 60 seconds and than engage them throughout your speech. Once you get the audience rolling, be sure to embellish certain comments that you know are being well-received.

5. Know your audience. Interview the program chair in advance to know who will be sitting in your audience and what they expect to hear from you. Are they men or women? What is the theme of the meeting or conference? What is their purpose in being there? Because that then becomes your purpose. Be sure to give your audiences not just what they want, but also what they need to hear.

6. Room Setup. Be sure to check out the room where you will present your speech in advance. The worst thing that can happen to you is when they put the bright lights in your eyes and blackout the audience. If you go early to do your room check, you can tell them that you can’t give a speech with the audience in darkness. As a speaker, it is important that you see the faces in your audience.

7. Is there a technique? Try to be as natural as possible just speak conversationally. Talk to your smaller audiences as if you were in their living room. Don’t look over their heads or beyond them. Speak directly to them. If you are addressing a crowd of several hundred or more people, look at one person, than another, than a third. But really look at them.

8. "Ums" and "Ahs." "Ums" and "ahs" come from uncertainty. The key is to know your subject and what you want to say. And than practice, practice, practice. Use your mirror or give your speech to your friends and family. And above all, don’t try to remember exactly the same words.

9. Personal Stories Be sure to share your personal stories with the audience. People will learn from your vulnerability and your mishaps and will be only a step away from their own story. We delineate our thoughts visually and so your audience needs to see what they hear. You don’t have to be clever, just share your life with your audience. Remember you are looking for their trust and trying to help them. So just consider them to be your friends and inject humor wherever possible.

10. Closing your speech Develop an action plan. What do you want your audience to do now that they’ve heard your speech? Go around the room, and ask them to share one nugget they got. Ask them for one idea that they can use NOW. In two weeks. In one month. Be sure to summarize your speech and than give them a call to action.

To find out How to Become a Highly Paid Professional Speaker, go to http://www.schrift.com/ProfessionalSpeaker/

©2004 by Sandra Schrift. All rights reserved

Publishing Guidelines: You are welcome to publish this article in its entirety, electronically, or in print fre*e of charge, as long as you include my full signature file for ezines, and my Web site address (http://www.schrift.com) in hyperlink for other sites. Please send a courtesy link or email where you publish to sandra@schrift.com Thank you

Buying Low Cost Health Insurance

by: Jason Hulott1

There are many ways you can save on the cost of your health insurance but first you have to take into account the cover you want and if you are going to be taking individual cover or whether you are taking cover for the whole family.

The cost of health insurance can vary greatly depending on the amount of coverage you need, if you were take all the options available in private health insurance then the premium would be astronomical and something which very few people can afford to do. Fortunately however, you can get good coverage for a decent premium by shopping around and following these tips.

Always check the policy because it might include things which you don’t need, for instance if you are a single man and a policy includes costs for pregnancy then this obviously won’t be needed. While this might seem like common sense, it is surprising how many people don’t look into what is in the policy they are buying. So always look into the different packages that are available.

If you are considering the lowest cost health insurance then look into purchasing a policy that only covers major illnesses. Limited cover is one of the cheapest ways to buy private cover but take into account that minor illnesses and accidents will not be covered.

You can keep the cost of the premium down if you offer to pay a higher excess. All policies will require that you pay something towards the cost of treatment before the insurance will kick in, this can start from something as low as £100. You could offer to share a percentage of the cost which will also bring the premium down that you will have to pay.

While most people take out private insurance to beat the waiting lists that the NHS are noted for, it can help to bring your premium down if you choose to have a waiting period. For instance, you could choose a waiting period of 6 weeks and if during this time you can be seen on the NHS then all well and good, if not then you go privately.

Home Business Evaluation Guidlines

by: Jim Leo

Whether you are looking for a part-time opportunity or a full-time career change, selecting the right business venture is clearly a major part of your formula for success. Thousands of potential homebased independent distributorships, franchises and network marketing opportunities are being offered in newsstand opportunity magazines, on those spam e-mails you receive regularly, or from friends and relatives who are convinced they've found the holy grail to make you both wealthy.

Unfortunately, many people jump at opportunities based on advertising hype or unsubstantiated promises and are quickly disappointed. There's nothing wrong with a company promoting its opportunity in the best light, or with your friends focusing on the potential benefits available in their own ventures. It's just that you need to separate facts from illusions, reality from fantasy and true potential from the enthusiastic sales pitch of the people who stand to profit from your involvement. They may have taken a leap of faith themselves without having done their own due diligence. There are many good opportunities for those willing to work and work hard. Any business that offers real opportunity requires real effort. Just remember, if it sounds too good to be true, it probably is.

Here are the six questions you should ask to help you make educated decisions about your time and money investment.

1. How long has the company been in business? If they've been around for several years, they'll have network marketing operators who have already paved the way. Ask for references. And if they won't give you any, dig deeper to find out why.

If this is a start-up venture, look for signs of financial stability. Are they properly funded to deliver on the promises they promote?

2. Who are the people behind the company? Do they have proven business expertise? Have they had other successes prior to this business that assure you they understand what it takes to succeed? Do they have a successful network marketing background? If not, is a member of their executive team or a consulting organization guiding them?

3. Are the products or services of personal interest to you? You usually won't do well in a business when you can't personally relate to the products. Would you buy this product yourself? Would you recommend it to friends even if you weren't paid to do so? Have you actually tried the product?

4. What type of training is offered in the beginning? You can't do what you don't know, so make sure you have access to beginning and ongoing training support.

5. Does the company offer great support tools? Do they provide a time-tested and proven marketing and sales system, as well as tools to help you? Video and audio training or sales presentations, printed literature, catalogs and a strong Web site linked to an online e-commerce catalog are all considered standard sales support. Linking your personal Web site to the company site is a must when marketing branded consumer products–you need this to ensure sales credit for your customers' online purchases.

6. How do you earn your money? If you're buying products or services at wholesale and marking them up for your profit, the company should have a suggested formula for profitability. Is it rich enough to return your investment quickly? Is the compensation plan easy to understand? Find out whether the profit percentages are paid on retail sales, wholesale after retail commissions are deducted, or on an amount selected by the company based on product profitability. Don't judge the plan solely on the promotional copy. Ask questions and make sure you understand when you'll receive your profits. Also, ask someone you trust who has network marketing experience to evaluate how the money will flow. The company should have a detailed explanation of their plan to help the novice work though the complexities. Good compensation plans can be complex. Don't let this scare you. Just take the time to understand the reward for your investment.

You can't afford to make hasty decisions in choosing a network marketing business. Your time is your life. Waste your time, and you waste your life. Making good decisions means seeking out the facts. It's well worth the effort–it saves you time and money by eliminating the bad choices and finding winners.

One other thing: Sometimes you'll make your decision based on pure emotion and gut feeling. If the opportunity is recommended by a friend, as is the case with most network marketing programs, look upline several levels from your sponsor to determine the type of support you'll receive in building your business. You rarely succeed alone. It takes a team effort matched to a good product and support system. But in the end, the dollar bill won't sprout wings and fly into your mailbox. You have to make it happen.

Advantages

Requires a lower initial fee than a franchise. Although the number of low-investment franchises has increased, the fee to get into a business opportunity is still considerably lower. The FTC requires a $500 minimum investment for an opportunity to be considered a business opportunity, but there are many that fall under this set fee, although most average around $2,000 to $3,000.

A proven system of operation or product. Existing systems serve to maximize efficiency and returns and minimize problems. It's simply a matter of passing on experience, still the best teacher. Whether they admit it or not, most people like having their hands held once in a while. During crises, the parent company is there to help the licensee over the bumps. Many people like this idea of safety in numbers.

Intensive training programs. In any new business, a lot of time and money are consumed during the learning period. A good business opportunity venture can eliminate the majority of ineffective moves through an intensive training program.

Ongoing counseling. Most business opportunity ventures offer support not only through training but also through counseling from a staff of experts who offer assistance that no independent could afford. Legal advice is available to a certain degree. The most efficient accounting systems—perfect for that particular business—have been designed by experts in the field. Some licensors offer free computer analysis of records, and through comparison with other units can pinpoint areas of inefficiency or loss as well as profitable aspects of the business that are being neglected.

No ongoing royalties. In a business opportunity, unlike in a franchise, there are no ongoing royalties to pay to the seller. The profits are all yours.

How to Find a Good Accountant for Your Cleaning Business

by: Steve Hanson

Finding a good accountant who you feel comfortable working with is important to your cleaning business. It's his responsibility to stay on top of all the ever-changing tax laws, plus he can give you financial advice that will help guide you in the growth of your business.

Perhaps you're a sole-proprietor who is thinking of incorporating your business. Your accountant will be able to advise you about how this move would affect your taxes and business growth. Or maybe you have questions on whether you should buy or lease a new truck for your business. Once again, your accountant will be able to help.

So how do you go about finding an accountant who is a good fit for you and your cleaning business? Here are a few tips:

* Ask other business owners for references. Find out who their accountants are and how happy they are with the services their accountant provides.

* If you can't get any references, go to the yellow pages and search the listings for several firms to contact. Call their offices and ask for the names of accountants who are familiar with cleaning businesses. Call four or five of the accountants on your list and ask them to tell you about their experience with working with clients in your industry and about their fees. From that information, narrow down your list to two or three accountants to interview in person.

* Prepare a list of questions to ask at the interviews, including:

- Do you have experience working with cleaning companies? (As a cleaning business you have unique expenses, including cleaning supplies and equipment, so it's helpful to find an accountant who understands your business.)

- How long have you been an accountant?

- What certifications do you hold?

- What continuing education or workshops do you attend?

- What is the hourly billing rate and what are the charges for extra services such as completing tax returns or helping with payroll?

- Who will I be working with and will I always be working with the same person?

- How accessible will my contact person be? Can he be reached by phone and e-mail? If I have to leave a message, how soon will he return my call? Will I be charged for every phone call?

- What other services do you provide and at what fees?

- If my cleaning business is audited, what are your responsibilities?

- What type of insurance do you have? (They should carry liability and errors and omission insurance.)

- Look for an accountant who is forward thinking. Ask what problems he might foresee and what he would do to correct those problems.

- Also remember to ask for references and then be sure to call those references.

* Meet with several prospective accountants and ask your questions. An accountant should be willing to meet with you for a brief "get to know you meeting" at no charge. A face-to-face meeting will help you to assess if you are comfortable with him or her and if you can establish a long-term relationship. As you are asking the accountant your questions, watch their body language. Do they seem interested in you and your business? Have they communicated with you in a language that you understand and not used accounting language jargon?

Service is important. If the accountant doesn't seem interested in you and your business or takes calls during the meeting, it might be best to move on to the next candidate who will devote his full attention to you and your business.

After interviewing several candidates sit down and decide which one you are comfortable with and that you are confident has the knowledge and abilities to keep your business finances on track. Once you have decided on who you want to work with request a written estimate of costs that spells out what your responsibilities are and what your accountant's responsibilities cover. Knowing what you will be doing and what your accountant will be doing can eliminate confusion and save you time and money.

Remember, your accountant should be more than just someone who prepares your tax return. He or she should be able to help you in making important financial decisions that guides your business and makes your business profitable. Spending time and effort in finding the right accountant when starting your business can help to assure your cleaning business is successful in the long run.

How to Successfully Navigate Your Business through an Economic Downturn

by: Terry H Hill

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

You may reprint this article free of charge in your newsletter, magazine, or on your website, provided that the article is unedited, and that the copyright, author's bio, and contact information below appears with each article. Articles appearing on the web must provide a hyperlink to the author's web site, http://www.legacyai.com

Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

To download a copy of this article, click on this link: http://www.legacyai.com/Article_Downturn.html.