Category: ‘Business Modeling’

How To Write A Startup Business Plan

December 19, 2011 Posted by Business Manager

Article by Dan Amato

Why Do I Need A Business Plan?

Why do you need to write a business plan? There are a number of reasons. Writing a plan dramatically increases your chances of success as an entrepreneur.

Here are just a few reasons why you would want to write a business plan.

1. Evaluating initial startup costs.
2. Determining what it will take to make a profit.
3. Analyzing your competition and it’s success and failures (which you can capitalize on)
4. Well defined rolls of all people involved in the company.
5. Investigating your market and developing a strategy.
6. Anticipating problems before they occur.
7. Defining a clear goal and exit strategy for your business.
8. Convincing investors to fund your business

Some may scoff at all of the parts of a business plan, but remember that you are undertaking this endeavor to make money, not to just produce a product or service. Most businesses fail because they are hit by unforeseen expenses — or situations — that they should have anticipated ahead of times.

To give yourself the best chance of success, do your homework ahead of time and you’ll be way ahead of most people.

Plan Your Work, Work Your Plan

A business plan is not a document set in stone and you will probably change it in the future as your business develops. When you are stuck on an issue refer back to your business plan and remember what your initial goals were and whether the situation has changed significantly enough that the plan needs to be reworked.

Planning your work is when you write your plan, but you can’t just stop there. You must work the plan and stick to it as you move forward in order to meet your exit strategy or other goals for the company.

Step 1: Defining Your Product Or Service

The first step to writing your business plan is defining exactly what your product or service is. This is what you will approach a potential customer with.

How would you explain your product or service to a potential client?

What would you tell them about it?

How would your product or service relate to other businesses?

Describing your product or service should fit within 1 paragraph with supporting paragraphs underneath it. Most people, when dealing with something innovative or something that is identical to a competitor, try to cop out of this and say “it’s just too complex for my product to be described”. That’s hogwash.

Every product or service can be defined. If your product or service is so innovative that it can’t be defined then the chance of it succeeding is very low.

Here are a few examples.

* Google was simply “a better search engine that works”
* Apple was simply “a computer that can fit on a desk”
* Microsoft was “an operating system that can be mass distributed”
* Amazon.com was “a mail order bookstore with an online front end”

Describing your product is not a hard thing to do. Implementing a strategy to sell, distribute or market your product in the long run has the most impact on whether your business will succeed.

Step 2: Who Are Your Customers?

Defining your target market may be a little difficult if you think your product can be used by anyone, but it can be done. Simply putting “everyone on Earth” is not a practical target market.

Whether your product or service can be used by everyone is not the key, it’s who can afford and needs your product.

Is it small businesses? Does it fit the consumer market that cooks a lot? Is it Internet users who are looking for dolls?

Defining your exact target market is key to setting up a proper marketing strategy. Without knowing who your potential customers are you will be casting your line into a vast ocean rather than a stocked pond.

Another part of this is determining if your target market can afford your product and will they purchase it from you.

If your product can only be used by boys age 14-18 and the price of your product is 00 your market will probably be very small.

This is all part of the plan, don’t be discouraged if you find that upon doing research your product or service doesn’t make sense. It’s better to evaluate things now and scrap the whole thing than to accept money from investors and finding out later that your business doesn’t stand a chance.

Step 3: Market Strategy

Who is your competition? How will you reach your target customer or client? These are all questions that need to be defined.

Find two or three competitors and evaluate them. Where are they successful? Where is their main revenue coming from? What things have they tried and failed? What things do they lack that you will provide?

Analyzing the competitive landscape is an important part of determining if you can succeed. You may even realize other areas that your product or service needs to focus on to have a chance of succeeding.

How are you going to reach your customer? Will it be through catalogs? Advertising in the local paper? Word of Mouth? Direct sales?

Investigate the costs of implementing a strategy of reaching your customer and client base.

If you are selling a product how much will it cost to get your products on shelves or to set up a e-commerce website?

What are the costs involved to place advertisements?

Simply having a product or service and not having people even knowing that it exists is a certain road to failure from the start.

Step 4: Financing And Capital

What are your initial expenses for starting your business?

You need to analyze all costs for beginning your business and how much capital you will need to keep the business running. If there is payroll involved you will need to factor in payroll taxes as well as salaries. You need to know how much in legal costs you will incur incorporating and for lawyer and accounting services.

If you are providing a product what is the cost of having it produced and an inventory for it?

Letterheads, logo’s, business equipment, software and business cards all fit in this category.

There is no hard and fast rule for how much capital you will initially need in terms of months in advance. Most businesses underestimate how much initial expenses and ongoing monthly expenses they have.

How will you fulfill orders? If via mail you will need to factor in packaging and shipping expenses.

If you are stocking a store with your item you will need to factor in delivery charges and expenses.

Once you have determined both your ongoing monthly expenses and initial expenses then you can evaluate how much initial capital you will need and where you intend to get it.

Will your financing come in the form of angel investors, venture capital, self financed or friends and family? Securing this financing could have expenses you have not counted on, be sure to include these expenses as well.

Step 5: Operations

You need to define the operations of your business and how your product or service will reach a customer from development all the way to end user. If you are providing a product you will need to define the whole flow.

Here’s a few questions for a product based company.

How will the product be produced?

How will it be stored?

How will it be delivered?

How will customers place an order?

How will an order be processed?

How will a customer get a receipt?

Where will fulfillment take place?

How will money change hands?

When will the customer receive their product?

How will customer service be handled?

For a service based company most of the above questions have their equivalent.

These questions need to be answered. It shows that you have thought ahead on how your business will operate.

Step 6: Putting It All Together

Once you have analyzed your product, your customers, your competition, market strategy and financing it’s time to put it all together in a document known as a business plan.

There is no single format for writing a business plan. The best way to write a business plan is to study business plans. You can find some business plans on the web to study.

Here is a basic overview of the things you should provide in a business plan.

1. Cover Sheet
2. Statement of Purpose
I. Part 1: Business Analysis
a. Description of the Business
b. Marketing Strategy
c. Competitive Landscape
d. Operating Flow
e. Management and Personnel
f. Exit Strategy
g.Insurance Information
II. Part 2: Financial Information
a. Equipment, Supply List and Assets
b. Balance Sheet
c. Break-even Analysis
d. Pro-forma Projections Including
i. 3 year summary
ii. Detailed projection by month of the first year
iii.Detailed quarterly projects for year 2 and 3
iv.Assumptions or how you reached your projections
e. Pro-forma Cash Flow
III. Part 3: Supporting Documentation
a. Tax returns of the principals involved in the business for the last 3 years
b. Franchise contracts, proposed leases and purchase agreements
c. Any licenses or legal documents the business needs
d. Resumes of all the principals involved in the business
e. Letters of intent from suppliers and other services

Remember that not all of these things need to be included right off the bat. If you are not going to have proposed leases at this time while you are starting your plan, it can go on your task list of things to do.

The most important part is getting started on your business plan so that you can spot the things you need to get done to complete it.

Most investors are not going to just hand you money without a pretty solid business plan though, so if you’re not too good at doing the financials you better get to work on learning how to project pro-forma cash flow and projections.

Once you have your business plan you are well on your way to creating a successful startup!

www.reachd.com Rodney Bartlett interviews Google’s Matt Cutts at Pubcon 2007 in Las Vegas. Matt had some excellent tips for small business owners and answered a few great questions.
Video Rating: 4 / 5

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Categories: Business Modeling

New Home Business Model

December 17, 2011 Posted by Business Manager

Article by Eddy Siong

If you are planning to venture into a new home business, it
is key to have the right home business model in place
before you begin.

The right home business model will add to your chances of a
successful business and start the right way. Creating a Home Business Model may seem a daunting task, and such an important part
of your business may require you to seek outside help
when preparing your model.

There are many resources online where you can get help, many
experts who are available to help you create your
model for a fee. There are even some experts who offer
their assistance for free.

There are many businesses that can be run from home
and with so many people wanting to leave the corporate
world to spend more time at home with their families.
They are choosing to start a business from home.

What many don’t realize is that most home businesses
will take up more time than was ever spent in the
corporate office. But with a well-planned home
business model, you can easily plan your time, as well
as your finances among many other aspects of your
business.

Success in a home business depends on how dedicated
you are to your home business and how closely you
follow your business model.

Dedicate a space for just work. Make sure everything
you need is at your fingertips and try to avoid a
place that has many distractions, like the television
or the refrigerator.

Also it is important that you dress for success. Dress
as you would if you were going to any other job. Ditch
the bathrobe and pajamas for casual business attire.

You will be less likely to lounge around in your good
clothes while you are in your home.

A new business model call ‘Multi Profit Websites” is likely to be profitable and has endless income potential. This system can creates a high quality website in less than an hour. Each niche websites can be a blog, offers products and services, and generates multiple revenues from major companies like ebay, Google,Amazon, Clickbank.
If you want to know more about this business model,please visit http://righthomebusinessmodel.com

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Categories: Business Modeling

How to write an effective business plan

December 15, 2011 Posted by Business Manager

Article by Steven Hacking

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December 10, 2011 Posted by Business Manager

Article







Business plan layout and writing into 8 easy to remember sections by business plan and fund raising expert Andrew Millet, chartered accountant, principle of Wisteria, a small business advisory and accounting firm based in Edgware, North London, UK. www.wisteria.co.uk
Video Rating: 4 / 5

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09 air-conditioned half-inventory business model Haier monopoly of Innovation Award – Air Conditioni

December 6, 2011 Posted by Business Manager

Article by hi joiney

Innovation Management subversion and see real power, Haier air conditioning is gaining the industry’s only “air-conditioning business model in China 2009 Innovation Award.”



Inefficient air conditioning was fully suppress, energy-efficient air-conditioning by the general trend of robust in much of state subsidies, in 2009 the air-conditioning market to energy-efficient air conditioning in a situation were to prevail in the end of the half-race, and for the brand, , after some post-Ebb Tide, who is the “gold” will be revealed at this moment. Recently, the China International Consumer Electronic Fair (SINOCES) Organizing Committee, China’s electronic newspaper jointly organized the “2009 China Consumer Electronics half inventory” selected activities, Haier air conditioning with high power “under the Demand for zero inventory” business model innovation gains in one fell swoop the only industry an award of “2009 China’s air-conditioning business model Innovation Award” at the same time, because “moving” air breakthrough achieved Energy Intelligent integration of innovation, Haier air conditioning was also named the “2009 Innovation of the Year features brand integration.” In addition, the “best market performance brand,” “Outstanding Contribution Award for Best Energy Saving”, “best energy saving air-conditioning products” and other awards were also Haier air conditioner 11 in the bag once again to consolidate its leadership and efficient energy saving air conditioning status.



Recalling the first half of the air conditioner market in 2009 by Financial Crisis to change and the industrial chain business models to adjust for the center, through business model innovation, strategic adjustment to seek new opportunities crisis has gradually become the decisive air conditioning brand new market growth. And Home Appliances Countryside, the state energy subsidies, government procurement, energy conservation policies and practices are more fully aware of the air-conditioning brand management the importance of innovation. It is reported that this event set the “2009 Innovation Award for China air conditioning business model” is in the context of such birth, the Haier air conditioning, the monopoly of the award is the strength .



Understand that, since the active implementation of the “zero inventory under the Demand for” innovative business model that has been, Haier air conditioning market share in energy efficiency will be way ahead. According to latest statistics from the PRC, Express, the current level of Haier air conditioning 1,2 double energy-efficient products, ahead of retail sales share over the second, three the sum of the whole year has driven the recent increase of more than 50% of high growth. “Currently, we have removed the first in the industry inventory directly to customers, so that every order entered, Sales and balanced, reasonable to achieve the enterprise, customers, users win the three parties,” the traditional air-conditioning business take more racking our brains, gamble early Yahuo, betting on the weather and other practices, Haier air conditioning made the head of a different view.



, Of course, won the Haier air conditioner is not only a successful business model innovation through “Focus on the competitiveness of a single model,” the innovative approach, Haier air conditioning also won the larger consumers, and she won the “2009 Best feature fusion innovative brand “awards. With the current number of hybrid models of brand name products, but one model over the actual sales of almost zero in the traditional approaches, Haier air conditioning requirements are based mainly on product performance, innovative use of standardized, modular development system for module assembly, through the design to respond to changing market, this Haier launched Green Expo “moving air” It reflects the results of its innovative approach. Moreover, in recent CNIS energy-efficiency labeling management center reported efficient, energy-saving products in the rating, Haier air conditioning more efficient energy saving in one, 1.5, 3, and the above three major sections of a record match single record of the most competitive models.

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Writing a Business Plan Effectively for Free

December 4, 2011 Posted by Business Manager

Article by Darrel Giann

Writing a business plan can be a daunting activity if it is the first time you’ve tackled such a detailed, thorough project. Too often, entrepreneurs rely upon templates or a sample business plan as an example for their own proposal, and in the process lose the creativity and energy that they have about their idea. There are many options for writing a persuasive and effective business plan without spending a lot of money on a writing coach, proposal writer, or additional resources.

Web Resources

Chances are, you’re already relied on the internet to gain guidance about projects you’ve never done before, or looked up instructions for a complicated process. There’s a lot of information online about writing a business plan and you can easily find a sample plan, but not all of that information is quality, or worth your time. So how do you effectively search for web resources that will actually help you instead of wasting your time? Much like any kind of internet research, the tip is to begin by using only credible resources. In addition to searching for “writing a business plan”, or “sample business plan”, type in “business school” as well. Many business schools around the nation have free, available information for the public on how to write a plan. They may include links to area-specific resources, or provide tutorials or downloads for a sample business plan.

Another great resource for writing a business plan is your local Small Business Administration center. Most major cities have these types of small-business assistance resources, either in a brick-and-mortar office or online. These SBA websites almost always offer comprehensive resources for start-ups like a sample business plan, business development ideas, events, counseling and training services, and local resources. Check to see if your SBA website has free, online business webinars. Even if you local chapter doesn’t offer them, you can easily find a website in another region that does. These online seminars are typically self-paced, 30-minute long resources that help you understand the components of writing a business plan (which provide much more insight than a simple sample business plan), and may be offered in a variety of languages.

Podcasts are another web resource that not many people think of when they think “business plan”. True, you don’t get the same visual education from a podcast as you do from a webinar, but listening to someone describe the process might be just what you need to motivate you while on a long commute, at the gym, or sitting at home. And with a lack of visual information, they might seem less overwhelming than looking at an online presentation or sample business plan.

Books and Printed Material

The internet is a fantastic resource for writing a business plan, but for some people, nothing beats a good old-fashioned book. Your local library has entire sections dedicated to the multiple aspects of business development, and you can be sure to find several books about how to write a business plan. Best of all – these are free! If your local branch does not have the book you’re looking for, check the catalog and request a book transfer. Sometimes, the perfect books about writing an effective business plan or ideas for a sample business plan are just an inter-library loan away.

Be sure to check out your local college library as well. Often, academic libraries will have more comprehensive business books than local libraries, and may offer a wider selection of in-depth materials regarding not only writing a business plan, but strategizing how to continue with your business development afterward. Keep in mind that many university libraries are open only to students, so call the resource desk before you make a special trip onto the campus.

Seminars

If you do have a SBA resource center in your area, check their calendar of events to see if they offer periodic classes or workshops, or can help you rework a sample business plan. Often, an SBA will offer a class dedicated to writing a business plan – at no cost! The advantage of attending a live seminar as opposed to an online seminar is that you can often ask the facilitator questions at the end which you can’t do online. Typically, the person leading the course is a professional with years or decades of experience crafting effective businesses. They’ll likely be able to assist you with tips, tricks, and shortcuts to develop a plan.

Finally, it’s important to consider that when you’re writing a business plan, you don’t want to cut corners or rely on a sample plan from a book or website. The business plan is a representation of your professionalism and your desire to succeed, and the quality of your content should reflect this. So while tips and tricks are good for making the most out of your time and resources, it’s never a good idea to gloss over important aspects of your plan – namely, the quality of your writing. While writing a plan necessitates the inclusion of facts, figures, numbers, graphs, financials, etc., the narrative surrounding the why of your proposal is what will likely draw people into helping you achieve your vision. Do you sound passionate about your product? Do you sound knowledgeable? Does it sound like you have what it takes to not only start your business but develop it and work through anticipated and unseen challenges? No? Does it sound like you relied on a sample plan instead? Well it may be a good idea to check out some of the writing seminars available for assistance with writing a business plan. Many of these seminars do cost some money, although others can be attended for a very nominal fee. Courses like these can help you find your “voice” and deliver a more compelling proposal.

The most important thing to consider when writing a plan is to take your time, be thorough, be accurate, and above all, believe in yourself and your product. Don’t just rely on a sample plan, create a proposal that you’re proud of, and that you are convinced will compel others to help you realize your dream.

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Categories: Business Modeling

Who can define the business model?

November 30, 2011 Posted by Business Manager

Article by Elisabeth

B2B and B2C, C2C e-commerce and intricate multifarious business model let consumers have more. Many industry members also into the “what kind of business model can achieve development and profit the optimal balance of” thinking.

In Sherman? Trane, a law firm partners Alan SEEM under the auspices of this BBS, the second argument: to explore the electronic commerce business model officially started. From loudspeakers and great tao net net, chief executive officer and partners LiaoWenLi, mickey gold (Beijing) investment consulting Co., LTD. Offers the partners and co-founder Tim MURRAY, d cotton founder and chief executive LinWei, gobi partners Co., LTD XuChen partners involved in this topic.

What kind of electronic business model for more suitable for future development and achieve better benefit, the honored guests is that all sorts of different mode has its own characteristics and advantages, difficult points ZhongBo.

D cotton nets founder LinWei first of all that: “the electronic commerce mode can be B2C and B2B, makes the same score table, C2C and original brand mode, the mode of several different distinguish between big, but with each other, no specific distinguish penetration boundaries.

When the guests asked more favour which model, as investors XuChen expressed his own brand of electric business favour: “whether to give a electric business investment, basically see three points: to have the independent brand; product Maori high; if the company is to keep a very light, control the inventory status and logistics”.

So the host please the independent brand electric business elite d cotton nets chief executive LinWei introduces the establishment of the independent brand electric business experience. LinWei said: “the independent brand establishment in three stages: 1, the brand pull litre construction, pull up the brand visibility and reputation; 2, order the transformation, to do ChanPinXing advertising; 3, the brand. Some of the most important maintenance and also the most difficult is the first stage, step by step.”

But mickey gold co-founder TIM thought god of fortune not whole visited the independent brand electrical contractor. He said: “the independent brand electrical contractor in the beginning of establishment of need to seriously consider myself a appliance merchant company or logistics company, or do a certain scale will meet after some quality control and logistics problems.”

And other electronic business model is also vary over time, the mode of C2C more flexible, but its quality control and fake suffer from problems of the great trouble; B2C model has brand of convincing, but due to the fierce competition force in gross margin very low, because this have to control the whole model of turnover. Regardless of which kind of mode of electronic business, there are bigger challenge. Use the competitive advantage of the enterprise itself and make up my own shortcomings, is the foundation of the business lifeblood.

Finally LinWei concluded: “electronic business model and the survival of the not too much relationship, business model may be right, but the final competition strategy the survival of a key.”

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The Best Home Business Models That Never Fail When Done Right

November 28, 2011 Posted by Business Manager

Article by Fay McLean

It’s really can be relatively easy making money on the web. What are important are the decisions you make when choosing the ideal business model. Sadly, this decision process is often neglected.

Where are you at now? Are you struggling making money on the web? Are you spending loads of time, energy and money looking for a good business opportunity online? How much time do you want to be working on and in your business each day/week? Do you want to work from home? Do you need to be able to work from any location?

By now, it’s likely you are aware that there are many ways of making a great income using online strategies. Some have different disadvantages and advantages than others.

Here are some of the most successful internet business models.

Sell Your Own Information:
There has been an incredible rise in information products like e-books, online training and video tutorials sold as a way of making money on the web in recent years. This has become a good business opportunity for anyone who is an expert on any topic that helps other people to solve a problem. If this is you, then this is the most successful online business model for you. It is inexpensive and easy to create your own information products. As your business grows, there is a point where your expenses increase as you add team members to manage the client load and administrative and management tasks. You should have a clear vision for what you want your business to look and how committed you are to long term growth if you include selling your services personally into group programs and masterminds.

Blogging:
For people who love to write, blogging can be a very successful business model. Blogging is not as easy as affiliate marketing. Because you are relying on driving traffic to your blog, it might be that at first you earn very little. As your followers grow and you become more skilled at driving traffic to your blog, you can make many thousands of dollars using this method of making money on the web. It’s a very flexible business and can be worked from any location. Your returns will depend on how much time and effort you devote to your online blogging. You can be very creative with a blogging business model when you research and write about topics that you have a great interest for. Spend some time researching your topic first to be sure that people are already buying information on your blog topics. It all depends on how you start, how you keep working and how long you can devote your time and effort to your online blogging business.

Affiliate Marketing:
This is one of the easiest and best ways of making money on the web. I recommend and use it personally to earn money on line. This is where you can make money by selling other people’s products. You are given your own personal affiliate link to promote and then you earn a commission each time people buy through your affiliate link. This is one of the best home business models because it involves less hard work and less investment compared to some other models. It is really very easy to start and can be how to get cash quickly.

I prefer to only recommend products I have purchased or use myself. I think the products you promote should have a good customer service. After all, it is your reputation on the line when you recommend products to others. Personally, I take that very seriously and would not risk my reputation by recommending shonky products.

Sell Physical Products: Personally I am yet to try this as a business model. I’ve only sold some personal items on eBay – and even that was very profitable. This model can be how to get cash quickly from selling physical products on eBay or your own on line shopping store. There is less sales copy, reviews and testimonials involved when you sell a physical product compared to selling digital products. You do need to be available to ship the product promptly so that you keep a good reputation with your customers.

Which is the best home business model would you recommended for newbie?

Whenever I get asked this question, I recommend affiliate marketing and selling your own information. You can easily start them with very little investment and without too much preparation.

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