If you read my section on ‘Do I Need a Business Plan’ and followed those steps, you are now ready for the next step in this process. Hopefully two important barriers have been breached in your quest to be the next new business. First, you have answered the most important questions of who am I and is this what I truly want to do.
Whenever someone wants to start a business, they ask their friends and professionals what they should do. The standard answer is always, ‘You need a business plan’. Really, do you? If I do, what is it and how do I proceed?
I have heard about 40 different folks try to explain economic principles to me and others. Some were enlightening, others, well let’s just say they weren’t well read individuals. But the best one I ever heard was a basic economic concept story of prostitution.
When an entrepreneur starts a new business operation, one of the first questions (s)he deals with is the form of business existence. There are a multitude of entities that the law allows. This article describes the four main types and the decision making model that an entrepreneur should follow in determining the best for the business.
In the world of small business, the sale of a business is dependent on two critical elements. They are DISCRETIONARY INCOME and the BUSINESS RISK MULTIPLIER. These two elements are multiplied to create the overall value of the business operation. In general, no small business operation is worth more than three times the discretionary income.
Using a large database, I calculated the average cost of one putt for each professional golfer. In business, this is known as the marginal cost of doing business.
One of the more complicated aspects of running a business operation is the function of accounting. The selection of the correct software to use can make all the difference in the success of the business operation.
For any small business operation, getting cash into the bank account is critical to survival. Without cash, the probability of success dissipates quickly. How do you get cash into the bank account? There are several sources of cash: they include capital, loans and customer payments.
In my career as an accountant I’ve noticed the same 3 elements of all successful business operations.
